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.

Related event: Debate on Frontier AI Business Models: High Inference Margins vs. Capex Pressures(6 posts)→

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