We believe the industry’s broad interpretation of Jensen’s Law — i.e. “Jensen’s Law accelerates Moore’s Law” — understates a fundamental economic reality of AI Factories. Jensen Huang’s own language and NVIDIA’s operating model point to a financial law of motion for AI factories: When power is the binding constraint and demand is elastic, perf/watt increases raise monetizable throughput faster than they raise total cost. The result is an extension to existing laws of tech that we've come to know. Specifically, Jensen's invoking of Buy ore to make more (i.e. revenue up) and spend more to save more (i.e. unit cost down) has explicit economic implications that we believe need further examination. In addition, there is a corollary in this new regime in that, under certain conditions, fabric‑driven utilization unlocks are so valuable that high‑speed networking becomes “economically free” (i.e. where utilization gains exceed amortized fabric cost). In this Breaking Analysis we explain in detail what we’re referring to as a new Jensen’s Law. We’ll explore why this phenomenon is so important, review the math behind it, share some concrete examples of where the law is applicable, when the corollary of “the network is free” holds, implications for investors and operators; and where the law is not applicable.