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arXiv · 2509.10220

Openness in AI and downstream governance: A global value chain approach

Christopher Foster
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Abstract

The rise of AI has been rapid, becoming a leading sector for investment and promising disruptive impacts across the economy. Within the critical analysis of the economic impacts, AI has been aligned to the critical literature on data power and platform capitalism - further concentrating power and value capture amongst a small number of "big tech" leaders. The equally rapid rise of openness in AI (here taken to be claims made by AI firms about openness, "open source" and free provision) signals an interesting development. It highlights an emerging ecosystem of open AI models, datasets and toolchains, involving massive capital investment. It poses questions as to whether open resources can support technological transfer and the ability for catch-up, even in the face of AI industry power. This work seeks to add conceptual clarity to these debates by conceptualising openness in AI as a unique type of interfirm relation and therefore amenable to value chain analysis. This approach then allows consideration of the capitalist dynamics of "outsourcing" of foundational firms in value chains, and consequently the types of governance and control that might emerge downstream as AI is adopted. This work, therefore, extends previous mapping of AI value chains to build a framework which links foundational AI with downstream value chains. Overall, this work extends our understanding of AI as a productive sector. While the work remains critical of the power of leading AI firms, openness in AI may lead to potential spillovers stemming from the intense competition for global technological leadership in AI.

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Christopher Foster. 2025-09-12. Openness in AI and downstream governance: A global value chain approach. https://arxiv.org/abs/2509.10220

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