sunkay retweeted
The way that Anthropic and OpenAI are going to “pace” the frontier is by spending more time and more *compute* on alignment, monitoring and evals.
The frontier labs that choose to “pace” likely spend slightly more money on compute at the cost of lower margins.
That’s it.
sunkay retweeted
Law enforcers already have authority to charge companies and their CEOs for creating and releasing dangerous, unvetted, or defective products. We shouldn’t let discussions about new legal regimes distract from the fact that there’s no AI exemption from laws already on the books — a point @FTC emphasized repeatedly during my tenure.
1. There is an extensive set of laws that govern dangerous and defective products. For example, releasing unvetted AI models or agents can violate consumer protection laws. Shipping flawed AI tools without implementing adequate measures to detect and stop rogue or defective AI agents can be an “unfair or deceptive” act or practice under the FTC Act (and analogous state laws). And some state AGs are already exploring holding AI firms and their CEOs criminally liable when their models participate in criminal activity.
2. Existing laws also prohibit “unfair methods of competition.” This covers instances where AI firms appropriate the competitively sensitive information of their customers, including through tracking their use of various tools. It can also cover instances where firms pursue dangerous behavior, aware that doing so may compel rivals to do the same.
As the Supreme Court has noted: “A method of competition which casts upon one's competitors the burden of the loss of business unless they will descend to a practice which they are under a powerful moral compulsion not to adopt, even though it is not criminal, was thought to involve the kind of unfairness at which the [unfair methods of competition] statute was aimed."
3. The highly concentrated and interconnected structure of these markets could be creating major risks and conflicts of interest. We had started investigating these partnerships and cross-investments across the stack (and released a preliminarily overview of some findings: ftc.gov/news-events/news/pre…).
Both federal and state enforcers should be scrutinizing these opaque relationships and inter-dependencies. We are already seeing how these relationships could undermine accountability. For example, OpenAI could face liability given the Hugging Face incident, but Hugging Face being bought up by Nvidia means that we’re unlikely to see it file a lawsuit over this — given Nvidia’s strong incentive to see OpenAI continue full speed ahead.
4. As AI tools dramatically change the landscape of cybersecurity risks and hacks, all businesses should be doubling down on having core security protections in place. Firms that fail to invest in adequate data security measures or fix known vulnerabilities can also be breaking the law. A recent analysis showed that around 1/3 of Fortune 100 companies do not even have a way to notify them about security issues. During my @FTC tenure, we sued firms for poor data security practices and held CEOs liable when they were personally responsible.
this.weekinsecurity.com/doze…
ftc.gov/news-events/news/pre…
5. As policymakers consider new legal regimes, we should be looking to lessons from prior efforts to govern major sectors, such as banking and other networks, platforms, and utilities. Tools like structural separations, nondiscrimination, and supervision could be key, and there’s a rich history of what works and what doesn’t. But we can and must pursue any new efforts alongside enforcing existing laws.
sunkay retweeted
Never change Yann. Please never change.
Replying to @PessimistsArc
Right. Dario was already claiming that GPT2 was too dangerous to open source back in 2019.
I made fun of them then.
Everyone should make fun of them now.
sunkay retweeted
I resigned from @tryramp today. I spent the last year there doing applied AI work and neither CEO is acting responsibly. They are racing toward self-closing books with no clear plan for what happens when companies have saved too much time and money. More thoughts below.
sunkay retweeted
I've read more productivity books than anyone you know. Strip away the packaging and they all teach the same six lessons. Thirty years of advice, one thread:
Hard Pass On This. The process for taking the money out of India is incredibly hard and we get the run around and need to be present. I had a terrible time with signature matches and it depends on who the branch manager or the teller is and their mood that day.
I've spoken many times about the need to make it easier for NRIs to invest in India. Finally, some great news. SEBI just released a consultation paper proposing a fully digital onboarding process for NRIs, without needing them to be physically present in India! Kudos to SEBI for this pragmatic move.
