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China is laughing because US pensioners will have paid trillions to train all these AI models whose weights can be distilled and open sourced trivially. Giving

by favflam 2mo ago

China is laughing because US pensioners will have paid trillions to train all these AI models whose weights can be distilled and open sourced trivially. Giving Silicon Valley political power is going to cost the United States enormously, starting with the pensions who will be left holding the bag after the AI bubble bursts.

andsoitis 2mo ago
> US pensioners will have paid trillions to train all these AI models What do you mean? Can you explain the flow of money from pensioners to the AI labs?
dcrazy 2mo ago
Pensions? You’re not from the U.S., are you?
- IOT_Apprentice 2mo ago
  I am from the USA and 401k + IRAs are the terms here and yes they are going to be used. Your point?
  - dcrazy 2mo ago
    There’s a relevant structural difference between 401(k)s/IRAs and pensions. You get to choose how to invest your personal retirement accounts, while pensions are institutional investors with active managers. An individual retiree can adjust their retirement account’s risk profile over time, but a pension fund needs to be generating sufficient revenue to cover any upcoming disbursements. There are also often other constraints on the pension fund, such as being substantially invested in the sponsoring company or only investing in investment-grade securities. If a single significant investment blows up, this can threaten the solvency of the fund for all beneficiaries. There have been pension funds that have zeroed out their unvested beneficiaries due to insolvency. My point in bringing this up is that the fact that most American retirements are self-directed rather than fixed-benefit means that the catastrophic scenario implied by the OP is less likely.
- gipp 2mo ago
  https://fred.stlouisfed.org/series/BOGZ1FL594090005Q https://fred.stlouisfed.org/series/BOGZ1FL594090005Q Pension funds hold $30 trillion, my guy. Even restricting to only defined -benefit funds it's 7T.
frrgg 2mo ago
Indeed - it’ll essentially be like toilet paper when all is said and done. I know many here are really, really upset about that prospect - suck it up!!

by favflam 2mo ago

andsoitis 2mo ago

> US pensioners will have paid trillions to train all these AI models What do you mean? Can you explain the flow of money from pensioners to the AI labs?

dcrazy 2mo ago

Pensions? You’re not from the U.S., are you?

IOT_Apprentice 2mo ago
I am from the USA and 401k + IRAs are the terms here and yes they are going to be used. Your point?
- dcrazy 2mo ago
  There’s a relevant structural difference between 401(k)s/IRAs and pensions. You get to choose how to invest your personal retirement accounts, while pensions are institutional investors with active managers. An individual retiree can adjust their retirement account’s risk profile over time, but a pension fund needs to be generating sufficient revenue to cover any upcoming disbursements. There are also often other constraints on the pension fund, such as being substantially invested in the sponsoring company or only investing in investment-grade securities. If a single significant investment blows up, this can threaten the solvency of the fund for all beneficiaries. There have been pension funds that have zeroed out their unvested beneficiaries due to insolvency. My point in bringing this up is that the fact that most American retirements are self-directed rather than fixed-benefit means that the catastrophic scenario implied by the OP is less likely.
gipp 2mo ago
https://fred.stlouisfed.org/series/BOGZ1FL594090005Q https://fred.stlouisfed.org/series/BOGZ1FL594090005Q Pension funds hold $30 trillion, my guy. Even restricting to only defined -benefit funds it's 7T.

frrgg 2mo ago

Indeed - it’ll essentially be like toilet paper when all is said and done. I know many here are really, really upset about that prospect - suck it up!!