alt Hacker NewsThese debts mean nothing if the US government actually views AI technology as being on par with the Manhattan project. They'll just bail them out or nationalise them.
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If the US companies need trillions to barely beat Chinese companies spending billions, despite a multi year head start...
If they bail them out it should be done like the GM bailout. Shareholders leave with nothing.
The advantages of being a reserve currency and then also blaming your peer competitors as “manipulators”.
They'll bail them out with what money? US is already almost $40T in debt, how do you think the bond market would react if another $2T were abruptly added to it?
In other words, the US gov will simply put all the debt onto the public, as usual.
They can only do that if AI is profitable or at break even. Otherwise they would need to finance these companies yearly.
> These debts mean nothing if the US government actually views AI technology as being on par with the Manhattan project. They'll just bail them out or nationalise them.
According to Wikipedia, the Manhattan project only cost $28 billion in 2024 dollars. That's a completely different order of magnitude compared to what we're talking about here. I imagine the size of the investment here would even be hard for the US government to swallow.