00:00:00
You know what I thought about doing,
00:00:01
Scott?
00:00:01
>> What's that?
00:00:02
>> I thought about going down to the
00:00:03
courtroom when I was in San Francisco
00:00:05
cuz I had some free time and just
00:00:06
sitting and waving at him. Hey girls,
00:00:09
what up?
00:00:15
Let's get to the news. Um, the FCC, this
00:00:18
story, Scott, has ordered Disney to file
00:00:21
early renewal applications for its ABC
00:00:23
owned broadcast licenses. These are
00:00:26
these are affiliates in different city
00:00:27
years ahead of the normal schedule. The
00:00:30
commission is citing an ongoing
00:00:31
investigation into Disney's DEI
00:00:33
practices as justification. More
00:00:36
notably, it comes days after Trump and
00:00:38
Melania renewed a push to take Jimmy
00:00:40
Kimmel off the air after he made a joke
00:00:42
about Melania being an expectant widow.
00:00:45
Uh Disney is pushing back hard. The new
00:00:47
CEO is not having it and he's being
00:00:50
supported by a range of companies and
00:00:52
everything else. This is a step too car
00:00:54
far for our good friend and [ __ ] uh
00:00:57
Brent Brenda Carr. Um I'm calling him
00:01:00
Brenda. Um who is a [ __ ] He's a [ __ ]
00:01:03
and he's just such a nakedly political
00:01:05
although I wouldn't want to say him
00:01:07
naked political person who is just
00:01:09
carrying water for the Trumps. Melania
00:01:11
doing this was you know fascinating.
00:01:15
But, you know, Kimmel's just emboldened
00:01:16
and has put out a series of things and
00:01:19
and no one's no one is putting up with
00:01:22
this [ __ ] and they're going to lose. The
00:01:23
FCC is going to lose in court. But what
00:01:25
a harassment of an American company, a
00:01:28
classic American company. What do you
00:01:29
think about this?
00:01:31
>> Well, I actually saw Kimmel's response.
00:01:33
I mean, the reality is late night TV is
00:01:35
dying without the help of
00:01:37
>> Exactly. Yeah.
00:01:38
>> And in a weird way, it kind of helps. I
00:01:40
think Jimmy Kimmel, all the late night
00:01:42
people are extraordinarily talented.
00:01:43
that is to be quick on your feet,
00:01:45
hardworking, come up with new material
00:01:47
every night. They're extraordinarily
00:01:48
talented people, all of them across the
00:01:50
whole spectrum,
00:01:50
>> right?
00:01:51
>> And I'm actually trying to get Jimmy
00:01:53
Kimmel to come be the interview for our
00:01:55
uh Propy Markets Live in Sat uh in uh
00:01:58
Los Angeles. Anyways, Jimmy, call me.
00:02:00
So, I think it'd be very interesting to
00:02:02
have him talk about it. I think I don't
00:02:03
think Jimmy should have I watched it
00:02:05
where he addressed it and said, "Of
00:02:06
course." I think he should just double
00:02:08
down and say, "I stand by everything I
00:02:11
said.
00:02:12
>> It's humor. He has he hasn't ensuing
00:02:15
skits are very funny.
00:02:17
>> He did he did he's done a series.
00:02:19
>> Okay, this is this is what's going on
00:02:21
here. Fascism. So, who said they're
00:02:26
poisoning the blood of our country? Oh,
00:02:28
that was Trump.
00:02:29
>> Oh my god.
00:02:30
>> Who described political opponents as
00:02:32
vermin?
00:02:33
>> Yeah, they Oh, come on.
00:02:35
>> Who told the squad to go back to where
00:02:37
they come from? Who who who said that
00:02:40
Adam Schiff was guilty of a crime that
00:02:44
is punishable by death? That's treason.
00:02:47
The dehumanization, the
00:02:48
delegitimization, the exclusion, the
00:02:51
criminalization,
00:02:52
the existential threat framing. No
00:02:55
individual in public office has done
00:02:58
more of this
00:02:59
>> in the world
00:03:00
>> than Donald Trump.
00:03:02
>> Can I interject? One of the things
00:03:03
that's incredible is that
00:03:06
>> these are the free speech warriors,
00:03:08
right? And I'm like, where are where's
00:03:10
all those folk? Where's the folk at the
00:03:12
free press? Where's the folk? Where's
00:03:13
Elon?
00:03:14
>> Comedyy's illegal. Remember that one.
00:03:15
Comedy should be legal again.
00:03:17
>> Where's Elon? I know he's busy in court
00:03:19
losing his mind, but
00:03:21
>> which isn't a very far stop. Um, but at
00:03:24
the same time, former FBI director James
00:03:27
Comey has been indicted yet again for
00:03:29
making a threat against President Trump
00:03:30
by photographing seashells on the beach
00:03:33
that said uh I think it's 80 86 46 47
00:03:37
whatever whichever president he is. Um,
00:03:40
it it was funny and he was just doing
00:03:42
it. And by the way, a lot of the right
00:03:45
had done it to Biden like 86, whatever
00:03:48
number he is, 46. Um,
00:03:50
>> I was a waiter. 86 men were out of
00:03:53
pumpkin soup. We would write we had a we
00:03:55
had a chalkboard that said claims it's a
00:03:57
mob kill.
00:03:58
>> He claims it's a mob killed name because
00:04:00
he lives in the 70s of New York, you
00:04:03
know, but this is like his his approval
00:04:06
ratings are underwater.
