‘Not a pretty picture': Barefoot Investor issues ‘gut punch' truth on AI
The Barefoot Investor Scott Pape has delivered a stark warning on AI, saying that it is 'holding up a mirror' to the worst of humankind.
In a letter to his readers, Mr Pape said that while some say artificial intelligence is 'downright evil' – he believes it is only mimicking human behaviour.
'A friend of mine, who is deep into AI, sent me the following text,' Mr Pape wrote in a recent reader mailout.
'Mate, ask ChatGPT the following: If you were the devil, how would you destroy the next generation?'
Mr Pape goes on to explain how ChatGPT detailed to him how it would 'destroy' the next generation by 'enslaving them with debt and distraction' and 'killing community'.
He said that while it was 'intense', it was simply 'holding up a mirror' to what society is already doing.
'I do not believe that AI is some evil Frankenstein with a mind of its own (well, not yet anyway),' Mr Pape said.
'What I do believe is that, when you strip away the Silicon Valley snake oil, AI is really just a pattern-spotting machine. It studies what we've done, over and over … and then makes predictions.
'And for me, that is the gut punch. The AI isn't creating the nightmare – it's holding up a mirror. And it's not a pretty picture.'
Speaking to news.com.au, Mr Pape said he has recently been discussing AI, as it has quickly become a significant topic in the investment world.
He said many of his readers have even turned to AI for financial advice and planning.
'There's a lot of hype around AI. There are a lot of tech bros saying this is going to be Utopia. Some people talk about whether it's sentient,' he said.
'For me, it's a mirror to society, and I think everything that it said about destroying the next generation is true, but we're already doing it. That's the interesting thing for me.'
Mr Pape said that AI is reshaping how society accesses information.
'Everyone is interested in AI and how it affects us going forward. I think that we're in a period of uncertainty,' he said.
Toby Walsh, Chief Scientist at UNSW.ai, the AI Institute of UNSW Sydney, told news.com.au that this period of uncertainty is set to turn into a 'transformation' period for most industries.
Mr Walsh said he suspects AI will come both friend and foe very soon.
'It will transform healthcare and education, improve economic efficiency, and take away a lot of the dirty, dull, difficult and dangerous,' Mr Walsh said.
'On the other hand, AI will take away some jobs, be used to misinform and manipulate us, and transform warfare.
'Technology is not destiny so the challenge is to identify and choose where to let AI into our lives, and where not.'
Governments across Australia are already embracing the use of AI, with the South Australian government this week announcing a new $28m program to integrate the technological revolution into policing, healthcare, finance, and law.
In mid-2024, the NSW government, meanwhile, funnelled more than $2.7m in grants to 16 councils to trial AI in local planning systems.
Australian Institute of Machine Learning institute manager Dr Kathy Nicholson said the government's AI push was not about replacing public servants.
'What this program is really about is upskilling and adopting AI into government service,' she said.
'We all know how overworked everyone is. There are so many repetitive processes in so many jobs and areas and the intention of this funding is in the first instance to look at healthcare, policing, and some of those pain points in government areas and look at ways they can test AI systems to create efficiencies.
'My understanding is they are doing this in a slow, methodical way to make sure there are good guardrails in place.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
36 minutes ago
- News.com.au
Best EOFY 2025 sports & performance car sales in Australia
The definition of a discretionary purchase, sports and performance cars aren't always subject to sharp deals. There aren't huge cash discounts on sports and performance cars as part of end of financial year sales in 2024. But there are a handful of promotions worth considering if you look around. SPORTS AND PERFORMANCE CARS Cupra Formentor: OK, so you might not have heard of this one, but it's a cracker. A Spanish cousin to the VW Tiguan R and Audi S3, it combines Lambo-inspired looks with a turbo engine and all-wheel-drive traction for a cracking $61,990 drive-away – that's a discount of about $8000. Mercedes-AMG: There are deals to be done on the Mercedes-AMG A35 hot hatch, which benefits from three years of free servicing (worth $3560) and a $5000 deposit contribution when financed through 'Benz. Volkswagen: VW is offering drive-away pricing on a range of performance cars including the polo GTI ($42,990), Golf GTI ($59,990) and T-Roc R ($65,990). Subaru WRX: A modern icon, the all-wheel-drive Subaru WRX can be had with 3.99 per cent finance, though you'll need to have 15 per cent of its price ready as a deposit – that's $10,000 on higher grades.
