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March 2026 Tech M&A Review

Fri, 03 Apr 2026 18:37:22 GMT

European Tech Update – Quarterly M&A - September 2025

Wed, 24 Sep 2025 17:06:38 GMT

European Tech M&A Update 2nd quarter 2025. Special thanks to James Li, Mihir Amte, Darcy Zhang, Steven Chen and Rose Deng.

Tech Update – Quarterly M&A -August 2025

Mon, 08 Sep 2025 18:31:38 GMT

Tech M&A Update 2nd quarter 2025. Special thanks to Mihir Amte, Steven Chen, Rose Deng and Henry Gao.

Tech Update - Quarterly M&A - August 2024

Fri, 16 Aug 2024 20:22:47 GMT

IT Services Update 2nd quarter 2024. Congrats to intern team leader Daniel Mei from The University of Chicago and team members Catherine Zhang from UIUC (Illinois) and Jacob Burgess from UVA (Virginia). ��

#ITServices , #Teamwork , #Internship , #Congratulations , #UIUC , #Booth , #TechInvestmentBanking

Collaborative Software M&A Market Update July 2024

Mon, 29 Jul 2024 21:19:07 GMT

Authored and edited by Lombard interns Catherine Zhang (UIUC Grainger), Daniel Mei (U of Chicago) and Victoria Chen (UCLA).

Tech Update - Quarterly M&A Update - December 2023

Thu, 21 Dec 2023 23:19:42 GMT

Lombard Global, Inc. 2023 Quarterly Tech Services Update. Authored and edited by Helena Lewis, Mudit Jajoo, Anpayani Gupta Kabra, Cheng Fang, Daniel Fu and Bill Billeaud

The Techno-Optimist Manifesto By Marc Andreessen

Mon, 16 Oct 2023 19:07:42 GMT

“You live in a deranged age — more deranged than usual, because despite great scientific and technological advances, man has not the faintest idea of who he is or what he is doing.” — Walker Percy

“Our species is 300,000 years old. For the first 290,000 years, we were foragers, subsisting in a way that’s still observable among the Bushmen of the Kalahari and the Sentinelese of the Andaman Islands. Even after Homo Sapiens embraced agriculture, progress was painfully slow. A person born in Sumer in 4,000BC would find the resources, work, and technology available in England at the time of the Norman Conquest or in the Aztec Empire at the time of Columbus quite familiar. Then, beginning in the 18th Century, many people’s standard of living skyrocketed. What brought about this dramatic improvement, and why?”

— Marian Tupy

“There’s a way to do it better. Find it.”

— Thomas Edison

Lies

We are being lied to.

We are told that technology takes our jobs, reduces our wages, increases inequality, threatens our health, ruins the

environment, degrades our society, corrupts our children, impairs our humanity, threatens our future, and is ever on the

verge of ruining everything.

We are told to be angry, bitter, and resentful about technology.

We are told to be pessimistic.

The myth of Prometheus – in various updated forms like Frankenstein, Oppenheimer, and Terminator – haunts our

nightmares.

We are told to denounce our birthright – our intelligence, our control over nature, our ability to build a better world.

We are told to be miserable about the future.

Truth

Our civilization was built on technology.

Our civilization is built on technology.

Technology is the glory of human ambition and achievement, the spearhead of progress, and the realization of our

potential.

For hundreds of years, we properly glorified this – until recently.

I am here to bring the good news.

We can advance to a far superior way of living, and of being.

We have the tools, the systems, the ideas.

We have the will.

It is time, once again, to raise the technology flag.

It is time to be Techno-Optimists.

Technology

Techno-Optimists believe that societies, like sharks, grow or die.

We believe growth is progress – leading to vitality, expansion of life, increasing knowledge, higher well being.

We agree with Paul Collier when he says, “Economic growth is not a cure-all, but lack of growth is a kill-all.”

We believe everything good is downstream of growth.

We believe not growing is stagnation, which leads to zero-sum thinking, internal fighting, degradation, collapse, and

ultimately death.

There are only three sources of growth: population growth, natural resource utilization, and technology.

Developed societies are depopulating all over the world, across cultures – the total human population may already be

shrinking.

National resource utilization has sharp limits, both real and political.

And so the only perpetual source of growth is technology.

In fact, technology – new knowledge, new tools, what the Greeks called techne – has always been the main source of

growth, and perhaps the only cause of growth, as technology made both population growth and natural resource

utilization possible.

We believe technology is a lever on the world – the way to make more with less.

Economists measure technological progress as productivity growth: How much more we can produce each year with

fewer inputs, fewer raw materials. Productivity growth, powered by technology, is the main driver of economic growth, wage growth, and the creation of new industries and new jobs, as people and capital are continuously freed to do more important, valuable things than in the past. Productivity growth causes prices to fall, supply to rise, and demand to expand, improving the material well being of the entire population.

We believe this is the story of the material development of our civilization; this is why we are not still living in mud huts, eking out a meager survival and waiting for nature to kill us.

We believe this is why our descendents will live in the stars.

We believe that there is no material problem – whether created by nature or by technology – that cannot be solved with more technology.

We had a problem of starvation, so we invented the Green Revolution.

We had a problem of darkness, so we invented electric lighting.

We had a problem of cold, so we invented indoor heating.

We had a problem of heat, so we invented air conditioning.

We had a problem of isolation, so we invented the Internet.

We had a problem of pandemics, so we invented vaccines.

We have a problem of poverty, so we invent technology to create abundance.

Give us a real world problem, and we can invent technology that will solve it.

Markets

We believe free markets are the most effective way to organize a technological economy. Willing buyer meets willing seller, a price is struck, both sides benefit from the exchange or it doesn’t happen. Profits are the incentive for producing supply that fulfills demand. Prices encode information about supply and demand. Markets cause entrepreneurs to seek out high prices as a signal of opportunity to create new wealth by driving those prices down.

We believe the market economy is a discovery machine, a form of intelligence – an exploratory, evolutionary, adaptive system.

We believe Hayek’s Knowledge Problem overwhelms any centralized economic system. All actual information is on the edges, in the hands of the people closest to the buyer. The center, abstracted away from both the buyer and the seller, knows nothing. Centralized planning is doomed to fail, the system of production and consumption is too complex. Decentralization harnesses complexity for the benefit of everyone; centralization will starve you to death.

We believe in market discipline. The market naturally disciplines – the seller either learns and changes when the buyer fails to show, or exits the market. When market discipline is absent, there is no limit to how crazy things can get. The motto of every monopoly and cartel, every centralized institution not subject to market discipline: “We don’t care, because we don’t have to.” Markets prevent monopolies and cartels.

We believe markets lift people out of poverty – in fact, markets are by far the most effective way to lift vast numbers of people out of poverty, and always have been. Even in totalitarian regimes, an incremental lifting of the repressive boot off the throat of the people and their ability to produce and trade leads to rapidly rising incomes and standards of living. Lift the boot a little more, even better. Take the boot off entirely, who knows how rich everyone can get.

We believe markets are an inherently individualistic way to achieve superior collective outcomes.

We believe markets do not require people to be perfect, or even well intentioned – which is good, because, have you met people? Adam Smith: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages.”

David Friedman points out that people only do things for other people for three reasons – love, money, or force. Love doesn’t scale, so the economy can only run on money or force. The force experiment has been run and found wanting. Let’s stick with money.

