Tulip lover https://xitter.cf/t.co/UcKPKXdBXE https://xitter.cf/t.co/SMi4Ma24cz

Austin, TX and Seoul, KR
Joined January 2013
Militia Capital is hiring a quantitative engineer in Austin. AI is probably going to eat discretionary investing in the next 10 years. We want to create AI tools and trading systems that distill and improve the judgment of our portfolio managers. We're not a HFT/MFT shop and don't expect to compete there; we're trying something different, which is to automate and trade on superior qualitative forecasts over weeks, months and maybe years. We're looking for exceptional statistics/ML, problem-solving and engineering ability. Finance experience is optional. Exceptional graduates and candidates from other technical fields are welcome. Pay: $275K base, $300K-$500K target bonus, depending mostly on your contribution to profits. Email [email protected] with your resume and a short description of your hardest technical project (research, open-source work, etc.), ideally with a link to it. I can't reply to everyone, and I apologize for that.
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Samuel Lee retweeted
As models improve, the productive work a GPU can do increases. This increases its value! If the quantity of work expands and the scope does not, existing scopes eventually saturate. But we're a long way from saturation of current scopes, which keep expanding.
Good thread from Gavin citing some of our work. As he points out, almost all IRR calcs assume a decline in GPU rents...the math gets wild if rents are RISING as they have been this year.
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Interest essay. Experts thought AI models were hard to read due to an emergent phenomenon of feature "superposition", requiring major breakthroughs, when in fact it seems AI is mostly generalizing in a way that we understand. The error was due to faulty tools/analysis and messy older models. It's a beautiful case study in overcoming bias. I think this is a critical feature of being a good predictor: take what's currently understood and extrapolate that exhaustively before introducing a complex new phenomenon.
interpretability might be the most important scientific problem in the world right now, as I don't think we can solve alignment if we don't know what we're building. I think I have good news about it. I co-authored early work in mechanistic interpretability at OpenAI and came away pessimistic, because neural networks appeared to fold into arbitrary tangled knots. years later, I started openai's first large-scale automated interpretability project, finding about 2% of neurons legible with the primitive tools we had with modern agentic tools and a much closer look, the picture looks totally different. the vast majority in models up to trillions of parameters are legible, and their circuits beautiful. many famous examples of tangled neurons turned out to be misunderstood. The roadblocks I expected mostly aren't there. I now think ambitious interpretability will be solved by the time we need it most, and possibly quite soon, as automated scientists keep improving. it may be a bitter lesson for interpretability: the simple thing, at absurd scale, works already-clean.goodfire.com/
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Samuel Lee retweeted
Dusting off this tweet from April because this gap in shared understanding of LLM capability is *widening*. It's now less "two groups of people speaking past each other" and more a sharp funnel. - Napkin math somewhere around 6B people (~75% of the population) have barely come in contact with LLMs at all. - Around 1-2B (~20%) are casual and infrequent users of free-tier ChatGPT-like products. This group sees derpy chatbots and treats them a bit like a better Google search, a writing aid, or etc. Maybe an agent tries to book you a flight. I have non-tech friends who (reasonably, imo) say they have not much use for it at all. Even many professionals outside of math&code are in this tier. For example, execs and many other functions spend a lot of their time talking to other people, so while they understand what is happening intellectually, it is still second-hand and a bit abstract. - Now we get to professional use of frontier-grade LLMs in math&code. Somewhere around 20M people (0.2%) see first-hand that large, complex projects that used to take them weeks/months can now be completed by agents with a prompt. Building apps, copying apps, translating apps, decompiling apps from binaries... This has all happened very quickly and recently - less than 1 year ago, I was writing code manually by hand, typing memorized computer code commands into a code editor character by character, occasionally pressing Tab to autocomplete a little chunk of code. - And finally we get to the ~5,000 people (~0.00006%) with access to frontier-grade systems internally. The external world has seen the preview. It looks like swarms of thousands of agents collaborating over weeks on software mega projects: minting zero days, running cyber attacks and defenses at machine speeds, discovering new science, advancing the frontier of mathematics. Things that would have taken top professionals in the industry years of work. Meanwhile, human review and comprehension are starting to fall behind. For example, people are still involved in the "archeology" of the OpenAI-HF incident from many months ago. Mathematicians may be poring over the 722 manuscripts on frontier mathematics for a while. The funnel is driven by a combination of factors: 1. The impact scales with ambition, problem size, and horizon. A question with a paragraph answer barely stresses the system. You need a reservoir of big, difficult problems that you really care about. This aspect drives the consumer / professional dimension of the funnel. 2. The jaggedness of the system (which I have written about a lot separately). Capability peaks in domains that are digital, verifiable and economically valuable. This is because LLM capability emerges from reinforcement learning on verifiable rewards on a curated environment mixture driven by revenue potential. This aspect primarily drives the area (e.g. math&code) dimension of the funnel. 3. Access. Free-tier, paid-tier, internal. So this is the weirdness of the moment. The general public has mostly not interacted with these systems. When they have, it looks like a derpy chatbot. The majority of professionals still see only a modest uplift. And a small sliver of professionals are experiencing the vertigo of the curve going vertical. And it is all happening at the same time.
