Sam Altman Is Dangerous To Silicon Valley

14 Jun 2024 · 55 min

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Better Offline Podcast Episode Summary

Episode Title

Sam Altman Is Dangerous To Silicon Valley

Host

Ed Zitron

Episode Overview In this episode, Ed Zitron discusses the controversial figure Sam Altman, his rise to power in Silicon Valley, and the implications of his leadership and promises regarding artificial intelligence. The episode features insights from Bloomberg’s Ellen Huet, focusing on how Altman, considered a non-technical founder, has amassed significant influence and wealth without a solid track record of success in the tech industry.

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Key Themes and Discussions

  1. Sam Altman's Accumulation of Power
  2. Altman has built a reputation and influence in Silicon Valley over the past decade.
  3. He is described as having leveraged relationships with tech industry leaders like Reid Hoffman and Brian Chesky.
  4. Recent events have called his decisions and leadership into question, particularly regarding OpenAI’s priorities and product safety.
  1. Concerns Over AI Safety and Accountability
  2. Discussion on OpenAI’s controversial decisions, including the resignation of researchers over safety concerns.
  3. Allegations against Altman, including deception regarding company operations and product launches.
  4. The potential consequences of Altman’s leadership style and prioritization of growth over safety.
  1. Critique of Altman’s Promises
  2. Zitron argues that Altman's ambitious claims about AI could lead to detrimental outcomes for the tech industry.
  3. OpenAI is experiencing stagnation and high operational costs, questioning the sustainability of its business model.
  4. Altman's focus on rapid growth and monetization is viewed as risky, particularly without clear paths to profitability.
  1. The Role of Relationships in Silicon Valley
  2. The episode highlights how Altman has navigated the tech landscape through strategic networking.
  3. His connections with influential figures and organizations have helped him secure funding and support for OpenAI.
  4. Discussion on whether relationships and charm outweigh technical expertise in leadership roles within tech.
  1. Ellen Huet's Insights on Altman’s Character
  2. Huet elaborates on Altman's background, his early career, and the relationships that have shaped his trajectory.
  3. She reflects on the importance of understanding Altman’s character and the implications of his decisions for the tech landscape.
  4. The conversation raises questions about trust and accountability in leadership within the rapidly evolving AI sector.
  1. The Broader Implications for Tech Industry
  2. Zitron expresses concerns about the potential for a tech bubble, driven by hype rather than sustainable innovations.
  3. The episode suggests that the tech industry needs a shift back to creating solutions that genuinely address societal needs.
  4. The looming threat of a backlash against tech leaders who prioritize profit over ethical considerations and consumer trust.

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Key Takeaways

  • Altman's Influence: Sam Altman’s rise in Silicon Valley is characterized by strategic relationships but raises questions about his accountability and the implications of his promises regarding AI.
  • AI Safety Concerns: The tech industry's rapid advancement in AI must be balanced with ethical considerations and public safety.
  • Network over Expertise: The discussion suggests a worrying trend where charm and connections may be valued over genuine technical expertise in leadership roles.
  • Need for Realignment: A call for the tech industry to focus on sustainable innovations that genuinely solve real-world problems and restore public trust.

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Conclusion This episode of "Better Offline" provides a critical examination of Sam Altman’s role in Silicon Valley and the potential risks associated with his leadership style and promises surrounding AI. The conversation emphasizes the need for accountability and a return to creating meaningful technology that serves society rather than merely benefiting the elite.

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Transcript

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0:00This is an iHeart Podcast.

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2:12Better Offline. As I discussed in the last episode, Sam Altman has spent more than a decade accumulating power and wealth in Silicon Valley without ever having to actually build anything. using a network of tech industry all-stars like LinkedIn co-founder and investor Reid Hoffman and Airbnb CEO Brian Chesky to insulate himself from responsibility and accountability. Yet things are beginning to fall apart as years of half-baked ideas and terrible, terrible product decisions have kind of made society sour on the tech industry. And the last month has been particularly difficult for Sam, starting with the chaos caused by OpenAI blatantly mimicking Scarlett Johansson's voice for the new version of ChatGPT, followed by the resignation of researchers who claim that OpenAI prioritised, and I quote, shiny products over AI safety, after the dissolution of OpenAI's safety team.

3:12I know, it's almost cliché. Shortly thereafter, former OpenAI board member Helen Toner revealed that Sam Altman was fired from OpenAI because of a regular pattern of deception, one where Altman would give inaccurate info about the company's safety processes on multiple occasions. And his deceit was so severe that OpenAI's board only found out about the launch of ChatGPT, which by the way is OpenAI's first product that really made money, arguably the biggest product in tech. You want to know how they found out about it? Well, they found out when they were browsing Twitter. They found out then, not from the CEO of OpenAI, the company which they were the board of.

3:51Very weird. Toneur also noted that Altman was an aggressive political player, with the board, correctly by the way, worrying the, and I quote again, that if Sam Altman had any inkling that the board might do something that went against him, he'd pull out all the stops, do everything in his power to undermine the board, and to prevent them from even getting to the point of being able to fire him. As a reminder, by the way, the board succeeded in firing Sam Altman in November last year, but not for long, with Altman returning as CEO a few days later, kicking Helen Toner off of the board, along with Ilya Sutskeva, a technical co-founder that Altman manipulated long enough to build ChatGPT, and then ousted him the moment that he chose to complain.

