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OpenAI Gets $110 BILLION Bailout... Anthropic Goes to War

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0:00

The single biggest ever round of funding

0:04

has just been completed by Open AI. Sam

0:07

Alortman has just announced they have

0:09

secured 110 billion. That is over double

0:14

the amount they managed last year, which

0:16

was the previous record for the amount

0:18

that was actually generated in a funding

0:20

round. This is from Amazon. It's from

0:22

Nvidia and it's from Soft Bank. Sam says

0:24

this over on Twitter. We have raised 110

0:27

billion round of funding from Amazon,

0:29

Nvidia, and SoftBank. We are grateful

0:31

for the support from our partners and

0:33

have a lot of work to do to bring you

0:34

the tools that you deserve. We are

0:36

excited to partner with Amazon to bring

0:37

a new generation of products to market,

0:39

especially around new enterprise

0:41

products like the stateful runtime

0:43

environment. We're also very excited to

0:45

make great use of Tranium, which is of

0:47

course Amazon's TPU. We continue to have

0:50

great relationship with Microsoft. Uh

0:52

Microsoft have also issued a statement

0:54

as well. um as stateless API will remain

0:56

exclusive to Azour and we will build out

0:59

much more capacity with them. Nvidia has

1:02

been long one of our most important

1:03

partners and their chips are the

1:05

foundation of AI computing. We are

1:07

grateful for their continued trust in us

1:08

and excited to run their systems in AWS.

1:11

Their upcoming generation should be

1:13

great. SoftBank is an incredible high

1:15

conviction partner. We are excited to

1:17

welcome them again as a major investor

1:19

and to do much more across their

1:21

ecosystem. So obviously this is massive

1:24

news in the whole AI world. This means

1:27

the likes of your memory prices, the

1:30

likes of your storage prices, the likes

1:32

of your GPUs, they are going to

1:34

continue, I'm afraid, to be a pain up

1:37

the ass because this level of investment

1:39

is insane. It has also got to be said

1:41

this is again the continuation of that

1:43

circular investing. This is companies

1:46

Amazon, it is companies like Nvidia.

1:48

Well, it's not like it is these

1:49

companies. Uh, SoftBank is a little bit

1:51

different as they're a financial

1:52

investment company. But when you're

1:54

looking at Nvidia, when you're looking

1:55

at Amazon, they are investing into

1:57

OpenAI to give OpenAI the ability to

1:59

then give them the money back to then

2:01

sell them more of their well their

2:04

products, whether that's TPUs from

2:05

Amazon, whether that's uh GPUs from

2:07

Nvidia or most likely TPUs from Nvidia

2:10

as well at some point as they are

2:12

moving. Remember they acquired Grock and

2:14

not Elon Musk's AI bot, but Grock, the

2:16

TPU manufacturer and designer. So they

2:18

are moving into that space as well. But

2:20

this is bonkers levels of investment. If

2:22

this money is there, if this money is

2:24

real, I'm afraid it means that well,

2:26

yeah, RAM is going to continue to be

2:28

violently expensive. Now Samman speaks

2:31

to CNBC and uh as again you can see the

2:33

the headline of their article and we we

2:37

won't watch the video because it's too

2:38

long, but what we'll do is just break

2:39

this down. So they say obviously 100

2:41

billion 110 billion has been raised um

2:44

and that's more than uh what was raised

2:46

more than double from last year. Um

2:48

Amazon invested 50 billion Nvidia has

2:51

invested 30 billion and SoftBank has

2:53

invested 30 billion in the round. OpenAI

2:55

said in a release on Friday the

2:57

investment boasts uh boosts sorry OpenAI

2:59

to a 730

3:02

billion pre- money valuation which marks

3:05

a big jump from its 500 billion

3:07

valuation in a secondary financing in

3:10

October. Other investors are expected to

3:12

join as the round progresses OpenAI said

3:14

so this could get even bigger. Remember

3:16

Sam Alma went to the Middle East. He's

3:18

obviously been flirting with other

3:20

countries and other investments and

3:21

other companies and everything else. Um,

3:23

so who knows where this number is going

3:25

to go. We're super excited about this

3:26

deal. Open AAI uh Sam Alman told CNBC's

3:29

Squirtbox on Friday. AI is going to

3:31

happen everywhere. It's transforming the

3:32

whole economy and the world needs a lot

3:34

of collective cube computing power to

3:35

meet the demand. In addition to its

3:37

participation in the funding round,

3:39

Amazon announced a multi-year strategic

3:41

partnership with OpenAI. The companies

3:42

will develop customized models that will

3:44

help power Amazon's customerf facing

3:46

applications as part of the agreement.

