THE REVERSE INFORMATION PARADOX

Summary from the TLDR newsletter

AI creates a problem where buyers risk giving away knowledge just to use what they bought. They essentially pay for intelligence twice: once with money, and again with the proprietary knowledge they must reveal to make that intelligence useful. Over time, the seller learns more and more about their customers while buyers learn very little about what the seller is learning in return. This reverse information paradox needs to be confronted, as companies should be able to use models without giving up knowledge that makes them unique.