No. of Recommendations: 1
AI will change the economy: possibly increasing GDP growth by 1% per year, and possibly displacing many workers from their jobs. I think there's enough private funding, and the U.S. government should stay out of it, except for funding basic AI research, preferably with existing departments that focus on healthcare (NIH), education (DOE), and science (NSF). Chatbots, AI search, and data centers should not get any government support, because there's plenty of private support. AI has uses in war, and so will get some defence department funding. Loan guarantees are a red flag.
CFO of OpenAI: "... We always want to be on the frontier chip. So the question is how long does a chip remain on the frontier? ... If the timeline on the chip stays short, that gets harder. And so this is where we're looking for an ecosystem of banks, private equity, maybe even governmental, the ways governments can come to bear.
WSJ: Meaning like a federal subsidy or something?
CFO of OpenAI: Meaning like just, first of all, the backstop, the guarantee that allows the financing to happen. ... "
OpenAI Wants Federal Backstop for New Investments
Sarah Friar, the CFO of OpenAI, says the company wants a federal guarantee to make it easier to finance massive investments in AI chips for data centers. Friar spoke at WSJ’s Tech Live event in California.
https://www.wsj.com/video/openai-wants-federal-bac...How will Artificial Intelligence will Change the World, October 20, 2025
"McKinsey global institute says that at the global average level of adoption and absorption and advances in ai implied by their simulation, AI has the profound impact to deliver additional global economic activity of around $13 trillion in the foreseeable future and by 2030, or about 16% higher cumulative GDP compared with today. This amounts to 1.2% additional GDP growth per year. ...
Artificial intelligence (AI) could replace the equivalent of 300 million full-time jobs, a report by investment bank Goldman Sachs says. It could replace a quarter of work tasks in the US and Europe but may also mean new jobs and a productivity boom."
https://www.nexford.edu/insights/how-will-ai-affec... 