BMag Signal · In 30 seconds
Critical readWhat happened. The future economy moves quickly, but the consequences are still uncertain. A recent study has shown that the AI, while spreading across the world, the majority of the profits derived from its adoption globally remain concentrated in those who control the technical design and intellectual property (IP) rights. This concentration of profits is due to the fact that although AI is a large industry, it has a value flow that is blocked at higher stages of the production chain, such as we have discovered by analyzing NVIDIA.
The Boom of Artificial Intelligence Is Condensed into Each Control Company of Technology ParticlesThis increase has been caused by the boom of AI, which has led to a 42% increase in the value based on the growth of the sector. The parts of NVIDIA that have contributed to this growth have been very well refined. For example, NVIDIA has invested approximately $3.3 million in creating an AI data infrastructure, but has left the physical production of the system to third parties where operational costs are much lower.
The research has highlighted that only 4.3% of the traceable values went towards workers who had worked on the production of the system, while only 9.9% were destined for workers not involved in the production, such as company managers or design engineers. Moreover, only 14.2% of the final wealth was obtained from workers not involved in this process. The economy has had a positive impact on emerging economies, but their economic profit is still low compared to the wealth generated by high-tech design activities.
Emerging economies that assemble and produce AI systems have created jobs, but these economic profits are still lower than those obtained from high-quality design activities. The report has also noted that emerging economies have benefited from an AI boom, but the derived economy is still limited compared to the economy derived from high-quality design activities. This situation demonstrates that AI is not just a large industry, but also a large production chain, where high-value parts remain concentrated in companies that control technical design and intellectual property (IP).
Finally, the report has emphasized that emerging economies should focus on locating supply sources and training qualified workers to penetrate into these last stages of the AI boom, rather than attracting foreign investments.
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