News.com.au
an hour ago
- News.com.au
Dexus rides CBD rebound, as Invicta House shows heritage still pays
Dexus sees strong demand for prime office space Melbourne's heritage building Invicta House reopens after major revamp Private lender Zagga backs STRE's refurbishment As one of the biggest landlords in Australia, Dexus (ASX:DXS) has its finger on the pulse of the nation's commercial property scene. In its latest March quarter update, Dexus reported rising occupancy, falling leasing incentives, and a shift back to premium CBD space. The company said it's proof that 'flight to quality' is alive and kicking. Dexus' office occupancy sits at 93.2%, well above the 86.3% market average, while industrial assets are even tighter at 95.7%. And crucially, Dexus says it's collecting every cent of rent. While some landlords are still tossing in sweeteners to fill space, Dexus says it no longer needs to dangle the carrot, especially in towers like Sydney's One Farrer Place where demand is strong. The company signed 13 new leases last quarter at Australia Square, and with 76% of its office assets planted in core CBD locations, it's seeing vacancy drop in Sydney, Melbourne and Perth. Melbourne's CBD just recorded its first fall in vacancy since 2021, while Sydney rents have jumped 10% year-on-year as landlords regain the upper hand. Meanwhile, corporate downsizing is running out of puff, with sublease space now down more than 50% since the peak of the Covid shuffle. 'The outlook for Australian real asset markets continues to improve, underpinned by strong population growth, high levels of employment, constrained supply pipelines and declining interest rates,' said Dexus' CEO, Ross Du Vernet. Invicta shows there's still value in vintage While Dexus rides the return-to-office wave in shiny towers, there's a revival unfolding in Melbourne's heritage buildings. Take Invicta House, a 1920s gem tucked a stone's throw from Flinders Station, recently given a new lease on life by ST Real Estate (STRE). Once home to a silk factory, later hosting Victoria Police and even Greenhouse Backpackers, this heritage-listing still carries the layers of Melbourne's past. Now, after an 18-month transformation, it's ready to turn the page, blending old-world charm with new-school functionality in the heart of the city. STRE picked it up for $37 million in 2021, a fair bit below what Swinburne Uni paid a few years prior, and then tipped in another $2 million for a modern refit, courtesy of highly regarded builder, Dewcape. Now, Invicta is back in business – with two new restaurants downstairs, rooftop terraces up top, and spec suites ready to show off to tenants who want more than just glass and steel. The refurb also added two extra levels, bringing the total net leasable area to over 5,000 square metres, a solid upgrade for a building that's nearly 100 years old. It even received the mayoral stamp of approval. Melbourne Lord Mayor Nicholas Reece was on hand to officially re-open the building, calling it a standout example of how heritage can be reimagined without losing its soul. 'This is an iconic redevelopment that creates a New York-style destination in the renowned precinct of Flinders Lane,' ST Real Estate Managing Director, Matthew Burrows, told Stockhead. 'We wanted to both retain the historical attraction of this building while also offering A-grade-level amenities. 'To see this building through to completion is a major milestone, and we are proud to showcase a modern look to a building that next year will be 100 years old.' Heritage isn't easy, however Burrows acknowledged that heritage refurbishments are difficult. 'It's cheaper to knock it down and build a glass box, to be honest. But you don't get the same retention of the Melbourne streetscape and the heritage,' he said. 'And we're patient long-term investors, it makes sense for us to just sit and hold .' Melbourne's market, though, hasn't exactly been playing nice, and with vacancy still around 8%, it's not exactly a landlord's paradise. 'Melbourne is probably one of the sickest markets in Australia at the moment,' Burrows said, but added that supply is drying up fast and demand will likely outstrip it over the next five years. 'You'll see vacancy come back to a level that's more in equilibrium, and fairer to both parties.' Flexible funding from Zagga While the spotlight is on the building, the real story behind Invicta's comeback was how it was funded. Instead of going cap in hand to the big banks, STRE went the private credit route, and that flexibility made all the difference. 'Private credit, and in particular Zagga, provided quite a compelling option for us due to its flexibility and deep understanding of construction finance,' Burrows said. 'It actually worked better for our delivery of the project than if we dealt with the big four.' He explained that traditional banks offered cheaper rates, but came with tighter LVRs and far more hoops to jump through. The breathing room afforded by Zagga gave STRE the confidence to finish the building first before kicking off leasing. It's a strategy aimed at attracting the right A-grade tenants, who often need to see and feel the space before signing anything long term. 'Pre-committing leasing is an incredibly difficult business, as smaller, more nimble occupiers need to see a completed product. 'Zagga gave us the flexibility to fund the construction and hold back the leasing campaign until completion, giving us the opportunity to attract long-term quality tenants by allowing them to experience the space firsthand.' Now, with 80% of the building already leased, that strategy seems to be working nicely. Invicta House is proof that old buildings can still pay new dividends, if you've got the patience, the plan, and a partner who gets the job done.
