Comment AI datacenters could be used to corner stockmarket (Score 1) 105
Thanks for the video link. I had read a recent interview with Eliezer Yudkowsky (but not his book), which I referenced in another comment to this article.
https://f6ffb3fa-34ce-43c1-939d-77e64deb3c0c.atarimworker.io/comments....
One thing I realized part way through that video is a possible explanation for something that has been nagging me in the back of my mind. Why build huge AI datacenters? I can see the current economic imperative to try to make money offering AI via proprietary Software as a Service (SaaS) and also time-sharing GPUs like old Mainframes (given people may make queries relatively slowly leaving lots of idle GPU time otherwise if not timesharing). But why not just install smaller compute nodes across in existing datacenters across the country? That would avoid issues of extreme amounts of electricity and cooling needed for huge new centers. Maybe there is some argument one could make about doing AI training, but overall that is not likely to be a long-term thing. The bigger commercial money is in doing inference with models -- and maybe tuning them for customer-supplied data via RAG (Retrieval-Augmented Generation).
But after seeing the part of the video talking about running Sable on 200,000 GPUs as a test, and in conjunction with my previous post on AI being used to corner the stock market, a possibility occurred to me. The only real need for big datacenters may be so the GPUs can talk to each other quickly locally to make a huge combined system (like in the video when Sable was run for 16 hours and made its plans). While I think it unlikely that AI in the near term could plot a world-takeover thriller/apocalypse like in the video, it is quite likely that AI under the direction of a few humans who have a "love of money" could do all sorts of currently *legal* things related to finance that changed the world in a way that benefited them (privatizing gains) while as a side effect hurt millions or even billions of people (socializing costs and risks).
So consider this (implicit?) business plan:
1.. Convince investors to fund building your huge AI data center ostensibly to offer services to the general public eventually.
2. Use most of the capacity of your huge data center as a coherent single system over the course of a few weeks or months to corner part of the stock market and generate billions of dollars in profits (during some ostensible "testing phase" or "training phase").
3. Use the billions in profits to buy out your investors and take the company private -- without ever having to really deliver on offering substantial AI services promised to the public.
4. Keep expanding this operation to trillions in profits from cornering all of the stock market, and then commodities, and more.
5. Use the trillions of profits to buy out competitors and/or get legislation written to shut them down if you can't buy them.
To succeed at this plan of financial world domination, you probably would have to be the first to try this with a big datacenters -- which could explain why AI companies are in such a crazy rush to get there first (even if there are plenty of other alternative reasons companies are recklessly speeding forward too).
It's not like this hasn't been tried before AI:
"Regulators Seek Formula for Handling Algorithmic Trading"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fthecorner.eu%2Ffinancial...
"Placing multiple orders within seconds through computer programs is a new trading strategy being adopted by an increasing number of institutional investors, and one that regulators are taking a closer look at over worries this so-called algorithmic trading is disrupting the country's stumbling stock market.
On August 3, the Shanghai and Shenzhen stock exchanges said they have identified and punished at least 42 trading accounts that were suspected of involvement in algorithmic trading in a way that distorted the market. Twenty-eight were ordered to suspend trading for three months, including accounts owned by the U.S. hedge fund Citadel Securities, a Beijing hedge fund called YRD Investment Co. and Ningbo Lingjun Investment LLP.
Then, on August 26, the China Financial Futures Exchange announced that 164 investors will be suspended from trading over high daily trading frequency.
The suspension came after the China Securities Regulatory Commission (CSRC) vowed to crack down on malicious short-sellers and market manipulators amid market turmoil. The regulator said the practices of algorithmic traders, who use automated trading programs to place sell or buy orders in high frequency, tends to amplify market fluctuations.
The country's stock market has been highly volatile over the past few months. More than US$ 3 trillion in market value of all domestically listed stocks has vanished from a market peak reached in mid-June, despite government measures to halt the slide by buying shares and barring major shareholders of companies from selling their stakes, among others.
But AI in huge datacenters could supercharge this. Think "Skippy" from the "Expeditionary Force" series by Craig Alanson -- with a brain essentially the size of a planet made up of GPUs -- who manipulated Earth's stockmarket and so on as a sort of hobby...
Or maybe I have just been reading too many books like this one?
"How to Take Over the World: Practical Schemes and Scientific Solutions for the Aspiring Supervillain -- Kindle Edition" by Ryan North
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.amazon.com%2Fgp%2Fprod...
"Taking over the world is a lot of work. Any supervillain is bound to have questions: What's the perfect location for a floating secret base? What zany heist will fund my wildly ambitious plans? How do I control the weather, destroy the internet, and never, ever die?
Bestselling author and award-winning comics writer Ryan North has the answers. In this introduction to the science of comic-book supervillainy, he details a number of outlandish villainous schemes that harness the potential of today's most advanced technologies. Picking up where How to Invent Everything left off, his explanations are as fun and elucidating as they are completely absurd.
You don't have to be a criminal mastermind to share a supervillain's interest in cutting-edge science and technology. This book doesn't just reveal how to take over the world--it also shows how you could save it. This sly guide to some of the greatest threats facing humanity accessibly explores emerging techniques to extend human life spans, combat cyberterrorism, communicate across millennia, and finally make Jurassic Park a reality."
Of course, an ASI might not be so interested in participating in a scarcity-oriented market if it has read and understood my sig: "The biggest challenge of the 21st century is the irony of technologies of abundance in the hands of those still thinking in terms of scarcity."
Crossing fingers -- as I wonder if the idea in my sig (distilled from the writing of many other people including Albert Einstein, Bucky Fuller, Ursula K. Le Guinn, Lewis Mumford, James P. Hogan, etc) realized with love and compassion may be the only thing that can save us from ourselves as we continue to play around with post-scarcity technology?