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Eric Schmidt, welcome to Inside
Defense. I'm glad to be here.

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I am delighted to be having

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this conversation with you,
particularly here in Kiev, Ukraine. Um,

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you will be known to most

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of our viewers as one of the fathers
of the modern Silicon Valley.

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You're a former CEO

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of Google. You're now a mentor
and investor in some of the leading lights

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of the AI revolution,

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but you've also long been a leader
in innovation to national security,

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and you've played a very

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outsized role here in Ukraine.
You've built and scaled a drone company.

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You've gone frequently to

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the front lines. On this trip, I went
uh to visit the command headquarters

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of Nemesis, which is one

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of the drone brigades uh in Ukraine. It's
the subject of another insider show we've

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done. And

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I have to say, you see, you get a glimpse
of the future of war and it's pretty

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dystopian. Um war is

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really bad. And now I've seen it,
it's much worse than you think it is.

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If you've been watching war

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movies, to watch people really
be killed, really struggling,

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the death and destruction of a city,

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little old ladies being killed
by the Russians, it's just horrible.

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The goal should be to stop

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it. The only way I know of to stop
an aggressor is to fight back.

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And these new technologies have

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both offensive and defensive
versions of each others. Um,

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Russia and Ukraine are together in this
unfortunate pairing inventing that future.

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And I had always thought
that until recently

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Ukraine had the advantage in innovation,
but you wrote recently in the Washington

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Post, it was very sobering, that you
were more worried than at any time since

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the earliest days of this

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invasion. You said Russia was going
towards a strategy of quote total war

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and that that

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was blunting Ukraine's innovative edge.
Can you explain what you meant by that?

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Well, I've been

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doing this for more than three years.
Um, and I've watched the Ukrainians um,

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work really, really

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hard to innovate and they've held the line
largely well at great cost to themselves.

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Um, it's always

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been presumed that Ukraine was the
innovator and Russia was big and slow

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and something changed. Russia is now on an
innovation path at a slope, if you will,

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of improvement that's similar to that of

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Ukraine, but with much more resources.
Here are my data points. Um,

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we have no effective you uh way

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of handling the ballistic missiles
that they're using. And indeed,

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the anti-ballistic missiles,

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al generally known as Patriots, uh, in the
West are in such short supply that there's

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not enough to go around. And I understand
that. If you look at jet shaheds,

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Ukraine sorry Russia invented two

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things and put them together which I can
describe separately which has made jet

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shahads that are

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roving around the country the major
killers of things that are not on

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the front line um there's

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a talk of a large mobilization which will
be more uh human fighters on the Russian

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side against

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Ukraine very hard to fight against there's
going to be a new satellite network in

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the air that's

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similar to Starlink it's called
Rusevet sometime next year. And finally,

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the Russians are building these very
powerful so-called glide bombs, uh,

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which are independently
targeted and are keeping

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the front line from moving
and really destroying a lot of people.

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It's any one of those Ukraine could

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overcome. The five
is going to be, in my view,

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almost impossible without
Western help. And the

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Western help, to be very
precise, is they need money.

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Russians have now shut down all of their

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commerce, all of their ports.
They need money. Literally money.

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You're watching an interview from

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The Economist. To get early access to
our upcoming interviews and watch others

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from our archive, subscribe to The
Economist by clicking the link above. Now,

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back to the interview. And second,

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they need help on scaling. They have the
courage to win that is or hold the fight,

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but they don't

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have the capability of scaling.
Yeah, I I I hear that loud and clear,

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but let's just dive down into

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some of those specifically.
So jet shahads, you know,

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the Russians took the shahed drone,

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Iranian drone that they now make
in huge numbers and added jet propulsion,

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which as I understand it

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means they go faster and higher
and much harder to intercept.

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How close is Ukraine to a solution to

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that? There are at least five companies in
Ukraine that have come up with solutions

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that are in test

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now. It should be soon. But this was a
major event in the war and I didn't fully

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foresee it

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which I hold myself responsible. We
knew that the Russians were going to take

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their shades, make the

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back stronger, add these small jet
engines which you can get from China.

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We thought they were going

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to use about 10% of the supply and we
thought that that was overcomeable.

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Russia accelerated the use

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of these to more than half of the shahads.
But they did one other thing.

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They don't have access

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to the equivalent of Starlink for Russian
use in Ukraine, thank goodness.

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So they built a mesh

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network out of Chinese parts and they
typically have two shahads that are

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sitting in a going

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around in a circle between Bellarusia
and Ke for example and those are relays

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and those relays

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allow them to see literally 8K
video of whatever their target is.

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So right next door they managed

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to go right through the central central
window of the SBU headquarters which

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is like the CIA and that's a good
warning of the power of these things.

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There are reports that there are plans to

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use up to 80,000 such jet shahads against
Keev and the other towns between now

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and the end of

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December. This is a major point. Um
the government here is extremely focused

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on this. Um I know of a

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number of efforts that are likely to work.
You mentioned that the Russians,

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and this would be

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even worse, are close to or potentially
close to building their version of Starink

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Rasat. Um,

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how close are they? Because it seems
to me, and I'm no technician on this,

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but it seems

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that that would be a real gamecher.
Um, there's evidence that they are have

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started launching. There's evidence
that it doesn't work yet. Uh,

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my own opinion is it's
probably a year away because

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these networks are hard.
Once that network is in place,

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it is more or less unblockable,

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which means the Russians will be able
to again hunt anywhere inside of Ukraine.

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Ukraine today does not have the ability
to use Starlink to hunt inside of Russia.

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So you can imagine a situation

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if both countries had that capability, the
level of damage that they could do to each

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other. In the

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case of Ukraine, one of their highest
priorities is hitting the oil deriffs

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and so forth and so on.

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They do that without really being
able to see what they're doing.

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Imagine how much more deadly the

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Ukrainians could be against Russian
oil if this if this happen. Well,

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it this begs a question

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which many of the Ukrainian
commanders I've spoken to mention.

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Why can't we use Starlink in Russian

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territory? And it's usually come up in
the context of ballistic missiles because

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the other, and you

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mentioned it, the other thing that is
terrorizing Ukraine is Russian launches

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of ballistic missiles,

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which are, you know, dramatically
more powerful, huge damage,

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terrorizing the cities. And they say,

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if you can't hit the arrow,
why can't we go after the archer?

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And why can't someone persuade Elon

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Musk to let us for that purpose
use Starink in Russia?

