The author argues that the era of Aggregation Theory, which explained the dominance of internet companies due to near-zero marginal costs, is ending. The rise of AI models introduces significant compute costs, reintroducing marginal costs into technology. This shift means that hyperscalers will become more capital-intensive, fundamentally altering business models that relied on the internet's previous cost structure. The future of technology will be more expensive and compute-intensive. AI
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RANK_REASON This is an opinion piece by a named credible voice discussing the economic implications of AI on technology business models.
