nostr:nprofile1qy2hwumn8ghj7un9d3shjtnddaehgu3wwp6kyqpq4qnucznluuxm7p9hlkm3eh6q20m9f7ut8azztlew75cf3c4zlqhsa9yr94 I actually did not say that. But now that you've raised the subject, let me address it: increased demand does not *necessarily* result in increased supply.

When does supply not increase? For instance, when it is physically, technically, economically, or politically impossible. As you might have heard, the US has a demand for rare earth metals. Too bad, they are mostly produced in China these days. The US can't snap its fingers and have them mined from the US tomorrow - not because there aren't any but because there are a ton of regulations that prevent it and because they will be more expensive than the Chinese ones. Trump tried to secure a supply from Ukraine, but the Russians took over most of the territories that have them. So, unless the US arranges trade with China in a civilized manner (instead of imposing exorbitant tariffs) the supply won't appear any time soon regardless of the demand.

The energy demand from AI *does* impact the supply/demand equation. But it is *much* more complex than what the economic illiterates claim. The increased energy demand is likely to result in increased prices first (unless the demand for money drops; the laws of supply and demand apply to money too, not just to goods and services). The increased prices are likely to stimulate investment in more energy production.

And if AI disappears tomorrow, energy won't stop being produced. Its price might drop, or it will be redirected for other uses. I mentioned Bitcoin mining as a joke but it *has* been used when energy is very cheap.