> It's reasonable to assume that if AI drop-in-replaced all those knowledge workers, AI companies could credibly charge somewhere in that order of magnitude, be

> It's reasonable to assume that if AI drop-in-replaced all those knowledge workers, AI companies could credibly charge somewhere in that order of magnitude, because that's what the market is already bearing This assumes you don't change the market, but at the scale of (checks notes...) "all knowledge work", that just doesn't hold. For example if you put 1bn people out of work, you now need some sort of safety net to bail out much of that workforce, a truly unprecedented change. You also lose tens of trillions of dollars of tax revenue. One solution might be to recoup that cost and lost tax revenue from businesses by raising corporation tax. If corporation tax went from low tens of percent to high tens of percent, would those businesses be able to afford all that AI? No. Same order of magnitude? I doubt it. There are many possible futures there, but the simplification made in the parent comment is completely unrealistic. The article is right in calling out the valuations as crazy.