• Tech Book of the Month
  • Archive
  • Recommend a Book
  • Choose The Next Book
  • Sign Up
  • About
  • Search
Tech Book of the Month
  • Tech Book of the Month
  • Archive
  • Recommend a Book
  • Choose The Next Book
  • Sign Up
  • About
  • Search

December 2022 - We Are Legion (We Are Bob) by Dennis E. Taylor

This month we take a view into the future to see what a futuristic society full of AI, 5G, and easy space travel.

Tech Themes

  1. Artificial General Intelligence. One of the most significant technological themes in the book is the development of AGI. Exhibiting artificial general intelligence would mean a computer could perform any task that humans could perform. While this is the ultimate vision of the AI hypetrain, there remains a big gap even between current iterations of GPT-4 and AGI. While Bob is able to seamlessly create VR experiences, recognize missles in flight, and upgrade himself, the world of computing today lacks the technology to fit all of these things into a sentient program. A 2019 article hypothesized by 2060 that we’d have full AGI. Other predictions suggest its 200 years away. It is still early days in the world of AGI, and there needs to be a lot more innovation before we get full AGI.

  2. Programs Programming Programs. In the book, Taylor explores the concept of self-programmability when Bob discovers he can rewrite portions of his own code. Bob begins to set up virtual reality simulations for himself, complete with a cat, virtual baseball, and a butler. These VR “home” simulations offer a sense of normalcy that Bob dearly misses after reawakening as an AI. Later, Bob realizes that he is able to replicate his code. Code replication is similar to a type of AI called, Genetic Computing. In Genetic Computing, a program models the reproduction of a population based on a fitness measure and a mutation rate. When Bob replicates himself, he notices that each new Bob has a slightly different personality that all stem from his original personality. These personality changes make some replicants better suited for exploration vs. war vs. maintenance, which could be seen as their individual fitness functions. Genetic algorithms can be used to solve a whole host of machine learning and computing programs.

  3. Technology and Emotion. Before he was killed in a car crash, Bob had sold his successful software company, netting him millions. With the extra money he paid the cryogenic service that would preserve his mind in the event something bad happened to him. After his death, Bob is awoken as an artificial intelligence. Similar to Ender’s Game, he finds himself being trained for an unknown objective, although he quickly understands its military related. Over time he becomes aware that other AI’s are going crazy and discovers that when left alone to process their fate as a war-faring AI, many become immensely depressed. Bob recognizes the immensity of time as a computer, with a clock that can work at the nano-second level. This theme raises important ethical questions about the implications of creating self-aware machines, notably the mental health consequences of inventing self-aware machines that experience the world differently than humans do.Therefore time feels extended beyond comprehension. After a while, Bob discovers an endocrine switch that overrides emotion. He’s curious about its function and switches it on, and immediately becomes overwhelmed with emotions: “You know that sinking feeling you get when you suddenly realize you’ve forgotten something important. Like a combination of fast elevator and urge to hurl. It hit me without any warning or buildup. Maybe it was the sudden release, maybe it was an accumulation of all the suppressed emotions, whatever, I wasn’t ready for the intensity. My thoughts swirled with all the thing that had been bugging me since I woke up…I mourned my lost life. I was still human in the ways that mattered.” Emotion and technology are often thought of as opposite ends of the spectrum, but they are more intertwined then people imagine.

Business Themes

Food_Sustainability.png
  1. Government and AI Future. Another business theme explored in the book is the power and influence of corporations. In the story, Bob's actions and the emergence of AI have a significant impact on the economy, politics, and society. This theme raises questions about the ethics of corporate power and the need for regulation to ensure that technology is used in ways that benefit society as a whole. For example, Bob is controlled by a religious government entity called FAITH, the Free American Independent Theocratic Hegemony, which is led by Christian Fundamentalists. While Taylor’s expression of a future whereby Christian Fundamentalists control the government is a commentary on an increasingly co-mingled church and state environment in the US, it also begs the question about control over AI. In China, the government has a front row seat and access to all potential AI innovations. In the US, a lot of these innovations are controlled by corporations, who will obviously work with the government but who do not necessarily need to sell to the government. At the same time, it would be difficult to envision how the American government would repossess or control all AI developments of underlying corporations. There is still a lot to be figured out between industries and government’s when it comes to AI innovation.

