How Google’s former CEO Eric Schmidt helped write A.I. laws in Washington without publicly disclosing investments in A.I. startups
To Poulson, Schmidt was simply given too much power over federal AI policy. “I think he had too much influence,” Poulson said. “If we believe in a democracy, we should not have a couple of tech billionaires, or, in his case, one tech billionaire, that is essentially determining US government allocation of hundreds of billions of dollars.”
The federal commission wound down its work on Oct. 1, 2021.
Four days later, on Oct. 5, Schmidt announced a new initiative called the Special Competitive Studies Project. The new entity would continue the work of the congressionally created federal commission, with many of the same goals and much of the same staff. But this would be an independent nonprofit and operate under the financing and control of Schmidt himself, not Congress or the taxpayer. The new project, he said, will “make recommendations to strengthen America’s long-term global competitiveness for a future where artificial intelligence and other emerging technologies reshape our national security, economy, and society.”
The CEO of Schmidt’s latest initiative would be the same person who had served as the executive director of the National Security Commission. More than a dozen staffers from the federal commission followed Schmidt to the new private sector project. Other people from the federal commission came over to Schmidt’s private effort, too: Vice Chair Robert Work, a former deputy secretary of defense, would serve on Schmidt’s board of advisors. Mac Thornberry, the congressman who appointed Schmidt to the federal commission in the first place, was now out of office and would also join Schmidt’s board of advisors.
They set up new office space just down the road from the federal commission’s headquarters in Crystal City, VA, and began to build on their work at the federal commission.
The new Special Competitive Studies Project issued its first report on Sept. 12. The authors wrote, “Our new project is privately funded, but it remains publicly minded and staunchly nonpartisan in believing technology, rivalry, competition and organization remain enduring themes for national focus.”
The report calls for the creation of a new government entity that would be responsible for organizing the government-private sector nexus. That new organization, the report says, could be based on the roles played by the National Economic Council or the National Security Council inside the White House.
It is not clear if the Project will disclose Schmidt’s personal holdings in AI companies. So far, it has not.
Asked if Schmidt’s AI investments will be disclosed by the Project in the future, a person close to Schmidt said, “SCSP is organized as a charitable entity, and has no relationship to any personal investment activities of Dr. Schmidt.” The person also said the project is a not-for-profit research entity that will provide public reports and recommendations. “It openly discloses that it is solely funded by the Eric and Wendy Schmidt Fund for Strategic Innovation.”
In a way, Schmidt’s approach to Washington is the culmination of a decade or more as a power player in Washington. Early on, he professed shock at the degree to which industry influenced policy and legislation in Washington. But since then, his work on AI suggests he has embraced that fact of life in the capital.