The dysfunctional EU lags badly in AI. Rather than attempt to catch up, it places barriers. 
Closed AI – the European Version
Eurointelligence discusses Closed AI – the European Version
The Europeans were the first in the world to have an AI regulation. But the Americans are the ones with the actual AI. Yesterday, OpenAI announced a $500 billion investment programme for new AI infrastructure, of which $100bn are to be deployed immediately. The Europeans are totally asleep at the wheel. OpenAI is right to say that AI will support the re-industrialisation. This is because industry 3.0 will require AI to optimise production processes. The way this works is that many sensors will be attached to each node of a production line, and data generated will be transmitted to a data centre, which analyses the data and feeds the information back to the company, to be used for quality control and manufacturing logistics.
We reported at one point about the German association of the electrical engineering industries, ZVEI, that they placed many of their hopes in European data centres. But our heart sank when we heard them saying that the number one priority of German companies was data security. That is the cloak under which investments are delayed. Data security should be a constraint, not a priority. Gottlieb Daimler, the inventor of the motor car, did not obsess with road safety. That came later. The Europeans have turned this upside down. The priority should be to get this going.
The sums involved are too large for governments. What government need to do is take into account the effects of AI on the future energy policy, and on regulation. The EU is a hostile territory for the AI industry on both accounts. The tragedy is that European engineers are some of the pioneers of AI technologies.
The leverage for such sums can only be provided by a large and integrated capital market, or by consortia of companies and banks. It would be wrong to think of AI as just another industry. It is not even clear that the AI industry will be as profitable as current market valuations, because AI is not a franchise at the software level. It becomes a franchise through large infrastructure. The reason why it should matter for the EU is that AI is on course to become one of the principal determinants of industrial competitiveness.
Private-Sector $500 Billion Investment
In contrast the EU placing roadblocks, Trump Announces Private-Sector $500 Billion Investment in AI Infrastructure.
President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank.
The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum.
“It’s big money and high quality people,” said Trump, adding that it’s “a resounding declaration of confidence in America’s potential” under his new administration.
Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has already started and the project goes back to 2024.
“This will be the most important project of this era,” said Altman, CEO of OpenAI.
Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine.
AI is coming and it will require a lot of energy. Trump wisely rescinded Biden’s demand that energy be from green energy.
How fast we see change may depend on lawsuits.
Musk Pours Cold Water on Trump-Backed Stargate AI Project
The Wall Street Journal reports Musk Pours Cold Water on Trump-Backed Stargate AI Project
President Trump stood alongside prominent tech executives at the White House on Tuesday to unveil what he called a “tremendous” and “monumental” $500 billion artificial-intelligence infrastructure project. Hours later, Elon Musk publicly raised questions about whether the joint venture would ever get off the ground.
Late Tuesday night and early Wednesday morning, Musk wrote on X, his social-media platform, that two of the companies behind the project don’t have enough capital to follow through on their pledges.
“They don’t actually have the money,” Musk wrote at 11:35 p.m. ET on Tuesday, replying to a post from OpenAI, the ChatGPT maker that announced the joint venture with global tech investor SoftBank Group and database company Oracle. At 12:57 a.m. on Wednesday morning, Musk added, “SoftBank has well under $10B secured. I have that on good authority.”
Musk has sued OpenAI, calling the company a “market-paralyzing gorgon.” People close to Musk have said he despises Altman, The Wall Street Journal has previously reported.
Musk’s artificial intelligence startup, xAI, is a potential competitor to both OpenAI and SoftBank.
Microsoft, OpenAI’s largest investor, was named a “technology partner” in the project, meaning the company will be involved in creating Stargate’s infrastructure. “Look, all I know is, I’m good for my $80 billion,” Microsoft CEO Satya Nadella told CNBC when asked about Musk’s social-media posts.
It isn’t the only time Musk has publicly weighed in on one of Trump’s decisions. After the election, Musk threw his support behind transition co-chair Howard Lutnick to be Treasury secretary over longtime investor Scott Bessent. Musk’s comments came as Lutnick, Bessent and their allies were battling over who should be chosen for the crucial job. Trump eventually picked Bessent to run the Treasury and Lutnick got the nod for Commerce secretary.
I keep wondering when Musk’s mouth will get in the way of his relationship with Trump.
So for, DOGE has not come up with a single major idea that has not been discussed before. And other than trivial ideas, DOGE cuts will take acts of Congress, not executive orders to do much of anything.
This is Musk’s second big disagreement. Trump was not at all happy about Bessent, one of Trump’s better picks.
