Zero Marginal Costs and Generative AI

¿Is it the beginning of a new era of Economic Efficiency?

As an AI Engineer, when I think about the concept of Zero Marginal Cost, Generative AI immediately comes to mind. In this blog post, we will explore the relationship between these two powerful ideas.

¿What is Zero Marginal Cost?

Zero Marginal Cost, as popularized by Jeremy Rifkin, refers to the idea that the cost of producing additional units of a good or service can approach zero.

Source: https://amzn.to/46PKi1B

¿What is Generative AI?

Generative AI is a type of artificial intelligence capable of creating new content, such as text, images, music, or videos.

The Cost Side: Zero Marginal Cost

First, let’s analyze the cost aspect in relation to Zero Marginal Cost:

Improved GPU Price-Performance: The amount of floating-point operations/second per US dollar doubles every ~2.5 years.

• This is in line with Moore’s law: 2x every 2 years, Huang’s law: 2x every 1.08 years and historical CPU: 2x every 2.32 years