Group items tagged

The Musk messages also reveal how some of the richest and most powerful men in the world treat actual billions of dollars with a level of care more appropriate for a 3-year-old tossing around Monopoly cash.

Oracle’s founder, Larry Ellison, essentially writes Musk a blank check over text, pledging, “A billion … or whatever you recommend.” The venture capitalist Marc Andreessen unsolicitedly offers Musk “$250M with no additional work required.” And Michael Grimes, a top investment banker at Morgan Stanley, proposes a meeting with Bankman-Fried as a way to “get us $5bn equity in an hour.”

The blitheness is the point. It is a total power move to talk about getting “$5bn in equity in an hour” the same way we mere mortals talk about Venmo-ing a friend $15 for lunch. The texts make it clear that these men are fundamentally alienated from the rest of the world by their wealth.

“These are absolutely not normal people with a normal understanding of the world.”

The men in Musk’s phone also appear wildly confident in their own abilities and those of their peers. Mathias Döpfner, the CEO of the media conglomerate Axel Springer, infamously texted Musk his bullet-pointed plan for Twitter, which began with the line item “1.),, Solve Free Speech.”

They teach us what happens when a small group of people with too much money come to view that money not just as a reward for success, but as its own form of merit—a specious achievement that totally alienates them from reality.

Ultimately, Exhibit H documents the loneliness and isolation of being the world’s richest man. As told via the texts, the seed of Musk’s Twitter purchase was planted by sycophants deferential to the billionaire who will never give him hard, truthful advice, because they wish to stay close to him.

the one time he receives actual, honest feedback from Agrawal, Musk behaves aggressively and impulsively, sealing his fate.

That has made him the most popular influencer among American Gen-Zers, according to a twice-yearly survey of 14,500 of the country’s teenage boys and girls by Piper Sandler, a finance company that researches consumer data. Teachers have reported boys as young as 11 praising and emulating him.

This is May 2024: Humanity is in the early stages of a standoff with generative AI, which offers methods through which visual art, writing, music, and computer code can be created by a machine in seconds with the simplest of prompts

Most of us are still in the sizing-up phase for generative AI, staring warily at a technology that’s been hyped as world-changing and job-disrupting (even, some proponents argue, potentially civilization-ending), and been foisted on the public in a very short period of time. It’s a weird, exhausting, exciting, even tense moment. Enter: THE CRUSHER.

There is about a zero percent chance that the company did not understand the optics of releasing this ad at this moment. Apple is among the most sophisticated and moneyed corporations in all the world.

this time, it’s hard to like what the company is showing us. People are angry. One commenter on X called the ad “heartbreaking.

Although watching things explode might be fun, it’s less fun when a multitrillion-dollar tech corporation is the one destroying tools, instruments, and other objects of human expression and creativity.

Apple is a great technology company, but it is a legendary marketer. Its ads, its slickly produced keynotes, and even its retail stores succeed because they offer a vision of the company’s products as tools that give us, the consumers, power.

The third-order annoyance is in the genre. Apple has essentially aped a popular format of “crushing” videos on TikTok, wherein hydraulic presses are employed to obliterate everyday objects for the pleasure of idle scrollers.

It’s unclear whether some of the ad might have been created with CGI, but Apple could easily round up tens of thousands of dollars of expensive equipment and destroy it all on a whim. However small, the ad is a symbol of the company’s dominance.

The iPad was one of Steve Jobs’s final products, one he believed could become as popular and perhaps as transformative as cars. That vision hasn’t panned out. The iPad hasn’t killed books, televisions, or even the iPhone

The iPad is, potentially, a creative tool. It’s also an expensive luxury device whose cheaper iterations, at least, are vessels for letting your kid watch Cocomelon so they don’t melt down in public, reading self-help books on a plane, or opting for more pixels and better resolution whilst consuming content on the toilet.

Odds are, people aren’t really furious at Apple on behalf of the trumpeters—they’re mad because the ad says something about the balance of power

it is easy to be aghast at the idea that AI will wipe out human creativity with cheap synthetic waste.

The fundamental flaw of Apple’s commercial is that it is a display of force that reminds us about this sleight of hand. We are not the powerful entity in this relationship. The creative potential we feel when we pick up one of their shiny devices is actually on loan. At the end of the day, it belongs to Apple, the destroyer.