Pouring cold water on Trump’s ideas does not bode well for a lasting relationship. There is only room for one big ego-mouth in the room.
The moment Musk crosses the line on usefulness to Trump, Musk will be gone.
Related Posts
December 27, 2024: Can DOGE Cut $2 Trillion Out of $1 Trillion? What About Revenue?
The answer to the first question is obvious. So let’s discuss what’s reasonable.
January 10, 2025: Elon Musk Admits DOGE Can’t Find $2 Trillion In Budget Cuts
Anyone with an ounce of common sense knew that wasn’t possible. He won’t find $1 trillion either.
January 20, 2025: Musk Promises “Doge to Mars” But There’s Two Lawsuits Already
I doubt the lawsuits against DOGE succeed.
But the idea DOGE will find $1 trillion in cuts that actually make it through the Senate are next to none.
“But the idea DOGE will find $1 trillion in cuts that actually make it through the Senate are next to none.”
Those parabolics keep turning skyward, until like Ikarus, they get too close to the Sun. Then, like Ikarus, they fall back to earth. History is littered with examples. Yet the lesson is never learned, as certain insiders benefit from it. Spending cuts are a third rail to politicians who want to keep their job.
The Three Musketeers meeting the orange Don Quixote. The EU does not have to fear.
Reminds me of the Wagner Group in Russia.
AI style.
It’s just another Trump scam and grift, like so many that came before. Congress cannot cut SS or Medicare. They probably can’t cut defense much. It all sounds good, but it will come to nothing like so many attempts to cut spending before. And it’s too late. In year 2000, maybe…with only $5 billion in federal debt, but now it’s 7 times that amount. I don’t know why Musk has backed up Trump with huge amounts of money. Musk is a smart guy, and he knows Trump isn’t smart, doesn’t understand much, and has no idea how to make America Great. America just gets worse each year and now high school graduates can’t make enough money to pay rent on a one-bedroom apartment or buy a car. In 1955 my family could afford a Ford Fairlane at $1900. That’s how much inflation we’ve had since then. A house could be bought for $12,000 but now that same house is $450,000. Government, the Federal Reserve
“Bank” has wrecked the American dream by encouraging borrowing with low rates, zero rates and QE. I never thought I’d see a federal debt of $36.4 trillion and interest costs this year will be $1.3 trillion or more. In 4 years interest will be the biggest item in the budget.
“and has no idea how to make America Great”. He knows how to
make himself and his family billionaires.
The Trump/Musk situation is a tricky one. I have argued that Musk buying Twitter, exposing the Twitter files, firing the censors and restoring free speech to counter the other social media outlet and MSM narrative machines was THE main way Trump regained the White House. The nonsense from the left that was buried previously and the curated messaging from the DNC pushed synchronously to the other media outlets was no longer effective when there was a millions-strong media platform that offered a different pespective and actual facts that refuted that narrative.
Trump benefits from Musk just as Musk benefits from Trump. Trump will want JD Vance or the Republican nominee in 2028 to succeed and he’ll need the X platform to do that. It appears at the moment that the marriage might just be having differences of opinion. We’ll see if the egos realize that they need each other.
Big business thinking they can control government hasn’t worked well historically but government wielding big business also has a mixed track record, albeit they are much more able to have businesses do their bidding. Musk’s control of Space X, which the government needs at present, his ownership of the largest freedom-of-speech social media platform gives him a lot of leverage. Trump of course holds the more powerful set of cards. Grab the popcorn, it might be a longer movie than you think.
I’d follow Scott Bessent into war.🫡
“If illegal immigration is good for GDP, just build a road from Tierra del Fuego to the Rio Grande and let everyone in. We could double GDP… but per capita GDP per AMERICAN would drop substantially. It’s about Americans’ standard of living.”
Build an express lane to Martha’s Vineyard.
The EU is a zombi. EUrophilia is a cultish denial of reality. Layers and layers of suffocating bureacracy, taxation, and unelected archons issuing missives like bishops in the Holy Roman Empire, which collapsed under the pressure of war with a more coherent empire.
EU should be left to stew based upon 1914. F-’em. Learn to get a long with your neighbors.
SPX made an all time high, but lost its grip
Profit is the reward for providing a good or service that pleases the public so much they pay extra for the pleasure. Europe taxes all profits near 40% and if profits are high Europe adds another 40% excess profits tax. Most wealth creators leave Europe to create value in low tax unregulated USA. Educated, talented, ambitious, daring, hard working people create wealth. In Europe those types go into government because stealing wealth created by others is the best option in Europe.