00:04:08
It doesn't work. It because everyone's
00:04:10
heard him talk like and then the culture
00:04:13
wars turning up the volume seems like
00:04:17
hey dude that was last year or two years
00:04:20
ago that worked and doesn't work anymore
00:04:22
cuz I think everyone's I mean Disney's
00:04:24
pushing back. This is just like an
00:04:26
astonishing array of like pe what I'm
00:04:30
more interested in is like Brenda and
00:04:31
the and and uh this guy who's running
00:04:34
the DOJ. I thought Pam Bondi was bad,
00:04:36
but Todd Blanch is competing for
00:04:38
suckiest sucker. A suocrat, if you will.
00:04:42
The enablers of this guy that go go for
00:04:45
it are really quite astonishing to me.
00:04:48
Even
00:04:48
>> Yeah. But isn't aren't we aren't we just
00:04:50
disappointed? I think we always blame
00:04:52
our political leaders and he is the
00:04:54
culprit here. But I'm shocked there
00:04:56
isn't more push back. I I just people
00:05:00
seem to be
00:05:01
>> I think we've become complacent. I think
00:05:04
we've taken a lot of our our norms and
00:05:06
our rights for granted and that people I
00:05:10
think people are complacent and I I'd
00:05:13
like to think that the midterms will
00:05:14
show maybe that they're not.
00:05:15
>> Yeah. Well, maybe the voting rights
00:05:17
>> people maybe errantly assume that things
00:05:19
will revert back to normal at some point
00:05:22
and
00:05:22
>> Oh, I don't think they're complacent.
00:05:23
There's been a lot of push back to the
00:05:25
Kimmel stuff and the Comey stuff. I just
00:05:27
think people are like, you know, enough
00:05:28
of this [ __ ] [ __ ] Why is he
00:05:29
taking up so much of our brain oxygen on
00:05:31
this nonsense? I think people are
00:05:34
>> It's working, Cara.
00:05:34
>> What? Hm.
00:05:35
>> I It's working. I think it's I think
00:05:37
it's sent a chill across all of all of
00:05:39
cable TV.
00:05:41
>> I don't think so. You look how Disney
00:05:43
has reacted. They're like, "No [ __ ]
00:05:44
way." Before it was a little bit
00:05:47
>> I know firsthand from a bunch of
00:05:48
producers that the legal cost in the
00:05:51
review of stuff has gone way up. And
00:05:53
anything that feels on the edge, they
00:05:54
say, "Can we say something else or can
00:05:56
we lighten the language?" I think this
00:05:58
intimidation and this chill is working.
00:06:00
>> Well, I don't know. I don't I don't
00:06:02
think I don't think it is. I don't think
00:06:03
it's going to work and I don't think it
00:06:05
it works. And you know these people like
00:06:08
Let me just tell you, Brenda, when you
00:06:10
leave office, which you will at some
00:06:12
point, I'm going to follow you
00:06:13
everywhere. Everywhere you try to get a
00:06:15
job, I'm going to bring up all your
00:06:17
terrible things. I'm going to make sure
00:06:18
people know what you did. I'm going to
00:06:21
make sure people understand who Brenda
00:06:23
is because there's nothing we can do
00:06:25
about Trump at this point. I was just
00:06:26
thinking that he is in our head so much
00:06:29
we have to like remove him from our head
00:06:31
but it doesn't mean ignoring him. It
00:06:34
means removing we get so sucked into
00:06:37
their ridiculous comical toxically
00:06:41
comical drama. It it's got to be time to
00:06:43
say, "You're in our [ __ ] rearview
00:06:45
mirror, old man. Old cankle, you know,
00:06:49
man of cognitive questionability like,
00:06:53
and move him along, you know, just move
00:06:56
him along."
00:06:56
>> You brought up you brought up an
00:06:58
interesting thing, and that is the media
00:07:00
just doesn't know how to cover Trump.
00:07:02
Showing up dressed to the nines to have
00:07:04
him say he's delegitimate at a in a
00:07:07
windowless ballroom. Okay. Clearly, the
00:07:08
media does not know how to deal with
00:07:10
this guy. The idea I like
00:07:11
>> 10 years now, 10 years.
00:07:13
>> The idea I like is newspapers and uh
00:07:17
cable news companies all do the
00:07:19
following. Instead of having four or
00:07:21
five stories in a narrative about what
00:07:23
he's done and interviewing people about
00:07:25
how ridiculous it is. I think I think
00:07:27
they should have a twominute segment and
00:07:29
one page on the back page that are the
00:07:31
following. This is what Trump said
00:07:33
today. And just really quickly outline
00:07:36
it. Today he accused
00:07:37
>> he he brought up he said this about this
00:07:39
person. He said these these people are
00:07:41
animals. He said the shell thing and
00:07:43
just do it really quickly. This is what
00:07:45
Trump said today.
00:07:47
>> Yeah.
00:07:47
>> And sequester it and you can get it all
00:07:49
in one place because what happens now is
00:07:51
22 of the 27 minutes or I'm sorry 18 of
00:07:54
the 24 minutes, whatever the the the
00:07:57
actual content load is on TV is
00:08:00
different stories that involve him. I
00:08:02
>> agree.
00:08:02
>> And he is like he is like a Star Wars
00:08:05
character or a a villain, a Marvel
00:08:07
comics character. He gains power from
00:08:10
conflict.
00:08:11
>> Yeah. Exactly.
00:08:12
>> And from um controversy.
00:08:14
>> Yeah.
00:08:14
>> And what I'm saying is what I I think
00:08:16
they should do is I think they should do
00:08:18
the news
00:08:19
>> and they should just take everything
00:08:20
Trump and go he said this this this and
00:08:24
this today. We'll see you tomorrow
00:08:25
night.
00:08:26
>> Yeah. They make segments about it. Yeah,
00:08:28
they do. We got to like we as as
00:08:30
Jennifer Welch calls him ring fence it.
