AI models and Prince Harry

Summary

Podcast Summary: The Indicator from Planet Money Episode: AI Models and Prince Harry
Release Date: January 24, 2025
Host/Authors: Darian Woods, Waylon Wong, and Jeff Guo
Source: NPR’s The Indicator from Planet Money

---

Introduction

In this episode of The Indicator from Planet Money, hosts Darian Woods and Waylon Wong delve into two significant developments shaping today's economic and technological landscape. Joined by Planet Money’s Jeff Guo, they explore the United States' monumental $500 billion investment in artificial intelligence (AI) infrastructure and the surprising emergence of a powerful, open-source AI model from a Chinese startup. Additionally, the episode touches upon the high-profile legal settlement involving Prince Harry and News Group Newspapers, highlighting the intersection of media, royalty, and economics.

---

Indicator 1: The U.S. $500 Billion AI Investment

Timestamp: [02:21] – [04:41]

President Donald Trump announced a groundbreaking initiative to establish a new American company, Future, committed to investing $500 billion in AI infrastructure over the next four years. This announcement, made during a White House press conference on Tuesday, was witnessed by tech luminaries such as Larry Ellison, Sam Altman of OpenAI, and Masayoshi Son.

Darian Woods explains the significance of this investment by contrasting the economics of traditional technology firms with those operating in the AI sector:

“A big reason we have tech monopolies like Google or Microsoft is because it costs a lot of upfront money to build a good search engine or spreadsheet. But for AI, the cost of that question you're asking ChatGPT or Claude is not close to zero” (03:09).

Unlike traditional software, where the marginal cost of each additional user or query is negligible, AI operations incur substantial costs per query. For example, Darian notes:

“Each AI query takes enough energy to power a light bulb for a few minutes... it's 10 times more energy than a traditional Google search” (03:52).

This elevated marginal cost challenges the longstanding economic model that has allowed tech giants to establish monopolies. With AI queries being significantly more resource-intensive, Future's hefty investment aims to level the playing field by ensuring the United States maintains a competitive edge in AI development and deployment.

---

Indicator 2: DeepSync’s Open-Source AI Model

Timestamp: [04:41] – [08:00]

In a surprising turn, DeepSync, a relatively unknown Chinese startup, released what may be the most powerful AI model to date. This model competes directly with offerings from major players like OpenAI, Google, and Meta. Jeff Guo highlights the model’s remarkable capabilities:

“DeepSync claims that it even beats OpenAI's model on certain math tests” (04:57).

What sets DeepSync apart is its commitment to openness. On Monday, the company released the entire AI model to the public for free, including smaller, more accessible versions that users can run on personal laptops. Jeff demonstrates this by running the model live on the podcast:

“It just goes on and on and on... it kind of just goes in circles and circles” (06:07).

This move has profound implications:

1. Geopolitical Impact: Despite the U.S. efforts to restrict China’s access to advanced microchips, DeepSync’s achievement indicates that Chinese firms are circumventing these barriers, continuing to push the envelope in AI innovation.

2. Economic Shifts in AI: The traditional model where companies like OpenAI maintain a competitive edge through proprietary models is disrupted. With DeepSync offering a free, open-source alternative, the AI market may witness increased competition and democratization of AI technologies.

Jeff underscores the economic significance:

“Companies like OpenAI have been able to charge a premium because they have the most advanced models, but now they're competing with free” (07:03).

This development challenges the notion of AI monopolies and suggests a future where open-source AI models could foster greater innovation and accessibility.

---

Indicator 3: Prince Harry’s Lawsuit Settlement

Timestamp: [08:14] – [10:33]

Shifting focus to the United Kingdom, the episode covers Prince Harry, the Duke of Sussex, who has settled a longstanding lawsuit against News Group Newspapers, owned by Rupert Murdoch. The settlement includes a “full and unequivocal apology” for the company’s intrusion into Prince Harry’s private life over the past 15 years.

Waylon Wong provides context:

“This scandal is almost 20 years old... Murdoch's companies have paid out over a billion dollars in settlements over the years” (08:49).

Key points of the settlement:

• Financial Compensation: Prince Harry received an undisclosed sum, reported to be at least $12 million by The New York Times.
• Public Apology: An apology was issued not only to Harry but also to his late mother, Princess Diana.

