1 00:00:00,160 --> 00:00:03,037 And I'm sorry to upset people in Texas. 2 00:00:03,120 --> 00:00:06,877 Um it sure looks to me like um China is 3 00:00:06,960 --> 00:00:09,997 going to dominate the low-end robotic 4 00:00:10,080 --> 00:00:14,237 space. They're driving the cost of humanoid and 5 00:00:14,320 --> 00:00:16,797 nonhumanoid robots down to thousands of 6 00:00:16,880 --> 00:00:19,997 dollars from 10 $20,000. 7 00:00:20,080 --> 00:00:24,317 Their hardware, which is derived from their electronic vehicle work, is 8 00:00:24,400 --> 00:00:29,437 extraordinary. We in America don't have access to the Chinese EV cars, but 9 00:00:29,520 --> 00:00:32,317 they're phenomenally good at it, and they're getting better and better, and 10 00:00:32,400 --> 00:00:37,277 they're doing it the Chinese way, which means it scales. So, ex Google CEO Dr. 11 00:00:37,360 --> 00:00:40,877 Eric Schmidt just gave another controversial take about the AI and 12 00:00:40,960 --> 00:00:45,117 automation race between the US and China. It's so profound that this will 13 00:00:45,200 --> 00:00:49,197 define the future of warfare with AI advancements, and the Ukraine war is a 14 00:00:49,280 --> 00:00:53,197 perfect example. Let's unwrap the big picture with Eric before we dissect 15 00:00:53,280 --> 00:00:56,717 deeper into how AI is already changing real wars. 16 00:00:56,800 --> 00:00:59,757 >> I think the Ukraine war is a very good 17 00:00:59,840 --> 00:01:02,717 test bed to try to understand how AI 18 00:01:02,800 --> 00:01:06,077 will change war. And I'm not trying to 19 00:01:06,160 --> 00:01:08,237 minimize the horrific nature of the war. 20 00:01:08,320 --> 00:01:12,877 I've been in it. I've been on the front lines. Uh real wars are much worse than 21 00:01:12,960 --> 00:01:14,317 you all think they are if you've not 22 00:01:14,400 --> 00:01:17,357 been in them. It's really horrific. 23 00:01:17,440 --> 00:01:20,237 Um I think that there's a couple of 24 00:01:20,320 --> 00:01:22,957 principles that I would offer. The first 25 00:01:23,040 --> 00:01:25,837 is that there's no place to hide. Um 26 00:01:25,920 --> 00:01:30,877 that modern sensors see everything. So, 27 00:01:30,960 --> 00:01:34,157 for example, um if you're on the front, 28 00:01:34,240 --> 00:01:36,797 uh which is a horrible place to be, you 29 00:01:36,880 --> 00:01:38,157 can only come in and out of your 30 00:01:38,240 --> 00:01:41,997 foxholes at dawn and dusk every 12 hours 31 00:01:42,080 --> 00:01:43,917 because those are the only times when 32 00:01:44,000 --> 00:01:46,477 you can move without being detected by 33 00:01:46,560 --> 00:01:50,877 the uh daytime cameras or the infrared 34 00:01:50,960 --> 00:01:53,357 nighttime cameras. And the infrared 35 00:01:53,440 --> 00:01:55,757 cameras are getting so good now that the 36 00:01:55,840 --> 00:01:58,557 visibility at night is very similar to 37 00:01:58,640 --> 00:02:03,917 what you need for the day. I mean, it's astounding. Um, so if there's no place 38 00:02:04,000 --> 00:02:07,517 to hide, then why are you building aircraft carriers? The US Army just 39 00:02:07,600 --> 00:02:10,797 announced a brand new huge tank, uh, 40 00:02:10,880 --> 00:02:15,517 which is a sitting duck for the next generation of drones. And by the time 41 00:02:15,600 --> 00:02:19,037 the tank is deployed, the drones will be incredibly powerful. You have the same 42 00:02:19,120 --> 00:02:23,997 principle with aircraft carriers and so forth. Um, it's my own view is that the 43 00:02:24,080 --> 00:02:27,837 fastest learner wins. What's happening on Ukraine's side is that they're 44 00:02:27,920 --> 00:02:30,157 outnumbered three or four to