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So many people are giving keys to the kingdom to this thing. What is happening with humanity?

Humanity is the same it's always been. Some people are just inherently curious despite the obvious dangers.

Also, if you think about it, billions of people aren't running Moltbot at all.

X is full of people including Karpathy, Jason C and others boasting about this.

Presumably one of these high profile people will eventually get pwned if the risks really are that high.