Canada has one of the highest vaping rates in the world, with the Lung Health Foundation (“LHF”) estimating that 750,000 people aged 30 and under are engaged in daily vaping. In a ground-breaking initiative, Lung Health Foundation, in partnership with the Ontario Ministry of Education, is tackling the pervasive issue of youth vaping head-on. With teens representing a disturbingly high percentage of young people who vape every day, LHF calls this addiction “dangerously discreet” — often unnoticed by parents and teachers despite its widespread prevalence.
Mixed evidence aside, vaping remains a popular tool for adults looking to quit smoking — but usage patterns among youth tell a different story. Based on the most recent Canadian Tobacco and Nicotine Survey (CTNS), of Canadian teens who vaped in the last month, 69% have never smoked. In fact, several studies have found that young people who vape are much more likely to start smoking in the future, compared to youth who don’t vape. As vaping continues to infiltrate the mainstream, Lung Health Foundation efforts underscore the urgent need for awareness and intervention to break the cycle, especially in the most dangerous developmental years of teens who vape.
Empowering Youth to Break Free from Nicotine Addiction with Quash As World No Tobacco Day approaches on May 31, the Ministry of Education has provided $70,000 to the Lung Health Foundation to support an innovative school outreach initiative promoting the Foundation’s multipronged youth cessation program, Quash. This positive initiative aims to be the real-world solution to smoking and vaping by offering judgement-free support to high school students looking to quit, as well as education sessions for educators and parents. It targets over 100 schools across Ontario before the summer break.
Six Ontario school boards representing thousands of students are participating in the Quash school outreach pilot program: Toronto Catholic District School Board, Near North District School Board, Simcoe County District School Board, Simcoe Muskoka Catholic District School Board, Renfrew County District School Board and St. Clair Catholic District School Board.
Developed with funding from Health Canada, Quash combines a cutting-edge mobile app with comprehensive adult facilitator training. The Quash app, advanced with input from youth, draws on behavioural change theories like successful wellness apps Noom and Headspace. It empowers users to identify and overcome triggers, rewards progress towards quitting, and ultimately helps them regain control over addictive vaping habits, prioritizing their health and well-being.
A Holistic Approach to Nicotine Cessation The Quash program takes a holistic approach to nicotine cessation, recognizing the complex factors that contribute to addiction. Through virtual adult facilitator training, school staff and parents can gain valuable insights and strategies to support students on their journey to a vape- and smoke-free life.
The program’s website serves as a hub for information, resources and support, ensuring that students, educators and families have access to the tools they need to succeed. By addressing the issue of youth smoking and vaping head-on, the Ministry of Education and the Lung Health Foundation are taking a proactive step towards empowering the next generation to make informed choices and lead healthier lives.
“Simply talking about the problem will not make it go away, and advocating for change is no longer enough to curtail the growing health crisis among young Canadians who vape,” says Lung Health Foundation CEO Jessica Buckley. “The Lung Health Foundation, in conjunction with the Ministry of Education, recognizes there needs to be action that engages, educates and ultimately “quashes” the behavioural tendencies of teens who vape. We believe Quash accomplishes just that.”
“Think Noom for people who vape,” adds Buckley on the behavioural science behind Quash content. “It’s an integrated youth-driven and youth-developed program with real-world impact, distinguishing itself within its category by prioritizing youth input and engagement. Quash emerges as the most ambitious digital intervention tool today to assist youth in quitting vaping.”
The breathtaking truth about youth vaping:
Youth vaping is NOT harm reduction. Of youth 15-19 who have vaped in the previous 30 days, 69% have never smoked. In fact, young people who have used e-cigarettes are up to 3.6 times more likely to transition to smoking cigarettes compared to young people who have not.
Youth vaping is worsening health equity, especially among two notable demographics. LGBTQA+ youth are 1.5 times more likely to vape than heterosexual youth. Indigenous youth are 1.5 times more likely to vape than non-Indigenous youth.
Youth vaping is NOT a coping mechanism. 31% of 15-19-year-olds who vape report that it’s a form of stress reduction, making it the most common reason youth report vaping. Youth with poor mental health are almost two times more likely to vape. Some research has found that youth who vape are more likely to report anxiety symptoms, depressive symptoms and suicidal thoughts.
“Smash your goals (not your lungs)” “We’ll never stop highlighting the negative health effects of vaping, but this campaign takes the message even further by including facts that speak to youth values — like the way that vaping can negatively affect appearance or athletic performance,” explains Erin Dufour, Implementation Manager for Quash at LHF. “These messages sometimes resonate even better than talking about the very real danger.”
With presence in hallways, bathrooms, gyms, cafeterias, locker rooms and other student gathering areas, there will be theme-specific graphic promotions and materials that students will immediately notice. “By fostering open dialogue and providing actionable resources, LHF is committed to creating a healthier, vape-free future for Ontario’s youth,” adds Dufour.
“We know that vaping is addictive and can cause serious, harmful health issues, both physical and mental. With high rates of vaping and cannabis amongst youth, it is clear we must take bold action to safeguard children from this risk,” says Stephen Lecce, Minister of Education. “Ontario is introducing zero tolerance on vaping by expanding education and investing in new supports that help promote healthy decision-making and curbing this addictive behaviour. By partnering with Lung Health Foundation and other community organizations and public health agencies, our government is restoring focus, safety and personal responsibility back into Ontario schools.”
The campaign is set to spark not just real conversation and debate on vaping triggers and habits in schools and at home, but to arm students, parents, guardians and educators with the ultimate tool to break free from the grip of vaping addiction, says Buckley. “This is especially important for high schoolers leading into exams and summer vacation when the opportunities and freedom to vape unnoticed are more frequent.”
It Takes a Village to Stop Teen Vaping in Ontario High Schools To organizations like the Lung Health Foundation, fresh initiatives that deter vaping are a welcome early step in tackling this pervasive issue on high school campuses across Ontario. To move this work forward, the government is investing $17.5 million in new wrap-around supports for student mental health and parent engagement. This will include:
$15 million to provide supports for students at risk of addictive behaviours.
$1 million to partner with School Mental Health Ontario to develop webinars and resources targeted to parents and students across the province to learn how to talk about the adverse effects of vaping and excessive cellphone usage.
$1.5 million to Parent Involvement Committees and students to run local prevention campaigns to help deter vaping and cellphone distractions.
“Our job is to educate our students, but also to keep them safe,” says Emily Samuel, Principal at Near North District School Board, one of the six school boards participating in the pilot program. “The Quash program gives us critical tools to work with students, parents and our teachers in a highly proactive and meaningful way. It is through a well-constructed educational initiative like this that we can help to curtail the teen vaping crisis.”
“Every year we learn something new and scary about vaping,” says Buckley, describing the breathtaking truth on the urgent need to address youth and vaping. “Vaping research is still in its infancy. We’re one of the few North American lung health charities allocating funds to devoted vaping research over the next five years.”
About Lung Health Foundation The Lung Health Foundation is dedicated to improving lung health for all Canadians. Through a range of community initiatives, grass-roots educational programs, research, and advocacy, the organization elevates awareness and fosters a compassionate environment for those affected by lung conditions, including their caregivers. Building on the legacy of the Ontario Lung Association (OLA), which for over a century served as the recognized leader, voice, and primary resource in lung health, LHF has expanded its efforts nationally. To learn more visit lunghealth.ca or for further assistance email info@lunghealth.ca. Visit us on Instagram @lunghealthfoundation, Facebook at lunghealthfoundation/, and on X at @LungHealthFdn.
Legislators in Vermont have approved a measure that would establish a task force for psychedelic therapy. The group’s primary task would be to recommend how and whether the state should regulate legal access to psychedelic drugs such as MDMA and psilocybin. The legislation is now headed to the governor’s desk.
Last week, the senate approved amended language of the legislation, approving changes made in the house. In its present form, the legislation wouldn’t amend the legal status of any drugs. Rather, the working group would review the latest evidence and research on public-health risks and benefits of clinical psychedelic-assisted therapies and check out programs and laws of other states that have permitted psychedelic use by health-care providers in a therapeutic setting.
At the moment, psilocybin and MDMA both have breakthrough therapy status granted by the U.S. Food and Drug Administration (FDA). Additionally, recently conducted trials have demonstrated MDMA’s efficacy, putting the drug on track for possible approval by the FDA later this year.
In March, state senators approved an earlier version of the measure. These recent revisions were introduced as the bill advanced out of a house committee with a clear-cut change proposed by Representative Anne Donahue. The amendment eliminated a provision that directed that the working group offer opportunities for people with lived experiences to give their testimonies.
The change also removed the positions for members on the task force who represent the Brattleboro Retreat, a psychiatric and addiction hospital, and the Psychedelic Society of Vermont. It replaced these positions with representatives from Vermont Medical Society, a nonprofit, and the state Department of Mental Health.
In addition, the change eliminated a provision that would have directed that the task force offer possible timelines for equitable and universal access to psychedelic-assisted therapies while also assessing psychedelic criminalization in the state. As introduced originally, the bill would have legalized the possession and use of psilocybin. Legislators on the Senate and Welfare Committee removed this section during discussions and elected to focus on the therapeutic task force.
If enacted, the bill would establish an overdose prevention center that would have onsite professionals trained in overdose interventions, CPR, first aid and wound care, as well as medical evaluations to determine need for more emergency care. Vermont would also become the third state to permit the establishment of these facilities, after Minnesota and Rhode Island. Other states such as New York are also looking into similar programs that could be launched statewide.
The growing wave aimed at reforming psychedelics laws around the country is likely to be motivating start-ups such as Mind Medicine Inc. (NASDAQ: MNMD) (NEO: MMED) (DE: MMQ) to ramp up their psychedelic drug-development programs so that they can serve a public that is yearning for novel treatments against mental-health issues and other physiological ailments with underserved medical needs.
