Jevons paradox: cheaper tokens → more usage → more expensive hardware.
Cut the price per token, usage grows faster than efficiency, and total demand for the hardware rises. Output gets cheaper while the input gets dearer.
AKA a margin squeeze.
Anthropic just disclosed $265.6B in fixed or minimum compute commitments while cutting the price of what it sells.
Labs are effectively short hardware. Memory is where it's showing first: DRAM contract prices rose 13–18% in Q3, with another 10–15% forecast for Q4.
Any business with a fixed output price and a floating input cost hedges the input. Compute is the exception, because there's no real market to hedge it in.
That's what we're building, starting with DRAM & NAND.