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If OAI blew up now a whole lotta of people who supplied money would be angry.

But those people are generally not the common person

But the pushback will be — ‘but china!’

The people who supplied money are not retail investors. They are rich people who have power and influence and connections to politicians, media etc

Sure because never ever in history losses of rich people and companies have been socialized and have been assumed by those "risk takers".

My Mom wouldn’t be able to make AI images of her dog Chico as a pirate anymore.

Isn't this mostly circular? Let pichai, nadella and friends hold the bag. We'll be fine.

Before, Microsoft would have absorbed most of OAI, and other than a speed bump in our AI progress, I think we'd have mostly been fine.

With a taxpayer stake in the company the odds that a corrupt administration will throw good money after bad due to corruption or stupidity goes way up.