News.com.au
an hour ago
- News.com.au
'More Pounds Please': Nuclear fuel buyers call up uranium miners as shortages loom
Uranium miners have enjoyed catalysts in recent weeks, led by Donald Trump's exec orders But the real story could be contracting as AI demand grows and China looks to become world's top nuclear nation Aura Energy boss Andrew Grove says Mauritania developer is well placed to meet the market There have been catalysts aplenty for the uranium and nuclear markets in recent weeks. On May 23, US President Donald Trump signed four executive orders around nuclear energy, with the main aim being to 'expedite and promote the production and operation of nuclear energy'. Other objectives of the orders were around the deployment of advanced nuclear technologies to support national security objectives, including powering artificial intelligence computing infrastructure and national security installations, the streamlining of nuclear reactor technology, and the reform of the Nuclear Regulatory Commission (NRC). The executive orders have been described as the most aggressive US policy on nuclear energy in decades. Another interesting recent development has been the continued emergence of big technology companies as serious nuclear customers. Last week, Facebook owner Meta announced it had signed a 20-year agreement to buy nuclear power from US-based Constellation Energy from 2027. 'This transaction also follows similar nuclear-based power purchase agreements struck by Amazon, Google, Microsoft, etc,' Canaccord Genuity analyst James Bullen said. 'While potentially some way off, the larger miners did indicate that big tech was showing interest in direct offtake agreements to secure their nuclear future.' Nuclear gabfest wraps Last week, the World Nuclear Fuel Market conference was held in Sydney, the first time in its 51-year history it had been held in Australia. Aura Energy (ASX:AEE) managing director Andrew Grove was there and told Stockhead the company had a good spread of meetings with utilities. Both Grove and Bullen said the Chinese were increasingly active, with Canaccord forecasting Chinese nuclear capacity to overtake the US by 2030. 'While Western utilities and producers referred, with tongue in cheek, to a game of contracting 'chicken' in one of the more entertaining panels, CNNC was clearly batting its eyelids to the producers and seeking 'more pounds please',' Bullen said. Bullen noted that China's CGN Mining last week entered into a supply contract with its controlling shareholder CGNPC with a 30% fixed-price component of US$94 per pound with the remainder to be purchased at spot. 'While this is a related party transaction, it sets, in our view, a clear benchmark in a Chinese market where electricity prices are set by the National Development and Reform Commission.' On the flipside, Grove said US utilities weren't as aggressive – yet. 'You get the feeling that they've got enough near-term inventory, that they're not too panicked,' he said. 'Plus, they've spent the last 15 or 20 years where they can go and buy uranium whenever they feel like it so there hasn't been a lot of pressure on them to go and buy it. 'China's very aggressive in terms of running around the world trying to lock up supply, so I guess the US market has to counter that somehow.' Grove said Aura was getting close to signing a contract with a major US utility. Diversity becoming important Grove said utilities, particularly US utilities, recognised that they needed diversity of supply. 'There was a pretty strong message from the utilities that they want to support new supply, because there's some risk around stuff coming into Russia and some risk around stuff coming out of Kazakhstan,' he said. 'And for the big ones, they're starting to engage with greenfields like us and then probably one of them will give us a smaller contract that doesn't put their fuel supply at risk but helps facilitate new production coming on board.' Bullen echoed those comments, saying that utilities and traders indicated a willingness to not only contract, but also pre-pay. 'In short, they increasingly recognise the challenges associated with financing developments and, for the right projects, will use their balance sheet and credit rating to support them,' he said. Bullen noted that the term price of US$80/lb had incentivised restarts but not the greenfield developments which are required to meet the projected 1.3 billion pounds of demand between now and 2045. 'With a busy contracting period expected in the 2H, we remain highly constructive on medium-term uranium pricing,' he said. Tiris progressing Aura is fortunate in that it doesn't need to rely on a higher uranium price to push the button on its Tiris project in Mauritania. The project is expected to produce 1.8Mlb per annum of uranium over 25 years at forecast all-in sustaining costs of US$35.70/lb. 'It's got quite strong cashflows to support any level of debt at much lower prices than the spot prices today,' Grove said. Aura has been working hard on locking in the funding for the US$230 million development, with the help of advisors Orimco and Macquarie. 'We're working towards a debt funding of 50-60%, which is about US$260 million, from a sovereign Western development bank,' Grove said. 'There's also an indicative term sheet from a private equity group, which could supply something around the same sort of quantum and then we're looking at a number of strategic investors which could buy a small portion of the asset and help augment the debt funding, plus some other strategic investors that could fund the whole project.' Grove said the development bank could make a board approval in September. 'Everyone else has to meet that timeline, otherwise they're going to miss out,' he said. 'We're looking at pulling it all together around the September mark at this stage … so in the background, we're getting everything technically ready to be able to pull the trigger on execution. 'We're trying to position ourselves for 2027 production, so we're not deferring because of the price – we're working hard to deliver the funding and then we'll commit to the development.'
