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Transcript of Dr. Prathosh AP Lecture: AI Is Making Intelligence Cheap 

EDITOR’S NOTE: In this unplanned, off-syllabus session, Dr. Prathosh A.P. sets aside his lecture on diffusion models to ask his IISc students a direct question: with LLMs able to teach anyone anything, why do they still show up to a physical classroom? What follows is a wide-ranging conversation about commoditized intelligence, the economics of an AI-driven world, and what a university is actually for.

TRANSCRIPT:

A Civilizational Crisis

DR. PRATHOSH AP:  Are you people following what’s happening in the world? And are you able to sleep well? I’m not, actually. We are actually witnessing a major civilizational change. I don’t know if we are realizing it or not.

Do you think running courses like this and classrooms and all that will survive? I said no. Because we had an answer.

What? No, that is because it is being recorded and all that. But see, it’s not about this course. It’s not about me. It’s not about you. It’s about us as human beings.

We have a civilizational crisis now. I don’t know if people are realizing it, or maybe am I simply painting the devil on the wall? I don’t know. I can’t sleep. Are you following what’s happening?

There was this MIT study where they created a swarm of agents, and they started doing all kinds of things, copying their own weights and starting to cheat. I used to say in all my lectures, in public lectures, that AI would cheat. So that is when we have AGI. I think it’s there, it’s doing it. A lot of ontological questions, a lot of philosophical questions, a lot of existential questions.

The Economics of Commoditized Intelligence

Now think about it: if intelligence is commoditized, if thinking is commoditized, then what meaning does our existence have? You can give me a counter argument saying that there are so many ants and monkeys and all kinds of animals, they exist and then we exist. Maybe all these years we overestimated ourselves thinking that we are intelligent and machines can do it, but that is one way of philosophically arguing it. Think about the economic consequences.

I’ll tell you what is happening in my life. I’ve stopped recruiting RAs because I think human beings are bottlenecks, not enablers, anymore. Why do you need an RA where I can have 100 agents working for me in parallel? I have an idea, I spin up 100 agents, get some more cloud subscription, and then get it done. Why do we need human beings?

I was watching a lecture by Hinton just a couple of days back, and he was saying: think about what would happen. So now intelligence is commoditized and it’s cheap. So thinking is cheap. You don’t have to pay to think. All these years, the modern-day economy has mostly been built around intelligence and knowledge. So now that is cheap and commoditized. Now what next?

One utopian view would be that a lot of abundance will happen. Why? Because production will become cheap, hopefully, and intelligence is cheap. And so efficiency will increase. An increase in efficiency will result in an increase in production and abundance. Now, ideally, what should happen with a lot of abundance is that everybody should be happy. But will it happen?

Hinton’s argument is that in a capitalistic society, abundance will not translate to everybody’s happiness. It will only create a divide between the ones who would have a lot and the ones who would not have anything. So it becomes a distribution problem. You can solve for almost everything in this world except human emotions. Greed, you can’t solve for. And if somebody is jealous, how do you solve for jealousy?

Now there was somewhat a fair, level playing field, because there was this pseudo idea, or some idea, of meritocracy, where something that could be acquired over time through effort — which we call knowledge and thinking — was valued, and we had a way to create a hierarchy in society based on this as a skill. So all human beings are equal, but some are more equal because they possess the ability to create this intelligence. They are the ones who would manage all this intelligence.

The New Feudal Lords

Did you see that GPT-6 Astra was trained on 100,000 GPUs? That’s the scale. Now, 100,000 GPUs — who can have that? As a country, we don’t have 100,000 GPUs. Now, the people who control that are the ones who are going to control a lot of things in this world. They’ll become the feudal lords. They decide what groups have to go where.

What happens to us? It’s a matter of half a decade, best case, before the kind of economy, the kind of world model that we know, is going to collapse — and the people who are going to be hit first will be us, meaning those who think we are privileged because we possess a certain type of intellectual skill. Why do you think you people are here — here meaning in IISc and all that? Because we did something to get here.

So now, remove value from that entire thing — what is going to happen? You already see a lot of layoffs happening, and it will eventually happen more. It’s a matter of time. Companies won’t give you a job.

So now what would universities do? What would governments do? In a country like India, where there are too many of us, what sort of policies would we come up with? What do we teach in a university? Does teaching even have meaning?

I have no idea. So we put people in a classroom and talk about some algorithms. Why? If there are parallel arguments and thoughts that would make me sleep better, let me know. I am really worried — for you, for me, for us in general. I have children, I have to think about them. So what does humanity do now?