# Alex Karp on AI Wealth Inequality

*CreatorClub* · https://www.youtube.com/watch?v=tYIPxM_yPnk

## Summary

Alex Karp discusses which countries are embracing new technologies, arguing that America, China, and Israel are while Germany's export culture leaves it behind. He addresses fear around AI, saying the overselling of AI in America is disconcerting, and that while most people will do better, the people involved may become 10 to 100 times wealthier, which is a problem for society. He frames the issue as political rather than technological, and claims Palantir is popular because he says things people don't want to hear while others only say what people want to hear. The conversation ends on how telling people not to believe their own eyes drives protest votes.

## Key points

- Karp says only two and a half countries are embracing these technologies: America, China, and Israel.
- He argues Germany's core problem is its export culture, and the only way to compete is to rebuild industries with these new technologies.
- He believes AI will raise most people's standard of living, but the people involved may get 10 to 100 times wealthier, which is a problem for society.
- He describes this as a new revolution with no playbook, unlike past ones where wealth gaps grew far less dramatically.
- He says the real issue in America is political, not technological, and that telling people "don't believe your lying eyes" drives protest votes.
- He claims Palantir is the most popular brand in the world because he says things people don't want to hear, while others only say what people want to hear.
- He identifies as a '70s progressive who wants to help the poor without burning the rich.

## Notes

### Countries embracing new technology
- Karp says only two and a half countries embrace these technologies: America, China, and Israel.
- Germany's core problem is its export culture: its products must be better than everyone else's or no one will buy them.
- The only way for Germany to compete is to rebuild industries, like the car industry, to be as good as China's.

### Fear in an exciting era
- The interviewer notes rapid progress in space, health, computing, robotics, and defense, but also widespread fear and anger.
- Karp says there is "too much fear" and that America has a political problem more than a tech problem.

### Overselling AI
- Karp criticizes the overselling of AI in America, calling it disconcerting and depressing.
- He believes AI is a natural resource that is net valuable for humanity but has negative externalities.
- Deploying it requires processing engines, application layers, and ontology.

### A new revolution with no playbook
- Karp argues this is a different revolution with no playbook, unlike the wheel, steam engine, or computers.
- Most people, especially those willing to change jobs, will do better, but not everyone.
- In past revolutions, salaries at the bottom might double while the top became five times wealthier; now the people involved could become 20 times wealthier.
- He describes a decoupling of unimaginable wealth from normal life, held by people he calls "very oddly shaped IQ specimens" you wouldn't want at dinner.

### Political consequences
- Society is already separate: wealthy people no longer know each other or go to the same schools as in the '50s and '60s.
- He calls it a "separate but non-equal society," hyper-charged by extreme wealth.
- Even if most people do better, people fear losing their jobs, and lab leaders themselves say it will happen.
- Silicon Valley developers told the interviewer they think they have only 6 months until their jobs are gone.
- Telling people "don't believe your lying eyes" on AI, migration, or nuclear leads to protest votes.

### Palantir's popularity
- Karp claims Palantir is the most popular brand in the world because he says things people don't want to hear: the West is superior, national service means helping old people, industry should align with the country, and adversaries are real.
- He identifies as a '70s progressive: help the poor, don't burn the rich.

## Transcript

[00:00] There are two and a half countries that are embracing these technologies. America, which has GDP growth. That part of the problem we have politically is it works almost too well. It's just not widely China seems to be working and Israel seems to be working. Where have people not embraced these technologies? And so that that it's like it but again, if you just start with the core problem Germany has, it's an export culture. It's products have to be better than everyone else's or no one's going to buy them. And you you you can basically ask Germans, do you think your products are going to be responsible for your for your uh um economic health, bullstand, or is it going to be your diplomatic service that's going to

[00:42] deliver that? You're going to you're going to rely on German popularity. And so the opportunity is it's I I tend to think like the opportunity is that if you want to succeed and thrive, there's only one set of technologies that can do this. How are you going to rebuild your car industry so it's as good as China's? Just start there. Like again, that it it and the people are doing that. We have partners. How are you going to rebuild these industries so you can compete and win? There there is no other way. >> Alex, I think we are living in one of the most exciting times of civilization. There is so much change, there is so much progress, there is progress on so many levels in highest and accelerated speed. It is

[01:27] the case for space, it is the case for health, it is the case for computing and robotics. It is the case also for defense, unfortunately we need that. So my question is although we are at the eve of an incredible accelerated productivity gain and uh potentially a better form of living in civilization I really see that opportunity. Nevertheless, it is one of the most skeptical times. There is a lot of fear. There is a lot of anger. How do you explain that? Is it simply the speed of change? Well, it's too much fear. >> Now, let me just focus on America. I think And by the way, that is not a European origin. That is the Western wrong. And it is an arguably bigger problem here. This is where I do think America might have Like

[02:22] I think Okay, Europe has an obvious tech problem with political consequences that are really bad. America has a more of a political problem where left far left far right have just like They It's more hurt the people are successful than any solution. And they're very serious about that. And you know, the idea they couldn't win is not true, unfortunately. Um the the the the the the central framing I'm skeptical of here with people So, people I agree with, probably you and definitely people in my tech world, um it's always like this is going to be a bastion of plethora of good things that everyone's going to profit from and there are no dangers. Not saying you say this, but but it is a commonly held

[03:14] view. And that the tech people want everyone to like just stand up and say that. And I think that is not credible. What But I what I think is actually just like the overselling of AI in this country is really really um really somewhat disconcerting, but it's also depressing because you don't have to do it. This is a natural resource that is net net excruciatingly valuable for the betterment of humanity. But it does have some negative externalities. First of all, we don't know where it's going to go. It's These things are not deployable without processing engines, application layers, ontology, etc. Um it And the biggest problem in this country is it does it while it will raise the standard of living of the average person, the people

[04:07] involved are likely to get 10, 100 times wealthier than they already are. That's a problem for society. Like you know the the way I try to explain it to my Silicon Valley colleagues is Do you think that >> the wealth I mean if we go back to history then innovation and new technologies have always led to a growth, to prosperity, and to an improvement of the standard of living of all people, particularly of the lower income income classes. That has started uh centuries ago. It was true when the wheel was invented, it was true when the steam engine was invented, it was true when computers were invented. It has in the end, if we draw a line, contributed to the well-being of people and it has improved the shape of society.