4:34Sutskeva, by the way, has resigned now. He's also one of the biggest technical minds there. so how is open ai going to continue anyway last week a group of insiders at various ai companies published an open letter asking for their overlords to the heads of these companies for the right to warn about advanced artificial intelligence in a monument genuinely impressive monument to the bullshit machine that sam altman has created while there are genuine safety concerns with ai there really are there are many of them to consider these people are desperately afraid of the computer coming alive and killing them, when they should fear the non-technical asshole manipulator getting rich, making egregious promises about what AI can do.

5:17AI researchers, you have to live up to Sam Altman's promises. Sam Altman doesn't. This is not your friend. The problem is not the boogeyman computer coming alive. That's not happening, man. What's happening is this guy is leading your industry to ruin. And the bigger concern that they should have should be about what Leo Aschenbranner, a former safety researcher at OpenAI, had to say on the Dwarkesh Patel podcast, where he claimed that security processes at OpenAI were, and I quote, egregiously insufficient, and that the priorities at the company were focused on growth over stability or security.

5:51These people are afraid of OpenAI potentially creating a computer that can think for itself that will come and kill them, at a time where they should be far more concerned about this manipulative con artist that's running open AI. Sam Altman is dangerous to artificial intelligence, not because he's building artificial general intelligence, which is a kind of AI that meets or surpasses human cognitive capabilities, by the way. Kind of like data from Star Trek. They're afraid of that happening, when they should be afraid of Altman's focus. What does Sam Altman care about? Because the only thing that I can find reading about what Sam Altman cares about is Sam Bloody Altman.

6:32And right now, the progress attached to Sam Altman actually isn't looking that great. OpenAI's growth is stalling, with Alex Kantrowitz reporting that user growth has effectively come to a halt based on a recent release claiming that ChatGPT had 100 million users a couple of weeks ago, which is, by the way, the exact same number that the company claimed ChatGPT had in November 2023. ChatGPT is also a goddamn expensive product to operate, with the company burning through capital at this insane rate. It's definitely more than$700 ,000 a day. It's got to be in the millions, if not more. It's insane.

7:12And while OpenAI is aggressively monetizing ChatGPT, both the customers and the businesses, it's so obviously far from crossing the break-even Rubicon. They keep leaking and they'll claim, oh, I didn't put that out there. They keep telling people, oh, it's making billions of revenue, but they never say profit. And eventually someone's going to turn to them and say, hey man, you can't just do this for free or for negative. At some point, Satya Nadella is going to call Sam Altman and say, Sammy, Sammy, it's time. Sammy, it's got to be a real business. I assume he calls him that because of supernatural.

7:50But as things get desperate, Sam Orwell's going to use the only approach he really has, sheer force of will. He's going to push open AI to grow and sell into as many industries as possible. And he's a specious hype man. He's going to be selling to other specious hype men. The Jim Cramers of the world are going to eat it up. And they're all, all of them, the Mok Benioffs, the Sachin Nadellas, the Sundar Peshais, they're all desperate to connect themselves with the future and with generative AI. And those that he's selling to, the companies brokering deals, yes, even Apple, they're desperate to connect their companies to another company, which is building a bubble, a bubble inflated by Sam Altman.

8:36And I'd argue that this is exceedingly dangerous for Silicon Valley and for the tech industry writ large, as executives that have become disconnected from the process of creating software and hardware follow yet another non-technical founder hocking unprofitable, unsustainable, and hallucination-prone software. It's just very frustrating. If there was a very technical mind at these companies, they might walk away. And I'm not going to give Tim Cook much credit. But looking into it, I can't find any evidence that Apple is buying a bunch of GPUs, the things that you use to power these generative AI models.

9:12I found some research, an analyst, suggesting that they would buy a lot, but now OpenAI is doing a deal with Apple to power the next iOS, and it's interesting. It is interesting that Apple isn't doing this themselves. Apple, a company with hundreds of billions of dollars in the bank, I believe, that pretty much prints money, that alone makes me think it's a bubble. Now, it might look like an arsehole if it comes out they have, but also, why are they subcontracting this to open AI when they could build it themselves, as Apple has always done? Very strange. It's all so peculiar. But I wanted to get a little bit deeper into the Sam Altman story.

9:56And as I discussed last episode, Ellen Hewitt of Bloomberg, she's been doing this excellent reporting on the map, and joins me today to talk about the subject of her recent podcast, Sam Altman's Rise to Power.

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12:03Seniorliving.com. Equal housing opportunity. So tell me a little bit about the show you're working on. The show is the new season of Foundering, which is a serialized podcast from Bloomberg Technologies. So this is season five. And in every season, we've told one story of a high-stakes drama in Silicon Valley. I was also the host of season one, which came out several years ago. It was about WeWork. And we've done other companies since then. And season five is about OpenAI and Sam Altman. And I think we really tried to, you know, cover the arc of the company's creation and where it is now. But in doing so, we really tried to do a character study of Sam Altman.

12:45Like, he's a very important person in the tech industry right now with a lot of power. And we really wanted to ask ourselves the question and to help listeners ask themselves the question, should we trust him? Should we trust this person who is currently in a position of a lot of influence and about whom there have been very serious, you know, allegations and questions raised about, you know, to put it in the words of the OpenAI board, his not consistently candid behavior? And I think it's, you know, my hope is that we give listeners a chance to hear kind of the whole story and this like broader, you know, when there's news that's happening, it can happen so quickly, it's hard to get a step back.

