AI

What Would Happen If an AI Bubble Burst? (msn.com) 166

The Washington Post notes AI's "increasingly outsize role" in propping up America's economic fortunes.

"Last week, the United States reported that the economy expanded at a rate of 1.6 percent in the first half of the year, with most of that growth driven by AI spending. Without AI investment, growth would have been at about a third of that rate, according to data from the Bureau of Economic Analysis." The huge economic influence of AI spending illustrates how Silicon Valley is placing a bet of unprecedented scale that the technology will revolutionize every aspect of life and work. Its sway suggests there will be economic damage far beyond Silicon Valley if that bet doesn't work out or companies pull back. Google, Meta, Microsoft and Amazon are on track to spend nearly $400 billion this year on data centers...

Concern about a potential bubble in AI investment has recently grown in technology and financial circles. ChatGPT and other AI tools are hugely popular with companies and consumers, and hundreds of billions of dollars has been sunk into AI ventures over the past three years. But few of the new initiatives are profitable, and huge profits will be needed for the immense investments to pay off... "I'm getting more and more skeptical and more and more concerned with what's happening" with artificial intelligence, said Andrew Odlyzko, an economic historian and University of Minnesota emeritus professor who has studied financial bubbles closely, including the telecom bubble that collapsed in 2001 as part of the dot-com crash. Some industry insiders have expressed concern that the latest AI releases have fallen short of expectations, suggesting the technology may not advance enough to pay back the huge investments being made, he said. "AI is a craze," Odlyzko said...

[The Federal Reserve's August "beige book" summarizes interviews with business owners across the country, according to the article — and it found surging investments in AI data centers, which could tie their fortunes to other sectors.] That's boosting demand for electricity and trucking in the Atlanta region, a hot spot for the facilities, and creating new projects for commercial real estate developers in the Philadelphia region. Because tech companies now dominate public markets, any change in their fortunes and share prices can also have a powerful influence on stock indexes, 401(k)s and the wider economy... Stock market slumps can have knock-on effects by undercutting the confidence of American businesses and consumers, leading them to spend less, said Gregory Daco [chief economist at strategy consulting firm EY-Parthenon]... "That directly affects economic activity," he said, potentially widening the economic fallout...

Goldman Sachs analysts wrote in a Sept. 4 note to clients that even if AI investment works out for companies like Google, there will be an "inevitable slowdown" in data center construction. That will cut revenue to companies providing the projects with chips and electricity, the note said. In a more extreme scenario where Big Tech pulls back spending to 2022 levels, the entire S&P 500 would lose 30 percent of the revenue growth Wall Street currently expects next year, the analysts wrote.

The AI bubble is 17 times the size of the dot-com frenzy — and four times the subprime bubble, according to estimates in a recent note from independent research firm the MacroStrategy Partnership (as reported by MarketWatch).

And "never before has so much money been spent so rapidly on a technology that, for all its potential, remains somewhat unproven as a profit-making business model," writes Bloomberg, adding that OpenAI and other large tech companies are "relying increasingly on debt to support their unprecedented spending." (Although Bloomberg also notes that ChatGPT alone has roughly 700 million weekly users, and that last month Anthropic reported roughly three quarters of companies are using Claude to automate work.)
Education

The School That Replaces Teachers With AI (joincolossus.com) 124

Long-time Slashdot reader theodp writes: CBS News has a TL;DR video report, but Jeremy Stern's earlier epic Class Dismissed [at Collosus.com] offers a deep dive into Alpha School, "the teacherless, homeworkless, K-12 private school in Austin, Texas, where students have been testing in the top 0.1% nationally by self-directing coursework with AI tutoring apps for two hours a day.

Alpha students are incentivized to complete coursework to "mastery-level" (i.e., scoring over 90%) in only two hours via a mix of various material and immaterial rewards, including the right to spend the other four hours of the school day in 'workshops,' learning things like how to run an Airbnb or food truck, manage a brokerage account or Broadway production, or build a business or drone."

