Pivot
Pivot

Trump’s China Summit, Inflation Shock, and Silicon Valley’s Midterm Money

9d ago1:00:3712,148 words
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Kara and Scott unpack what AI obsession is doing to relationships and young men. Then, they break down Trump’s China summit, the crew of business executives he brought along, and ominous warnings from...

Transcript

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ready for AI. To learn more about how coreweave powers the world's best AI go to coreweave.com/ready for anything. Hi everyone, this is Pivot from New York Magazine and the Vox Media Podcast Network. I'm Keras Wisher. Guess who I spent several wonderful days with this week? Several. I don't know. My son Alex, legs, we had a great time. I took him to New York. I had to go up in the

interview, Joanna Stern was written a book called, "I am not a robot," which Alex really enjoyed the set-up. It was at the 92nd Street Y. But it was really nice. And I have a new proposal for us,

Scott. I have a new idea. I think it's really nice to spend quality time with one kid at a time,

right? To do something, you do that. Don't you take one, not both, but like one special thing

for like a day or two, whatever they want to do. What do you think? I think that's a great thing. Ever, pretty much every Saturday night. I did dinner with one of them and I take trips. I would say, if it's not a family trip, I do a trip with one of them, not both of them. Yeah, yeah, I thought that you do that and I was thinking that. I was thinking that's a really good thing. It was such a nice quality time to, and I don't like the word quality time, but it actually was. It was, because everyone's,

you know, as you know, I have a talkie family, everyone's competing for, for, you know, it's just a lot of people all at once, but it's just nice to have concentrated time with one kid at a time, which is really nice. Oh, I went. I went and saw devourers' product too. And took an out of bowl, went and got it. Why did you take your wife? What was the cause of you going to take it?

I did my favorite thing in the world. I'm here just solo with the kids, I took an out of bowl.

They didn't want to see it with me. And they don't like, they don't go to movies. And I went and I ate at the bar at this place called Lina, which is a Italian restaurant at the bottom of Marlibone, or of some Marlibone high street. Yeah. And then I walked over to the suffrage of theaters. And I got it. I liked it more than I thought. I only walked out about after an hour. I wanted to stop. True story. I waited until I saw you. I thought you looked really good.

I waited till I saw Justin. I thought he nailed his part perfect. And then I then I pieced out. Oh, you don't know what happened then in the end. I know what exactly what fucking happened. It's the same cut to have a movie again. There's no different. And all of that, you know, it's really even strange. They all look like they've been frozen. They don't look any different. They look like years ago. I know. Don't they look great? Everybody looks exactly the same.

Yeah. But it's the same story. Oh, there's Annie who wants to be a journalist. And she's been a journalist. No journalism. Yeah, you're wrong. She's a global hit. I love her. You like try to try it. Which doesn't mean it's good. Marvel. Marvel is the box-off. No, no, no, no. This is doing rather well. All these individualized movies are doing really well. And you love to resist it. But it's the case. People who people are liking you're into story right now. Very much so.

And like smaller story. Yeah. And you want to see something that's well done. Watch running point. That would show a star of Justin. It's great. I love it. I mean, too. I watch the entire thing on the, I will explain that from Europe. Yeah. It was such a walk down memory lane. I moved in New York in 2000. And that was literally the heyday of magazines. And Condonast was the bell of the ball.

It, I mean, it's such candy.

this. He did a movie. It was three or four movies in one. And the production values just tripped off the screen. And it wasn't. It reminded me of that movie. Oh, I think it was called New York Stories. And it was just three different. There was a 1989. And it was three different sort of New York stories. Such great talent, such great production values. But the stories just weren't that compelling.

That's how I felt about this. I could have, I just enjoyed watching it because the fashion is so

beautiful. And it just takes you back to a really kind of, I think, an iconic time. You never

realize you're in a golden age until it's gone. Yeah. Absolutely. And this was sort of reminiscent of that golden age. And they did pay some homage to the disruption of digital talking about social media, but the talent, the talent and the visuals and the cinematography and the fashion. And everyone's so fucking good looking. That's worth the whatever it was. 12 pounds. But it's a pretty thin story. Oh, I don't know. I think Justin was fantastic. I think that,

I think it was, you know, they're so good. Like watching these people do their stuff is just completely pleasuring on the planet's talent. Beautifully made is what I like. A dream. It's like looking at a beautifully made thing. I thought it was largely a lot deeper. And I thought, I think

because the interplay between Justin and Meryl Streep and that one scene, it's which you might have

missed was really amazing. I didn't see that. I didn't enjoy Meryl Streep having an HR person following or I didn't show anything. I feel like, you know what, I feel like I should get someone like that for you going. So like, I want to kill myself. And I can't say that. You can't say that. You can't say that. She was wonderful. That actor was she's from a Bridgerton. She was a Bridger. She's amazing. She's everybody. She's a Bridgerton. Yes, she's the wife. She's the second last season.