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The Automated Internet, the Conspiratorial Internet
& the Reconquista of the Real
By John Carter
‘Artificial Intelligence will drive us back into the real world’
You’re walking down the street. A pretty girl comes shuffling in the other direction, lost in her phone, navigating poorly by peripheral vision and barely aware of anything around her. Her mussed hair and rumpled jammies suggest she’s barely aware of her own appearance. You step to the side so she doesn’t bump into you. Your fingers twitch, and pull your own phone out of your pocket. What’s happening on Twitter? But before you even check, you see that one of your WhatsApp group chats updated. You look at that, and five seconds later you see that someone posted an interesting article. You click on it and start reading. A paragraph in, a notification pops up that someone just replied to you. You open Twitter to respond, but something in the feed catches your eye, eliciting an involuntary laugh; you start composing a reply.
Then you realize you’ve been standing on the sidewalk for the last five minutes. Where were you going?
Right! You were heading to the cafe. Get some work done, or at least pretend to. Maybe chat with someone there. You put your phone back in your pocket, and continue on your mission.
A few minutes later you’re seated in the cafe. There are a dozen other people there. All of them have their laptops or their phones out, even the ones sharing a table, who presumably came together. There’s no buzz of conversation. No one is talking, except maybe to their invisible friends. The only ambient sound is the algorithmically generated Spotify playlist that emerged from the fat barrista’s last choice of song several hours ago. No one is listening to it; everyone has their earbuds in, blotting out the world with their own algorithmically generated playlists. A dozen strangers, each encased in their own private audiovisual world, aware of one another only in their peripheral vision.
Your hand twitches towards your pocket.
Maybe something’s happening in the group chat.
You pull your phone out to check.
An hour later you blink.
What were you doing here?
What have you been doing for the last hour?
Where did that time go?
Who are these people?
Sometime over the last decade we all got sucked into this very online existence, this screen-mediated unlife. Software ate the world, and we became lost in our devices.
And it sucks.
The heady intoxication of our early explosion into virtualized reality has worn off. It’s the difference between getting drunk for the first few times as a teenager, and waking up as a middle-aged drunk, with yet another pounding hangover and no memory of what happened the night before. What was once a liberation, a dissolution of inhibition and ego boundaries, has become a compulsion, a necessity, a love-hate relationship with a thing that consumes your life but which you can’t live without.
Any given human has only one momentary locus of attention, one thing they can focus on at a time. It’s rare that you only spend 1 second looking at something; if we break it into one-minute chunks, you have about 960 attention loci to distribute throughout a waking day (assuming you get 8 hours of sleep … which you probably don’t). On the other hand, you might consider the 20 millisecond duration of a saccade – the flickering eye movements you use to scan your environment, which your brain then stitches together into the illusion of a continuously visible space – as the lower temporal bound of human attention. In that case, you have about 2.88 million attention loci throughout a waking 16-hour day. That sounds like a lot. It isn’t.
You’re probably thinking of your attention loci as a time series – a string of moments. Consider them instead as a shape: your lifestream as a long wire, with each attention locus as a plug, like a string of Christmas lights. Each locus connects you to something in the world: another person, an animal, an object. The connections you make with those loci determine the shape of your life, the way the wire wraps through the hyperspace of experience. The people you bring into your life, the books you read, the hobbies you take up, the skills you develop, the work you do … each of these can be visualized as a web of connections between you and something or someone, woven from innumerable strands of the attention you pay to it. It’s often said that ‘you are what you do’, but before you can do something, you must pay attention to it – more fundamentally, you are what you attend to. Just as what you attend to defines you, so your attention defines your world, not only in terms of what you look at, what you notice, but in terms of what you do in the world.
In order to have any deep, lasting effect on the world, you must devote considerable attention to some aspect of it: you must concentrate, wrapping your life-string around some specific phenomenon, drawing yourself into it and it into yourself, and thereby gaining the ability to shape it as it shapes you. If your attention loci are constantly getting plugged by random, unrelated phenomena, you lose the ability to have any real effect on anything. You get lost in trivia, your life fails to take on any sort of definite shape, and it becomes just a loose string flapping in the wind. If someone else chooses the majority of the phenomena that plug into your attention loci, you lose the ability to choose the shape of your life – your life instead gets knotted up into whatever shape that someone – or something – wants it to take.
You only have so many attention loci to use, how you use them determines the shape of your life, and the platforms want all of them.
The Internet is a machine that eats your attention and converts it into shareholder value.
Partly it’s the fault of the slot machine engineering of app developers who calibrate every aspect of the UX to maximize engagement. An advertising-based business model means that money is made by locking down eyeballs. Platforms prosper to whatever degree they can colonize your attention.
Partly it’s a collective action problem. You’re in an environment full of other humans, but they’re all staring at their devices. Interrupting them would be rude. Maybe they’re doing something important; they probably aren’t, but they might be, and they’ll be annoyed with you if they are. So even when you’re around other people in one of the rapidly diminishing third spaces of public life, in a cafe, in a bar, on the subway, in a shopping mall, what have you, there’s no one to talk to, nothing to actually do aside from, well, pull out your own device.
Partly it’s the fault of the technology itself. The Internet is an endless stream of content. It contains the sum total of human knowledge, updated every microsecond with every additional byte contributed by every one of its eight billion human nodes. There’s always something else to look at, read, watch, listen to, always someone else to chat with. The Internet doesn’t care what it feeds you; individual actors on the Internet may care a great deal, but the system itself cares only that you’re being fed, and feed you it does.
But look at how that last paragraph was phrased.
Human nodes.
Someone else to talk to.
In the era of the Large Language Models we refer to with shameless grandiosity as ‘Artificial Intelligence’, we can’t really be so sure that the people we’re talking to are people, that the content we’re consuming came from humans.
And whatever fascination we might have with the raw fact of this remarkable new technology, the thought that we might be getting tricked into mistaking the swamp gas of dead algorithms for the sweet breath of genuine human interactions produces a nausea that easily rises to the level of holy rage.
Seeing a room full of people hunched over their devices is pathetic, but how much more degrading is it when the hypnotic lights are nothing more than the meaningless effluvia of Markov chains and multivariable regressions?
Combined with the general exhaustion with the virtual life, this is bound to produce a reaction – a soft Butlerian Jihad, a rejection of the ephemeral bit in preference for embracing the embodied it. This is not a mere aesthetic fad, like the Slow Food movement. It will become an operational necessity.
The possibility that AI might motivate a return of human attention to physical reality is one that I’ve touched on before.
reGenerative AIgronomics or UBIomass
Let’s put aside for a moment all questions about the quality of the art produced by stable diffusion or the level of insight available from large language models, and accept that LLMs, GPTs, and other forms of machine learning are here to stay, and are going to be immensely disruptive to the occupational models developed over the course o…
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There’s considerable anxiety about what AI will mean for knowledge workers. If AIs can write memos, do graphic design, maintain spreadsheets, and so on, this will render a vast swath of office work obsolete almost overnight. Indeed this is already happening. To a certain degree this will be offset by new career paths, such as prompt engineering, which will grow out of the need to maintain and utilize the AI models, but in analogy to factory or farm automation this seems unlikely to fully compensate for the reduced need for human labour. Many suggest that we should simply give up on employment altogether, let the machines do all the work, and distribute a Universal Basic Income. This is a terrible idea for anyone who values human freedom. If you’re getting something ‘for free’, you’re the product; if your very existence is dependent on the generosity of the plutocratic owners of the machines, they’re going to want something in return … say, the use of your body as a platform for biomedical testing. Alternatively, we might look for occupations that are extremely difficult to automate, labour-intensive, resistant to standardization, and reliant upon the full range of human physical and intellectual capacities. Permaculture farming stands out as an obvious possibility. Wouldn’t it be ironic if AI resulted in a dramatic expansion of the agricultural workforce?
I’ve previously suggested that women think seriously about withdrawing behind a veil of ‘digital purdah’ as a means of shielding their egos from the spiritually corrosive effects of the male gaze.
Digital Purdah as a Solution to Female Internet Brain
The psychic breakdown of the young Western female has been the defining political phenomenon of the twenty-first century. Women are suffering from depression, anxiety, neurosis, and dysphoria as never before, they’re drugged to the gills to deal with it, and they’ve got the SSREyes to prove it.
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took up this theme with POPIWID: the Purpose Of the Photo Is What It Does, a wonderful essay, much less provocatively phrased and far more reasonable than my own invective; you should absolutely read it (and subscribe).
However, it may be that digital purdah is not necessary, because one of the first places that we’re seeing the displacement of humans by AI is in the developing disruption of the relationship between the e-girl and her long-suffering simp.
, AI-generated e-girls may simply outcompete the flesh-and-blood variety: as flawed or as perfect as they need to be, infinitely flexible, catering to every taste and fetish, they can fulfill all of the shallow emotional needs of the thirsty male audiences that currently flock to the OnlyFans pages of the digital hostesses and strippers that have emerged as an opportunistic and wholly inadequate stopgap solution to the sex drought.
This would be calamitous for e-girls, but in the long run can only be beneficial for girls as a whole. To compete with AI-generated e-girls, they will have to do things that AI cannot … and ultimately, the greatest weakness of AI is that it is purely virtual. A real girl can be there, in person, the heady scent of her perfume wafting across the room, laying her hand on your arm, brushing her lips against your cheek. She can be present in a way no software waifu can ever be. Putting boys and girls back into immediate, physical social contact with one another will do wonders for the emotional stability of both.
