The Big Battle: Another WWF Show Piece for AI
August 2, 2024
This essay is the work of a dumb humanoid. No smart software required.
The Zuck believes in open source. It is like Linux. Boom. Market share. OpenAI believes in closed source (for now). Snap. You have to pay to get the good stuff. The argument about proprietary versus open source has been plodding along like Russia’s special operation for a long time. A typical response, in my opinion, is that open source is great because it allows a corporate interest to get cheap traction. Then with a surgical or not-so-surgical move, the big outfit co-opts the open source project. Boom. Semi-open source with a price tag becomes a competitive advantage. Proprietary software can be given away, licensed, or made available by subscription. Open source creates opportunities for training, special services, and feeling good about the community. But in the modern world of high-technology feeling good comes with sustainable flows of revenue and opportunities to raise prices faster than the local grocery store.
Where does open source software come from? Many students demonstrate their value by coding something useful to another. Thanks, Open AI. Good enough.
I read “Consider the Llama: Are Closed Source AI Models Doomed?” The write up is good. It contains a passage which struck me as interesting; to wit:
OpenAI, Anthropic and the like—companies that sell access to AI models. These companies inherently require their products to be much better than open source in order to up-charge. They also don’t have some other product they sell that gets improved with better AI overall.
In my opinion, in the present business climate, the hope that a high-technology product gets better is an interesting one. The idea of continual improvement, however, is not part of the business culture of high-technology companies engaged in smart software. At this time, cooking up a model which can be used to streamline or otherwise enhance an existing activity is Job One. The first outfit to generate substantial revenue from artificial intelligence will have an advantage. That doesn’t mean the outfit won’t fail, but if one considers the requirements to play with a reasonable probability of winning the AI game, smart software costs money.
In the world of online, a company or open source foundation which delivers a product or service which attracts large numbers of users has an advantage. One “play” can shift the playing field, not just win the game. What’s going on at this time, in my opinion, is that those who understand the advantage of winning in the equivalent of a WWF (World Wide Wrestling) show piece is that it allows the “winner take all” or at least the “winner takes two-thirds” of the market.
Monopolies (real or imagined) with lots of money have an advantage. Open source smart software have to have money from somewhere; otherwise, the costs of producing a winning service drop. If a large outfit with cash goes open source, that is a bold chess move which other outfits cannot afford to take. The feel good, community aspect of a smart software solution that can be used in a large number of use cases is going to fade quickly when any money on the table is taken by users who neither contribute, pay for training, or hire great open source coders as consultants. Serious players just take the software, innovate, and lock up the benefits.
“Who would do this?” some might ask.
How about China, Russia, or some nation state not too interested in the Silicon Valley way? How about an entrepreneur in Armenia or one of the Stans who wants to create a novel product or service and charge for it? Sure, US-based services may host the product or service, but the actual big bucks flow to the outfit who keeps the technology “secret”?
At this time, US companies which make high-value software available for free to anyone who can connect to the Internet and download a file are not helping American business. You may disagree. But I know that there are quite a few organizations (commercial and governmental) who think the US approach to open source software is just plain dumb.
Wrapping up an important technology with do-goodism and mostly faux hand waving about the community creates two things:
- An advantage for commercial enterprises who want to thwart American technical influence
- Free intelligence for nation-states who would like nothing more than convert the US into a client republic.
I did a job for a bunch of venture people who were into the open source religion. The reality is that at this time an alleged monopoly like Google can use its money and control of information flows to cripple other outfits trying to train their systems. On the other hand, companies who just want AI to work may become captive to an enterprise software vendor who is also an alleged monopoly. The companies funded by this firm have little chance of producing sustainable revenue. The best exits will be gift wrapping the “innovation” and selling it to another group of smart software-hungry investors.
Does the world need dozens of smart software “big dogs”? The answer is, “No.” At this time, the US is encouraging companies to make great strides in smart software. These are taking place. However, the rest of the world is learning and may have little or no desire to follow the open source path to the big WWF face off in the US.
The smart software revolution is one example of how America’s technology policy does not operate in a way that will cause our adversaries to do anything but download, enhance, build on, and lock up increasingly smarter AI systems.
From my vantage point, it is too late to undo the damage the wildness of the last few years can be remediated. The big winners in open source are not the individual products. Like the WWF shows, the winner is the promoter. Very American and decidedly different from what those in other countries might expect or want. Money, control, and power are more important than the open source movement. Proprietary may be that group’s preferred approach. Open source is software created by computer science students to prove they can produce code that does something. The “real” smart software is quite different.
Stephen E Arnold, August 2, 2024
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