1
00:00:00,000 --> 00:00:02,757
We're at this very specific
and important and fundamental and I think

2
00:00:02,840 --> 00:00:06,117
profound turning point in technology,
which is the rise of AI.

3
00:00:06,200 --> 00:00:08,397
Um and I would say the the good news,
let's make the panel optimistic. The

4
00:00:08,480 --> 00:00:12,237
good news is the US is like by far
the leader on AI. Now, by the way, we need

5
00:00:12,320 --> 00:00:14,797
to decide whether we want to be
the leader in AI cuz there's like a lot of

6
00:00:14,880 --> 00:00:17,397
forces in the US and in the US
government that are trying to prevent

7
00:00:17,480 --> 00:00:20,037
that from happening.
But there's over a thousand laws at

8
00:00:20,120 --> 00:00:22,517
state level we've been trying to fight
and stop that would screw this up,

9
00:00:22,600 --> 00:00:24,317
right? So there's a lot
of people who are against this.

10
00:00:24,400 --> 00:00:25,877
>> California state
state government almost

11
00:00:25,960 --> 00:00:29,077
passed a law to outlaw AI in California
6 months ago, which which is an

12
00:00:29,160 --> 00:00:32,197
indication how crazy
California is. But yes, that

13
00:00:32,280 --> 00:00:35,357
we we can have it's like everything else.
We can have it if we want it. Uh

14
00:00:35,440 --> 00:00:37,797
these are all choices. But like AI
is happening and AI is only happening in

15
00:00:37,880 --> 00:00:40,717
two places. Like it's only US versus
China and there's a whole competition

16
00:00:40,800 --> 00:00:43,757
thing there. But like the US is like
very powerful on this. And then by the

17
00:00:43,840 --> 00:00:47,037
way, US is benefiting a lot cuz Europe
has basically made AI illegal. Like

18
00:00:47,120 --> 00:00:48,877
they're regulating themselves to death.

19
00:00:48,960 --> 00:00:53,037
And so the smart AI people in Europe are
moving to the US. Um and so like the the

20
00:00:53,120 --> 00:00:55,397
US really is ground zero for AI. Um

21
00:00:55,480 --> 00:01:00,437
today AI is software, right? And so when
you use AI, you use ChatGPT. It's an app

22
00:01:00,520 --> 00:01:03,557
on your phone, right? It it does there's
no manufacturing kind of component, you

23
00:01:03,640 --> 00:01:05,637
know, really to you know, people are
building giant data centers, but you

24
00:01:05,720 --> 00:01:09,117
know, it's not a huge generator of like
middle-class jobs. Um but there's

25
00:01:09,200 --> 00:01:12,677
another turn on AI that's coming,
which is the turn to the turn to embodied

26
00:01:12,760 --> 00:01:14,677
physical AI, which is robotics.

27
00:01:14,760 --> 00:01:17,597
Right? Um and this is a transition
that has already happened. It's already

28
00:01:17,680 --> 00:01:20,997
actually happened in drones, uh where
drones went from being human piloted to

29
00:01:21,080 --> 00:01:24,917
actually be auto you know, autonomously
piloted. They they now fly themselves.

30
00:01:25,000 --> 00:01:28,157
Um it's a transition that's happening
in cars right now, right? Where cars went

31
00:01:28,240 --> 00:01:30,997
from, you know, basically purely
physical products to now basically being

32
00:01:31,080 --> 00:01:32,797
rolling computers that drive themselves.

33
00:01:32,880 --> 00:01:36,157
And if you if you haven't tried this yet,
like go to go to if you ever have

34
00:01:36,240 --> 00:01:39,477
the misfortune of finding yourself
in San Francisco, uh take a Waymo.

35
00:01:39,560 --> 00:01:42,237
>> [snorts] >> Um it's
amazing to live in a cyberpunk

36
00:01:42,320 --> 00:01:45,517
future reality where you're in literally
a state-of-the-art self-driving car

37
00:01:45,600 --> 00:01:48,077
that's literally out of the Jetsons
driving past people who are dying of

38
00:01:48,160 --> 00:01:51,357
fentanyl overdoses on the sidewalk.
I recommend having the experience at least

39
00:01:51,440 --> 00:01:54,997
once. Um but but the
self-driving car really does

40
00:01:55,080 --> 00:01:57,877
work. Like it's really happening. And
then what's going to happen, you you've

41
00:01:57,960 --> 00:02:00,957
all probably seen, you know, Elon has
this Optimus robot that he's building.