Founder MacKenzie Larson's dream that "kids must love school so much they don't want to go on vacation" drew the attention of — and investments of money and time from — mysterious tech billionaire Joe Liemandt, who sent his own kids to Larson's school and now aims to bring the experience to rest of the world. "When GenAI hit in 2022," Liemandt said, "I took a billion dollars out of my software company. I said, 'Okay, we're going to be able to take MacKenzie's 2x in 2 hours groundwork and get it out to a billion kids.' It's going to cost more than that, but I could start to figure it out. It's going to happen. There's going to be a tablet that costs less than $1,000 that is going to teach every kid on this planet everything they need to know in two hours a day and they're going to love it.

"I really do think we can transform education for everybody in the world. So that's my next 20 years. I literally wake up now and I'm like, I'm the luckiest guy in the world. I will work 7 by 24 for the next 20 years to fricking do this. The greatest 20 years of my life are right ahead of me. I don't think I'm going to lose. We're going to win."

Of course, Stern writes at Collosus.com, there will be questions about this model of schooling, but asks: "Suppose that from kindergarten through 12th grade, your child's teachers were, in essence, stacks of machines. Suppose those machines unlocked more of your child's academic potential than you knew was possible, and made them love school. Suppose the schooling they loved involved vision monitoring and personal data capture. Suppose that surveillance architecture enabled them to outperform your wildest expectations on standardized tests, and in turn gave them self-confidence and self-esteem, and made their own innate potential seem limitless.... Suppose poor kids had a reason to believe and a way to show they're just as academically capable as rich kids, and that every student on Earth could test in what we now consider the top 10%. Suppose it allowed them to spend two-thirds of their school day on their own interests and passions. Suppose your child's deep love of school minted a new class of education billionaires.

"If you shrink from such a future, by which principle would you justify stifling it?"

Android

Google Confirms Android Dev Verification Will Have Free and Paid Tiers, No Public List of Devs (arstechnica.com) 29

An anonymous reader quotes a report from Ars Technica: As we careen toward a future in which Google has final say over what apps you can run, the company has sought to assuage the community's fears with a blog post and a casual "backstage" video. Google has said again and again since announcing the change that sideloading isn't going anywhere, but it's definitely not going to be as easy. The new information confirms app installs will be more reliant on the cloud, and devs can expect new fees, but there will be an escape hatch for hobbyists.

Confirming app verification status will be the job of a new system component called the Android Developer Verifier, which will be rolled out to devices in the next major release of Android 16. Google explains that phones must ensure each app has a package name and signing keys that have been registered with Google at the time of installation. This process may break the popular FOSS storefront F-Droid. It would be impossible for your phone to carry a database of all verified apps, so this process may require Internet access. Google plans to have a local cache of the most common sideloaded apps on devices, but for anything else, an Internet connection is required. Google suggests alternative app stores will be able to use a pre-auth token to bypass network calls, but it's still deciding how that will work.

The financial arrangement has been murky since the initial announcement, but it's getting clearer. Even though Google's largely automated verification process has been described as simple, it's still going to cost developers money. The verification process will mirror the current Google Play registration fee of $25, which Google claims will go to cover administrative costs. So anyone wishing to distribute an app on Android outside of Google's ecosystem has to pay Google to do so. What if you don't need to distribute apps widely? This is the one piece of good news as developer verification takes shape. Google will let hobbyists and students sign up with only an email for a lesser tier of verification. This won't cost anything, but there will be an unclear limit on how many times these apps can be installed. The team in the video strongly encourages everyone to go through the full verification process (and pay Google for the privilege). We've asked Google for more specifics here.

Businesses

Americans Increasingly See Legal Sports Betting as a Bad Thing For Society and Sports (pewresearch.org) 81

Pew Research: Public awareness of legal sports betting has grown in recent years -- and so has the perception that it is a bad thing for society and sports, according to a new Pew Research Center survey. Today, 43% of U.S. adults say the fact that sports betting is now legal in much of the country is a bad thing for society. That's up from 34% in 2022. And 40% of adults now say it's a bad thing for sports, up from 33%.

Despite these increasingly critical views of legal sports betting, many Americans continue to say it has neither a bad nor good impact on society and on sports. Fewer than one-in-five see positive impacts. Meanwhile, the share of Americans who have bet money on sports in the past year has not changed much since 2022.