Meryl Streep. The beautiful girl. She's beautiful. But she was fantastic. She's like, you can't say that. I literally was thinking of getting you one of those. It's like a helper. Anyway, that person. And that's true. I do. You can't say that. You can't say that. Okay, let's get into it. Before we get to news, I want to chat about a piece in Wired Title, the sad wives of AI. Author details. How the AI boom is created a wave of women, especially in

tech heavy circles, because men working in or obsessing over AI are emotionally and mentally consumed. By at one therapist mentioned in the piece, says her client base is almost entirely women, whose husbands are professionally adjacent to AI over 70% of AI skilled workers are men. I am just

me, me, laugh. I'm not really a sad wife of AI, but you always interviewing Joe Aniston this week

at the 92nd Street Y. She's written a book called "I'm Not a Robot" where she lived with AI for a full year. And I was thinking, I discussed how much you use it compared to me, which was interesting. I don't know what you think about sad what's AI, but it's interesting. This article really shook

me and I think it calls on a much bigger issue, more with the young man. But I think what's going on

here is that it's, this isn't about men falling in love with machines. It's about men choosing control over connection. And I think it's a dangerous trend, especially among young men who are forming their approach to relationships their entire life. And that is the following. Real relationships require friction. And AI removes friction. And I, amongst my friends, and I've talked about this openly, and I've said this, I modulate my consumption of porn

because I want that energy and that, having sex with someone takes real work. And you know what it does? It turns you into a better man. It makes you think about what turns that person on. It makes you think about connection. It makes you think about how you become more attractive. And when men start finding, you know, opting for control and frictionless relationships. It's not just porn though. It's just like spending time with it, right? Like really

this is a substitute. Yes. Born is a substitute for intimate sexual connection. And AI has becoming slowly, but surely a replacement for I sit down, I'm doing a lot of research here in right now. I sit down with my son when I put him to bed every night, and he talks to me about his day. I won't let him be on screens in his room because I'm worried at some point he's going to

just start talking to his AI about his school day and asking him for advice. And here's the bottom line.

What is usually the right thing is usually the hard thing. And relationship is harder and nothing is more rewarding than relationships. And when you come across when you're young, you can start believing that real relationships feel unnecessarily hard. And therefore less appealing or more bluntly, when the alternative is a partner relationship to never disagrees, relationships in reality

Start looking like a bad deal.

Terkel for my series. And she was like, he used to be a sidelight. There was always an odd person

who used these things like that. And she was now it's nearly everybody. Like it's very mainstream. And I think, you know, people say it's men and women, but it's largely men. I think it's true. I am very seduced by AI around business. But I've decided in what I tell young men is you got to earn your sex. Don't try really try to modulate your porn. You got to earn

your relationships, your intimacy and your sex. And when you do, that's what makes a really rewarding

because memo, it's really hard. When you need advice, go to friends, go to your parents. If you're looking to brainstorm and you're looking for additional data, what it's bad for men of my age, it is a fucking disaster for kids under the age 18. Yeah. And they're consumed by it. You know,

one point I made to Joanne in this interview was she used it a lot. She's like, why do you,

she was noting it was many more men than women. And I said, and many more men making it or creating it and everything else. And she goes, what do you think? And I said, I think men can't have children and this is a version of children. Like they're creating a being, like they're creating and shaping a being in a way that they want to with control, which is exactly what you said. And I think it's, it's a real, it's a version of that of total control over a being,

which I think is very attractive. We're becoming less mammalian. We see declining male

participation in relationships when men don't have a romantic relationship. Their friend that

work goes down. When women don't have a romantic relationship, their friend that work goes up. In a results in increased isolation, we are meant, especially men are substituting relationships with digital alternatives, gaming, porn, and now AI. And this is what happens. When you become increasingly digital, you become subject to the whims of shareholder value, which want to take you to the extremes. And also elevate in secondary content, nationalist content, misogynistic content,

content that demonizes it, immigrants, or demonizes trans kids, and you end up with a cohort of people who take their natural aggression, which can be very positive, if channeled the right way in terms of risk taking in terms of saving other people's lives. But when it's channeled through digital means, and you start blaming other people, it can lead to nationalism's strongmen. I think this was a really big issue. It is. I had a really interesting question for the house. I

was asking how he used it. Actually, I found the way he used it. I said, I want to know exactly how he used it. They're very honest with me, my kids. He used it, for example. He puts problems in it. And then he said, it's like an assistant tutor, right, an assistant tutor that they go through. He has very complex math problems, obviously, with his school because he's in such advanced calculus and everything else. He said, I walk through like it's a teaching assistant. And then

I put it away and do the problems myself. And then I have it, look and see where I went wrong, and then I do it again myself. So it's a really, he uses it in a way that I think is smart. Anyway, but he doesn't use it for, you know, he has an ice girlfriend and, you know, to get in the beefs and this and that. But it's, but they also have a relationship. And I think it's, I think that's

not a dumb way to use it. Anyway, it's a really sad story. You should read it. It's admired. So let's get

to the news at the time. Speaking of men, men, men, men, men. The photos out of China are really quite disturbing. It's only men at the table here. President Trump and Chinese, President G, have met for a little over two hours right now and attended a state banquet to start off their two-day summit in China. In G's opening toast at the banquet, G said, achieving the great rejuvenation of the Chinese nation and making America great. Again, can go hand in hand.

Thanks, neckeria, Trump. I just back though. The White House said both sides agreed that the straight of her moves must remain open. She won the Trump that Miss handling Taiwan would cause clashes and put the entire relationship in great jeopardy. Trump is joining China by 17 American business leaders, including Elon Musk, Tim Cook and Jensen Huang. It's a surprising lack of women on the strip and everywhere. We end also China experts. We asked Alice Han, director of Green

Math on Co-host to properties own China decode podcasts for her thoughts on the summit. Let's listen

to what she has to say. So U.S. President Donald Trump is heading to China. This is the first

visit by a sitting U.S. President since 2017 when Trump was lost president. I'm carrying a three-point school card going into the summit in terms of rating it. Number one, will there be any indication as to tariffs and trade. Number two, will both sides agree to freeze or maybe even loosen certain export restrictions on chips and rare us. And number three is a thorny idea political question. I think both sides will have two very different readouts on Iran, but certainly both leaders will

Be talking about it.

paying to help resolve it, although the suspect the Chinese will be reluctant and push back

on any kind of collaboration over Iran. I think this will be largely summatory without substance

and it does pave the way for more summits to come with potential for two or three other meetings and as she visit to the U.S. later this year. One concrete prediction I have for this summit is that China will increase Boeing purchases of aviation equipment. I think the fact that the CEO of Boeing is going there with Trump is an indication of that direction. Interesting. Obviously it's she does summetry is a really good word. It's interesting because a lot of the coverage out of it

is that China thinks we're declining empire. And of course, who we brought was interesting, you typically bring business people on these things. It's absolutely true and you brought all mostly tech people or tech adjacent people. I think most people feel that as she says nothing's going to come out of this and it'll be interesting to see what signals she sends versus Trump.

