Fears of a single AI company achieving runaway dominance are proving unfounded, as the number of frontier models has tripled in a year. Newcomers can use techniques like synthetic data generation to effectively "drink the milkshake" of incumbents, reverse-engineering their intelligence at lower costs.
For the first time in years, the perceived leap in LLM capabilities has slowed. While models have improved, the cost increase (from $20 to $200/month for top-tier access) is not matched by a proportional increase in practical utility, suggesting a potential plateau or diminishing returns.
Building software traditionally required minimal capital. However, advanced AI development introduces high compute costs, with users reporting spending hundreds on a single project. This trend could re-erect financial barriers to entry in software, making it a capital-intensive endeavor similar to hardware.
A key gap between AI and human intelligence is the lack of experiential learning. Unlike a human who improves on a job over time, an LLM is stateless. It doesn't truly learn from interactions; it's the same static model for every user, which is a major barrier to AGI.
Jack Dorsey champions "vibe coding," using AI to generate code, allowing developers to operate at a higher level of abstraction. This shifts focus from syntax (like semicolons) to orchestration, making software creation more accessible and freeing developers to be more creative.
Jack Dorsey's BitChat uses a Bluetooth mesh network, enabling communication independent of the internet. This technology acts as a "backstop for freedom" because, like physical cash or on-chain Bitcoin, it provides a fundamental layer of communication that cannot be easily censored or shut down by authorities.
While AI inference can be decentralized, training the most powerful models demands extreme centralization of compute. The necessity for high-bandwidth, low-latency communication between GPUs means the best models are trained by concentrating hardware in the smallest possible physical space, a direct contradiction to decentralized ideals.
For years, the tech industry criticized Bitcoin's energy use. Now, the massive energy needs of AI training have forced Silicon Valley to prioritize energy abundance over purely "green" initiatives. Companies like Meta are building huge natural gas-powered data centers, a major ideological shift.