Silicon Valley Is Obsessed With the Wrong AI

The Problem: Pursuing the Wrong AI

In the heart of the tech world, the playbook by many of the leading players in Silicon Valley has increasingly focused on one major objective: building ever-larger, ever-“smarter” general-purpose AI systems. But a growing chorus of academics, researchers and insiders argue this is the wrong target.

1. The obsession with “general intelligence”

  • Large Language Models (LLMs) and other “broad” AI systems dominate innovation pipelines. As one commentary puts it: “Many hundreds of billions of dollars are currently being pumped into building generative AI models; it’s a race to achieve human-level intelligence. But not even the developers fully understand how their models work or agree exactly what AGI means.” ft.com+2hec.edu+2
  • One eminent figure, Michael Jordan (UC–Berkeley), warned: “This race to build the biggest LLM … is not feasible and is going to ruin us.” hec.edu
  • The outcome: huge sums of money deployed, but unclear definitions, unclear pathways, and unclear value propositions for many of these efforts.

2. The neglect of tangible, high-impact problems

  • Some analysts observe that while the flashy AI models capture headlines, less glamorous—but far more urgent—needs are being sidelined. For example, tackling climate modelling, healthcare optimisation, supply-chain resilience. One article states: “So, why the disconnect? … Venture capitalists often look for ‘moonshots’ … While valuable, this can lead to overlooking less flashy but equally impactful innovations.” Medium
  • Thus: the mismatch—between what is being funded and hyped vs. what social, economic and environmental problems urgently demand.

3. The hype machine & distorted incentives

  • Tech insiders are increasingly critical of the hype. A piece stated: “In the bustling corridors of Silicon Valley … AI’s promise is being drowned out by excessive hype … many entrepreneurs and executives are voicing a more tempered reality.” WebProNews
  • The incentives for investors and founders often favour scale, big numbers, large models—not necessarily societal benefit or practical utility.
  • Also: the culture of “move fast and break things” is alive in AI development, which may amplify risks rather than mitigate them. techcrunch.com+1

Why It Matters: The Stakes Are High

A. Mis-allocation of resources

When capital, talent and infrastructure pour into grandiose, long-term visions (e.g., AGI, human-level reasoning machines) rather than solving present-day needs, the opportunity cost is large. For example: the world may not get the AI tools it needs for public health, climate resilience, infrastructure optimisation.

B. The erosion of trust and legitimacy

The competitive hype around “super-intelligent” machines raises expectations that often go unmet. When the public or regulators see a gap between promise and delivery, trust in the entire field drains. One academic work warns of “solutionism” and “scale thinking” that can undermine genuine social change. arxiv.org+1
Also: ethical frameworks are being invoked but often violated. As one author wrote:

“Silicon Valley is knowingly violating ethical AI principles. Society can’t respond if we let disagreements poison the debate.” carnegiecouncil.org

C. Real-world consequences

  • The preoccupation with futuristic AI distracts from present risk management. For instance, issues such as data privacy, bias, algorithmic transparency are urgent but get less attention than “will AI become human-level?” questions.
  • Moreover, some communities within tech—especially those tied to rationalist / effective-altruist threads—report psychological harms, ideological cult-like dynamics and personal suffering linked to over-fetishising AI risk. moneycontrol.com
  • A deeper danger: by building systems for scalability, dominance or control (rather than for distributed benefit) we risk exacerbating inequalities, concentrating power, and embedding flawed assumptions about what AI should do. One piece titled “The Future of AI: A Horizon of Inequality and Control” highlights this risk. Worth

Key Facts (Bold for emphasis)

  • Hundreds of billions of dollars are being invested into generative AI models aiming for “AGI” (artificial general intelligence) even though the definition of AGI remains vague or disputed. ft.com
  • Not even the building teams fully understand how many of the large models operate or what “intelligence” really means in their context. ft.com+1
  • According to research, efforts grounded in “scale thinking”—the assumption that bigger models + more data = qualitative leap—are unlikely to achieve deep systemic change. arxiv.org
  • The term “AI” is increasingly used to sprinkle hype in investment pitches despite founders/investors often lacking clear grasp of what’s being built. Vanity Fair
  • Ethical AI frameworks are often bypassed or undermined in practice; serious debate and alignment across tech, policy, academia is fragmented, giving vested interests opportunity to dodge accountability. carnegiecouncil.org

The Underlying Mis‐Assumptions

1. Intelligence = general reasoning

The Valley ethos tends to treat “intelligence” as a monolithic target—machines that can reason, think, learn like humans—rather than many specialised tools that solve specific tasks. But specialised tools often yield more immediate, measurable value.

