r/stocks
USA will now subsidize american companies
Author argues cash-burning AI firms will seek government bailouts under national security guise, enriching VCs at taxpayers' expense.
- AI companies have exhausted private funding and fear IPO flops due to poor financials.
- Government bailouts will merely save wealthy VCs and institutional investors using taxpayer money.
I think it was last week that the story broke out that Trump will invest public money in AI companies.The real story is that these companies have run out of private and VC money. They fear the IPOs will be a flop once the truth about their finances sees the light. Hence they are asking Trump for a bailout. I think it might work. The reason will be „BUT CHYNA!” Trump bought a stake in Intel supposed on national security grounds. I don’t see why he won’t do that for OpenAI and Anthropic. Trump will save VCs and other institutional and foreign investors with american taxpayer money. What will be the public get in return? 100$ per citizen? The wealthy will make good on their investment as usual. Another thing is that US will most likely start subsidizing American companies pretty much like China does. The real losers will be Europe. They can’t subsidize their companies because EU competition rules prohibit this.