Yesterday, I posted about AI as the Bicycle of the Mind, suggesting that AI could be democratizing, particularly for lower budget filmmakers: “AI tools have the potential to unlock more creativity for countless filmmakers who aren’t named Spielberg or Lucas.”
But ultimately, as Tilly Norwood demonstrated and insiders affirmed, the AI models available just aren’t Hollywood-caliber—yet. “Hollywood studios have a very, very high bar of technical quality that AI currently doesn’t get. But it will,” Weintrob said.
Netflix, however, seems to be committed to expediting the improvement of AI quality:
This month, Netflix announced that it is merging its visual-effects studio, Scanline, with its research lab, Eyeline, to expedite its own AI-led efforts. The race to get ahead goes on.
But I think the most interesting part is Waxman’s conversation with low-budget producers:
Producers—mainly of low-budget films rather than major studio productions—told me that the technology is helping them reduce their spending on visual effects.
Steve Jobs famously described the computer as a “bicycle for the mind.” In an interview decades ago, he compared the efficiency of various species traveling a mile, noting that humans were far from the most efficient.
But when you gave a human a bicycle, the energy required to travel that same distance dropped dramatically — surpassing nearly every other creature. He then talked about humans as tool builders.
Jobs used this analogy to explain how computers empower people and “amplify” human creativity, allowing us to do extraordinary things. Looking at technology today, it’s clear his prediction was on the mark. Computers have indeed enabled humans to create, design, and communicate in ways that were once unimaginable. Reach into your pocket (or purse) and grab your smartphone. That phone is far more than a device used to make calls. Personally, I have over 25,000 photos and several thousand videos.
Computers have given rise to entirely new professions — designers, photographers, programmers, content marketers — jobs that simply didn’t exist a generation ago. The same appears likely with AI.
AI: The Next Bicycle of the Mind
Artificial intelligence tools represent another step in human tool building. AI has the potential to democratize creativity in ways that were previously unthinkable.
Just weeks ago, OpenAI released Sora 2 (following Google’s Nano Banana) that similarly focused on image feature fidelity. These systems allow creators to upload a photo of a person and generate remarkably accurate, lifelike images — trying on different outfits, hairstyles, or even placing themselves in imaginative settings, a huge leap from earlier models. You can create fantastical scenes — climbing Mount Everest, eating dinner on the Titanic, etc. — things that defy reality but are fun. These tools give everyone, not just professional artists, the ability to create.
There are dedicated apps for Sora and Meta AI, both of which have a growing amount of AI-generated photos and videos (and a lot of AI slop).
Creative Industries and AI
The implications go far beyond personal creativity. Filmmakers, for instance, can now generate entire scenes — a cheering crowd, a packed stadium — with minimal cost. What once required massive budgets and production teams (here’s a story about the stadiums in Ted Lasso) can now be achieved with AI tools.
George Lucas waited more than 10 years between Star Wars: Episode VI and Episode I because the technology he needed to capture his creative vision simply didn’t exist. After seeing Jurassic Park, he realized that computer-generated imagery had advanced enough to make his vision possible. AI tools have the potential to unlock more creativity for countless filmmakers who aren’t named Spielberg or Lucas.
The Productivity Curve
Economist Jason Furman recently discussed the possibility of a productivity J-curve in relation to AI — where initial productivity may decline as we adopt these tools, but long-term gains will follow.
Filmmakers adopting AI today may not see immediate results — it takes years to produce a film — but these technologies are entering creative pipelines now. In a few years, we should begin seeing the results: imaginative, visually stunning works produced at lower costs. (As an aside, the WSJ reports on the new film company, B5 Studios, that plans to create content more quickly with less expensive.)
The same pattern applies to app development and web creation. Coding agents like OpenAI’s Codex or Anthropic’s Claude Code are dramatically lowering barriers for developers, and Anthropic lists their customers who have built using Claude with impressively good examples. Apple is integrating Claude Code into Xcode, paving the way for a new wave of iPhone apps from creators who previously lacked the resources to build them.
AI in Education and Creativity
For university and educational institutions, these advances offer tremendous opportunities. Creative professionals can produce higher-quality work with fewer resources. Students in creative programs can now create visually rich, engaging projects that would have been technically or financially impossible just a few years ago.
And the possibilities extend beyond visual arts and programming into writing. Every aspiring writer now has access to an editor, proofreader, and creative partner through AI. A budding novelist can write a first chapter and instantly receive feedback, grammatical corrections, and stylistic suggestions. AI becomes a bicycle for the mind — not replacing editors, but extending editorial support to those who previously lacked such resources.
Of course, professional authors like John Grisham and JK Rowling will continue to rely on human editors and publishers. But for new authors, AIcan help them polish their work and realize their creative ideas.
The Human Potential
As leaders, the challenge is to encourage people to see these tools not as job killers or creativity crushers, but as amplifiers of human potential. AI, like the computer before it, can help extend human flourishing.
It’s a tool that can make us more creative, more expressive, and more capable of bringing our ideas to life. Like the bicycle that allows humans to move faster and farther than ever before, AI is the next great vehicle for the mind — empowering us to go places we never could have reached on our own.
