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Unknown A
JD Vance puts the global AI community on notice. Elon and Sam prove high school drama never ends. Doge and Trump apparently want smoke with the judiciary. The media is stuck in a constitutional crisis dialogue loop. The U.S. cold Civil War continues to heat up. Hamas threatens to withhold hostages and Trump threatens to unleash holy hell if they do. Kanye nukes the Overton window then dips and did we just prove that teleportation is real?
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Unknown B
Drew, starting off in AI news, JD Vance was over in Europe. He gave a great speech. I like J.D. vance's confidence in it. Do you think the Europeans finally got it? The world is starting to catch on about AI.
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Unknown A
Well, the world is definitely caught on about AI. I don't think anybody is hiding in their hole anymore. But from the perspective of the way that the European Union approaches the world, they very much are a safety first approach. And it is the diagram of how many I forget. It's like north of $10 billion. Valuation companies there are in America versus the European Union is crazy. It's an order of magnitude more in the US And I think that JD Vance is right. When you look at the world and you think that it needs to be a nanny state, that we have to be cautious above everything, which I get the impulse, but when you steer your policies around that, you end up just managing the decline of one of the greatest spots in the world for the last thousand years. I mean it's so much of the innovation was driven by Western Europe.
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Unknown A
And to see that now declining as rapidly as it is is really sad. And so when you look at the European response to AI, which is death by regulation, you look at the US and China, which are very much being hyper aggressive in terms of trying to be fir first in the market to really dominate this. What I see is people that understand that this is a competition, which people get very weird when I point out how much competition there really is in the world. But AI is a competition. And if, if artificial super intelligence is real, people need to understand the level of dominance that's going to give whoever gets there first. And when you start thinking about super intelligence, beating somebody by a week could be the equivalent of beating them by a thousand years. I mean it it remember we're talking about super intelligence.
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Unknown A
I'm not saying general intelligence. This is something where I'll remind people that Einstein was only 2.4 times smarter than a by definition moron. And you get that huge discrepancy when you start talking about something that's 10 times smarter a hundred times a Million times smarter. Now all of a sudden you understand what's really at stake here. That is what I think people need to hear in what J.D. vance is talking about. Now you don't want to sweep safety under the rug. You don't want to say that safety doesn't matter. But that isn't how you're going to capture the future. The upside of AI the way that you're going to capture that is really by saying, okay, we need sensible regulation, we need to look at the alignment problem, but we need to be focused on innovation. And that is a message. I don't think Europe constitutionally capable of implementing it just for the last however many decades has not been their play.
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Unknown A
And it's so ingrained in the European psyche at this point, they're not going to turn it around. And so despite what noises they were making about like we really get this and the game's not over and we're still in it. It's just not their approach to anything.
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Unknown B
Yeah. And to their credit they did announce 200 billion euros in of investment. It's the largest private public sector investment that they ever done.
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Unknown A
Hold on. So this, look at what's happen happening in California. So we've put all this money towards high speed rails and we haven't built any rails. This is where regulation, and I know you had an epiphany over the weekend about regulation in practice and where the rubber meets the road and how problematic it can start being. It does not matter how much money the European Union throws at this. If they have regulations that's going to stop it from actually getting implemented. So if you spend all this money on all this infrastructure but then won't let the AI innovators innovate, you won't let them do anything, it will be this massive expenditure for absolutely nothing. And that again, the effective design of a system is what it outputs. Look at that diagram of the number of again multi billion dollar companies. Whatever the exact number was built from scratch in the US versus what's going on in the European Union.
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Unknown A
And you will see they are constitutionally incapable of that level of aggressive creation. So U.S. companies, 68 companies with a combined market cap nearing $30 trillion. This is the U.S. this includes tech giants like Apple, Microsoft and Amazon. EU companies, 13 companies collectively worth 400 billion. Key players include Spotify, Adyen and DSV. Yeah, and the graph or the image is the really striking thing. You see what a difference it is because you see the size of the companies that we've created. Now remember that Size is a proxy for the value that it's added to people's lives. Where people are saying, I would much rather have that thing that you've created than my money. That is innovation. And especially as we think about, oh my God, just seeing that is so crazy. Especially when you think about that. The way out of the debt crisis, certainly that we have in the US but even globally, because so many people printed like crazy during COVID to get our way out of this part of the debt cycle.
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Unknown A
You either end up in a, in a hot war internally or externally, or you innovate your way out of it. There isn't another solution you can trim and you have to, you've got to doge it. You've got to like, make sure that we don't have to collect as much tax money as we are right now. That's. That is a big part of this. But you're gonna have to innovate. I there. I don't think there is a realistic way out of the crisis that we're in now other than that innovation. And so if the EU doesn't unlock it, you continue to see what I think is right, rightfully called a managed decline. That's just the reality of where Europe is.
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Unknown B
I really, I feel it. And you brought it up. This weekend I was doing like a short film and it was 30 people on set to shoot a 20, like a 12 minute video. And there was so many different disagreements where the PA couldn't do this because the gaffer had to do it. And you could just see kind red tape. It took just to like point a camera and shoot at something. And I know film takes a lot. There's geniuses. I'm not going to minimize their efforts. But seeing all these AI generated images that we cover every week on this show, I'm looking around and I'm seeing this room of people, literally 30 people, and I'm like, in a year it's going to be what, 10? In a year it's going to be 5. In a year it's going to be, you know, and then one or one.
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Unknown A
It's getting crazy. Did you see that Adidas ad that was all AI generated and people, and it wasn't a real ad by Adidas. It was an artist who was just like, let me create what I wish they would create. It was like these really cool floral designs and people are going nuts for it. They're like, oh my God, like, I actually want that to exist. And admittedly, when you find that sweet spot in AI where You pitch to its strengths because you can do stuff with AI and it just looks ridiculous, of course, but when you pitch to its strength, it looks incredible. And so to your point about being on set and seeing the quagmire of all the different unions, each fighting for their own thing, all the regulations that you get that accompany that industry, it's, now is not the time for humans to be this extra burden, this extra problem.