3:48

According to a release, OpenAI said that

3:50

it's expecting its 38 billion agreement

3:53

with Amazon Web Services um expanding

3:56

sorry expanding it by 100 billion over

3:59

the next 8 years. AWS will also serve as

4:01

the exclusive third party cloud

4:03

distribution provider for OpenAI's

4:05

enterprise platform Frontier which it

4:07

unveiled earlier this month which again

4:09

is a direct competitor to the likes of

4:11

Anthropic. The company said Amazon's 50

4:14

billion investment in open AAI will

4:16

start with initial commitment of 15

4:18

billion followed by another 35 billion

4:20

in the coming months when certain

4:21

conditions are met. Now these conditions

4:24

um were well they've been reported on

4:26

that they're essentially if open AI

4:28

makes artificial general intelligence so

4:30

an artificial intelligence that's on the

4:32

same level as a human then they will get

4:33

the rest of this money or if they go

4:36

public then they'll get the rest of this

4:37

money. So this might be an indication

4:39

that there's going to be some form of

4:40

IPO with uh OpenAI. And again, the thing

4:43

with an with an IPO of OpenAI, so it's

4:46

initial public offering, them listing on

4:48

a stock market would be uh what's going

4:51

to happen? That could annihilate the

4:53

entire economy because if they get

4:55

smashed and there's a huge selloff, it

4:57

will affect every company inside the AI

4:59

complex. So I'm very sure they will only

5:02

do that if two things are met. The first

5:04

one, they are running out of money. They

5:06

need to do it to keep their company

5:07

alive. It's the only way they can secure

5:09

funding. And they've actually shown us

5:11

that they can secure funding from other

5:12

companies at the moment currently. But

5:14

whether that's going to continue in the

5:16

next couple of years, who knows whether

5:17

they can generate the amount of money

5:19

they require for their 600 billion plus

5:21

investment in data center buildouts um

5:24

and compute buildout by 2030. Again, who

5:27

knows? The other um sort of way of

5:30

looking at it is if it becomes the right

5:31

time to do it, if AI genuinely does

5:34

start transforming the world, then open

5:36

AI will IPO because then it will almost

5:39

be a no-brainer. Obviously, at the

5:40

moment, this is all up in the air and

5:42

it's not really I mean, what does it

5:44

transform? Uh it's so early right now in

5:45

the AI space and OpenAI is off to an

5:48

amazing start. Amazon CEO Andy Jasse

5:50

told CNBC Squatbox on Friday, they're

5:53

going to be one of the very big winners.

5:54

We believe longterm I think we can help

5:56

them quite a bit as part of this

5:57

partnership. OpenAI said Friday that

5:59

nothing is about uh that nothing about

6:01

its announcement in any way changes its

6:03

terms of partnership with Microsoft. Now

6:05

I'm going to show you the Microsoft

6:06

thing in a moment but you've got to

6:08

remember Microsoft obviously are

6:10

distancing themselves from OpenAI. Um

6:13

and they also don't want to be seen to

6:14

be left behind because again that will

6:16

affect their share price if OpenAI does

6:18

go parabolic. So there's all a little

6:20

bit of back and forth. We're still

6:21

friends. We're still loving it. Yeah.

6:22

Yeah. Yeah. Yeah. Yeah. and all that

6:23

crap. Um, in the 3 years plus, uh, in

6:27

the three years plus since launching

6:28

chat chat

6:30

since what chat PGT [laughter] great

6:34

reported here, OpenAI has reshaped the

6:37

technology industry and defined an era

6:38

of generative artificial intelligence.

6:40

But the company has to keep reeling in

6:41

cash in order to finance its ambitions,

6:43

particularly in paying for its graphics

6:45

processing units, GPUs, and

6:46

infrastructure. Uh, as part of it

6:48

announcement on Friday, Open II said

6:49

it's expanding its long-standing

6:50

collaboration with Nvidia, which

6:52

dominates the GPU market. OpenAI will

6:54

use 3 GW of dedicated inference capacity

6:57

and 2 GW of training capacity on

6:59

Nvidia's Vera Rubin systems. Those are

7:01

the new Nvidia chips, which I don't

7:04

think they're available yet, but they're

7:05

they're starting to roll out. I think

7:06

they're in production or something. Um,

7:09

OpenI has been telling investors that

7:11

it's now targeting roughly 600 billion

7:12

in total compute spend by 2030, months

7:15

after Sam Alman touted 1.4 4 trillion

7:17

infrastructure commitments. The company

7:19

is providing a lower number and more

7:21

defined timeline for its planned

7:22

spending. Sources told CNBC as broader

7:25

concerns mounted that the expansion

7:26

ambitions were too great for the

7:28

potential revenue that would follow.

