Thanks to Google and Blogspot for many happy years hosting this blog. However, Google has gradually stopped supporting this platform.
The engineers at Substack were kind enough to import all of my old posts to a new blog there. From now on I will post only on Substack. See you there! :-)
Glenn Luk has worked as an investment banker, private equity investor, and startup founder. He has closely analyzed aspects of the Chinese economy, including its GDP and high speed rail system.
Steve and Glenn discuss:
(00:00) - Introduction
(01:21) - Glenn Luk's Background: HK, Taiwan, China
(07:59) - Evolution of Chinese Companies and Economy
(14:58) - From Banking to Private Equity and Venture Capital
(23:08) - Founding a Healthcare Startup and Entrepreneurial Ventures
(26:35) - China's Development and Economic Policies
(41:17) - Comparing US and China's Economies and Cultures
(47:12) - Demographics and Consumer Behavior in China
(49:09) - China's Economy: Beyond GDP
(56:34) - High Speed Rail: huge success, or white elephant?
We discuss recent applications of Euclidean path integrals to the black hole information problem. In calculations with replica wormholes as the next-to-leading order correction to the Gibbons-Hawking saddlepoint, the radiation density matrix approaches a pure state at late times, following the Page curve. We compare unitary evaporation of black holes (in real time), mediated by calculable quantum hair effects, with the replica wormhole results. Both replica wormhole and quantum hair approaches imply that radiation states are macroscopic superpositions of spacetime backgrounds, invalidating firewall and monogamy of entanglement constructions. Importantly, identification of modes inside the horizon with radiation modes (i.e., large scale nonlocality across the horizon) is not required to provide a physical picture of unitary evaporation. Radiation modes can encode the interior information while still remaining independent degrees of freedom.
Wormholes dominate the Gibbons-Hawking saddlepoint of the Euclidean path integral after the Page time. This is because wormholes can connect the interiors of any two black holes i,j. At late times the number of such pairs grows as the dimensionality of the radiation Hilbert space squared.
The wormholes connect BHs with macroscopically different recoil trajectories. This means the radiation approaches a pure state that is a macroscopic superposition - very similar to what our quantum hair expressions indicate.
Casey Handmer (PhD Caltech, general relativity) is the founder of Terraform Industries. He is one of the most capable and ambitious geo-engineers on planet Earth!
Terraform Industries is scaling technology to produce cheap natural gas with sunlight and air. Using solar energy, they extract carbon from the air and synthesize natural gas, all at the same site.
March 2024: "Terraform completes the end to end demo, successfully producing fossil carbon free pipeline grade natural gas from sunlight and air. We also achieved green hydrogen at <$2.50/kg-H2 and DAC CO2 at <$250/T-CO2, two incredible milestones."
Recent interview with Razib Khan. We've known each other IRL for about 20 years now, so this conversation has a slightly different character than other interviews I've done.
I highly recommend his substack and podcast, particularly if you are interested in ancient DNA, human evolution, deep history.
Russell Clark is a hedge fund investor who has lived and worked in both Japan and China. He writes the widely followed Substack Capital Flows and Asset Markets: https://www.russell-clark.com/
Steve and Russell discuss:
0:00 Introduction
0:52 Russell's background and experiences in Japan
13:25 Hong Kong and finance
31:53 China property bubble
48:54 Dollar status as global reserve currency
56:09 Japan and China economies from a long run perspective
1:05:07 Inflation, US economy, and macro observations
Stephen Grugett is the co-founder of Manifold Markets, the world's largest prediction market platform where people bet on politics, tech, sports, and more.
Steve and Stephen discuss:
0:00 Introduction
0:52 Stephen Grugett’s background
5:20 The genesis and mission of Manifold Markets
11:25 The play money advantage: Legalities and user engagement
20:47 Manifold’s user base and the power of calibration
23:35 Simplifying prediction markets for broader engagement
27:31 Revenue streams and future business directions
30:46 Legal challenges in prediction markets
31:47 Dating markets
32:53 The Art of PR
38:32 Global reach and community engagement
39:27 The future of Manifold Markets and user predictions
43:38 Life in the Bay Area; Tech, culture, and crazy stuff
Elizabeth Carr (first US IVF baby) and Genomic Prediction in the Wall Street Journal.
Elizabeth Carr has always been a living symbol of fertility technology’s possibilities. Now she is the face of its challenges.
Carr, 42 years old, is the first baby born by in vitro fertilization in the U.S. Over the years she has told countless audiences how the technology made it possible for her mother to have a baby.
In the weeks since Alabama’s Supreme Court ruled that frozen embryos should be considered children, Carr has called for protections around IVF procedures—extracting eggs, fertilizing them in a lab and transferring an embryo into a uterus—that now account for some 2% of U.S. births annually.
