The Dark Side of AI?

Are Silicon Valley's Tech Giants Building a New Colonial Power Structure?

Artificial intelligence evokes futuristic innovation, streamlined efficiency, and boundless progress.

Yet beneath the polished interfaces and groundbreaking algorithms lurks a troubling question: has, or is AI becoming a form of modern colonialism, driven by resource exploitation, labor abuses, and environmental harm?

As AI companies achieve trillion-dollar valuations and their technologies infiltrate every aspect of society, we must confront the potential implications for democracy, human rights, and ecological sustainability.

The Evolution of AI Companies: From Nonprofit Idealism to Corporate Empire

Founded as a nonprofit in 2015, OpenAI promised to create transformative AI for humanity's collective benefit, free from commercial pressures.

However, financial realities soon overtook these altruistic intentions.

By 2019, OpenAI transitioned into a "capped-profit" hybrid, and by 2025, its for-profit arm became a Public Benefit Corporation (PBC).

CEO Sam Altman embodies this tension, balancing idealism with the commercial imperatives required for competitive scale.

The central question remains: Is AI genuinely about benefiting humanity, or is it merely concentrating unprecedented power and profit among an elite few?

The Monopolistic Power Players

AI is dominated by corporations like OpenAI, Google, Meta, Microsoft, and Anthropic, heavily financed by venture capital and Big Tech.

Chinese firms, including ByteDance, Alibaba, and Tencent, further intensify global competition.

The monopolistic structure of the AI industry, fueled by massive capital investments, raises severe concerns about unchecked societal influence and democratic erosion.

AI Hype and the Illusion of Innovation

The discourse around AI, particularly the concept of Artificial General Intelligence (AGI), often serves as a strategic distraction rather than genuine innovation.

Critics like MalwareTech argue that AI fervor is inflated by exaggerated, unsubstantiated claims.

Despite bold promises, real-world examples of transformative innovation remain elusive, suggesting that narrative dominance rather than technological breakthroughs sustains AI's powerful facade.

The Environmental Cost: Unsustainable Growth

Resource Consumption AI, especially generative models, requires enormous computational resources:

• Energy consumption: Data centers consumed approximately 415 terawatt-hours in 2024, projected to reach 945 terawatt-hours by 2030. (Washington Post, 2025)

• Freshwater demands: Extensive cooling needs severely strain local water resources.

• Carbon emissions: AI-related emissions could reach 2.5 billion tonnes by 2030, equal to 40% of current annual U.S. emissions.

Geographic Impact

The establishment of data centers in water-scarce regions worsens local resource depletion, leading to community water shortages and restricting essential local developments.

The conflict between AI infrastructure and human needs highlights the urgent requirement for sustainable development practices.

Economic Exploitation and Unsustainability

AI's economic model is financially unstable.

Despite massive valuations (OpenAI valued at $300 billion despite losing $5 billion, Anthropic at $61.5 billion), AI companies are deeply unprofitable and reliant on ongoing capital infusions, underscoring the precarious nature of the AI bubble.

The Human Cost: Labor Exploitation in AI's Hidden Economy

Behind the seamless interfaces of AI lies a hidden, often overlooked workforce facing harsh and exploitative conditions.

• In Kenya, content moderators hired by OpenAI have reported severe mental health impacts from repeated exposure to graphic and distressing material.

• In Venezuela, data annotators perform low-paid, precarious digital piecework—vital for training AI systems—while contending with economic instability and poor labor protections.

These are not isolated incidents. They reflect a digital colonialism pattern: outsourcing essential AI labor to the Global South under conditions that would be unacceptable elsewhere.

Colonial Parallels: Resource Extraction and Democratic Threat

AI companies replicate historical colonial practices, extracting global resources—data, labor, energy—to fuel their growth.

Parallels with the East India Company underline similar motivations driven by economic and political influence, with AI firms actively cultivating political power to override local governance.

Democratic Erosion

AI’s unchecked rise threatens democratic governance. Tech giants influence public policies to protect their monopolistic interests, undermining democratic processes and accelerating the erosion of local governance and accountability.

Community Action: Local Resistance, Global Impact

Local communities are proving to be powerful forces in resisting exploitative AI practices.

• In Chile, activists successfully blocked the construction of Google data centers, citing environmental and community concerns—a striking example of grassroots power.

• By organizing workers and engaging local governments, communities can demand transparency and enforce corporate accountability.

Policy and Regulation: Rebalancing Power

Effective AI governance requires robust and enforceable regulations.

• The EU AI Act sets a global benchmark by mandating accountability, oversight, and human rights protections.

• In contrast, the U.S. regulatory landscape remains fragmented. Strengthening data privacy laws and adopting comprehensive AI frameworks can help shift power away from unchecked corporate control.

Conclusion

While AI presents revolutionary possibilities, its current trajectory poses severe risks to democracy, environmental sustainability, and human rights. Challenging AI's exploitative practices democratically is critical.

By reclaiming AI as a tool genuinely serving society, we can prevent a digital age dominated by corporate empires and build an equitable, sustainable, and democratic future.

Sources

Brennan, K., Kak, A., & Myers Best, S. (2025, June 3). Artificial Power: 2025 Landscape Report - AI Now Institute. Artificial Power: 2025 Landscape Report. https://ainowinstitute.org/publications/research/ai-now-2025-landscape-report

Hutchins, M. (2025, August 4). Every Reason Why I Hate AI and You Should Too. https://malwaretech.com/2025/08/every-reason-why-i-hate-ai.html

De Vynck, G. (2025, August 4). The AI spending boom could have real consequences for the U.S. economy. https://www.washingtonpost.com/technology/2025/08/04/big-tech-ai-spending-economy/ (paid subscription required).