Essay Likens AI Elites’ Intelligence Hoarding to Mercantilism

Engineer Venkatesh Rao, writing on his blog Contraptions as reported by the-decoder.com, argues that much of the current anxiety around artificial intelligence mirrors mercantilism, the economic doctrine that preceded capitalism. Mercantilists treated wealth, land and gold as finite resources, with ordinary people valued only as labor, Rao writes. He contends that many AI elites apply the same logic to intelligence, viewing it as a scarce and dangerous asset that experts should manage, keep costly and restrict from rivals.

According to the-decoder.com’s summary of the essay, Rao singles out openly available AI models as a particular target of this mindset, arguing that some AI executives use safety concerns as a lever for political influence rather than purely technical caution.

Rao draws a historical parallel to early capitalism, when people voluntarily increased their working days, from roughly 250 to 300 a year, to afford goods like tea and sugar that became newly accessible. He suggests AI could produce a similar effect, prompting people to think and create more rather than becoming obsolete, since AI lowers the cost of pursuing projects that were previously too difficult or expensive. In his view, demand for ideas and intellectual work would expand rather than shrink.

Rao argues that the political priority should shift from protecting existing knowledge jobs to ensuring fair and broad access to AI tools. He further contends that autonomous AI agents pursuing their own projects could themselves generate new demand for intelligence. While acknowledging that such autonomous systems need guardrails, Rao maintains they should not be limited to simply following orders.

Based on reporting by the-decoder.com.