Godfather of AI’ says tech giants can’t profit from their astronomical investments unless human labor is replaced

Geoffrey Hinton, often called the "Godfather of AI," stated that tech giants cannot profit from their large investments in artificial intelligence unless human labor is replaced by AI. He explained that the big companies are betting on massive job displacement caused by AI because that is where the major profits lie. Hinton emphasized that without replacing human labor with AI, it is difficult for these firms to generate significant returns on their AI investments beyond charging fees for AI services. He highlighted that firms like Microsoft, Meta, Amazon, and OpenAI have invested heavily—running into trillions—to build AI infrastructure, anticipating AI to replace costly human workers and yield higher corporate profits.

Hinton also observed current trends showing AI’s impact on the labor market, such as a marked decline in job openings since ChatGPT’s launch and large layoffs in companies like Amazon. He warned that AI-driven unemployment could be massive, increasing profits drastically by cutting labor costs, which benefits a capitalist system that concentrates wealth among the few. However, he also acknowledged AI's potential positive impact on sectors like healthcare and education, boosting productivity and accessibility.

In summary, Hinton’s key insight is that the financial viability and large profits expected from AI investments by tech giants depend on successfully replacing substantial portions of human labor with AI systems, which has significant social and economic implications