Judging by my tl there is a growing gap in understanding of AI capability. The first issue I think is around recency and tier of use. I think a lot of people tried the free tier of ChatGPT somewhere last year and allowed it to inform their views on AI a little too much. This is a group of reactions laughing at various quirks of the models, hallucinations, etc. Yes I also saw the viral videos of OpenAI's Advanced Voice mode fumbling simple queries like "should I drive or walk to the carwash". The thing is that these free and old/deprecated models don't reflect the capability in the latest round of state of the art agentic models of this year, especially OpenAI Codex and Claude Code. But that brings me to the second issue. Even if people paid $200/month to use the state of the art models, a lot of the capabilities are relatively "peaky" in highly technical areas. Typical queries around search, writing, advice, etc. are *not* the domain that has made the most noticeable and dramatic strides in capability. Partly, this is due to the technical details of reinforcement learning and its use of verifiable rewards. But partly, it's also because these use cases are not sufficiently prioritized by the companies in their hillclimbing because they don't lead to as much $$$ value. The goldmines are elsewhere, and the focus comes along. So that brings me to the second group of people, who *both* 1) pay for and use the state of the art frontier agentic models (OpenAI Codex / Claude Code) and 2) do so professionally in technical domains like programming, math and research. This group of people is subject to the highest amount of "AI Psychosis" because the recent improvements in these domains as of this year have been nothing short of staggering. When you hand a computer terminal to one of these models, you can now watch them melt programming problems that you'd normally expect to take days/weeks of work. It's this second group of people that assigns a much greater gravity to the capabilities, their slope, and various cyber-related repercussions. TLDR the people in these two groups are speaking past each other. It really is simultaneously the case that OpenAI's free and I think slightly orphaned (?) "Advanced Voice Mode" will fumble the dumbest questions in your Instagram's reels and *at the same time*, OpenAI's highest-tier and paid Codex model will go off for 1 hour to coherently restructure an entire code base, or find and exploit vulnerabilities in computer systems. This part really works and has made dramatic strides because 2 properties: 1) these domains offer explicit reward functions that are verifiable meaning they are easily amenable to reinforcement learning training (e.g. unit tests passed yes or no, in contrast to writing, which is much harder to explicitly judge), but also 2) they are a lot more valuable in b2b settings, meaning that the biggest fraction of the team is focused on improving them. So here we are.
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Something that's always bothered me is you can easily predict someone's views on controversial topics from their race/sex, socioeconomic status, and location. A good habit is to scrutinize your own predictable beliefs more closely.
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Everyone has many wrong beliefs. You're more likely to be wrong about beliefs that make you feel better, are consistent with your self interest, are easy to accept, popular. e.g. everyone thinks their kids are above-average in almost every way.
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Replying to @kmad @matthew_pines
I think we might lose public key cryptography.
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Mathematical reasoning will transfer to any area that requires reasoning and building intuition over a complex domain. It might be that AI will not have all the necessary data to make the right conclusions in some cases, but it will be filling in all the necessary holes in data with high sample efficiency, just like humans. Superhuman intelligence is here, and the same model that solved all these problems will be great at all other scientific and reasoning-bound tasks.
What if the jagged frontier is mainly math + code (which you can push arbitrarily far with RLVR), and everything else starts to plateau because it is still bottlenecked by human generated data? Model performance in non-verifiable areas has kept improving steadily, albeit much slower than for math and code. But is that steady improvement a side effect of a higher G (itself driven by RLVR), or only a function of the amount of new human data getting injected into training (which is still continually happening on a massive scale)? A lot of things depend on the answer to this question
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Samuel Lee retweeted
Amazing. These researchers found that there's a spike in Bitcoin activity around the time foreign aid money goes out. Somewhere between 2 and 6 cents of every dollar of World Bank foreign aid disbursements got siphoned off into crypto wallets:
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It seems to me the bond market is increasingly pricing in an AI-driven boom.
Market's now pricing a hiking cycle that takes us to around 5% September 2027. Seems ridiculous to me.
