You do understand that products are "essentially fungible" and crude is semi-fungibl (most crude is pretty fungible), and the US is not an island in this marketplace?

Also, you do realize that Aframax rents from Venezuela are ~$1,5m in early 2026 to ~$3,5M? Even your "cheap case" is increasing crude prices by 5%. But to repeat: the US is not an island in this global marketplace. Products get exported from US refineries and sell at globally competitive prices, which forces US consumers to pay globally-competitive prices as well.

At present, no. I've done a number of experiments with LLMs' capabilities with generating fiction, and while they are impressive for a beginner writer -- because fo the lack of spelling and grammar mistakes, they are nowhere near being able to write competent fiction.

This is because they don't model reader or character minds, they're based on word probabilities, like a predictive text keyboard. The engineers can compensate for for this to a surprising degree by feeding it data to recognize specific situations (e.g. the car wash is 100 feet from my driveway; should I drive or walk?). But this is turd-polishing.

AI technology practice isn't foundational. Critical thinking is. The closer AIs come to being able to do something that looks like them doing our thinking for us, the more capable we have to be at thinking without them. A human who can't outthink an AI adds nothing to an AI-human partnership.

This proposed school is a typical scheme by people who think because they have been educated, they understand how the education works. This is like thinking because you eat, you know how to cook. Project work in education is nothing new; it goes back well over a century. And in real life, you may get a STEM degree, but your real education in engineering comes from real life work. But that doesn't mean classes in calculus and physics don't do anything for you.

Or English classes, for that matter. Nobody doubts the value of project work in education, particularly *androgogy* -- the education of adults. But for *pedagogy* you have to establish foundational skills as the student matures intellectually and socially. Entering the high school years, a typical student has had *no* training in critical thinking skills. To develop critical thinking skills in an area, you need both general skills (epistemologicla literacy: research, location of orignial sources, dealing with conflicting evidence) and domain specific training in that area. In other words, *liberal arts* training is foundational in an AI-saturated world. "Liberal Arts" -- from *artes liberales*: literally the skills necessary to be a free person.

But I think these people have at least got the problem right: as AI drives the cost of elaborate projects down, we all have more projects in our future. Big, elaborate, faultlessly plausible-looking projects which may or may not have actual value.

Where they are completely wrong is the solution, which is to organize education around practicing using AI to make impressive projects. In a word of AI-enamored dunces this will put you at the head of a very sorry class of ignoramuses. The answer is to build fundamental cognitive and intellectual skils at every stage of a student's development. Project work is surely part of that, but it's just a technique, not a solution.

In a nutshell, the academy is training students to be the next step down the evolutionary scale from code monkeys. More like the pigeons B.F. Skinner trained in WW2 to peck at a screen, in an attempt to create a primitive guided missile without computers. They want to create "main characters"; and they'll probably create a few. There are always a few natural autodidacts in any moderately large group. But what they are set up is to produce a bunch of fragile, economically privileged narcissists trained to cover their lack of education with impressive-looking AI slop.

Have you checked out tanker rates lately? You absolutely save money by having more domestic supply in this environment.

(Crude isn't exactly "cheap" either)

I just tried this for fun with Gemini (hardly the best model, but I wasn't about to spend the money having an agentic framework of high-end models go over it ;) ). It advised:

1) Working with the Iranians at the upcoming UN meeting to try to strike a deal where the US stops its blockage of Iranian oil in exchange for Iran allowing free traffic through Hormuz, without nuclear programme preconditions.

2) Adding pressure on Putin to accept the Ukrainian offer of a mutual energy industry targeting ceasefire

3) Focus freed up US naval forces on protecting convoys through the Bab-el-Mandeb

4) Launching an emergency Jones Act waiver

5) Order the EPA Administrator to issue temporary waivers easing seasonal Reid Vapor Pressure (RVP) gasoline restrictions and granting flexibility on Tier 3 sulfur credit banking.

6) Convene the CEOs of the top domestic refiners into a taskforce run by the Department of Energy to coordinate autumn maintenance schedules to avoid multiple regional coker and hydrocracker units taking turnaround downtime simultaneously.

7) Formally announce that the administration will not conduct large-scale, unrefined crude releases from the SPR. Signal to the industry that physical crude in domestic storage is adequate, shifting regulatory focus to downstream bottlenecks.

8) Reprogram allocated DOE infrastructure funds ($1.4 billion) to expedite cavern repairs at Bryan Mound and Bayou Choctaw.

9) Deploy the Northeast Home Heating Oil Reserve (NEHHOR) strictly on an exchange/loan basis (where refiners borrow diesel barrels now and repay them with interest in refined barrels next spring) to protect national balance sheets while easing spot tightness

10) Issue an Executive Order under the Defense Production Act (DPA) to expedite pipeline compressor stations and pipeline permits connecting the Permian Basin to Gulf Coast refining hubs

11) Direct the Surface Transportation Board to prioritize crude and chemical feedstock movements on Class I railroads.

12) Use USDA Commodity Credit Corporation (CCC) authorities to establish emergency fuel cost-offset credits for agricultural producers and commercial freight carriers until crack spreads retreat below $30/barrel.

