Oops… AI Chokes on a Big One…

Or make that DUAL incidents which occurred this week that exposed a ton of customer data AND part of the source code for Claude at Anthropic (this human error source code leak at Anthropic is FUBAR level stuff).

The data breach (from malicious code that was inserted into the open source LiteLLM project) exposed customer data at Mercor (which includes Meta, OpenAI and Anthropic). This is data that represents a large amount of training data (which of course is largely copyrighted material they did not get the proper permissions for) from every major lab (worth billions of dollars) that is now easily accessible to rivals in China, creating a national security problem in the process. Karma much?

The accidental source code leak at Anthropic is similarly part tragic, and part karma (because the data ingested for those LLM’s are harvested freely; some of that data is copyrighted works/other peoples intellectual property which they never gave permission to be used or weren’t provided any sort of renumeration). Which is where irony of the DMCA takedowns comes into play including the mentioned python rewrite (clean reverse engineering) that a Korean developer did.

As many of us who have been on the internet from even those days before it became commercialized when it was very limited (in my case, I had access while in college), what goes on the internet, stays on the internet once it is publicly on it. Plus there are various “safe harbor” data centers where the DMCA means nothing. Good luck trying to get this stuff off of Yandex or Baidu Wangpan (aka Baidu Netdisk). As usual, skip past the following tangent part if you don’t want to read an off topic rant…

Tangent…

The other irony is the national security of the United States; it’s being run by criminals who are the national security threat as I write this (aka, the national security threat exists on the inside with the people in charge of the key government institutions). China can just sit back and watch this regime in the U.S. do itself in. What’s going on in the middle east similarly has both the governments of Israel and the United States, acting like terrorists (that entire situation with Iran is having global economic ramifications).

Gas here is just under $5/gallon ($1.32/liter) while in parts of California (Los Angeles and San Francisco), it’s already close to/over $6/gallon ($1.60/liter). We just got notification here that electricity bills will be going up by 20-30% beginning this month. And we’re still lucky. In late February, the Philippines declared a national emergency regarding their energy crisis that is a result of the Iran war (caused again by Israel and the United States).

For those who aren’t paying attention to any of this, the domino effect is only beginning. Most have no clue what is potentially coming. The world hasn’t yet felt the effects of fertilizer scarcity (as a result of the conflict; urea and ammonia shipments from the region are being impacted by the closure of the Strait of Hormuz). Translation: this will impact farming and thus food supplies (shortages plus price increases).

Bringing this back to AI; all of those data centers require HUGE amounts of energy for the ones that aren’t being powered by renewables… guess what this Iran war is doing to energy prices globally? The compute cost for AI is only going to increase. Who is going to pay for that? A lot more consumers are going to get pinched even further. What about the AI market bubble I’ve mentioned many times before? Whenever that blows up, that represents TRILLIONS of dollars (making up peoples savings, retirement, etc). Some of us have been through this “house of cards” bullshit before.

This is a potential global disaster waiting to happen (caused by these war criminals running Israel and the United States with this war they created in the middle east). I’ll be transparent as I’ve always been. I just converted $50,000 cash into gold this past week (when the spot price took a dump off the $5k high) and will be done with another this week (I may also decide to lower my exit price on the open sell orders I have on around 15K shares of Apple in order to just hedge that cash into gold). I have no idea where inflation is headed to though

Why am I writing this as part of this AI cybersecurity incident? Because should the U.S. military put boots on the ground in Iran, expect the global economy to take a massive dump/collapse (taking that AI bubble and global equity markets down with it), expect the U.S. to be labeled as a global pariah, and expect the USD to lose its status as the global reserve currency (which the PayPal mafia of Thiel, Musk, and Sacks want in order to push crypto over another centralized fiat currency).

Countries that own massive amounts of U.S. debt (treasuries) like China and Japan; do you believe they will hang on to that? The U.S. will be up the shit creek should both countries dump those (the USD will plummet and guess what that will do to markets globally since so many things are arbitraged against the USD). Guess how much of the US population will be left in ruins when the value of the USD tanks. Businesses and Wall Street have been playing with fire by treating the POTUS/regime like it was a normal thing (making market bets like this was all a game).

His deranged speech to the nation the other evening plus his threat to NATO allies (of pulling out of that alliance) is just the tip of the global chaos these morons are potentially about to cause. And the DUI hire of a defense secretary war criminal purging more top generals (who probably advised against a ground invasion), is a potentially huge tell that these buffoons might just do it.

The rest of the world should pull up a seat to get this front row view of a global hegemony and empire potentially collapsing right in front of their eyes. This isn’t even hyperbole either because various countries are already feeling the strain from this. The U.S. Congress could put a stop to this if the Republican majority weren’t so ok with violating their oath of office and allowing their dear leader to steer the country off of a cliff. Myself, I’m partly prepared and just included my monthly vent (about this idiocracy) in this post. I’m hoping this scenario does not play out/would like to be completely wrong about this.

End tangent…

In the end, I want to see how the AI industry hypesters are going to try to will these incidents away given the massive implications this has on the cybersecurity of that entire industry. I do realize the vast majority of people out there don’t care about these kind of things (because if most gave an actual shit, they’d be leaving social media platforms in droves and would be far more careful with HOW they use tools like AI).