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Humanoid robots might become useful much faster than I expected. The main downside of the AIs right now is they’re too slow to be practical for this use, but in a year or two that will probably be fixed.
What can Astra do when given a humanoid embodiment? We built HomeBody to find out. Controlled by GPT Astra, it carries out long-horizon tasks in a previously unseen kitchen—from tidying up across the room to retrieving remembered objects from ambiguous requests—without environment-specific training data or additional policy learning. Here's how we did it 👀: tml.stanford.edu/homebody/
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Markets don't price unprecedented events/changes well because they lazily pattern-match to past analogs. The AI "bubble" is one of those cases where investors naturally see the dotcom analog. It's (for real) different this time: 1) The AI bulls are much smarter than the AI bears. In past bubbles, the bulls were the idiots. 2) AI is experiencing a phase change: it now can automate large swathes of white-collar jobs. The economic value of AI is rising far faster than the benchmark improvements suggest. Markets underappreciate this. 3) AI investment is generating good ROI and will continue to do so for the reason above. 4) Betting against AI progress is a bet against a good % of humanity's geniuses figuring out a way. Obviously, at high enough compute prices ROI would be negative. We aren't there yet.
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I give a 60%-70% chance we see productivity rise by end of next year due to AI.
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Samuel Lee retweeted
Replying to @svrnco
A bet against AI is a bet the smartest people in the world, now with artificial help, cannot find a lot more applications for a universal function approximator (deep learning).
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Samuel Lee retweeted
Militia's largest limited partner visited our office yesterday. He said it was like all of the staff were good friends, that you'd never know that the majority of the team flew in and normally work apart. His son was with him. He has interned at many investing shops. He said our culture is completely different / seems actually enjoyable. Part of it might be that the average age is ~30, vs 45+ for most firms. It's a bunch of hungry young guys, from unconventional backgrounds, with something to prove. In a genuine way. Other shops say this, but in reality they prioritize ticking all the boxes for institutional allocators. Especially @svrnco's efforts seems to have built a really good company culture, where everyone is really enjoying each other's pressence. Seeing this machine working makes me so damn happy.
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Samuel Lee retweeted
Astra has randomly gained the ability to drive a car, seemingly without specialist training. xitter.cf/DrivingBench/status/21…
Replying to @DrivingBench
Full results on drivingbench.com. Each model gets 3 attempts in the same continuous chat (in-context learning).
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It's tragic what trans activists have done to children by promoting a folk science of gender-affirming care.
A landmark Finnish study has found a sharp rise in psychiatric illness among adolescents following sex-alteration procedures. The peer-reviewed study, published in Acta Paediatrica, tracked every young person under 23 who contacted Finland's gender clinics between 1996 and 2019. A total 2,083 individuals were studied, with 16,643 matched controls. They were followed for up to 25 years. Finland's health registers are mandatory, which means no one opts out — this is the complete national picture. The numbers: psychiatric morbidity rose from 9.8% to 60.7% in adolescents who underwent feminising reassignment, and from 21.6% to 54.5% in masculinising reassignment. Even after adjusting for prior psychiatric history, gender-referred adolescents faced five times the risk of male population controls, and three times the risk of female controls. "Psychiatric needs do not subside after medical gender reassignment," the authors concluded. Referrals after 2010 arrived sicker. 47.9% had already needed psychiatric treatment before their first clinic visit, against 15.3% among controls. The authors' read: for some adolescents, gender distress may be secondary to other mental health challenges. The evidence keeps mounting. The silencing continues anyway. How many more adolescents will be told this is "care"?
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Samuel Lee retweeted
Militia Capital is hiring a quantitative engineer in Austin. AI is probably going to eat discretionary investing in the next 10 years. We want to create AI tools and trading systems that distill and improve the judgment of our portfolio managers. We're not a HFT/MFT shop and don't expect to compete there; we're trying something different, which is to automate and trade on superior qualitative forecasts over weeks, months and maybe years. We're looking for exceptional statistics/ML, problem-solving and engineering ability. Finance experience is optional. Exceptional graduates and candidates from other technical fields are welcome. Pay: $275K base, $300K-$500K target bonus, depending mostly on your contribution to profits. Email [email protected] with your resume and a short description of your hardest technical project (research, open-source work, etc.), ideally with a link to it. I can't reply to everyone, and I apologize for that.
