AI as a Means of Production Is Now Absurdly Cheap

AI as a Means of Production Is Now Absurdly Cheap · 2026-08-22 · primary

Themes: Open Source as Strategy · US-China Framing · Closed vs. Open Split · Economic Argument

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jevons-paradox-grows-usage — this source asserts it

Cheaper and more available models increase total consumption of intelligence rather than displacing it, and the volume creates economies of scale.

Keep generating plans, keep searching parameters, keep verifying, keep failing, keep redoing — opening up all the problem spaces that were previously impossible to fully explore because intelligence was too expensive.

AI as a Means of Production Is Now Absurdly Cheap · 2026-08-22

At this price, many production systems will no longer seriously consider "whether to save tokens."

AI as a Means of Production Is Now Absurdly Cheap · 2026-08-22

The rational strategy will gradually become:

AI as a Means of Production Is Now Absurdly Cheap · 2026-08-22

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