📈 Data to start your week: The AI capacity trap

Cheaper AI was supposed to ease the compute crunch. Instead, it made it worse. The Jevons paradox, applied to intelligence, means that every time the price of a token falls, demand rises faster than supply can scale.But the labs can’t clear the queue by raising prices — their customers will defect to the next best alternative. So the compute crunch shows up where economists would least expect it. As we wrote yesterday, OpenAI is passing on opportunities, Anthropic is adjusting session limits for...