In short
OpenAI vs the Pentagon (mass surveillance/autonomous weapons red lines, contract language, employee backlash), Anthropic’s simultaneous growth and federal pullback, prediction markets’ role in the Iran war (Kalshi/Polymarket bets on Khamenei/strike timing; insider-trading concerns), and a “Hard Fork Review of Slop” segment on AI-generated toddler YouTube videos.
Guests/backgrounds
Casey Newton (reporter; previously at The Verge; now at The New York Times per disclosure) and Kevin Roose (host; The New York Times per disclosure). Disclosures: Newton sues OpenAI/Microsoft/Perplexity for alleged copyright violations; Newton’s fiancé works at Anthropic.
Key claims
OpenAI’s Pentagon deal backlash led to subscription cancellations and “damage control” (blog-post contract excerpts; later amendment explicitly barring domestic surveillance of U.S. persons). Employee discontent includes Leo Gao criticizing “window dressing” and Max Schwarzer leaving for Anthropic. Anthropic is growing fast (Bloomberg: $20B annualized revenue) while Reuters reports State Department switching away from Claude. Prediction markets are “corrosive” in war contexts; Israel arrested people for classified-info bets. AI toddler videos use surreal, sometimes unsettling “engagement hacks” (e.g., animals squirting from toothpaste tubes; needle/color-injection doctor trope).
Notable examples
OpenAI contract amendment language on prohibiting deliberate tracking of U.S. persons; Kalshi voiding Khamenei bets; Polymarket allowing strike-date bets but not nuclear-detonation-date bets; YouTube alphabet videos with paint/goo transformations and “pink kudu” injection.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOA Wife's AI Fascination
0:11 to 1:40
A personal story about how an AI tool captivated the host's wife.
“Your laptop will help keep you locked in, even when it's bring-your-dog-to-work day.”
AI and Relationships
1:40 to 2:59
Discussing how AI interests can impact personal relationships.
“That we're sort of like interested in different things that we can kind of cross pollinate.”
OpenAI's Pentagon Deal Fallout
2:59 to 4:52
Exploring the implications of OpenAI's agreement with the Pentagon.
“out between the Pentagon and America's leading AI companies.”
Public Backlash Against OpenAI
4:52 to 6:04
Analyzing the public's reaction to OpenAI's recent decisions.
“So on Saturday, he hopped on X to talk about this and answer questions about the Pentagon deal, along with two other employees.”
Employee Discontent at OpenAI
6:04 to 8:21
Unpacking the employee reactions and discontent at OpenAI.
“Then on Monday, Sam admitted that he made a mistake.”
Anthropic's Dual Status
8:21 to 11:49
Examining Anthropic's rapid growth alongside its challenges.
“And then maybe more dramatically, Kevin, on Tuesday, Max Schwarzer, who was the post-training lead for OpenAI, a vice president of research at the company, announced that he was leaving.”
Federal Pushback Against Anthropic
11:49 to 14:01
Discussing the federal government's actions against Anthropics.
“If you're going to build a GPT-6 and 7 that is going to blow everybody's minds, those are the people you're going to need.”
State Department's AI Model Switch
14:01 to 15:00
Learn about the U.S. State Department's transition from Anthropic to OpenAI models.
“State Department has sort of started to comply with this order from President Trump to sort of stop using Anthropics models.”
Consumer Backlash and Business Impact
15:01 to 17:06
Explore whether consumer opposition to AI companies can impact their business.
“But because this is just the way the Trump administration works, everyone has just decided to defer to the president.”
The Threat of AI Nationalization
17:07 to 19:50
Discuss the possibility of government nationalization of AI companies amid growing power.
“And the particular way, by the way, that I think this is going to hurt OpenAI is they're gearing up to go out and build a lot of data centers around this country.”
Show all 31 chapters
Lessons from the Manhattan Project
19:51 to 22:50
Examine historical parallels between the Manhattan Project and the AI industry's future.
“Do they want to use it to create opportunity and safety and democracy for all?”
Soft Nationalization and Future Risks
22:51 to 25:56
Consider the implications and risks of soft nationalization in the AI sector.
“Manhattan Project and the AI industry is somewhat overstated.”
Introduction to Prediction Markets in War
28:00 to 28:30
Learn about the emergence of grim technologies like prediction markets in the context of war.
“Yeah, it seems like every new war brings along some grim new technology, and I would say that prediction markets are maybe grim technology number one for this conflict in Iran.”
The Impact of Current Events on Prediction Markets
28:30 to 30:30
Explore how recent conflicts have influenced the behavior and regulations of prediction markets.
“We talked about them way back in 2023 when they were sort of this new thing that was like kind of in this legal gray area that wasn't really being done at any scale yet.”
Controversies Surrounding Prediction Markets
30:30 to 32:30
Delve into the backlash against prediction markets and the ethical concerns they raise.
“They allowed people to bet on the dates of strikes on Iran and other details related to the war in Iran.”
The Dangers of Betting on War Outcomes
32:30 to 34:30
Understand why betting on military actions poses significant risks to society and governance.
“Yeah, that's your little call sheet bonus.”
The Limits of Prediction Markets' Insights
34:30 to 36:30
Examine the shortcomings of prediction markets in providing accurate real-world insights.
“It's also not clear what is public information and what is private information.”
Comparing Traditional Markets and Prediction Markets
36:30 to 38:40
Compare the implications of traditional stock markets with direct betting on war events.
“But for the most part, I just don't feel like we actually have a much better understanding of the world because all of these bets are happening.”
Regulatory Challenges and Future of Prediction Markets
38:40 to 41:30
Discuss the regulatory landscape and potential future developments of prediction markets.
“And, you know, maybe oil was one of them.”
Proposed Changes to Betting Regulations
41:30 to 42:00
Consider suggestions for changing how prediction markets operate and are accessed by users.
“Yeah, I have a proposed rule for these prediction markets.”
Discussion on Betting Regulations
42:00 to 42:37
Exploration of the ethics and logistics of betting on war.
“Which is that you should have to go to a physical place like you do for a casino.”
Hard Fork Review of AI-generated Content for Kids
44:47 to 45:10
Introduction to the issue of AI-generated slop on YouTube for children.
“Yeah, Kev, we have recently been alerted to the fact that YouTube has been beset by a bunch of AI-generated slop for toddlers, and it's time to take a look and see what we're dealing with.”
Examining AI-generated Alphabet Videos
45:10 to 47:11
Analysis of a bizarre AI video depicting animals and letters.
“So today, let's take a look at this emerging new genre of AI slop directed at kids with a new installment of the Hard Fork Review of Slop.”
Discussion on AI and Child Engagement
47:11 to 48:51
Debating the potentially harmful effects of AI content on kids.
“I have to say, I'm a little older than the target age for these videos, but I'm learning things myself.”
More Surreal Videos and Their Impact
48:51 to 51:52
Exploring the content of AI videos with surreal themes and their implications.
“All right, this next one, Kevin, shows animals turning into armored vehicles, trucks, and planes, going to show once again that a key theme in Slop for kids in 2026 is the transformation of animals.”
Introducing Arianna Leica
51:52 to 53:31
Welcoming a guest to discuss her findings on AI slop for kids.
“Why don't we wrap up with a lullaby about animated children tucking themselves into beds made out of fruit.”
Arianna's Research on AI Content
53:31 to 56:05
Arianna Leica shares her research on AI-generated videos for children.
“I wanted to just ask, like, first of all, how did you get interested in this?”
AI-Generated Content on YouTube Kids
56:05 to 1:04:32
Discussion on the prevalence and impact of AI-generated videos for children on YouTube.
“Is there like a detection system that you're plugging these things into?”
The Evolution of Disturbing Content
1:04:33 to 1:06:55
Exploration of how the nature of disturbing content has changed on YouTube and its implications.
“And again, what is so insidious here is that the people who are making these videos are counting on the fact that regular kids are going to go searching for K-pop demon hunters and Masha the Bear.”
Parental Guidance in the Age of AI
1:06:56 to 1:07:42
Discussion on the challenges parents face in monitoring AI-generated content for kids.
“And it might not be colors and shapes and the alphabet, but it does seem like the basic idea is just sort of turn your brain off and experience the raw visual stimuli for as long as, you know, we can get you to.”
Parental Guidance in the Age of AI
1:08:48 to 1:09:16
Discussion on the challenges parents face in monitoring AI-generated content for kids.
“Just ask anyone who's done it or anyone who's tried.”
