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In The Media

Jevon and Larry’s Paradox

by Larry Chiang on September 7, 2026


Price of Tomorrow 
The Price of Next Month
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Under. The. Table. 
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•  The post questions whether rapid AI price deflation—matching 15 years of PC price drops in just 3 years, per the quoted Barchart chart on LLM costs—is sustainable for AI’s debt-heavy capex boom in data centers and chips.
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•  Hyper-deflation boosts consumer adoption and efficiency but risks undermining ROI on massive upfront investments by compressing margins and requiring explosive demand growth to service financing.
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•  Replies highlight broader economic risks: central banks struggle to stimulate amid deflation, while the US’s debtor status may push toward inflation as a counterbalance.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

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