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The high costs of data centers has limited the expansion of AI for now, creating an oligopoly market.

Compute Constraints and the New Economics of Scarcity in AI

AI is here and creating wonders, but it's not expanding as rapidly as many first predicted. The reason is significant cost and supply constraints, limiting AI data centers to only a handful of large firms. What are the economic implications of this AI bottleneck?...
4 min read
Definitions

Affordability

Saddique Ansari • January 28, 2020 • 1 min read

Author bio

Affordability of housing

The Halifax housing affordability index shows the changing burden of mortgage repayments as a percentage of disposable income – income less income tax and national insurance contributions (NICs).

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Next Post Definition of ad valorem tax

Definition of ad valorem tax

We all have the same 24 hours in a day, meaning our attention is a valuable asset to advertisers!

Attention Markets and the Economics of Time Scarcity

Firms have only limited human attention spans to advertise to, creating attention markets that lead to rising advertising costs. As platforms capture more consumers' attention, what are the economic effects of potential monopolies on this attention?...
4 min read

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