I've been involved in tech since the mid-90s, have experienced the rise and burst of many 'bubbles', and have been writing about SiliCon Valley's war on the human race since 2014. But the latest battles involving crypto and AI are proving to be especially dangerous. A cult of 'techno-optimism' has arisen, with a 'manifesto' asserting the dominance of their own self-interest, backed by a well-funded 'political action committee' making targeted political donations. Laws and lawsuits are pending, but humanity has to play a lot harder on defence... To chart a safe route, we must prioritize the public interest, and align technology with widely shared human values rather than the self-interest of a few tech enthusiasts, no matter how wealthy they are.
As Michael Lewis illustrated in The New New Thing, SiliCon Valley has always had its share of people eager to get rich flogging a 'minimum viable product' that leaves awkward 'externalities' for others to deal with. Twenty five years on, we are still wrestling with disinformation and other harmful content that flows from social media platforms, for example, never mind the 'dark web'.
Regardless of the potential downsides, the 'Techno-optimist manifesto' seeks to elevate and enshrine the get-rich-quick-at-others'-expense approach in a set of beliefs or 'creed' with technology as a 'god':
"Technology is the glory of human ambition and achievement, the spearhead of progress, and the realization of our potential." a16z
The techno-optimist creed commands followers to view the world only in terms of individual self-interest, to a point verging on malignant narcissism:
"We believe markets do not require people to be perfect, or even well intentioned – which is good, because, have you met people? Adam Smith: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages.” a16z
In other words, techno-optimists aren't interested in humanity, good intentions or benevolence. They are only self-interested and believe that you and everyone else is, too. It's you against them, and them against you. In this way, the techno-optimists absolve themselves of any responsibility to care about other humans, because other humans are merely self-interested and technology is the pinnacle of everyone's self-interest.
The cult only needs to focus on building new tech.
The only remaining question relating to other humans is whether your self-interest is aligned with the techno-optimist's chosen technology. If not, you lose - as we'll see when it comes to their use of your cryptoassets or your copyright work or personal data where it is gathered among the training data they need to develop AI systems...
You might well ask if there are any constraints at all on the techno-optimists' ambition, and I would suggest only money, tech resources and the competing demands of other techno-optimists.
They claim not to be against regulation, so long as it doesn't throttle their unrestrained ambition or 'kill' their pet technology. To safeguard their self-interest, the techno-optimists are actively funding politicians who are aligned with their self-interest and support their technology, and attacking those who are not... with a dose of nationalism for good measure:
“If a candidate supports an optimistic technology-enabled future, we are for them. If they want to choke off important technologies, we are against them,” wrote Ben Horowitz, one of [a16z's] founders, in a Dec. 14 post, adding: “Every penny we donate will go to support like-minded candidates and oppose candidates who aim to kill America’s advanced technological future.” Cointelegraph
"Fairshake, a political action committee [PAC] supported by Coinbase and a16z, has a $73 million war chest to oppose anti-crypto candidates and support those in favor of digital assets... Fairshake describes itself as supporting candidates “committed to securing the United States as the home to innovators building the next generation of the internet.” Cointelegraph
Nationalistic claims are typical of such libertarian causes (Trump's "Make America Great Again") and invite unfortunate comparisons with European politics of the 1930s, as George Orwell pointed out in his Notes on Nationalism in 1945:
Nationalism is not to be confused with patriotism... two different and even opposing ideas are involved. By ‘patriotism’ I mean devotion to a particular place and a particular way of life, which one believes to be the best in the world but has no wish to force on other people. Patriotism is of its nature defensive, both militarily and culturally. Nationalism, on the other hand, is inseparable from the desire for power...
A nationalist is one who thinks solely, or mainly, in terms of competitive prestige. He may be a positive or a negative nationalist — that is, he may use his mental energy either in boosting or in denigrating — but at any rate his thoughts always turn on victories, defeats, triumphs and humiliations. He sees history, especially contemporary history, as the endless rise and decline of great power units, and every event that happens seems to him a demonstration that his own side is on the upgrade and some hated rival is on the downgrade.
But finally, it is important not to confuse nationalism with mere worship of success. The nationalist does not go on the principle of simply ganging up with the strongest side. On the contrary, having picked his side, he persuades himself that it is the strongest, and is able to stick to his belief even when the facts are overwhelmingly against him. Nationalism is power-hunger tempered by self-deception. Every nationalist is capable of the most flagrant dishonesty, but he is also — since he is conscious of serving something bigger than himself — unshakeably certain of being in the right..."