7:29

While OpenAI continues to lead the

7:31

consumer AI market, it faces

7:32

intensifying competition from Google's

7:34

Gemini and is trying to ramp up its

7:36

offerings for the enterprise market

7:37

where rival Anthropic has an early lead.

7:39

OpenAI is projecting that its total

7:41

revenue for 2030 will be more than 280

7:43

billion with nearly equal contributions

7:45

from its consumer and enterprise

7:47

businesses, said the sources who asked

7:49

not to be named because the information

7:50

is private. Okay, here's the joint

7:53

statement between OpenAI and Microsoft.

7:55

Again, remember this is all about

7:57

optics. Microsoft is so heavily down the

7:59

rabbit hole of shove absolutely dog [ __ ]

8:01

AI into everything. Everything is a

8:04

co-pilot assisted bag of [ __ ] that they

8:07

cannot be seen to be left behind. but

8:09

they're also moving away from open AI,

8:11

but they also don't want to just like

8:13

rip the cord cuz that might cause way

8:15

too much damage. So, you've got this

8:16

back and forth where it's everyone's

8:18

friends, right? So, this is what they

8:20

say. Um, since 2019, Microsoft and Open

8:22

have worked together to advance

8:24

artificial intelligence responsibly and

8:26

to make its benefits broadly accessible.

8:27

What began as a research partnership has

8:29

grown into one of the most consequential

8:31

collaborations in technology, grounded

8:33

in mutual trust, deep technical

8:34

integration, and long-term commitment to

8:36

innovation. This has totally not been

8:38

generated by AI. By the way, it probably

8:40

has. [laughter]

8:41

As as conversations around AI

8:43

investments and partnerships grow and as

8:45

OpenAI announces new funding and its new

8:47

partners, as they did today, we want to

8:49

ensure these announcements are

8:50

understood within the existing construct

8:52

of our partnership. Nothing about

8:53

today's announcement in any way changes

8:55

[clears throat] the terms of Microsoft

8:56

and Open AI's relationship that have

8:57

been previously shared in our joint blog

8:59

in October 2025. The partnership remains

9:02

strong and central and it's in bold.

9:04

Good lord. Microsoft and Open AI

9:05

continue to work closely across

9:07

research, engineering, product

9:08

development, building on years of deep

9:09

collaboration and shared success. Our IP

9:12

relationship continues unhinged. Now,

9:14

you got to remember, I'm going to kind

9:16

of like from from what I can recall from

9:18

memory on this, there is a very complex

9:20

partnership here between Microsoft and

9:22

um OpenAI in terms of their IP, so their

9:25

intellectual property when it comes to

9:27

the models that they're designing. and

9:28

Microsoft can almost like this is a very

9:31

basic way of viewing it but can copy and

9:33

paste their models in a way and sort of

9:35

take them because of the deal they've

9:36

got and they're saying this remains

9:38

unchanged so we're still going to have

9:40

control of that and it's not like Amazon

9:42

is now going to be able to just copy and

9:44

paste the models from open AI at least

9:46

that's what they're trying to say

9:47

because remember Amazon and Microsoft

9:49

major competitors uh through through

9:51

loads of their products like cloud

9:52

obviously and through compute and all of

9:54

that stuff Microsoft maintains its

9:56

exclusive license to access the

9:57

intellectual property across open air

9:59

models and products. Collaborations like

10:01

the partnership between Open and Amazon

10:02

were always contemplating under our new

10:05

agreement and Microsoft is excited to

10:06

see what they build together. They're

10:08

not excited. They're like, "Fuck off. We

10:10

want it all for ourselves." But these

10:12

are the things that are happening. And

10:14

also, what do they want? I mean, there

10:15

there's literally nothing there at the

10:16

moment. [laughter] Anyway, uh our

10:19

commercial and revenue sharing

10:20

relationship remains unchanged. The

10:21

ongoing revenue share arrangement

10:23

remains unchanged and has always

10:25

included sharing revenue from

10:26

partnership between OpenAI and other

10:28

cloud providers. Azour remains the

10:30

exclusive cloud provider of stateless

10:32

open AI APIs. Microsoft is the didn't

10:35

didn't they say in their uh initial

10:38

press release that I just read off that

10:39

they're they're looking forward to AWS

10:42

stateless um compute or something.

