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THE DAILY INDEX

Technology, AI, software, security, crypto and business

HEADLINES & LAUNCHES

TLDR AI

HOW TO USE COMPUTING POWER FASTER: ON THE WEIRD ECONOMICS OF SEMICONDUCTORS AND GENAI

It's difficult to understand how model providers will manage to generate sufficient usage, as the adoption rate is far from sufficient to absorb the computing power that will eventually be brought to market. The semiconductor industry will have to enter a downward cycle at some point, and this will hurt the AI sector significantly. The lack of interest in the economics of semiconductors is a real weakness in the analysis of the development of generative AI. This article shares economic considerations on the subject to help readers better understand these contemporary issues.

A GUIDE TO UNDERSTANDING AI AS NORMAL TECHNOLOGY

What if AI follows predictable patterns of adoption instead of the rapid superintelligence takeoff many in Silicon Valley prophesy? The impacts of AI depend on how it's adopted, not raw capabilities alone. Many industries continue to use outdated technology due to the non-technical (for example, Air Traffic control uses the same system from the 50s). Even advanced AI features available today have an adoption problem. ChatGPT's "thinking" models are used by less than 1% of users nearly a year after release.

CLAUDE API: WEB FETCH TOOL

The new web fetch tool in the Claude API fetches content from URLs as part of its response to prompts. It can extract full text content from URLs and PDFs. For security, the tool can only fetch URLs that have previously appeared in the conversation context, so it cannot fetch arbitrary URLs that Claude generates or URLs from container-based server tools. Anthropic recommends only using the tool in trusted environments or when handling non-sensitive data, as enabling it poses data exfiltration risks.

AI AS TELEPORTATION

While AI has the potential to improve our lives in a lot of ways, it is important to be wary of secondary effects and unintended consequences of the technology. For example, vibe coding really speeds up iteration loops and helps developers explore more ideas, but it removes previous design processes, which can change things in ways that are hard to predict. Sometimes the friction and inconvenience is where the good stuff happens, so be very careful about removing it.

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