2026-07-17

Mira Murati's 975B Open Model, Ramin Hasani on Post-Transformer AI, and Demis' AI FINRA | EP #271

The Moonshots crew debates a wave of frontier-lab CEOs (Altman, Musk, Hassabis) calling for AI regulation modeled on FINRA, and a reported White House proposal to peg US open-weight model releases to China's pace, with the group split between seeing this as necessary safety infrastructure and as regulatory capture. Mira Murati's Thinking Machines Lab ships Inkling, a 975B-parameter open-weight MoE model, sparking discussion of on-prem fine-tuning as the new competitive battleground. A London startup's claimed recursive self-improvement result draws sharp pushback from guest Ramin Hasani (Liquid AI), who argues it isn't true weight-level RSI and walks through Liquid's own worm-brain-inspired liquid neural network architecture, its automated architecture-search pipeline (AFMD), and its on-device deployments with Mercedes-Benz and Shopify. The episode closes with Palmer Luckey's controversial call to expand classified national-security patents, AI models now beating physicians on medical benchmarks, and a new enzyme from Revel Pharmaceuticals that reverses age-related protein damage (AGEs) in human tissue.

▶ Watch on YouTube

Topics

Frontier lab CEOs call for AI regulation (FINRA-style standards body) AI ▶ 4:24
Sam Altman, Elon Musk, and Demis Hassabis have all separately called for AI regulatory bodies, with Hassabis proposing a FINRA-modeled, industry-funded frontier AI standards body operational by end of year. The group debates whether this is genuine safety planning or regulatory capture that locks out smaller labs.
White House capability-ceiling proposal tied to China's open models Geopolitics ▶ 21:26
A reported White House framework would let US labs release open models as long as they stay at or below the capability level of China's best open-weight model, effectively letting Beijing set the ceiling. The panel calls this a perverse incentive and a 'trade dispute' framing of the AI race.
Mira Murati's Thinking Machines Lab ships Inkling, a 975B open-weight model AI ▶ 26:00
Thinking Machines Lab released Inkling, a 975B-parameter (41B active) mixture-of-experts open-weight model trained on 45 trillion multimodal tokens, positioned as a western counterweight to DeepSeek and Qwen. It benchmarks above Nvidia's Nemotron but below China's GLM 5.2.
Fine-tuning and on-prem model customization as the new business battleground AI ▶ 35:55
The panel discusses why enterprises increasingly want fine-tuned, on-prem open-weight models rather than sending proprietary data to closed frontier APIs (the 'Alex Karp' data-leakage argument), and debates whether Thinking Machines' fine-tuning-as-a-service bet is durable or a wager on a passing reinforcement-fine-tuning paradigm.
WeCo AI's AIDE² recursive self-improvement claim AI ▶ 43:11
London startup WeCo AI (transcribed as 'Wo AI'/'WICO') claims early experimental evidence of recursive self-improvement, with an outer AI agent rewriting an inner agent's code and research strategy, claiming 8 days of machine self-improvement beat two years of expert human effort. They also publish a 0-3 RSI maturity scale.
Ramin Hasani's rebuttal: true recursive self-improvement requires weight changes AI ▶ 48:56
Ramin Hasani argues WeCo AI's result is impressive engineering but not real RSI, since it only rewrites code/prompts around fixed-weight models rather than retraining weights, and estimates the compute cost of true weight-level self-improvement is currently intractable.
Malaysian PM's AI digital twin and the rise of leader avatars AI ▶ 1:02:36
Malaysia's PM Anwar Ibrahim is preparing an AI clone of himself for public communications across Malaysia's 135 languages, following Albania's AI cabinet minister. The panel predicts corporate CEOs, religious leaders, and eventually AI Peter/AI Dave-style avatars will follow, potentially becoming bidirectional rather than broadcast-only.
Liquid AI's origin story and liquid neural networks AI ▶ 1:14:32
Ramin Hasani recounts founding Liquid AI out of MIT CSAIL research on C. elegans (a 302-neuron worm) to build continuous-time, analog-inspired neural architectures as an alternative to the transformer, and describes Liquid's automated architecture-search framework (AFMD/STAR) for finding efficient architectures per deployment target.
Mercedes-Benz on-device small language model deployment AI ▶ 1:23:08
Liquid AI is shipping a sub-1GB multimodal model that runs on cheap in-car chips ($60-class, 2-8GB RAM), giving Mercedes vehicles offline, private, function-calling access to 700-1,200 in-car functions, rolling out via a 600MB over-the-air update to North American 2022+ vehicles.
Palmer Luckey's push to expand classified national-security patents Geopolitics ▶ 1:39:36
Anduril's Palmer Luckey argues the patent system is a national security liability because disclosure requirements let adversaries harvest US inventions, and proposes massively expanding the 1951 Invention Secrecy Act's classified-patent mechanism. Alex Wissner-Gross calls this a misreading of how the Act actually works and a bad idea overall.
AI diagnostics now beating physicians (GPT-5.6, Meta Muse Spark 1.1) Health ▶ 1:48:10
GPT-5.6 set a new high on OpenAI's HealthBench Professional and beat specialty-matched physicians with full internet access in a ~20,000-judgment blind test. Meta's free Muse Spark 1.1 then beat GPT-5.6 on the same benchmark at 7x lower cost, reaching Meta's 3.56 billion daily active users.
Revel Pharmaceuticals' enzyme reverses age-related glycation damage Longevity ▶ 1:52:36
Revel Pharmaceuticals (with Calico) published an engineered enzyme called CMLA that reverses advanced glycation end-products (AGEs) - sugar-protein cross-links long considered irreversible drivers of aging - restoring healthy protein structure in human tissue samples from elderly donors.