10:44

Anyway, maybe I'm losing my mind. All of

10:47

that provides access to Open AI's models

10:48

and IP. These APIs can be purchased from

10:50

Microsoft or directly from OpenAI.

10:52

Customers and developers benefit from

10:54

Azour's global infrastructure security

10:56

and enterprisegrade capabilities of

10:57

scale. Any stateless API calls to OpenAI

11:00

models that result from a collaboration

11:01

between OpenAI and any third party

11:03

including Amazon will be hosted on

11:04

Azure. So they're trying to say the

11:06

connection is always going to be there

11:08

to the Microsoft cloud. So Microsoft

11:09

will still be making money. OpenAI's

11:12

first party products including Frontier

11:14

will continue to be hosted on Azour. Now

11:15

that's a thing which they're launching

11:17

to try and take on uh anthropic and the

11:19

whole enterprise AI world. AGI

11:22

definition and processes are unchanged.

11:25

The contractual definition of AGI and

11:26

the process for determinate as that has

11:29

been achieved remains the same. The

11:30

partnership supports OpenAI's growth as

11:32

OpenAI scales and continues to have

11:34

flexibility to commit to additional

11:35

compute elsewhere including through

11:37

largecale infrastructure initiatives

11:39

such as the Stargate project. Uh and the

11:41

partnership was designed to give

11:42

Microsoft an open AI room to pursue new

11:44

opportunities independently while

11:46

continuing to collaborate which each

11:47

company is doing together independently.

11:49

We remain committed to our partnership

11:51

and a shared mission that brought us

11:52

together. We continue to work side by

11:54

side to deliver powerful AI tools,

11:56

advanced responsible development and

11:58

ensure that AI benefits people and

12:00

organizations everywhere. So yeah, I

12:02

mean they that statement is just a

12:04

straight up look we need to actually

12:07

it's damage limitation, right? Clearly,

12:09

OpenAI is getting into bed with

12:11

everybody it can. It needs the money.

12:13

Microsoft, we're not willing to give

12:14

them the money or a large percentage of

12:16

the money, a large chunk of the money.

12:18

You've got to ask yourself, why is that?

12:20

Is it because Microsoft think that

12:21

they're not great? Is it because

12:23

Microsoft have got their, you know, they

12:24

can they're happy with the relationship

12:26

they've got at the moment. There's a lot

12:28

of things going on here, but I do think

12:29

the the sort of kicker here is

12:31

Microsoft's AI to me seems like the

12:33

worst of the bunch. It's not good. So,

12:36

this is the official release from

12:37

OpenAI. So this is a scaling AI for

12:39

everyone. And what I want to do is just

12:40

bring us down to the bottom here because

12:42

this again highlights what their

12:43

partnership is between Amazon and Nvidia

12:46

and and Open AI. So for Amazon, they say

12:48

uh OpenAI and Amazon today announced a

12:50

multi-year strategic partnership to

12:52

accelerate AI innovation for enterprise

12:54

startups and end consumers around the

12:56

world. You can read the full press

12:57

release there. And with Nvidia, we're

13:00

also expanding our long uh collaboration

13:02

with Nvidia, including the use of 3 GW

13:04

of dedicated inference capacity and 2 GW

13:07

of training on Vera Rubin. This builds

13:08

on Hopper and Blackwell systems already

13:10

in operation across Microsoft um OCI and

13:14

Coreweave. Together, this capital

13:15

infrastructure expansion strengthens our

13:17

ability to train and deploy frontier

13:19

models at a global scale. And then we

13:20

got some quotes from everyone involved.