2. Bigger is automatically better

The faith in ever-larger models, more compute, more data is rooted in optimism that scale will produce qualitatively new capabilities. But critics say this is flawed: some architectures hit diminishing returns, and “depth” of reasoning is still lacking. thealgorithmicbridge.com+1

3. Tech will save everything

A grand narrative exists: deploy AI, transform humanity, fix all problems. But this “solutionism” often undervalues social, economic, institutional dimensions. The tech-centric view gives insufficient weight to human, policy and systemic factors. Worth+1


What a Better Approach Might Look Like

• Reprioritise meaningful problems

Shift some of the focus and resources toward real-world, high-impact outcomes: healthcare diagnostics, climate mitigation, efficient energy grids, education access.

• Emphasise clarity and specification over hype

Rather than saying “we will build AGI”, ask “what specific outcome do we want? How will we measure success? Who benefits and how?”

• Balance scale with embedment

Recognise that not all problems need massive global models; sometimes smaller, domain-specific, context-aware systems are more effective and ethical.

• Integrate ethics, governance and societal perspectives early

Ensure that technical design includes transparency, accountability, human-in-the-loop, deliberation over what the system should (and should not) do.

• Accept limitations and focus on augmentation

Rather than aiming for replacement of human reasoning, focus on AI as amplifier of human capabilities, especially in under-served domains.


Conclusion

The current trajectory of Silicon Valley’s AI obsession—large models, general reasoning, big scale—carries significant opportunity, but also significant risk. By continuing to chase the “wrong AI,” we risk misallocating massive resources, under-serving critical societal needs, and perpetuating a tech-centric hubris. The corrective is not to reject AI, but to refocus it: towards clear problems, measurable outcomes, human-centred design, and ethical embedment.
Only then can AI become the tool we need for impact, rather than the spectacle we fear.

The Dawn of Self-Improving AI: Meta’s Secret Weapon

In the relentless race toward artificial general intelligence (AGI), tech titans have long vied for supremacy. Yet, in recent months, whispers from the corridors of Meta — formerly Facebook — suggest a revolutionary breakthrough that could redefine the landscape of AI: self-improving intelligence. This development, still shrouded in corporate secrecy, promises to fundamentally alter how machines learn, adapt, and evolve.

The Age of Autonomous Learning

Traditional AI systems, no matter how advanced, are bound by the limitations of their initial programming. Machine learning models improve through human-curated data and incremental updates, requiring engineers to intervene at nearly every stage. Meta’s rumored innovation, however, could unlock a new paradigm: machines capable of autonomously identifying inefficiencies, generating novel strategies, and iteratively improving their own architectures without human intervention.

Imagine an AI that not only solves problems but actively redesigns its own cognitive structure to perform better. This is no longer science fiction. Meta’s approach reportedly leverages recursive self-improvement, a concept long theorized in academic circles but never fully realized in a practical, scalable system.

The Mechanics Behind the Breakthrough

While Meta has remained tight-lipped, analysts speculate the core of this technology combines three critical components:

  1. Advanced Neural Architecture Search (NAS): Allowing AI to automatically discover optimal network structures for any task.
  2. Meta-Learning Algorithms: Teaching AI systems how to learn more efficiently from limited data, effectively learning how to learn.
  3. Self-Optimization Protocols: Enabling continuous performance evaluation and autonomous refinement of both model parameters and operational strategies.

Together, these elements could allow an AI to self-evolve at unprecedented speed, shrinking the gap between human-level intelligence and machine cognition.

Implications for the Future

The implications of such a system are staggering. Economically, industries from finance to pharmaceuticals could experience dramatic acceleration in innovation cycles. Imagine AI that designs drugs, develops new materials, or optimizes global supply chains faster than any human team could conceive.

Societally, however, the stakes are equally high. Self-improving AI could outpace regulatory frameworks, creating ethical and safety dilemmas that humanity is ill-prepared to manage. Ensuring that such systems remain aligned with human values will be paramount — a task as complex as the technology itself.

Meta’s Strategic Edge

Meta’s secretive culture, combined with its vast computational resources, gives it a strategic advantage. Unlike startups, which often focus on narrow applications, Meta possesses the infrastructure to scale a self-improving AI globally, integrating it across social platforms, virtual reality ecosystems, and potentially even financial services.

