Posted by saucymew 10 hours ago
I haven’t seen a company convincingly demonstrate that this affects them at all. Lots of fluff but nothing compelling. But I have seen many examples by individuals, including myself.
For years I’ve loved poking at video game dev for fun. The main problem has always been art assets. I’m terrible at art and I have a budget of about $0. So I get asset packs off Itch.io and they generally drive the direction of my games because I get what I get (and I don’t get upset). But that’s changed dramatically this year. I’ll spend an hour working through graphics design and generation and then I’ll have what I need. I tweak as I go. So now I can have assets for whatever game I’m thinking of.
Mind you this is barrier to entry. These are shovelware quality assets and I’m not running a business. But now I’m some guy on the internet who can fulfil a hobby of his and develop a skill. Who knows, maybe one day I’ll hit a goldmine idea and commit some real money to it and get a real artist to help!
It reminds me of what GarageBand or iMovie and YouTube and such did for making music and videos so accessible to people who didn’t go to school for any of that, let alone owned complex equipment or expensive licenses to Adobe Thisandthat.
It’s worth reading William Deresiewicz‘ The Death of the Artist. I’m not entirely convinced that marketing that everyone can create art/games/whatever is actually a net positive result for those disciplines.
Ironically though, having lots of people found startups is not good for startup founders, because it means more competition and a much harder time getting noticed. So its unclear that prosumers and startup founders will be the eventual beneficiary here either.
It would be ironic if AI actually ended up destroying economic activity because tasks that were frequently large-dollar-value transactions now become a consumer asking their $20/month AI to do it for them.
that's not destroying economic activity - it's removing a less efficient activity and replace it with a more efficient version. This produces economic surplus.
Imagine saying this for someone digging a hole, that if they use a mechanical digger instead of a hand shovel, they'd destroy economic activity since it now cost less to dig that hole!
Examples:
https://suno.com/s/0gnj4aGD4jgVcpqs
Having those prototypes be AI generated is just a new twist.
You are missing the other side of the story. All those customers, those AI boosted startups want to attract also have access to AI and so, rather than engage the services of those startups, they will find that AI does a good enough job. So those startups lost most of their customers, incoming layoffs :)
A lot of startups are middlemen with snazzy UIs. Middlemen won’t be in as much use in a post AI world, same as devs won’t be as needed (devs are middlemen to working software) or artists (middlemen to art assets)
> It all started going wrong with the printing press.
Nah. We hit a tipping point with social media, and it's all downhill from here, with everything tending towards slop.
Imagery
AI does not produce art.
Not that it matters to anyone but artists and art enjoyers.
https://www.totallyhuman.io/blog/the-surprising-new-number-o...
Generally I have an idea I’ve written down some time ago, usually from a bad pun like Escape Goat (CEO wants to blame it all on you. Get out of the office without getting caught! Also you’re a goat) or Holmes on Homes Deck Building Deck Building Game (where you build a deck of tools and lumber and play hazards to be the first to build a deck). Then I come up with a list of card ideas. I iterate with GPT to make the card images. I prototype out the game. I put it all together and through that process figure out more cards and change things. A style starts to emerge so I replace some with new ones of that style.
I use GIMP to resize and crop and flip and whatnot. I usually ask GPT how to do these tasks as photoshop like apps always escape me.
The end result ends up online and I share them with friends for a laugh or two and usually move on.
Use Google Nano Banana to generate your sprite with a magenta background, then ask it to generate the final frame of the animation you want to create.
Then use Google Flow to create an animation between the two frames with Veo3
Its astoundingly effective, but still rather laborious and lacking in ergonomics. For example the video aspect ratio has to be fixed, and you need to manually fill the correct shade of magenta for transparency keying since the imagen model does not do this perfectly.
IMO Veo3 is good enough to make sprites and animations for an 2000s 2D RTS game in seconds from a basic image sketch and description. It just needs a purpose built UI for gamedev workflows.