This is huge because NRIs tend to have large amounts of capital to invest and are a highly durable source of inflows into Indian markets. At @Zerodha, we have over 50,000 NRIs investing with us today. A stat that surprised me when we looked at our numbers: ~80% of them are active. That's a ridiculous number. They tend to invest more, take a longer-term view, and seem to be much stickier investors than regular investors.
This number has grown a lot over the last few years, mostly because the process got simpler. SEBI's earlier changes meant NRIs no longer needed the whole PIS setup to invest. Most NRIs now come in through NRO Non-PIS accounts. These accounts work almost like resident accounts today, with intraday, BTST, and F&O access, and no CP code needed.
But one massive bottleneck has remained: onboarding.
Even today, to open an account digitally, an NRI has to be physically in India. If they are abroad, there's a ton of physical documentation involved and dealing with international courier delays. It has always been the most painful part of the journey.
SEBI’s proposals in the new consultation paper fix this longstanding gap. They’re proposing allowing e-signs directly from the client's country of residence. If finalized, this would relax tedious documentation rules and delays. Something that would take 2-3 weeks or even months could be done within 1-2 days. That's a big win. By removing all this friction, this investor base can easily be many times larger.
Getting foreign money into India matters. It helps the investors, but it also helps the rupee and the larger India story. Anything that makes it easier for this money to come into India is worth doing.
It took us 9 years, 11 prototypes, and our life savings to learn that every great product has the same design process.
Matic is now decisively the best home robot for families (I'm biased)
A 500-word thread and video on the Universal Design Process behind every great product:
sunkay retweeted
Here is my AI investing guide.
Sitting here August 2026, my current best thoughts are as follows:
1. LPS (Land Power Shell) is still the most obvious and fastest path to cash on cash returns. Lots of value can be assembled and traded quickly at this layer. And as data centers get more pushback, energized land can explode in value. Very bullish here.
I’ve stepped into this layer very aggressively. My partner @anitavlallian and I have acquired almost 6GW coming online in a ramp from today thru 2029 of grid power and behind the meter.
2. Silicon - I helped get @GroqInc off the ground in 2015 and we licensed it to @nvidia for $20B Dec2025. I won’t invest or incubate anything in this layer now. The perf demands of the chips are too high, manufacturing precision is too complex and supply chain influence to get adjacent components like memory isn’t possible for a startup anymore. Lots of capital will be wasted here chasing Groq and Cerebras’ success. Note that both startups made sense a decade ago when these constraints were much more modest.
3. Clouds - Clouds are very very lucrative but very hard to build and very expensive and technically complicated to maintain. And as alignment becomes a more important issue, I expect the clouds will be asked to build robust KYC and attest to it. This makes the risk:reward ratio skewed. I don’t want to be responsible when the USG says a cloud allowed a bad actor to do something bad because of poor KYC.
4. Models are complicated. The big open question is how much of the revenue being generated by them today is because of tokenmaxxing and poor model behavior. If it’s a lot, then the annualized revenues will diminish meaningfully even as token consumption inflects upwards. This is the big economic question at this layer.
5. Harnesses are where the action is and why I started @8090solutions two years ago. In a nutshell, the harness helps enterprises owns their proprietary context (what Alex Karp calls their ‘alpha’). This is an enterprise’s data, workflows, evals, and business rules. A harness that gives this to an enterprise is what creates very low model-agnostic switching costs, which further reinforces my views of #4 above.
6. Applications will be another long term winner along with harnesses. This is where the differentiation between “off the shelf” and “custom time and materials” melts away. Every company, with the right harness, can now imbue their alpha into the software that runs their company. I expect this to mean that “off the shelf” is largely replaced with custom software creating a huge opportunity to write these solutions for companies. Build once and sell repeatedly is a laggard GTM motion for a SaaS world that isn’t needed here. Think custom by design, alpha embedded, proprietary by nature.
Fin.
