If the markets reject OpenAI and Anthropic, the US should nationalize them
theguardian.com ∙ Wednesday, August 12, 2026
Top line
If for-profit AI labs like OpenAI and Anthropic fail financially, the US should nationalize them to operate as public goods aligned with democratic values.
Summary
Authors Bruce Schneier and Nathan E Sanders argue that leading artificial intelligence labs like OpenAI and Anthropic are built on an unsustainable economic foundation plagued by high training costs, rapid depreciation, and steep open-source competition. If these for-profit companies face financial failure or market collapse, the authors propose that the United States government nationalize them. By converting these labs into publicly managed agencies and regulated utilities, the government could ensure that AI develops as a transparent, democratic public good focused on safety and societal benefit rather than corporate profit and artificial general intelligence hype.
Highlights
OpenAI and Anthropic were originally founded with safety and public-interest missions, but eventually succumbed to corporate market incentives and pursuit of investor value.
Both leading AI labs face severe economic challenges, including exorbitant model training costs, rapid hardware and model deprecation, and intense competition from free open-source and Chinese alternatives.
Due to these economic headwinds, the long-term profitability of for-profit AI labs remains highly questionable, raising the prospect of financial collapse or a market bubble burst.
If these companies fail in the market, the authors propose that the US government nationalize them rather than letting them die.
Nationalization could involve splitting the companies into a publicly managed innovation function (akin to national research labs) and regulated compute operations (similar to public utilities).
Public ownership would align AI development with democratic values, transparency, and societal utility, while reducing the environmental and resource costs driven by corporate competition and AI hype.
Related Items
If the markets reject OpenAI and Anthropic, the US should nationalize them
theguardian.com ∙ Wednesday, August 12, 2026
Top line
If for-profit AI labs like OpenAI and Anthropic fail financially, the US should nationalize them to operate as public goods aligned with democratic values.
Summary
Authors Bruce Schneier and Nathan E Sanders argue that leading artificial intelligence labs like OpenAI and Anthropic are built on an unsustainable economic foundation plagued by high training costs, rapid depreciation, and steep open-source competition. If these for-profit companies face financial failure or market collapse, the authors propose that the United States government nationalize them. By converting these labs into publicly managed agencies and regulated utilities, the government could ensure that AI develops as a transparent, democratic public good focused on safety and societal benefit rather than corporate profit and artificial general intelligence hype.
Highlights
OpenAI and Anthropic were originally founded with safety and public-interest missions, but eventually succumbed to corporate market incentives and pursuit of investor value.
Both leading AI labs face severe economic challenges, including exorbitant model training costs, rapid hardware and model deprecation, and intense competition from free open-source and Chinese alternatives.
Due to these economic headwinds, the long-term profitability of for-profit AI labs remains highly questionable, raising the prospect of financial collapse or a market bubble burst.
If these companies fail in the market, the authors propose that the US government nationalize them rather than letting them die.
Nationalization could involve splitting the companies into a publicly managed innovation function (akin to national research labs) and regulated compute operations (similar to public utilities).
Public ownership would align AI development with democratic values, transparency, and societal utility, while reducing the environmental and resource costs driven by corporate competition and AI hype.