OpenAI vs Anthropic

As is usually the case, the big two of AI are rapidly taking shape, with the only real question being who will play the role of the number three spoiler, Grok, Gemini, or some as yet unknown player.

Both companies are now building AI that acts inside applications rather than generating text about them, and six launches in eight days confirm that the two labs have arrived at the same conclusions about the future of their products.

But as the capabilities of their tools approach parity, everything else about these rival titans is rapidly diverging. In the span of three weeks, OpenAI closed the largest private funding round in history and signed a classified-use agreement with the Pentagon. Anthropic simultaneously lost its military contracts and was designated a supply-chain risk, then launched a $100 million enterprise push backed by private equity talks.

In January, this publication argued that OpenAI and Anthropic had chosen fundamentally different financial strategies. What we are seeing now is a concrete expression of those strategies. How each company is financing itself is now shaping its trajectory more than anything it ships…

As ChatGPT and Claude approach functional parity, enterprise customers are gaining the freedom to choose between them based on whom they wish to buy from rather than which tools they need. Upstream cloud infrastructure, vendor commitments, political exposure, and long-term flexibility will become increasingly important factors in any given company’s choice of AI platform.

It’s become obvious that Facebook badly misplayed its hand despite its initial advantages. The $80 billion they sunk into the idiocy of 3D avatars to no avail, including rebranding the company around it, would not only have gone a long way into AI investment, but is likely to go down in business history as one of the all-time corporate catastrophes with Blackberry ceding the mobile phone market to Apple and Bill Gates failing to notice the importance of the Internet in The Road Ahead.

It also underlines the falsity of the idea that Zuckerberg was ever a technological boy genius rather than the CIA catspaw that everyone now understands he and the founders of Google were. Anyhow, read the whole thing there.

In other AI-related news, I’m very pleased to observe that Claude’s one-million-token context window is now available through the web interface as well as through the API. I’m already making excellent use of that, as it should reduce translation time by as much as 50 percent.

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No Children, No Economy

By the time the next economic depression bottoms, it will be illegal for women to not have children in many countries:

Underneath all of this, slower than any war and more permanent than any crisis, is something the financial press doesn’t really mention:

People aren’t having any children.

US fertility hit an all-time low in 2024. The general fertility rate is still falling. IMPLAN puts 1.4 million fewer Americans contributing to housing demand, retail spending, and service consumption in 2025 than trends would have predicted. To put that in numbers: $104 billion in GDP. Not exactly gone, not really disappeared. It just never existed in the first place.

It’s a vicious circle: housing is too expensive, so young people delay children. Fewer children means less future housing demand. Which should eventually reduce prices, except the lag is 20-30 years, and in the meantime housing stays expensive, so the people who couldn’t afford a house still can’t, still don’t have children, and the loop tightens at its own pace regardless of what the Fed does or what happens somewhere in the narrow waterways in exotic places.

Added: the boomers are saying bye sayonara.

The generation that inflated every asset class for 40 years through automatic 401k contributions is, somewhere around now, flipping from net buyers to net sellers. Of course it’s impossible to say like “March, 17: boomers start to cash out their 401ks”… Nope, the tide just turns. The same passive machine that provided an inexorable, automatic bid for equities and bonds and real estate – every payday, every year, for four decades – begins to redeem. Quietly. Continuously. For the next twenty-some years. Every asset they inflated on the way up faces a headwind on the way out. Not a crash. A long, grinding, demographically-inevitable ratchet.

That’s why the central planners of the world turned toward mass immigration. You need consumers to keep the GDP growth going, and with fewer children, there were going to be fewer consumers. Of course, the problem is that the macroeconomic models don’t account for quality of consumer, so it’s only very recently that the mainstream economists have begun to realize that lending to immigrants from grasshopper cultures is absolutely guaranteed to crash the banking system because none of those loans will ever be repaid.

And this is just on the consumption side. Imagine what lowering IQ, time preferences, and productivity does on the production side, although you don’t need to imagine it anymore. We already know what a calamity diversity and inclusion have turned out to be for the US corpocracy.

Indeed, based on a 2025 Danish study, it may even be necessary to ban paid female employment. Such a policy would indubitably be sexist, anti-feminist, and currently illegal in most Western countries. But no one living in any society that elects to show up for the future is going to care what the norms of a few long-dead 21st-century societies happened to be.

Egalitarianism is already conceptually dead. It won’t be many more decades before people stop believing in it.

