US State Funding, Chinese Parallels, and the Artificial Inflation Risk in AI Shares
With the president of the US giving government funding to a certain sector of the economy and to private and public companies, it raises a few questions, as this looks rather like the way China and the CCP (Chinese Communist Party) operate by funding state-backed companies. It raises the question of how much this is free market capitalism if the state is funding enterprise, or is it Keynesian economics on steroids?
Another thing to think about is while China funds its enterprise, the shares of those companies are not as readily globally available as US companies. With government funding companies, it makes one wonder how artificially inflated the valuation of the company is at the time reflected in the share price. If one purchases those shares at that inflated price, could they be buying some sort of short-term top and be detrimental to the investor gaining exposure to it at that very time? The $2.4 Billion AI Funding
President Trump announced a $2.4 billion industry-backed commitment from major tech companies—led by Nvidia ($1 billion), AMD ($500 million), OpenAI ($200 million), and Google and Anthropic ($150 million each)—to support AI-driven scientific research across 14 federal agencies under the Genesis Mission. Involvement of Elon Musk and Jensen Huang
Alongside Mark Zuckerberg, Musk and Huang collaborated with the administration by participating in White House AI policy talks, signing voluntary framework agreements, and successfully lobbying against a proposed independent, industry-funded AI regulatory watchdog.