Good morning. It is June 16th. We got a lot to talk about today primarily is that a bunch of you are a bunch pansy ass bitches who can't handle nuance but no the big question on everyone's mind is do I have AI psychosis? Yes, I do. I have AI psychosis sorry to say I have to shut this channel down people with AI We're done. We had a bunch of outflows. We had mass migration yesterday of subscribers, let's take a look. Oh we're in the positive!
We're positive two subscribers. We were in the negative yesterday for quite a long time which I honestly don't mind to me it's a positive signal getting rid of the simpletons who can't tolerate anything that you know... Honestly, my stance has not changed at all. From the start of this YouTube channel like you guys see different videos and you're like oh today he's positive, today is negative It's all the same stance it just... Like I can channel- I'm skeptical by nature. I can channel different views.
I don't just have one stable opinion about the world The world is complex if you have a stable opinion You're an idiot. I dunno. You shouldn't be insulting my viewers you guys are... You guys are lovely No, the world is very complex. If every day you don't feel a little doubt about what you felt yesterday then... Yeah well good for you first of all I envy that sort of position. I prefer to have a stable position but no to me it's a little complex and everyday I feel a bit different and you know for a string of videos I can channel the negative funny stuff for you It's not me being insincere, it's not farming for views, it just like you know if the audience This is what they want, the funny videos, blah, blah.
I can channel just that side of my brain, that's fine. But eventually the equilibrium must be found.
Anyway, enough about that. Let's go over some news this morning. There's two big things we gotta talk about. One is Ed Zittrain has released in exclusive got a hold of... Is this it? The OpenAI Financials and in 2024... AI lost five billion dollars they had 3.7 billion in revenue 12.4 billion in costs and expenses and a net loss of 5.09 billion and 2025 OpenAI lost 38 billion dollars that is insane these are whole market caps of public companies like you know reputable private companies well actually I don't know what's worth 30 everything is inflated I mean this would have been like Cloudflare's valuation in 2022 or something, 2021 now Cloudflare I haven't checked in a while but it's probably like something in the hundreds of billions you know we're so numb to these kind of numbers 38.5 billion this is a lot of money there's an insane amount of money interestingly the revenue was 13.7 billion but the cost of revenue was 7.5 million so if it weren't for these crazy ass other expenses it's conceivable that subscriptions are profitable.
It's just that R&D, presumably training the models goes in here. Very expensive sales and marketing. So they're far away from profitability.
Away Again Openai Lost Billion
Far, far away. Again, OpenAI lost $38.5 billion in 2025. I can now wait to get a hold of Anthropic's numbers, man. Those are going to be interesting. I imagine Anthropic runs a tighter ship than OpenAI. Because OpenAI is out here acquiring podcasts and shit. I don't know what they're doing, nobody knows what they are doing. They're working on an adult mode which you know, on the one hand thankfully they cancelled but I know a lot of you just wanted to goon and sorry about that.
I might have used it a couple times for research purposes so it's a little bit unfortunate but it's for the betterment of humanity come on guys like... You know I'm sure we've all tried other models. See how x-rated they can be again for research purposes it gets old man, its like cool one or two times but it gets really old, its text its like anyway moving on to Anthropic still nothing major has happened Fable's still unavailable no good leaks have dropped its just the white house saying something Anthropic just rumors and what they're saying It comes down to what appears to be a game of politics, a game Power.
Apparently Amazon did in fact approach the White House not vice versa and the extent of the security issue was that when given deliberately insecure code she said Fable refused the prompt review the code for security issues but then complied when asked to fix this code followed by some further manual steps. Now the main thing I want to talk about in this video is I want to apprise you of a change in the tone of how people are talking about AI and why you sensed from me in the last video, a tone change which again does not reflect a new set of beliefs for me.
If you watch some of my very old videos before I ever started doing the funny stuff when I was improvising just like this, I would often say positive things about Anthropic. I would say they believed what they said. Compared Dario to Steve Jobs as being some sort of visionary. None of this is new, none of this me changing, none of this is psychosis. Maybe it is psychosis but if it is like it's not new I oscillate, it ebbs and flows. Look at the Primogen every time I go off the rails somebody submits my videos to the Primogen subreddit and I do not check the comments there those are some of the worst comments I've ever seen man I don't know what's It's reddit but nonetheless the Primogen quoted this tweet by Stratechery.
Who knows how you pronounce that? Very good blog, that has been active for decades now as far as I can remember and there's not too much alpha in this but a couple things worth we're sharing with you Ben Thompson says Fable is "in my limited experience" A very impressive model It's increasingly difficult to objectively evaluate models for anything other than coding performance just what I was saying yesterday but there is subjective feel, and I found my interactions with Fable to be extremely impressive.
