Writing / May 24, 2026 · 1 min · 65 words

Induced Demand

A good piece on why AI pricing is changing

Everyone who deals with road planning knows about is induced demand. Each new capability invents new demand. Highways are the textbook case. Add a lane, you get new commutes. The commutes weren’t there before the lane. AI is the same shape. Cheaper inference doesn’t reduce the bill, it expands what people ask the model to do.