one and 45 00:02:30,240 --> 00:02:34,957 Ukraine is moving very very quickly to innovate ahead of the Russians. The 46 00:02:35,040 --> 00:02:39,117 Russians are good, but the Ukrainians are better and that's why the fight is 47 00:02:39,200 --> 00:02:43,437 kind of balanced right now. It's it's not a stalemate. It's a tough fight, but 48 00:02:43,520 --> 00:02:46,077 Russia has not been able to achieve her 49 00:02:46,160 --> 00:02:48,157 objectives. Uh, which in my view is very 50 00:02:48,240 --> 00:02:51,277 good. Um, you know, if you go back to 51 00:02:51,360 --> 00:02:55,277 all of this hardware, when you go to the actual front, there's nothing on it. 52 00:02:55,360 --> 00:02:58,077 They don't have tanks or armored personnel carriers. All those things 53 00:02:58,160 --> 00:03:01,837 that are sitting in warehouses, you can't use them. They're too dangerous to 54 00:03:01,920 --> 00:03:04,077 be in. And I think what's going to 55 00:03:04,160 --> 00:03:09,117 happen is that the autonomy aspects will 56 00:03:09,200 --> 00:03:11,837 make automatic killing machines in war 57 00:03:11,920 --> 00:03:16,797 much more likely. And I'm not talking about the robots that you see in movies. 58 00:03:16,880 --> 00:03:20,397 I'm talking about the equivalent of drones whether they're sea drones or air 59 00:03:20,480 --> 00:03:25,197 drones that are highly automated with highly automated kill chains. And I 60 00:03:25,280 --> 00:03:29,837 think the final observation, sorry to go on, is that this is integrated in an AI 61 00:03:29,920 --> 00:03:33,997 software framework using reinforcement learning and that integrated software 62 00:03:34,080 --> 00:03:36,157 framework with reinforcement learning 63 00:03:36,240 --> 00:03:41,357 means that you can have optimal battle plans. My observation of military having 64 00:03:41,440 --> 00:03:44,477 spent lots of time with them is they have thousands of people who consider 65 00:03:44,560 --> 00:03:48,877 themselves planners. Why do we need planners when we can have the computer 66 00:03:48,960 --> 00:03:53,117 do a better plan than humans can? The planners can obviously oversee what the 67 00:03:53,200 --> 00:03:56,237 computer's doing, but computers are going to be better at planning and 68 00:03:56,320 --> 00:04:00,877 vision and frankly killing. Just so you know, reinforcement learning AI is 69 00:04:00,960 --> 00:04:05,517 terrifyingly powerful in war. Basically, it works as simply as this diagram. But 70 00:04:05,600 --> 00:04:09,917 the scary part is it doesn't just follow human rules. It learns by simulating 71 00:04:10,000 --> 00:04:13,517 millions of battles, discovers strategies no human planner would ever 72 00:04:13,600 --> 00:04:17,837 think of, and then executes them at machine speed. And here's a real example 73 00:04:17,920 --> 00:04:19,757 from Eric, which sparked from the famous 74 00:04:19,840 --> 00:04:23,117 Google Alph Go move 37. 75 00:04:23,200 --> 00:04:27,037 So, I was present when AlphaGo won the 76 00:04:27,120 --> 00:04:30,237 first Korean uh championship against the 77 00:04:30,320 --> 00:04:35,037 human and I was literally in Korea and 78 00:04:35,120 --> 00:04:37,597 there was a famous move called move 37 79 00:04:37,680 --> 00:04:39,117 and go has been a game that's been 80 00:04:39,200 --> 00:04:42,397 played for 2,500 years which made no 81 00:04:42,480 --> 00:04:44,797 sense and I was with the room with the 82 00:04:44,880 --> 00:04:49,037 humans and the human says proof 83 00:04:49,120 --> 00:04:52,797 proof that the game is going to lo the 84 00:04:52,880 --> 00:04:56,717 computer's going to lose to humans because no human would make such a 85 00:04:56,800 --> 00:05:00,717 stupid mistake. When they re when they reverse 86 00:05:00,800 --> 00:05:05,277 engineered the algorithm, the computer had discovered a new move. 87 00:05:05,360 --> 00:05:07,117 And this was the first example that I'm 88 00:05:07,200 --> 00:05:09,997 aware of in a gaming context of a 89 00:05:10,080 --> 00:05:12,797 completely new strategy being invented 90 00:05:12,880 --> 00:05:14,797 that was not visible to humans who were 91 00:05:14,880 --> 00:05:17,437 real experts in it. So I'm of the 92 00:05:17,520 --> 00:05:21,917 opinion that if you have a hundred humans who are busy controlling all the 93 00:05:22,000 --> 00:05:26,077 drones and these are smart people and they're well trained and so forth, my 94 00:05:26,160 --> 00:05:30,157 computer using reinforcement algorithms can actually come up with moves that you 95 00:05:30,240 --> 00:05:32,157 cannot anticipate and I can beat you. 96 00:05:32,240 --> 00:05:35,997 That is my opinion. So my guess is that 97 00:05:36,080 --> 00:05:38,237 the key things you need for for winning 98 00:05:38,320 --> 00:05:43,677 a war on a go forward basis is you're going to need millions of drones of many 99 00:05:43,760 --> 00:05:47,437 different kinds. by the way, not you know, you think of one type drone, 100 00:05:47,520 --> 00:05:52,237 different sizes and power that the algorithms will run in simulation and 101 00:05:52,320 --> 00:05:54,397 they'll learn what combinations to do 102 00:05:54,480 --> 00:05:57,117 based on what the enemy is doing and the 103 00:05:57,200 --> 00:05:59,437 the battle will occur very quickly. So 104 00:05:59,520 --> 00:06:01,597 the enemy comes in with a particular 105 00:06:01,680 --> 00:06:05,677 force projection and the computer says 106 00:06:05,760 --> 00:06:08,397 ah the optimal winning algorithm is to 107 00:06:08,480 --> 00:06:10,637 do A, B and C. The humans will watch 108 00:06:10,720 --> 00:06:14,157 this and go, "Holy crap, look at what it 109 00:06:14,240 --> 00:06:16,477 just did." Um, and this is equivalent of 110 00:06:16,560 --> 00:06:19,997 of uh sacrificing your queen in chess. 111 00:06:20,080 --> 00:06:23,517 But as a mathematical uh ability, the 112 00:06:23,600 --> 00:06:25,757 goal in war is to increase the 113 00:06:25,840 --> 00:06:28,957 probability of winning from 50/50, say, 114 00:06:29,040 --> 00:06:33,517 all the way up to 100%. We we know how to do that algorithmically. Eric is 115 00:06:33,600 --> 00:06:37,437 quite confident about the Ukraine war, but China as well as its AI and 116 00:06:37,520 --> 00:06:40,477 autonomous power, it's a different story. 117 00:06:40,560 --> 00:06:44,157 >> Well, it's interesting. I was just there. Um, I visited a whole bunch of 118 00:06:44,240 --> 00:06:47,037 robotic factories and um, and I'm sorry 119 00:06:47,120 --> 00:06:50,557 to upset people in Texas. Um, it sure 120 00:06:50,640 --> 00:06:53,837 looks to me like, um, China is going to 121 00:06:53,920 --> 00:06:58,157 dominate the low-end robotic space. 122 00:06:58,240 --> 00:07:00,717 They're driving the cost of humanoid and 123 00:07:00,800 --> 00:07:03,117 nonh humanoid robots down to thousands 124 00:07:03,200 --> 00:07:06,477 of dollars from 10 $20,000. 