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Subprime AI

You are here: Home / Archives for Subprime AI

Mad Cow Disease for Chatbots (Open Thread)

by Rose Judson|  May 30, 20252:46 pm| 120 Comments

This post is in: Science & Technology, Tech News and Issues, Subprime AI

I come to the end of another surprisingly insane week of work and finally look at the news, and what do I see? Multiple stories about the sex life and/or bladder integrity of Elon Musk (also, there is apparently a Glenn Greenwald sex tape floating around the internet, so take care out there).

Let’s think about literally anything else instead.

Mad Cow Disease for Chatbots (Open Thread)
Apologies if you’ve never seen a Terminator movie. Trust me, this is funny.

There’s a story by writer Noor Al-Sibai in Futurism today about a major problem with large language models (LLMs), the jumped-up autocomplete programs we’ve collectively decided to call “AI”. In order to keep progressing, LLMs need to be fed more and more training data. But they’ve chewed through most of the publicly available/easy-to-steal data out there, so AI programmers have to find new sources. First, they tried augmenting human-generated training data with LLM-generated data, or “synthetic” data, instead. They fed the machine what it shits out, in other words.

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Mad Cow Disease for Chatbots (Open Thread)Post + Comments (120)

Just a Little More Capital, Bro, Just a Few More Billion

by Rose Judson|  December 28, 20248:15 am| 85 Comments

This post is in: Open Threads, Tech News & Issues, Subprime AI

I’m gonna make it profitable for REAL this time, bro, I swear! I realise that there are more entertaining clown shows happening at the moment, but so far during the Betwixtmas period, I’ve mostly been paying attention to the pressure building inside the GenAI bubble. Some picky bits for you all to graze on:

Yesterday, according to CNBC, OpenAI published a statement on its website with more detail about its controversial intention to transition from a non-profit organisation to a for-profit public benefit corporation (PBC) in 2025. The post admits that this transition will require “more capital than we’d imagined.”

Mmhm. (OpenAI is currently valued at $157 billion, and raised $6.6 billion in October.)

From the CNBC report:

“OpenAI expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC confirmed in September. Those numbers are increasing rapidly.

By transforming into a Delaware PBC ‘with ordinary shares of stock,’ OpenAI says it can pursue commercial operations, while separately hiring a staff for its nonprofit arm and allowing that wing to take on charitable activities in health care, education and science.

The nonprofit will have a ‘significant interest’ in the PBC ‘at a fair valuation determined by independent financial advisors,’ OpenAI wrote.”

 

Sure this seems unsustainable but keep in mind the massive losses today are positioning them for much bigger losses tomorrow.

[image or embed]

— A.R. Moxon, Bluesky Elderberry (@juliusgoat.bsky.social) December 28, 2024 at 11:47 AM

The staggering gap between incomings and outgoings isn’t the only thing at issue, obviously. OpenAI has bled top talent in recent months, with one former exec quoted in the CNBC article above saying that “safety culture and processes have taken a backseat to shiny products.” OpenAI is also embroiled in on-again, off-again lawsuits brought against it by Elon Musk, who wants to stop the company’s transition to a for-profit model. It’s also being sued by a consortium of U.S. news publishers, Canadian news publishers, the Intercept, a major Indian news agency, and the comedian Sarah Silverman, among many others. (You can see a running list here.)

But wait! There’s more.

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Just a Little More Capital, Bro, Just a Few More BillionPost + Comments (85)

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