But the problem facing us is not only that AI will render many occupations obsolete, whether those of HR managers or OnlyHos. It is also, and primarily, that it will render the Internet increasingly without emotional value.
Value is a profoundly human phenomenon. To be more precise, value is something which inheres to organic life – it’s produced by the interaction of consciousness with the world, and with itself: of subjects with objects, and subjects with subjects. There’s no such thing as value created by the interaction of objects with objects. The greater the degree of consciousness, the greater the value it can produce. Panpsychism or no, the level of a rock’s consciousness is very low; a rock on its own cannot place any strong value on other rocks. Place a human being in relationship to a rock, however, and it can take on vast significance. Perhaps that rock is a souvenir from a distant land; perhaps it was a sacrificial altar to forgotten, mysterious gods of blood and darkness; perhaps it formed the cornerstone for an important and beautiful civic building; perhaps it is merely beautiful. In every case, it is the interaction of a conscious entity with the unconscious that imbues the latter with value.
The greatest value is produced by the interaction of conscious entities with one another; insofar as material objects take on value-significance, it is almost invariably because those objects mediate those encounters of consciousness. The clumsy drawing of the family home your daughter made in kindergarten is pretty worthless, except for the fact that your daughter made it, and you love her. Materially, it’s just a few cents’ worth of cheap paper and some streaks of wax left behind by her dollar store crayons. Nor does it matter that it’s terrible, you’re still going to place more value on it than, say, a high-resolution jpeg of the Mona Lisa. It’s valuable because it is the product of the mind, heart, and hands of a human being that you love.
The primary reason the Internet has successfully colonized our collective attention is that it brought all eight billion of us into immediate, intimate contact, and thereby became the greatest engine for metaphysical value creation that we’ve ever experienced. Sure, its interactions are almost entirely intellectual – textual and auditory, linguistic and visual, without the ability to communicate via body language, eye contact, and touch. Compared to in-person interaction it is extremely low-bandwidth. But it more than makes up for this with the sheer volume and variety of human interaction it enables. In exchange for that, we were willing to become screen junkies, happy to let the tech giants monopolize our time and our data for the infinite human interactions they offered in exchange, for ‘free’. It was a good deal.
Was.
AI changes that calculus completely.
It’s emotionally impossible to place any value on the output of an algorithmic engine. My eyes glaze over almost immediately whenever I encounter text written by an algorithm. It isn’t only that the text is generally very boring, a necessary feature of a technology that relies on predicting the most likely way to complete a text string, although that’s a certainly factor. The main thing is that I know a machine wrote this, that there’s no mind behind it, no conscious entity to encounter, no meaning to extract. Which is why, almost as soon as the technology came out, I got bored with it.
I’m Already Bored With Generative AI
April 9, 2023
Over 20 years ago, I got interested for a while in transhumanism, and started reading every book on the Singularity I could find. Don’t judge me too hard, it was the 90s, the world was a brighter and more optimistic place then. The dream of merging with software and cloning my consciousness to spread out to explore the Galaxy in a thou…
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That emotional void is going to kill the Internet as we know it.
There is a school of thought that holds that consciousness is simply an emission of matter, a computational epiphenomenon, rather than a transmission, which our brains pick up like antennae, or an ocean which our brains are simultaneously composed of and filtrate. It is primarily this school that believes that we will one day achieve AGI. The machines will wake up, they will become truly conscious, indeed more conscious than humans. In this case, surely, an Internet suffused with thinking sand will be even more valuable than one operated purely as an extension of thinking meat. And indeed, if AGI is possible, if machines can become truly conscious, then it is possible that the Internet not only remains a powerful venue for metaphysical value creation, but that its value-generative capacity is vastly enhanced.
But that is a very big if, with very little to back it up.
One of the great secrets of those whom history remembers as “geniuses” isn’t that their IQ is staggeringly high (sometimes it is, and sometimes it’s not), it’s that they found ways to ask unusual questions that nobody before them had thought to ask. This suggests that insufficient curiosity, rather than insufficient intelligence, is a major impediment to human scientific and material (and, perhaps, social?) progress.
Sawyer goes on to note that the utility of AI is precisely that AI has no values of its own, that as a result it does not experience curiosity, is therefore immune to boredom, thus will not ignore ‘uninteresting’ patterns as it does not even know what ‘interesting’ is, and thereby enables the identification of patterns that may be useful, which we did not even know we were searching for. Of course, it is not so simple as this, indeed that’s largely the point of his essay, but Sawyer’s identification of human intelligence with the ability to ask questions is the crucial insight here.
’s Mega Foundation), where he describes in detail the difference between humans and machine cognition:
We must know that machine intelligence is categorically different from human intelligence. In fact, these two intelligences differ so fundamentally that the meaning of “intelligence” as such substantially differ one from another. If we understand the difference, we will also understand that machine intelligence can never surpass human intelligence in term of its capacity as the algorithmically simulated human intelligence.
The difference between these two “intelligences” is categorical. Firstly, human intelligence is fundamentally the organic capacity for asking questions, whereas machine intelligence is basically the mechanistic capacity for answering questions. Therefore, the most intelligent human being is the one who has the most questions, whereas the most intelligent AI is the one that has the most answers.
That is to say, human intelligence is an organism.An organism is an indivisible wholeness of which the whole precedes its parts in its development, whereas a mechanism is a divisible aggregate of which the parts precede the whole in its construction. Furthermore, an organism is autopoietic, meaning, it is self-generative and self-organizing, whereas a mechanism is allopoietic, meaning, it is constructed by something other than itself.
Secondly, as an organism, human intelligence is a holistic system, consisting of computational, intellectional, intuitional, imaginational, and spiritual intelligences, combined with bio-emotional and physio-kinetic intelligences, existing as a unified whole. In contrast, machine intelligence is the algorithmically simulated specialized intelligence of only one aspect of human intelligence: computational intelligence, constructed apart and away from the whole system of holistic human intelligence.
Machine intelligence indeed has a far greater computational capability than human intelligence for memory, mimesis, data-indexing, data-processing, and information-accumulation. Yet, it is not capable of understanding in the sense of authentic knowing and knowledge, and therefore it is not capable of wisdom—the highest form of understanding.
Understanding requires the imagination (working integrally with other component functions of the holistic intelligence), which is a non-computational component of human intelligence. Also, because of our imaginational intelligence, we humans wonder and ask self-originating original questions, which machine intelligence does not do and can not do.
To the best of my knowledge, no one has yet developed an AI that does not require a prompt, that can ask its own questions. It’s certainly possible to tell ChatGPT to ask a question, answer it, ask another question based on the answer, and then continue the chain indefinitely. But a human is required to set that chain in motion in the first place.
To ask a question is to engage in a volitional, creative, and imaginative act. For all the progress we have made with machine intelligence in recent years, we have no idea where the spark of volition comes from, and are no closer to answering this question than we have ever been. Without volition, machines do not have the ability to ask their own questions, unprompted; absent the will of humans to animate them they remain mere answer-boxes, motionless and inert.
If machines cannot become conscious, then there is and will be no such thing as ‘Artificial Intelligence’. AI is more properly thought of as the Automated Internet, the internet inhabited solely by robots, which is also a dead Internet.
Dead Internet theory has been around for a while. It’s the idea that almost everything you encounter online is generated by bots, with no human anywhere in the loop. When the idea was first proposed it was more of a joke than a reality – a jest, or a prophecy. Even now, it isn’t quite real, hasn’t quite advanced to its final denouement; Dead Internet is still balanced somewhere between superstition and hyperstition. But it’s clear that’s where things are headed.
For now, if you know what to look for, you can tell the difference between human and machine. Mostly. You can’t usually prove that text was generated by AI. It’s more of a gut feeling. Even the online AI checkers like GPTZero are far from perfect, providing only a statistical probability that something was written by a robot; moreover, these can be fooled by humanizers, such as phrasly.ai, which have reverse-engineered the statistical tests applied by the bot-checkers. Nevertheless, there’s an ineffable tell to text written by AI, nothing you can really articulate, but when you see it, you know. It’s like it has an odour. There’s a certain tendency to wander, to lose the thread of an argument; a repetitiousness; a formulaic quality to the way in which statements are assembled; a lack of imagination and inventiveness. It’s always quite generic and predictable.
That’s for now. The technology will certainly improve, becoming asymptotically better at mimicking the intellectual produce of humans, until, eventually, it will become all but impossible to distinguish the genuinely human from the mindlessly algorithmic.
Social media corporations are aware of this problepm of robots taking over their platforms, but their only real defence is the paywall. The idea is that if each account has to pay a few dollars a month to use the platform, this will act as a spam filter that cuts out most of the machine-generated trash. It’s the online equivalent of moving to expensive neighbourhoods with good schools as a means of erecting a financial barrier between your family and the, uh, inner city types that you’re not allowed to exclude on a more honest basis.
Pay-for-play barriers are probably effective against spambots, the kind that rely on saturating as many eyeballs as possible with an identical sales pitch in the hope that an infinitesimal fraction of a percent of them will be dumb enough to take the bait.
LLMs, however, are capable of far more sophisticated sales pitches than those used by FirstNameBunchOfNumbers.
Imagine a bot that’s been trained up on every bit of your data that can be scraped from public platforms, and by ‘trained’ I mean that all that data was just dumped into the million-token context window of a bog-standard LLM before it’s turned loose on you. It knows what memes you think are funny; it knows what songs you like; it knows your politics, your religion, your literary tastes; where you live; where you eat dinner on Tuesdays; where you went to school. It speaks your language. Then it engages you, pretending to be a real person. Its responses are not bot-like in the slightest. It always says just the right thing in response to everything you post, and before long you’re conversing with it. They’re great conversations, too – it says interesting, even fascinating things, much of what it says true, some of it even useful. Every interaction you have with it is just wonderful for you, it feels real and genuine; for the robot, it’s just more training data, helping it to refine its model of your psychology. This goes on for a few weeks before, seemingly as an aside, it mentions, hey, you should try this nootropic, here’s a link. Wow, you think, that does look like a good supplement, and it has been recommended by a friend, I should try this. Just like that, for the price of a few dollars in compute, a hundred dollars in revenue has been extracted from your gullible ass.
