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AI Disruption




A Lesson from the Corporate Trenches

I still remember the day I realized how brutal corporate politics could be. Fresh out of college, eager to prove myself, I landed a job at a top tech firm. I had ideas, enthusiasm, and the naïve belief that innovation alone determined success. But reality hit me hard.

One of my projects—a more efficient software solution—threatened an established team's product. Instead of support, I faced resistance. My emails went unanswered, meetings were mysteriously rescheduled, and suddenly, my "collaborators" were my biggest roadblocks. When my idea finally gained traction with higher-ups, credit was subtly redirected to someone else. That’s when I learned: innovation is powerful, but power plays matter more.

Fast forward to today, and we’re witnessing corporate politics on a much grander scale—this time in the world of AI and semiconductor giants.

DeepSeek’s AI Breakthrough: The Disruption No One Saw Coming

Imagine you run a trillion-dollar industry based on selling expensive chips that power artificial intelligence. Then, out of nowhere, a company proves that the same AI can be built and run with dramatically less computing power. That’s exactly what just happened.

DeepSeek’s latest AI breakthrough has shown that what once required $100 million in hardware can now be done with just $5 million. The impact was immediate—stock prices of semiconductor giants like Nvidia, Broadcom, and ARM took massive hits, wiping over $1 trillion from the US market.

At first glance, this seems like a catastrophe for chipmakers. If AI can now be run on fewer chips, demand should drop, right? Not so fast.

The Jevons Paradox: Why This Crash Might Be a Mirage

Back in 1865, an economist named William Jevons observed something unexpected: when new technology made coal more efficient, people didn’t use less of it—they used more. As coal became cheaper, industries found more ways to use it, leading to higher demand overall.

The same principle applies to AI chips. If running AI becomes cheaper and more efficient, AI adoption will skyrocket. Companies that previously couldn’t afford large-scale AI models will now enter the game. Startups, small businesses, and even individual developers will harness AI like never before.

Corporate Politics at Play: Winners and Losers in the AI Revolution

Much like my experience in corporate life, the semiconductor giants are now fighting for survival. Their entire business model—selling expensive, high-performance chips—just took a major hit. But don’t expect them to sit quietly and accept their fate.

Here’s what will likely happen next:

  1. Lobbying & Regulation: Expect aggressive lobbying efforts to shape AI hardware regulations in ways that favor existing players. If DeepSeek’s approach threatens the old guard, regulatory roadblocks may conveniently appear.
  2. Acquisitions & Partnerships: Big tech firms will either buy out disruptive competitors or form alliances to maintain their market dominance. If you can’t beat them, own them.
  3. Strategic Misdirection: Public narratives will shift. Expect messaging that downplays the impact of this breakthrough or emphasizes new "must-have" features that still require high-end chips.

The Bigger Picture: AI for Everyone

Despite market panic and corporate maneuvering, the long-term outcome is clear—AI is becoming more accessible. The cost of intelligence is dropping, and just like how cheap cloud computing revolutionized software development, affordable AI will transform industries beyond tech.

This is a classic case of short-term fear vs. long-term innovation. The market may be crashing today, but tomorrow, AI will be everywhere. And just like in corporate politics, those who adapt will thrive, while those who resist will be left behind.

The AI revolution isn’t slowing down—it’s just getting started.

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