AI Subsidies

Just Because China Does It Doesn't Mean The US Has To Do It

Old Chuckie Schumer, that masterful fiscal miser, wants a $32 billion dollar subsidy for artificial intelligence. China initiated a subsidy and great independent thinker that Senator Schumer is, he thinks the US ought to match them.

This is yet another dumb idea on a massive log pile of dumb ideas. Why do we think the government will reallocate our tax dollars into AI research any better than the private sector already does? What evidence do we have?

Sometimes, the best option is to do nothing. Government never does that nor has it ever learned that lesson.

Many Senate Republicans think that Chuckie’s idea is a great one. They are blindly signing on. Useful idiots. They don’t call it the stupid party for nothing. Here is a chart of private investment in AI. The boys at Goldman estimate that the U.S. private investment in AI will grow to $82 billion next year.

US venture capital firms and big corporates like Microsoft, Google, Facebook, John Deere, and Tesla are investing billions in AI. We don’t need the government to piggyback. The government isn’t going to “help”.

ChatGPT and other LLM models are innovating and gaining more investment by the day. VCs are seeing more and more deals that incorporate some sort of artificial intelligence engine inside them.

What Schumer is doing is strategic, not altruistic. He looks good by passing this subsidy but it is a backdoor way to wedge the government regulatory state into artificial intelligence. Schumer is all about expanding the size and scope of government whenever and wherever he can. He’s really an evil guy.

Who is faster at innovating? NASA or SpaceX?

If you read Steve Blank’s blog, you will learn that it is far better for the military to tell private industry what it wants and private industry to build it than it is for the government to build it.

Private industry will figure out how to commercialize innovation beyond the defense of the United States and earn money off of it. Capitalism works best.