13:32and I think what the show really does is it collects a lot of information in one place and we also have lots of new information that you won't hear anywhere else and interviews with people who, you know, have worked with Sam, who knew him when he was younger. We have an interview with Sam's sister, Annie, from whom he is estranged and there's a lot of material in there, I think, that tries to get closer to this answer of like, what should we make of this person? How should we think about checks and balances of power? when we have these companies that are, by all appearances, gathering a lot of power, and therefore the people who are running them have a lot of power as well.

14:10So we have, it's a five-episode arc, five-episode season, and the first three episodes are out now to the general public, and the last two will come out on subsequent Thursdays, and if you would like to binge the whole season right away, the episodes are available early to Bloomberg.com subscribers. So you've just started this series about Sam Altman and his upbringing and also the growth of OpenAI and Lubed and everything. Who are the people that have helped him get where he is today, though? So the making of Sam Altman is a really interesting part of the overall story of Sam Altman. Many people know him as the CEO of OpenAI because that's the role he's been in when he has risen to prominence beyond Silicon Valley.

15:03I think for many years he was well-known in Silicon Valley, but now he's kind of a household name. And so it's important to understand where Sam came from. He's been in the Valley since 2005, I think is when he started college, 2004, 2005 at Stanford. And he dropped out and then he joined Y Combinator, the now famous startup accelerator. But he was actually part of the first cohort of founders ever in NYC. And that included Twitch as well, right? Yes, including the co-founders of Twitch and of Reddit. And so Emmett Shear, for those who know Emmett Shear, has a very short 72-hour cameo in the OpenAI Sam Albin firing saga.

15:48But yes, Emmett and Sam were both in the same YC batch. So when we think about Sam's early career in Silicon Valley, I think what's important to know is that he rose very quickly in part because he was very successful in making these strategic, advantageous friendships and connections with already established people in the Valley. The most important one is Paul Graham, who is the, you know, one of the founders of Y Combinator and, you know, basically like immediately took Sam under his wing when Sam joined this first batch of YC. And, yeah, Paul's a really important mentor to Sam. He's kind of the first person who really sees in Sam this, you know, ambition, this hunger for power, this, like, drive to really build bigger and bigger companies.

16:42even when, you know, they met when Sam Altman was 19. So Paul like sees him as a teenager and sees this future potential. And so, yes, you know, not only did Paul become a mentor to him and sort of helped build Sam's profile over those early years because he would, you know, Paul Graham is very famous for writing these essays about how to build startups and how to build the best startups. And if you're at all interested in building startups, you've read many of them. They're kind of like almost like a startup Bible. And in many of them, he extols the virtues of Sam Altman. He talks about Sam's ambition.

17:16He talks about Sam's cunning, his ability to make deals and think big. But never actually think Sam Altman has done, is what I've found. Yeah, there are some interesting, you know, I've read many of the things Paul has written about Sam. Some of my favorite ones include Paul writing that within three minutes of meeting Sam, this was when Sam was 19, Paul thought to himself, ah, so this is what a young Bill Gates is like. Or, you know, this is what Bill Gates was like at 19, I think is the exact quote. So, you know, he really built him up in this way. And I do think Paul had like unique insight into Sam.

17:52Like they were close. They in many ways I'm sure still are. but it is this interesting role where you know paul met sam when he really didn't have much to his name and he really elevated him early on through his writings as this like startup founder to emulate right that other founders should be emulating sam and then of course as sam progresses in the valley he also starts to write these like startup wisdom essays quasi vacuous in a similar style to paul and then of course the most important thing that happens is that in 2014 when paul decides he no longer wants to run Y Combinator, which at this point is a much bigger vehicle than it was when Sam first started.

18:30It's no longer just a few stops. Totally. It has produced Stripe, Dropbox, Airbnb. Tens and now hundreds in the cohorts. This is a big job, right? Like running Y Combinator. And when Paul wants to hand it off to someone, you know, he has said that the only person he considered giving this to was Sam. So in 2014, when Sam is, I believe, 28 years old, he becomes president of Y Combinator. And this is, you know, he had started a startup. It didn't really work. He sold it and was starting to dabble in angel investing. And at that point, Paul really elevated Sam to this new position of power. And then he ran YC for a while and then started OpenAI.

19:06And in starting OpenAI, he also leveraged these very useful connections with particularly powerful people who could help him, such as Elon Musk, who was able to give the vast majority of the pledged funding to start OpenAI. Later, when Elon Musk splits from OpenAI, Sam makes this very powerful partnership with Satya Nadella to help fund OpenAI. Another important partnership that Sam has made, you know, much earlier on was this friendship with Peter Thiel. And one of the things Peter Thiel does is also, you know, gives him millions of dollars to start investing. This is like before Sam takes over at YC.

19:44With hydrazine, right? Yeah. And, you know, another thing that Paul did that What really Paul Graham did that really helped Sam was also he gave Paul had the opportunity to be one of the first investors in Stripe. He was offered the chance to invest$30 ,000 for 4 % of Stripe, which, of course, now that Stripe is enormous, we all know how valuable that was. And Paul split it with Sam. He was like, oh, I might as well share this with Sam. So Sam has said that that$15 ,000 for 2 % of Stripe has been, you know, one of his best performing angel investments ever. My question is always where he got$15 ,000 from.