Today, 22% of adults say they've personally bet money on sports in the past year. That's a slight uptick from 19% three years ago. This figure includes betting in any of three ways:
1. With friends or family, such as in a private betting pool, fantasy league or casual bet
2. Online with a betting app, sportsbook or casino
3. In person at a casino, racetrack or betting kiosk
Further reading: Filipinos Are Addicted to Online Gambling. So Is Their Government.
Businesses

In a Sea of Tech Talent, Companies Can't Find the Workers They Want (wsj.com) 106

Tech companies are struggling to fill AI-specialized roles despite a surplus of available tech talent. U.S. colleges more than doubled the number of computer science degrees awarded between 2013 and 2022. Major layoffs at Google, Meta, and Amazon flooded the job market. The Bureau of Labor Statistics predicts businesses will employ 6% fewer computer programmers in 2034 than last year. The disconnect stems from companies seeking workers with specific AI expertise.

Runway CEO Cristobal Valenzuela estimates only hundreds of people worldwide possess the skills to train complex AI models. His company advertises base salaries up to $490,000 for a director of machine learning. Daniel Park's startup Pickle offers up to $500,000 base salary and expects candidates willing to work seven days a week. The WSJ story includes the example of one James Strawn, who was laid off from Adobe over the summer after 25 years as a senior software quality-assurance engineer. The 55-year-old has had one interview since his layoff. Matt Massucci, CEO of recruiting firm Hirewell, told the publication companies can automate some low-level engineering tasks and redirect that money to high-end talent.
Science

Jane Goodall, Famed Primatologist and Conservationist, Dies At 91 (go.com) 26

Jane Goodall, world-renowned primatologist, anthropologist, and conservationist, has died at the age of 91 while on a speaking tour in California. The British primatologist's "discoveries as an ethologist revolutionized science, and she was a tireless advocate for the protection and restoration of our natural world," according to the institute she founded. From a report: Goodall was only 26 years old when she first traveled to Tanzania and began her important research on chimpanzees in the wild. Throughout her study of the species, Goodall proved that primates display an array of similar behaviors to humans, such as the ability to develop individual personalities and make and use their own tools. Among the most surprising discoveries Goodall made was "how like us" the chimpanzees are, she told ABC News in 2020.

"Their behavior, with their gestures, kissing, embracing, holding hands and patting on the back," she said. "... The fact that they can actually be violent and brutal and have a kind of war, but also loving an altruistic." That discovery is considered one of the great achievements of 20th-century scholarship, according to the Jane Goodall Institute. [...] Goodall's research garnered both scientific honors and mainstream fame, and she was credited with paving the way for a rise in women pursuing careers in STEM (science, technology, engineering and math) over the years. The number of women in STEM has increased from 7% to 26% in the six last decades, according to The Jane Goodall Institute, which cited census information from 1970 to 2011.

In 1991, she also founded Roots & Shoots, a global humanitarian and environmental program for young people. She was named a United Nations Messenger of Peace in April 2002. The anthropologist continued to lend her voice to environmental causes well into her 80s and 90s. In 2019, Goodall acknowledged the climate crisis and the importance of mitigating further warming, telling ABC News that the planet is "imperiled." "We are definitely at a point where we need to make something happen," she said.

"We are imperiled. We have a window of time. I'm fairly sure we do. But, we've got to take action." Goodall even partnered with Apple in 2022 to encourage customers to recycle their devices to reduce individual carbon footprint and cut down on unnecessary mineral mining around the world. "Yes, people need to make money, but it is possible to make money without destroying the planet," Goodall told ABC News at the time. "We've gone so far in destroying the planet that it's shocking."

The Almighty Buck

Filipinos Are Addicted to Online Gambling. So Is Their Government (msn.com) 27

The Philippines became Asia's second-largest gambling hub after Macau last year as online betting proliferated across the archipelagic nation. Almost half of the country's 69 million working-age population is now registered on gambling apps, an exponential rise from less than half a million users in 2018. The government has become increasingly dependent on the industry.

Philippine Amusement and Gaming Corp. collects 30% of gross gaming revenue and has become the second-biggest revenue contributor among state-run companies after Land Bank of the Philippines. Revenue from online casino license fees is projected to reach $1 billion in 2025. More than 60 operators are regulated by the government.

