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Marketplace Tech

The AI concentration problem in the U.S.

Marketplace Tech

Marketplace

Technology, News

4.51.3K Ratings

🗓️ 2 August 2023

⏱️ 9 minutes

🧾️ Download transcript

Summary

There’s a lot at stake in the artificial intelligence race, and although it may feel like it’s everywhere, the U.S. AI race is primarily playing out in just a few places — specifically, hubs that offer AI entrepreneurs advantages like capital, talent and more. That helps explain why so many AI companies, patents, job opportunities and so much else are concentrated in Silicon Valley and other very expensive, mostly coastal U.S. cities, said Mark Muro, a senior fellow at Brookings Metro. Marketplace’s Lily Jamali spoke with Muro about that concentration and what it means for AI development going forward.

Transcript

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0:00.0

Marketplace Morning Reports new Skin in the Game series explores what we can learn about

0:04.6

money and careers from the $300 billion video game industry. Plus, here how an Oakland-based

0:11.0

program helps young people get the skills they need to break into this booming industry.

0:15.9

Listen to Skin in the Game and more from the Marketplace Morning Report wherever you get your

0:20.7

podcasts. In AI, as in real estate, it's all about location, location, location. From American

0:30.1

public media, this is Marketplace Tech. I'm Lily Jamali.

0:44.0

There's a lot at stake in the artificial intelligence race, fortune, world domination,

0:49.9

the future of humanity itself. And although it may feel like it's everywhere, the reality is

0:55.6

that the AI race is primarily playing out in just a couple of places, hubs that offer AI

1:02.4

entrepreneurs, advantages from the capital to the talent that have drawn many a tech founder

1:08.2

over the years. That helps explain why so many AI companies, patents, job opportunities,

1:14.4

and a whole lot else, are concentrated in Silicon Valley in a series of other very expensive,

1:20.4

mostly coastal US cities. Says Mark Murrow, a senior fellow at Brookings Metro.

1:44.8

And then in places like Seattle, Los Angeles, Boston, are account for huge portions of this.

1:54.9

For generative AI, chat GPT and other applications, so-called large language models,

2:02.6

we're talking about 60% in just 15 places.

2:08.4

And how worried are you that we're going to keep seeing this kind of concentration?

2:12.6

Is more and more AI startups and development projects pop up?

2:16.9

I'm quite concerned about the concentration dynamic. We call it a winner-take-most geography.

2:23.9

And I think until proven otherwise, that is the standard way that technology economies evolve.

2:33.4

And for some of it is highly valuable. It's an efficient way for places to innovate,

2:41.6

key assets, R&D, finance, deep pools of workers need to what's called clustering.

...

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