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Silicon Valley billionaires remain in thrall to the cult of the geek

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1 month ago

November 28, 2024

Silicon Valley billionaires remain in thrall to the cult of the geek

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At an FT event a few years ago, Microsoft’s co-founder Bill Gates was asked what painful lessons he had learnt when building his software company. His answer startled the audience back then and is all the more resonant today.

Gates replied that in his early twenties he was convinced that “IQ was fungible” and that he was wrong. His aim had been to hire the smartest people he could find and build a corporate “IQ hierarchy” with the most intelligent employees at the top. His assumption was that no one would want to work for a boss who was not smarter than them. “Well, that didn’t work for very long,” he confessed. “By the age of 25, I knew that IQ seems to come in different forms.”

Those employees who understood sales and management, for example, appeared to be smart in ways that were negatively correlated with writing good code or mastering physics equations, Gates said. Microsoft has since worked on blending different types of intelligence to create effective teams. It seems to have paid off: the company now boasts a market value of more than $3tn and will celebrate its 50th birthday next year.

Gates may have learnt that lesson early. But while many of his fellow US tech billionaires share his original instinct about the primacy of IQ, few appear to have reached his later conclusion. There is a tech titan tendency to believe that it is their own particular form of intelligence that has enabled them to become wildly successful and insanely wealthy and to champion it in others.

Moreover, they seem to think this superior intelligence is always and everywhere applicable.

The default assumption of successful founders seems to be that their expertise in building tech companies gives them equally valuable insights into the US federal budget deficit, pandemic responses, or the war in Ukraine. For them, fresh information plucked from unfamiliar fields sometimes resembles God-given revelation even if it is commonplace knowledge to everyone outside their bubble. One young American tech billionaire, a college dropout who had just returned from a trip to Paris, once asked me with wide-eyed wonder whether I had heard about the French Revolution. It was incredible, apparently.

Inevitably, this leads to questions about the fungibility of Elon Musk’s IQ given his omnipresence in the US economy and now politics. The South African-born entrepreneur is blessed with an exceptional form of intelligence and clarity of vision that commands respect, even from his fiercest competitors. “I think he’s a fucking legend,” the chief executive of one rival electric vehicle company told me, even though he was personally appalled by the ways in which Musk had used his social media company X as a propaganda tool.

Although Musk excels at building cool cars and rocket ships, his personal brand extension into social media is flailing and he is facing a user and advertiser exodus at X. Still, Musk used the $44bn megaphone he bought to help elect Donald Trump. In turn, the incoming US president has now invited the “super genius” Musk to become one of two co-heads of the planned Department of Government Efficiency.

To cut bureaucracy, Musk is advertising for “super high IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting”. Musk has already said he would like to axe three quarters of the federal government’s 400 departments. “99 is enough,” he posted.

These days, Musk prefers to troll Gates rather than listen to him. Yet he might still reflect on Gates’s painful lesson: the smartest people in one field do not always have the best ideas in others.

No doubt there is massive bureaucratic waste to be cut, but it will take many different types of intelligence to understand all the public benefits, competing agendas and conflicting interests surrounding government spending.

There is also a certain irony in tech billionaires trumpeting superior human intelligence when they are also developing AI that may one day overtake it. Google’s co-founder Larry Page labelled Musk a “speciesist” for defending human intelligence so doggedly in the face of advancing technology.

Naturally, Musk is working on a solution: he plans to upgrade our biological wetware using electronic brain implants developed by his company Neuralink to merge human and machine intelligence.

That prospect will terrify many but may, in a different way, prove the ultimate test of whether human IQ is fungible.

john.thornhill@ft.com

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

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7 hours ago

January 11, 2025

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Tulsa Massacre Was a ‘Coordinated, Military-Style Attack,’ Federal Report Says

The Tulsa Race Massacre of 1921, in which a prosperous Black neighborhood in Oklahoma was destroyed and up to 300 people were killed, was not committed by an uncontrolled mob but was the result of “a coordinated, military-style attack” by white citizens, the Justice Department said in a report released Friday.

The report, stemming from an investigation announced in September, is the first time that the federal government has given an official, comprehensive account of the events of May 31 and June 1, 1921, in the Tulsa neighborhood of Greenwood. Although it formally concluded that, more than a century later, no person alive could be prosecuted, it underscored the brutality of the atrocities committed.

“The Tulsa Race Massacre stands out as a civil rights crime unique in its magnitude, barbarity, racist hostility and its utter annihilation of a thriving Black community,” Kristen Clarke, assistant attorney general for civil rights, said in a statement. “In 1921, white Tulsans murdered hundreds of residents of Greenwood, burned their homes and churches, looted their belongings and locked the survivors in internment camps.”

No one today could be held criminally responsible, she said, “but the historical reckoning for the massacre continues.”

