There's also the efficiency argument from new capability: even a tiny bit better weather forecast is highly economically valuable (and saves a lot of wasted energy) if it means that 1 city doesn't have to evacuate because of an erroneous hurricane forecast, say. But how much would it cost to do that with the rivals? I don't know but I would guess quite a lot.

And one of the biggest ironies of AI scaling is that where scaling succeeds the most in improving efficiency, we realize it the least, because we don't even think of it as an option. An example: a Transformer (or RNN) is not the only way to predict text. We have scaling laws for n-grams and text perplexity (most famously, from Jeff Dean et al at Google back in the 2000s), so you can actually ask the question, 'how much would I have to scale up n-grams to achieve the necessary perplexity for a useful code writer competitive with Claude Code, say?' This is a perfectly reasonable, well-defined question, as high-order n-grams could in theory write code without enough data and big enough lookup tables, and so it can be answered. The answer will look something like 'if we turned the whole earth into computronium, it still wouldn't be remotely enough'. The efficiency ratio is not 10:1 or 100:1 but closer to ∞:1. The efficiency gain is so big no one even thinks of it as an efficiency gain, because you just couldn't do it before using AI! You would have humans do it, or not do it at all.