Hello, Reader.
The newest face of America is emerging from the “ghosts of industries past.”
Throughout the so-called Rust Belt states of the Upper Midwest (which include Illinois, Indiana, and Michigan, to name a few), vibrant new high-tech industries – including AI – are emerging from the crumbling foundations of ancient ones.
Partly, the Rust Belt’s revitalization is taking place organically, due to basic economic considerations like the cost of land, labor, and transportation.
However, the long, meddlesome arm of government is also playing a role.
And this representative case study shows just how influential the government can be, especially as the AI Wars rage on…
A Semiconductor Case Study
Back in 2022, a small, specialist semiconductor chip company planned to build a semiconductor production facility in the Midwest.
To finance its ambitious project, the AI company applied for a $1.8-billion federal grant under the federal government’s CHIPS Act.
To better understand how this government money might splash down in this part of the new Silicon Heartland, let’s take a look at a few key government events that influenced this semiconductor company’s story…
The Government’s Long Arm
May 27, 2020 – Indiana’s Republican Senator Todd Young and New York’s Democrat Senator Chuck Schumer unveiled their co-authored Endless Frontier Act. The bill was the precursor to the CHIPS Act.
Jun. 8, 2021 – The Endless Frontier Act morphed into the U.S. Innovation and Competition Act of 2021.
Jul. 28, 2022 – Congress passed the CHIPS Act.
Aug. 9, 2022 – Biden signed the CHIPS Act into law.
Commenting on this landmark legislation, Indiana’s Senator Young remarked…
Today, America goes on offense against the Chinese Communist Party. We have a national security imperative to ensure we don’t fall behind China in technological innovation, and getting this legislation enacted into law will help ensure America’s global leadership role in science and technology. The Chinese Communist Party actively lobbied against this legislation because they know this bill is bad for China and good for the United States. History will show that by enacting this legislation into law, we are confronting the challenges of today and building a more prosperous and secure tomorrow for all Americans.
Aug. 10, 2023 – Secretary of Commerce Gina Raimondo announced, “We will start to give out the money later this year. We’re pushing the team to go fast – but even more importantly, we want them to get it right.”
The waiting game continues, but the path ahead seems quite clear: Government funding is about to pour into the heart of the heartland.
And this could have a major impact on which AI companies come out on top.
How to Win in the AI Wars
Additionally, I believe the U.S. government is going to basically handpick the top winners of the “AI Wars of 2024”, thanks to a critical deadline to Federal Law 117-167 on Feb. 1.
In short, Congress is set to bring in new regulation, laws, and funding to the $15.7 trillion AI industry here in America.
It’s going to have vast ramifications for nearly every aspect of our economy…
This new law has been called a game-changer for a reason.
Because of it, I believe there are going to be winners and losers with AI in 2024.
So, if you are thinking about buying any AI stocks, you need to see this urgent warning.
Legendary investors like Bill Ackman, Warren Buffett, and Elon Musk have already invested billions to prepare for the critical Feb. 1 deadline.
If you currently own shares of any AI stocks, you’re going to want to hear about this major new development. I believe the decisions you make in the next few days could be what makes or breaks your financial success in 2024…
And I want to help you prepare because the stakes couldn’t be any higher.
That’s why I detailed how to prepare yourself for the AI wars on Tuesday’s 2024 AI Wars Summit.
For those who were unable to make this event, a replay is available here for your viewing.
Regards,
Eric
