The AI Paradox: Why Emerging Economies May Win by Not Racing

Lacking chips and cash, poor countries may leapfrog rich ones by training small models on local knowledge

Emerging economies appear catastrophically disadvantaged in the AI revolution. The United States and China control over 90% of private AI investment. Hyperscale computational infrastructure concentrates in a handful of wealthy nations. Advanced semiconductor manufacturing resides almost entirely in Taiwan, South Korea, and the United States. By conventi…