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Cybernetic Arbitrage · Soren Larson

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AI is inverting Aggregation Theory: why it pays to own assets where context is born.

December 18, 2025 12-minute read Summary: AI commoditizes intelligence, forcing profits to migrate to asset-heavy Cybernetic Rollups that own context at the edge. I started this blog five months ago to combat a venture narrative I'm now convinced is wrong. The narrative: That AI's winners will be middleware SaaS companies––agentic platforms, cognition resellers, outcomes-pricing vendors––selling intelligence to businesses that own outcomes. Effectively installing brains in another's body . It's been posed by venture's best Sell work not services Services as software Software is eating labor Se

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