125 00:07:06,560 --> 00:07:10,877 Their hardware, which is derived from their electronic vehicle work, is 126 00:07:10,960 --> 00:07:15,997 extraordinary. We in America don't have access to the Chinese EV cars, but 127 00:07:16,080 --> 00:07:18,877 they're phenomenally good at it, and they're getting better and better, and 128 00:07:18,960 --> 00:07:22,797 they're doing it the Chinese way, which means at scale. So, my conclusion was 129 00:07:22,880 --> 00:07:27,757 that the ideal scenario is Chinese hardware and American software. which is 130 00:07:27,840 --> 00:07:32,317 geopolitically not possible, but that's the way I would phrase it. On the AI 131 00:07:32,400 --> 00:07:36,557 side, and I've written publicly about this, it 132 00:07:36,640 --> 00:07:40,877 sure looks to me like China's pursuing a different strategy than the US. The US 133 00:07:40,960 --> 00:07:43,357 is, and I'm very excited about this, 134 00:07:43,440 --> 00:07:45,517 working toward general intelligence. If 135 00:07:45,600 --> 00:07:48,557 you look at the planning gains and the 136 00:07:48,640 --> 00:07:51,837 incredible look at whether it's the 137 00:07:51,920 --> 00:07:56,157 latest 2.5 Gemini um OpenAI's 138 00:07:56,240 --> 00:07:59,277 successor to 03, it just goes on and on. 139 00:07:59,360 --> 00:08:01,037 Look at the coding capabilities of 140 00:08:01,120 --> 00:08:03,917 Claude. Um it it's unbelievable what 141 00:08:04,000 --> 00:08:06,557 they're doing that and and by the way 142 00:08:06,640 --> 00:08:11,197 that's at huge cost, right? Hundreds of billions of dollars of capital. You know 143 00:08:11,280 --> 00:08:14,957 the story about we're running out of electricity. We need God knows I 144 00:08:15,040 --> 00:08:17,357 testified in Congress 92 gawatt more 145 00:08:17,440 --> 00:08:19,197 power. An average nuclear power plant is 146 00:08:19,280 --> 00:08:23,277 1.5 gawatt. You see the problem. China 147 00:08:23,360 --> 00:08:27,117 has all the power that it needs. It's built the infrastructure by the way 148 00:08:27,200 --> 00:08:31,437 using solar largely. Um and they have all the power they need. They don't have 149 00:08:31,520 --> 00:08:33,837 the chips because of chips resorts. And 150 00:08:33,920 --> 00:08:36,077 they're also don't have the depth of the 151 00:08:36,160 --> 00:08:39,597 financial markets to fund $50 billion 152 00:08:39,680 --> 00:08:44,477 worth of hardware. At least today. It looks to me like because of all of those 153 00:08:44,560 --> 00:08:47,837 factors, they're going to focus on consumer products and enterprise 154 00:08:47,920 --> 00:08:50,477 applications for the rest of the world. 155 00:08:50,560 --> 00:08:54,317 I don't think that America will allow those things in. There's a pretty good 156 00:08:54,400 --> 00:08:56,397 chance that Chinese software is going to 157 00:08:56,480 --> 00:08:59,437 power the majority of the world's, you 158 00:08:59,520 --> 00:09:02,397 know, um human interfaces with computers 159 00:09:02,480 --> 00:09:04,797 and business interfaces. Uh that's of 160 00:09:04,880 --> 00:09:06,957 concern. I think it's very important 161 00:09:07,040 --> 00:09:09,917 that US technology dominate all of the 162 00:09:10,000 --> 00:09:14,157 spaces. I want America to win and I think we need to win in all of those. I 163 00:09:14,240 --> 00:09:18,717 think we're not spending enough time on the more mundane stuff. We're spending 164 00:09:18,800 --> 00:09:22,557 as we're spending a good amount of time on the exciting stuff which is great. We 165 00:09:22,640 --> 00:09:25,117 need to spend more time on the mundane stuff as well. 166 00:09:25,200 --> 00:09:27,917 >> Economically, Eric sees a split. The US 167 00:09:28,000 --> 00:09:32,317 leads in cutting edge, very expensive models. China leads in scaled, cheap 168 00:09:32,400 --> 00:09:36,317 hardware and may capture massive global market share in day-to-day AI 169 00:09:36,400 --> 00:09:38,717 applications. But what about Chinese 170 00:09:38,800 --> 00:09:42,557 military AI? Um there's no hint at all. 171 00:09:42,640 --> 00:09:46,317 Um the people I was with were not military. The Chinese