{"id":161959,"date":"2025-11-27T05:48:11","date_gmt":"2025-11-27T05:48:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/161959\/"},"modified":"2025-11-27T05:48:11","modified_gmt":"2025-11-27T05:48:11","slug":"has-the-bailout-of-generative-ai-already-begun","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/161959\/","title":{"rendered":"Has the bailout of generative AI already begun?"},"content":{"rendered":"

\u201cThe way this works\u201d, said an investor friend to me this morning: \u201cis that when Nvidia is about to miss their quarter, Jen Hsun calls David Sacks, who then gets this government initiative to place a giant order for chips that go into a warehouse.\u201d<\/p>\n

I obviously can\u2019t confirm or deny that actually happened. My friend might or might not have been kidding. But either way the White House\u2019s new Science and AI program, Genesis<\/a>, announced by Executive Order on Monday, does seem to involve the government buying a lot of chips from a lot of AI companies, many of which are losing money.<\/p>\n

And David Sack\u2019s turnaround from \u201cread my lips, no AI bailout\u201d (November 6) to \u201cwe can\u2019t afford to [let this all crash]\u201d tweet (November 24) came just hours before the Genesis announcement. <\/p>\n

\"\"<\/a><\/p>\n

Coincidence? <\/p>\n

Another friend of mine, an AI consultant who works closely with government agencies, sent me a concerned LinkedIn note, \u201cAre you following the Department of Energy\u2019s big AI announcement yesterday? [Part of me is] excited about it. But part of me – a part of me that your post speaks to – sees it as a government [bailout]. Is that cynical?\u201d<\/p>\n

Still a third friend, a leading neuroscientist, said much the same to me, in an email \u201cA bailout was how I read it.\u201d<\/p>\n

\u00a7<\/p>\n

The libertarian news site LewRockwell.com, reprinting a blog by Moon of Alabama<\/a>, reached essentially the same conclusion, in detailed analysis called Executive Order Provides for Bailout of Overextended AI Companies<\/a>. <\/p>\n

Building on my Monday \u201cA tale of two capitalisms<\/a>\u201d newsletter, and expanding on its notion of \u201csafety-net socialism for overextended companies,\u201d the author lays out several facts that certainly seem to speak for themselves:<\/p>\n

\"\"<\/a><\/p>\n

Whether this is the first step towards sub rosa<\/a> bailout remains to be seen, but it\u2019s definitely worth keeping an eye on. In particular, it will be interesting to see both whether all these LLMs have a genuine, positive impact on science (or just produce a lot of queries that go nowhere, a digital version of the infamous never-built Gravina Island Bridge<\/a>) and whether this is the last government subsidy of the AI industry, or just the first of many.<\/p>\n

Gary Marcus has a sixth sense for danger, hype, and misappropriated funds. He was the first person to predict that scaling would not lead to AGI, was also first to anticipate that the AI industry would seek a bailout. Please join over 88,000 subscribers in supporting his efforts to keep the AI industry honest.<\/p>\n

\"\"<\/a>You are now here.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe way this works\u201d, said an investor friend to me this morning: \u201cis that when Nvidia is about…\n","protected":false},"author":2,"featured_media":161960,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":{"0":"post-161959","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/161959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=161959"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/161959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/161960"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=161959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=161959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=161959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}