Transcript
Automatic transcript. May contain errors.0:00Hard Fork Hosts:When you're at work, you never know when you'll be interrupted. But with the Dell Pro, powered by Intel Core Ultra with VPro, no matter what distracts you, your laptop won't. It's battery-optimized for the way you work, with built-in intelligence that quiets distractions when you need to focus. Your laptop will help keep you locked in, even when it's bring-your-dog-to-work day. Built for those who stay in the flow. The Dell Pro. Built for you. Dell.com slash Dell dash Pro.
0:33Arijeta Lajka:Casey something horrible has happened what's that my wife has fallen in love with an AI which AI so for background you know my wife is not like a very techie person she's not an early adopter she works in city government she's like a regular adopter like when it gets good she's interested but don't talk to her before then exactly and it just got good enough for her to take an interest And so yesterday, she discovered Claude Code and started using it to do some stuff at work. And now it's all she wants to talk about. We're like out at a party last night. And she's like, I just can't stop thinking about my coding.
1:10Arijeta Lajka:She had a dream about Vibe Coding last night. And maybe all of this is sort of some like karmic, you know, revenge for the Bing Sydney episode. But I do feel like I'm getting a taste of my own medicine here.
1:23Hard Fork Hosts:I mean, to me, this seems like your dream come true. Like, what does any man want more than his wife taking an interest in his hobby? This is like, could be one of the best things that's happened to you in a long time.
1:34Arijeta Lajka:It's true. It's true. I think we've always benefited in our marriage from the fact that we are. Are you speaking about our marriage or your marriage to your wife? My marriage to my wife. That we're sort of like interested in different things that we can kind of cross pollinate. And so I guess I want to ask you as someone who's in a relationship with someone who works in AI, like, how do you stop talking about it? Do you have like set hours where you're like, we're not going to talk about AI for this next hour? Here's what I'll say.
1:59Hard Fork Hosts:If I ever figure that out, you'll be the first to know. Okay, thank you. In my house, the few respites we get from AI during the week, I would say would involve Friday night episodes of RuPaul's Drag Race. That's a good solid one hour of not talking about AI. Okay. And yeah, outside of that, we're really monitoring the situation, Kevin. We are fully locked in.
2:58Arijeta Lajka:Well, Casey, we are now in week two of this incredible high-stakes drama that's been playing out between the Pentagon and America's leading AI companies. There's been a lot going on. We now have more clarity on why the deal between Anthropic and the Pentagon fell apart. We also know how this Anthropics supply chain risk designation is actually going into effect and impacting the way that government agencies are responding. And we have been learning this week about how OpenAI's deal with the Pentagon is shaping up. So lots to discuss here. But first, we should make our disclosures. I work at the New York Times, suing OpenAI and Microsoft in perplexity over alleged copyright violations.
3:37Arijeta Lajka:And my fiance works at Anthropics. Okay, let's start with OpenAI, because they are sort of the late arrival into this story, but in some ways the most dramatic. Since Sam Altman announced last Friday that OpenAI had arrived at an agreement with the Pentagon, we have learned a little bit more about that agreement. As a reminder, according to Sam Altman, this agreement did include some prohibitions on domestic mass surveillance and autonomous weapons system, basically the same two red lines that Anthropic had set out that were causing them so much trouble with the Pentagon. And I think it's fair to say, This provoked one of the biggest backlashes in that company's history.
4:16Hard Fork Hosts:It really did. We've seen it across social media. Many sort of top-up voted posts on OpenAI-related subreddits have been condemning this move. OpenAI has been scrambling to try to rebuild trust. But at the end of the day, Kevin, I think both the Pentagon and the OpenAI are saying to the public, you're just going to have to trust us. and the public is saying, well, we don't. Right.
4:43Arijeta Lajka:So there's been a lot of people canceling their ChatGPT subscriptions and switching over to Claude as a result of all of this, people who don't agree with the Trump administration or the stance that the Pentagon has taken here. And presumably because they're seeing some, you know, some pain in the cancellations department, as well as just a general feeling that this narrative is not going well for them, Sam Altman has been doing some damage control. So on Saturday, he hopped on X to talk about this and answer questions about the Pentagon deal, along with two other employees. And these questions were sort of the kinds of things you'd expect.
5:21Arijeta Lajka:You know, people asking, what did you guys agree to that Anthropic didn't? Where are your red lines? Who's going to be making the kinds of hard decisions during something like a war about how these models can and can't be used? What about this domestic mass surveillance thing? So I think he answered some of these questions, but really the thing that they did was also to release the language of this contract that had been in dispute, that had been the subject of so much speculation.
5:45Hard Fork Hosts:Well, they released what they called the relevant portion of the contract, but then we would see later commentary from experts in government procurement that said, essentially, look, until we see the entire contract, it's just very difficult for us to take at face value the idea that this is the only relevant language here. Right.
6:03Arijeta Lajka:So they did not release the whole contract, but they did release some relevant language from this contract with the Pentagon in a blog post. Then on Monday, Sam admitted that he made a mistake. He said we shouldn't have rushed to get this out on Friday. He also added that it looked opportunistic and sloppy. Or slop-ortunistic, to point a phrase. Yes, it was slopportunistic. And he announced that OpenAI was going to amend its deal with the Pentagon to explicitly rule out the use of OpenAI's tools for domestic surveillance of U.S. persons and nationals. And it includes the language, quote, The department understands this limitation to prohibit deliberate tracking, surveillance, or monitoring of U.S.
6:44Arijeta Lajka:persons or nationals, including through the procurement or use of commercially acquired personal or identifiable information. I found this all slightly confusing. Casey, do you understand what OpenAI has said and the various evolutions of its position on this?
6:57Hard Fork Hosts:Well, I think the key takeaways here is that they are saying that they have put in some amended language that will prohibit certain uses of their systems by the government. So, for example, they're going to prevent the government from using commercial data that they sort of acquire legally and sort of running that through GPT models for domestic surveillance. I just want to say, though, that there is always a high risk here for what I would call Jedi mind tricks, Kevin, and for the government, because we have seen Democratic and Republican presidents do this, right, of sort of going to the absolute limit of what the law will allow when it comes to surveillance of Americans.
7:40Hard Fork Hosts:And a way that they'll get around that is by saying, well, we're not doing surveillance, Kevin. We're doing some intelligence gathering, right? And so as annoying as it is to fixate on the semantics here, I'm telling you that whether or not you personally are surveilled will come down to semantics, right? And so that's why we're digging in the way we are.
7:59Arijeta Lajka:Okay, so still lots of questions about some of the details here. And I think there's a lot of doubt and concern among some employees of OpenAI that this actually did end up in a place that they're comfortable with.
8:11Hard Fork Hosts:Boy, is there some of that employee discontent spilled over onto X, where you had some employees saying essentially that they didn't trust their leadership either. An employee named Leo Gao called the contract language window dressing and pointed out that it still seems to give the Pentagon control over when to deploy autonomous weapons and just doesn't do much to address some of the other loopholes. And then maybe more dramatically, Kevin, on Tuesday, Max Schwarzer, who was the post-training lead for OpenAI, a vice president of research at the company, announced that he was leaving. And in his ex-post, while he was pretty vague, suggested that this was an important time and that he had come to really respect Anthropik's values.
8:54Hard Fork Hosts:And so he said he's going over to work there.
8:55Arijeta Lajka:Yeah. So what's your take on how the damage control is going for OpenAI? Do you think they have warded off the most heated criticism, or are people still really mad?
9:05Hard Fork Hosts:I do not think that they have stemmed the tide. I think they put a lot of effort into changing the narrative here. When I saw that they were doing that XAMA, that they had put up a blog post, that they were quoting at least some of the contract language, I thought, these guys are really going for it. that also told me that they were really scared. But here's the thing to remember, Kevin, most Americans just don't like AI very much. They did it in the first place. They didn't like it for all the normal reasons of, well, my social media feed is filling up with slop and my manager's telling me I have to use it every day or I'm gonna get fired.
9:37Hard Fork Hosts:When you add into that mix, it's potentially also gonna be used by your own government to spy against you or maybe kill you with a murder bot. Of course, Americans are gonna say, well, this fricking sucks, right? So I think this was kind of the strategic miscalculation that Sam Altman made was that, at least according to him, he thought he was going to get into this dispute and sort of be able to de-escalate it and sort of come in as the white knight and save the AI industry from the overreach of the U.S. government. And what he found out instead is they're still, they're kind of holding the bag of all of the discontent that the Pentagon whipped up with this forced policy change.
