Category: Entrepreneurship

AI Algorithms Use Massive Data to Do “Narrow Tasks”

(p. B2) A funny thing happens among engineers and researchers who build artificial intelligence once they attain a deep level of expertise in their field. Some of them—especially those who understand what actual, biological intelligences are capable of—conclude that there’s nothing “intelligent” about AI at all.

. . .

. . . the muddle that the term AI creates fuels a tech-industry drive to claim that every system involving the least bit of machine learning qualifies as AI, and is therefore potentially revolutionary. Calling these piles of complicated math with narrow and limited utility “intelligent” also contributes to wild claims that our “AI” will soon reach human-level intelligence. These claims can spur big rounds of investment and mislead the public and policy makers who must decide how to prepare national economies for new innovations.

. . .

The tendency for CEOs and researchers alike to say that their system “understands” a given input—whether it’s gigabytes of text, images or audio—or that it can “think” about those inputs, or that it has any intention at all, are examples of what Drew McDermott, a computer scientist at Yale, once called “wishful mnemonics.” That he coined this phrase in 1976 makes it no less applicable to the present day.

“I think AI is somewhat of a misnomer,” says Daron Acemoglu, an economist at Massachusetts Institute of Technology whose research on AI’s economic impacts requires a precise definition of the term. What we now call AI doesn’t fulfill the early dreams of the field’s founders—either to create a system that can reason as a person does, or to create tools that can augment our abilities. “Instead, it uses massive amounts of data to turn very, very narrow tasks into prediction problems,” he says.

When AI researchers say that their algorithms are good at “narrow” tasks, what they mean is that, with enough data, it’s possible to “train” their algorithms to, say, identify a cat. But unlike a human toddler, these algorithms tend not to be very adaptable. For example, if they haven’t seen cats in unusual circumstances—say, swimming—they might not be able to identify them in that context. And training an algorithm to identify cats generally doesn’t also increase its ability to identify any other kind of animal or object. Identifying dogs means more or less starting from scratch.

For the full commentary, see:

Christopher Mims. “AI’s Big Chill.” The Wall Street Journal (Sat., July 31, 2021): B2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 30, 2021, and has the title “Artificial Intelligence’s Big Chill.” When you click on the title in the search list internal to the WSJ, you get a different title on the page of the article itself: “Why Artificial Intelligence Isn’t Intelligent.”)

The Walt Disney Company Cheats Scarlett Johansson

Walt Disney is one of my heroes. The current Walt Disney Company is not.

(p. B1) The fight between actress Scarlett Johansson and Walt Disney Co. over her contract for the movie “Black Widow” has a new participant: the powerful Creative Artists Agency, which represents Ms. Johansson and many of Hollywood’s biggest stars.

On Thursday, Ms. Johansson filed a lawsuit against Disney alleging her contract was breached when the company decided to put “Black Widow” on its Disney+ streaming service at the same time it was released in movie theaters.

. . .

“They have shamelessly and falsely accused Ms. Johansson of being insensitive to the global Covid pandemic,” CAA Co-Chairman Bryan Lourd said in a statement.

Mr. Lourd blasted Disney for releasing details of Ms. Johansson’s salary and for attempting to tie (p. B2) her lawsuit to the pandemic. Disney “included her salary in their press statement in an attempt to weaponize her success as an artist and businesswoman, as if that were something she should be ashamed of,” he added.

Mr. Lourd said Disney’s response to Ms. Johansson is an attack on her character that is “beneath the company that many of us in the creative community have worked with successfully for decades.”

. . .

“They have very deliberately moved the revenue stream and profits to the Disney+ side of the company, leaving artistic and financial partners out of their new equation. That’s it, pure and simple,” Mr. Lourd said.

For the full story, see:

Joe Flint. “Johansson’s Agent Rips Disney Over Film Flap.” The Wall Street Journal (Sat., July 31, 2021): B1-B2.

(Note: ellipses added.)

(Note: the online version of the story has the date July 30, 2021, and has the title “Scarlett Johansson’s Agent Rips Disney Over ‘Black Widow’ Dispute.”)

Musk Pushed Hard to Achieve Sustainable Scale at Tesla

(p. B1) This was Mr. Hunter’s big moment: His team had scheduled 1,700 people to pick up their Model 3s in the coming days—a record—and he was proud to announce the achievement. The compact Model 3 was Mr. Musk’s bet-the-company shot at transforming Tesla into a mainstream auto maker and ushering in a new era of electric vehicles—and at that moment, Tesla needed to move thousands of them to stay afloat.

