Palantir CEO Alex Karp is a little quirky but, on this issue, I tend to agree with him.
According to Karp in the interview below the request by OpenAI and Anthropic AI labs for government regulation is related to a legal issue within their business model. Right now, massive multinational corporations are working with AI groups under contract. As part of those contracts the leaders of the corporations are discovering their individual business plans, what they call their intellectual property (IP) has been uploaded into the dataset of the AI models themselves.
These corporations have spent billions of dollars on their detailed business plans, marketing plans, logistics and revenue systems that are now part of the AI dataset. These CEOs are not happy and talking about lawsuits against the AI developers for stealing their corporate intellectual property. However, at the same time the CEOs are furious at the loss of proprietary information, they are simultaneously bound to the AI developers for forward revenue. This is creating a problem.
Example: By some analyst’s estimations, Amazon’s forward revenue projection is approximately 51% dependent on further technological capability through the use of AI. However, Jeff Bezos likely does not appreciate his business model, which includes a massive dataset that he makes money from, being taken and uploaded to the AI database. Bezos could sue Anthropic for ip theft.
All of the AI labs are exposed to this litigation if it was to unfold. Additionally, all of the investors into the AI frontier labs would be at risk if the AI developer were sued by these corporations. Both the AI developers and their investors would/are demanding protection from these lawsuits.
Here’s where it gets complicated.
If a wave of lawsuits were launched it would seriously hurt the market valuation of the AI developers. However, simultaneously, if the AI developers get government protection (ie Sec.230, federal immunity from lawsuits) that removes entry barriers for startup AI companies, which increases AI competition, which could also reduce the market value of the major AI developers.
Alex Karp with Palantir already has this type of immunity from lawsuits due to the collaborative nature of the national security dynamic that Karp has developed with the U.S. government. However, the AI developers do not have this type of relationship. The AI developers previously said they did not want government interference, but now they want government protection. Privatize the upside (profit), then socialize the risk (losses).
As this dynamic unfolds, you can well imagine all the high-finance influencers who fund various political candidates and Super-PACs are positioning their own interests. An investor in AI would seek the protection of the investment and the elimination of lawsuit risk. Those institutional investors and billionaires would pay political campaigns and special interest advocacy to secure the value of their investment.
The politicians are being purchased by the investors into AI development. The goal is to grant the AI labs immunity from lawsuits.
There are trillions at stake.
If a potential AI threat has to manifest in order to force public support for the liability protection, then so be it.
Perhaps that’s what we are seeing.
Under this unfolding scenario, the tech sector of the stock market looks a little sketchy right now.
Self created problem. Sorry not sorry. They intentionally decimated our small businesses and imported Foreign workers at great cost to US citizens.
All by plan. That’s why DATA centers are needed to contain all your cell phone calls and texts, all Ring door bell photos, all Flock Camera data, all your banking and health care information.
That storage is where the $$$ is for the hardware sellers, it just the same old—I’ll give you the razor but you have to buy the blades.
In this case there is no front end freebee though.
In many cases the Flock cameras are being taken down only to be replaced with Axon units that the local city, county, state has existing contracts with for tasers, body worn cameras, etc.
You get the picture.
Create a problem and then Solve the Problem by taking away our freedoms.
In the old days when I was in business, I hated the Tort Lawyers and them “feeding” on corporations. I have grown a bit wiser.
The most recent example was allowing Drug Companies and the Shot to be “immune” from lawsuits. Let the Tort Laws and the marketplace to sort it out.
The same for AI. The Jungle of Capitalism and the law will sort it out. Just like the Flock Cameras. Let them operate but no entity can access them without a Search Warrant. Then let the Tort Law sort it out.
We are witnessing through J6 and the Treasonous Crimes by the Deep State. The system we have now cannot police itself. The Democrats were and are involved in criminal activity. Saving rotten institutions is saving evil. Maybe Tort Law is where a solution can be found for this also.
The only threat I see is how they will get taxpayers to pay for any failure. Other than that they can kiss my arse; I design and manufacture highly profitable durable goods in America. I have nothing against AI, especially when you realize that we already have the datacenters needed for new computing methods.