But the legal wrangling to just get the courts to treat crypto as a set of speculative instruments regulated under securities law made the law moot

In May of 2022, a year after Gensler began trying to do something about Terra/Luna, Kwon’s scheme blew up. In a comically-too-late-to-matter gesture, an appeals court then said that the SEC had the right to compel information from Kwon’s now-bankrupt scheme. It is absolute lunacy that well-settled law, like the ability for the SEC to investigate those in the securities business, is now being re-litigated.

many crypto ‘enthusiasts’ watching Gensler discuss regulation with his predecessor “called for their incarceration or worse.”

it wasn’t just the courts who were an impediment. Gensler wasn’t the only cop on the beat. Other regulators, like those at the Commodities Futures Trading Commission, the Federal Reserve, or the Office of Comptroller of the Currency, not only refused to take action, but actively defended their regulatory turf against an attempt from the SEC to stop the scams.

Behind this was the fist of political power. Everyone saw the incentives the Senate laid down when every single Republican, plus a smattering of Democrats, defeated the nomination of crypto-skeptic Saule Omarova in becoming the powerful bank regulator at the Comptroller of the Currency

Instead of strong figures like Omarova, we had a weakling acting Comptroller Michael Hsu at the OCC, put there by the excessively cautious Treasury Secretary Janet Yellen. Hsu refused to stop bank interactions with crypto or fintech because, as he told Congress in 2021, “These trends cannot be stopped.”

It’s not just these regulators; everyone wanted a piece of the bureaucratic pie. In March of 2022, before it all unraveled, the Biden administration issued an executive order on crypto. In it, Biden said that virtually every single government agency would have a hand in the space.

That’s… insane. If everyone’s in charge, no one is.

And behind all of these fights was the money and political prestige of some most powerful people in Silicon Valley, who were funding a large political fight to write the rules for crypto, with everyone from former Treasury Secretary Larry Summers to former SEC Chair Mary Jo White on the payroll.

(Even now, even after it was all revealed as a Ponzi scheme, Congress is still trying to write rules favorable to the industry. It’s like, guys, stop it. There’s no more bribe money!)

Moreover, the institution Gensler took over was deeply weakened. Since the Reagan administration, wave after wave of political leader at the SEC has gutted the place and dumbed down the enforcers. Courts have tied up the commission in knots, and Congress has defanged it

Under Trump crypto exploded, because his SEC chair Jay Clayton had no real policy on crypto (and then immediately went into the industry after leaving.) The SEC was so dormant that when Gensler came into office, some senior lawyers actually revolted over his attempt to make them do work.

In other words, the regulators were tied up in the courts, they were against an immensely powerful set of venture capitalists who have poured money into Congress and D.C., they had feeble legal levers, and they had to deal with ‘crypto enthusiasts' who thought they should be jailed or harmed for trying to impose basic rules around market manipulation.

The bottom line is, Gensler is just one regulator, up against a lot of massed power, money, and bad institutional habits. And we as a society simply made the choice through our elected leaders to have little meaningful law enforcement in financial markets, which first became blindingly obvious in 2008 during the financial crisis, and then became comical ten years later when a sector whose only real use cases were money laundering

, Ponzi scheming or buying drugs on the internet, managed to rack up enough political power to bring Tony Blair and Bill Clinton to a conference held in a tax haven billed as ‘the future.’

It took a few years, but New Dealers finally implemented a workable set of securities rules, with the courts agreeing on basic definitions of what was a security. By the 1950s, SEC investigators could raise an eyebrow and change market behavior, and the amount of cheating in finance had dropped dramatically.

By 1935, the New Dealers had set up a new agency, the Securities and Exchange Commission, and cleaned out the FTC. Yet there was still immense concern that Roosevelt had not been able to tame Wall Street. The Supreme Court didn’t really ratify the SEC as a constitutional body until 1938, and nearly struck it down in 1935 when a conservative Supreme Court made it harder for the SEC to investigate cases.

Institutional change, in other words, takes time.

It’s a lesson to remember as we watch the crypto space melt down, with ex-billionaire Sam Bankman-Fried

It’s not like perfidy in crypto was some hidden secret. At the top of the market, back in December 2021, I wrote a piece very explicitly saying that crypto was a set of Ponzi schemes. It went viral, and I got a huge amount of hate mail from crypto types

one of the more bizarre aspects of the crypto meltdown is the deep anger not just at those who perpetrated it, but at those who were trying to stop the scam from going on. For instance, here’s crypto exchange Coinbase CEO Brian Armstrong, who just a year ago was fighting regulators vehemently, blaming the cops for allowing gambling in the casino he helps run.

FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.

The basic driver is this: “Europe has an aging population that values its free time and social benefits over work and productivity. (This reduces labor force participation, innovation potential, and the economic growth of the continent.)

The eurozone economy grew about 6% over the past 15 years, measured in dollars, compared with 82% for the US, according to International Monetary Fund data. That has left the average EU country poorer per head than every US state except Idaho and Mississippi

If the current trend continues, by 2035 the gap between economic output per capita in the US and EU will be as large as that between Japan and Ecuador today

even in Smith’s figures, there is no Northern European economy that outperforms the US.