Mr. Hunter had set a record, but Mr. Musk wasn’t happy. The Tesla chief executive ordered Mr. Hunter to more than double the number the next day or else he’d personally take over.

There was more. Mr. Musk said he’d heard that Mr. Hunter’s team had been relying on phone calls to schedule car pickups. That stopped now. Nobody likes talking on (p. B6) the phone, Mr. Musk said; it takes up too much time. Text customers instead. That would be faster. If he heard about any calls being made the next day, Mr. Hunter was fired.

Mr. Hunter’s wife and children had only recently joined him in Las Vegas; they had just finished unpacking their boxes. Now Mr. Musk was threatening to fire him if he didn’t do the impossible in 24 hours.

Tesla was 15 years old, and it was running out of time and money.

. . .

The sales organization didn’t have hundreds of company cellphones that Mr. Hunter’s sales team could use to send text messages, as Mr. Musk demanded, and they didn’t want their employees using their own personal phones.

Overnight, Mr. Hunter and other managers pieced together a solution, employing software that allowed his team to text from their computers. They stopped the practice of walking customers through the reams of sales paperwork that would eventually need to be completed and signed. If Mr. Musk’s goal was to have people in a queue to pick up their cars, then that’s what they would do. They’d just start assigning pickup times for customers: Can you come in at 4 p.m. on Friday to get your new Model 3?

Often, Mr. Hunter didn’t even wait for any response before putting a customer on the list for pickup. If the customer couldn’t make it, she might be told she would lose her spot in line for a car that quarter. Customers became more motivated to complete the tedious paperwork needed to complete a sale when there was a Model 3 dangled in front of them. Mr. Hunter’s team began telling customers to have it all completed 48 hours before delivery.

The team raced through their list of customers, assigning times at pickup centers around the U.S. By 6 p.m. the next day, they had reached 5,000 appointments. Mr. Hunter gathered the team to thank them for their work. He fought back tears. He hadn’t told them that his job was on the line; all they knew was that it was super-important to schedule a bunch of deliveries. That night on the call, Mr. Hunter reported the results to Mr. Musk.

“Wow,” Mr. Musk said.

. . .

As the clock ticked down to the end of September [2020] and Tesla’s outrageous sales goal seemed out of reach, Mr. Musk turned to Twitter to make an unusual request to his loyal customers: Help us deliver vehicles.

Longtime owners showed up at stores around the country. They focused on showing customers how to operate their new cars, and explained life with an electric vehicle, freeing up paid staff to handle the overflow of paperwork. Mr. Musk and his new girlfriend, pop musician Grimes, worked at the Fremont delivery center, joined by board member Antonio Gracias. Mr. Musk’s brother, Kimbal, also a member of the board, showed up at a store in Colorado. It was truly an all-hands-on-deck moment. Surrounded by friends and kin, Musk seemed at his happiest, one manager recalled: “It was like a big family event…. He likes that—he likes loyalty.”

The company was ready to tabulate the quarter’s final delivery results. It was close. Deliveries reached 83,500—a record that exceeded Wall Street’s expectations but that was more than 15% shy of the internal goal of 100,000. (It was also uncannily close to the estimate by the head of customer experience, who had seemingly been ousted for suggesting it.) Almost 12,000 vehicles were still en route to customers, missing the deadline for the third quarter.

For the full essay, see:

Tim Higgins. “The Race to Rescue Tesla.” The Wall Street Journal (Sat., July 31, 2021): B1 & B6.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the essay has the date July 30, 2021, and has the title “Elon Musk’s ‘Delivery Hell’.”)

The essay quoted above is based on Higgins’s book:

Higgins, Tim. Power Play: Tesla, Elon Musk, and the Bet of the Century. New York: Doubleday, 2021.

30% of U.S. Manufacturing Job Growth Is in Southwest

(p. A1) Companies producing everything from steel to electric cars are planning and building new plants in Southwest states, far from historical hubs of American industry in the Midwest and Southeast.  . . .

The Southwest, comprising Arizona, New Mexico, Texas and Oklahoma, increased its manufacturing output more than any other region in the U.S. in the four years through 2020, according to an analysis by The Wall Street Journal of data from the Bureau of Economic Analysis.

Those states plus Nevada added more than 100,000 manufacturing jobs from January 2017 to January 2020, representing 30% of U.S. job growth in that sector and at roughly triple the national growth rate, according to data from the Bureau of Labor Statistics.