However, the settlement avoided a trial, which Prince Harry initially viewed as necessary for full accountability. Waylon Wong explores the economic and strategic considerations behind the settlement:

“Under British law, if they had gone to trial and Prince Harry had won, but the damages... he would have had to pay the other side's legal costs” (09:45).

This legal strategy reflects game theory principles, where the potential costs of litigation outweighed the benefits of pursuing a public trial. The settlement, while financially and reputationally beneficial, leaves some questions about complete accountability unanswered.

---

Insights and Conclusions

This episode of The Indicator from Planet Money offers a compelling look into how significant financial investments and strategic business decisions shape industries and personal lives alike.

1. AI Economics Are Evolving: The United States' massive investment in AI, coupled with DeepSync’s open-source model, suggests a shift in how AI technologies are developed and monetized. The traditionally low marginal cost of software is no longer applicable, introducing new challenges and opportunities for competition.

2. Global AI Race Intensifies: China's ability to advance AI technology despite U.S. restrictions indicates a robust and resilient AI ecosystem. The openness of DeepSync’s model could democratize AI but also disrupt existing market leaders who rely on proprietary technologies.

3. Legal and Economic Interplay in High-Profile Cases: Prince Harry’s settlement underscores the intricate balance between legal strategy and economic realities. High-profile individuals must navigate complex legal landscapes where the costs of litigation can significantly influence outcomes.

Overall, the episode illuminates the interconnectedness of technology, economics, and personal narratives in shaping the modern world.

---

Notable Quotes

• Darian Woods:
  “A big reason we have tech monopolies like Google or Microsoft is because it costs a lot of upfront money to build a good search engine or spreadsheet. But for AI, the cost of that question you're asking ChatGPT or Claude is not close to zero.” (03:09)

• Jeff Guo:
  “It's processing. Okay. So you see, it takes you through its like chain of thought... it kind of just goes in circles and circles.” (06:07)

• Waylon Wong:
  “Under British law, if they had gone to trial and Prince Harry had won, but the damages... he would have had to pay the other side's legal costs.” (09:45)

---

Produced by: Julia Richie, Neal Rauch, Paddy Hirsch, and Kicking Cannon
Edited by: Paddy Hirsch
Engineering by: Neal Rauch
Fact-Checked by: Julia Richie

The Indicator from Planet Money is a production of NPR.

Transcript

[NPR]

NPR.

[Darian Woods]

This is the indicator from Planet Money. I'm Darian Woods.

[Waylon Wong]

I'm Waylon Wong. And joining us today is Planet Money's very own Jeff Guo. Hello Jeff.

[Jeff Guo]

Always nice to be here. Waylon.

[Darian Woods]

It is time for Indicators of the Week, our look at the numbers from around the news this week. We have figures from President Trump's first major AI announcement.

[Jeff Guo]

We've also got Chinese AI makers making.

[Waylon Wong]

Waves and a royal settlement with some eye popping details.

[Darian Woods]

That's all after the break.

[NPR]

This message comes from Charles Schwab. When it comes to managing your wealth, Schwab gives you more choices like full service, wealth management and advice when you need it. You can also invest on your own and trade on Think or swim. Visit schwab.com to learn more. This message comes from Charles Schwab. When it comes to managing your wealth, Schwab gives you more choices like full service, wealth management and advice when you need it. You can also invest on your own and trade on thinkorswim. Visit schwab.com to learn more.

[Charles Schwab]

This message comes from Energia, where everyone can invest directly in solar energy projects across the world's most profitable renewable markets. Since inception, Energia has helped investors realize a 12% return while earning steady monthly dividends. It's a smart, impactful way to diversify outside the stock market with real assets. Learn [e-mail] NPR Past performance is not indicative of future results. All investments carry risk, including the potential loss of principal. This message comes from Grammarly. At an enterprise level, nothing is more important than communication. Grammarly for enterprise enables your team to work smarter and faster. Other AI tools can't quantify business impact, but Grammarly gives you actionable insights and measurable results with features like their effective Communication Score, which tracks key metrics so you can make data driven decisions to improve outcomes. Learn [e-mail] Enterprise ITS Indicators of the.

[Waylon Wong]

Week Darien, you're up first today.

[Darian Woods]

My indicator is $500 billion and that was the focus of a White House press conference on Tuesday. Future, a new American company that will.

[Waylon Wong]

Invest $500 billion at least in AI.

