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Applied AI·September 7, 2026·1 min read

An A16z partner says Silicon Valley’s fears of an AI 'permanent underclass’ is a ‘dark fantasy’

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Framing AI as less centralized than past cycles is a bet that diffusion — open models, cheaper compute, broader tooling — will blunt structural labor shocks. Operators should treat this as a scenario, not a guarantee, and stress-test hiring, pricing, and upskilling plans against both concentrated and diffuse AI power.