Tag: exponential growth

Categories
AI Anthropic Business Google

The Weight of the Bill

Technicians working among server racks with real-time performance graphs displayed on overhead screens
Technicians monitor server performance and network data in a modern data center

Jordi Visser has been making the case for months — in his weekly YouTube commentary and on his Substack — that we are living through an exponential transition that most people are measuring with the wrong instruments. I think he’s right. I found two data points this week that suggest why.

I was somewhere in the middle of an Invest Like the Best episode when Dylan Patel said it — almost as an aside, the kind of thing you drop to establish context before moving on to the point you actually came to make. His firm, SemiAnalysis, analyzes the semiconductor and AI industries for a living. And their usage of Claude, he noted, has been growing. The costs have been growing too.

Exponentially.

He moved on. I didn’t.

I think Patel’s API bill might be one of the more honest documents in the current AI moment — more honest than the analyst reports his firm produces, more honest than the earnings calls where every public company performs its AI fluency for shareholders.

Surveys bend. When you ask someone whether they’re using AI in their work, you’re asking them to self-report on a technology that has become a proxy for relevance, for not being left behind. The incentive to say yes is enormous. And even when the yes is genuine, it tells you nothing about depth — whether AI has become load-bearing in how someone actually works, or whether it’s an impressive thing they do occasionally.

Nobody pays exponentially growing API costs for show. Money is the honest witness.

What makes Patel’s situation quietly strange is the recursion in it. SemiAnalysis exists to help sophisticated investors and technologists understand this industry — and they cannot predict their own consumption curve. They are inside the exponential the same way everyone else is. They just happen to be watching their bill.

Then this morning, a different number arrived. Google announced it will invest up to $40 billion in Anthropic — $10 billion committed now, another $30 billion contingent on performance milestones. This follows a separate $5 billion from Amazon, part of a broader arrangement under which Anthropic is expected to spend up to $100 billion on compute over time.

The temptation with numbers like these is to treat them as spectacle. Forty billion dollars is so large it becomes almost aesthetic — a statement about ambition, about the kind of bets that define eras. You feel the weight of the zeros and move on.

But I keep coming back to Patel’s API bill.

Because Google’s $40 billion and SemiAnalysis’s compounding monthly costs are saying the same thing, expressed at scales so different they almost don’t seem related. One is a research firm noticing that their tool usage has quietly escaped prediction. The other is one of the most sophisticated capital allocators on earth making a bet that strains comprehension. But both are pointing at the same reality: that this technology, wherever it takes hold, does not plateau. It compounds.

We have been waiting, I think, for the moment when AI adoption becomes legibly real — some threshold event that separates the signal from the noise, the press release from the actual change. The surveys were supposed to mark that moment. The enterprise announcements. The benchmark numbers.

Patel’s aside suggests we’ve been waiting for the wrong thing. You don’t arrive at the exponential. You just eventually notice you’re already in it — in an aside on a podcast, before moving on to the point you actually came to make.

Categories
AI IBM

From Picnic to Workforce: The New Scaling

In 1977, Charles and Ray Eames released a short film for IBM called Powers of Ten.

The film opens with a couple picnicking on a blanket in Chicago and zooms out—every ten seconds, the field of view increases by a factor of ten.

We move from the intimacy of a lakeside lunch to the edge of the observable universe, then plunge back down through the skin of a hand into the subatomic architecture of a carbon atom.

The subtitle was “A Film Dealing with the Relative Size of Things and the Effect of Adding a Zero.”

It was a meditation on scale, suggesting that as we add zeros to our perspective, the very nature of what we are looking at transforms.

Today, with AI, we are living through a new kind of “Powers of Ten” journey, but the zeros aren’t being added to meters; they are being added to tokens.

I recently read a reflection by Azeem Azhar where he chronicled his shift from using 1,000 AI tokens a day to nearly 100 million. In the Eames’ film, adding a zero moved you from a park bench to a city, then to a continent. In the world of Large Language Models, adding a zero moves the AI from a novelty to a tool, then to a collaborator, and eventually—at the scale of 100 million—to something resembling a “workforce.”

“At 100,000 [tokens], a collaborator. At 1 million, I was building workflows. At 10 million, processes. At nearly 100 million – something closer to a workforce.”

This shift is more than just “more of the same.” It is a phase change.

When the Eames’ camera zoomed out to $10^{24}$ meters, the Earth didn’t just look smaller; it disappeared into a texture of galaxies.

When we scale our interaction with intelligence by several orders of magnitude, the “picnic” of human cognition—the way we think, draft, and create—is no longer the center of the frame.

At the 100-million-token-day scale, we aren’t just “using” AI. We are orchestrating vast, invisible ecosystems of thought. We are seeing companies like Spotify where top developers reportedly haven’t written a line of code in months, instead directing systems that ship features while the humans review the output from their phones.

We have added so many zeros that the “relative size” of human effort has changed.

The chilling yet beautiful thing about Powers of Ten was the realization of our own insignificance in the face of the cosmos, balanced by the intricate complexity found within our own cells.

As we zoom out into the “Token-Verse,” we face a similar existential pivot. If an AI can process a hundred million tokens of “thought” in a day—a volume no human could read in a lifetime—what does it mean to be the “author” of our lives?

The answer, I suspect, lies back on the picnic blanket.

The Eameses knew that while the scale of the universe is staggering, the meaning is found in the connection between the two people on the grass.

As we add zeros to our digital capabilities, our value shifts from the production of tokens to the intention behind them.

We are no longer the builders of the cathedral; we are the ones deciding why the cathedral needs to exist at all.

We are moving from the era of the “Worker” to the era of the “Architect” or maybe just the “Witness.”

Categories
Living Mathematics

The Curve That Blinds Us

There is a fundamental mismatch between the hardware in our heads and the software of the modern world. We are linear creatures living in an exponential age. We can be stunned by exponential growth.

Our ancestors evolved in a world where inputs matched outputs. If you walked for a day, you covered a specific distance. If you walked for two days, you covered twice that distance. If you gathered firewood for an hour, you had a pile; for two hours, you had a bigger pile. Survival depended on the ability to predict the path of a spear or the changing of seasons—linear, predictable progressions.

But nature and technology often behave differently. They follow a curve that our intuition simply cannot map.

If a lily pad doubles in size every day and covers the entire pond on the 30th day, on which day does it cover half the pond? Our linear intuition wants to say the 15th day. But the answer, of course, is the 29th day.

For twenty-nine days, the pond looks mostly empty. The growth is happening, but it feels deceptively slow. We look at the water on day 20, or even day 25, and think, “Nothing is happening here. This is manageable.” We mistake the early flatness of an exponential curve for a lack of progress.

This is the “deception phase” of exponential growth. It is where dreams die because the results haven’t shown up yet. It is where we ignore a virus because the case numbers seem low. It is where we dismiss a new technology because the early versions are clumsy and comical.

Ernest Hemingway captured this feeling perfectly in The Sun Also Rises when a character is asked how he went bankrupt. His answer:

“Two ways. Gradually, then suddenly.”

That is the essence of the exponential. The “gradually” is the long, flat lead-up where we feel safe. The “suddenly” is the vertical wall that appears overnight.

The tragedy is not that we fail to do the math—we can all multiply by two. The tragedy is that we fail to feel the math. We judge the future by looking in the rearview mirror, projecting a straight line from yesterday into tomorrow. But when the road curves upward toward the sky, looking backward is the fastest way to crash.

To navigate this world, we must learn to distrust our gut when it says “nothing is changing.” We have to look for the compounding mechanisms beneath the surface. We have to respect the 29th day.