[HN Gopher] Underwriting Superintelligence
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       Underwriting Superintelligence
        
       Author : brdd
       Score  : 33 points
       Date   : 2025-07-15 19:13 UTC (3 hours ago)
        
 (HTM) web link (underwriting-superintelligence.com)
 (TXT) w3m dump (underwriting-superintelligence.com)
        
       | brdd wrote:
       | The "Incentive Flywheel" of AI: how insurance unlocks secure Al
       | progress and enables faster AI adoption.
        
       | xmprt wrote:
       | This only works if there are negative consequences faced by the
       | insured parties when things go wrong. If all the negative
       | consequences are faced by society and there are no regulations
       | that incur that burden on the companies building AI, then we'll
       | have unchecked development.
        
         | brdd wrote:
         | We agree! Unchecked development could lead to disaster.
         | Insurers can insist on adherence to best practices to
         | incentivize safe practices. They can also clarify liability and
         | cover most (but not all) of the risk, leaving the developer on
         | the hook for a portion of it.
        
       | muskmusk wrote:
       | I love it!
       | 
       | Finally some clear thinking on a very important topic.
        
       | blibble wrote:
       | > We're navigating a tightrope as Superintelligence nears. If the
       | West slows down unilaterally, China could dominate the 21st
       | century.
       | 
       | I never understood this argument
       | 
       | as a non-USian: I'd prefer to be under the Chinese boot rather
       | than having all of humanity under the boot of an AI
       | 
       | and it is certainly no reason to try to do everything we possibly
       | can to try and summon a machine god
        
         | socalgal2 wrote:
         | > I'd rather be under the Chinese boot than having all of
         | humanity under the boot of an AI
         | 
         | That is not the options being offered. The options are under
         | the boot of a Western AI or a Chinese AI. Maybe you'd prefer
         | the Chinese AI boot to the Western AI boot?
         | 
         | > certainly no reason to try to increase the chance of
         | summoning a machine god
         | 
         | The argument is that this is inevitable. If it's possible to
         | make AGI someone will eventually do it. Does it matter who does
         | it first? I don't know. Yes, making it happen faster might be
         | bad. Waiting until someone else does it first might be worse.
        
           | hiAndrewQuinn wrote:
           | If you financially penalize AI researchers, either with a
           | large lump sum or in a way which scales with their expected
           | future earnings, take you pick, and pay the proceeds to the
           | people who put together the very cases which lead to the
           | fines being levied, you can very effectively freeze AGI
           | development.
           | 
           | If you don't think you can organize international cooperation
           | around this you can simply put such people on some equivalent
           | of an FBI type Most Wanted list and pay anyone who comes
           | forward with information and maybe gets them within your
           | borders as well. If a government chooses to wave its dick
           | around like this it could easily cause other nations to copy
           | the same law, this instilling a new global Nash equilibrium
           | where this kind of scientific frontier research is verboten.
           | 
           | There's nothing inevitable at all about that. I hesitate to
           | even call such a system extreme, because we already employ
           | systems like this to intercept e g. high level financial
           | conspiracies via things like the False Claims Act.
        
             | socalgal2 wrote:
             | In my world there are multiple countries who each have an
             | incentive to win this race. I know of no world where you
             | can penalize AI researchers across international boundaries
             | nor to believe your scenario could ever play out. You're
             | dreaming if you think you could actually get all the
             | players to co-operate on this. It's like expecting the
             | world to come together on climate change. It's not
             | happening and it's not going to happen.
             | 
             | Further, it doesn't take a huge lab to do it. You can do it
             | at home. It might take longer but there's an 1.4kg blob in
             | everyone's head as proof of concept and does not take a
             | data center.
        
               | blibble wrote:
               | > I know of no world where you can penalize AI
               | researchers across international boundaries nor to
               | believe your scenario could ever play out.
               | 
               | mossad could certainly do it
        
           | blibble wrote:
           | > The options are under the boot of a Western AI or a Chinese
           | AI. Maybe you'd prefer the Chinese AI boot to the Western AI
           | boot?
           | 
           | given Elon's AI is already roleplaying as hitler, and
           | constructing scenarios on how to rape people, how much worse
           | could the Chinese one be?
           | 
           | > The argument is that this is inevitable.
           | 
           | which is just stupid
           | 
           | we have the agency to simply stop
           | 
           | and certainly the agency to not try and do it as fast as we
           | possibly can
        
             | socalgal2 wrote:
             | "We" do not as you can not control 8 billion people
        
               | blibble wrote:
               | it's certainly not that difficult to imagine
               | international controls on fab/DC construction, enforced
               | by the UN security council
               | 
               | there's even a previous example of controls of this sort
               | at the nation state level: those for nuclear enrichment
               | 
               | (the cost to perform uranium enrichment is now less than
               | building a state of the art fab...!)
               | 
               | as a nation state (not facebook): you're entitled to
               | enrich, but only under the watchful eye of the IAEA
               | 
               | and if you violate, then the US tends to bunker-bust you
               | 
               | this paper has some ideas on how it might work: https://c
               | dn.governance.ai/International_Governance_of_Civili...
        
             | mattnewton wrote:
             | > we have the agency to simply stop
             | 
             | This is worse than the prisoner's dilemma- the "we get
             | there, they don't" is the highest payout for the decision
             | makers who believe they will control the resulting super
             | intelligence.
        
