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The interstate system is not exclusively under Federal control.

For example, states can allow people to drink under age 21, on the interstate highways they own.

But the Feds can refuse to pay for the highways if they do.

https://en.wikipedia.org/wiki/South_Dakota_v._Dole

That system depends on pulling funding for roads if they don’t follow the rules. Technically any state can opt out if they don’t receive any highway funding. Given the government isn’t giving large AI funding to states, they can’t do the same here.

> AI development doesn't seem to be less relevant to defense than roads.

Seems much less relevant to me but maybe my thinking is too small minded (probably because I don't believe LLMs are a path to AGI).