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David W's avatar

Limited liability is a much bigger benefit for a small company than a large one. If you look at an bet to either make 100 million or lose 100 million on a coin flip, but your company is only worth 20 million, the corporate structure transforms that into a +40 million expected value. If your company is worth 20 billion, that bet is worth zero.

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Dave Friedman's avatar

There's a lot of debate right now about how quickly big corps will adopt AI tech. The AI influencers/SV set seem to think that AI's takeover of tradcorp America is imminent, while the realists think that big tradcorps move much more slowly. On balance I suspect that the realists are correct. Your points in this post reinforce my view.

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