SCALING LAWS, ECONOMICS, AND THE AI "GAME OF EMPERORS"

Summary from the TLDR newsletter

The ROI on AI has been positive so far. Scaling laws may eventually collide with economics - if they hold. If scaling laws hold and there are no fundamental technology breakthroughs, then the models trained in 2026/2027 are likely to require clusters that cost well over $100 billion. At that point, the ROI on AI may begin declining.