Ex-Google CEO Eric Schmidt calls OpenAI and Anthropic modern colonial trading companies

What happened

Former Google CEO Eric Schmidt joined historian Niall Ferguson and researcher Lisa Klaassen in Foreign Affairs to frame the US and China as rival AI empires. Schmidt branded AI developers like OpenAI and Anthropic “modern colonial trading companies” that extract value from global data and talent. The authors argue the AI race is not about technology breakthroughs but about which nation can sustain massive financial backing. US companies alone plan to spend over $600 billion on AI by 2026. Yet, rapid expansion faces roadblocks including growing debt loads, community resistance to data centers, and a looming chip supply risk centered on Taiwan.

Why it matters

This framing shifts attention from pure innovation to funding power and geopolitical leverage. For founders, investors, and builders, it means that who controls capital and critical supply chains will shape access to AI advances as much as the algorithms themselves. The comparison to colonial trade highlights AI’s global dependencies and potential exploitation. Supply chain fragility around chips and regulatory backlash against infrastructure could tighten costs and slow rollouts. Operators should brace for uneven AI adoption that hinges on financial scale and geopolitical stability, not just technical merit.

What to watch next

Watch for how funding commitments and geopolitical tensions, especially around semiconductor supplies and Chinese-US relations, influence who can sustain AI development. Keep an eye on local opposition to data centers that could drive costs up or restrict capacity expansions. Any chip shortfalls or export controls will disrupt the AI supply ecosystem. Finally, tracking corporate and government spending plans will reveal which players will dominate AI infrastructure, shaping who wins in the global AI market.

AI Quick Briefs Editorial Desk