I think I think he's a more important person to pay attention to. Your thoughts?

It's not who we brought. It's the ratio. He brought 17 CEOs with him and three diplomats. So it feels as if America's just becoming an operating system for the wealth of the top 1% and they try to figure it out. Really yours on a plane like snakes on a plane? Yeah. What's the minimum amount of cheap calories and entertainment, bread and circuses? We can throw at the bottom 99 such that they don't revolt. There's no policy. There's no prep.

He sounds like an eighth grader with terrible who's had to take his failed English so many times. He's going to have to take it as English as a second language. It's like Jesus Christ can someone buy the guy elements of style before he gives a talk. The speech was in crazy. Chinese restaurants. I didn't even understand what he was talking about. They're laughing at us. You can feel it.

And I thought the most important statement because you can be clear. Well, he's sort of

he's improvisation with a mic. You can bet she calibrates every word. Yes.

And the words that she said that I think should send a chill down to everyone's spine as he said

that he hopes that America's current approach, some of the effect of America's current approach towards Taiwan, could result in a clash. And Trump hasn't really said a lot about Taiwan. He's not flying to Taiwan with Speaker Pelosi and publicly cementing our relationship with the ally there. He was warning. It was a warning. Yeah. Or not even a warning. It was more. I saw more as like a preview that we are going to start. We are seriously considering some sort of soft or not so soft

repatriation, acquisition, invasion, whatever word you want of Taiwan. And I think had Trump had more elegant diplomats with them. They would have immediately responded and put out a statement along the lines of, you know, we are both nations are committed to peace and just as I'm sure we've witnessed the incredible fighting force of Ukraine when armed with technology. They can repell a much larger aggressor, which in my opinion would be an elegant way of saying

stand the fuck down when it comes to Taiwan. Right. He doesn't sound like he was. And he would never,

he doesn't think he doesn't have the diplomats of the IQ to respond to what was really the only substantive statement made at this summit and sending Huang over. Jensen used to have 90 percent share of ships over there. It's gone to zero because China figured out that if I provide my local entrepreneurs with the incentives to catch up, they just might. And our trade has gone from 23 percent of their exports to come with us. Now it's 17 percent. They have bigger trade

with the with Asiana, the Asian, the Association of South East Asian nations. And also they do more trade now with Europe. Yes, they do. So we showed up, you know, it looked less like diplomacy than sort of two casino owners trying to refinance each other's debt. The she's the house right now. Trump came in as the guy asking for an extension on his marker as credit. We are mutually

each of us has a foot should we decide on the others. Carotid artery. They own 70 percent of

rare earth minerals and 90 percent of the processing. We own or control with Taiwan, 80 to 90 percent of sophisticated ships. Which is why Jensen was there to be able to sell. This is something trump barbed by the way. And then now he wants to sell the ships into China. Yeah, so can I make a comment about all the business people, as you said? I mean, it really was. There's so many important issues, like there should have been a discussion about global AI standards in warnings just the way

we're getting with this group, cooperating on scary shit. And this group is all in on whatever.

There's nobody who is everything they do.

flying billionaires on a plane to China to get shit, themes problematic from a visual point.

You're exactly right. This should have been an opportunity to develop the modern-day equivalent

of Interpol. We have cooperation even amongst Russia and China around nuclear weapons. We cooperate and we go kill people. If we think they're trying to mix up a biological bio weapon, we cooperate and we go find those people and we arrest them or kill them. Which we're doing the same thing with cooperating around AI? Publicly, publicly. I suspect there's behind the scenes stuff happening, but of course there is. But at the same time with this gang,

just like with the advisory council on AI, it has nothing to do with safety in AI or anything else. It has to do with, let's do some business here. And as long as it's good for us and my rich friends, I'll do it. But he looked so, he looked tired, he looked old, he looked at old, he looked at us, he's all those. And then he was tweeting, we're truth in his little heart out, like with his apparently the piece in the Wall Street Journal. I don't think he's on that piece.

Of course. True, 200 truths in a four-hour period. Whatever, it's this lady who helps him, this young lady who has a startling resemblance to Ivanka, who stays up with him late at night and does this. And even the White House people don't know what to make of the situation. Though a journal was implying some stuff, like they were trying not to, but she facilitates him posting this crazy stream of lunacy.

I'm old, I just hope I have someone facilitated me. Anyway, you know, I got a plan out. His name is Mani. Okay, I know. Mani is going to the soft hands. Mani with the soft hands. I'm looking for me. Anyone named Mani with soft hands called me and I'm going to get you ready for Scott,

which should be in a battle. Yeah, well, you should know that.

Ten years, don't you think? I'm, I'm, I'm difficult, but I am very generous in terms of myself. I know, well, when do you think you'll be going down by going down? Well, I think I think the correct term is went. No, but really going down, like, card going down. You say going down, you mean needing help? I mean like in the need for a Mani, in the need for a Mani. I'd say 82 for you. She's just that early.

