Ben retweeted
Replying to @GergelyOrosz
I challenge this a bit
(a) Codex was started as an internal tool. The goal was explicitly to build what was the highest leverage tool to accelerate infrastructure buildout.
(b) I don’t think the Meta vs non-Meta is particularly enlightening here. Most of us who came from older tech companies were surprised at how far OpenAI had taken Python scripts and had a desire to scale OpenAI further.
(c) A ton of infrastructure and internal tools were built over the last few years, it’s not the case that we were just waiting for AGI to appear.
Meritz Securities (Korean sell side): GPT-6 Astra launch and implications for the memory stock rebound
On September 3, OpenAI unveiled GPT-6 Astra. As interpretations of this model became a hot topic, semiconductor stocks rebounded on September 4 even as the broader US market fell on rising rates following a jobs surprise, with the DRAM ETF up 6.6% versus the prior day.
Astra's implication is unlikely to be simply whether AGI has been achieved. What drew the most attention was the score of 99.9% on ARC-AGI-3, a benchmark used to judge AGI, a huge improvement over the previous model (Sol at 7.8%). This benchmark is not a knowledge test; it evaluates a model's ability to learn on its own in an abstract environment it has never seen before, and this is where the improvement over the previous model was large. General intelligence, as measured by AAII or Humanity's Last Exam, did not improve much.
The differentiated strength improved in Astra is "the ability to acquire skills that humans learn in an unfamiliar environment as efficiently as a human does." Where AI until now found the answer by pressing this and that 100 times, Astra has started to behave more like a human: observing the phenomenon, inferring the rules, and executing right away.
The key point is "an expanded scope for replacing human intelligence and human work." If existing AI was an AI that told you what to do, Astra is closer to an AI that, given only a goal, uses the computer directly and produces the result all the way to the end. In other words, an easy to use OpenAI model has begun to handle on its own part of the agent orchestration layer that had been the domain of less accessible tools such as OpenClaw. For users, the barrier to entry for AI agents has been lowered, meaning more work can be handed over.
Expansion of AI workloads
Astra naturally also comes with efficiency gains that lower the token cost per task versus the previous model. This is a trend across the AI industry as a whole, and if AI workloads were fixed, demand for AI data centers would have to plunge.
The reason Jevons paradox continues to operate even after token price declines became a trend following the rise of Chinese models is that AI technological progress also expands the workload. What Astra's technological progress means is that where humans used to hand five minute, ten minute, and twenty minute tasks to AI, as AI performance improves and token prices get cheaper there is more to hand over, such as one hour and 24 hour tasks.
Just as news flow about rising GPU rental prices has spread since Astra's arrival, it must be understood that falling AI token prices do not necessarily shrink or slow the AI hardware TAM. Rather, one should recognize that the emergence of a model like Astra can create another inflection point for the AI industry and structurally grow AI demand.
Our understanding is that since early July, as the pace of GPU rental price increases slowed and token prices fell, a long IGV (software) / short SOX (semiconductors) pair trade has persisted in the US. This is because falling token prices were interpreted as positive for software, where tokens are a cost, but negative for infrastructure.
If progress in models like Astra structurally spreads AI workloads and GPU rental prices begin to respond again, the perception that falling token prices are bad news for AI infrastructure companies could weaken (on 9/4 the DRAM ETF rebounded while IGV fell).
As we have argued consistently, the issues accumulating in the AI industry since June (the proliferation of open models, this GPT-6 Astra release, and so on) are, in our interpretation, positive catalysts that generate new demand for AI infrastructure and hardware that did not exist before. We think that in a phase where rates are rising overall and liquidity is becoming scarce, these accumulated positives are not being reflected.
The stock market in September is still uncomfortable with high rates, and within the Korean market there remain hurdles to get through, including digesting a round of earnings estimate cuts driven by the sharp won appreciation before the 3Q26 preview season. There is still discomfort standing in the way of the accumulated positives being reflected in a sustained trend. Overall, we continue to view the market conservatively.
Even so, as emphasized in our September strategy, we believe one should not substantially empty out positions in core AI infrastructure stocks centered on memory. Positive catalysts not reflected in share prices are accumulating. While our baseline is conservative through mid October, one should keep the upside risk open that the trend, led by AI and semiconductor leaders, could turn at any time, even before October.
Ben retweeted
Why did Elon do a deal with Intel?
The secret is GaN. Gallium Nitride.
"GaN-based electronics are inherently more radiation-tolerant (or "radiation-hard") than traditional silicon devices, making them better suited for use in space environments where radiation exposure is high."
My dad built the chips for use in our military's satellites and he told me decades ago about Gallium Nitride, so this caught my eye.
I think most people would miss this. Thanks dad!
Intel Foundry unveils the world’s thinnest GaN chiplet (19 μm).
By integrating power and digital control on a single chiplet, it delivers higher efficiency, faster switching, and smaller designs.