[Jeff Guo]

Infrastructure in the United States.

[Darian Woods]

And President Donald Trump stood at the podium flanked by tech titans Larry Ellison and OpenAI Sam Altman as well as tech investor Masayoshi Son. He was announcing that this new company would immediately invest billion in building new servers to run AI models. It would then aim to invest a total of $500 billion within four years.

[Waylon Wong]

That's a lot of money even for a tech company. You know?

[Darian Woods]

Yes. And what I really want to talk about today is how this $500 billion price tag highlights something unusual about the economics of AI.

[Waylon Wong]

I'm listening.

[Darian Woods]

So, to set the scene, a big reason we have tech monopolies like Google or Microsoft is because it costs a lot of upfront money to build a good search engine or spreadsheet. So, but then each new search result or copy of Microsoft Excel costs the company close to zero, as economists say, the marginal cost is really low. And so that means it's hard for competitors to go up against a Google or a Microsoft. The tech giants have done that upfront investment, building their products and can do whatever it takes to retain customers. But for AI, the cost of that question you're asking ChatGPT or Claude is not close to zero.

[Waylon Wong]

The other week, my husband was like, we should ask ChatGPT about this. And I was like, but what about our utility bill? And I was obviously being flipped. But I've read that each AI query takes enough energy to power a light bulb for a few minutes, like a lot of electricity.

[Darian Woods]

Yeah, it's 10 times more energy than a traditional Google search. And that's for the common models. The more advanced AI models are way more intensive, and that's where the old economic framework of super low marginal costs might be quite different for AI. If the costs of an AI query is still quite expensive, a company like OpenAI might not be able to amass as much domination as the old tech companies did.

[Jeff Guo]

Right, because it's not enough just to have the best AI models. You also have to have the giant data center to back it up.

[Darian Woods]

That's right.

[Jeff Guo]

Okay, well, my indicator this week, coincidentally, also has to do with AI, but it has to do with these AI models. So on Monday, a company released what might be the most powerful AI model in the world right now.

[Darian Woods]

Okay.

[Jeff Guo]

Yeah.

[Waylon Wong]

Whoa.

[Jeff Guo]

Yeah, but it wasn't OpenAI. It wasn't Google or Meta. It was this little Chinese startup called DeepSync. And apparently their new model, it goes toe to toe with the most powerful model from OpenAI itself. Deepseek claims that it even beats OpenAI's model on certain math tests.

[Waylon Wong]

So people kicked the tires on this.

[Jeff Guo]

Well, that leads me to my indicator of the week, which is the number zero. Because this super powerful new AI model, it is free, it is open source. Deepseek released the whole thing to everybody on Monday.

[Darian Woods]

Oh, so anybody can download it and run this model?

[Jeff Guo]

Yeah, they've even released, like, smaller versions of the model you can run on your laptop. So that is what I've been downloading literally right now. So.

[Waylon Wong]

So hang on, what's your status bar? How long do we have to sit here? Jeff, Wait, so.

[Jeff Guo]

No, no, no, it's downloaded. Hold on, let me share my screen for a second. Yeah, all I gotta do, I hit run. Would you like to meet your new AI overlord?

[Darian Woods]

Sure.

[Jeff Guo]

Anybody wanna ask a question?

[Waylon Wong]

What is the sound of one hand clapping?

[Jeff Guo]

What is the sound of one hand clapping?

[Darian Woods]

Let's do it.

[Jeff Guo]

It's processing. Okay. So you see, it takes you through its like chain of thought. So it's like, okay, I'm trying to figure out this question about one hand clapping. Is it this like a, is it like a philosophical question? Is it a riddle? Yada, yada, yada. So it just goes on and on and on.

[Waylon Wong]

Oh, it's so chatty.

[Jeff Guo]

Yeah. And it like self critiques itself to try to find holes in its own answer. And it kind of just like goes in circles and circles.

[Waylon Wong]

It said in summary and now it's giving us a numbered list with more answers.

[Jeff Guo]

Yeah. So this is a huge deal in the world of AI. It's a huge deal for the entire world for two reasons. Number one, there are like major geopolitical implications, right? Because for the past few years, the US has been trying to slow down China's AI progress. It's been blocking the sale of advanced microchips to China.

[Darian Woods]

Seems like that hasn't worked.

[Jeff Guo]

Yeah, it seems like even without those advanced chips, Chinese companies are still able to make cutting edge AI.