My dad, my dad, I'm assuming I'll follow the pattern. My dad, at about 93, my dad did help. 93. Okay, yeah. All right. Okay, Mani, get ready. They might not be born. Yeah. But just back from moment back to the summit. Okay. Where? Trump doesn't recognize the evolution of China since the last time he was there. China's no longer trying to copy Silicon Valley. They're trying to replace it. That's correct. All the

Bobo alone is going to spend $53 billion on AI. We're so focused on the hyper scaling in the

CapEx here. You know, US hyperscalers is spending $650 billion, but 53 billion from one company China usually typically has the ability to make their dollars go much further. And what they offer is the fastest zero to a billion dollar companies in history have one general business strategy. And we like to think it's the innovator. No, it's not. The second mouse gets the cheese, or specifically the shareholder value. And the most dramatic or the most

creative business strategy in history is to provide the following 80% of the leader for 50% of the price. My first strategy engagement of profit was basically this idea. And that was a lot of people couldn't afford the gap in the 90s. A lot of people think of it as being kind of a middle class retailer. The gap is expensive for a lot of people. Most people can't afford $22 pocket T's. And the idea was let's tap into the suit population of single mothers who are very conscious about

their children's confidence at school. And offer 50% or I'm sorry, 80% of the gap for 50%

of the price. Well, Navy fastest $2 billion retail iron history Southwest is essentially

when it started 80% of the majors for 50% of the price. China's entire strategy is we'll give you 80% of a seam and sell tower for 40% of the price. Yep, they're very innovative too. I let's say, you know, this idea of what they're, they are a very dynamic autocracy. Let's just, they are a very like dynamic and nimble. That's incredible. Yeah, and they have tons of problems. There was just an interesting,

I mean, similar stories decline in marriages, decline in kids. They certainly plan that from demographic. I mean, they have their own issues. Do you tell them why men, demographic, a real estate, overlap, or say, morale, stuff like that? Yeah, which is probably more problematic in autocracy. But it's a problematic here too. All right, Scott, we'll see what happens. Nothing, it's nothing burger. We'll see if they do more, but I agree with you, Taiwan is where we need to

fake focus. That will be a disaster. That will be our greatest crisis of this year, I think.

Okay, Scott, let's go on a quick break and we come back. Sam Altman takes the stamp. Support for the show comes from quints. It's hard to get everything you want, especially when

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get started with the cloud today at cloud.ai/pivot. That's cloud.ai/pivot and check out cloud pro, which includes access to all of the features mentioned in today's episode, cloud.ai/pivot. We're back. It was Sam Altman's turn in the hot seat this week. At the Elon Musk Open AI trial, Sam denied Elon's claim that he tried to steal a charity and said Elon supported open AI becoming a for-profit company as long as Elon had total control. That sounds pretty accurate,

as far as my experience. Let's go through some of the other highlights from Sam's testimony. Sam described quote, "a hair-raising moment when Elon suggested control of open AI should pass to his children after his death." That is hair-raising. Sam said Elon's departure from open AI in 2018 was a morale boost for employees who did not like his hardcore management style. ai was there during that time. That's exactly what they described. I have to say I heard from a lot of

people. He was like a big giant fucking baby. He does that with all his comes. He comes in yells, kicks a can, and then leaves, and they can't wait until he leaves. When pressed on his open AI, equity stayed to Sam acknowledged he holds a passive stake in the company through why compensator. I also want to mention that Keras Fisher came up in the trial this week. I was surprised not more. Well, Microsoft CEO has such a surprise not more. No, because I was starting a lot with

all of his-- The most Keras Fisher thing, Keras Fisher has ever said. I was surprised that it was an mention more. I texted with them all during this time. The Microsoft such an Adele was testifying. Elon's lawyers were questioning Adele about the nature of Microsoft's relationship with open AI and pointed to comments he made during an interview with me after Sam's firing. He was all in for Sam during that period. Closing arguments are getting underway right now.

So again, I don't think there's any more last-minute surprises. Elon was not supposed to leave

The country, by the way, according to the judge, but he did anyway.

on-call, essentially, but he doesn't care. Any last-minute surprises? Anything? It seems like it's going the way we talked about thoughts with this jury. I don't have any additional color here.

Again, I think this is grievance caused by an illegal argument. So this is a traditional jury

trial in the jury decides this. So jury decision and then the judge will decide remedies. So, you know, if he loses, if Musk wins, they might say what we're leaving it as it is and going with the California thing and they can pay him money or whatever. We're not going to get rid of the CEO. That's one of the things he's asked for. I think he can't possibly, I think the

jury can't possibly say. I mean, ultimately, I don't think they proved anything. And it's a sort of

he said he said kind of thing and Elon's the most low sum of the pair, right, by far, by a country mile. So, I think Elon's made a spectacle of himself. If he wins, it would be something else. Like, I'll tell you that. But I can't imagine the jury thinks this guy got that got a short end of the stick or that he's stupid and didn't know what was happening to him. I think that's really, he's put a play this, I'm a genius. Well, if you're a genius, how did this happen? Kind of thing.

You're not a dupe. And so, I think they probably think it's lying. And there's enough evidence that he is, or just as you said, grievance to the other. In any case, I have a feeling it's going to be quick. But we'll say it would be a real shocker, if you want. And the latest inflation numbers are out, and the news is not good. Consumer prices rose 3.8 percent last month, the biggest increase in

three years energy costs, basically accounted for more than 40 percent of the monthly increase.

With gas prices up 28 percent, grocery prices rent, and air fairs also climbed sharply. President Trump, however, does not appear to be overly concerned. Let's listen to how he answered a reporter's question, as he left the White House for his China trip. We're negotiating with Iran with the president. What extent are American finance and inflation,

and motivating you to make it feel? Not even a little bit. The only thing that matters

without talking about Iran, they can't have a nuclear weapon. I don't think about American financial situation. I don't think about it, but I think about one thing. We cannot let Iran have a nuclear weapon. That's the only thing to put in. Wow. That was some quote. That was like an ad. Like they just

cut an ad for them. That was astonishing. I have to say, I mean, it's what I think he thinks.

