Topic: Ibm

IBM shares dropped 13% following reports that AI models like Claude can now effectively program in COBOL, threatening IBM's legacy mainframe service business. While AI can handle basic coding, the hosts argue that troubleshooting complex Linux kernels still requires human expertise due to persistent AI hallucinations.

IBM CEO Arvind Krishna expressed skepticism regarding the return on investment (ROI) for current AI spending, noting that a one-gigawatt data center costs $80 billion to build. Krishna argues that the industry would need $800 billion in annual profit just to cover the interest on the projected $8 trillion in capital expenditures. Furthermore, internal studies at companies like NVIDIA reportedly show no significant productivity gains from current AI technologies.

A major IT outage at Brussels Airport and other European hubs is attributed to software issues at Collins Aerospace, a defense contractor. The hosts speculate on whether this was a cyberattack or a competitive "hit job." This leads to an anecdote about the 1990s "OS/2 Warp" era and Steve Ballmer's alleged attempts to crash IBM's "crash-proof" operating system.

Wall Street and major tech firms like IBM and Google are shifting their focus from AI to quantum computing as the next major investment frontier. Physicist Michio Kaku appeared on 60 Minutes to describe quantum processors as "godlike" machines that compute using atomic forces. Skeptics point out that despite a decade of hype, there is no evidence of a programmable, operationally efficient quantum computer that can solve real-world problems.

The Western Area Power Administration (WAPA) is identified as a key distributor of smart grid grants under the 2009 Recovery and Reinvestment Act. Major corporations like IBM and GE are reportedly receiving billions to develop an interconnected network that includes tracking livestock via RFID chips. The hosts suggest the "smart grid" is a tool for total instrumentation of the economy and environment.

The hosts predict that IBM's Watson AI will eventually be used as a propaganda tool to validate climate change models. They also introduce a "logical trap" for climate activists: if one believes in both man-made global warming and "peak oil," then the climate problem is self-solving as fossil fuels will inevitably run out. This inconsistency is cited as the reason why officials like John Holdren oppose peak oil theory.

NPR CEO Katherine Maher's family background is examined following the discovery of her father's obituary. Gordon Roberts Maher, who worked for IBM in Saint-Germain-des-Prés, France, was rumored in family lore to have been a post-war spy. The obituary details his familiarity with the Port of Aden and his roles at Goldman Sachs and UBS, suggesting a lineage of intelligence-adjacent careers.

A prediction from the archives suggests that following its success on Jeopardy, the IBM Watson supercomputer would move into medical research and eventually secure climate research contracts. The forecast posits that Watson will be used as an authoritative voice to declare climate change as settled science. This follows an actual five-year agreement between IBM, Nuance, and Columbia University Medical Center.

IBM Watson's deal with health insurer WellPoint is highlighted as a fulfilled prediction. A new prediction suggests Gabrielle Giffords will run as Vice President alongside Barack Obama. Additionally, the discussion covers FBI investigations into Anwar al-Awlaki and his contacts prior to the September 11 attacks.

The hosts revisit the IBM Watson Jeopardy win, noting that IBM has now launched "Patient Care and Insights" using Watson technology. They mock the industry's use of the acronym "NLP" for natural language processing, claiming it was hijacked from neuro-linguistic programming.

The hosts revisit their prediction about IBM Watson being used for cancer diagnosis in hospitals. They compare modern AI investments to the "medical expert systems" of the early 1980s, specifically mentioning the "Rex" system.

As the AI hype cycle potentially cools, the tech industry is pivoting toward quantum computing as a solution for climate change and battery efficiency. Companies like BMW and Daimler are reportedly investigating quantum simulations, though skeptics argue the technology remains alien and unproven, serving primarily as a reason for Nvidia to sell expensive chips.

An investigation by James O'Keefe features internal video of IBM CEO Arvind Krishna discussing the use of quotas and financial coercion to enforce diversity hiring. The report alleges that executives were held accountable or terminated if they failed to meet specific racial and gender hiring percentages.

IBM suspended its advertising on X citing an "unacceptable situation" regarding hate speech, which is noted as ironic given the company's historical collusion with Nazi Germany. Author Edwin Black's book "IBM and the Holocaust" details how the company provided punch-card technology used in concentration camps. The mass exit of advertisers is characterized as a coordinated pressure campaign rather than a standard business dispute over ad placement.

Jefferson County Public Schools in Kentucky experienced a "meltdown" after using an AI-driven mathematical model to redesign bus routes, leaving children stranded until 10 p.m. The district's $200,000 investment in the technology resulted in a total system failure and school closures. Additionally, a listener reports that a major U.S. bank is attempting to replace human customer service knowledge bases with AI, despite internal skepticism.

Producer Matthew Rackwall describes his experience with IBM Watson's AI, which erroneously suggested children's underwear ads for an article about child abuse. The AI was eventually relegated to simple keyword matching for sports articles. Other donations are acknowledged from Alan Green of Tier One Concealed and Surveilled, who is promoted to Viscount of FEMA Region 4.

Technical details regarding airline reservation systems reveal that while COBOL is used for accounting, core functions like ticketing and seating often run on IBM assembly language and the Transaction Processing Facility (TPF) operating system. These legacy systems remain in use due to their unmatched transaction processing speed. The history of outsourcing code to India in the 1990s is noted as having had mixed results for the industry.

The hosts reflect on past tech failures like IBM's Watson and Google Glass, comparing current AI hype to these "flops." They criticize tech evangelist Robert Scoble for his over-enthusiastic support of AI, noting that human ears can still distinguish between organic and synthetic music.

A retrospective on the failure of IBM's OS/2 operating system recalls a moment when Steve Ballmer publicly crashed an "uncrashable" demo at a trade show. The story serves as a reminder of the cyclical nature of tech hype and the historical rivalry between IBM and Microsoft. One of the hosts mentions owning a rare Microsoft OS/2 lapel pin, which may be sold on their Etsy store.

President Biden visits Syracuse, New York, to highlight a $100 billion investment by Micron to manufacture semiconductor chips. During his remarks, he struggles to recall the name of IBM's headquarters in Armonk, New York. The President's frequent references to his time in law school at Syracuse University are noted as a recurring theme in his regional speeches.