Comment by fancyfredbot
3 months ago
Fun thought experiment: If a company had a product with infinite value it would be irrational to allocate capital to shares since you could own the product instead. So the share price might even go down (it's hard to know what role money will play in a post-agi society).
A smaller scale version of this might be happening here. Or it could be a bubble. Either way it's interesting!
Obviously we’re not ever going to see “infinite value”. I think it’s instructive to think of this on the margin or in terms of limits: would a putative AGI have an inflection point at which more of it produces less value, and even if it’s productive capacity were high, it could not be “infinitely high” (which would make it an economic absurdity).
Additionally, for the AGI producer (or platform host), there would have to be some way of price function that would cover the costs of operating or providing the AGI service.
Thus, a more realistic look at this is “purchasers of AGI would have no reason to purchase “more” of it beyond a certain threshold, after which it is no longer useful to their ends, however purchasing shares of the AGI producer would expose them to value from new customers who could use it better”