42
00:02:01,040 --> 00:02:05,397
Um these humanoid robots. Like the the
the general purpose robotics thing is

43
00:02:05,480 --> 00:02:07,877
going to happen and it's going to happen
in the next decade and it's going to

44
00:02:07,960 --> 00:02:11,437
happen at giant scale. And I I I think
there's a plausible argument, which Elon

45
00:02:11,520 --> 00:02:13,997
also believes, that robotics is going
to be the biggest industry in the history

46
00:02:14,080 --> 00:02:16,677
of the planet. It's it's going to be
gigantic. There's going to be billions,

47
00:02:16,760 --> 00:02:19,157
tens of billions, hundreds of billions
of robots of all shapes, sizes,

48
00:02:19,240 --> 00:02:22,437
descriptions running around doing all
kinds of things. Um those robots need to

49
00:02:22,520 --> 00:02:25,917
get designed and built, right? And so
my view is, you know, we don't try to get

50
00:02:26,000 --> 00:02:28,997
the old manufacturing jobs back. What we
try what we should do is lean hard into

51
00:02:29,080 --> 00:02:32,757
the manufacturing jobs of the future,
which is designing and building all of

52
00:02:32,840 --> 00:02:36,717
these new things, right? By the way,
which includes drones and cars, right?

53
00:02:36,800 --> 00:02:40,317
And robots. Um and you know,
we shouldn't be building manufacturing

54
00:02:40,400 --> 00:02:42,957
lines that have people sitting on a
rubber mat for 10 hours screwing screws

55
00:02:43,040 --> 00:02:45,917
in by hand, but we should be building,
you know, what Elon calls he calls them

56
00:02:46,000 --> 00:02:47,157
alien dreadnought factories, right?

57
00:02:47,240 --> 00:02:51,037
Which is like these super sophisticated
factories with like tons of robotics.

58
00:02:51,120 --> 00:02:53,717
But you can imagine thousands
and thousands of different categories of

59
00:02:53,800 --> 00:02:56,357
industrial production that have
to happen all across the US in order to

60
00:02:56,440 --> 00:03:00,597
make this happen. Um and and and would
cause just like enormous economic growth

61
00:03:00,680 --> 00:03:03,677
throughout the country. We get a huge
payoff from all the tech investment that

62
00:03:03,760 --> 00:03:07,237
that that that the coasts are making,
but we generate many tens or hundreds of

63
00:03:07,320 --> 00:03:09,557
millions of jobs um in the countryside.

64
00:03:09,640 --> 00:03:12,117
And then the US would would lead.
It would be you know, be the third

65
00:03:12,200 --> 00:03:14,317
industrial or fourth industrial
revolution. We would we would lead in

66
00:03:14,400 --> 00:03:16,397
the development of all these new things.

67
00:03:16,480 --> 00:03:18,997
And then you get to the national
security side of this, which is if you

68
00:03:19,080 --> 00:03:22,877
don't do this, you're living in a
world of Chinese robots everywhere.

69
00:03:22,960 --> 00:03:26,597
Um and that has, you know, very profound
consequences uh for let's just say yeah,

70
00:03:26,680 --> 00:03:29,557
profound consequences.
>> important policy point. And I I want to

71
00:03:29,640 --> 00:03:31,997
I want to dig into this a little
bit more. A lot of I was just in an

72
00:03:32,080 --> 00:03:34,117
interview up there like, "Aren't we
going to destroy tens of millions of

73
00:03:34,200 --> 00:03:36,797
jobs? Isn't AI scary?" A lot of people
are very scared right now with the

74
00:03:36,880 --> 00:03:39,757
disruption. I'm very excited about
the higher productivity cuz I see it being

75
00:03:39,840 --> 00:03:43,637
disinflationary. I see it creating
more jobs. How how do we how do we if

76
00:03:43,720 --> 00:03:45,717
assuming we're aligned, how do we
explain this to people? How do we

77
00:03:45,800 --> 00:03:47,957
explain this is actually a really good
thing for the country? Cuz a lot of

78
00:03:48,040 --> 00:03:51,317
Luddites are going to attack this.
They are going to try to stop it. Yeah, so

79
00:03:51,400 --> 00:03:54,397
the the Luddites the the Luddites are
wrong. The neo neo-Luddites are wrong.