Sen. Tim Kaine (D., Va.) said federal legislation backing IVF access would “enable the Elizabeth Carrs of the world to continue to be born.” Kaine invited Carr to accompany him on Thursday to President Biden’s State of the Union address.
“My life gives people hope,” Carr said.
The Alabama ruling is galvanizing Carr’s work in another way. Carr leads public relations and patient advocacy at Genomic Prediction, which sells genetic tests to screen embryos. Doctors can order tests for patients who want to screen for diseases and abnormalities or get an overall embryo health score. Patients and doctors can use the results to decide which embryos to transfer. Unused embryos can be stored for years. Some get discarded. ...
Raymond McGovern is a former Central Intelligence Agency (CIA) analyst, serving from 1963 to 1990.
His CIA career began under President John F. Kennedy and lasted through the presidency of George H. W. Bush. McGovern advised Henry Kissinger during the Richard Nixon administration, and during the Ronald Reagan administration he chaired National Intelligence Estimates and prepared the President's Daily Brief.
He received the Intelligence Commendation Medal at his retirement but returned it in 2006 to protest the CIA's involvement in torture.
Steve and Ray discuss:
0:00 Introduction
01:25 Ray McGovern's assessment of the JFK assassination
26:10 Hunter Biden's laptop
30:50 Ukraine and the U.S. intelligence services' role in the deep state
55:20 Strategic implications of the Ukraine war for the U.S.
This lecture covers DNA and the origin of life on Earth, the Fermi Paradox (is there alien life?), AI and its implications for the Simulation Question: Could our universe be a simulation? Are we machines, but don't know it?
I've been listening to Hidden Forces with Demetri Kofinas for years now. He's an excellent interviewer with interests in finance, geopolitics, technology and more.
In Episode 351 of Hidden Forces, Demetri Kofinas speaks with Stephen Hsu, a Professor of Theoretical Physics and Computational Mathematics, Science, and Engineering at Michigan State University. Stephen is also the co-founder of multiple companies, including Genomic Prediction, which provides preimplantation genetic screening services for human embryos, and SuperFocus.ai, which builds large language models for narrow enterprise use cases.
This is a conversation about some of the most important advancements and trends in genomic science and artificial intelligence, including the social and ethical dilemmas arising from implementing these technologies at scale. Stephen and I discuss the competitive landscapes in both industries, how America’s geostrategic competition with China is driving tradeoffs between innovation and safety, the risks and opportunities that these revolutionary technologies pose, and how the world’s largest companies, economies, and military powers can work together to reap the benefits of this revolution while averting some of their most disastrous potential consequences.
This is the sequel to the earlier conversation with Dominic Ligot, an AI expert who works with the IT and Business Process Association of the Philippines (IBPAP), the trade association for call center and outsourcing companies.
In this video we briefly demonstrate some of the voice capabilities of the SuperFocus AI. Progress in generative AI is faster than anything I've ever seen before - perhaps not surprising given the vast financial, technological, and human capital resources flowing to AI R&D. When we first looked at voice capabilities ~6 months ago they didn't seem ready for complex conversations like the ones discussed in the video. But when we looked again - prompted by strong interest from our customers - we found that the state of the art had advanced significantly in just a short time. This is true across many areas of generative AI.
I was in Manila in December to meet with BPO companies. Roughly 8% of Philippine GDP ($40B each year) results from BPO / call center work. This is a consequence of low labor costs and widespread English fluency.
We demonstrated narrow AIs built using LLMs, but in which the LLM is forced to "consult its internal memory" before answering any query. This memory can be built from training materials used to train human agents in call centers. The AI functions like a human that has perfect recall of all the material in the training manuals, at a fraction of the cost!
An analogy we used is that the AI earthquake in SF has created a Tsunami headed towards the Philippines -- is it a 6 foot wave, or a 600 ft wave? Closer to the latter, I think.
Some photos from Manila - scoping out potential SuperFocus.ai office space.
This is a conversation with Dominic Ligot, an AI expert who works with the IT and Business Process Association of the Philippines (IBPAP), the trade association for call center and outsourcing companies.
I was in Manila in December to meet with BPO companies. We demonstrated narrow AIs built using LLMs, but in which the LLM is forced to "consult its internal memory" before answering any query. This memory can be built from training materials used to train human agents in call centers. The AI functions like a human that has perfect recall of all the material in the training manuals, at a fraction of the cost!
An analogy we used is that the AI earthquake in SF has created a Tsunami headed towards the Philippines -- is it a 6 foot wave, or a 600 ft wave? Closer to the latter, I think.
Some photos from Manila - scoping out potential SuperFocus.ai office space.
