When Nvidia is bigger than the GDP of Germany, the implications for national sovereignty are deeply uncomfortable, says Steve Rigby

We like to imagine that the great contests of innovation are fought between nations: the US versus China; Europe versus Asia; governments vying for technological leadership. That framing is already outdated. The real race is increasingly between countries and mega cap corporations – and the balance of power is shifting fast.

Take Amazon, which reported third quarter results this week along with its Big Tech peers. In 2024, it invested $88.5bn in R&D and infrastructure. Compare that with the United Kingdom’s entire research ecosystem including universities, start-ups, government labs and corporate R&D combined – which in 2022 amounted to £70.7bn. Put bluntly, one company now matches the research output of a G7 nation.

This is not a quirk of accounting. It is a profound sign of where we are heading. When corporations outspend governments, they don’t just build products, they set agendas. It is clear this is happening........

© City A.M.