00:08:32
>> Ring fence him and be like he I was I
00:08:35
was you know what I did when I was
00:08:36
coming back from San Francisco? I walked
00:08:38
into a store and I bought an actual book
00:08:41
and um I was like that's enough. I was
00:08:45
like I'm gonna read a book not read not
00:08:47
like participate in the social media
00:08:49
around him. I mean it's sometimes it's
00:08:50
fun and I really have to say Jimmy
00:08:52
Kimmel's actually doing a great job
00:08:54
about he said he's finally brought
00:08:56
Melania and Trump together. He's using
00:08:58
it as content which he should do. Um,
00:09:01
but in a lot of ways just laughing at
00:09:03
this poor obese old man is I think the
00:09:08
way to go here. Mock him relentlessly on
00:09:11
all manner of things. And then his It's
00:09:13
not ignoring it because I think that's a
00:09:15
mistake. There's a lot of people telling
00:09:16
me I'm just not reading it at all, which
00:09:19
could come off as I'm not engaged. But
00:09:22
>> you know how on page three of the Sun
00:09:23
they used to have a naked hot woman?
00:09:25
Yeah.
00:09:26
>> Page three of every newspaper. This is
00:09:27
the [ __ ] Trump said. This is what Trump
00:09:29
said today. Just list it all 10 minutes
00:09:31
every night. National news cover the
00:09:33
news. Try not talk about what's going on
00:09:35
in Iran. Da da da. And then
00:09:36
>> Yeah.
00:09:38
>> This is what Trump said today.
00:09:39
>> Yeah.
00:09:39
>> And that just go through it all because
00:09:42
he he is totally dominating the news
00:09:45
cycle. He gets energy from conflict.
00:09:48
People see it as authentic and and
00:09:50
leadership. And he like
00:09:53
>> I just can't
00:09:54
>> just There's so many idiot characters
00:09:55
like that smug piece and that smug
00:09:58
deflection of Pete Hegath is smirky.
00:10:01
Like literally that's his like hearings.
00:10:04
It's he's so smirky and stupid. It's
00:10:06
really kind of like I don't like these
00:10:08
characters anymore.
00:10:09
>> Representative Molton was good.
00:10:11
Representative there was some there was
00:10:12
some really good I'm
00:10:14
>> I'm actually I feel bad. I'm actually
00:10:16
consistently impressed with some of our
00:10:18
elected representatives. Oh, I meant to
00:10:20
tell you before I forgot. I went and did
00:10:22
something you would love. Have you heard
00:10:24
of um
00:10:25
>> Neco or Niko? Neo. Neco.
00:10:27
>> No. What is it?
00:10:28
>> It's this advanced preventive healthc
00:10:30
care concept from the founders of
00:10:32
Spotify. No.
00:10:33
>> So, I just want to disclose. I got no
00:10:34
compensation for this. This is not It's
00:10:37
going to sound like an ad.
00:10:38
>> Okay.
00:10:38
>> You go into this place and they
00:10:40
basically take your blood, put all sorts
00:10:43
of cuffs on you for blood pressure and
00:10:45
measurement. They have all these lasers
00:10:46
and scans and then they take you go into
00:10:48
this tube and they take 2400 pictures of
00:10:51
you. Okay, but here's the thing. It's
00:10:53
amazing. And then they do it all
00:10:54
immediately. Give you put you in a room
00:10:56
with a doctor and they go through
00:10:57
everything visually in a very user
00:10:59
friendly. It was like something out of
00:11:00
the movie Gatka.
00:11:02
>> And I thought, okay, how much I I said,
00:11:04
I need to pay because I don't want to be
00:11:05
seen as I I don't like the whole
00:11:07
influencer thing. I'm like, I need to
00:11:08
pay. I have the money.
00:11:10
>> Do you know how much it was?
00:11:11
>> How much?
00:11:12
>> It was £300.
00:11:14
>> Oh. Oh, they Oh, in
00:11:15
>> I thought it was going to be 3,000
00:11:17
pounds.
00:11:17
>> Oh, wow. Interesting.
00:11:19
>> And you get a baseline of all your good
00:11:21
cholesterols, your bad cholesterols,
00:11:23
your circulatory health, uh, everything
00:11:25
about it did change my behavior. You
00:11:27
know, I have one of these ridiculously
00:11:30
expensive concier things. This thing and
00:11:32
there was a line out the door to get
00:11:34
into.
00:11:34
>> That's a great This is what they do at
00:11:35
Korea for everybody. Everybody gets
00:11:38
these tests once a year. And it's the
00:11:40
guys from Spotify and they're I I'm I'm
00:11:43
such a huge They're trying to
00:11:45
democratize
00:11:46
>> advanced preventive medicine. It's
00:11:48
called NECA.
00:11:49
>> I like that idea.
00:11:50
>> And you get and you get a baseline that
00:11:53
I mean
00:11:54
>> they did this thing with 2400 pictures
00:11:55
of, you know, basically you're naked to
00:11:57
look at I'm very fair and I'm prone to
00:11:59
skin cancers. And they said, "All right,
00:12:01
you have 2200 marks. All of them are
00:12:03
fine except for these 12 300 lb."
00:12:09
Anyways, I was blown away. We should
00:12:12
have filmed at this thing. And and also,
00:12:14
you and I have discovered by watching
00:12:16
your show and going to Neco.
00:12:18
>> I try to run once or twice a week and I
00:12:21
was always I rode crew and one time I
00:12:23
was in very good cardiovascular health.
00:12:25
I push myself running. That's just the
00:12:27
way I run. And I time myself and I try
00:12:30
and lower my times and I row and I try
00:12:32
and get my
00:12:33
>> 100%. I have I just figured that out.
00:12:36
They're like, "No, what's it called?