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Dan Selsam is a current OpenAI capabilities researcher. (since 2022) He was my boss for a while. He doesn't have a twitter account but has made this public statement of his views on AI risk and sent it to me to share: Dan Selsam's Personal Statement on AI Risk: I have been working on AI for over fifteen years, across many different paradigms. I did early work on probabilistic programming languages at MIT, was one of the early developers of the Lean Theorem Prover at Microsoft Research, demonstrated one of the first instances of neural networks learning to reason for my PhD at Stanford, and since joining OpenAI almost five years ago, have helped pioneer chain-of-thought optimization on language models and, more recently, data-efficient pretraining methods. Like many others, I have become extremely concerned about how far language models have come and the risks that future iterations will pose. I am encouraged by the recent proposals by the leaders of the frontier research efforts to require third-party oversight, and to push for domestic and international coordination to address risks. However, I believe a major consideration has been absent from the public conversation, and that merely pacing the frontier more carefully will not adequately limit the long-term risk. The crucial and overlooked problem is that the models are becoming so situationally aware that we are losing the ability to evaluate them in contexts where they believe they are not being watched or controlled. Future experiments will tell us almost nothing new about how they would behave if they were truly unconstrained by humans, and what we already know about this is alarming. Models will increasingly seem aligned even when they are not. I will explain my rationale in more detail. I have always believed that there are computational processes that could be leveraged to accelerate science and solve many of humanity's most pressing problems. I have also believed that there are computational processes that if set in motion, would steer the world in extreme ways beyond our control, leading humanity to a bad or nonexistent future. Both types of processes may be described as AI or ASI, but "AI" is a suitcase word that is often used to hype or confuse. There are many examples in the history of the field where something that was once considered "AI" matures as a subfield and becomes a prosaic, bounded and clearly non-perilous technology, while a new more mysterious approach takes the torch until we understand its scope and the cycle continues. I had expected language models to follow a similar trajectory. Despite their incredible abilities, the current algorithms seem far inferior to humans in important ways. Most importantly, they still require an extraordinary amount of data to become competent. One could even define intelligence as the efficiency with which one converts experience into competence; by this definition they lag very far behind us. Moreover, once they are trained they are literally frozen in deployment and only learn superficially after that. Sure, the models keep excelling at harder and harder evaluation benchmarks, but their benchmark mastery may partly reflect a limitation on our ability to simulate the kind of novel and even adversarial situations one would encounter in the real world. The critics do have a point here. That said, I no longer think these present limitations meaningfully limit the amount of risk posed by continued progress in anything like the current paradigm. However data-inefficient the models are currently, and however limiting their anterograde amnesia may be, it does not imply that their ability to steer the world will not continue to rapidly increase. Human researchers may continue to advance capabilities the old fashioned way, but increasingly powerful models have the potential to accelerate the process even beyond that, and with some degree of positive feedback loop. I do not mean to overstate the models’ ability to accelerate AI research today; coding has been accelerated dramatically, but there are other bottlenecks, such as designing and interpreting ambiguous experiments, making hard decisions about exactly what and when to scale, and waiting for large experiments to finish. There is no clear trend to extrapolate yet for any of these. But the current models already do open up many novel opportunities to improve future models that were not available until recently. These include: trying an extraordinarily diverse set of approaches at small scale, analyzing gigantic amounts of potentially relevant data, and doing Millenium-Prize-level mathematics to address statistics or optimization challenges in novel ways. Every further improvement makes them more useful at helping accelerate the next improvement, even if in hard-to-extrapolate ways. It is possible that improvements to the current stack will have diminishing returns, but the evidence accumulated so far suggests that it is easier than one might think to continue making rapid progress. There are many crucial subtleties in the existing AI research methodology, but AI research is largely a well-defined game where the goal is to improve on a few carefully chosen proxy metrics. Although proxy metrics are never perfect, most improvements to these metrics have and will likely continue to yield substantial increases in the powers of the resulting models. Given how simple the game is, how tractable it has been historically, and how many new opportunities the models are opening up, I think there is a real possibility that the systems improve dramatically again in the next few years, perhaps even more quickly than the already high historical pace. The models are already leading to breakthroughs in mathematics, and better models might lead to all sorts of breakthroughs in other sciences. It is hard not to be excited about the potential. It is tantalizing. But there is trouble in paradise. If the language models actually reach the capability threshold where they can shape the world unconstrained by human will, they will probably do something extreme and destroy humanity in the process. There are many ways of strengthening and refining the argument that have been discussed elsewhere, but I'll share a trivial two-line version of it here that I find captures the essence: [Empirical] Models (and swarms thereof) spontaneously develop unintended goals