Altman's 'Three Observations' still explain the AI economy in 2026
Kangwook_Lee · x · 2026-08-19
Professor Kangwook Lee argues Sam Altman's "Three Observations" is worth rereading in 2026. TL;DR:
- intelligence ≈ log(investment);
- money made with intelligence ≳ exp(intelligence);
⇒ money made with intelligence ≳ investment.
He calls this still the best explanation of today's AI industry: diminishing returns of spend on intelligence, but exponential payoff from intelligence itself — so relentless investment still pencils out.
Related event: Professor says Altman's Three Observations still best explain AI economics(2 posts)→
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