What if the AI capex bubble may not be a bubble after all?

Microsoft CEO Satya Nadella recounted Sam Altman's pitch for the OpenAI-Microsoft partnership, which framed human knowledge as a logarithmic function of compute, suggesting that the AI capital expenditure boom may be justified despite bubble concerns.

The way Satya Nadella tells it, Sam Altman had a killer pitch when first discussing an OpenAI-Microsoft partnership: “knowledge is the log of compute.” In other words, human knowledge – about anything – is an increasing function of the amount of computing power thrown at it. And knowledge increases more and more slowly as more compute is applied. Loading...