13) Announce this unified security-and-energy plan publicly to provide appropriate signals to the market.

The US economy as a whole would lose more from banning exports than it would gain. If one is concerned about "ordinary people", it makes more sense to continue allowing exports, add a windfall tax on oil companies or add export duties, and then rebate the revenue from that across the US population, than to ban exports.

Had the oil industry not been so naive and spent this whole year betting on TACO and/or Iranian surrender, the US could be making even more money right now on this crisis. New shale production from an existing lease can be added in just 3-6 months, yet shale expansion rates didn't increase over baseline from spring through the summer. Refining capacity is harder to add that quickly, but probably could have been boosted several percent, which would still be a quite meaningful added value. It gets harder to improve capacity now because most types of capacity addition involve downtime and absolutely nobody wants to be shut down now while crack spreads are this high.

I'd love to see the US congress pass a bill renaming Trump ;)

That's great, except if you're looking for a part for a specific car, specific year, trim level, engine, throwing other stuff in front of the user won't make them buy those things - it will just annoy them with useless spam.

It wouldn't be if EBay and Amazon provided Boolean search that actually worked. (Like many websites used to even 10 years ago.)

"Meta didn't tell Amazon that Muse would access its store" - and? I didn't tell Amazon I'd be accessing its store either before I started shopping there.

This isn't models going off and browsing Amazon for giggles; they're going there because their user told them to. The user would have otherwise told their web browser to; it just would have taken far more steps.

There's no end to the scale up phase.

So demand is going to keep growing at 10x/year... forever? So Anthropic itself is a paperclip maximizer? That eventually the universe itself will be entirely comprised of Anthropic.

Man... until they harvest my atoms to build their latest zettafab, I want to be invested in THAT!

The same place it's coming from now: subscriptions / API fees. Today, mostly programmers.

then it'd need 80% of those users to be spending $2000 just to break even by 2030

So your model is that their demand suddenly stop growing at 10x per year and switch to ~0x (despite no sign of that), yet they kept building out as if their demand was growing at 10x per year? That's an... unusual hypothesis there.

It's actually the inverse problem. In the past you had few options (if more than one at all!), so comparison is easy. Today you have hundreds or even thousands of options; you're overwhelmed by choice, making selection of the best fit much more work.

If I'm shopping for grow lights (to reuse the last example), first I'm going to want to rule out the wrong form factor, voltage, etc. Then I'll want to rule out anything that's not "approximately" in the right power range. Then I have to dig into what their actual power figures *mean* - is it wall power or it some nominal "LED watts" by some arbitrary metric (some of which metrics are inflated several times over)? Or, it may be fine if they even don't have power listed at all, but if they have light measurements. BUT if they put it in lumens, that's nonsense for plants, one needs photosynthetic flux per day, or at least umol/J and the wall-plug wattage. But it's rare for umol/J to be provided on "non-professional" (read: crazy-expensive) fixtures. Some lights will list photosynthetic flux ratings at different positions under the light, but it would be a headache (and probably give a wrong number) to try to integrate it to the total light output from that. Then you need to get a sense of the efficiency, since most of the cost of running the fixture is actually power. If you have the wall plug power draw AND the daily photosynthetic flux then you can calculate it, but you usually don't have the latter, so you start looking for clues. Lumens *might* give you a hint if you make reasonable adjustments, but it's rough. It's probably a good start to look at what specific LED chips they advertise, if they mention it, as the newer generations are more efficient. If there's heavy sculpting with a lens you can assume it's reducing the flux vs. flat plate/laminated LEDs. Then just looking at the fixture - how well cooled does it appear to be, based on the amount of heat sinks? Better cooled = more efficiency and longer life, but also more weight. UNLESS it's a heat pipe system, which cuts weight down a lot, BUT requires that the panel be in a horizontal orientation. THEN you need to start checking out independent reviews from third party sites...

It takes ages. And I encounter this sort of problem all the time when buying things online. An AI agent that can do all of that fetching and analysis work for me would be such a headache cure.

Let me repeat:

Most of the costs are on scaleup and the infinite race to develop the latest, greatest frontier models.

It's is almost never the case that a company posts a net profit when it's in its growth phase, let alone a virtually-unheard-of 3 1/2 year 10x annualized growth streak. Many can't even manage positive margins. That Anthropic is roughly net-breakeven net income on huge margins, despite growing that quickly and operating in a cutthroat-competitive environment is no small miracle, and essentially guarantees** profitability when said growth streak calms down.

** Under the premise that the market distribution and pricing power between the players remains roughly the same. One always runs the risk that even if investors value the overall market correctly, that each investor assumes that their preferred market player will be dominant in said future (in market share and margins), and thus overvalues them, and the market space gets overinvested in as a whole (the Fallacy of Composition - see for example solar manufacturing 2008-2013, container shipping 2011-2018, China's NEV market 2016-2023, etc). It's quite possible that the frontier labs become less relevant, wherein the better investment buy is in open model servers. But assuming the distribution and pricing power remains the same, any slowdown in expansion goes directly into black on the bottom lines of companies like Anthropic.

Remind me of...