10:11Arijeta Lajka:Yeah, it's really interesting to me because I think my assumption had been that we were sort of over the era of like worker empowerment in Silicon Valley, Like years ago, sort of pre-COVID, we had all these like Google walkouts and all these employee protests over these military contracts. And I think a lot of CEOs and leaders at these companies sort of said, we're not doing that again. Like we're not going to give our employees veto power over the deals that we make or the contracts we sign. And it suggests to me what is going on at OpenAI right now that at least for them in their specific case where you do have, you know, this staff of elite technical talent that are not easily replaceable.
10:48Arijeta Lajka:There aren't that many people who know how to build and train these models. You actually do need to keep them happy. And so those people, maybe only those people, have significant leverage still.
10:58Hard Fork Hosts:Yeah. Let me make a sort of sweeping generalization, right? I think there's sort of like two major camps at OpenAI. One are the camp that have sort of been there for, let's say, three-plus years that are the real experts that you just mentioned that have this kind of critical knowledge for how to build next-generation frontier systems. that almost nobody else in the world has. And those people tend to just really care a lot about how the technology is used. These are people who joined OpenAI in part because it was a nonprofit, right? And like, there is like a solid core of those folks who are still working there.
11:31Hard Fork Hosts:And then there's a group at OpenAI that I'm just gonna call the meta people. Like the people that came over from meta a little bit more recently that are, you know, maybe a little bit more flexible in what they're willing to see their company do. And I don't think that they're gonna raise a big stink about this. The problem if you're OpenAI leadership is you actually need that original core, right? If you're going to build a GPT-6 and 7 that is going to blow everybody's minds, those are the people you're going to need. And so, yes, almost everything that we have seen over the past few days that they've tried to do damage control is aimed at those people.
12:03Arijeta Lajka:Okay, so that's a little bit of the drama going on at OpenAI. What is happening at Anthropic?
12:07Hard Fork Hosts:Printing money in two words, I would say. Well, I mean, you know, I wrote this in my newsletter this week, Kevin, but has an American technology company ever had such a good week and such a bad week at the same time? Explain. Well, so on the bad side, obviously, they're in a very heated fight with the Pentagon that continues, by the way. It seems like there is still some risk that perhaps the president will try to invoke the Defense Production Act to try to compel Anthropik to make the version of Claude that it does not want to make that would sort of do its bidding. and it seems also that this supply chain designation risk is now official.
12:43Hard Fork Hosts:We learned on Thursday that the Pentagon sent a formal letter to Anthropic. So if nothing else, this is going to result in a long and costly legal battle as Anthropic tries to ensure that American companies can still use it for non-military purposes, right? So there is actually an existential threat to the company that is buried somewhere inside there, and it is by no means over. Right. But on the good side... On the good side, Bloomberg reported this week that Anthropic is on track to hit$20 billion in annualized revenue. At the start of 2025, Kevin, they were on pace to earn about$1 billion in annualized revenue.
13:19Hard Fork Hosts:So this company has 20x'd over the past year. They were on pace to make about$9 billion by the end of 2025. So it has doubled in barely over two months, which speaks to the rise of Claude Code, right? And the overwhelming adoption of Claude in the enterprise. So in that respect, this really has become maybe the fastest growing American technology company of all time.
13:43Arijeta Lajka:Yeah. And like what's so strange about this sort of dual quantum state right now of Anthropic is like at the same time that they are printing money and people are signing up for Claude and they're switching from ChatGPT and like things appear to be going well for them. At the same time, they are also being pulled out of the federal government, right, forcibly. There was some reporting this week by Reuters that the U.S. State Department has sort of started to comply with this order from President Trump to sort of stop using Anthropics models. They have switched the model powering their sort of in-house State Department chatbot from Anthropics models to OpenAI, according to this memo seen by Reuters.
14:22Arijeta Lajka:And furthermore, this Reuters report said that the State Department is going back to GPT 4.1. Now, if you have not been tracking all of the model names and numbers as closely as we have, that is several generations ago. That's like an early 2025 model. And basically what that means is that the average college freshman with a chat GPT subscription now has access to substantially better AI tools than the Department of State.
14:49Hard Fork Hosts:It's not great for a lot of reasons, Kevin. And one of them, as the blog Lawfare covered this week, is that there appears to be no statutory authority for the president to do what he did. There is not a statute that lets the president just sort of declare that federal agencies cannot use individual software. But because this is just the way the Trump administration works, everyone has just decided to defer to the president.
15:10Arijeta Lajka:Yeah. I want to ask you about this other sort of interesting piece of OpenAI's response over the last week, which is that Sam Altman has said multiple times that he wants the Pentagon to extend the same deal to Anthropic that it extended to OpenAI. Do you think that is sincere? What is going on here? Why is Sam Altman saying, hey, if you're making these terms available to us, you should also make them available to other AI companies?
15:34Hard Fork Hosts:I think that that is the part of Sam that appears to be sincere in saying that he wants to de-escalate this conflict. He does not want the United States government to come in and nationalize the AI companies, at least not right now, right? And so maybe if OpenAI could reach some sort of agreement that would provide at least some protections for Americans and other AI companies would sign on to it, that would just sort of release the pressure on the industry overall. Now, of course, at the same time, it would buy him a lot of cover. And all of a sudden, people wouldn't be mounting these quit chat GBT campaigns because Sam could be on X saying, well, you know, Claude is doing the same thing.
16:10Arijeta Lajka:Do you think that's real? Like, how big a deal do you think this consumer opposition is? I mean, I, you know, I am somewhat jaded on this point because I can't count the number of times that people have said, you know, oh, we're all going to cancel our subscriptions to this thing or we're going to delete Uber or we're going to, you know, quit Facebook in protest. And like it never really seems to have much of an impact. But like, do you think in this case that enough people are mad about this at the consumer level that it could actually impact their business?
16:39Hard Fork Hosts:Not really. I think you're exactly right. I think that usually these things just tend to blow over in a few days. And I'm sure that OpenAI is counting on that. At the same time, though, Kevin, I think back to the lesson that Meta learned, which is that as it had its own series of controversies, by and large, people did not quit Facebook. They did not quit Instagram. But you know what they did do? Just kind of start to hate Meta as a company and develop really low trust in that company. And that winds up hurting Meta in all sorts of ways. And the particular way, by the way, that I think this is going to hurt OpenAI is they're gearing up to go out and build a lot of data centers around this country.
17:16Hard Fork Hosts:And there's already enormous backlash that we are seeing, right? We're starting to see it creep into our politics. And so if they are not able to sort of reverse the narrative and convince people that AI is going to have, like, hugely positive outcomes in their lives, I think you're going to see the data center opposition ramp up as a proxy for people's just kind of distrust of that company in general.
17:36Arijeta Lajka:Right. It's the visible, physical symbol of all of this. And for most people, the only one that is like anywhere near them. And so I think you're right. It could turn into a political problem for them, even if people aren't canceling their ChatTBG subscriptions en masse. I want to ask you about something else that I've been thinking a lot about this week, which is this idea that you mentioned of nationalization. There's been a debate happening on social media about this idea that if we are headed to a world with very powerful AI systems in it, as Dario Amadei calls it, a country of geniuses in her data center, that eventually that will just not be allowed to happen inside a private corporation.
18:16Arijeta Lajka:that the U.S. government, whether a year or two years or five years from now, at some point, will step in and say, hey, you guys built this really cool thing that's really useful and has all these important geopolitical and national security implications. We're going to just take that now. And you work for us now. And I'm curious what you make of that as a possibility, because some people who I consider quite serious and credible have been talking about this threat of nationalization for several years now. Yeah.
Read the full transcript
18:47Hard Fork Hosts:If you go to the sort of nerdy AI conferences that Kevin and I do, this comes up a lot at the tabletop role-playing games that people do during lunch, right? Is that at some point, a government of one or more countries kind of steps in and takes over the AI lab. I understand in this moment that that feels like a kind of sci-fi scenario, right? Like most of the time when you're using ChatGPT, you probably don't think this is a dangerous superweapon, and we need to ensure that this is being controlled by the president. At the same time, we are now at war with Iran. We know that these systems are embedded in the command and control operations of the military.
19:24Hard Fork Hosts:And so to some extent, they are already becoming weapons, right? So if you say to me, do I think that once these systems become three, four, five, ten times more powerful, the government will want to take an interest in them and potentially oversee their development and deployment, I absolutely believe that will happen. I see no reason why that would happen. And unfortunately, how that goes, I think, depends a lot on the quality of the government that is overseeing that AI, right? And like, what do they want to do? Do they want to use it to create opportunity and safety and democracy for all? Or do they want to, you know, mount an authoritarian takeover of the globe?
