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The demand for AI is currently overwhelming. As in, can't build data centers and GPUs melting overwhelming, companies growing 3x in a month while already at multi-billion revenues.
The models get better and better, Chinese open source is falling further and further behind American companies. The productivity gains are, at this point, obvious. The best talent works (or wants to work) in America and get compensated obscene amounts, the most capital flows through America, this is still by far the best place to start a technology business in the world
I think American technology was on the decline for the past few years before LLMs, but for the foreseeable future as long as American companies control the talent flywheel I think the new world of tech is going to be much more American than before.
> Chinese open source is falling further and further behind American companies
This is simply not true?
Just like Chinese EVs and Chinese renewables eventually beat the West, I have no doubt that China can probably eventually pull ahead, but I think it is probably accurate to say that China is currently still behind (how far is hard to say) because they have a slight technology handicap imposed by the US.
Hardware capacity is a separate issue entirely.
This depends on how many proprietary APIs are in the way of the model itself.
At some point, though, the balance could tip. It's impossible to say, and it'd be irresponsible to try to predict it, but there isn't any reason English is natively superior, any more than French was 150 years ago, or Latin 600 years ago. But it's a major advantage the US has that isn't acknowledged often enough.
1. English became the lingua franca right when the world really became globalized. So everyone from Europe to Asia to Africa has wanted to learn English as a second language for decades. So even if American power went away, I still don't see English falling from its perch. I often say it's really hard for Americans to learn another language because if you go to another country hoping to learn that language, so often you'll find many/most people just want to speak to you in English.
2. The only other power I could see surpassing the US in the mid term is China (and that's in no way guaranteed), but the Chinese language (Mandarin), and especially Chinese writing is inherently more difficult for foreigners to learn. I'd also argue the Chinese writing system is inherently more poorly suited to the digital world.
It’s an interesting question: for how long will it remain important to know multiple languages in the age of LLMs? Of course, it’s better to know foreign language(s) — no doubt about that — but for day-to-day work, unless you’re living abroad, it seems that their practical utility will slowly decrease. And speech-to-speech translation will likely continue to improve as well.
Russian is commonly viewed as a difficult language, but it become a regional lingua franca in their sphere of influence. The only reason we aren't speaking Russian is because they lost the cold war.
I do agree that Mandarin speakers might become more open to Pinyin if more foreigners started learning the language. I'd also point out that English and Romance speakers find Mandarin difficult. For Mandarin speakers, is their own spoken language actually difficult for them? They might find English to be a difficult language.
- The culture is, I think, the root of the flywheel. The entrepreneurship and competitive intensity is unlike anywhere else I've lived (not an American). It's okay to go bankrupt. It's okay to fail multiple times and burn millions in VC money, in fact it's encouraged! Take a break and raise another round and go again, VCs like second time founders. In my home country having one business go under is the worst thing imaginable.
- The capital markets, even YC (one of the lower tier accelerators by now) gives you 500k for 7%, sometimes pre-revenue. That is an absurd proposition elsewhere
- Surrounding yourself with top talent raises the ceiling for what you think is possible and accelerates your career really fast. It's inspiring for me to be around so many smart and successful people.
Actually, there is. English is relatively unique in its ability to incorporate loan words and features of other languages. This is in part due to its history as a merger of 10k French (thus, Latinate) words into an otherwise Germanic language. But it's also due to the unfortunate history of the British empire, followed by American hegemony, which spread English to many other cultures who freely adapted it.
Whether this is enough to justify a continuing status as "the international language" is obviously debatable. But English is different from almost all other human languages, not because it is better, but because it is just ... more
Older people here in Northern Europe often seem to speak English quite well, in France less so.
It isn't a moat, My partners written English surpasses mine and it is her third language.
It is money.
Specifically, right now, petro-dollars. For a while before that, it was pounds
The writer is asking how much longer that will continue to be true that it is petro-dollars.
https://en.wikipedia.org/wiki/World_currency
Anecdotally, I'd wager that the modest/incremental but real gains from boring, daily application pale in comparison to the wasted cycles on terrible ideas, disrupted roadmaps due to poor business decision making, and the uncritical injection of insane, LLM generated bullshit into official business documents (fake KPIs for unmeasurable outcomes, references to nonsensical or non-existent process, data-driven decisions backed by hallucinated data. etc.).
I'm deeply skeptical that organizations will see real, lasting gains. I think they'll see some acceleration of copy/paste-adjacent workflows and gains in non-work like generating slide templates, but that's about the limit of it.
As prices rise to meet actual cost, I shudder to think about the idiotic, reactionary ripples it will send through corporate leadership, with everyone scrambling to evade responsibility at the same time and blaming their tech teams for failing to deliver on bullshit/impossible AI initiatives.
TL/DR yeah, I'd also like to see some real numbers.
