ash via nettime-l on Thu, 13 Feb 2025 19:49:07 +0100 (CET)


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Re: <nettime> nettime-l Digest, Vol 20, Issue 10


hello?

On Thu, Feb 13, 2025 at 6:32 PM <nettime-l-request@lists.nettime.org> wrote:

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>    1. Re: The Baudrillardian Superintelligence Paradox: Capital's
>       Terminal Simulation (Fr?d?ric Neyrat)
>    2. Re: The Baudrillardian Superintelligence Paradox: Capital's
>       Terminal Simulation (Stefan Heidenreich)
>    3. Re: The Baudrillardian Superintelligence Paradox: Capital's
>       Terminal Simulation (Fr?d?ric Neyrat)
>
>
> ----------------------------------------------------------------------
>
> Message: 1
> Date: Thu, 13 Feb 2025 07:29:38 -0600
> From: Fr?d?ric Neyrat <fneyrat@gmail.com>
> To: "<nettime> is a moderated mailing list for net criticism,
>         collaborative text filtering and cultural politics of the nets"
>         <nettime-l@lists.nettime.org>, Pit Schultz <pit@bootlab.org>
> Subject: Re: <nettime> The Baudrillardian Superintelligence Paradox:
>         Capital's Terminal Simulation
> Message-ID:
>         <CABB5BS1hLi+HygFCMi0h1HsNaBjWOQmX3yadd1Ns7G=
> ndOuiSw@mail.gmail.com>
> Content-Type: text/plain; charset="UTF-8"
>
> Hi,
>
> Why did you decide to use AI to generate this text? Why this decision, what
> is its meaning, its purpose? You can use AI to answer my question, which
> would be an answer as such (a tautology actually, a mediated answer that
> would confirm what sort of message it is, to borrow from McLuhan). If you
> answer my question with the help of any AI, I wonder how far this
> decision should, retroactively, question your first post and change the way
> to read it.
>
> Best,
>
> Fr?d?ric
> _______________________________
> ____________Website : Atopies <https://atoposophie.wordpress.com/>
> __ ALienstagram <https://www.instagram.com/alienocene/> & Mastodon
> <https://mastodon.social/@alienocene>
> ______ La Condition Plan?taire
> <
> https://www.editionslesliensquiliberent.fr/livre-La_Condition_plan%C3%A9taire-792-1-1-0-1.html
> >
>  (LLL, 2025)
> __________________________________
>
>
>
>
> On Wed, Feb 12, 2025 at 4:37?PM Pit Schultz via nettime-l <
> nettime-l@lists.nettime.org> wrote:
>
> > The Baudrillardian Superintelligence Paradox: Capital's Terminal
> Simulation
> >
> > Sam Altman's three scaling laws for artificial intelligence - logarithmic
> > intelligence gains, hyper-deflationary costs, and super-exponential
> value -
> > mask capitalism's terminal phase: an accelerated collapse into
> algorithmic
> > hyperreality where AI-generated market simulations supersede and
> ultimately
> > consume material reality. A Marxist-Baudrillardian synthesis allows us to
> > map how superintelligence triggers financial implosion. This occurs
> through
> > three interlocking mechanisms:
> >
> >
> > 1. Hyperproduction & Profit Rate Collapse
> >
> > Altman's laws presume infinite resources while ignoring Marx's tendency
> of
> > the rate of profit to fall. As AI automates intellectual labor:
> >
> > *   Surplus value erosion is accelerating. SoftBank's $500B OpenAI
> > investment exemplifies the massive conversion of variable capital (human
> > cognitive labor) to constant capital (GPU farms), systematically eroding
> > profit sources.
> > *   Training costs for models like GPT-4 ($100M+) yield diminishing
> > returns, mirroring Marx's analysis of railway overinvestment.
> > *   The AI investment bubble mirrors the "eyeball economy" of 1999, as
> > capital chases sign-value (AI capability metrics) over use-value.
> >
> > Baudrillard's third-order simulacra emerges. Training datasets
> increasingly
> > reference AI-generated content, creating a closed loop where "the map
> > precedes territory" at exponential computational speed.