20:04Arijeta Lajka:So if you are a leader at one of these companies and you know that, you know, at least until 2028, we are likely to have sort of the same administration in power. If you believe that the technology is rapidly accelerating such that a year or two years or three years from now, we might have something like a superhuman country of geniuses in a data center. What does that mean you should do? I mean, one thing that I've been thinking about is like, should these companies be doing deals with the government at all? Right. If the lesson of the past couple of weeks is that the federal government is not a trustworthy counterparty in these negotiations and is going to insist on total control and obedience or else they're going to try to nuke your company.
20:44Arijeta Lajka:Like, I think a very rational response from these companies will be like, well, we're just not going to make any more deals with you. You're going to have to use some open source models for your state department and your your military and your treasury because it's just too risky for us as a business risk. And you can't be trusted with it.
21:01Hard Fork Hosts:I could see why that may seem somewhat rational to them, but I don't think that that is the tack that they're going to take. I mean, even this week, after everything that has happened with Anthropik, Dario Amadei is still out there saying, we were very close to an agreement with the Pentagon. We liked working with the military. We want to work with the military again, right? So I think that's very important to note. Dario did not throw up his middle fingers on his way out the door. He is still trying to reach some sort of agreement. And I think in part, that likely is to avoid the exact sort of scenario that you are describing, right?
21:31Hard Fork Hosts:You kind of want to keep the tigers at bay for just a little while longer at least while you maybe think through the rest of that scenario, which is admittedly a very difficult one.
21:42Arijeta Lajka:Yeah. I've been rereading The Making of the Atomic Bomb this week, which is Dario Amadei's favorite book, and he used to give it to all Anthropic employees, and there's still a bunch of copies at their headquarters. It's sort of the company book as far as their mission goes. And they see a lot of parallels between what they're building and the Manhattan Project. And so I went back and I've been rereading it. And the piece that struck me from that experience was just right before the bombs were dropped in 1945, there was this point where the scientists got really worried about how their creation was going to be used.
22:17Arijeta Lajka:And a number of them from the Manhattan Project sort of created these petitions and reports and tried to get them to the government and say like, hey, could you guys like not use this against a city, at least as like a first line, you know, act of war. And the military and the government sort of like pretended to hear them out. And then they just went ahead and bombed Japan anyway. And there was sort of this moment where it was like, we hear you, you're the scientists, you're the geniuses who made this all work, but now you're playing in our turf. And so we're gonna control the technology from here and like, thank you for your input.
22:49Arijeta Lajka:And like, I think the comparison between them Manhattan Project and the AI industry is somewhat overstated. And I think it breaks down in some key ways, one of which is like, that was a government project. You know, the Manhattan Project was paid for by the government. These were government employees. What we're talking about now are private companies that have been developing this thing outside the public sector. So I think there's some important differences. But I do worry that we are headed toward a moment where this stuff just gets so useful to governments and militaries and confers such a decisive advantage to the countries that control it, that the U.S.
23:22Arijeta Lajka:government, no matter kind of who is in power, is just going to say, like, this thing is too important to be left to the private sector.
23:27Hard Fork Hosts:Well, I mean, keep in mind that one of the original ideas for OpenAI was that it should be a government-funded project. But Sam Altman and his co-founders just came to the conclusion, correctly, by the way, that no government would give them the amount of money they needed to build this technology, right? And, you know, they just sort of quickly came to the conclusion that it was just going to have to be a private enterprise. But, you know, going back to the earliest days, there was thinking among the people that created this technology that the government was going to take an interest in it eventually.
23:52Hard Fork Hosts:Another reason, though, Kevin, why I find the current situation so vexing is that you and I both covered President Biden's executive order on AI, which I personally felt like was a pretty gentle way of attempting to regulate the industry. It was sort of like, you know, inform us about your safety testing, please, when you test these new models and sort of, you know, hold federal agencies to get ready for this technology. And the howls of protest on the right that said, how dare this administration come in and try to put these fetters on capitalism? We are going to lose to China because of this sort of nanny state behavior.
24:28Hard Fork Hosts:And then to see those same people come to power and now say, we are going to tell you exactly how you are going to build your models, what they're going to do for the military, or else we will destroy you. is just, like, the whiplash is insane.
24:44Arijeta Lajka:Yeah, we didn't like that government trying to control the tech industry, but this government trying to control the tech industry, that's just business as usual. That's fine. So I guess my worry, zooming out from all of the stuff that's been going on for the past two weeks, is that we are sort of living through, like, an early dress rehearsal for what something like nationalization of the AI companies could look and feel like. I don't think it's going to be as sort of cut and dry as like it was during World War II where like the government showed up to a bunch of like steel plants and was like, hey, we run these now.
25:15Arijeta Lajka:I think it's going to be kind of this soft nationalization like we've been seeing over the past week where it's like a little pressure to build your models differently. Oh, maybe could you remove some of those safeguards? Oh, maybe this is actually so strategically important that we need to be the people putting the clauses in the constitution of Claude or whatever that dictate how it will behave in these high stakes situations. and I think that is a more likely direction, but I would not take full sort of like brute force nationalization off the table entirely. I think there's a decent chance that something like that happens.
25:48Arijeta Lajka:Well, maybe we should set up a prediction market for it. Speaking of prediction markets, when we come back, we'll talk about how prediction markets have made it to war so predictable.
26:35Hard Fork Hosts:We'll see you next time. distractions when you need to focus. Your laptop will help keep you locked in, even when it's bring your dog to work day. Built for those who stay in the flow. The Dell Pro. Built for you. Dell.com slash Dell dash pro.
26:56Arijeta Lajka:I'm Paul Tenorio. I cover soccer for The Athletic.
26:59Hard Fork Hosts:And I'm Amy Lawrence. I cover football for The Athletic.
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27:52Arijeta Lajka:Okay, Casey, so the other big news from the past week is that the United States is now at war in Iran. And one angle that really has been sticking out to me about this is the role that prediction markets are playing in this conflict, because I think that is something that we truly have not seen before.
28:11Hard Fork Hosts:Yeah, it seems like every new war brings along some grim new technology, and I would say that prediction markets are maybe grim technology number one for this conflict in Iran.
28:22Arijeta Lajka:Yes, it's a grim technology already, even absent the war. And now just with the war, it has become even grimmer. And we've talked about prediction markets on the show. We talked about them way back in 2023 when they were sort of this new thing that was like kind of in this legal gray area that wasn't really being done at any scale yet. It was sort of an interesting idea. Now, of course, you cannot walk down a street in a major American city without seeing one and probably multiple ads for prediction markets like Kalshi and Polly Market.
28:52Hard Fork Hosts:Yeah, this sort of gambling mania that has taken over all media and advertising, you know, from DraftKings to FanDuel has now extended even further into these prediction markets.
29:04Arijeta Lajka:So both Polymarket and Kalshi, the two leading prediction markets platforms, took a lot of heat this week on bets they were allowing their users to make on questions related to Iran. So Kalshi, which is kind of the more regulated U.S.-based prediction markets company, does not allow bets on war or assassination. But it did allow the question Ali Khamenei out as supreme leader, basically sort of as a kind of careful proxy for betting on the outcome of a war or a strike on Iran. Yeah.
29:36Hard Fork Hosts:And out, I suppose, could have, you know, many meetings. You know, perhaps there would be a sort of gentle democratic revolution in Iran. But I'm going to assume that most of the people who were wagering on that one assumed that he was going to be killed in war.
29:50Arijeta Lajka:Yeah, so people got really mad at Khalshi for allowing these bets on the fate of the Iranian leader. They also got mad when Khalshi sort of voided this market and said that it was going to reimburse anyone who may have lost money on this, basically make sure everyone ends up in the black. But people who were supposed to make a bunch of money because they correctly predicted the death of Khomeini were mad that they didn't get paid out their expected winnings. So just a big cluster all around.
30:18Hard Fork Hosts:And I just want to say, if you are one of the traders who did not get your expected winnings from the death of the Ayatollah, I just want to say I don't care. And it doesn't matter.
30:30Arijeta Lajka:So Polymarket, the other sort of less regulated offshore crypto-based prediction market, was even more permissive. They allowed people to bet on the dates of strikes on Iran and other details related to the war in Iran.
