/Tech1d ago

Policy researcher Adam Thierer argues that AI nationalization and state equity stakes will stifle innovation and restrict competition

He compares the proposals to historical public utility models

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Adam Thierer@AdamThierer

I see the idea of AI socialism is back in the news again today.

I’ll just reiterate what I’ve said here many times before: The idea of nationalizing AI – whether “hard” (complete govt ownership) or “soft” (equity stakes) nationalization – should be rejected in all its forms. It does not matter whether AI nationalization is being pitched by Bernie Sanders, national security hawks, or AI companies themselves – all flavors of AI socialism are poisonous and must be stopped.

Nationalizing AI, or even treating AI like a regulated monopoly or public utility, would have the same deleterious effects (and then some) that we have seen in countless other historical case studies. The entire history of nationalization and utility-style regulation is one of capture and cronyism, diminished innovation and consumer welfare, and censorial controls on speech in the case of information and communications technology (ICT) markets. Our nation would lose its competitive advantage in computation and algorithmic innovation if we took this disastrous path for AI. AI would become a Technology of Control instead of a Technology of Freedom.

Below you will find some journal articles and essays I’ve authored on the ugly history of soft nationalization and regulated utility economics and politics in the ICT policy world. We must not repeat this disastrous history with AI.

Jeff Stein@jstein_star

SCOOP: US officials have had talks about having government acquire shares in AI giants, sources say

Altman has discussed w/ senior officials, including Trump. Did again recently

May be *ceding* shares to USG - not a purchase

Shares could go 2 dividend

https://www.notus.org/technology/trump-ai-stake-openai

6:19 AM · Jun 5, 2026 · 100K Views

Sentiment

Positive users endorsed rejecting AI nationalization and favored open networks over government control as in early internet precedents, while negative users dismissed the arguments as ignoring crony capitalism or human consequences.

Pos

56.2%

Neg

43.8%

11 comments with sentiment.

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VIEWS41.8KBOOKMARKS31LIKES164RETWEETS20REPLIES23

Marc Andreessen 🇺🇸@pmarca

There was a huge fight in the 70’s and 80’s to prevent attaching other telephones and other telephone cords to the phone network. Really. https://en.wikipedia.org/wiki/Carterfone

22h41.8K16431

Adam Thierer@AdamThierer

I see the idea of AI socialism is back in the news again today.

Jeff Stein@jstein_star

SCOOP: US officials have had talks about having government acquire shares in AI giants, sources say

Altman has discussed w/ senior officials, including Trump. Did again recently

May be *ceding* shares to USG - not a purchase

Shares could go 2 dividend

https://www.notus.org/technology/trump-ai-stake-openai

1d100K20347

Adam Thierer@AdamThierer

“A History of Cronyism and Capture in the Information Technology Sector,” by Adam Thierer and @bskorup, Journal of Technology Law and Policy, Vol. 18, No 2 (2013). https://scholarship.law.ufl.edu/jtlp/vol18/iss2/2/

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Adam Thierer@AdamThierer

“Unnatural Monopoly: Critical Moments in the Development of the Bell System Monopoly,” by Adam Thierer, Cato Journal, Vol. 14, No. 2 (Fall 1994)

https://www.cato.org/sites/cato.org/files/serials/files/cato-journal/1994/11/cj14n2-6.pdf

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Gabriel Weil@gabriel_weil

@AdamThierer @sebkrier Something we agree on!

1d10141

Adam Thierer@AdamThierer

“Is Telecom Licensing a Good Model for Artificial Intelligence?” by Adam Thierer, July 8, 2023.

https://medium.com/@AdamThierer/is-telecom-licensing-a-good-model-for-artificial-intelligence-5246dc5a3cf0

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Sciumo@SciumoInc

@AdamThierer Not surprising those who say “controlling or nationalizing AI” are generally bad at math.

AI is a Sorites software sieve problem. No way to know.

