The Real Value of AI Isn’t General Intelligence

The current narrative around AGI has become too simplified, overly corporate in its winner-take-all framing. While AGI’s impact on humanity will surely be profound, the real economic opportunity lies in narrow, cost-efficient models that can handle specialized tasks.

The trajectory for AGI, then, seems clear. As AI models get better, they hit a point of being “good enough,” and then pivot toward specialized applications. This specialization—not general intelligence—is where most of the economics of AI will be captured. Down the line, the best founders will likely not be comparing foundation model capabilities, ... See more

Why wouldn't everyone adopt AGI for everything once it's available? Simple: economics. Absent a more efficient breakthrough architecture, AGI will be inherently more power-hungry and expensive than specialized models with a narrower focus. And that expense goes beyond just electricity costs for inference, the process by which an AI model applies it... See more