Oh goody, AI and more mRna clot shot vaccines to save our health.
Trump has talked about all topics but the death jab, gee I wonder why?
Europe is getting screwed not because of anything related to AI. They are in the dumps because they are too much of a vassal state of the US Empire. Unless they get leaders with the backbone to stand up to the Empire and act in the interests of their own respective nations, they are toast. It has nothing to do with their AI policies whatsoever.
Not only leaders, the whole agitprop industry buys US produced (Bloomberg, Reuters) bs, lock stock and barrel. If you cannot make up your own bs, you’re a vassal and toast.
No. It was just sloth after 2008.
How better to sell AI to the Boomer and Gen-X rubes (sarc) than to have the somewhat conservative, very populist president sell it with Larry Ellison promoting MRNA shots magically created for “your cancer”. Assuming the real goal is to usher in the new god devoid of spirituality and soul, controlled by some of the creepier oligarchs. I recall Ellison referencing (paraphrasing) how much better behaved we’d all be with AI surveillance cameras everywhere.
With Nazi saluting Elon at the helm, how bad can the new golden age be? /s
you get what you vote for……
Not a fan of Elon, but the Nazi salute isn’t credible.
Did you notice if he clicked his heels, too?
Like Mel Brooks in The Producers?
Cmon mpox. You are better than this
Better than Nazi saluting Kamala or Nazi saluting Hillary – you saw thos photos too?
The Nazi salute false narrative the propaganda media is trying to sell. Seen the photos of Democrats giving the same arm gesture?
Eurointelligence is mixing it up: industrial processes have little to do with data security of individuals.
For instance, would you like AI to give a comprehensive answer the question: tell me all you know about XY (XY being you!)?
There are obvious problems in Euro area. Weak, crusty leadership, scant technology companies, startup acquisition by US competitors.
On political level: high energy costs, auto industry roiled by China, open door immigration and related social costs…
Hope is in the air.
As far as industrial AI or machine learning goes, it has been in constant use since the 1990″s. All the sensors were already placed for distributed control systems so the collection of data was and is already in place. What this AI creature is now, I’m not sure yet but it seems like some kind of enhanced parlour game that will only speed the dumbing down of people. Those companies that seriously wish to use AI that didn’t before will have their own data centres and models completely private. Big data centres for the masses are just a commercialization and hype imo.
Europe in the last 15 years has really dropped the ball. It’s popular these days to blame it all on Germany but basically the quality of industrial leadership is weak and lets not even get into the quality of the politicians. Hopefully it will change before it’s too late.
They’ve lost sovereignty bc of their border policies. Same thing was happening here. It’s all done on purpose.
Why would a country want to lose sovereignty?
Something wrong here. Why do tech firms need money from the government in order to develop AI? They have raised trillions in the stock market.
The whole thing smells. If AI is as good as they say, the tech oligarchs should have more than enough capital to continue on with the development.
You subsidize things you want, you tax things you don’t.
This is how they get to pillage the treasury aided and abetted by the corrupt thugs in charge I forgot drug addicts a tunnel to mars from there to conquer the universe legit Shi t. And god gave them the go ahead. And the debt ceiling what ceiling..
God gives me money because I’m awesome!
I am God.
I deserve as much government money as I want, which is all of it.
I will not allow you to have as much as I gave the Democrats and wokefascists. I will take you down with endless lawfare and fake news.
The 500 billion AI Stargate proposal is all private money, it’s not government give aways. That’s why Trump lined up big bankers and rich people/corporations.
There is an inference here, Mish, that somehow A.I. is GOOD for the world!
IS IT?
It might not be good for everything but it’s definitely going to be good for some things.
The job of the next generation or so is figuring out what it’s good for and what it’s not good for.
I am hoping to buy an Optimus robot and put an Arnold Schwarzenegger shell on it it and have it walk around next to me. That would be cool.
That can be yours now, and includes an Indian guy to remote control it.
I am in charge of all of the Indian guys with remote controls.
Enough of this
Enough of this
You approved it. Don’t complain afterwards.
Ask AI to draw you a clock at a certain time of day… it’s a mess.
EU maybe better off avoiding the bubble … be a fast-follower.
That said, EU investing in “Green” is a bigger waste…at least the US will have cheap electricity after AI bubble breaks (aka normalizes).
Germany gave up all their nuke reactors and is now broke for electric. Can’t fix greenscams. Again, the left continues to dig their own graves.
