The Great AI Grift

2026-04-10 · Source: AI Now Institute · Field: Government & Public Sector — Public Policy & Governance, International Relations & Diplomacy · Depth: Novice, quick

Summary

Major AI companies advocate for extensive, unconditional government support to expand AI infrastructure, citing the pursuit of artificial general intelligence (AGI) and competition with China as justifications. They frame any corporate regulation as a threat to national security, drawing parallels to historical projects like Apollo and the Manhattan Project. However, historical precedent suggests that fostering national monopolies does not inherently lead to national competitiveness, sustainable job growth, wage increases, or broad innovation. While such policies can generate significant wealth for a select few, they do not guarantee widespread national renewal as promised by tech leaders and government allies.

Key takeaway

For Policy Makers evaluating AI industrial policy, recognize that unchecked corporate power and national monopolies, while potentially enriching a few, do not reliably deliver national competitiveness or widespread economic benefits. Prioritize policies that foster broad innovation and sustainable employment over those driven solely by an "arms-race" mentality to avoid unintended societal costs.

Key insights

Unconditional government support for AI monopolies does not guarantee national competitiveness or broad societal benefits.

Principles

• National monopolies do not ensure national competitiveness.
• Wealth for some does not equal mass national renewal.

Topics

• AI Arms Race
• Artificial General Intelligence
• National Security
• Industrial Policy
• Corporate Monopolies

Best for: Policy Maker, AI Ethicist, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI Now Institute.