DeepSeek and Grok Updates Trigger AI's Jevons Paradox with Plunging Costs
R_D · x · 2026-08-13
Box CEO Aaron Levie highlights that new model releases from DeepSeek and Grok represent huge jumps in capability at insanely low costs.
He argues this is the AI version of the Jevons paradox: lowering costs will only accelerate demand. Enterprises currently have vastly more use cases for AI agents—such as scanning codebases for security issues or reviewing documents—than they can budget for. Cheaper, more capable models will unlock these new enterprise scenarios, driving even greater demand and benefiting the applied AI layer.
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