The Meb Faber Show · Monday, August 31, 2026
Paul Kedrosky highlights that AI represents a new kind of growth, unlike historical bubbles, because it sits at the intersection of multiple forces. He notes that AI's scale is difficult for humans to grasp due to its exponential nature, both in adoption and deflation.
“And the one that specifically triggered that comment was because the scale is growing so quickly and the intersection between the grid can't keep up, people are increasingly being applauded for bringing their own beer, bringing your own power, adding natural gas turbines behind the meter, and that of course has consequences in terms of specificity and energy and emissions.”
“So long answer to a short question, it's going to take a lot of AI to solve the problems created by AI.”
“So AI is kind of the the canonical current example of prodigious scale and exponentials that are completely misunderstood by people.”