The most valuable data for creating intelligence is private and locked within enterprises. This proprietary data will be used to create millions of specialized AI models, each outperforming general-purpose models for specific tasks, creating a diverse AI ecosystem.

The market for AI models follows a power law with a very strong preference for quality. Amodei compares it to hiring employees: people will disproportionately seek out the single best "cognitively capable" model, making price and other factors secondary.

The key to predicting AI's economic impact is not focusing on the abundance it creates, but identifying what will remain scarce. As automation made goods cheap, the economy shifted to scarce services. The next economic transformation will similarly be driven by whatever human skills or experiences AI cannot replicate.

Just as developers use various databases for different needs, AI applications will rely on a "constellation" of specialized models. Some tasks will require expensive, high-reasoning models, while others will prioritize low-latency or low-cost models. The market will become heterogeneous, not monolithic.

The cost for a given level of AI capability has decreased by a factor of 100 in just one year. This radical deflation in the price of intelligence requires a complete rethinking of business models and future strategies, as intelligence becomes an abundant, cheap commodity.

If AI makes intelligence cheap and universally available, its economic value may collapse. This theory suggests that selling raw AI models could become a low-margin, utility-like business. Profitability will depend on building moats through specialized applications or regulatory capture, not on selling base intelligence.

Zack Kass's central thesis is that AI will make intelligence so cheap and widespread that it becomes a utility, like electricity. This shift from scarcity to abundance will democratize capability and redefine individual potential, much like the printing press democratized information.

While AI will make average performers good, its most dramatic effect will be making great performers spectacularly great. By augmenting top talent in fields like coding, art, or science, AI enables a single individual to achieve productivity levels previously requiring large teams, creating a new class of hyper-achievers.

The internet leveled the playing field by making information accessible. AI will do the same for intelligence, making expertise a commodity. The new human differentiator will be the creativity and ability to define and solve novel, previously un-articulable problems.