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About 400 engineers of IO with connections to Apple joined Open AI in an acquisition. Apple's lawsuit against Open AI with which it had started a partnership in AI in 2024 which has soured states-

"OpenAI’s nascent hardware business now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets” 

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Satya Nadella - "we have to get society's permission" for what is done with AI. Nadella has an approach to AI to keep each company's human knowledge capital separate from AI, as its most valuable component of its operations. In the world he visualizes AI frontier models OpenAI, Gemini(Google) and Anthropic's Claude won't just keep saying they will use up all the resources they can use leaving little for education, healthcare and public services or infrastructure, and keep saying it will destroy all entry level and other white collar jobs, and the world will put up with that. His approach is to bring AI at a cost level that is much lower,including incorporating Chinese models for cost effectiveness. And at the same time making AI supplement each company's human capital working side by side so that jobs can be enhanced not destroyed willy nilly, in a careless random, disorganized way whether people like it or not because a few frontier AI models and their companies (Google, Anthropic and Open AI) have decided to do that. Nadella's thinking is worth listening to and reading about as it offers the first intelligent approach to making AI do what we want it to do for healthy societies. After all the destruction in world trade by shipping out supply chains by the US and Europe, after uncontrolled migration, after the loss of manufacturing and the good jobs that went with it, and the decision to reverse this and regain manufacturing and supply chains under both US presidents Biden and DJT, Nadella is right to conclude that society will not tolerate any more losses, and society is determined to retrieve losses from past mistakes. By preserving each company's human capital independent of AI Nadella is calling on individual leaders at all startup, midisized and large companies to have a clear idea of their precious human capital and set up AI independent of it at the company level to work alongside human capital. We at Lyrarc think this will give better results than no conscious approach that allows willy nilly the AI frontier models to shrivel the company's human capital and do what they are clearly incapable of doing in our view, which is to run companies or the principal functional areas of societies such as healthcare, transportation and public services. That even though Nadella does not say this is going to look good at first, then lead the company to catastrophic consequences of losing control of its own individual company's future and lead it to make huge mistakes that will be costly to correct and cause much damage to the Nation and its people. This is anew proposition that Nadella makes and should be grasped for a new approach, and constructive confrontations on this issue of how to incorporate AI at each company's level for hundreds of thousands of companies, alongside separate and supplementing the core strength of human capital, not displacing it to cause huge problems in future years. A company bereft of its human capital is a company bereft of what gives it life and vitality. ...

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BBC says "tech's seedy side exposed" by Musk- Altman trial 2026. Let's face it there is a seedy side, and a much less benevolent side to Tech than it likes to show. The overspending on AI is a sign of misplaced priorities when so much of US infrastructure is dilapidated, much of it from before 1945, that badly needs to be rebuilt. Much of the promise of hardware from Tech that would change education is a failure so much so that Sweden is shifting on a nationwide effort in its schools to a program - "from screens to binders" that gives children binders with notebooks to write in and books to read, removing screens altogether, and for good reasons of the educators of Sweden. Tech in its grandiose style pretends it is about the technological revolution when it is simply the companies Amazon, Google, Apple, Microsoft, Nvidia, three of which are from the last 15 years. The technological revolution and the scientific revolution date back to Copernicus and Newton and the hundreds, thousands of scientists and pioneers of the industrial revolution of the last 250 years, and the men of vision and wisdom that gave us the British and American Constitution, the principles of self-government of civilized societies. ...

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For two decades young computer specialists in their 30's have tried to say the right things to the American people to gain approval- with AI this is where it all ends. Watching Murthi and Altman on Stern's interview in WSJ one senses a lack of awareness that this is too big a technology to be handled by a few computerized work  specialists. Murthi says the right things with a faltering conviction, Altman lacks conviction, yet both cannot take on the responsibilities for AI on their shoulders. The chief technology officer of OpenAI takes over role of Interim CEO with the departure of Sam Altman. She graduated from the Thayer School of Engineering at Dartmouth. She worked at Tesla before joining OpenAI. Murthi was in charge of Operations, managing the teams that delivered ChatGPT product in 2022, and handling the relationship with Microsoft which invested $13 billion for a 49% stake in OpenAI.