If I was not super busy with family and work, I'd build a wrapper around these tools
For transparency I just ask for a bright green or blue background then use GIMP.
For animations I get one frame I like and then ask for it to generate a walking cycle or whatnot. But usually I go for like… 3 frame cycles or 2 frame attacks and such. Because I’m not over reaching, hoping to make some salable end product. Just prototypes and toys, really.
I am also starting to get a feel for generating animated video and am planning to release a children’s series. It’s actually quite difficult to write a prompt that gets you exactly what you want. Hopefully that improves.
But I think the benefits of AI usage will accumulate with the person doing the prompting and their employers. Every AI usage is contextualized, every benefit or loss is also manifested in the local context of usage. Not at the AI provider.
If I take a photo of my skin sore and put it on ChatGPT for advice, it is not OpenAI that is going to get its skin cured. They get a few cents per million tokens. So the AI providers are just utilities, benefits depend on who sets the prompts and and how skillfully they do it. Risks also go to the user, OpenAI assumes no liability.
Users are like investors - they take on the cost, and support the outcomes, good or bad. AI company is like an employee, they don't really share in the profit, only get a fixed salary for work
How many of us know how to use machine code? And we call ourselves software engineers.
This collapses an important distinction. The containerization pioneers weren’t made rich - that’s correct, Malcolm McLean, the shipping magnate who pioneered containerization didn’t die a billionaire. It did however generate enormous wealth through downstream effects by underpinning the rise of East Asian export economies, offshoring, and the retail models of Walmart, Amazon and the like. Most of us are much more likely to benefit from downstream structural shifts of AI rather than owning actual AI infrastructure.
This matters because building the models, training infrastructure, and data centres is capital-intensive, brutally competitive, and may yield thin margins in the long run. The real fortunes are likely to flow to those who can reconfigure industries around the new cost curve.
The AI revolution has only just got started. We've barely worked out basic uses for it. No-one has yet worked out revolutionary new things that are made possible only by AI - mostly we are just shoveling in our existing world view.
I think AI value will mostly be spread. Open AI will be more like Godaddy than Apple. Trying to reduce prices and advertise (with a nice bit of dark patterns). It will make billions, but ultimately by competing its ass off rather than enjoying a moat.
The real moats might be in mineral mining, fabrication of chips etc. This may lead to strained relations between countries.
Having the cutting edge best model won't matter either since 99.9% of people aren't trying to solve new math problems, they are just generating adverts and talking to virtual girlfriends.
IIRC Sam Altman has explicitly said that their plan is to develop AGI and then ask it how to get rich. I can't really buy into the idea that his team is going to fail at this but a bunch of random smaller companies will manage to succeed somehow.
And if modern AI turns into a cash cow for you, unless you're self-hosting your own models, the cloud provider running your AI can hike prices or cut off your access and knock your business over at the drop of a hat. If you're successful enough, it'll be a no-brainer to do it and then offer their own competitor.
If they actually reach AGI they will be rich enough. Maybe they can solve world happiness or hunger instead?
That's what normal people might consider doing if they had a lot of money. The kind of people who actually seem to get really wealthy often have... other pursuits that are often not great for society.
we could have solved world hunger with the amount of money and effort spent on shitty AI
likely decarbonisation of the grid too, with plenty left over
Kill all people who are unhappy or hungry.
Kill all humans. :-)
Absolutely with 150% certainty yes, and probably many. The www started April 30, 1993, facebook started February 4, 2004 - more than ten years until someone really worked out how to use the web as a social connection machine - an idea now so obvious in hindsight that everyone probably assumes we always knew it. That idea was simply left lying around for anyone to pick up and implement rally fropm day one of the WWW. Innovation isn't obvious until it arrives. So yes absolutely the are many glaring opportunities in modern capitalism upon which great fortunes are yet to be made, and in many cases by little people, not big companies.
>> if so, is a random startup founder or 'little guy' going to be the one to discover and exploit it somehow? If so, why wouldn't OpenAI or Anthropic etc get there first given their resources and early access to leading technology?