00:12:37
zone two or level two where you
00:12:38
supposedly can have a conversation but
00:12:39
you can't sing
00:12:40
>> zone one two and three.
00:12:41
>> So I last night I ran slowly jogged for
00:12:45
40 minutes and that's supposed to be the
00:12:47
way to do it. But anyways and
00:12:49
unfortunately unfortunately they say the
00:12:51
same [ __ ] thing to me. I'm like how
00:12:52
do I change my diet and and Dr. Pramla
00:12:56
and I asked her if I could use her name.
00:12:58
She said the same thing. They're like
00:12:59
well they're all so polite. They're like
00:13:01
you may want to consider drinking a
00:13:03
little bit less.
00:13:04
>> Yes. I think you may want to do that. I
00:13:06
think you may want to
00:13:07
>> you may want to consider drinking a
00:13:08
littleing you. This is so great. By the
00:13:11
way, this week's episodes about about
00:13:13
loneliness and uh connection. You'll
00:13:15
like it. All right. Now, we got to get
00:13:16
to a rundown of latest big tech earnings
00:13:18
are all over the place, which are uh
00:13:21
some are calling AOI's moment of
00:13:22
reckoning. First up, Alphabet. The
00:13:24
company reported a 22% surge in first
00:13:27
quarter revenue with sales reaching
00:13:28
around 110 billion. What a number. Net
00:13:32
income was up 81% compared to the same
00:13:34
period a year ago. Shares for Alphabet
00:13:36
are up 15% year-to date at the time of
00:13:38
this taping. Microsoft, the company,
00:13:40
beat expectations with revenues
00:13:42
increasing 18% year-over-year for the
00:13:44
quarter. Capital spending for the
00:13:46
company will reach 190 billion, though
00:13:48
this year, a 61% increase over 2025.
00:13:53
Amazon beat expectations, expanding
00:13:55
revenue in its cloud computing segment
00:13:57
by 28% year-over-year. The company
00:13:59
announced it expects to spend 200
00:14:01
billion on AI in 2026. And finally, Meta
00:14:05
reported lower than expected capex uh
00:14:08
missed on user growth, which is
00:14:09
interesting. This is the first time,
00:14:11
which attributed in part to internet
00:14:13
disruptions in Iran. They're blaming
00:14:15
Iran. I don't think so. Daily active
00:14:17
people was down over 5% over the fourth
00:14:19
quarter. In better news, revenue climbed
00:14:21
33% from a year earlier, making it the
00:14:23
fastest growing quarter since 2021. So
00:14:26
what jumps out at you about these four
00:14:28
uh uh companies besides their enormous
00:14:31
spending on AI obviously
00:14:34
um but what's what jumps out
00:14:36
>> AI I used to say this the attention
00:14:38
economy it's now the it's now the
00:14:41
ketamine economy where it's dissociated
00:14:43
from everything else but AI and I said
00:14:46
yesterday on prop markets that I thought
00:14:48
these guys were going to blow away their
00:14:49
expectations because what do they
00:14:51
monetize they monetize spending around
00:14:54
AI and And up until today or until AI
00:14:57
came on they the driver was they
00:14:59
monetized attention with everything
00:15:01
that's going on in the world. Are you
00:15:02
less or more glued to your phone? I I
00:15:04
can't stop looking at my [ __ ] phone
00:15:06
like okay who did we bomb today or what?
00:15:09
So let's just go through the earnings
00:15:10
which were nothing short of staggering.
00:15:15
Alphabet's revenues were up 22% to 110
00:15:17
billion. They beat consensus. Their
00:15:20
consensus was $5 was 263. They came in
00:15:23
at 511. And although some of that was an
00:15:25
unnatural equity gain, Google Cloud hit
00:15:27
20 billion, up 63% with their backlog
00:15:31
doubling. Search revenue 460 billion.
00:15:34
Jesus Christ, their backlog's a half a
00:15:36
trillion dollars.
00:15:37
>> Search revenue, which was supposedly
00:15:38
going away because of Open AI was up
00:15:41
19%.
00:15:42
>> Well,
00:15:43
>> Gemini paid monthly active users is up
00:15:45
40% quarter on quarter.
00:15:47
>> Gemini is doing well, I would say. But
00:15:50
go ahead. fullear capex guidance went
00:15:54
up. The investors don't like that
00:15:55
because as strong as their topline is,
00:15:56
everyone's saying we need to spend more
00:15:58
money. Their stock was up 8% in after
00:16:00
hours. Let's talk about Microsoft. Azure
00:16:03
grew faster than anyone expected. Uh but
00:16:06
they had to boost their capex guidance,
00:16:07
which investors don't like. Revenue up
00:16:09
18% to $83 billion. They also beat
00:16:12
consensus wildly. Azure grew 40%. The AI
00:16:16
business crossed 37 billion annual run
00:16:19
rate. That's up 123% year-on-year. Their
00:16:21
commercial backlog is up to 2/3 of a
00:16:24
trillion, 627. Their QN capex was 32
00:16:28
billion, but it's been raised. Their
00:16:30
fullear capex, they've raised 190
00:16:32
billion, well above the 155 they'd
00:16:34
expected. Open AAI committed an
00:16:36
additional quarter of a trillion dollars
00:16:38
in Azure spend the day before the print,
00:16:40
but the stock was down 2%. Meta
00:16:45
Jesus Jesus Christ, Cara. Meta revenue
00:16:49
was up 33%
00:16:53
to $56 billion.
00:16:54
>> Efficiencies of AI. This is
00:16:56
>> earnings of 10 of $1044.
00:17:00
Um although a bunch of it was a tax
00:17:02
benefit. Ad impressions were up 19% and
00:17:05
their uh average price per ad was up
00:17:08
12%. Q2 revenue guided to 60 billion
00:17:11
which implies 25% growth. Fullear capex
00:17:14
again this is what investors don't like.
