This Machine Kills

We discuss the clear and present danger throughout the global financial system, with crises happening in the banking sector that have not been seen since the 2008 crash. However, these are not sudden and surprising explosions—at least not to industry and regulatory insiders—they are instead the slow motion ticking of bombs that are under review. We also get further into the failures of the VC industry and the fact that reforms—even severe ones that cut deep—are not enough to fix an industry, let alone bring it to heel, which is structurally incapable of serving the social good.

Some stuff we reference

••• How Venture Capital Can Avoid the Next Silicon Valley Bank Fiasco | Del Johnson https://www.wired.com/story/to-save-the-innovation-economy-break-big-venture-capital/

••• Enmeshment in Venture https://www.laconiacapitalgroup.com/blog/enmeshment

••• A Death in the Valley: What the End of SVB Reveals About VC Class Solidarity | Doug Henwood https://www.thenation.com/article/economy/svb-bank-interest-rates/

••• Fed Blocked Mention of Regulatory Flaws in Silicon Valley Bank Rescue https://www.nytimes.com/2023/03/16/business/fed-regulation-svb.html

••• Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems https://www.nytimes.com/2023/03/19/business/economy/fed-silicon-valley-bank.html

••• UBS Agrees to Buy Credit Suisse for More Than $3 Billion https://www.wsj.com/articles/ubs-offers-1-billion-to-take-over-credit-suisse-bfac51fa

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We've unlocked this episode for the free feed.

It's been a long time since we’ve seen a good old fashioned bank run lead to the collapse of a venerable financial institution, but leave it to Silicon Valley to rediscover something old and call it new again. We are joined by Brian Merchant — LA Times tech columnist and author of Blood in the Machine — for a post-mortem on Silicon Valley Bank, breakdown its events and effects, and hold Ed to account for his incitements to violence against the most marginalized and traumatized people of them all: venture capitalists.

••• Brian’s column: https://www.latimes.com/business/technology/story/2023-03-12/column-silicon-valley-bank-is-broken-because-silicon-valley-is-broken

••• Brian’s book: https://www.littlebrown.com/titles/brian-merchant/blood-in-the-machine/9780316487740/

••• Brian’s twitter: https://twitter.com/bcmerchant

Some stuff we reference

••• The Incredible Tantrum Venture Capitalists Threw Over Silicon Valley Bank | Ed Ongweso Jr. https://slate.com/technology/2023/03/silicon-valley-bank-rescue-venture-capital-calacanis-sacks-ackman-tantrum.html

••• Silicon Valley Bank profit squeeze in tech downturn attracts short sellers https://www.ft.com/content/0387e331-61b4-4848-9e50-04775b4c3fa7

••• Startup Bank Had a Startup Bank Run https://www.bloomberg.com/opinion/articles/2023-03-10/startup-bank-had-a-startup-bank-run

••• How Bad Was the Silicon Valley Bank Bailout? https://www.nytimes.com/2023/03/14/opinion/silicon-valley-bank-bailout.html

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

Been a long time since we’ve seen a good old fashioned bank run lead to the collapse of a venerable financial institution, but leave it to Silicon Valley to rediscover something old and call it new again. We are joined by Brian Merchant—LA Times tech columnist and author of Blood in the Machine—for a post-mortem on Silicon Valley Bank, breakdown its events and effects, and hold Ed to account for his incitements to violence against the most marginalized and traumatized people of them all: venture capitalists.

••• Brian’s column: https://www.latimes.com/business/technology/story/2023-03-12/column-silicon-valley-bank-is-broken-because-silicon-valley-is-broken

••• Brian’s book: https://www.littlebrown.com/titles/brian-merchant/blood-in-the-machine/9780316487740/

••• Brian’s twitter: https://twitter.com/bcmerchant

Some stuff we reference

••• The Incredible Tantrum Venture Capitalists Threw Over Silicon Valley Bank | Ed Ongweso Jr. https://slate.com/technology/2023/03/silicon-valley-bank-rescue-venture-capital-calacanis-sacks-ackman-tantrum.html

••• Silicon Valley Bank profit squeeze in tech downturn attracts short sellers https://www.ft.com/content/0387e331-61b4-4848-9e50-04775b4c3fa7

••• Startup Bank Had a Startup Bank Run https://www.bloomberg.com/opinion/articles/2023-03-10/startup-bank-had-a-startup-bank-run

••• How Bad Was the Silicon Valley Bank Bailout? https://www.nytimes.com/2023/03/14/opinion/silicon-valley-bank-bailout.html

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We are joined by Nick Sever – author of the new book Computing Taste: Algorithms and the Makers of Music Recommendation – to discuss his excellent ethnographic research on the creation of algorithmic recommendation systems. Nick spent a long time getting to really know the people who make these systems and his book offers so much original, granular detail about the various practices, theories, and relationships that influence the engineers behind these algorithms. Nick’s book also contains extremely interesting and surprising applications of classic anthropological theory to contemporary algorithmic technology.

••• Nick’s book – Computing Taste: Algorithms and the Makers of Music Recommendation https://press.uchicago.edu/ucp/books/book/chicago/C/bo183892298.html

••• Nick’s twitter – https://twitter.com/npseaver

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

Disclaimer: this episode was recorded before Silicon Valley Bank collapsed. We will do a post-mortem on that debacle in the next premium episode.