30:44Hard Fork Hosts:Their policy was really like, imagine the worst thing you could do on our platform. You can do that.
30:49Arijeta Lajka:Actually, they did draw a line when it came down to markets that allowed users to bet on the likelihood of nuclear detonations by specific dates. So sorry to anyone who is trying to cash in on nuclear war.
31:03Hard Fork Hosts:These woke liberals that won't let me bet on nuclear explosions need to go, Kevin.
31:07Arijeta Lajka:Okay. So no one was happy about this. Senator Chris Murphy posted that, quote, it's insane this is legal. People around Trump are profiting off war and death and also said that he was introducing legislation to ban this. And there are also a bunch of people looking into whether any of this has been done via insider trading. Basically, do you have people in the military or close to the decision makers in this conflict placing bets once they have this sort of non-public information about what is going to be happening?
31:38Hard Fork Hosts:Yeah. And I think it speaks to why allowing prediction markets to take bets at least around sort of like, you know, war and death is so corrosive and bad, Kevin, because not only is it just kind of like grim and like, how do we live in this society where, you know, gambling on war and death has become a sort of form of entertainment, but also you're just creating incentives for like the worst things in the world to happen, which doesn't seem logical to me.
32:08Arijeta Lajka:Well, and it's not even a theoretical harm here. Recently, Israel arrested a number of people who were accused of using classified information to bet on military operations on polymarkets. So this is already starting to happen. And I think this is why people like Senator Chris Murphy are so alarmed about this, not just because it's sort of like gross and aesthetically offensive to have people betting on wars. Although it is. Although it is, but also because it could create direct incentives if you're a member of the military and your commander gives you an order to go do an airstrike on an Iranian compound to log on to your phone and head over to one of the prediction markets platforms and say, you know what, I could make a couple grand off this.
32:52Hard Fork Hosts:Yeah, that's your little call sheet bonus. You know, this is not theoretical at all, Kevin. In fact, your colleague, Amy Fan at The Times wrote that it is relatively uncommon for someone to bet a significant sum of money that a U.S. strike will happen within the next day. But last Friday, more than 150 accounts placed hundreds of bets of at least$1 ,000 correctly predicting that there would be an American airstrike on Iran by Saturday.
33:16Arijeta Lajka:Yeah. So I think one of the interesting things here is like, I am not like a blanket opponent of prediction markets, right? I sort of bought some of the kind of theoretical arguments for why something like a prediction market could, for example, outperform political polls because it would incentivize people to like come up with really good polling data and like use that to trade on. And you could end up with kind of a better picture of a given election.
33:42Hard Fork Hosts:Or people will like say what they really think because their money is at stake and they're not just trying to like impress a pollster. Yes.
33:49Arijeta Lajka:And you've actually had some of the people who are in charge of these prediction markets It's sort of talking about the fact that insider trading can be good because it can get the best information to the markets as quickly as possible and kind of like give people an unfiltered understanding of what the real insiders are thinking. Now, of course, officially you are not supposed to be able to insider trade on these platforms, right? They all have policies against it. Kalshi says they've investigated people, that it is actually illegal per the CFTC, which is their main regulator, to place bets using inside information.
34:24Arijeta Lajka:But there are a couple problems with this. One is the CFTC is a tiny agency. It doesn't have a huge team of enforcers going out to investigate what I assume must be hundreds or thousands of trades using inside information on their platform every day. It's also not clear what is public information and what is private information. You know, there are certain types of information in the stock market that are considered material non-public information that it is illegal to trade on. But it is also legal to, you know, fly a drone over an oil facility to see how their production is going or to park outside a store and see the foot traffic going in and out and use that to sort of calculate how well their sales must be going.
35:05Hard Fork Hosts:I find it suspicious how much you know about the insider trading rules. I have to say, I didn't know you had this much facility with the law here. I'm calling my lawyer.
35:13Arijeta Lajka:But of course, this is part of the appeal of prediction markets in general is that they incentivize people with good information to trade on that information.
35:21Hard Fork Hosts:Yes. And if you allow people to wager on almost anything, how are you ever possibly going to police the entire platform to understand who is insider trading and who isn't?
35:30Arijeta Lajka:Yes. So I think in this specific case of war, I think it's very dangerous for some of the reasons that we've talked about. Not only do you have military officers and service people disclosing classified information in some cases to sort of make a little extra for themselves, but you also have just this incredibly strange war profiteering innovation where, like, you can just go on one of these platforms and try to make a bunch of money from something that involves a war. a lot of devastation and destruction.
36:03Hard Fork Hosts:You know, the other thing that comes to mind for me, Kevin, is that, you know, as you say, the prediction market backers, their argument is like, this just helps us understand the world better, right? This is a new kind of information that helps us see more clearly. And yet, as I look across all of the trades that you just described, I don't understand really what I was supposed to see more clearly, right? Like, maybe you get a, you know, a brief heads up about something horrible that is about to happen. Maybe that's, useful in at least some circumstances. But for the most part, I just don't feel like we actually have a much better understanding of the world because all of these bets are happening.
36:39Arijeta Lajka:Yeah. And I think in this specific case, that's especially true because if you actually look at the markets that were being traded before this strike on Iran, the conventional wisdom of the crowd was that this was not going to happen. It was a very low probability. I think something like 17 % probability on one of these platforms an hour before the strikes. So these markets aren't actually distributing the best possible information at all times. They're just kind of like aggregating vibes until like someone with inside information shows up and like makes a fortune.
37:12Hard Fork Hosts:Well, I think that's exactly it. It isn't as if these have been adopted by the mainstream and everybody's placing these sort of casual bets. And now we have this like beautiful, perfect understanding of the world. What we have, as you say, is a bunch of vibes plus some insider trading. And it just doesn't actually seem that useful to me in practice for most things.
37:29Arijeta Lajka:Yeah, I want to try to like sort of steel man the defense of prediction markets here and see what you make of it. So I think someone who believes that these prediction markets are good in the aggregate might say something like the following. People have been betting on war forever. They bet on the stock prices of defense companies. They bet on things like oil prices. That is all legal. We consider that sort of part of the normal markets. Those things all fluctuate when you have a war breakout. how is this any different? Your response.
38:02Hard Fork Hosts:Well, I think that it is actually really meaningful that these are indirect ways of betting on war, right? It seems very unlikely to me that if I, like, you know, buy oil stocks, assuming that they are going to go up, that I'm creating an incentive for somebody to assassinate the supreme leader of Iran.
38:21Arijeta Lajka:But wasn't this the whole conspiracy theory about the war in Iraq? Was that it was just motivated by, like, Dick Cheney owning a bunch of stock in Halliburton?
38:27Hard Fork Hosts:Well, I mean, yes, that was like the conspiracy theory. You know, I don't know that that was what was actually driving. And I think that, you know, as with most wars, at least at that time, there was sort of like a number of interrelated factors that were going on. And, you know, maybe oil was one of them. But my point here is just that when you have the betting at some sort of meaningful remove from the action, it just like feels better for me. It doesn't create the same horribly grim incentives that this particular approach does. Right.
38:57Arijeta Lajka:I think the difference for me is the directness that you mentioned. And, you know, one thing that came up over and over again when I was talking to people about prediction markets a couple years ago for this story is the assassination markets get really dark. Because if you have something like, you know, will this world leader, you know, be removed from power in air quotes before a certain date, that could actually create a bounty on that person where someone might go out and say, hey, if I want to make money on this, I need to like kill this person before this day.
39:27Hard Fork Hosts:And you know what is going to be the first thing that actually takes action on that, Kevin? Open claw. Mark my words. One of these bots plugged into a Mac Mini is going to see a prediction market for the assassination of a world leader. And it's going to say, well, I have some ideas about that.
39:42Arijeta Lajka:So I think everyone, most people agree that, like, the assassination prediction market is sort of, you know, out of bounds and is a bad idea for lots of reasons. But I think there are still a lot of gray area around these questions about conflict and war and politics. And I think it is the risk here is that these prediction markets have gotten so popular so quickly with so little regulatory oversight that it is just kind of legal to do a bunch of stuff on them that it's not legal to do in the regular stock market. Yeah.
40:13Hard Fork Hosts:Well, so you mentioned that some lawmakers have talked about introducing legislation. My experience is that that kind of legislation typically doesn't go anywhere. What, if anything, do we know about what is going to happen as this war continues to unfold in Iran when it comes to these prediction markets?