  2. Space business. The book also explores the intersection of technology and business, specifically in the context of space exploration and colonization. Amazon's Kuiper and SpaceX's Starlink are two examples of companies that are driving innovation in this field. These satellite constellations have the potential to revolutionize industries such as agriculture, mining, and energy, by enabling real-time data analytics and remote control of machinery. The book touches on this theme with Bob's use of satellite constellations for communication and coordination in his efforts to explore and colonize new worlds. For example, the book explores the potential consequences of corporate control over space resources, highlighting the importance of ethical guidelines to ensure the equitable distribution of resources. Bob, who is a FAITH probe, fights China, the Australian Federation, and the Brazilian Empire over control of vast new space worlds. In the real world, people are beginning to question the value of these new constellation space businesses. A recent publication at Bernstein research noted: “Project Kuiper appears even more extreme as an investment area with $10B+ already committed. Perhaps there’s a lesson here from Google shutting Loon and stagnant Fiber and Fi businesses, that capital intensive low-margin utilities aren’t worth the effort regardless of how ‘cool’ the technology may be.” The durability of a real, sustainable business model has always been a question for Space focused businesses. As we learned from Carlota Perez’s Technology Revolutions and Financial Capital, the early establishers of infrastructure can either reap windfalls (railroads, steel) or face severe competition (telecom) which drives returns negative. I am skeptical that Kuiper or Starlink have a large enough market to create substantially large businesses that cover the cost of the capital expenditure involved in launching and maintaining the satellites. That being said, I think both organizations will probably learn a lot about space in the process, so should it ever become economically feasible, they would be ready to pounce (if they still exist).

  3. 3D Printing and The Food Question. Bob uses 3D printing technology to replicate himself into new versions with longer and larger appendages. “The area was a beehive of activity. Five version two HEAVEN vessels were under construction. One of which was a trade up from me. The new designs included a bigger reactor and drive, a rail gun, storage and launch facilities for busters, replicant systems with twice the capacity of version one, more room for storing roamers and mining drones, and more cargo capacity in general. The manufacturing systems cranked out parts as fast as the roamers could feed in the raw ore.” Bob creates many many roamers, which he uses in all sorts of ways, as drones, analyzers, and crafters. The plurality of use cases has always been the pitch for 3D computing, however, the businesses involved such as Desktop Metal or 3D Systems have struggeld to really hit mass consumer adoption. Today, it is still too hard for the average non AGI person to build things with a 3D printer, and most jobs are left to seasoned professionals. As the newly created Bob replicant’s peruse the universe for new worlds, original Bob sticks behind to help determine the fate of people on earth. One of the big challenges facing Bob is finding enough food for the world’s population while it is in transit to a new world. This situation is reminiscent of Wall-E, where the entire population of earth leaves after a nuclear attack. Food insecurity, or lacking access to quality food, is a global question, with estimates of over 345 million people facing high levels of food insecurity in 2023. In the US, about 10% of the population or 13.8 million households had low or very low food security. The question is complicated by the cost of sustainable farming, the role that farming and food play in greenhouse gas emissions, and how to use land with a growing population. Bob ulitmately decides to build a farm on a spaceship, which is reminiscent of the vertical farming craze that came through Ag-Tech around 2016-17. Three vertical farming businesses: Aerofarms, Kalera, and NL have gone bankrupt this week, after failing to find a financial sustainable business model. Its still early days in the world of alternative foods and new farming techniques, but we need to figure them out before the world population hits 10B in 2050.

    Dig Deeper

  • OpenAI CEO: When will AGI arrive? | Sam Altman and Lex Fridman

  • Starlink 2 months later ... in a 2min review ✌️

  • We are Legion (We are Bob) | Dennis E. Taylor | Talks at Google

  • What Is 3D Printing and How Does It Work? | Mashable Explains

  • What is Sustainable Agriculture? Episode 1: A Whole-Farm Approach to Sustainability

tags: Bob, AGI, Cryogenics, Genetic Computing, Space, SpaceX, VR, Government, AI, Amazon, Kuiper, Starlink, Google, Farming, Aerofarms, Vertical Farming, 3D Printing, Desktop Metal, 3D Systems, Food Insecurity
categories: Fiction
 

November 2022 - AI Superpowers by Kai Fu Lee

This month we dive into head of Sinovation Ventures, Kai Fu Lee’s book on the future of AI. I disagree with a lot of this book, and overall found it underwhelming. However, there are some interesting ideas that people can take with them into the future.

