Will Big Tech CEOs Win Their All-In Bet on Trump? With Saagar Enjeti
Channel: Alex Kantrowitz
Published at: 2025-02-19
YouTube video id: rTpI11yBSD0
Source: https://www.youtube.com/watch?v=rTpI11yBSD0
let's check in on Silicon Valley's Trump embrace the US China AI War Apple products tiktock and plenty more with breaking points host Sager and Jetty that's coming up right after this welcome to Big technology podcast a show for cool Ed Nuance conversation of the tech world and Beyond we are joined today once again by Saga and Jetty he's the co-host of breaking points which you can find in your podcast app of choice or on YouTube highly recommend it I've been looking forward to this conversation for a while we're going to talk all about how the tech CEO Trump bet is going to pay off or maybe it won't and we'll also talk about us and China fighting over Ai and then a bunch of other issues that Sager and I have been texting back and forth on including how bad apple intelligence is so Sager great to see you welcome to the show good to see you man thanks for having me it's good to be back great to have you back all right let's start with the tech CEOs and Trump we saw them all at the inauguration sitting like peas in a pod Zuckerberg Bezos Sundar Elon all together and then I listened to your uh reaction right afterwards on the realignment podcast which is another great show that I recommend and I was sort of surprised to hear you talk about how this might not be the wisest bet for them because the vibe might shift over time so just give us like your perspective on where things stand with them and where you see the risk yeah I think uh just connecting those comments what I was getting at is uh there's just this sense of nakedness from all of this which I personally find really gross uh and I try not to hold myself up as two partisan or anything like that but I know a lot of people who are very explicitly partisan nobody's buying this okay like let's just all be very honest like we can all understand that outside of Elon the rest of them are doing this purely for business purposes um and they may be correct in the short term but there's just something really dizzying for the American consumer for the shareholder for the employees for the leadership of these companies to go like record scratch every single time that there is an election right so 2014 we're Libertarians 2016 we're pro censorship or whatever you want to call it and then Dei and we're leaning in this entire time and then uh then we're cancelling Trump and we're doing Libra and we're doing oversight whatever the [ __ ] do you remember that oh when Zuckerberg had his like quasi Supreme Court thing and then it was all fake and then B and then but then and then we're pushing against Biden but only because we're kind of upset about Lena Khan and then now we're name checking the cfpb on Rogan and we're admitting it's like what is happening here you know it's this is just and I just outlined eight years so I think what I meant by it is uh there's a way to just do this I think by just being genuinely principled and uh ironically Apple seems to be the one that I think has handled this the best so Tim Cook uh you know I'm not saying that his company hasn't been woke or whatever um but the thing is is that if you read uh that book I forget exactly what it's called it's after Steve the New York Times author who did that book about uh apple he did a fantastic job of laying out how Tim Cook did a a masterful job of play Kate his employees always always calling up Donald Trump and giving credit to the Republicans he is the ultimate like bipartisan Warrior where he's got credibility with the left but Alex I'm sure you remember this immediately after the tcja the tax cuts and jobs Act passed Tim Cook was like Hey we're repatriating all this cash to America Trump was putting out tweets about Apple Tim Cook very masterfully kept Apple iPhones out of the China tariffs that were happening he had a direct line to Trump all throughout the the entire Administration uh there wasn't anything in particular that he's done since to like piss off Maga and I think what it gets to uh is that Tim Cook had and apple in particular with their privacy first model and even in some of their intro Wars with Facebook uh what they have shown is that they're willing to pick fights based on their own like they have a they have a framework through which they view the world and they it doesn't seem as dizzying and so in a weird way I really respect the way that Tim Cook is handled the entire Trump era it doesn't seem as dizzying as the Mark Zuckerberg or the Sundar Pai or even Bezos I mean it's just cartoonish you know in my opinion to see these people flip so much on a dime yeah it's definitely weird to watch especially as a reporter covering these companies and I can't imagine I remember being in the audience while at one of Facebook's developer conferences hearing Zuckerberg talk about how we should build Bridges not walls or something like that while Trump was being elected and now I mean a lot of people lot of people did have shifts one way or the other over the eight years but now just like being Trump fan number one uh on Rogan but that being said here's the Counterpoint um it's working out for them it really ising out for them throughout all this flip-flopping you know they've maybe figured out that politicians in power just want to hear you say that you're with them and they're the most valuable companies in the world I think that's absolutely true for Trump I think what I'm just saying is that uh they're losing genuine Democratic trust like I mean one thing that Zuckerberg I I guess I'll return to this do you remember Obama I think it was 2012 State of the Union and he's like we're the nation of Facebook of Google and uh America was like yeah we're the nation of Facebook and Google there was a lot of trust man people loved uh Facebook Google like the Amazon I mean they were held up I remember at one point Amazon had some 90% type approval rating by the American Consumer the most beloved technology brand in the entire country there was a sense that they were not only our best and their bright the Juggernaut of our economy but in the interim by in the way that I think that they've handled their politics I don't dispute that they won't get the tax whatever treatment that they want under Donald Trump I'm just thinking about I'm taking them seriously all of them tell us we're Cent we're going to be a century old company we're going to the moon what we've done so far is nothing you know listen to Zuckerberg and take him seriously when he seriously believes that the most important work he's ever done is today on AI on meta like the metaverse and all of that look at the way in Google look at the capex these guys havei they tens of billions right it I mean what was it 75 billion last quarter on AI spending that I just read in the in the journal so like in in their minds they're making a century long bet for the future and I don't think