humanspiral

AI: help me get straight A+s in school wink wink

Huawei is far ahead of Nvidia in AI clusters despite sanctions made against it, and 5 year behind tech stack. 50% cost/performance advantage over GB300 nvl72, (including building costs) by building outdoor siteable pods with 3 week lead times. CXMT is now most valuable company in China, but because of Huawei sanctions, they sell 64gb ddr5 modules at higher price than Samsung just to Huawei. Huawei needs its own RAM fab because it is harassed by west, and Chinese suppliers price to them with “captured customer” awareness.

We/all need AI for medical breakthrough potential… though.

Open models are still most cheaply hosted on a cloud, with batching and 24/7 use. API rates from developer lab are generally fair. Self hosting does have some significant tangible benefits though: Fine tuning for domain specific to organization, and not letting LLM provider train from your prompts/answers, followed by competing with your organization in the future as a result of “distilling your IP”.

It is burying old news in headline. The consequences/pitfalls of their “strategic shift” are fairly new. The layoffs were explicitly justified for pivot to datacenters that OpenAI will “surely” be able to rent. The new extra problems in that strategic shift just makes them look worse for going all in on the bubble.

There is zero proof of distillation. Minimax 2.7 development was surrounded by moderate use of Claude. M3 is their latest generation, and pretty solid, but its performance cannot be attributed solely (or even 5%) to distillation, and that is only lab that has been accused of significant API use. These claims are all 3-4 months old by now, and Anthropic blocked China access after publishing the accusations. Repeated BS is BS from losers trying to lobby for support.

Also Cursor (recently bought by spacex for $60B) “stole” not only the entirety of kimi 2.5, but all of their users data to train its composer models ontop of kimi 2.5.

article ignores the circular financing bubble. It layers on top all of the hidden costs in servicing their fake revenue and fake stock valuations.

A bigger factor in AI fraud economy, is the circular fake assets and fake revenue. $1T valuations in top 2 LLM providers implies $50B-$100B eventual recurring profits with little to no reinvestment. $1.75T SpaceX valuation was based entirely on fraud of at least 5x more expensive space data centers than earth and supposed 90% of value of company is based on Grok enterprise TAM. IPO was boosted with fake Anthropic paper lease where they were renting gpus for 5x the cost, and over 2x the list price of on demand rates from Nebius/coreweave, but with instant cancel clauses, and “first 2 months free” scam. 11th hour similar Google deal (who owns 6%+ of spacex) further amplified the SpaceX fraud IPO.

The main circular fraud though, is most of the companies (Nvidia not mentioned) in article put an inflated asset on their balance sheet, while trading revenue credits for those investments. Article’s “footnote debt” is largely to serve those revenue credits.

There is no evidence of “theft”/distillation by latest models. Anthropic’s original allegations were weak against deepseek. When someone publishes vibe code to github, it’s not theft from the LLM to train on it. Repeating loser whinning often enough to make it US dogma, doesn’t make it truth. China is a short fuse away from sinking US fleet blockading Iran.