Capital buys AI to solve the principal-agent problem, argues RexDouglass

RexDouglass · x · 2026-09-25

RexDouglass argues capital is primarily paying for solutions to the intractable principal-agent problem: AI "boxes" replace people because they predictably follow instructions and don't culturally reorganize their jobs.

He adds that capital carries risk preferences — putting $10M into improving a controllable box beats sponsoring unpredictable people.

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