This may actually be one of those things where it turns out to be worth it (for them anyway), if they get some major technological advancements out of it.
There are so many other things in the world that are way more wasteful and way more pointless.
Or you get an overlord ai that isn't dependent on the larger power grid so it doesn't have any reason not to launch the nukes. You know they're going to harden these things.
Yes. It's just a joke about Skynet and AM. People are really quick to jump to dogpile without realizing it's a joke. The idea wasn't that it would use its reactor as a weapon, but it would access the military's weapons. Without needing outside power, it have no reason not to.
You misread that comment, they are saying that the power generation will be detached from the grid if they go this way and then if the AI gains control of nuclear bombs (separate thing from what the article is about) like shown in fictional stories they'll not have a reason to not use it as they won't be afraid of affecting their own power generation
Allocative efficiency in economics just means that you can't make someone better off without making someone else worse off.
An efficient allocation isn't necessarily equitable.
And the first welfare theorem of economics only claims that the market will produce an allocatively efficient result if its complete, in perfect competition, and everyone has complete information. Which has the obvious problems of those preconditions not matching reality.