alt Hacker News> Now if that means RAM prices come down (as speculated, not reported on, in the link) or the AI companies just do more things with their extra ram is yet to be determined.
I think it is determined:
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Jevons paradox only applies if demand hasnt already been saturated.
The fact that public LLM usage is leveling off at a price of $0 and Jensen "we make the shovels in this gold rush" Huang is rather desperately claiming that you need to spend $250k/year in tokens to be taken seriously suggests that demand saturation may not be that far off.
Whether Jevons' Paradox applies to software engineers I think is another open question. Im constantly being told that it doesnt and that LLMs make half of us redundant now, but Im skeptical - so much automation I see is broken or badly done.
Yeah, even if one efficiency trick lands, people will end up spending the saved budget right back on bigger models, and/or more "thinking" tokens.