1d66

Owen Fowler@OwenDFowler

@DavidFlagg20 @AdamThierer @grok discuss how regulations around privatized utilities distort the market in deleterious ways.

21h19

BongBong@BongBong

@pmarca Know how monopolies form? Not as a byproduct of competition, but due to protection FROM competition. This happens with government involvement. All monopolies formed in the US only existed due to political connections and laws being written to favor connected businesses.

22h71

Mr. House@USArmyPhoenix

What!? Is this dude serious!?

That’s total BS!

I was there, I was in that industry, and my family wrote the legislation that the federal government had to enact to put in fiber optic cables across the county, especially in rural areas, because these ISPs didn’t want to invest in areas they saw as not worth it.

There was even a South Park episode about how people only had one Cable/ISP/utility option and so they overcharged and throttled you because where else would you go? That and every time you had a problem they wouldn’t fix it in a timely manner or at all, or if wanted to cancel they made it impossible.

I personally knew the people involved with Time Warner and Comcast and it was a gentleman’s agreement about Ohio being the dividing line they wouldn’t cross to compete with each other.

18h21

David Flagg@DavidFlagg20

I'm not quite agreeing or disagreeing, but I'd say that privatizing utilities didn't work out well, either. You can tell by looking at your electric bill. Over 700 dollars for a two bedroom apartment, in northern Maine, in February. That's what I got.

I'm not in favor of socialism, but I'm also not in favor of whatever crappy system we have now. I'd call it oligarchy. Capitalism is somewhere in the middle. It has reasonable regulatory frameworks and raises actual revenue to manage actual expenses.

So many are crying socialism... that's not what I'm worried about. I'm worried about millions of us starving when AI replaces millions, maybe tens of millions of jobs.

Something has to be done. This isn't the kind of problem that just sorts itself out.

22h911

Mark Gubrud 🇺🇸@mgubrud

@AdamThierer I suggest you look at the history of EXTREMISM. Ideological extremism of the left or right leads to solutions that don't work and grotesquely distorted outcomes. "Libertarian" capitalist fundamentalism is such an extremism.

Sanders is proposing pragmatic measures that +

20h58

autohumanismo 01@autohumanismo

@AdamThierer None of the old or current systems are good enough for AI and automation.

We need true digital-age government systems that acknowledges seriously the risks and benefits of putting AI in charge of so many systems.

Autohumanismo is a proposal for such a meta-politics evolution.

23h32

Mogomra (e/acc)@MightyMogomra

@pmarca Remember the good old days when you had to rent wallpaper images and ringtones from the cell phone company for $3 a month?

17h832

Ryan@Ryan_Reilly78

@AdamThierer I’m not suppressed that a FIRE fellow has no idea what socialism actually means but I assure you that words still have actual meanings. Learn to have some shame or learn to shut the fuck up

1d532

Emmett Murphy@emmf40

@AdamThierer @pmarca This is an awful idea! The government will ONLY screw it up. They are incapable of doing great things when the private sector can run rings around them

23h921

The Embittered Economist@EmbitteredThe

@AdamThierer Amusing to whine about cronyism when market concentration, and the rent-seeking outcomes it guarantees, has already generated crony capitalism.

Cart before horse stuff!

1d721

Josh Albrecht@joshalbrecht

@AdamThierer I'm curious about the problems with utilities?

I turn on my faucet and it just works. I haven't thought about most of my utilities in forever and they all kinda work fine?

Not saying we should accept Bernie's proposal, but the utility angle doesn't seem totally crazy

21h221

Amit 𝚇@xplorable

@AdamThierer Your thinking is purely material with no sense of human consequences. AI after this point of development should be under the military just like nukes.

21h291

Sholi@Sholi_software

@AdamThierer Imagine if AI generated wealth should be giving to all humans around the world with minimal corruption.

Imagine Altman created the solution already $WLD.

Are you a human? Ok, this is you part of AI wealth

20h93