We believe the ultimate moral defense of markets is that they divert people who otherwise would raise armies and start religions into peacefully productive pursuits.

We believe markets, to quote Nicholas Stern, are how we take care of people we don’t know.

We believe markets are the way to generate societal wealth for everything else we want to pay for, including basic research, social welfare programs, and national defense.

We believe there is no conflict between capitalist profits and a social welfare system that protects the vulnerable. In fact, they are aligned – the production of markets creates the economic wealth that pays for everything else we want as a society.

We believe central economic planning elevates the worst of us and drags everyone down; markets exploit the best of us to benefit all of us.

We believe central planning is a doom loop; markets are an upward spiral.

The economist William Nordhaus has shown that creators of technology are only able to capture about 2% of the economic value created by that technology. The other 98% flows through to society in the form of what economists call social surplus. Technological innovation in a market system is inherently philanthropic, by a 50:1 ratio. Who gets more value from a new technology, the single company that makes it, or the millions or billions of people who use it to improve their lives? QED.

We believe in David Ricardo’s concept of comparative advantage – as distinct from competitive advantage, comparative advantage holds that even someone who is best in the world at doing everything will buy most things from other people, due to opportunity cost. Comparative advantage in the context of a properly free market guarantees high employment regardless of the level of technology.

We believe a market sets wages as a function of the marginal productivity of the worker. Therefore technology – which raises productivity – drives wages up, not down. This is perhaps the most counterintuitive idea in all of economics, but it’s true, and we have 300 years of history that prove it.

We believe in Milton Friedman’s observation that human wants and needs are infinite.

We believe markets also increase societal well being by generating work in which people can productively engage. We believe a Universal Basic Income would turn people into zoo animals to be farmed by the state. Man was not meant to be farmed; man was meant to be useful, to be productive, to be proud.

We believe technological change, far from reducing the need for human work, increases it, by broadening the scope of what humans can productively do.

We believe that since human wants and needs are infinite, economic demand is infinite, and job growth can continue forever.

We believe markets are generative, not exploitative; positive sum, not zero sum. Participants in markets build on one another’s work and output. James Carse describes finite games and infinite games – finite games have an end, when one person wins and another person loses; infinite games never end, as players collaborate to discover what’s possible in the game. Markets are the ultimate infinite game.

The Techno-Capital Machine

Combine technology and markets and you get what Nick Land has termed the techno-capital machine, the engine of perpetual material creation, growth, and abundance.

We believe the techno-capital machine of markets and innovation never ends, but instead spirals continuously upward. Comparative advantage increases specialization and trade. Prices fall, freeing up purchasing power, creating demand. Falling prices benefit everyone who buys goods and services, which is to say everyone. Human wants and needs are endless, and entrepreneurs continuously create new goods and services to satisfy those wants and needs, deploying unlimited numbers of people and machines in the process. This upward spiral has been running for hundreds of years, despite continuous howling from Communists and Luddites. Indeed, as of 2019, before the temporary COVID disruption, the result was the largest number of jobs at the highest wages and the highest levels of material living standards in the history of the planet.

The techno-capital machine makes natural selection work for us in the realm of ideas. The best and most productive ideas win, and are combined and generate even better ideas. Those ideas materialize in the real world as technologically enabled goods and services that never would have emerged de novo.

Ray Kurzweil defines his Law of Accelerating Returns: Technological advances tend to feed on themselves, increasing the rate of further advance.

We believe in accelerationism – the conscious and deliberate propulsion of technological development – to ensure the fulfillment of the Law of Accelerating Returns. To ensure the techno-capital upward spiral continues forever.

We believe the techno-capital machine is not anti-human – in fact, it may be the most pro-human thing there is. It serves us. The techno-capital machine works for us. All the machines work for us.

We believe the cornerstone resources of the techno-capital upward spiral are intelligence and energy – ideas, and the power to make them real.

Intelligence

We believe intelligence is the ultimate engine of progress. Intelligence makes everything better. Smart people and smart societies outperform less smart ones on virtually every metric we can measure. Intelligence is the birthright of humanity; we should expand it as fully and broadly as we possibly can.

We believe intelligence is in an upward spiral – first, as more smart people around the world are recruited into the techno-capital machine; second, as people form symbiotic relationships with machines into new cybernetic systems such as companies and networks; third, as Artificial Intelligence ramps up the capabilities of our machines and ourselves.

We believe we are poised for an intelligence takeoff that will expand our capabilities to unimagined heights.

We believe Artificial Intelligence is our alchemy, our Philosopher’s Stone – we are literally making sand think.

We believe Artificial Intelligence is best thought of as a universal problem solver. And we have a lot of problems to solve.

We believe Artificial Intelligence can save lives – if we let it. Medicine, among many other fields, is in the stone age compared to what we can achieve with joined human and machine intelligence working on new cures. There are scores of common causes of death that can be fixed with AI, from car crashes to pandemics to wartime friendly fire.

We believe any deceleration of AI will cost lives. Deaths that were preventable by the AI that was prevented from existing is a form of murder.

We believe in Augmented Intelligence just as much as we believe in Artificial Intelligence. Intelligent machines augment intelligent humans, driving a geometric expansion of what humans can do.

We believe Augmented Intelligence drives marginal productivity which drives wage growth which drives demand which drives the creation of new supply… with no upper bound.

Energy

Energy is life. We take it for granted, but without it, we have darkness, starvation, and pain. With it, we have light, safety, and warmth.

We believe energy should be in an upward spiral. Energy is the foundational engine of our civilization. The more energy we have, the more people we can have, and the better everyone’s lives can be. We should raise everyone to the energy consumption level we have, then increase our energy 1,000x, then raise everyone else’s energy 1,000x as well.

The current gap in per-capita energy use between the smaller developed world and larger developing world is enormous. That gap will close – either by massively expanding energy production, making everyone better off, or by massively reducing energy production, making everyone worse off.

We believe energy need not expand to the detriment of the natural environment. We have the silver bullet for virtually unlimited zero-emissions energy today – nuclear fission. In 1973, President Richard Nixon called for Project Independence, the construction of 1,000 nuclear power plants by the year 2000, to achieve complete US energy independence. Nixon was right; we didn’t build the plants then, but we can now, anytime we decide we want to.

Atomic Energy Commissioner Thomas Murray said in 1953: “For years the splitting atom, packaged in weapons, has been our main shield against the barbarians. Now, in addition, it is a God-given instrument to do the constructive work of mankind.” Murray was right too.

We believe a second energy silver bullet is coming – nuclear fusion. We should build that as well. The same bad ideas that effectively outlawed fission are going to try to outlaw fusion. We should not let them.

We believe there is no inherent conflict between the techno-capital machine and the natural environment. Per-capita US carbon emissions are lower now than they were 100 years ago, even without nuclear power.

We believe technology is the solution to environmental degradation and crisis. A technologically advanced society improves the natural environment, a technologically stagnant society ruins it. If you want to see environmental devastation, visit a former Communist country. The socialist USSR was far worse for the natural environment than the capitalist US. Google the Aral Sea.

We believe a technologically stagnant society has limited energy at the cost of environmental ruin; a technologically advanced society has unlimited clean energy for everyone.

Abundance

We believe we should place intelligence and energy in a positive feedback loop, and drive them both to infinity.

We believe we should use the feedback loop of intelligence and energy to make everything we want and need abundant.