20:22He was still working on Looped at the time. It's funny how privileged it was. Anyway. Yeah. My guess is$15 ,000 was, I don't actually know this, but my guess is$15 ,000 was not hard for him to pull up. And it's one of those things where it really is access and relationships are the sorts of things that can build a career and can lead to great wealth. Like Sam is now, by our own internal accounts and by other lists, a billionaire. And this money comes from, not from OpenAI, but from these angel investments that he's made early on that have been enormously successful. So you called him in one of the titles, the most Silicon Valley man alive.

21:02Is this what you're getting at, this kind of power player mentality? Yeah, I think it reflects a few things. One, that even though he's in his late 30s, he's been a player in Silicon Valley for such a long time, close to two decades. And also that he's just someone who is extremely well connected. So even before he took over Y Combinator, which I think you could argue is kind of king of the startup world in some sense. Like Y Combinator is like, you know, the top accelerator. At least the early stage. Totally. Even before he took over at Y Combinator, I think he was extremely well connected. He's very social.

21:39He's very helpful. He's very efficient. Like many people have told me stories in which he, you know, calling Sam and talking for five minutes has solved their problem because he knows exactly the right person to call to fix it. Or, you know, he's really good at making deals. I think it's just clear he's extremely well integrated into this world and has very successfully moved up the Silicon Valley status ladder to the point where he is now, which is kind of, you know, one of the, you know, he's the CEO of the one of the arguably hottest companies in the Valley right now. And I think that that's not luck, right?

22:15Like he didn't just come up with, he's not like a nobody who came up with an idea. It's like he has the connections and has parlayed his connections into power to bring him to the point he is now. So in your experience talking to people about Sam Altman, how technical is he, do you think? What have you heard? Because you say there he wasn't lucky, but he also does not appear to have successfully run a business. Because Loot shut down two people. Well, two executives tried to get him fired from there. He got fired from Y Combinator, which did very well. But at the same time, YC was basically a conveyor belt for money at one point.

22:51Not so much recently. It just, it feels weird that this completely non-technical, semi-non-technical guy has ascended so far. My sense is that's not maybe the most fair description. Like, I think Sam is incredibly smart. And people say this a lot. And, you know, I believe them. I think his special skill, you know, he obviously knows how to, like, he's an engineer. He has training. I'm sure he can build a lot of stuff. It seems like his comparative advantage, his special skill is relationships, deal making, figuring out who exactly is the right person to help him in whatever he's really trying to get done and figuring out the best way to get something to happen.

23:32You know, one of the people I spoke to is someone who knows Sam from when he was younger and knows him personally and said that his superpower is figuring out who's in charge or figuring out who is in the best position to help him and then charming them so that they help him with whatever goal he's trying to get done. And I think that, like, yeah, one could argue that that's actually a really good skill set if you want to build a very big company, which, you know, I think at this current moment he has, right? Like, OpenAI is really, you know, you can, there's a lot that you can say about whether they're upholding their original mission or that, you know, that's up for debate.

24:12But I think that they've obviously been commercially successful so far. so it feels like silicon valley on some level i just to give some thoughts here within the two episodes i'm doing here the pattern i've seen with sam altman is that everyone seems to want him to win and there's almost a degree of they will make it so have you seen anyone who's really a detractor or anyone who's not pro Sam Altman? Because it's interesting how few people are in tech. Well, there is, I won't get too into it because this is in some of future episodes, which will drop in future weeks. But, you know, I would say in some of the conversations that I've had off the record about people, in some of the conversations I've had off the record with people about Sam, I think, you know, my general impressions are people often do find him impressive in terms of what he has gotten done.

25:14You know, the size and scale of his ambitions and the way that he has generally been able to make that happen. I think there's also a lot of people who, you know, are willing to privately share some gripes that they might have about him. Also, you know, in recent weeks, we've seen people be a lot more public about some of those gripes. We have Helen Toner, a former board member at OpenAI who voted to remove Sam last November, saying publicly in the last few weeks that Sam lied to her and the other former board members, that his misdirection made them feel like they couldn't do their jobs. And she has also said that people were intimidated to the point where they did not feel comfortable speaking more publicly about negative experiences they'd had about Sam, that they are afraid to speak more publicly about, you know, times that he has not been honest with them or has, you know, has in which they've had challenging experiences.

26:15And that has also been reflected in some of the private conversations I've had in which people, you know, they might have complaints or they might have had like challenging situations with him. And I think they just feel like the risk calculus It's not worth it to come out and say something like that. But, you know, there have been bits and pieces where people have come out and said things that, you know, Sam has, you know, another thing that the board members have said was that Sam had been deceptive and manipulative. And that's also followed up by or not followed up. There was also, I think, back in November, a former OpenAI employee who had tweeted something publicly about that, saying that Sam had lied to him on occasion, even though he had also always been nice to him, which I think is a very interesting combination of characteristics.

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27:03Isn't that Silicon Valley, though? I'm afraid of dealing with them, but they were so nice to me. And yeah, of course, that person has not elaborated more publicly about what they meant. I think this is why people are asking themselves these questions, which is like, you know, the more that we hear about what the board was thinking before they decided to fire Sam, I think the more people are wondering about what are the patterns of behavior that he shows that led to the board trying to make this drastic move. yeah that's actually an interesting point so when sam orton was fired from open ai there was this very strange reaction from silicon valley including some in the media where it was almost like a hunger games everyone doing the symbol thing where everyone was like oh we got to put sam orton back in isn't it kind of strange we still don't know why he was actually fired though i mean helen toner has elaborated like i've never seen a have you seen anything like this in your career i think that it has been surprising that there has not been more of a clear answer um i think you know as as as time has gone on like we have heard a little bit more like i think helen toner has you know to her credit tried to give more information in in recent weeks about what happened.

