AI Value Doesn't Scale Linearly with Human Consumption
Large Language Models (LLMs) are generating exponentially more tokens than they did just three years ago. However, the percentage of these tokens actually read by humans has plummeted to below 0.00001%. Value in AI is increasingly derived from utility tokens used for reasoning and agentic processes that humans never directly interact with.
This includes outputs from code generation, which can provide significant value even if the generated code itself remains unread by a human. The inherent utility of these unseen tokens demonstrates that AI's value growth is not tied to human consumption rates, but rather to its backend processing capabilities.
According to Theo, "The number of tokens being generated goes up. The amount of value we get from those tokens being generated goes up. But the amount that we are reading goes down, not as a total number, but as a percentage."


