Chamath Warns China Threat Is Smokescreen To Shield Few AI Labs
He argues protecting models ignores the broader infrastructure economy.
Entities: Chamath Palihapitiya, Jim Cramer, Anthropic, OpenAI
A post from @rohanpaul_ai is circulating a claim that Chamath Palihapitiya sees warnings about China in AI as cover for protecting a small group of frontier labs. The visible post presents that argument as a public claim, not a settled fact, and the clearest next read is to compare it with source context, including Yahoo Finance's report and a Stocktwits write-up.
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Yes, the whole "China's coming, so protect the frontier labs" line is just a smoke screen for something much smaller. The model layer itself is not the economy of AI. It's only a slice. If you can reduce the cost of running these models by 10X or 100X, that’s actually rocket fuel for the rest of us down the line. So the very thing the labs fear, price drops, could enlarge the entire pie.
Tricking the US Government to protect frontier labs’ business model by using a China boogeyman is a mistake. It is protecting the equity of 5,000 people who are investors in OAI and Ant at the sale of everyone else. This would be a terribly stupid decision. Let the market sort this out! The events of the past few weeks may simply mean that the frontier labs’ business model is not good and that their revenues aren’t sustainable. That’s ok. It’s ok to have a business model that worked for some time then all of a sudden didn’t (remember Groupon)! This still leaves a lot of value for a lot of other American companies: - CPUs - GPUs - hyperscalers - neoclouds - rack manufacturers - electricity and power - skilled trades - application layer AI None of this value goes away. In fact, if the model layers’ costs decrease by 10-100x, competition would accelerate and I would argue that the value to everyone else will go up more than what is lost. Let the free market sort this out vs allowing two companies whose stock is owned by less than 5,000 people decide this for America.
Oh thank God. If he was an open model proponent we would all be doomed..
We must NOT let our companies use these Chinese models to save a few bucks. OpenAI and Anthropic are correct. This is vital national security. Please read Bing West's just released Cat 5. I respect the Chinese people greatly but these companies are run by the PLA for heaven's sakes.
how do i go long china
We must NOT let our companies use these Chinese models to save a few bucks. OpenAI and Anthropic are correct. This is vital national security. Please read Bing West's just released Cat 5. I respect the Chinese people greatly but these companies are run by the PLA for heaven's sakes.
If there is anybody I turn to for advice on securely integrating non-deterministic multi-trillion parameter neural networks into my production systems, it's Jim Cramer.
We must NOT let our companies use these Chinese models to save a few bucks. OpenAI and Anthropic are correct. This is vital national security. Please read Bing West's just released Cat 5. I respect the Chinese people greatly but these companies are run by the PLA for heaven's sakes.
@CNBC has my permission to use that as a new tagline if they want.
You have to love the kind of person who knows precisely zero about any given issue and yet proudly proclaims their positions with iron willed certitude and bluster! We need more ill informed takes shouted loudly from the rooftops from the living embodiements of Dunning Kruger!
We must NOT let our companies use these Chinese models to save a few bucks. OpenAI and Anthropic are correct. This is vital national security. Please read Bing West's just released Cat 5. I respect the Chinese people greatly but these companies are run by the PLA for heaven's sakes.