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Unknown A
It's like you really want to be nimble. Now is the time to be fast, to be efficient, to understand where the world is going in terms of being able to automate things away. And here is the thing that really terrifies me about AI as somebody who cares about the people, I care about the people. I want AI to be awesome for people, humans. I look at this and I say, okay, here is the flywheel that's going to get started. The more you fear for your job and dislike AI, the more you're going to throw flags on the field, the more you're going to try to slow things down, the more you're going to try to sabotage it, the more you're going to do strikes and things like that. And that's going to drive the people that are taking the capital risk to build these companies, and you're going to incentivize them to say, okay, well, when this contract ends or when my time with this employee ends, I'm not going to replace them with another human.
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Unknown A
This is just too big of a pain in the ass. I'm going to now automate anything and everything that I can, which then makes them grab the humans that are getting displaced, makes them grab even harder, throw more flags on the field, create more of a problem, go on more strikes, and that makes them further implement AI. And so you get into this crazy flywheel of the more you resist it, the faster it will come. So it's like being stuck in quicksand, where if you struggle and you're flailing, you just go down even faster. If, on the other hand, you go, okay, wait a second. How do I understand the problems that we're trying to overcome? So even in something just as purely creative and pure expression as making a short film, if you say, okay, cool, we're trying to make this thing that's going to garner attention, let's assume on YouTube and, okay, I want to make this.
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Unknown A
Whatever my role is, if I'm the sound guy, if I'm the gaffer, if I'm the key grip, the first ad, it doesn't matter. Whatever you are, I Want to make sure that I show that humans can do a thing that is so valuable that you would rather be working with me, maybe me in conjunction with AI, but you'd rather be working with me than just outright replace me with AI because there is a point where people will take a diminishing return on AI knowing that not diminishing return, they'll take a lesser result on AI that doesn't create problems, that doesn't sue them, that doesn't walk out, that doesn't do a strike, that all the things that make it a pain in the ass make it too expensive to do. And they'll say, oh, I'd actually rather have the AI than the person. Because even though I'm taking a slight compromise, I don't have to deal with all the other stuff.
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Unknown A
You want them instead to say, oh man, these people are able to do something AI can't do. There's a special sauce here, there's something magical. People are not going to even delay AI because I don't think there's any universe in which humans alone out compete humans with AI for sure. And on a long enough timeline, probably just AI full stop, but they're not going to be able to out compete them. So if I were coaching and I was saying, okay, cool, you want to forestall AI as long as humanly possible. It isn't to go try to cut the wires at the data center. It's to show humans are way more fun to interact with. Humans are way more creative. Humans have artistic instincts and impulses that lead you in weird directions. That an AI is never going to be able to do anything but clone and mimic.
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Unknown A
But right now, man, that, that panic just instills in people a strategy to cut the wires, to strike, to do all the things that are just going to cause AI to get put forward faster.
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Unknown B
I feel like this conversation is coming full circle and we're going to get there, but it feels like we would rather have the comfort of the nanny state kind of going back to the eu where it's like, I guess they were too big and too powerful for so long that the people just got comfortable with like, okay, they'll take care of me, they'll do things. So now when something radically game changing comes around, like, are can we survive that? Like, I literally walked into this office today like, yo, this is about to be a coal mine. Like, this is. I feel like this is going to be the middle of Pennsylvania in 20 years.
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Unknown A
Like LA, specifically because we're a capital of media.
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Unknown B
Yeah, like because we rely on, on humans producing this artistic output. Where to your point, A studio might not make a billion dollars with AI, but if they make 200 million, that's.
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Unknown A
Fine if it only cost them 6 million. Insane.
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Unknown B
Yeah.
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Unknown A
Yeah.
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Unknown B
So it's just, I don't know, I'm, I feel a whole nervousness about this. Don't ask questions, don't look under the hood, don't audit us. Like, leave it as it is. Don't change anything. But I feel like this, this change is inevitable. Like it's bubbling over. It's almost like you're trying to put Pop Rocks and Coke and then like hide it under the desk. Like it's going to explode. Like you can't really affect.
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Unknown A
Fun metaphor.
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Unknown B
You can't undo it. I don't know.
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Unknown A
Yeah, Mentos in Coke is a very good example. Yeah. This is coming whether people want it to or not. Again, because life is a competition. I, I really can't internalize why that bothers people. Or maybe the, the better way to say it is I can't understand why people fight against reality. You're going to get smacked in the face with what is real and what is true. And it seems far more effective in your life to constantly be self correcting your own belief system to try to get closer to what is, what is real. And when you use AI man, it is unbelievable. I showed, I took a still photo of Lisa and was just playing with this app called Pika Labs. Not paid by them reading, but using that. And I made it. She was laughing in the photo and I had the photo turn her laughter into crying.
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Unknown A
And at first she thought it was real video of her. And then as she started crying, she was like, wait, I know I didn't cry. And so she was like, what is that? And the fact that you can already do that now, like literally with a single sentence of description, uploading a photo in two seconds. It's just, this is not the one that you want to fight against. This is the one that you want to say, okay, cool, how do I leverage this? How do I use this in my life? But this is where you begin to realize that culture really matters. And it is a really fascinating and distressing fact of the human psyche that as we become more successful, we get farther from having to fight for literal survival. We begin to vote in the things that make it more likely that we'll become dysfunctional.