And this nuclear weapon thing, we're less safe now than we were doing new bombadays when we had most of the enriched uranium and a deal. And the strait of her moves was open. So any thoughts about what he's doing here? Why? Or he's just just an old adult man who just says whatever is on his mind? I don't know. Yeah. So like, with this administration, so the quote and quote objectives of regime change, oh wait, no, no nuclear weapons. Oh wait, unconditional surrender.

I mean, there really isn't. It's so back and forth and, you know, erratic that it's difficult for him to outline or be taken seriously. Having said that, I do believe that loosely speaking, the way what he said there is how presidents should approach wars. Wars are more than gas

prices, wars involve killing people and putting our own men and women at risk. And I think, and he's

not the guy to do this, but I do think the president should be willing to have an adult conversation with the American people and to say that the reason we have decided to put our own men and women in harm's way and commit this type of treasure and talent and potentially kill many of their citizens is because we think it's worth it. And this is why we think it's worth it. And quite frankly, we don't go to war unless we, as your leaders have decided that the American public are going to

have to sacrifice. George Bush told us we could go to war and cut taxes and Americans believed him. So I think an adult conversation with the American public around, we have consulted with Congress, we've consulted with our allies and we believe whatever the objectives are, our worth some sacrifice. I think that is the right thing for a president to say. But this requires an adult conversation, more leadership, more gravitas and clear objectives.

And none of those things are, you know, evident with this president, but again, I think the president should be the person to say to the American public, I'm not going to take you to war unless I think it's worth it and also unless I am willing to ask you to sacrifice. That's not how he asked it. He's like, I don't give it a word. He doesn't have any objectives. It's worse than before. He's made it worse and it's not a war. He's kind of right.

It's something else, where it's just a big fucking mess, the same hiss as casinos and, you know, everything he touches turns to this in some way, just even the near-time story about the reflecting

Pool, what a mess he gave it to some group of people can't fix it.

It's being painted a color that's not going to let it reflect. It's going to be the non-reflecting pool.

Everything he does is shoddy and haphazard and unplanned and with a huge whiff stink of

corruption attached to it and then telling them I don't really care about you. He's really, I think disaster.

This is why his numbers are going down. There's nobody believes him about anything that he says. Except that he doesn't care about you. I agree. President should say things honestly, but I don't think this is honest. I think this is just he could give a fuck. It's what he's saying to you and doesn't have any plan except for disaster. Well, there's the perception and there's the reality and I think the perception after kind of

eight or ten very bad weeks for the president, I think it's actually had a good couple of weeks. I do think he looks presidential with she, although nothing got accomplished other than some saber rattling from she, the Virginia, I think Virginia's a big deal. This Supreme Court rejecting the attempt to redistrict. I think he's had actually done. I think the Supreme Court's going to give it to Virginia because it gave it to everybody else.

And I think it's going to turn up and give it to Virginia. It's going to the Supreme Court.

That decision is going. The Supreme Court has to do. Oh, you think the redistricts will be allowed? Yes, I think it'll be allowed and because they've allowed it everywhere. This is very hard not to allow it if they've allowed it everywhere else and they would be right. Texas. As we said last week, he can do whatever he wants cheating, but polling doesn't lie and polling is showing, but he can't outrun the polling no matter how many times he cheats. I think he has had a bad

couple of weeks actually and he looks older and more adult than ever. I just, I think this was a typical, he's just saying whatever is on his brain. He wasn't doing it to be, you know, tough with the environment. He didn't do it with care. I don't care what anybody's. Like, I don't think about anyone's financial situation. I don't think about anybody. That's ridiculous. And you know, we were safe for before and we're less safe now. Once or last time you think he had a

good two weeks care. When he won. Okay. When he won. I don't think it's this is, I think this has

been a, I don't part of his first term. Some of the stuff was okay. It's been 78 weeks of constant.

No, I do think, no, I think when he won, I think when he won and he had a real opportunity. You're in half ago. Yeah, I think it's been like a series of like the one forgets the immigration disasters, the shooting of US citizens, the all the stupid people he's hired, the drunken cash Patel, the lunacy of RFK. I don't think there's any, well, we shouldn't have dyes in our food. Yes, sounds good. Like, I don't know what to say. I think it's a very small little wins. And I think the

stock market's done well, but I don't think it's, I think it's detached from everyone else's experience. And, you know, billionaires have had a good time. That's for sure, tech billionaires. But this

rise of inflation to me is the only thing that matters at this moment for most people. What people

miss were very focused on unemployment. And we think that unemployment causes unrest. It's actually not unemployment. The causes, the greatest levels of unrest. It's what really upsets people and moves them to political action. And sometimes even some form of revolution, which I think already in, is not people aren't working. It's people who are working and yet still hungry. And that's what's going on here. The unemployment rate is four and a half percent.