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300 Down

One-third of the Washington Post’s staff is being laid off. Over 300 employees were let go today.

Good to know. Only 600 to go.

Sit by the river long enough and eventually the bodies of your enemies float past you. There are few things I enjoy more than reading about the layoffs of journalists.

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WhatsApp is Not Secure

Don’t kid yourself. There is no such thing as online security. Everything you do online is known, so don’t even bother trying to fool yourself otherwise. Yes, I know what Signal and WhatsApp claim. It doesn’t matter, because they are highly incentivized, and quite possibly legally obligated, to lie to you about it.

US federal authorities are investigating allegations that staff at WhatsApp owner Meta Platforms Inc. had access to message content despite the company marketing the app as protected by end-to-end encryption, Bloomberg reported on Thursday.

Special agents from the US Department of Commerce’s Bureau of Industry and Security have been examining claims from former Meta contractors who alleged that they and staff at Meta had “unfettered access” to WhatsApp messages.

One contractor told an investigator that a Facebook team employee confirmed they could “go back a ways into WhatsApp (encrypted) messages,” including in criminal cases, according to an agent’s report reviewed by Bloomberg.

WhatsApp, which was acquired by Meta in 2014, insists on its website that “no one outside of the chat, not even WhatsApp, can read, listen to, or share” what a user says.”

Meta spokesperson Andy Stone had also denied the allegations, stating that “what these individuals claim is not possible because WhatsApp, its employees, and its contractors, cannot access people’s encrypted communications.”

The only thing the US authorities care about it is that they, too, have access to the unencrypted files.

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Karma is a Bitch

Amazon just laid off 16,000 more workers. I would be willing to bet this explains our groundless termination, as well as how quickly it was upheld upon “review”.

Amazon said Wednesday it plans to eliminate about 16,000 corporate jobs, marking its second round of mass job cuts since last October. In a blog post, the company wrote that the layoffs were part of an ongoing effort to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.” That coincides with a push to invest heavily in artificial intelligence.

The job reductions come just a few months after October’s layoffs, when 14,000 employees were let go across Amazon’s corporate workforce. At the time, the company indicated the cuts would continue in 2026 as it found “additional places we can remove layers.”

Beth Galetti, Amazon’s senior vice president of people experience and technology, didn’t rule out more job cuts in the future, but said the company isn’t trying to create “a new rhythm” of broad layoffs every few months.

It also might explain why the executive to whom I appealed the KDP decision was a little too busy to pay any attention to one minor KDP account right away, because apparently, he did us the favor of stepping in again and telling whomever was left at KDP to stop screwing around and reinstate us. I was a little confused this morning to see Castalia’s inbox had been bombarded with email alerts from KDP informing us repeatedly that a new book was available through Amazon and Audible, as well as this one from a different member of the Content Review Team.

I can confirm that your account is now active and you have full access to your Bookshelf. Please let us know if you still cannot access your account, so we can further investigate this issue.

None of this means that the lesson about platforms doesn’t apply. But it does give us more time to build our own correctly.

Being back on Amazon also lets us see that PROBABILITY ZERO received its first one-star review, courtesy of one of Dennis McCarthy’s readers.

Bryan H. Wildenthal
1.0 out of 5 stars This book is pseudoscientific garbage
This books is complete and utter GARBAGE and pseudoscience. The author doesn’t understand basic statistics and blatantly misuses scientific papers he relies on. Dennis McCarthy, author of widely praised articles and a book on evolution and biogeography, has demolished Vox Day’s argument in a short recent blog post. Google “Dennis McCarthy why Probability Zero is wrong evolution.”

Clearly this is some new use of the word “demolished” with which I was hitherto unfamiliar. But it’s an apt demonstration of how midwits operate. They don’t understand any of the words they use, which is why they rely upon others to do their thinking for them, then posture grandly, and confidently, with absolutely no awareness of how ridiculous they look or how insupportable their position is.

Anyhow, I’m pretty sure what happened is that some KDP employees of the “I fucking love Science” variety were informed that they were laid off and decided to strike a blow for Science while they still could. So it was SJW shenanigans after all.

By the way, after all that, 死神と悪魔 is finally available. So, if you’re one of the six people who read fluent Japanese reading this blog, you’re all set now.

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Why the Economy is Collapsing

We have terminated your KDP account because we found that you do not have the necessary rights to publish the book(s) listed below. If you have documentation proving you have the necessary rights to publish this book, please reply to this message and attach it to your email.