We believe the measure of abundance is falling prices. Every time a price falls, the universe of people who buy it get a raise in buying power, which is the same as a raise in income. If a lot of goods and services drop in price, the result is an upward explosion of buying power, real income, and quality of life.

We believe that if we make both intelligence and energy “too cheap to meter”, the ultimate result will be that all physical goods become as cheap as pencils. Pencils are actually quite technologically complex and difficult to manufacture, and yet nobody gets mad if you borrow a pencil and fail to return it. We should make the same true of all physical goods.

We believe we should push to drop prices across the economy through the application of technology until as many prices are effectively zero as possible, driving income levels and quality of life into the stratosphere.

We believe Andy Warhol was right when he said, “What's great about this country is America started the tradition where the richest consumers buy essentially the same things as the poorest. You can be watching TV and see Coca-Cola, and you can know that the President drinks Coke, Liz Taylor drinks Coke, and just think, you can drink Coke, too. A Coke is a Coke and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same and all the Cokes are good.” Same for the browser, the smartphone, the chatbot.

We believe that technology ultimately drives the world to what Buckminster Fuller called “ephemeralization” – what economists call “dematerialization”. Fuller: “Technology lets you do more and more with less and less until eventually you can do everything with nothing.”

We believe technological progress therefore leads to material abundance for everyone.

We believe the ultimate payoff from technological abundance can be a massive expansion in what Julian Simon called “the ultimate resource” – people.

We believe, as Simon did, that people are the ultimate resource – with more people come more creativity, more new ideas, and more technological progress.

We believe material abundance therefore ultimately means more people – a lot more people – which in turn leads to more abundance.

We believe our planet is dramatically underpopulated, compared to the population we could have with abundant intelligence, energy, and material goods.

We believe the global population can quite easily expand to 50 billion people or more, and then far beyond that as we ultimately settle other planets.

We believe that out of all of these people will come scientists, technologists, artists, and visionaries beyond our wildest dreams.

We believe the ultimate mission of technology is to advance life both on Earth and in the stars.

Not Utopia, But Close Enough

However, we are not Utopians.

We are adherents to what Thomas Sowell calls the Constrained Vision.

We believe the Constrained Vision – contra the Unconstrained Vision of Utopia, Communism, and Expertise – means taking people as they are, testing ideas empirically, and liberating people to make their own choices.

We believe in not Utopia, but also not Apocalypse.

We believe change only happens on the margin – but a lot of change across a very large margin can lead to big outcomes.

While not Utopian, we believe in what Brad DeLong terms “slouching toward Utopia” – doing the best fallen humanity can do, making things better as we go.

Becoming Technological Supermen

We believe that advancing technology is one of the most virtuous things that we can do.

We believe in deliberately and systematically transforming ourselves into the kind of people who can advance technology.

We believe this certainly means technical education, but it also means going hands on, gaining practical skills, working within and leading teams – aspiring to build something greater than oneself, aspiring to work with others to build something greater as a group.

We believe the natural human drive to make things, to gain territory, to explore the unknown can be channeled productively into building technology.

We believe that while the physical frontier, at least here on Earth, is closed, the technological frontier is wide open.

We believe in exploring and claiming the technological frontier.

We believe in the romance of technology, of industry. The eros of the train, the car, the electric light, the skyscraper. And the microchip, the neural network, the rocket, the split atom.

We believe in adventure. Undertaking the Hero’s Journey, rebelling against the status quo, mapping uncharted territory, conquering dragons, and bringing home the spoils for our community.

To paraphrase a manifesto of a different time and place: “Beauty exists only in struggle. There is no masterpiece that has not an aggressive character. Technology must be a violent assault on the forces of the unknown, to force them to bow before man.”

We believe that we are, have been, and will always be the masters of technology, not mastered by technology. Victim mentality is a curse in every domain of life, including in our relationship with technology – both unnecessary and self-defeating. We are not victims, we are conquerors .

We believe in nature, but we also believe in overcoming nature. We are not primitives, cowering in fear of the lightning bolt. We are the apex predator; the lightning works for us.

We believe in greatness. We admire the great technologists and industrialists who came before us, and we aspire to make them proud of us today.

And we believe in humanity – individually and collectively.

Technological Values

We believe in ambition, aggression, persistence, relentlessness – strength .

We believe in merit and achievement.

We believe in bravery, in courage.

We believe in pride, confidence, and self respect – when earned.

We believe in free thought, free speech, and free inquiry.

We believe in the actual Scientific Method and enlightenment values of free discourse and challenging the authority of experts.

We believe, as Richard Feynman said, “Science is the belief in the ignorance of experts.”

And, “I would rather have questions that can't be answered than answers that can't be questioned.”

We believe in local knowledge, the people with actual information making decisions, not in playing God.

We believe in embracing variance, in increasing interestingness.

We believe in risk , in leaps into the unknown.

We believe in agency, in individualism.

We believe in radical competence.

We believe in an absolute rejection of resentment. As Carrie Fisher said, “Resentment is like drinking poison and waiting for the other person to die.” We take responsibility and we overcome.

We believe in competition, because we believe in evolution.

We believe in evolution, because we believe in life.

We believe in the truth.

We believe rich is better than poor, cheap is better than expensive, and abundant is better than scarce.

We believe in making everyone rich, everything cheap, and everything abundant.

We believe extrinsic motivations – wealth, fame, revenge – are fine as far as they go. But we believe intrinsic motivations – the satisfaction of building something new, the camaraderie of being on a team, the achievement of becoming a better version of oneself – are more fulfilling and more lasting.

We believe in what the Greeks called eudaimonia through arete – flourishing through excellence.

We believe technology is universalist. Technology doesn’t care about your ethnicity, race, religion, national origin, gender, sexuality, political views, height, weight, hair or lack thereof. Technology is built by a virtual United Nations of talent from all over the world. Anyone with a positive attitude and a cheap laptop can contribute. Technology is the ultimate open society.

We believe in the Silicon Valley code of “pay it forward”, trust via aligned incentives, generosity of spirit to help one another learn and grow.

We believe America and her allies should be strong and not weak. We believe national strength of liberal democracies flows from economic strength (financial power), cultural strength (soft power), and military strength (hard power). Economic, cultural, and military strength flow from technological strength. A technologically strong America is a force for good in a dangerous world. Technologically strong liberal democracies safeguard liberty and peace. Technologically weak liberal democracies lose to their autocratic rivals, making everyone worse off.

We believe technology makes greatness more possible and more likely.

We believe in fulfilling our potential, becoming fully human – for ourselves, our communities, and our society.

The Meaning Of Life

Techno-Optimism is a material philosophy, not a political philosophy.

We are not necessarily left wing, although some of us are.

We are not necessarily right wing, although some of us are.

We are materially focused, for a reason – to open the aperture on how we may choose to live amid material abundance.

A common critique of technology is that it removes choice from our lives as machines make decisions for us. This is undoubtedly true, yet more than offset by the freedom to create our lives that flows from the material abundance created by our use of machines.

Material abundance from markets and technology opens the space for religion, for politics, and for choices of how to live, socially and individually.

We believe technology is liberatory. Liberatory of human potential. Liberatory of the human soul, the human spirit. Expanding what it can mean to be free, to be fulfilled, to be alive.

We believe technology opens the space of what it can mean to be human.

The Enemy

We have enemies.

Our enemies are not bad people – but rather bad ideas.

