The World Is Structurally Short Compute
The world is structurally short compute.
Every major efficiency gain in computing history lowered the cost of a unit of compute and increased total demand. Cheaper cycles do not end the need for infrastructure. They make more applications economically possible.
That is the logic behind Jevons paradox, first described in 1865. When a resource becomes more efficient, society often consumes more of it rather than less.
AI is following the same pattern:
More efficient models create more use cases.
• Lower inference costs expand demand.
Every new application needs data centers, power, networking, and memory.
The forced sellers may disappear, but the physical shortage does not. The long-term opportunity is in the companies building the capacity that a cheaper, more useful layer of compute will require.