that a great company should conduct itself this way and you know the uh the way that I can compare it to is wall street because Alex you live in New York and you've covered the bankers and then well Wall Street has been a juggernaut Institution for over a century and they have welldeveloped norms and ways that they handle both parties they have ambassadors yes they're shuffling and Jamie Diamond occasionally makes a fool out of himself a little bit although I'm totally with him on the zoom thing can I say that I absolutely love this room yeah we played it on a recent Friday podcast to basic whole speech about Zoom it's amazing so good I mean I said this this is what I said I said like basically you know I believe that workers should have flexibility like if you need to stay work from home stay with your sick kid you should be able to do that without having to fight your manager but what Jamie said was actually like objectively hilarious way he put I almost have an age bias on this where I think everyone under 30 should have to go into work and I I maybe you AG did you ever go to the BuzzFeed offices were you in person with I did I for me actually so I also I never got a journalism degree so for me I freelanced and then first I was in sales then I freelan and worked my way into a staff job at newsrooms because I needed to learn from colleagues and editors in person and I think you're right about there's there is and this is something that diamond pointed out as well there's something about young people being in the office that if you're not there you are losing out on a on a big development moment for your career without a doubt I I could not agree more and that actually is the part of his rant which spoke to me the most um you know I'm 30 33 now so it's like look you know I've made plenty of friends and I you know we're more established in our careers we can just reach out to people and meet with them but there is something to be said about the office when you're 22 you don't know anybody else you know you're College friends that's it and you expand you create a professional Network you learn you all grow together it's really fun you become a cohort almost like a mini family and you you'll introduce people through them so I do think that something if you're 22 and you're starting out my my number one advice for you do not take a remote and especially if you're trying to do a job like you and I had The Newsroom is one of the best place places in the world to grow up like it's so fast-paced it's so fun you absorb so much through osmosis you learn a lot from your bosses you know by definition it's like an open environment which is very reactive it is uh it's just one of the most exciting places to be but returning to what I was saying is if when I compare the technology CEOs and the way that they're handling everything it feels uh as if it's unmowed from a sense of like who they are and what they're trying to be whereas when I compare them to the Wall Street Bankers the Hedge funders and all of that they have well oiled machines networks Norms principles Etc in how they deal with politics with principles they're wired in as opposed to uh being so reactive in the public I just don't really believe that Jamie Diamond who's been on the political scene since Barack Obama now I'm a central figure in American politics he would just never have the heel turns that Mark Zuckerberg has had just half the amount of time in the last eight years so maybe I hope this is coming across no it is it's definitely coming across and you know as we're talking about this I think the real question that that comes to mind is okay so it doesn't look like they're suffering too much they are flip-flopping a little bit and that is hurting their image a little bit and it's you know sort of maybe detracting from their ability to be great American companies I think you know the thing that a lot of people are thinking now is we've seen how intensely they've gone toward Trump and that's maybe the real question is and you mentioned this I think in your reaction right after the inauguration this is the United States of America the political wins change you know at one point Trump could never be the president then Trump is the president uh Trump won't lose and then Trump loses because you know Co happens and whatever people rejected his version of of uh leadership January 6 happens there's no way Trump will sniff the White House again he is he's the president now and then now it looks like all right he's going to you know leave and there'll be eight years of JD Vance but we don't know that and things change quickly and it's been interesting the magnitude with which these leaders have gone towards Trump the fact that baso stepped in and blocked the kamla Harris endorsement at the Washington Post that Zuckerberg you know now is uh three hours on Rogan talking about how how the the Biden Administration yelled at him and he's really upset suar doesn't say anything but you know he shows up at the inauguration there um and he like very hesitantly uh did anything political beforehand and talked about how disappointed he was about the election results after 2016 now they've all so fully gone towards Trump I think this was your point the political world's winds might shift again and that could leave them exposed yeah yeah that's what I mean because not only do they not have credibility with liberals and all of that it's just that I don't believe you anymore and there's something to that which is really difficult you know for for people like us who not only do coverage like I'm just not going to believe a word that they ever say it's just and maybe I shouldn't have ever but uh you know I've read a lot about these folks I even gotten to meet some of them which is kind of interesting and there's just a sliminess that I'm now feeling at this point uh where I'm like ah well you know when you give a whole speech and you bet your whole company behind lean in like Zuckerberg I think I texted this to you oh yeah um it's like dude like you hired Cheryl Sandberg and then he was talking about feminized corporate culture I'm like you are lit like outside of Cheryl you are more responsible for that than any individual in the United States there's there's just a cognitive dissonance on that is crazy and then I remember how much he used to hold her up as the icon of the company and backed all these this leanin stuff which I mean look I've been against all that crap from the beginning but my point is is that it's just surreal to watch it so then like I've said in my political analysis The Winds of political change in America happening dizzyingly and part of the problem is that we always have temporary Amnesia and and so I give this example you know it is February of 2025 when you and I are recording this well let's take it back to the last time a republican won the popular vote and let's say it's February of 2005 what are my narratives politically America's a Christian country get over it we will never see gay