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technique
Idiot index
Last discussed Oct 3, 2026
Elon Musk's framework comparing a finished product's cost to the cost of its raw materials, used to identify manufacturing inefficiency.
Recently discussed in
Crusoe CEO: Why Everyone Gets GPU Depreciation & AI Energy Costs Wrong
Chase Lock Miller · Oct 3, 2026
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CL
Chase Lock Miller
mentioned
Used for: Understanding the true end-to-end cost of building AI factories
"Elon has this very interesting framing of this. He calls it the idiot index, in terms of what is the cost of raw materials and then what is the end product relative to that cost of just the raw materials going in."
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