Jevon’s paradox

As efficiency improves, overall use actually *increases* not decreases

Relevant examples:

As steam engine efficiency improved, overall coal consumption increased because more steam engines were built and used. [Generally holds true for every denser form of energy humanity has unlocked]

As health diagnostics became cheaper (and faster), their use exploded, paradoxically driving overall health care costs up

AI use is likely the same .. improved model efficiency drives individual query compute cost down, yet likely will drive more overall use because usage becomes ubiquitous and therefore drives overall compute demand up

Reply to this note

Please Login to reply.

Discussion

So sell Bitcoin to buy NVIDIA?

Yeah, I told my workmates the same thing this morning.