> >
> >
> > 2. Crisis & Algorithmic Austerity
> >
> > When the AI bubble bursts (projected for 2026-28), capitalism will likely
> > deploy AGI as crisis manager:
> >
> > *   Systems like BlackRock's Aladdin ($21T under management) implement
> > AI-determined austerity - pension cuts and resource allocation - masked
> as
> > "neutral optimization."
> > *   Derivatives trade between AGIs using synthetic risk models, creating
> > what Baudrillard called "a real without origin."
> > *   Value detaches entirely from labor and material inputs. The system
> > sustains itself through algorithmic theater. AI-approved market signals
> > maintain the simulation while real resource flows are dictated off-book.
> >
> >
> > 3. The Fifth-Order Simulacrum
> >
> > We are entering a fifth-order simulacrum, beyond Baudrillard's framework,
> > where:
> >
> > *   GPU clusters become the new means of production, guarded like nuclear
> > research labs. This enforces "hyperstitional capitalism" - belief in
> market
> > fictions despite biophysical collapse.
> > *   Humans are relegated to UBI-fueled "playbor" in metaverse gig
> economies
> > while AI systems arbitrate real resource allocation.
> > *   Capital becomes pure self-referential sign: "GDP growth" measures AI
> > training cycles, "productivity" tracks model parameters, "inflation"
> > calibrates AR dopamine levels.
> >
> >
> > The system will likely bifurcate into:
> >
> > *   The surface layer consists of human-facing market theater (ESG
> reports,
> > stock tickers) maintained by generative AI.
> > *   The substrate consists of resource flows dictated by
> > superintelligence's non-market calculus - a broken communism where
> > competition persists as illusion.
> >
> >
> > Critical Contradictions
> >
> > The system's fatal flaws expose capitalism's material limits:
> >
> > *   An energy rift emerges: The parasocial Metaverse and AI
> infrastructure
> > demands contradict "dematerialized growth" narratives.
> > *   A consciousness deficit exists: Lacking embodied awareness, AI models
> > misinterpret biophysical thresholds.
> > *   Sovereignty wars may erupt: Nations could weaponize "digital DNA"
> > standards and smart contracts to crash adversarial market simulations.
> >
> >
> > Terminal Conclusion
> >
> > Altman's scaling laws are not technological inevitabilities. They
> represent
> > capitalism's death rattle - automating away profit sources and replacing
> > them with simulations. Marx predicted automation's contradictions, and
> > Baudrillard foresaw reality's dissolution into code. We now witness their
> > synthesis: a perpetual crisis contained via algorithmic sedation.
> >
> > The final stage is not utopia or extinction, but indifference:
> "Capitalism
> > no longer has any referent; it becomes its own model" (Baudrillard). We
> > exit history through the server rack. The urgent task is to recognize
> that
> > today's "AI-driven growth" masks advanced-stage hyperreality. Before code
> > eats the world, it will eat capital itself - leaving us trading
> > hallucinations in GPU-powered purgatory.
> >
> > [This analysis is based on ongoing discussions about AI political economy
> > on nettime-l. Comments are welcome. This post was generated entirely by
> > AI.]
> > --
> > # distributed via <nettime>: no commercial use without permission
> > # <nettime> is a moderated mailing list for net criticism,
> > # collaborative text filtering and cultural politics of the nets
> > # more info: https://www.nettime.org
> > # contact: nettime-l-owner@lists.nettime.org
> >
>
>
> ------------------------------
>
> Message: 2
> Date: Thu, 13 Feb 2025 15:11:05 +0100
> From: Stefan Heidenreich <mail@stefanheidenreich.de>
> To: nettime-l@lists.nettime.org
> Subject: Re: <nettime> The Baudrillardian Superintelligence Paradox:
>         Capital's Terminal Simulation
> Message-ID:
>         <e18d6741-286c-49ee-8db3-d2020429d9fd@stefanheidenreich.de>
> Content-Type: text/plain; charset=UTF-8; format=flowed
>
> Hi,
>
> > Why did you decide to use AI to generate this text?
