Industry insiders Hagen Blix and Ingeborg Glimmer dive into the dark, twisted world of AI to demystify the many nightmares we have about it. They combine expertise in cognitive science and machine learning with political and economic analyses to cut through the hype and technobabble to show how fears about AI reflect different economic realities--from venture capitalists, to engineers, to artists, to warehouse workers. Truly understanding the potential impacts of AI means confronting capitalism and class, power and exploitation, in concrete terms. Only then can we fight the real threats to our lives, livelihoods, and the planet, instead of tilting at nightmare windmills. Blix and Glimmer argue that AI nightmares reveal the terrifying underbelly of our current society, of capitalism and its violent ways of organizing our world in its image. If we simply let capitalism and tech billionaires run wild, we can expect the worst: automated bureaucracies that protect the powerful and punish the poor; an ever-expanding surveillance apparatus; the cheapening of skills, downward pressures on wages, the expansion of insecure gig-work, and crushing inequality. But that outcome is not inevitable, however much capitalists may dream of it. Why We Fear AI points the way to a different and brighter future, one in which our labor, knowledge, and technologies serve the people rather than capital.