Economics of AI

Week 41 · 5-11 Oct

3 sources filed · EN 3

  • A

    How do Chinese AI companies make money?

    Five streams: consumer apps, model access (API and flat-rate plans), enterprise and government customisation, licensing fees, and indirect revenue from complementary products.

    88% to 22%Z.ai's share of GLM 5.3 Flash tokens on OpenRouter within 20 days of releasing the weights

  • S

    Financing the AI Buildout (w35865)

    Cost per MW: about $11 million for the building, $2 million for power infrastructure, $28 million for GPU racks and IT; a 200 MW campus costs about $8.2 billion, two-thirds of it IT equipment.

    $41 billionestimated cost of a 1 GW AI campus ($41 million per MW)

June 2026

1 source filed · EN 1

  • A

    Global AI Pulse Q2 2026

    76% say AI delivers meaningful business value (64% in Q1); 78% think their AI strategy can be future-proofed (70%); 79% would keep AI a top investment priority in a recession (74%).

    14% vs 4%established ROI where accountability for AI outcomes is clear vs not

April 2026

1 source filed · EN 1

  • S

    AI Index Report 2026

    Generative AI reached 53% population adoption within three years, faster than the PC or the internet; organizational adoption reached 88%.

    88%organizational adoption of AI in 2025

March 2026

2 sources filed · EN 2

  • B

    AI Part 1 lecture slides

    Computing cost fell about seven trillion-fold between 1940 and 2006 (Nordhaus); AI differs from traditional computing by handling tacit knowledge, in Polanyi's sense of "we know more than we can tell".

    0.548 SD to 0.139 SDeducation-based productivity gap without vs with AI access (Cruces et al. 2026, N=1,174)

  • A

    AI meets trade

    Central (medium adoption, expanded capabilities) scenario: AI adds 0.1-0.95 percentage points a year to per capita real income growth across OECD countries over 10 years.

    0.1-0.95 ppAI contribution to annual per capita real income growth across OECD countries over 10 years, central scenario