The best Jevons Paradox/induced demand explainer ever:
Jevons paradox
21–30 of 165 posts
Re: Jevons paradox
#22The intuition behind this is that people who had a usecase for the tech but were locked out because they couldn't afford it, or didn't believe it was worth it usecase can be engineers or researchers. Some of these people may perform better than expected causing a gap in true market value which is filled when they scale up to their new size
Related: Jenson's Paradox: The more you buy, The more you save
Re: Jevons paradox
#23This has actually been on my mind lately and I've been looking for statistics, from Denmark, but haven't been able to find any going back far enough. My assumptions is that we in the late 1940s through the 1950s had achieved a reasonable standard of living, but perhaps not available to all. Even if we assume that everyone in a country has access to the same, high, late 1950s standard of living, but applied modern tec…
Well I can answer one question for you. There are studies that show that better insulation only briefly lowers the energy use. Once people adjust to the new insulation they end up heating or cooling their houses more since in their mind it is cheaper, but they end up using the same or more energy. https://www.cam.ac.uk/research/news/insulation-only-provides...
I would not have guessed that that would be the answer. That's kinda crazy, but it also makes sense, every time I visit someone in a newly built home the temperature is always crazy high.
Re: Jevons paradox
#24Earlier quoted context omitted.
I can't wait for the 2000 dot com crash for AI. What gets me about the deepseek work is that it's neither novel or theoretically difficult. I've been using a similar synthetic data pipeline to generate examples for sota bert embedding models. That low-hanging fruits like this are left unexplored by meta or alphabet - and if we're to be believed lead to crisis meetings for a week straight - makes one wonder wtf the en…
This is just a baseless conspiracy theory that I have, but I do wonder if they intentionally avoided certain avenues of research because it could erode the “moat” major tech firms have by dramatically reducing the capital costs required for training and inference. If you focus your research around work that mandates high-end hardware at scale you can lock out tons of potential incumbents
There is nothing in the deepseek paper that suggests you can't use the order of magnitude in hardware costs you saved to just train models that are ten times as large.
Re: Jevons paradox
#25Lots of NVDA holders and NVIDIA itself, trying to justify their valuations, but forgetting the Theory of Constraints will set limits on your Jevons Paradox. The only thing relevant, is the large sale that Nancy Pelosi did before the crash. Another incredible coincidence again of course, by one of he most successful hedge managers in history... https://www.newsweek.com/nancy-pelosi-sells-nvidia-stock-wee...
Sold last year. This is not really the place for misleading low-effort politics.
Re: Jevons paradox
#26Current market panic looks like early railroad investors freaking out that someone made a faster train that goes over same tracks.
Re: Jevons paradox
#27Lots of NVDA holders and NVIDIA itself, trying to justify their valuations, but forgetting the Theory of Constraints will set limits on your Jevons Paradox. The only thing relevant, is the large sale that Nancy Pelosi did before the crash. Another incredible coincidence again of course, by one of he most successful hedge managers in history... https://www.newsweek.com/nancy-pelosi-sells-nvidia-stock-wee...
Sold last year. This is not really the place for misleading low-effort politics.
Sure, 31 December 2024 is by definition last year, but at the same time that was not even a month ago.
Re: Jevons paradox
#28Earlier quoted context omitted.
Sold last year. This is not really the place for misleading low-effort politics.
Sure, 31 December 2024 is by definition last year, but at the same time that was not even a month ago.
Come on. Which do you think is more likely, that it was a normal EOY sale of a lucrative stock, or that they sold based on insider info obtained weeks before anyone else?
Re: Jevons paradox
#29The paragraph on deepseek reads like cope from an NVDA bagholder tbh.
Re: Jevons paradox
#30I see it already mentioned in the page ;)
Jevons Paradox and DeepSeek AI
The Jevons Paradox, an economic principle stating that increases in efficiency often lead to higher overall consumption, has been observed in the context of DeepSeek AI. DeepSeek, a Chinese AI startup, recently introduced its R1 model, which achieves comparable performance to leading AI systems like OpenAI's ChatGPT while requiring significantly less computational power and energy. This efficiency has made the technology more accessible and affordable, spurring wider adoption across industries.[30] As Microsoft CEO Satya Nadella noted, the increased accessibility and efficiency of AI tools like DeepSeek's R1 model could lead to a surge in applications and use cases. This expanded usage may result in higher energy consumption overall, despite individual efficiencies. For example, while DeepSeek's model uses fewer resources per task, the growing demand for AI-driven solutions—ranging from chatbots to complex reasoning models—could increase the total energy requirements of the global AI infrastructure.[31]