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Do you think that would be a good idea?

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Um, I'm in favor of giving Ukraine
the tools to allow them to end the war

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by force, literally to

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stop the Russian aggression. Um,
the question you're asking is really

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a political decision.

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It's really a government decision. And
the US government needs to grapple with

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this question.

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The most important thing right now is to
get the innovation cycle in Ukraine equal

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or better than the innovation cycle now
present in Russia and also have the scale.

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Ukraine does not have effective
anti-bballistic missiles.

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It has one effective
ballistic missile which

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is the firepoint of so-called
flamingo missile which has done well.

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They can't make that many

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of them for various scaling reasons.
In the case of jet shahads,

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there's no Ukrainian equivalent

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of a jet shahad. So again the same problem
people are working on this just I mean

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that's

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interesting you say it's a political
decision so this is not that something

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that is up to Mr. Musk himself. It would
be a political decision in the US. Again,

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I'm speculating. I can answer

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the question precisely. There's no
technical restriction that prevents

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the use of any of these satellite services
over any country. That's interesting.

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It's it's it's a it's a question.

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It's not it's not like the satellites
stop working over Russia because of some

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geographic nature. You

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can get the same outcome if you choose
to fly the satellites over Russia and you

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enable them. As I understand it, it is a
policy of SpaceX that it does not do that.

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How you would change that is

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a political question. Yeah. So either
SpaceX could or the it could be asked

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to do that were there the

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political decision or it could be
ordered to do so. In the American system,

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the president

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can order a national security action on
a private company and the private company

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pretty much has to obey. And you
would advocate that? Uh in general,

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let's talk about what's
coming next. I mean that's

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all pretty pretty alarming and that's
these are the challenges Ukraine faces now

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but coming down

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the road is you know even greater
technical innovation and particularly AI

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and you know in most contexts you and I
have conversations about what is happening

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in Silicon Valley not

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what is happening in Ukraine and I wanted
to sort of stand back because I think

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there's a bit of

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misunderstanding about what's going on
with AI and this war right now people talk

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about is AI being

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used but as I understand it what's really
being used is quite well-known technology

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of machine

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vision for final targeting. Could
you explain that because I think it's

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an important thing to make

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clear. So in the progression of war you
start with the the person with the soldier

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with the bullet with the gun
and the bullet and they aim. Um,

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at some point it should be
relatively straightforward

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to have the gun be able to see
the subject with a laser or what have you,

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identify it, and then the human
pulls the button and it always hits.

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That analogy scales up
in terms of autonomy. So,

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it's reasonable to expect that every
weapon has a final autonomous seg segment

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where basically it's

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close enough, it's near the target,
it's going to roughly hit the target.

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You press a button and it hits it
precisely. All of these are not AI.

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They're just good computer science, good

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computer engineering. Um, artificial
intelligence is systems that learn.

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And artificial intelligence learn
like we do. You know, we sort of learn,

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you get smarter and smarter
and smarter. You're

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self-improving. The technical
term is recursive self-improvement.

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And we're just beginning to see

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the use of AI in war. There's a lengthy
study on Russian use of the Chinese models

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to do some of their decision-making.
Um, these are all from leaked memos,

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so I don't know what the truth

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is. In Ukraine, there's
relatively little use of that.

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There is a project
which has been discussed

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by the MOD to try to help automate the
planning of of war and planning of where

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people go. Again,

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it's just at the beginning. So,
speaking as a computer scientist,

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it's pretty obvious what

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it should look like. Take all
the information that you have all the open

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source, all the proprietary,

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all the super secret stuff, feed it into
one large computer and say what's going

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on and have these large language
models use tools to do reasoning. To me,

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it's it's fantastic.
They can think at this

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level. They don't think
like humans, by the way.

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They're reasoning around
an objective. It makes

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sense to me that eventually you'll say,
"How can I best position my assets

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to achieve my objective such as winning
the war, defending this city, so forth?"

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But the more interesting questions are,

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why am I losing? Why is this group
not as good as the other group?

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You want the system

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to anticipate that and you want the system
to say, "General, you have a problem.

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Here is our recommended solution. Can
we help you?" That's I think the future.

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That's where we're going. Ju I

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I wanted to delve into that but just
before one more question on this sort

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of what's it called

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last mile machine vision which is that
in another in an earlier show this year uh

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with my colleague

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Shashank Jooshi Jack um Watling from Russi
said that and it was interesting he

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that many many

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um soldiers in Ukraine were turning this
capability off because it actually wasn't

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as good as having a a human operator kind
of why is that that's called a bug um so I

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fly my own jet

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And uh there's a general rule that you
should fly the last segment of your jet

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in coupled mode,

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which means the airplane is flying
all the way down to the landing point.

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But I prefer to turn it off because it's
more entertaining for me to fly my jet,

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but I'm not in I'm not in a But

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you're not in a foxhole in Ukraine.
I'm not in a war. Yeah. Right.

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So in a war, you'd want to use

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a guaranteed solution. So any situation
where the terminal guidance as it's called

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is not as good as a human is a bug.
And now why? So I'll give you an example.

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I was in a operation center a while

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ago in um very near the nuclear reactor
and there was a military target that

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the Ukrainians decided

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to hit. They used a American
product called a Switchblade 600.

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We watched it. We saw target

254
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lock and it missed. And I go,
"Wow." And they said, "Well,

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we have one high Mars we can try

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per day." And I said, "Okay." So they
launch the high Mars and you wait and then

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they said, "Lock, hit," and it missed.
Why? Because of jamming.

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So it may very well be
that the anecdotal example

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that you're using is because the human
could see the target quite well,

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but the jamming

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confus and with jamming the confus, right?
Okay. And we know how to fix that now. So,

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so the important point
is that terminal guidance,

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which sort of think
of it as the last mile,

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is crucial for having a precision attack.
One of the things that's interesting about

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this new

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form of war is there's almost no civilian
damage that's because the weapons are so

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accurate. And

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another horrifying fact is that there's
almost no survivable injuries.

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The drones are so dangerous

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that the the soldiers that are being
killed are being attacked are in fact

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killed. So let's talk

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about what the consequences will be
when you have real AI when you have

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this ability to reason to

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infer to learn that that we talk about
constantly in Silicon Valley coming here.

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Firstly, what does it mean
for how autonomous warfare becomes?

