A new documentary just opened in theaters.
…In 2022, after Sam Bankman-Fried’s crypto empire was revealed to be an elaborate Ponzi scheme, the writer John Ganz argued that, in an industry built on big bets, the line between frauds and visionaries becomes difficult to suss out until everything implodes. “This is the Fyre Festival era of capitalism: outlandish promises and then a ludicrous debacle.”
Much of that rush to invest has been driven by a culture progressively gripped by the fear of missing out on the next industry-shaking payout. Untold billions were poured into crypto, then NFTs, Web3, and the ill-fated metaverse. In crypto, rug-pulling scams and Ponzi schemes abounded; its boosters said things such as “Have fun staying poor.” Today we’re living through what many suggest could be an AI bubble, and the same mentality persists. Have fun staying poor has been replaced with the idea of a “permanent underclass” of people who failed to get in early and now stand to lose their economic viability, and potentially their human agency altogether. Like Theranos, crypto, and NFTs, the AI industry is defined by claims of its inevitability and its future power (to be certain, chatbots and coding agents are real and powerful in ways the other technologies were not). In this way, AI is a faith-based technology; one’s desire to work on it, bet the success of the global economy on it, love it, or fear its End Times powers is typically predicated on what one can imagine it might become.
The past eight years have warped the tech industry to the point that it can feel untethered from the constraints of reality. You can see it in headlines everywhere if you’re looking. On Saturday, an Anthropic co-founder, Jack Clark, suggested that the U.S. GDP could jump in the next four years from about $30 trillion to $44 trillion thanks to rapid AI-driven progress in many industries. This would be one of the largest periods of growth in U.S. history, a prediction based on nothing more than the most “extreme parameter setting” of an Anthropic economic model the company released this fall. You can see it in the IPO prospectuses for a company like SpaceX, which includes in its ambitions the goal to “extend the light of consciousness to the stars” and initiatives such as asteroid mining and space tourism. And earlier this month, Musk noted that “this will sound super crazy, but I see a path to SpaceX being worth orders of magnitude more than the current Earth economy.” You could call all these claims tech optimism or, as the famed venture capitalist Marc Andreessen wrote in his 2023 manifesto, necessary for the “glory of human ambition and achievement, the spearhead of progress, and the realization of our potential.” You could also call it speculative fiction…
…None of this is to suggest that everyone in Silicon Valley is engaged in rampant, Theranos-like provable fraud. But today’s entrepreneurs are emboldened to make even more outlandish claims about the future, and it’s more difficult than ever to parse what is real, what is knowingly fake, and what is being offered in good or bad faith…
I posted extensively on her as the scandal unfolded. Sam Bankman-Fried as well. "Mistakes Were Made." Indeed.
Charlie Warzel's Atlantic article is here.
I've yet to see the Holmes documentary. I suppose I'll get around to it.
Hmmm... Silicon Valley? Stanford? How about some Theo Baker?
Stay tuned...






























