I kind of think the AI boom is the worst for (non-inference-providing) companies. If all companies are using the same "frontier" LLMs, and if they are competitive, what gives one an edge over the other? I think, just the people. Which was the same as before, but now with the additional AI spend that they can't cut, or they become less competitive.

In introductory economics courses, they teach a simple result showing that in a competitive market, profits tend toward zero.

> If all companies are using the same "frontier" LLMs, and if they are competitive

The answer is that all companies will not be using the same frontier LLMs competitively

This will be yet another technology that will benefit from economies of scale. Big businesses and those in PE portfolios will lead the charge, adopt AI, increase efficiency, and gain market share at the expense of mom and pop shops.

This will be good for our 401ks because we're all primarily invested in big business