Billionaire investor Mark Cuban warned the stakes couldn't be higher for the U.S. in the global competition for leadership in artificial intelligence.
In an interview on CNBC Thursday, he was asked if the federal government's prioritization of certain investments as part of an industrial policy was a mistake.
"Our military dominance, our place in the world depends on our ability to invest in AI. Period. End of story," he said. "Whoever wins AI has the best military. There's no question about it."
While private companies and the Defense Department are investing in AI, it's still not enough and even more needs to be done, Cuban added.
America's pillars of geopolitical and financial strength will depend on the outcome of the AI race.
"We cannot lose that battle, or we lose everything," he warned. "That defines our currency. It defines how we compete in the world. It defines our military. So investing in that is critical."
The comments come as Vice President Kamala Harris, whose presidential campaign has Cuban's support, has been providing more details about her economic agenda.
In a speech on Wednesday in Pittsburgh, she called for more investment in key industries like semiconductors and clean energy. Afterward, Cuban praised the speech and also highlighted AI's importance to the U.S. military.
"She talked, most importantly to me, she talked about new technologies and pushing forward AI," he told the Washington Post. "You can talk about military all you want, but if we don’t have the best AI in the universe, we’re in trouble."
Meanwhile, Silicon Valley venture capital firms are paying more attention to the emerging field of defense tech. Last month, startup incubator Y Combinator made its first investment in a weapons maker, Ares Industries, which promises to make anti-ship missiles that are 10-fold smaller and cheaper than what’s currently available.
And more established companies like data-mining software maker Palantir is becoming a mainstream investment, as more governments, militaries, and companies deploy its AI-powered platforms.
AI's impact on the military has also been flashing on former Google CEO Eric Schmidt's radar. In a commentary published last month with former Chairman of the Joint Chiefs of Staff Mark Milley, they warned that the U.S. is unprepared for wars of the future while adversaries like Russia and China are investing in new technologies.
Rather than jets, ships, and tanks, future conflicts will be dominated by autonomous weapons systems and powerful algorithms, they added.
"The country needs to reform the structure of its armed forces," Milley and Schmidt wrote. "The U.S. military needs to reform its tactics and leadership development. It needs new ways to procure equipment. It needs to buy new types of gear. And it needs to better train soldiers to operate drones and use AI."
