Technofeudalism

1. The rise of cloud capital is transforming capitalism into technofeudalism

Cloud capital is, physically, defined as the agglomeration of networked machinery, software, AI-driven algorithms and communications' hardware criss-crossing the whole planet and performing a wide variety of tasks, new and old.

Cloud capital redefines power dynamics. This new form of capital, emerging from the privatization of the internet commons, has unprecedented capabilities to extract value and modify behavior. Unlike traditional capital, which relied on markets and profit, cloud capital operates through cloud fiefs and cloud rent.

Key characteristics of cloud capital:

• Networked machinery and AI-driven algorithms
• Ability to command labor and extract rent from capitalists
• Power to modify consumer and worker behavior

Cloud capital's rise marks a fundamental shift in our economic system, moving us from capitalism to technofeudalism. This transformation is reshaping social relations, power structures, and the very nature of work and consumption.

2. Cloud capital's unique ability to command and modify behavior

Cloud capital's third nature straddles three types of algorithmic behaviour modification. One strand commands consumers to reproduce cloud capital (i.e. turns them into cloud serfs). A second strand commands waged labour to work harder (i.e. turns proletarians and members of the precariat into cloud proles). And a third strand replaces markets with cloud fiefs.

Behavior modification at scale. Cloud capital's power extends beyond traditional economic realms, allowing for unprecedented control over human behavior. This control is exercised through sophisticated algorithms and data analysis, enabling cloudalists to shape consumer preferences, worker productivity, and market dynamics.

Three key aspects of cloud capital's behavioral modification:

1. Turning consumers into cloud serfs who reproduce cloud capital
2. Intensifying labor exploitation by transforming workers into cloud proles
3. Replacing decentralized markets with controlled cloud fiefs

This behavioral modification capability represents a significant leap from traditional capitalist power structures, as it allows for more pervasive and subtle forms of control over both workers and consumers.

3. The emergence of cloud serfs, cloud proles, and vassal capitalists

For the first time in history, capital has been (re)produced by unwaged labourers. Cloud capital's platforms make it easy for work to move out of the labour market into an economy that is disguised with the paraphernalia of gaming, chance and lotteries when, in reality, it is all about mechanical, repetitive, Fordist work.

New class structures emerge. Technofeudalism introduces novel social categories that redefine traditional class relationships. Cloud serfs unknowingly contribute to the reproduction of cloud capital through their online activities. Cloud proles face intensified exploitation in digitally-mediated workplaces. Vassal capitalists must pay cloud rent to access consumers through cloud fiefs.

Key features of new technofeudal classes:

• Cloud serfs: Unpaid contributors to cloud capital reproduction
• Cloud proles: Workers subject to algorithmic management and intensified exploitation
• Vassal capitalists: Traditional businesses forced to operate within cloud fiefs

This restructuring of social classes reflects the profound impact of cloud capital on labor relations, value creation, and economic power dynamics.

4. Central banks inadvertently funded the rise of cloudalists

As conglomerates and governments became reliant on a diet of interest-free loans, with companies in developing countries borrowing more than their governments, in excess of $2 trillion by the end of the 2010s, the central bankers faced an ugly dilemma: either switch off the money taps, which would mean blowing up financialised capitalism, having printed all that money to save it; or continue to pump money into the system, hoping for a miracle to intervene but, in reality, facilitating the replacement of profit as capitalism's motivating power and lubricant.

Unintended consequences of monetary policy. Central banks' efforts to save capitalism after the 2008 financial crisis inadvertently provided the funding for the rise of cloudalists. By flooding the financial system with cheap money, central banks created conditions that allowed cloudalists to accumulate vast amounts of capital and build their digital empires.

Key aspects of central bank involvement:

• Massive money printing and near-zero interest rates
• Diversion of funds from traditional investment to cloud capital accumulation
• Shift from profit-driven to rent-extraction models

This unintended support from central banks accelerated the transition from capitalism to technofeudalism, highlighting the complex interplay between monetary policy and technological change.

5. Profit and markets are being replaced by cloud rent and cloud fiefs

Technofeudalism replaced capitalism's twin pillars – Profit and Markets – with its own twin pillars – Cloud Rent and Cloud Fiefs.

Fundamental economic shift. The transition to technofeudalism involves a radical change in how economic value is created and distributed. Traditional capitalist mechanisms of profit and markets are being supplanted by cloud rent extraction and the creation of controlled digital environments (cloud fiefs).

Key differences between capitalist and technofeudal economic mechanisms:

1. Profit vs. Cloud Rent: From competitive returns to algorithmic extraction
2. Markets vs. Cloud Fiefs: From decentralized exchange to controlled digital platforms

This shift represents a fundamental restructuring of economic relations, with profound implications for competition, innovation, and wealth distribution.

6. The geopolitical impact of technofeudalism and the New Cold War

With the world dividing into two super cloud fiefs, one dollar-based and another yuan-based, they are being forced to choose which feudal lord to submit to. Gone are the days when their oligarchs could borrow from China, or collect profits from selling grain in Shanghai, and use the money to buy properties in California or derivatives in Wall Street.

Global power realignment. Technofeudalism is reshaping international relations, leading to a New Cold War centered around control of cloud capital and digital infrastructure. The world is increasingly divided into two competing technofeudal blocs, one dominated by the US and the other by China.

Key aspects of the technofeudal geopolitical landscape:

• Formation of dollar-based and yuan-based super cloud fiefs
• Intensifying competition for control over digital infrastructure and data flows
• Realignment of global alliances based on technofeudal affiliations

This geopolitical shift has significant implications for global trade, financial flows, and the balance of power between nations.

7. Potential paths for escaping technofeudalism and reclaiming democracy

To own our minds individually, we must own cloud capital collectively. It's the only way we can turn our cloud-based artefacts from a produced means of behaviour modification to a produced means of human collaboration and emancipation.

Collective ownership as liberation. Escaping technofeudalism requires reimagining ownership structures and democratic control of cloud capital. This involves developing new forms of collective ownership and governance that can harness the power of digital technologies for the common good.

Key strategies for challenging technofeudalism:

• Developing democratically controlled digital platforms
• Implementing new forms of collective ownership of cloud capital
• Strengthening regulations to limit the power of cloudalists

The path to a post-technofeudal society involves reclaiming control over digital technologies and reimagining economic and political structures to prioritize human needs over rent extraction.

Last updated: January 24, 2025