Why are AI companies spending trillions on data centers that might never pay off? In this video, I apply Pascal’s Wager to artificial intelligence to explain it.
Try the Superhuman connectors for Claude and ChatGPT here: superhuman.com/jon This video is sponsored by Superhuman.
Pascal’s Wager says belief in God is the rational bet because the upside is infinite and the downside is small. AI leaders like Sam Altman and Dario Amodei use a similar logic about superintelligence. The possible payoff is so big that the risk of overbuilding seems worth it. That logic shapes the AI bubble debate, company valuations, and what gets built and where. But there is one key difference. With AI, you can only reach the great outcome if you also risk the bad one. This video is part of my AI Fundamentals series, so it is a bit more philosophical than my usual tool walkthroughs. Do you think the AI bet is worth it? Tell me in the comments.
CHAPTERS: 0:00 Pascal’s Wager and AI: The AI Fundamentals Series 0:35 What This Video Covers 1:13 Sponsor: Superhuman Connectors for Claude and ChatGPT 2:10 Superhuman Mail Demo: AI Drafted Sponsor Follow-Ups 2:31 Superhuman Docs Demo: Contract and Invoice Tracker in One Prompt 3:07 What Is Pascal’s Wager? The Rationalist Argument Explained 4:03 The Parallels Between AI and Religion 4:44 Swapping Faith for Capital: Superintelligence as the Bet 5:30 Are We in an AI Bubble? Overinvesting vs Underinvesting in Data Centers 5:45 Why Sam Altman and Dario Amodei Bet Big on Superintelligence 6:45 Wasting Trillions on Data Centers vs the Superintelligence Payoff 7:23 How the AI Wager Shapes Company Valuations 7:34 The Key Difference: Good AI Requires Risking Bad AI 8:19 P(doom) and the 10% vs 90% Bet on Superintelligence 9:05 How Ideology Drives Real-World AI Investment 9:28 Final Thoughts
So you're watching a video in a series about
the fundamentals of artificial intelligence
or at a high level,
what ideas and concepts and trends you should understand to know what's
going on in the world of AI and where this technology might go,
where it is going, what
it means for you and how to get the most use out
of it for you personally and in your career.
And so on that note,
one of the interesting questions to ask about AI that is very good
It's good in making you think about
These dynamics is that of Pascal's wager
as applied to artificial intelligence.
Now, in this video, I'm going to explain what Pascal's wager is.
If you haven't heard of it, how it's similar to A.I.
and what kind of second order questions
and critical thinking it prompts
and then where it's different from the insights that are also unlocked
in how it differs from the traditional kind of religious archetype.
So that's going to be the video.
It's going to be a little more of a philosophical one,
but still a very interesting
Now, quickly,
before we keep going,
as you know, I run this
YouTube channel and have
a full-time job at a startup.
And so oftentimes, the things that eat up
my time during the week is not the work, it's
just communication in my inbox.
Right, so for example, every brand deal lives in the inbox.
So briefs, contracts, invoices, follow-ups, all happens over email.
And so if I needed something like a tracker to organize things,
I'd have to build it by hand on a Sunday
and then just rebuild it the next week
because nothing ever really stuck.
And that is why I started using the Superhuman Connectors.
And this part of the video is sponsored by Superhuman.
So Superhuman Mail and Superhuman Docs,
also called Super Docs,
are both part of the Superhuman Productivity Suite.
And the connectors plug both of them
into Claude and ChatGPT.
So that means the AI tools I already do most of my work in
can write to my inbox and also my documents
without having to copy and paste.
Now here is how I use it.
So I'm on my computer here for Superhuman Mail.
I ask it to find every sponsor thread,
for example, from the past two weeks,
where I'm still waiting on
I'll check the red status on what I sent
and then draft a follow-up for the ones that
were opened but never answered.
So the drafts land in my Superhuman Mail inbox,
I tweak one or two and then I just hit send.
Now second is Superdocs, so I ask it to pull,
for example, every contract and invoice from
this quarter out of my inbox
and build a table in Superhuman Docs with the brand, the amount
And the due date, that used to take a ton of time.
Now it's one prompt and the editor will see
the same table that I do and everyone else
on the team.
And that used to be genuinely a lot of work.
Now it is one prompt inside of Docs.
So if your inbox runs your business
and your work week like it does for me, then you need
to try these Superhuman connectors.
You can sign up for Superhuman using my link
on the screen here or in the description.
So Pascal's wager is a rationalist argument.
about religion and what it says is hey if you are not religious
and you didn't believe in god and
you go to hell for eternity that's really bad
and if you are religious and you get to go to heaven
because of your belief in a higher being that's really good for you
and what's critically important
is if you do believe and none of it
was real right you have nothing to lose and so a rationalist may
Let me look at that and say, well, hey, I have a lot.