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Um because now you can have
this last mile guidance,

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but then presumably you can have the AI
not only giving the general some lessons

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but providing a

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battle plan and and down the road,
you know, executing them autonomously.

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So let's imagine

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I'm an evil dictator and I wake up one day
and I have a perfect AI system and I say,

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"Attack this country. Tell me when
you're done." Right? That's my command.

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Notice I didn't say anything else.

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the system would be then free to do
whatever it thought was appropriate,

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which could include massive war crimes,
right? All sorts of terrible things.

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It could destroy civilians.
It could destroy infrastructure.

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It might attack another
country that was uninvolved

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in order to annoy the first country. It
it could have all sorts of reasoning that

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is not appropriate. It's really important
we establish some basic rules about AI

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and war. And the most

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important one is that there's a human
involved in every military decision.

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So in other words, attack

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this country, call me when you're done.
That's not an appropriate command.

294
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The appropriate command is

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here as a military target defined
by the laws of war in a time bounded time

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and space where I have

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approval to do that. Any other solution
in my view becomes scalably unimaginably

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difficult because

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once you start letting the computer
make the targeting decisions on its own,

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you have no real quality control
on how it makes its decisions.

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You're watching an interview
from The Economist.

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If you want to watch our other interviews,
including with Steve Bannon and Benjamin

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00:16:42,240 --> 00:16:46,614
Netanyahu, subscribe to The Economist
by clicking the link above. Now,

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00:16:46,697 --> 00:16:48,397
back to the interview. There

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was a recent example um that alarmed
our industry where an open AI essentially

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a large set of bots

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that were doing something involving
testing took their instructions a bit too

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literally and

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they started to actually attack the system
that they were supposed to help and they

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manipulated

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it by lying, cheating and stealing. And
everyone studied this as a good example

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as a good sort of

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marker of how AI systems can fail.
So, another way to say this is if I were

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an evil dictator, which I hopefully am
not, and I said, "Attack this country.

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Let me know what you've done." I'd also

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00:17:23,520 --> 00:17:28,339
then have to add, "Follow all the laws
of war. Don't hit any civilians,

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00:17:28,423 --> 00:17:29,997
use appropriate caution,

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and all the things that human
judgment require. Without the human,

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the AI is not going to have

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00:17:35,920 --> 00:17:38,319
that judgment." So, you you
make that point very powerfully.

321
00:17:38,403 --> 00:17:39,437
You made it very powerfully

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00:17:39,520 --> 00:17:42,475
on a panel at the conference you and I are
both at this morning and you said if we go

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00:17:42,558 --> 00:17:46,977
down here we'll end up in a Doctor
Strange love situation. However,

324
00:17:47,060 --> 00:17:49,837
we are in a country that is at war with

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a country with a dictator who does seem
to show no respect for any rules of law,

326
00:17:56,579 --> 00:17:58,077
any law at all. And

327
00:17:58,160 --> 00:18:05,021
so I I wonder whether in the real world of
this war it is possible to say we're going

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to follow

329
00:18:05,840 --> 00:18:09,191
the rules of war because I I was speaking
to a couple of the commanders earlier

330
00:18:09,275 --> 00:18:09,757
this week and

331
00:18:09,840 --> 00:18:14,677
I asked them about this and they're all
really worried about what very powerful AI

332
00:18:14,760 --> 00:18:15,277
will mean.

333
00:18:15,360 --> 00:18:20,374
They're worried about completely complete
autonomy but they basically say if

334
00:18:20,457 --> 00:18:26,038
the enemy is doing this we can't not.
So evidence is that that's not true.

335
00:18:26,121 --> 00:18:30,077
evidence in historical
context are that there are

336
00:18:30,160 --> 00:18:33,918
some restraints on behavior in war
and you can only look up the history of

337
00:18:34,002 --> 00:18:34,957
the Nuremberg trials

338
00:18:35,040 --> 00:18:39,112
to understand what the limits are.
There are people held accountable.

339
00:18:39,195 --> 00:18:43,765
Those people were hanged um after
a long trial and so forth and so on.

340
00:18:43,849 --> 00:18:47,117
I would assume that that
principle will survive

341
00:18:47,200 --> 00:18:53,099
our lives and our really yes I really do.
There's this simple logic which says

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00:18:53,183 --> 00:18:59,357
that and people say it all the time. If
if the two are fighting in a death grip,

343
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there will be no constraints on

344
00:19:01,920 --> 00:19:05,582
either. Historically, that has
not been true. Historically,

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00:19:05,665 --> 00:19:07,677
there has been justice afterwards

346
00:19:07,760 --> 00:19:12,171
and the people who are participating
it are at least aware of their personal

347
00:19:12,254 --> 00:19:16,706
liability and so forth. There are so
obviously sociopaths, but in general,

348
00:19:16,790 --> 00:19:19,037
people are subject to the law even in

349
00:19:19,120 --> 00:19:23,299
war. But there are, let's do it in the
context of Vladimir Putin in Ukraine.

350
00:19:23,382 --> 00:19:24,477
Look at what happened

351
00:19:24,560 --> 00:19:29,595
in BHA at the beginning. Look at the way
he is targeting civilians in cities across

352
00:19:29,678 --> 00:19:30,397
Ukraine. Yes.

353
00:19:30,480 --> 00:19:34,892
But they're not stopping him. Well, that's
because he hasn't been arrested yet.

354
00:19:34,976 --> 00:19:35,917
But but I guess my

355
00:19:36,000 --> 00:19:40,614
my point is about the logic of this
escalation because presumably the more

356
00:19:40,697 --> 00:19:44,922
autonomy you allow an AI as we go up
from where we are right now up this scale,

357
00:19:45,005 --> 00:19:46,557
the more effective you will be.

358
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there is a first mover advantage
because AI thinks faster.

359
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It's able to come up with a better quicker

360
00:19:51,840 --> 00:19:58,206
solution. So if the Russians have fewer
limits and go faster up that escalatory

361
00:19:58,289 --> 00:20:02,480
ladder, Ukraine may have, you know,
international law on its side,

362
00:20:02,563 --> 00:20:05,677
but it will be in the here
and now less able to defeat

363
00:20:05,760 --> 00:20:09,158
them. The solution will
not be to commit war crimes.

364
00:20:09,242 --> 00:20:11,837
The solution will be is to help Ukraine.

