That said, the balance may shift as AI systems improve. As corporations become more "software-like" - with perfect replication of successful components and faster feedback loops - we may see much larger and more efficient firms than were previously possible.
The market continues to serve as the grounding outer loop. How does the firm convert trillions of tokens of data from customers, markets, news, etc every day into future plans, new products, and the like? Does the board make all the decisions politburo-style and use $10 billion dollars of inference to run Monte Carlo tree search on different one-year plans? Or do you run some kind of evolutionary process on different departments, giving them more capital, and compute/labor based on their performance?
What is Coase theorem? How does it apply to this discussion?
Wouldnt AI remove the information asymmetries? We could take this focus back into a single company, where the AI have full knowledge of every department, task, and transaction.
Can you elaborate on that?