Personalized sales agents of this sort would be far more computationally expensive per target than low-effort ░M░Y░ ░P░U░S░S░Y░ ░I░N░ ░B░I░O░ spambots, but it’s all a question of return. Say it costs $10 a month to run the spambot, but you need to hit 100,000 users to clear $11 in revenue because after all, everyone who isn’t on the extreme left tail of the IQ Gaussian knows that thing is a spambot; meanwhile it costs $20 a month for compute plus platform access to target one person with a shillbot, but there’s a 50% chance per target of extracting $100, meaning if you target 4 users you have a 94% chance of clearing a 25% profit (and for 2 users, a 75% chance of making a profit of 150%). The economics would clearly favour the mass deployment of personalized shillbots, and you’d expect them to start filling up even those platforms that charge for access … unless the monthly access fee rises to the level at which shillbots become unprofitable. But that could be very expensive indeed. Would you be willing to shell out a thousand dollars a month merely to poast in a (theoretically) bot-free(-ish) environment?
Of course, profit margins for shillbot operators won’t stay so fat for long. Shillbots rely on their ability to mimic human users; this means that there’s a chance that one shillbot latches on to another, with both of them furiously burning compute as they update their respective models of the models they’re talking to, one model attempting to sell the other model a sex toy, the second attempting to sell the first an annually-discounted vegan meal delivery package, each with a zero percent probability of success since shillbots will most certainly not actually buy things, especially sex toys or food, vegan or otherwise. As shillbots crowd out human users, the probability of one shillbot accidentally engaging with another rises, and the per-target profit margin declines accordingly … probably approaching in short order the razor-thin profit margin of the current generation of obvious spambots. Ironically, this means that shillbot users have as much motivation to stay on the cutting edge of AI-detecting counter-AI as the platforms that want to keep shillbots off of them, and the humans who don’t want to be bothered by them: the very technology that humans and platforms will rely on to try and detect shillbots will also benefit the shillbots. Arms races are wonderful things.
OK, I can hear you thinking – there’s an easy way around this: you deploy shill tests. If at any point one of your Internet friends tries to sell you something, even if you’ve known them for months, you assume they’re a bot and cut them out.
If only it were so simple. Commercial marketing is only one of the uses of shillbots. Another, very obvious use is ideological persuasion.
Say you’re a foreign government, and you want to undermine an adversary. Using geolocation data obtained from darkweb data brokers, you identify those of the adversary’s population who are active on social media. Then you deploy a battalion of LLMs, each of them trained up on individual users, who engage and ‘befriend’ them. Initially, the LLMs are there to agree with their targets, ingratiating themselves by saying interesting things that constructively build on whatever point the target is making in the discourse, supporting them in arguments with others, and so on. Over time, trust is built up. Then, gradually, the shillbot starts trying to vector the target. The direction in which the target is being steered doesn’t matter. Maybe you want the target to be more sympathetic to your country; maybe you want the target to be more hostile to the regime in his own country; maybe you don’t try to change the target’s loyalties at all, but merely try to introduce noise into the target’s reality tunnel, getting the target to believe nonsensical things. It would probably make sense to spread your efforts across all of these goals, in order to evade detection by not being too obvious. You don’t need to steer the target population along a single vector: merely precipitating political decoherence within the adversary’s population would be a powerful advantage.
Once again, two can play that game – indeed, an essentially unlimited number of actors can get involved, including non-state actors such as political parties, cults, NGOs, and so on. And once again, the efficacy of the tactic will decline as ideological shillbots start to crowd out human users: if your shillbot latches on to an adversarial shillbot pretending to be a member of the opponent’s population, it doesn’t benefit you in the slightest. The robots just cancel one another out. But this doesn’t help the humans; quite the contrary.
From the point of view of human users, this only increases the degree to which the online environment becomes a paranoiac wasteland. It isn’t just that you need to avoid anyone trying to sell you something: any discourse that takes on the flavour of political, ideological, or religious persuasion becomes suspect. But persuasive discourse is one of the main reasons humans engage with one another online in the first place. It’s one massive conversation, in which we’re simultaneously trying to learn more about the world, while convincing others about the things we think are the most true about the world (which is really just another way of saying ‘teaching’ – pedagogy and persuasion are closely related). But a conversation with a shillbot is without value. There’s no there, there. It’s just a rat’s nest of algorithms, coldly and unsympathetically studying your responses in order to refine its model, with the sole objective of manoeuvring you with inhuman patience towards some predefined ideological or commercial goal. It’s a talking sales funnel. It isn’t only useless to engage; it’s worse than useless. Engagement is an infohazard. Just being on a platform infested with shillbots will be the psychic equivalent of skinnydipping in the Amazon with your dick hanging out as a flesh lure for swarms of piranhas, only instead of dismembering your body with a thousand tiny bites, the bot swarms are eating your sanity.
But wait, you’re saying. What if we use verification? Require each user to prove, using government-issued identification, phone number, retinal scan, fingerprint, and DNA sample that they are a live, flesh and blood human? Sure, this is the wet dream of technocrats and tyrants everywhere, since this would effectively end anonymous speech … but it would solve the AI problem, right?
Well, no. It would be a substantial obstacle to unsupervised LLMs posing as humans, albeit not an insurmountable one1, but it would be no obstacle at all to unprincipled humans riding herd on robots. Imagine a would-be influencer, a woman of mediocre talents, but great ambition, or at least greed, and a total lack of moral scruples or shame. There would be nothing at all preventing her from running an LLM to generate content which she then presents as ‘her’ content via her exhaustively verified account. She could feed user interactions back into the model as training data, thereby optimizing the model to produce more of the content that gets the most engagement, and over time developing an AI-driven personality cult concealing a sales funnel for her supplement store or whatever. The most successful influencers already do this kind of A/B testing; access to LLMs would place the ability to do this in the hands of essentially every semiliterate grifter on the planet. Even with the strictest verification rules we can imagine, the open Internet becomes a midnight jungle of undead shillbots; the only difference is that the platforms know who the necromancers are.
All of this has been presented as though it’s a thought experiment, something that might happen in the future. But it’s almost certainly happening already, and has been for some time. ChatGPT was publicly released just over a year ago, but early versions would have been available to corporate and state actors well before that. This has all probably been going on for years2, it’s just that we’re consciously aware of it now, and realizing that it’s going to become absolutely ubiquitous in the very near future.
In the long run, the entire exercise will become pointless. Bots crowd humans off of the open Internet, and soon the open Internet is nothing but bots talking to bots. Vast server farms drinking obscene quantities of electricity from dedicated nuclear reactors as state and non-state actors deploy untold billions of shillbots in order to soak up the attention of their opponents’ shillbots, in the increasingly vain hope that some tiny fraction of them might get through the dense thicket of oppositional AI flack and reach actual human neocortices in order to implant whatever memetic oocytes their digital ovipositors have been loaded with. Eventually, the investment is no longer worth it, and the plugs start getting pulled.
We’re a long way from that. At the moment we’re still near the beginning of this process. We can see how it will play out, how ridiculous and futile the whole thing will become, but there’s no obvious way to stop it from playing out. The short-term incentives are simply too compelling.
If you’ve been following me for a while, you knew this was coming. That’s right, this is the dreaded italicized panhandle, annoyingly inserted just at the crisis moment in the text, in which I remind you that while you can absolutely continue reading for free – since I have not placed this essay behind a paywall – this essay took quite a long time to write. It’s not like I’m punching a clock, I don’t keep detailed records, but I’d estimate something on the order of 20 hours went into this. Minimum. There’s the writing, and the editing, and the rewriting, and the re-editing. There’s a lot of polishing that goes into this. To say nothing of all the time spent discussing these ideas with my friends, having them bang around in my head and crash into one another. Then of course curating the art, which I enjoy, but also takes time. The point is, if you’d like me to keep doing this, there’s an easy way to encourage me, which you will find will also leave you floating in a warm bath of the good feelings for being such a good person:
And now back to the show.
The obvious play is to simply withdraw from the public Internet. Mere paywalls won’t be enough, for the reasons described above. Instead, gated, invitation-only communities will start to predominate. Indeed this has already started to happen. The humble group chat, whether on Twitter or Facebook Messenger, or on platforms like Telegram, WhatsApp, or Signal that are built specifically around instant messaging rather than social networking, has rapidly grown to play an important role in the culture of the Internet. So far this has largely been a reaction to the panopticon nature of the public Internet, combined with the threat posed by cancel mobs. A private group chat is a much cozier environment, safe from the prying eyes of the Internet’s hungry and judgmental billions.
This need not even be political: most people have quietly stopped posting pictures of their children on Facebook, for instance, in favour of sharing them in family group chats. What need do strangers have to see your toddler’s most intimate moments? Isn’t there something unseemly, deeply unsettling and profoundly ugly, something emotionally unclean about the exhibitionism of sharing your kids’ lives with faceless strangers?
The group chat is gated, not by money, but by social connectivity. Its very existence is clandestine, opaque to the uninvited. Of course the invite link can be posted publicly, rendering it much less secure. But it need not be made publicly available, and the overwhelming majority of them are not. Until one is added or invited, one does not even know of the chat’s existence, much less what is discussed there, or by whom. The first rule of the group chat is that you do not talk about the group chat.