Tech Themes

  1. Competitive Intensity in China. China's tech industry is fiercely competitive due to the sheer size of its market and the government's support for innovation. Local players like Baidu, Alibaba, and Tencent (BAT) have dominated the industry for years, but new players are emerging every day. This intense competition has created a dynamic tech ecosystem where companies constantly innovate and disrupt traditional industries. The race to dominate emerging technologies like AI, cloud computing, and 5G is particularly intense as these technologies have the potential to reshape entire industries. The markets are so competitive that entrepreneurs use almost absurd tactics to beat out rivals. In one instance, a new social network named Kaixin001 was gaining in popularity. The company was new and didn’t have enough cash to buy the Kaixin.com domain name, so its number one competitor Renren built an exact copy of Kaixin001’s website and bought the Kaixin.com domain name to launch the product. Within months their traffic plummeted and although they eventually won a lawsuit for unfair competition, the $60,000 reward was nothing compared to the loss of customers. Renren itself was a clone of Twitter, started by Wang Xing, the eventual founder of Meituan. In another instance, Tencent and Qihoo 360 got in a repeated blame-game fight, that eventually led to Qihoo Anti-Virus blocking the use of Tencent’s QQ and Tencent suing Qihoo in the first-ever Anti-Monopoly court case. The Groupon Clone Wars were a series of intense price wars between Chinese group buying sites like Meituan and Dianping. At one point, China had 6,000 group-buying sites. These sites copied Groupon's business model of offering discounts on local goods and services but adapted it for the Chinese market. The result was a hyper-competitive market where companies would aggressively discount their services to attract customers. This competition was good for consumers but ultimately unsustainable for the companies involved. Meituan and Dianping have merged to form a dominant force in China's online-to-offline (O2O) market. This merger directly opposed Alibaba’s wishes, and it massively funded competitor Ele.Me to compete. Today, Bytedance and Alibaba are suing Tencent and Meituan over monopolizing the food delivery industry. The competition in China is absolutely brutal - copying isn’t just allowed, it’s encouraged.

  2. AI in Practice. Meituan Dianping and Bytedance are two of China's most successful tech companies. Meituan Dianping started as a group buying site for food and beverage deals but has since expanded into other verticals like travel and entertainment. Bytedance, on the other hand, is the company behind TikTok. Both companies have experienced explosive growth in recent years and are now among the most valuable startups in the world. Their success is a testament to China's ability to create homegrown tech giants that can compete on a global stage. Tiktok has built one of the best and most successful content recommendation algorithms ever. Alibaba's customer service chatbot, AliMe, uses natural language processing to understand and respond to customer queries. It can handle over 90% of customer inquiries without human intervention, allowing for quick and efficient responses. Another example is China Merchants Bank, which uses facial recognition technology to identify customers and provide personalized services. AI-powered recommendation systems are also being used by companies such as JD.com to suggest products based on customers' browsing and purchasing history. Furthermore, AI-powered voice assistants, like those developed by iFlytek and Baidu, are being used to help customers with tasks such as ordering food, booking hotels, and making payments. By leveraging AI technology, Chinese companies can provide customers with faster, more personalized, and more efficient service, ultimately leading to greater customer satisfaction and loyalty.

  3. Chinese Government Investment in AI. China has become a hotbed for entrepreneurship in recent years, with startups popping up in every industry, from e-commerce to healthcare. The government has made it a priority to encourage innovation and entrepreneurship through initiatives like the "Made in China 2025" plan. The rise of angel investors and venture capitalists has also made it easier for entrepreneurs to raise funding. However, the market is still highly competitive, and success is far from guaranteed. The government has set ambitious targets for the industry, including the goal of making China the world's primary AI innovation center by 2030. China is expected to double its investment in AI to $27B by 2026, a simply astounding figure.

Business Themes

Kai-Fu_FourAI.png
  1. Mobile Payments and AI. Mobile payments have exploded in China, with platforms like Alipay and WeChat Pay becoming ubiquitous. China's large population and relatively low adoption of credit cards have made it an ideal market for mobile payments. Today, mobile payments are used for everything from paying for groceries to renting bikes. The convenience of mobile payments has also fueled e-commerce growth, as consumers can easily make purchases on their phones. The future of mobile payments in China looks bright, with experts predicting continued growth and innovation.

  2. Four Types of AI. Lee categorizes AI into four types: internet AI, business AI, perception AI, and autonomous AI. Internet AI refers to algorithms that are used to power online services like search engines and recommendation systems. Business AI is used to optimize business processes and improve efficiency. Perception AI is used to analyze and understand visual and auditory data. Autonomous AI is used to power self-driving cars and other autonomous systems. Each type of AI has its own unique challenges and opportunities, and companies are investing heavily in each area to gain a competitive advantage.

