Going Infinite: The Rise and Fall of a New Tycoon

Sam Bankman-Fried was deeply affected by the philosophy of effective altruism (EA), and, in hiring employees for his companies, he drew heavily from a pool of effective altruists. EA is a rapidly growing social and philosophical movement that aims to use reason and evidence-based decision-making to maximize the positive impact of one’s efforts and resources in helping others. This movement is characterized by a commitment to rationality, efficiency, and a broad perspective in addressing various global challenges, including poverty, health, education, and existential risks.

Effective altruism traces its roots to the mid-20th century, when philosophers like Peter Singer began to challenge traditional notions of charitable giving. Singer’s influential 1972 essay “Famine, Affluence, and Morality” argued that individuals living in affluent societies have a moral obligation to help those in need, even if it requires substantial sacrifices on their part. Singer’s work laid the foundation for the modern EA movement by emphasizing the importance of using reason and evidence to determine how to help others most effectively.

EA has since gained momentum, largely fueled by the work of other philosophers, economists, and scientists who have advanced the principles of rational philanthropy. One of the central tenets of effective altruism is a commitment to doing the most good, rather than simply doing what feels good, with one’s charitable actions. This implies that individuals should critically evaluate the causes they support, the organizations they donate to, and the strategies they employ to ensure that their efforts lead to the greatest positive impact.

Effective altruists often use the concept of expected value (EV) as a fundamental part of their decision-making process. Expected value is a statistical and probabilistic concept that assesses the potential outcomes of actions or donations.

In EA, when making decisions about charitable giving or other altruistic actions, individuals calculate their expected value by considering the probability of different outcomes and the magnitude of their impact. By quantifying the expected value, they can prioritize interventions or causes that have a higher likelihood of generating significant positive change. In Going Infinite, EAs often talk about EV in terms of their lives and their jobs; they discuss whether they currently have positive or negative EV—whether they are contributing effectively to the world and to the company—and they make decisions to increase their EV.

One of the key questions that effective altruists grapple with is the choice of career and lifestyle that will enable them to have the most impact. Prominent figures within the movement, such as William MacAskill and Toby Ord, have popularized the concept of “earning to give.” This involves pursuing high-earning careers with the intent of donating a significant portion of one’s income to highly effective charitable organizations. Sam Bankman-Fried was influenced by MacAskill’s beliefs, and followed the principle of “earning to give” as he pursued a high-paying job on Wall Street in the 2010’s.