https://www.spiked-online.com/2024/09/05/how-ai-will-embolden-the-tyranny-of-big-tech/
The emergence of artificial intelligence marks the latest acceleration of the digital age. Like any revolution, this one has winners and losers and will likely transform the relationship between people and machines. It could also lend yet more power to Big Tech and their technocratic elites in government.
Just as the Industrial Revolution elevated manufacturers and their financiers over the old aristocratic classes, the current shift erodes the power of the large industrial, often unionised, corporations and hosts of smaller businesses, in favour of a small coterie of elite firms, which are aggressively anti-union and have an unprecedented hold on both the capital markets and increasingly the human consciousness.
In the past, a major tech breakthrough would have naturally created a market for upstarts. The first phase of the digital revolution in the early 21st century caught many larger players, like IBM and AT&T, flat-footed as firms like Google, Apple, Microsoft, Amazon and Facebook (now Meta) emerged, eventually well surpassing them in market value. These firms have now secured quasi-monopolistic control of everything from mobile browsers, operating-system software and online advertising sales. They also control two-thirds of the world’s cloud service infrastructure, which is critical for AI.
These Big Tech companies drive the economy, and with them the fortunes of the three-fifths of Americans invested in the stock market. About 60 per cent of the S&P 500’s gains for the year have been driven by just five tech companies – Nvidia, Microsoft, Meta, Amazon and Alphabet (the parent company of Google). Altogether, seven tech stars, adding Tesla and Apple, account for a remarkable 30 per cent of the index’s total value, a domination almost unprecedented in market history.
These same companies are uniquely positioned to raise the trillions of dollars that are needed to develop AI capacity – at a time when cash for startups is at the lowest ebb in five years. Among the AI superpowers, there is only one relative newcomer, Nvidia. It started out mostly selling chips to the videogame industry, but its hardware has since become essential to the AI boom. Overall the field is utterly dominated by the top giant interests.