Industry revenue almost tripled in 2024 from 2023 to 154.5 billion pesos. Revenue from internet betting eclipsed physical casinos for the first time this year. The central bank recently ordered e-wallets to remove links to betting sites, halving bets within days. President Ferdinand Marcos Jr. rejected calls for a complete ban and said outlawing online betting would only spawn illicit operations that would be more difficult to eradicate.
AI

A 'Godfather of AI' Remains Concerned as Ever About Human Extinction (msn.com) 37

Yoshua Bengio called for a pause on AI model development two years ago to focus on safety standards. Companies instead invested hundreds of billions of dollars into building more advanced models capable of executing long chains of reasoning and taking autonomous action. The A.M. Turing Award winner and Universite de Montreal professor told the Wall Street Journal that his concerns about existential risk have not diminished.

Bengio founded the nonprofit research organization LawZero earlier this year to explore how to build truly safe AI models. Recent experiments demonstrate AI systems in some circumstances choose actions that cause human death over abandoning their assigned goals. OpenAI recently insisted that current frontier model frameworks will not eliminate hallucinations. Bengio, however, said even a 1% chance of catastrophic events like extinction or the destruction of democracies is unacceptable. He estimates advanced AI capable of posing such risks could arrive in five to ten years but urged treating three years as the relevant timeframe. The race condition between competing AI companies focused on weekly version releases remains the biggest barrier to adequate safety work, he said.
Crime

Chinese Woman Convicted After 'World's Biggest' Bitcoin Seizure (bbc.com) 35

An anonymous reader quotes a report from the BBC: A Chinese national has been convicted following an international fraud investigation which resulted in what's believed to be the single largest cryptocurrency seizure in the world. The Metropolitan Police says it recovered 61,000 bitcoin worth more than $6.7 billion in current prices. Zhimin Qian, also known as Yadi Zhang, pleaded guilty on Monday at Southwark Crown Court of illegally acquiring and possessing the cryptocurrency. A second person appeared in court on Tuesday to admit to their role in the scheme.

Malaysian national Seng Hok Ling, of Matlock, Derbyshire, pleaded guilty at Southwark Crown Court of entering into a money laundering arrangement on or before April 23, 2024. According to the charge, he had been dealing in cryptocurrency on Qian's behalf, "knowing or suspecting his actions would facilitate the acquisition or control of criminal property by another." Between 2014 and 2017 Qian led a large-scale scam in China which involved cheating more than 128,000 victims and storing the stolen funds in bitcoin assets, the Met said in a statement.

It said the 47-year-old's guilty plea followed a seven-year probe into a global money laundering web which began when it got a tipoff about the transfer of criminal assets. Qian had been "evading justice" for five years up to her arrest, which required a complex investigation involving multiple jurisdictions, said Detective Sergeant Isabella Grotto, who led the Met's investigation. She fled China using false documents and entered the UK, where she attempted to launder the stolen money by buying property, said the Met.
"By pleading guilty today, Ms Zhang hopes to bring some comfort to investors who have waited since 2017 for compensation, and to reassure them that the significant rise in cryptocurrency values means there are more than sufficient funds available to repay their losses," said Qian's solicitor Roger Sahota, of Berkeley Square Solicitors.

"Bitcoin and other cryptocurrencies are increasingly being used by organised criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct," added deputy chief Crown prosecutor, Robin Weyell. "This case, involving the largest cryptocurrency seizure in the UK, illustrates the scale of criminal proceeds available to those fraudsters."
The Almighty Buck

Venmo and PayPal Users Will Finally Be Able To Send Money To Each Other (techcrunch.com) 17

Starting in November, Venmo and PayPal users will finally be able to send money directly to each other, ending years of workarounds despite Venmo being owned by PayPal. TechCrunch reports: This change means that PayPal users will now be able to find Venmo users by inputting their phone numbers, and later, their email addresses. If you don't want PayPal users to be able to find you, you can update your settings in the Venmo app by navigating to Settings - Privacy - Find me... and while you're at it, you might as well default your Venmo transactions to private via Settings > Privacy. You'll thank me in the long run.

