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Coloma Today
By the People, for the People
The Hidden Wealth Transfer Inside the AI Revolution
A massive AI wealth transfer may already be underway as tech companies enclose the infrastructure of the AI economy.
Apr. 6, 2026 at 12:55pm
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The quiet, relentless enclosure of cognitive ability by tech giants threatens to concentrate wealth and power in the emerging AI economy.Coloma TodayA massive transfer of wealth is unfolding that could rival some of the largest shifts in modern economic history, as tech companies enclose the infrastructure of the AI economy. This 'AI Enclosure' is the 21st-century version of the historical 'enclosure' of common lands, where cognitive ability is being concentrated and controlled by a small number of companies, charging rent for access to a resource that used to belong to everyone. The recent announcement by Block CEO Jack Dorsey about large-scale layoffs due to the impact of AI tools has exposed this shift, as companies across industries are forced to match the efficiency gains or face permanent cost disadvantages.
Why it matters
The AI Enclosure is a visible, mutually reinforcing network of capital, technology, and political power that has converged with unusual speed around a single asset class - artificial intelligence. This concentration of control over cognitive ability could lead to a slow, grinding transfer of wealth from those who sell labor to those who own AI capital, similar to the Industrial Revolution's 'Engels' Pause' when the gains did not reach workers for decades.
The details
The AI Enclosure is being driven by a few key players: the 'Hyperscalers' like Microsoft, Alphabet, Amazon, and Meta who own the compute infrastructure; the 'Model Builders' like OpenAI, Anthropic, and Google DeepMind who control the AI models; the 'Semiconductor Gatekeepers' like Nvidia, TSMC, and Broadcom who manufacture the hardware; the venture capital firms funding the ecosystem; and the political establishment, led by figures like Vice President J.D. Vance, that is protecting this concentration of power. This club is not operating in opposition to political power, but has merged with it, making it difficult for policies that could slow or reshape the Enclosure to gain traction.
- Last week, Block (XYZ) CEO Jack Dorsey announced the largest single-round percentage layoff in the history of the S&P 500, citing the impact of 'intelligence tools' on the company's operations.
- Between the 16th and 18th centuries in England, the landowning class executed one of the most consequential wealth transfers in history through the 'enclosure' of common lands that ordinary people had farmed for generations.
The players
Jack Dorsey
The CEO of Block, who announced large-scale layoffs at the company, citing the impact of AI tools on the company's operations.
J.D. Vance
The Vice President of the United States, a former Silicon Valley insider and close friend of Palantir's Alex Karp, who is seen as a connection point between the tech industry and the current administration.
Alex Karp
The CEO of Palantir, who has an explicit ideological framework called the 'Technological Republic' that sees the people building technology as having an outsized role in shaping the country's direction.
Microsoft
One of the 'Hyperscalers' that owns the compute infrastructure, data centers, cloud platforms, and distribution channels through which AI reaches the economy.
OpenAI
One of the 'Model Builders' that owns the AI models and the intelligence itself, encoding humanity's accumulated knowledge and making it available to those who can pay for access.
What they’re saying
“Intelligence tools have changed what it means to build and run a company”
— Jack Dorsey, CEO, Block
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.