  3. The future of the Chip Industry. In December China announced an absolutely massive stimulus to the chip industry: “China is working on a more than 1 trillion yuan ($143 billion) support package for its semiconductor industry, three sources said, in a major step towards self sufficiency in chips and to counter U.S. moves aimed at slowing its technological advances.“ One of the big geopolitical challenges of today’s age is the role of TSMC in the chip industry. “‘TSMC is just absolutely critical,” says Peter Hanbury, a semiconductor specialist at the Bain & Co. consulting firm. “They basically control the most complicated part of the semiconductor ecosystem, and they’re a near monopoly at the bleeding edge.’” With TSMC located in Taiwan, the proximity to China can be concerning for the US, especially with China repeatedly ratcheting up the tensions. China’s domestic chip industry has not been able to reach the pinnacle of chip development, which is no easy feat. TSMC believes that excellence only comes from rigorous kaizen process and is not the result of larger investment dollars. Only time will tell who will win the chip wars.

    Dig Deeper

  • China's massive investment in artificial intelligence has an insidious downside

  • Mckinsey: The Future of Digital Innovation in China

  • Qihoo 360 CEO Zhou Hongyi Speaks at the 8th CHINICT in Beijing

  • ‘Four Battlegrounds’ shaping the U.S. and China’s AI race

  • The next frontier for AI in China could add $600 billion to its economy

tags: Kai Fu Lee, China, Meituan Dianping, Qihoo360, Wang Xing, Kaixin, Renren, Tencent, Alibaba, Ele.me, Meituan-Dianping, Groupon, Bytedance, Tiktok, JD, iFlytek, Baidu, TSMC, WeChat, AI, Zhou Hongyi
categories: Non-Fiction
 

December 2020 - Do Androids Dream of Electric Sheep? (Blade Runner) by Phillip K. Dick

This month we read the classic sci-fi novel, Do Androids Dream of Electric Sheep? The book follows Rick Deckard, a bounty hunter searching out android robots who are pretending to be human beings. Along the journey, the reader is asked to consider: what does it mean to be alive? Philip K. Dick was a crazy sci-fi writer, producing many books and stories that became famous like The Man in the High Castle, Minority Report, and Total Recall. Although his writing career was prolific, Dick was a troubled individual. He was a heavy drug user, he married five times, he experienced drug-induced “paranormal activities” and he was physically abusive to at least two of his wives. While

Tech Themes

The common, modern depiction of a Turing Test

The common, modern depiction of a Turing Test

  1. Are you an android? In 1950, British computer scientist Alan Turing conceived of the Turing Test, a hypothetical test to determine whether a machine can display intelligent behavior. Turing asked the question, “Can machines think?” and attempted to define a test whereby a human might be tricked into believing a machine was human. The test design is fairly complex but involves a human asking written questions to a machine in another room. If the machine can convince the interrogator that it’s human, then machines can “think.” This Turing test is mirrored in the Voigt-Kampff test used throughout the book. It’s unclear if the test works, and Rick Deckard almost misdiagnoses Rachel in the book's early parts. At the end of the book, the test is turned on its head, with Rick impersonating John Isidore (another human), trying to convince machines (in another room) to let him in. This role-reversal and the questioning of who is an android happens throughout the novel - at times, Rick, Phil Resh, and Harry Bryant might all be androids. These questions are the centerpiece of sci-fi lore. They are also explored in a similar style in the famous movie Ghost in The Shell, where people have now have some organs and limbs replaced by electric parts. When a cyber-attacker named the Puppet Master takes over the machine network of technological parts, it’s unclear who is human, who is an android, and who is possessed by the Puppet Master. In the video game world, this idea has also recently been explored in Detroit: Become Human. In the game, which is set up in choose-your-own-adventure style, players can play as humans or androids and choose whether they stay in character or break out of their controlled, android state. The idea of an interrogator or bounty hunter snooping out rogue machines has been explored across books, film, and video games. As technology has become more prevalent in our lives, the cultural mediums may have changed, but the classic philosophical question - what does it mean to be alive? - remains.