Predictions made

open Peter Diamandis: A formal AI regulatory body or structure will emerge
EP #? · · due: end of 2026 · ▶ watch
“my guess is we see this before the end of the year and the question is can we see something that's intelligent”
Your call:
open Demis Hassabis (reported): A US-led FINRA-modeled frontier AI standards body will be up and operational
EP #? · · due: end of 2026 · ▶ watch
“He reportedly wants this up and operational before the end of the year”
Your call:
open Ramin Hasani: Models will emerge whose capabilities exceed current human understanding of them
EP #? · · due: within about 2 years · ▶ watch
“you're going to see like unbelievably kind of models like probably in the next 2 years or so, you know, like models that are like going above our our understanding”
Your call:
open Dave Blundin: AI digital-twin avatars of political and public figures will become the dominant medium for political outreach
EP #? · · due: next election cycle, about 2 years · ▶ watch
“it should be easily dominant two years from now in the next election... once people realize that there's no going back. It's going to be huge.”
Your call:
open Dave Blundin: The US will trade-embargo countries that don't respect intellectual property rights amid an accelerating AI-driven innovation boom
EP #? · · due: within the next couple of years · ▶ watch
“the likely outcome of that is the US will trade embargo anybody who doesn't respect intellectual property rights... that's going to happen soon like in the next couple of years”
Your call:

Numbers that matter

Worth digging into

🕳️ WeCo AI's AIDE² recursive self-improvement claim and 0-3 RSI scale
It's self-reported, unconfirmed by outside parties, and Ramin Hasani directly disputes that it constitutes true weight-level RSI - a live methodological dispute worth tracking for independent replication.
🕳️ Liquid AI's automated foundation model design (AFMD/STAR) architecture search
An unbiased search process reportedly reconverged on the same gating mechanism from Liquid's original liquid-neural-network paper, suggesting a real architectural signal beyond marketing - relevant to the broader post-transformer architecture debate.
🕳️ Revel Pharmaceuticals' CMLA enzyme reversing advanced glycation end-products
A category of aging damage long considered permanent (AGE cross-linking) was shown reversible in human tissue samples - directly relevant to the Longevity Escape Velocity thesis discussed on the show.
🕳️ White House capability-ceiling proposal pegging US open releases to China's pace
A genuinely novel and contested regulatory mechanism with game-theoretic implications (incentivizing China to advance faster) that the panel found 'perverse' and worth continued scrutiny.
🕳️ Palmer Luckey's proposal to expand classified national-security patents
Directly disputed on air (Alex Wissner-Gross calls it a misunderstanding of the 1951 Invention Secrecy Act), with big implications for how much transformative tech might already be classified/confiscated without public knowledge.