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Unknown A
And we can't ever step back and go, okay, hold on. I know that this is a time of plenty, but I also Understand how this cycle works. I mean, everybody's heard the hard times make strong men. Strong men make good times. Good times make weak men, weak men make hard times. Like, we all know the loop. So why can't we go, where are we at in this loop? And let's address it accordingly. Thinking not only short term, because you can't ignore the short term, but if you just think short term, you end up in this tractor beam where you now cannot avoid crashing into the very thing that you're trying to avoid.
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Unknown C
It's.
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Unknown B
It's crazy. We definitely can't stop it, but maybe we can lowball it and see if that will do it. Because that's what Elon Musk did to Sam Altman.
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Unknown A
Look at that transition. I was like, where is he going? Low ball. Yes.
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Unknown B
Elon Musk offered 97 and some change billion dollars to Sam Altman for a controlling interest in OpenAI. Of course, Sam Altman rejected. And let's check out the clip.
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Unknown A
Do you think Musk's approach then is from a position of insecurity about X? Probably his whole life is from a position of insecurity. I feel for the guy.
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Unknown B
What do you take about Elon's bid on Sam Altman?
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Unknown A
All right, this, this moment in time where we are able to watch the biggest names in business with just unimaginable amounts of money on the line play the game of business that is normally hidden behind the scenes out in full public view is beyond fascinating to me.
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Unknown B
What do you mean?
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Unknown A
Okay, so there's a lot that's going on here. So one, I'm sure that Elon would love to get a controlling interest of open AI and if he could pick it up for just under 100 billion, he probably would. And I don't think he would have any trouble raising the capital. But I don't think that's the real game. The real game is he is trying to batter Sam publicly, to take every chance he can to slow him down, to trip him up, to make things hard for him. And as Elon, I mean, the. The most respected businessman on a global scale. I don't care if people like his politics or not. Nobody investing these kind of dollars is going to say, oh, he doesn't know what he's doing in business. Everybody knows this is the greatest capital allocator of our time. He's done the greatest turnaround in business history.
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Unknown A
As far as I know. Literally the biggest, most successful turnaround in business history is a turnaround of Twitter into X. Just an absolutely astonishing turnaround and so when that guy comes out and says, without saying it, but this is what your company's worth at the moment, where Sam is trying to raise money at a $300 billion valuation, if I'm not mistaken, it just throws some. It throws a wrench in the gears where now, at a minimum, Sam is going to have to defend himself. And it puts him in a defensive posture to be like, listen, you know Elon, he's just trying to trip us up. We're obviously worth a lot more than 97. But he's now forced to have the conversation that Elon wants him to have.
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Unknown B
Yeah, he changed the framework.
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Unknown A
Exactly. And it's like, you've got this guy who everybody wants a little piece of. Not everybody, of course. Nothing is monolithic. But so many people would want to get Elon involved in some way. And so now you can imagine conversations back channel where people are saying to Sam, like, hey, can't you guys bury this? Can't you squash it? Can't we do something with Elon? Isn't there a thing here that we can do? Or even, I don't want to compete against Elon. So if you're a capital allocator out there and you're like, do I want to go up against the greatest innovator of a generation, potentially of multiple generations, potentially of all time, like, do I really want to be in that battle? And some percentage of them are going to say, no, I don't want that battle. Like, even somebody like Peter Thiel has just flat said, I would not want to be in the business of competing with Elon.
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Unknown A
You've had Marc Andreessen, again, one of the most successful capital allocators of our time, saying, I don't like the idea of betting against Elon. So you get all these people that are like, the thing I don't do is bet against Elon, and Elon is putting down that gauntlet, saying, I, I am going against this kid, like, this guy. It's personal. I am going to continue to chop away at him, both through building a better product and by doing things like this. And you start going, okay, you've got this guy who is very well connected. I know some people have a real beef with how connected he's become, but he's extremely connected. He's unreasonably talented at this thing that we call capital allocation. He's unreasonably talented at just raw entrepreneurship. He's unreasonably talented at getting talent. And I don't know why he reposted this today, but Elon reposted a clip from back in the day where he was talking about his fallout with Larry Page at Google was over recruiting Ilya Sutskiver, who is basically credited with being the most important hire at OpenAI.
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Unknown A
He's no longer there, but the fact that it was Elon that got him there in the first place, suddenly people start going, okay, hold on a second. Elon is a big part of the reason that OpenAI is where it is. Elon has called out, I am going after this kid. And Elon is saying, oh, hey, your company is worth, you know, 97.4 billion. It's just a lot of things for Sam to deal with, to bring it back to where I started. I definitely feel that emoji of the popcorn. And I'm like, and I feel terrible because these are like so high stakes. But it, it, it's all visible now. We can see it all, whether it's at the government level. And now we're just seeing everything. We're seeing into the books, we're seeing into the way that the sides are fighting each other and how they're doing it, because social media is bringing all of this stuff to the forefront.
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Unknown A
It's just an absolutely fascinating time to be alive. And for anybody that is terminally curious and just wants to learn and get better, it's like, whoa, Being able to see this stuff is incredible.
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Unknown B
It reminds me when Zuckerberg tried to buy Snapchat and then the guys turned him down for like 100 million, then he turned it on for a billion and stuff like that. So it's, it's interesting to see these competitions and then Zuckerberg ultimately just like copied the story format from Snapchat and that kind of hurt their market share. So do you think that there, Sam should worry about that? Since Grok, like, Elon does have his own AI system he's building. He is a direct competitor with OpenAI currently. Do you think it's going to get to that? Like, how would you react to somebody kind of making that offer? Is it like, should I negotiate with them? Should I try to counter?