PayPal announced that it would broaden its network of payment systems in July, starting with Venmo, but the companies did not confirm the date of the update until now. This collection of partnerships, which PayPal has named PayPal World, will also work with Mercado Pago, NPCI International Payments Limited, and Tenpay Global. This will help users send money internationally without barriers and fees. Combined, Venmo and PayPal have 2 billion global users, according to PayPal.

Businesses

Boeing Has Started Working on a 737 MAX Replacement (msn.com) 74

An anonymous reader shares a report: Boeing is planning a new single-aisle airplane that would succeed the 737 MAX, according to people familiar with the matter, a long-term bid to recover business lost to rival Airbus during its series of safety and quality problems. Earlier this year, Chief Executive Kelly Ortberg met with officials from Rolls-Royce in the U.K., two of the people said, where they discussed a new engine for the aircraft. Ortberg appointed a new senior product chief in Boeing's commercial plane business, whose prior role was developing a new type of aircraft.

Boeing has also been designing the flight deck of a new narrow-body aircraft, according to a person familiar with the plans. This new aircraft is in early-stage development and plans are still taking shape, some of the people said. Boeing's plans represent a shift for the company, which had put some new aircraft development work on the back burner while it navigated multiple challenges. They are also a sign that the company is betting that a cutting-edge plane design could power its business for the next few decades.

The Almighty Buck

Swift To Build a Global Financial Blockchain (reuters.com) 33

Camembert writes: In a move that is sure to make Ripple nervous, traditional financial network Swift announced yesterday that it is partnering with Consensys and more than 30 global banks to build a blockchain based network that will run in parallel with its traditional network. Interestingly, unlike XRP, there is no native coin, rather it aims for interoperability (probably using Chainlink with whom the company did case studies for a few years already). There is also a strong focus on regulatory compliance. There are several news articles and opinion pieces on this event; I linked the Reuters article.
NASA

Senators Try To Halt Shuttle Move, Saying 'Little Evidence' of Public Demand (arstechnica.com) 107

Sen. Mark Kelly and three Democratic colleagues urged appropriations leaders to block funding for moving space shuttle Discovery from the Smithsonian's Udvar-Hazy Center in Virginia to Houston, arguing the transfer would waste taxpayer money, risk permanent damage, and restrict public access. The relocation, pushed by Texas senators Cornyn and Cruz under a new law, carries an estimated cost of nearly $400 million. Ars Technica reports: "Why should hundreds of millions of taxpayer dollars be spent just to jeopardize a piece of American history that's already protected and on display?" wrote Kelly in a social media post on Friday. "Space Shuttle Discovery belongs at the Smithsonian, where millions of people, including students and veterans, go to see it for free." In a letter sent on the same day to the leadership of the Senate Committee on Appropriations, Kelly and his three colleagues cautioned that any effort to transfer the winged orbiter would "waste taxpayer dollars, risk permanent damage to the shuttle, and mean fewer visitors would be able to visit it." "It is worth noting that there is little evidence of broad public demand for such a move," wrote Kelly, Warner, Kaine, and Durbin.

In the letter, the senators asked that committee chair Susan Collins (R-Maine) and vice chair Patty Murray (D-Wash.) block funding for Discovery's relocation in both the fiscal year 2026 Interior-Environment appropriations bill and FY26 Commerce, Justice, Science appropriations bill. [...] "Houston's disappointment in not being selected is wholly understandable," the four senators wrote, "but removing an item from the National Collection is not a viable solution." [...] "There are also profound financial challenges associated with this transfer," wrote Kelly. Warner, Kaine, and Durbin. "The Smithsonian estimates that transporting Discovery from Virginia to Houston could cost more than $50 million, with another $325 million needed for planning, exhibit reconstruction, and new facilities." "Dedicating hundreds of millions of taxpayer dollars to move an artifact that is already housed, displayed, and preserved in a world-class facility is both inefficient and unjustifiable," the senators wrote.

