Javons Paradox

- 00:00:00 So what is Jevons Paradox?

- 00:00:02 Well intuition might tell you that when something becomes cheaper and more efficient the market for it is going to shrink because everything is less expensive so of course people don't spend as much

- 00:00:16 But it's actually the opposite,

- 00:00:18 Let's think about energy, as a unit of energy becomes less expensive the amount of use cases it can apply to profitably increases, so the total market and the total spend greatly increase even though the per unit price decreases.

- 00:00:33 Now, there are a number of examples throughout the history of the Jevons Paradox, the steam engine being one, energy and gas price being another, and now we're going through another with Artificial Intelligence

- 00:00:46 Now although DeepSeek made the cost of pret-rainning much less expensive and it's even much more efficient during inference time, that doesn't mean the total market of Artificial Intelligence is going to decrease.

- 00:01:00 In fact, quite the opposite, it's going to allow it to accelerate so much more quickly towards AGI and ASI Artificial Super Intelligence, and thus the spend is going to increase greatly

- 00:01:14 So anybody is shorting companies like Nvidia and other major tech companies, you probably have a pretty painful future ahead of you, not investment advice.

- 00:01:26 So that's Jevons Paradox