I don't agree with your suggestion that the existing big guys always make the innovations and collect the treasure.
Why did Zuckerberg make facebook, not Microsoft or Google?
Why did Gates make Microsoft, not IBM?
Why did Steve and Steve make Apple, not Hewlett Packard?
Why did Brin and Page make Google - the worlds biggest advertising machine, not Murdoch?
It had Geocities, chatrooms and messengers, as well as, for a while, a very strong search engine.
Also, there was Classmates.com. A way for people to connect with old friends from high school. But it was a subscription service and few people were desperate enough to pay.
So it's wasn't just the idea waiting around but idea with the right combination of factors, user-growth on the Internet, etc.
And don't forget Facebook's greatest innovation - requiring a .edu email to register. This happened at a time when people were hesitant to tie their real world personas with the scary Internet, and it was a huge advantage: a great marketing angle, a guarantee of 1-to-1 accounts to people, and a natural rate limiter of adoption.
The giant win comes from many stars aligning. Luck is a factor - it's not everything but it plays a role - luck is the description of when everything fell into place at just the right time on top of hard work and cleverness and preparedness.
Google Search <-- AltaVista, Lycos, Yahoo
Facebook <-- MySpace, Friendster
iPod <-- MP3 players (Rio, Creative)
iPhone <-- BlackBerry, Palm, Windows Mobile
Minecraft <-- Infiniminer
Amazon Web Services <-- traditional hosting
Windows (<-- Mac OS (1984), Xerox PARC
Android <-- Symbian, Windows Mobile, Palm
YouTube <-- Vimeo, DailyMotion
Zoom <-- WebEx, Skype, GoToMeeting
mp3 players were commodity items, you could buy one for a couple of dollars, fill it up with your favourite music format (stolen) and off you went.
Phones too - Crackberry was the epitome of sophistication, and technological excellence.
Jobs/Apple didn't create anything "new" in those spheres, instead he added desireability, fancy UX that caught peoples' attentions
There are still lots of currently known problems that could be solved with the help of AI that could make a lot of money - what is the weather going to be when I want to fly to <destination> in n weeks/months time, currently we can only say "the destination will be in <season> which is typically <wet/dry/hot/cold/etc>"
What crops yield the best return next season? (This is a weather as well as a supply and demand problem)
How can we best identify pathways for people whose lifestyles/behaviours are in a context that is causing them and/or society harm (I'm a firm believer that there's no such thing as good/bad, and the real trick to life is figuring out what context is where a certain behaviour belongs, and identifying which context a person is in at any given point in time - we know that psycopathic behaviour is rewarded in business contexts, but punished in social contexts, for example)
Anything is possible, well, except for getting the next season of Firefly
Edit: FTR I think that weather prediction is, indeed, solveable. We just don't have the computing power/algorithms that fully model and calculate the state.. yet
I’d even hold out hope for another season firefly <3
The model did its thing but there was still an aspect of interpretation that was needed to convert data to a story for a few minutes on TV.
For longer range forecasting the task was quite easy for the meteorologists, at least for the UK. Storm systems could be tracked from Africa across the Atlantic to North America and back across the Atlantic to the UK. Hence, with some well known phenomena such as that, my meteorologist friends would have a good general idea of what to expect with no model needed, just an understanding of the observations, obsessively followed, with all the enthusiasm of someone that bets on horses.
My forecasting friends could tell me what to expect weeks out, however, the exact time the rain would fall or even what day would not be a certain bet, but they were rarely wrong about the overall picture.
The atmosphere is far from a closed system, there only has to be one volcano fart somewhere on the planet to throw things out of whack and that is not something that is easy to predict. Predicting how the hard to predict volcano or solar flare affects the weather in a few weeks is beyond what I expect from AI.
I am still waiting for e-commerce platforms to be replaced with Blockchain dapps, and I will add AGI weather forecasting to the queue of not going to happen. Imagine if it hallucinates.