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Unknown A
Like, no, I. So listen, this is definitely Monday morning quarterbacking. So Sam is in a way better position to know what he should be doing here than I am. But as somebody on the outside looking in, here's how I would play it. Sam, you can't flinch. You need to be aggressive. You've got to keep going and try to out compete. Unless Sam knows something, like if he's hemorrhaging because they have hemorrhage. Lot of talent. If he's hemorrhage talent to the point now where he's like, oh, I don't know if I can compete, then maybe I could see trying to do something. But for now, if he's really got as much technology in his back pocket that they haven't released because they didn't want to shell shock the world by dropping AGI too soon and people freaking out, not knowing how to deal with it, if he's really got some cards in his pocket and he's going to be able to play them, then this is where you have to step up to the plate, be more aggressive and out compete Elon and show that, like, you're not some rando kid, like, there's a reason you
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Unknown A
like. If I were in his ear telling him how to think of himself, be like, you were the guy that managed to convince Elon, the greatest capital allocator of all time, potentially, to capital allocate with you, to give you the seed capital to work with you to build this thing. You were the guy that they tried to coup from within your own company and you got reinstated. It was like one of the most gangster moves in recent business history. I mean, just absolutely incredible. And so if I were him, I would want to make sure that all of my investors understood, yo, I got this. I'm not going to be bullied. I'm going to be able to weather this storm as I have weathered all the other storms that came before. We've got incredible technology that Elon is years behind. He is. He is amazing, but he's not going to be able to catch up with us.
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Unknown A
We just have too big of a head start. And by the way, the reason that he's making this bid in the first place isn't just because he wants to mess with us. It's because I bet he tried to train his model and he's realizing, oh, this is going to be a lot harder than I thought it was. And so he's going to have a hard time getting capital or raising enough capital to see this thing all the way through. And that we're going to be able to use our own AI to continually make that gap between the two companies bigger and bigger. So everybody sit tight. You know, keep eating your popcorn. But I got this.
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Unknown B
And Sam Altman did have a funny tweet that he put out. He said, no, thank you, but we will buy Twitter for 9.74 billion if you want. So, to your point, I definitely think they are now just kind of disrespecting each other's companies.
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Unknown A
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Unknown A
Use Code Impact. When you sign up and fund your account to get a hundred dollar bonus, just click the link in the show notes and use code Impact. This is a paid advertisement. Now back to the show. It's a little sad to see in terms of you've got these extraordinary talents, building these extraordinary things, taking shots at each other. But also in the age of social media, reality is the greatest reality show ever. Like this is. You don't need to go looking for unscripted programming. You can literally just look at real life stuff that's happening. It, it is fascinating.
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Unknown B
It is fascinating. And these responses to Doge have been just as fascinating. We covered the meltdowns last week. There's now been some lawsuits. But Scott Galloway and Kara Swisher, they want to take it even further. Let's check this clip out.
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Unknown C
They can unmask CIA officers who put their lives in harm's way to try and keep our, to try and keep our Americans safe. I want to know who their names are and I want to see Democratic governors saying, I'm going to do everything I can in my power to use the full faith and to the letter of the law to put you folks in prison. I think what you're doing is trespassing. I think this is a coup. And be clear, just because the new Insurrectionist who was elected, you know, I don't believe this is legal and I'm going to hold the people accountable who are trespassing and part of a coup accountable to Just sit back and say, this is horrible and this is unlawful. We need to go gangster here and say, look, we are not negotiating around this stuff. This is illegal. This is a coup.
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Unknown C
This is the unlawful seizure of power. We are not going to engage in these bullshit, ridiculous arguments over, you know, Gaza and Greenland. We are going to hold the people accountable. Here are their names, here are their faces. And we have contacted the local authorities in where these kids live, these young adults, and we are going to hold them accountable.
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Unknown B
It's crazy. We need to go gangster here. What's your reaction to the Doge engineers?
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Unknown A
Yeah, this one makes me sad. So there is a reason that we have the balance of powers. I think the balance of powers is very important, and I don't want to see that ignored. And I don't want to. I don't think that the media is out of their minds to say this could become a constitutional crisis. I don't think we're at constitutional crisis. It will all depend on how Trump plays this in the coming weeks. If he just completely ignores all the court orders and just continues to do his thing, then, yes, we do have a problem, because you have a judiciary for a reason. I think that does need to play out in the courts. Having read the Constitution, the Constitution's light, man, I don't think people understand how few words are actually in the Constitution. And so it doesn't lay out like, if a bunch of if this, then that statements.
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Unknown A
It's really, really Spartan. And so the way that the system works is you, you create a simple, ish document and then you let a bunch of things work their way through the court system. And that I think you want to let happen. And so there was a ruling, I think, in 1803. It's like Marbury versus something. And what that said was basically that the judiciary can check the executive powers, and so they can't just drop an unending string of executive orders and expect that there's not going to be any pushback. If you have a federal judge who believes, believes that this is unconstitutional, they do have the right to say, hey, you got to pump the brakes. And so I don't want to see that be ignored. I'm the guy that was like, hey, the one thing I do worry about is when you've got.
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Unknown A
You've got the House, the Senate, executive branch, and legislative branch all on one side, like, that makes me a little bit nervous. And that's basically where we're at now. So I would not want to see all of that lined up and, oh, by the way, in the lower courts, where it's going to be harder and longer term to get a more balanced. Because admittedly that you have a lot of activist judges, which I don't like, but nonetheless, it's good that we have some checks and balances here. So, anyway, I want to see this play out. But the thing that makes me sad about this is not that, because I remain optimistic that that will be handled. Well, what makes me sad is the aggression towards these young guys. Like, I don't understand what everybody's beef is with. They are working with Doge, which was put together by Trump, which, by the way, is taking an existing department.
