1. EachPod

AI Propaganda

Author
Pragmatic AI Labs
Published
Tue 18 Feb 2025
Episode Link
podcast.paiml.com

AI Propaganda and Market Reality

Key Points

  • LLMs are pattern matching systems, not true AI - similar to established clustering and regression techniques
  • Innovation follows non-linear path, contrary to VC expectations
  • VCs require exponential returns - 1/100 investments must generate massive profits
  • Perfect competition emerging in AI market - open source models reaching parity with commercial ones

Technical Context

  • LLMs extend existing data science tools:
    • K-means clustering
    • Linear regression
    • Recommendation engines
  • Pattern matching in multi-dimensional space ≠ intelligence

Market Dynamics

  • VCs invested expecting exponential growth
  • Getting logarithmic returns instead
  • Fear driving two contradictory narratives:
    • "Use AI or lose job"
    • "AI will take your jobs"

Historical Parallel

Steam engine (1700s) → combustion engine → electric cars (1910-2025)
Demonstrates long adoption curves for transformative tech

Recommendation

Use LLMs pragmatically:

  • Beneficial for code tasks
  • Prefer open source implementations
  • Ignore hype from vested interests

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