📈 Data to start your week: The AI capacity trap

AI has never been cheaper to access. It has also never been harder to use without hitting a wall.

This post originally appeared in Exponential View.

“Older models consume more compute per token.”

Cheaper AI was supposed to ease the compute crunch. Instead, it made it worse. The Jevons paradox, applied to intelligence, means that every time the price of a token falls, demand rises faster than supply can scale.