Our present society has been subjected to a mass demoralization campaign for six decades – against technology and against life – under varying names like “existential risk”, “sustainability”, “ESG”, “Sustainable Development Goals”, “social responsibility”, “stakeholder capitalism”, “Precautionary Principle”, “trust and safety”, “tech ethics”, “risk management”, “de-growth”, “the limits of growth”.

This demoralization campaign is based on bad ideas of the past – zombie ideas, many derived from Communism, disastrous then and now – that have refused to die.

Our enemy is stagnation.

Our enemy is anti-merit, anti-ambition, anti-striving, anti-achievement, anti-greatness.

Our enemy is statism, authoritarianism, collectivism, central planning, socialism.

Our enemy is bureaucracy, vetocracy, gerontocracy, blind deference to tradition.

Our enemy is corruption, regulatory capture, monopolies, cartels.

Our enemy is institutions that in their youth were vital and energetic and truth-seeking, but are now compromised and corroded and collapsing – blocking progress in increasingly desperate bids for continued relevance, frantically trying to justify their ongoing funding despite spiraling dysfunction and escalating ineptness.

Our enemy is the ivory tower, the know-it-all credentialed expert worldview, indulging in abstract theories, luxury beliefs, social engineering, disconnected from the real world, delusional, unelected, and unaccountable – playing God with everyone else’s lives, with total insulation from the consequences.

Our enemy is speech control and thought control – the increasing use, in plain sight, of George Orwell’s “1984” as an instruction manual.

Our enemy is Thomas Sowell’s Unconstrained Vision, Alexander Kojeve’s Universal and Homogeneous State, Thomas More’s Utopia.

Our enemy is the Precautionary Principle, which would have prevented virtually all progress since man first harnessed fire. The Precautionary Principle was invented to prevent the large-scale deployment of civilian nuclear power, perhaps the most catastrophic mistake in Western society in my lifetime. The Precautionary Principle continues to inflict enormous unnecessary suffering on our world today. It is deeply immoral, and we must jettison it with extreme prejudice.

Our enemy is deceleration, de-growth, depopulation – the nihilistic wish, so trendy among our elites, for fewer people, less energy, and more suffering and death.

Our enemy is Friedrich Nietzsche’s Last Man:

I tell you: one must still have chaos in oneself, to give birth to a dancing star. I tell you: you have still chaos in yourselves.

Alas! There comes the time when man will no longer give birth to any star. Alas! There comes the time of the most despicable man, who can no longer despise himself…

"What is love? What is creation? What is longing? What is a star?" -- so asks the Last Man, and blinks.

The earth has become small, and on it hops the Last Man, who makes everything small. His species is ineradicable as the flea; the Last Man lives longest…

One still works, for work is a pastime. But one is careful lest the pastime should hurt one.

One no longer becomes poor or rich; both are too burdensome…

No shepherd, and one herd! Everyone wants the same; everyone is the same: he who feels differently goes voluntarily into the madhouse.

"Formerly all the world was insane," -- say the subtlest of them, and they blink.

They are clever and know all that has happened: so there is no end to their derision…

"We have discovered happiness," -- say the Last Men, and they blink.

Our enemy is… that.

We aspire to be… not that.

We will explain to people captured by these zombie ideas that their fears are unwarranted and the future is bright.

We believe these captured people are suffering from ressentiment – a witches’ brew of resentment, bitterness, and rage that is causing them to hold mistaken values, values that are damaging to both themselves and the people they care about.

We believe we must help them find their way out of their self-imposed labyrinth of pain.

We invite everyone to join us in Techno-Optimism.

The water is warm.

Become our allies in the pursuit of technology, abundance, and life.

The Future

Where did we come from?

Our civilization was built on a spirit of discovery, of exploration, of industrialization.

Where are we going?

What world are we building for our children and their children, and their children?

A world of fear, guilt, and resentment?

Or a world of ambition, abundance, and adventure?

We believe in the words of David Deutsch: "We have a duty to be optimistic. Because the future is open, not predetermined and therefore cannot just be accepted: we are all responsible for what it holds. Thus it is our duty to fight for a better world."

We owe the past, and the future.

It’s time to be a Techno-Optimist.

It’s time to build.

Patron Saints of Techno-Optimism

In lieu of detailed endnotes and citations, read the work of these people, and you too will become a Techno-Optimist.

@BasedBeffJezos
@bayeslord
@PessimistsArc
Ada Lovelace
Adam Smith
Andy Warhol
Bertrand Russell
Brad DeLong
Buckminster Fuller
Calestous Juma
Clayton Christensen
Dambisa Moyo
David Deutsch
David Friedman
David Ricardo
Deirdre McCloskey
Doug Engelbart
Elting Morison
Filippo Tommaso Marinetti
Frederic Bastiat
Frederick Jackson Turner
Friedrich Hayek
Friedrich Nietzsche
George Gilder
Isabel Paterson
Israel Kirzner
James Burnham
James Carse
Joel Mokyr
Johan Norberg
John Galt
John Von Neumann
Joseph Schumpeter
Julian Simon
Kevin Kelly
Louis Rossetto
Ludwig von Mises
Marian Tupy
Martin Gurri
Matt Ridley
Milton Friedman
Neven Sesardic
Nick Land
Paul Collier
Paul Johnson
Paul Romer
Ray Kurzweil
Richard Feynman
Rose Wilder Lane
Stephen Wolfram
Stewart Brand
Thomas Sowell
Vilfredo Pareto
Virginia Postrel
William Lewis
William Nordhaus

Why AI Will Save the World By Marc Andreessen

Wed, 14 Jun 2023 22:38:25 GMT

The era of Artificial Intelligence is here, and boy are people freaking out.

Fortunately, I am here to bring the good news: AI will not destroy the world, and in fact may save it.

First, a short description of what AI is: The application of mathematics and software code to teach computers how to understand, synthesize, and generate knowledge in ways similar to how people do it. AI is a computer program like any other – it runs, takes input, processes, and generates output. AI’s output is useful across a wide range of fields, ranging from coding to medicine to law to the creative arts. It is owned by people and controlled by people, like any other technology.

A shorter description of what AI isn’t: Killer software and robots that will spring to life and decide to murder the human race or otherwise ruin everything, like you see in the movies .

An even shorter description of what AI could be: A way to make everything we care about better.

Why AI Can Make Everything We Care About Better

The most validated core conclusion of social science across many decades and thousands of studies is that human intelligence makes a very broad range of life outcomes better. Smarter people have better outcomes in almost every domain of activity: academic achievement, job performance, occupational status, income, creativity, physical health, longevity, learning new skills, managing complex tasks, leadership, entrepreneurial success, conflict resolution, reading comprehension, financial decision making, understanding others’ perspectives, creative arts, parenting outcomes, and life satisfaction.

Further, human intelligence is the lever that we have used for millennia to create the world we live in today: science, technology, math, physics, chemistry, medicine, energy, construction, transportation, communication, art, music, culture, philosophy, ethics, morality. Without the application of intelligence on all these domains, we would all still be living in mud huts, scratching out a meager existence of subsistence farming. Instead we have used our intelligence to raise our standard of living on the order of 10,000X over the last 4,000 years.

What AI offers us is the opportunity to profoundly augment human intelligence to make all of these outcomes of intelligence – and many others, from the creation of new medicines to ways to solve climate change to technologies to reach the stars – much, much better from here.

