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.

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Um and I would say the the good news,
let's make the panel optimistic. The

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good news is the US is like by far
the leader on AI. Now, by the way, we need

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to decide whether we want to be
the leader in AI cuz there's like a lot of

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forces in the US and in the US
government that are trying to prevent

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that from happening.
But there's over a thousand laws at

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state level we've been trying to fight
and stop that would screw this up,

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right? So there's a lot
of people who are against this.

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>> California state
state government almost

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passed a law to outlaw AI in California
6 months ago, which which is an

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indication how crazy
California is. But yes, that

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we we can have it's like everything else.
We can have it if we want it. Uh

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these are all choices. But like AI
is happening and AI is only happening in

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two places. Like it's only US versus
China and there's a whole competition

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thing there. But like the US is like
very powerful on this. And then by the

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way, US is benefiting a lot cuz Europe
has basically made AI illegal. Like

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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 ChatGPT. It's an app

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

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know, really to you know, people are
building giant data centers, but you

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

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

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physical AI, which is robotics.

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Right? Um and this is a transition
that has already happened. It's already

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actually happened in drones, uh where
drones went from being human piloted to

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actually be auto you know, autonomously
piloted. They they now fly themselves.

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Um it's a transition that's happening
in cars right now, right? Where cars went

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from, you know, basically purely
physical products to now basically being

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rolling computers that drive themselves.

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And if you if you haven't tried this yet,
like go to go to if you ever have

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the misfortune of finding yourself
in San Francisco, uh take a Waymo.

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>> [snorts] >> Um it's
amazing to live in a cyberpunk

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future reality where you're in literally
a state-of-the-art self-driving car

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that's literally out of the Jetsons
driving past people who are dying of

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fentanyl overdoses on the sidewalk.
I recommend having the experience at least

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once. Um but but the
self-driving car really does

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work. Like it's really happening. And
then what's going to happen, you you've

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all probably seen, you know, Elon has
this Optimus robot that he's building.

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Um these humanoid robots. Like the the
the general purpose robotics thing is

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

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

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

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of the planet. It's it's 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 them

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alien dreadnought factories, right?

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Which is like these super sophisticated
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 get a huge
payoff from all the tech investment that

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that that that the coasts are making,
but we generate many tens or hundreds of

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millions of jobs um in the countryside.

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And then the US would would lead.
It would be you know, be the third

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industrial or fourth industrial
revolution. We would we would lead in

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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.

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

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profound consequences.
>> important policy point. And I I want to

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I want to dig into this a little
bit more. A lot of I was just in an

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interview up there like, "Aren't we
going to destroy tens of millions of

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

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

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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

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explain this is actually a really good
thing for the country? Cuz a lot of

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Luddites are going to attack this.
They are going to try to stop it. Yeah, so

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the the Luddites the the Luddites are
wrong. The neo neo-Luddites are wrong.

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They're wrong in the sense of like
that for the reason they've always been

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wrong, which is the reality is we have
not in the last 50 years been in an era

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

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productivity change, slow economic growth.

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Um AI, if it works the way that actually
people either hope or fear that it's

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going to work, it's going to cause
productivity growth to shoot up. That

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will naturally accelerate economic growth.
Um but look, if if it just stays

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as software, then the result of that
is it's going to make the cities much

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better off, right? It's going to it's
going to make San Francisco and LA and

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and New York much better off and Austin
much better off. But it's still not

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going to answer this question of what
happens in the countryside. Uh to answer

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the question of what happens in the
countryside, you need you need to get to

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the next thing. And you you need to make
AI hardware as well as software. And and

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you're right back to that same
prescription of basically

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reindustrializing the country. And again,
not reindus not reindustrializing

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the country on the stuff that has
already left. Reindustrializing 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 would 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, descriptions. You know,
you're finding a lot of that kind of

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

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base has to get rebuilt around this stuff.

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>> Yeah, we're going to redo
the manufacturing. We're going to build

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roads and tunnels and everything cheaper.
It's going to be exciting.

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Yeah. And so so so this this is this
is the thing that that that this is the

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thing to do. Like the to me the path
like on this is very clear cuz we have

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to we have to do it. We have to do
this because it's necessary for national

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security standpoint. We have to do it
because we need it. We need the economic

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growth. We have to do it because we need
an answer for the entire population of

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the country, not just the cities. Um and
yeah, and we have to do it because if we

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don't do it, China's going to do it
and we don't want to live in that world.