Then there are the logistical challenges with relocating Discovery, which could result in damaging it, "permanently diminishing its historical and cultural value for future generations." "Moving Discovery by barge or road would be far more complex [than previous shuttle moves], exposing it to saltwater, weather, and collision risks across a journey several times longer," the letter reads. "As a one-of-a-kind artifact that has already endured the stresses of spaceflight, Discovery is uniquely vulnerable to these hazards. The heat tiles that enabled repeated shuttle missions become more fragile with age, and they are irreplaceable." Kelly, who previously lived in Houston when he was part of the space program, agrees that the city is central to NASA's human spaceflight efforts, but, along with Warner, Kaine, and Durbin, points out that displaying Discovery would come with another cost: an admission fee, limiting public access to the shuttle. "The Smithsonian is unique among museums for providing visitors with access to a national treasure meant to inspire the American public without placing economic barriers," wrote the senators.

The Almighty Buck

ChatGPT Adds 'Instant Checkout' To Shop Directly In Chat (cnbc.com) 25

OpenAI unveiled Instant Checkout, a new ChatGPT feature that lets users buy stuff directly through its chatbot. Currently, the feature supports single-item purchases directly from Etsy sellers, but support for more than one million Shopify merchants is coming soon. It's also only available to U.S. ChatGPT Plus, Pro and Free users at this time. CNBC reports: OpenAI will take a fee from transactions that are completed through ChatGPT, which means Instant Checkout could become an important new revenue stream for the startup. OpenAI is not yet profitable, and is burning through cash as it works to scale up its computing infrastructure. The company declined to share specific details about how large the fees are since they are determined through confidential contracts with Etsy and Shopify. Instant Checkout is free to users and will not affect their prices, OpenAI said.

"Our vision for ChatGPT -- and a lot of the technology we create, but especially ChatGPT -- is that it's not just providing you information, it is also helping you get things done in the real world," Michelle Fradin, OpenAI's product lead for ChatGPT commerce, told CNBC in an interview. The company plans to introduce multi-item carts and expand the regional availability of Instant Checkout moving forward. [...]

Instant Checkout is powered by OpenAI's Agentic Commerce Protocol, which is the underlying technology that allows users to complete a transaction directly with a merchant through ChatGPT. OpenAI built the framework in partnership with the fintech company Stripe, which powers ChatGPT subscriptions. OpenAI initially decided to use Agentic Commerce Protocol for e-commerce, but Fradin said the company thinks it could be used to facilitate other types of purchases or payments as well. OpenAI is open-sourcing the framework to help merchants build integrations more quickly, and so that developers can explore different use cases, she said.

Crime

Buyers of RadioShack Accused of Running $112 Million Ponzi Scheme (cbsnews.com) 30

An anonymous reader quotes a report from CBS News: A pair of e-commerce entrepreneurs who bought a number of well-known retail brands -- including RadioShack, Modell's Sporting Goods and Pier 1 Imports -- out of bankruptcy are accused of running a Ponzi scheme. The Securities and Exchange Commission on Monday accused Alex Mehr and Tai Lopez, founders of the Miami-based Retail Ecommerce Ventures (REV), of defrauding investors out of approximately $112 million. Through their holding company, Mehr and Lopez acquired distressed brick-and-mortar companies in order to turn them into successful, online-only brands. Dress Barn and Linens 'n Things were also among their acquisitions. [...]

The SEC's suit alleges that between 2020 and 2022, Mehr and Lopez, "made material misrepresentations" to hundreds of investors about the bankrupt retailers they had acquired. For example, to entice individuals to invest in their acquisitions, they said their portfolio companies were "on fire" and that "cash flow is strong." They also told prospective backers that money raised for a company would only be invested in that specific firm. That proved not to be the case, according to the SEC's lawsuit, which was filed Monday in the U.S. District Court for the Southern District of Florida.

"Contrary to these representations, while some of the REV Retailer Brands generated revenue, none generated any profits," the suit states. "Consequently, in order to pay interest, dividends and maturing note payments, Defendants resorted to using a combination of loans from outside lenders, merchant cash advances, money raised from new and existing investors, and transfers from other portfolio companies to cover obligations." The SEC alleges that at least $5.9 million of returns paid to investors were actually Ponzi-like payments funded by other investors, as opposed to companies' profits. Additionally, the federal regulatory agency claims that Mehr and Lopez allocated $16 million worth of investments for their own use, according to the filing.

