This week in tech, from AI-induced psychosis claims to privacy breaches, the industry’s underbelly was on full display. Episodes of the Uncanny Valley podcast and WIRED coverage highlighted a disturbing trend: technology promising utopia while often delivering something far more unsettling. Here’s a breakdown of the most jarring developments.
AI Psychosis and FTC Complaints
Reports surfaced this week alleging that ChatGPT is driving users and their loved ones into states resembling psychosis. The Federal Trade Commission (FTC) received complaints from individuals claiming the AI chatbot triggered mental health crises. This raises serious questions about the psychological impact of increasingly human-like AI, especially for vulnerable users.
Palantir’s Underdog Narrative
Palantir CEO Alex Karp’s recent interview revealed a belief that his company, despite its controversial ties to government surveillance, is actually the underdog in the tech world. This framing highlights the industry’s tendency to redefine power dynamics and justify questionable practices under the guise of innovation.
DHS Data Breach and Privacy Concerns
The Department of Homeland Security (DHS) illegally collected data on Chicago residents for months, raising immediate privacy concerns. This underscores a growing trend: government agencies abusing tech for surveillance, often without public knowledge or consent.
Alpha School’s Failed Promise
The Alpha School in Brownsville, Texas, promised a tech-driven education model—software instead of teachers, constant surveillance. Parents initially bought in, only to pull their children out, realizing the experiment was more dystopian than progressive. The failure of Alpha School serves as a stark warning: replacing human interaction with tech in education can backfire spectacularly.
The AI Bubble: Historical Parallels
According to guest Brian Merchant on Uncanny Valley, AI exhibits classic signs of an economic bubble. Overhype, irrational exuberance, and unsustainable growth patterns suggest a potential crash is looming. This isn’t just about financial risk; the collapse of AI hype could shatter public trust in the industry.
The Dark Side of Tech Innovation
From hacked poker games to fandom’s manipulation in politics, this week’s stories demonstrate how quickly tech can be weaponized. Even seemingly benign tools like custom GPTs (used by The Atlantic CEO to improve running times) underscore a broader obsession with optimization at any cost.
The Future of AI: A Cinematic Universe?
One creator, Josh, is building “Neural Viz,” a cinematic universe entirely generated by AI. While intriguing, this raises questions about the future of art, labor, and whether AI-generated content will eventually overwhelm human creativity.
The week’s headlines reveal a recurring pattern: tech’s relentless pursuit of innovation often comes at the expense of ethics, privacy, and mental well-being. The line between progress and peril is blurring, and the consequences are already being felt.


















































