AI Demand Will Be Amplified by Cheaper Intelligence
AccBalanced · x · 2026-07-13
This post uses the "Jevons Paradox" to explain the expansion of AI infrastructure demand:
- When the internet got faster, we didn't just load the same old websites faster; it spawned entirely new scenarios like streaming, cloud software, and video conferencing.
- AI will follow a similar trajectory: as intelligence becomes cheaper, faster, and more reliable, it will be embedded into almost any process requiring decision-making.
- The truly massive AI workloads likely don't even exist yet; they will be created as the cost of intelligence drops.
- GavinSBaker shifts the focus to the infra side: if the high profit margins of frontier labs shift toward cheaper models, more ROI will ultimately flow down to AI infrastructure providers.
Related event: AI Efficiency Gains May Amplify Demand(2 posts)→
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