Here’s the thing, though: precedent (and intuition) shows that when the cost of a powerful input falls, the economy does not politely stand still.
Words found on the source page on Nov 6, 2026.
On the same topics
BlogThe Most Important Market in AI is the MiddleSep 23, 2026
But the right tail of the market is thinner than almost anyone forecast.BlogThe Most Important Market in AI is the MiddleSep 23, 2026
Demand for intelligence is not a pyramid with a small, wealthy peak paying for everything beneath it.BlogThe Most Important Market in AI is the MiddleSep 23, 2026
Most business AI use is the messy middle: multi-step workflows that need a smart enough model at a price a company can afford. It is the most important part of the market today, & it is where the competition is fiercest.BlogFrontier OverhangsSep 21, 2026
A world with sufficient compute is one where intelligence is a commodity, and in commodity markets margin comes from a superior cost structure, which I would expect the leading model providers to have, in part because they have a meaningful lead in scaling and can apply superior AI to their infrastructure.BlogFrontier OverhangsSep 21, 2026
Pure capability no longer translates directly into a moat.BlogAI Comes for the If StatementSep 21, 2026
If this is the first of many primitives specialized for production, then harnesses are about to capture a lot more margin.
About this quote
Quotesby Glyph