[04:59] Nevertheless, at the beginning there's always the concern the steam engine is going to destroy >> Well, let me just sorry. >> jobs and we are always afraid. >> So my point is do you think that it is not different Let me give you a different first. Let me give you a different the answer that I think sums up a lot of the problems. in your Pan America. This is a new playbook. Like there or there is no playbook. Like why am I doing so well? Because this is a neuro diversion age and what the people had skills So So this is a different revolution. And even if that is true and let's assume it is that everybody will do well. I think that's not I think most people will do better. >> You You think that society is going to

[05:42] divide into a very few with incredible >> I mean it is the mass that has nothing. No, no, no, I'm not I'm not saying that. Again, I think that's like that's kind of there there it that's not what I'm saying. I'm saying most people who are middle and middle and lower class will do better. Everybody people who are willing to change their jobs are likely to do better, but not everyone. But that's not the real political problem. We have a political problem in this country, not a tech problem. In past revolutions, uh the person at the bottom maybe their salary doubled and the person at the top became five times wealthier, but like it was very unusual to be a billionaire 40 years ago, right? You now have a revolution where,

[06:27] you know, I could become 20 times wealthier than I am now. And the person who is working out here could become, you know, they could have their salary could go over certainly could go up significantly by any normal standard over a period of 10 years, go up 50% or double, okay? It when you have a complete decoupling of like unimaginable wealth and normal and that unimaginable wealth and then this is where we're not really allowed to say this, but it's done by people that you don't really relate to. Like these are like very oddly shaped IQ specimens that, you know, you probably wouldn't want to have over for dinner. If they were over for dinner, you have nothing to talk to them about. And by the way, vice versa.

[07:12] And you know, and then our whole fabric is not like I got screamed at for like first of all, it wasn't a draft. It was like we should have some kind of service. By the way, by that I meant hospital, taking care of old people. Our our fabric of our society is already strained. Wealthy people, it's not like in the '50s and '60s where people actually knew each other, went to the same schools. We're already totally separate societies, right? It basically is. I mean, it's inflammatory, but we already live in a separate but non-equal society. And then, you hyper-charge it with like extreme economic wealth. Like like ex- egregiously extreme, while everybody else is kind of growing. And even if it's not true,

[07:55] people are afraid, even if it is true that most people are raised, the actual fear people have is "I'm going to lose my job." Now, that fear, even if it's not true, the people running the lab companies, who are the leaders, told you it's true. They're telling you your life is going to suck. And they're also getting very wealthy, and you don't find them very likable. >> And people who used to be on the winning side of history are now suddenly very much afraid that they would lose their job. I traveled to the Silicon Valley three times over the last few weeks, and the the level of nervousness is really surprising. A lot of people think we have only 6 months until our jobs are going to be gone, and that is

[08:41] the tech community, that is developers. And they they work day and night in order to reinvent themselves, because they are afraid that in a few months >> And and again, >> no income. >> And and and and the political version that scares me a lot, and I do think said I'm yelling at everyone in Silicon Valley in private and on public, I've been a Democrat, despite what you may be reading about me, most of my life. I'm still a '70s progressive, which is actually a real progressive, meaning I want to help the poor, I just don't want to burn the rich. The the Silicon Valley line basically is "Don't believe your lying eyes." Okay? This doesn't work politically. And by the way, it's the same problem Germany

[09:21] and Europe have about all these issues. And if you if you tell people don't believe your lying eyes, you know what they do? They protest vote. That's what happens. And they protest vote, cuz what they're really saying is "You are telling me not to believe everything I know." And by the way, also, just overarching in Europe and in America, the political class has low legitimacy. So, what you know, what your version of reality is, they're always lying to me. I don't know why they're lying. That's hard to figure out, but you people believe they're always lying to me. And again, to just overly tie this in to annoyingly, why I'll give you a different version. Why is Palantir the most popular brand

[10:00] in the world? People always frame as the most unpopular. We have For every time you reach someone, we have 100 times of I'll tell you why we're the most popular brand in the world, and that's why they attack us often. We're the most popular brand in the world cuz I might be crazy. I am saying things you don't want to hear, like the West is superior, we need national service, which means helping out old people, it doesn't mean no uh industry should be fully aligned with the country. Uh we have to fight for these things. We have real adversaries. If we're not competent, we'll lose. These things are technologies are not perfect, and you have to listen to annoying people. And by the way, you can't blame everything on a country you

[10:36] hate, whatever. Okay. And you know why we're so popular? Because everybody else is telling you they're only trying to figure out what you want to hear so they can That's the Feld version. And that's why when you when politicians in this country or anywhere else say, "Hey, don't believe your lying eyes on migration. Don't believe your lying eyes on nuclear. Don't believe your lying eyes on AI." They get up and they vote for people who are like, "Screw these people. I'm going to burn down my house." What