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Unknown A
It was already there using the exact authority that it already had. And now all of a sudden, it's making people mad. This was something that was created. I forget the original name, but it was created by Obama. And so it's like, guys, this is like, this is why you have to be careful of being so combative that people end up doing so many things by executive order. This is powers, a department, again, that was created by Obama that's now just being leveraged by Trump. So retasked, admittedly, but this isn't a new thing. This isn't something that Trump spun up out of nowhere. So going after the engineers that Trump has put in place via Elon, who then found these young engineers, so a nice tight line to the president, going after them like that doesn't make any sense to me. If you have a beef with Trump and the way that he's running his government, then you go after Trump.
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Unknown A
You don't go after the people that he's asking to go do a job that, by the way, as an American taxpayer, I'm like, why are people mad about this? Like, let's. If we see not to get sucked into talking points, waste, fraud and abuse, which I assure you they are using those words over and over and over and over and over and over and over so that people can easily identify it. But if we really are finding that stuff, you don't want it to stop. Like, it's crazy. So I get it. As we get into the weeds, we're going to be like, okay, wait, wait, wait, wait, this one got caught up. This one should be left to run. It's doing good things. This is not the one that you want to shut down, which Elon has said a gazillion times. When you go into.
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Unknown A
He doesn't say turnaround, but I'm going to use that language when you go into a turnaround like this, you've got to cut hard. And then you're going to see, oops, we cut some things out, some regulations or departments or whatever that actually serve a function. You bring them back. This is exactly what he did at Twitter. He would cut something and then realize, okay, we need some percentage of this back. And he would bring them back. And look, you do go through a period that is tumultuous, but you can't panic in that moment, otherwise it's going to be the same as it ever was. And it is very important that I plant a flag for the base assumption that drives my views on all of this. And that is we are headed towards a fiscal cliff that will destroy this country, all the people in it.
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Unknown A
And we were racing towards that cliff at 120 miles an hour. And I've talked about endlessly why I believe that. But that drives my thinking on this. That's why, dude, you have to reduce the budget and that means you're going to be cutting things. And of course there are going to be people who want those things to go forward. But calling it a coup, I'm like, what is happening? This is why he was elected to do this. So challenge the things you think are worthy of challenge. Let them go through the court system, just as Donald Trump should. Not just say, well, I ignore the judiciary because I don't agree with them. These guys should not be trying to arrest these quote unquote kids as everybody's calling them, instead of just saying, there's a process for challenging these things and we're going to go through them.
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Unknown A
So, yeah, I, I don't like the attack on these kids and I absolutely hate that everybody is making out like because they're young, that that somehow disqualifies them.
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Unknown B
It reminds me of the tweet that you did over the weekend about, like when Palmer Luckey said everyone angry about the age of Doge workers is going to be very surprised when they find out how old the founding Fathers were. And then your response is, I think about this every time I see the people complaining about these doji guys being young.
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Unknown A
So click, click into that. Because I ended up getting into a debate with a guy and look, it got like four views because it was buried so deep in the comments. But he was basically saying, tom, this is misinformation. And nobody under 26 signed the declaration of Independence. And yes, that's true, but we're not talking about, if they were put in charge of Doge, then we might have a different conversation. But as I pointed out Alexander Hamilton as one example, was 22. Actually he might have been younger, but let's just say 22 when he was made the aide de camp of George Washington in the Revolutionary War. I can't think of a much more important. That's literally like the right hand man of the general in charge of making sure that we can found a country. And he realizes this kid is just insanely sharp and makes him his aide de camp.
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Unknown A
You've got another Lafayette or something. Was 19 when he. It's all in the tweet, but when he became a major figure, major political figure. And so I think he was a major general if I'm not mistaken. So it's like guys, being young does not automatically disqualify you from anything. You should be looking at somebody's competence. If they're able to do something extraordinary, then let's let them do said extraordinary thing. If you think that they are incompetent, then yeah, go after that and say this person is incompetent for these reasons. But you had one person sign the Declaration of Independence that was 26. I actually think that was what's his face Hamilton. And then you had another person sign the constitution at 26 as well. So it's like pretty young, pretty young.
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Unknown B
It's disappointing, I think. And that's the biggest thing. And this old Jon Stewart clip has been circulating where simply a couple years ago he was arguing with a D.C. bureaucrat about waste and how we can continue to fail audits. And everybody applauded it. And every time the Pentagon says we don't know what happened to the $900 billion and they walk away, we're like, okay, cool. Yeah.
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Unknown A
And he said like, and I know we'll play the clip, but he just outright said that to me is fraud. Like if you can't tell people where the money's going. And to your point, the left was all applause.
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Unknown D
Please educate me on.
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Unknown E
So an audit is exactly what you just described, which is do I know what was delivered to which place?
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Unknown D
Right.
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Unknown E
The ability to pass an audit or in the fact that the DoD has not passed on is not suggestive of waste, fraud and abuse. That is completely false right there. So, so what is now is a question of. It's suggestive that we can't, we don't have an accurate inventory that we can pull up of what we have where that is not the same as saying we can't do that because waste, fraud and abuse has occurred.
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Unknown D
So in my world, yeah, that's waste.
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Unknown E
How Is that waste?
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Unknown D
If I give you a billion dollars and you can't tell me what happened to it, that to me is wasteful, that that means you are not responsible. But if you can't tell me where it went, then what am I supposed to think? And when there has been reporting, I mean, this is not. Look, I'm not, I'm not saying this is on you and that you caused this, but I think it's, it's a tough argument. I'm pretty sure that cause it an $850 billion budget to an organization that can't pass an audit and tell you where that money went. Like, I think most people would consider that somewhere in the realm of waste, fraud or abuse because they would wonder why that money isn't well accounted for.
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Unknown B
I. I just. It doesn't make sense to me that when one side do as I say, not as I do. You know, it's like when we were trying to hold people accountable for wasting on this side of the government. Everybody was cool with it, we had no problems. And now we're finding waste in U. S Aid, which to me is even more hurtful. It's more distasteful. Where that's supposed to be a pre springing initiative, that's supposed to be aid to help the world. And we're seeing it go into NGOs, getting funneled into people's pockets. But people aren't upset about it. It's just, it's.
