Massive economies of scale are synonymous with natural monopoly — it’s one of the few useful things we teach economics students at university. That’s the reason why we cannot have several water companies competing in the same city, laying down different water pipes that run through our streets and walls. For similar reasons, a handful of Big Tech hyper-scalers own and control the means of production of AI. For any company or startup wanting to build a serious AI capability, accessing these hyperscalers’ infrastructure is not just convenient, but a fundamental necessity. This gives them immense influence over the pace, cost, and direction of AI’s second face.

via Can we escape AI slavery?

Some terms:

• Rent ->

  • "extractive"
  • originates from controlling access to something
  • that something is in scarcity, or held in monopoly

• Profit ->

  • "productive"
  • originates from producing a good or service
  • profit maker engaged in competition

Is rent bad?