The report’s legal findings noted that if contemporary civil rights laws were in effect in 1921, federal prosecutors could have pursued hate crime charges against both public officials and private citizens.

Though considered one of the worst episodes of racial terror in U.S. history, the massacre was relatively unknown for decades: City officials buried the story, and few survivors talked about the massacre.

The Justice Department began its investigation under the Emmett Till Unsolved Civil Rights Crime Act, which allows the agency to examine such crimes resulting in death that occurred before 1980. Investigators spoke with survivors and their descendants, looked at firsthand accounts and examined an informal review by the Justice Department’s Bureau of Investigation, the precursor to the F.B.I. In that 1921 report, the agency asserted that the riot was not the result of “racial feeling,” and suggested that Black men were responsible for the massacre.

The new 123-page report corrects the record, while detailing the scale of destruction and its aftermath. The massacre began with an unfounded accusation. A young Black man, Dick Rowland, was being held in custody by local authorities after being accused of assaulting a young white woman.

According to the report, after a local newspaper sensationalized the story, an angry crowd gathered at the courthouse demanding that Mr. Rowland be lynched. The local sheriff asked Black men from Greenwood, including some who had recently returned from military service, to come to the courthouse to try to prevent the lynching. Other reports suggest the Black neighbors offered to help but were turned away by the sheriff.

The white mob viewed attempts to protect Mr. Rowland as “an unacceptable challenge to the social order,” the report said. The crowd grew and soon there was a confrontation. Hundreds of residents (some of whom had been drinking) were deputized by the Tulsa Police. Law enforcement officers helped organize these special deputies who, along with other residents, eventually descended on Greenwood, a neighborhood whose success inspired the name Black Wall Street.

The report described the initial attack as “opportunistic,” but by daybreak on June 1, “a whistle blew, and the violence and arsons that had been chaotic became systematic.” According to the report, up to 10,000 white Tulsans participated in the attack, burning or looting 35 city blocks. It was so “systematic and coordinated that it transcended mere mob violence,” the report said.

In the aftermath, the survivors were left to rebuild their lives with little or no help from the city. The massacre’s impact, historians say, is still felt generations later.

In the years since the attack, survivors and their descendants and community activists have fought for justice. Most recently, a lawsuit seeking reparations filed on behalf of the last two known centenarian survivors was dismissed by Oklahoma justices in June. In recent years, Tulsa has excavated sections of a city cemetery in search of the graves of massacre victims. And in 2024, the city created a commission to study the harms of the atrocity and recommend solutions. The results are expected in the coming weeks.

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The strange world of the Euro-Gulf

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9 hours ago

January 11, 2025

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Waiting for the Tube, I see a poster for an upmarket gym chain. Locations? “City of London. High Street Kensington. Dubai.” What a shame to choose a setting that is so disfigured with bad taste and clueless expats. Still, the City and Dubai branches must be first-rate.

Soon after, I am in Doha, and again the Euro-Gulf linkage is inescapable. The emir of Qatar is back from a state visit to Britain, where the hosts were angling for a trade deal. Swiss-headquartered Fifa has just given the World Cup hosting rights to Saudi Arabia. Even in skyscraper-free Muscat, where alleys that might have been rationalised elsewhere in the Gulf twist freely behind the corniche, three restaurants in my hotel are outposts of Mayfair brands.

What a shame the word “Eurabia” is taken. And by such cranks. (It is a far-right term for a supposed plot to Islamise Europe.) Because we are going to need a word for this relationship. The Arabian peninsula has what Europe lacks: space, natural wealth and the resulting budget surpluses to invest in things. For its part, Europe has “soft” assets that Gulf states must acquire, host or emulate to carve out a post-oil role in the world. This isn’t the Gulf’s deepest external connection. Not while 38 per cent of people in the UAE and a quarter in Qatar are Indian. But it might be the most symbiotic, if I understand that word correctly.

True, the US has a defence presence in all six Gulf Cooperation Council states. This includes the Saudi footprint that Osama bin Laden wasn’t super-stoked about. But everyday contact? America is a 15-hour flight away. Its soft assets are either harder to buy or less coveted. Its citizens have little fiscal incentive to live in tax havens, as Uncle Sam charges them at least some of the difference.

In the 1970s, when Opec profits gushed through London, Anthony Burgess wrote a dystopia in which grand hotels became “al-Klaridges” and “al-Dorchester”. What a mental jolt it was for even the worldliest Europeans to see — we mustn’t pussyfoot around this — non-white people with more money than them. Still, they could condescend to the Gulf as being no place to live. Half a century on, their grandchildren would call that copium. In fact, their grandchildren might literally live there for economic opportunities. (Al-Dorado?) As a banker friend explains it, the time zones allow you to sleep late, trade the European markets, then dine late, so it is the young ones who do a Gulf stint, not the burnouts who are my age.