military does not 172 00:09:46,400 --> 00:09:49,517 welcome me to chat with them. Um I 173 00:09:49,600 --> 00:09:51,917 always when I visit a Chinese company, I 174 00:09:52,000 --> 00:09:56,637 always believe because of civil military fusion. I'm in one building and I always 175 00:09:56,720 --> 00:09:59,757 believe in my mind that there's another building next door which I'm not allowed 176 00:09:59,840 --> 00:10:01,197 into where they do all the military 177 00:10:01,280 --> 00:10:04,797 work. So remember in their model the the 178 00:10:04,880 --> 00:10:07,517 companies the the national champions do 179 00:10:07,600 --> 00:10:11,917 both military and and civil stuff together presumably in different 180 00:10:12,000 --> 00:10:13,997 buildings with different classification. 181 00:10:14,080 --> 00:10:18,797 So you have to assume that every product that I see which includes by the way the 182 00:10:18,880 --> 00:10:22,637 robotic stuff there's a military division as well. I did not see them. 183 00:10:22,720 --> 00:10:26,957 >> So it's shrouded in secrecy which is understandable cuz yeah it's a state 184 00:10:27,040 --> 00:10:31,357 military secret. But Eric also assumed that civilian AI and robotics advances 185 00:10:31,440 --> 00:10:35,677 in China are tightly coupled to military programs, even if that part is kept 186 00:10:35,760 --> 00:10:39,997 hidden. Unfortunately, the US is not keeping up in this future of warfare. 187 00:10:40,080 --> 00:10:44,717 Here's why. Well, the the US is at the moment well 188 00:10:44,800 --> 00:10:46,717 behind in the areas that I'm speaking 189 00:10:46,800 --> 00:10:49,757 about. Um, the Secretary of Defense has 190 00:10:49,840 --> 00:10:52,397 issued a very important and positive 191 00:10:52,480 --> 00:10:55,677 order to get organized around drones. 192 00:10:55,760 --> 00:10:58,877 The US spends I think it's a trillion 193 00:10:58,960 --> 00:11:01,277 dollars a year roughly in military 194 00:11:01,360 --> 00:11:03,197 national security spending. It's it's on 195 00:11:03,280 --> 00:11:06,317 that order. Um so there's plenty of 196 00:11:06,400 --> 00:11:10,637 money in the system. One way to understand the US military is 197 00:11:10,720 --> 00:11:13,277 and thank God we're at peace is it's 198 00:11:13,360 --> 00:11:15,117 sort of a large it's sort of a jobs 199 00:11:15,200 --> 00:11:18,477 subsidy program for existing industries. 200 00:11:18,560 --> 00:11:21,837 If we're really at war, which hopefully 201 00:11:21,920 --> 00:11:26,077 never will occur, if we're really at war, I think you would see our military 202 00:11:26,160 --> 00:11:28,717 change very, very quickly, we have 203 00:11:28,800 --> 00:11:31,837 plenty of US companies that understand 204 00:11:31,920 --> 00:11:36,317 what I'm talking about, many of which are in the room, and they have trouble 205 00:11:36,400 --> 00:11:41,517 getting big contracts because that's not how the primes work. The US military 206 00:11:41,600 --> 00:11:44,637 does not have very good software capabilities compared to their hardware 207 00:11:44,720 --> 00:11:47,357 capabilities. The procurement systems 208 00:11:47,440 --> 00:11:50,077 are not organized around these. So 209 00:11:50,160 --> 00:11:52,717 again, if it were possible, I would 210 00:11:52,800 --> 00:11:56,397 accelerate this transition to offset X, 211 00:11:56,480 --> 00:11:59,437 autonomy, and drones. I see no reason 212 00:11:59,520 --> 00:12:03,037 why America should give an inch. Um I 213 00:12:03,120 --> 00:12:06,077 want us to uh the phrase is we bow to no 214 00:12:06,160 --> 00:12:09,117 one, right? America's dominance in the 215 00:12:09,200 --> 00:12:11,357 