13:22

to open AI say we're pushing the

13:24

frontiers across infrastructure research

13:26

and products to make AI more capable,

13:28

reliable, and broadly useful. SoftBank,

13:29

Nvidia, and Amazon are long-term

13:31

partners who share our ambition. I mean,

13:33

obviously, no [ __ ] SoftBank is heavily

13:35

invested into this. Nvidia is selling

13:37

you like the the picks in the gold mine,

13:40

in the gold rush, and and gold, I should

13:42

say, gold rush. This ain't football. And

13:46

and Amazon. Yeah. They're long-term

13:48

partners who share our ambition to turn

13:50

real signific scientific progress into

13:52

systems that deliver meaningful benefits

13:54

for people at a global scale. Building

13:55

which isn't generative AI slop which I'm

13:58

seeing everywhere and it's killing me

14:00

that works for everyone will require

14:01

deep collaboration across the stack and

14:03

we're excited to do this together. So

14:04

that's from Sam Amazon. So Andy Jasse,

14:07

the president and CEO of Amazon says, "A

14:09

strategic partnership with Open AI

14:11

creates significant value for the

14:12

shareholders for both companies and our

14:14

investment reflects conviction in the

14:16

trajectory. With some of the most in

14:18

inventive and widely adopted products

14:20

and great IP and a very talented team,

14:22

OpenAI is well positioned for a

14:23

long-term success. We're excited about

14:25

the opportunity to build with them and

14:27

invest in the company and partnership

14:28

over a long period of time." and video

14:30

say so from big bad Jensen artificial

14:33

intelligence is the most consequential

14:34

technology of our time and open AI is at

14:36

the forefront we've been privileged to

14:38

partner with open AI since its earliest

14:40

days at as it is delivered one

14:42

breakthrough after another together we

14:43

will continue to push the frontier

14:45

building the infrastructure for the age

14:47

of AI and scaling its benefits to serve

14:49

industries and societies worldwide I

14:51

mean Jensen if open AI open AI goes down

14:54

Jensen goes down you know what I'm

14:56

saying so like they're they are

14:57

intertwined AI is transforming the world

15:00

and an unprecedented pay. Softbank open

15:02

AI uh is a clear leader with world-class

15:06

technology and an unparalleled global

15:07

user base and we have strong conviction

15:09

in its continued growth through this

15:11

additional investment. We will

15:12

accelerate OpenAI's research and

15:14

ecosystem expansion while advancing our

15:16

own ASI strategy. You know how Nvidia is

15:21

very proud in saying, "Yeah, we use

15:23

loads of AI coding bots now at Nvidia.

15:26

Everyone's got one. We all use it. We

15:28

generate code with it. Look what video

15:31

cards are reporting. Uh Nvidia say

15:34

February the 26, 11 a.m. PT update. We

15:36

have discovered a bug in the Game Ready

15:38

and Studio 5959

15:42

WHQL drivers and I've removed the

15:44

downloads temporarily while our team

15:45

investigates. For users that have

15:47

already installed this driver or

15:48

experiencing issues with fan control,

15:50

please roll back. Now, I will say an

15:52

issue with fan control in your graphics

15:54

driver is probably a bad thing,

15:56

especially if it's a big beefy Nvidia

15:58

GPU that's consuming untold amounts of

16:01

power and getting ridiculously hot. It's

16:03

going to die if the fans [laughter]

16:05

don't work. I'm going to just say, I

16:07

mean, this has not been confir been

16:08

confirmed, but I'm just going to say

16:09

this is due to their AI sloth coding.

16:12

It's got to be. So, we're going to see

16:14

more of this. Mark my words. Now I don't

16:15

know whether you've been following this

16:17

but um the war department in America so

16:20

the department of defense which was

16:21

renamed to the war department um

16:23

basically the American military they

16:26

want unrestricted access to anthropics

16:29

AI models for things like autonomous

16:31

drone swarms um I think like all fancy

16:34

stuff like kill chain automatic kill

16:36

chain whatever basically just an AI

16:38

system that can just identify targets

16:40

and attack them doesn't need any kind of

16:42

oversight from a human um anthrop IC

16:45

were given a deadline of today and

16:47

Anthropic said no we don't want anything

16:49

to do with this but still the war

16:52

department are saying oh no we're still

16:54

talking to anthropic and now open AI has

16:56

got involved in this this is um one of

17:00

those things where it becomes this sort

17:01

of wider philosophical issue of AI and

17:05

its impact on society and where are the

17:07

guard rails who is going to implement

17:09

the guardrails that is the big thing

17:11

here we just don't know

17:14

obviously ly these AI labs all want to

17:16

just continue this like relentless march

17:19

of progress almost at the cost of

17:21

everything else and we're seeing it's at

17:22

the cost of the environment the cost of

17:24

water the cost of electricity anyway

17:26

anthropics say this a statement on our

17:29

discussions with the department of war I

17:32

do want to start with this um quote from

17:34

the statement they say regardless these

17:36

threats do not change our position we

17:39

cannot in good conscience aced to their

17:42

request so they're saying they cannot

17:45

agree with this. So we'll go through

17:46

this now and read it because it is fair

17:48

to read this. I can't just take quotes

17:49

out of this. This is um you know this is

17:51

a statement we need to go through. So a

17:53

statement from Dario on our discussions

17:55

with the department of war. I believe

17:57

deeply in the existential importance of

17:59

using AI to defend the United States and

18:01

other democracies and to defeat

18:03

autocratic adversaries.

