If AI can generate content, write code, analyze data, and automate workflows at near-zero marginal cost, it’s easy to imagine a world where abundance becomes the norm.
But that narrative overlooks something fundamental. AI doesn’t run on ideas. It runs on infrastructure.
Behind every AI model is a massive physical system—data centers consuming enormous amounts of electricity, chips that take years and billions of dollars to produce, and networks that move vast quantities of data around the world. As AI adoption accelerates, demand for these inputs isn’t falling. It’s exploding.
In other words, AI could make digital goods abundant, but it makes the underlying physical enablers more valuable.
This post originally appeared at Investing Daily.