What will automated firms look like?

This episode explores the transformative potential of Artificial General Intelligence (AGI) on future businesses. Against the backdrop of current limitations in human hiring and training, the speaker posits that AGI's digital nature allows for near-limitless replication of skilled "digital employees," fundamentally altering the relationship between capital and labor. More significantly, the speaker introduces the concept of "Mega Steve," a central AI learning from millions of individual AI instances, vastly exceeding the knowledge capacity of a human CEO. For instance, the speaker contrasts the limited understanding of a human CEO with the potential of an AGI to process and analyze information across an entire organization at superhuman speeds. This leads to a discussion on the evolvability of AI firms, highlighting their ability to replicate and improve upon successful strategies far exceeding the capabilities of human organizations. The speaker concludes by emphasizing that the limiting factor for future AI firms will be compute power, not human talent, and that this will fundamentally reshape the understanding of scarce resources and organizational structures.