a16z's Alex Danco and Moses Sternstein on the AI buildout's missing supply response, and the one category where US production is actually shrinking: Moses: "You would think with this epic run on prices, which is what we've had, that you would see an increase in output. That's natural what supply and demand would say. You see it to some extent, but not really. "There's really two levers you can pull. There's utilization, you can get more with what you got, and you can build more capacity." "The real puzzling one, and perhaps the most important one, is electrical equipment, which is like switchgear, transmission stuff, all the stuff that's really necessary to power on all these GPUs and data centers and the electrification of everything." "I was so surprised I had to quadruple check this. Production has actually declined. We actually make less of this stuff... Prices have gone up astronomically. There's a huge impulse in demand and we're actually making less of it." @Alex_Danco @MosesSternstein