marriage in this country abortion will be over soon um we are neoconservatives we're we're into nation building Iraq will be a great Democratic experiment the American people want to be safe 2006 the Republicans get blown out in the midterm elections it happens in a span of one year Iraq goes south Hurricane Katrina is a disaster privatization of Social Security Now Nancy Pelos is a speaker of the house Barack Obama four years later wins a state of Indiana and Ohio and North Carolina all right so do we see how quickly things in this country can change things can go south and not even in 12 months uh Joe Biden his presidency fell off a cliff in October of 2021 that was the first day that his uh approval rating switched from positive to negative so you know it feels like quickly and you know in the grand scheme it kind of is that's nine months like we still have a long way to go to October so that's part of what my problem is with the tech guys is what am I going to be hearing you say two years from now like are we just going to yoyo in between all of this and they claim that they've learned their lesson but I just don't believe it because of so many different turns that they've made in the last 10 years you know yeah they'll shift again and also like Zuckerberg Zuckerberg comments like I understand if you want to take a you if you want a break from you know the previous political philosophy you had but to talk about how your workplace is too feminized it's just like what what are you saying just just whatever alog together that's kind of rude um let's let's talk about the person who we think has um real a genuine political feeling here and that's Elon I'm going to run this episode back to back with an episode uh that we had with Chris Hayes and he brought up the fact that musk and I think a lot of folks on the left believe this is flying too close to the Sun Actually I don't even think it matters uh politically like there's clear it's clearly uh uh the case that musk is taking a major risk here by being so close to Trump a you know he could potentially upset Trump and fill out of favor and incur the Wrath on that front we've seen that happen but before B uh you just think about the fact that again the political winds will shift again the next Administration that comes in that's not align with Trump may say hey let's take a look at let's let's Doge those SpaceX contracts or why are we buying Teslas yeah if you're whoever if you're Gavin Newsome Administration you're done like it's it's I'm going to use the exact executive order pres president and all those contracts are getting canceled this is not an endorsement by the way I'm just saying that's the world that we live in now this is politics yeah so how do you think this goes for Elon I I really don't know I I'll be honest I didn't even think we would ever get here I already where we are is crazy uh I really did not think that Trump would ever allow someone like Elon to upstage him I guess my only theory of it is that Trump is most mesmerized and Amazed by elon's ability to attract the same level of detraction and media capture that he does and that this is all a bunch of stuff that Trump wants anyone ways so he would rather Elon absorb that Elon I think Trump also no I've covered Trump for a long time I've observed him a lot and I've you know and and the thing is and even my own interactions with him I feel like the thing he cares the most about is attention and so Elon is a lot like Trump in that he is a magnet of attention a driver of conversation I think Trump has really come to appreciate elon's ability to shape narratives and exactly whichever direction that he wants but I mean it's objectively true that he is flying very close to the Sun and there's a lot of risk for Elon politically because you know project 2025 is a good example project 2025 if we're all being honest basically had the blessing of the Trump Administration and a lot of people are going into Trump and uh it was the def it was the plan let's okay again we can the election's over we can all admit it it's obviously was the plan all along well uh when Trump realized that it was unpopular he denounced it and then said that nobody was ever going to work for him again whoever worked for project so he's you know very quickly would be willing to come out and to denounce anybody with attach to something that becomes unpopular and that's another thing where I would say to Elon and the rest of the Doge crew and all of that is listen guys like you know I you know even if I were to respect some of the work you guys are doing and all that you just got to be careful the way way that you're taking all the credit on this because if it goes south 100% of it's going to be on you it's a very non Washington way of operating so yes he absolutely setting himself up for a lot of risk both in the future and not so I guess all I can think of with Elon is I think he just believes it it's pretty clear like he took the red pill uh a not a few years ago much later than most I guess had just went fullon the way that he does with everything you know if you read some biographies of Elon uh this is how he always half he's all in when he's in he's in this is all that he does but the risk is also you know having read some of that is uh he does tend to have falling outs with almost everybody who he's involved with except for people like Peter teal and a few others but even they they bet on him but they don't directly work with him in terms of the people who actually directly work with him there's not a very good track record so I have no idea how it will go because it's already gone much farther than uh than I ever thought it would but I see big risks for Elon I see huge existential risks to his companies to uh I mean to himself his reputation uh I mean I don't know I mean Alex you tell me because you've actually written about these companies like if you're a democratic Administration um and you're the board of Tesla like are you keeping Elon like is it really is that even you can't I mean we're talking about a You Know M what's the market cap of Tesla and all that the existential risk of him to the to the stock at this point is just it would be outrageous enormous like it would literally be almost a company killing event actually I'm going to I'm going to revise I I might still keep him I mean it is a story stock but it's it's trading multiples many multiples of Ford because Elon is there and it was you know before the election it was running up after the election basically almost doubled right I mean just the increase is crazy uh but the thing is the story can reverse right now all that upside becomes liability but the question is where the floor is and the floor could be much lower than it was before the election because you have a lot of liberal voters who now have these bumper stickers on their Teslas I bought it before I knew he was an [ __ ] uh you have a lot of Tesla dealerships in blue cities um and okay you have the Cyber truck and that is going to