More to gain, a lot less to lose by believing in a higher power,
irregardless of whether that higher power is actually there.
Now that induces a whole very gnarly set
of questions about faith and religion,
and we're not going to get into that,
but the concept and the point there stands.
And so how does that question and that quadrant have parallels to AI?
Well, it does in a lot of ways,
and I've made videos about this before, because there are synonyms,
there are parallels between AI and God, right?
And AI, in many ways, is a religion,
a sort of belief about the linear returns to more intelligence,
about superintelligence and consciousness.
Now, this is getting very abstract.
If you've never seen a video on this channel before,
I nearly always make videos about AI tools and...
platforms and how to get the most views out of them.
That's like 90% of this channel.
But just bear with me here and you'll see how this all ties together
and connects. And so swap out
some of the religious aspects with the capital aspects, right?
Let's frame it as, okay, we might
get to super intelligence to this incredible AI.
And that AI is a very effective capital player.
It's very good at making money
because it's very good at solving problems.
problems that might cure cancer or advance future forms of energy.
And so traditionally, Pascal's wager, what you say is,
should I believe or not believe in God?
In this AI paradox, what you say is,
should I or do I believe or not believe that we will get to a
point of this incredible artificial intelligence
that will solve all of our problems and make a
ton of money? And some people believe that we're going to get there,
and some people don't believe.
And that question is the question of...
Are we in a bubble? Are we not in a bubble?
Are we over-investing into data centers,
into AI, or are we radically under-investing?
And the strongest parallel here, then the next
of thinking that through is, okay, well,
if you are Dario, if you are Sam Altman,
if you are one of the people who are driving this industry forward,
one of the hinges of
your belief system about AI in many cases
in their own words is that we simply have
more to gain than we have to lose,
is that the promise of that super intelligent thing that
solves our problems is so great, so amazing,
that it's worth the risk of it not working out,
and it's worth investing an incredible amount of resources now.
And what is that, if not similar
to that rationalist theory of, well,
I should believe in God because the EV is higher? And
it's not completely the same, and I'll get to that,
but you can start to see what I mean there.
The bet on superintelligence is it's worth to invest
an enormous amount of money and resources.
time and risk bad outcomes
because that good outcome is just incredibly good. And so sure,
maybe you overbuilt data centers
and you wasted a few trillion dollars there, but that's worth it
if there's a 1%, 5%, 50%, 80% chance,
whatever number you believe it is, the chance that you'll
produce this super intelligence that solves extremely valuable endemic
problems that humans face that provide an ample return on that money.
So those are the parallels
that I want to get across.
And again, there's a lot of questions there. And you get to this weird
kind of abstract, like metaphysical take on AI,
and it becomes a question of consciousness and
religion. And we're not going to get into all of that.
But that dynamic does really affect how
people price these companies now and how the actors inside of them
Go ahead and move ahead in the industry and with the technology.
But what's different about it?
And there is a really important difference,
which is the arguments in the traditional
Pascal's wager is that if you believe in God, you will go to heaven.
E.g., if you believe in the positive outcome,
then you are guaranteed to get that positive
outcome.
Again, we're going to put a lot of religious questions there aside.
Yet in how most people think about it,
including the decision makers in the industry, you can
only get to the really,
really good outcome of AI if you risk getting to the really bad
outcome of AI and super intelligence.
And that difference arguably is a large core driver
of that debate around AI and whether
you should shut it down,
whether you should slow it down or do the opposite.
And when you hear people in the industry saying,
hey, there's a 10% chance that it goes really
south with superintelligence
and the 90% chance it goes really incredibly well, what they're
making is their own version of Pascal's wager.
They're saying it's worth it to risk the 10% to go for.
And to not believe in that future, to not strive for it,
also disregards the really, really beautiful outcome
and incurs all of this sunk cost suffering, right? Cancer, death,
all of all of the the calamities of humanity and the human experience.
Now, again, you get into a lot of
Big philosophical questions that we're
not going to touch in this video, but ideology
is driving a lot of the real world financial debates and impacts,
the valuations of certain
companies, what's being built or not built,
and where the evolution of AI is the philosophy
of those who work in it and around it
and deal with it applied to the physical and the
capital.
That is the concept I will end this video on.
I hope that is some food for thought for you.
These are not questions that anyone is the answer to,
much less myself, but I think they
are good questions to ask and to think about
and to understand the decisions of others.
Appreciate y'all being here, and I will see you in the next one.