365
00:20:11,920 --> 00:20:17,683
I I'm not going to yield on my core point
that there is a boundary to what humans

366
00:20:17,766 --> 00:20:18,477
can do. So,

367
00:20:18,560 --> 00:20:22,325
let's use a thought experiment.
Let's imagine that Ukraine had some secret

368
00:20:22,408 --> 00:20:23,677
biological weapon, which I

369
00:20:23,760 --> 00:20:26,527
don't think they do, but let's
say they did. I'm making that up.

370
00:20:26,610 --> 00:20:27,997
And furthermore, they were forced

371
00:20:28,080 --> 00:20:33,638
to use it against some Russian attack.
Would they be prosecuted? Absolutely.

372
00:20:33,721 --> 00:20:35,197
And I'm sure they are

373
00:20:35,280 --> 00:20:38,813
aware of it. Yeah. I I'm not I'm
not um I'm not asking you to yield on

374
00:20:38,897 --> 00:20:40,157
a principle. I'm just I am

375
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very struck particularly on this trip at
the pace of innovation escalation and so I

376
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think there is a risk that this
develops a logic of its own.

377
00:20:49,225 --> 00:20:51,837
So so that's why it's
important that humans debate

378
00:20:51,920 --> 00:20:56,539
this stuff. We you and I agree very
strongly that the rate of innovation

379
00:20:56,622 --> 00:20:58,237
in this war is faster than

380
00:20:58,320 --> 00:21:02,531
has ever occurred. It's faster than
the rate of innovation that I have seen in

381
00:21:02,614 --> 00:21:06,449
my many decades in tech. And the reason
is because lives are at stake.

382
00:21:06,532 --> 00:21:08,797
And it turns out it's true on both sides.

383
00:21:08,880 --> 00:21:13,469
The other side is frankly more evil
and better funded and has more resources

384
00:21:13,552 --> 00:21:14,637
and they're willing

385
00:21:14,720 --> 00:21:19,444
to accept more death than the Ukrainian
side. But it's still a fight.

386
00:21:19,528 --> 00:21:24,751
And it's very important, I'll say again,
that we help Ukraine fight this war.

387
00:21:24,835 --> 00:21:27,757
What they need is money
and help in scaling

388
00:21:27,840 --> 00:21:31,460
and technology. They can fight the war.
We don't need to invade.

389
00:21:31,544 --> 00:21:33,197
We don't need to send a lot of

390
00:21:33,280 --> 00:21:36,680
troops and all that kind of stuff
people, but they need some help.

391
00:21:36,764 --> 00:21:41,255
They won't make it without some level
of help, at least economic. Yeah. So,

392
00:21:41,338 --> 00:21:44,877
the innovations in drone
warfare have gone beyond the

393
00:21:44,960 --> 00:21:48,050
theater of this war. I mean, just in
the last few days, we've seen, you know,

394
00:21:48,133 --> 00:21:48,957
we've seen the Houthis

395
00:21:49,040 --> 00:21:54,396
effectively shut down uh another exit
route for oil products in the Gulf. Um,

396
00:21:54,479 --> 00:21:55,597
do you think that

397
00:21:55,680 --> 00:22:02,337
the US military recognizes the degree
to which the nature of war has shifted and

398
00:22:02,420 --> 00:22:05,876
is acting fast enough to transform
itself to prevail? Well,

399
00:22:05,960 --> 00:22:08,397
I worked for the US
military for eight years in

400
00:22:08,480 --> 00:22:14,180
various under various presidents and there
are plenty of people who understand it

401
00:22:14,263 --> 00:22:15,037
and they can

402
00:22:15,120 --> 00:22:19,685
articulate it. They understand this
conversation and they're worried about it.

403
00:22:19,768 --> 00:22:20,877
The system is almost

404
00:22:20,960 --> 00:22:25,572
unchangeable. I was talking to one
president about it and he said not even

405
00:22:25,655 --> 00:22:26,397
the president

406
00:22:26,480 --> 00:22:31,477
can fix the system and I said well
that's a very bad answer and the reason is

407
00:22:31,560 --> 00:22:32,797
that the military is

408
00:22:32,880 --> 00:22:37,648
not run by a single person not even the
president although you think they are it's

409
00:22:37,732 --> 00:22:38,477
run by the way

410
00:22:38,560 --> 00:22:42,877
the congress works the way the special
interest works the way the lobbying works

411
00:22:42,960 --> 00:22:43,757
so my conclusion

412
00:22:43,840 --> 00:22:48,456
is the only way to address this problem
in the US military is to allow the US

413
00:22:48,539 --> 00:22:49,677
military to continue

414
00:22:49,760 --> 00:22:53,723
to spend money on the things that have
been organized in the various politically

415
00:22:53,806 --> 00:22:54,077
correct

416
00:22:54,160 --> 00:22:59,154
states and uh and so forth and just
let that happen while a relatively small

417
00:22:59,238 --> 00:23:00,157
amount of money

418
00:23:00,240 --> 00:23:04,921
um is allocated to this new stuff.
The new stuff is far more effective,

419
00:23:05,004 --> 00:23:06,397
far less expensive and

420
00:23:06,480 --> 00:23:11,948
I think will work and that over time even
the kerogens on the old side will say look

421
00:23:12,031 --> 00:23:16,331
I really want that new thing because they
are sincerely all of them sincerely want

422
00:23:16,414 --> 00:23:17,757
to protect America. There's

423
00:23:17,840 --> 00:23:21,419
no one who want who who's
a a traitor in the military.

424
00:23:21,503 --> 00:23:23,997
They just disagree on the tactics. And

425
00:23:24,080 --> 00:23:29,638
what I've learned about militaries is that
they're incredibly uh change resistant,

426
00:23:29,722 --> 00:23:30,877
riskresistant. And

427
00:23:30,960 --> 00:23:35,091
the most one possibility is they didn't
grow up in an innovative environment,

428
00:23:35,175 --> 00:23:36,077
which is possible.

