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    Balaji on AI

    Press RoomBy Press RoomJune 29, 2025No Comments2 Mins Read
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    A few miscellaneous thoughts.

    (1) First, the new bottleneck on AI is prompting and verifying. Since AI does tasks middle-to-middle, not end-to-end. So business spend migrates towards the edges of prompting and verifying, even as AI speeds up the middle.

    (2) Second, AI really means amplified intelligence, not agentic intelligence. The smarter you are, the smarter the AI is. Better writers are better prompters.

    (3) Third, AI doesn’t really take your job, it allows you to do any job. Because it allows you to be a passable UX designer, a decent SFX animator, and so on. But it doesn’t necessarily mean you can do that job *well*, as a specialist is often needed for polish.

    (4) Fourth, AI doesn’t take your job, it takes the job of the previous AI. For example: Midjourney took Stable Diffusion’s job. GPT-4 took GPT-3’s job. Once you have a slot in your workflow for AI image gen, AI code gen, or the like, you just allocate that spend to the latest model.

    (5) Fifth, killer AI is already here — and it’s called drones. And every country is pursuing it. So it’s not the image generators and chatbots one needs to worry about.

    (6) Sixth, decentralized AI is already here and it’s essentially polytheistic AI (many strong models) rather than monotheistic AI (a single all-powerful model). That means balance of power between human/AI fusions rather than a single dominant AI that will turn us all into paperclips/pillars of salt.

    (7) Seventh, AI is probabilistic while crypto is deterministic. So crypto can constrain AI. For example, AI can break captchas, but it can’t fake onchain balances. And it can solve some equations, but not cryptographic equations. Thus, crypto is roughly what AI can’t do.

    (8) Eighth, I think AI on the whole right now is having a decentralizing effect, because there is so much more a small team can do with the right tooling, and because so many high quality open source models are coming.

    All this could change if self-prompting, self-verifying, and self-replicating AI in the physical world really gets going. But there are open research questions between here and there.

    Here is the link to the tweet.

    The post Balaji on AI appeared first on Marginal REVOLUTION.



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