Bootstrapping the Future Matt Devost at OODAcon 2024

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Welcome to OODAcon 2024 thanks for being here  my name is Matt Devost the CEO and co-founder   of OODA and what I wanted to do this morning uh  as I typically do for these events just kind of   kick it off to set the framework for uh what  we're thinking about and kind of what's on our   mind as we drive the agenda for today's event uh  and tell you a little bit about the OODA Network   itself first if you weren't at our opening  reception last night we are greatly indebted   to Carahsoft and Craig and the team there it is  very difficult in today's environment to throw a   conference that is not a uh pay-to-play event  that is content first focused uh where you're   inviting speakers and setting an agenda and Craig  and his team not only provide logistic support   financial support they personally help us round  up the sponsors and get them to understand that   this is the room that they need to be in that  is influenc in the decisions I don't know why   my slides are Auto advancing sorry about that  um influencing the decisions of the people that   they want to be talking to so a huge thanks to  them and it was a great reception last night as   well what is the OODA Network. OODA is a super  small boutique consulting firm but we operate   this Professional Network uh of about 350 people  Professional Network that's focused on looking   at the intersection of disruptive technology  National Security cyber security geopolitics we   run a website that is member driven the members  get to determine uh the content for the site uh   what sort of research agenda they want to  pursue we have researchers like Daniel that   go and focus on producing content around those  particular topics we run this event uh and we   also uh host the OODA cast which is our podcast  series and if you haven't checked it out we're   like a 120 interviews in uh including me many  of the people who are present on stage with us   today have been interviewed in some capacity uh  here's just a highlight of of recent interviews   that we've done on a whole series as you can  tell of interesting and kind of complex topics   from information Warfare to saving cyberspace  to the space economy uh so we really enjoy the   conversations that we have with the folks on  the uast and then uh just recently relaunched   the website so if you're familiar with the the old  OODA Loop site I would invite you to check it out   it's more content driven and easier to navigate  and super focused on the network elements of   the community uh enabling you to find events and  things of that sort that you can uh participate in   as part of the OODA Network so our theme for today  uh is called convergence last year if you remember   our Focus was on disruptive Technologies and  exponential Technologies and I feel like so much   has happened over the past year we could have done  another event on that and those will certainly   play a role uh in what we talk about today but  from our perspective what was super fascinating is   where these Technologies converge where they start  to mash up where you start to have bio medicine   with AI uh where you start to have the uh space uh  economy with cyber warfare so we wanted to develop   an agenda that was a little bit more focused not  on the disruptive Technologies the exponential   Technologies but where they're going to converge  this is my uh only slides that I'm repeating   from last year because I do want to set the stage  around this exponential Technology Drive that we   talk about within the uh the OODA Network itself  and sorry Randy I didn't reinsert the photos of uh   of the metaverse the the year-to-year changes that  we've seen just over the past 18 months but when   we talk about uh exponential disruption I always  like to use the analogy of the invention of Chess   where the the the Fable has it that there was a  king that was born Bo that wanted new games and he   called out to the kingdom bring me new games and  this peasant brings the game of chess and he's so   enamored with it that he's offers the peasant  I'll give you anything that you want by way   of reward and the peasant says great I will just  take one grain of rice on the first square of the   chess board two on the second four on the third  and we understand the exponentials there and the   King says so cheap I'm going to get this in just  great game for just a pile of rice on a chessboard   but if anybody understands the math behind that it  starts to turn out to be more rice than the modern   economy produces in like 70 years it's a massive  number and when we think about Technologies like   Ai and the exponential nature of them I talked to  folks and they say well chat GPT came out two and   a half years ago three years ago and will could  tell us exactly um that's the start of AI but in   reality we're multiple decades into AI so we're  actually on the back half of the chessboard so   the increase in technology that we see is really  big numbers and really surprising capabilities   that are as human beings we're not accustomed  to being able to absorb so when we talk about   exponential disruption that's what we're talking  about is almost our human inability to comprehend   what's next even though what's next is only one  year away so that's an element that we wanted to   highlight uh highly recommend the the coming wave  as a book uh it uh talks about this movement from   