Yet in 2014, Google's CEO at the time, Eric Schmidt, 'warned' us that humans can only avoid the much vaunted Singularity - where computers out-compete humans to the point of extinction - by finding things that 'only humans can do and are really good at'. Ironically, by dedicating themselves utterly to the god of technology, the techno-optimist is actually asserting the 'self-interest' of machines!
Of course, technology is not inherently good or bad. That depends on their human creators, deployers and users. There's a long list of problems in the techno-optimist manifesto which they claim technology itself has 'solved' but self-evidently has not, either because the technology was useless without human involvement or the problems persist.
And what of their latest creatures: crypto and AI?
While 'blockchain' or distributed ledger technology does have some decent use-cases, the one that gets the techno-optimists most excited is using crypto-tokens as either a crypto-currency or some other form of tradeable crypto-asset. They insist that the technology is so distinct that it must not be subject to existing securities laws. Yet they use the terminology of existing regulated markets to describe roles in the crypto markets that are really only corruptions of their 'real world' counterparts. Markets for cryptocurrencies and cryptoassets are riddled with examples of fraud and market manipulation that were long ago prohibited in the regulated markets. A supposedly distributed means of exchange without human intervention is actually heavily facilitated by human-directed intermediaries, some of which claim to operate like their real world equivalents that safeguard their customers' funds, while actually doing the opposite. The shining example of all these problems, and the numerous conflicts with the participating techno-optimists' self-interest, is the FTX scandal. And there are many others.
As for AI, again there are decent systems and use-cases, but the development of some AI systems relies on huge sets of 'training data' that would be prohibitively expensive to come by, were they not simply 'scraped' from the internet, regardless of copyright or privacy concerns: the technological equivalent of toxic waste. The creators of several of these 'open' AI systems defend their activity on techno-optimist grounds. Midjourney founder David Holz has admitted that his company did not receive consent for the hundreds of millions of images used to train its AI image generator, outraging photographers and artists; and OpenAI blithely explained in its submission to a UK House of Lords committee:
“Because copyright today covers virtually every sort of human expression – including blogposts, photographs, forum posts, scraps of software code, and government documents – it would be impossible to train today’s leading AI models without using copyrighted materials.”
So, there we were in 2014 being warned to be creative, but it turns out that the techno-optimists believe that your self-interest and the rights that protect your work can simply be overridden by their 'divine' self-interest.
Needless to say, many humans are not taking this lying down (even if some of their governments and institutions are).
In January 2023, illustrators sued Midjourney Inc, DeviantArt Inc (DreamUp), and Stability A.I. Ltd (Stable Diffusion), claiming these text-to-image AI systems are “21st-century collage tools that violate the rights of millions of artists.” A spreadsheet submitted as evidence allegedly lists thousands of artists whose images the startup's AI picture generator "can successfully mimic or imitate."
The New York Times has sued OpenAI and Microsoft for copying and using millions of its copyright works seeking to free-ride on its investment in its journalism by using it to build 'substitutive' products without permission or payment.
Getty Images has also filed a claim that Stability AI ‘unlawfully’ scraped millions of images from its website.
Numerous other lawsuits are pending; and legislative measures have either been passed (as in the EU and China) or regulators have been taking action under existing law (as the Federal Trade Commission has been doing in the US).
Meanwhile, the right wing UK government has effectively sided with the techno-optimists by leaving it to 90 regulatory authorities to try to assess the impact of AI in their sectors, and even cancelled plans for guidance on AI copyright licensing that copyright owners had requested.
As the Finance Innovation Lab (of which I’m a Senior Fellow) has pointed out, the AI governance debate is dominated by those most likely to profit from more AI - and the voices of those who may be most negatively impacted are being ignored. Government needs to bring industry, researchers and civil society together, and find ways to include the perspectives of the wider public. To chart a safe route forward, it is essential that we prioritize the public interest, and align technology with societal values rather than the self-interest of the techno-optimists.
Commercially speaking, however, there's also the point that consumers tend to reward businesses that act as 'facilitators' (who solve our problems) rather than 'institutions' (who solve their own problems at our expense). Of course, businesses can start out in one category and end up in another... The techno-optimists' commitment to their own self-interest (if recognised by consumers) should place them immediately in the second category.