This capability suggests that Meta isn’t just chasing incremental improvements in AI — it is aiming to redefine intelligence itself, positioning the company at the forefront of the next technological revolution.

The Dawn of a New Era

We may be standing at the threshold of a new era, where intelligence is no longer solely human-driven but co-created with autonomous, self-improving systems. Meta’s breakthrough, if realized, will force industries, governments, and societies to rethink not just technology, but the very definition of knowledge, creativity, and agency.

The future of AI is no longer about performing tasks — it is about evolving, iterating, and surpassing the boundaries of its own design. And in that future, Meta could very well be the architect of a new epoch in intelligence.

AI’s First Extinction Event Is Nigh: Why Most AI Startups Are Doomed

For the past three years, AI has been the hottest ticket in tech. Billions in venture funding, explosive hype cycles, and a flood of new startups promising to “revolutionize” industries have created what feels like a modern-day gold rush. But behind the noise, a sobering reality is emerging: most AI startups are not built to last.

We are on the brink of AI’s first extinction event—a mass die-off of companies that raised fast, scaled hastily, and built on foundations too fragile to survive the coming storm. Here’s why.


1. The Infrastructure Problem: Building on Rented Land

Many AI startups don’t actually “own” their technology stack. Instead, they rely on third-party large language models (LLMs) and cloud infrastructure owned by giants like OpenAI, Anthropic, Google, and Amazon.

That creates two existential issues:

  • No moat: If your product is just a thin UI layer on top of GPT, you’re one API call away from being replaced by the platform itself.
  • Rising costs: Cloud compute and inference costs scale badly. For many startups, customer growth actually means losing more money.

When your landlord also happens to be your competitor, survival is not a long-term strategy.


2. The Funding Bubble: Too Much, Too Soon

VCs, eager not to miss the “next OpenAI,” have poured billions into AI companies with little more than a demo and a pitch deck.

But markets don’t reward experiments forever. As capital tightens and investors demand sustainable revenue models, startups built on hype, not fundamentals, will collapse.

History is clear: every tech wave has its Pets.com moment. AI will be no exception.


3. The Differentiation Dilemma

Right now, thousands of AI startups are building chatbots, productivity tools, and verticalized assistants. The problem? They all look and feel the same.

Without deep industry expertise, proprietary data, or defensible distribution, most of these startups are features, not companies.

The survivors will be those that carve out real moats—through unique data sets, domain knowledge, and integrations that can’t be easily copied by bigger players.


4. The Regulatory Reckoning

Governments worldwide are racing to regulate AI, from the EU’s AI Act to U.S. executive orders. While regulation is necessary, it will also raise compliance costs and add friction for smaller players.

Big Tech can afford armies of lawyers and compliance teams. Most startups cannot. This regulatory wave will disproportionately wipe out underfunded challengers.


5. The Talent Squeeze

AI talent is scarce—and expensive. The best researchers, engineers, and product leaders are being snapped up by the giants. Startups are left competing for scraps, often overpaying for teams that can’t match the depth of expertise sitting inside Meta, Google, or OpenAI.

Without elite talent, it’s nearly impossible to stay ahead in a field moving this fast.


What Comes After the Extinction

So, does this mean AI innovation is doomed? Far from it. In fact, the extinction event will be healthy.

It will clear the market of clones, hype-driven pitches, and unsustainable business models—making space for a new generation of companies that truly understand where AI creates value.

The winners will be:

  • Startups with proprietary data and domain expertise.
  • Companies that solve real, painful problems rather than chasing buzzwords.
  • Builders who treat AI not as the product, but as an enabler—integrating it seamlessly into workflows, industries, and daily life.

The Bottom Line

The AI boom has been breathtaking, but it is also unsustainable in its current form. The next 24 months will bring a brutal contraction—thousands of startups shutting their doors, investors licking their wounds, and consolidation under Big Tech.

Yet in that crucible, the strongest ideas and founders will emerge. And just like the dot-com crash gave rise to Google, Amazon, and Facebook, AI’s extinction event will pave the way for the true giants of tomorrow.

The hype cycle is ending. The real work is about to begin.

This Is What Really Smart People Predict Will Happen With AI

And the urgent advice they’re failing to tell you. (Entrepreneurs, listen up!)

AI isn’t “coming” — it’s already here. But while mainstream headlines talk about flashy chatbots or robots that can make coffee, the smartest thinkers in the field are pointing to deeper shifts that will shake industries to their core.