technology being an an assistance to us to kind of  taking Center Stage you see here it starts acting   it starts sequencing it starts writing it starts  leading we had a an uh interesting element of that   in the OODA Almanac as well where we called it  the code era right code that writes code code that   breaks code you start to have code that operates  in an autonomous manner that we think is hugely   impactful uh in something that we all should  be tracking but that's enough from last year's   exponential technology talk I want to transition  to this year which is around convergence and I do   feel a little bit like Ted lasso with the practice  episode anybody ever remember that if you're a Ted   lasso fan when he talks about practice we're  talking about practice we're talking about   practice we're talking about convergence  today right that is the issue that is kind   of top of mind for us because we now have these  exponential technologies that we have an inability   to comprehend as human beings how fast they're  growing and we're mashing them together so what   does that look like this is just drawn from the  UDA Almanac over the past four years of some of   the key words that are showing up in there we have  cyber security and Quantum and Ai and uh Systems   Innovation you start to have this mashup of all  of these different concepts and Technologies and   platforms that start to come together but we also  recognize that there's this balance that we're   always you know even in our own OODA Community  kind of arguing around should AI be controlled   should it not be controlled does that disrupt  Innovation we want the advantages of using bio   medicine to solve for disease but we don't want  people to create bioweapons right so we're trying   to think through these elements of how do we  establish this balance of deriving the good   from these Technologies while preventing the bad  and we're doing it in an environment where uh if   you uh read the OODA Almanac we refer to as binary  fractures where we are moving to extreme right not   just in politics but in how we think about systems  and how we think about technology and that puts   us in this binary proposition of a one or a zero  it's either on or it's off right where the truth   is kind of somewhere in the middle so when we  talk about convergence we're not just talking   about the convergence of the Technologies we also  want to talk about the convergence of the policies   by which we manage and regulate and secure and  ensure the safety of these Technologies in that   ecosystem as well and also recognizing that there  are clear trend lines we spent uh a a bit of time   at the first uh in-person udon because we did the  virtual one in 2020 uh about self- sovereignty   and the role that Technologies like blockchain  would play in that uh that was just three years   ago and today we see the emergence of $550 million  being invested the photo here is from the Praxis   website if you're not familiar with Praxis it is  a network state if if you're not familiar with the   concept of a network state it is an entity that  is seeking to become sovereign that is outside   the current nation state infrastructure aligned  with technology technology policy they exist kind   of in the virtual domain right now and you see  that articulated through you know the Zanzibar   autonomous Zone you see it in uh Dubai a little  bit uh I am a digital citizen of palao everybody   know where palao is I actually have a citizenship  ship card of palao that is issued to me that I   can use to kyc myself into foreign companies that  don't do business with the United States right so   you're seeing this disruption of what we called  when I when I sat on the floor with the early   Cipher punks I don't if Bob Stratton is here yet  used to talk about this regulatory Arbitrage where   we will just seek to go into jurisdictions that  aren't regulated in the same manner that we are   the poow digital citizenship is a perfect Exemplar  of that where there are some crypto exchanges for   example example uh or blockchain ecosystems that  I cannot participate in as a US citizen but as a   digital citizen of palao I can now there's 550  million invested to build an actual Physical   City in a jurisdiction and you always say like  well how do you establish sovereignty they don't   have an army they don't have weapons they'll have  ai they'll have the blockchain if we talk about   the convergence of these Technologies they might  have bioweapons they have access to drones right   like we need to think in these modern contexts and  also this recog nition that at the OODA network is   always burning in our mind and always comes up  uh and we referred to it in the UDA Almanac as   the conflict protocol is always running there is  always some sort of geopolitical conflict there's   something that is uh impacting uh the global stage  and international relations and the deployment of   technology and even as we think about cyber War  this is a Matt Devost quote from like a decade   ago that someone memeified right where we talked  about okay well you can get into a cyber War but   you have to shoot your way out of it right this  Nexus between that uh but what we didn't Envision   that kind of the future of technology war in the  current environment is going to be more about   drones and pagers than bits and bites right so  that recognizing that real world conflict drives   what we're talking about the other aspect that I  wanted