  2. Predicting the future. The Blade Runner movie is famously set in Los Angeles, 2019, while the book is set in 1992 in San Francisco. The book itself was written in 1968, and the movie Blade Runner debuted 14 years later in 1982. In 2019, Blade Runner experienced a comic resurgence as its dark, bleak futuristic society of flying cars, fully intelligent artificial beings, and international space travel never happened. Today, predictions of computing and artificial intelligence abound. In his original Imitation Game paper, Alan Turing made one of the most famous AI predictions: “I believe that in about fifty years’ time it will be possible to programme computers, with a storage capacity of about 10^9, to make them play the imitation game so well that an average interrogator will not have more than 70 percent, chance of making the right identification after five minutes of questioning.” It’s tough to know if this prediction came true (other than the 10^9 part because that is only 1 GB), with some places claiming to have built algorithms that beat the Turing Test. Interestingly, one common theme emerges about these computing predictions - both experts and non-experts typically predict about 15-25 years out. In the Innovators, Walter Issacson posited that this was enough time to allow people to engage in imaginative thinking. Roy Amara, co-founder of the Institute for the Future, probably put it best: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” How long run is the long run, though? As John Maynard Keynes proclaimed: “In the long run we are all dead. Economists set themselves too easy, too useless a task if, in tempestuous seasons, they can only tell us that when the storm is long past the ocean is flat again.” It is seriously hard to estimate the combination of changing technologies and infrastructures, which unlock completely new and cost-effective ways of building things. Will we have self-driving cars in 20 years? Will we have Artificial General Intelligence? Will we have quantum computing? I have no idea.

  3. Technology and nature. One theme repeatedly explored throughout the novel is this balance or tension between technology and nature. World War Terminus has caused a layer of radioactive dust to fall over the world, killing animal life and changing the environment. Mechanical animals are the norm, and Rick dreams about procuring a real horse, ostrich, or goat one day. He regularly checks his Sidney’s Animal & Fowl Catalogue like a stockbroker checking the latest price change. A real animal is significantly more expensive than a mechanical version, despite it being nearly impossible to figure out whether an animal is real or fake. This mirror’s the book's whole premise - a real human is more important and valuable than an Android despite increasingly small differences between Androids and humans. Rick realizes this at the end of the book: “The spider Mercer gave the chickenhead, Isidore; it probably was artificial, too. But it doesn't matter. The electric things have their lives, too. Paltry as those lives are." Technology and nature have a tradeoff in today’s world as well. Cloud computing is certainly energy-intensive, but according to the companies that run those clouds (like Google Cloud or Microsoft Azure), it is significantly less intensive than having companies run their own data centers. Beyond the environmental impact, the behavior of nature is something to consider when operating a data center. A few years ago, Facebook data centers went down when a Snake chewed through a switchboard and took down all services. In 2014, a shark bit through an underwater Google fiber cable, and in 2012 a squirrel took down a Yahoo data center. Animals, technology, and nature are constantly interacting, sometimes in unexpected ways.

Business Themes

Screenshot 2020-12-24 092236.png
  1. Status seeking and the growth of e-commerce. In the battle to achieve status, real animals are a highly sought after status symbol. Early on in the book, Rick engages in a jealous conversation over his neighbor’s real horse: “‘Ever thought of selling your horse?’ Rick asked. He wished to god he had a horse, in fact any animal.” After revealing that his sheep was electric, Rick’s neighbor kindly remarks that he won’t tell the other people in the apartment complex, suggesting that if people knew Rick had an electric sheep (rather than a real one), they would look down on him. While this interaction seems weird, it parallels so many interactions people have today. Vance Packard offered a description of “status seekers” in 1959: “People who are continually straining to surround themselves with visible evidence of the superior rank they are claiming.” As general consumption and wealth rose after World-War II in the US, luxury goods became more attainable for more classes. Globalization of supply chains also increased this trend. When commerce moved online, new shopping styles and behaviors emerged. E-commerce purchases can frequently replace feelings and there is even a psychological disorder caused by excessive purchasing: Buying-shopping disorder (BSD) is characterized by extreme preoccupations with and craving for buying/shopping and by irresistible and identity-seeking urges to possess consumer goods. Patients with BSD buy more consumer goods than they can afford, and those are neither needed nor frequently used. The excessive purchasing is primarily used to regulate emotions, e.g. to get pleasure, relief from negative feelings, or coping with self-discrepancy.” Dick may be signaling that humans seek status and importance compared to their reference groups, regardless of setting or what indicates that status to others, whether it be an expensive handbag or a goat.