40:30Arijeta Lajka:I mean, I think the Trump administration is very unlikely to do anything to sort of stop the growth of prediction markets. We've already seen them signal via these sort of regulatory actions that they've dropped against polymarket, that they are not going to take a firm line against these prediction markets. We've also seen them adding members of the Trump family to their advisory boards. So I think all of these prediction markets are sort of becoming entangled with the administration in ways that are going to make it very hard for them to do anything. But I certainly expect, like, Democratic lawmakers to stand up and say, like, what the hell are we enabling here?
41:05Arijeta Lajka:Why are we allowing people to bet on the assassination of world leaders or the outcomes of a war in Iran? This just feels all incredibly fraught to me.
41:14Hard Fork Hosts:My fear is that we're in a sort of time race where, like, if Democrats were able to, like, somehow advance some legislation, maybe they win some seats in the midterms, maybe they retake the presidency. Maybe sometime within the next few years, they could meaningfully rein these prediction markets in. I think, though, if they continue to grow, my fear is that they will become a massive entrenched interest group like the crypto world, and they will then lobby to ensure that Democrats and Republicans both feel like they have a vested interest in these things sticking around. So, you know, my fear is that if we're to do anything about some of these excesses we've been talking about today, it needs to happen soon or otherwise platforms like Kalshi and Polymarket might just have too much money for that to happen.
41:58Arijeta Lajka:Yeah, I have a proposed rule for these prediction markets. Which is that you should have to go to a physical place like you do for a casino. I think that putting this stuff on people's phones, making it super easy for them to do it. Like, if you want to go bet on the war in Iran, you should have to, like, go to a seedy, like, OTB betting place to do it. Like, you should have to, like, put in some effort. It should not be as easy as whipping out your phone.
42:23Hard Fork Hosts:All right. Well, it's very interesting, Kevin. I predict we are not going to try that.
42:27Arijeta Lajka:No, I also predict we're not going to try that. But it's a good idea. People should listen to me.
42:36Hard Fork Hosts:When we come back, flop, collaborate, and listen. YouTube is back with a disturbing new invention.
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44:14Arijeta Lajka:I'm Winnalou.
44:15Hard Fork Hosts:I write the game Connections, one of the puzzles from New York Times games. And I love horror movies. I love my dog. And I love trying to trick you. I'm Tracy Bennett. I get to pick the wordle word every day, which is not as easy as it sounds. A fun fact about me is that I am descended from a witch who was put on trial in Salem. New York Times games are made by people, like the ones you just heard from. Go to nytimes.com slash games to start playing today. All right, Casey, well, it's time to look at some kids slop. Yeah, Kev, we have recently been alerted to the fact that YouTube has been beset by a bunch of AI-generated slop for toddlers, and it's time to take a look and see what we're dealing with.
44:57Arijeta Lajka:My colleague at the New York Times, Ariadne Leica, has a new story about this called How AI-generated Videos Are Distorting Your Child's YouTube Feed. And I read the story. I loved it. I thought, I've got to see some of this slop for myself. So today, let's take a look at this emerging new genre of AI slop directed at kids with a new installment of the Hard Fork Review of Slop.
45:29Arijeta Lajka:The Hard Fork Review of Slop.
45:33Hard Fork Hosts:All right, what do we have up first? First is a video about the alphabet. Do you know the alphabet? You know, I keep meaning to learn it.
45:40Arijeta Lajka:Okay, let's see how the AI generated alphabet videos are doing. Yeah.
45:46Hard Fork Hosts:Kids TV. ABC Farm Animals.
45:54Arijeta Lajka:So far, so good.
45:59Hard Fork Hosts:Okay, okay. Why are they being squirted out of a little paint bottle?
46:10Arijeta Lajka:Oh, I'm deeply uncomfortable with this. I'm going to have to answer so many questions from my three-year-old about why ducks come out of toothpaste tubes.
46:21Hard Fork Hosts:Listen, if you're three years old, you need to know this. That is not how a duck is made. So this video depicts the alphabet showing a series of animals whose names begin with a letter. and then a hand holding, I guess, a tube of paint sort of squirts out a little dollop of gross goo that then transforms surreally into an animal while sort of demented slop children sing the name of the animal in the background.
46:51Arijeta Lajka:Yes, like if you've ever seen the TV show Alex Mack from like the 90s on Nickelodeon where she like sort of assembles herself out of goo on the floor, it's sort of like that, but for animals.
47:00Hard Fork Hosts:That one was a little before my time, I'm afraid, but I'll research that one back in the archives. In any case, okay, yeah, very strange one Let's take a look at this next video, Kevin What do we have now? I believe we're going to see some animals appearing out of colorful clouds
47:16Arijeta Lajka:I is for Impala, green Impala says boing, boing, boing
47:21Hard Fork Hosts:Join, join, join J is for jackal Yellow jackal says au, au, au Oh boy
47:27Arijeta Lajka:K is for kudu Pink kudu says spin, spin, spin
47:32Hard Fork Hosts:L is for lion And purple lion says, Roar, roar, roar.
47:37Arijeta Lajka:He's rolling the R's on his roars. Why is the other animal a doctor? Why are they running toward the camera? Why is the kudu pink?
47:47Hard Fork Hosts:And what is a kudu? I have to say, I'm a little older than the target age for these videos, but I'm learning things myself. This is for you. I'm learning. So this video shows another series of animals, each one connected to a letter of the alphabet. But this one uses a trope of having this doctor figure inject these animals with color. And the doctor is also an animal. And the doctor is also an animal. Is this like anti-vax propaganda? Well, the thing is, like, whoever is making the slop knows that needles are scary to children. So this is effectively just an engagement hack, right? You know the kid is going to watch the injection because the kid is afraid of needles.
48:30Hard Fork Hosts:So this is just, again, this is just one of these little miniature insidious ways that these slot makers grab the attention of kids is by showing them something scary in order to hypnotize them into continuing to watch the slot.
48:43Arijeta Lajka:It does teach the valuable lesson that giving injections to children does result in them turning into pink kudos and running toward the camera. So all children need to learn that lesson eventually.
48:53Hard Fork Hosts:All right, this next one, Kevin, shows animals turning into armored vehicles, trucks, and planes, going to show once again that a key theme in Slop for kids in 2026 is the transformation of animals.
49:10Oh, wow.
49:11Arijeta Lajka:We got sort of mecha quail.
49:16Okay.
49:20Arijeta Lajka:Okay. Okay. I wonder if that's a licensed use of the Thomas the Tank Engine IP.
49:31Arijeta Lajka:Okay. Unfortunately, that one slapped for me. My kid would be super into that, and I must never show him that.
49:37Hard Fork Hosts:This one reminds me of cartoons that I watched as a kid, where there was a lot of Transformers transforming, and so I could understand why, you know, a lot of little kids might like that one. But, you know, this is making me realize that another reason why slot makers love the alphabet is because they can just stitch together a bunch of very short clips. And of course, most of the AI video generators that we have in this moment can only generate clips of up to a few seconds. So the alphabet just becomes a perfect way to stitch together all of that into one piece that still at least has some sort of coherence.
50:12Arijeta Lajka:Yeah. I mean, I guess I can see a world in which this stuff is not actually that harmful. Maybe it is going to teach some kids the alphabet, but it is just so weird. And it strikes me as just like, we already had a lot of videos teaching kids the alphabet. Why are people doing this?
50:29Hard Fork Hosts:But also, and you know, listen, I'm no child neurologist, but I wonder about the consequences of essentially just creating images that are designed to overstimulate a child. You know what I mean? It's like, at least when you're watching like a normal cartoon, there could be moments of relative calm or like a story might unfold over a few minutes when you're just showing like raw visual stimuli and bombarding a kid with it. It just doesn't seem like it's probably that good for them.
50:58Arijeta Lajka:This is how I know you do not have a child in the year of our Lord 2026. Because if you go onto like Coco Melon or any of the other like extremely popular children's programs, like they are essentially just this. It's like a series of very short clips. Maybe they do one song and then they do another. It cuts away to a different song, cuts away to a different song. It is like these same sort of like hyper stimulating environments. So like I'm not saying that any of this is good. I'm just saying like we have crossed the Rubicon a while ago and we are now in the land of the hyper stimulating children's entertainment.
51:29Arijeta Lajka:Like the big difference to my mind is now that it's just easier and cheaper to create this stuff.
51:34Hard Fork Hosts:This is my takeaway. When I have my child, which I do hope to do, the only visual stimulation that I'm going to allow them is a pile of sticks. An Etch-A-Sketch? They can make their own fun, you know, with the pile of sticks. But we are not going down this road, Kevin. All right. Why don't we wrap up with a lullaby about animated children tucking themselves into beds made out of fruit. Mmm.