If you’re having trouble finding Probability Zero on Amazon, or any of our other books, this is why. Somehow, its system saw that Castalia had submitted 死神と悪魔, the Japanese edition of Death and the Devil, and decided that we were infringing upon the rights of Editions Alpines, which publishes the German translation called Der Tod und Der Teufel and somehow concluded that we don’t have the necessary rights to publish a different language translation of the book we originally published.

Anyhow, we hope to have this resolved today. But it’s another object lesson in the extreme fragility of trying to work in today’s centralized business environment. And it’s a reminder of the importance of building your own platforms and never being reliant upon the mainstream ones.

UPDATE: I heard back from KDP. Now they suddenly need to look into it. Which could take until next week. But I think they’ll find a reason to expedite the restoration.

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Immigration and Outsourcing

Immigration and outsourcing are not the answer to greater profits over time. To the contrary, they are a certain path toward destroying the very organization for which they are supposed to be generating increased profits.

Ubisoft is on the verge of complete collapse due to terrible decisions like trying to develop the new Prince of Persia in India, as legendary WoW producer Grummz explains:

Prince of Persia, why it was REALLY cancelled. Insider tells all. “The game is so bad…” This from my Ubisoft sources:

  • 90% developed by Ubisoft India.
  • Project was a disaster.
  • Transferred last minute to Ubisoft Montreal to “fix” it.
  • Game unfixable.
  • Cancelled.

Note that Ubisoft Montreal spent FOUR YEARS trying to fix it and they couldn’t. I can attest that my one experience working with Indian developers for 3M on a sales training software project was an absolute and utter catastrophe. They couldn’t implement even the simplest, most basic features with any degree of reliability, and as far as the graphics went, they appeared to be limited to the stick-figure level.

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H1B is Invasion

Immigrants always hire other immigrants. This is why you shouldn’t hire immigrants, and you definitely shouldn’t ever permit immigrant executives. Their first priority is always finding a way to hire more of their own, not the success of the company, much less the society they’re plundering:

FedEx received a significant federal delivery contract worth more than $2 billion in late 2022. The company’s hiring procedures started to drastically change thereafter. According to The Dallas Express, official documents show that FedEx significantly raised the number of foreign workers it hired under the H-1B visa program while concurrently decreasing the number of American positions held in different parts of the US.

In response to the report, FedEx stated that its hiring decisions are based on business requirements and the necessary skills. A spokesperson for the company told The Dallas Express that FedEx is committed to fostering employee development and constructing a workforce aligned with its operational needs.

“Across our business, we employ a wide range of roles, requiring a variety of skillsets and are committed to complying with all applicable federal immigration laws.”

Also Read: H-1B visa row drastically impacts California schools, ‘it’s a form of discrimination to…’

Indian-origin FedEx CEO Rajesh “Raj” Subramaniam is now facing flak on social media for firing American employees in order to bring in foreign workers. The move comes at a time when firms are hesitant to hire H-1B workers due to the hefty $100K charge under current Trump administration.

We’re about 20 years away from the advocacy of mass immigration, and the organizational support for it, being correctly identified and prosecuted as treason. Because that’s exactly what it is; mass cross-cultural immigration is more harmful for a nation than military invasion and occupation.

Japan and Eastern Europe were occupied for generations. They are still observably what they were. Canada, France, the UK, Australia, and the USA? Not so much, and in one-third the time.

Foreign soldiers go home voluntarily. Large-scale migrations don’t.

Just ask the American Indian…

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Independence is Opportunity

Brien Niemeier retrospectively points out what should have been obvious, but wasn’t, to everyone all along:

For most of the twentieth century, creative ambition followed a single script. You studied the field, polished a manuscript, hunted for an agent, and prayed for a contract.

If you were in film or music, the process was different in details but identical in structure: Everything hinged on the approval of an institution. Success came from being chosen. Talent mattered, but luck mattered more. Most creators knew it but kept playing the game because the alternative seemed unthinkable.

That expectation didn’t come from nowhere. It grew out of a period when the gatekeepers could actually elevate an unknown. They possessed the distribution networks, the advertising budgets, the corporate partnerships, and the capacity to manufacture stardom.

That pattern repeated enough times to take on the aura of tradition. If you wanted a career, you knocked on the same doors everyone else knocked on. The problem is that the doors stopped opening long before artists realized the hinges had rusted shut.