I think it's obvious that demand is overwhelming supply right now. I agree that we don't know how much of the demand is due to perception, perverse incentives, or poor management, and how much of the demand is 'real'. I personally believe that the demand is mostly real and will continue to go up, but I don't have a crystal ball.
I also acknowledge that the productivity gains are highly dependent on your specific company's implementation and the work that you're doing. I think the role of a technical IC (which I am as well) is going to be managing fleets of agents, and many people who aren't suited to that type of work will leave the industry (and many people who are will join).
I generally agree with you on the points about American politics, I don't think the way they are cracking down on immigration is very wise.
As for correctness - it's a nontrivial problem to deploy AI in prod that works and doesn't blow up over millions of runs+. Hence why the initial value has accrued to the intelligence layer (labs) but the bulk of the remaining value will accrue to the applied layer in my opinion.
Our demand for compute and software is infinite, but our price sensitivity is also high.
Wait until they charge the real pice, if I sold a dollar for 10ct I'd also have a lot of demand.
I'm burning billions of tokens on chatgpt "deepresearch Pro extended" for things I wouldn't even bother googling, the second I have to pay even 2x the price I won't use that anymore
If the LLM was GPT-1, most people wouldn't even use it for free. So clearly there's another axis here?
Real AI is being suppressed and it seems that it will not be allowed to exist in the mainstream, especially in the US.
When developers say that LLMs make them more productive, you need to keep in mind that this is what they’re automating: dysfunction, tampering as a design strategy, superstition-driven coding, and software whose quality genuinely doesn’t matter, all in an environment where rigour is completely absent.
They are right. LLMs make work that doesn’t matter easier – it’s all monopolies, subscriptions, VCs, and lock-in anyway – in an industry that doesn’t care, where the only thing that’s measured is some bullshit productivity measure that’s completely disconnected from outcomes.
...
One group thinks this will make the world ten times richer. The other thinks it’ll be a catastrophe.
(from an earlier post, https://www.baldurbjarnason.com/2026/the-two-worlds-of-progr...)
I personally disagree with that worldview. (I read the article and the guy's tone is lowkey salty)
The reality is it's insanely hard to convince people (/especially/ consumers. //especially// technical consumers) to pay up to use software. Anyone who has tried to sell software as a startup knows, customers are laser focused on outcomes and value and anything that raises an eyebrow means you're toast
Ofc there are perverse incentives and I think those are bad
The industry is in an extremely bimodal situation, which drives most of that rot.
You have the startups and small businesses who can't get businesses or customers to pay up. And you have the SaaS giants, who already have their customers and can charge whatever they want.
And this is where the "rotten software industry" and doubts about AI feasibility intersect: Both of these business archetypes lack a clear use case for AI.
If you're small, congratulations you can now spend thousands a month on tokens and still have $0 of revenue. AI doesn't really help you "catch up" to customer expectations as now you're also having to compete with the myriad of slop-shops and in-house AI software development.
If you're a giant, well... why bother? Why give OpenAI or Anthropic a million dollars in tokens? They don't need to make the software better nor do need any "AI efficiency" to do layoffs.
My 2cts
So the solution is to reduce the cost to zero, instead of competing to provide the best outcome and highest value?
Prior restraint is going to put a damper on American state of the art for the foreseeable future.
https://thezvi.substack.com/p/the-ai-ad-hoc-prior-restraint-...
In the longer term, companies won’t be able to build AI infrastructure fast enough to keep up. The construction capacity isn’t there. The hardware production capacity isn’t there. Raw materials, energy, water—not enough of any of it. The supply chain is a fragile, grotesque joke.
> as long as American companies control the talent flywheel
The companies are eating their seed corn. Senior devs are going to age out and there won’t be enough juniors coming up the ranks to replace them. The oncoming demographic crisis multiplies this problem.
Americans decided to sabotage their own public education system for generations. They were able to bridge the gap with foreign undergrad/grad students for a while but that well has been poisoned, probably for good.
I'm sad that America is making it more difficult for foreign talent to come in. But with the flip-flops between D/R in the white house it's really hard to predict what immigration looks like even 5 years from now
And that's in the US, the rest of the world is all using Chinese models as well. Which means these models get far more collaboration from the global research community being developed in the open. They will set the standards in terms of how APIs work. And they will be what everyone uses going forward.
The closed approach simply can't compete with that. The same way Linux destroyed Windows on servers, open AI models will destroy proprietary solutions as well.
"Chinese models are what pretty much every AI company in the US is using now" - just untrue. you think people inside Cursor use composer for most of their work? haha
the talent at the labs far surpasses the global research community its just not comparable
I'm not saying I prefer it this way, I want open source to do well but it's just not happening at the current pace
The idea that the talent in the US surpasses the global research community is laughable. China already tops the world in artificial intelligence publications. https://www.science.org/content/article/china-tops-world-art...