AI augmentation of human intelligence has already started – AI is already around us in the form of computer control systems of many kinds, is now rapidly escalating with AI Large Language Models like ChatGPT, and will accelerate very quickly from here – if we let it.

In our new era of AI:

Every child will have an AI tutor that is infinitely patient, infinitely compassionate, infinitely knowledgeable, infinitely helpful. The AI tutor will be by each child’s side every step of their development, helping them maximize their potential with the machine version of infinite love.
Every person will have an AI assistant/coach/mentor/trainer/advisor/therapist that is infinitely patient, infinitely compassionate, infinitely knowledgeable, and infinitely helpful. The AI assistant will be present through all of life’s opportunities and challenges, maximizing every person’s outcomes.
Every scientist will have an AI assistant/collaborator/partner that will greatly expand their scope of scientific research and achievement. Every artist, every engineer, every businessperson, every doctor, every caregiver will have the same in their worlds.
Every leader of people – CEO, government official, nonprofit president, athletic coach, teacher – will have the same. The magnification effects of better decisions by leaders across the people they lead are enormous, so this intelligence augmentation may be the most important of all.
Productivity growth throughout the economy will accelerate dramatically, driving economic growth, creation of new industries, creation of new jobs, and wage growth, and resulting in a new era of heightened material prosperity across the planet.
Scientific breakthroughs and new technologies and medicines will dramatically expand, as AI helps us further decode the laws of nature and harvest them for our benefit.
The creative arts will enter a golden age, as AI-augmented artists, musicians, writers, and filmmakers gain the ability to realize their visions far faster and at greater scale than ever before.
I even think AI is going to improve warfare, when it has to happen, by reducing wartime death rates dramatically. Every war is characterized by terrible decisions made under intense pressure and with sharply limited information by very limited human leaders. Now, military commanders and political leaders will have AI advisors that will help them make much better strategic and tactical decisions, minimizing risk, error, and unnecessary bloodshed.
In short, anything that people do with their natural intelligence today can be done much better with AI, and we will be able to take on new challenges that have been impossible to tackle without AI, from curing all diseases to achieving interstellar travel.
And this isn’t just about intelligence! Perhaps the most underestimated quality of AI is how humanizing it can be. AI art gives people who otherwise lack technical skills the freedom to create and share their artistic ideas . Talking to an empathetic AI friend really does improve their ability to handle adversity . And AI medical chatbots are already more empathetic than their human counterparts. Rather than making the world harsher and more mechanistic, infinitely patient and sympathetic AI will make the world warmer and nicer.

The stakes here are high. The opportunities are profound. AI is quite possibly the most important – and best – thing our civilization has ever created, certainly on par with electricity and microchips, and probably beyond those.

The development and proliferation of AI – far from a risk that we should fear – is a moral obligation that we have to ourselves, to our children, and to our future.

We should be living in a much better world with AI, and now we can.

So Why The Panic?

In contrast to this positive view, the public conversation about AI is presently shot through with hysterical fear and paranoia.

We hear claims that AI will variously kill us all, ruin our society, take all our jobs, cause crippling inequality, and enable bad people to do awful things.

What explains this divergence in potential outcomes from near utopia to horrifying dystopia?

Historically, every new technology that matters, from electric lighting to automobiles to radio to the Internet, has sparked a moral panic – a social contagion that convinces people the new technology is going to destroy the world, or society, or both. The fine folks at Pessimists Archive have documented these technology-driven moral panics over the decades; their history makes the pattern vividly clear. It turns out this present panic is not even the first for AI .

Now, it is certainly the case that many new technologies have led to bad outcomes – often the same technologies that have been otherwise enormously beneficial to our welfare. So it’s not that the mere existence of a moral panic means there is nothing to be concerned about.

But a moral panic is by its very nature irrational – it takes what may be a legitimate concern and inflates it into a level of hysteria that ironically makes it harder to confront actually serious concerns.

And wow do we have a full-blown moral panic about AI right now.

This moral panic is already being used as a motivating force by a variety of actors to demand policy action – new AI restrictions, regulations, and laws. These actors, who are making extremely dramatic public statements about the dangers of AI – feeding on and further inflaming moral panic – all present themselves as selfless champions of the public good.

But are they?

And are they right or wrong?

The Baptists And Bootleggers Of AI

Economists have observed a longstanding pattern in reform movements of this kind. The actors within movements like these fall into two categories – “Baptists” and “Bootleggers” – drawing on the historical example of the prohibition of alcohol in the United States in the 1920’s :

“Baptists” are the true believer social reformers who legitimately feel – deeply and emotionally, if not rationally – that new restrictions, regulations, and laws are required to prevent societal disaster. For alcohol prohibition, these actors were often literally devout Christians who felt that alcohol was destroying the moral fabric of society. For AI risk, these actors are true believers that AI presents one or another existential risks – strap them to a polygraph, they really mean it.
“Bootleggers” are the self-interested opportunists who stand to financially profit by the imposition of new restrictions, regulations, and laws that insulate them from competitors. For alcohol prohibition, these were the literal bootleggers who made a fortune selling illicit alcohol to Americans when legitimate alcohol sales were banned. For AI risk, these are CEOs who stand to make more money if regulatory barriers are erected that form a cartel of government-blessed AI vendors protected from new startup and open source competition – the software version of “too big to fail” banks.

A cynic would suggest that some of the apparent Baptists are also Bootleggers – specifically the ones paid to attack AI by their universities , think tanks , activist groups , and media outlets . If you are paid a salary or receive grants to foster AI panic…you are probably a Bootlegger.

The problem with the Bootleggers is that they win. The Baptists are naive ideologues, the Bootleggers are cynical operators, and so the result of reform movements like these is often that the Bootleggers get what they want – regulatory capture, insulation from competition, the formation of a cartel – and the Baptists are left wondering where their drive for social improvement went so wrong.

We just lived through a stunning example of this – banking reform after the 2008 global financial crisis. The Baptists told us that we needed new laws and regulations to break up the “too big to fail” banks to prevent such a crisis from ever happening again. So Congress passed the Dodd-Frank Act of 2010, which was marketed as satisfying the Baptists’ goal, but in reality was coopted by the Bootleggers – the big banks. The result is that the same banks that were “too big to fail” in 2008 are much, much larger now.

So in practice, even when the Baptists are genuine – and even when the Baptists are right – they are used as cover by manipulative and venal Bootleggers to benefit themselves. And this is what is happening in the drive for AI regulation right now.

However, it isn’t sufficient to simply identify the actors and impugn their motives. We should consider the arguments of both the Baptists and the Bootleggers on their merits.

AI Risk #1: Will AI Kill Us All?

The first and original AI doomer risk is that AI will decide to literally kill humanity.

The fear that technology of our own creation will rise up and destroy us is deeply coded into our culture. The Greeks expressed this fear in the Prometheus Myth – Prometheus brought the destructive power of fire, and more generally technology (“techne”), to man, for which Prometheus was condemned to perpetual torture by the gods. Later, Mary Shelley gave us moderns our own version of this myth in her novel Frankenstein, or, The Modern Prometheus, in which we develop the technology for eternal life, which then rises up and seeks to destroy us. And of course, no AI panic newspaper story is complete without a still image of a gleaming red-eyed killer robot from James Cameron’s Terminator films.