18:06

Anthropic has therefore worked

18:07

proactively to deploy our models to the

18:09

Department of War and the intelligence

18:11

community. We were the first frontier AI

18:13

company to deploy our models in the US

18:15

government's classified networks. The

18:17

first to deploy them at the national

18:18

laboratories and the first to provide

18:20

custom models for national security

18:22

customers. Claude is extensively

18:24

deployed across the Department of War

18:25

and other national security agencies for

18:27

mission critical applications such as

18:29

intelligence analysis, modeling and

18:31

simulation, operational planning, cyber

18:33

operations, and more. Anthropic has also

18:36

acted to defend America's lead in AI

18:38

even when it's against the company's

18:40

short-term interest. We chose to forgo

18:42

several hundred million dollars in

18:43

revenue to cut off the use of claude by

18:45

firms linked to the Chinese Communist

18:47

Party. Some of whom who have been

18:49

designated by the Department of War as

18:51

Chinese military companies shut down CCP

18:54

sponsored cyber attacks that attempted

18:56

to abuse Claude and have advocated for

18:57

strong export controls on chips to

18:59

ensure a democratic advantage. Enthropic

19:02

understands that the Department of War,

19:04

not private companies, makes military

19:06

decisions. We have never raised

19:08

objections to particular military

19:10

operations nor attempted to limit the

19:12

use of our technology in an ad hoc

19:14

manner. However, in a narrow set of

19:16

cases, we believe AI can undermine

19:19

rather than defend democratic values.

19:21

Some uses are also simply outside the

19:23

bounds of what today's technology can

19:25

safely, reliably do. Two such use cases

19:28

have never been included in our

19:31

contracts of the Department of War, and

19:32

we believe they should not be included

19:34

now. So mass domestic surveillance.

19:38

We support the use of AI for lawful

19:40

foreign intelligence and counter

19:42

intelligence missions. But using these

19:44

systems for mass domestic surveillance

19:46

is incompatible with democratic values.

19:49

AIdriven mass surveillance prevents

19:51

serious novel risks to our fundamental

19:53

liberties. To the extent that such

19:55

surveillance is currently legal, this is

19:57

only because the law has not yet caught

19:59

up with the rapidly growing capabilities

20:01

of AI. For example, under current law,

20:04

the government can purchase detailed

20:06

records of Americans movements, web

20:07

browsing, and associations from public

20:09

sources without obtaining a warrant. A

20:11

practice the intelligence community has

20:13

acknowledged raises privacy concerns and

20:15

that has generated bipartisan opposition

20:17

in Congress. Powerful AI makes it

20:20

possible to assemble this scattered,

20:21

individually innocuous data into a

20:24

comprehensive picture of any person's

20:26

life automatically and at a massive

20:29

scale. And the next one is fully

20:32

autonomous weapons. Partially autonomous

20:35

weapons like those used today in Ukraine

20:37

are vital to the defense of democracy.

20:39

Even fully autonomous weapons like uh

20:41

those that take humans out of the loop

20:43

entirely and automate selecting and

20:45

engaging targets may prove critical for

20:47

our national defense. But today,

20:49

frontier AI systems are simply not

20:51

reliable enough to power fully

20:53

autonomous weapons. We will not

20:55

knowingly provide a product that puts

20:57

America's war fighters and civilians at

20:59

risk. We have offered to work directly

21:00

with the Department of War and research

21:02

and development to improve the

21:03

reliability of these systems, but they

21:05

have not accepted this offer. In

21:07

addition, without proper oversight,

21:09

fully autonomous weapons cannot be

21:11

relied upon to exercise the critical

21:13

judgment that our highly trained

21:15

professional troops exhibit every day.

21:17

They need to be deployed with proper

21:19

guard rails, which don't exist today.

21:21

So, we do need to discuss both of these

21:22

points. I mean, the first point, mass

21:24

surveillance. I mean, if you're

21:25

American, I'm pretty sure that goes

21:27

against your constitutional rights as

21:29

well. For me, in the UK, obviously, I

21:30

don't want mass surveillance. It's

21:32

terrible. We always look to countries

21:33

like China and we say, "Yeah, China

21:35

under mass AI surveillance." Even in the

21:37

UK, there's facial recognition cameras

21:39

that I've seen them. They deploy them.

