Who’s in the loop? How humans create AI that then creates itself

If you think about the approximate lifecycle of AI that’s being built today, it goes something like this:

1. Write algorithms (eg, neural nets)
2. Scrape data (eg, text and images)
3. Train (1) algorithms on (2) scraped data to create models (eg, GPT-4, Stable Diffusion)
4. Use human feedback (eg, RLHF) to fine tune (3) models – including addition of explicit rules / handicaps to prevent abuse
5. Build products using those (4) fine tuned models – both end-user products (like MidJourney) and API endpoints (like OpenAI’s API)
6. Let users do things with the (5) products (eg, write essays, suggest code, translate languages). Inputs > Outputs
7. Users and AI owners then evaluate the (6) results against objectives like profitability, usefulness, controllability, etc. Based on these evaluations, steps (1) through (6) are further refined and rebuilt and improved

Each of those steps initially involved humans. Many humans doing many things. Humans wrote the math and code that went into the machine learning algorithms. Humans wrote the scripts and tools that scraped the data. Etc.

And very steadily, very incrementally, very interestingly, humans are automating and removing themselves from each of those steps.

AI agents are one example of this. Self-directed AI agents can take roughly defined goals and execute multi-step action plans, removing humans from steps (6) and (7).

Data scraping is mostly automated (2). And I think AI and automation can already do much of the cleaning and labeling (eg, ETL), in ways that are better cheaper faster than humans.

AI is being taught how to write and train its own algorithms (steps 1 and 3).

I’m not sure about state of AI art for steps (4) and (5). Step 4 (human feedback) seems hardest because, well, ipso facto. But there are early signs “human feedback” is not all that unique, whether using AI to generate synthetic data, or to perform tasks by “acting like humans” (eg, acting like a therapist), or labeling images, etc.

Step (5) is definitely within reach, given all the viral Twitter threads we’ve seen where AI can build websites and apps and debug code.

So eventually we’ll have AI that can do most if not all of steps 1-7. AI that can write itself, train itself, go out and do stuff in the world, evaluate how well it’s done, and then improve on all of the above. All at digital speed, scale, and with incremental costs falling to zero.

Truly something to behold. And in that world, where will humans be most useful, if anywhere?

Just a fascinating thought experiment, is all. 🧐🧐🧐

These times are only gettin’ weirder.

Using ChatGPT (GPT-4) to study Chinese song lyrics

Recently I wanted to understand the lyrics for é’čŠ±ē“·, but I couldn’t find good translations through Google since the writing is fairly dense and symbolic. For me it reads like a Tang poem or something. Google Translate was nearly meaningless.

So I turned to ChatGPT (using GPT-4) and boy did it deliver! I was giddy when I saw the first reply to my simple prompt:

chatgpt gpt4 song lyrics

Wow! It’s got everything I need.

I really want to use ChatGPT more. One of the downsides of being in my late 30s is that I’m so *comfortable* with my existing tech habits that it takes more consistent reminding and constant pushing to build a new one.

But this leap feels to me like it’s bigger than when internet search first became fairly good. I’m thinking back to like, the improvement that was Altavista, let alone Google

The best description of “The Metaverse” that I’ve seen yet: “the Metaverse is not one thing or one piece of technology. It is every technology”

Andrew was an early NFT / crypto adopter, and is now jumping full steam into the metaverse. So it’s no surprise he lives in the future. And this recent essay of his was the best description I’ve yet read about the metaverse, ie, what Facebook spent $10B and renamed its company to achieve.

Link: https://andrewsteinwold.substack.com/p/metaverse-what-it-is-how-it-will

Some excerpts:

In my eyes, the Metaverse is not one thing or one piece of technology. It is every technology – the internet, AR, VR, AI, crypto, NFTs, etc all working together in one seamless system.

I agree that it will encompass many things, there is no clear dividing line (except maybe between “online” and “offline”)

Economic – The financial system of the metaverse will likely be accessible to all, transparent, and operate on blockchain rails. If you want to buy a digital good in the metaverse and have to wait 5 days for the wire to hit the seller’s account in Germany, that is not going to cut it.

Surprise – I agree! Though there will also be centralized options too, but the most innovative – and likely most valuable – components will be blockchain-based, open source, and permissionless.

