Governments worldwide have committed public resources for the domestic development of AI hardware and software, semiconductor manufacturing capabilities, and local AI datacenters. Selected examples include the development of an indigenous GPU as part of the INDIAai initiative, financing for semiconductor manufacturing in Europe in the European Chips Act (and similarly in the U.S. Chips Act), South Korea’s $1 billion fund for local semiconductor manufacturers, Brazil’s $4 billion fund to (among others) invest in AI infrastructure, and Canada’s AI Compute Challenge fund to spur private-sector data centres in Canada that specialize in AI compute.
Governments also provide in-kind investments (including subsidies) to incentivise local infrastructure development, for example, the US facilitates leasing federal sites owned by the Defense and Energy departments with rapid access to large amounts of clean energy for AI data centers and new clean power facilities, in return for sourcing an “appropriate share” of Americanmade semiconductors.
In addition, governments have invested in various forms of “public compute” targeting local researchers and SMEs, such as Canada’s AI Compute Access Fund that funds private cloud AI compute, publicly funded AI supercomputer facilities in Japan, or public compute facilities and subsidised open GPU marketplaces as part of the INDIAai initiative.
Government Interventions in AI
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