The economics seem fuzzy at best, but the largest AI companies are unlikely to take a financial hit because of U.S. government subsidies, says Amba Kak, co-executive director of the AI Now Institute, a policy organization.
“There’s a way in which the government is coming out and almost committing to underwrite this market no matter what,” she adds, referencing the Trump administration’s AI Action Plan, which frames the race to develop frontier models as an existential battle between the U.S. and China.
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