The US economy has grown 82% in fifteen years! Barring anything more than a mild recession, that means that we can expect the US economy to more than double by the time we hit 20 years from 2008. Isn’t that wonderful?

It’s not just a case of doubling the overall size of the economy. The increase in wealth has been widely distributed.

I was struck by a calculation by George Washington University’s Stephen Rose that he describes at a center-left newsletter called The Liberal Patriot

Deciding what is “middle class” versus “lower middle class” versus “upper middle class” is difficult, and every analysis sets up different cutoffs between these categories. But Rose sets a reasonable level, describing “upper middle class” as an income between $100,000 and $350,000

Using this measure, there was real growth in every rung of the economic ladder over the period from 1979 to 2019, with each ascending step having slightly higher percentage gain….

In brief, economic growth from 1979 to 2019 led more of the population to move up to higher social classes. As Table 1 shows, the bottom two categories—poor and near-poor plus lower middle class—went from a combined 49 percent to 29 percent

The size of the [core middle class] also declined, down from 39 percent to 31 percent over these years

These declines manifest themselves in a massive—and massively under-covered—growth of the [upper middle class], spiking from 13 percent in 1979 to 37 percent in 2019.

America has always thought of itself as a middle-class country. But we are rapidly becoming an upper-middle-class country

This is now the largest category, and at the rate we’re going, it will soon be an outright majority.

upper-middle-class people can afford more welfare-state spending, and they also have more access to education and, frankly, the luxury of agonizing over something other than our pocketbooks. It has been a long time since most Americans were concerned about how to put a roof over our heads, so we have moved on from “kitchen table” issues to concerns about values and status and self-image.

in this context, the Old Left welfare-state programs look, not merely unnecessary, but callous and cruel

the incentives created by welfare programs discourage work for the poor. But in a growing and thriving upper-middle-class country, this looks like a way to create a permanent underclass who are kept in poverty so we can congratulate ourselves on our compassion and generosity

some of this may also explain the right’s belligerent opposition to immigration. If we are becoming an upper-middle-class country, perhaps we are taking on some of the attitudes of a gated community that wants to keep out the riff-raff.

Researchers call this effect “the liar’s dividend,” and politicians have already tried to cast off unfavorable clips as AI-generated: Last month, Donald Trump falsely claimed that an attack ad had used AI to make him look bad.

“Deepfake” could become the “fake news” of 2024, an infrequent but genuine phenomenon that gets co-opted as a means of discrediting the truth

Steve Bannon’s infamous assertion that the way to discredit the media is to “flood the zone with shit.”

AI is less likely to create new dynamics than to amplify existing ones. Presidential campaigns, with their bottomless coffers and sprawling staff, have long had the ability to target specific groups of voters with tailored messaging

They might have thousands of data points about who you are, obtained by gathering information from public records, social-media profiles, and commercial brokers

“It is now so cheap to engage in this mass personalization,” Laura Edelson, a computer-science professor at Northeastern University who studies misinformation and disinformation, told me. “It’s going to make this content easier to create, cheaper to create, and put more communities within the reach of it.”

That sheer ease could overwhelm democracies’ already-vulnerable election infrastructure. Local- and state-election workers have been under attack since 2020, and AI could make things worse.

Those officials have also expressed the worry, he said, that generative AI will turbocharge the harassment they face, by making the act of writing and sending hate mail virtually effortless. (The consequences may be particularly severe for women.)

past attacks—most notably the Russian hack of John Podesta’s email, in 2016—have wrought utter havoc. But now pretty much anyone—whatever language they speak and whatever their writing ability—can send out hundreds of phishing emails in fluent English prose. “The cybersecurity implications of AI for elections and electoral integrity probably aren’t getting nearly the focus that they should,”

Just last week, AI-generated audio surfaced of one Harlem politician criticizing another. New York City has perhaps the most robust local-news ecosystem of any city in America, but elsewhere, in communities without the media scrutiny and fact-checking apparatuses that exist at the national level, audio like this could cause greater chaos.

In countries that speak languages with less online text for LLMs to gobble up, AI tools may be less sophisticated. But those same countries are likely the ones where tech platforms will pay the least attention to the spread of deepfakes and other disinformation, Edelson told me. India, Russia, the U.S., the EU—this is where platforms will focus. “Everything else”—Namibia, Uzbekistan, Uruguay—“is going to be an afterthought,”

Most of us tend to fret about the potential fake video that deceives half of the nation, not about the flood of FOIA requests already burying election officials. If there is a cost to that way of thinking, the world may pay it this year at the polls.

