Summary: New York Governor Kathy Hochul recently announced her plan to establish an artificial intelligence (AI) computing center, called “Empire AI,” in order to position New York as a global leader in AI innovation. However, experts and taxpayers have expressed concerns about the potential for cronyism, wasted tax dollars, and the state’s ability to compete with private industry in this rapidly advancing field.
While the idea of giving New York’s universities a boost in AI research is commendable, the challenge lies in finding partners who can effectively build and manage a state-of-the-art data facility and cloud-computing network. Giants like Alphabet, Microsoft, and Amazon are already investing significant resources in AI cloud-computing capacity, raising doubts about whether a state-run consortium can keep up.
Additionally, the governor’s claims that the computing center will drive job growth and incubate AI-focused startups are met with skepticism. Past high-tech initiatives funded by New York State, such as those involving nanotechnology and green technology, have faltered due to bid-rigging scandals and wasted investments. The much-touted solar-panel plant on a Buffalo brownfield, which received nearly $1 billion in public-private partnership funding, failed to deliver on its promises and now primarily houses data crunchers.
While public-private partnerships can be beneficial, especially when government relies on private industry’s expertise, the track record of government-led initiatives in handling high-tech investments is less than stellar. Taxpayers should be wary when politicians claim to know better than the market how to leverage these investments to boost the economy. New York’s past experiences serve as a cautionary tale.
Ensuring the success of a state-funded AI computing center requires careful consideration of potential pitfalls, avoiding cronyism, and ensuring the state has the necessary expertise to effectively oversee such a complex venture. Above all, taxpayers should be vigilant in holding public officials accountable for their promises and preventing the waste of taxpayer dollars in the pursuit of high-tech ambitions.
The source of the article is from the blog elblog.pl