00:17:16
They raised to 135 billion from 120 and
00:17:21
then um also higher component prices and
00:17:24
the stock fell 9% after hours. Last one,
00:17:27
Amazon
00:17:29
>> fastest growth in 15 quarters, but free
00:17:32
cash flow collapsed because of their
00:17:34
capex. Again, good. What the analysts
00:17:37
love, they're blowing away their top
00:17:38
line. What the analysts hate is they're
00:17:40
all saying we need to spend more money.
00:17:42
>> Revenue was up 17%.
00:17:44
EPS blew away but unfort that was
00:17:47
because of a recognition of a gain in
00:17:49
anthropic stock that from their
00:17:50
investment there AWS hit 38 billion up
00:17:54
28% advertising grew 24% Q1 capbacks
00:17:57
again what the analysts don't like went
00:17:59
from 44 billion um uh I'm sorry capbacks
00:18:03
44 billion full year at 200 billion free
00:18:06
cash flow fell see above they're
00:18:07
increasing their capex openai re
00:18:10
recently committed to consume two
00:18:12
gigawatts of tranium capacity uh through
00:18:15
AWS. So all of a sudden they're getting
00:18:18
into the chip game and stock rose the
00:18:20
stock rose 3% after it is literally I
00:18:23
I'm on so I sit in a lot of what does
00:18:27
this say to you?
00:18:30
Oh my gosh. A beating the world.
00:18:33
>> Yeah. Yeah. Go ahead.
00:18:34
>> It is living up to its expectations, but
00:18:36
the capex required to live up to those
00:18:40
expectation to deliver against the
00:18:41
demand is sucking is basically like like
00:18:45
taking all the juice out of the
00:18:47
earnings. The capex requirement to live
00:18:49
up to the demand, the infrastructure
00:18:51
buildout.
00:18:52
>> So when does that stop? It's sort of
00:18:54
like having a hot spouse that requires a
00:18:56
lot of money for you to stay.
00:18:59
>> Yeah. Trust me, I know that feeling. Uh,
00:19:00
what does it require?
00:19:01
>> What does it what does it require for
00:19:03
that to not
00:19:04
>> must work hard? That's what I would say
00:19:06
to myself. Must work harder. Um,
00:19:08
>> well, they're doing that.
00:19:10
>> Must work harder. Uh, what does it
00:19:12
require?
00:19:12
>> When is the spending going to stop?
00:19:16
Well, when a big a big customer
00:19:18
announces they're reducing their spend
00:19:20
IAI or one of these companies announces,
00:19:24
OpenAI basically said that they kind of
00:19:26
[ __ ] the bed that their their numbers
00:19:28
didn't meet expectations, but the bigger
00:19:31
guys, these players are all just on
00:19:34
fire. I don't see
00:19:35
>> Can I note the open thing you just
00:19:37
referenced? There are internal concerns
00:19:38
about the company's spending plans and
00:19:40
its user revenue targets. According to
00:19:42
the Wall Street Journal, Open I missed
00:19:43
internal goal of reaching 1 billion
00:19:45
weekly active chat GPT users by the end
00:19:48
of 2025 has seen subscriber defections.
00:19:51
I think that's all due to you. The
00:19:52
company is also denying there's a rift
00:19:54
between Sam Alman and CFO Sarah Frier
00:19:57
over computing resources and they're of
00:19:59
course approaching their IPO although
00:20:01
they're we'll get to their trial next
00:20:03
trial with Elon um which is also another
00:20:06
distraction. Um, but they're they're
00:20:09
seeing a lot of bumps as they go into
00:20:11
it. So, is there like a reckoning moment
00:20:14
or what? How do you look at it? Just one
00:20:16
big customer.
00:20:17
>> By the way,
00:20:19
>> I started on my next book. That's the
00:20:20
name of it. The reckoning.
00:20:21
>> Oh, the reckoning. Oh, didn't I use the
00:20:24
word reckoning? I feel like I inspired
00:20:26
that. You liked when I said reckoning
00:20:28
last week.
00:20:29
>> If the book works, if it's a bestseller
00:20:31
was your idea.
00:20:31
>> Okay.
00:20:32
>> I think there's a reckoning coming in
00:20:33
America and I think there's a reckoning
00:20:35
coming in the markets. like what is the
00:20:37
but keep in mind that this AI is now
00:20:41
sucking so much oxygen out of the out of
00:20:43
the room. I sit in a lot of VC pitches.
00:20:46
If you're not an AI company, you can't
00:20:47
raise money right now. I mean, it is
00:20:49
very difficult. And by the way, I'm on
00:20:52
the board of an AI company that's
00:20:54
growing 4x a year. And they're like,
00:20:55
that's not enough. Unless you're growing
00:20:57
10x a year as an AI company that's
00:21:00
purely software. this company called
00:21:02
Rogo that is uh it's a great great
00:21:05
little company that is basically AI for
00:21:08
financial institutions. They just closed
00:21:09
around at $2 billion,
00:21:11
>> right? No, it's nuts
00:21:12
>> on on I think I think it's trading at
00:21:14
100 times revenues or something insane
00:21:16
and they're going to get they raise $100
00:21:17
million. You literally if you are not an
00:21:20
AI right now and growing, you know,
00:21:23
five, seven, 10x a year, you can't raise
00:21:25
money. And this is it is a in my opinion
00:21:29
it's a it's a kind of a all of the GDP
00:21:33
growth is coming from the capex and AI
00:21:35
all of the earnings growth 77% of the
00:21:37
earnings growth is coming from the MAG
00:21:38
10 right
00:21:39
>> we are becoming said this before yeah
00:21:42
the price of gas
00:21:43
>> America is a giant bet on AI and people
00:21:45
are people are wondering
00:21:47
>> and breakfast with a big tech CEO today
00:21:50
they kept people are really how is the
00:21:53
S&P hitting all-time highs with such
00:21:54
geopolitical uncertainty and oil at 110
00:21:57
bucks a barrel. And the reality is
00:21:59
America is now a giant bet on AI. And I
00:22:02
in a weird way, the the war in Iran kind
00:22:05
of helps these guys. First off, none of
00:22:07
these guys are affected by high oil
00:22:10
prices.
