Opinion | What Investors Should Realize About Those AI IPOs
Summary
Holman W. Jenkins, Jr.'s May 22, 2026 opinion piece argues that investing in advanced artificial intelligence companies, particularly those developing latest-generation large language models like "Mythos," will differ significantly from past internet stock investments. The core distinction lies in the pervasive influence of the national-security state. The article draws an analogy to McDonnell Douglas, which produced commercial aircraft for global sale but restricted military jets, such as the A-4 light-attack aircraft capable of delivering a 1-megaton hydrogen bomb, to U.S. government-licensed buyers. Similarly, advanced AI models are now exclusively provided to government agencies and trusted users. This restriction stems from concerns related to tort law, self-preservation, and national security, primarily due to these models' capacity to identify and exploit cyber vulnerabilities within global software infrastructure.
Key takeaway
For investors considering AI IPOs, you must recognize that these companies operate under significant national-security state influence, unlike traditional tech firms. Your investment thesis should account for restricted market access for advanced models, primarily serving government agencies and trusted users due to cyber vulnerability exploitation risks. This implies a different risk-reward profile, where government priorities and regulations will heavily shape growth and profitability, potentially limiting broader commercial applications.
Key insights
The national-security state will be a senior partner in advanced AI companies due to models' cyber vulnerability exploitation capabilities.
Principles
- Advanced AI models pose national security risks.
- Government control over critical tech is increasing.
- Tort law and self-preservation drive restricted access.
Topics
- AI IPOs
- National Security
- Large Language Models
- Cyber Vulnerabilities
- Government Regulation
- Investment Strategy
Best for: CTO, VP of Engineering/Data, Director of AI/ML, Investor, Policy Maker, Executive
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Editorial summary, takeaway, and curation by AIssential. Original article published by Technology - WSJ.com.