world is very important to American 216 00:12:11,440 --> 00:12:14,397 exceptionalism, to American economy, to 217 00:12:14,480 --> 00:12:18,797 freedom. I think America is committed to fighting against tyranny. That's why we 218 00:12:18,880 --> 00:12:21,037 fought in World War II. I'm a strong 219 00:12:21,120 --> 00:12:23,597 supporter of all of this. I worry that 220 00:12:23,680 --> 00:12:26,397 we're still spending 99.9% 221 00:12:26,480 --> 00:12:28,637 of the money on stuff that's not very 222 00:12:28,720 --> 00:12:31,597 important. Um, another example for the 223 00:12:31,680 --> 00:12:34,237 last 15 years that I've worked on this, 224 00:12:34,320 --> 00:12:37,437 when you have a person with a rifle in 225 00:12:37,520 --> 00:12:40,637 in the enemy, they typically use a 226 00:12:40,720 --> 00:12:42,877 missile from a jet to to kill that 227 00:12:42,960 --> 00:12:45,357 person. That's that doesn't make any 228 00:12:45,440 --> 00:12:48,397 sense. Um, in the initial war in 229 00:12:48,480 --> 00:12:49,997 Ukraine, 230 00:12:50,080 --> 00:12:52,477 before the Ukrainians had what they have 231 00:12:52,560 --> 00:12:56,557 now, they would use milliondoll U S300, 232 00:12:56,640 --> 00:12:59,117 S400 missiles to shoot down shaheds, 233 00:12:59,200 --> 00:13:01,917 which cost about $27,000 at a time. 234 00:13:02,000 --> 00:13:06,637 Again, the math doesn't work. It's really important in this new world to 235 00:13:06,720 --> 00:13:11,037 have defensive systems, which are, by the way, dual use, that you can 236 00:13:11,120 --> 00:13:13,357 massroduce at scale. What I'd like to 237 00:13:13,440 --> 00:13:16,397 see in America is a commitment to large 238 00:13:16,480 --> 00:13:19,037 manufacturing capabilities in the United 239 00:13:19,120 --> 00:13:23,757 States with stockpiled parts. I I was talking to some of my general friends 240 00:13:23,840 --> 00:13:27,597 and they pointed out that in a China conflict, which again we hope will never 241 00:13:27,680 --> 00:13:31,757 occur, we're going to also want to have those kinds of factories in the 242 00:13:31,840 --> 00:13:34,317 Philippines, Japan, Korea, you know, our 243 00:13:34,400 --> 00:13:36,397 allies as well because of the tyranny of 244 00:13:36,480 --> 00:13:38,797 distance, which makes sense to me. It's 245 00:13:38,880 --> 00:13:42,477 a it's a complete rethink of this 246 00:13:42,560 --> 00:13:46,317 Well, you know, our military, these these are real heroes. I I I love 247 00:13:46,400 --> 00:13:50,877 working with them and they have a doctrine of fight tonight. They have 248 00:13:50,960 --> 00:13:52,717 enormous courage, much greater courage 249 00:13:52,800 --> 00:13:56,477 than I do. We do not have the tools and 250 00:13:56,560 --> 00:13:58,397 the systems 251 00:13:58,480 --> 00:14:01,437 that they need. We are failing our 252 00:14:01,520 --> 00:14:05,597 leaders uh people in this room. Part of the reason we're having this meeting is 253 00:14:05,680 --> 00:14:07,597 because collectively I think we all kind 254 00:14:07,680 --> 00:14:10,477 of agree with this in philosophy. 255 00:14:10,560 --> 00:14:13,197 And so America's strength is innovation. 256 00:14:13,280 --> 00:14:17,437 So why are we not u applying the same principles of innovation that are in the 257 00:14:17,520 --> 00:14:21,837 consumer sector to the military? And it's because of the procurement systems. 258 00:14:21,920 --> 00:14:23,597 Right? The average time to weapon system 259 00:14:23,680 --> 00:14:27,037 is something like 17 years now. Right? 260 00:14:27,120 --> 00:14:29,997 By then the thing is is obsolete. Um I 261 00:14:30,080 --> 00:14:34,157 can't remember which of the jets it is but it has some it has like a pennium 4 262 00:14:34,240 --> 00:14:36,557 processor in it. It's still programming. 