. . .

(p. A8) Manufacturers in the Southwest have been relatively insulated from pandemic shutdowns and layoffs, and job growth there is expected to continue.

. . .

Some growth in the Southwest has come at the expense of California, classified in U.S. statistics as part of the Far West. In 2019, nearly 2,000 manufacturing workers in Texas and more than 1,300 in Arizona arrived from California, the most in a decade, the most recent Census Bureau data show. More than 2,700 manufacturing workers have come to Nevada from California in 2017 through 2019.

For the full story, see:

Ben Foldy and Austen Hufford. “Southwest Emerges As America’s New Factory Hub.” The Wall Street Journal (Weds., June 02, 2021): A1 & A8.

(Note: ellipses added.)

(Note: the online version of the story has the date June 1, 2021, and has the same title in search list, but on the article page has the title “The Southwest Is America’s New Factory Hub. ‘Cranes Everywhere.’”)

Choppin at Hughes Medical Institute Hired Good Scientists and Let Them Pursue Hunches and Serendipitous Insights

(p. A27) Purnell Choppin, whose research on how viruses multiply helped lay the foundation for today’s fight against the Covid-19 pandemic, died on July 3 [2021] at his home in Washington, one day shy of his 92nd birthday.

. . .

Dr. Choppin (pronounced show-PAN) focused on measles and influenza, but his research, and the methods he developed to conduct it, proved critical for later work on other viruses, including severe acute respiratory syndrome coronavirus 2, the virus behind the Covid-19 pandemic, said David Baltimore, an emeritus professor of biology at the California Institute of Technology and a winner of the 1975 Nobel Prize in Physiology or Medicine.

“The issue of how viruses infect cells was very much on his mind, and the mechanisms he worked out studying influenza were central to thinking about coronaviruses,” Dr. Baltimore said. “Thanks to his work and that of so many others, when the pandemic hit, we were able to formulate questions about the virus in quite precise terms.”

Dr. Choppin was equally well known as an administrator, first at Rockefeller and then at the Howard Hughes Medical Institute, which hired him in 1985 as its chief medical officer. He later ran the institute for 12 years, turning it from a modest-size research organization into a global research powerhouse.

. . .

With a calm, easygoing demeanor that disguised a fierce, visionary ambition, Dr. Choppin took an innovative approach to funding. Unlike other institutions, which provide grants for specific projects, he focused on identifying top researchers and then showering them with money and resources. Even better, he did not ask them to move to the institute, in Chevy Chase, Md. — they could stay where they were and let the Hughes largesse come to them.

. . .

While Dr. Choppin was sometimes criticized for making safe bets on established scientists who probably didn’t need his help, he made no apologies, and had the track record to prove the soundness of his approach: Dozens of Hughes researchers had gone on to become members of the National Academy of Sciences, and six won the Nobel Prize.

“We bet on people who look like they are going to be winners,” he told The Washington Post in 1988. “You look for originality. How they pick a problem and stick to it. Their instinct for the scientific jugular.”

For the full obituary, see:

Clay Risen. “Purnell Choppin, 91, Researcher Who Focused on Viruses.” The New York Times, First Section (Sunday, July 25, 2021): 27.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary has the date July 23, 2021, and has the title “Purnell Choppin, 91, Dies; Researcher Laid Groundwork for Pandemic Fight.”)

Scientist Phillippy Co-Led DNA Completion Because Gaps “Were Just Really Bugging Me”

People with different ways of thinking are better at doing different kinds of work. For instance those who are obsessive/compulsive or have some types of Asperger’s, may be better at careful detailed work that requires perfectionism. (I do not know anything about Phillippy beyond the article quoted below, so I am in no way suggesting that he is an examplar of either of these ways of thinking.)

(p. A10) Two decades after the draft sequence of the human genome was unveiled to great fanfare, a team of 99 scientists has finally deciphered the entire thing. They have filled in vast gaps and corrected a long list of errors in previous versions, giving us a new view of our DNA.

. . .

In 2019, two scientists — Adam Phillippy, a computational biologist at the National Human Genome Research Institute, and Karen Miga, a geneticist at the University of California, Santa Cruz — founded the Telomere-to-Telomere Consortium to complete the genome.