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Microsoft's Satya Nadella got his start at age 24 at Bing search engine. He is now 56 years. During this period he worked with both Bill Gates and Steve Ballmer who succeeded Gates at Microsoft. He is now remaking the Bing Search engine by using AI. This has happened since 2018 when he met Altman at the Sun Valley Tech conference in Idaho. He invested $1 billion in Altman's OpenAI, and has recently brought in Suleyman of Inflection who is a competitor of  Altman's OpenAI into Microsoft with the idea of setting up an internal AI business as well. To do this he has invested $10 billion in advanced AI chips that he has bought from chipmakers which have reduced the capital available for Microsoft's other businesses. This WSJ report by Dotan and Jin says Altman started his venture because he did not want to let AI to be led by Google silently developing its own version and doing leapfrog over competitors. A At this point in 2024 Google, Facebook and Amazon are building their own AI talent and making large investments in the chips that support AI. It is rapidly becoming an oligopoly of a few tech companies that makes deals among themselves for strategic advantage and protect themselves from public or government regulatory scrutiny. The controversy surrounding the firing and rehiring of Altman at OpenAI has brought new scrutiny from the FTC. The monopolistic behaviour of tech companies and their splitting the tech market among themselves as Google and Apple have done show the need for government action to prevent a repeat of this in AI. And to take action to break up existing monopolies in Search engines and in the Internet as Theodore Roosevelt did at the turn of the century for the oil business, breaking up Rockefeller's Standard Oil and Esso. Only when that happens can the true potential of the Internet be realized for Education, Health and other fields. Who can say that the iPad or iPhone or Google's Search engine has increased global literacy or American literacy? By freeing up these technologies- that belong to the people of America and the world- for education, health and other fields of human development mankind can advance once again. By regulating provide the ground rules for good use instead of the current danger of the Internet acting in ways to reduce public knowledge to levels that cannot sustain democratic process, and create stratified society where each group only sees what it has seen before and does not explore the world or knowledge in all its variety, all its ability to surprise us with new discoveries. ...

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Early warning about the danger of a small group of individuals deciding the future of an important technology that has dangerous potential if placed in a few hands. With the dangers ever present that the pace of development is outpacing regulatory effort, and the profit enabling a few corporations to stifle regulatory effort in America's flawed democracy. Sam Altman is seen by the board of OpenAI as "hindering the efforts of the board to carry out its responsibilities." The tension of the board with Sam Altman comes from the thinking at the board that the rapid expansion of commercial offerings was not giving time to consider the safety implications of the products rolled out. Watching Joanna Stern of WSJ interview Sam Altman and Murali Murthi gives the impression that Altman was  moving too quickly and Murthi was saying the right things but lacked the experience and capacity to tackle AI's vast responsibilities. This also stems from the fact that what young Stanford and other tech graduates in their early thirties have done in the last 2 decades ends a chapter in America's tech history. AI is an entirely different technology which requires the involvement of major parts of America's whole technological and scientific community and its society, not just a few individuals. This is also the lesson from the pandemic for virus research where not just the Cambridge, Massachusetts community needed to be involved, but vast parts of America'a health and medicine scientific community and the American public. A million lives were lost in the pandemic in the US alone, and millions all over the world. It is a lesson that should never be forgotten- that technology can get out of control. ...

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The serious differences between founders Elon Musk and Sam Altman over the non profit mission of OpenAI have spilled out into the open. Musk feels Altman is turning his back on the early mission set for OpenAI by planning to profit from OpenAI and drifting away from what it set out to do aware of risks during the early years of AI.

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Developing monopolies in AI on Apple similar to Apple Google deal on Search on Apple devices for which Apple gets $20 billion from Google. Google pays more than $20 billion a year to be the default search provider on Safari browser. This kind of deal violates the spirit of the anti-monoply laws and the US Justice Department has taken action.

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Turning Open AI into for profit after starting as a supposedly altruistic tendency venture has opened new fault lines in the company with many people leaving. The AI is now becoming a kind of gold rush with companies putting huge price tags on talent and committing some of the nation's limited capital resources into directions that lead to the massive waste that led to economic crises in the 1930's. It is reported that it will put major stress on the grid and on electricity resources and that Tech companies do not want to pay for this. The government needs to act boldly with its own "bold persistent experimentation" to find solutions where the Nation keeps its edge in many emerging technologies yet does not waste resources, or divert resources from other purposes that are vital to the better lives that all Americans aspire to. These needs are in housing (3 million new homes), in small business uplift, in renewable energy and climate change action, in education to lift NAEP scores, in early childhood education, and in healthcare. ...