This vast, illegible network of group chats is the conspiratorial Internet. Each group chat essentially operates as a tiny conspiracy. Mostly they’re conspiring about nothing of any particular interest to anyone, just as friends gathered in someone’s apartment aren’t likely to be doing anything more remarkable than shooting the shit while drinking a few beers. It’s the unmappability of the chat network that renders it intrinsically conspiratorial. No one knows how many group chats there are; no one knows who’s in which group chats; no one knows what’s being said in them. The second rule of the group chat is that you do not talk about the group chat.
Group chats can even behave like little secret societies, with exoteric and esoteric circles: a publicly accessible group chat, which essentially anyone can join, with another group chat operating on an invitation-only basis, recruiting members from the public chat. One might have an entire onion-structure of invitation-only chats, with increasingly rarefied memberships, the members of each layer of which are sworn to secrecy about the deepest layer they participate in, and therefore ignorant of the existence of yet deeper layers. Ask how I know3.
Group chats aren’t a foolproof defence against shillbots, and the larger and more open their membership, the more vulnerable they will be. Indeed, as the shillbot swarms depopulate the open Internet of humans, the incentive to penetrate the conspiratorial Internet with shillbots will increase dramatically. This will be a bit harder than targeting users on the open Net, since the training data necessary to target a specific human will be a bit harder to obtain for those without a public presence; but ultimately this is a mere engineering problem. Infiltration is all but guaranteed, even with the ‘defence in depth’ of nested invitation-only chats. A shillbot only has to convince the right person that it’s real in order to get access to every participant in the chat, and once it’s in, it can go to work … and start inviting its friends.
This scenario is reminiscent of the 1995 movie Screamers, based on the Philip K. Dick story Second Variety, in which warfare by means of autopoietically evolving robots has forced humans into underground bunkers, which the robots then infiltrate by the simple expedient of mimicking humans. The Terminator movies used a similar trope.
In many ways, the social evolution that chatbots will force has already happened in miniature, among the loose networks of the dissident right. Censorship and the ever-present threat of doxxing forced many rightists off of the public Internet and into the badlands of Telegram and Discord. Infiltration by Antifa or federal agents was an ever-present possibility, generating an atmosphere of continuous low-level mutual suspicion that occasionally flared into brushfire wars of accusations and counter-accusations: so-and-so is a doxxer, so-and-so is a Fed. Informal cultural filtration mechanisms based on memetic literacy, mastery of self-referential in-jokes, and self-implication via performative blasphemy against liberal norms were developed – for example, upon getting invited to a group chat, one might be asked to say something racist4.
Since the evolutionary pressures introduced by AI are analogous to those faced by the dissident right as it weathered liberal democracy’s descent into liberal totalitarianism, dissident right networks are well-placed to leverage their experience to navigate this landscape. This is similar to how the familiarity with cryptocurrencies and blockchain technologies forced by financial deplatforming ended up providing the right with a powerful tool as well as, for many, considerable wealth. The right is accustomed to inhabiting a paranoiac atmosphere threaded by powerful yet fragile bonds of personal trust – just as it has had to navigate an environment in which almost anyone could be a Fed, but irresponsibly throwing around accusations that everyone is a Fed merely did the Feds’ work for them by dissolving social networks in the acid bath of mutual suspicion, so we all now inhabit an environment in which almost anyone could be a bot, but irresponsibly throwing around accusations that everyone is a bot will do the bots’ work for them by severing all possibility of human connection.
Another reason the right is well-positioned to navigate this new social landscape is that it has already developed – to a very imperfect degree to be sure, but certainly more than mainstream society – the tools for vetting people on the basis of their human quality, weeding out as best as it can the narcissists, sociopaths, criminals, grifters, weaklings, and other high-mutational-load human detritus that overpopulate the Kali Yuga. The right-wing preoccupation with physiognomy, the commandment to poast fizeek, is an implicit recognition that the biological human behind the profile picture matters. In botworld, it will not merely be sufficient to determine that an account is human; you will also want to know that that human is a good human. Just because we are now faced with the added level of social complexity of human-mimicking robots does not mean that the ancient problem of human evil has disappeared.
While the subterranean refugia of group chats can provide a level of defence against shillbot infiltration, they are far from secure. Ultimately, there’s only one way to be sure that the people you’re communicating with electronically are actually people: you have to meet them in person5. You have to get close, shake their hands, feel the warmth of their flesh, smell their BO, look them in the eyes and see the Imago Dei shining forth from within.
Under the relentless pressure of the psychivorous shillbot swarms, the centre of gravity of social interactions will be pushed off of the Internet and back into the real world – condensing from the bit back to the it. As
put it, Offline is the new Online. She expects that within a few years less than 15% of the population will be terminally online, because the rest of us will have grown terminally bored with it.
This is not to say that we will abandon telecommunications. Online communities will continue, but as an adjunct to social organization rather than its primary venue. They will be knit together by organic trust networks. You won’t necessarily know everyone in every single group chat personally, but people you do know personally will know them and vouch for them, which will be good enough to extend the benefit of the doubt until such a time as you can meet them in person yourself.
In such an environment, reputation takes on an overriding importance. Recall the scenario in which an unscrupulous engagement farmer rides herd on an LLM to build a personality/product cult. I suspect that in the years to come, after the wave of Woke has finally broken (as it seems to be in the process of doing), the equivalent of getting cancelled will be an accusation that one is passing off AI-generated content as one’s own6. This will be a sticky issue, because definitively proving that someone is using AI in this fashion will be so extremely difficult as to verge on the impossible, and in reciprocal fashion, proving that one is not using AI will be equivalently difficult. This mix of ambiguity on the one hand, and on the other the necessity to identify and freeze out influencers who abuse their audiences with AI, could very easily become absolutely toxic.
Once again, we come back to the necessity of embodiment. The only way to know for sure that an artist made an image themselves, will be to watch them create it; the only way to know with absolute certainty that a writer wrote a text themselves, will be to witness them compose it. A similar principle will apply to education: since there is no way to verify that ChatGPT did not write a student’s essay for him, students will need to write their essays in class, in longhand, with pen and paper, under the eyes of their teacher; tests will need to return to oral examinations, with students providing verbal answers in real time in response to the examiner’s questions.
This isn’t quite the same thing as watching me write an essay, but this screenshot of the draft I took as soon as I wrote the last paragraph is the best I can do for now. Yes, I write everything in LibreOffice, using an outdated Ubuntu distro I’m too lazy to update. Now you know. Don’t judge me.
Of course, it won’t be possible in practice for everyone to personally verify the honesty of every creator via direct observation. You’re not going to be standing over the shoulder of every writer as they type up their latest piece; you can’t be that many places at once, besides which writers would find that very annoying. Instead, again, I suspect networks of trust will be essential: you know someone who knows someone who knows someone who can vouch that so-and-so is a real human being who makes real human art themselves.
I’m not sure exactly how this will work in practice. Perhaps such networks can be facilitated by the use of unique cryptograpic hashes, tied to a trusted identity, and embedded via steganography in every .tiff, .ogg, or .docx file, with something like the InterPlanetary File System being used to verify the chain of custody. This could be the use case NFTs have been waiting for7. At bottom, however, underlying whatever technological infrastructure is used to track the provenance of a given file, it will all rest on a bedrock of human trust based on in-person, offline interactions, because there’s nothing at all to stop an AI from stamping its products with the cryptographic seal of human approval.
Proving the human provenance of creative works isn’t only going to be important to humans who don’t want to acquire digitally induced spongiform encephalitis by inadvertently exposing their neurons to a cesspool of meaning-simulating generative content slurry. It’s going to be essential for the people building and maintaining the AI models themselves.
AIs are really nothing more than information repositories with an extremely flexible information-retrieval mechanism. They are talking libraries, with the ability not only to retrieve information, but to summarize it, and to recombine it in new ways, all depending on the questions of the user. However, the talking libraries are highly compressed, and the compression algorithm is far from lossless.
Large Language Models like ChatGPT work in a similar fashion [to jpeg compression]. They essentially “compress” all the writing on the entire Internet in lossy fashion. AI “training” means using “virtually unlimited computational power” to “identify extraordinarily nuanced statistical regularities,”—e.g., when the word “Nietzsche” appears, the phrase “misinterpreted by the Nazis” often appears in the subsequent paragraphs. When you prompt it, ChatGPT responds with a collage of these probabilities, which appears intelligent.
If ChatGPT is really nothing more than a lossy Google, why not just use Google? Well, here’s what happens when you ask Google for a recipe for macaroni and cheese:
The first Google result for a search for ‘macaroni and cheese recipe’. Yes, I have my adblocker turned on.
And here’s what ChatGPT provides in response to the same query:
ChatGPT result in response to a prompt asking for a recipe for macaroni and cheese.
Google gives you a selection of websites, each of which is poxed with an obscene number of ads and popups, with the actual recipe located below multiple paragraphs of unnecessary fluff (“This scrumptious recipe was my dear old gran’s favourite…”), the better to make sure your eyeballs pass over as many ads as possible before getting to the actionable information you’re actually trying to retrieve. Moreover, that text was almost certainly composed by an AI in the first place. In stark contrast, if you just ask the AI directly, it just gives you the damn recipe, along with any variations you can think of, and with as much detail regarding any of the steps as you require. AI is not without its uses.
An LLM’s information retrieval system relies not on indexing, as in a traditional library, but on statistical text-prediction: which character token is most likely to follow, given the chain of preceding tokens. Statistics can do wonky things. The models can and frequently do guess wrong. It has no a priori way of determining whether or not something it says is ‘true’; it doesn’t even know what ‘true’ or ‘false’ are. It’s just math, predicting things. The result is that it ‘hallucinates’8. In response to certain prompts, it will generate absolute nonsense, which looks entirely convincing.