The presumed evolutionary purpose of this mythology is to motivate us to seriously consider potential risks of new technologies – fire, after all, can indeed be used to burn down entire cities. But just as fire was also the foundation of modern civilization as used to keep us warm and safe in a cold and hostile world, this mythology ignores the far greater upside of most – all? – new technologies, and in practice inflames destructive emotion rather than reasoned analysis. Just because premodern man freaked out like this doesn’t mean we have to; we can apply rationality instead.

My view is that the idea that AI will decide to literally kill humanity is a profound category error . AI is not a living being that has been primed by billions of years of evolution to participate in the battle for the survival of the fittest, as animals are, and as we are. It is math – code – computers, built by people, owned by people, used by people, controlled by people. The idea that it will at some point develop a mind of its own and decide that it has motivations that lead it to try to kill us is a superstitious handwave.

In short, AI doesn’t want, it doesn’t have goals, it doesn’t want to kill you, because it’s not alive. And AI is a machine – is not going to come alive any more than your toaster will.

Now, obviously, there are true believers in killer AI – Baptists – who are gaining a suddenly stratospheric amount of media coverage for their terrifying warnings, some of whom claim to have been studying the topic for decades and say they are now scared out of their minds by what they have learned. Some of these true believers are even actual innovators of the technology. These actors are arguing for a variety of bizarre and extreme restrictions on AI ranging from a ban on AI development , all the way up to military airstrikes on datacenters and nuclear war . They argue that because people like me cannot rule out future catastrophic consequences of AI, that we must assume a precautionary stance that may require large amounts of physical violence and death in order to prevent potential existential risk.

My response is that their position is non-scientific – What is the testable hypothesis? What would falsify the hypothesis? How do we know when we are getting into a danger zone? These questions go mainly unanswered apart from “You can’t prove it won’t happen!” In fact, these Baptists’ position is so non-scientific and so extreme – a conspiracy theory about math and code – and is already calling for physical violence, that I will do something I would normally not do and question their motives as well.

Specifically, I think three things are going on:

First, recall that John Von Neumann responded to Robert Oppenheimer’s famous hand-wringing about his role creating nuclear weapons – which helped end World War II and prevent World War III – with, “Some people confess guilt to claim credit for the sin.” What is the most dramatic way one can claim credit for the importance of one’s work without sounding overtly boastful? This explains the mismatch between the words and actions of the Baptists who are actually building and funding AI – watch their actions, not their words. (Truman was harsher after meeting with Oppenheimer: “Don’t let that crybaby in here again.” )

Second, some of the Baptists are actually Bootleggers. There is a whole profession of “AI safety expert”, “AI ethicist”, “AI risk researcher”. They are paid to be doomers, and their statements should be processed appropriately.

Third, California is justifiably famous for our many thousands of cults , from EST to the Peoples Temple, from Heaven’s Gate to the Manson Family. Many, although not all, of these cults are harmless, and maybe even serve a purpose for alienated people who find homes in them. But some are very dangerous indeed, and cults have a notoriously hard time straddling the line that ultimately leads to violence and death .

And the reality, which is obvious to everyone in the Bay Area but probably not outside of it, is that “AI risk” has developed into a cult , which has suddenly emerged into the daylight of global press attention and the public conversation. This cult has pulled in not just fringe characters, but also some actual industry experts and a not small number of wealthy donors – including, until recently, Sam Bankman-Fried . And it’s developed a full panoply of cult behaviors and beliefs.

This cult is why there are a set of AI risk doomers who sound so extreme – it’s not that they actually have secret knowledge that make their extremism logical, it’s that they’ve whipped themselves into a frenzy and really are…extremely extreme.

It turns out that this type of cult isn’t new – there is a longstanding Western tradition of millenarianism , which generates apocalypse cults. The AI risk cult has all the hallmarks of a millenarian apocalypse cult. From Wikipedia, with additions by me:

“Millenarianism is the belief by a group or movement [AI risk doomers] in a coming fundamental transformation of society [the arrival of AI], after which all things will be changed [AI utopia, dystopia, and/or end of the world]. Only dramatic events [AI bans, airstrikes on datacenters, nuclear strikes on unregulated AI] are seen as able to change the world [prevent AI] and the change is anticipated to be brought about, or survived, by a group of the devout and dedicated. In most millenarian scenarios, the disaster or battle to come [AI apocalypse, or its prevention] will be followed by a new, purified world [AI bans] in which the believers will be rewarded [or at least acknowledged to have been correct all along].”

This apocalypse cult pattern is so obvious that I am surprised more people don’t see it.

Don’t get me wrong, cults are fun to hear about, their written material is often creative and fascinating , and their members are engaging at dinner parties and on TV . But their extreme beliefs should not determine the future of laws and society – obviously not.

AI Risk #2: Will AI Ruin Our Society?

The second widely mooted AI risk is that AI will ruin our society, by generating outputs that will be so “harmful”, to use the nomenclature of this kind of doomer, as to cause profound damage to humanity, even if we’re not literally killed.

Short version: If the murder robots don’t get us, the hate speech and misinformation will.

This is a relatively recent doomer concern that branched off from and somewhat took over the “AI risk” movement that I described above. In fact, the terminology of AI risk recently changed from “AI safety” – the term used by people who are worried that AI would literally kill us – to “AI alignment” – the term used by people who are worried about societal “harms”. The original AI safety people are frustrated by this shift, although they don’t know how to put it back in the box – they now advocate that the actual AI risk topic be renamed “AI notkilleveryoneism”, which has not yet been widely adopted but is at least clear.

The tipoff to the nature of the AI societal risk claim is its own term, “AI alignment”. Alignment with what? Human values. Whose human values? Ah, that’s where things get tricky.

As it happens, I have had a front row seat to an analogous situation – the social media “trust and safety” wars. As is now obvious , social media services have been under massive pressure from governments and activists to ban, restrict, censor, and otherwise suppress a wide range of content for many years. And the same concerns of “hate speech” (and its mathematical counterpart, “algorithmic bias”) and “misinformation” are being directly transferred from the social media context to the new frontier of “AI alignment”.

My big learnings from the social media wars are:

On the one hand, there is no absolutist free speech position. First, every country, including the United States, makes at least some content illegal . Second, there are certain kinds of content, like child pornography and incitements to real world violence, that are nearly universally agreed to be off limits – legal or not – by virtually every society. So any technological platform that facilitates or generates content – speech – is going to have some restrictions.

On the other hand, the slippery slope is not a fallacy, it’s an inevitability. Once a framework for restricting even egregiously terrible content is in place – for example, for hate speech, a specific hurtful word, or for misinformation, obviously false claims like “ the Pope is dead ” – a shockingly broad range of government agencies and activist pressure groups and nongovernmental entities will kick into gear and demand ever greater levels of censorship and suppression of whatever speech they view as threatening to society and/or their own personal preferences. They will do this up to and including in ways that are nakedly felony crimes . This cycle in practice can run apparently forever, with the enthusiastic support of authoritarian hall monitors installed throughout our elite power structures. This has been cascading for a decade in social media and with only certain exceptions continues to get more fervent all the time. And so this is the dynamic that has formed around “AI alignment” now. Its proponents claim the wisdom to engineer AI-generated speech and thought that are good for society, and to ban AI-generated speech and thoughts that are bad for society. Its opponents claim that the thought police are breathtakingly arrogant and presumptuous – and often outright criminal, at least in the US – and in fact are seeking to become a new kind of fused government-corporate-academic authoritarian speech dictatorship ripped straight from the pages of George Orwell’s 1984.