In part 2 of our discussion on venture capitalism, we dig further into an excellent (and very long) new law article that is crucial for understanding VC. How did this very particular model of investment, which is guided by its own idiosyncratic interests and structural imperatives, come to hold the reins of our global innovation system? And what does that mean for how key decisions are made about technological development?

Article we discuss:

Enhancing the Innovative Capacity of Venture Capital | Peter Lee https://yjolt.org/enhancing-innovative-capacity-venture-capital

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

In this week’s episodes, we dig into an excellent (and very long) new law article, which is crucial for understanding the history, mechanics, constraints, and consequences of venture capitalism. How did this very particular model of investment, which is guided by its own idiosyncratic interests and structural imperatives, come to hold the reins of our global innovation system? And what does that mean for how key decisions are made about technological development?

Article we discuss:

••• Enhancing the Innovative Capacity of Venture Capital | Peter Lee https://yjolt.org/enhancing-innovative-capacity-venture-capital

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

Now we know why Henry Kissinger looks the way he does. He peered into the true face of the New God // New Technology. He is paying the price for this forbidden glance – cursed to live for eternity in a shriveled flesh husk, damned to preach about its power, along with Eric Schmidt and Daniel Huttenlocher. Their reverence is tempered by vague warnings of risk and responsibility. Their hysterical register is offset by the hushed tones of sober reflection.

Stuff we reference:

••• ChatGPT Heralds an Intellectual Revolution | Henry Kissinger, Eric Schmidt, Daniel Huttenlocher https://www.wsj.com/articles/chatgpt-heralds-an-intellectual-revolution-enlightenment-artificial-intelligence-homo-technicus-technology-cognition-morality-philosophy-774331c6

••• How the Enlightenment Ends | Henry Kissinger https://www.theatlantic.com/magazine/archive/2018/06/henry-kissinger-ai-could-mean-the-end-of-human-history/559124/

••• Planning for AGI and beyond | Sam Altman https://openai.com/blog/planning-for-agi-and-beyond/

••• The Myth of Artificial Intelligence | Meredith Whittaker, Lucy Suchman https://prospect.org/culture/books/myth-of-artificial-intelligence-kissinger-schmidt-huttenlocher/

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We are joined by Malcolm Harris—author of Palo Alto: A History of California, Capitalism, and the World—to discuss his magisterial book on how a hellmouth in Northern California has, for the last two hundred years, been a vortex of power for capital. We discuss some of the lesser known people and products of Palo Alto—like Herbet Hoover and William Shockley—that have had very important impacts (for worse and worse) on the direction of modern society, but have largely been looked back on in very myopic ways. We only scratch the surface of the amazingly detailed histories, social maps, and historical materialist analysis that Malcolm digs up in his book. Buy a copy right now!

••• Palo Alto: A History of California, Capitalism, and the World | Malcolm Harris: https://www.littlebrown.com/titles/malcolm-harris/palo-alto/9780316592031/

••• Follow Malcolm: https://twitter.com/BigMeanInternet

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We look at the latest way bosses are outsourcing the dirty work of owning capital and managing workers to techno-consultants. Then see why venture capitalists are loudly crying about a light touch rule that will require them to prove they actually did due diligence before spending billions of other people’s dollars. And we wrap things up by checking in on the plight of Amazon under its new CEO Andy Jassy – and wonder if the company’s troubles will lead to a second imperium of Bezos?

Stuff we reference:

••• AI is starting to pick who gets laid off https://www.washingtonpost.com/technology/2023/02/20/layoff-algorithms/

••• Venture World Watches As SEC Moves To Regulate Industry https://news.crunchbase.com/policy-regulation/venture-sec-regulations-web3-ftx/

••• Can this man turn Amazon around? https://www.ft.com/content/a8cdfe3a-a445-476c-b4a7-367468ac1398

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)

We discuss the supermarkets for data – giant grocery chains like Kroger have created powerful capacities for data extraction and monetization. This forces us to expand our analysis of data surveillance beyond the usual suspects in big tech and reckon with the fact that data capital is not a thing that can be excised from the political economic system, but is now an essential component of that whole system’s operations.

Stuff we reference:

••• Forget Milk and Eggs: Supermarkets Are Having a Fire Sale on Data About You https://themarkup.org/privacy/2023/02/16/forget-milk-and-eggs-supermarkets-are-having-a-fire-sale-on-data-about-you

••• “Out Of Control”: Dozens of Telehealth Startups Sent Sensitive Health Information to Big Tech Companies https://themarkup.org/pixel-hunt/2022/12/13/out-of-control-dozens-of-telehealth-startups-sent-sensitive-health-information-to-big-tech-companies

••• Now for sale: Data on your mental health https://www.washingtonpost.com/technology/2023/02/13/mental-health-data-brokers/

••• Senators Launch Inquiry into Telehealth Companies for Tracking and Monetizing Personal Data https://themarkup.org/pixel-hunt/2023/02/07/senators-launch-inquiry-into-telehealth-companies-for-tracking-and-monetizing-personal-data

Subscribe to hear more analysis and commentary in our premium episodes every week! https://www.patreon.com/thismachinekills

Hosted by Jathan Sadowski (www.twitter.com/jathansadowski) and Edward Ongweso Jr. (www.twitter.com/bigblackjacobin). Production / Music by Jereme Brown (www.twitter.com/braunestahl)