The marginal cost of intelligence is going down.
When LLMs get cheaper, we will not save costs but instead use more AI to automate additional workflows or increase accuracy.
It's the Jevons Paradox but for AI.
It's like what happened with engines and electricity. As they became more efficient, we didn't use less - we used more, in more places, for more things.
In the age of AI, everyone can have many different agents — a personal assistant, a personal doctor, a personal tutor.
Tasks that used to require rare and expensive human expertise can now be done for everyone, everywhere.
The fact is, the cheaper intelligence becomes, it doesn't mean we'll use fewer GPUs because it's more efficient. It actually means we'll just use intelligence much more and in more places on the planet.