be a symbol of you know being conservative and being pro Trump about until Trump or if and when Trump turns on Elon so it's it's very very big risk I I totally agree I actually think that's the biggest risk and also considering how that's the literal vast majority that's of his net worth so it's like that's everything so I don't know I mean I remember remember when Elon a few years ago did that poll and he's like should I keep doing Twitter or should I go back to CEO of Tesla I was like bro CEO of Tesla I was like I'm a Tesla shareholder I'm looking out for myself man yep well but then he he did hire a CEO of Twitter but we all know that he's still calling the shots right so um I just keep laughing at the um scene that happened where his his kid ex um I think he told Trump to shut his mouth up and then uh picked his nose and pushed it on the Resolute desk it's like I just can't imagine I could never imagine Trump allowing that scene to play out without repercussions with maybe anybody else but Elon I agree and that's part of why the relationship Dynamic is just odd uh I don't know if I was working for Trump I'd be furious by the way I mean if his press secretary or somebody like this I don't want to answer questions about somebody else I want to answer questions about people who report to me who are controllable so I don't know but like I said it's already gone so much farther than I ever thought so I really have no idea where this goes the narrative that will come up if this goes longer is that Trump is old and Elon is basically controlling him and he's really the President right which I think is a terrible narrative for Trump um I mean this is where the Liberals have a point like well okay so the Liberals are overstating it they're like nobody voted for Elon I'm like well well I don't think that's entirely true I as close as they were yeah it's like it was pretty close like he he was on the stage he was at the election party he was doing the spaces you know he was on Rogan making his case the day before the El looking directly into the camera so I don't think it's true 100% nobody voted for Elon I think a lot of people did actually vote and are excited about Doge but I mean nobody voted for him to have unilateral control and that is where the risk comes with Trump is if Elon I mean I'm going back to Katrina right which was and this always happens there's going to there will be a natural disaster I don't wish it we know that every presidency there will be a disaster so let's forward Alex this horrible crash which happened here in Washington let's forward 18 months um even if as you and I know politically even if the Doge firings had nothing to do with it politically that's going to be a real tough thing to crawl out of and so you and I could see EX like if anything the administration is lucky to happen in the first week because it's obviously had nothing to do with them but let's say 18 months later I mean we again using the Katrina example Bush was crucified for bad FEMA response uh the Biden people remember they were hit hard for the North Carolina floods and their lack of response so we I can I can just I can see it on the horizon like let's say there's a hurricane and currently doge is going after Noah the National Oceanic administ the guys who fly those planes into hurricanes it's like man you just just need one thing and if you don't do it right even if it's not your fault they'll hang it on you and they will I mean especially with the media now alligned against you uh with the Democrats like I I would not want to be in that position okay I have one more question for you about Silicon Valley and the Trump Administration and then we're going to move on to AI this is a question that I have that's been sitting with me and it's like nice to have somebody who knows Washington to field it how influential have the all-in folks been in this Administration and we also know that Mark andreon spends a lot of time talking about how involved he is um so how involved is he actually um well okay so no offense to the crew of Allin but it's David and then the rest of them so like David is obviously very influential but you know this is a great lesson because I know there are tech people who are listening David has always been political David produced Thank You for Smoking remember David was part of the Stanford review he's always had an interest in Washington and in politics for years for he was interested and I've known I got to know David over the chasa Boudin recall I started interviewing him even I think before Allin because he was starting to get involved in these elections in San Francisco and others so the thing is is that David swims and knows the world of politics very very expertly and uh by the way I have zero Insight information so I'm not speaking from any place of this is just purely me analytically but remember he really bet the house on becoming somewhat of uh of uh like an expert if he his detractors would say he's an idiot whatever on Ukraine an activist can we say well he he he at the house becoming an activist on Ukraine and I would say he is probably one of the single most influential outside voices on the Ukraine conflict in all of the United States first because of his influence on musk originally but then also for his involvement the donation the fundraiser for Donald Trump and now as the AI cryptos are so when you put all of that together he really used his ability to both post his public profile and his past political experience to bring it together to be in my opinion one of the most powerful people we've ever seen in Washington who is a representative of Silicon Valley Mark andreon I also would say is actually quite similar um Mark even though being somebody who's been involved in tech for his entire life literally since he invented Netscape but in that period as you know Alex he always has been interested in politics as in especially the last decade from the Trump Administration he's constantly been tweeting uh not only about politics but about a lot of the books and theories that he has about that and his involvement more recently in Washington predates the Trump Victory and really was like laying the groundwork for his involvement in his theories of government so I definitely don't think that either of those two narratives are underplayed and look no offense again to the Allin guys I got to meet meet them uh during the inauguration and all of that but I I just think David is far more influential of course chamath and the rest of those guys they went to the inaugural ceremony and to the extent that those guys have quote unquote an in it's because they're they have the popular podcast but I would compare them more to like media influential as opposed to genuinely politically influential which David now is as the literal AI cryptos are in one of the most transitional Tech periods in like modern history yep all right so on this show we've been talking a lot about uh deep seek from a techn from a technology standpoint I'm actually