Marc Andreesen on why building companies will become more expensive in the AI Era. There's a notion that AI will help cut down costs and increase efficiency. However, Marc presented a strong counterargument by referencing Jevon's paradox. Jevon's paradox: The Jevon's paradox occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of use induces increases in demand enough that resource use is increased, rather than reduced. He gave some eg of Jevon's Paradox: ->Building roads will only lead to more cars & resulting in traffic. ->CGI in hollywood was developed to reduce the cost of film making but people's expectation increased, so cost involved in CGI also increased. ->Coal consumption increased in Industrial Revolution when the coal prices decreased. He says,The paradox here making cost of a given piece of software would be reduced, but the massive surge of demand for more powerful softwares will actually increase the cost of building a software company. Customers will start seeking for more & more powerful features.