I'll put it like this: Alex Karp isn't necessarily someone to believe in, but we can't ignore that what he's saying holds truth.
These Silicon Valley guys are starting to act like they want to write their own rules. For those who don't know what I'm talking about, here's the interview: ALex karp interview.
So, what Alex is saying is that he understands what it actually takes to conduct government and business contracts something the AI frontier labs are now taking on and executing. His point is that they don't fully grasp the ins and outs of handling AI contracts for critical enterprises and governments, including military contracts, deep government research, war contracts, and the like.
I know we're all thinking: maybe this is just Alex's game to win contracts because he feels like he's losing. Yes, that might be true, but he's using factual arguments. What he's saying, at some point, is true.
First, he called their business a scam. As much as he may be deceiving us this time, I'll allow myself to be deceived, because these business models seem insane to me. They overhype their products, charge insanely high prices, and deliver little to no real value. But again, we don't really have anything against them because all they've said is, "This model is even dangerous." Take, for example, how much Fable consumes and what value it gives none, correct me if I'm wrong. I don't see any real value. All it does is switch to Opus 4 or whatever decimals they add. For enterprises, this is even crazier: you're lying to them, charging insane prices, and in return, you get their intellectual property. The same applies to regular people you charge them insane amounts and then take their data, how they think, and what they think about. In my opinion, that's not ethical.
Alex also pointed out in that interview that you can't just hand over sensitive contracts like military or war contracts to these Silicon Valley guys who've only been around for a few years. You can't take people who think like that, who are so detached from the real world, and give them your most sensitive data. Me too I don't get it when I see governments making sensitive deals with these kinds of people, it feels like outsourcing sovereignty on an insane level. As a citizen of a country, I don't understand when my government goes out and says, "Ladies and gentlemen, an achievement, we closed a deal with this Silicon Valley guy who thinks he has some prophesy , and we're going to give him money and our data, and he'll give us tokens and charge us for using them."
I believe some businesses have already started facing the consequences of these business models from Silicon Valley, but they're not willing to say anything because they think others might be getting good ROI and maybe it's just their own problem or they don't want to admit they made a mistake. They believe that at some point, things will get back in line. Maybe.
Look, my point here is: AI is a great technology, but the people running these frontier labs are killing it. They're making it hard for people to actually build something meaningful with AI. These shady business models and crazy psychological marketing tricks are making us worried and pushing us to use AI out of fear, rather than as the tool it should be. We need someone else to take over this technology and turn it into something truly valuable for everyone.
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