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Anthropic's settlement for $1.5 billion at $3000 a book, and it's efforts in Education that conflict with the Nation's need to get 4th graders to Read and Learn. Anthropic's website shows it trying to get into Education and to measure the Economic Index from effects of AI. Yet the pretensions to goodwill for the public cause is not supported by facts, facts that the AI companies have nothing to show for the dismal situation for Global Literacy that is the case today. Literacy in the US that is dismal with about two thirds of 4th graders not able to read and comprehend the English language at a level of proficiency in American schools. These AI purveyors care only for the money they can make using vast amounts of electricity for these servers, and pretensions for public purpose are intended to smooth their access to public resources not some genuine interest in whether kids can read, which requires the hard work of the teachers in the public and private schools of this Nation and others in Europe, Asia, Latin America and Africa. The Movement for Global Literacy is Lyrarc's effort to support reading and learning and Lyrarc serves this purpose without such massive funding and without charging for the public service to the Nation and to other Nations in the world community. Anthropic settlement of $1.5 billion at $3000 a book for its AI bots use of copyrighted books, can lead to future litigation for OpenAI model that consumes vast amounts of data. Anthropic was founded by siblings Daniela and Dario Amodei after leaving OpenAI in 2021 in San Francisco. It hired Google Books Turvey to scan books for its large language models on a massive scale to train Claude its version of OpenAI's ChatGPT.  An investment of $4 billion by Amazon and additional $2 billion by Google provided funding. In this way it is a competitor to Microsoft funded OpenAI which made early advances in AI.  This article in WSJ says by making the settlement for $1.5 billion Anthropic is trying to make it harder for Open AI to scan material easily without paying for the access and thus blocking it's rival.   ...

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Watching Joanna Stern of WSJ interview Sam Altman and Murali Murthi gives the impression that Altman was  moving too quickly and Murthi was saying the right things but lacked the experience and capacity to tackle AI's vast responsibilities. This also stems from the fact that what young Stanford and other tech graduates in their early thirties have done in the last 2 decades ends a chapter in America's tech history. AI is an entirely different technology which requires the involvement of major parts of America's whole technological and scientific community and its society, not just a few individuals. This is also the lesson from the pandemic for virus research where not just the Cambridge, Massachusetts community needed to be involved, but vast parts of America'a health and medicine scientific community and the American public. A million lives were lost in the pandemic in the US alone, and millions all over the world. It is a lesson that should never be forgotten- that technology can get out of control. ...

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Large tech companies pursue deals with Open AI even as the Ai field remains largely without rules that make the technology safe and regulation against monopolies.

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CSU faculty organized against OpenAI contract expiring June 2026 at a time when students/faculty worry about loss of critical thinking skills amid 40% unemployment of new graduates. This is the California State University System once a major national institution of education under Governor Edmund Brown Sr in the 1960's that powered the 60's middle class, now torn apart by mistakes in higher education. Imagine Teniente-Matson in an AI created form speaking in many languages not realizing that this has little to do with education, as shown here in the NYT- coming to San Jose State from Texas A&M San Antonio. Both Hispanic student dominated institutions of education that have first generation Hispanics entering college- the promise of this first generation finding opportunities in the US economy. It is already fading for new graduates with high unemployment of 40%. The AI Initiative pushed by Governor Newsom in the state has created confusion or chaos says the NYT. This is the biggest 4 year public higher educational system in the US with 22 campuses, with diversity in California about 50% Hispanic. This is what "great" looked like for America in the 1960's with Eisenhower and JFK. Today with such misplaced initiatives and lack of the same wisdom and dedication to knowledge from that in the 1950's and 60's it is a fraction of its former self. It was marketed at $16.9 million for 500,000 licenses by OpenAI as a way for these first generation Hispanic college students most working class people to move forward. But as every commencement speech and everyone from the president to business leaders can attest it is all about hard work, hard work, hard work, and focus on reading and math, on sound basic skills, with pen and paper not ipads and iphones and AI that this job will be done. AI can never teach someone to persevere, to overcome obstacles, to put in the hard work over and over again to accomplish great things or to develop the curiosity for knowledge, the sense of new discovery  for scientific knowledge and invention that has powered America and Europe for three centuries. ...

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The internal feuds within Silicon Valley about ideas of altruism that support unlimited personal pursuit of profit including monopolistic behaviours, in the measure of their greed. And the presentation of lack of personal involvement in such gains by calling it altruistic. This justifies and puts a neat face on unlimited personal wealth creation in Silicon Valley at a time of great inequality and poverty in America. The consequences can be seen in the crumbling infrastructure and transportation services in New York City compared to that in newly industrializing countries such as China and India, the result of misallocation of capital.