Washington watches as West Coast nerds fight for future of AI

The sudden ouster of CEO Sam Altman from OpenAI, the hottest startup in artificial intelligence, by the organization’s board has roiled the tech world.

In doing so, it has also highlighted the extraordinary power that the culture and characters of Silicon Valley consumer-tech startups now wield over the development of strategically vital technologies.

Washington, a town of over-socialized strivers answering to octogenarian bosses, is watching from the sidelines. Young, eccentric techies are fighting for control of the future while operating on a model largely inspired by Mark Zuckerberg’s success turning...