Tech Tycoons have Got the Economics of AI Wrong

Even as was just removing, some financial experts were already cynical. Coal, wrote William Stanley Jevons in 1865, is « the mainspring of contemporary product civilisation ». Yet it was finite and would soon go out. Although more could be discovered by digging deeper, it would be progressively expensive to extract and these higher expenses would decrease the competitiveness of Britain’s producers. After all, in other nations the black fuel was still in sight of daytime. Efficiency gains-using less coal to produce the exact same quantity of stuff-would not save the country. Indeed, cleverer use of minimal resources would just supply a reward to burn a lot more coal, which would, paradoxically, result in an even faster use of British reserves. There was no escape, the Victorian financial expert believed. Coal would be tired and the nation was likely to « agreement to her former littleness ».

Explore more

This short article appeared in the Finance & economics area of the print edition under the headline « Rocked by DeepSeek »

Finance & economics February 1st 2025

Donald Trump’s economic warfare has a new front

Will America’s crypto frenzy end in catastrophe?

Don’t let Donald Trump see our Big Mac index

Giorgia Meloni has grand banking aspirations

Can Germany’s economy stage an unexpected recovery?

Why your portfolio is less varied than you may believe

Tech tycoons have got the economics of AI wrong

From the February 1st 2025 edition

Discover stories from this section and more in the list of contents

More from Finance & economics

Why your portfolio is less varied than you may think

The most essential concept in modern financing has become maddeningly difficult to implement

Can Germany’s economy phase an unforeseen healing?

The circumstance is dire, but there are twinkles of hope

Giorgia Meloni has grand banking ambitions

Will Italy’s nationalist prime minister handle to focus financial power?

Donald Trump’s financial warfare has a new front

The president has actually threatened to explode the international tax system. Will allies be able to stop him?