to acknowledge is just this sense that we   get in the network that the decisions that you  make now are more impactful how you're thinking   about these Technologies and the decisions that  you make to adopt them not adopt them uh seem   much more impactful than maybe they did even  just five years ago so that recognition that   the failure to make a decision around these  Technologies is a decision in of itself that   could lead to stale stagnation possible Extinction  of some of these organizations and is not just   corporate we see you know with the network state  initi that there are some that want the concept   of nation state to become stale so thinking about  how we operate in that environment is important as well and this was a fun one uh in the OODA network  of this you know what we called the Schroeders   mental model you know is the cat alive or is  it dead we also as decision makers as entities   running companies need to maintain multiple models  in our head all the time because the the pathways   on some of these Technologies are not clear and  that can be challenging in of itself right uh in   maintaining peace and prosperity conflict right  you pick your scenario we are having to operate   with multiple decision trees at the same time  uh and developing strategies and plans around   those different Pathways because there are some  that we might be able to influence but there are   others that we will not be able to influence so we  have to maintain the model mental model for Skynet   at the same time that we do that Innovation wants  to be free right like I'm an old school hacker   that information wants to be free we got this  Innovation wants to be free uh so these multiple   mental models looks a lot like the balance sheet  that we had right but then if we go a little bit   further back in the archive uh and for folks that  don't know me by trade I started my career as a   red teamer you'll see that reflected a little  bit today in some of the conversations that we   have uh and about a decade ago I did the lessons  learned from 20 years of red teaming and one of   those Lessons Learned was that there's asymmetry  everywhere we always think about like oh we need   balance in the force or we're going to uh be  equal with competitors whether it be corporate   competitors International competitors but really  maybe nature seek symmetry but I think as human   beings we seek asymmetry and that needs to be top  of mind as well right in a world where things seek   asymmetry competitors seek asymmetry technology  seeks asymmetry uh it means that we need to   be a little bit more deliberate about trying to  influence the outcome we need to make deliberate   decisions we need to put our fingers on the scale  uh maybe it needs means that we need to operate in   an uncomfortable mode from a policy perspective or  maybe it means you know when we talk about OODA we   talk about this kind of living operating investing  in beta I'm an early adopter so I'm perfectly   comfortable with you know the new technologies and  Adoption of Technologies but we're finding more   and more that you almost have to kind of operate  and live in beta around some of these Technologies   in your organizations not saying that you have to  adopt them fully but they have to be kind of in   the sandbox you have to understand the impact  they're having on your organization you can't   just sit back and wait for the dust to settle  because when the dust settles it might be one of   those drastic decision points where you've missed  the off-ramp that allows for continued Prosperity   what's that mean from an OODA perspective well  we've been rapid adopters of early technology   as well we have an OODA AI agent that's trained  on all the content from our website that's super   interesting to interact with um we use as part  of our workflow tools like vectara chat GPT claw   midJourney uh you might notice that you know we  don't pay for stock images on the website anymore   uh they're almost almost all mid Journey generated  uh it saves saves money it allows us to fine-tune   it uh we are editing you know and uh using some  of these tools notebook LM if you're in the OODA   slack I was obsessed with the podcast capability I  uploaded a 30y old paper more than 30 33 year old   paper I wrote on uh virtual reality and kind  of simulation hypothesis and not only did it   dissect it and have a 15minute conversation about  my paper it talked about the modern world as well   like it brought it into current context so tools  like that are super fascinating uh I did that with   the the pillar security red teaming paper on uh  generative AI where I was like oh here's a great   10-minute summary I can listen to this on the  way to work these tools are super interesting   uh when we talk about crypto we don't publicly  acknowledge it much but I'll do it here for this   group uh micro strategy went to a uh Bitcoin  uh balance sheet element we did that at OODA   in 2018 and we're up 430 64% annualized return  lot better having made that investment from a   cash Reserve perspective than leaving it in the  bank uh and that doesn't even account for the   runup that's happened today which is 8 10% and I  haven't tracked it closely uh and then of course   we're obsessed with tracking these Technologies on  the OODA Loop site so I would implore you to uh if   you're not familiar with it get comfortable with  it and then on a personal level uh I have a u a   GPT we call it that is a llm