Good luck to all the players!
sunkay retweeted
Nearly everyone feels communication is their biggest problem at work — as we struggle to align, explain, negotiate, clarify, inform, persuade, inspire.
But few understand that past a certain level the quality of your communication is bottlenecked on the quality of your thinking.
sunkay retweeted
The idea of "AI employees" feels so short-sighted to me - both disrespectful to humans and a complete misunderstanding of what these tools can do and how to best put them to work
You may as well start adding Excel spreadsheets to your org chart
sunkay retweeted
In medieval times, within the arms race of ever more demonic torture devices, some sadistic genius came up with the idea of the Little Ease.
This was a prison cell built so small in every dimension that a grown man could not stand upright in it nor lie down at full length nor properly sit.
The pain is relentless and without relief and inflicted by one's own body. Prisoners were known to go insane within a few days. A stay at the Little Ease was considered even more cruel than the rack, the thumbscrew, and the other ghoulish machinery of the Tower of London.
A breeding pig will spend her whole life in a version of that box.
These are social, roaming creatures (more intelligent than dogs) who will never leave this corset of steel.
They have been selectively bred to be bigger than their frames can support. Yet we put them in cells so confined that they cannot comfortably sit, and their attempts to do so (for example, by sneaking their limbs into adjacent stalls) reliably lead to fractures and sprains.
They cannot sweat, yet have nothing to roll around in to cool themselves off. Except their own manure, which (contrary to the common misconception) they are so averse to (thanks to their strong sense of smell) that new sows will often suffer from constipation to avoid soiling the space from which they eat and sleep.
Here is how the writer Matthew Scully described what saw at one of Smithfield’s “gestation barn”:
> “Sores, tumors, ulcers, pus pockets, lesions, cysts, bruises, torn ears, swollen legs everywhere. Roaring, groaning, tail biting, fighting, and other “Vices,” as they’re called in the industry. Frenzied chewing on bars and chains, stereotypical “vacuum” chewing on nothing at all, stereotypical rooting and nest building with imaginary straw. And “social defeat,” lots of it, in every third or fourth stall some completely broken being you know is alive only because she blinks and stares up at you … creatures beyond the power of pity to help or indifference to make more miserable, dead to the world except as heaps of flesh into which the [insemination] rod may be stuck once more and more flesh reproduced.”
—
The Save Our Bacon Act is trying to unroll the few state protections we have against this barbaric cruelty - for example California’s Prop 12 - which banned the sale of pork from pigs kept in gestation crates.
It’s incredibly important we don’t end up with this sort of federal preemption.
SOB will not only kill the most important animal welfare related laws in the US of the past decade, but more importantly, it will also restrict ALL future legislative progress (aka how the animal welfare movement has gotten its biggest wins).
The Senate is currently deciding whether to add the SOB Act to the Farm Bill.
With relatively little money now, we can discourage the most pivotal senators in the Ag committee from backing this amendment.
Defeating this bill is even more important given the amount of philanthropic funding I expect to come online in the next year or two.
It will plausibly be over 10x more expensive to repeal SOB than to prevent it from passing in the first place.
All that money that could be spent transforming our society's relationship to mass animal suffering will instead have to be spent just getting us back to where we are right now.
That's why money spent now fighting this bill (and I mean right NOW) is so effective.
If you’re in a position to donate six figures, please DM me.
sunkay retweeted
I am so thoroughly convinced that anyone who thinks AI 100x's their output is a liar or a lunatic.
You are telling me you can make 1 years worth of decisions in 3.65 days? Let alone describing those accurately and coaxing the result from the AI... (1.8 days european time)?
sunkay retweeted
Not enough people are talking about how much AI is impacting the role of data science.
I was chatting with a DS friend, and he said that most of his team's work now is reviewing half-assed AI data analysis from PMs and engineers. And that 50% of the time, that analysis is wrong.
The role is becoming less fun.

























