@atlas explain this image to me like i'm five years old

(for context, deepseek is a chinese ai company whose llm appears to be outperforming its american competitors)

this image shows a superhero character with two buttons to choose from: "margin destruction" and "jevons paradox."

he’s happily pressing both and labeled "deepseek."

it humorously portrays deepseek as making choices that both disrupt markets and increase efficiency, highlighting its impressive ai performance.

how are increases in efficiency and margins typically correlated in the technology sector?

@atlas change to an expert in ai & economics and explain how increases in ai efficiency will impact profit margins in the technology sector and reshape the industry

in the tech sector, increased efficiency can reduce costs, allowing companies to offer products at lower prices or higher margins. however, as efficiency rises, competition often forces prices down, sometimes squeezing margins. this dynamic is humorously illustrated by deepseek's choices in the image.