263 00:14:36,640 --> 00:14:41,597 When I was uh flying, when I was in the Pentagon, I discovered a burrow 6600 264 00:14:41,680 --> 00:14:46,237 deep in the bow of someone where people were afraid to turn off. Like the 265 00:14:46,320 --> 00:14:47,997 programmers who wrote that are literally 266 00:14:48,080 --> 00:14:51,277 dead, right? So, come on, guys. We can 267 00:14:51,360 --> 00:14:56,237 do better than this. And so, this part of the conversation, part of what you're 268 00:14:56,320 --> 00:15:00,077 trying to do, Gene, is to to get everyone to talk about this. Um, it 269 00:15:00,160 --> 00:15:02,717 seems to me that the way America changes 270 00:15:02,800 --> 00:15:05,597 is either from a crisis, which we do not 271 00:15:05,680 --> 00:15:07,917 want because it's war, or because we 272 00:15:08,000 --> 00:15:09,757 collectively agree that we want to win 273 00:15:09,840 --> 00:15:12,717 in a new space. And for all of you, 274 00:15:12,800 --> 00:15:15,277 there's enormous revenue here. Now, you 275 00:15:15,360 --> 00:15:19,277 have this explosion in um fantastic 276 00:15:19,360 --> 00:15:23,837 startups and I want them to I want them to get through the valley of the death. 277 00:15:23,920 --> 00:15:26,557 I want the government to have a way of working with them. I want them to know 278 00:15:26,640 --> 00:15:28,797 who to call. The thought experiment that 279 00:15:28,880 --> 00:15:32,237 I used to give is let's imagine that I 280 00:15:32,320 --> 00:15:33,997 collect all the venture capitalists in 281 00:15:34,080 --> 00:15:37,597 the Bay Area in a room for a military 282 00:15:37,680 --> 00:15:40,397 procurement venture conversation. Who 283 00:15:40,480 --> 00:15:42,957 from the government is going to come and 284 00:15:43,040 --> 00:15:45,757 present to them and what is he or she 285 00:15:45,840 --> 00:15:48,717 going to say? Right? If you can't answer 286 00:15:48,800 --> 00:15:51,597 that question, right, then you're not 287 00:15:51,680 --> 00:15:56,557 going to win. Now, our venture capital community loves to talk to CEOs and they 288 00:15:56,640 --> 00:16:00,717 imagine who the customer are, but this is a single source customer, right? For 289 00:16:00,800 --> 00:16:04,717 good reason, by the way. We don't want separate militaries. The the military 290 00:16:04,800 --> 00:16:07,277 has got to learn how to work with us. 291 00:16:07,360 --> 00:16:09,517 And of course, they're very law-abiding. 292 00:16:09,600 --> 00:16:13,117 The laws have to change to allow for this. And I'm excited for that to occur. 293 00:16:13,200 --> 00:16:16,237 I'd like it to occur during my lifetime. 294 00:16:16,320 --> 00:16:18,317 To me, it's almost like China and the US 295 00:16:18,400 --> 00:16:23,277 are in an AI race similar to the Cold War arms race. Except this time, instead 296 00:16:23,360 --> 00:16:26,957 of the US duping the Soviets into spending themselves into oblivion, 297 00:16:27,040 --> 00:16:31,117 developing a tech that won't actually benefit their population while severely 298 00:16:31,200 --> 00:16:35,677 neglecting their infrastructure, cost of living and corruption, China is the one 299 00:16:35,760 --> 00:16:39,597 pulling these moves on the US. Seems to me like China just read the playbook on 300 00:16:39,680 --> 00:16:43,277 how the last challenger to world hegemony was overcome and is turning it 301 00:16:43,360 --> 00:16:45,437 on the current hegeimon. But you know, 302 00:16:45,520 --> 00:16:52,480 the future is always hard to tell. So stay tuned and thanks for watching.