LLMs have reduced the Coasian floor of answers and software.

· Bits and Bobs 8/24/26
  • LLMs have reduced the Coasian floor of answers and software.
    • The Coasian Floor is the floor of what it makes sense for any commercial entity to bother producing.
    • It has to do with the cost of making something, marketing it, and supporting it.
    • SEO content had a certain Coasian Floor; the answer had to be something that a non-trivial number of people would plausibly search for to make it worth publishing.
      • LLMs drop that Coasian Floor for answers down by orders of magnitude.
    • The Coasian Floor of software has been even higher, since software is so expensive to write.
      • LLMs drop the Coasian Floor of software by even more orders of magnitude than it did for answers.
    • The killer use case of Chatbots is the space below the Coasian Floor of SEO'd content and answers-on-demand.
    • Each order of magnitude more you drop leads to superlinearly more output now being viable.
    • We'll see many, many orders of magnitude more software than before.
    • Software will feel almost infinite.

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