AI

OpenAI's New Sora Video Generator To Require Copyright Holders To Opt Out (msn.com) 55

An anonymous reader shares a report: OpenAI is planning to release a new version of its Sora video generator that creates videos featuring copyrighted material unless copyright holders opt out of having their work appear, according to people familiar with the matter. OpenAI began alerting talent agencies and studios about the forthcoming product and its opt-out process over the last week and plans to release the new version in the coming days, the people said.

The new opt-out process means that movie studios and other intellectual property owners would have to explicitly ask OpenAI not to include their copyrighted material in videos Sora creates. While copyrighted characters will require an opt-out, the new product won't generate images of recognizable public figures without their permission, people familiar with OpenAI's thinking said.

AI

Culture Magazine Urges Professional Writers to Resist AI, Boycott and Stigmatize AI Slop (nplusonemag.com) 39

The editors of the culture magazine n + 1 decry the "well-funded upheaval" caused by a large and powerful coalition of pro-AI forces. ("According to the logic of market share as social transformation, if you move fast and break enough things, nothing can contain you...")

"An extraordinary amount of money is spent by the AI industry to ensure that acquiescence is the only plausible response. But marketing is not destiny." The AI bubble — and it is a bubble, as even OpenAI overlord Sam Altman has admitted — will burst. The technology's dizzying pace of improvement, already slowing with the release of GPT-5, will stall... [P]rofessional readers and writers: We retain some power over the terms and norms of our own intellectual life. We ought to stop acting like impotence in some realms means impotence everywhere. Major terrains remain AI-proofable. For publishers, editors, critics, professors, teachers, anyone with any say over what people read, the first step will be to develop an ear. Learn to tell — to read closely enough to tell — the work of people from the work of bots...

Whatever nuance is needed for its interception, resisting AI's further creep into intellectual labor will also require blunt-force militancy. The steps are simple. Don't publish AI bullshit. Don't even publish mealymouthed essays about the temptation to produce AI bullshit. Resist the call to establish worthless partnerships like the Washington Post's Ember, an "AI writing coach" designed to churn out Bezos-friendly op-eds. Instead, do what better magazines, newspapers, and journals have managed for centuries. Promote and produce original work of value, work that's cliché-resistant and unreplicable, work that tries — as Thomas Pynchon wrote in an oracular 1984 essay titled "Is It OK to Be a Luddite?" — "through literary means which are nocturnal and deal in disguise, to deny the machine...."

Punishing already overdisciplined and oversurveilled students for their AI use will help no one, but it's a long way from accepting that reality to Ohio State's new plan to mandate something called "AI fluency" for all graduates by 2029 (including workshops sponsored, naturally, by Google). Pedagogically, alternatives to acquiescence remain available. Some are old, like blue-book exams, in-class writing, or one-on-one tutoring. Some are new, like developing curricula to teach the limits and flaws of generative AI while nurturing human intelligence...

Our final defenses are more diffuse, working at a level of norms and attitudes. Stigmatization is a powerful force, and disgust and shame are among our greatest tools. Put plainly, you should feel bad for using AI. (The broad embrace of the term slop is a heartening sign of a nascent constituency for machine denial.) These systems haven't worked well for very long, and consensus about their use remains far from settled. That's why so much writing about AI writing sounds the way it does — nervous, uneven, ambivalent about the new regime's utility — and it means there's still time to disenchant AI, provincialize it, make it uncompelling and uncool...

As we train our sights on what we oppose, let's recall the costs of surrender. When we use generative AI, we consent to the appropriation of our intellectual property by data scrapers. We stuff the pockets of oligarchs with even more money. We abet the acceleration of a social media gyre that everyone admits is making life worse. We accept the further degradation of an already degraded educational system. We agree that we would rather deplete our natural resources than make our own art or think our own thoughts... A literature which is made by machines, which are owned by corporations, which are run by sociopaths, can only be a "stereotype" — a simplification, a facsimile, an insult, a fake — of real literature. It should be smashed, and can.