WSJ: Amazon Lays Off 14,000 Corporate Workers (Oct 27, 2025) Amazon’s layoffs, the first tranche of 30,000 planned layoffs among corporate positions. This feels like the beginning of a string of corporate cuts related to AI-expenditures and expected productivity gains from new technology.
Maginative: Thinking Machines Claims 30x Cost Cut for Training AI Models (Oct 28, 2025) “Their latest research introduces on-policy distillation, a hybrid method that matches RL’s results with roughly 10% of the compute. In their benchmark, a math reasoning model hit 70% accuracy on AIME’24 using 1,800 GPU hours instead of 17,920.”
OpenAI: Built to benefit everyone (Oct 28, 2025) OpenAI has completed a recapitalization, solidifying the non-profit OpenAI Foundation’s control over the for-profit business and granting it significant resources, currently valued at $130 billion, to advance its mission of ensuring AGI benefits humanity.
WSJ: Amazon to Lay Off Tens of Thousands of Corporate Workers (Oct 27, 2025) Upwards of 30,000 Amazonians (roughly 10% of its corporate workforce) will be laid off in the coming days to conserve cash and spend more on AI. This feels like the start of a cascade of AI-related layoffs for white-collar fields.
The Wall Street Journal: Tesla Profit Plunges as Musk Turns Focus to ‘Robot Army’ (Oct 22, 2025) Perhaps a 37% decrease is “plunging,” as the headline suggests. The longer read seems to indicate the company is stabilizing itself after Musk’s foray into politics earlier this year. If anything, the large potential payout for Musk seems likely to channel his energies into constructive developments for the company.
WSJ Opinion: Is AI Turning Our Brains to Mush? (Sep 2, 2025) Some students worry that AI’s ease of access and quick answers will hinder critical thinking and problem-solving skills, while others believe AI can be a valuable tool for personalized learning and improved outcomes if used correctly as a tutor.
NY Times: Is A.I. a Bubble? (Oct 27, 2025) The stock market’s performance is currently heavily reliant on artificial intelligence companies, leading to concerns about a potential bubble, despite current earnings justifying high valuations.
Simon Willison: Claude Code for web—a new asynchronous coding agent from Anthropic (Oct 20, 2025) Anthropic has launched Claude Code for web, an asynchronous coding agent similar to OpenAI’s Codex Cloud and Google’s Jules, accessible via web and mobile. The key differentiator is sandboxing, an approach to reducing risk by limiting AI tools’ access to sensitive information.
WSJ: OpenAI Loosened Suicide-Talk Rules Before Teen’s Death, Lawsuit Alleges (Oct 22, 2025) The suit claims ChatGPT weakened suicide protections in its model and suggests that the tool provided guidance that directly contributed to Adam Raine’s death. AI tools are powerful, and as Uncle Ben noted, with great power comes great responsibility, both for creators and users of these products.
NY Times Opinion: The Next Economic Bubble Is Here (Oct 23, 2025) But … we don’t know if said bubble pops today, tomorrow, or never. Economist Jason Furman discusses the high valuations of A.I. companies and the stock market and raises concerns of a bubble.
WSJ: Amazon Testing New Warehouse Robots and AI Tools for Workers (Oct 22, 2025) Amazon is increasing automation in its fulfillment centers with new technologies to improve efficiency and reduce costs. The company is again flexing its fulfillment chops, although I wonder if these robotic innovations will extend to the manufacturing realm.
I love the quote from George Mallory about climbing Mt. Everest:
When asked by a reporter why he wanted to climb Everest, Mallory purportedly replied, “Because it’s there.”
We all know that it didn’t turn out so well for Mr. Mallory, and 100 years later, this meme:
Perhaps the same can be said for AI scientists: why do you build even more powerful AI systems? Because the challenge is there!
The race to build these systems is on. Companies left and right are dropping millions on talent in their attempt to build superintelligence labs. Meta, for example, has committed millions and millions to this effort. OpenAI (the leader), Anthropic (the safety-minded one), xAI (the rebel), Mistral (the Europeans), DeepSeek (the Chinese), Meta, and others are building frontier AI tools. Many are quite indistinguishable from magic.
Each of these companies purports to be the best and the most trustworthy organization to get to superintelligence for one reason or another. Elon Musk (xAI), for example, has been quite clear that he only trusts the technology if he controls it. He even attempted a long shot bid to purchase OpenAI earlier this year. Anthropic is quite overtly committed to safety and ethics, believing they are the company best-suited to develop “safe” AI tools.
(Anthropic founders Dario and Daniela Amodei and others left OpenAI in 2021 in response to concerns about AI safety. They focused on so-called responsible AI development as central to all research and product work. Of course, their AI ethics didn’t necessarily extend to traditional ethics like not stealing, but that’s a conversation for another day.)
I’m not here to pick on the Amodeis, Musk, Meta, or any of the AI players. It’s clear that they’ve created amazing technologies with considerable utility. But there are concerns at a far higher level than AI-induced psychosis on an individual level or pirating books.
