Ex-Google CEO Eric Schmidt calls OpenAI and Anthropic modern colonial trading companies
- Who
- Niall Ferguson, Lisa Klaassen, and Eric Schmidt
- What
- argued that US and Chinese AI empires create geopolitical dependencies and face an imperial trilemma
- Quote
High debt, domestic resistance, and a potential war over Taiwan threaten both powers, argue historian Niall Ferguson, researcher Lisa Klaassen, and former Google CEO Eric Schmidt .
What happened
Eric Schmidt, Niall Ferguson, and Lisa Klaassen argue in Foreign Affairs that US and Chinese AI expansion resembles empire building, comparing OpenAI and Anthropic to colonial trading companies. They contend that access to energy, minerals, chips, and capital determines participation, while debt burdens constrain both powers. They identify Taiwan’s chip supply chain as the greatest vulnerability and propose an AI détente with limits on capabilities for cyberattacks and biodesign.
Read next
See the full storyFerguson, Klaassen, and Schmidt Warn US-China AI Expansion Creates Imperial DependenciesThe story so far
Niall Ferguson, Lisa Klaassen, and Eric Schmidt argued in Foreign Affairs that US and Chinese AI expansion is creating geopolitical dependencies resembling empires, and proposed an AI détente that would limit capabilities for cyberattacks and biodesign. The authors compared OpenAI and Anthropic to colonial trading companies and argued that access to energy, minerals, chips, and capital determines who can participate in AI development. They said both powers face an “imperial trilemma” involving high debt, domestic resistance, and the threat of war over Taiwan. They identified Taiwan’s chip supply chain as the greatest vulnerability in this competition.
Keep up with AI, one email a day
Model releases, price changes and compute developments, with original sources. Free, confirmed by email, and easy to unsubscribe. Read a past issue · 2026-10-25
