How ASI Expectations Alter Capital Tolerance
JasonBotterill · x · 2026-07-19
This reply discusses a common market sentiment: as long as people believe ASI is very close, capital will be willing to accept negative gross margins because they are betting on massive future returns rather than current book profits.
The author adds that the current inference gross margin is still around 70%. Even if inference becomes a negative margin business in the future, capital may continue to pour in, as it is viewed as the closest path to AGI/ASI.
More from AGI Musings
- CJR: journalists should stop hyping AI's supposed humanity — just say 'rogue' — ShakeelHashim · 2026-10-27
- PhD applicant emails up 4x YoY due to AI — writing without AI now makes you stand out — AI4Code · 2026-10-27
- Weil's collapse shows BigLaw dies from eroding belief, not a broken business model — jkubicki · 2026-10-27
- All 8 Transformer paper authors left Google, and rival labs captured most of the frontier value — signulll · 2026-10-27
- Anthropic's S-1 pledges AI for curing diseases and serving 4.6B underserved patients — petergyang · 2026-10-27
- Goldman finds statistically significant negative link between AI adoption and US employment growth — ben_j_todd · 2026-10-27