Marcus Warns AI Giants Seek Bailouts Framed as China Competition

⚠️ The American public may be about to be fleeced. ⚠️

OpenAI, a deeply unethical company that was built on a series of lies, does not have a realistic road to profitability. And they reportedly want the USG government to rescue them But here’s the thing: Anthropic, Google, and others can readily fill the same niche.

Under no circumstances should the US bail them OpenAI.

Nor should taxpayers be forced to take a stake in them.

cc @DavidSacks

go on. tell me @garymarcus is always wrong.

@GaryMarcus Absolutely not.

@GaryMarcus So creatives get their careers destroyed by the tech psychopaths when they steal our work and use it to replace us and now we get the privilege of getting fucked again when their scam fails on an epic level? Sounds about right.

@GaryMarcus Bit of an oversimplification because AI is critical to national security and we are in an AI arms race. It’s not an exaggeration to say that staying ahead of the CCP on this is as important as beating Nazi Germany to the first nuke.

@GaryMarcus Nah open AI gonna 10x to fifty 9 trillion. Jk it's a bubble.

@GaryMarcus the way I see it, there are two main issues

- the ownership shares must not be purchased (nationalization can happen with or without compensation) - the original owners should remain solely on the hook for all debt

if both issues are avoided, this shouldn't become a bailout

How is this supposed to work? OpenAI said they could "donate" equity to a US Public Wealth Fund...but is this fund then putting taxpayer money back into OpenAI for the "donated" equity? This sounds like the circular financing that has been going on between frontier AI models and publicly trade chipmakers, big tech and data center providers. Which would suggest after a day like today, the money is rapidly deflating out of that balloon and the US people are the dollars of last resort to keep this alive.

@GaryMarcus There is NO reason to bail out OpenAI. There should be riots over this. There won’t be. Americans are lost, helpless, puppies addicted to comfort, cheap thrills, NFL Countdown.

@CapacPartners @GaryMarcus You are conflating using AI services as government tools with public investment in private capital. Most people agree our government should use the best tools. But using our tax dollars to prop up private corporations through investment is a legislative decision, not executive.

@ICENTRD @GaryMarcus Well, Trump's movement was built on lies, so that's a bingo.

@GaryMarcus Trump is considering. That’s concerning

@purepathwill good point

@GaryMarcus UMM< the "public" is already invited to buy shares of these companies in the market and now the IPOs. This is theft of taxpayer dollars to bail them out, with no true axe of governance by the taxpayers, but by the WH Gang.

@GaryMarcus If one more social program gets cut and the government uses tax payer money to prop up these evil f'rs, I think America will riot.

@GaryMarcus "But here’s the thing: Anthropic, Google, and others can readily fill the same niche." Anthropic is not in the supply chain, it only leaves OpenAI. Google is expensive. This is a good strategic move.

@GaryMarcus @luigi_warren Bingo. This must be the first time in history that a company/industry is seeking a bailout before they have even IPOed. 🤡🌎

@P33RL3SS the supply chain thing is stupid and won’t last and other parts of the government are already making deals with anthropic

@GaryMarcus To save Elon's Ass.

Trump is bailing out all the AI companies?

So, companies are now running to raise debt equity for infra? To get writeoffs later?

Gains for elites. Losses for tax payers.

@GaryMarcus Didn’t Bernie propose the same thing last week?