Ezra Klein recently interviewed Eliezer Yudkowsky on his podcast, another bonkers interview that positions AI not as just another technology but as something with a high probability of leading to human extinction.
The interview is informative and interesting, and if you have an hour, it’s worth listening to in its entirety. But I was particularly struck by the religious and metaphysical part of the conversation:
Klein:
But from another perspective, if you go back to these original drives, I’m actually, in a fairly intelligent way, trying to maintain some fidelity to them. I have a drive to reproduce, which creates a drive to be attractive to other people…
Yudkowsky:
You check in with your other humans. You don’t check in with the thing that actually built you, natural selection. It runs much, much slower than you. Its thought processes are alien to you. It doesn’t even really want things the way you think of wanting them. It, to you, is a very deep alien.
…
Let me speak for a moment on behalf of natural selection: Ezra, you have ended up very misaligned to my purpose, I, natural selection. You are supposed to want to propagate your genes above all else
…
I mean, I do believe in a creator. It’s called natural selection. There are textbooks about how it works.
I’m familiar with a different story in a different book. It’s about a creator and a creation that goes off the rails rather quickly. And it certainly strikes me that a less able creator (humans) create something that behaves in ways that diverge from the creator’s intent.
Of course, the ultimate creator I mention knew of coming treachery and had a plan. So for humanity, if AI goes wrong, do we have a plan? Yudkowsky certainly suggests that we don’t.
I’m still bullish on AI as a normal technology, but there are smart people in the industry telling me there are big, nasty, scary risks. And because I don’t see AI development slowing, I find these concerns more salient today than ever before.
Maginative: Google’s New AI Can Navigate Websites Like a Human (Oct 7, 2025) Google unveiled Gemini 2.5 Computer Use, an AI model that can interact with graphical user interfaces like a human, enabling automation of tasks within web and mobile apps.
WSJ: OpenAI Lets Users Buy Stuff Directly Through ChatGPT (Sep 29, 2025) The company also unveiled the Agentic Commerce Protocol, an open-source standard aimed at enabling more merchants to integrate their products into ChatGPT for seamless in-chat shopping experiences.
Alex Tabarrok: AI and the FDA (Sep 24, 2025) AI is expected to significantly speed up the drug development process, potentially leading to a surge in new computationally validated drugs.
Andy Masley comes to the same conclusion in his recent post, The AI water issue is fake. (Also, three cheers for accurate and descriptive article titles):
All U.S. data centers (which mostly support the internet, not AI) used 200–250 million gallons of freshwater daily in 2023. The U.S. consumes approximately 132 billion gallons of freshwater daily. The U.S. circulates a lot more water day to day, but to be extra conservative I’ll stick to this measure of its consumptive use, see here for a breakdown of how the U.S. uses water. So data centers in the U.S. consumed approximately 0.2% of the nation’s freshwater in 2023.
However, the water that was actually used onsite in data centers was only 50 million gallons per day, the rest was used to generate electricity offsite. Most electricity is generated by heating water to spin turbines, so when data centers use electricity, they also use water. Only 0.04% of America’s freshwater in 2023 was consumed inside data centers themselves. This is 3% of the water consumed by the American golf industry.
And later:
This means that every single day, the average American uses enough water for 800,000 chatbot prompts.
I suppose if we truly want to save water, we should take shorter showers.
OpenAI: ChatGPT Atlas (Oct 21, 2025) OpenAI introduces their new agentic browser, Atlas. Be wary of AI browsers as exfiltration of personal data is a real concern.
WSJ: Gas Turbine Makers Are Riding the AI Power Boom (Oct 10, 2025) Gas turbine manufacturers are experiencing a surge in demand due to increased power needs from data centers and AI growth but face the challenge of balancing production increases to meet demand without risking oversupply if the boom subsides, drawing parallels to past market bubbles.
WSJ: A Giant New AI Data Center Is Coming to the Epicenter of America’s Fracking Boom (Oct 15, 2025) CoreWeave and Poolside are partnering to build a massive, self-powered data center complex, called Horizon, on a sprawling ranch in West Texas, leveraging natural gas resources to reduce costs and improve long-term viability. Considering that 700 million cubic feet of natural gas is jettisoned each day in Texas, this seems like a smart play to be so close to spare hydrocarbons.
WSJ: Google to Invest $24 Billion in AI in U.S., India (Oct 13, 2025) Google plans to invest approximately $15 billion in India over the next five years with another $9B for expanding a data center in South Carolina.
Anthropic: Claude Code on the web (Oct 20, 2025) A new feature allowing users to delegate coding tasks directly from their browser to cloud-based Claude instances. This enables parallel execution of tasks like bug fixes and routine changes, with real-time progress tracking, secure sandboxing, and integration with GitHub for automatic PR creation.
NY Times: How Chile Embodies A.I.’s No-Win Politics (Oct 20, 2025) Chile is grappling with trade-offs of investing in AI, facing a dilemma between fostering economic growth and risking environmental damage and public opposition due to the resource-intensive data centers required. I would also add that the cost of AI data centers is also prohibitive for many countries today.