Uncle Sam considers buying a seat on the Titanic

AI + ML

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L'etat, c'est AI

OPINION The US government is reportedly weighing whether to take a financial stake in AI companies, which looks a bit like negotiating for a seat on the Titanic.

Neither OpenAI nor Anthropic, the marquee brands in US AI, are profitable yet. While Anthropic may be nearer to that point if its accounting survives scrutiny, OpenAI's $1.4 trillion in financial commitments over the next eight years have been interpreted as a red flag for investors.

This raises (at least) two questions: Should the US government be picking winners? And should the US government be picking losers?

The first question appears already to have been decided. As notedby the US Council on Foreign Relations, since January 2025, the feds have invested $20.9 billion in sixteen deals that involve direct ownership. This represents a change from more...

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