80
00:03:54,480 --> 00:03:56,677
They're wrong in the sense of like
that for the reason they've always been

81
00:03:56,760 --> 00:04:00,237
wrong, which is the reality is we have
not in the last 50 years been in an era

82
00:04:00,320 --> 00:04:03,917
of fast productivity growth, technological
change. We've been in an area of slow

83
00:04:04,000 --> 00:04:06,397
productivity change, slow economic growth.

84
00:04:06,480 --> 00:04:09,557
Um AI, if it works the way that actually
people either hope or fear that it's

85
00:04:09,640 --> 00:04:12,277
going to work, it's going to cause
productivity growth to shoot up. That

86
00:04:12,360 --> 00:04:16,317
will naturally accelerate economic growth.
Um but look, if if it just stays

87
00:04:16,400 --> 00:04:18,797
as software, then the result of that
is it's going to make the cities much

88
00:04:18,880 --> 00:04:21,597
better off, right? It's going to it's
going to make San Francisco and LA and

89
00:04:21,680 --> 00:04:24,477
and New York much better off and Austin
much better off. But it's still not

90
00:04:24,560 --> 00:04:27,637
going to answer this question of what
happens in the countryside. Uh to answer

91
00:04:27,720 --> 00:04:30,837
the question of what happens in the
countryside, you need you need to get to

92
00:04:30,920 --> 00:04:34,637
the next thing. And you you need to make
AI hardware as well as software. And and

93
00:04:34,720 --> 00:04:36,557
you're right back to that same
prescription of basically

94
00:04:36,640 --> 00:04:40,157
reindustrializing the country. And again,
not reindus not reindustrializing

95
00:04:40,240 --> 00:04:42,877
the country on the stuff that has
already left. Reindustrializing the

96
00:04:42,960 --> 00:04:46,317
country based on all the things that
have to be invented and built. Um and

97
00:04:46,400 --> 00:04:49,037
it's just like we know, I would just
like I'm just like incredibly highly

98
00:04:49,120 --> 00:04:52,317
confident that there's going to be
these giant industries of, you know,

99
00:04:52,400 --> 00:04:55,477
computerized everything, AI-powered
all kinds of hardware of all kinds of

100
00:04:55,560 --> 00:04:57,917
shapes, sizes, descriptions. You know,
you're finding a lot of that kind of

101
00:04:58,000 --> 00:05:00,837
thing. I'm finding a lot of that kind
of thing. I mean, look, the entire defense

102
00:05:00,920 --> 00:05:02,397
base has to get rebuilt around this stuff.

103
00:05:02,480 --> 00:05:04,157
>> Yeah, we're going to redo
the manufacturing. We're going to build

104
00:05:04,240 --> 00:05:06,677
roads and tunnels and everything cheaper.
It's going to be exciting.

105
00:05:06,760 --> 00:05:10,317
Yeah. And so so so this this is this
is the thing that that that this is the

106
00:05:10,400 --> 00:05:13,797
thing to do. Like the to me the path
like on this is very clear cuz we have

107
00:05:13,880 --> 00:05:16,437
to we have to do it. We have to do
this because it's necessary for national

108
00:05:16,520 --> 00:05:19,077
security standpoint. We have to do it
because we need it. We need the economic

109
00:05:19,160 --> 00:05:21,877
growth. We have to do it because we need
an answer for the entire population of

110
00:05:21,960 --> 00:05:25,877
the country, not just the cities. Um and
yeah, and we have to do it because if we

111
00:05:25,960 --> 00:05:30,040
don't do it, China's going to do it
and we don't want to live in that world.