interested to hear what the rise of Chinese AI is going to do to uh us China relations and the attempts to regulate or the attempts to bolster the United States AI industry so why don't we do that when we come back from the break right after this and we're back here on big technology podcast with Sager and jedy he's the host of breaking points you can find it on your podcast app of choice or on YouTube so Sager I'm curious you know you've been dissecting what deep seek means for uh us Global AI policy um you know obviously it sort of took a lot of people off guard the fact that China who for the Chinese companies for a long time have not been able to build the best models all of a sudden jump in they have a model that re about as well as the best that the US can offer uh is open source and is cheaper to run so what are the geopolitical implications of that and are we starting to already see it play out oh absolutely and as you could already see from uh David Sachs who were just talking about he had initially had a response there from the white house uh this caused like Global Market reaction already JD Vance is in France giving speeches about AI I really do believe this will be you know the in the way that the Clinton presidency is largely remembered for its transition to the internet I think that in the long term we may view the Trump years at the second Administration as the AI presidency in terms of the way that our economy and our life and all of that were transformed and in that I think there's a lot going on here and um first and foremost is an interesting Clash within technology itself so this will be a huge fight going forward around export control so a lot of people were passing around uh after the Deep seek Revelation but that Alexander Wang clip where he was like look they obviously have more Nvidia h100s than they can admit because they're going around export controls and then I was not even aware of this how 20% or whatever of Nvidia revenue is in Singapore I'm like yeah I'm sure Singapore leads a lot of chips it's like oh fascinating right it's obviously leakage in terms of uh export control to China it makes sense too why Nvidia was pushing back so hard in the later days of the Biden Administration against tightened export control rules I hadn't followed it fully at the time but putting it all together I'm starting to it's starting to click um how much of Revenue that they alone are also kind of relying on by a trans shipping chips But but so at a broader level we have like a couple of choices and interesting paths like one would be okay we should just go full open source we should the these companies should stop stop individually chasing this 75 billion per quarter on AI we should focus on efficiency well one of the Tells to me that deep seek was not quote unquote as revolutionary as people said is because the companies are still spending the money and so what they took away from that as I understand by open Ai and others is that they saw that their model was used by the Deep seek hedge fund to train off of and so actually what's happening is the net effect of what happens whenever you have kind of breakthrough technology if we think about it like the atom bomb um well what happens is that inevitably you have scientists copying other scientists and so that leads to closed circles secrecy closed models National Security concerns and overall like geopolitical uh geopolitical uh implications of your individual business decisions such that it no longer really becomes about Nvidia or meta stock it becomes about the United States of America and I think this will be a very difficult thing for NVIDIA for meta for Google and all of them to deal with because I think that in their hearts at least in the past they really were globalists and it makes sense you know meta is they're user based the vast majority of them are not Americans but you're headquartered here sorry and Mark suckerberg you're waving your American flag around on your surfboard or whatever so you've you've planted your flag L quite literally how far we've come from trying to name his kid after she she yeah that's right yeah after doing that as you and I know which is Hil even more hilarious in retrospect so putting all of that together with the Deep seek thing you basically see it laid out by JD Vance in his policy speech where he's like we want America to be the leader in AI we will not allow you know Espionage on our companies so we're going to see literal walls begin to go up much tighter export control a a Rec nition that these companies and this technology is vital and of interest and uh I I don't really think there's any way out of it to be honest because you know I was really thinking about it and it's like well what is the alternative because we could try to have some path of not going down that but it's very clear that the Chinese um especially in the case of deep seek I mean this idea that it's $6 million or whatever to run is ludicrous it obviously cost over a billion dollars uh to train the model before it eventually got to the point where it could run off of that 6 million it's clearly subsidized and at least pushed and allowed um by the Chinese government who themselves I'm not sure you've seen it Alex but the Chinese Tech SCS are tech stocks are roaring um on the Hong Kong Stock Exchange right now uh as a result of the deep seek thing so the government has its own interest and control and all that behind the scenes for them and the Chinese are never going to move away from their own firewall model so in a sense you know naturally the United United States especially to preserve so much of the Enterprise Value and the genu technological breakthrough doesn't really have a choice but to behave quite similarly and I just think that's an inevitable kind of THD stap of any great superpower competition on any technological basis I want to ask you the a similar question that I asked Alexander Wing when he was here which is um why is it such a strategic liability of China takes the lead on AI models like just take deep seek for example yes they definitely trained with a lot more money than they said they did to build this R1 model however the R1 model is like undeniably cheaper to run and so now you have us startups using that model to build products they probably couldn't build in the past so talk a little bit about why it's so strategically important for the us to have the lead and not not China there's a couple different ways I mean uh first and foremost is just um well actually let me give you a really meta way that he's probably never going to admit and this is the truth um America has decided that our retirement plan is number go up and our numbers need to go up that number can't go up if we're number two and if we're subject uh in the 20% of our GDP which is technology the fastest growing sector uh the Magnificent 7 comprises what percentage of the S&P 500 like 20 to 25% depending on the day or 30% sometimes let's let's look at this realistically like at a basic