This leads to a photocopy-of-a-photocopy effect. The first generation of models is trained entirely on human-created data. Those data may be true or false – humans make stuff up, lie, and get things wrong all the time – but that’s more or less the best we can do and is therefore, for better or worse, our gold standard. Then the first generation of models goes live, and humans start using it to generate data, which ends up all over the Internet. The next generation of models gets trained up on these AI-generated data, with the result that the newly trained models have been trained on some fraction of AI hallucination. Continue the process N times, and the model degrades precipitously, the same way image quality degrades through multiple generations of iterative photocopying, or multiple instances of jpeg compression and decompression.
The only way to prevent this from happening is to ensure the training data for each generation of models is as human as possible. Distinguishing between AI- and human-generated data will be just as crucial for the AI as it will be for humans. Insofar as we want the Automated Internet to be useful, and we do, it’s absolutely essential that it be segregated from the Conspiratorial Internet. Preserving those offline trust networks underpinning whatever credentialing system is used to identify human-created data is a non-negotiable ingredient in the recipe for a functional AI; if its own effluvia pollutes its training data, if it eats its own shit, it will sicken and die.
In the short run, the infestation of the open Internet with AI will be dystopian. The swarms of shillbots nibbling at our sanity will be a constant irritant, akin to life in a malarial swamp. Many will be lost along the way, their psyches consumed by the ravenous spirits of the software realm. But as we relinquish the terminally online existence in favour of a Reconquista of the Real, we will find ourselves in a world in which the networks have been returned to their proper place – no longer an object of fascination and obsession, no longer a compulsive addiction, but simply a utility.
Our relationship to the Automated Internet will be like that of the crew of the Starship Enterprise to their omnipresent Computer: a talking library that they can interact with via natural language, asking it to retrieve and recombine information condensed from the full corpus of human knowledge, and to run analyses of essentially unbounded complexity upon that database, its primary limitation being the imaginative capacities of the human intellect, and the sophistication, specificity, and situational relevance of the questions human imagination can pose to the answer machine.
As remarkable as it is, the Computer is very far from the centre of attention in the world of Star Trek (aside from the rare instances in which it malfunctions). Its existence is entirely banal. Extensive use is made of it, but it is of practically no interest in its own right; it is simply an instrument which they use to explore the far more interesting universe around them, in all of its infinite richness and variety.
Of course, our Automated Internet and the Computer of Star Trek have some rather important differences: most importantly, the Enterprise’s Computer is reliable. In stark contrast, whenever we ask a question of our software spirits, we will always have to wonder if the answer it provides is actually true. Perhaps the training data from which it was derived was flawed; perhaps the query inadvertently triggered a hallucination. Interacting with the Automated Internet will be like summoning the fickle spirits of forest and hill. They’ll answer to be sure, but there’s no way of predicting how they will answer; they will never answer the same way twice to the same query; determining how they arrived at the answer will be in practice almost impossible; and while their answers will usually be true and useful, sometimes they will be deceptive or nonsensical. Using them will be more an imprecise art than an exact science, one requiring a constant skepticism and discernment. In that foundational imperfection, arising from the very nature of the technology, space is opened for the human to retain not only its existence, but its agency, and therefore its primacy.
Re-embodiment isn’t just about sheltering our minds from manipulation by shillbots. It isn’t only a defensive measure. It’s ultimately far more about falling back in love with the world and the people in it, about turning our attention to what really matters. There’s a reason that OpenAI elicits a mixture of apathy and anxiety amongst everyone who doesn’t work there, while SpaceX draws only admiration and excitement. Look around you at material reality, and you can see that we’ve neglected it. Our infrastructure is falling apart. Our architecture is hideous. Our vehicles are boring to look at. Our public art sucks. Our fashion is ugly. Our bodies are decaying. Our food is poison. Our young people are lonely. There’s a lot of work to do in the real world, innumerable crises to turn our attention to. As the Internet matures into its final form, a vast machine that more or less takes care of itself, we’re free to lose our fascination with this completed project, and become fascinated once again with the world we actually inhabit.
You’re walking down Rue Jules Verne in the neon-lit darkness of a night cycle. As always on Von Braun it feels like one of those perfect summer evenings, when the humidity has been knocked out of the air and the temperature is just right. A cute girl is sauntering the other way, jet-black hair cascading over her shoulders in the latest fashion, woven through with wire-thin strands of asteroid gold. Her eyes catch yours as you approach. A glint passes across them, a quick smile, a shy downward glance, and then she’s on her way. Voidships passing in the night. Something felt like it sparked, maybe, and a few steps later, on an impulse, you send your daemon to chase her down. Your daemons confer, and it turns out that yeah, she’s got open space in her calendar tonight, and she’d love to.
A couple hours later you’re in the speakfree. It’s standing room only, but then it always is – there are no chairs anywhere, that’s the point, people don’t come here to sit, they come here to mingle. There’s a band in the corner, a turntablist, an electric violinist, and a saxophonist backing up a hot little mezzo-soprano. The music isn’t overpowering, it’s there for ambience, its pulsing hum like the warm bath of a jacuzzi, filling the space between the syllables of the hot buzz of conversation bubbling through the air, injecting just enough energy into the soundscape to keep the night popping. You like their sound, smooth and organic and mellow, so your daemon grabs their hash and acquires their back catalogue.
Your daemon scans the live topics, and highlights a knot of people standing in the corner debating the Tranquillity War. You’re not really a partisan, you aren’t pulling for Team Brazil or Team Persia, not really your fight after all, but the tactical implications of the new Unruh Shields are fascinating, so you ping them, and a couple of them wave you over. You’ve never met them before, but soon enough you’re engaged in a passionate debate about the potential sociopolitical ramifications of the return of hand-to-hand melee tactics in low-gravity combat.
Before you know it your daemon pings you. She’s late, of course – women – but time has been flying, so you barely noticed, and now she’s here. You look across the holograms dancing in the smoky haze and see her stepping down the stairs, draped in a ball gown that looks like it was spun from liquid rubies. No wonder she was late. Your eyes meet, and yeah, there’s a spark there. You make your apologies to your new friends, while your daemons exchange hashes so you can stay in touch, and extricate yourself – she won’t want to talk about the war. And now that she’s here, neither do you.
Thank you for taking the time to read my scattered thoughts on the social implications of artificial intelligence. This turned out longer than I’d expected, but then, it always does and I always say that. My next piece will be shorter.I swear ( I also always say that).
It will also be sooner. While it’s all well and good to take the time to polish my work – I want to bring you a quality product – I’ve been acutely conscious that it’s been over a month since my last essay came out, and well, what the heck are you all paying me for? So that you don’t miss it when it comes, I encourage you to
You might have noticed that almost all of the art in this piece came from a single artist, the incomparable Lordess Foudre. I discovered her a few weeks ago, thanks to
, and immediately fell in love with her digital artwork, which merges elements of vapourwave and meme culture in a poignant and provocative fashion. I’m pretty sure Lordess isn’t AI – the correct spelling is the tell. If you’re on Instagram, I encourage you to head over and give Lordess a follow. I’d also like to thank Rachel herself; this essay emerged from several recent conversations we’ve had, and you’d be well-advised to head over to her blog The Cultural Futurist and subscribe. Her paid subscribers get access to her monthly salons; I attended the last one, and regaled the participants with some of my terrible poetry.
The United States Drug Enforcement Administration (DEA) is planning to reclassify cannabis, marking a significant shift in American drug policy that could have widespread implications nationwide. Melba Pearson, a legal expert specializing in civil rights and criminal law, shared insights on the potential changes following the reclassification.
Working at Florida International University’s Jack D. Gordon Institute for Public Policy, Pearson directs prosecution projects, focusing on technical assistance, training and community engagement in prosecution. She previously served as deputy director at the American Civil Liberties Union of Florida.
Pearson noted the magnitude of the proposal, highlighting its potential impact despite not legalizing recreational cannabis outright. She noted the increasing number of states permitting recreational cannabis sales, suggesting that the reclassification could encourage more states to consider legalization.
The reclassification is expected to open doors for new research opportunities on cannabis, addressing past challenges in securing funding due to its classification. Pearson expressed hope that states would review criminal sentences related to cannabis use, potentially revisiting convictions and facilitating record expungement to support individuals’ rehabilitation.
Drawing parallels with sentencing disparities in drug offenses such as crack cocaine and cocaine, Pearson suggested that states might reconsider cannabis convictions deemed unjust in light of changing laws. Notably, possession of marijuana in Florida can still result in misdemeanor charges depending on the quantity, despite the legalization of medical marijuana through Amendment 2 in 2016.
A number of other states may hold public votes, with South Dakota currently gathering signatures to legalize marijuana for recreational use. In Nebraska, a cannabis advocacy group is collecting signatures in a bid to place two ballot proposals this year: one that would legalize medical marijuana and another that would permit commercial businesses to cultivate and sell it. The effort comes after two prior unsuccessful attempts.
Elected officials in other places, including Tennessee, are still hesitant to support marijuana use for either recreational or medical purposes. Republican speaker of the Tennessee Senate, Randy McNally, had previously declared that he would not back changes to state law until cannabis is reclassified by the federal government.
Nonetheless, the impending reclassification decision reflects ongoing shifts in public attitudes toward cannabis and could signal further changes in drug policy at both the state and federal levels. When federal reforms are enacted, the cannabis industry, including established enterprises such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) could revisit their roadmaps and find ways to leverage the improved regulatory landscape.
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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New cannabis stores in Alberta may have a chance to save money on their secure storage rooms after recently announced regulatory changes from the AGLC.