429
00:23:36,160 --> 00:23:40,146
A there's a long paper that analyzed
this that I read and it basically said at

430
00:23:40,230 --> 00:23:40,877
the end of the

431
00:23:40,960 --> 00:23:45,857
day people in the military are more
conservative because their loss aversion

432
00:23:45,940 --> 00:23:47,037
is greater because

433
00:23:47,120 --> 00:23:51,388
people die. So if you think about it,
if you have a pretty certain model of

434
00:23:51,472 --> 00:23:52,317
an expensive way

435
00:23:52,400 --> 00:23:56,367
to do something and Eric shows up
with a cheaper way to do the same thing,

436
00:23:56,451 --> 00:23:57,517
you would never adopt

437
00:23:57,600 --> 00:24:01,550
it because you're certain the more
expensive one works and you can't take

438
00:24:01,634 --> 00:24:02,877
the risk. I think that's

439
00:24:02,960 --> 00:24:06,515
the best way to understand what's going
on in addition to the political maybe it

440
00:24:06,598 --> 00:24:07,197
takes and maybe

441
00:24:07,280 --> 00:24:12,152
the lesson of Ukraine is you know first of
all it happened in after an invasion here

442
00:24:12,235 --> 00:24:13,037
but secondly it

443
00:24:13,120 --> 00:24:18,067
takes people from outside the military I
mean the striking thing all of these drone

444
00:24:18,150 --> 00:24:19,037
brigades are led

445
00:24:19,120 --> 00:24:22,857
by people who in a former life were
civilians tech you know tech leaders

446
00:24:22,940 --> 00:24:24,237
business leaders they took

447
00:24:24,320 --> 00:24:28,557
all the traditional Soviet generals and
they all retired them for the same reason

448
00:24:28,640 --> 00:24:29,357
so that because

449
00:24:29,440 --> 00:24:32,175
it it it I mean you've given a very
good answer about the United states.

450
00:24:32,259 --> 00:24:33,037
I'm wondering what you

451
00:24:33,120 --> 00:24:37,122
think about Europe's recognition of the
scale of which war change because in some

452
00:24:37,205 --> 00:24:40,396
ways Europe is more vulnerable.
I mean it's right here on our doorstep.

453
00:24:40,479 --> 00:24:41,917
So the Europeans I've spoken with

454
00:24:42,000 --> 00:24:45,410
all have the same problem that the US
people do. They're very smart.

455
00:24:45,493 --> 00:24:46,797
They understand the problem

456
00:24:46,880 --> 00:24:52,418
but the system is not organized around
change. In most European countries,

457
00:24:52,501 --> 00:24:54,317
the militaries operate as

458
00:24:54,400 --> 00:24:57,218
jobs programs. And those are
important jobs. I'm not taking away.

459
00:24:57,301 --> 00:24:58,557
But they're building the wrong

460
00:24:58,640 --> 00:25:03,613
thing. So here's my deal. You can keep
the exact budget that you have. In fact,

461
00:25:03,696 --> 00:25:04,637
you can increase

462
00:25:04,720 --> 00:25:08,987
it. Just build more effective things
because you're going to need them.

463
00:25:09,071 --> 00:25:10,397
For example, in Europe,

464
00:25:10,480 --> 00:25:14,323
there's a huge problem with missile
defense. And for all sorts of reasons,

465
00:25:14,406 --> 00:25:17,745
the Patriot missiles, which they
rely on, are not available enough.

466
00:25:17,829 --> 00:25:20,157
We now understand looking
at missile stocks and

467
00:25:20,240 --> 00:25:23,771
so forth on the Western side,
we don't have enough of them. Now,

468
00:25:23,854 --> 00:25:24,957
since we don't have a

469
00:25:25,040 --> 00:25:28,682
lot more money to spend because these
economies are struggling with debt and so

470
00:25:28,765 --> 00:25:29,437
forth and so on,

471
00:25:29,520 --> 00:25:34,747
you have to come up with new solutions.
I show up with an argument that I have

472
00:25:34,831 --> 00:25:35,837
cheaper, better,

473
00:25:35,920 --> 00:25:42,282
faster, just use my architecture with all
the companies that represent new war

474
00:25:42,366 --> 00:25:43,357
and spend the

475
00:25:43,440 --> 00:25:46,768
same amount of money. The only reason that
doesn't occur is because the incumbents

476
00:25:46,851 --> 00:25:49,997
don't want to make the change.
I think that's one powerful reason.

477
00:25:50,081 --> 00:25:52,637
I think the other reason
is that you're, you know,

478
00:25:52,720 --> 00:25:55,170
we're now a bit skeptical
of American companies.

479
00:25:55,254 --> 00:25:57,757
We're a bit worried about that.
I understand. And

480
00:25:57,840 --> 00:26:03,654
um it doesn't employ many people. Um I can
assure you that if you were to take all

481
00:26:03,737 --> 00:26:07,553
the people in the militaries
in Germany, the UK, and so forth,

482
00:26:07,637 --> 00:26:10,717
and you simply reassign
them to an architecture that

483
00:26:10,800 --> 00:26:13,729
was AI, automatic targeting,
missiles and drones,

484
00:26:13,812 --> 00:26:16,557
and some ships to move
them around, you'd have

485
00:26:16,640 --> 00:26:20,876
full employment. Every job would change,
but every job would still exist.

486
00:26:20,959 --> 00:26:24,986
And European labor laws don't allow you
to lay off people anyway. So trust me,

487
00:26:25,069 --> 00:26:27,277
those people will still
have jobs. What about

488
00:26:27,360 --> 00:26:31,327
the idea that at least for Europe, Ukraine
becomes the vehicle through this which

489
00:26:31,410 --> 00:26:32,077
this happens? I

490
00:26:32,160 --> 00:26:35,133
mean, that struck me so much on this trip
that we have the solution for Europe

491
00:26:35,216 --> 00:26:35,917
sitting here staring

492
00:26:36,000 --> 00:26:39,314
us in the face. I have said that publicly
and I've said that to my Ukrainian friends

493
00:26:39,397 --> 00:26:42,463
because I want to encourage
them to sell to Europe.

494
00:26:42,547 --> 00:26:45,997
Every European government
I talk to says, "Your ideas

495
00:26:46,080 --> 00:26:51,772
are great. it needs to be built here. So
the most likely scenario in that scenario

496
00:26:51,856 --> 00:26:55,512
is Ukraine will license their
technology to the European countries,

497
00:26:55,595 --> 00:26:57,517
which they should. They'll get a nice

498
00:26:57,600 --> 00:27:02,415
fee and the Europeans will build them
at twice the price of eur of Ukrainians.

499
00:27:02,498 --> 00:27:06,822
And that's okay in a rich democracy, which
we can debate whether it's rich or not.

500
00:27:06,905 --> 00:27:08,397
But the part of the reason the

501
00:27:08,480 --> 00:27:11,462
Ukrainian stuff is so effective
is the people who work so hard.