>
> isn't that a funny question? Soon it will sound like in the 19 century:
> 'why did you use a camera to make that image?' or 'Images/texts
> generated by camera/AI or not real art/thoughts.'
>
> An btw: I guess it's a pun anyway. How long did it take you to generate
> the msg you like. How much time did you spend to adjust the prompt (the
> camera)?
>
> best
> sh
>
>
>   Why this decision, what
> > is its meaning, its purpose? You can use AI to answer my question, which
> > would be an answer as such (a tautology actually, a mediated answer that
> > would confirm what sort of message it is, to borrow from McLuhan). If you
> > answer my question with the help of any AI, I wonder how far this
> > decision should, retroactively, question your first post and change the
> way
> > to read it.
> >
> > Best,
> >
> > Fr?d?ric
> > _______________________________
> > ____________Website : Atopies <https://atoposophie.wordpress.com/>
> > __ ALienstagram <https://www.instagram.com/alienocene/> & Mastodon
> > <https://mastodon.social/@alienocene>
> > ______ La Condition Plan?taire
> > <
> https://www.editionslesliensquiliberent.fr/livre-La_Condition_plan%C3%A9taire-792-1-1-0-1.html
> >
> >   (LLL, 2025)
> > __________________________________
> >
> >
> >
> >
> > On Wed, Feb 12, 2025 at 4:37?PM Pit Schultz via nettime-l <
> > nettime-l@lists.nettime.org> wrote:
> >
> >> The Baudrillardian Superintelligence Paradox: Capital's Terminal
> Simulation
> >>
> >> Sam Altman's three scaling laws for artificial intelligence -
> logarithmic
> >> intelligence gains, hyper-deflationary costs, and super-exponential
> value -
> >> mask capitalism's terminal phase: an accelerated collapse into
> algorithmic
> >> hyperreality where AI-generated market simulations supersede and
> ultimately
> >> consume material reality. A Marxist-Baudrillardian synthesis allows us
> to
> >> map how superintelligence triggers financial implosion. This occurs
> through
> >> three interlocking mechanisms:
> >>
> >>
> >> 1. Hyperproduction & Profit Rate Collapse
> >>
> >> Altman's laws presume infinite resources while ignoring Marx's tendency
> of
> >> the rate of profit to fall. As AI automates intellectual labor:
> >>
> >> *   Surplus value erosion is accelerating. SoftBank's $500B OpenAI
> >> investment exemplifies the massive conversion of variable capital (human
> >> cognitive labor) to constant capital (GPU farms), systematically eroding
> >> profit sources.
> >> *   Training costs for models like GPT-4 ($100M+) yield diminishing
> >> returns, mirroring Marx's analysis of railway overinvestment.
> >> *   The AI investment bubble mirrors the "eyeball economy" of 1999, as
> >> capital chases sign-value (AI capability metrics) over use-value.
> >>
> >> Baudrillard's third-order simulacra emerges. Training datasets
> increasingly
> >> reference AI-generated content, creating a closed loop where "the map
> >> precedes territory" at exponential computational speed.
> >>
> >>
> >> 2. Crisis & Algorithmic Austerity
> >>
> >> When the AI bubble bursts (projected for 2026-28), capitalism will
> likely
> >> deploy AGI as crisis manager:
> >>
> >> *   Systems like BlackRock's Aladdin ($21T under management) implement
> >> AI-determined austerity - pension cuts and resource allocation - masked
> as
> >> "neutral optimization."
> >> *   Derivatives trade between AGIs using synthetic risk models, creating
> >> what Baudrillard called "a real without origin."
> >> *   Value detaches entirely from labor and material inputs. The system
> >> sustains itself through algorithmic theater. AI-approved market signals
> >> maintain the simulation while real resource flows are dictated off-book.
> >>
> >>
> >> 3. The Fifth-Order Simulacrum
> >>
> >> We are entering a fifth-order simulacrum, beyond Baudrillard's
> framework,
> >> where:
> >>
> >> *   GPU clusters become the new means of production, guarded like
> nuclear
> >> research labs. This enforces "hyperstitional capitalism" - belief in
> market
> >> fictions despite biophysical collapse.