  2. Buy goat now, pay-later. 2020 saw the emergence of buy-now, pay-later (BNPL) vendors like Affirm, Klarna, and Afterpay. These companies typically offer zero-interest loans to consumers and get paid a 5% merchant fee for increasing purchases at e-commerce stores. The stores (like Peloton for example) increase sales and the consumers benefit from not having to pay a significant upfront payment. The other way these companies make money is by charging interest payments on specific types of purchases (likely where the merchant doesn’t want to give away a fee). These interest rates can be really, really high - averaging around 10-30% depending on the purchase. This is not a new concept and the idea of payday loans at predatorily high-interest rates has been around for over 30 years. Luckily, the purchases that these BNPL providers are financing tend to not be really high-value products, but it’s still concerning that some people are buying things without understanding the true value they will have to pay in interest. When Rick purchases a real goat, after killing three androids, he finances it, paying $3,000 upfront and entering into a three-year payment contract. Rick’s wife Iran is outraged at the cost of the goat: "‘What are the monthly payments on the goat?’ She held out her hand; reflexively he got out the contract which he had signed, passed it to her. ‘That much,’ she said in a thin voice. ‘The interest; good god — the interest alone. And you did this because you were depressed. Not as a surprise for me, as you originally said.” With BNPL providers now securitizing these consumer loans and selling them off to banks, I wonder if we will see any new regulation come to bear for the benefit of consumers. If people are not careful, they could be locked into long contracts with significant interest over time.

  3. Two case studies in electric animals. Electric animals have actually been invented and while they may not be the equivalent of Goddard from Jimmy Neutron yet, they are pretty funny and interesting case studies. Sony released the AIBO dog in 1999 after many years of research. The original robot dog cost $2,100 (~$3,500 in today’s dollars) and sold about 65,000 units. The programmable software allowed the dogs to be used in a variety of situations including an AI soccer world cup. The initial popularity of the dogs waned, and price wars with new rivals caused sales to decline. In 2006, the AIBO dog was discontinued. In 2018, it made a resurgence and is now a barking flexible model that you can pet, play games with, and feed. Another tale of odd mechanic animals is Boston Dynamics. The company that spun out of MIT in 1992 produced massive quadruped animals including one called BigDog, that was capable of balancing, walking up-hill, and carrying significant amounts of equipment. The Company had trouble selling products though and was acquired by Google in 2013 for an undisclosed sum. This came at a time when Google was pushing heavily into robotics with Google Glass and what would become Waymo - they literally titled this Project Replicant (the name used for Android in the Blade Runner film). After some more years of underperformance, Google sold Boston Dynamics to Softbank in 2017. After years of development, the company finally released a product to consumers for a whopping $75,000. The dog is still pretty creepy and comes without a real face, unlike the Aibo. In 2020, it was announced that Hyundai had acquired an 80% stake in the business at a $1.1B valuation. We are still years away from having electric animals that mimic real-life animals and that may be a good thing.

Dig Deeper

  • Blade Runner: How Its Problems Made It a Better Movie

  • Does Buy Now, Pay Later Threaten Credit Card Issuers?

  • Predicting a Future Where the Future Is Routinely Predicted

  • An Overview of the latest Affirm Consumer Loan Securitization

  • Snakes in a Facebook Data Center

tags: Alan Turing, Ghost in the Shell, Blade Runner, Philip K. Dick, Sony, AI, AGI, Google, Microsoft, Yahoo, BNPL, Affirm, Klarna, Afterpay, e-Commerce, Securitization, Jimmy Neutron, AIBO, Boston Dynamics, Softbank, Hyundai, Facebook, Waymo, Rick Deckard, Detroit: Become Human, Los Angeles, San Francisco
categories: Fiction
 

December 2019 - The Moon is a Harsh Mistress by Robert A. Heinlein

This futuristic, anti-establishment thriller is one of Elon Musk’s favorite books. While Heinlein’s novel can drag on with little action, The Moon is a Harsh Mistress presents an interesting war story and predicts several technological revolutions.

