Kathmandu— The artificial-intelligence (AI) boom is not driven by consumer choice but by the investment decisions of concentrated capital. Big Tech companies have spent $1 trillion on building data centers and purchasing chips, diverting resources away from renewable energy, healthcare, and public infrastructure. This massive investment has been channeled into constructing energy-intensive data centers that power large language models (LLMs), which often produce incorrect responses and can be detrimental to users.

Capitalism vs Free Markets

The AI boom is a product of capitalism, not free markets. Capital agglomerates into monopolistic corporations controlled by powerful individuals like Jeff Bezos at Amazon. These companies invest heavily in long-term dominance rather than short-term profitability. Despite the hype around LLMs, companies like OpenAI and Anthropic have yet to turn a profit but are valued at $1 trillion due to their control over vast areas of human knowledge.

Bubble and Competition

The current AI boom is in a bubble. While the technology may change our economy, it is not as profitable as expected in the short term. There is too much competition among US LLM providers and from Chinese companies offering cheaper alternatives. Additionally, many businesses have not seen significant productivity gains from adopting these technologies, raising doubts about their long-term profitability.

Environmental Impact

The environmental impact of the AI boom is substantial. In 2026, AI will be responsible for 1.1 percent of total global energy demand, surpassing the energy consumption of the entire United Kingdom. Communities are facing water shortages and heat island effects due to the massive amounts of heat generated by data centers.

Consequences and Accountability

The AI boom will leave behind a captured economy, corrupted democracy, and devastated environment. When the bubble bursts, millions may lose jobs and savings as companies go under. The largest tech firms will buy up competitors, further concentrating wealth and power. Capital must be held accountable for these decisions to prevent future devastation.

(With inputs from Jacobin)

Originally published on abcnews.com.np.