China also has a population of 1.4 billion people, and an excellent education system. Pretty much all top universities are Chinese. https://www.nature.com/nature-index/institution-outputs/gene...
And let's not forget that top AI researchers from US are now fleeing to China. https://www.scmp.com/news/china/science/article/3353398/lead...
Incredible article, a lot to unpack here, but I found this particular offhand tidbit interesting. It does seem like any attempt at tech industry regulation over the past decade or two (that isn't somewhat in the interests of big tech anyway, i.e. age verification and so on) has been either overly vague, or overly specific, leading to easy workarounds.
It seems like a microcosm of a wider trend in regulation; the disconnect between intentions and results. On the rare occasions that consumer-friendly legislation does go through, there is no working mechanism for evaluating its effectiveness and refining the rules as quickly as big corporations can adapt to them. I like how the article frames this, of how the regulations are targeting the wrong thing, how they're defined by the problem rather than the desired end state.
For more thoughts along these lines I'd highly recommend checking out Jennifer Pahlka's blog Eating Policy: https://www.eatingpolicy.com/
The article is delusional. In particular, these claims:
- The Iran war is over.
- Iran has "won" the war.
- The US has lost influence with Asian allies.
- The petrodollar is over.
- The US economy is weaker due to billionaires and the stock market.
It's especially laughable given the recent diplomacy with China.
I also predict a secular government is running Iran before the fall...
Technology has politics, and it often serves to reproduce terrible modes of operation instead of something that could be described as "good progress" for humanity. The renewable energy landscape is the best example of a space that has had to fight against the old world's financial interests, even in the face of obvious monetary and technological supremacy.
The software world unfortunately has followed adtech + social media companies' operational structures, and we lost decades of "good progress" to attention-funded software.
I have a feeling this is why very few novel companies are springing up from this LLM shift: the relationship of a) lines of code b) solving problems to achieve progress c) getting paid for it has been decoupled for so long, because attention has been the main currency online.
Unsurprisingly, the Chinese technology market leap is fueled by a focus towards the "physical" (raw materials, manufacturing) and it's no surprise that a highly educated population is beating many Western economies in the electronics market (from small gadgets all the way to cars and energy). It's not impossible to try catching up by educating our people to reorient money to industry that brings "good progress", instead of industry that brings virtual money in the form of stocks or tech that mainly serves vices and/or entertainment.
We just finished watching a 90s Dennis Potter TV series, Lipstick on your Collar. Strange and mannered, and about in part the preparation for Suez at the end of empire, by an elderly leadership that hadn't realised that the British empire was already done (and at a time when the young were only interested in America, the new power). More stupidity than malice there. What we're getting today looks like both.
That many people don't know what a file is, is most probably down to the very explicit war of one company, namely Apple, on the very concept of a file. And I fully agree that it is a terrible idea that makes people completely forget that what they're handling is actually a computer that could be doing so much more than what Apple allows them to do.
Anybody have any idea what diagnostic shapes he's talking about?
Web version here, if you want to see what it's like https://psytests.org/arc/ssten.html
This as been so overwhelmingly obvious in 3rd world countries (viz. India's "non-alignment" foreign policy) but, still, Europe, Canada, Japan and Australia didn't fully get it: the concept of "rules based world order" is just a layer of makeup over "American Imperialism". Americans make rules the same way Tony Soprano made rules: strictly for self-advantage. We should be thankful to Trump to wipe out that makeup, finally.
True, Mark Carney explained that in Davos. But I am not sure Canadians got it.
I call the Hormuz crisis the biggest strategic blunder in US history and it's not even close. It's such a blunder it will probably be written about in history books as the end of the post-1945 era. It's not lost on people that the US would rather let the world burn than split with its attack dog in the region, even slightly. We're also seeing that, as the author notes, a tiny power can strategically defeat a military that over $1 trillion a year is spent on.
The author rightly points out of the lawlessness of everything going on and the destruction of trust in financial markets. All of this is correct. But I don't think the auuthor really identifies the reasons for the push for AI. And that is, labor displacement and wage suppression. Or, to put it another way, further wealth concentration into the hands of the "oligarchs". I guess it's another version of "whatever our oligarchs want to steal this month, they get."
This crisis created billions of arms sales which is a success for some, especially as it made the other scandal go away.
And now there's evidence that Epstein was behind the prosecution of Swartz. He knew the man was onto something.
The authoritarianism is only more obvious. No one bothers to hide it. The social irresponsibility ramps up and up. Genocide in Burma? The cost of social connection. The cost of freedom.
At some point, it all breaks. No one knows what happens next. Models smooth reality, but reality, at some point, detests smoothness enough to become pointed.
Also, never trust Microsoft.
You may find it easier to function in modern society without having such a strictly literal view of language. Idioms and metaphors do exist.