That's not what Ales America, what Ales America is that people have two jobs and can't afford healthcare. So when, and when now we have inflation or prices outpacing wages, that just translates

to the following, the quality of your life goes down. And the problem is America, and I've

lay a lot of this Trump doesn't have the IQ or the integrity or the honesty to do this or the the confidence around him. But I would also argue that America isn't ready for an adult conversation because if you're going to be serious about inflation, it's very long-term, difficult things. It's, there's a relationship between, essentially the economy breaks in the three buckets, there's labor, that is the earners, there's shareholders, the owners, and then there's

consumers. And because of a lack of antitrust, because of tax policy, we have decided to massively transfer power and economic well-being from consumers and earners or laborers to shareholders. And everything we do, every tax policy, keeping minimum wage low, riding off all capbacks, subsidizing certain industries, everything is about how do we consistently take money from earners who minimum wage was 725, 15 years ago. It's still 725, the net, despite the fact that the

NASDAQ is quadrupled and push more and more money into shareholders. And also the most boring thing that anyone wants to talk about is that when you go from 12 chicken companies to three,

When you go, when you let pharmaceuticals consolidate, when you let health sy...

when you let healthcare verticalize, when you let one company control 90% of search, 50% of

you commerce, 78% of social media, they will extract greater and greater rents from consumers and earners and transfer its owners. It requires antitrust, it requires really interesting or more severe, quite frankly, entitlement policy where we reduce our entitlements. You're going to have to reduce the military budget, you're going to have to increase taxes, 40% AMT across corporations and millionaires. And then slowly but surely, create more competition, lower rents on consumers

in a transfer of capital back from the owners to the earners. But the American public doesn't have a political election cycle that creates a serious conversation around these. No, I get that. I get that. I'm talking about people feeling it, like at all levels. And you do

when you go out. I mean, I know it sounds dumb, but I do do, I do do a man and I just let the

grocery shopping. But I went to get a quarter milk and I was like, what? It was like six or seven dollars. And I was like, are you talking kidding me? And then it's not just looking at the gas pumps. Or there was something I was in a airport and there was a sandwich and there were like 14 dollars. I'm like, what? It was, it was, you know, I didn't get it. I was like, well, that's a lot of money for a sandwich, like kind of thing. And so I don't begrudge them having to raise prices. It's that

it was, it's just, I think people who are price resist like price insensitive are noticing it.

You can't help. Unless you're just holding up in your house, you can't help but notice things have gotten a lot more expensive. But there's their shock and there's a reduction in the quality of life.

And then there are threats to your own personal safety.

And those, when you see affordable carac subsidies go away, you have someone who's literally dependent upon diabetes medication for their life, see their insurance bill go from $178 a month to $1,700. And it's as if the government has said to them, we don't care that you're working hard. We've decided that you're going to die. And those are the, I think those are the kind of what I would call, you're going to have, I think we have that kind of policy that results in inflation

in a decline in prosperity. What is unacceptable is that someone is worried when someone starts rationing their prescription medication. That just, that just, that just, that should not happen in a mirror. Or cuts off, you know, there was a really upsetting story in the near-ties of woman writing about her kid who died of cancer, but like they've cut cancer pediatric cancer things. And so these, you can't get in these studies because they suddenly disappear, these advanced

studies and everything because, you know, he doesn't say we're not going to help pediatric pediatric

cancer anymore. What he says is we're cutting all over the place so in essence, that's what we're

doing. Anyway, the rise of inflation comes as Kevin Morse takes the reins as Fed Share, Morse was narrowly confirmed by the Senate this week in a 54 to 45 vote. It's usually an anonymous, which is where we are. He's certainly qualified. The question is most people don't think the rates are going to be cut. And so juggling this inflation with Trump's demands to lower interest rates, most people think he will not be lowering interest rates at this moment given

the inflation numbers are so high and there's no signs that they're going down. Just very quick thoughts on that. We like to talk about, we like to simplify things in the media that this guy's going to come in and cover rates, but people don't want to actually pay attention to the mechanics of the federal reserve. And that is the federal open market committee is the one that decides whether to cut rates or not. So while the Fed Chairman has the bully pulpit and sets the agenda,

he's one of 11 or 12 votes. And Powell is still there, as you said. Yeah, so no, interest rates, Kevin Morse, while, you know, a really disappointing testimony to Senate confirmation hearing, he's not stupid. And he doesn't want to go down at history. It's the guy that ignited an upwards spiral of inflation. Yeah. So there's not going to be a rate cut. And as a matter of fact, Calcy says there's a 72% likelihood, there's no rate cuts for the rest of the year.

Because you still, these Fed governors don't want to be known as the people that they created breadlines. And when you have, when you come off a print of 3.8%, there's no fucking way. If someone, if, if we're started making noises that we should cut rates, those guys would go on background to journalists saying, this guy's fucking insane and threatening a YMR Republic like inflationary

economy here. Yeah, I mean, I think it's, it's the deficit and everything else. Maybe they should

consult, was or on mom down, and he who balanced the New York budget. What did he cut? I'm curious. I've been following him. Some consultants, a bunch of things. He's doing a rather good job with services. He opened the streets for the soccer, the fight for matches. He in front of schools, he closed off street, so kids could play soccer, like learn to play soccer and brought in all these

Soccer players and stuff.

focus in on providing services to citizens. That's what you're talking about. The idea of that people

get something out of government and it's not to be kicked in the fucking teeth. And I think that's

really the difference between lots of cities and a lot of, both Republican and Democratic sent governors and mayors who are providing people better services in a smarter way. Anyway, that's to me is the well for everybody. Anyway, we're going to go on a quick break when we come back. We'll talk about the biggest donors for the midterms. Support for the show comes from Clavio. There's only so many hours in a day. Clavio's two

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So why not you? Try Odo for free at Odo.com. That's Odo.com. Scott, we're back. The biggest donor for the 2026 midterms may or may not surprise you. It's Andreessen Horowitz. The VC firm and its co-founders mark Andreessen and Ben Horowitz have already spent more than $115 million this election cycle outspending both George Soros and Elon Musk. Much, most of the money is spent on the right. It's Musk, GPS, and these two. Soros is the opposite,

but much smaller in comparison. A major chunk of that money is going towards pro-crypto and pro-AI super-packs would have surprised what's where their investments are. Trump and the GOP are also benefiting. Andreessen Horowitz and his founders have together donated roughly $12 million to Trump's super-pack, MAGA Inc. And a trust link to Mark Andreessen gave nearly $90,000 to the Republican National Committee in Mark. You know, not a surprise. I mean, not that this guy has moved

him firmly. It's mostly Mark, but Ben is right along with him as always because he's this little

follow, little follow puppy. It's just typical, just typical. I mean, this is not a surprise.

