"Writing about the terms of Microsoft's initial $1 billion investment in OpenAI, Lanchester writes: To ensure that investors didn't make an exploitative amount of money from the arrangement, returns were capped at a hundred times the initial investment. Microsoft stood to make a paltry $100 billion. Also, the deal would end if and when OpenAI developed Artificial General Intelligence, on the basis that existing forms of money would no longer have any value."
"Existing forms of money would no longer have any value??!! I've, of course, heard about AGI. I didn't quite realize that it was the tent-pole in this PT Barnum circus that is driving the AI bubble. Say what? I'd heard techbros talk about this alleged outcome - the singularity event that machine-learning scientists are working ferverently towards - in their patented Jungle Book snake-hypnosis interviews.Aswath Damodaran, rather charitably in my opinion, calls it the " CEO as storyteller "."
Microsoft's initial $1 billion investment in OpenAI included a clause capping investor returns at one hundred times the original amount and limited Microsoft's upside to about $100 billion. The agreement also stipulated that the deal would terminate if OpenAI developed Artificial General Intelligence on the rationale that existing forms of money would lose value. Claims about an imminent singularity and AGI function as a central narrative supporting current AI investment fervor. That narrative enables improbable valuations and invites skepticism about conflating speculative future outcomes with present financial structures.
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