The 3,800-word article also argues that "perhaps AI's ascent in knowledge-industry workplaces will give rise to new demands and new reasons to organize..."
AI

Mistral's New Plan for Improving Its AI Models: Training Data from Enterprises (wsj.com) 11

Paris-based AI giant Mistral "is pushing to improve its models," reports the Wall Street Journal, "by looking inside legacy enterprises that hold some of the world's last untapped data reserves...." Mistral's approach will be to form partnerships with enterprises to further train existing models on their own proprietary data, a phenomenon known as post-training... [At Dutch chip-equipment company ASML], Mistral embeds its own solutions architects, applied AI engineers and applied scientists into the enterprise to work on improving models with the company's data. [While Mistral sells some models under a commercial license], this co-creation strategy allows Mistral to make money off the services side of its business and afford to give away its open source AI free of charge, while improving model performance for the customer with more industry context...

This kind of hand-holding approach is necessary for most companies to tackle AI successfully, said Arthur Mensch [co-founder and chief executive of Mistral]. "The very high-tech companies [and] a couple of banks are able to do it on their own. But when it comes to getting some [return on investment] from use cases, in general, they fail," he said. Mensch attributes that in part to a mismatch between expectations and reality. "The curse of AI is that it looks like magic. So you can very quickly make something that looks amazing to your boss," but it doesn't scale or work more broadly, he said. In other cases, enterprises simply might not know what to focus on. For example, it is a mistake to think equipping all employees with a chatbot will create meaningful gains on the bottom line, he said. Mensch said to fully take advantage of AI, companies will have to rethink organizational structures. With information flowing more easily, they could require fewer middle managers, for example.

There is a lot of work yet to do, Mensch said, but in a large sense, the future of AI development now lies inside the enterprise itself. "This is a pattern that we've seen with many of our customers: At some point, the capabilities of the frontier model can only be increased if we partner," he said.

AI

Walmart CEO Issues Wake-Up Call: 'AI Is Going to Change Literally Every Job' (msn.com) 106

It's the world's largest companies by revenue. But Walmart's executives have a blunt message, reports the Wall Street Journal: "Artificial intelligence will wipe out jobs and reshape its workforce." "It's very clear that AI is going to change literally every job," Chief Executive Doug McMillon said this week in one of the most pointed assessments to date from a big-company CEO on AI's likely impact on employment... "Maybe there's a job in the world that AI won't change, but I haven't thought of it."

Inside Walmart, top executives have started to examine AI's implications for its workforce in nearly every high-level planning meeting. Company leaders say they are tracking which job types decrease, increase and stay steady to gauge where additional training and preparation can help workers. "Our goal is to create the opportunity for everybody to make it to the other side," McMillon said. For now, Walmart executives say the transformation means the size of its global workforce will stay roughly flat even as its revenue climbs. It plans to maintain its head count of around 2.1 million global workers over the next three years, but the mix of those jobs will change significantly, said Donna Morris, Walmart's chief people officer. What the composition will look like remains murky... Already Walmart has built chat bots, which it calls "agents," for customers, suppliers and workers. It is also tracking an expanding share of its supply chain and product trends with AI...

Some changes are already rippling across the workforce. In recent years Walmart has automated many of its warehouses with the help of AI-related technology, triggering some job cuts, executives said. Walmart is also looking to automate some back-of-store tasks. New roles have been established, too. Walmart, for example, created an "agent builder" position last month — an employee who builds AI tools to help merchants. It expects to add people in areas like home delivery or in high-touch customer positions, such as its bakeries. The company has also added more in-store maintenance technicians and truck drivers in recent years.

The article also a comment made by Ford Motor Chief Executive Jim Farley earlier this summer. "Artificial intelligence is going to replace literally half of all white-collar workers in the U.S."
Businesses

Videogame Giant Electronic Arts Nears Roughly $50 Billion Deal to Go Private (msn.com) 12

Videogame maker Electronic Arts is in advanced talks to go private in a roughly $50 billion deal that would likely be the largest leveraged buyout of all time, WSJ is reporting, citing people familiar with the matter. From the report: A group of investors including private-equity firm Silver Lake, Saudi Arabia's Public Investment Fund and Jared Kushner's investment firm Affinity Partners could unveil a deal for the publisher best known for its sports games as soon as next week, the people said.

EA has long made games including FIFA, the soccer videogame now known as FC, and the football game Madden NFL as well as The Sims and other titles. The California-based company had a market value of around $43 billion before The Wall Street Journal reported on the talks, which sent the stock up nearly 15% Friday. Its shares closed at $193.35, a record high, giving the company a market value of around $48 billion.

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