Artificial Intelligence is no longer a buzzword — it’s the single most transformative force of this decade. The headlines are dominated by generative models like ChatGPT and MidJourney, but what the smartest voices in tech and business are predicting goes far beyond chatbots and image generators.

They see a future where AI quietly reshapes the economy, rewrites the rules of competition, and forces entrepreneurs to rethink how they build, scale, and lead.

Here’s what they’re forecasting — and the urgent advice that could mean the difference between thriving and becoming obsolete.


1. AI Will Become the New Electricity

Just as electricity revolutionized every industry a century ago, AI is set to become an invisible utility. In five years, customers won’t be impressed that your software “uses AI” — they’ll assume it. What they’ll notice is speed, cost, and personalization.

Think of Netflix: no one talks about its AI recommendation engine, but it drives billions in engagement. The same will happen across healthcare, logistics, retail, finance, and education.

Entrepreneur takeaway: Stop trying to sell AI itself. Sell the outcomes — faster approvals, smoother onboarding, predictive service. Your competitive edge will be how seamlessly AI integrates, not how loudly you advertise it.


2. The Productivity Gap Will Become a Canyon

The people who learn to use AI will not just outperform those who don’t — they’ll outpace them exponentially. Already, lawyers are drafting contracts in minutes with AI; marketers are producing content at 10x the speed; coders are shipping products in weeks instead of months.

This “AI fluency gap” is what experts believe will create a new kind of inequality inside organizations. Two employees with the same background won’t deliver the same value if one knows how to leverage AI and the other doesn’t.

Entrepreneur takeaway: Invest in training, not just tools. Make AI literacy as fundamental as Excel or email. The most adaptable companies will sprint ahead — while laggards disappear.


3. Regulation Will Hit Hard and Fast

For now, governments are playing catch-up. But history shows what happens: they ignore disruptive tech until a scandal or crisis forces sudden, sweeping regulation. With AI, this could mean bans on high-risk applications, heavy liability rules for bias or errors, or strict controls on data usage.

When it lands, it won’t just affect “Big Tech.” Startups and small businesses will be caught off guard.

Entrepreneur takeaway: Build resilience into your processes now. Prioritize transparency, data ethics, and explainability. Don’t see compliance as a burden — see it as future-proofing. When regulation slams down, your competitors will scramble while you stay operational.


4. Jobs Won’t Disappear — Roles Will

Most experts agree: AI isn’t erasing jobs wholesale. But it is dismantling comfort zones. Routine legal research, financial analysis, medical imaging, customer support — these are being automated at scale.

The new work that emerges will require human judgment, creativity, and leadership. Think “AI supervisor” instead of “data entry clerk.” Think “strategic advisor” instead of “junior analyst.”

Entrepreneur takeaway: Reframe your hiring. Don’t just ask, Can this person do the job? Ask, Can this person do the job in partnership with AI? The future belongs to hybrid thinkers who combine domain expertise with AI leverage.


5. The Biggest Opportunities Are Hidden in Plain Sight

Everyone is chasing shiny AI products — but the true wealth will be built in unglamorous areas: document processing, supply chain optimization, regulatory compliance, workflow automation.

For example:

  • Hospitals using AI to reduce administrative delays save millions before even touching clinical AI.
  • Logistics firms applying AI to routing shave days off deliveries, saving billions globally.
  • Banks using AI to flag fraudulent transactions quietly prevent disasters that never make headlines.

Entrepreneur takeaway: Stop looking for the “sexy” idea. Instead, look where businesses are bleeding time and money. The boring problems are billion-dollar opportunities in disguise.


The Real Urgency for Entrepreneurs

The loudest voices say AI will “change everything.” The smartest voices say: it already is. The difference between those two perspectives is timing — and timing is everything in entrepreneurship.

The truth is:

  • By the time AI is “mainstream,” the real opportunities will be gone.
  • By the time regulation lands, it will be too late to redesign your processes.
  • By the time your competitors outpace you with AI, catching up will be impossible.

The urgent advice is simple: Don’t think about building an “AI startup.” Think about building a business that survives — and thrives — in a world where AI is the baseline.

The entrepreneurs who win won’t be the ones shouting “we use AI!” They’ll be the ones nobody notices — until suddenly, they’re years ahead.


Bottom line: AI won’t replace you. But the entrepreneurs who learn to embed it into every corner of their business will.