And then he tells nonsensical stories about how he went right, none of which are true. Your thoughts?

It's smart. It's wrong, but it's smart. It's the greatest ROI any firm can get right now. And thank you so you're figured it out. Yeah. This is pay for play. And by the way, Horowitz, you see give a lot of money to when he thought Kamala was going to give money to Kamala. He did. Mark used to be a big gore person as I recall a long time ago. He wasn't ever people like, oh, he used to be democratic. I was like, if you've spent any time with him, he was certainly wasn't.

He certainly was. He was Mark is one thing, which is self-interested in the most extreme way. You're ever going to meet someone. He's very interesting. That's called the corporation. I agree. But I'm saying it's really quite, it's really quite. He doesn't even pretend. He's really the smallest person ever. I've got to get it. I mean, it's about incentives. It's just, if the greatest ROI, if you're the CEO of a company or the head of a venture capital firm and the

greatest ROI on any spending is not hiring more people, it's not investing in plan property equipment. It's to give money to a president who will pass legislation or block legislation that

Takes the value of your portfolio companies up $10, $20, $30 billion, that $1...

is the best money you can invest. Absolutely. So, I agree. Again, it's the boring shit.

Term limits on the Supreme Court, no jerrymandering, get rid of citizens united. Until we do those

things, you're going to have strong men or women or fascism from the far left or the far right.

You're right. You're always going to have it. And we're outraged at Andrés and Horowitz,

Soros, okay, they'll be Democrats. I know, I bet Chence and Huang is about to write a $300 million check to somebody. Who knows? Who knows? You know, it's interesting because look, they have shifted, right? But my point is Mark was never, never like anybody. Like that's all I'm saying. He never does now. He never does. Never, he likes himself and his things and that's it. It's very, I agree with you. It's the right Corbyn thing to do. I've never

met someone who is so anti-people in my life. Like, just has such disdain for humanity in a way that's really remarkable actually. It just doesn't like anybody, like essentially. And he would do it to left or right depending on what suited him. Someone was asking me, well, there are left-wing people are going to give me, I'm like, I don't want, who knows what they're going to be next week. And I don't want any like individual rich person left or right to be able to take advantage of

this way. It seems unfair. Other people don't get an audience with the president and they have an unnecessary advantage based on money and that's kind of gross in some ways that it should

be gross. Elon Musk, after the SpaceX IPO, might be worth between $700 billion and a trillion dollars.

If he takes 1% of his wealth or $10 billion dollars with his command of technology, he can decide

who the next president is. He can. That's what I mean. Is that what you want? Taxes are

our Kevlar and our vaccine from power. We need to stop thinking about taxes as something that is inherently evil and slows down the economy. That's bad taxation. Taxation protects us from, I don't want to call them billionaires because I don't want to demonize them, taxes protect us from an unhealthy aggregation of power due to money. 100%. Yeah. We shouldn't have any individual. I don't care if it's sorrows. I don't care if it's unions. I don't care if it's

luring pal jobs. Although I think she's a wonderful woman. I'm not, this isn't a character assessment. You can't have an individual with this much power. And taxes are the only way our only protection are Kevlar against the aggregation of this type of power. And citizens united. I got to get rid of it. Speaking of which, all my friends have decided you become a lesbian because

Pieda Tair. Pieda Tair. They were like, what? They were like, huh? They weren't expecting that. No,

I was not. Oh, by the way, a lot of my friends are like, get sending me messages like, what the fuck shut up. Pieda Tair. Scott is a lesbian from San Francisco now, speaking of her choosing to go. I go issue by issue. I get it. I get it. I get them getting more money besides that you launch becoming a trillionaire anthropics and talks to raise new funding that would value it up to $950 billion. It's completed. The company's valuation would be 2.5 times what it was just three months ago

and higher than OpenAI's valuation of $852 billion. Of course, there's the overhang of that trial with OpenAI right now. It's a huge thing overinflated. I don't know. I don't know.

Look, we've never seen a company scale like that. So, and we've also never seen Pepsi overtake

Coke or or Avis overtake hurts this quickly. We've never seen this type of transition or pivot or reversal in fortunes. And also, I still think OpenAI's valuation by Pieda Tair is probably going to be a hit. So, get this in March of 2025. Anthropics valuation was 61 billion. So, it's up 15 fold. It's up 15 fold in the last year. A lot of parties in Silicon Valley. Well, okay. It was 9 billion in annual recurring revenue in December. Last month, it was 30

billion. They think this month, it's on track to reach 50 billion. For the first time, more businesses are using Anthropics than OpenAI. And 35% versus 32. Anthropics business adoption quadrupled over the past year while OpenAI's grew basically flat. And so, a board decision on this financing is expected later this month. And they think the IPO might happen as early as October. Yeah. It's the same. And Calcia saying it's the 70% chance. It goes public this year.

And then there's also a 60% chance that they have the best AI model at the end of the bottom of what that means. Look, I don't, this company is, it's just absolutely firing on all

Cylinders.

