alt Hacker NewsWhy is written with an assumption that we have finite hardware production capacity? Industrial processes can scale up, new factories can come online… it will take a while but the whole point of economics is that supply will scale to meet demand. The shortage is a temporary, point-in-time metric.
And that’s not considering the software innovation that can happen in the meantime.
The economic hypothesis that has dominated the past hundred years is that economic growth is infinite because resources are infinite and (almost) free. We all know this is unrealistic and disconnected from our human condition.
Regarding "innovation", I agree with your idea. I even think that the major innovation will be to transpose models locally, using reduced infrastructures that will still be sufficient for the majority of use cases.