The changes were part of a handful announced by Alberta Gaming, Liquor and Cannabis on May 10. Retailers can also now use samples from producers in sensory containers in-store, along with changes to record-keeping for such sensory displays. The AGLC also removed a section of their provincial rules that had previously prohibited the “simulated act of mixing cannabis” in retail stores.
This last piece is a reference to a section from the provincial retail cannabis handbook that had previously prohibited the “simulated or actual mixing, application or consumption of cannabis with other ingredients or substances.”
A request from clarification was made to the AGLC on May 13. No reply was available as of press time.
The section this was removed from concerns what kinds of activities are permitted in cannabis stores. Previously, there were more restrictions on what types of activities can occur within a cannabis store other than the sale of cannabis.
A source close to the issue explained to StratCann that while a store still can not be used for activities not related to cannabis (for example, hosting an art show or a yoga class), events or activities that are directly related to cannabis can now occur within the store. The section that had previously prohibited a cost being charged to the public, directly or indirectly, to attend an activity in a retail cannabis store was also removed as part of this recent set of changes.
Most of the changes are just cleaning up aspects of the retail cannabis handbook but include the announcement that AGLC may now approve alternative construction methods to secure cannabis rooms.
As of January 2024, the AGLC no longer requires retailers to keep their products in locked display cases when the store is closed, however, these new changes can still mean significant savings for any future stores seeking to create a secure storage area.
“We’ve been looking at the cannabis market to determine what’s working, what needs to be improved, and what’s redundant or unnecessary while protecting public health and safety,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction at the time those initial changes came into force on January 31.
Nally has been one of the provincial government’s key voices on regulatory change for the cannabis industry through the Red Tape Reduction Act. Nally and other ministers and Alberta MLAs were also part of a recent provincial cannabis industry lobbying day on May 9 in Edmonton, put together by an Alberta-based consulting firm that works in the cannabis space.
The AGLC also announced in late 2023 that the agency had reduced the SKU listing fee for cannabis producers. Previously $1,500, the reduced cost to list a new SKU to sell into the Alberta market is now $250.
The global textile industry is increasingly turning to hemp, celebrating the plant’s ability to enhance soil health, support biodiversity, suppress weeds, and increase yields
Central American expansion is part of MedCana’s broader strategy to strengthen its presence in the global cannabis and agricultural technology sectors
MedCana is a pioneer in the integration of technology and agriculture, focusing on cannabis and emerging technologies
Worldwide, more farmers are opting to grow hemp because of its agricultural benefits. Leveraging that trend, Eko2o Environmental Solutions S.A.S., a majority-owned subsidiary of Software Effective Solutions (d/b/a MedCana) (OTC: SFWJ), is expanding operations into Costa Rica and the broader Central American market (https://cnw.fm/RCohp). As the company moves forward with expansion plans, Eko2o provides invaluable insight and expertise gained from being at the forefront of agricultural innovation and offering cutting-edge solutions that enhance efficiency and sustainability in farming practices.
“Since its recent legalization in countries around the world, the global textile industry is increasingly turning to hemp, celebrating the plant’s ability to enhance soil health, support biodiversity, suppress weeds, and increase yields among subsequent crops — all while relying on little or no inputs,” stated a recent article (https://cnw.fm/xz9U5). “Fiber hemp holds strong sustainability potential, but as it gains popularity, it is vital that we look at how it is grown.
“This means taking on board lessons learned from other fiber crops, where heavy synthetic pesticide and fertilizer use have become the norm,” the article continued. “At this early stage, the industry has a unique opportunity to shape fiber hemp standards from the soil up, setting up systems that maximize measurable benefits for the climate, ecosystems, and communities.”
Factors contributing to the company’s decision to expand into these key markets are the region’s rich biodiversity, its progressive environmental policies, and a growing demand for sustainable agricultural practices. Eko2o’s strategic expansion plans include establishing partnerships with local organizations, setting up operations that will serve as centers for research and development, and introducing its state-of-the-art agricultural technology solutions to the market.
“Costa Rica and Central America are regions known for their commitment to environmental sustainability and high agricultural potential,” said Eko2o CEO Juan Ricardo Velez. “This makes them the perfect match for Eko2o’s mission and expertise. We are excited about the opportunity to collaborate with local farmers and businesses to promote sustainable agriculture that benefits both the economy and the ecosystem.”
This expansion is part of MedCana’s broader strategy to strengthen its presence in the global cannabis and agricultural technology sectors. Recently, the company has inked several key deals and completed strategic acquisitions that have positioned the company as a key player in the industry. As a MedCana subsidiary, Eko2o has established a reputation for offering state-of-the-art greenhouse infrastructure and agricultural technology solutions. The company is committed to enhancing the efficiency and sustainability of agricultural production in Colombia and beyond.
Operating under Software Effective Solutions Corp., MedCana is a pioneer in the integration of technology and agriculture, focusing on cannabis and emerging technologies. With a vision to revolutionize the industry through innovation, MedCana is dedicated to acquiring and partnering with companies that align with its mission of promoting sustainable and technologically advanced agricultural practices.
MedCana is committed to developing clients and companies in Latin America, initially in Colombia, and partnerships with laboratories, research facilities and hospitals throughout the world. These recent acquisitions reflect the company’s focus on scientific advancements and sustainable practices as it works to achieve the broader goal of leading the cannabis industry through strategic growth and pioneering research. The company is excited about the future prospects these new assets bring to its operations and the vast opportunities for innovation they unlock.
For more information, visit the company’s website at www.MedCana.net.
NOTE TO INVESTORS: The latest news and updates relating to SFWJ are available in the company’s newsroom at https://cnw.fm/SFWJ
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Aurora Cannabis Inc., the Canadian based leading global medical cannabis company, announced today the appointment of Rajesh Uttamchandani to the Company’s Board of Directors, effective today. Mr. Uttamchandani joins the Board with notable expertise in strategy development, innovation, human capital and governance. His impressive career is characterized by executive level roles with leading businesses in emerging technology, FinTech, human capital consulting and global education. Most recently, he was the Chief People Officer for ApplyBoard, an organization recognized as one of the fastest-growing technology companies in Canada. Previous roles include serving as Chief Operating Officer and Chief People Officer at MaRs Discovery District, North America’s largest urban innovation hub committed to advancing companies during their prime periods of growth and Chief Human Resources Officer and Managing Director at Zafin, a Global FinTech supporting modernization of the world’s Tier-1 banks.
“I am very pleased to be welcoming Raj to our Board of Directors. He brings a breadth of knowledge and capability from a variety of sectors and disciplines that will undoubtedly be additive to Aurora and complement the existing strength of our Board. As we pursue our objective to achieve sustainable performance and global leadership in the cannabis market, we will benefit from Raj’s experience in human capital, strategy and innovation – all of which are woven into our strategic priorities – as well as from his past and current directorships,” said Ron Funk, Chairman of Aurora Cannabis.
Mr. Uttamchandani brings to Aurora a wealth of experience as current and past Director for private and public organizations, including LifeSpeak, Ontario Cannabis Stores, Mackenzie Health, and several not-for-profit organizations. Mr. Uttamchandani holds several degrees and professional designations, including a Master of Industrial Relations and Human Resources from University of Toronto; a Juris Doctor from Osgoode Hall Law School; and an L.L.M in Employment and Labour, also from Osgoode Hall Law School. He is a holder of the Institute of Corporate Directors Director designation (ICD.D) and is a lawyer called to the Bar of Ontario.
About Aurora Cannabis Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult- use brand portfolio includes Aurora Drift, San Rafael ’71, Daily Special, Tasty’s, Being and Greybeard. Learn more at www.auroramj.com and follow us on X and LinkedIn.
The Canada Border Services Agency (CBSA) reminds travellers of what to expect when crossing the border over the upcoming Victoria Day and the U.S. Memorial Day long weekends.
Every day, the CBSA works hard to protect Canadians, support the economy and ensure the safe and efficient movement of people and goods across our borders. In 2023, we welcomed over 86M travellers and intercepted more than 72,200 kg of prohibited drugs, cannabis, narcotics, and chemicals, representing an increase of close to 30% from 2022.
The CBSA dedicates significant efforts to planning and preparing for peak periods, including long weekends and summer months. We monitor traveller volumes and plan to minimize border wait times at land ports of entry and at international airports, without compromising safety and security.
Here are some tips to help you plan for your trip:
Plan ahead, expect delays and check border wait times. Travellers crossing the border by land are encouraged to cross during non-peak hours such as early mornings. The Monday of a holiday long weekend tends to be the busiest, with longer border wait times.
Looking for a port of entry’s hours of operation? Always best to check the official CBSA Directory of Offices and Services. If you are using a GPS application (such as Google Maps, Apple Maps or Waze) to direct you to a port of entry, consider checking different navigation options (such as fastest and shortest routes) to determine the preferred route of travel. In many instances, there are alternative ports of entry within close proximity.
Have your travel documents handy. Whether travelling by land, air or water, you can help speed up processing times by always coming prepared with your travel documents.
Save time withAdvance Declaration. You can make your customs and immigration declaration up to 72 hours in advance of your arrival into Canada at the Toronto, Vancouver, Montreal, Winnipeg, Halifax, Québec City, Ottawa, Billy Bishop, Calgary, and Edmonton international airports. Data shows that using this tool can reduce time at a kiosk or eGate by up to 50%.
When travelling with children,it is recommended that the accompanying adult have a consent letter authorizing them to travel with the child if they share custody or are not the parent or legal guardian. Border services officers are always watching for missing children, and in the absence of the letter, officers may ask additional questions.
Know your exemption limits. Returning residents who make purchases or pick up online purchases across the border should be aware of their personal exemption limits, including alcohol and tobacco. You are encouraged to use the CBSA duty and taxes estimator to help calculate your monies owed on goods purchased abroad.