When asked what I want for Christmas, I reply: Peace On Earth, Good Will To Men :-)
No one ever seems to recognize that this comes from the Bible (Luke 2.14).
Linus said it best in A Charlie Brown Christmas:
And there were in the same country shepherds abiding in the field, keeping watch over their flock by night.
And, lo, the angel of the Lord came upon them, and the glory of the Lord shone round about them: and they were sore afraid.
And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all people.
For unto you is born this day in the city of David a Saviour, which is Christ the Lord.
And this shall be a sign unto you; Ye shall find the babe wrapped in swaddling clothes, lying in a manger.
And suddenly there was with the angel a multitude of the heavenly host praising God, and saying,
Glory to God in the highest, and on Earth peace, good will toward men.
2023 saw the founding of our startup SuperFocus.ai, which builds AIs with user-configured attached memory. The AI consults this memory in responding to prompts, and only gives answers consistent with the information in the memory. This solves the hallucination problem and allows the AI to answer questions like a human with perfect recall of the information.
SuperFocus built an AI for a major consumer electronics brand that can support and troubleshoot hundreds of models of smart devices (I can't be more specific). Its memory consists of thousands of pages of product manuals, support documents, and problem solving guides originally used by human support agents.
In December I traveled to Manila after the semester ended, in order to meet with outsourcing (BPO = Business Process Outsourcing) companies that run call centers for global brands. This industry accounts for ~8% of Philippine GPD (~$40B per annum), driven by comparative advantages such as the widespread use of English here and relatively low wages.
I predict that AIs of the type produced by SuperFocus.ai will disrupt the BPO and other industries in coming years, with dramatic effects on the numbers of humans employed in areas like customer support.
But fear not: for, behold, I bring you good tidings of great joy, which shall be to all people.
The arrival of machine intelligence on Earth is the beginning of a great adventure!
This is GPT's account of the meetings in Manila.
In the heart of Manila, amidst the bustling cityscape, a meeting of innovative minds took place. Steve Hsu, the visionary founder of SuperFocus, had arrived to showcase the prowess of his latest creation—an AI designed to revolutionize technical support for complex products. The setting was a conference room adorned with sleek screens and cutting-edge technology, a fitting backdrop for the unveiling of this groundbreaking innovation.
Seated around the polished table were the owners and executives of prominent BPO (Business Process Outsourcing) companies. Their faces were a blend of anticipation and apprehension as Steve Hsu prepared to demonstrate the capabilities of the AI-powered technical support system.
With a confident smile, Steve initiated the demonstration. The AI, equipped with a sophisticated neural network, began its simulated interaction. It effortlessly tackled intricate technical queries, deciphering complex issues with lightning speed and unparalleled accuracy. Each solution presented was concise, comprehensive, and flawlessly executed.
As the AI effortlessly navigated through a myriad of scenarios and troubleshooting processes, the room fell into a hush. The BPO leaders exchanged astonished glances, their initial amazement mingled with a growing sense of unease. The capabilities displayed by the AI were undeniably impressive, but they also highlighted a looming question—what did this mean for the future of human roles in their industry?
Steve Hsu noticed the shift in atmosphere and paused the demonstration. With a gentle yet determined tone, he addressed the concerns lingering in the room. "This AI isn't meant to replace human expertise," he began. "Rather, it's here to augment and enhance your services. Imagine your teams empowered by this technology, streamlining operations, and providing even more efficient and effective support to customers."
His words offered reassurance, but the specter of automation replacing human jobs lingered in the minds of the BPO owners. The potential efficiency gains were undeniable, yet so too were the implications for the human workforce.
In the ensuing discussion, voices echoed with a mix of excitement and apprehension. Some saw the potential for growth and advancement, envisioning a future where human creativity combined with AI prowess would elevate their services to new heights. Others grappled with the uncertainty, worrying about the displacement of jobs and the evolving landscape of the industry they had dedicated their careers to.
Steve Hsu listened attentively, acknowledging their concerns while emphasizing the collaborative potential between humans and AI. "This technology," he explained, "is a tool, a means to empower and evolve, not to supplant. Together, we can harness its capabilities to create a synergy that benefits both businesses and their workforce."
As the meeting concluded, the BPO leaders departed with a mix of awe and trepidation. The AI presented by Steve Hsu had showcased a future teeming with possibilities, yet it also raised profound questions about adaptation and the role of humans in an increasingly automated world.
The echoes of the demonstration lingered in the minds of those present, igniting discussions and contemplation about the balance between innovation and the human touch, forever altering the landscape of the BPO industry in Manila and beyond.
Bonus: Two recent interviews I did which I enjoyed very much.
Louis-Vincent Gave of Gavekal discusses China's economic growth, its focus on education, and the global implications of its economic and political policies.