Is That Legal? Plus, DeepSeek and the A.I. Bubble.
Feb 1, 2025
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Dahlia Lithwick, a senior editor at Slate and host of Amicus, discusses the legal complexities of Donald Trump's executive orders and their clash with existing laws. Ed Zitron, host of Better Offline, dives into how the rise of DeepSeek, a Chinese AI chatbot, threatens to deflate America’s AI bubble. They analyze the overhyping of AI by tech moguls and the gap between public expectations versus actual capabilities of generative AI. The duo calls attention to the industry’s unsustainable trends and the possible ramifications of a bubble burst in tech.
The legality of Trump’s executive orders raises concerns about governmental overreach and their efficacy as binding legal instruments.
DeepSeek's emergence as a competitive AI model from China disrupts the American tech sector, challenging prevailing assumptions about innovation resources.
Legal expert Dahlia Lithwick emphasizes the troubling trend of executive overreach, likening it to Schrodinger's Constitution, where legality is ambiguous.
Deep dives
The Legal Ambiguity of Executive Orders
Executive orders from the Trump administration raised significant concerns about their legality, emphasizing that these documents often act more as letters of intent rather than binding legal instruments. Observers noted that treating executive orders as enforceable laws could lead to paralysis in government operations. For instance, the administration's attempts to freeze federal spending were criticized, with legal experts suggesting such actions may violate established laws like the Impoundment Control Act. The dialogue highlighted a broader issue of governmental overreach and the potential for executive orders to be used as tools for political maneuvering rather than legitimate governance.
Impact of AI Developments on Financial Markets
The emergence of DeepSeek, a new AI chatbot developed in China, has significant implications for the American tech market, contributing to a substantial sell-off on Wall Street. In just one day, the tech-heavy NASDAQ saw a drop of over three percent, shaking investor confidence and resulting in staggering losses for companies like NVIDIA. Observers noted that DeepSeek's advancements challenge the notion that only massive, resource-rich American companies can dominate the AI landscape, as it achieved results with far less investment. This disruption signals an urgent need for American companies to reassess their strategies in response to evolving global competition in the AI sector.
Confusion Over Federal Funding Control
The Trump administration faced backlash from the legal community regarding its efforts to control federal spending through executive orders, which some critics deemed unconstitutional. The Office of Management and Budget (OMB) initially issued a memo to freeze substantial funding, which ignited chaos across various government agencies. Although the OMB subsequently rescinded the memo, the existence of such orders revealed underlying tensions about the executive branch's authority over financial appropriations decided by Congress. The situation underscored a troubling pattern of potential misuse of power that could undermine democratic principles and institutional integrity.
Dahlia Lithwick's Analysis of Executive Overreach
Legal expert Dahlia Lithwick described the perplexing consequences of the Trump administration's approach to executive orders, likening it to Schrodinger's Constitution, where laws exist in a state of confusion and contradiction. She pointed out that while executive orders appear to grant the president extraordinary powers, they often lack any real legal enforceability, which can lead to significant governmental dysfunction. Lithwick argued that the executive overreach exemplifies a dangerous trend where the executive branch attempts to act independently of legislative oversight, potentially setting a precedent for future administrations. The implications of this are profound, suggesting a shift towards a more centralized and potentially authoritarian mode of governance.
Challenges for America's AI Landscape
The introduction of DeepSeek as a competitor in AI technology forces American firms to confront a fundamental question about innovation and competition. DeepSeek's ability to produce advanced AI models at a fraction of the cost challenges the traditional narrative that high-end hardware and extensive resources are prerequisites for success in AI development. Many experts argue that the complacency within Silicon Valley has led to a stagnation of genuine innovation, relying instead on inflated narratives that do not reflect the achievable capabilities of AI. As competition shifts and new players emerge, American companies may need to reevaluate their priorities and strategies to sustain their positions in the global tech arena.
President Donald Trump has signed dozens of executive orders since returning to office. On this week’s On the Media, how the directives are butting heads with existing laws. Plus, what the DeepSeek saga reveals about American A.I.
[01:00] Host Brooke Gladstone sits down with Dahlia Lithwick, a senior editor at Slate and host of the podcast Amicus, to discuss Donald Trump’s attempt to freeze billions of dollars in federal funding, the legality of the president’s litany of executive orders, and how political paralysis is the point.
[21:00] Brooke speaks with Ed Zitron, host of the Better Offline podcast and author of the newsletter Where’s Your Ed At on how the release of a new Chinese AI chatbot model, DeepSeek-R1, threatens to burst the American A.I. bubble, and how tech moguls have gotten away with overhyping A.I. for years.
[38:14] Brooke continues the conversation with Ed Zitron, peeling back the facade to explore what generative A.I. can actually do.
On the Media is supported by listeners like you. Support OTM by donating today (https://pledge.wnyc.org/support/otm). Follow our show on Instagram, Twitter and Facebook @onthemedia, and share your thoughts with us by emailing onthemedia@wnyc.org.
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