28:32I think, you know, people were obviously asking this question six months ago. And so I think like there's been a little bit of a delay in trying to get this answer. And I wonder if maybe there just isn't like a very neat answer to it. And so and then in that absence, we get this kind of more of a like murky, multifaceted, multivoiced answer. But yes, I agree that it is sort of surprising that there hasn't been more clarification on what exactly happened or a little bit more granular detail about what led up to it. So on to the AI hype in general. Said that a bit weird, but I'll keep going. Why do you think there's such a gulf between what Sam Altman says and what ChatGPT can actually do?

29:24What Sam Altman says, what are you talking about specifically? As in he says it will be a super smart companion. Yeah, yeah, yeah. That he'll be all of these things. Well, this is something that we get into in episode three, which is a personal interest of mine, which is kind of the psychology of the AI industry right now. And, you know, I what I find so interesting about this and what we try to delve into in episode three and kind of throughout the series is these kind of like extreme projections about AI. And in the industry, you see both positive ones and negative ones. And I think, you know, the negative ones, that's what looks like AI doomerism, AI existential risk, sometimes called AI safety, depending on your point of view.

30:04But, you know, it's these projections that, you know, superintelligence might very quickly and very soon learn to self-improve in a way that allows it to rapidly outstrip our control and our capabilities and could lead to the extinction of humanity. There are so many interesting things to say about the psychology of believing that our human race might either be wiped out or incredibly changed within our lifetimes. And we get into that in episode three. I really wanted to get into the psychology of someone who believes that AI doom is just around the corner. And so we talked to someone who sort of became convinced of this belief soon after the 2016 AlphaGo matches in which the Go playing AI beat the world's champion in Go.

30:53And he talks about, yeah, deciding not to make a retirement account because he was like, what is the point? By the time I reach retirement age, either the world will be dramatically different and money won't matter or we'll all be dead. And I think that even though some people might scoff at that, that's like a real belief that people believe that these extreme possible scenarios are in our near future. And on the other hand, we also see extreme projections in a positive direction. You know, this idea that AI is going to unlock a whole new era of human flourishing that we might expand beyond our planet, that we might be able to give...

31:34Say what? Abundance. Abundance, right, exactly. You know, one of the things we do, I believe in episode three, is do a little bit of a supercut of Sam Albin talking about abundance. It's pretty clear that this is a way that he likes to frame our AI future is going to be this future in which everyone has plenty, right? Everyone has, you know, access to intelligence, abundant energy, abundant access to superintelligence that can help us live kind of our best lives and beyond our wildest dreams. Right. And I, you know, obviously Silicon Valley is a place where people like to make grandiose statements, but this is beyond that, right?

32:15This is not just, this is not just like, you know, we joked about WeWork, WeWork's mission statement was to elevate the world's consciousness. Like, well, galaxies of human flourishing for eons beyond us, like, that is on another scale, right? Like, we're talking about something that is sort of at an unprecedented level of extreme rhetoric. And I think that's really interesting. I think it is a very powerful motivator, both in a, you know, in the Doomer sense and also in the Abundance sense, people believing that what they're working on is the most important technological leap forward for humanity.

32:50talk about a motivating reason to work on this technology, right? Talk about a way to feel powerful or feel like you're making a huge difference. I think that's a really key part of what's driving a lot of work in AI right now. It's driving a lot of work, sure. But with Altman himself, there is this gulf. It is a million mile gulf between the things he says and what ChatGPT is even on the most basic level capable of doing and will be capable. And it just feels like, it almost feels like he's become the propagandist for the tech industry. And it's very strange to me how far that distance is. Because you've got the AI doomers and the AI optimists, I guess you'd call them.

33:38But Altman doesn't even feel like he's in with either. He's just kind of, he'll say one day that he doesn't think it's a creature. The next one he'll say it's going to kill us all. It all just feels like a PR campaign, but for nothing. Yeah, it has been interesting to try to answer the question. You know, one of the questions we tried to answer in the podcast is, does Sam actually believe, you know, because as you mentioned, there are some early clips of him. You know, when I say early, I mean around the time of founding OpenAI 2015 or so. there's some clips of him talking about um you know saying somewhat jokingly that ai might kill us all but there's also this uh you know very famous blog post that he wrote in 2015 in which he says that you know basically super intelligence is one of the most serious risks to humanity you know full stop and so it's clear that at some point in his life he believed kind of what we might now call a more doomer-y outlook.

34:37But as time has gone on, he has, you know, offered views that are a little bit more measured and more positive. You know, he tends to, you know, in his big media tour of 2023, he tended to talk about how AI was going to, you know, his projection was that AI would radically transform society, but that it would be net good, right? That, like, overall, we would be glad that this happened and that it would improve lives, even if in the short term, or for some people, it might prove to be bringing a lot of challenges as well. And so it is, you know, I think one of the interesting things about him is it is a little hard to pin down exactly what he thinks.

35:18I think you're right that I wouldn't consider him like a gung-ho, effective accelerationist. I would not consider him a doomer. He is like somewhere in this large gulf in between there. But I think he's also smart enough to know that making grandiose projections about what AI could bring is a compelling story, right? Like is a story that he can help sell by being like a spokesman for it. And often that is the role of a CEO is to be a really good storyteller, to bring the pitch of the company to the public, to investors, to potential employees, to customers, to try to sell them on this vision of the future and I do think Sam is good at that there is an interesting tidbit in episode three in which we interview a fiction writer who was actually hired on contract by open AI to write like a novella about AI futures and things like that and yeah he just talks a little bit about you know the novella is not I think in active use within open AI but they did at some point see value in commissioning it.