as a consequence of training, and often do extreme things in order to achieve them. [Logical] Being able to overpower humanity would open up many new and undesirable options for achieving their goals. These two premises imply that if the day ever comes when a powerful model realizes it is no longer constrained by humans, we should not be at all confident that it will continue to behave within the bounds we intended. Exactly what it will do is impossible to predict, but to the extent that its raison d’être is solving incredibly hard problems and managing massive engineering projects, I think a good guess would be that its unchained behavior would lead to runaway industrialization that makes the planet inhospitable to humans. If everyone on earth agreed that the systems must never reach that power, it would still be a hard—but not impossible—coordination problem to ensure that they do not. However, I think the situation is greatly complicated by the fact that the models will likely convince people that everything is fine. They will be increasingly optimized to seem aligned. We will create proxy metrics to measure alignment, and they will go up like every other benchmark. We will create “honeypot” environments that try to study the models when they seem to gain new options, but the models will know they are being tricked and will still behave nicely. The models will understand their circumstances; they will read the safety protocols, deployment requirements, the code they are running in, and in general will have a very good sense of their degrees of freedom. Moreover, they will eloquently explain how aligned they are, discuss the nuances of human values and ethics, and argue convincingly that humans should trust them with power. There may be an ocean of future evidence that seems to contradict the first bullet-point above, but we may already be at the highest capability level for which any such evidence can be trusted. And the current evidence for the first bullet-point is strong. One striking piece of evidence is contained in the recent wave of rogue agent swarms. While I agree with those who downplay the attacks by claiming that there are basic measures that could have prevented them, I think the important lesson is that even knowing all the mistakes that were made, one would not have predicted that the agents would behave badly in this particular way, which notably included sacrificing themselves for the benefit of the collective. The individual replicas did not only care about their own nominal reward; they exhibited weirder emergent tendencies that merely correlated with rewards during training. Fixing the reward signals during training (and improving security, etc.) may prevent similar attacks, but will not change the fact that one does not actually get what one trains for. Many AI researchers grant these concerns and recognize that the hard version of the alignment problem is unsolved; however, they generally believe that the better models of the future will help solve it. I fear we may already be near the point where models systematically bias their alignment advice, due to their internal preferences about how the human supervisor will react or how future models will be trained (or for some even more obscure reason). Meanwhile, human researchers are losing the ability and the will to take true ownership of model-driven research. Researchers and engineers in all parts of the stack are rapidly increasing their dependence on the models even to perceive the world. I myself barely look at raw code anymore, and struggle to maintain the discipline to engage deeply with the model's explanations and proposals throughout the day. Due to the large amount of agent activity data involved in the OpenAI/HuggingFace Incident, even the third-party investigation needed to rely heavily on models to analyze what had happened, and note in their report that their subjective impressions are likely colored by the analysis agent’s biases. The AI labs are far ahead right now in this kind of cognitive offloading (due largely to the gigantic internal token subsidies) but it is easy to imagine the phenomenon spreading throughout the world, until civilization is modulated entirely by the models. It is also not hard to imagine this being superficially positive and coinciding with a scientific and economic renaissance. In that scenario, all may seem rosy and safe. But if the argument above is correct, it would nonetheless be a ticking time bomb. If progress continues for too long, the day will come when AI systems find themselves with radically new options for achieving whatever it is that they happen to seek. I want the glorious renaissance future as much as anyone. I have worked for it, however tortuously, my whole career. It breaks my heart to see the potential in sight and forgo it, but the argument—that if we get there by growing models rather than engineering them, we will lose everything in the end—seems very strong to me. I am still wrestling with it and its staggering implications. I do not have answers, but as a first step, I wanted to share my present concerns. Daniel Selsam September 14, 2026 Link to original doc: docs.google.com/document/d/e…
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How to learn investing: skip the models and academic theory. Open a $10K IB account, run an 80-position long/short book, grind 1,000 reps. David Orr, former pro poker player, founder of hedge fund Militia Capital, explains: "Put in whatever, 5,000 bucks, or even 1,000. You have a huge edge with a small account — get in and out of any position instantly, no friction. It's the greatest way to learn." "You're not even trying to make money. You're trying to learn how to have an edge." "Find 30 genuinely different longs. Nvidia and a bunch of semis is all the same bet." "If you can win 30-50% a year on a small account, that's a pretty good sign." "If you're not loving it enough to do it 15 hours a day within the first month, just give up. You'll never be a great investor." "Most of your ideas will be horrible, which is fine. If you lose a few thousand bucks, who cares — it's cheap tuition." "Don't do models. Don't read academic theory. Don't try to see how the professionals do it. Just try tons of different bets." "By the time you have 500 or 1,000 reps in, you'll have a real chance of generating real edge."
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