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This reads... somewhat naive to me?

The logic breaks down especially in steps 4 and 5.

Why should one assume that high end chips and electric power will be constrained? And why should one assume that AI can't own compute infrastructure or electrical generation capacity?

At a more fundamental level, it has a fixed view of what economic activity even means. If AI output becomes so commodified as to be basically available for the cost of compute, then it's not a very valuable economic activity. Human economic output will move onto other things. Maybe (those of us who are able) will all be OF models. And those of us who are unable, who knows, maybe we will exist as the serfs to the OF models.

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