AI: Is Bigger Better? The Environmental and Social Cost of Large Models | Karen Hao (AI Journalist)

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As AI models grow larger and more powerful, they promise incredible capabilities — but at what cost?

Karen Hao is a journalist and former engineer who writes about the impact of artificial intelligence on society for The Atlantic and other top publications.

On this episode of CRAFTED., we discuss whether the largest AI models are worth their hefty footprint: They consume massive amounts of electricity and water and Karen argues that smaller models better balance cost vs. benefit.

Karen will also provide a view of AI from outside — far outside — Silicon Valley. She’s reported on AI from across the Global South and we’ll hear about the fight over data centers in Chile, how New Zealand’s Maori people are using AI to preserve their indigenous language, and why it’s a problem that AI can speak any language, but can only really be policed in a few.

Key Moments:

• (01:51) - - The view of AI from the Global South
• (04:42) - - Data centers are thirsty and their benefit is unclear to locals in Chile (and elsewhere)
• (09:50) - - GenAI is English-first: Why it’s not as safe in other languages
• (12:46) - - Why some activists call AI a new form of “colonialism”
• (15:24) - - Indigenous communities innovating with AI
• (18:20) - - The case for smaller AI models
• (20:14) - - Why open source AI is so important
• (25:43) - - AI and the environmental impact: Karen’s reporting on Microsoft’s “hypocrisy”
• (29:14) - - Are big AI models worth the cost?
• (35:30) - - How Karen trains journalists to cover AI

Where to find Karen:

• Website: https://karendhao.com/
• X: https://x.com/_KarenHao
• LinkedIn: https://www.linkedin.com/in/karendhao/
• Threads: https://www.threads.net/@_karenhao

Articles Mentioned:

• Microsoft’s Hypocrisy on AI (The Atlantic)
• A new vision of artificial intelligence for the people (MIT Technology Review)
• AI Is Taking Water From the Desert (The Atlantic)

Where to find Dan Blumberg:

• Website & newsletter: https://www.crafted.fm
• LinkedIn: https://www.linkedin.com/in/dblums/
• X: https://x.com/dblums

CRAFTED. is produced by Modern Product Minds, where CRAFTED. host Dan Blumberg and team can help you take a new product from zero to one... and beyond. We specialize in early stage product discovery, growth, and experimentation. Learn more at modernproductminds.com

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Help improve CRAFTED. Please take this quick 5m survey. You might win a prize. Thanks!