level we don't have a choice like we have all chosen that America retires because the number goes up and the number is not going to go up if we're not the leaders in the technology because it means that we won't be able to unlock the Enterprise Value and have all you know all of the benefits of network capitalism and AI but at a more like basic level the United States especially with respect to technology with uh it's with research and everything the implicit you know deal that we've all made is that like I said we're not going to have government retirement or government healthare or any of that but in exchange we will be the leaders of the global economy of the world um and you know rule the rules-based international order to the benefit of the American Consumer and so at a really like high level strategic wise it's the same reason why Sputnik simply could not be allowed to stand it's because even if the terms and the way that we're fighting seem ridiculous the notion of space Supremacy by our adversary or technological Supremacy beating us in that category just means their ability to compel our Behavior so at a very like meta level in terms of why it's strategically important it really is gets back to that th's trap idea of we don't when your adversary is to choose development down a closed path which would allow technological dominance over you you either have a choice to like reach your hand out shake hands have some mutual agreement where that's simply not going to happen and then have the trust the enforceability in such a contract that you can ensure things stay smooth that's not going to happen unfortunately or you have the chance to respond and so uh yeah I just I don't even think of it as AI I think about it as the way I would any breakthrough technology I would give you the exact same answer yeah and there's been some talk that like okay well AI is both a business uh but it's also a weapon and I am curious like you know JD Vance recently said the fears about AI are overblown so where do you stand on that question because I Ian think about it every day so every day I either am an alarmist or I just think it's all ridiculous so you and I want how you go back and forth and same thing happens to me where I'm like this the chat GPT can't tie its shoes but on the other hand you're like oh no this can control computers and build deep research reports like oh God what's going to happen next that's how I feel so I use claw I'm a claw guy I can't really tell why I just like the interface um for data an we talk about it a lot it's pretty nice to talk to like it actually feels less botlike yeah I totally agree and you know for data data analysis look I'm not the typical person I'm not a coder any of this stuff you know what I really use it for personal finance I go how much money have I spent on groceries this year and I'll be like here this and this is your break that's pretty cool use case I haven't heard that before so you like upload your like bank statements and talk to so I have a budget app which has all my transactions and then I downloaded my trans action for the last years uploaded it to Claude And I go so how much money do I spend on milk how much money do I spend on eggs um what's my average burn rate on travel so and then also you can uh you can calculate to the literal dollar not only your spending but then you're not your discretionary spending your non-discretionary spending and then if you're trying to budget and project like let's say Investments I use it for investment analysis all the time so I'll be like if I dollar cost average $200 a month into x stock based on historical Returns what is my expected over a 10year period And it it's spits out charge it's fantastic should I have it do my taxes like I'm thinking like I can just upload all my books and see what I do I know the problem is legally Legally you're it's you're getting dicey right so like when I'm doing some [ __ ] stock analysis like the stakes are not that high but with doing your taxes is I mean I would obviously CES yeah I mean maybe you should try it tell me tell me what you think I'll keep you posted it's cas thinking about AI um do you have you ever used Tesla full self-driving I haven't driven with it but I've been in the car when someone put it on okay so uh I have a Tesla and I have full self-driving so that's where I don't buy the AI hype I have been hearing for years oh this car is going to drive itself no it's not Tesla can barely turn left bro and even when it does even when it does turn left it turns left like a right angle you know or uh just the other day you'll love this example cuz this just shows how Dynamic and difficult it is to try and accomplish this problem it snowed and the snow got caught in the lights the red light like in the the cup that holds the lights so the Tesla could not distinguish whether it was red or whether it was green so my eye could I could tell like oh right up there there's a little bit of red light green light but there's so many different things or there's areas where I live where you can park the in this Lane sometimes but not others and so the Tesla if it sees it open will want to get into that lane even though I know you know oh it's 400 p.m. I can't get there my point is is that I've even with all of the hype and even with let's be real the best self-driving technology available in the US it's not that useful unless you're on the highway is it that much better than Toyota assist or than Honda's assisted uh assisted autopilot yeah it's good it can change lanes and stuff like that but I've been in a BMW that can change its own Lanes so my point is is that even with Tesla which has thrown billions at this problem which is the world's leader and all of that I've owned this thing for a couple of years and it's definitely gotten better but it's not that great and that's as in I'm not I'm not taking my hands off the wheel anytime soon um especially whenever you know if you have your loved ones or others who are have you been in a wayo before I haven't been in a still want to do that um I've been around them in Austin and but I think the use case is a little bit different U just in terms of what they're allowed to do Etc in terms of the definitely there's predescribed uh routes that they can take exactly and so that's what I mean in terms of they can do it because of the predescribed routes and their select area but I'm talking about I've driven my car all across the entire country and there's just so many cases where I go ah the driving it just it can't pick up the Nuance of this whole situation and so that's kind of how I feel about AI on the one hand you know for years everyone keeps telling me we're going to conquer driving we're going to conquer driving I'm like no you're not it's just literally not going to happen anytime soon um but the other you know I get to I see this the you know the AI SA people put up this report about they develop personalities and you know they at a certain point uh what so-called AGI may