In the past, we had “internet” companies, but now almost every company is a “tech” company. Similarly, the metaverse is a collection of technologies and capabilities that will soon transform every company into a ā€œmetaverseā€ company. With the world becoming more digital and connected, the impact of the metaverse will be felt by everyone and everything.

Also agree. Just as every company who wanted to stay competitive and relevant had to incorporate “the internet” over the past 20 years, everyone today will – willingly or otherwise – integrate “the metaverse”. And probably “AI.”

5 Minute Crypto – šŸ¤– GPT-4 rewriting my show notes šŸ¤–

DALLĀ·E 2023-04-25 19.52.23 - cute robot taking notes while listening to a podcast, cartoon anime style
I’ve been recording a daily 5 minute crypto news update for the last few weeks. Today I asked GPT-4 to rewrite the show notes (which you can see here) into a “simple concise article”. Here’s what it gave me – color me impressed!

Title: Crypto Daily Update: Onchain Billionaires, Ethereum’s Next Upgrade, Dune Dashboards, Market Structure, and Arthur Hayes

On Tuesday, April 25th, Bitcoin is trading at around $27,300, and Ethereum is at $1,800, both experiencing a 1% drop in the last 24 hours.

Blockworks recently published an article discussing “onchain billionaires” who own identifiable crypto wallets with assets worth more than $1 billion. Among them are Ethereum’s Vitalik Buterin, Ripple’s Jed McCaleb, TRON’s Justin Sun, and the mysterious Bitcoin inventor Satoshi Nakamoto.

Ethereum’s next upgrade, called Cancun-Deneb, was announced by the core developers. The upgrade will consist of two parts: Cancun as the execution layer and Deneb as the consensus layer. The most significant part of the upgrade is EIP 4844, dubbed proto danksharding, which will lower transaction costs for layer 2 solutions like Optimism and Arbitrum.

Dune dashboard data provided by 0xkofi reveals insights into rollup economics. Arbitrum has more than double Optimism’s total transaction fee revenues, with ZKSync coming in third. Arbitrum also posts twice the amount of transaction data and has had nearly seven times more builders deploying smart contracts this month compared to Optimism.

A tweet thread by Zero IKA covers basic market structures, including bullish, bearish, and neutral/ranging. Moving averages can be utilized to understand market shifts, such as 9-day or 200-day moving averages.

Q1 insights from Electric Capital highlight the growth of crypto developers. Notable takeaways include the presence of 7,000 full-time developers, a dip in the number of new developers and repositories, and high growth ecosystems such as Aztec Network, Metamask, and Hyperledger.

GOP Majority Whip Tom Emmer criticizes SEC Chair Gary Gensler in a tweet thread, accusing him of incompetence, abuse of power, and contradictory statements that create chaos in the market.

Ethereum is a unique triple-point asset, combining properties of capital assets, transformable assets, and store-of-value assets. This unprecedented combination creates a new investment and ownership paradigm.

Arthur Hayes shares his latest essay, “Exit Liquidity,” discussing the future of trade, the use of multiple currencies, and potential roles of gold and Bitcoin in the global economy.

(written by GPT-4; art by DALL-E)

America is not in decline…?

amurica

The “America is failing” trade seems crowded these days. And this Economist essay reminded me to take a broader and longer-term perspective. (full archive.is version here)

Some highlights:

America remains the world’s richest, most productive and most innovative big economy. By an impressive number of measures, it is leaving its peers ever further in the dust.

America has nearly a third more workers than in 1990, compared with a tenth in western Europe and Japan. And, perhaps surprisingly, more of them have graduate and postgraduate degrees. True, Americans work more hours on average than Europeans and the Japanese. But they are significantly more productive than both.

America was blessed with a younger population and a higher fertility rate than other rich countries. That may not be easily remedied elsewhere, but countries can at least take inspiration from America’s high share of immigrants, who in 2021 made up 17% of its workforce, compared with less than 3% in ageing Japan.

However…

The share of prime-age American men who are not in work has been rising for years and is higher than in Britain, France and Germany. And life expectancy in America lags shamefully behind others in the rich world, mainly on account of too many younger people dying from drug overdoses and gun violence. Tackling such problems should be easier when the economy as a whole is growing. But America’s poisonous politics are no help.