[Darian Woods]

Which maybe relates to my point earlier about the economics of AI being perhaps different than traditional software. Even more so if the actual research and development is more easy to copy, but then the actual running is where that's going to be costlier and require companies competing to do.

[Jeff Guo]

Yeah, exactly. That's kind of the other reason this is such a big deal. Because, you know, companies like OpenAI, they've been able to charge a premium because they have, you know, supposedly the most advanced models in the world, but now they're competing with free. And on top of that, you know, they have all these data center costs that they have to, you know, pay. This is your new AI overlord. This is the cutting edge right here in front of us.

[Darian Woods]

So what's the TLDR on our clapping question?

[Jeff Guo]

So while physically there's no sound from one hand clapping, metaphorically, it speaks to individuality, focus, and the limitations of singular actions without sound support.

[Darian Woods]

Thank you. Thank you. Deep sea.

[Waylon Wong]

Very thoughtful. Okay.

[Darian Woods]

It really is deep. And that brings Us to your indicator whan across the very deep Atlantic to the United Kingdom.

[Waylon Wong]

That's right. My indicator is about Prince Harry, AKA the Duke of Sussex. He settled a lawsuit against News Group Newspapers. This is the Rupert Murdoch owned media company that Prince Harry had accused of hacking his phone and doing other unlawful things. So as part part of this court settlement, the company issued a, quote, full and unequivocal apology for intruding into Prince Harry's private life for 15 years. That is my indicator. 15 years.

[Darian Woods]

And so this is the same phone hacking scandal that we've been hearing about in the news for quite a long time.

[Waylon Wong]

Yes, this scandal is almost 20 years old. Depending on where you want to start. The timeline. And the settlement with Prince Harry comes at the last minute. The two sides will now avoid a trial. And there actually have been over 3, 1300 settlements in this scandal. Murdoch's companies have paid out over a billion dollars in settlements over the years.

[Jeff Guo]

Wow. So did Prince Harry get what he wanted?

[Waylon Wong]

Well, he did get an undisclosed amount of money. The New York Times reported that it was at least $12 million. He also got a public apology, plus an apology to his late mother, Princess Diana, for the intrusion into her private life when Prince Harry was young. But the thing is that he had also talked about how airing all of this out in a trial was necessary for full accountability. And now there's no trial. And what I found really interesting is that economics might have played a role here.

[Darian Woods]

Okay, so some game theory.

[Waylon Wong]

Yeah, it's always time for some game theory. So under British law, if they had gone to trial and Prince Harry had won, but the damages he got awarded were less than the settlement offer, he would have had to pay the other side's legal costs.

[Darian Woods]

And that could be a lot of money, even for a prince or a duke or whatever his title is now.

[Waylon Wong]

Yeah, I mean, last year, the actor Hugh Grant settled his lawsuit against the same Murdoch owned media company. And he said at the time the prospect of having to pay the other side's legal costs was just too risky. Like he couldn't, he couldn't do it. So I think he said something like, I am shying from that fence, which I think is like an equestrian thing. But I'm not sure.

[Darian Woods]

And this is not the way it.

[Waylon Wong]

Works in the U.S. uh, no. So I think the incentives are quite different when it comes to settling this kind of thing.

[Darian Woods]

He's just a boy standing in front of a court asking to settle a super expensive lawsuit.

[Jeff Guo]

Darion.

[Waylon Wong]

And the Oscar goes to Darian woods, who Would you like to thank Darian? Well, I'll do it. This episode was produced and fact checked by Julia Richie with engineering by Neal Rauch. It was edited by Paddy Hirsch. Kicking Cannon is the show's editor, and the indicator is a production of npr.

[NPR]

This message comes from Mint Mobile. From the gas pump to the grocery store, inflation is everywhere. So Mint Mobile is offering premium wireless starting at just $15 a month. To get your new phone plan for just $15, go to mintmobile.com Switch this message comes from Mint Mobile. From the gas pump to the grocery store, inflation is everywhere. So Mint Mobile is offering premium wireless starting at just $15 a month. To get your new phone plan for just $15, go to mintmobile.com Switch this message comes from Warby Parker. What makes a great pair of glasses at Warby Parker? It's all the invisible extras without the extra cost, like free adjustments for life. Find your [e-mail] or visit one of their hundreds of stores around the country.