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Unknown A
Well, get it. People are definitely upset about it. It's just you're seeing this stuff break along political partisan lines. And that is the thing that makes me sad to beat my KPI drum to death. It's like you have to know where you want to end up and then ask, okay, what are the things that we're going to do to get there? And then what are the KPIs that we check along the way? I think DOGE is being very clear. They are trying to cut $2 trillion from the budget so that we can stop the deficit spending, which is the very thing that's causing us to go 120 miles an hour towards this F cliff. I don't think people fully understand what a quote unquote debt jubilee looks like. It is people being beheaded in the streets. It is. That's on the Civil war side. It is people getting into a war with the rival power of Thucydides trap.
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Unknown A
It is, it is bloodshed. That it has a great name because it says jubilee. But the reality is that that is a horrific period. That nobody wants to live through. You cannot. You. Mathematically, you cannot keep racking up these debts. It leads to hyperinflation. Hyperinflation forces. The debt jubilee. Yeah. It's all madness, all the time.
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Unknown B
And shout out to Ashley Sells, Texas. I think she had the best take about this Doge controversy.
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Unknown F
Democrats are acting like cheating boyfriends right now. I'm sorry, but somebody's got to say it. I'm independent. I think there's good ideas on both sides. There's bad ideas on both sides. But what this Doge audit is reminding me of is, like, a girl taking her boyfriend's phone and, like, hiding in the bathroom. And the Democrats are just banging on the door, and they're like, you are invading my privacy. You can't go through my phone. And Elon Musk is like, yes, I can. I can see what you've been up to. And then every time Musk comes out of the bathroom, he's like, look. See what you did? They just turn it around and they're like, you invaded my privacy. This was your fault. You broke my trust.
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Unknown A
That's hilarious. Definitely, it's hilarious. And if. If that is true as a. An analogy, it's even worse, because this is like, hey, guys, I'm going to get a phone, if that's cool. Like, I'm the. The cheating boyfriend, and I say, would you please go buy me a phone? And by the way, you can look at my phone anytime you want. Like, as a condition of getting the phone, you can look at the phone anytime you want, given that you paid for it. It's the only reason that I have it. It's the only reason I eat. It's the only reason I have a roof over my head. Like, you literally fund everything. And now that you're actually going through my phone, as we agreed, you could at any time, I'm banging on the door and saying that you're violating my privacy, and I'm like, wait, what?
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Unknown A
Like, you have that phone so you can serve me. I bought you that phone. I feed you. I house you. All of it. And because I'm actually doing the thing that we agreed that I could do. You're mad because of what I'm finding. Like, what? So, anyway, yeah, this. Not all of the things that are going to be found are bad. I am well aware that Elon is a master marketer, and so he knows to draw your attention to certain things so that people will be very wound up and they will want him to go in and stop all this spending get it. But the reality is there are things to find, a lot of things to find, like massive, massive, massive. And if I'm not mistaken, there was a left leaning organization that estimated that we have a trillion dollars of waste in the government before Trump got elected.
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Unknown A
So this was them like when they were in control, being like, yo, there's probably. So that's 50% of what we need to find right then and there. Not, not things that like, okay, if we had all the money in the world, we could probably keep paying for this. This is like the stuff that everybody's like, yeah, we shouldn't be doing that no matter what. So crazy.
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Unknown B
We shall see. And some other things to look forward to. Trump gave Hamas a deadline for releasing the hostages.
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Unknown A
They're not returned. All of them. Not in drips and drabs, not too.
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Unknown D
And 1 and 3 and 4 and.
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Unknown A
2 Saturday at 12 o'clock.
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Unknown F
And after that I would say.
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Unknown A
All.
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Unknown F
Hell is going to break out.
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Unknown B
All hell is going to break out. Are you, do you like, like, what do you think? What's your, what's your temperature on this?
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Unknown A
Okay, so this is where this one gets complicated. So we have to do it as a thought exercise. The it, this is early breaking, so we'll see what ends up being true. But Hamas is saying, hold on a second, we had an agreement with Israel. Israel has violated the agreement, so obviously we're not going to give the hostages back. And if you made an agreement and you're the one violating the agreement, obviously I would expect the other side to be like, hold on a second. So if that ends up being true, then it's like you need to make good on the things you said you were going to do. Like you're just going to absolutely destroy your reputation. Now I don't know if that's true. It's entirely possible that Israel comes back and says, guys, this is ridiculous, I can't believe you're saying this. We agreed it was going to happen like this.
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Unknown A
We haven't hit the deadline yet. Boom, boom, boom. So I don't know where that stands as a thought exercise. Whoever is violating the treaty or the agreement, that's the side that is creating this knock on effect. Now if on the other hand, Hamas is the one that's breaking the agreement, then yes, you, you have to play international politics has to be a game of around and find out. And the second that it's not you, you get big problems. Like just take Russia and Ukraine. So Ukraine had nuclear weapons, they gave them away and now they've been invaded. Had they kept them, they would have had a much stronger deterrent and they might not be in that position. So I get it. I'm sure it was with all the good intentions in the world about nuclear deproliferation that made them want to do that. That around and find out.
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Unknown A
So if Hamas is violating the agreement, you have to go Ham. Because you can't have people say they're going to do something and then not do it. But again, I don't know which side is actually the one saying they were going to do something and then not doing it. But if they around they're going to find out.
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Unknown B
I just know it's supposed to be a ceasefire. People are still dying, aid is still not being delivered. It. It seems like this is going to be a never ending conflict. But. And I'm still going back to it.
