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- The case against AI
It is impossible to build one’s own happiness on the unhappiness of others.
— Daisaku Ikeda
I’m not against AI. Far from it. It’s a brilliant toolset, especially when you’re a solo entrepreneur juggling everything like me. I rely on AI a lot, especially for writing assistance—it’s like having an extra pair of hands. So, no, I’m not being ungrateful.
But. Yes, there’s a “but.”
I’ve been reading more about AI-related issues, and they’re piling up. Even if you’re bullish on AI (and most people seem to be), it’s crucial to understand where it might fail and why we should approach it with caution. And no, I’m not talking about robots taking over the planet.
Ethics: Is AI Stealing Creators’ Work?
To train AI models, companies fed them enormous datasets scraped from all over the internet. Consent? Not asked. If you’ve ever shared a blog post, Reddit comment, or YouTube video, your work might be in there too.
Here’s the kicker: creators don’t get a cent when their content is used to train these models. Meanwhile, AI companies rake in cash by charging users for outputs.
Environment: AI’s Carbon Footprint
AI models like GPT-4 or DALL-E aren’t just code—they’re energy guzzlers. Training them takes massive computational power, often running GPUs (graphics processing units) for days or weeks. And operating these models globally adds even more energy demand, especially for real-time processing.
The environmental cost?
More GPUs mean more data centers, which need (a lot of) energy to run and cool.
GPUs rely on rare earth metals, and mining these is both resource-heavy and harmful to the environment.
So, next time you ask ChatGPT whether cat fleas jump higher than dog fleas, think about the energy powering that question.
Web Pollution: Content on Repeat
The internet is being flooded with crappy content. With AI tools making it easier than ever to create text or video, much of what we see is increasingly derivative. These creations often draw from the same training data, which then becomes the input for future iterations. This creates a feedback loop where content is endlessly recycled, becoming progressively less original, relevant, and accurate.
Instead of fostering creativity and individuality, content is now often designed to please algorithms rather than provide intrinsic value. If this trend continues, we risk losing what made the internet special: a diverse and vibrant space where millions of people shared unique, creative, and authentic ideas.
Performance: Are Models Actually Improving?
Every new AI update promises a leap forward. But is it delivering?
Recently, Bloomberg reported that OpenAI, Google, and Anthropic are struggling to build more advanced AI models. OpenAI’s “Orion” (a.k.a. GPT-5) didn’t meet expectations. Unlike the jump from GPT-3.5 to GPT-4, Orion isn’t seen as a major breakthrough. Why? Because it’s getting harder to find new, high-quality, human-made training data to push AI further.
So, are we in a little AI bubble? If so, it might burst sooner than we think.
Overvaluation: OpenAI’s Economics
Let’s talk numbers. OpenAI expects to lose $5 billion this year, with $3.7 billion in revenue. Their projected losses through 2028 hit $44 billion (excluding stock compensation). And computing costs alone? $6 billion for this year.
Despite this, OpenAI is valued at $157 billion—a hefty 13.5x forward revenue. Sure, Facebook had similar valuations at its IPO, but Facebook was cashflow positive.
If AI performance plateaus and adoption never goes mainstream (hello, crypto vibes 👋), how long can this pace continue?
Let me know if you enjoyed this deep dive, or if you prefer more personal stories.
Peace ✌️
— James
Tools & Websites
Anytype—the everything app. It’s a local-first, privacy-focused, open-source alternative to Notion. You can use it to take notes, plan your day, track habits, or collaborate with your team.
Brain.fm is a music app designed to supercharge your focus. Backed by science, it works by syncing with your brainwaves to help you concentrate and stay in the zone.
Goods.so is a curated directory of beautifully made physical products. If you’re into design-forward objects, this is your playground.
James’ Library
Article | Ed’s writing has profoundly shaped my perspective on AI’s challenges. He’s been saying for a while now that AI isn’t going anywhere and is burning through precious resources. While I believe AI has its place, it’s refreshing (and necessary) to step back and look at the bigger picture. Ed’s piece breaks it all down. Here’s a teaser: The entire tech industry has become oriented around a dead-end technology that requires burning billions of dollars to provide inessential products that cost them more money to serve than anybody would ever pay. Their big strategy was to throw even more money at the problem until one of these transformer-based models created a new, more useful product — despite the fact that every iteration of GPT and other models has been, well, iterative. There has never been any proof (other than benchmarks that are increasingly easier to game) that GPT or other models would become conscious, nor that these models would do more than they do today, or three months ago, or even a year ago. |
Article | This piece dives into the economics of OpenAI and why its sky-high valuation might not reflect reality. New technologies, no matter how revolutionary, don’t automatically translate into sustainable businesses. OpenAI’s $157B valuation suggests we might be forgetting this lesson. This isn’t to diminish what OpenAI has achieved. They’ve shown us that AI can do things many thought impossible just a few years ago. They’ve forced enterprises to rethink how they operate and changed how humans interact with computers. But starting a revolution isn’t the same as profiting from it. Today’s headline-grabbing AI companies are creating tremendous value, but that doesn’t guarantee they’ll be the ones to capture it in the long run. |
…Aesthetic Corner…
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I didn’t think I could be impressed by a stove, but here we are. The Impulse Stove is beautifully crafted with removable magnetic knobs for easy cleaning. The catch? It’s $5,999. You’re not just paying for a stove—you’re paying for a vibe.
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The Signal is my go-to pocket tool. It’s durable, well-designed, and packs 19 tools into a compact frame: pliers, knife, saw, bit driver—you name it. I’ve had mine for a year (in black and orange), and it’s come in handy more times than I can count.
Sustainable Living
Precious Plastic is a global movement tackling plastic waste head-on. They empower individuals and communities to recycle locally by sharing open-source tools, tutorials, and blueprints for DIY recycling machines.
The result? Anyone can turn plastic waste into valuable products while reducing pollution. They even have an online marketplace for selling recycled items, fostering a network of sustainability-minded creators.
But here’s the thing: Precious Plastic is struggling to stay afloat. Learn more about their challenges here.
Let’s keep good ideas alive.
Friends of James
Beehiiv — the powerhouse behind all my newsletters, helping me craft, design, grow my audience, and monetize effortlessly.
Notion — my go-to tool for the last 6+ years, where I store all my notes, manage tasks, and essentially run both my life and businesses.
Webflow — the engine behind all my websites, letting me design, build, and launch seamlessly without code.
Make — the tool that runs my business on autopilot, handling all recurring and time-consuming tasks
*these are affiliate links, which means I earn a small commission if you make a purchase through them. Your support directly helps keep this newsletter going ✌️
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