Accra:The profits from artificial intelligence (AI) production are largely concentrated among firms that control technology design and intellectual property, despite the global span of AI production. The United Nations Conference on Trade and Development (UNCTAD) highlights that high-value stages of the supply chain are where most profits from the AI boom are bottlenecked.
According to Anadolu Agency – English, AI chips and servers are projected to comprise around one-sixth of global goods in trade by 2025, contributing to 42% of the sector's value-based growth as per the World Trade Organization (WTO). The AI server production process involves a broad supply chain, including mining, semiconductors, energy equipment, and cooling systems, with each country gaining varying economic benefits based on their role in production.
Countries such as Chile and Peru supply raw materials for AI hardware, while South Korea and Taiwan lead in semiconductor manufacturing. Malaysia and Mexico play significant roles in the final assembly. For instance, the value of raw materials like silicon, copper, and tin used in AI servers accounts for a mere 0.2% of the final sales price, reflecting the small economic share received by raw material suppliers.
UNCTAD analyzed the Nvidia GB200 NVL72 server system, valued at approximately $3.3 million, to illustrate the profit distribution within the AI production process. The analysis revealed that of the $2.92 million of the total added value tracked, 68% was profit after operational costs and taxes, primarily benefiting Nvidia, which designs but does not manufacture the chips. Only 4.3% of the traceable value went to workers involved in physical production, while non-production workers captured a 9.9% share, resulting in a total labor share of just 14.2%.
The report indicated that while the AI boom has increased mineral exports from developing countries, it has not significantly increased their share of the wealth generated by the supply chain. Emerging markets involved in assembly and manufacturing create jobs, but the economic returns are minimal compared to those from high-value technology design.
The UNCTAD's 'Trade and Development Report 2026' suggests that developing countries should focus on strengthening local suppliers and cultivating skilled labor rather than solely attracting foreign investment. The report also noted the challenges developing countries face in penetrating the upper tiers of AI component production due to substantial capital needs and geopolitical barriers.