Economic value does not arise simply because information exists. AI models do not become valuable merely because vast quantities of data are available. Their value arises from the creative and highly uncertain process of transforming that information into useful technologies. Attempting to socialize those entrepreneurial returns mistakes the raw material of innovation for the innovation itself.

While wind and solar technologies will likely play some role in future generation portfolios, policymakers and market participants should resist efforts to force hyperscalers into narrowly prescribed energy strategies that may prove poorly suited for the unique reliability demands of AI infrastructure.

Mises central insight was that markets are governed not by bureaucrats, but by consumers. Producers succeed only by satisfying the preferences of the people they serve. In Human Action, Mises likened the consumer to the captain of a ship: 'The captain is the consumer. Neither the entrepreneurs nor the farmers nor the capitalists determine what has to be produced. The consumers do that.' AI is no exception.

In a market process, coordination emerges from many actors testing different plans, correcting errors, and responding to price signals, customer demand, and competitive pressure. What looks like coordination is actually the emergent result of decentralized adaptation. By contrast, a politically salient term sheet invites firms to cluster around what is legible to Washington.

The real issue is not which level of government should regulate AI, but whether government institutions possess the knowledge, incentives, and institutional capacity necessary to regulate a rapidly evolving technology in the first place.