Algorithms, Bytes, and Chips: The Emerging Political Economy of Foundation Models

29 Pages Posted: 20 May 2024

See all articles by Stuart Mills

Stuart Mills

Department of Economics, University of Leeds; London School of Economics & Political Science (LSE) - Department of Psychological and Behavioural Science

Date Written: May 20, 2024

Abstract

Recent interest in generative artificial intelligence (AI) is changing the political economic environment in which this technology is produced. Understanding this emerging landscape is essential to grasp the economic and societal effects of AI. Using the AI triad model of algorithms, bytes, and chips, this article argues that a confluence of factors is likely increasing the costs of developing foundational AI models, and thus generative AI products. Speculations about how the AI industry may adapt to this changing political economy, and the potential role of the state, are offered.

Keywords: artificial intelligence, economic strategy, political economy, supply chains

Suggested Citation

Mills, Stuart, Algorithms, Bytes, and Chips: The Emerging Political Economy of Foundation Models (May 20, 2024). Available at SSRN: https://ssrn.com/abstract=4834417 or http://dx.doi.org/10.2139/ssrn.4834417

Stuart Mills (Contact Author)

Department of Economics, University of Leeds ( email )

Leeds, LS2 9JT
United Kingdom

London School of Economics & Political Science (LSE) - Department of Psychological and Behavioural Science ( email )

(PBS), 3rd Floor, Queens House
55/56 Lincoln's Inn Field
London, WC2A 3LJ
United Kingdom

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