have already been reached and the ability to to turn it off May soon be soon be going past or you know the nightmare scenarios of like once they have developed their own value systems uh that it's very difficult to program them off or even scarier is incorporating human value systems that we can't even all agree on into these things so I think that the existential questions are important but yeah I oscillate between being an alarmist and also just being somebody who's like eh is it really that different or is it just a better Excel you know my black pill case for AI is congratulations you're all going to have ai assisted Microsoft teams while you continue your continue your consulting jobs you know um I'm I'm sure it'll do better data analysis and I'm sure it'll increase efficiency I'm sure it'll be a great tool but I'm still a bit skeptical in terms of its ability to change everything about my daily life on your Show recently you had a very interesting uh analysis about how they started to develop their own value systems that AI agents would um s AI models as they got smarter would develop their own value system I mean that's this stuff like is crazy to me we also we talk a lot about on the show about how AIS have started to deceive their evaluators so if you're like trying to evaluate whether something's Ying to its value system and it's not the AI will just sort of try to fake it so you don't reprogram it I mean this stuff is Right The Cutting Edge of this stuff is amazing yeah I don't know I I I really am torn I like to listen to the technologists I just keep my eye on a I I think what I do with AI is the same way I do about any subject which I know is controversial is I just read the whole gamut and I try and experience a tech for myself and then kind of see where I land right now I'm not yet a complete Doomer I'm not a it's going to kill kill us all I still think that the dynamism and the experience of humanity and of Our Lives is still just way more complicated than it it seems that it's much more complicated than people might be led to believe that's why I always use that car example of who could ever program in that it was a snowy day and that the red light gets covered or who could ever program in uh you know these time limits or you know even even sometimes pedestrians and where they cross illegally and I know that there's always some idiot who's going to try here around 7 a.m. but the car is not going to know that or even in terms of break speed I found that it breaks very hard uh even when it doesn't you got to try the wayo and we got to have you back on because the breaking Theo is is pretty unbelievable where is right now Francis in San Francisco it's in Phoenix coming to La I think it's maybe four cities but I'm sure it's just going to be all over the country pretty soon it's expanding wildly fast so look my number one argument against the fact that AI or against this idea that AI might kill us is Apple intelligence I mean use that stuff and you're just like we're good you um basically described the problem with apple intelligence messages have yet to experience a single useful AI summarized iMessage I mean it's the most visible feature in apple intelligence and it sucks um give me your your unvarnished opinion about Apple intelligence I I'm I am the biggest apple Fanboy you'll ever meet as you know I bought division Pro on day one okay day Vision Pro right after this yeah yeah okay all right division pro day one holder iPhone 16 whatever what iteration are we on 16 that's whatever I have 16 day one holder day one for Apple intelligence I have never been more disappointed in the Pro you know I really should I I got to credit Maris brownley because he's totally right I'm an idiot I'm the sucker don't ever buy a product with the promise a future product and that's what they did with this phone is they promised us all of these cool features with like you said text message summary email um oh my God my wife has we both have the same phone and she actually uses the Apple Mail app and she's showing me Apple's AI ranking of her mail it's terrible she had to turn it off right and so that's the thing I don't understand I don't understand with apple is I know you can do it and you're the you know you've got this market cap and you've got all this money and you you're you're the one telling you're doing it the apple way you're like we're going to look at it and then we're going to refine it the way that we always do with breakthrough technology and we're going to make it the easiest possible thing and then we're going to roll it out to all of our customers you guys are going to love it and that's what they usually do but Apple intelligence has been a complete bust I'm idiot for buying this phone um it's really it's not different at all AI Apple AI summaries for my text messages are garbage literally less than useful I think the only thing it does is burn more of my battery the use cases I've seen on mail awful um do you use the action button do you have the new one I have the 15 but I don't really use the action button at all never use the action button not once I don't think I've used it a single time so many things about this phone where it's such a bust I I just don't understand how this happened look I've been doing this for a very long time and I can tell you I've never seen an instance where you have such a high stakes presentation from such a prominent company that UND delivers to this underd delivers to this magnitude astonishing how bad it's 100% agree it's horrible it's horrible the photos thing that's what everybody's saying is cool guys look this is where even with the Apple Fanboy Galaxy's had that for fcking five years years like ai ai editing and and enhancement on your photos the Galaxy's had that for years like I don't know I'm I'm very very disappointed um in all of the Apple intelligence stuff especially because like you and I we use our iMessage and stuff for work and I literally just want to see the message because I know that the AI summary is so untrustworthy so it's actually making my life more difficult so I have to like unlock my phone and be like okay what did the messages actually say as opposed to the dumbass Apple intellig I mean it's been almost a year now right I mean I just I I I can't even I I don't know what happened with this entire thing I thought about turning it off completely just being like I don't want these summaries and they're always they're so dispassionate which is so funny where it's like someone tells you they can't make an event and it's just like you know friend says no or something friend says no and then oh the suggested comments too are always so stupid it's like oh that's tough or I know it's like we can't let the AI take over and there have been some even better uh examples of like on Twitter of people like sharing someone's like sent them like a breakup text and bit it's like just wants to be friends can you imagine being broken up that way my God yeah exactly I just want to experience