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Horizontal Gravity

The Physics of Platform Convergence in AI-Driven Markets

By Anthony Scaffeo · Digital Vibes Inc. · February 2026

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Current Horizontal Gravity Index

0.62
Composite HGI
0.53
S(t) SaaS Consolidation
0.61
A(t) API Integration
0.72
V(t) Vertical Decline

As of 2026-02 · Full dashboard →

Horizontal Gravity in Motion

A visual introduction to horizontal gravity and how AI platforms are absorbing adjacent markets.

See What You're Getting

14 pages of original research combining three mathematical frameworks with real-world market evidence.

A Unified Theory of Digital Market Restructuring

Percolation Theory

When does the phase transition occur?

Models the critical threshold at which fragmented application ecosystems suddenly coalesce into connected platform clusters.

Free Energy Principle

Why does integration occur?

Explains why integrated platforms are thermodynamic attractors — AI minimizes variational free energy by absorbing adjacent data silos.

Fisher Information Geometry

What is the structure of convergence?

Characterizes the Riemannian manifold along which all sufficiently capable models converge to canonical representation geometry.

Vertical Dissolution in Practice

98%
Stack Overflow Decline

Monthly questions collapsed from 108,000 (Nov 2022) to ~3,900 (Dec 2025) — returning to 2009 launch-era volumes.

99.5%
Chegg Market Cap Loss

From $14.7B peak to $73M, with NYSE delisting warnings. Core value absorbed into free general-purpose LLMs.

371→342
Enterprise SaaS Apps

Average applications per organization declining. Klarna eliminated ~1,200 SaaS tools.

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Anthony Scaffeo

Digital Vibes Inc. · Thunder Bay, Canada

Anthony Scaffeo is a researcher and entrepreneur working at the intersection of artificial intelligence, digital market economics, and statistical physics. A Chartered Professional Accountant (CPA, CA) trained through CPA Ontario and CPA Canada, he brings quantitative discipline to the study of how foundation models are restructuring software markets.

The author acknowledges the contributions of the Macovisonomics research project, which provided the analytical framework and the interdisciplinary environment from which this work emerged. The author thanks the open-source and academic communities whose publicly available data and tools and made this analysis possible.

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Cite This Paper

@article{scaffeo2026horizontal,
  title={Horizontal Gravity: The Physics of Platform Convergence in AI-Driven Markets},
  author={Scaffeo, Anthony},
  year={2026},
  month={February},
  publisher={Digital Vibes Inc.},
  note={Independent Academic Perspective, 14 pages}
}

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  • 14-page academic Perspective paper (PDF)
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  • 35 academic and industry references