00:22:11
>> They were all at the White House last
00:22:13
week with this week with King Charles.
00:22:15
Every one of them was there. Again, by
00:22:17
the way,
00:22:18
>> all of them.
00:22:18
>> And then, by the way, the high oil
00:22:20
prices, that money, the additional cost
00:22:23
circulates within our economy. It hurts
00:22:25
consumers. But Chevron and Hallebertton
00:22:26
are making a [ __ ] ton of money, right?
00:22:28
>> So, it's oil mogul and tech moguls.
00:22:31
>> We're a net That's right. We're a net
00:22:33
exporter. And there's a very unhealthy
00:22:35
thing
00:22:36
the And I'm writing a thing called the
00:22:38
ketamine economy. And that is
00:22:40
>> ketamine supposedly is
00:22:43
dissociate and you can see your issues
00:22:45
and your addictions and your problems
00:22:46
and forgive yourself and have a better
00:22:48
handle on stuff. And people say it's a
00:22:50
world breakthrough. The the most
00:22:53
dangerous thing I think about the world
00:22:54
we live in in America right now is that
00:22:57
if you live in America and you're in the
00:22:59
0.1%
00:23:01
you are not invested in the well-being
00:23:03
of America. Why? Do you care about
00:23:05
infrastructure? You don't care about
00:23:07
TSA. You don't care about airports. You
00:23:08
don't care about you. You have you go to
00:23:10
Teter Bro and you're flying your own
00:23:12
plane. Do you care about the fact that
00:23:13
40% of third graders can't read? No. You
00:23:15
have your own private schools where they
00:23:16
spend $75,000 per student. Do you care
00:23:19
about policing and safety? No. You live
00:23:21
in a doorman building in a neighborhood
00:23:23
that is so overpoliced and has so many
00:23:25
cameras. You're just fine. Do you care
00:23:27
about the health of America? No. You
00:23:28
have concierge medical services that
00:23:31
give you everything you need. The wealth
00:23:33
the people who control our government or
00:23:35
have a disproportionate influence have
00:23:37
totally dissociated
00:23:40
disassociated from America's interests.
00:23:43
And even more frightening is that
00:23:46
America, you could argue, has
00:23:48
disassociated from the global interest.
00:23:50
Do we care about high oil prices?
00:23:53
>> Not really.
00:23:54
>> Wow.
00:23:54
>> Do we care about HIV infections in
00:23:56
Zambia? Not really.
00:23:59
>> We have two oceans protecting us from
00:24:01
chaos, disease.
00:24:03
>> I I'm not so sure about those things.
00:24:05
>> You could argue eventually it hits our
00:24:06
shores, but right now the markets
00:24:09
>> No, the market the rich people. I get
00:24:11
it. It's a Pierre don't care economy. Do
00:24:13
you know the book Pierre don't doesn't
00:24:14
care? I don't care. That it's a it's a
00:24:17
wonderful um children's thing where he
00:24:20
eventually gets eaten by a lion because
00:24:22
he doesn't care. He always says I don't
00:24:23
care.
00:24:24
>> But that's what they're like. It's a
00:24:25
peer I don't care group of people.
00:24:26
>> We have to figure out economic policies
00:24:29
that give the wealthiest people in our
00:24:30
nation a vested interest in the success
00:24:32
of America.
00:24:32
>> Yes. The people I'm telling you there's
00:24:34
an anger. You can feel it. It's palpable
00:24:37
that they do not hear.
00:24:39
>> Hope so. They have gone from they have
00:24:42
literally gone from heroes to villains.
00:24:45
And let me say I get it everywhere I go.
00:24:48
Everywhere from and it's not you know
00:24:50
like oh it's the you know it's the
00:24:52
people you know the working class. It's
00:24:54
everybody who's not like them and it is
00:24:59
angry. It is deeply and profoundly
00:25:02
angry. And even more so than it at Trump
00:25:06
they sort of have it's all figured in.
00:25:08
he's a terrible person or if they don't
00:25:09
like him. And even the there was just a
00:25:11
really interesting story about all the
00:25:12
people that voted for him are like we're
00:25:14
very disappointed and we now regret our
00:25:17
vote which is sort of like okay
00:25:19
>> or fine whatever. But there's a there is
00:25:22
a growing anger that I think they do not
00:25:24
understand of v of them being villains
00:25:26
and they're behaving like villains. um
00:25:28
we have to move on but we'll see where
00:25:30
this goes because if they're the only
00:25:32
ones that benefit and all the other
00:25:34
companies don't there isn't as you say a
00:25:37
reckoning it's a great word it actually
00:25:39
is from the middle English I'll just
00:25:41
read this to you from narration account
00:25:43
settling accounts and it's about the act
00:25:46
of calculating estimating or settling
00:25:48
accounts often carrying a connotation of
00:25:50
judgment retribution or facing
00:25:53
consequences
00:25:55
reckoning
00:25:56
>> yeah it's the act it's the act of
00:25:58
setting accounts and consequences.
00:26:00
>> That's right. Scott's going to have a to
00:26:02
give you a reckoning. Anyway, um let's
00:26:04
take a quick break. Speaking of
00:26:05
reckoning, um when we come back, Elon
00:26:08
takes the stand.