52:00Arijeta Lajka:Love a fruit bed.
52:01Hard Fork Hosts:What'd you call me? Princess Blondie in her strawberry bed.
52:06Arijeta Lajka:Okay, we've got a girl with a crown going into a bed made of strawberries.
52:13Hard Fork Hosts:Banana bed. Banana bed. Kiwi bed. Superboy in his orange glow Drifts to sleep all warm and slow
52:29Arijeta Lajka:Casey, what do you make of the fruit beds?
52:31Hard Fork Hosts:You know, this is just another one that feels a little more surreal than I am comfortable with. You know, it's like, what is the child supposed to conclude from any of it? Like, it just sort of seems designed to confuse children more than to educate or even really entertain them.
52:48Arijeta Lajka:Yeah, and there have been, I will say, like, a few sort of videos in here where I'm like, oh, my kid would like that. But I don't like that he would like that. You know, it's like, I don't want him watching stuff that's just like a bunch of animals, like driving buses or lying in, you know, fruit beds.
53:04Hard Fork Hosts:Also, kids like lots of things that are bad for them. That's why we don't let them use cocaine.
53:10Arijeta Lajka:Yes. Well, now that we've seen the videos, I feel like we are armed and ready to have the conversation about what they all mean. So let's bring in my colleague, Arietta Laika.
53:18Hard Fork Hosts:I don't know. I feel like I need to cleanse first. maybe go read a play by Shakespeare or something. Just go watch an episode of Bluey. Very heartwarming.
53:31Arijeta Lajka:Arianna Leica, welcome to Hard Fork.
53:33Hard Fork Hosts:Thank you so much for having me.
53:34Arijeta Lajka:I wanted to just ask, like, first of all, how did you get interested in this? How did you learn about this? Did you get a tip from a toddler submitting things through the New York Times confidential tip process? How did this come onto your radar?
53:46Hard Fork Hosts:Yeah, so no toddlers were involved in the making of this story. We had some ethical concerns there about showing them these videos repeatedly. But I started by getting interested in this because there is so much AI slop on all of our social media feeds, regardless of the platform. And I was interested in learning more about how this content is being presented to children and how it's being moderated. And so where do many children watch media? It's YouTube. So I started by looking at channels that parents approve of, channels like Miss Rachel and Bluey that are considered more high quality and thoughtful, and other popular channels like Cocomelon, and said, well, if I click on a Cocomelon video, and I am a toddler, and I look at the recommended videos right next to that video, what sort of videos would I be recommended?
54:38Hard Fork Hosts:And we focused on YouTube Shorts because a lot of these AI tools default to this vertical format. And so we just started scrolling through the feed and making a note of the different videos we were seeing. One of my colleagues actually coded a tool where I wasn't really interacting with the screen, so it wouldn't influence the algorithm. And I was just like scrolling down and it was making a note of all the different links I was seeing. And then we later analyzed these videos frame by frame, determined which videos were AI generated.
55:08Arijeta Lajka:And were you using regular YouTube or YouTube Kids?
55:11Hard Fork Hosts:So we started looking at regular YouTube in a private browser because a lot of parents tend to put on their own YouTube accounts for their children. But then we also look through YouTube Kids, you know, because it is a more controlled environment with content that's supposed to be approved for children. And when you started this process, what were your sort of expectations? And then how much AI generated stuff did you wind up seeing as like kind of a proportion of the total? So I think, especially when I was watching channels like Miss Rachel and Bluey, I was expecting to see content that would be more in the lines of those programs, right?
55:50Hard Fork Hosts:More Bluey shorts. And I wasn't really seeing that. I was surprised just about how much AI-generated content was being recommended. Like in one session alone, in one 15-minute session that we were scrolling, more than 40 % of the videos were AI-generated.
56:05Arijeta Lajka:Wow. And how are you determining that? Is there like a detection system that you're plugging these things into? Yeah, the detection system is called looking at the video. Well, no, I'm saying like if you have a video of like a, you know, an alpaca getting squeezed out of a paint tube, like that's very clearly not photorealistic, but it could be made using some like CGI software or something like that. I suppose, yes. How did you determine that this was AI?
56:26Hard Fork Hosts:Right. So I think some of these videos were a little bit more obvious, but we looked at them frame by frame and tried to look for inconsistencies. inconsistencies. Like in some cases, the objects were just appearing in the background. There was text in the background that was distorted. If there was an animal in the background, it would morph into something else. Some of the videos were actually labeled as synthetic media, even though they were animated. And then we would also look at the YouTube channel and get a sense of like, okay, what sort of content have they been posting in the last few years?
56:54Hard Fork Hosts:And even some of the channels that had been around, you know, before the last two years where this technology really improved, they were making very simple, low-quality animation that looked nothing like what they had been posting the last few months.
57:07Arijeta Lajka:Now, Arietta, I have done a lot of reporting on YouTube, but it's been a few years. What are their actual policies like today on this kind of content?
57:17Hard Fork Hosts:So I sent them a few channels as examples, and I asked them what their policy is around flagging AI content that's being made for children, and that includes animated content. And they told me that content creators are required to label content that is realistic looking. In some cases, we saw that creators weren't labeling the content. And I'm referring to videos of animals, you know, displaying behaviors that those animals don't do, like elephants doing gymnastic maneuvers on a tightrope. Those videos, for example, are not labeled as synthetic media. Some creators were labeling the animated videos, but it's not part of YouTube's policy.
57:57Hard Fork Hosts:So it's really the burden is falling on parents, especially for parents who may not want their child to watch AI-generated media to determine, okay, what sort of video is this? And not only that, but you have to click through the video and then you see the synthetic media label. And when it comes to kids' content on YouTube, YouTube doesn't allow comments. So sometimes when there's an AI-generated video, you'll have people in the comments and say, like, this is AI. And in this case, you know, parents can't really talk amongst themselves as to what the video is. Has there been any backlash yet that we've seen from parents against these kinds of videos?
58:33Hard Fork Hosts:Like, are some parents upset by what they're seeing? Yeah, we came across several Reddit forums where people were asking how to get around this AI slop for kids, whether there was a filter on YouTube. Some parents recommended making a playlist. other parents were like get off youtube altogether and i i think um a lot of it is also going to fall on parents to you know closely supervise what kids are watching since the algorithm is pushing so much of this content right although of course the whole point of youtube is that what it's what you show your kids so that you don't have to spend time with them right you know it's i mean not in a mean way but like maybe you have to cook dinner right parents are busy yeah like if parents were you know sitting down to like watch youtube with their children like we would not be in this situation.
59:14Arijeta Lajka:Yeah, and I'll say, like, as the parent of a almost four-year-old, like, the couple times that I've, like, found him watching something like this because he, like, you know, went onto the YouTube kids app when he wasn't supposed to or something, my feeling about it is not, like, this is damaging my child. It's just, like, this is so bad. Like, the quality is just so bad. I wonder if you think, Arietta, like, there's any sort of evidence. What do we know about the actual effects of this on kids? Is the worry that it's actually harming them, or is the worry that there's just better stuff they could be watching?
59:46Hard Fork Hosts:So there's a lot of factors to consider. So these videos contain extraneous effects, and we know that when videos contain all these bedazzling elements, kids can learn as well. They're also devoid of a narrative arc, which is really beneficial for kids to watch content with the beginning, middle, and end with characters they can relate to, that they're familiar with, watching content that uses short phrases that they can understand and doesn't feature these abstract concepts. You know, worst case, a lot of these videos are fantastical and that could be cognitively overloading to the child. And when it comes to short form content, experts say for children under five, we know their attention systems are still developing.
1:00:28Hard Fork Hosts:So it's hard for them to follow rapid changes. And it really puts a heavy burden on children to process that information, especially when we see this more realistic, fantastical content of animals, you know, showing bizarre behaviors. You know, when I was growing up, Kevin, in the 1900s, I would watch He-Man. Remember He-Man? Yes. It was a cartoon about a gay guy who had a sword and rode a tiger around. Was he gay canonically? Well, I think not canonically, but read between the lines. Okay? Read between the lines. And, you know, as a young gay kid, I could see that and relate to that. And, you know, and yes, the stories were fantastical, you know, but to Arietta's point, there was a beginning and a middle and an end.