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Unknown A
Not like this is the whole thing that I said last time. Yeah, I don't, I don't know what to do with this. Morally, you October 7th happens easy. Moral call. You can't bad. All bad that there was going to be a response. Obviously morally you have to defend your people. Got it. Morally, have they gone too far? Probably. They kill a lot of people. Definitionally. They have done ethnic cleansing. That doesn't sound good. Sounds absolutely horrible. So I look at that and go, here's the really bad kicker to all this. It might actually bring peace. What the. I don't know. Like if this were 500 years ago, I'd be like, oh, hey, decisive military victories. It's the only thing that's ever worked in human history. Got it. That's how we got peace with Japan. It's how we rebuilt Europe and it didn't become a psychotic dictatorship.
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Unknown A
You need a decisive military victory. The other side has to give up their will to fight. And clearly that's what's happened from Israel to Hamas. Now Hamas is probably still in a position to be a terrorist group. Israel's using that as a cover story to keep going Ham. Now I call it a cover story on purpose because bro like it. At this point, the only thing that they have left is to be a terrorist organization. I don't know that you're ever going to be able to root that out full stop unless you do what they're talking about, which is, hey, let us rebuild it for you. We're just going to move you to Jordan and Egypt real fast. Just real fast.
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Unknown B
We'll be right back.
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Unknown A
Yeah, don't worry guys. So that's where I get unnerved When Trump said, I don't want to misquote, it was something to the effect of, as my faulty memory goes, something like, oh, the people that have struggled for so long and had such horrible lives shouldn't be the ones rebuilding this. That felt like sleight of hand.
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Unknown B
Yeah.
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Unknown A
Like, it's like if he had said, hey, these guys have suffered endlessly for a very long time, and so we're going to partner with them to rebuild. Now, there's distrust there because they were given a lot of aid previously, and they built a whole bunch of terror tunnels. We obviously can't have that. So we're going to do something like a Marshall Plan, and it's going to be like what we did in Japan, and this is what the rebuilding is going to look like. And there's going to be a lot of verification before we really get into trusting. And this is going to be global cooperation, and we're gonna have a whole bunch of Arab countries leading the charge here. And, hey, great. Those aren't the sounds that Trump is making. And so that shit makes me nervous. So, anyway, we're gonna see how this plays out.
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Unknown A
But again, I just keep coming back to you, but is it gonna work? Like, it might actually, while grotesquely immoral, may also work. Dude, that. That is where humaning gets real weird. Real weird. Speaking of grotesquely immoral, I know where this is going. That's the right transition.
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Unknown B
Kanye.
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Unknown A
Yeah, that's all I got.
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Unknown B
Yeah, I'm not touching this one.
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Unknown A
Can I just say, we can't show a video.
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Unknown B
We can't show a tweet for fear being demonetized.
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Unknown A
Well, also, he took them all down, Praise Jesus. So don't look at Kanye's feet on an airplane. That's. That's what I learned. So as this was all happening on Sunday, okay, first of all, it goes from just blatant racism to blatant pornography in the blink of an eye. And so I'm going through it just like, whoa, like, what is happening? It was too crazy not to look. I had to look. And then when it got to the porn, literally, I'm not kidding, Drew. The second it got to the porn, my wife looks at, my screen is like, what are you looking at? But I was, like, panic scrolling trying to get off of it, because I'm like, I'm on a plane. Forget my wife. I'm not worried about her. I'm on a plane, dude. And I'm on a computer. I'm not even on my phone.
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Unknown A
And so it's like big as day. And I'm like, oh, God. And I start scrolling down, and there's so much of it that it, like, the more I scroll, the more it was showing it. So then I started scrolling, but back up, but I'm scrolling back through it again.
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Unknown B
You just a creep on a plane watching.
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Unknown A
I felt. I was so horrified. I was so horrified. Anyway, the first thing I was looking for was, did he get canceled? Like, did they pull him off? Because that would have been. I was very curious to see how they were going to handle it. I think, as far as I can tell, Elon put him on. Not safe for work. Very good move. And then, for whatever reason, Kanye completely shut his account down. Now, I don't know why I didn't hear any explanation from him. But, dude, there. There is a very, very distressing level of anti Semitic hate. That's just like a thing now. It's crazy.
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Unknown B
I'm just gonna say this. Over the weekend, it was announced that Doge is going to audit the Pentagon next. I retweeted the article, and I was like, if he audits the Pentagon, Elon's going to get assassinated.
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Unknown A
You think for real?
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Unknown B
That's military money. Like, the CIA has shooters on deck for that. So I literally. That's all I was like, they're about gallows humor.
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Unknown A
Gallows humor. I don't actually find it funny. That's just horrifying enough.
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Unknown B
But I literally retweeted, like, they're about to assassinate Elon. I was in Twitter jail this weekend, so I could. I could. They, like, they, like.
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Unknown A
Because you said the word assassinate.
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Unknown B
Yes, I put assassinated Elon. And that was my one tweet the algorithm got you. And I was shut down for 12 hours.
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Unknown A
Oh, damn.
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Unknown B
Meanwhile, somebody was. Went from Nazi to porn, and they had a whole 36 hours of just. This is craziness.
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Unknown A
Okay, so one. That's probably a good thing in that. Hear me out. In that free speech is about allowing people to say things that you absolutely fucking despise. Let me be very clear. The things that Kanye said, I absolutely fucking despise. However, I think he has a right to say them. But if the algorithm mistook your statement for assassinate Elon, a call to violence that is adjudicated and illegal and violates the First Amendment, in which case I would want to see that shut down, because I don't want calls for violence. Now, you get into debates about. Well, when you've got somebody spewing that kind of hate in aggregate, it does become a Call to violence. And I get that, I get that, but I still don't think that you can shut it down. I mean, I'm. I grew up in the age or just after, when the ACLU was fighting for the right or the Anti Defamation League, forgive me for not remembering which organization it was, but they fought for the right for Nazis to march through a Holocaust survivor community in like, Michigan, Ohio, somewhere in the Midwest.