Tech Themes

  1. Mike, the self-aware computer and IBM. Mycroft Holmes, Heinlein’s self-aware, artificially intelligent computer is a friendly, funny and focused companion to Manny, Wyoh and Prof throughout the novel. Mike’s massive hardware construction is analogous to the way companies are viewing Artificial Intelligence today. Mike’s AI is more closely related to Artificial General Intelligence, which imagines a machine that can go beyond the standard Turing Test, with further abilities to plan, learn, communicate in natural language and act on objects. The 1960s were filled with predictions of futuristic robots and machines. Ideas were popularized not only in books like The Moon is a Harsh Mistress but also in films like 2001: A Space Odyssey, where the intelligent computer, HAL 9000, attempts to overthrow the crew. In 1965, Herbert Simon, a noble prize winner, exclaimed: “machines will be capable, within twenty years, of doing any work a man can do.” As surprising as it may seem today, the dominant technology company of the 1960’s was IBM, known for its System/360 model. Heinlein even mentions Thomas Watson and IBM at Mike’s introduction: “Mike was not official name; I had nicknamed him for Mycroft Holmes, in a story written by Dr. Watson before he founded IBM. This story character would just sit and think--and that's what Mike did. Mike was a fair dinkum thinkum, sharpest computer you'll ever meet.” Mike’s construction is similar to that of present day IBM Watson, who’s computer was able to win Jeopardy, but has struggled to gain traction in the market. IBM and Heinlein approached the computer development in a similar way, Heinlein foresaw a massive computer with tons of hardware linked into it: “They kept hooking hardware into him--decision-action boxes to let him boss other computers, bank on bank of additional memories, more banks of associational neural nets, another tubful of twelve-digit random numbers, a greatly augmented temporary memory. Human brain has around ten-to-the tenth neurons. By third year Mike had better than one and a half times that number of neuristors.” This is the classic IBM approach – leverage all of the hardware possible and create a massive database of query-able information. This actually does work well for information retrieval like Jeopardy, but stumbles precariously on new information and lack of data, which is why IBM has struggled with Watson applications to date.

  2. Artificial General Intelligence. Mike is clearly equipped with artificial general intelligence (AGI); he has the ability to securely communicate in plain language, retrieve any of the world’s information, see via cameras and hear via microphones. As discussed above, Heinlein’s construction of Mike is clearly hardware focused, which makes sense considering the book was published in the sixties, before software was considered important. In contrast to the 1960s, today, AGI is primarily addressed from an algorithmic, software angle. One of the leading research institutions (excluding the massive tech companies) is OpenAI, an organization who’s mission is: “To ensure that artificial general intelligence (AGI)—by which we mean highly autonomous systems that outperform humans at most economically valuable work—benefits all of humanity.” OpenAI was started by several people including Elon Musk and Sam Altman, founder of Y Combinator, a famous startup incubator based in Silicon Valley. OpenAI just raised $1 billion from Microsoft to pursue its artificial algorithms and is likely making the most progress when it comes to AGI. The organization has released numerous modules that allow developers to explore the wide-ranging capabilities of AI, from music creation, to color modulation. But software alone is not going to be enough to achieve full AGI. OpenAI has acknowledged that the largest machine learning training runs have been run on increasingly more hardware: “Of course, the use of massive compute sometimes just exposes the shortcomings of our current algorithms.” As we discussed before (companies are building their own hardware for this purpose, link to building their own hardware), and the degradation of Moore’s Law imposes a serious threat to achieving full Artificial General Intelligence.

  3. Deep Learning, Adam Selene, and Deep Fakes. Heinlein successfully predicted machine’s ability to create novel images. As the group plans to take the rebellion public, Mike is able to create a depiction of Adam Selene that can appear on television and be the face of the revolution: “We waited in silence. Then screen showed neutral gray with a hint of scan lines. Went black again, then a faint light filled middle and congealed into cloudy areas light and dark, ellipsoid. Not a face, but suggestion of face that one sees in cloud patterns covering Terra. It cleared a little and reminded me of pictures alleged to be ectoplasm. A ghost of a face. Suddenly firmed and we saw "Adam Selene." Was a still picture of a mature man. No background, just a face as if trimmed out of a print. Yet was, to me, "Adam Selene." Could not he anybody else.” Image generation and manipulation has long been a hot topic among AI researchers. The research frequently leverages a technique called Deep Learning, which is a play on classically used Artificial Neural Networks. A 2012 landmark paper from the University of Toronto student Ilya Sutskever, who went on to be a founder at OpenAI, applied deep learning to the problem of image classification with incredible success. Deep learning and computer vision have been inseparable ever since. One part of research focuses on a video focused image superimposition technique called Deep Fakes, which became popular earlier this year. As shown here, these videos are essentially merging existing images and footage with a changing facial structure, which is remarkable and scary at the same time. Deep fakes are gaining so much attention that even the government is focused on learning more about them. Heinlein was early to the game, imaging a computer could create a novel image. I can only imagine how he’d feel about Deep Fakes.