1:01:06Hard Fork Hosts:And, you know, it didn't exactly, like, teach me in the ways of the world. But like it maybe told me something about like storytelling and narrative. And it wasn't just sort of like raw flashing shapes and colors.
1:01:17Arijeta Lajka:Yes. I mean, I remember before I had a kid having this argument with people at YouTube about YouTube kids. Because there was, I think there was, you know, discussion and concern even back in like 2017 or 2018 about these weird videos. They weren't AI generated at the time, but they were like weird sort of Cocoa Melon ripoffs. And I remember saying to these YouTube people, like, you guys got to change the way that you do this. Like, instead of just default allowing channels to serve content to very young children, you have to, like, kind of set up some whitelist where, like, if you prove that, like, your stories have a beginning, middle, and end, and, like, there's some thought being put into them, you are allowed to be on YouTube Kids.
1:01:55Arijeta Lajka:And if you're not, if you're just some, like, content farm that's, like, churning out cocomelon ripoffs, like, you're not going to be allowed on. So do you get the sense, Arianna, that there's any, like, concern or consideration of this at YouTube? Or are they basically just sort of like, you know, we got bigger fish to fry?
1:02:12Hard Fork Hosts:I mean, these videos are recommended to me and these channels multiple times. And I've been looking at these videos since November. And what has it done to your brain?
1:02:22Arijeta Lajka:I bet you know your alphabet.
1:02:24Hard Fork Hosts:I do, yeah. Yeah, the alphabet and, you know, those songs really get stuck in your head, right?
1:02:30Arijeta Lajka:Yeah. Oh, trust me, I know.
1:02:32Hard Fork Hosts:And then it's just so fascinating to me how much more of these videos are recommended to me than more thoughtful content like PBS Kids, for example. Because PBS Kids also puts out shorts, but I was seeing more of this than PBS Kids. I mean, just to sort of like, you know, echo Kevin's question, this has gotten me thinking about Elsagate, right? This 2017 controversy where parents see a lot of really surreal content in YouTube and they get very upset. It seems like we have not seen that kind of backlash yet. And I'm wondering, is it because we just feel like the content is actually better here in some ways?
1:03:05Hard Fork Hosts:Or are most parents just not actually aware of just like the volume of slop that might be being served to their kids? Because so many of these videos are animated, it may not be obvious to some parents that these are AI generated. But we were working in a more contained environment. So like elsewhere on YouTube, there are so many videos featuring popular characters that children like in very violent scenarios. There's this show called Masha and the Bear. And I remember I typed in Masha and I was coming across videos of Masha's stomach being cut open. And that channel was putting up these videos and YouTube didn't take them down until I linked out to one of them in my story.
1:03:47Hard Fork Hosts:Wow. And I don't know if any of you know children who are obsessed with that K-pop Demon Hunters film, but there are so many horrible videos featuring those characters. And again, it's nonsensical. Sometimes the characters are pregnant and those are all over YouTube as well if you type in those characters' names. And by the way, that was the exact scandal of Elsagate was that people were seeing Elsa from Frozen pregnant all over YouTube. So, I mean, like, this truly is just a sequel to Elsagate, and I think it's, you know, interesting that it has flown under the radar until your story, Arietta.
1:04:22Hard Fork Hosts:Right, and before, I mean, you had to have some sort of animation skills to do that, but, like, now anyone can do this in a few minutes, so, you know, we're gonna be seeing more of this content. And again, what is so insidious here is that the people who are making these videos are counting on the fact that regular kids are going to go searching for K-pop demon hunters and Masha the Bear. And they are unwittingly just going to be served this slop of like, you know, the poor bear getting cut open and the pregnant demon hunter just through the recommendation algorithm. And like, this is where YouTube's responsibility lies, right?
1:04:57Hard Fork Hosts:Like, this is where YouTube should be saying, we're actually not going to show this incredibly disturbing stuff to kids.
1:05:02Arijeta Lajka:Yeah, I would say like among the parents of young children that I know, like very few of them let their kids watch YouTube, even YouTube kids for this exact reason that it's like you might start with Masha the Bear. You might start with, you know, a K-pop Demon Hunters video. You might start with Bluey or Cocoa Melon. but like you know you go away for 10 minutes to cook dinner and you come back and like they're on their third hop from the recommendation and they're watching some like you know weird ai generated thing with like spider-man you know on the surgery table or something and like that's like what are
1:05:34Hard Fork Hosts:we doing here because it turns out that all of these recommendation algorithms work exactly the same way they find the video that is the closest to going over the line and they find that it gets more engagement than any other and so that's what shows up in the feed right so how how many times are we going to have to revisit this story? It really depresses me, honestly.
1:05:52Arijeta Lajka:Arianna, until the platforms like YouTube take more action on this, what can parents do in the short term? I mean, if you're going to let your kid watch YouTube or YouTube Kids, is there anything you can do to like toggle off the AI slop or do you just kind of have to make peace with it?
1:06:08Hard Fork Hosts:In terms of filtering it out, there isn't an option to do that right now. In January, YouTube announced they're going to add some controls where parents can set time limits to YouTube Shorts. We're seeing a lot of this AI content YouTube shorts, so that might be an option. They call it the slop watch. You know, it's like a stopwatch, but for slop.
1:06:26Arijeta Lajka:I just wonder if, like, all of this is a losing battle. I feel like... Kevin Roos, do not bring your nihilism into the recording studio today. Well, just, like, look at what is happening to older children with, like, Tung Tung Tung Sahur and, like, all the AI slop from TikTok. talk. And I just feel like, you know, we're seeing old people falling for AI slop on Facebook and middle-aged people fall for it on, on X and Instagram. And like, it just feels like we're kind of creating this like lifelong pipeline of just like whatever slop is going to be most engaging to you.
1:07:01Hard Fork Hosts:Well, I'm glad you brought that up because that is the thought that I'm having as we wrap up is that while, you know, right now we're talking about the concerns we have for kids, I think that, you know, older, older teens and adults wind up having the same issue, which is they open up TikTok or Instagram reels and they see something that is designed to hypnotize them as well. And it might not be colors and shapes and the alphabet, but it does seem like the basic idea is just sort of turn your brain off and experience the raw visual stimuli for as long as, you know, we can get you to.
1:07:31Arijeta Lajka:Yes. Well, Arianna, fascinating story. Thank you so much for doing this digging and watching all of these children's videos so that I don't have to and so I can protect my child from them.
1:07:41Hard Fork Hosts:Thank you so much for having me.
1:07:42Arijeta Lajka:We're going to take one for the team.
1:07:44Hard Fork Hosts:Yes. Arianna, you really did take one for the team on this one, I have to say.
1:07:48Arijeta Lajka:All right. Thanks so much.
1:07:49Hard Fork Hosts:Thanks. Thanks.
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1:09:22Arijeta Lajka:Hard Fork is produced by Rachel Cohn and Whitney Jones. We're edited by Viren Pavich. We're fact-checked by Caitlin Love. Today's show was engineered by Chris Wood. Our executive producer is Jen Poyant. Original music by Alicia Baitoup, Rowan Nemisto, and Dan Powell. video production by Sawyer Roquet, Pat Gunther, Jake Nichol, and Chris Schott. You can watch this full episode on YouTube at youtube.com slash hardfork. Special thanks to Paula Schumann, Hui Wing Tam, and Dalia Haddad. You can email us as always at hardfork at nytimes.com. Send us your toddler slop.
1:10:09Thank you.
From the publisher
This week, the fallout continues as OpenAI scrambles to rework its deal with the Pentagon, while government agencies adapt to life without Claude. Then we break down the grim new reality of prediction market bets on the U.S.-Israel led war with Iran. Finally, it’s time for another edition of The Hard Fork Review of Slop. This time we’re joined by Arijeta Lajka, a New York Times reporter, to discuss her recent article about the short form A.I.-generated slop YouTube is feeding to young children.
Guest:
Arijeta Lajka, New York Times video journalist
Additional Reading:
- The Pentagon Officially Notifies Anthropic That It Is a ‘Supply Chain Risk’
- OpenAI Amends A.I. Deal With the Pentagon
- How Talks Between Anthropic and the Defense Dept. Fell Apart
- How Anonymous Bettors Cashed In on the Iran Strike, Just Hours Before It Happened
- Israeli Army Reservists Are Suspected of Using Inside Knowledge to Bet
- How A.I.-Generated Videos Are Distorting Your Child’s YouTube Feed
We want to hear from you. Email us at hardfork@nytimes.com. Find “Hard Fork” on YouTube and TikTok.
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