Everything on Industry Dynamics

The brute-force approach to AI, where frontier labs throw massive amounts of compute at training runs, is reaching its limits. As capital growth stalls, the industry will shift toward engineering efficiency and optimization.

Impact: Companies that invest in engineering efficiency will be better positioned to adapt to the shifting landscape, reducing reliance on capital-intensive model training.

— from Engineering Over Brute Force in AI · AI + a16z· Feb 17, 2026

The removal of EV subsidies in China has led to a 30% drop in BYD sales, forcing automakers to rely on exports and organic demand.

Impact: Accelerates the maturation of the Chinese EV sector, favoring companies with strong export capabilities and cost efficiency over those dependent on state support.

— from SpaceX-XAI Merger, US-India Trade Deal, and APAC Market Shifts · Bloomberg Daybreak: Asia Edition· Feb 03, 2026