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Unknown A
And I was like, yeah, it's disgusting and you wish that nobody thought that way, but it is their First Amendment right. You don't want people adjudicating what you can and can't say. You just don't, man. So listen, I was mortified not only to see, oh, because Eric Weinstein posted is something that really bothered me as well. Not what he posted, what people were posting to him that he showed was happening, where people were just like, slur, slur, slur in his feed about whatever he was talking about. And they're just like, okay, slur. Okay. I don't even know. Like, to say it in that context feels like a slur, even though technically it's not. That really makes me sad, dude. History repeats itself in a way. I don't understand people not checking themselves. Like, if you find yourself with someone that you hate, let's say you hate them.
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Unknown A
If you find yourself trying to convince other people to hate them instead of focusing on the issue and saying, this is why this issue is a problem, you're. You're going to exacerbate that sentiment. It's just bad mojo, man. It's just bad mojo. You want things that make you feel expansive. You don't want things that make you feel like you want to fight and you want to hurt something. Not that there's not a time and place for that, because my whole thing with authoritarian rule is the very thing that brings that out in me, admittedly, but I even. I don't trust myself. I don't want people to just blank and go, well, Tom said it, and therefore, I'm not saying I won't ever get hyphy on something, but, man, people got to be a little bit skeptical. So anyway, that was very unnerving to see how many people get on board with anti Semitic shit.
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Unknown A
That is a bummer for me.
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Unknown B
Yep. And last one breakthrough at Oxford. Scientists achieved teleportation with quantum supercomputer.
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Unknown A
No, they didn't.
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Unknown B
I was super excited. I thought we were in Star Trek. I was so excited when I seen this article.
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Unknown A
Yeah. So way over my head. This is definitely where we need to get Eric Weinstein here. But I'll give you a quick rundown of my understanding of where this is very encouraging step. What they're showing is that they can, they can use the fact that quantum entangled particles can communicate instantaneously, meaning faster than light, with each other across obscene like universe scale distances instantaneously. If that's true, then basically everything is information. And somehow by quantum entangling things, you can do things even faster than the speed of light. So it sort of is teleportation. If you were able to say, hey, every whatever quantum bit, I'm not even sure what they would say the body is made of. But if you could somehow quantum entangle every bit in your body and also have that exact quantum structure somewhere else in the universe, and you could, then I guess you'd have to measure it and then suddenly the other version of you would know what it's supposed to be.
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Unknown A
Yes, but like, oh my God, when I say that you would need additional breakthroughs in physics, which have been real slow in coming. You would need additional breakthroughs in physics to actually teleport. So this is all writing on the back of. I think, I think again over my head, over my head, over my head. But I think this is all an echo of the idea of information theory that everything is just information. And because things can be quantum entangled. Oh God. Does it warrant explaining what that means? Really fast layman's explanation to quantum entangle something means that you have two particles that must be the reverse of each other. So if one is up, the other is down, like it has to be. It is a law of physics. And so now they're quantum entangled. So they are, they are opposites, but because they have not yet been measured, they are in what's known as superposition.
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Unknown A
So they are both up and down. But the second you measure one of them and it assumes a state of either up or down instantaneously, no matter how far away it is, the other quantum entangled particle must instantly become the inverse of the other one. How? You live in a simulation, boys and girls. I mean, I have my brain. I am not, I may not even be artificial general intelligence or human general intelligence. I, I'm certainly not human super intelligent.
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Unknown B
Okay.
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Unknown A
So, yeah, I don't know how it's not a breakthrough.
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Unknown B
We want it. But really quick. If you could teleport one thing, what would it be? Rapid fire. First thing that comes to your mind.
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Unknown A
My consciousness.
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Unknown B
You would teleport your conscious?
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Unknown A
Yeah, I want to. I want to be able to travel the cosmos? You don't want to do it in your body? Fuck that. Like your body is so.
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Unknown B
That was a way better answer. I was going to say a cheesesteak from Jersey, but okay, what if I just. Boom. It's so good. Like the brain is different.
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Unknown A
Here we now I want to have a conversation with you. If you had a magic genie and you could ask for one thing, what would you ask for? But I know we are unfortunately out of time. Everybody, if you have not already, be sure to subscribe. And until next time, my friends, be legendary. Peace. If you're a business owner looking to scale, I can help. I assume you're here because you know the world is a freakishly complicated place. But with the right rubric for decision making, you can navigate even the most complex problems well. After scaling my last company to a billion dollar exit, I knew I had a winning formula. Something I call the physics of progress. It works in any industry, in any economic climate. Bull market, bear market, doesn't matter. Every complex problem can be solved if you know how to approach it from first principles.
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Unknown A
In the end, that's how you avoid getting trapped in plateaus. Think about the biggest challenge facing your business right now. Maybe your revenue drops every time you step away. Maybe your industry is affected by tariffs or your business partner is holding you back. Maybe your marketing is no longer working, or you hate social media and everyone tells you that's where you have to be. These problems can seem impossible until you approach them from first principles. That's exactly what I teach inside the Billion Dollar CEO program. I'm only working with a select group of entrepreneurs right now. But if you've got a real business and are looking to scale, apply now. Visit impacttheory.com scaling or click the link in the show Notes to apply again. That's impacttheory.com scaling if you like this conversation, check out this episode to learn more. Doge finds a massive bombshell in usaid.
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Unknown A
Michael Saylor goes so hard on Bitcoin that even Satoshi said damn white people. Twitter call for Elon to be guillotined and there was no winky face emoji. Trump bans trans athletes from women's sports. Google quietly removed.