Trading Firms Too Small to Justify Massive AI Capex
iaindunning · x · 2026-09-02
The author refutes the idea that trading firm spending on frontier compute justifies massive capex from model providers. While one can back-justify logic using margin percentages, trading is a tiny fraction of the economy, notable more for PnL per person than absolute numbers. The limits on the percentage spend (X) and the base number it multiplies against suggest this market cannot support the demand forecasts.
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