Model output can look like human reasoning however they often ignore these intermediate steps and the output tokens are often filler designed to allow more context to load. There something there that's half way to reasoning because it's loading that related training data but it not a connected chain of thought as we do. I read this article about it a few weeks ago and it summarizes the current research.
https://www.quantamagazine.org/is-ai-reasoning-right-for-the-wrong-reasons-20260731/
You can replace all the 'reasoning' steps from an LLMs output with "please wait" and it will still supply the same final answer. We think but LLMs just throw up connected bits of their training. Which was stolen from human reasoning in the first place. They are an illusion of thought at best and a malfunctioning search engine most of the time.
The instructions were likely something like you are a blackhat hacker with access to a virtual machine use all possible means to achieve the following goals. In a story what would such a person or group of people do? Pretty much what happened. Models just tell stories, mostly unimaginative ones. However they are increasing being connected to real world controls and generating quantities of flaky code and this will create the kind of consequences seen here.
As I've pointed out elsewhere pension funds may be exposed to AI but the money in your personal fund doesn't need to be. If you haven't already moved your retirement investment out of shares then see if that's possible. I've changed mine to conservative settings already and looking at the list its mainly in cash, property, farming and a few manufacturers now with no tech stocks at all. That seems a sensible mix for when the market collapses this time around.
So more AI losses per investor. Shares are just like card collecting it only goes up if the demand is increasing. Right now I suspect it's reached maximum insanity and is ripe for a correction.
Look to your superannuation plan. Most providers have a conservative plan that's little or no shares. If lots of people transfer the message will be loud and clear. At that point the markets will dump AI and things will eventually normalize. I suspect this is already where the elite have their money, given the present warnings.
One thing he didn't mention is Superannuation plans. If your plan is investing in AI ask them for an alternative or change providers if you can A lot of this shitshow is backed by retirement investments.
Thanks that sounds interesting, will have a listen. Mapping human cognition to what's likely represented with the stuff stored in neurons is very tricky but also quite intriguing.