21:40

They're like AI mobile things. They have

21:42

them on roads. Um, and they say that

21:43

they use to um see if people are using

21:47

mobile phones, but I bet you they can

21:48

detect who the person is and all kinds

21:50

of stuff. And that is a very worrying

21:52

path to go down where everything becomes

21:56

well you know like you've just got mass

21:59

surveillance like everything is being

22:01

recorded by the government that's never

22:02

a state you want to be in that is just

22:05

that is that is bad that is super bad so

22:07

I am glad that anthropic are against

22:09

that but I'm not too sure they can stop

22:11

it and I'm pretty sure it's already

22:12

happening anyway uh they just don't want

22:14

to use their models used for that but

22:16

most likely they probably are being used

22:18

for that now the other component here is

22:19

fully autonomous weapon happens. And

22:21

again, this goes back to that cliche

22:22

thing of Terminator, Skynet. The first

22:26

thing Skynet does when it realizes uh

22:29

what it becomes aware is I'll attack the

22:32

USSR or I'll attack Russia because

22:33

they'll fire all their nuclear weapons

22:35

back at me and kill all of these humans,

22:37

which I don't want, and then I can crack

22:38

on with whatever I want to do. It seems

22:40

to me crazy, in fact, batshit insane to

22:43

hand over the the entire like kill chain

22:46

to an AI because you don't really know

22:48

what it's going to do. They make

22:49

mistakes. you use AI now you get basic

22:51

mistakes back from the AI you can't make

22:53

mistakes if you're going to stop

22:54

deploying ordinance what the hell's

22:56

going to happen there so again the

22:59

systems just not advanced enough for

23:01

that but probably at some point they

23:03

will be and they will be used for that

23:05

so it does to me unfortunately feel like

23:08

this is just postponing the inevitable

23:10

they go on to say or Dario goes on to

23:12

say uh to our knowledge these two

23:13

exceptions have not been a barrier to

23:14

accelerating the adoption and use of our

23:16

models within our armed forces to date

23:18

the department of war has stated They

23:19

will only contract with AI companies who

23:21

aced to any lawful use and remove

23:24

safeguards in the case mentioned above.

23:26

They have threatened to remove us from

23:27

their systems if we maintain these

23:29

safeguards. They have also threatened to

23:31

designate us a supply chain risk, a

23:33

label reserved for US adversaries never

23:36

before applied to an American company

23:38

and to invoke the Defense Production Act

23:40

to force the safeguards removal. These

23:42

latter two threats are inherently

23:44

contradictory. One labels security risk,

23:46

the other labels claude as essential to

23:48

national security. Regardless, these

23:51

threats do not change our position. We

23:52

cannot in good conscience a seed to this

23:54

request. It is the department's

23:56

prerogative to select contracts most

23:58

aligned with their vision. But given the

24:00

substantial value that anthropics

24:01

technology provides to our armed forces,

24:03

we hope they reconsider. Our strong

24:05

preference is to continue to serve the

24:07

Department of War and our war fighters

24:09

with our two requested safeguards in

24:11

place. Should the department choose to

24:12

offboard Anthropic, we will work to

24:14

enable a smooth transition to another

24:16

provider, avoiding any disruption to

24:18

ongoing military planning, operations,

24:20

or other critical missions. Our models

24:22

will be available in the expansive terms

24:24

we have proposed as for as long as

24:26

required. We remain ready to continue

24:28

our work to support national security of

24:29

the United States. So over on

24:32

investing.com, OpenAI's Altman seeks to

24:34

deescalate anthropic Pentagon standoff,

24:37

which was reported initially by the Wall

24:38

Street Journal. So, OpenAI chief

24:41

executive uh Sam Alman told staff

24:43

Thursday that the company was working on

24:45

a potential deal that could help resolve

24:47

the standoff between Anthropic and the

24:49

Pentagon over battlefield AI use. No

24:52

deal has been signed and the talks could

24:53

fall through. According to reporting

24:55

from the Wall Street Journal, citing a

24:56

person familiar with the matter. In a

24:58

note to staff on Thursday viewed by the

25:00

Wall Street Journal, Alman wrote that

25:01

OpenAI was exploring an agreement with

25:03

the Department of War that would allow

25:05

its models to be deployed in classified

25:07

environments while aligning with company

25:08

principles. The proposed contract would

25:11

cover any use except those which are

25:13

unlawful or unsuited for cloud

25:15

deployments such as domestic

25:17

surveillance and autonomous offensive

25:18

weapons. But again, you've got to

25:20

remember with this stuff, you this

25:22

stuff, it's like you can just flip a

25:23

switch and immediately they can do those

25:25

things. Maybe not to the, you know, a

25:29

super accurate ability, especially not

25:31

for autonomous weapons right now, but it

25:32

is coming and it's getting very close.

