A Knowledge Theory of Capital:The Value of Natural and Artificial Intelligence, Volume 1

Artificial general intelligence (AGI) may weaken scarcities in labour, expertise, information, and productive capability that underpin established theories of economic value. If cognitive work becomes widely automatable, market price, labour input, revealed preference, profit, and gross output may diverge sharply from human and societal benefit. This paper develops Flourishing Value Theory (FVT) as a foundation for post-AGI economics. FVT defines value as the counterfactual, distribution-sensitive contribution of a system, institution, asset, or intervention to the durable capabilities of persons and communities to flourish within social and planetary constraints. It treats societal value as multidimensional, agency-preserving, regenerative, and non-compensatory at critical thresholds. Drawing on the economics of AI, welfare and capability theory, automation, digital valuation, and ecological economics, the paper distinguishes value creation from value capture and retains price, profit, productivity, and GDP as partial signals rather than final measures of progress. It develops the shifts from scarcity to governed abundance, transaction to transformation, and zero-sum rivalry to positive-sum and infinite-game dynamics, with collective expansion of consciousness as an agency-preserving form of regenerative value. Building on Flourishing Metrics and Return on Flourishing (RoF), it proposes a layered architecture for firms, governments, work transitions, AI governance, and national accounting. The central post-AGI economic problem is not how to maximise output, but how to convert abundant intelligence into durable, fairly distributed human, societal, and planetary flourishing.

This position paper argues that reliable AI requires infrastructure for human validation of implicit knowledge. AI learns from both explicit knowledge (papers, documentation, structured databases) and implicit knowledge (reasoning patterns, debugging processes, intermediate steps). Implicit knowledge remains unexternalized because documentation cost exceeds perceived value -- yet AI learns from it indiscriminately, acquiring both beneficial patterns and harmful biases. Current reliability methods can only verify explicit knowledge against sources, creating a fundamental gap: the most valuable AI capabilities (reasoning, judgment, intuition) are precisely those we cannot verify. We propose Knowledge Objects (KOs) -- structured artifacts that externalize implicit knowledge into forms humans can inspect, verify, and endorse. KOs transform verification economics: what was previously too costly to verify becomes feasible, enabling accumulated human validation to improve reliability over time.

Modern Artificial Intelligence is often framed as limited by its own disembodiment, as if giving it a body would unlock its true potential. We argue to the contrary that it is the Data Centre that is, in many cases, the body of the AI. At the same time, the Data Centre is part of the labouring body of Capital and possesses staggering organismic qualities when seen through a biological lens. We elucidate the organic analogy and identify the many-body problem that stems from the Data Centre being a non-unique, universal form of embodiment. We identify the intimate connection between computation and human desires in how the Data Centre archives, serves, and computes on data born to the desires of humans. Strikingly, while the Data Centre echoes the ghosts of human desires, it acts without desire of its own. The organismic analogy begins to split at its seams, but Capital does not care. Automata and human labour are priced into the market much the same. We argue that through the pricing of artificial intelligence Capital distils most clearly the value of intelligence and allows for its comparison across the organism - mechanism divide.