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Comment by positron26 | Hacker News Reader

The algorithm advances are going to crash this so hard.

Or will more efficient algorithms just mean we run even more AI models, increasing the demand for AI chips even more?

I heard Greg Brockman on a podcast saying they are limited by computer and memory. They have line of sight in solving many different kinds of problems. But they also have to survive in the meantime. Hence the focus on enterprise recently. They could just ask Government to fund them doing other research areas

Better algos = more demand

Memory squeeze will get worse before it gets better.

I mean, god willing, but it'll be just as likely that we'll blissfully consume 100 million token contexts in that case.

isn't there a law for that? as things become cheaper you consume more?

Jevons paradox.

https://en.wikipedia.org/wiki/Jevons_paradox

jevons paradox

Jevons paradox: https://en.wikipedia.org/wiki/Jevons_paradox

You're probably thinking about jevons paradox. But you slightly mis-stated. It is the phenomenon that increasing the efficiency of resource consumption can end up increasing total consumption.

As you stated it, it would merely be a property of (nearly) all demand curves. Jevons paradox only happens sometimes. It isn't a law.

An example of where it stopped happening is with gasoline in developed countries. Cars having better fuel efficiency doesn’t make me drive further to the grocery store or work.

Generally when someone replaces their vehicle the new one is more fuel efficient than the old one even if I bought the same car.

classic uneducated algo copium talk

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