I hope I’m not putting words into the author’s mouth (and I happy to be corrected if I am), but I have interpreted that part as following:
- A lot of value is being generated in service industry, technology, content creation (for balance)
- If AI starts to replace / automate swathes of industries, humans and some companies simply won’t have time to adjust resulting in a net loss to economy. See: horses and automobiles in early 20th century, except sped up x100
- Whatever value was generated by the said industries/businesses is now also usurped by AI companies. In significantly reduced quantities (interconnectedness of economies, less paying customers or users etc.)
This is not what's usually meant by wiping out all value in the universe, in this context
Mosquitos and humans value very different things. The things a human consider good and valuable mean nothing to a mosquito, and whatever the mosquito ideal is, none of humanity spends any time or effort whatsoever trying to figure out what that is
A strong AI could be to us what we are to a mosquito. The strong AI could have completely alien goals, as it has no reason to care what we like.
If the AI has been trained to accumulate dollars (or paperclips), all else equal the AI would prefer filling the universe entirely with dollars, rather than having a universe with some happy living humans and slightly less dollars (or paperclips). As the AI, you simply kill the humans if you can and turn them into dollars. That way, you've achieved your goal of having more dollars, which is really good.
Many humans think it's really bad if we have to die so an AI can maximize some other random alien goal we don't care about. So destroying value here means "destroying what humans think is valuable"
- A lot of value is being generated in service industry, technology, content creation (for balance)
- If AI starts to replace / automate swathes of industries, humans and some companies simply won’t have time to adjust resulting in a net loss to economy. See: horses and automobiles in early 20th century, except sped up x100
- Whatever value was generated by the said industries/businesses is now also usurped by AI companies. In significantly reduced quantities (interconnectedness of economies, less paying customers or users etc.)