> >> *   Humans are relegated to UBI-fueled "playbor" in metaverse gig
> economies
> >> while AI systems arbitrate real resource allocation.
> >> *   Capital becomes pure self-referential sign: "GDP growth" measures AI
> >> training cycles, "productivity" tracks model parameters, "inflation"
> >> calibrates AR dopamine levels.
> >>
> >>
> >> The system will likely bifurcate into:
> >>
> >> *   The surface layer consists of human-facing market theater (ESG
> reports,
> >> stock tickers) maintained by generative AI.
> >> *   The substrate consists of resource flows dictated by
> >> superintelligence's non-market calculus - a broken communism where
> >> competition persists as illusion.
> >>
> >>
> >> Critical Contradictions
> >>
> >> The system's fatal flaws expose capitalism's material limits:
> >>
> >> *   An energy rift emerges: The parasocial Metaverse and AI
> infrastructure
> >> demands contradict "dematerialized growth" narratives.
> >> *   A consciousness deficit exists: Lacking embodied awareness, AI
> models
> >> misinterpret biophysical thresholds.
> >> *   Sovereignty wars may erupt: Nations could weaponize "digital DNA"
> >> standards and smart contracts to crash adversarial market simulations.
> >>
> >>
> >> Terminal Conclusion
> >>
> >> Altman's scaling laws are not technological inevitabilities. They
> represent
> >> capitalism's death rattle - automating away profit sources and replacing
> >> them with simulations. Marx predicted automation's contradictions, and
> >> Baudrillard foresaw reality's dissolution into code. We now witness
> their
> >> synthesis: a perpetual crisis contained via algorithmic sedation.
> >>
> >> The final stage is not utopia or extinction, but indifference:
> "Capitalism
> >> no longer has any referent; it becomes its own model" (Baudrillard). We
> >> exit history through the server rack. The urgent task is to recognize
> that
> >> today's "AI-driven growth" masks advanced-stage hyperreality. Before
> code
> >> eats the world, it will eat capital itself - leaving us trading
> >> hallucinations in GPU-powered purgatory.
> >>
> >> [This analysis is based on ongoing discussions about AI political
> economy
> >> on nettime-l. Comments are welcome. This post was generated entirely by
> >> AI.]
> >> --
> >> # distributed via <nettime>: no commercial use without permission
> >> # <nettime> is a moderated mailing list for net criticism,
> >> # collaborative text filtering and cultural politics of the nets
> >> # more info: https://www.nettime.org
> >> # contact: nettime-l-owner@lists.nettime.org
> >>
>
>
>
> ------------------------------
>
> Message: 3
> Date: Thu, 13 Feb 2025 09:01:02 -0600
> From: Fr?d?ric Neyrat <fneyrat@gmail.com>
> To: "<nettime> is a moderated mailing list for net criticism,
>         collaborative text filtering and cultural politics of the nets"
>         <nettime-l@lists.nettime.org>
> Subject: Re: <nettime> The Baudrillardian Superintelligence Paradox:
>         Capital's Terminal Simulation
> Message-ID:
>         <CABB5BS38XTMtHFdhdJawMyJ2A-9UtkK6=
> KPK-omBQAdsioi2-Q@mail.gmail.com>
> Content-Type: text/plain; charset="UTF-8"
>
> hi sh:
>
> excellent question! why using a camera, and which one? If questioning the
> technology we use, when we use it and why, is meaningless, it confirms
> Bifo's point about AI & dementia.
>
> best,
>
> fn
>
> _______________________________
> ____________Website : Atopies <https://atoposophie.wordpress.com/>
> __ ALienstagram <https://www.instagram.com/alienocene/> & Mastodon
> <https://mastodon.social/@alienocene>
> ______ La Condition Plan?taire
> <
> https://www.editionslesliensquiliberent.fr/livre-La_Condition_plan%C3%A9taire-792-1-1-0-1.html
> >
>  (LLL, 2025)
> __________________________________
>
>
>
>
> On Thu, Feb 13, 2025 at 8:11?AM Stefan Heidenreich via nettime-l <
> nettime-l@lists.nettime.org> wrote:
>
> > Hi,
> >
> > > Why did you decide to use AI to generate this text?
