Most people consider AI to be chatbots or image generation. But in reality modern AI is a complicated layered system. The real power is at the bottom. The model layer itself.
In this episode, EconWorks breaks down the AI stack (Model → System → Interface) and explains why whoever controls the model layer (the base of the stack) is the one that controls the entire market. You’ll learn how scale, learning effects, and scope economies concentrate advantage at the model layer; why the market has transitioned from open research to centralized platforms; and the two competing visions of AI: shared infrastructure vs. controlled platform.
It also considers what this means for competition, why governance is now the critical issue, and how the same system that fuels innovation can also lead to lock-in and dependence.
Read the full article and graphic analysis:
Control in AI — Episode 4: When the Model Is the Market: Governance and Control in AI
In 30 seconds: What this is really about
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