The article explains a major shift happening in the tech world: for decades, investors favored “bits” businesses—software, apps, and digital platforms—because they were scalable and highly profitable. But with the rise of artificial intelligence, that advantage is starting to fade. AI can now generate code, content, and digital products quickly and cheaply, increasing supply and reducing the uniqueness—and value—of purely digital work.
As a result, attention is moving toward “atoms” businesses, which involve the physical world—industries like manufacturing, logistics, energy, and infrastructure. These areas were once seen as slow and capital-intensive, but AI is making them more programmable and efficient through robotics and automation. This shift is reflected in the growing investments in data centers, chips, and energy systems by major tech companies, showing that even “software giants” are becoming deeply tied to physical infrastructure.
A key example is Travis Kalanick, who is betting heavily on this transition through his new venture “Atoms.” His focus is on building AI-powered robotics for real-world industries like food, mining, and transportation. The idea is that while software has already automated tasks like language and math, the physical world remains largely unautomated—and therefore full of opportunity.
Ultimately, the article argues that AI is changing where value lies in the economy. As digital work becomes abundant and commoditized, scarcity—and value—shifts back to the physical world. The future of technology may not be purely digital, but a blend of both, where success depends on combining AI with real-world systems, infrastructure, and operations.
