Ex-Google CEO Eric Schmidt calls OpenAI and Anthropic modern colonial trading companies
Source: The Decoder (opens in a new tab) · Manuel Uth
Intel Summary
In an essay for Foreign Affairs, former Google CEO Eric Schmidt, historian Niall Ferguson, and researcher Lisa Klaassen argue that the US and China are operating as AI empires, with firms like OpenAI and Anthropic functioning as colonial trading companies. The authors state AI supremacy will depend on capital expenditure—with US corporate spending projected to exceed $600 billion in 2026—though mounting debt, data center protests, and Taiwan chip supply risks could impede both nations.
Why It Matters
The analysis underscores how frontier AI development has shifted toward extreme capital intensity and physical infrastructure constraints rather than pure algorithmic breakthroughs. It identifies key macro vulnerabilities—including public opposition to data centers, sovereign and corporate debt levels, and semiconductor supply chain exposure in Taiwan—that could disrupt frontier AI expansion.
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