Compute buys capability but market returns scale logarithmically, researcher says
Researcher Dimitris Papailiopoulos observes that both model capability versus compute and market value versus investment follow logarithmic curves—each 10x compute yields only a constant increment—so scaling buys capability readily but converts to value with diminishing returns.
2026-10-19 ~ 2026-10-20 · 4 related posts
- Model capability and market returns both scale logarithmically: 10x input buys a constant increment — DimitrisPapail · 2026-10-19
- Why model capability and market returns both scale logarithmically with input — giffmana · 2026-10-20
- Researcher argues compute buys capability, but value hits zero once new demand dries up — DimitrisPapail · 2026-10-20
- Value grows log-log with compute: why scaling past demand may yield zero returns — DimitrisPapail · 2026-10-20