As the proponents of both “trust and safety” and “AI alignment” are clustered into the very narrow slice of the global population that characterizes the American coastal elites – which includes many of the people who work in and write about the tech industry – many of my readers will find yourselves primed to argue that dramatic restrictions on AI output are required to avoid destroying society. I will not attempt to talk you out of this now, I will simply state that this is the nature of the demand, and that most people in the world neither agree with your ideology nor want to see you win .

If you don’t agree with the prevailing niche morality that is being imposed on both social media and AI via ever-intensifying speech codes, you should also realize that the fight over what AI is allowed to say/generate will be even more important – by a lot – than the fight over social media censorship. AI is highly likely to be the control layer for everything in the world. How it is allowed to operate is going to matter perhaps more than anything else has ever mattered. You should be aware of how a small and isolated coterie of partisan social engineers are trying to determine that right now, under cover of the age-old claim that they are protecting you.

In short, don’t let the thought police suppress AI.

AI Risk #3: Will AI Take All Our Jobs?

The fear of job loss due variously to mechanization, automation, computerization, or AI has been a recurring panic for hundreds of years, since the original onset of machinery such as the mechanical loom . Even though every new major technology has led to more jobs at higher wages throughout history, each wave of this panic is accompanied by claims that “this time is different” – this is the time it will finally happen, this is the technology that will finally deliver the hammer blow to human labor. And yet, it never happens.

We’ve been through two such technology-driven unemployment panic cycles in our recent past – the outsourcing panic of the 2000’s, and the automation panic of the 2010’s. Notwithstanding many talking heads, pundits, and even tech industry executives pounding the table throughout both decades that mass unemployment was near, by late 2019 – right before the onset of COVID – the world had more jobs at higher wages than ever in history. Nevertheless this mistaken idea will not die . And sure enough, it’s back . This time, we finally have the technology that’s going to take all the jobs and render human workers superfluous – real AI. Surely this time history won’t repeat, and AI will cause mass unemployment – and not rapid economic, job, and wage growth – right?

No, that’s not going to happen – and in fact AI, if allowed to develop and proliferate throughout the economy, may cause the most dramatic and sustained economic boom of all time, with correspondingly record job and wage growth – the exact opposite of the fear. And here’s why.

The core mistake the automation-kills-jobs doomers keep making is called the Lump Of Labor Fallacy . This fallacy is the incorrect notion that there is a fixed amount of labor to be done in the economy at any given time, and either machines do it or people do it – and if machines do it, there will be no work for people to do.

The Lump Of Labor Fallacy flows naturally from naive intuition, but naive intuition here is wrong. When technology is applied to production, we get productivity growth – an increase in output generated by a reduction in inputs. The result is lower prices for goods and services. As prices for goods and services fall, we pay less for them, meaning that we now have extra spending power with which to buy other things. This increases demand in the economy, which drives the creation of new production – including new products and new industries – which then creates new jobs for the people who were replaced by machines in prior jobs. The result is a larger economy with higher material prosperity, more industries, more products, and more jobs.

But the good news doesn’t stop there. We also get higher wages. This is because, at the level of the individual worker, the marketplace sets compensation as a function of the marginal productivity of the worker . A worker in a technology-infused business will be more productive than a worker in a traditional business. The employer will either pay that worker more money as he is now more productive, or another employer will, purely out of self interest. The result is that technology introduced into an industry generally not only increases the number of jobs in the industry but also raises wages.

To summarize, technology empowers people to be more productive. This causes the prices for existing goods and services to fall, and for wages to rise. This in turn causes economic growth and job growth, while motivating the creation of new jobs and new industries. If a market economy is allowed to function normally and if technology is allowed to be introduced freely, this is a perpetual upward cycle that never ends. For, as Milton Friedman observed, “Human wants and needs are endless” – we always want more than we have. A technology-infused market economy is the way we get closer to delivering everything everyone could conceivably want, but never all the way there. And that is why technology doesn’t destroy jobs and never will.

These are such mindblowing ideas for people who have not been exposed to them that it may take you some time to wrap your head around them. But I swear I’m not making them up – in fact you can read all about them in standard economics textbooks. I recommend the chapter The Curse of Machinery in Henry Hazlitt’s Economics In One Lesson, and Frederic Bastiat’s satirical Candlemaker’s Petition to blot out the sun due to its unfair competition with the lighting industry, here modernized for our times .

But this time is different, you’re thinking. This time, with AI, we have the technology that can replace ALL human labor.

But, using the principles I described above, think of what it would mean for literally all existing human labor to be replaced by machines.

It would mean a takeoff rate of economic productivity growth that would be absolutely stratospheric, far beyond any historical precedent. Prices of existing goods and services would drop across the board to virtually zero. Consumer welfare would skyrocket. Consumer spending power would skyrocket. New demand in the economy would explode. Entrepreneurs would create dizzying arrays of new industries, products, and services, and employ as many people and AI as they could as fast as possible to meet all the new demand.

Suppose AI once again replaces that labor? The cycle would repeat, driving consumer welfare, economic growth, and job and wage growth even higher. It would be a straight spiral up to a material utopia that neither Adam Smith or Karl Marx ever dared dream of. We should be so lucky.

Speaking of Karl Marx, the concern about AI taking jobs segues directly into the next claimed AI risk, which is, OK, Marc, suppose AI does take all the jobs, either for bad or for good. Won’t that result in massive and crippling wealth inequality, as the owners of AI reap all the economic rewards and regular people get nothing?

As it happens, this was a central claim of Marxism, that the owners of the means of production – the bourgeoisie – would inevitably steal all societal wealth from the people who do the actual work – the proletariat. This is another fallacy that simply will not die no matter how often it’s disproved by reality. But let’s drive a stake through its heart anyway.

The flaw in this theory is that, as the owner of a piece of technology, it’s not in your own interest to keep it to yourself – in fact the opposite, it’s in your own interest to sell it to as many customers as possible. The largest market in the world for any product is the entire world, all 8 billion of us. And so in reality, every new technology – even ones that start by selling to the rarefied air of high-paying big companies or wealthy consumers – rapidly proliferates until it’s in the hands of the largest possible mass market, ultimately everyone on the planet.

The classic example of this was Elon Musk’s so-called “secret plan” – which he naturally published openly – for Tesla in 2006:

Step 1, Build [expensive] sports car

Step 2, Use that money to build an affordable car

Step 3, Use that money to build an even more affordable car

…which is of course exactly what he’s done, becoming the richest man in the world as a result.

That last point is key. Would Elon be even richer if he only sold cars to rich people today? No. Would he be even richer than that if he only made cars for himself? Of course not. No, he maximizes his own profit by selling to the largest possible market, the world.

In short, everyone gets the thing – as we saw in the past with not just cars but also electricity, radio, computers, the Internet, mobile phones, and search engines. The makers of such technologies are highly motivated to drive down their prices until everyone on the planet can afford them. This is precisely what is already happening in AI – it’s why you can use state of the art generative AI not just at low cost but even for free today in the form of Microsoft Bing and Google Bard – and it is what will continue to happen. Not because such vendors are foolish or generous but precisely because they are greedy – they want to maximize the size of their market, which maximizes their profits.