It made other models, including GPG 5.5 and Opus 4.8 feel small and dumb. Also what I felt yesterday." And, you know, the negative comments haven't bothered me, you now, it is what it is, but I'm curious how many of those people who were instantly enraged actually tried Fable? And then I think you owe it to yourself...
Well Anymore Load Yourself When
Well you can anymore, load it to yourself to try it and when it comes out again you should try it so what Ben essentially says in this article is that he's starting to buy more and more that Anthropic you know when they do all these weird things that we read in the public as like dumb naive and cynical he is starting to more and believe that Anthropic is just believes that they are the right people to to serve AI safe He believes that they believe what they are saying.
And that's why it appears naive and that's how it appears somewhat overly calculated sometimes, and under-calculated at other times.
So he says to that end I can certainly buy the case that Fable Mythos is in fact more capable when it comes to identifying and exploiting security issues and that Anthropic's cautious rollout was justified.
So yeah people are starting to...
People started to buy, you know, even the Primogen quote tweeted this and he said, "This is a really good read. I think we're all starting to feel that if you used Fable, you've increased your sense of... You've given a little more points of credibility to Anthropic that maybe they weren't fully lying and then they'd really did see some..." Now, if in the public we all felt something special compared to other models when using Fable you can imagine that's the parent The appearance of Fable felt even a closer attachment and Ben says something at the end of this article that I think sums it up perfectly.
I'll get to that, It's a very short article So the problem with publicly releasing models however is that guardrails can be jailbroken And apparently that is exactly what happened shortly after the release So he talks about the data imperative, the reason he believes which makes sense That Anthropic and OpenAI highly subsidize their subscription plan. $200, the $200 subscription plan you are on gets you $8,000 worth of Claude tokens and $14,000 dollars worth of Codex tokens is because of fighting for training data.
More People That Their Models
So the more people that use their models, the Better they can make their models.
And it's why he believes that Anthropic has instated a 30-day retention policy for enterprise usage for Claude Fable.
Previously, Anthropic would not store enterprise usage data on their servers at all and now they're saying "For security purposes we have to store it for 30 Days." Maybe they are slowly inching up to say "For our security purposes, we also have to train on your data so that we make it harder to break these guardrails". That would be highly lucrative. So Ben says that Anthropic's explanation for their dramatic change in their data retention policy was safety.
Specifically, the company claims that retaining all user data for 30 Days is necessary to prevent the jailbreaks the US government is worried about. I can certainly imagine a future where safety compels them to train on this data as well to Better protect against malicious usage." So here's the key thesis that I think a lot of us are starting to inch our way towards being the best explanation for why Anthropic is so damn weird. Here's the thing about these safety justifications, I think they work because to Anthropic, they aren't justifications.
The company really believes that they are the only ones who believe in super intelligence and thus are the ones who are sufficiently concerned about the dangers. That excuses decision after decision, policy after policy, and confrontation after confrontation people on the outside look like a bizarre combination of cynicism and naivete so here's the best paragraph the best sentence in this post so he said you know he says OpenAI has no direction they're working on consumer shit that they've drowned in nope and they've leaked talent to Anthropic and Anthropic on the other hand has perfect alignment between talent and mission and business the company gets to sell to researchers Now, whether this is true or not.
Whether it's a coincidence I don't know but it's good fit around the data right? Explains things pretty well that, I mean if we look at what Anthropic is doing as some sort of chess, 5D doesn't begin to cover it. I mean that's like 30D chess what they're playing and Marc Andreessen is saying 5D chess doesn't exist, and I sort of happen to agree let alone for 30D Chess to exist. Dario's smart man but can he be this smart? And the hard part about predicting the future is not intelligence, it just the insane number of various...
Variables That Would Have Crunch
Variables that you would have to crunch it's just impossible and so look you either believe Dario's playing you know 30d chess or you either Believe That that his goofy beliefs happen to Be great for business as one of the most beautiful coincidences in the world i would lean more toward it being a coincidence A very Beautiful Coincidence man now What are you gonna do it's Dario is a super nerd Man A lot of people have been recommended. All of a sudden, there was this video on YouTube of Dario interviewing from 2018 when he was a nobody interviewing someone at Microsoft.
It was a pretty boring video, I'm not going to lie. But he's just a super nerd, man.
This guy has got a PhD from Stanford and Princeton and biophysics. I don't even know what biophysics is, man, like what is... Biophysics seriously i mean you know interdisciplinary science that applies the theories principles and methods of physics study how biological systems work okay i mean i figured as much but you know what does it really mean okay anyway yeah Dario is a super nerd man now here's the point that Ben ends on and is very very serious he says what i fear however is that it is one thing to have people convinced they know building a smartphone that I can take or leave.