Climate change isn’t the only problem. Cocoa crops in Côte d’Ivoire and Ghana, where 60 percent of the world’s cocoa come from, may already be in “structural decline,” Debenham said, citing disease, aging cocoa trees, and illegal gold mining on farmland.

ore important, the farmers who tend to the crops can’t afford to invest in their farms to increase their yields and bolster resilience against climate change. The bleak outlook for cocoa farmers threatens to doom cocoa-growing in the region altogether. In Ghana, the average cocoa farmer is close to 50 years old. A new generation of farmers is needed to maintain the cocoa supply, but young people may just walk away from the industry.

Newer chocolate alternatives may provide more satisfying counterfeits. Win-Win isn’t the only start-up producing cocoa-free chocolate, which is similar in concept to animal-free meat. The company uses plant ingredients to emulate the flavor and texture of chocolate—as do its competitors Foreverland and Voyage Foods. Another firm, California Cultured, grows actual cacao cells in giant steel tanks.

Cocoa shortages will affect all kinds of chocolate, but mass-produced sweets may change beyond just the prices. The erratic temperatures brought about by climate change could change the flavor of beans, depending on where they are grown

Variability is a concern for commercial chocolate makers, who need to maintain consistent flavors across their products. They may counteract discrepancies among different batches of beans by combining them, then roasting them at a higher temperature,

Commercial chocolate makers may also tweak their recipes to amp up or mimic chocolate flavors without using more cocoa. These candies contain relatively little cacao to begin with; only 10 percent of a product’s weight must be cocoa in order to qualify as chocolate in the eyes of the FDA.

No matter how you look at it, the future of cocoa doesn’t look good. With less cocoa available all around, chocolate may become more expensive. For high-end chocolate brands, whose products use lots of cocoa, the recent price hikes are reportedly an existential threat.

So much of the appeal of cheap chocolate is that it’s always been there—whether in the form of a Hershey’s Kiss, Oreo cookies, a bowl of Cocoa Puffs, or the shell of a fondant-filled egg. “You grow up with those tastes. It’s hard to fathom how pervasive it has been,” Carodenuto said. Chocolate lovers have weathered minor tweaks to these candies over the years, but the shifts happening today may be less tolerable—or at the very least more noticeable. The change that has been hardest to ignore is that cheap chocolate is no longer that cheap.

Altman and OpenAI have been candid on this front. The end goal of OpenAI has always been to build a so-called artificial general intelligence, or AGI, that would, in their imagining, alter the course of human history forever, ushering in an unthinkable revolution of productivity and prosperity—a utopian world where jobs disappear, replaced by some form of universal basic income, and humanity experiences quantum leaps in science and medicine. (Or, the machines cause life on Earth as we know it to end.) The stakes, in this hypothetical, are unimaginably high—all the more reason for OpenAI to accelerate progress by any means necessary.

As with other grand projects of the 20th century, the voting public had a voice in both the aims and the execution of the Apollo missions. Altman made it clear that we’re no longer in that world. Rather than waiting around for it to return, or devoting his energies to making sure that it does, he is going full throttle forward in our present reality.

In response to one question about AGI rendering jobs obsolete, Jeff Wu, an engineer for the company, confessed, “It’s kind of deeply unfair that, you know, a group of people can just build AI and take everyone’s jobs away, and in some sense, there’s nothing you can do to stop them right now.” He added, “I don’t know. Raise awareness, get governments to care, get other people to care. Yeah. Or join us and have one of the few remaining jobs. I don’t know; it’s rough.”

Part of Altman’s reasoning, he told Andersen, is that AI development is a geopolitical race against autocracies like China. “If you are a person of a liberal-democratic country, it is better for you to cheer on the success of OpenAI” rather than that of “authoritarian governments,” he said. He noted that, in an ideal world, AI should be a product of nations. But in this world, Altman seems to view his company as akin to its own nation-state.

Wu’s colleague Daniel Kokotajlo jumped in with the justification. “To add to that,” he said, “AGI is going to create tremendous wealth. And if that wealth is distributed—even if it’s not equitably distributed, but the closer it is to equitable distribution, it’s going to make everyone incredibly wealthy.”

This is the unvarnished logic of OpenAI. It is cold, rationalist, and paternalistic. That such a small group of people should be anointed to build a civilization-changing technology is inherently unfair, they note. And yet they will carry on because they have both a vision for the future and the means to try to bring it to fruition

Wu’s proposition, which he offers with a resigned shrug in the video, is telling: You can try to fight this, but you can’t stop it. Your best bet is to get on board.