25:34

So, I almost feel like all of this

25:35

stuff, it kind of doesn't matter because

25:37

eventually they will just have AI that

25:39

will do this. And where that takes us as

25:41

a as a species, I don't even I don't

25:43

even know. We We need We really do need

25:45

guardrails in place for this stuff cuz

25:47

things are going to get crazy.

25:49

Open AAI seeks to maint well wellman

25:51

said he hoped to help broker a

25:52

resolution between two sides. Open AAI

25:54

seeks to maintain these guardrails

25:55

through technical rather than

25:56

contractual means such as exploring a

25:58

contract that would only allow its

26:00

technology uh to be used from the cloud

26:03

not in edge cases. This would prohibit

26:05

its use in autonomous weapons without

26:07

humans in the loop. Man wrote that

26:09

OpenAI would also build technical

26:11

safeguards and deploy personnel to

26:13

partner with the government to ensure

26:14

proper operation. The company would

26:16

offer similar services to other allied

26:18

nations. If successful, this approach

26:20

could provide a path that works for

26:22

other AI labs. Earlier Thursday,

26:24

Anthropic CEO Dario Emodi announced that

26:27

the company had rejected the Department

26:28

of Wars demands and that made its

26:30

technology available for all lawful

26:32

uses. Anthropic insisting on being able

26:34

to bar it use for mass domestic

26:35

surveillance and autonomous weapons. And

26:38

uh I've just read this. So, like I said,

26:40

we all get caught out by this article

26:42

was generated with the support of uh AI

26:44

and reviewed by an editor. So, yeah, we

26:46

all get caught out by AI. I was saying

26:48

this in another video. I literally

26:49

looked at this article and thought, "Oh,

26:50

yeah, this is this is supporting. I'll

26:52

use it." Should have just went to the

26:53

Wall Street Journal, but then again,

26:55

these things happen and we're just going

26:56

to roll with it. So, AI, we need to

26:59

talk, I think, about the implications

27:01

this is going to have to us. And I think

27:04

as well, this is, you know, we talk

27:07

about this, you know, we talk about

27:08

nuclear weapons, right? I think in a lot

27:10

of ways AI is it is the new the next

27:12

generation nuclear weapon. What it's

27:15

going to enable is, you know, you've got

27:17

those sci-fi visions of thousands and

27:19

thousands of drones, drone swarm

27:21

technology, hundreds of thousands of

27:23

drones flying over to attack, I don't

27:25

know, a lot of the things, you know,

27:27

China against the West or China against

27:28

the US, some absolutely massive like

27:31

automated AI war. Whoever's got the best

27:33

AI model is going to win. can ever make

27:35

the most of the actual, you know, the

27:38

the drones is going to win that kind of

27:39

war. And I think if one side is playing

27:44

by rules and another side isn't, it

27:46

forces the other side not to play by

27:48

rules. And this is a path we've gone

27:49

down before with nuclear weapons where

27:51

everyone starts building up to a point

27:52

that is absolutely ludicrous. And then

27:55

what happened? We had nuclear

27:56

non-prololiferation proliferation I

27:58

should say comes in and then we get a

28:00

reduction of nuclear weapons and we're

28:02

at a level where there's still enough

28:03

nuclear weapons to end humanity more

28:06

than enough times over but it is didn't

28:09

get totally out of control and it made

28:10

it a little bit safer. AI this is

28:13

happening so fast with AI. I don't know

28:15

where this is going to go. Like AI is

28:18

deployed in Ukraine. We know in the

28:19

Ukrainian war AI is being used all over

28:22

the place. There isn't fully autonomous

28:24

systems. I don't think that being used,

28:26

but there are systems that use AI for

28:28

target identification, for intelligence,

28:30

for stuff like that, but there isn't

28:31

much of a jump when you start seeing

28:33

full-blown autonomous systems. And then

28:35

where do we go from that? And this is

28:36

one of those things where I say this a

28:38

lot when I'm talking about AI, but it is

28:40

like it is an existential crisis because

28:42

where where are we where does this end?

28:45

You know what I mean? We we're going

28:46

from a stupid world of chat bots and

28:48

slot generated AI to just machines of

28:52

killing and

28:54

mass surveillance and ah AI. It's crazy.

28:58

It is crazy. All right guys, let me know

29:00

what you think about this in the

29:00

comments below. I think this it's been

29:02

bit of a a pretty heavy video I think

29:04

this has. But we'll uh I'll look forward

29:06

to reading the comments and yeah. All

29:08

right, guys. I'm in Styosi. You can

29:09

follow me everything which styos and

29:10

I'll catch you lovely lot on the next

29:12

one. See you soon.

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