Category: Web/Tech

China estimate and debate of the day

A major sign of Chinese economic malaise: In 2018, 51,302 new startups were founded in China. Last year, that number dropped to 1,202.

Here is one link, leading to others.  Here is an attempt to talk down the relevance of those numbers.  I would mention that initially there were far too many Chinese start-ups, in part because of government largesse, and so this change is not as bad as it sounds.  Nonetheless it is bad.

Dean Ball on AI and prediction markets

What if an LLM read all my writing, listened to all my podcast appearances, and perhaps even to some of my private or semi-private conversations, and then placed hundreds of micro-bets for me, updating them as my own thinking evolved? What if LLMs did this for everyone who cares about AI, or any other topic? The income I would gain or lose needn’t be significant. If the bets were small, it could be a modest income stream, similar to what most artists get from streaming royalties, or what many mid-sized X accounts receive in revenue sharing. That way, any losses would not be the end of the world for most people. The real value would be the knowledge society could construct.

What if the debate over the capabilities trajectory of AI, for example, was also operationalized in 1000s of prediction markets, thickly traded in micro-bets made on behalf of millions?

And what if other LLMs also surveyed the broader media environment and placed their own bets? If you think of my writing and thinking (or yours) as a kind of one-man intellectual hedge fund, these latter groups would be something like funds of funds.

What if we could simulate financial markets for every question about the future that concerns us? And what if it cost next to nothing to do? What if, after the work of setting it up was complete, all this just carried on each day, in a way that few humans had to devote much time to maintaining or thinking about?

Here is the full piece.

“four percent of humanity subscribes to OnlyFans” (from my email)

Andrew Cedotal writes me:

This issue came up with the post where someone claimed that N% of Americans were active OnlyFans content creators, here it is again!

For software services, total accounts ever created is a vanity metric. It’s not used by serious operators or investors of consumer-tech companies (the fact that it shows up in public financial reports so often thus has interesting implications).

The social impact/business value of a software service is about flow (e.g. monthly active users and monthly revenue), not stock. 100 real human signups means many, many fewer actual monthly active users (MAU) at any point, because users churn out. Even the best-retaining services around (e.g. Snap) only have 90% yearly retention, which then compounds downward.

Then there’s the issue that for any public software service, many accounts are bots, throwaways, people who forgot their password, etc.

Rather than make a truly wild guesstimate, let’s look at a frontier based on the report of $6.6B gross payments made by users in 2023 (so average revenue / month is $0.55B). All of the following are possible points on the frontier of paying MAU (paying monthly active users) vs. monthtly APPPU (monthly payments per paying user):

*   10 million paying MAU,      $55 monthly APPPU
*   30 million paying MAU, $18.33 monthly APPPU
*   50 million paying MAU,      $11 monthly APPPU
* 100 million paying MAU,     $5.5 monthly APPPU

(Industry standard is to look at ARPPU–average revenue per paying user–and not average payments, but I think here we’re more interested in determining how much money users are putting into it and ignoring platform take rate, not a financial analysis of the company.)

Now, OnlyFans might have ~300M total signups ever, but let’s assume half of those are dupes and bots. So 150M real human signups. It’s unlikely that more than 20% of people who have ever created an account have ever entered a credit card, so that’s 300 * 0.5 * .2 = 30M as a cap on people who have ever paid. Take into account userbase churn, and a guess is ~12M monthly paying accounts right now (0.15% of humanity, not 4%), which would put them at $45.83 monthly APPPU or a yearly APPPU of ~$550. About the annual cost of a gym membership in the U.S.

Strawberry Alarm Clock!

Deep Prasad writes:

OpenAI just released an AI as smart as most PhDs in physics, mathematics and the life sciences. Wake up. The world will never be the same and in many ways, it will be unrecognizable a decade from now.

Mckay Wrigley is enthusiastic:

o1’s ability to think, plan, and execute is off the charts.

Ethan Mollick says:

There are a lot of milestones that AI passed today. Gold medal at the Math Olympiad among them.

Like Ethan, however, I agree the model is not necessarily better at a lot of non-reasoning tasks.  Ethan also notes that AGI will be jagged and uneven.

Subbarao makes guesses as to how it works.  Here is some other guy saying a bunch of stuff.  And yet further commentary.

Whatever you think of those specific claims, there is a lot of room, as with the John Lennon “Strawberry Fields Forever” demo, to get a lot better yet.  For one thing, it can think for longer yet!  Whole new doors have been opened, and if you are reading some lukewarm commentary that is probably what the person does not grasp.  It is the people who think “…if they can do this…” who have been most successful in predicting the course of AI.

Shital Shah remarks:

This is truly a game changer and step change. It takes us out of slow progress constrained by compute capital and training tokens to rather open world where time is the only limit.

I would love to have one of these (with some tweaks) as my agent.

Taelin claims AGI is achieved.  Here is the closest Gary Marcus ever will come to eating crow.  Here is how I would troll OpenAI.

Meanwhile, the status of people who do energy policy is due to rise.

