US Government Commission Advocates for Manhattan Project-Inspired AI Initiative

On Tuesday, a US congressional commission proposed a Manhattan Project-style initiative to fund the development of artificial intelligence (AI) systems that could rival or exceed human intelligence. The initiative is driven by China’s increasing competition for advanced technologies.

The bipartisan US-China Economic and Security Review Commission (USCC) emphasized that public-private partnerships are crucial in advancing artificial general intelligence (AGI). Still, its annual report did not provide any specific investment strategies. The commission’s call for such an initiative echoes the successful collaboration between the US government and private industry during World War II, which resulted in the development of the atomic bomb through the Manhattan Project.

The USCC believes that the US must act swiftly to maintain its technological edge over China, which it views as a significant player in the race toward AGI. “We’ve seen throughout history that countries that are first to exploit periods of rapid technological change can often cause shifts in the global balance of power,” said Jacob Helberg, a USCC commissioner and senior advisor to the CEO of Palantir, a leading software company. “China is racing towards AGI … It’s critical that we take them extremely seriously,” Helberg added.

AGI refers to AI systems capable of performing any intellectual task that a human can do. Unlike narrow AI, which is specialized for specific tasks, AGI has the potential to revolutionize industries ranging from healthcare and finance to national security. As China accelerates its efforts to develop AGI, the US is under increasing pressure to maintain its leadership in cutting-edge technologies. This has spurred discussions about the need for large-scale government initiatives, similar to the Manhattan Project, that would bring together public agencies and private companies to tackle the development of AGI.

Helberg highlighted energy infrastructure as a significant bottleneck for training large AI models, noting that substantial computational resources are required to build AGI systems. He suggested that a public-private partnership could address this challenge by streamlining the permitting process for data centers, which are essential for training AI models. Removing bureaucratic hurdles could speed up the infrastructure development needed to support AGI research and development in the US.

The call for greater government involvement in AI research is not unique to the USCC. Last week, OpenAI, the company behind ChatGPT, also advocated for increased government funding for AI initiatives. OpenAI released a proposed blueprint for US AI strategy, urging more financial support and clear policy direction to foster innovation and ensure that AI development remains aligned with public interest and ethical standards.

The USCC, established by Congress in 2000, has been instrumental in advising lawmakers on US-China relations. Known for its hawkish stance on China, the commission provides annual recommendations on economic and security issues related to the growing competition between the two nations. This year’s report underscores the importance of advancing AI technologies and keeping pace with China’s rapid progress. The commission’s proposals also touch on other areas of concern, such as trade and national security.

In addition to the AI initiative, the USCC’s annual report includes several other recommendations to address US-China tensions. One key proposal is to repeal the de minimis trade exemption, which allows Chinese goods valued under $800 to bypass tariffs with minimal paperwork and inspection. The commission argues that this exemption creates a loophole that enables Chinese products to enter the US market without proper scrutiny, raising national security and consumer safety concerns.

Kimberly Glas, a commissioner with the USCC, highlighted the urgency of eliminating de minimis treatment for e-commerce goods. She pointed to the enormous volume of packages entering the US daily, which makes it difficult for Customs and Border Protection (CBP) to effectively inspect and prevent dangerous products from entering the country. “Just to give you a sense of the trajectory, it’s four million boxes a day, estimated to be 1.4 billion de minimis shipments over this past year, according to CBP,” Glas said. “It is impossible to police what is in those boxes.”

The de minimis rule, introduced in the 1930s to facilitate importing small goods like trinkets, is now being exploited in the e-commerce era. Glas explained that the rule has become a way for Chinese products to receive duty-free treatment with minimal scrutiny. “In the e-commerce environment, it has become a funnel for Chinese products to receive duty-free, no-scrutiny treatment,” she said. The commission believes ending this exemption would help reduce the flow of counterfeit, substandard, and potentially harmful products into the US.

Republican and Democratic lawmakers have also introduced bills to restrict de minimis treatment, particularly for shipments from China. However, bipartisan cooperation on this issue has been challenging, especially in the lead-up to the 2024 elections. The shipping industry and pro-trade groups have lobbied against such measures, arguing that it would disrupt the growing e-commerce sector and lead to higher consumer costs.

The USCC’s recommendations reflect the growing urgency surrounding US-China competition in AI and broader concerns about trade and security. With China investing heavily in AI development and rapidly advancing its technological capabilities, the US faces an increasingly complex challenge in balancing innovation with national security. The proposals in the USCC’s report call for decisive action to ensure that the US remains at the forefront of technological progress while safeguarding its interests in the face of mounting global competition.

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