AI's Cozy Crony Capitalism

WHAT HAPPENS TO REGULATION WHEN THE BAPTISTS ARE ALSO THE BOOTLEGGERS?

- BRUCE YANDLE

IN MAY 2023, OpenAI founder Sam Altman testified before the Senate Judiciary Committee about ChatGPT.

Altman demonstrated how his company’s tool could massively reduce the cost of retrieving, processing, conveying, and perhaps even modifying the collective knowledge of mankind as stored in computer memories worldwide. A user with no special equipment or access can request a research report, story, poem, or visual presentation and receive in a matter of seconds a written response.

Because of ChatGPT’s seemingly vast powers, Altman called for government regulation to “mitigate the risks of increasingly powerful AI systems” and recommended that U.S. or global leaders form an agency that would license AI systems and have the authority to “take that license away and ensure compliance with safety standards.” Major AI players around the world quickly roared approval of Altman’s “I want to be regulated” clarion call.

Welcome to the brave new world of AI and cozy crony capitalism, where industry players, interest groups, and government agents meet continuously to monitor and manage investor-owned firms.

BOOTLEGGERS AND BAPTISTS HAVE A ‘PRINTING PRESS MOMENT’

CHATGPT HAS ABOUT 100 million weekly users worldwide, according to Altman. Some claim it had the most successful launch of a consumer product in history, and Altman anticipates far more future users. He’s now seeking U.S. government approval to raise billions from United States, Middle East, and Asian investors to build a massive AI-chip manufacturing facility.