502
00:27:11,546 --> 00:27:13,117
When you go to the companies here,

503
00:27:13,200 --> 00:27:16,576
so and I've invested and worked
with them pretty closely.

504
00:27:16,659 --> 00:27:21,418
There are it looks like China, you have
and I mean that in the work ethic sense.

505
00:27:21,502 --> 00:27:24,317
You have these long pe
long buildings which are

506
00:27:24,400 --> 00:27:28,678
often underground now of people in white
jackets sitting shoulders shoulder.

507
00:27:28,762 --> 00:27:32,608
They work for 12 hours a day, six
or seven days a week, which is a Chinese.

508
00:27:32,691 --> 00:27:34,477
That's more than China. China's 966,

509
00:27:34,560 --> 00:27:37,340
right? So it's the work ethic
is extraordinary. And they're all men.

510
00:27:37,423 --> 00:27:42,157
And do you know why they're all men?
because if you work in such a factory,

511
00:27:42,240 --> 00:27:45,837
you get an exemption
from the draft. I I didn't

512
00:27:45,920 --> 00:27:49,423
know they were all men. Um there are
a lot of women involved in in elements of

513
00:27:49,506 --> 00:27:53,757
this too, but but what's noticeable is I
said there why and they're all, you know,

514
00:27:53,840 --> 00:27:57,289
men of military age. And the answer
is why do they work so hard?

515
00:27:57,373 --> 00:27:59,277
If they get fired, they go to the go

516
00:27:59,360 --> 00:28:04,151
to the front. Interesting. You mentioned
China and I wanted to to ask you about how

517
00:28:04,234 --> 00:28:04,797
what you've

518
00:28:04,880 --> 00:28:11,504
seen happen here in terms of techled
innovations in warfare has changed

519
00:28:11,587 --> 00:28:13,677
your view of how the US

520
00:28:13,760 --> 00:28:18,487
and China should or how this race
technological race would will will

521
00:28:18,570 --> 00:28:20,397
develop. I mean you've been

522
00:28:20,480 --> 00:28:24,873
you played a huge role in this thinking
through how to ensure that the US stays

523
00:28:24,957 --> 00:28:25,837
ahead in AI. Does

524
00:28:25,920 --> 00:28:30,136
what you've seen here change your
perception of where that will go,

525
00:28:30,219 --> 00:28:31,997
what China will end up doing,

526
00:28:32,080 --> 00:28:37,626
and who will be ahead? And my general
belief is that we're extremely fortunate

527
00:28:37,710 --> 00:28:38,637
that China has

528
00:28:38,720 --> 00:28:43,117
been copying what we're doing because what
we're doing needs to change and therefore

529
00:28:43,200 --> 00:28:43,757
they'll have

530
00:28:43,840 --> 00:28:48,856
hysteresis in terms of changing.
Um, if you think about it for a while,

531
00:28:48,939 --> 00:28:53,212
China already has the world's largest
drone manufacturer, which is DJI,

532
00:28:53,296 --> 00:28:55,757
which America has just
recently banned. Um,

533
00:28:55,840 --> 00:28:58,112
there's every reason to think,
and I don't know this,

534
00:28:58,196 --> 00:29:02,490
that they have a military equivalent, or
maybe there's a military sub subdivision.

535
00:29:02,574 --> 00:29:05,597
The reason to think that we
are better off than we

536
00:29:05,680 --> 00:29:08,439
think is that China's not
fought a war in 50 years.

537
00:29:08,522 --> 00:29:10,557
There's no reason to believe that they

538
00:29:10,640 --> 00:29:14,591
understand the very subtle tactics. When
you met with the commanders and when I

539
00:29:14,674 --> 00:29:19,155
talked to them, when you actually
ask them what are they actually doing,

540
00:29:19,238 --> 00:29:21,597
their reasoning is worldclass subtle

541
00:29:21,680 --> 00:29:25,498
thinking. I want to do this, this, this,
this will happen and so forth and so on.

542
00:29:25,581 --> 00:29:26,317
You learn that by

543
00:29:26,400 --> 00:29:30,053
doing. There's every reason to think
that China has no experience with that.

544
00:29:30,137 --> 00:29:35,713
There's no doctrine. There's no books. You
can't study it. So, we may be okay. Um,

545
00:29:35,797 --> 00:29:38,397
with respect to the uh the Pacific,

546
00:29:38,480 --> 00:29:43,522
the Pacific area and so forth, there's
a publicly discussed plan to protect

547
00:29:43,605 --> 00:29:44,957
the Taiwan Strait and

548
00:29:45,040 --> 00:29:49,997
so forth. I don't know, but I'm assuming
that that will ultimately be a drone war

549
00:29:50,080 --> 00:29:50,557
and not a

550
00:29:50,640 --> 00:29:55,117
ship war. If you think about it, you
don't really want to put a ship that close

551
00:29:55,201 --> 00:29:56,157
to China. You want

552
00:29:56,240 --> 00:29:59,727
to put a drone ship with drones in it
because you don't want the people to be

553
00:29:59,810 --> 00:30:03,767
killed. So, it makes sense to me that all
the arguments that we see here are also

554
00:30:03,850 --> 00:30:04,637
applicable to the

555
00:30:04,720 --> 00:30:10,637
Pacific. Big ships, big aircraft
carriers are easy to hit, easy to blow up,

556
00:30:10,720 --> 00:30:11,997
and so forth. Um,

557
00:30:12,080 --> 00:30:17,437
drone ships are are harder. Drones are
are harder to detect. You see this in Iran

558
00:30:17,520 --> 00:30:21,075
um with the problems we're
having keeping the straight open.

559
00:30:21,158 --> 00:30:23,197
Um I think that uh my understanding

560
00:30:23,280 --> 00:30:28,219
again this is public information that
China has a very large set of missiles

561
00:30:28,303 --> 00:30:29,277
that are land to

562
00:30:29,360 --> 00:30:33,934
sea. We would need to have anti-missiles.
I don't know if we do or not that could

563
00:30:34,018 --> 00:30:34,797
that could deal

564
00:30:34,880 --> 00:30:39,632
deal with that threat. So if you it
maps pretty well to the current belief in

565
00:30:39,715 --> 00:30:40,720
the China fight.

