"The loudest constraint often distracts founders from the real limiting factor. In the California power market, the real bottleneck turned out to be batteries: the ability to save that cheap daytime power and use it at night."
"Everyone is talking about GPUs. What's advertised most broadly right now is that companies are building out their own data centers. But if you're actually trying to build, you'll keep running into the same question: How should AI companies try to get the power or the compute that they need?"
"Founders get misled. They copy whatever the market is obsessing over, and they mistake 'what's loud' for 'what's tight.' In optimization, there's a more useful concept: binding constraints. What's the thing that's stopping you?"
Founders often misidentify the loudest constraints as the most significant barriers to progress. In the California power market, the real bottleneck was battery storage, not renewable energy production. Similarly, in AI, the focus on GPUs can distract from the actual needs for infrastructure logistics. Successful founders must identify binding constraints that truly hinder progress. This involves starting with an objective function to determine the most effective solutions for overcoming obstacles in their ventures.
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