Atreides Management CIO Gavin Baker said the firm’s internal AI spending in August 2026 will be roughly 100 times higher than in March and is still approximately doubling each month. He attributed the increase to AI’s deeper role in investment research and other knowledge-based work, and said companies may need to balance computationally efficient humans, cheaper open-source AI models and more expensive frontier models. Baker warned that AI could make scale more important in investing and create compute inequality, with organizations able to consume substantially more AI gaining an advantage. He also expects Atreides’ costs could rise sharply if Grok Bot moves to consumption-based pricing. Elon Musk, who owns xAI and its Grok chatbot, shared Baker’s post on X with the response "Interesting." The discussion follows BlackRock CEO Larry Fink’s warning in May that AI’s high adoption costs could produce a "K economy," as shortages of electricity, semiconductors and data-processing capacity deepen. Fink also predicted that "a new asset class will be buying futures of compute."