Cheaper AI models create more demand for technology, expert argues

July 21, 2026 - 00:13

The rise of more affordable artificial intelligence models is not slowing down the technology sector but instead creating a wave of new demand, according to a market expert. Eric Jackson, founder and chief investment officer of EMJ Capital, argued that lower costs for AI tools are expanding the market rather than shrinking it.

Jackson made the comments while discussing recent gains in NeoCloud stocks, which have soared on the back of new AI deals. He pointed to a surge in demand for computing power as businesses that previously could not afford high-end AI systems now jump in. "When you make something cheaper, more people use it," Jackson said. He noted that the trend is driving investment in data centers, chips, and cloud infrastructure.

The argument counters fears that cheaper models would hurt revenue for major tech firms. Instead, Jackson sees the shift as a positive force, boosting volume across the industry. The analysis comes as companies race to deploy AI in everything from customer service to logistics, with lower barriers to entry fueling a broader adoption cycle.