I've been reading Chip War and it seems like original funding for chip design was for the Space Race and for guided missiles - so basically most of Silicon Valley was started / funded by military all along

Before chips it was radio and radars. The Klystron was invented at Stanford. Lockheed Martin Space and Raytheon have locations in Silicon Valley.

And ENIAC and ARPANET... what's interesting is how much of this is not capitalism but instead state funded and directed. I fear we're also seeing SOTA AI captured by the state. I am grateful for Chinese open models and a multi-polar world, especially given the egregious ethical violations the US has perpetrated very consistently since its formation.

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