The GPU Economy I: Redefining Risk

How do GPUs change the risk rate equation?

Traditionally, an economy can be visualized as a board of assets, like houses and offices. A red line divides new graduates from these facing a choice: start their own company or join an existing one? Rent or build together?

These decisions have shaped risk and interest rates for centuries. Communities helped each other build homes. If the houses were built for the new adults by the community, you could help for half a career of 20 years and get yours built in a year by others in exchange. The net present value of the investment shows a 5% annual payback to the community.

Why not 40 years and 2.5% interest is interesting. It is probably related to the fact that by the half of your career you gained experience and you have definite plans for the rest and less time to share. You also do not have the utility of a new house with the expectation not living forever. This change of memory is also a change of consumption patterns across generations. It's interesting to note that downturns often occur every 20 years, when flawed assumptions become clear and the decision makers retire.

Raising animals for food was another interesting price setter. A single family could not eat a cow, so they cut it together with the community always sharing it with others. The ratio of a daily portion and the cow made small villages build a community and farmer's market.

Refrigeration made supermarkets and big cities possible. Cows were transported to Chicago from Texas sustaining a way more versatile economy. Transportation costs and risks built the commodity, futures, and derivatives exchange.

AI will have a similar effect on education. It will give an option for knowledge, and an opportunity as a consumer for insights and data. The data of the human as a sole consumer may be the sole product for AI consumption, and consumer good production by robots. Their existence depends on their human consumer.

Link of the day.
Englang scripts to generate an ERP with generative agentic AIs. Here.