Learn more: ms.spr.ly/6018Q2h90
#IntelFoundry #Semiconductors
Ben retweeted
I’m proud that so many of the world’s leading companies have joined us for Project Glasswing to confront the cyber threat posed by increasingly capable AI systems head-on.
xitter.cf/AnthropicAI/status/204…
Introducing Project Glasswing: an urgent initiative to help secure the world’s most critical software.
It’s powered by our newest frontier model, Claude Mythos Preview, which can find software vulnerabilities better than all but the most skilled humans.
anthropic.com/glasswing
Ben retweeted
‘THE LEGEND OF ZELDA’ is filming scenes for Hyrule in the same locations as ‘THE LORD OF THE RINGS’ trilogy.
(Source: cbr.com/nintendo-legend-of-z…)
Ben retweeted
McKinsey built an AI chatbot (Lilli) trained on 100 years of its work 100k documents and interviews.
70% of 45k employees use the tool, making 500k prompts a month.
A research firm hacked into it with “full read and write access to production database” including “47m chat messages about strategy, M&A, client engagement, all in plain text along with 728k containing confidential client data, 57k user accounts, and 95 system prompts controlling AI’s behaviour.”
Mcksinsey said it has patched up the vulnerability, which was made possible by “publicly exposed API documentation, including 22 endpoints that didn't require authentication…one of these wrote user search queries, and the agent found that the JSON keys (these are the field names) were concatenated into SQL and vulnerable to SQL injection.”
Ben retweeted
Source at a major cloud provider just sent me their internal headcount spreadsheet
US engineering: 47,200 in January 2025. Target for Q4 2026: 31,800
Bangalore office: 12,400 in January. Approved expansion to 38,900 by year-end
Hyderabad office going from 8,200 to 24,600
The math is brutal but simple: US senior engineer costs $280k total comp. Bangalore senior with Cursor and Claude costs $52k
One VP told the planning committee "we're not offshoring anymore, we're rightshoring intelligence"
Internal Slack shows US teams getting disbanded weekly while offshore requisitions get rubber-stamped in 48 hours
My source says they're calling it "Global AI Optimization" in the all-hands
Reality: they're replacing 1,600 US engineers per quarter with 4,800 offshore engineers who learned Copilot faster than the US teams learned to use it
The offshore teams aren't just cheaper - they're shipping features 40% faster because they never had to unlearn legacy patterns
US engineering managers now spend 60% of their time in timezone hell managing teams they've never met
But hey, the stock is up 23% since the "transformation" started
If you're still betting your mortgage on a US engineering salary, the house already burned down
Ben retweeted
Block just confirmed 4,000 layoffs but I'm hearing the real number is closer to 4,800 when you count contractors and the "voluntary separation" packages pushed through yesterday
Sources inside are saying Jack Dorsey walked into the all-hands with a 47-slide deck titled "Building Tomorrow's Block"
Slide 23 showed current org chart: 10,200 people. Slide 24 showed target org: 5,900 people by July
The brutal part: they've been screen recording every engineering session for 6 months. Called it "knowledge capture for AI training"
Senior engineers thought they were helping build internal tools. They were actually training their replacements
I'm told the offshore team in Bangalore already has access to the entire codebase documentation, decision trees, and architectural reasoning - all extracted from those recordings
One L7 architect realized yesterday that his "AI pair programming" sessions were being fed directly into training data for automated code generation
The team that built their payment processing infrastructure? All gone. Replaced by 3 contractors with Claude Sonnet and the complete prompt library of the guy they just walked out
Word is they're planning to cut another 2,000 in Q2 once the AI agents can handle customer support escalations
But sure, keep telling people that AI will "augment" their jobs instead of erasing them
The knowledge extraction is complete
Ben retweeted
Sarah Chen graduated UC Berkeley CS in December with a 3.91 GPA and $167k in federal loans
847 applications since graduation. 12 phone screens. 4 technical rounds. Zero offers.
Her last interview was brutal - startup CTO showed her their codebase live. "This used to take our 6 junior devs 3 weeks to ship. Now our one senior architect does it in 4 days with Claude Sonnet."
She asked about growth opportunities. He laughed. "Growth into what? We eliminated L1 and L2 entirely."
Her algorithms professor keeps emailing about "exciting opportunities" but the job board shows 23 new grad positions for 1,847 applicants in her area
The career fair last month had 4 companies recruiting engineers. All wanted 2+ years experience for "junior" roles paying $78k
Her parents refinanced their house for her last two years of tuition
She's living in their garage now, watching Cursor demos on YouTube and wondering if she should've majored in nursing
Yesterday she got an email from a bootcamp offering "AI-assisted development training" for $11k
The program description literally said "learn to work alongside the systems replacing traditional developers"
Her roommate who dropped out sophomore year makes $71k managing a Starbucks
Sarah's still refreshing job boards at 2am, drowning in debt for a degree that trained her for jobs that vanished while she was earning it
But sure, keep telling kids that coding is a stable career


























