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Richard Holden

Labor must resist the temptation to build sovereign AI

The idea that the Australian government will compete with OpenAI, Google, Meta, Amazon, xAI or Anthropic in the global race is flat out delusional.

I keep thinking about a scene from the movie The Social Network. Facebook founders Mark Zuckerberg and Eduardo Saverin meet serial entrepreneur Sean Parker (of Napster infamy and played by Justin Timberlake) at a New York restaurant.

Saverin asks Parker to “settle an argument” about whether it’s “time to monetise the site”. Parker cautions against contaminating Facebook with ads, observing: “You don’t even know what the thing is yet, how big it can get, how far it can go.”

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is scientia professor of economics at UNSW Business School. Connect with Richard on Twitter.

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    Original URL: https://www.afr.com/policy/economy/labor-must-resist-the-temptation-to-build-sovereign-ai-20250903-p5ms97