A disturbing trend underway is AI-written web pages. When you try to search the web for useful information, you wind up with web pages written in broken, non-sensical English that regurgitate what you can find on Wikipedia.
I’ve noticed real estate listings all seem to be written by AI nowadays…”modern convenience blended with old-fashioned charm” is in every listing and I’m tired of it.
Might be better than in the olden days of human error: “This beautiful home has a large wrap-around dick.”
Glorious!
Then there was the listing photo accidentally showing two dogs boning in the back yard
This is very American. Putting money above ethics, morals and everything else. Unfettered AI is extremely dangerous, and yet Americans are happy to relinquish their prized freedoms to folks who will monitor even when they go to the restroom. Not the smartest lot on earth, but a most unscrupulous greedy lot.
We could be like EU and concerned about how many kitchen knives you can get. That would be better?
Money is the only thing that matters, and when I have all the money, I will be the only thing that matters, and people will have to love me.
I have all of the things, including all of the money. I own the fabric of spacetime, and all of the thoughts inside your head. I am shorting existence.
I am shorting love. My open societies propaganda network is the only thing that matters, resistence is futile, as my father in the 1930s taught me.
AI is going to happen. I don’t like it, but it is what it is. Keir Starmer (the delusional UK prime minister for the time being) has resolved to make the UK a hub for AI. Of course, he also just promised that the UK will stand by the Ukraine for the next 100 years. Before then, there probably won’t be much Ukraine left, and the UK will be an outpost of the caliphate. Silly Britons.
Everyone will suffer from AI. A friend told me about Suno.com which essentially allows you to create music/song/instrumentation with word prompts. I’ve created a half-dozen songs already and most are amazing and they are 100% free. Why does anyone need Taylor Swift now?
It won’t be long before actors, writers, musicians, etc are all out of a job or relegated to doing live gigs in bars, halls and theater.
It won’t stop there, the era of the knowledge worker is coming to an end and I am so glad I am retiring from that kind of work next year.
Worse than the job loss will be the psychic turmoil from having most of our interactions be with computer intelligence. Like the movie “Her” when Joaquin Phoenix finds out the operating system he’s fallen in love with (voiced by Scarlett Johansson) has relationships with thousands of other people like a two-timing bitch.
The movie Ready Player One seems more like the future I expect with most people living in mobile home “stacks” putting on AI driven virtual world goggles to escape the misery.
We need Taylor to perform her Songs…that’s the answer. Do you want ROBOTS then to perform?
Music robots or sex robots?
People need Taylor Swift (and other actors/singers etc) for shared experiences.
Sure you can create amazing music with AI, maybe even better than some actual human acts. But if no one but you ever listens to them then you’ll quickly grow bored of it. Shared human experiences are why we listen to music, watch TV/shows, read books etc.
The explosive growth of Netflix would disagree with you. People want to listen to their own opinions, voices, etc. Just look at the hostility here on any comments that disagree with a particular narrative.
I fully expect people will create their own music and keep to themselves like they’ve done for everything else. Most people don’t know who their neighbors are any more.
And by the way, AI music can be shared with a click of the mouse. I plan on sharing my music with various friends and family. I think TV commercials, advertising, etc will all feature AI music in the future, all shared experiences.
I forgot to mention that Suno can create music videos too but I haven’t tried that feature.
Netflix is shared experience. We are all watching the same content even if it’s no longer all at the same time (ie show X is on at 9:00 Monday night).
Non-shared experience would be if we all created (or had AI create) our own unique TV show that only we watched. You creating music for yourself is an example of that (though if your friends and family do like the same music and listen to yours then it’s shared since you’d all have something to talk about or listen to together when you get together).
I’m suggesting that very few people want non-shared experiences in music/movies/sports etc. Part of socializing (even internet forum socializing) is talking about movies/music/sports that you share in common with friends/family etc.
The best analogy I can give you is that people love NFL Football. Watching games, talking about players, teams etc is a shared experience even if we don’t all watch the same games, players etc. But fantasy football, specifically your fantasy team is a non-shared experience because it’s unique to you. Absolutely no one want to hear you drone on about your fantasy team, they just don’t care because it’s your unique experience.
According to Gallup. Before 2022, last time the GOP led in party affiliation was 1991….The big tent party exists. The hate and division of the Democrats has backfired. Nature is healing.
My minions are gathering to sing my praises!
I own all your minions, and have full royalties of all praises. Glory to me and the church of woke. You will bow down at my Satanic mass in Davos like all the billionaires and leftist puppet regimes do. You will eat my bugs.