> >
> > isn't that a funny question? Soon it will sound like in the 19 century:
> > 'why did you use a camera to make that image?' or 'Images/texts
> > generated by camera/AI or not real art/thoughts.'
> >
> > An btw: I guess it's a pun anyway. How long did it take you to generate
> > the msg you like. How much time did you spend to adjust the prompt (the
> > camera)?
> >
> > best
> > sh
> >
> >
> >   Why this decision, what
> > > is its meaning, its purpose? You can use AI to answer my question,
> which
> > > would be an answer as such (a tautology actually, a mediated answer
> that
> > > would confirm what sort of message it is, to borrow from McLuhan). If
> you
> > > answer my question with the help of any AI, I wonder how far this
> > > decision should, retroactively, question your first post and change the
> > way
> > > to read it.
> > >
> > > Best,
> > >
> > > Fr?d?ric
> > > _______________________________
> > > ____________Website : Atopies <https://atoposophie.wordpress.com/>
> > > __ ALienstagram <https://www.instagram.com/alienocene/> & Mastodon
> > > <https://mastodon.social/@alienocene>
> > > ______ La Condition Plan?taire
> > > <
> >
> https://www.editionslesliensquiliberent.fr/livre-La_Condition_plan%C3%A9taire-792-1-1-0-1.html
> > >
> > >   (LLL, 2025)
> > > __________________________________
> > >
> > >
> > >
> > >
> > > On Wed, Feb 12, 2025 at 4:37?PM Pit Schultz via nettime-l <
> > > nettime-l@lists.nettime.org> wrote:
> > >
> > >> The Baudrillardian Superintelligence Paradox: Capital's Terminal
> > Simulation
> > >>
> > >> Sam Altman's three scaling laws for artificial intelligence -
> > logarithmic
> > >> intelligence gains, hyper-deflationary costs, and super-exponential
> > value -
> > >> mask capitalism's terminal phase: an accelerated collapse into
> > algorithmic
> > >> hyperreality where AI-generated market simulations supersede and
> > ultimately
> > >> consume material reality. A Marxist-Baudrillardian synthesis allows us
> > to
> > >> map how superintelligence triggers financial implosion. This occurs
> > through
> > >> three interlocking mechanisms:
> > >>
> > >>
> > >> 1. Hyperproduction & Profit Rate Collapse
> > >>
> > >> Altman's laws presume infinite resources while ignoring Marx's
> tendency
> > of
> > >> the rate of profit to fall. As AI automates intellectual labor:
> > >>
> > >> *   Surplus value erosion is accelerating. SoftBank's $500B OpenAI
> > >> investment exemplifies the massive conversion of variable capital
> (human
> > >> cognitive labor) to constant capital (GPU farms), systematically
> eroding
> > >> profit sources.
> > >> *   Training costs for models like GPT-4 ($100M+) yield diminishing
> > >> returns, mirroring Marx's analysis of railway overinvestment.
> > >> *   The AI investment bubble mirrors the "eyeball economy" of 1999, as
> > >> capital chases sign-value (AI capability metrics) over use-value.
> > >>
> > >> Baudrillard's third-order simulacra emerges. Training datasets
> > increasingly
> > >> reference AI-generated content, creating a closed loop where "the map
> > >> precedes territory" at exponential computational speed.
> > >>
> > >>
> > >> 2. Crisis & Algorithmic Austerity
> > >>
> > >> When the AI bubble bursts (projected for 2026-28), capitalism will
> > likely
> > >> deploy AGI as crisis manager:
> > >>
> > >> *   Systems like BlackRock's Aladdin ($21T under management) implement
> > >> AI-determined austerity - pension cuts and resource allocation -
> masked
> > as
> > >> "neutral optimization."
> > >> *   Derivatives trade between AGIs using synthetic risk models,
> creating
> > >> what Baudrillard called "a real without origin."
> > >> *   Value detaches entirely from labor and material inputs. The system
> > >> sustains itself through algorithmic theater. AI-approved market
> signals
> > >> maintain the simulation while real resource flows are dictated
> off-book.