00:26:10
Support for this podcast and the
00:26:11
following message is brought to you by
00:26:13
Erade from Morgan Stanley. Now that
00:26:16
Erade is part of Morgan Stanley, there's
00:26:18
even more to love. Get the freedom to
00:26:19
invest on your own with $0 commissions
00:26:22
on stocks, options, ETFs, and mutual
00:26:24
funds, plus account types for every
00:26:26
investor. And when you're ready, speak
00:26:29
with a pro to help guide you on your
00:26:30
financial journey. Discover more ways to
00:26:33
make the most of your money and get up
00:26:34
to $1,000 when you open a brokerage
00:26:36
account with a qualifying deposit today.
00:26:39
Learn more atrade.com/offer.
00:26:42
Terms and fees apply. Investing involves
00:26:45
risks. Morgan Stanley Smith Barney LLC
00:26:48
member CPIC E Trade is a business of
00:26:50
Morgan Stanley.
00:26:55
Scott, we're back. Elon Mus took the
00:26:57
stand this week in a trial against
00:26:58
OpenAI. Let's go through some of the
00:27:00
things he said. He was a quote fool to
00:27:03
provide OpenAI's early funding. He
00:27:05
discussed his concerns about AI and not
00:27:07
wanting to have a Terminator outcome. He
00:27:09
accused OpenAI's lawyer of trying to
00:27:11
trick him. When asked uh why he brought
00:27:14
the suit, Elon said it's not okay to
00:27:15
steal a charity, warning if he loses it,
00:27:18
it would give license to looting every
00:27:20
charity in America. By the way, Elon is
00:27:23
not charitable at all in any way. FYI,
00:27:26
the judge pushed back, reminding juries
00:27:28
that Elon's claims and his opinions have
00:27:30
no legal value whatsoever. As I
00:27:32
predicted, a number of prospective
00:27:34
jurors had thoughts about Elon, with
00:27:35
some calling him a greedy, racist,
00:27:37
homophobic piece of garbage and a
00:27:39
world-class jerk in questionnaires. Um,
00:27:42
I think his his this has not been good
00:27:45
for Elon. One of the things that Ellie
00:27:47
said is they're not used to being um
00:27:50
when he gave us that uh video last week
00:27:54
was that these that they're not used to
00:27:56
being challenged publicly and he is
00:27:58
losing his brain on he looks terrible
00:28:01
and he needs to control himself which he
00:28:03
speaking of ketamine he cannot he has no
00:28:06
ability to do so. Um I'm going to be
00:28:08
fair to him. He was the first person who
00:28:10
did talk about this Terminator outcome
00:28:13
15 years ago to me or something some
00:28:15
maybe 10. Um and he was the first person
00:28:18
to be very worried about it. He shifted
00:28:20
becoming less worried over the various
00:28:23
interviews. At first it was Terminator,
00:28:25
then you were a house cat and then we
00:28:27
were like ants that are just going to
00:28:28
get covered by a highway which isn't
00:28:31
mean or anything. Um, but one of the
00:28:33
things I would say is he started off
00:28:36
that way and then he immediately lost
00:28:38
his mind because he he tipped out of
00:28:41
Open AI because he thought they couldn't
00:28:43
make it. And these emails talk about
00:28:45
that and he signed away his rights. He
00:28:48
did give them 38 million, not 100 as
00:28:50
he's claimed in other depositions. So he
00:28:53
keeps changing the number. Um, which
00:28:56
isn't good when you're under oath. Um,
00:28:58
but one of the things that uh is very
00:29:01
clear here is that he shifted to being a
00:29:04
greedy hypocrite and started his own
00:29:06
company that includes non-consensual
00:29:09
uh uh sexual images and child
00:29:11
pornography. So, it's not like he's here
00:29:14
to save us and he's trying to put
00:29:16
himself off as someone who's worried
00:29:18
about uh AI and is fully participating
00:29:23
in the damage it does. Your thoughts? So
00:29:27
what I what I have heard how this went
00:29:29
down and very like broadbrush actions
00:29:32
that kind of give a sense of the what
00:29:34
went down here and tell me if you've
00:29:35
heard different
00:29:37
>> is that Sam actually tried to raise $500
00:29:40
million when it was a nonprofit for the
00:29:42
nonprofit and was unable to do that.
00:29:45
Elon showed up and said this needs to be
00:29:48
a for-profit company and I need to
00:29:51
control it and own 80% of it. after he
00:29:53
had given the money. Yes, that's exactly
00:29:55
what happened.
00:29:55
>> And the people there said, "No, we're
00:29:57
not up for the for-profit Elon controls
00:30:01
part of the game brand." He does that on
00:30:04
every company. But go ahead.
00:30:06
>> So he said, "I'm out." And he signed
00:30:08
paperwork. This is the This is literally
00:30:11
the biggest example of sellers regret in
00:30:14
history.
00:30:15
>> You're right. And then the other fact
00:30:16
pattern here about his quote unquote
00:30:18
trying to pretend he's more noble than
00:30:20
he is and he's really worried about AI.
00:30:23
Who went on to develop an LLM that most
00:30:26
experts would say has the fewest guard
00:30:29
rails? Elon with XAI.
00:30:31
>> Yep.
00:30:32
>> So the fact pattern here, the narrative,
00:30:34
and this is my prediction. I don't think
00:30:37
Open AI, I said last week I thought they
00:30:39
were going to settle. I don't think Open
00:30:40
AI wants to settle. I think their
00:30:42
attitude is
00:30:43
>> I think I think Elon's either going to
00:30:45
drop the case or lose.
00:30:47
>> Well, it's a jury trial and then the
00:30:49
judge decides on the referee whatever
00:30:52
the remedies are.
