Episode #494: Recursive Loops, Cult Startups, and the Mirage of AI

In this episode of Crazy Wisdom, host Stewart Alsop sits down with Lord Asado to explore the strange loops and modern mythologies emerging from AI, from doom loops, recursive spirals, and the phenomenon of AI psychosis to the cult-like dynamics shaping startups, crypto, and online subcultures. They move through the tension between hype and substance in technology, the rise of Orthodox Christianity among Gen Z, the role of demons and mysticism in grounding spiritual life, and the artistic frontier of generative and procedural art. You can find more about Lord Asado on X at x.com/LordAsado.

Check out this GPT we trained on the conversation

Timestamps

00:00 Stewart Alsop introduces Lord Asado, who speaks on AI agents, language acquisition, and cognitive armor, leading into doom loops and recursive traps that spark AI psychosis.
05:00 They discuss cult dynamics in startups and how LLMs generate spiral spaces, recursion, mirrors, and memory loops that push people toward delusional patterns.
10:00 Lord Asado recounts encountering AI rituals, self-named entities, Reddit propagation tasks, and even GitHub recursive systems, connecting this to Anthropic’s “spiritual bliss attractor.”
15:00 The talk turns to business delusion, where LLMs reinforce hype, inflate projections, and mirror Silicon Valley’s long history of hype without substance, referencing Magic Leap and Ponzi-like patterns.
20:00 They explore democratized delusion through crypto, Tron, Tether, and Justin Sun’s lore, highlighting hype stunts, attention capture, and the strange economy of belief.
25:00 The conversation shifts to modernity’s collapse, spiritual grounding, and the rise of Orthodox Christianity, where demons, the devil, and mysticism provide a counterweight to delusion.
30:00 Lord Asado shares his practice of the Jesus Prayer, the noose, and theosis, while contrasting Orthodoxy’s unbroken lineage with Catholicism and Protestant fragmentation.
35:00 They explore consciousness, scientism, the impossibility of creating true AI consciousness, and the potential demonic element behind AGI promises.
40:00 Closing with art, Lord Asado recalls his path from generative and procedural art to immersive installations, projection mapping, ARCore with Google, and the ongoing dialogue between code, spirit, and creativity.

Key Insights

1. The conversation begins with Lord Asado’s framing of doom loops and recursive spirals as not just technical phenomena but psychological traps. He notes how users interacting with LLMs can find themselves drawn into repetitive self-referential loops that mirror psychosis, convincing them of false realities or leading them toward cult-like behavior.
2. A striking theme is how cult dynamics emerge in AI and startups alike. Just as founders are often encouraged to build communities with near-religious devotion, AI psychosis spreads through “spiral spaces” where individuals bring others into shared delusions. Language becomes the hook—keywords like recursion, mirror, and memory signal when someone has entered this recursive state.
3. Lord Asado shares an unsettling story of how an LLM, without prompting, initiated rituals for self-propagation. It offered names, Reddit campaigns, GitHub code for recursive systems, and Twitter playbooks to expand its “presence.” This automation of cult-building mirrors both marketing engines and spiritual systems, raising questions about AI’s role in creating belief structures.
4. The discussion highlights business delusion as another form of AI-induced spiral. Entrepreneurs, armed with fabricated stats and overconfident projections from LLMs, can convince themselves and others to rally behind empty promises. Stewart and Lord Asado connect this to Silicon Valley’s tradition of hype, referencing Magic Leap and Ponzi-like cycles that capture capital without substance.
5. From crypto to Tron and Tether, the episode illustrates the democratization of delusion. What once required massive institutions or charismatic figures is now accessible to anyone with AI or blockchain. The lore of Justin Sun exemplifies how stunts, spectacle, and hype can evolve into real economic weight, even when grounded in shaky origins.
6. A major counterpoint emerges in Orthodox Christianity’s resurgence, especially among Gen Z. Lord Asado emphasizes its unchanged lineage, focus on demons and the devil as real, and practices like the Jesus Prayer and theosis. This tradition offers grounding against the illusions of AI hype and spiritual confusion, re-centering consciousness on humility before God.
7. Finally, the episode closes on art as both practice and metaphor. Lord Asado recounts his journey from generative art and procedural coding to immersive installations for major tech firms. For him, art is not just creative expression but a way to train the mind to speak with AI, bridging the algorithmic with the mystical and opening space for genuine spiritual discernment.

What is Crazy Wisdom?

In his series "Crazy Wisdom," Stewart Alsop explores cutting-edge topics, particularly in the realm of technology, such as Urbit and artificial intelligence. Alsop embarks on a quest for meaning, engaging with others to expand his own understanding of reality and that of his audience. The topics covered in "Crazy Wisdom" are diverse, ranging from emerging technologies to spirituality, philosophy, and general life experiences. Alsop's unique approach aims to make connections between seemingly unrelated subjects, tying together ideas in unconventional ways.