AI diffusion bottleneck is capital formation and practitioners, not model capability

teodorio · x · 2026-09-24

Will Manidis argues the main blocker to the economy feeling the impact of AI isn't model progress—the models are good enough—but insufficient innovation in capital formation, calling for a new kind of PE to diffuse intelligence. @teodorio adds two constraints: you need good practitioners (managers aren't technical enough, engineers aren't good at managing people/resources, and such hybrid talent is scarce), and useful AI applications are genuinely hard to build.

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