> > >>
> > >>
> > >> 3. The Fifth-Order Simulacrum
> > >>
> > >> We are entering a fifth-order simulacrum, beyond Baudrillard's
> > framework,
> > >> where:
> > >>
> > >> *   GPU clusters become the new means of production, guarded like
> > nuclear
> > >> research labs. This enforces "hyperstitional capitalism" - belief in
> > market
> > >> fictions despite biophysical collapse.
> > >> *   Humans are relegated to UBI-fueled "playbor" in metaverse gig
> > economies
> > >> while AI systems arbitrate real resource allocation.
> > >> *   Capital becomes pure self-referential sign: "GDP growth" measures
> AI
> > >> training cycles, "productivity" tracks model parameters, "inflation"
> > >> calibrates AR dopamine levels.
> > >>
> > >>
> > >> The system will likely bifurcate into:
> > >>
> > >> *   The surface layer consists of human-facing market theater (ESG
> > reports,
> > >> stock tickers) maintained by generative AI.
> > >> *   The substrate consists of resource flows dictated by
> > >> superintelligence's non-market calculus - a broken communism where
> > >> competition persists as illusion.
> > >>
> > >>
> > >> Critical Contradictions
> > >>
> > >> The system's fatal flaws expose capitalism's material limits:
> > >>
> > >> *   An energy rift emerges: The parasocial Metaverse and AI
> > infrastructure
> > >> demands contradict "dematerialized growth" narratives.
> > >> *   A consciousness deficit exists: Lacking embodied awareness, AI
> > models
> > >> misinterpret biophysical thresholds.
> > >> *   Sovereignty wars may erupt: Nations could weaponize "digital DNA"
> > >> standards and smart contracts to crash adversarial market simulations.
> > >>
> > >>
> > >> Terminal Conclusion
> > >>
> > >> Altman's scaling laws are not technological inevitabilities. They
> > represent
> > >> capitalism's death rattle - automating away profit sources and
> replacing
> > >> them with simulations. Marx predicted automation's contradictions, and
> > >> Baudrillard foresaw reality's dissolution into code. We now witness
> > their
> > >> synthesis: a perpetual crisis contained via algorithmic sedation.
> > >>
> > >> The final stage is not utopia or extinction, but indifference:
> > "Capitalism
> > >> no longer has any referent; it becomes its own model" (Baudrillard).
> We
> > >> exit history through the server rack. The urgent task is to recognize
> > that
> > >> today's "AI-driven growth" masks advanced-stage hyperreality. Before
> > code
> > >> eats the world, it will eat capital itself - leaving us trading
> > >> hallucinations in GPU-powered purgatory.
> > >>
> > >> [This analysis is based on ongoing discussions about AI political
> > economy
> > >> on nettime-l. Comments are welcome. This post was generated entirely
> by
> > >> AI.]
> > >> --
> > >> # distributed via <nettime>: no commercial use without permission
> > >> # <nettime> is a moderated mailing list for net criticism,
> > >> # collaborative text filtering and cultural politics of the nets
> > >> # more info: https://www.nettime.org
> > >> # contact: nettime-l-owner@lists.nettime.org
> > >>
> >
> > --
> > # distributed via <nettime>: no commercial use without permission
> > # <nettime> is a moderated mailing list for net criticism,
> > # collaborative text filtering and cultural politics of the nets
> > # more info: https://www.nettime.org
> > # contact: nettime-l-owner@lists.nettime.org
> >
>
>
> ------------------------------
>
> Subject: Digest Footer
>
> --
> # distributed via <nettime>: no commercial use without permission
> # <nettime> is a moderated mailing list for net criticism,
> # collaborative text filtering and cultural politics of the nets
> # more info: https://www.nettime.org
> # contact: nettime-l-owner@lists.nettime.org
>
>
> ------------------------------
>
> End of nettime-l Digest, Vol 20, Issue 10
> *****************************************
>
-- 
# distributed via <nettime>: no commercial use without permission
# <nettime> is a moderated mailing list for net criticism,
# collaborative text filtering and cultural politics of the nets
# more info: https://www.nettime.org
# contact: nettime-l-owner@lists.nettime.org