Part 7/12:
These progressions have dramatically improved AI quality, leading to broader adoption and increased computational demand. AI outputs are now profitable tokens, meaning businesses are willing to pay for AI-generated work, fueling a self-sustaining virtual cycle: better AI leads to more usage, which drives profit, which funds further AI development and infrastructure expansion.
This virtual cycle explains the recent surge in capital expenditures (capex) across industries, especially in regions like Korea, as companies rush to build AI capabilities to stay competitive.