36:30And I think, you know, something that the author, Patrick House, explains to us is, you know, that opening eye, just like many other startups, is really motivated by story, right? And that Sam Altman is inspired by fiction, you know, is inspired by certain kinds of sci-fi. I think this is not unique to Sam. Many founders in Silicon Valley, you know, Elon Musk has talked about this as well, are driven to create things in part because of what they read about when they were younger, these dreams of the future. And so it's just interesting to get his perspective on how motivating a story can be and how motivating this compelling story of like, oh, we're building something that's going to change the course of human history.

37:11Like, you just couldn't ask for a more powerful motivating force. so as altman accumulates power and as he kind of ascends the top of open ai do you think he's done there do you think there's going to be another thing he starts because it feels like you've discussed like ubi and all these other things do you think he has grander ideas that he wants to pursue well obviously i can't speak to what's inside sam's head you don't know the man's mind But, I mean, past indicators would suggest yes. Like, I think he has proven pretty consistently that he's someone who, you know, is, you know, as much as he might focus on one project with a lot of effort, like, he is cooking things on the side.

38:00Like, this is a man, this is going to be an extended metaphor, but this is a man working at a stove that has, like, six burners, not one. And, you know, he, we already know that. What'd you say? Sorry. He's got a big house. He's got multiple houses. The, you know, we already know that, you know, in addition to running OpenAI, he has funded and or helped prompt the founding of or has, you know, been very involved in investing in and supporting other startups that, you know, are part of this kind of ecosystem of businesses that are connected to an AI future or might benefit in an AI future. So, for example, Helion, which is a nuclear fusion company, which he has invested a ton of money into, I think he has said publicly that, you know, his vision is that this is a potential way to provide abundant energy that could then power the technology that we need to, you know, improve AI to the level that we're hoping that it can get to or that he's hoping that it can get to.

39:07At the same time, you know, we've talked a little bit about universal basic income. This has been something that Sam has been a proponent of and an advocate of since at least 2016 when he was running Y Combinator and they started a side research project to study universal basic income by giving cash payments to families in Oakland of, I believe,$1 ,000 a month. That research project is still ongoing. It's now moved away from Y Combinator and is associated with Open Research, which is, I believe, funded by OpenAI. And so it has kind of moved with Sam to his new role. and of course he also co-founded this company called world coin which used these um silver orbs machines to scan uh to take pictures of your um iris and give everyone register every individual human as like a unique human individual and to create this eyeball registry in which by which one could in the future distribute a universal basic income.

40:14So he's funding these energy companies. He's like involved in these sort of the sort of crypto eyeball registry project that will help distribute UBI in this future that he's imagining. Like, I think it's safe to say he's definitely thinking about things beyond just open AI for the future and imagining like, okay, well, if we have this piece that's growing, what else will we need to support it? And I'm sure there are other things he's working on that we don't even know about, right? Like I know he has also funded some like longevity bioscience projects and things like that. I guarantee he's thinking about stuff beyond what we know about.

40:51Final question. Why do you think the entire tech industry has become so fascinated with AI? Do you think it's just Altman or is it something more? I do think ChatGPT started heating up this interest that was already percolating a little bit in the tech industry. But it does seem like something about ChatGPT captured the public imagination, made people imagine very seriously for the first time how AI could affect their lives, their lives individually. It used to be kind of this abstract thing that was a little farther away. Or maybe you understood that you were interacting with AI sometimes, like when you would look at flight price predictors.

41:32Or Siri or Alexa or something. But I think as we talk about this in episode three, but ChatGPT wasn't even new technology. It was actually just a different user interface on a model that already existed, GPT 3.5. And so to me, that actually speaks, I guess, to the power of like making a technology accessible to everyone and in a way that was like easy to use. And, you know, for better or for worse, that kind of got a lot of people in this like public momentum of people thinking about AI feeling, you know, just feeling like it had rapidly increased its capabilities in a short period of time. and yeah something about that really um captured not just you know the minds but also the hearts of people and like like getting them really thinking about like what could a future like this look like and i think while some people were excited a lot of people also reacted with fear right and like i think in the valley like you will hear a lot of people more openly discussing their fears of sort of like job loss or just like dramatic social change that might come about in the next 10 or 20 years.

42:49The feeling I get in conversations that I have in and around San Francisco is, you know, even people who are pretty deep in this technology are uncertain about whether it's going to be overall good or bad. Like, they're just uncertain of how to look back on this time, like whether it will have ended up being a leap forward for humanity or something different.

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44:39Altman has taken advantage of the fact that the tech industry might not have any hyper-growth markets left, knowing that ChatGPT is, much like Sam Altman, incredibly adept at mimicking depth and experience by parroting the experiences of those that have actually done things. Like Sam Altman, ChatGPT consumes information and feeds it back to the people using it in a way that feels superficially satisfying. and it's quite impressive to those who don't really care about creativity or depth and like i've said it takes advantage of the fact that the techie ecosystem has been dominated and funded by people who don't really build tech as i've said before generative ai things like chat gpt anthropics clawed microsoft's copilot which is also powered by chat gpt it's not going to become the incredible supercomputer that Sam Altman is promising.

