How Kai Fu Lee Talked Me Out of Making a Million Dollars

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The other day on Twitter someone asked me how to make a billion dollars. My response: first make a million. [As an aside: follow and ask me any question on Twitter].

I wanted to make what I thought would be a quick and easy milion dollars at the age of 20. A million dollars was being offered for anyone who could create a Go computer program that could even play as good as a weak amateur. Some random Japanese company had established the award. Go is one of the most popular board games in the world, even more popular than chess, primarily because of its popularity throughout Asia. In Japan, for hundreds of years, if a young person had any hope of being a professional Go player he would have to move into the house of a Go family by the age of six or seven and for the rest of his life do nothing but play Go. Thats how hard it is to play Go well. Go is a harder game to master than chess or any other game I know of. And no computer program can handle all the possibilities in Go, unlike in chess where computers dominate.

(Lee Chang Ho in the Chun Lan Cup championship, 2005)

I was obsessed with the game while I was in grad school. I did nothing but play and read about Go so my grades were going down the drain. In fact, I had stopped attending all classes. The last class I attended was a test where we had 36 hours to assemble a computer from basically scratch. Mine didn’t work. Right at the demo, all of my wiring shorted out. I failed the test.  At that point I knew I had almost no chance of avoiding getting kicked out of school.

So I visited Kai Fu Lee. Years later Kai Fu Lee became famous for many things. He set up Google.cn, Google’s presence in China. He worked for Microsoft before that. Before that he created all the speech recognition techniques that, to this day, Apple probably still uses. Heck, probably every speech recognition program out there, even on your Android phone, probably uses techniques originally developed by Kai Fu Lee. Now, he has millions of followers on  Weibo (the twitter of China) and he has a VC fund to fund Chinese Internet startups.

I had first met Kai Fu Lee when I was trying to decide what grad school to go to. When I visited him he showed me the project he was working on. It was a device that could understand any possible English command you could possibly speak if you were, say, on a battleship in the middle of a war in the Middle East. (It was a well-funded project to say the least).

But later, when I visited Kai-Fu, it had nothing to do with speech recognition. Like many young people he had once gotten burnt out. There came a point in his grad student studies where he couldn’t bear to program another computer that understood, “fire the missiles!”  So he took a year off and like most people who get burnt out and take a year off, he created the world champion Othello program.

The basic idea was this (very basic): take 10,000 othello positions that are either totally winning or totally losing. Put them in a database. Now, when a program is considering a move, see if the move closely matches, statistically, a winning position, or a losing position.

 

Make the move that most closely matches a winning position. This basic idea created the world champion Othello program. And apparently it resolved Kai Fu Lee’s burnout issues and he got his PhD in speech recognition (which, oddly enough, uses the same basic techniques as the Othello program).

So I wanted to win a million dollars by using his same technique for Go and I went to him asked him if he would work on it with me. He said, “no”. Its too impossible. He had tried it, he told me. Too many possible choices in Go and even if two positions look very very similar in every possible variable, one could be completely winning and one could be completely losing. Not like speech recognition. Not like Othello.

I gave up. I spent the next several months, not attending any classes at all, getting my girlfriend to have more and more disgust for me. And I wrote a novel that never got published. I lost interest in Go until many years later I began taking lessons from Janice Kim, one of the best players in the US. Eventually I started another company and never really played again although I highly recommend the Japanese manga comic Hikaru No Go, which is creating a resurgence of interest in the game among young people in Japan.

The odd thing is I just invested in a company that uses a very similar technique to Kai Fu Lee’s othello program . This company classifies brain scans to determine what type of depression a person has. They have a database of 10,000s of brain scans and what anti-depressant or anti-anxiety drug worked for each brain scan. Apparently most people with depression are horribly mis-diagnosed and it takes an average of eight years in normal therapy to determine the right type of anti-depressant or anti-anxiety drug that will work.

The original target customers of this company: Army soldiers returning from war in the Middle East. It all comes full circle.

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  • Sooz

    speaking of ‘Holy Sh!t’..
    (another post and continuation of unrelated stuff)
    What time would we, the whole entire motley group, have to get to St. Patricks Cathedral(pretty certain we’ll need an entire pew) if we want to attend a 10:15 mass on June 26th, 2011?
    Celebrating the birth of our own personal ‘Living Angel..Mom/Grandma’. A gathering of special thanks for being the most awesome person in our lives..:))

    • Sooz

      scratch that Q above..I just called them and received all sorts of info..:)

  • knodi

    James Altucher, I don’t what it is about he way you write but its wonderful. Your the old guy with so many stories and how he almost/did invent the sliced bread but some how through the human condition lost it.

    I love it, keep it coming.

  • http://profiles.google.com/daniel.lhrt Daniel Leonhart

    There’s a funny argument about the point of ‘everyone wants to be happy’ – same as James’ how to be the luckiest guy on the planet in 4 easy steps – to what a depressive wants.

    A: everyone wants to be happy
    B: Depressive don’t. `They want to be unhappy to confirm they’re depressed. If they were happy they couldn’t be depressed anymore.

    From ‘Closer’

  • Welner

    Thank you James,

    Almost all your articles are interesting as fuck!… My question to you is how do you manage the time to

    write all this post and run all your businesses? Do you have many assistants?

    On top of that you’ve answer some of my emails (yes me a nobody to you like me) I’ve sent you.

    That’s pretty impressive. Keep it up. “We” your readers love your content!!!

  • http://economicdisconnect.blogspot.com/ GYSC

    Is it bad that I have never even heard of “Go”? I do play chess though.

  • David Dixx

    – errr, I don’t know if these kinda bets work , but I like bet big win big ! ( I mean go straight for a big-potential company ) something I know you don’t like because it needs time to get on the top :D !

    — u ever played poker online? check out FT and PS ! Now that 3 giants are out , I guess if someone steps in can make some huge money ,…

  • http://aeronode.tumblr.com james

    Also interested…

  • gattaca

    Fantastic book.

  • pjc

    Othello is a fantastic game to play with for programming. I wrote a pretty decent Othello game with a few friends in relatively short span of time back in the day. Unlike Chess, you don’t need to go very deep into the tree nor have a terribly sophisticated board evaluation strategy to make a decent game, so it’s an excellent choice for playing with something more sophisticated than tic-tac-toe.

  • http://www.masrojo.com Mas Rojo

    your like the crazy uncle i never had, always trying to get rich the easy way.

  • http://www.thecynicalinvestor.net the Cynical Investor

    Again I’ve learned something new reading your blog

  • http://aeronode.tumblr.com james
  • http://isomorphismes.tumblr.com isomorphisms

    That is awesome. (the hopefully improved diagnosis)

  • http://danmar.posterous.com/ jmdanmar

    I don’t think (at the very least I hope not) it takes 8 years to get the right diagnosis. I think Woody Allen is skewing the stats big time.