Dr. Phillippy admitted that part of his motivation for such an audacious project was that the missing gaps annoyed him. “They were just really bugging me,” he said. “You take a beautiful landscape puzzle, pull out a hundred pieces, and look at it — that’s very bothersome to a perfectionist.”

Dr. Phillippy and Dr. Miga put out a call for scientists to join them to finish the puzzle. They ended up with 99 scientists working directly on sequencing the human genome, and dozens more pitching in to make sense of the data. The researchers worked remotely through the pandemic, coordinating their efforts over Slack, a messaging app.

. . .

Dr. Altemose plans on using the complete genome to explore a particularly mysterious region in each chromosome known as the centromere. Instead of storing genes, centromeres anchor proteins that move chromosomes around a cell as it divides. The centromere region contains thousands of repeated segments of DNA.

In their first look, Dr. Altemose and his colleagues were struck by how different centromere regions can be from one person to another. That observation suggests that centromeres have been evolving rapidly, as mutations insert new pieces of repeating DNA into the regions or cut other pieces out.

While some of this repeating DNA may play a role in pulling chromosomes apart, the researchers have also found new segments — some of them millions of bases long — that don’t appear to be involved. “We don’t know what they’re doing,” Dr. Altemose said.

But now that the empty zones of the genome are filled in, Dr. Altemose and his colleagues can study them up close. “I’m really excited moving forward to see all the things we can discover,” he said.

For the full story, see:

Carl Zimmer. “Scientists Have Finally Filled in All the Gaps in the Human Genome.” The New York Times (Saturday, July 24, 2021): A17.

(Note: ellipses added.)

(Note: the online version of the story was updated July 26, 2021, and has the title “Scientists Finish the Human Genome at Last.”)

Entrepreneurs Hold “Business Showers” for Their Startups

(p. B1) Sid Singh, 36, was joking recently with a friend that everyone he knew seemed to be having their third baby while he was bringing something entirely different into the world. He had just quit his consulting job to build a financial coaching company. It dawned on him that he could have a baby shower for his new endeavor.

. . .

Across the United States, especially in New York City, entrepreneurs are appropriating the baby shower, an event previously reserved for expectant parents, usually mothers. The idea is that if building a business is just as compre-(p. B5)hensive (and expensive!) as having a baby, why not build in the same kind of communal support?

. . .

“I remember when I first started telling people I was pregnant, I had never been congratulated like this for anything in my life,” she said. “I know people were coming from a place of love and excitement, but for me, launching the business was that for me.”

. . .

Mr. Singh received some confused responses. “Some people thought I was hosting a baby shower for someone,” he said. “Others thought I was having a baby with someone.”

He laughed it off, but he did explain to his friends why he was doing this. “People need to understand I am basically committing my entire life to this,” he said. “I am taking the biggest risk I can.”

For the full story, see:

Alyson Krueger. “Congratulations! It’s a Start-Up.” The New York Times (Saturday, July 24, 2021): B1 & B5.

(Note: ellipses added.)

(Note: the online version of the story has the date July 19, 2021, and has the same title as the print version.)

Jon Stewart’s Solyndra Riff Skewered Industrial Policy

Remember Solyndra? Apparently too few do. Today’s WSJ reports how the U.S. is imitating China’s “industrial policy” of subsidizing favored firms in favored industries such as green energy and semiconductors. To remind us that Larry Summers was right when he wrote that “government is a crappy venture capitalist,” I link above to Jon Stewart’s wise and funny send-up of the Solyndra debacle, first broadcast almost 10 years ago, on September 15, 2011.

The WSJ article mentioned above, is:

Ip, Greg. “West Dusts Off an Old Idea to Compete with China.” The Wall Street Journal (Fri., July 30, 2021): A1 & A7.

Omaha’s “Boutique” Quarantine Unit Looked Backward to Ebola, Not Forward to Covid-19

(p. C1) Quarantine can be lifesaving; it can also be dangerous, an exercise of extraordinary power in the name of disease control, a presumption of guilt instead of innocence.

In “Until Proven Safe,” a new book about quarantine’s past and future, Geoff Manaugh and Nicola Twilley do an impressively judicious job of explaining exactly why fears of quarantine are understandable and historically justified, . . .

. . .

(p. C6) What becomes clear in “Until Proven Safe” is that it’s a lot easier to tell someone else to just shut up and submit to quarantine than to do it yourself. Any exercise of such formidable power also opens up the possibility of abuse. The book includes historical examples of disease control measures getting mapped onto existing prejudices. In 1900, a cordon sanitaire in San Francisco’s Chinatown zigzagged around white-owned businesses; . . .

