Cat
Citizen X.
Wow, I guess I better get used to a ton of USA events and news per day for the next years.
I am super confused about the whole thing.
This is literally a perfect fit for this community.
LOL
I can’t believe what I just read.
Here is a interesting quote from the article:
"How The Hell Is This So Much Cheaper?
That’s a bloody good question, and because I’m me, I have a hypothesis: I do not believe that the companies making foundation models (such as OpenAI and Anthropic) have been incentivized to do more with less, and because their chummy relationships with hyperscalers were focused almost entirely on “make the biggest, most hugest models possible, using the biggest, most hugest chips,” and because the absence of profitability didn’t stop them from raising more money, efficiency was never a major problem for them.
Let me put it in simpler terms: imagine living on $1,500 a month, and then imagine how you’d live on $150,000 a month, and you have to, Brewster’s Millions style, spend as much of it as you can to complete the mission of “live your life.” In the former example, your concern is survival — you have a limited amount of money and must make it go as far as possible, with real sacrifices to be made with every dollar you spend. In the latter, you’re incentivized to splurge, to lean into excess, to pursue a vague remit of “living” your life. Your actions are dictated not by any existential threats — or indeed future planning — but by whatever you perceive to be an opportunity to “live.”
OpenAI and Anthropic are emblematic of what happens when survival takes a backseat to “living.” They have been incentivized by frothy venture capital and public markets desperate for the next big growth market to build bigger models and sell even bigger dreams, like Dario Amodei of Anthropic saying that your AI “could surpass almost all humans at almost everything” “shortly after 2027.” Both OpenAI and Anthropic have effectively lived their existence with the infinite money cheat from The Sims, with both companies bleeding billions of dollars a year after revenue and still operating as if the money will never run out. If they were worried about it, they would have certainly tried to do what DeepSeek has done, except they didn’t have to, because both of them had endless cash and access to GPUs from either Microsoft, Amazon or Google.
OpenAI and Anthropic have never been made to sweat, receiving endless amounts of free marketing from a tech and business media happy to print whatever vapid bullshit they spout, raising money at will (Anthropic is currently raising another $2 billion, valuing the company at $60 billion), all off of a narrative of “we need more money than any company has ever needed before because the things we’re doing have to cost this much.”"
Article.
S&P says effects of Trump’s tariff plans ‘overwhelmingly negative’.
By Brett Rowland | The Center Square
(The Center Square) – A credit-rating agency reported Thursday that President Donald Trump’s proposed tariffs could slow economic growth, increase inflation and push up unemployment.
The S&P Global Ratings economics team, in its first high level estimates, found the potential effects of the tariffs were “overwhelmingly negative,” according to the report.
S&P analysts said the tariffs could slow gross domestic product growth, boost unemployment and inflation. It noted that “the effects on the U.S. are smaller than for trading partners.” Gross domestic product, or GDP, is a measure of economic output.
Trump proposed a 25% tariff on goods imported from Canada and Mexico, and an additional 10% tariff on goods imported from China. Last-minute negotiations ended with a one-month reprieve for both Mexico and Canada.
S&P noted the uncertainty around Trump’s tariff plans creates problems for businesses and U.S. families.
“Uncertainty around the path of U.S. policy and its objectives is high, and confidence bands around our forecasts are correspondingly wide,” according to the S&P report. “Moreover, the ongoing deal-making mode of the new administration risks complicating long-term decision making by both firms and households.”
On Tuesday, Trump paused his plans for 25% tariffs on goods from Mexico and Canada while starting talks with China on a 10% additional tariff over fentanyl smuggling.
On Saturday, Trump ended decades of duty-free trade between the U.S., Mexico, and Canada with a 25% tariff on imported goods from the two countries, with a lower 10% tariff on Canadian energy resources. Trump initially said he’d keep the tariffs in place until the illegal fentanyl trade subsided. He also added a 10% tariff on imports from China over that country’s role in producing the chemicals needed to make fentanyl, a powerful opioid blamed for the majority of U.S. overdose deaths.
Two days after imposing tariffs on U.S. neighbors, Trump relented after reaching temporary deals with Mexico and Canada. Mexican President Claudia Sheinbaum said Mexico will immediately reinforce the border with 10,000 members of the National Guard in a move to stop drug trafficking. Drug trafficking that has been a problem for both the U.S. and Mexico for decades. Canadian Prime Minister Justin Trudeau also promised to reinforce the northern U.S. border in exchange for a pause on tariffs.
China hit back earlier this week with limited tariffs on U.S. imports. The Customs Tariff Commission of the State Council of China put additional tariffs on some U.S. imports while filing a complaint with the World Trade Organization.