566
00:30:41,440 --> 00:30:47,223
What about could could the military area
be an area where you might between China

567
00:30:47,306 --> 00:30:48,237
and the United

568
00:30:48,320 --> 00:30:52,835
States be able to reach some agreement
over norms to go back to where you were

569
00:30:52,918 --> 00:30:53,837
earlier? I wonder

570
00:30:53,920 --> 00:30:58,155
because there's a lot of talk now given
the pace at which AI capabilities are

571
00:30:58,238 --> 00:30:59,277
increasing very real

572
00:30:59,360 --> 00:31:03,144
fears of you know 100% recursive
self-improvement and outofc control AI

573
00:31:03,227 --> 00:31:04,397
and people are debating

574
00:31:04,480 --> 00:31:08,825
whether you know the US should pause
whether or companies should pause whether

575
00:31:08,908 --> 00:31:09,677
there should be

576
00:31:09,760 --> 00:31:12,881
some regulation and there are many who
say we can't do that because China will be

577
00:31:12,964 --> 00:31:13,277
ahead well

578
00:31:13,360 --> 00:31:17,849
first place we're not going to do a pause
because the entire incentive system

579
00:31:17,932 --> 00:31:19,037
in America is not to

580
00:31:19,120 --> 00:31:24,051
pause and furthermore if you do a pause
you do really open it up to competitive

581
00:31:24,135 --> 00:31:28,098
either local, you know, a local competitor
violates the rules or the global.

582
00:31:28,181 --> 00:31:29,917
So there's not going to be a pause.

583
00:31:30,000 --> 00:31:34,077
The right thing to do is to invent this
future while also invent the solutions

584
00:31:34,160 --> 00:31:38,127
to the problems that you're creating.
It's just occurring quickly.

585
00:31:38,210 --> 00:31:41,117
Um so an example here
is there's some evidence

586
00:31:41,200 --> 00:31:48,200
that you can take a new model that you
um shows up and use the previous one which

587
00:31:48,516 --> 00:31:49,517
is typically

588
00:31:49,600 --> 00:31:54,592
four months older to supervise the new
model. It looks like that works.

589
00:31:54,676 --> 00:31:56,237
People are trying that.

590
00:31:56,320 --> 00:32:01,087
We'll see if that's technically true
at scale. Um, if you look at China,

591
00:32:01,171 --> 00:32:02,637
there is no question we

592
00:32:02,720 --> 00:32:09,029
are in an an AI race that is profound
between the Chinese approach and

593
00:32:09,112 --> 00:32:11,677
the American approach. You're

594
00:32:11,760 --> 00:32:15,868
watching an interview from The Economist.
If you want to watch our other interviews,

595
00:32:15,951 --> 00:32:16,317
including

596
00:32:16,400 --> 00:32:20,824
with Mark Carney and Dario Amade,
subscribe to The Economist by clicking

597
00:32:20,908 --> 00:32:22,077
the link above. Now,

598
00:32:22,160 --> 00:32:25,906
back to the interview. And the easiest
way to understand that is would you prefer

599
00:32:25,989 --> 00:32:31,267
to have your day-to-day life intermediated
by an American model or a Chinese model?

600
00:32:31,350 --> 00:32:35,877
I think as westerners we prefer
an American or American and British model.

601
00:32:35,960 --> 00:32:38,877
So that to me is the
interesting fight. There's a

602
00:32:38,960 --> 00:32:41,990
series of uh track two
and track one dialogues.

603
00:32:42,073 --> 00:32:45,037
I'm participated in one
track two. There was a

604
00:32:45,120 --> 00:32:49,551
big meeting in Vienna where both
sides are now talking this through.

605
00:32:49,634 --> 00:32:51,277
The simplest thing that we

606
00:32:51,360 --> 00:32:55,943
need to do is to avoid surprises.
Henry Kissinger, our mutual friend,

607
00:32:56,026 --> 00:32:57,837
who we miss dearly, was very

608
00:32:57,920 --> 00:33:03,576
concerned that a single event would spiral
in the same way that World War I did

609
00:33:03,660 --> 00:33:04,957
from the killing of

610
00:33:05,040 --> 00:33:10,823
the Arch Duke into a total conflration
that that once the process started because

611
00:33:10,906 --> 00:33:11,837
of nationalism

612
00:33:11,920 --> 00:33:17,099
and tensions and lack of communications,
you can end up in a horrible,

613
00:33:17,183 --> 00:33:21,397
horrible war. A war with China
would be just terrible, right?

614
00:33:21,480 --> 00:33:24,717
It would destroy so much
of our modern lives in

615
00:33:24,800 --> 00:33:30,163
and all of those kinds of But should there
be I mean I obviously completely agree

616
00:33:30,246 --> 00:33:34,758
with you that a war with China would
be horrific, possibly existential,

617
00:33:34,841 --> 00:33:36,717
but do you think there is room

618
00:33:36,800 --> 00:33:43,800
for some kind of limitations, mutually
agreed limitations on AI between China

619
00:33:44,043 --> 00:33:45,277
and the United

620
00:33:45,360 --> 00:33:49,887
States? I mean, we have the meeting coming
up between President Xi and President

621
00:33:49,971 --> 00:33:50,637
Trump. And A,

622
00:33:50,720 --> 00:33:54,903
do you think it's sensible? And B, do
you think that the military area in a sort

623
00:33:54,987 --> 00:33:59,574
of modern-day equivalent of nuclear arms
agreements would be an area to start? So,

624
00:33:59,658 --> 00:34:04,585
we all believe that there needs
to be a set of treaties in this area.

625
00:34:04,669 --> 00:34:08,877
The first treaty needs
to be one about no surprises.

626
00:34:08,960 --> 00:34:15,427
So imagine a situation where an agent bot
manages to get out of its testing range

627
00:34:15,510 --> 00:34:16,317
by accident

628
00:34:16,400 --> 00:34:21,091
um and but ultimately triggers a nuclear
response because it signals that there's

629
00:34:21,175 --> 00:34:24,353
one coming and then the nuclear
response happens automatically.

630
00:34:24,436 --> 00:34:26,637
There there are plenty
of such scenarios that

631
00:34:26,720 --> 00:34:31,455
analysts have come up with. So the single
most important thing is a no surprises

632
00:34:31,539 --> 00:34:36,127
rule, right? And the next one would
be to attack the question of cyber.

633
00:34:36,210 --> 00:34:38,077
Neither side has been willing

634
00:34:38,160 --> 00:34:42,142
to limit its use of cyber attack,
offensive or defensive capability.