I think it's impossible to maintain a lead in AI with AI. And that is if you look at the

technical specifications, it's moving more towards parity than differentiation. And I think it's

going to be difficult for anyone company to maintain a technical lead here. And that that will drive down margins. And then when these open weight, AI's when she starts engaging in AI dumping which is what I would do if I were him. I think it's going to drive down their margins. And the good news is I think somewhat of vaccines or PCs or jet transportation, the winners will be us not these companies. Don't be one or two companies that will dominate, probably onthropic is one of

them at this point. Interestingly, probably Google is the other. Yeah, it'll be really interesting,

but when you look, we have become used to any innovation resulting in a small number of companies

capturing trillions of dollars and shareholder value. Again, my thesis is that AI might be more like jet transportation vaccines and PCs and that no one company is able to request or shareholder value. Yeah, I get your point. So it would be funny if Apple spent nothing and ends up benefiting them all. Which is all that. Yeah, it'll be 100%. That's sweet. Just last thing, Google is being at Google is in talks with SpaceX for a rocket launch deal to put orbital data centers in space,

the deal is based on currently unproven technology that Elon said is the next frontier for his rocket company. I kind of like this idea. It's totally unproven and Google has a history of

investing in wacky schemes. At one point they had, they were investing. This sounds like a Sergei

Berlin thing happening here, or they used to be full for some girl, but now they're getting along, I suppose. Anyway, this is something Google has done this. They had wind up and wind kites at one point. They were going to do a cheerlead in San Francisco. They had a ship, an energy ship parked off the city in San Francisco. This is nothing. This feels like smells like Sergei Berlin to me, and so he would try anything, and this would seem cool to him. So sure, why not?

Why not invest in it? What's the difference? If it works, it works. It doesn't. I think these guys they want to put ships down and options on anything. They don't have insight into so they can get investor updates, have a chance to work with them. It's smart. Everything is so interconnected. Those graphs that look like a god's eye, remember those in the 70s, where everyone is invested in everybody else and everybody is suing everybody else. Yeah, just like Anthropics is doing

a deal with Musk. Not everyone was like, "How dare you? I'm like, are you kidding? Of course they do. They don't like beef and then they mug. It's like the mob." Anyway, one more quick break will be back for predictions. Support for the show comes from Odo. Running a business is hard enough. So why make it harder with it doesn't different apps that don't talk to each other? Introducing Odo. It's the only business software you'll ever need. It's an all-in-one fully integrated platform

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assist, but AI agents that navigate complex matters. That's why Harvey created agents that can do the

work from end to end. They build a plan, pull from secure data sources, run sub-agents and parallel, and draft the work product ready for your review. So you delegate the work and on the judgment. Trusted by more than 60% of the Am law 100 in leading Fortune 500 legal teams, Harvey is the AI operating system designed specifically for legal work. Harvey, AI, tailored for law. Learn more at Harvey.ai. Okay Scott, let's hear a prediction. I will note that people should

Something we have talked about and have been in our predictions and New York ...

which you should all read found that over 80 polymarket users have placed bets with suspicious characteristics and one money across nearly 30 topics. The insider trading stuff with this stuff is just getting started on all these predictions markets. So we thought this might happen, but just please go read that because it's a really interesting piece. Go ahead Scott, predictions.

So my prediction should make her Sarah Bros. when public today had a $40 billion evaluation. And that's

up from its $23 billion valuation in February and $8 billion in 2025. And I believe it's over,

I believe it's playing into this massive historic run-up and ships. And after an initial pop, I think it'll fall. Since last year, its revenue has increased less than 2x, while its valuation has increased 6fold. And the $40 billion valuation implies a 76 times revenue multiple. In other words, it shouldn't be a public company. It's drafting off of what has been an unprecedented increase in value in the sector. So it is an example in video trades of 26 times revenues and still controls

85% of the AI chip market and is growing faster. Sarah Bros. tried to go public in 2024, but with true, they're filing at the last minute over intense scrutiny of its heavy reliance on a single

customer, the Emirati AI firm G42. I don't remember if you remember these guys. It's basically

like actual giant big ships, physical giant big ships. It strikes me as quite frankly, a shitty company. And this is this is simply massively benefiting from an unprecedented updraft in ship stocks.

And anyways, my prediction is that the initial pop, this company, which I think is actually fairly

mediocre, chip company trading at 78 times revenue, is not going to sustain and I like the highly specific stock thing. And then that same customer, which makes up the line share of the revenue, Group 42, accounted for 24% of revenue last year and stayed on to UAE University, accounted for 62% of revenue. Given what's going on in the UAE, given their dependence on my customer, given the

76 times revenue, this feels like one of those bad Chinese firms that could just go down 95%

tomorrow. It's a good warning for people. Anyway, there's a lot of frost happening for sure, and so it's hard to separate the good from the bad. Anyway, we want to hear from you, send us your questions about business tech or whatever's on your mind. Go to nmymag.com/pivot, submit a question for the show or call 85551pivot. Elsewhere in the Karen Scott universe, this week on Prof. Markets Scott's book with Oswath Demodarin, Professor of Finance, and NYU Stern School

visits one of Scott's favorites to break and he's terrific. I think so too to break down what's standing out to him. In the market so far this year, he shared his thoughts on how the conflict with Iran could ripple through the economy. Let's listen to a clip. The catastrophic risk here is not that our gas prices stay higher than they were before the conflict is whether they'll go even further. Because there is that chance of that happening. I think in many ways what the market seems to

be building in is the economy can survive with gas prices being 450 or 5 depending on what part of the country you're in and that it might not be as robust as you thought it was three months ago, but it's okay. But I think the worry still remains that this crisis, well, it's in a slow boil at any point in time could become a fast boil at which point you could say what what happens to earnings now. Yeah, that's interesting for 455. I've seen 67 now. It's really across lots of cities.

Anyway, that's the show. Thanks for listening to Pivot. Be sure to like and subscribe to our YouTube channel. We'll be back next week. Today's show is produced for our name and to the market. Stella Griffin and Todd Weisman are an interchange to share this episode. Thanks so much to Dr. Browse, Mr. Bear, and to have some fun on the shot for us. I'll show you how to make sure to follow Pivot on your favorite podcast platform. Thank you for listening to Pivot from the

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