it in its own words so yeah I'm very disappointed don't they have some new announcement what's that going to be is that the new Mac yeah when this airs would probably be live but everybody thinks it's the SE the iPhone se but it you don't know because Tim Cook says it's going to be a new member of our family of products and it's like I'm pretty sure it's just going to be the same member of your family products with like you know a new chip in it which great but yeah they don't have much to announce anymore yeah they just really don't I don't know I'm really bummed um with the way that it's been like I expected B I really thought Vision Pro was the start of something yeah so I want to he before we go let's hear your your Vision Pro take um is it a paper weight not not for me because I always defended it this way I love to watch movies on it and um I love in particular Apple TV shows the way that it's hard to explain someone who's never used to Vision Pro but Vision Pro on Apple TV has the function where you can put yourself um in a movie theater and so it literally when I'm on my couch I feel like I'm watching Severance or masters of the air or any of these shows like I am in the movies it's incredible especially have your airpods on but unfortunately as you and I know Apple TV outside of severance and a few other things not great content and so I wouldn't say I don't use it as much as I used to in particular also the software has not been updated properly in the way that I thought it would be so it's getting a little bit laggy so there's a couple of things which I'm not too happy about it but I will tell you this every once in a while uh whenever I do need to do the whenever I have a lot of research to do so I love to use that Ultra wide function where I have my laptop and my uh laptop in my lap and I can bring the desktop up and have like 10 different things that are all happening in front of me that is genuinely cool another massive use case for the app Vision Pro is flying airports when you're mobile it's amazing so oh yeah many times many many times you're definitely going to get comments I'll say that but I mean people are curious well um the first time that I ever used it it was kind of awkward because I I was in cinema mode and the flight attendant was kind of talk to me I literally couldn't see her right I I couldn't see her I couldn't hear her excuse me ma'am I'm in a VI movie theater can you she tried to put a drink in my hand cuz she saw me going like this and I was like I was like what are you doing I was like I was like what I was like oh my God I'm so sorry I was watch she was like Oh I thought you wanted to drink and um she's like I saw your virtual eyes on the screen and thought you were there especially especially if you're in economy class uh like me because you don't have that much room so you actually end up kind of like a T-Rex in terms of moving your like moving your fingers around just being like like moving stuff like this and people are always very curious they they're always so curious about it but I'm more of a US it in the airport guy uh for lap for my laptop like actually doing stuff uh while I'm on it so I like it I it's a bit bulky that's my only thing that I'm upset about but I I see why people are uh disappointed because I again the idiot thought that it would get better over time and they haven't updated this thing at all guys like for anybody out there I can't even tell you how much they've just abandoned this thing completely so if you don't like any of the day one stuff on it do not get it because they haven't they've barely done any support or development for this thing new nor new apps no new breakthroughs it's genuinely disappointing what they I'm stunn they haven't updated it because that was always the promise they had this device it was going to get better and I guess they haven't let developers in the way that you would expect also developers have said no to them because yeah they just said they so used to being raked over the coals by the 30% fee Netflix for instance is like oh you want me to develop for you that's a funny idea I'm not doing that I will say you can just use Netflix and Safari on Vision Pro I do it all the time yeah it's actually super easy it's everyone made a big stin about the Netflix thing honestly it didn't do anything um you're getting me excited though because you know what house of the Dragons season 3 is about to come out and when I bought the Vision Pro I season 2 was coming out man when you're watching fantasy shows on the Vision Pro uh oh my God Apple also did a few remasterings of movies so you know that Tom Cruz movie Edge of Tomorrow they did that for Vision Pro 3D Plus in Apple TV so it's 3D while you're in the cinema thing dude that was that is one of the like one of the coolest cinematic experiences I've ever had and I was at home so my dream for the future is a shared VR so that like let's say you and I were hanging out and we wanted to watch a movie that we'd both put the goggles on but we could have a shared space and we could blow it up and then we could like kind of experience it together while also being able to like maybe see each other and be like oh my god dude that was crazy because the problem with the entire Vision Pro right now is that it's just singular experience it's only happening when I'm by myself TV is actually way more social than people think yeah yeah for me like I I would buy if I could sit at like the 50 yard line 15 rows up and watch NFL games you that would be an easy buy I've watched NFL in like 3D and it's amazing if I could do that on the Vision Pro I would pay for it oh yeah but I I don't watch baseball but some of my friends or no no no basketball it has a basket I think NBA had some Vision Pro thing dude NBA on Vision Pro is apparently incredible so I'd say I use it like once a week uh or so especially right now sance is out I love to watch Severance on it uh like now I'm getting hyped for House of the Dragon because HBO has a they have an app specifically for the Vision Pro and their the max app on Vision Pro is insane it's so good yeah it's oh my God man we started this Vision pro segment really tucking down to it and now I feel like running out to the Apple Store and right on it's not worth the money it's just not I mean 35 too much right the promise of it was not what has materialized I have found a way to still use it but actually a lot of my friends who have it they don't even use it anymore it's literally a paper weight like you said I just love TV I like to watch movies so I've been able to appropriate it but that's a shitload of money for an entertainment device right you could just you could buy a pretty nice TV for whatever it costs yes definitely all right folks the show is break points you can find it on YouTube or your app of choice Sager always great to see you thanks for coming by good to see you man thank you for having me all right everybody thank you for listening and we'll see you next time on big technology podcast