635
00:34:42,226 --> 00:34:46,686
If you can't agree to that, it's going
to be hard to agree to much more. And so,

636
00:34:46,769 --> 00:34:49,277
and you don't think even
in principle a mutual

637
00:34:49,360 --> 00:34:56,360
agreement on pausing would make sense?
I think it's the problem with pausing

638
00:34:57,074 --> 00:35:02,047
is first place um it's counter to the
incentives of all the players of course.

639
00:35:02,131 --> 00:35:04,157
The second is how do you verify? Okay.

640
00:35:04,240 --> 00:35:09,414
So, for purposes of argument, the UN
will in will administer the pause. So,

641
00:35:09,498 --> 00:35:10,957
that that's now you're

642
00:35:11,040 --> 00:35:14,305
really condemning it to failure. No, but
we have an international body and they're

643
00:35:14,388 --> 00:35:18,103
supposed to be helping and both are
on the security council. Okay. So,

644
00:35:18,187 --> 00:35:20,157
now how do they verify it? So, then

645
00:35:20,240 --> 00:35:24,047
they have to go to the secret labs which
includes the military secret labs and they

646
00:35:24,130 --> 00:35:24,797
have to read all

647
00:35:24,880 --> 00:35:28,240
the code. Well, first you can't read
all the code because it's all written

648
00:35:28,323 --> 00:35:29,357
by computers. So now you

649
00:35:29,440 --> 00:35:33,797
have to take your computer system from the
UN and you have to apply it to the Chinese

650
00:35:33,881 --> 00:35:34,477
system. Well,

651
00:35:34,560 --> 00:35:40,494
the UN's system is not as fast or modern
if you will than the Chinese or the US one

652
00:35:40,578 --> 00:35:43,905
by definition because they
don't have all the resources.

653
00:35:43,989 --> 00:35:47,197
So you see how um I wrote
a paper a while ago which said

654
00:35:47,280 --> 00:35:52,556
there is a solution to this and the
solution is to have what we called mutual

655
00:35:52,639 --> 00:35:58,557
AI destruction. And the idea was that
as we go up and up this competition list,

656
00:35:58,640 --> 00:36:01,997
you have to give
the other side a chance to

657
00:36:02,080 --> 00:36:06,589
say you've gone too far. So we proposed
that rather than bombing each other's data

658
00:36:06,672 --> 00:36:07,037
centers,

659
00:36:07,120 --> 00:36:10,884
we would just have a computer that would
shut down the power to the data center

660
00:36:10,967 --> 00:36:11,517
in such a way

661
00:36:11,600 --> 00:36:15,654
it couldn't be restored for a while.
So when when the other side got farther

662
00:36:15,737 --> 00:36:20,694
along, you could shut off its and and they
could obviously do the same thing to you.

663
00:36:20,777 --> 00:36:22,957
This was intended as a serious point

664
00:36:23,040 --> 00:36:26,216
and but it's also sort of far sounds
like a modern day Doctor Strange level.

665
00:36:26,299 --> 00:36:27,117
But but the important

666
00:36:27,200 --> 00:36:31,832
point is that it in this particular
formulation it would allow when somebody

667
00:36:31,915 --> 00:36:33,197
got well ahead of you,

668
00:36:33,280 --> 00:36:36,919
you could shut them down and then they
could shut you down and then you restart.

669
00:36:37,002 --> 00:36:37,757
That's another way

670
00:36:37,840 --> 00:36:42,957
of addressing this pause issue. I mean, we
need a solution that's implementable for a

671
00:36:43,040 --> 00:36:46,902
pause and I don't see it. We we do.
That's the alarming thing you just said.

672
00:36:46,986 --> 00:36:50,727
We need a solution that's
implementable and you don't see it.

673
00:36:50,810 --> 00:36:54,237
And I and to conclude I I
as you know I'm we know I

674
00:36:54,320 --> 00:36:57,477
know we know each other reasonably well.
I'm basically an optimist and I'm always

675
00:36:57,560 --> 00:36:57,757
looking

676
00:36:57,840 --> 00:37:02,002
on the upside. But I have to say in the
last few weeks my general optimism has

677
00:37:02,086 --> 00:37:03,037
been a bit knocked.

678
00:37:03,120 --> 00:37:08,278
firstly by what's been happening in
Silicon Valley and the the fact that there

679
00:37:08,362 --> 00:37:09,757
are growing numbers of

680
00:37:09,840 --> 00:37:14,890
researchers in these companies themselves
alarmed about the dynamic of not being

681
00:37:14,973 --> 00:37:15,917
able to pause as

682
00:37:16,000 --> 00:37:19,744
you say and secondly by what I've seen
here which is even we're well we're

683
00:37:19,827 --> 00:37:21,037
nowhere near the frontier

684
00:37:21,120 --> 00:37:25,773
of AI that we could be at in a few
years and yet you see this escalation

685
00:37:25,856 --> 00:37:26,957
of innovation that

686
00:37:27,040 --> 00:37:31,453
seems to me to be ever more lethal. So so
the counterargument is to be optimistic.

687
00:37:31,536 --> 00:37:31,837
Give me

688
00:37:31,920 --> 00:37:37,677
some reasons for optimism. You're building
a kind of intelligence that's nonhuman but

689
00:37:37,760 --> 00:37:41,977
under our control. Can we keep it
under control? I believe we can.

690
00:37:42,060 --> 00:37:43,997
Partly because we at some level

691
00:37:44,080 --> 00:37:47,489
can pull the plug. Uh you always
have the issue of a terrorist group.

692
00:37:47,572 --> 00:37:48,957
Let's assume terrorists don't

693
00:37:49,040 --> 00:37:52,483
have access to this because they
can't get enough data centers to do it.

694
00:37:52,567 --> 00:37:53,757
Then diplomacy between the

695
00:37:53,840 --> 00:37:59,328
countries should allow us to keep
effective human control on these systems.

696
00:37:59,411 --> 00:38:04,173
They will move quickly, but fundamentally
they'll be under human control.

697
00:38:04,256 --> 00:38:07,117
I honestly believe
that as long as AI is under

698
00:38:07,200 --> 00:38:11,597
human control and under human alignment,
it will be okay. That is my opinion. Well,

699
00:38:11,680 --> 00:38:17,553
I have to say I really, really
hope you're right. Eric Schmidt,

700
00:38:17,636 --> 00:38:21,040
thank you very much. Thank you, Zan.