Business Themes

correspondence.jpg
news-20190228.gif
  1. Video Conferencing. Manny and the rest of the members of the revolution communicate through encrypted phone conversations and video conferences. While this was certainly ahead of its time, video conferencing was first imagined in the late 1800s. Despite a clear demand for the technology, it took until the late 2000s arguably, to reach appoint where mass video communication was easily accessible for businesses (Zoom Video) and individuals (FaceTime, Skype, etc.) This industry has constantly evolved and there are platforms today that offer both secure chat and video such as Microsoft Teams and Cisco Webex. The entire industry is a lesson in execution. The idea was dreamed up so long ago, but it took hundreds of years and multiple product iterations to get to a de-facto standard in the market. Microsoft purchased Skype in 2011 for $8.5B, the same year that Eric Yuan founded Zoom. This wasn’t Microsoft’s first inroads into video either, in 2003, Microsoft bought Placeware and was supposed to overtake the market. But they didn’t and Webex continued to be a major industry player before getting acquired by Cisco. Over time Skype popularity has waned, and now, Microsoft Teams has a fully functioning video platform separate from Skype – something that Webex did years ago. Markets are constantly in a state of evolution, and its important to see what has worked well. Skype and Zoom both succeeded by appealing to free users, Skype initially focused on free consumers, and Zoom focused on free users within businesses. WebEx has always been enterprise focused but they had to be, because bandwidth costs were too high to support a video platform. Teams will go to market as a next-generation alternate/augmentation of Outlook; it will be interesting to see what happens going forward.

  2. Privacy and Secure Communication. As part of the revolution’s communication, a secure, isolated message system is created whereby not only are conversations fully encrypted and undetected by authorities but also individuals are unable to speak with more than two others in their revolution tree. Today, there are significant concerns about secure communication – people want it, but they also do not. Facebook has declared that they will implement end to end encryption despite warnings from the government not to do so. Other mobile applications like Telegram and Signal promote secure messaging and are frequently used by reporters for anonymous tips. While encryption is beneficial for those messaging, it does raise concerns about who has access to what information. Should a company have access to secure messages? Should the government have access to secure messages? Apple has always stayed strong in its privacy declaration, but has had its own missteps. This is a difficult question and the solution must be well thought out, taking into account unintended consequences of sweeping regulation in any direction.

  3. Conglomerates. LuNoHo Co is the conglomerate that the revolution utilized to build a massive catapult and embezzle funds. While Mike’s microtransaction financial fraud is interesting (“But bear in mind that an auditor must assume that machines are honest.”), the design of LuNoHo Co. which is described as part bank, part engineering firm, and part oil and gas exploitation firm, interestingly addresses the conventional business wisdom of the times. In the 1960s, coming out of World War II, conglomerates began to really take hold across many developing nations. The 1960s were a period of low interest rates, which allowed firms to perform leveraged buyouts of other companies (using low interest loans), sometimes in a completely unrelated set of industries. Activision was once part of Vivendi, a former waste management, energy, construction, water and property conglomerate. The rationale for these moves was often that a much bigger organization could centralize general costs like accounting, finance, legal and other costs that touched every aspect of the business. However, when interest rates rose in the late 70s and early 80s, several conglomerate profits fell, and the synergies promised at the outset of the deal turned out to be more difficult to realize than initially assumed. Conglomerates are incredibly popular in Asia, often times supported by the government. In 2013, McKinsey estimated: “Over the past decade, conglomerates in South Korea accounted for about 80 percent of the largest 50 companies by revenues. In India, the figure is a whopping 90 percent. Meanwhile, China’s conglomerates (excluding state-owned enterprises) represented about 40 percent of its largest 50 companies in 2010, up from less than 20 percent a decade before.” Softbank, the famous Japanese conglomerate and creator of the vision fund, was originally a shrink-wrap software distributor but now is part VC and part Telecommunications provider. We’ve discussed the current state of Chinese internet conglomerates, Alibaba and Tencent who each own several different business lines. Over the coming years, as internet access in Asia grows more pervasive and the potential for economic downturn increases, it will be interesting to see if these conglomerates break apart and focus on their core businesses.

Dig Deeper

  • The rise and fall of Toshiba

  • Using Artificial Intelligence to Create Talking Images

  • MIT Lecture on Image Classification via Deep Learning

  • 2019 Trends in the Video Conferencing Industry

  • The Moon is a Harsh Mistress may be a movie

tags: Facebook, IBM, Zoom, Artificial Intelligence, AI, AGI, Watson, OpenAI, Y Combinator, Microsoft, Moore's Law, Deep Fakes, Deep Learning, Elon Musk, Skype, WebEx, Cisco, Apple, Activision, Conglomerate, Softbank, Alibaba, Tencent, Vision Fund, China, Asia, batch2
categories: Fiction
 

About Contact Us | Recommend a Book Disclaimer