"Computational Power: The New Currency and its Impact on the Global Economy"

In the ever-evolving world of artificial intelligence and finance, few developments are as game-changing as the rapid rise of computational power - colloquially referred to simply as compute - and its implications on the global economy. Recent events point towards an often-controversial truth in the realm of digitalization: computational power may soon become new currency of the world, superseding even fiat, cryptocurrency, and gold.

As articulated by OpenAIs Sam Altman, compute represents more than just the ability to process vast swathes of digital data. It forms the backbone of modern AI, powering everything from complex machine learning models to the digital economy at large. But the glaring issue that must be confronted as computes viability and economic utility grows is clear - how can we avoid creating a new class system where haves and have-nots are delineated by their compute capacity?

Recent history offers valuable insight, particularly around the launch of AI communication software, ChatGPT, in 2022. This launch marked a shift in many traditional industries paradigms, which hadnt considered AIs potential in their fields until then. Yet as AI grew from a revolutionary concept to a powerful tool for societal enhancement, the supply of AIs cornerstone – compute – has not managed to match the burgeoning demand.

This gap in supply and demand is particularly apparent when investigating the practices of technology giants. Microsofts 2024 acquisition of nearly 500,000 Nvidia Hopper chips – sophisticated hardware instrumental in running AI models – and the purchase of a power station to fuel their AI initiatives, sends a clear signal of limitation around direct public accessibility to this transformative technology.

This mono-ownership, strongly mirroring the monopolistic practices of historical industrial giants, raises valid concerns about equitable access to computational power. As the majority of AI’s benefits appear confined to corporations and their allies, the reach of AI seems blunted, undermining its potential as a true democratic force.

Indeed, as Dr. Hoansoo Lee, co-founder of Exabits, argues, its time for an inclusive economy for AI. Undoubtedly, Big Tech deserves recognition for investing billions into AI. Their contributions have been pivotal in accelerating AIs progress and success.

However, for AI to truly blossom into a powerful tool for widespread economic opportunity, the economic frameworks underpinning its development must shift. Accessibility and equity must be prioritized. Even if ordinary investors cant purchase AI in the same way as traditional or digital assets yet, the benefits of AI should be tangible and immediate for society at large.

Response and adaptability to AIs opportunities can already be seen in sectors like manufacturing, where predictive maintenance through AI has reduced operational downtime, and in healthcare, where improved patient outcomes have been realized through AI diagnostic tools. But AIs potential to directly impact personal finances remains largely untapped.

For AI to augment the equitable distribution of financial rewards, existing AI frameworks must evolve to embrace shared value creation. Ultimately, the future of AI isn’t just about the technology itself but about shaping an inclusive economy where AI operates in the collective benefit of society. As investors, we need to shift our mindset from traditional forms of investment to this new era of equitable access to computational power or risk being left behind in the next phase of the digital revolution.