I hope so too, but I think it's wishful thinking. Be prepared for the mother of all financial bailouts from the world governments to make sure that doesn't happen
I can understand why banks got bailed out by the US gov in 2008, but why would a government feel the need to bail out AI labs?
I hope you are not going to say, "to avoid a global recession or depression caused by the popping of the AI bubble". That would be unnecessary and harmful (in its second-order effects), and governments do have advisors who are competent enough in economics to advise against such a move.
Can you understand why banks were bailed out to the extent of protecting shareholders?
In the UK the first bank to go, Northern Rock, was simply taken over by the government. The shareholders got nothing. The bailout of Lloyds bank required the government taking a 40% stake. This is the way to go - if you need a bailout there should be a cost to the shareholders. otherwise you are just privatising profit and nationalising risk.
Not that UK regulation was great all round or the bailout perfect. It certainly failed to prevent the crisis which could have been done (no doubt the same applies in many countries). I looked at Northern Rock's accounts some time (an year, maybe?) before the crisis and was horrified by their reliance on interbank lending. it was obvious they could not cope with a rise in rates.
The U.S. has an admin right now that has made it clear the only important metric for country health is the stock market, which is single-handedly propped up by AI right now.
That's why huge concessions nobody asked for were made to the AI industry in the Big Beautiful Bill.
"but why would a government feel the need to bail out AI labs"
Oh easy, with all the drones and sensors, AI means military power. Those who dare opposing the bailout of the local AI gigants want the other side to win.
I hope so too, but I think it's wishful thinking. Be prepared for the mother of all financial bailouts from the world governments to make sure that doesn't happen
I can understand why banks got bailed out by the US gov in 2008, but why would a government feel the need to bail out AI labs?
I hope you are not going to say, "to avoid a global recession or depression caused by the popping of the AI bubble". That would be unnecessary and harmful (in its second-order effects), and governments do have advisors who are competent enough in economics to advise against such a move.
Can you understand why banks were bailed out to the extent of protecting shareholders?
In the UK the first bank to go, Northern Rock, was simply taken over by the government. The shareholders got nothing. The bailout of Lloyds bank required the government taking a 40% stake. This is the way to go - if you need a bailout there should be a cost to the shareholders. otherwise you are just privatising profit and nationalising risk.
Not that UK regulation was great all round or the bailout perfect. It certainly failed to prevent the crisis which could have been done (no doubt the same applies in many countries). I looked at Northern Rock's accounts some time (an year, maybe?) before the crisis and was horrified by their reliance on interbank lending. it was obvious they could not cope with a rise in rates.
Bold of you to assume competency will overpower politics in our current era.
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The U.S. has an admin right now that has made it clear the only important metric for country health is the stock market, which is single-handedly propped up by AI right now.
That's why huge concessions nobody asked for were made to the AI industry in the Big Beautiful Bill.
"but why would a government feel the need to bail out AI labs"
Oh easy, with all the drones and sensors, AI means military power. Those who dare opposing the bailout of the local AI gigants want the other side to win.
/s