The AI-led boom in investment and growth has substantially increased the exposure of the economy and the stock market to a single concentrated source of tail risk.
The use of financing from technology suppliers such as Nvidia to support investments in AI infrastructure substantially increases the financial risks associated with the AI-led boom.
Defense procurement that invites potential suppliers to propose technologies with potential military benefits rather than requiring them to meet tightly specified government requirements would generate substantially stronger military capabilities.
Defense procurement that enables start-up firms and other new entrants to participate (either as sole contractors or jointly with others, including incumbents) would generate substantially more innovation in military capabilities than directing spending predominantly towards incumbent contractors.