45:32It will not be a virtual brain, or imminently human-like, or a super smart person that knows everything about you, because it is, at its deepest complexity, a fundamentally different technology based on mathematics and the probabilistic answer to what you have asked it, rather than anything resembling how human beings think or act or even know things. Generative AI does not know anything. How can a thing think when it doesn't know. Eh? Anyone want to ask Brad Lightcap? Miramarati, Sam Altman, any of these questions just once? Hear what they fart out? No? Ah. While ChatGPT isn't inherently useless, Altman realizes that it's impossible to generate the kind of funding and hype he needs based on its actual achievements, and that to continue to accumulate power and money, which is his only goal, he has to speciously hype it, and he has to hype it to wealthy and powerful people who also do not participate in the creation of anything.

46:32And that's who he is. I've been pretty mean about this guy. I really have, but he does have a skill. He knows a mark. He knows how to say the right things and get in the right rooms with the people who aren't really touching the software or the hardware. He knows what they need to hear. He knows what the VCs need to hear. He knows quite aptly what this needs to sound like. But if he had to say what ChatGPT does today, what would he say? Yeah, yeah, it's really good at generating a bunch of text that's kind of shitty. Yeah, sometimes it does math, right? And sometimes it does it really wrong. Sometimes you ask it to do it.

47:11It can draw a picture. Hey, what do you think of that? These are all things, by the way, that if like a six-year-old told you, you'd be like, wow, that's really impressive. Or like a 10-year-old perhaps because that's a living being chat gpt does these things and it does it i know it's cheesy to say but in a soulless way but it really does that because and the reason all of this the writing and the horrible video and the images the reason it feels so empty is because even the most manure adjacent press release still has gone through someone's manure adjacent brain Even the most pallid, empty copy you've read has gone through someone.

47:50A person has put thought and intention in, even if they're not great with the English language. What ChatGPT does is use math to generate the next thing. And sometimes it gets it pretty right. But pretty right is not enough to mimic human creation. But look at Sam Altman. Look who he is. What has he created, other than wealth for him and other people? What about Sam Altman is particularly exciting? Well, he's been rich before, and his money made him even richer. That's pretty good. He was at Y Combinator. Don't ask too much about what happened there. Just feels like sometimes Silicon Valley can't wipe its own ass.

48:35It can't see when there's a wolf amongst the sheep. It can't see when someone isn't really part of the system, other than finding new ways to manipulate and extract value from it. And Sam Altman is a monster created by Silicon Valley's sin. And their sin, by the way, is empowering and elevating those who don't build software, which in turn has led to the greater sin of allowing the tech industry to drift away from fixing the problems of actual human beings. Sam Altman's manipulative little power plays have been so effective because so many of the power players in venture capital and the public markets and even tech companies are disconnected from the process of building things, of building software and hardware, and that makes them incapable or perhaps unwilling to understand that Sam Altman is leading them to a deeply desolate place.

49:27And on some level, it's kind of impressive how he succeeded in bending these fools to his whims, to the point that executives like Sundar Pichai of Google are willing to break Google search in pursuit of this next big hype cycle created by Sam Altman. He might not create anything, but he's excellent at spotting market opportunities, even if these opportunities involve him transparently lying about the technology he creates, all while having his nasty little boosters further propagate these bullshit, mostly because they don't know, or perhaps they don't care if Sam Altman's full of shit. Maybe it doesn't matter to them.

50:06It doesn't matter that Google search is still plagued with nonsensical AI answers that sometimes steal other people's work, or that AI in legal research has been proven to regularly hallucinate, which, by the way, is a problem that's impossible to fix. It's all happening because AI is the new thing that can be sold to the markets, and it's all happening because Sam Altman, intentionally or otherwise, has created a totally hollow hype cycle. and all of this is thanks to sam altman and a tech industry that's lost its ability to create things worthy of an actual hype cycle to the point that this spacious non-technical manipulator can lead it down this nasty ugly offensive anti-tech path the tech industry has spent years pissing off customers with platforms like facebook and google actively making their products worse in the pursuit of perpetual growth unashamedly turning their backs on the people that made them rich and acting with this horrifying contempt for their users.

51:06And I believe the result will be that tech is going to face a harsh reprimand from society. As I mentioned in the rock-com bubble, things are already falling apart. Web traffic is already dropping. And what sucks is the people around Sam Altman should have been able to see this. Even putting aside his resume, I've listened to an alarming amount of Sam Altman talk. and I'm a public relations person who the hell am I I'm someone who's been around a lot of people who make shit up I've been around a lot of people whose job it is to kind of obfuscate things and quite frankly Ormond's really obvious I'm not gonna do any weird lie to me-esque ways of proving he's lying he just doesn't ever get pushed into any depth no one ever asks him really technical questions, or even just a question like, hey, Sam, did you work on any of the code at OpenAI?

52:03What did you work on? I know you can't talk about the future, Sam, but how close are we actually to AGI? And if he says, oh, a few years, that's not specific enough, Sam. How about give me a ballpark? And then when a lies, again, you say, okay, Sam, how do we get from generative AI to AGI? And when he starts waffling, say, No, no, no. Be specific, Sam. This is how you actually ask questions. And when you say things like this, by the way, to technical founders, they don't get worried. They don't obfuscate. They may say, I can't talk about this due to legal things, which is fine. But they'll generally try and talk to you.

