AI: Thinking Wrong and Wronger
August 6, 2026
Another dinobaby post. No AI unless it is an image. This dinobaby is not Grandma Moses, just Grandpa Arnold.
Who is afraid of Chinese AI? I did a quick check. A “expert” named Taylor Lorenz posted a video called on its thumbnail “Billionaires Are Terrified.” I did not watch it. I am not a video centric dinobaby. If you want to sit through 30 minutes of learning why rich tech bros are afraid, here’s your button. (If you like doom about AI, check out the semi human House of El.)
I also noticed a write up from the noted tech thinker Ben Thompson titled “Who’s Afraid of Chinese Models?” The essay is about 3,700 words, but you can listen to a podcast about the written text by paying a fee.
Good enough, Midjourney.
One of my team members told me that a television personality named Jim Cramer is also afraid of Chinese AI. The person who told me about Mr. Cramer pointed out that he coined the word “finsuicide” to reflect the financial and security risks poised by China’s AI technology.
However, I think a recent action by Nvidia puts the “fear” into a less MBA-infused context. “A Chinese Model Saved Hugging Face. It Is Not in Nvidia’s New Alliance” reports:
Nvidia has turned last week’s open letter into an institution. The Open Secure AI Alliance launched on Monday with 37 founding members and a founding story: a Chinese open model cleaning up after an American closed one. Neither the company that built the Chinese model nor the lab that built the American one has joined.
The spark for the alliance is the hack into Hugging Face. To boil down the assertion, an OpenAI test jumped its electrified fence and hacked into Hugging Face. Believe it or not. The alliance appears to be just what a group of companies needs to start piling digital rocks in the path of China’s open AI models.
The write up says:
Jensen Huang [the leather jacketed persona of Nvidia] made the point himself on X. “Attackers have frontier AI,” he wrote. “During the Hugging Face incident, closed AI blocked essential forensics. An open-weight frontier model helped contain the intrusion.” Nvidia’s post names 37 founding members. Microsoft, IBM, Palantir, Dell, Cisco, Cloudflare, CrowdStrike, Databricks, Salesforce, Red Hat, Snowflake, Palo Alto Networks and the Linux Foundation are in. So are SAP, Siemens, NAVER and SK Telecom. Hugging Face itself joined, which is fitting. The gaps matter more. OpenAI, Anthropic, Google, Meta and Amazon are all absent… [Z.ai is missing too. Editor]
Yep, the gaps.
When I read about the alleged agent breakout and this pile up the big rocks response, I thought of one thing: Asymmetric warfare. Cheap drones knock out really expensive stuff. The cheap drones improve and knock out more and more expensive stuff. What’s the result?
The old-fashioned approach to kinetic warfare is not financially viable. At some point the good enough cheap stuff is going to put the expensive stuff, its creators, and its purchasers in a world of hurt. There’s a fix, of course, but that is not going to happen. Pride, political realities, and general human wackiness. Yeah, wackiness.
The cited article ends this way:
An American closed model caused the breach. A Chinese open model cleaned it up. American closed models made the cleanup harder by refusing to help. The alliance built on that sequence has no Chinese members, and campaigns against restrictions on exactly the kind of model that saved the day. Meanwhile Washington may ban it. Nvidia’s position is coherent on its own terms. It sells chips to everyone, so a plural market suits it, and it says openly that defenders need both closed and open systems working together. But the argument only lands if the open frontier stays available. Right now the most capable open models are Chinese, and the case for keeping them legal rests on an American company’s embarrassment.
I have some observations. However, I will not share them. The issue is fraught with risk. As a dinobaby, I like to avoid risk.
Therefore, everything is coming up roses. Yep, everything: Technology leadership, big money, data center excitement, and good old nation-state excitement.
Net net: When the horse is out of the barn, can a committee put it back?
Stephen E Arnold, August 6, 2026
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