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ai-economy-timelines

A scenario-based model of frontier AI compute. Five components shipped, effective compute is next.

  • Historical baseline — empirical compute & spend baseline for frontier models, derived from the Epoch AI "Notable AI Models" dataset. Log-linear fits, frontier-rule sensitivity, residual diagnostics.
  • Supply capacity model — forward compute-capacity projection 2024–2040: H100-equivalent shipments, installed stock with retirement, power / data-center / capex constraints, utilization derating, binding-constraint identification across four scenarios.
  • Allocation layer — splits total usable compute into 6 buckets (inference, training, AI R&D, post-training, safety/eval, reserved), decomposes the training pool into the largest single frontier run, and produces largest_frontier_run_flop_by_year across the 4 × 4 = 16 supply × allocation combined-scenario cross-product.
  • Review layer — generated DuckDB review database (14 tables, 6 views) and 11-sheet Excel review workbook for SQL queries and at-a-glance review.
  • Scenario explorer — read-only Streamlit app on top of the DuckDB; 9 pages covering overview, scenario matrix, supply, allocation, largest run, effective-compute handoff, assumptions, provenance, and run manifest.

How to read this repo

The docs are organized into four named groups. Read in order if you're new to the project; jump directly if you're looking for something specific.

A. Start here

  1. docs/executive_summary.md — plain-English summary, headline numbers, what's built, what's next.
  2. docs/model_map.md — full model architecture and data flow with diagrams.
  3. docs/model_state.md — what's built vs not built, run commands, output table.
  4. docs/glossary.md — definitions of core terms (frontier training run vs total usable compute, etc.).

B. Reading the outputs

  1. docs/output_guide.md — what each output file means and how to interpret it.
  2. docs/model_walkthrough.md — guided tour through the actual outputs.
  3. docs/review_workbook_guide.md — how to use the DuckDB review database and Excel workbook.
  4. docs/streamlit_demo_guide.md — how to launch and use the interactive scenario explorer.

C. Per-component memos

  1. docs/historical_findings.md — historical-baseline final memo.
  2. docs/supply_findings.md — supply-capacity final memo + allocation-layer handoff.
  3. docs/allocation_findings.md — allocation-layer final memo + effective-compute handoff.
  4. docs/historical_initial_notes.md — sprint-1 working notes for the historical baseline.
  5. docs/supply_initial_notes.md — sprint-1 working notes for the supply capacity model.
  6. docs/allocation_initial_notes.md — sprint-1 working notes for the allocation layer.

D. Reference

  1. docs/scope.md — merged scope for the historical, supply, and allocation components.
  2. docs/component_contracts.md — per-component inputs, outputs, and downstream consumers.
  3. docs/input_provenance.md — where every input comes from, with confidence flags.
  4. docs/data_dictionary.md — historical-baseline column-level schema and source-to-column mappings.

Most important caution

The supply-capacity model estimates total annual usable AI compute. The allocation layer maps that to largest frontier training run. Treating the historical 5.97×/yr frontier-run trend as a forecast of total compute, or treating supply / allocation projections as forecasts of single-run scaling without the bridging share parameters, is the most common reading mistake.

See the executive summary for the full framing.

Setup

uv sync

Run

uv run historical          # rebuild historical-baseline deliverables
uv run supply              # rebuild supply-capacity deliverables
uv run allocation          # rebuild allocation deliverables (requires supply)
uv run database            # build the DuckDB review database
uv run workbook            # build the Excel review workbook
uv run demo                # launch the Streamlit scenario explorer
uv run validate-outputs    # confirm every artifact is present + non-empty
uv run pytest              # run the test suite (32 tests)

The first three pipelines produce outputs/charts/, outputs/tables/, and data/processed/ artifacts. uv run database and uv run workbook are the institutional review layer — they consume those artifacts to produce a single DuckDB file (outputs/database/ai_economy.duckdb) and an 11-sheet Excel workbook (outputs/workbooks/ai_economy_model_review.xlsx). uv run demo launches a read-only Streamlit scenario explorer on top of the DuckDB. See docs/review_workbook_guide.md and docs/streamlit_demo_guide.md for how to use them.