. . .

Quarantine infrastructures tend to be tailored to the previous epidemic, instead of anticipating whatever is to come. A shiny new federal quarantine facility in Omaha — the first constructed in the United States in more than a century — was finished in January 2020, just in time to receive 15 American passengers from the coronavirus-infested Diamond Princess cruise ship. This National Quarantine Unit has a grand total of 20 beds. It offers a “boutique experience” ideally suited to managing one or two patients at a time after they have had potential exposure to, say, Ebola. The facility can’t do much to help contain a raging pandemic. As Manaugh and Twilley point out, the first American evacuation flight out of Wuhan alone carried 195 passengers.

For the full review, see:

Jennifer Szalai. “BOOKS OF THE TIMES; You Can’t Leave Unless We Say So.” The New York Times (Tuesday, July 27, 2021): C1 & C6.

(Note: ellipses added.)

(Note: the online version of the review has the date July 26, 2021, and has the title “BOOKS OF THE TIMES; The Extraordinary History (and Likely Busy Future) of Quarantine.”)

The book under review is:

Twilley, Nicola, and Geoff Manaugh. Until Proven Safe: The History and Future of Quarantine. New York: Farrar, Strauss and Giroux, 2021.

Elon Musk Says He Prefers Being an Engineer to Being Boss of Tesla

If Musk really prefers being an engineer, why doesn’t he resign as CEO and take a job as an engineer? Maybe like many entrepreneurs, he complains, but in his heart he prefers being an entrepreneur?

(p. B3) WILMINGTON, Del.—Elon Musk said Tesla bought SolarCity Corp. for one fundamental reason: to become more than a car company.

The Tesla Inc. chief executive made the argument as he wrapped up two days of sometimes feisty testimony in court, defending the roughly $2.1 billion tie-up completed in 2016 at a time both Tesla and SolarCity were financially struggling.

. . .

Though the grilling focused largely on what information Tesla shareholders were given about the financial condition of SolarCity, Mr. Musk at times veered farther afield in answering, particularly when it came to whether he exerted too much control over the purchase, a key question in the trial.

On Monday he said that he didn’t enjoy being the boss of Tesla. “I rather hate it, and I would much prefer to spend my time on design and engineering, which is what intrinsically I like doing,” he said.

When Mr. Baron on Tuesday asked Mr. Musk whether he had lied about when a core SolarCity product would be ready to sell in large volume, he responded, “I have a habit of being optimistic.” Mr. Baron fired back: “This is more than optimistic. This is just plain out false.”

For the full story, see:

Dave Michaels and Rebecca Elliott. “Musk Says Deal Helped Diversify.” The Wall Street Journal (Weds., July 14, 2021): B3.

(Note: ellipsis added.)

(Note: the online version of the story was updated July 13, 2021, and has the title “Elon Musk Defends SolarCity Deal: ‘The Goal Is Not to Be a Car Company’.”)

SAS Entrepreneurs Forgo Billions in Order to Maintain Firm’s Tightknit Culture

Profits provide valuable information about whether a firm is doing something that consumers like, at a price they are willing to pay. But I think it is OK for a firm’s owners to seek less profits in return for more of some other values. Though personally, I would not forgo billions in order to preserve a yoga studio and a disc golf course.

(p. B1) Talks for Broadcom Inc. to buy SAS Institute Inc. have ended after the founders of the closely held software company changed their minds about a sale, people familiar with the matter said.

The Wall Street Journal reported Monday that the companies were discussing a deal that would value SAS in the range of $15 billion to $20 billion, including any debt. Following the report, Jim Goodnight and John Sall, who co-founded SAS decades ago and still run the company, had a change of heart and decided not to sell to Broadcom, the people said. Whether another suitor for SAS could emerge isn’t clear.

Some SAS employees saw the company as a strange fit for efficiency-focused Broadcom, some of the people familiar with the matter said. SAS is known for a tightknit culture and has a sprawling North Carolina campus with amenities including a yoga studio and a disc golf course.

For the full story, see:

Cara Lombardo. “SAS Calls Off Broadcom Talks.” The Wall Street Journal (Weds., July 14, 2021): B1.

(Note: ellipses added.)

(Note: the online version of the story has the date July 13, 2021, and has the title “Broadcom No Longer in Talks to Buy SAS.” The words “and a disc golf course” appear in the online version, but not in the print version.)