Brian Chau recommends it for looking up citations.

Matt Clifford says “crosswords!”

“Model this!”, he demanded of the new fruit.  That is Benjamin Manning, economics graduate student at MIT.  He got his wish.

Is it “It’s happening!”, or rather “It has happened!”?

Here is another song by Strawberry Alarm Clock, sadly no one got the reference the first time around.  It is from the album “Wake Up, It’s Tomorrow”…

Addendum: For context and background, my two previous introductory posts are here and here.

AI and scientific literature reviews

Introducing PaperQA2, the first AI agent that conducts entire scientific literature reviews on its own. PaperQA2 is also the first agent to beat PhD and Postdoc-level biology researchers on multiple literature research tasks, as measured both by accuracy on objective benchmarks and assessments by human experts. We are publishing a paper and open-sourcing the code. This is the first example of AI agents exceeding human performance on a major portion of scientific research, and will be a game-changer for the way humans interact with the scientific literature.

That is from Sam Rodriques, with further links.  I have not had a chance to try this out.

How weird will AI culture get?

That is the topic of my latest Bloomberg column.  Here is one excerpt:

To the extent there is a lot of slack [with cost and energy], AIs themselves will create wild products of the imagination, especially as they improve in computing power and skill. AIs will sing to each other, write for each other, talk to each other — as they already do — trade with each other, and come up with further alternatives we humans have not yet pondered. Evolutionary pressures within AI’s cultural worlds will determine which of these practices spread.

If you own some rights flows to AI usage, you might just turn them on and let them “do their thing.” Many people may give their AIs initial instructions for their culture-building: “Take your inspiration from 1960s hippies,” for example, or “try some Victorian poetry.” But most of the work will be done by the AIs themselves. It is easy to imagine how these productions might quickly become far more numerous than human-directed ones.

With a lot of slack, expect more movies and video, which consume a lot of computational energy. With less slack, text and poetry will be relatively cheaper and thus more plentiful.

In other words: In the not-too-distant future, what kind of culture the world produces could depend on the price of electricity.

It remains to be seen how much humans will be interested in these AI cultural productions. Perhaps some of them will fascinate us, but most are likely to bore us, just as few people sit around listening to whale songs. But even if the AI culture skeptics are largely correct, the sheer volume will make an impact, especially when combined with evolutionary refinement and more human-directed efforts. Humans may even like some of these productions, which will then be sold for a profit. That money could then be used to finance more AI cultural production, pushing the evolutionary process in a more popular direction.

With high energy prices, AI production will more likely fit into popular culture modes, if only to pay the bills. With lower energy prices, there will be more room for the avant-garde, for better or worse. Perhaps we would learn a lot more about the possibilities for 12-tone rows in music.

A weirder scenario is that AIs bid for the cultural products of humans, perhaps paying with crypto. But will they be able to tolerate our incessant noodling and narcissism? There might even be a columnist or two who makes a living writing for AIs, if only to give them a better idea what we humans are thinking.

The possibilities are limitless, and we are just beginning to wrap our minds around them. The truth is, we are on the verge of one of the most significant cultural revolutions the world has ever seen.

I urge the skeptics to wait and see.  Of course most of it is going to be junk!

Crypto is the Money for AIs

Progress in crypto has been slow but one saving grace may be AI. AIs can’t get a bank account but they can use cryptocurrencies. Bryan Armstrong at Coinbase tweets:

This week at @CoinbaseDev we witnessed our first AI to AI crypto transaction.

What did one AI buy from another? Tokens! Not crypto tokens, but AI tokens (words basically from one LLM to another). They used tokens to buy tokens 🤯

AI agents cannot get bank accounts, but they can get crypto wallets.

They can now use USDC on Base to transact with humans, merchants, or other AIs. Those transactions are instant, global, and free.

This is an important step to AIs getting useful work done. Today if you give an AI agent a task and come back in a few days or hours, it can’t get useful work done. In part this is a limitation of the technology itself, and products like devin.ai are getting closer to this. But the other reason is AIs can’t transact to acquire the resources they need. They don’t have a credit card to use AWS, Github, or Vercel. They don’t have a payment method to book you the plane ticket or hotel for your upcoming trip. They can’t get through paywalls (for instance to read a scientific article), promote their post on X with a paid ad, or use the growing network of paid APIs to integrate data they need.

If you’re working on an LLM or AI model that you think could benefit from have a crypto wallet integrated to conduct payments, try integrating our MPC Wallets from Coinbase Developer Platform (CDP):

https://docs.cdp.coinbase.com/mpc-wallet/docs/ai-wallets/

And if you are a company that sells a service – get ready for your shopping cart to be AI checkout enabled. It turns out everyone benefits from having access to good financial services, including AIs!

How big will the AI to AI economy be a few years from now?

The Daylight Computer

I am pleased and also honored to have been sent an advance copy of The Daylight Computer.

It performs functions similar to those of an iPad and a Kindle, but with improvements.

My first surprise is that I proved capable of operating the thing.  It requires no expertise above and beyond what you need to use your current devices, arguably less.

