This ability to turn capital into compute and compute into equivalents of your top talent is a fundamental transformation

you can amortize the training cost across thousands of copies,

Small previously successful teams (think PayPal Mafia, early SpaceX, the Traitorous Eight) can be replicated to tackle a thousand different projects simultaneously. It's not just about replicating star individuals, but entire configurations of complementary skills that are known to work well together. The unit of replication becomes whatever collection of talent has proven most effective.

All of Google’s 30,000 middle managers can be replaced with AI Sundar copies. Copies of AI Sundar can craft every product’s strategy, review every pull request, answer every customer service message, and handle all negotiations - everything flowing from a single coherent vision.

There is no principal-agent problem wherein employees are optimizing for something other than Google’s bottom line, or simply lack the judgment needed to decide what matters most.1 A company of Google's scale can run much more as the product of a single mind—the articulation of one thesis—than is possible now.2

Mega-Sundar will constantly be spawning specialized distilled copies and reabsorbing what they’ve learned on their own.

no miscommunication, ever again.

Humanity's great advantage has been social learning – our ability to pass knowledge across generations and build upon it. But human social learning has a terrible handicap: biological brains don't allow information to be copy-pasted. So you need to spend years (and in many cases decades) teaching people what they need to know in order to do their job.

Future AI firms will accelerate this cultural evolution through two key advantages: massive population size and perfect knowledge transfer.

Historical data going back thousands of years suggest that population size is the key input for how fast your society comes up with more ideas. AI firms will have population sizes that are orders of magnitude larger than today's biggest companies - and each AI will be able to perfectly mind meld with every other, from the bottom to the top of the org chart.

AI firms will look from the outside like a unified intelligence that can instantly propagate ideas across the organization, preserving their full fidelity and context. Every bit of tacit knowledge from millions of copies gets perfectly preserved, shared, and given due consideration.

Future AI firms won’t be constrained by what's scarce or abundant in human skill distributions

The limiting factor isn't finding or training rare talent – it's just compute.

So what becomes expensive in this world? Roles which justify massive amounts of test- time compute. The CEO function is perhaps the clearest example. Would it be worth it for Google to spend $100 billion annually on inference compute for mega-Sundar? Sure! Just consider what this buys you: millions of subjective hours of strategic planning, Monte Carlo simulations of different five-year trajectories, deep analysis of every line of code and technical system, and exhaustive scenario planning.

the cost of storing raw information is so unbelievably cheap (and it’s only decreasing

If human-level intelligence is more than 1 trillion parameters,

The scale of difference between currently existing human firms and fully automated firms will be like the gulf in complexity between prokaryotes and eukaryotes

His theory states that the lower the intra-firm transaction costs, the larger the firms will grow. Five hundred years ago, it was practically impossible to coordinate knowledge work across thousands of people and dozens of offices. So you didn’t get very big firms. Now you can spin up an arbitrarily large Slack channel or HR database, so firms can get much bigger.

Markets facilitate an evolutionary process which selects not only goods and services, but the institutions that are best at turning the world into valuable goods and services.