where I've uploaded  material that includes the things that I've said   the things that I've written the interviews that  I've given on podcasts but then interestingly   enough you know having worked on some of the  early machine learning data science projects   going back 20 years I've been waiting for this  moment so I had an archive of over 2 200 documents   that I had collected that influenced my decision-  making stuff that I read whether it be a national   strategy a technical paper a piece of investment  advice I had saved that all off and I uploaded it   and it's pretty fascinating uh to look at the  way that it is able to interact with folks and   I I list here I've got cesos that use it I've got  students I've got an international sales team that   called up and said they felt guilty they wanted  to pay me money because uh their sales team of   600 people was using Matt GPT to coach themselves  before they were going to talk to customers so   pretend that you're this and that uh it has better  memory I than I do I use it all the time as well   I was on a uh call and I was trying to remember a  book that I cited in my 1995 thesis on information   Warfare and I couldn't remember the name of the  book and so I go on Google and I can't find it   I'm like Amazon I'll have it I go on Amazon I  can't find it I go to Matt GPT and I said what   book did you cite in your thesis about accidents  in critical infrastructure oh you're talking   about Charles perau normal accidents and here's  why you cited it and here's what the book says   and gave the summary right so it has that  great memory and also myself I can't recall   all off the top of my head all of the names  by which the cyber security industry refers to ap28 Matt GPT knows right uh so it's interesting  so you know we're using it for blog posts it's   conducted interviews uh also something I  don't disclose outside of public the OODA   Almanac every year uh which is a document that we  invest a lot of time in I invest a lot of person   personal time in 25% of it I co-wrote with Matt  GPT Bob gourley who's known me and collaborated   and we've written stuff together for over 20  years could not tell what was written by Matt   GPT and what was uh written by Matt Devost in  real life so pretty pretty interesting Dynamic   there uh and interestingly enough it turned out  you know I was meeting with an investment adviser   and we were talking about Matt GPT and he's like  let's just see how it does on investments and it   provided this phenomenal advice on invest he's  like oh my God you're going to replace me how is   your Matt GPT cyber security you know expert and  uh giving such great advice on investments well   it turns out in that archive I had saved off all  of the birkshire Hathaway annual letters I had   saved off Seth claran at bow poost with a client  of mine I had a pdf version of his book right so   that was in there I had the stuff from Ark invest  I had all this material about investing and it had   basically just you know taken that and provided  some expertise so uh Bob has one as well that he's   focused more on like how do you do business with  the federal government right with the Bob gourley   AI but we're embracing these Technologies and also  on the personal level uh just across the street uh   UDA operates in a startup studio uh that I created  there to try and drive a uh ecosystem here in the   DC area basically created the environment I wish  existed as an entrepreneur when I was building   my companies we got a whole Rolodex of companies  being built uh but some that are really driving   the adoption of new technologies I we Josh up  here if you have the opportunity to talk to him   with blackwire I always interact with folks that  say well these llms can't be trusted to to provide   operational advice right I can't trust them to  give me cyber security advice if I go to chat   GPT I might get the glue in the pizza element of  not knowing what it's trained on they've actually   built a technology that allows for llms to be  used in the cyber security context in a trusted   manner where they control the hallucinations they  they validated the docu that are getting ingested   they've categorized them it's a group of I don't  know how many 40 experts that determine kind of   what the training Corpus is and then validate the  results right so solving that problem of how do we   use llms in the application of a particular area  of expertise uh or Kristen Del Roso at the back of   the room with devc that is using data science llms  and some of these Advanced Techniques to address   large scale fraud bankruptcies liquidations if  you think about the types of complex problems   that these traditional investigation firms  are focused on we come in and provide a very   novel uh cyber element to it uh and this year  actually cracked a case that was a kind of a   I don't want to call it a cold case because  it was active but it was a very large scale   fraud that nobody knew what had happened uh  or where the people went and the combination   of the data analytics uh and the non-traditional  thinking kind of hacker thinking solved for that   particular case so uh we're trying to live in  beta as it results in kind of everything that   we do including this event so you're going  to see us push the envelope with some of   the topics and things that we address and with  that I'm going to say welcome to OODAcon 2024

2024-12-15

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