Bad things happen when you are grounded in the real world. Ergo, in systems architecture, we constantly look for feedback loops. Negative feedback loops provide stability (like a thermostat). Positive feedback loops provide amplification, but without a governor, they inevitably lead to system runaway and collapse.
You know the story of the Golem of Prague? The Rabbi builds a protector out of clay. It works great until it doesn’t. In engineering terms, the Golem failed because it lacked a governor—a negative feedback loop. In systems architecture, positive feedback loops without governors don’t just grow; they run away and tear themselves apart. That is exactly what it appears we are building with this circular financing of AI where capital flows from Big Tech balance sheets into startups and immediately flows back as revenue.
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