Okay, first of all, Moore's law continuing was caused by a different approach to memory technology which allowed vertical stacking of silicon. Secondly, you literally just gave an example of diminishing returns making steady improvement physically impossible in spite of public expectations, unless a new and different technology is developed, so if anything that's a great argument against AI not for it. Thirdly, Moore's Law is still fucked because right now we're etching silicon with gamma rays and a near-perfect lense and mirror which means we pretty much hit the physical constraints of etching smaller circuits.
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