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Back to Cliff Sosin - Owning the Complements to Intelligence, with Cliff Sosin.

Why Can't Even Superintelligent AI Predict the Future?

Cliff Sosin says even superintelligent AI cannot predict most of what people want to know, because complex systems amplify tiny errors until a forecast falls apart. Intelligence fills in a thin scattering of facts. Mathematics can reach a closed form. Weather, mixing cream into coffee, and how groups of people interact cannot. A simulation carries error in the starting conditions or in each truncated step, and that error builds.

The weather model behind chaos theory is the concrete case. A forecaster ran it, reset it, and ran it again. The second run matched at first and then diverged. A few days out, one forecast was 70 degrees and sunny and the other was 20 degrees and pouring. The only change was a technician rounding the starting pressure and temperature by one decimal. People called that the butterfly effect: a butterfly in Africa could, in principle, lead to a hurricane in North America. Short of simulating the whole universe, much of it stays unknowable.

The climb from an amoeba to a monkey, a person, Einstein, and then God misses that limit. Intelligence is more like the roundness of a ball than the height of a tree. It rises until a super-smart system is already making every prediction it can, and that set is a small slice of the interesting questions. Past that, new facts have to come from experiments, and experiments take time.

Transcript

Cliff Sosin - Owning the Complements to Intelligence ·

Invest Like the Best with Patrick O'Shaughnessy

More from this episode

  1. Who Makes Money When AI Intelligence Gets Cheap?Cliff Sosin says the businesses that benefit when intelligence gets cheap own the complements to intelligence, not the intelligence itself.
  2. When Do Price Cuts Shrink a Market?Cliff Sosin says a market shrinks once further price cuts stop creating enough demand, and a price of zero takes the market size to zero.
  3. When Does AI Reach Its Limit?Cliff Sosin says the limit arrives after the papers are finished.
  4. Why Does AI Infrastructure Get Overbuilt?Cliff Sosin says AI infrastructure gets pushed until it is overbuilt because a strong price signal is what makes a buildout of a huge technology possible at…
  5. Will AI Agents Push Customers to the Lowest-cost Provider?Cliff Sosin says that once people hand routine choices to an AI agent, the customer moves to the lowest-cost provider. He puts decisions on a spectrum.
  6. Does a Person Working With an AI Model Beat a Person or a Model Alone?Cliff Sosin says a person working with a model now beats either one alone.
  7. How Much of the Economy Moved Into AI?Cliff Sosin says American capital markets redeployed 3% of GDP into a highly speculative AI venture on the turn of a dime.
  8. How Does Cheap AI Affect Income?Cliff Sosin tells two stories about how cheap, ubiquitous intelligence affects wealth and income distribution.
  9. Why Is Cliff Sosin Comfortable With 80% of His Portfolio in Carvana?Cliff Sosin is comfortable keeping most of his portfolio in Carvana because he thinks about the stake the way an owner thinks about a company, not the way a…
  10. Why Should Kids Learn Math Without AI?Cliff Sosin argues that children should learn foundational skills apart from models so they can direct a model.

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