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No, this isn't directly about Nvidia or stock prices at all -- it's about the emergence of much lower-cost AI models. So the way Jevon's paradox could apply is
by crazygringo 2y ago
No, this isn't directly about Nvidia or stock prices at all -- it's about the emergence of much lower-cost AI models.
So the way Jevon's paradox could apply is that if an AI model only costs 10% of the energy+GPU to train (or run), then we might not get 90% energy+GPU savings... we might actually wind up consuming more energy+GPU on the whole because the models become so much cheaper, we use them more than 10x as much.
Obviously this will affect Nvidia's price, but this principle absolutely does not apply to stock prices directly.
- empath75 2y agoThe way the market reacted is completely illogical. If Nvidia announced a new chip that was 10x more effective at the same price, the market would be like WOW they're going to sell so many of those! But a software advance that achieves the same effect somehow causes the opposite reaction.
- aurareturn 2y agoExactly. The only thing that matters is AI adoption rate and training scaling laws right now.