November 22, 2011
ENACTING ADMIRAL POINDEXTER'S VISION:
The news forecast (Tom Cheshire, 10 November 11, Wired)A year earlier, on January 12, 2010, a tech startup posted an article on its blog: "Yemen heading for disaster in 2010?" The author, "Ninja Shoes", wrote: "Based on the information we've gathered, Yemen will likely experience food shortages and torrential floods in 2010. This combination of natural disasters, propensity for famine and malnutrition, and challenges with Islamic radicals and terrorists, make it a hot spot for conflict in the future."
The 20 employees of Recorded Future aren't foreign-policy experts. They aren't traders either, but if you'd started using Recorded Future's predictions to buy US stocks on January 1, 2009, you would have made an annual return of 56.69 per cent. (The S&P 500 had an annualised return of 17.22 per cent over the same period.) Between May 13 and August 5 this year, as markets behaved with vertiginous abandon, their strategy returned 10.4 per cent; in contrast, the S&P 500 lost 9.9 per cent of its value. They're data experts: computer scientists, statisticians and experts in linguistics. And in the data, they think, lies the future.
All Recorded Future's predictions, whatever the field, are based on publicly available information -- news articles, government sites, financial reports, tweets -- fed into the company's own algorithms. The result, it claims, is a "new tool that allows you to visualise the future" -- one that is changing how government intelligence agencies gather information and how giant hedge funds place bets. On its website, Recorded Future states: "We don't grant interviews and we don't issue press releases." But behind closed doors, the company is developing the technology that has been described be one tech blog as an "information weapon".
The company, cofounded by Christopher Ahlberg, an entrepreneur who sold his first business for $195 million and served in the Swedish special forces, has $8.5 million in funding. Its first two investors were Google and the CIA.
The closed model of intelligence agencies was a mistake, a bigger one now.
Posted by oj at November 22, 2011 6:26 AM
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