Trump’s AI investments are turning Washington into a VC firm
Donald Trump’s America First approach to governing has produced plenty of unusual developments. But taking stakes in potential national champions in AI may be among the most curious. Late last month, the Commerce Department announced $874 million in proposed funding for seven companies developing the memory, packaging, photonics, and materials needed to build faster AI systems. In return,…
The Commerce Department's proposed $874 million investment in seven companies developing AI components has turned Washington into a venture capitalist, sparking curiosity about whether this is a form of nationalization or public-sector venture capital. The funds, across several key parts of the AI supply chain, include $300 million for GlobalFoundries to develop co-packaged optics and $245 million for Kepler to create new AI memory.
This comes after a $2 billion investment in quantum computing and manufacturing companies in May, and a $8.9 billion stake in Intel last year. While some, like author Chris Miller, see this as a public-sector version of venture capital, others argue it resembles traditional regulation, with concerns about unclear rules and lack of transparency.
Critics worry that this new model could potentially lack democratic control and clear accountability, with the government acting more like Silicon Valley under pressure from China, yet without the same level of oversight.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
