Vik
@vikbilakanti1
This is the Jevons paradox playing out in real time.
Cheaper tokens unlock automated agent loops that consume orders of magnitude more volume.
Margin compression at the model layer transfers durable value straight down to the physical power, copper, and clusters.
Cheaper tokens unlock automated agent loops that consume orders of magnitude more volume.
Margin compression at the model layer transfers durable value straight down to the physical power, copper, and clusters.
Gavin Baker@GavinSBaker · Oct 9Why open-weight models that compress margins at the model layer are net positive for AI infra demand, exhibit 1001.
An open-weight token consumes *roughly* the same amount of compute as a frontier token for a similar size model.
An open-weight token consumes *roughly* the same amount of compute as a frontier token for a similar size model.
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