By the late 1990s, the blockbuster mentality had consumed the traditional institutions. Every division—publishing, film, television, and music—became obsessed with scale. Risk tolerance flatlined. Executives seeking hits that could justify their salaries clung to anything that produced reliable profit and panicked at the unfamiliar. Innovation came to represent risk instead of opportunity.

At the same time, audiences aged. The properties that kept the lights on were the ones that debuted thirty, forty, or fifty years earlier. Instead of cultivating younger talent, the corporations recycled the same brands over and over, hoping nostalgia would substitute for relevance. You saw endless sequels, remakes, reboots, and spin-offs. The cultural oxygen was consumed by dying giants.

Creators sensed something was wrong, but most didn’t grasp how deeply the rot ran. The old structures no longer had the ability or the interest to launch new creators into the mainstream. The institutions that once acted as kingmakers had lost the will and the means to fulfill that role.

Yet legacy outlets continued promoting the old discovery narrative because it kept the talent pipeline flowing. As long as artists believed salvation waited inside the old system, they wouldn’t look for alternatives.

This conditioning left scars. Many creators still cling to the hope that one good pitch or lucky submission will unlock a career. They believe someone in a skyscraper will pluck them from obscurity and grant them access to an audience. This belief persists despite decades of evidence that the system has no interest in fulfilling creators’ expectations.

Worse, some artists internalized the idea that bypassing the old gatekeepers equates to failure. Seeing independence as a last resort, they imagine legitimacy comes only from institutional approval, even though the institutions abandoned their curatorial role.

That psychology runs deep: Creators were trained to think of themselves not as people who produce value for audiences, but as supplicants waiting for an authority figure to validate them.

The irony is that while creators waited for help, audiences changed faster than the institutions could track. Once internet access became ubiquitous, people stopped caring about traditional pipelines. Their interests moved to quality and authenticity, not pedigree.

The challenge now is that the playing fields are not even close to level. How can a podcaster compete on YouTube or Spotify when he’s banned from one, the other, or as in some cases, both? How can an author compete when the A9 algorithm, or whatever Amazon calls the way it makes winners out of losers and losers out of winners, fails to favor him?

The answer, as we were forced to figure out much, much earlier than most, is direct sales and patronage. That’s why Castalia thrives while many other publishers, including the big ones, are struggling more and more every year. It’s because we were forced to rely on you readers early on, long before

There are still challenges posed by structural elements like the payment processors, but even those challenges are starting to fade as Russia, China, and the BRICS countries improve their financial products. And what that means is that independent creators don’t have to go down with the collapsing mainstream infrastructure.

As AI improves, as the number of options improve, it’s only going to keep getting better for true independents and worse for those who still cling to the idea that the gatekeepers matter, no matter how propped up they might be.

Speaking of the collapse of the mainstream gatekeepers, shame on all of you Rabid Puppies. Shame!

I was in a small bookstore just after the Hugo blow up, and this old guy was asking the clerk for recommendations. She straight face recommended NKJemison, “She won 3 years in a row, and it’s never happened before!” Poor guy.

And that’s why it only takes 11 votes to get nominated for a Hugo these days.

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The Name is Bezos. Jeff Bezos.

Amazon bought creative control of the James Bond franchise, and for a lot less than you’d probably imagine:

Sooner or later everyone has a price, but in the case of James Bond ‘s former paymasters it’s significantly lower than the incredible sums being reported as recently as last week. After 25 films, six 007’s and countless foiled attempts at world domination, long-term producers Barbara Broccoli and Michael C Wilson sold the hugely popular spy franchise to Amazon MGM for a widely reported £1 billion, in February.

But a recent earnings report from Wilson and Broccoli’s Eon Productions suggests the true figure is notably less than initially thought.

‘On 20 February 2025, the company entered into an agreement for the sale of its interest in the Bond franchise, all associated assets as well as its subsidiary companies, B24 Limited and B25 Limited,’ reads the report, published by Variety. The total consideration for the sale amounted to $20 million (USD).’

The deal gives Jeff Bezos and Amazon MGM full creative control of the franchise going forward, while forming a joint venture with Wilson and Broccoli to manage intellectual property rights.

If Amazon can do for Bond what it did for Lord of the Rings, it should be available for a lot less in the not-too-distant future. Sure, it’s possible they learned their lesson, certainly a lot of other film studios did. But I wouldn’t bet on it.

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