alt Hacker NewsI’m not sure I understand these references. The banks were too big to fail specifically because they were banks involved with the finances of every major industry and government, not simply because their (arguably specious) valuations, or even market caps, had a ton of zeroes on them. What’s the argument for OpenAI being so inherently critical and interweaved with the rest of the economy that it can’t be allowed to fail? What’s the argument for how such a bailout would result in greater economic outcomes? The banks that got bailed out continued lending and immediately resumed profitable business, how will the AI companies offer value towards such a proposition?
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Moreover what would a bailout even look like? The banks got loan guarantees from the government essentially.
But like what happens if the government guarantees open ai's loans if the company is structurally unprofitable? Does the government create an operating subsidy?
The value of AI and related companies on retirement funds
The argument has already been made. They argued that their business model would collapse if they weren't allowed to train on a bunch of data that wasn't theirs, and nobody stopped them. The argument will be made even more later, as they will argue that too many companies are dependent on their technology, etc.
Who do you think the private credit lenders are exactly?
“National security! We can’t let China win the AI race!” Or some BS
Too big to fail is an oxymorononic statement. Bailing out bad businesses retains those that poorly managed them. Those organizations should of been sold off to remove the bad actors.
AI is currently a sunk cost to the US stock industry that is repeating the bad actor scenario. Not a single AI company is profitable and none of them produce deterministic nor cost effective solutions
Microsoft's statment of using AI to find the most resource intensive applications being ran highlights this. Task Manager does the same thing and does not need a server farm for training. It also uses MB of RAM vs GB.
If manufacturing had the same error rate in production as AI, those plants would of went out of business.
Both industries heavy use legal bribes, donations. Politicians will gladly bail them out to take ℅ of the cut in bribes.
Too big to fails are false claims to retain the bad actors that fund politicians. Bad actors need to fail so the good ones can properly operate.
Too big to fail is also allowing large corporations to skirt copyright laws. You or I seeding TB of copyright content would be thrown in jail.
Too big to fail is rebranding of legalizing corruption.