‘How To Actually Regulate AI ft. Alex Bores’ Ed Elson and @profgalloway are joined by @AlexBores to discuss AI regulation and the specific actions that are needed to reduce the potential catastrophic risks posed by AI.  Alex explores who should be held accountable, the role of third-party audits in regulating AI, and addresses the data center concerns policymakers should prioritize. Plus, which states are getting AI regulation right. 🔗's 1/2: Youtube: piped.video/@ProfGMarkets –

.@profgalloway: "Which of the concerns around data centers do you take more seriously? It feels like a bit of a populist movement that people are frustrated about income inequality and the small number of people capturing what feels like an extraordinary amount of the value. @AlexBores: "The energy consumption is real and the potential pollution is real. The Trump administration going through the fastest permitting ever of a natural gas proposal. specifically to power in XAI data center."

.@profgalloway: "If you threaten the IPO—like criminal or civil action against these individuals—they're going to figure out a way to reduce the risk here." Your thoughts?" @AlexBores: "I agree that the incentive, the liability is not there right now. You have to guide them. And the same way we do with pharma or with airplanes, or you set real federal standards and federal regulators or with banks where we have auditors sitting right next to employees."

If this is what $1T in capex gets us honestly we're here for it

You're literally living at the helm of the bobsled of a capitalist society right now living in New York: @profgalloway: "I think in 20 years, we're going to look back on Manhattan and think that was a golden age. We've had net job creation since 2020 of 1.1 million jobs. Granted, most of that has been healthcare. But it used to be 54% of the GDP of New York State. Now it's 60%. I mean, this is a golden age."

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Further fragmentation with one of the America's closest allies. What if the recent Altman/Musk/Dario collective call for AI safety/regulation isn't in fact a safety call at all? Instead frontier labs and their closed models are trying to protect valuations in the run up to their respective IPOs. Safety/regulation calls could stall open-weight models (which are making meaningful ground on private labs and would therefore eat into OAI/Anthropic valuations). Frontier labs can then protect their lead and valuations by advancing privately through the deployment of new models to a small consortium of clients (à la Project Glasswing). Mythos may have been the turning point in this new race.

There are going to be millions of people who are going to have much more expensive food or no food at all: Ed: "JP Morgan put out a research saying that they cannot predict what's going to happen here. Their job is to predict when they're throwing in the towel. We spoke with oil experts on this show who agree. There's no way to know what's going to happen here? Would you be able to make sense of what might happen? @danbbaer: "We can make some assumption that..."

Recent attempts to rein in long-dated government bond yields won't work, and the only sustainable fix is addressing the underlying factors pushing rates up 👇

Time to trade out of dollar denominated assets? @hmarksofficial: "The most likely implication of what's going on with the debt and deficit is a demand for higher interest rates. And maybe the right response for that is to reduce your holdings, not of stocks, because this isn't a stock market problem, not of investments in US companies..."

Today's interest rates are not high: @hmarksofficial: "A 5.3% or 4% 30-year bond is very low. There's no history on what it means for a power like us to run such a big deficit, but they've been running big debts in Japan without major consequences in the financial markets. I think your scenario of continuous rising rates is probably the more likely one."

"This company is BS" Ed: "An AI data center company called SB Energy was supposed to go public this month at $50 billion, but it's now delaying its IPO. Reportedly, they are waiting for a change in investor sentiment towards data centers, which is another way of saying that investors weren't buying their BS. Because let's be clear, this company is BS."

JOIN US THIS FRIDAY! LIVESTREAM: Bending Spoons Co-Founder and CEO Luca Ferrari joins Ed Elson live for the Prof G Markets Founder Series. Bending Spoons is an EU based technology conglomerate that buys and builds underperforming digital businesses. Acquisitions include: - WeTransfer - Eventbrite - Evernote - Meetup - Vimeo - AOL Reaching more than 500m monthly users; it listed on the Nasdaq on 1 July at an $18.4bn valuation. Co-founder and CEO Luca Ferrari, 41, started the company in 2013 after a failed journaling app and bought his first product, a keyboard app, for $10,000; he is now worth roughly $3bn and describes the business as the best of both worlds between Berkshire Hathaway and a technology company. Join us Friday 25 September, 11am ET. Link in bio to join.

Big episode today with @hmarksofficial and @danbbaer👇