I feel like an economic picture of AI is sort of coming into focus, where (contrary to recent history) hyperscaling and network effects really aren’t dominant. Like, already it seems that the models converge rapidly, and the “harness” holds most of the marginal value. One datacenter is about like another, and their economics is looking pretty much like that of utilities. Likewise, chip makers are riding high now, but that will surely revert to a mainly commodity business. More and more you hear about things like “forward deployed engineers”, or AI companies whose business is helping other businesses integrate AI. All of this is essentially consulting, in which the model is payment per hour worked, just like for lawyers or other skilled professionals. This is very different from developing software, where upfront work leads to future residual payments. What I am getting at is that it looks to me like the (enormous) profits coming from AI will be spread granularity through the whole economy, and not concentrated in a few “mag 7” type companies as we see now. Concretely this would argue for a broad based investment strategy, rather than cap-weighted as is common now. submitted by /u/Terrible-Mind-5414
Originally posted by u/Terrible-Mind-5414 on r/ArtificialInteligence