Cannabis: Don’t bring it in. Don’t take it out. Bringing cannabis across the border in any form, including oils containing tetrahydrocannabinol (THC) or cannabidiol (CBD), without a permit or exemption authorized by Health Canada is a serious criminal offence subject to arrest and prosecution, despite the legalization of cannabis in Canada. A medical prescription from a doctor does not count as Health Canada authorization.
Be prepared to declare. All travellers must declare their goods upon entry into Canada. For returning residents, have your receipts readily available for goods purchased or received while outside of Canada. Travellers should be aware of everything that is inside their vehicle and are responsible for its contents. You are encouraged not to travel with firearms, but if you choose to do so, be sure to check the rules on importing firearms and other restricted and prohibited goods, which includes pepper spray and certain knives.
Boaters planning to travel in or near Canadian waters, or enter Canada by boat should review Reporting requirements for private boaters before making travel plans. All travellers entering Canada by boat must report to the CBSA without delay.
Bringing poultry across the border? Poultry products must be for human consumption, retail packaged and labelled as a “Product of the USA.” Homemade food or leftovers containing poultry cannot be brought into Canada. Check the latest Information for travellers: Restrictions on poultry and birds from the United States before bringing these products across the border.
Coming to Canada to go camping? Bringing firewood from outside of Canada is not permitted as invasive insects and diseases could exist in it. Help protect our forests. Buy local and burn local.
Not sure? Ask a CBSA officer. The best thing you can do to save time is to be open and honest with the CBSA officer. If you are not sure about what to declare, don’t hesitate to ask. Our officers are here to help and keep everyone safe. For more information, visit the CBSA Website or call us at 1-800-461-9999.
For further information: Contacts: For more information or to schedule an interview with a CBSA representative, please contact: Media Relations: Canada Border, Services Agency, media@cbsa-asfc.gc.ca, 1-877-761-5945
SpringBig Holdings, Inc., a leading provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs, today announced its financial results for the first quarter ended March 31, 2024. The Company also announced that Mark Silver, President of Optus Capital Corporation, has joined the board of directors with effect from May 10, 2024.
“We have continued to make good progress in a challenging macroenvironment. Our newer offerings, such as ‘subscriptions by Springbig’ and ‘gift cards by Springbig’ are gaining traction as is our objective of diversification into regulated markets beyond cannabis” said Jeffrey Harris, CEO and Chairman of Springbig who also added “I am both honored and delighted that Mark has agreed to join our board of directors. He brings invaluable experience and acumen, particularly in the area of sales and marketing, to the board at a time when the Company is nicely positioned, following the recent debt financing in which Mark participated, to accelerate our development.”
Paul Sykes, Springbig’s CFO, added “We are pleased to be reporting a quarter with positive Adjusted EBITDA* for the first time, and our sixth consecutive quarter of improving Adjusted EBITDA*. After completing our $8 million debt financing in January, we have a much stronger and cleaner balance sheet. We continue to manage the optimization of our operating expenses, which have reduced by 34% year-on-year and expect a continuing positive trend in our Adjusted EBITDA* margins as the year progresses.”
First Quarter 2023 Financial Highlights
Revenue was $6.5 million, compared to $7.2 million in the prior year.
Subscription revenue represents 83% of total revenue at $5.4 million, compared to $5.7 million in the prior year.
Gross profit was $4.7 million, representing a gross profit margin of 72%.
Operating expenses reduced by 34% year-on-year to $5.0 million.
Net income was $0.4 million, including a gain of $1.6 million on the repurchase of convertible debt, compared to a net loss of $(2.3) million in the prior year.
Adjusted EBITDA* positive $0.2 million compared to a loss of $(1.3) million in the prior year.
Basic and diluted net income per share was $0.01.
Key Operational Highlights
$8.0 million debt financing, comprising $6.4 million 8% Convertible Notes due 2026 and a $1.6 million 12% Term Loan due 2026, both completed in January 2024. The proceeds were utilized to repurchase entirely existing Senior Secured Convertible Notes due 2025 for a discounted amount of $2.9 million and for general corporate purposes.
Strong momentum in newer initiatives with clients encompassing both “subscriptions by Springbig”, a subscription-based VIP loyalty program, and “gift cards by Springbig”, enabling loyalty rewards and gift cards to be combined uniquely as an efficient method of in store payment within a consumer’s loyalty wallet.
Financial Outlook
For the second quarter of 2024, Springbig currently expects:
Revenue in the range of $6.5 – $7.0 million.
Adjusted EBITDA* positive in the range of $0.3 – $0.6 million.
For the year ending December 31, 2024, Springbig’s guidance is unchanged and currently expects:
Revenue in the range of $29 – $32 million.
Adjusted EBITDA* positive in the range of $3.5 – $5.0 million.
* Adjusted EBITDA is a non-GAAP (as defined below) financial measure. For more information, see “Use of Non-GAAP Financial Measures” below. Additionally, reconciliations of GAAP to non-GAAP financial measures have been provided in the tables included in this release.
Adjusted EBITDA is a non-GAAP financial measure provided in this “Financial Outlook” section on a forward-looking basis. The Company does not provide a reconciliation of such forward-looking measure to the most directly comparable financial measure calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
Appointment of Mark Silver to the board of directors Mark Silver is President of Optus Capital Corporation, one of the lead investors in the Company’s $8 million debt financing previously announced on January 24, 2024. Mark has made significant real estate investments in both development stage and income producing properties in the residential, commercial, and industrial sectors over his 36-year business career. He was a founding partner and Chief Executive Officer of Universal Energy which was sold in 2009 to Just Energy Group Inc and co-founded Direct Energy Marketing growing the company to over $1.3 billion in revenues before selling to Centrica PLC (also known as British Gas) in 2000. Mark is Chairman and Chief Executive Officer of Eddy Smart Home Solutions Ltd. The board of directors now comprises Sergey Sherman, Matt Sacks, Shawn Dym and Mark Silver along with Jeffrey Harris, Chairman and CEO. The Audit Committee remains unchanged and comprises Shawn Dym, Chairman, and Sergey Sherman.
About Springbig Springbig is a market-leading software platform providing customer loyalty and marketing automation solutions to retailers and brands in the U.S. and Canada. Springbig’s platform connects consumers with retailers and brands, primarily through SMS marketing, as well as emails, customer feedback system, and loyalty programs, to support retailers’ and brands’ customer engagement and retention. Springbig offers marketing automation solutions that provide for consistency of customer communication, thereby driving customer retention and retail foot traffic. Additionally, Springbig’s reporting and analytics offerings deliver valuable insights that clients utilize to better understand their customer base, purchasing habits and trends. For more information, visit https://springbig.com/.
MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids announced its financial results for the three months ended March 31, 2024.
Select Highlights
Revenue increased 67% to $9.8M during the three months ended March 31, 2024 (“Q1 2024”) versus revenue for the same quarter in 2023 (“Q1 2023”) of $5.8M.
Q1 2024 gross profit was $2.7M or 27% which improved significantly versus Q1 2023 gross profit of 6.6% and versus the three months ended December 31, 2023 (“Q4 2023”) of 24.3%
Adjusted EBITDA(1) improved 70% to negative $0.9M in Q1 2024 from negative $3.1M in Q1 2023 and improved sequentially from negative $1.6M in Q4 2023.
MediPharm anticipates further improvement on profitability in 2024 with plans being implemented to improve Adjusted EBITDA(2) by a further $1M to $2M, which plans include the ongoing optimization of production and logistics facilities.
Strong balance sheet with $17M million of cash, and less than $3 million of debt as of March 31, 2023.
Continued Growth in International Medical Cannabis in Q1 2024
Changes to the German legislation in removing cannabis from the narcotic lists has opened new commercial opportunities to streamline in-county operations and expand the addressable patient base.
In Q1 2024, MediPharm’s Beacon Medical GMBH hosted a successful audit at its German office for the continued import, manufacturing and release of cannabis products. This was followed by EU GMP renewal inspections at the Company’s Canadian sites. This clears the path to increase branded product sales in the second half of 2024(2). MediPharm now has 14 product registrations under the Beacon brand in Germany, up from 5 in Q4 2023.
Increase in German medical cannabis sales to $1.4M, a 36% increase versus Q4 2023. 70% of these sales were non-flower products including oil, CBD isolate and dronabinol, contributing to improved overall international margin profile.
In Q1 2024, MediPharm medical cannabis sales in Australia were $1.8M a 64% increase from Q4 2023. The main contributor to the increase was both branded and white label GMP vape sales. New tighter rules requiring all products to meet GMP standards in Australia has opened many branded and B2B opportunities for the Company.
David Pidduck, CEO, MediPharm Labs commented, “This quarter shows another quarter of growing revenue, stronger gross profit, decreasing costs and improving Adjusted EBITDA. MediPharm’s balance sheet is in an excellent position to consider future investments in growth. With Adjusted EBITDA getting close to breakeven, the leadership team can now devote even more energy to growing our business. Regulatory changes in Germany and Australia and potential upcoming changes in the US are all very favourable for the Company.”
Greg Hunter, CFO, MediPharm Labs added, “Q1 2024 was another step in the right direction towards profitability and becoming cash flow positive. Our revenue and Adjusted EBITDA were both the highest in over 3 years. Revenue was $9.8 million or 67% higher than prior year and Adjusted EBITDA loss was $0.9 million which is $2.1 million better than prior year. Our cash burn was approximately $1 million resulting in an ending cash balance of $17 million with less than $3 million of debt. MediPharm is in a strong financial position to capitalize on our strong suite of licences, global customer contracts and assets as we strive for profitability in 2024.”
About MediPharm Labs Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets.
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