For how long, though? It is the sheer unlikelihood of this tryst, between a universal rights culture and monarchical absolutism, between a mostly secular continent and the home peninsula of an ancient faith, that distinguishes it from anything I can think of. A relationship can be both necessary and untenable. It wouldn’t take much — some intra-GCC violence, say, which seemed close in 2017 — for Europe’s exposure to the Gulf to age as badly as its former openness to Russia. If Abu Dhabi-owned Manchester City are found to have committed financial chicanery, a chunk of Premier League history will be tainted. Because it is “just” sport, I sense people are underprepared for the backlash.

And it is parochial to assume that the relationship could only ever break down on one end. It is the Gulf side that has to make the awkwardest cultural adjustments. Because Europeans associate 1979 with Iran and perhaps with Margaret Thatcher, they sometimes pass over the seizure of the Grand Mosque in Mecca by zealots who thought the House of Saud had grown soft on western habits. Governments in the region assuredly don’t forget.

How far a place can liberalise without tripping a cultural wire occupies (and is answered differently in) each state, or emirate. Everyone is very nice to “Mister Janan” in his Doha hotel. But the metal scanners that must be passed on each re-entry to the building stand as a reminder of the stakes here. I wonder if Europe and the Gulf throw so much into their liaison out of a niggling doubt that it can last.

Email Janan at janan.ganesh@ft.com

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Fox News headed for trial, again, over 2020 election fraud claims

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9 hours ago

January 11, 2025

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Fox News headed for trial, again, over 2020 election fraud claims

Fox News appears headed for trial over false election fraud claims made after the 2020 election, after a New York state appellate court chose not to dismiss a lawsuit brought by voting tech company Smartmatic.

Spencer Platt/Getty Images/Getty Images North America

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Spencer Platt/Getty Images/Getty Images North America

Fox News appears to be headed once more to court over the lies involving election fraud it aired about the 2020 presidential race. This time, it’s over the false claims that election tech company Smartmatic sabotaged the re-election of then-President Donald Trump.

In April 2023, on the eve of a trial in Delaware in which Fox founder Rupert Murdoch was set to testify, the network and its parent corporation agreed to pay $787.5 million to settle a defamation suit filed by Dominion Voting Systems.

Fox News settles blockbuster defamation lawsuit with Dominion Voting Systems

A flood of revelations from the pre-trial process of discovery yielded damning internal communications. The judge found that network figures from junior producers to primetime hosts, network executives, Murdoch and his son Lachlan knew that Joe Biden had won the election fairly. Yet, they allowed guests to spread lies that Trump had been cheated of victory to win back Trump viewers. Some hosts amplified and even embraced the claims.

Now, an appellate court ruling in New York state is allowing Smartmatic’s parallel, $2.7 billion suit to press ahead. The same ruling also dismissed some counts against the network’s parent company, Fox Corp.

Pro-Trump Fox hosts including Maria Bartiromo and the late Lou Dobbs invited guests making unsubstantiated and wild claims about Smartmatic on the air, and at times appeared to endorse those allegations themselves.

Fox forced Dobbs off the air just a day after Smartmatic filed its suit in February 2021. Two weeks later, Fox News and Fox Business Network ran an awkward segment with a voting tech expert, Edward Perez, to present viewers with a rebuttal to those outlandish claims. Newsmax, a right-wing channel in competition with Fox for viewers who supported Trump, did much the same.

“Today, the New York Supreme Court rebuffed Fox Corporation’s latest attempt to escape responsibility for the defamation campaign it orchestrated against Smartmatic following the 2020 election,” Smartmatic’s lead attorney, Erik Connolly, said in a statement. “Fox Corporation attempted, and failed, to have this case dismissed, and it must now answer for its actions at trial. Smartmatic is seeking several billion in damages for the defamation campaign that Fox News and Fox Corporation are responsible for executing. We look forward to presenting our evidence at trial.”

Unlike Dominion, whose voting machines were used in two dozen states, Smartmatic says its technology was used only in Los Angeles County in 2020. Fox has sharply questioned the value of Smartmatic and the contracts it says were jeopardized and lost.

“We will be ready to defend this case surrounding extremely newsworthy events when it goes to trial,” a network spokesperson said in a statement. “As a report prepared by our financial expert shows, Smartmatic’s damages claims are implausible, disconnected from reality, and on their face intended to chill First Amendment freedoms.”

In the Dominion case, Fox also relied on arguments that its shows and hosts were simply relaying inherently newsworthy allegations from inherently newsworthy people — the then-president and his allies. The presiding judge in Delaware, Eric M. Davis, rejected that argument; he found that Fox’s executives, stars, and shows had broadcast false claims and defamed Dominion in doing so.

Fox has said that the New York case offers a new venue, with slightly different implications, although Davis applied New York defamation law in his Delaware proceedings.

Fox settled, as it has in many other cases, before opening arguments of the trial with Dominion. It maintains it will fight the allegations Smartmatic is making in court.