The Economics of AI Infrastructure: Compute Costs, Cloud Lock-In, and Competition

We are all watching the AI industry race from one frontier to another. Every few weeks, there's a new model creating hype, a new benchmark that becomes the industry standard, a new agent that promises to do the work of an entire team, or a new approach that makes yesterday's breakthrough look ancient.

I enjoy following these developments as much as anyone here, but there’s a question that is often ignored by us:

What happens when everyone can build with AI, but the infrastructure required to run it remains expensive, scarce, and controlled by a relatively small number of players?

That last part interests me most. We spend a great deal of time asking which model will win. I want to understand what happens when thousands of companies build useful products with AI, then discover that running those products at scale is an expensive business in its own right.

Let...

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