Article by Trebor Scholz and Stefano Tortorici: “Today, AI development is controlled by a small cadre of firms. Companies like OpenAI, Alphabet, Amazon, Meta, and Microsoft dominate through vast computational resources, massive proprietary datasets, deep pools of technical talent, extractive data practices, low-cost labor, and capital that enables continuous experimentation and rapid deployment. Even open-source challengers like DeepSeek run on vast computational muscle and industrial training pipelines.
This domination brings problems: privacy violation and cost-minimizing labor strategies, high environmental costs from data centers, and evident biases in models that can reinforce discrimination in hiring, healthcare, credit scoring, policing, and beyond. These problems tend to affect the people who are already too often left out. AI’s opaque algorithms don’t just sidestep democratic control and transparency—they shape who gets heard, who’s watched, and who’s quietly pushed aside.
Yet, as companies consider using this technology, it can seem that there are few other options. As such, it can seem that they are locked into these compromises.
A different model is taking shape, however, with little fanfare, but with real potential. AI cooperatives—organizations developing or governing AI technologies based on cooperative principles—offer a promising alternative. The cooperative movement, with its global footprint and diversity of models, has been successful from banking and agriculture to insurance and manufacturing. Cooperatives enterprises, which are owned and governed by their members, have long managed infrastructure for the public good.
A handful of AI cooperatives offer early examples of how democratic governance and shared ownership could shape more accountable and community-centered uses of the technology. Most are large agricultural cooperatives that are putting AI to use in their day-to-day operations, such as IFFCO’s DRONAI program (AI for fertilization), FrieslandCampina (dairy quality control), and Fonterra (milk production analytics). Cooperatives must urgently organize to challenge AI’s dominance or remain on the sidelines of critical political and technological developments.
There is undeniably potential here, for both existing cooperatives and companies that might want to partner with them. The $589 billion drop in Nvidia’s market cap DeepSeek triggered shows how quickly open-source innovation can shift the landscape. But for cooperative AI labs to do more than signal intent, they need public infrastructure, civic partnerships, and serious backing…(More)”.