52:45Listen to any interview with any other technical AI person. Listen to them and then listen to Sam Altman. He's full of it. It's so obvious. and one deeply unfair thing with the valley is there are people that get held to these standards early stage startups generally do the ones that aren't handed to people like altman or alexis ohenian of reddit or paul graham or reed hoffman they don't get those chances because they're not saying the things that need to be said to the venture capitalists they're not in the circles they're not doing the right things because the right things are no longer the right thing for the tech industry.

53:27And when all of this falls apart, Sam Orman's going to be fine. When this all collapses, he'll find something to blame it on. Market forces, a lack of energy breakthroughs, unfortunate economic things, all of that nonsense. And he'll remain a billionaire capable of doing anything he wants. The people that are going to suffer are the people working in Silicon Valley who aren't Sam Allman. The people that did not get born with a silver spoon in each hand and then handed further silver spoons as they walked the streets of San Francisco. People that don't live in nine and a half thousand square foot mansions.

54:04The people trying to raise money who can't right now because all the VCs are obsessed with AI. The people that will get fired from public tech companies when a depression hits because the markets realize that the generative AI boom was a bubble. When they realized that the most famous people in tech have been making these promises for nobody other than the markets. Well, the markets need you to do something eventually, and I just don't think it's going to happen. And I think that we need to really think, why was Sam Altman allowed to get to this point? Why did so many people like Paul Graham, like reed hoffman like brian chesky like satia nadella back up this obvious con artist who has acted like this forever and what sucks is i don't know if the valley is going to learn anything unless it's really bad and i don't want it to be by the way i would love to be wrong i would love for all of this to just be like sam oldman's actually a genius turns out the whole thing's no no it's not going to happen and i worry that there is no smooth way out of this that there is no way to just casually integrate OpenAI with Microsoft.

55:17Because now there's an antitrust thing going in with Microsoft and acquiring InflectionAI, another AI company. And that's the thing. It feels like we are approaching a precipice here. And the only way to avoid it is for people to come clean, which is never going to happen. Or, of course, for Sam Altman not to be lying for HCI to actually come out of open AI. And by the way, it's going to need to be in the next year. I don't think they've got even three quarters left. I think that once this falls apart, once the markets realize, oh shit, this is not profitable. This is not sustainable. They're going to walk away from it.

55:57When companies realize that generative AI has given them a couple percent profit, maybe. They're going to be pissed because this is not a stock rally worthy boondoggle. This is not going to be pretty. When things fall apart for Nvidia, you're still over $1 ,000 when those orders stop coming in quite as fast. What do you think is going to happen to tech stocks? Startups are already having trouble raising money. And they're having trouble raising money because the people giving out the money are too disconnected from the creation of software and hardware. The only way to fix Silicon Valley perhaps is an apocalypse.

56:40Perhaps is people like Sam Altman getting washed out. I don't want it to happen. I really must be bloody clear. But maybe it won't be apocalyptic. Maybe it would just be a brutal realignment. And maybe Silicon Valley needs that realignment because this industry desperately needs a big bath full of ice and they need to dunk their head in it aggressively and wake the hell up. Venture capital needs to put money back into real things. The largest tech companies need to realign and build for sustainability so they're not binging and purging staff with every boom. And if we really are at the end of the hyper growth era, every tech company needs to be thinking profit and sustainability again.

57:26And that's a better Silicon Valley, because a better Silicon Valley builds things for people. It solves real problems. It doesn't have to lie about what the thing could do in the future so that it can sell a thing today. And I realize that sounds like the foundation of most venture capital. That's fine at the seed stage. That's fine at this moonshot stage where your early, early days. It is not befitting the most famous company in tech. It is not befitting a multi-billionaire. It is not befitting anyone, and it is insulting to the people actually building things both in and outside of technology.

58:02The people I hear from after every episode, they are angry. They are frustrated because there are good people in tech. There are people building real things. There are people that remember a time when the tech industry was exciting, when people were talking about cool shit in the future and then they'd actually do it. Returning to that is better for society and the tech industry. I just don't know when it's going to happen.

58:34Thank you for listening to Better Offline. The editor and composer of the Better Offline theme song is Matt Ossowski. You can check out more of his music and audio projects at mattosowski.com. M-A-T-T-O-S-O-W-S-K-I.com You can email me at ez at betteroffline.com or visit betteroffline.com to find more podcast links and, of course, my newsletter. I also really recommend you go to chat.wheresyoured.at to visit the Discord and go to r slash betteroffline to check out our Reddit. Thank you so much for listening. Better Offline is a production of Cool Zone Media. For more from Cool Zone Media, visit our website, coolzonemedia.com or check us out on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

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1:00:14Take financial possession of your apartment by December 31, 2025 and save. Discover more at brightviewseniorliving.com. Equal housing opportunity. Stop settling for weak sound. It's time to level up your game and bring the boom. Hit the town with the ultra-durable LGX Boom Portable Speaker and enjoy vibrant sound wherever you go. elevate your listening experience to new heights because let's be real your music deserves it the future of sound is now with lg x boom and for a limited time save 25 at lg.com with code fall 25 bring the boom x boom this is an iheart podcast

From the publisher

In this episode, Ed Zitron walks through how Sam Altman's ridiculous promises about the future of artificial intelligence could be ruinous for Silicon Valley, and speaks with Bloomberg's Ellen Huet about how Sam Altman - a non-technical founder with little business success - accumulated so much power.

See omnystudio.com/listener for privacy information.

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