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Equation 19 · The Economics and Physical Limits of Running AI Agents at Scale

What does this equation mean?

Cn=∑i=1nci=n pin(τ+δ)+pin σ n(n−1)2+n pout oˉC_n = \sum_{i=1}^{n} c_i = n\,p_{\text{in}}(\tau+\delta) + p_{\text{in}}\,\sigma\,\frac{n(n-1)}{2} + n\,p_{\text{out}}\,\bar{o}

Read the formula alongside the article passage below. Each part has a deeper page with its role in the equation, the supporting passage and nearby citations.

Start withn(n-1)
Divide by2
This relates toC_n
How to read the two sides of this formula. Follow the article passage for the meaning of each quantity.

This equation states an equality: the expressions on both sides have the same value under the article’s assumptions. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.

Read it piece by piece

CnC_n

Symbol C_n

CnC_n is part of the quantity the equation computes from the expression on the right.

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ii

Symbol i

the step.

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nn

Symbol n

n occurs above the fraction bar. The numerator is divided by the entire denominator below it.

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cic_i

Symbol c_i

cic_i is one of the signed contributions combined to compute the quantity on the left.

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pinp_{\text{in}}

Symbol p_in

pip_in is one of the signed contributions combined to compute the quantity on the left.

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τ\tau

Symbol τ

τ is one of the signed contributions combined to compute the quantity on the left.

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δ\delta

Symbol delta

delta is one of the signed contributions combined to compute the quantity on the left.

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σ\sigma

Symbol σ

σ is one of the signed contributions combined to compute the quantity on the left.

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poutp_{\text{out}}

Symbol p_out

pop_out is one of the signed contributions combined to compute the quantity on the left.

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oˉ\bar{o}

Symbol baro

baro is one of the signed contributions combined to compute the quantity on the left.

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=

=

The expressions on both sides represent the same quantity under the stated assumptions.

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fraction

fraction

Divide the expression above the line by the one below it.

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addition

addition

Add the term after the plus sign to the term or group before it.

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subtraction

subtraction

Subtract the following term or group from the preceding one. A leading minus marks a negative quantity.

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subscript

subscript

The lower label selects a particular version, component, or indexed member of the quantity. For example, x₀ and xₜ can be values at different positions.

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superscript

superscript

A raised number can be a power. When it is a label or bound, it selects a case or the upper limit of a sum; the formula’s structure distinguishes these uses.

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i=1i=1

Starting index or lower bound: i=1

This label says where the repeated addition, multiplication, or accumulation starts. Read its value or condition together with the article’s description of the index.

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nn

Ending index or upper bound: n

This label says where the repeated addition, multiplication, or accumulation stops. It sets the last term or end of the range.

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n(n−1)n(n-1)

Numerator: n(n-1)

The complete quantity above the fraction bar.

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22

Denominator: 2

The complete quantity below the fraction bar; it must be nonzero for this division.

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How to interpret it

With a fixed numerator, increasing a nonzero denominator reduces the fraction. Read it with the definitions, units, and assumptions supplied by the article.

What the article says around this equation

Summed over an n -step trajectory, that gives Cn=∑i=1nci=n pin(τ+δ)+pin σ n(n−1)2+n pout oˉC_n = \sum_{i=1}^{n} c_i = n\,p_{\text{in}}(\tau+\delta) + p_{\text{in}}\,\sigma\,\frac{n(n-1)}{2} + n\,p_{\text{out}}\,\bar{o}. The middle term is the one that matters. It grows as n(n-1)/2 — quadratically in step count — while the other two terms grow only linearly. For a short loop, the quadratic term is negligible next to the fixed tax and the output cost. For a long one, it dominates completely, and no amount of shrinking τ\tau or oˉ\bar{o} changes that; the loop’s own length has become the largest line item, all by itself.

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Sources cited in the article section

These citations give research context. Read each source to check which claims it supports.

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