The most underappreciated thing about AI is that it's deflationary. Every single time in history when something has caused the kind of growth in demand that AI is causing, it has been because it is deflationary — because it lowers the cost of doing something that people want to do.
The most important thing about AI is that it's deflationary for everything except compute and energy. This is very counterintuitive because people assume that a massive new technology wave is going to be inflationary. But AI is fundamentally deflationary for almost everything except the things needed to build and run AI.
2w ago
Underscored — save the words that stop you in your tracks.
