Explain how an AI bust would tank the economy? They don't employ enough to feel the hit from that.

They're not even IPOed so how do they tank the market? GPU and ram prices will go down but that will actually help most tech companies.

I don't think the rest of the economy is inflated on the fantasy gains of AI.

We could actually go back to feeling like we can invest in products and content without FOMO.

OAI and Anthropic can actually both tank, MS would pick up OAI's IP, Amazon would pick up Anthropic's, and Google would keep cruising. We'd have a model plateau for a while but ultimate AI would keep on chugging.

If AI fails as a technology, it's going to lead to a great depression and probably either a revolution or WWIII.

If your country doesn't have any leading models, why not legalize distillation, either explicitly or implicitly?

(Chinese labs famously distilled American models, and that seems to be going well for them. They now have a competitive industry, home-grown talent choosing not to leave, and they now can truly compete without distillation).

It doesn’t have to be the leading countries, if the EU allows it, it is good enough to create a market for distilled models