So what happens is the opposite of technology driving centralization of wealth – individual customers of the technology, ultimately including everyone on the planet, are empowered instead, and capture most of the generated value . As with prior technologies, the companies that build AI – assuming they have to function in a free market – will compete furiously to make this happen.

Marx was wrong then, and he’s wrong now.

This is not to say that inequality is not an issue in our society. It is, it’s just not being driven by technology, it’s being driven by the reverse , by the sectors of the economy that are the most resistant to new technology, that have the most government intervention to prevent the adoption of new technology like AI – specifically housing, education, and health care. The actual risk of AI and inequality is not that AI will cause more inequality but rather that we will not allow AI to be used to reduce inequality .

AI Risk #5: Will AI Lead To Bad People Doing Bad Things?

So far I have explained why four of the five most often proposed risks of AI are not actually real – AI will not come to life and kill us, AI will not ruin our society, AI will not cause mass unemployment, and AI will not cause an ruinous increase in inequality. But now let’s address the fifth, the one I actually agree with: AI will make it easier for bad people to do bad things.

In some sense this is a tautology. Technology is a tool. Tools, starting with fire and rocks, can be used to do good things – cook food and build houses – and bad things – burn people and bludgeon people. Any technology can be used for good or bad. Fair enough. And AI will make it easier for criminals, terrorists, and hostile governments to do bad things, no question.

This causes some people to propose, well, in that case, let’s not take the risk, let’s ban AI now before this can happen. Unfortunately, AI is not some esoteric physical material that is hard to come by, like plutonium. It’s the opposite, it’s the easiest material in the world to come by – math and code.

The AI cat is obviously already out of the bag. You can learn how to build AI from thousands of free online courses, books, papers, and videos, and there are outstanding open source implementations proliferating by the day. AI is like air – it will be everywhere. The level of totalitarian oppression that would be required to arrest that would be so draconian – a world government monitoring and controlling all computers? jackbooted thugs in black helicopters seizing rogue GPUs? – that we would not have a society left to protect.

So instead, there are two very straightforward ways to address the risk of bad people doing bad things with AI, and these are precisely what we should focus on.

First, we have laws on the books to criminalize most of the bad things that anyone is going to do with AI. Hack into the Pentagon? That’s a crime. Steal money from a bank? That’s a crime. Create a bioweapon? That’s a crime. Commit a terrorist act? That’s a crime. We can simply focus on preventing those crimes when we can, and prosecuting them when we cannot. We don’t even need new laws – I’m not aware of a single actual bad use for AI that’s been proposed that’s not already illegal. And if a new bad use is identified, we ban that use. QED.

But you’ll notice what I slipped in there – I said we should focus first on preventing AI-assisted crimes before they happen – wouldn’t such prevention mean banning AI? Well, there’s another way to prevent such actions, and that’s by using AI as a defensive tool. The same capabilities that make AI dangerous in the hands of bad guys with bad goals make it powerful in the hands of good guys with good goals – specifically the good guys whose job it is to prevent bad things from happening.

For example, if you are worried about AI generating fake people and fake videos, the answer is to build new systems where people can verify themselves and real content via cryptographic signatures. Digital creation and alteration of both real and fake content was already here before AI; the answer is not to ban word processors and Photoshop – or AI – but to use technology to build a system that actually solves the problem. And so, second, let’s mount major efforts to use AI for good, legitimate, defensive purposes. Let’s put AI to work in cyberdefense, in biological defense, in hunting terrorists, and in everything else that we do to keep ourselves, our communities, and our nation safe.

There are already many smart people in and out of government doing exactly this, of course – but if we apply all of the effort and brainpower that’s currently fixated on the futile prospect of banning AI to using AI to protect against bad people doing bad things, I think there’s no question a world infused with AI will be much safer than the world we live in today.

The Actual Risk Of Not Pursuing AI With Maximum Force And Speed

There is one final, and real, AI risk that is probably the scariest at all:

AI isn’t just being developed in the relatively free societies of the West, it is also being developed by the Communist Party of the People’s Republic of China.

China has a vastly different vision for AI than we do – they view it as a mechanism for authoritarian population control, full stop. They are not even being secretive about this, they are very clear about it , and they are already pursuing their agenda. And they do not intend to limit their AI strategy to China – they intend to proliferate it all across the world , everywhere they are powering 5G networks, everywhere they are loaning Belt And Road money, everywhere they are providing friendly consumer apps like Tiktok that serve as front ends to their centralized command and control AI.

The single greatest risk of AI is that China wins global AI dominance and we – the United States and the West – do not.

I propose a simple strategy for what to do about this – in fact, the same strategy President Ronald Reagan used to win the first Cold War with the Soviet Union.

“We win, they lose.”

Rather than allowing ungrounded panics around killer AI, “harmful” AI, job-destroying AI, and inequality-generating AI to put us on our back feet, we in the United States and the West should lean into AI as hard as we possibly can.

We should seek to win the race to global AI technological superiority and ensure that China does not.

In the process, we should drive AI into our economy and society as fast and hard as we possibly can, in order to maximize its gains for economic productivity and human potential.

This is the best way both to offset the real AI risks and to ensure that our way of life is not displaced by the much darker Chinese vision .

What Is To Be Done?

I propose a simple plan:

Big AI companies should be allowed to build AI as fast and aggressively as they can – but not allowed to achieve regulatory capture, not allowed to establish a government-protect cartel that is insulated from market competition due to incorrect claims of AI risk. This will maximize the technological and societal payoff from the amazing capabilities of these companies, which are jewels of modern capitalism.
Startup AI companies should be allowed to build AI as fast and aggressively as they can. They should neither confront government-granted protection of big companies, nor should they receive government assistance. They should simply be allowed to compete. If and as startups don’t succeed, their presence in the market will also continuously motivate big companies to be their best – our economies and societies win either way.
Open source AI should be allowed to freely proliferate and compete with both big AI companies and startups. There should be no regulatory barriers to open source whatsoever. Even when open source does not beat companies, its widespread availability is a boon to students all over the world who want to learn how to build and use AI to become part of the technological future, and will ensure that AI is available to everyone who can benefit from it no matter who they are or how much money they have.
To offset the risk of bad people doing bad things with AI, governments working in partnership with the private sector should vigorously engage in each area of potential risk to use AI to maximize society’s defensive capabilities. This shouldn’t be limited to AI-enabled risks but also more general problems such as malnutrition, disease, and climate. AI can be an incredibly powerful tool for solving problems, and we should embrace it as such.
To prevent the risk of China achieving global AI dominance, we should use the full power of our private sector, our scientific establishment, and our governments in concert to drive American and Western AI to absolute global dominance, including ultimately inside China itself. We win, they lose. And that is how we use AI to save the world. It’s time to build.

Legends and Heroes

I close with two simple statements.

The development of AI started in the 1940’s, simultaneous with the invention of the computer . The first scientific paper on neural networks – the architecture of the AI we have today – was published in 1943 . Entire generations of AI scientists over the last 80 years were born, went to school, worked, and in many cases passed away without seeing the payoff that we are receiving now. They are legends, every one.

Today, growing legions of engineers – many of whom are young and may have had grandparents or even great-grandparents involved in the creation of the ideas behind AI – are working to make AI a reality, against a wall of fear-mongering and doomerism that is attempting to paint them as reckless villains. I do not believe they are reckless or villains. They are heroes, every one. My firm and I are thrilled to back as many of them as we can, and we will stand alongside them and their work 100%.

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