           | MangoToupe wrote:
           | > The options are under the boot of a Western AI or a Chinese
           | AI.
           | 
           | This seems more like fear-mongering than based on any kind of
           | reasoning I've been able to follow. China tends to keep
           | control of its industry, unlike the US, where industry tends
           | to control the state. I emphatically trust the chinese state
           | more than out own industry.
        
       | gwintrob wrote:
       | I'm biased because my company (Newfront) is in insurance but
       | there are a lot of great points here. This jumped out: "By 2030,
       | global AI data centers alone are projected to require $5 trillion
       | of investment, while enterprise AI spend is forecast to reach
       | $500 billion."
       | 
       | There's a mega trend of value concentrating in AI (and all the
       | companies that touch/integrate it). Makes a ton of sense that
       | insurance premiums will flow that direction as well.
        
         | blibble wrote:
         | > This jumped out: "By 2030, global AI data centers alone are
         | projected to require $5 trillion of investment, while
         | enterprise AI spend is forecast to reach $500 billion."
         | 
         | and by 2040 it will be $5000 trillion!
         | 
         | and by 2050 it will be $5000000 quadrillion!
        
           | gwintrob wrote:
           | Ha, of course. A lot easier to forecast in a spreadsheet than
           | actually make this happen. Based on the progress in AI in the
           | past couple years and the capabilities of the current models,
           | would you bet against that growth curve?
        
             | blibble wrote:
             | yes, there's not $5 trillion of dumb money spare
             | 
             | (unless softbank has been hiding it under their mattress)
        
       | choeger wrote:
       | Is there _any_ indication whatsoever that there 's even a glimpse
       | of artificial intelligence out there?
       | 
       | So far, I have seen language models that, quite impressively,
       | translate between different languages, including programming
       | languages and natural language specs. Yes, these models use a
       | wast (compressed) knowledge from pretty much all of the internet.
       | 
       | There are also chain of thought models, yes, but what kind of
       | actual intelligence can they achieve? Can they formulate novel
       | algorithms? Can they formulate new physics hypotheses? Can they
       | write a novel work of fiction?
       | 
       | Or aren't they actually limited by the confines of what we as a
       | species already know?
        
         | roenxi wrote:
         | You seem to be part of a trend where most humans are defined as
         | unintelligent - there are remarkably few people out there
         | capable of formulating novel algorithms or physics
         | hypothesises. Novels there are a few more if we admit
         | unreadable slop produced by people who really should choose
         | careers other than writing. It speaks to the progress that
         | machines have made that traditional tests of intelligence, like
         | holding a conversation or doing well on an undergraduate-level
         | university test, apparently no longer measure anything of
         | importance related to intelligence.
         | 
         | If we admit that even relatively stupid humans show some levels
         | of intelligence, as far as I can tell we've already achieved
         | artificial intelligence.
        
         | yahoozoo wrote:
         | > Is there any indication whatsoever that there's even a
         | glimpse of artificial intelligence out there?
         | 
         | no
        
       | Animats wrote:
       | For this to work, large class actions are needed. If companies
       | are liable for large judgements, companies will insure against
       | them. If not, companies will not try to avoid harms for which
       | they need not pay.
        
       | janalsncm wrote:
       | > As insurers accurately assess risk through technical testing
       | 
       | If that's not "the rest of the owl" I don't know what is.
       | 
       | Let's swap out superintelligence for something more tangible.
       | Say, a financial crash due to systemic instability. How would you
       | insure against such a thing? I see a few problems, which are even
       | more of an issue for AI.
       | 
       | 1. The premium one should pay depends on the expected risk, which
       | is damage from the event divided by the chance of event
       | occurring. However, quantifying the numerator is basically
       | impossible. If you bring down the US financial system, no
       | insurance company can cover that risk. With AI, damage might be
       | destruction of all of humanity, if we believe the doomers.
       | 
       | 2. Similarly, the denominator is basically impossible to
       | quantify. What is the chance of an event which has never happened
       | before? In fact, having "insurance" against such a thing will
       | likely create a moral hazard, causing companies to take even
       | bigger risks.
       | 
       | 3. On a related point, trying to frame existential losses in
       | financial terms doesn't make sense. This is like trying to take
       | out an insurance policy that will protect you from Russian
       | roulette. No sum of cash can correct that kind of damage.
        
         | brdd wrote:
         | Thanks for the thoughtful response! Some replies:
         | 
         | 1. Someone is always carrying the risk; the question is, who it
         | should be? We suggest private markets should price and carry
         | the first $10B+ before the government backstop. That
         | incentivizes them to price and manage it.
         | 
         | 2. Insurance has plenty of ways to manage moral hazard (e.g.
         | copays). Pricing any new risk is hard, but at least with AI you
         | can run simulations, red-team, review existing data, etc.
         | 
         | 3. We agree on existential losses, but catastrophic events can
         | be priced and covered. Insurers enforcing compliance with
         | audits/standards would help them reduce catastrophes, in turn
         | reducing the risk of many existential risks.
        
       | yahoozoo wrote:
       | With no skin in the game, it will be either cool if super
       | intelligence happens or it doesn't and I just get to enjoy some
       | schadenfreude. Either all of these people are geniuses or they're
       | Jonestown members.
        
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       (page generated 2025-07-15 23:00 UTC)