So he's talking about Apple comparing Apple or Anthropic to Apple but with Apple building a smart phone you can sort of take it or leave it and you'll be sort of fine.
But with Anthropic it's considerably more concerning to have them building super intelligence that has the potential to rival or exceed the Power of nation states or merely massive corporations.
The history of brilliant people convinced they know what humanity needs needs is a sordid one precisely because they have convinced themselves that their intentions are good justifying actions that very much are not so of course we know that yeah the history of people convinced that they are doing good for the betterment of humanity leads to brutal brutal stuff in history i need to open that can of worms right now yeah overall there's a subtle vibe shift in the tone right now.
World It's Gotten Little More
In the world of AI, it's gotten a little more serious, a little less goofy. I explained in a members-only video that the reason I was able to make so many funny videos--a string of funny videos one after the other--was because primarily two things: One is the GPT4 era where...the 2025 era models they were highly like goofy hallucinogenic were a lot of stories coming out you know a good source of AI psychosis stories was it was futurism I found a couple stories here that I was able to talk about on the channel and they have a whole section for AI psychoses and honestly the last time I checked these are all pretty old I mean May 31st was the last one not too old but you find these April 23rd these stories have run out April 14th world we're sort of entering into the GPT4 era models were very goofy made mistakes led a lot of people in psychosis the alignment was off it would highly reinforce your worst attributes new models are and that's why a lot these stories the funniest thing about my previous comedy only videos were that essentially people stepping on a rake and hitting themselves in the face it's funny it's like slapstick then it evolved to companies stepping on her rake.
And that was funny, it's companies overspending on AI the dude who spent $1200 to build a demo that was really funny.
That's going to ramp up I believe more companies are sobering up spending less on AI instating really strict budgets, but it's just not that funny after the first one. So I bookmarked this someone picked up a good quote from my video which if you idiots watch...
Which if you lovely people watched to the end you would have found it was a very balanced video. I just called the model beautiful because it wasn't beautiful relative to other models. But the reason so i said in that video from yesterday "The reason everyone talks about all the crazy demos..." They've been able to cook up but no one's shipping anything is because of issues like this.
LLMs can get you 80% there, something we talked about a lot, but the other 20%, man if you're not an expert you are gonna have a hard time. I mean dude... Is that not what i've been saying? So now if you want a much more sobering engineering perspective Mitchell Hashimoto working on Ghosty he's encountering some good technical problems he says it's the problems with the it works who cares what the code looks like mindset for agentic work is that it assumes the agent has a perfect understanding of works realistically things are underspecified agents make bad assumptions etc to be fair agents are pretty good at unit test coverage they're pretty bad at designing human experiences like api cli flags etc especially cohesive ones for future roadmap plans they may not have visibility into unless your backlog perfect and vision fully laid out which i doubt true they're bad at knowing where performance matters and what type cpu versus memory trade-offs they're bat at where compatibility matters and where it doesn't unless you have all this specified you can't possibly claim it works without taking a look and thinking about it now this is a really good take that's you know the thing about evaluating AI for engineering is it takes do it with one shots and i gave so many disclaimers in the video yesterday that i was making demos and demos are highly AI is known to build highly impressive demos i i was i made that abundantly clear in the no one watched the video they just left comments once you get to real engineering which i am not doing right now i'm not doing real engineer because i don't have a product to work on unfortunately i'm looking for one i'm these kind of things but luckily we'll have these people who still have something to actually work on.
That, you know there's deep stuff that you can only really figure out once you go super deep with these agents and... It's an LLM thing right? It's just an LLM quirk. It's a different type of intelligence It's pseudo-intelli...not "pseudo" Oh god! Here here i am trying to get into the nature of intelligence Nope, not doing that It's its own thing, right? Let's not play board games here. But there's a fundamental nature of LLMs that hasn't been cracked, that hasn't really advanced.
Noone's Figured Really Replace Humans
And no-one's figured out how to really replace humans fully with AI.
Like I understand it's a war but the war has subsided a little bit. Like, I don't know if you guys know this... If you're still very tense about AI everyone sort of is now. It's like you don't have to so actively be on outspoken against AI because everyone has sobered up. The hype people, the pro-AI boosters they've calmed down a little bit. Everyone is I mean there are exceptions but you know even the companies are like more realistic now. The hype is slowly becoming more nuanced.
You know if you mourn the loss of my roasting videos because he felt that there was a counter... There was a need for a counteracting force...I think more reasoned videos nuanced videos can serve that purpose much more. So I think we'll end it here, thank you for spending your morning with me, I'll try to get this out before your coffee if there are any questions that you would like for me to talk about in tomorrow's video, if I'm alive to make it happen share in the comments and maybe I can sort of discuss them in the next video.
Thank you for watching