Structure

data/
  raw/                      Raw Epoch CSVs (immutable)
  processed/                Cleaned datasets; outputs of the upstream pipelines
  assumptions/
    supply_input_assumptions.yaml      Single source of truth for supply-capacity inputs
    allocation_input_assumptions.yaml  Single source of truth for allocation inputs
docs/                       Markdown documentation (see "How to read" above)
  assets/
    model_architecture.png  Regenerable architecture diagram
model/
  runtime.py                Shared paths, color maps, source-line strings
  data_cleaning.py          Historical raw-data normalization
  frontier_filters.py       Historical frontier-model rules (A/B/C)
  trend_fitting.py          Historical log-linear fits
  historical_charts.py      Historical chart helpers
  supply_engine.py          Supply-side compute-capacity engine
  allocation_engine.py      Allocation engine (buckets + training-pool decomp)
  review_database.py        DuckDB review-database builder (14 tables, 6 views)
  workbook_export.py        11-sheet Excel review workbook builder
pipelines/
  historical.py             `uv run historical` entry point
  supply.py                 `uv run supply` entry point
  supply_charts.py          Supply chart helpers
  allocation.py             `uv run allocation` entry point
  allocation_charts.py      Allocation chart helpers
  build_review_database.py  `uv run database` entry point
  export_workbook.py        `uv run workbook` entry point
  validate_repo_outputs.py  `uv run validate-outputs` entry point
app/
  streamlit_app.py          Streamlit landing page (`uv run demo`)
  data_loader.py            DuckDB-first / CSV-fallback accessors (cached)
  formatting.py             Number-formatter helpers (FLOP, %, USD)
  charts.py                 Plotly chart helpers
  launcher.py               `uv run demo` entry point
  pages/                    9 sidebar-navigable pages
scenarios/
  supply_*.yaml             Four supply-side scenarios
  allocation_*.yaml         Four allocation scenarios
tests/                      pytest suite (32 tests including output inventory)
outputs/
  charts/                   Final PNGs (historical_*, supply_*, allocation_*)
  tables/                   Fitted-trend / capacity / allocation CSVs
  database/                 ai_economy.duckdb + database_manifest.json
  workbooks/                ai_economy_model_review.xlsx
  runs/                     latest_run_manifest.json

Historical-baseline headline (Rule A, 2018+)

Metric Annual × Doubling n
Training compute (FLOP) 5.97× 4.7 mo 0.84 113
Training cost (2023 USD) 4.89× 5.2 mo 0.72 74
Cost per FLOP 0.76× (~24%/yr decline) 0.21 74

Full memo: docs/historical_findings.md.

Supply-capacity headline (sourced base case)

Scenario 2024 (FLOP/yr) 2040 (FLOP/yr) CAGR Binding 2030
Baseline continuation 3.97e+28 1.65e+31 45.7%/yr capex
Capex-rich 4.37e+28 2.89e+31 50.1%/yr capex
Chip-constrained 3.83e+28 6.54e+30 37.9%/yr chip
Power/DC-constrained 3.50e+28 6.64e+30 38.8%/yr datacenter

Full memo + allocation-layer handoff: docs/supply_findings.md.

Allocation headline (largest frontier training run)

Combined supply × allocation scenarios (4 × 4 = 16). Top and bottom of the range:

Combined scenario 2024 2040 CAGR
capex_rich × training_race (fast) 1.74e+27 9.38e+29 48.1%/yr
base × base (headline) 1.39e+27 6.93e+28 27.6%/yr
chip_bottleneck × inference_heavy (slow) 9.52e+26 7.84e+27 14.1%/yr

Frontier-run share of total compute falls in every scenario (3.5% in 2024 → <1% in most by 2040). The historical Rule A 2018+ extrapolation of 5.97×/yr passes through the allocation envelope around 2027–2028 and reaches ~1e+37 FLOP by 2040 — a ~7 OOM gap that the effective-compute layer will partly address.

Full memo + effective-compute handoff: docs/allocation_findings.md.

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Scenario-based model of frontier AI compute: historical baseline + supply capacity + allocation + review/explorer (5 components, ~100 tests/checks).

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