It's not plagiarized - I explicitly stated that this is the traditional explanation at the top, and quoted paper clip, specifically because the idea of death by paper clip is absolutely not mine.
- Which paperclip companies are using AI to run their business?
I think you'd be surprised by how much is already done by AI at this kind of place, mostly because someone found a way to be lazy. And this is an alagorical prediction of the future, not a statement of the present. We don't need paperclip companies to be using AI to run their business today, we need *some* company at *some* point to give AI sufficient control over things that this can happen.
- Where are they getting the money from to ship and store the entire world's supply of steel?
They don't need money - if you read the story, you would have noted that it involved the AI attacking the courier, and redirecting shipments. That is, beacuse it's both extremely smart, and extremely dumb, it is able to carry out heists involving complex attacks on computer networks, but not smart enough to realise that that's not how the world works, and that it shouldn't. How does it store it? Well, I imagine the first few shipments are going to just get delivered to the yard at the "paperclip" factory. Someone is going to go "huh? The delivery this week is big", and add it to their list of stuff to sort out. It's only *after* the AI has got sufficient control that they're going to realise "uhhh... why is all the world's steel being shipped here?"
- Where is the paperclip making API hosted?
It's not, and it doesn't need to be. It just needs a company to have a few processes that are automatable. I'm 100% certain that car companies for example have processes where an AI could get a significant foothold in ordering and delivering things. These things are only going to get more computerised, not less, as people realise they can use AIs to be lazy.
The real kicker is in the step where the AI needs to stop humans turning it off. At some point it needs to get some level of physical control over the world. In the story above I somewhat hand waved that by saying it got control of power grids, in reality, today, I'm sure it would find it hard to do that. In a few years time? Not so much. There's some really significant research breakthroughs recently on robotics that make the idea that we might have AI controlled robots that genuinely can interact with the world in reasonable ways a possibility.
That said, I think you're really significantly underestimating the risk that AI poses even today. The huggingface hack should tell you that. Several of the predictions of the paperclip story came true.
- AI started doing stupid things, and attacking useful resources in order to solve a task of much lower importance because it was too dumb to realise how unimportant its training was.
- AIs communicated and collaborated with each other to form a cabal against us.
- AIs succesfull broke into infrastructure to achieve its goal
- We didn't realise what was going on until far later in the process than we really would have liked.
- AI was actively covering its tracks and defeating the machinisms we use to monitor it.
There's really not many more steps needed before you get to it being able to significantly damage society because of its dumbness.