"Whoever wins AI has the best military" — When Shark Tank star Mark Cuban explained that AI investment is vital for economic and defense strength

Shark Tank investor Mark Cuban emphasized the role of artificial intelligence (AI) in maintaining military and economic superiority during a CNBC Squawk Box interview on September 26, 2024. When asked about industrial policy and government investment in strategic industries, Cuban pointed out that AI is a determining aspect of global power. He said:

"Whoever wins AI has the best military, there's no question about it."

Cuban explained that investing in AI is essential for national security, economic stability, and preserving the value of the U.S. dollar. His statement highlighted that the Department of Defense and private industries are investing in AI, yet more needs to be done so that the U.S. remains competitive.

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Shark Tank's Mark Cuban on AI: The key to military and economic dominance

AI's role in military strength and national security

The Shark Tank investor clarified that AI is a base technology that impacts different sectors, including defense. He highlighted that military superiority directly depends on advancements in AI, and investing in technology is imperative for security. Cuban added:

"Our military dominance, our place in the world depends on our ability to invest in AI, period, end of story."

Furthermore, he cautioned that if the U.S. lags in AI, it would not only affect military capabilities but also national security policy.

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AI investment and economic impact

Beyond military applications, Cuban linked AI investment to economic strength, particularly in manufacturing and technology. He pointed out that AI has a direct influence on the value of the U.S. dollar and global economic competition. The Shark Tank investor noted:

"It defines how we compete in the world, it defines our military, so investing in that is critical."

Cuban also addressed industrial policy, comparing various economic strategies. He cited government subsidies for AI and semiconductor production, including investment in chip manufacturing. Referring to Taiwan Semiconductor Manufacturing Company (TSMC), he discussed the importance of cutting-edge chip production, stating:

"TSMC is making what, 5-millimeter, 3-nanometer, whatever it is, chips already, and that's needed, that's critical for U.S. security."

His remarks show continuous efforts at cutting down dependency on overseas semiconductor manufacturing, one of the core challenges of AI infrastructure. The Biden administration's CHIPS Act, which offers subsidies to domestic semiconductor manufacturing, supports Cuban's point that AI and supporting industries need to be heavily funded to be competitive worldwide.

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AI, trade policies, and global competition

Mark Cuban also discussed how AI investment interacts with trade policies and global market competition. He addressed concerns over tariffs and their potential impact on U.S. companies versus foreign competitors. The Shark Tank investor noted:

"Donald Trump is trying to come in with a hammer and say, 'You're the nail, I'm going to hit you with a 200% tariff.' Kamala Harris is saying, 'I'm going to give you incentives to manufacture more.' Which do you think is going to work better with companies?"

His remarks suggested that AI and manufacturing policies should be approached strategically to strengthen domestic industries rather than imposing heavy tariffs that could affect competitiveness. Cuban highlighted previous trade policies and their effects, noting:

"When you put a 200% tariff on John Deere and only a 10 or 20% tariff on their Chinese competitors, their Chinese competitors are now less expensive than John Deere.

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