
What Bitcoin Did
#155 - Connor Leahy - "We Don't Know How It Works": An AI Engineer's Warning
Why It Matters
The episode underscores the urgent need for deeper scientific understanding and governance of AI, as opaque systems could outpace our ability to manage their risks. As AI becomes increasingly integrated into daily life, recognizing its unknowns is crucial for policymakers, developers, and the public to ensure responsible deployment and avoid unintended consequences.
Key Takeaways
- •Intelligence mechanisms remain fundamentally unknown for brains and AI
- •Transformers enable general‑purpose pattern learning, scaling with data
- •Open‑source LLM work became unsustainable due to safety concerns
- •Neural networks operate on trillions of opaque parameters
- •Control loss risk emerges before any AI‑driven extinction
Pulse Analysis
The episode opens with a stark reminder: despite rapid progress, we still lack a scientific theory of intelligence. Both the human brain and modern neural networks are described as "black boxes"—vast collections of numbers whose inner workings elude clear explanation. This uncertainty fuels a sense of magic around large language models, as engineers can produce astonishing outputs without truly understanding the underlying processes. For business leaders, the takeaway is clear: deploying AI without grasping its limits can expose organizations to unexpected behavior and hidden failure modes.
Connor traces the turning point to the 2017 transformer architecture, which turned deep learning from a niche tool into a universal pattern learner. By scaling data and compute, transformers evolved from simple word‑level predictors to the foundation of chatbots, image generators, and voice models. He recounts his early open‑source efforts with Llama AI, aiming to democratize research and improve safety, only to discover that maintaining transparent, community‑driven models became untenable as commercial pressures and safety concerns grew. The discussion highlights how the transformer’s attention mechanism, while mathematically simple, creates billions of hidden parameters that no one fully interprets, underscoring the gap between capability and comprehension.
The conversation culminates in a warning about loss of control. Connor argues that humanity may relinquish strategic oversight long before any catastrophic AI event, as systems become too complex to steer directly. This prospect has concrete implications for enterprises: robust governance, continuous monitoring, and investment in explainable‑AI research become essential. Companies leveraging AI clouds like Iron must balance performance gains with ethical safeguards, ensuring that rapid innovation does not outpace the ability to manage emergent risks. The episode serves as a call to action for leaders to prioritize transparency and accountability in AI strategy.
Episode Description
The engineers building artificial intelligence don't fully understand how it works.
Many people think AI is carefully engineered. In reality, it's closer to something being grown and these systems are evolving in ways even their creators struggle to predict.
AI researcher and former LLM builder Connor Leahy explains what's happening inside the labs: why the alignment problem remains unsolved, why the race to AGI is accelerating, and why the people leading it may be moving faster than they understand.
We also discuss AI risk, Silicon Valley's power dynamics, the Department of Defense's growing involvement and the rise of "AI psychosis."
TIMESTAMPS:
00:00:00 – AI Engineer Origins
00:07:47 – When GPT Changed Everything
00:12:47 – Inside Neural Networks
00:19:03 – How AI Actually Learns
00:27:58 – Growing Intelligence
00:31:19 – The Alignment Problem
00:36:41 – AI and Nuclear War
00:47:03 – Should AI Be Paused?
00:52:39 – AI Exhaustion
01:00:53 – Superintelligence Explained
01:24:02 – Who Controls AI?
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EDITED BY CONOR MCCORMACK
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