Stargate Is No Reason to Bury Our Heads in the Sand

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ZEW Economists on the US Government’s Plans for AI

ZEW researchers share their thoughts on the “Stargate” project in the US, which is to invest in artificial intelligence infrastructure.

US President Donald Trump recently announced The Stargate Project, which aims to invest at least 500 billion US dollars in artificial intelligence (AI) infrastructure in the USA. Professor Irene Bertschek, head of ZEW Mannheim’s “Digital Economy” Research Unit, and Dr. Dominik Rehse, the Unit’s deputy head, have the following to say on the matter:

“The realisation of Stargate, a public-private partnership, would further expand the USA’s existing international leadership in the field of artificial intelligence. However, for Germany and the rest of Europe, this shouldn’t be an excuse to bury our heads in the sand. Even if it’s almost impossible to catch up with the US, it’s still crucial to strengthen our own infrastructures in order to become more independent and to develop specific skills in a targeted manner. The focus here should be on developing AI technologies in which Europe can develop a competitive advantage. To this end, it’s essential to make existing data more usable, for example in the areas of industrial production and medicine, and to invest in research and development in a targeted manner. Last but not least, Europe’s success depends on better availability of financial resources – an area in which there’s still a lot of catching up to do, whether in terms of growth capital or public-private partnerships within the EU,” comments Bertschek.

“Almost simultaneously with the announcement of the Stargate Project, the new US administration also abolished the Biden administration’s executive order on AI. However, this does not make the space for further AI development free from regulation. Other regulations continue to apply, such as the traditionally strict US product liability law. In addition, individual US states are still planning to implement their own packages for AI regulation. Ultimately, it remains unclear how the geopolitical balance of power will actually change as a result of potentially looser regulation in the US. And let’s not forget that China is the third major player,” says Rehse.