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Terr_today at 8:40 AM1 replyview on HN

> If there were known "make more software, make more money" opportunities available, they would have already done them.

Sometimes they're available, but not palatable, when the opportunity could threaten their existing investments or patterns. That might mean "self-cannibalism", or changing the ecology so that the main product niche is threatened.

Then those opportunities are ignored, or actively worked-against via lobbying, embrace-extend-extinguish, etc.


Replies

netcantoday at 10:46 AM

Ok... but this just generalizes into the "known things" type.

Whether the reason of strategic (like your example), internal politics, insufficient knowledge.... The point is that there is a local equilibrium, and most mature firms are at this equilibrium.

More resources via Ai, at first order, goes after that diminishing returns part of the curve... which is a cliff especially for highly resourced firms topping the S&P500.

A lot of Ai-optimist:s " mental model" of the economy do not account for this stuff at all.

"Save time/money" outcomes are not similar at all to "make more stuff" outcomes. Firing employees does freeze up labour... but reutilizing this labour is non-trivial... as this article demonstrates quite well.