WEBVTT

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We're at this very specific
and important and fundamental and I think

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profound turning point in technology
which is the rise of AI. Um, and I would

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say that the good news, let's make
the panel optimistic. The good news is the

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US is like by far the leader on AI. Now,
by the way, we need to decide whether we

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want to be the leader in AI because
there's like a lot of forces in the US

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and in the US government that are trying
to prevent that from happening. But

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>> there's over a thousand laws at state
level we've been trying to fight and

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stop that would screw this up, right?

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So, there's a lot of people who are
against this. California state state

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government almost passed a law to outlaw
AI in California six months ago which is

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an indication how crazy California
is but yes that we we can it's like

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everything else we can have it if we
want it uh these are all choice but like

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AI is happening and AI is only happening
in two places like it's only US versus

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China and there's a whole competition
thing there but like the US is like very

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powerful on this and then by the way
the US is benefiting a lot because Europe

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has basically made AI illegal like
they're regulating themselves to death

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and so the smart AI people in Europe are
moving to the US um and so like the the

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US really is ground zero for AI. Um,

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today AI is software, right? And so when
you use AI, you use chat GPT. It's an

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app on your phone, right? It it
does there's no manufacturing kind of

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component, you know, really. You know,
people are building giant data centers,

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but you know, it's not a huge generator
of like middle class jobs. Um, but

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there's another turn on AI that's coming,
which is the turn to the turn to

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embodied physical AI, which is robotics,
right? Um, and this is a transition that

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has already happened. It's already
actually happened in drones, uh, where

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drones went from being human piloted
to actually being auton, you know,

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autonomously piloted. they now fly
themselves. Um, it's a transition that's

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happening in cars right now, right?

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Where cars went from, you know,
basically purely physical products to

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now basically being rolling computers
that drive themselves. And if you if you

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haven't tried this yet, if go to go
to if you ever have the misfortune of

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finding yourself in San Francisco,
take away Mo. [snorts] Um, it's amazing to

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live in a cyberpunk future reality where
you're in literally a state-of-the-art

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self-driving car that's literally out of
the Jetson's driving past people who are

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dying of fentanyl overdoses
on the sidewalk. I recommend having the

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experience at least once. Um but but the
self-driving car really does work. Like

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it's really happening. And then what's
going to happen, you you've all probably

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seen, you know, Elon has this Optimus
robot that he's building. Um these

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humanoid robots, like the the the general
purpose robotics thing is going

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to happen and it's going to happen in
the next decade and it's going to happen

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at giant scale. And I I I think there's
a plausible argument which Elon also

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believes that robotics is going to be
the biggest industry in the history of

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the planet. It's just going to be
gigantic. There's going to be billions,

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tens of billions, hundreds of billions
of robots of all shapes, sizes,

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descriptions running around doing all
kinds of things. um those robots need to

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get designed and built, right? And so
my view is, you know, we don't try to get

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the old manufacturing jobs back. What we
try, what we should do is lean hard into

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the manufacturing jobs of the future,
which is designing and building all of

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these new things, right? By the way,
which includes drones and cars, right,

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and robots. Um, and you know,
we shouldn't be building manufacturing

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lines that have people sitting on a
rubber mat for 10 hours screwing screws

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in by hand. But we should be building,
you know, what Elon calls, he calls

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alien dreadnot factories, right?
Which is like these super sophisticated

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factories with like tons of robotics.

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But you can imagine thousands
and thousands of different categories of

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industrial production that have
to happen all across the US in order to

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make this happen. Um and and and would
cause just like enormous economic growth

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throughout the country. We'd get a huge
payoff from all the tech investment that

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that that that the coast are making.
But we generate many tens or hundreds of

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millions of jobs um in the countryside
and then the US would would lead. It

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would be, you know, be the third
industrial or fourth industrial

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revolution. We would we would lead in
the development of all these new things.

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And then you get to the national
security side of this which is if you

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don't do this you're living in a world
of Chinese robots everywhere. Um and

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that has you know very profound
consequences uh for let's just say yeah

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profound >> consequences.
It's an important policy

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point and I I want to ask I want to dig
into this a little bit more. A lot of I

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was just in an interview up there
like aren't we going to destroy tens of

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millions of jobs? Isn't AI scary? A lot
of people are very scared right now with

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the disruption. I'm very excited about
the higher productivity because I see it

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being disinflationary. I see it creating
more jobs. How how do we how do we if

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assuming we're aligned how do we explain
this to people? How do we explain this

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is actually a really good thing for
the country because a lot of letites are

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going to attack this.
They are going to try to stop it.

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>> Yeah. So the the lett the lett are
wrong. The neoletites are they're wrong

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in the sense of like that for the reason
they've always been wrong which is the

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reality is we have not in the last
50 years been in an era of fast

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productivity growth, technological
change. We've been an area of slow

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productivity change, slow economic growth.
U AI if it works the way that

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actually people either hope or fear that
it's going to work, it's going to cause

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productivity growth to shoot up.
That will naturally accelerate uh economic

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growth. Um, but look, if if it just
stays as software, then the result of

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that is it's going to make the cities
much better off, right? It's gonna it's

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going to make San Francisco and LA and New
York much better off and Austin much

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better off, but it's still not going
to answer this question of what happens in

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the countryside. Uh, to answer
the question of what happens in the

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countryside, you need you need to get
to the next thing. You need you need to

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make AI hardware as well as software.

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And and and you're right back
to that same prescription of basically

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re-industrializing the country.
And again, not reind not reindustrializing

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the country on the stuff that has
already left. re-industrializing the

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country based on all the things that
have to be invented and built. Um, and

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it's just like we know I mean just
like I'm just like incredibly highly

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confident that there's going to be
these giant industries of, you know,

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computerized everything. AI powered
all kinds of hardware of all kinds of

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shapes, sizes, to descriptions. You know,
you're finding a lot of that kind

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of thing. I'm finding a lot of that kind
of thing. I mean, look, the entire

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defense base has to get
rebuilt around this kind.

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>> We're going to redo the manufacturing.

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We're going to build roads and tunnels
and everything cheaper. It's going to be

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exciting. >> Yeah.
And so so so this this is this is

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the thing. This is the thing to do. like
the to me the path like on this is very

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clear because we we have to we have
to do we have to do this because it's

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necessary from national security
standpoint we have to do it because we

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need it we need the economic growth we
have to do it because we need an answer

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for the entire population of the country
not just the cities um and um yeah and

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we have to do it because if we don't do
it China's going to do it and we don't

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want to live in that