this is one of the first very very early glimpses of ai’s impact on the supply side of the economy.
the entirety of the western capitalist apparatus relied on allocation of scarce resources towards production of goods & services, but as the inputs required continue to go to ~zero for both bits & atoms (this will take longer), it’s likely the idea of pricing power will fade away over time (esp if there is real self replication).
& if pricing power fades at scale, capitalism as we know it is roughly over. or on the flip side, in certain areas there might be one entity who has all of the pricing power due to some glitch (exclusive access to a single input, etc). either way you might get edge outcomes over the long horizon where most things become near free but few things become insanely expensive.