undefined | Better HN

0 pointsthrowaway20371y ago0 comments

First, I agree with nearly everything that you wrote. Very thoughtful post! However, I have some issues with the last sentence.

    > Collateralised Copyright Liability

Is this a real legal / finance term or did you make it up?

Also, I do not follow you leap to compare LLMs to CDOs (collateralised debt obligations). And, do you specifically mean CDO or any kind of mortgage / commercial loan structured finance deal?

0 comments

surfingdino1y ago

My analogy is based on the fact that nobody could see what was inside CDOs nor did they want to see, all they wanted to do was pass them on to the next sucker. It was all fun until it all blew up. LLM operators behave in the same way with copyrighted material. For context, read https://nymag.com/news/business/55687/

throwaway2037OP1y ago

    > nobody could see what was inside CDOs

Absolutely not true. Where did you get that idea? When pricing the bonds from a CDO you get to see the initial collateral. As a bond owner, you receive monthly updates about any portfolio updates. Weirdly, CDOs frequently have more collateral transparency compared to commercial or residential mortgage deals.

j / k navigate · click thread line to collapse