While some believe governments are stifling AI's progress, recent events paint a different picture. Governments are not just allowing but actively accelerating the AI race between nations. Rather than pursuing limiting policies, recent moves signal full-steam-ahead efforts to harness AI's immense economic and geopolitical potential. Powerful tailwinds now propel rapid GenAI progress - beyond innate model abilities, the world's best talent and capital are now buttressed by intensifying government programs.
Let's start with the new public-private cooperation domain:
- France: Billionaires invest $300 million in Kyutai, an AI startup (https://bit.ly/3uI1uXM), after the government announced a $590 million fund to create AI champions (https://bit.ly/3Rc5UxJ).
- Japan: Nvidia partners with the government to launch an AI research lab and invest in the country's AI infrastructure (https://bloom.bg/3uCXGXG)
- UK: Microsoft collaborates with the government to build AI infrastructure and research labs (https://bit.ly/4a662qW)
Complimenting these announcements of the last few days is Singapore announcement of developing an LLM for Asean region at USD52m (https://bit.ly/484Fgxq).
To foster domestic development and reduce the reliance on expensive outside computes and models, a growing number of nations focus on nurturing AI talent. Singapore (https://bit.ly/46EiU4Z), Saudi Arabia, the Philippines, Nigeria, and others are prioritizing talent development programs. If the attached chart is precise (https://bit.ly/3TaPLLl), most countries outside the US and India have a lot to do. The US dominance is unquestionable and is reflected in not just news items but the payments made by the rest of the world for AI access. This author has been writing for months that India has the opportunity to be the rest of the World's AI factory. If it does not, most of its talent will migrate elsewhere and be only a part of onshore development, with far fewer benefits to India.
AI isn't just a technological marvel; it's a macroeconomic game changer. Its potential to create a fourth economic sector, following the industrial and service revolutions that created the previous two, is undeniable. Moreover, AI's emergence as a political and geopolitical force ensures its impact will be felt far beyond a select few nations.
As we enter 2024, the AI landscape is accelerating in every direction. Governments are joining hands with each other much more than in regulations. Governments are increasingly working with domestic and global private sectors to ensure their nations do not fall behind early. There is a global focus on AI talent development. 2024 should see far more than what we witnessed in 2023.
