The Bitter Lesson and Hayek's Revenge · Soren Larson

What happens when scaling laws meet app physics and economics?

August 1, 2025 8-minute read In Friedrich Hayek’s cornerstone “The Use of Knowledge in Society” he introduces the “man on the spot.” If we can agree that the economic problem of society is mainly one of rapid adaptation to changes in the particular circumstances of time and place, it would seem to follow that the ultimate decisions must be left to the people who are familiar with these circumstances, who know directly of the relevant changes and of the resources immediately available to meet them. But today, with powerful AI models and dominant centralized technology platforms, Hayek’s…

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