Will AI put bookmakers out of business? Nope. Same goes with weather.
All this "HN is so much better than other Social Media" is thus proved demonstrably false.
Weather systems exhibit chaotic behavior which means that small changes to initial conditions have far reaching effects. This is why even the best weather models are only effective at most a few weeks out. It’s not because we don’t understand how weather works, it’s because the system fundamentally behaves in a way that requires keeping track of many more measurements than is physically possible. It’s precisely because we do understand this phenomenon that we can say with certainty that prediction at those time scales with that accuracy is not possible. There is not some magic formula waiting to be discovered. This isn’t to say that weather prediction can’t improve (e.g I don’t claim we have the best possible weather models now), but that predictions reach an asymptotic limit due to chaos.
There are a handful of extremely simple and well understood systems (I would not call weather simple) that also exhibit this kind of behavior: a common example is some sets of initial conditions of a double-jointed pendulum. The physics are very well understood. Another perhaps more famous one is the three body problem. These two both show that even if you have the exact equations of motion, chaotic systems still cannot be perfectly modeled.
This is what you did say
> Then I don’t think you fully grasp the nature of weather.
Like - how the fck would you know? Even more so, why the fck does your ignorance and inability to think of possibilities, or fully grasp the nature of anything make you think that that sort of comment is remotely appropriate.
You have the uniquely fortunate position to never be able to realise how inept and incompetent you are, but putting that on to other people is definitely only showing everyone your ignorance to the facts of life.
And there was no reply - just downvoting people, like a champ...
innovator's dilemma
This looks certain. Few technologies have had as much adoption by so many individuals as quickly as AI models.
(Not saying everything people are doing has economic value. But some does, and a lot of people are already getting enough informal and personal value that language models are clearly mainstreaming.)
The biggest losers I see are successive waves of disruption to non-physical labor.
As AI capabilities accrue relatively smoothly (perhaps), labor impact will be highly unpredictable as successive non-obvious thresholds are crossed.
The clear winners are the arms dealers. The compute sellers and providers. High capex, incredible market growth.
Nobody had to spend $10 or $100 billion to start making containers.
-AI is leading to cost optimizations for running existing companies, this will lead to less employment and potentially cheaper products. Less people employed temporary will change demand side economics, cheaper operating costs will reduce supply/cost side
-The focus should not just be on LLM's (like in the article). I think LLMs have shown what artificial neural networks are capable of, from material discovery, biological simulation, protein discovery, video generation, image generation, etc. This isn't just creating a cheaper, more efficient way of shipping goods around the world, its creating new classifications of products like the microcontroller invention did.
-The barrier to start businesses is less. A programmer not good at making art can use genAI to make a game. More temporary unemployment from existing companies reducing cost by automating existing work flows may mean that more people will start their own businesses. There will be more diverse products available but will demand be able to sustain the cost of living of these new founders? Human attention, time etc is limited and their may be less money around with less employment but the products themselves should cost cheaper.
-I think people still underestimate what last year/s LLMs and AI models are capable of and what opportunities they open up, Open source models (even if not as good as the latest gen), hardware able to run these open source models becoming cheaper and more capable means many opportunities to tinker with models to create new products in new categories independent of being reliant on the latest gen model providers. Much like people tinkering with microcontrollers in the garage in the early days as the article mentioned.
Based on the points above alone while certain industries (think phone call centers) will be in the red queen race scenario like the OP stated there will new industries unthought of open up creating new wealth for many people.
There's zero change that cost optimizations for existing companies will lead to cheaper products. It will only result in higher profits while companies continue to charge as much as they possibly can for their products while delivering as little as they can possibly get away with.
Self-driving cars are not going to create generational wealth through invention like microprocessors did.
That’s kinda happening, small local models, huggingface communities, civit ai and image models. Lots of hobby builders trying to make use of generative text and images. It just there’s not really anything innovative about text generation since anyone with a pen and paper can generate text and images.