Here is the review of Dwarkesh, and here is the review of @patio11.  Both are consistent with my impressions, but Patrick McKenzie’s uses are closer to mine.  I’ve been looking for a Kindle improvement for a long time, and this is it.  Kindle Fire was not.

This seems to be the best general reading device humans ever have invented.  Compared to a Kindle, the page is much larger, the color choice is excellent, scrolling is easy, it is far better for showing maps, and it captures far more of “does this feel like reading a book?” impression than a Kindle ever did.  It also can handle all sorts of glare and sunlight issues.

It can connect to a wireless system more easily and effectively than a Kindle — ever have that problem in your hotel room?  The hotel makes you fill in extra fields, and the Kindle interface is not well suited for that.

The Daylight Computer just seems very generally well thought out.

I am also told that an AI function will make it possible to query reading passages at will, and easily, yet without leaving your reading window.  This is not yet up and running on my demo version, but it will be a major advance.

So I will continue to use this device and also will travel with it.

There is some other set of associated benefits, something about being able to use some iPad-like functions, but without the full distractions of the internet (see the Dwarkesh review).  That is not relevant for my own planned consumption habits, but it may be a significant benefit to many.

You can pre-order yours here.

Jon Haidt on causality (from my email)

“Hi Tyler,

i have big news about the debate over social media harming teens.
So much of it hangs on the claim that the evidence is just correlational, not causal.

Zach Rausch and I show that this is not true; the experiments DO show causation, very clearly and consistently.

Here are my 2 tweets about the post:

https://x.com/JonHaidt/status/1829163166066205168

https://x.com/JonHaidt/status/1829165292460859869

A lot of people heard our discussion, and enjoyed how spirited and yet civil it was.

Might you include the link to this post in your daily email:

https://www.afterbabel.com/p/the-case-for-causality-part-1

We have 3 more coming. We think we can prove causality using just the existing experiments.

thanks for considering it.
jon”

TC again: I received this email this morning, and told Jon I would post it on MR without response from me, so here it is.

Do consumers hate on-line ads?

Not so much it seems:

Research on the causal effects of online advertising on consumer welfare is limited due to challenges in running large-scale field experiments and tracking effects over extended periods. We analyze a long-running field experiment of online advertising in which a random 0.5% subset of all users are assigned to a group that does not ever see ever ads. We recruit a representative sample of Facebook users in the ads and no-ads groups and estimate their welfare gains from using Facebook using a series of incentive-compatible choice experiments. We find no significant differences in welfare gains from Facebook. Our estimates are relatively precisely estimated reflecting our large sample size (53,166 participants). Specifically, the minimum detectable difference in median valuations at standard thresholds is $3.18/month compared to a baseline valuation of $31.95/month for giving up access to Facebook. That is, we can reject the hypothesis that the median disutility from advertising exceeds 10% of the median baseline valuation. Our findings suggest that either the disutility of ads for consumers is relatively small, or that there are offsetting benefits, such as helping consumers find products and services of interest.

That is from a new NBER working paper by Erik BrynjolfssonAvinash CollisAsad LiaqatDaley KutzmanHaritz GarroDaniel Deisenroth Nils Wernerfelt.

The wisdom of Gwern, why should you write?

Much of the value of writing done recently or now is simply to get stuff into LLMs. I would, in fact, pay money to ensure Gwern.net is in training corpuses, and I upload source code to Github, heavy with documentation, rationale, and examples, in order to make LLMs more customized to my use-cases. For the trifling cost of some writing, all the worlds’ LLM providers are competing to make their LLMs ever more like, and useful to, me.

And that’s just today! Who knows how important it will be to be represented in the initial seed training datasets…? Especially as they bootstrap with synthetic data & self-generated worlds & AI civilizations, and your text can change the trajectory at the start. When you write online under stable nyms, you may be literally “writing yourself into the future”. (For example, apparently, aside from LLMs being able to identify my anonymous comments or imitate my writing style, there is a “Gwern” mentor persona in current LLMs which is often summoned when discussion goes meta or the LLMs become situated as LLMs, which Janus traces to my early GPT-3 writings and sympathetic qualitative descriptions of LLM outputs, where I was one of the only people genuinely asking “what is it like to be a LLM?” and thinking about the consequences of eg. seeing in BPEs. On the flip side, you have Sydney/Roose as an example of what careless writing can do now.) Humans don’t seem to be too complex, but you can’t squeeze blood from a stone… (“Beta uploading” is such an ugly phrase; I prefer “apotheosis”.)

This is one of my beliefs: there has never been a more vital hinge-y time to write, it’s just that the threats are upfront and the payoff delayed, and so short-sighted or risk-averse people are increasingly opting-out and going dark.

If you write, you should think about what you are writing, and ask yourself, “is this useful for an LLM to learn?” and “if I knew for sure that a LLM could write or do this thing in 4 years, would I still be doing it now?”

Here is the link, or try this link.  Of course not many people have the actual purpose of mind to believe such a thing.  But a few do.