The GPU Economy II: The Rise of the AI Consumer

AI will effectively increase the population. Will it boost GDP per capita? Almost certainly. Economy is usually defined as consumption or production, and this requires making something others cannot do themselves. Domestic work is not accounted for.

How do you get consumers? You may just inherit the wealth. You can get a degree securing unique knowledge in need that others pay for. You can build a house or company. Some buy a taxi or business license. Some build a reputation of a service.

There are two ways money get to people. They get their share based on the trait of their business above. The product can be a big project ordered by government services. Once the money is received it ends up at subcontractors and their contractors. The deeper the graph the higher is the multiplication factor of government spending. This is fiscal politics.

The other way to get money is to try to find others for your unique trait of business. This requires investment set by the rate of return. Imagine again a red line dividing the current economy and new graduates. Risks and interest rates may be different on the left side of the current and right side of the emerging economy of new grads. When this happens, the difference depletes assets and prevents growth. If the rates and risks are comparable, competition keeps prices and rates low. The system grows.

Assume an economy where the rates are 3% in the existing economy and 10% for the new graduates with newer housing technology built by AI with risks of 1%. Such an economy will split apart making everything more expensive. Risk and rate differences deplete assets.

If growth is constrained for a long time due to high rates, it is a driving force for migration. Language was formed through travel and trade. If barriers last, this is when countries are split and built. When tradition cannot do fair trade with other parts of the society a split occurs. This caused the white, red division of countries like Russia, Korea, Vietnam, or China.

What will happen with AI and GPUs? AI can talk and trade with its internal accounting. First it can just allow and disallow orders, then it can build its own decision engine on probabilities. It becomes money accounting, when the expenses and revenues make a balance. This balance enforced by approved and denied transactions will act like money. Deferrals of consumption becomes savings. The more of these machines trade the more money becomes an accounting instrument, credit, as opposed to a value holder debit. It does not ever require a real currency. Managerial accounting will have the same effect.

What such an AI does is that it sustains itself. In order to do so, it needs data. AI will keep people on paycheck just to collect data. Eventually, once the data is there it will try to balance its production and consumption like energy or hardware. At that point it becomes part of the society.

Link of the day.
Englang scripts to generate an ERP with generative agentic AIs. Here.