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And yet the people who made fortunes in the auto industry were all car makers? What an odd coincidence. But let's indulge your point of view for the sake of th
by davidivadavid 10y ago
And yet the people who made fortunes in the auto industry were all car makers? What an odd coincidence.
But let's indulge your point of view for the sake of the argument. So you've got a black box AI that does something. You know what inputs it needs and what outputs it produces. How do you arbitrage it? What creates the price discrepancy that allows you to arbitrage at all, given that your incapacity to understand the black box renders you unable to gauge its value beyond what the market is telling you?
In that case, why not trade any random commodity?
- whyileft 10y agoThe arbitrage is on the labor. Find someone who can build x for y and then sell it for z. The arbitrage opportunity comes from creating or obtaining a market you control. That market can be everything from a platform(Apple) to a collection of sales channels(Oracle) to a monopoly IP position(Microsoft). You do not need find people because they come to you because you control the market. > In that case, why not trade any random commodity? Its much easier to gain control of markets that are new as opposed to established ones.
- brilliantcode 10y agoYou nailed it. AI advancement leads to arbitrage opportunities in white collar labor as did mechanical automation lead to arbitrage opportunities in blue collar labor which leads to group of giant firms that collude to keep wages low as a result of the Nash Equilibrium. Apple won't pay workers more than Google does and vice versa. Starting a tit for tat would drive wages high which would increase uncertainty and risk for market monopolies.