00:30:54
>> It's a it's
00:30:56
found
00:30:57
>> right.
00:30:57
>> But if they're found if open AI is found
00:30:59
not guilty or that there's then it's
00:31:02
over.
00:31:02
>> Oh, he could I bet he could appeal. He
00:31:04
can always appeal. He's got so much
00:31:06
money.
00:31:08
I mean, Trump's going to appeal the
00:31:09
Eugene Carol thing to the Supreme Court
00:31:11
now that he's lost in the appeals court,
00:31:15
>> the 83 million.
00:31:16
>> Shocked he wants to keep bringing that
00:31:17
up.
00:31:17
>> Well, he doesn't want to pay 83 million.
00:31:19
He doesn't want to pay that. He'll have
00:31:20
to pay that if he if the Supreme Court
00:31:23
doesn't bring the money down presumably.
00:31:27
>> He wants to get it to 10 million.
00:31:28
>> He's going to have to pay or something.
00:31:30
>> Launch another coin.
00:31:31
>> Yeah. Anyways,
00:31:32
>> back to the Open AI case. Everything
00:31:34
I've seen fits this narrative that Elon
00:31:40
once this thing became commercially
00:31:42
viable, he wanted it to flip to
00:31:44
forprofit and he wanted to own it all
00:31:46
and that he legally gave up his
00:31:47
ownership and his governance rights.
00:31:49
Well, one of the things he was concerned
00:31:52
he absolutely and one of the interesting
00:31:54
things I love them being under oath
00:31:56
because now I finally hear the things I
00:31:58
thought were true like that Larry Page
00:32:00
and he got into an argument cuz he was
00:32:02
he was a doom a doom doomer for sure
00:32:05
back then and Larry Page called him a
00:32:08
speciesist for being concerned be overly
00:32:11
overly negative which I'm like yeah this
00:32:15
we like the the human species just sorry
00:32:18
You know, these people, these people, I
00:32:21
can't tell you. I'm so pleased for
00:32:23
people to see them as they are, right?
00:32:27
You know, when someone said greedy,
00:32:28
racist, homophobic, piece of garbage,
00:32:31
I'm like, you see what I'm saying? Like,
00:32:34
jerks. Um, don't care about people. This
00:32:38
whole thing is fantastic because they're
00:32:40
under oath and they have to show
00:32:42
themselves and they also have to show
00:32:44
how they're trying to present
00:32:45
themselves. Like Elon is the savior of
00:32:47
the world when he has decimated. He's
00:32:50
responsible for the millions of these
00:32:52
deaths that are going to happen because
00:32:53
of USID. He's responsible for all manner
00:32:56
of stuff that he's been doing on
00:32:58
Twitter. And he wants to present himself
00:33:01
as it is like Thanos. Thanos has an idea
00:33:04
of himself as a hero when he's the
00:33:06
villain because he's he's helping the
00:33:08
human race and he talks about it.
00:33:10
>> To me, this defines Messiah Complex.
00:33:12
Full stop. He He's the guy to to
00:33:15
colonize to turn us into an
00:33:17
interplanetary species. Only him. He's
00:33:19
the one that should control AI. He's I
00:33:21
just And I It's literally I'm Jesus
00:33:25
Christ.
00:33:26
>> Yeah. Yeah.
00:33:28
>> Yep. I would agree. I don't know. I
00:33:30
don't think it's good for him and I
00:33:31
don't think him getting agit this lawyer
00:33:33
actually worked for him at one point and
00:33:35
then worked against him. So, he's
00:33:37
familiar with this firm and he's just
00:33:40
losing it on the stand, which is just
00:33:42
what he should not do. He should be as
00:33:44
calm as cucumber and he can't be. And
00:33:47
it'll be interesting the contrast with I
00:33:49
think Sam will be smooth as silk. I
00:33:51
think he's not online. On online, he's
00:33:54
kind of sad over on Twitter. Sad Sam and
00:33:57
Elon's crazy Elon. And by the way, an
00:33:59
increase in white supremacist post, too.
00:34:02
Um, but Sam has got to hold it together
00:34:05
during and so does Greg Brockman. Um,
00:34:08
and so does Satcha, which will help
00:34:10
anchor Open AI quite a bit, as you said.
00:34:14
So, we'll see. You know what I thought
00:34:16
about doing, Scott? I thought about
00:34:17
going down to the courtroom when I was
00:34:18
in San Francisco cuz I had some free
00:34:21
time and just sitting and waving at him
00:34:23
>> just to get him even more riled up.
00:34:25
>> Just troll him.
00:34:26
>> Hey, girl.
00:34:26
>> Does he show up? Does he go to court?
00:34:28
Oh, he's on the stand. I guess they're
00:34:30
all in court. They're all there. It's
00:34:32
that's they have to go, I guess, because
00:34:34
I thought about going and just waving at
00:34:35
all of them going, "Hey girls, what up?
00:34:38
What's can we all get along?" That kind
00:34:41
of stuff,
00:34:41
>> but and I didn't. I I hung out with
00:34:43
Lily.
00:34:45
>> Okay, let's go on a quick break. When we
00:34:47
come back, Taylor Swift fights back
00:34:48
against AI. Support for this show comes
00:34:51
from Harvey AI. The future of law is
00:34:54
Agentic. Not just tools that assist, but
00:34:57
AI agents that navigate complex matters.
00:35:00
Harvey was built on legal agents that
00:35:02
analyze, draft, and execute with
00:35:04
precision. But great lawyers don't just
00:35:06
complete tasks, they strategize. That's
00:35:08
why Harvey created agents that can do
00:35:10
the work from end to end. They build a
00:35:12
plan, pull from secure data sources, run
00:35:14
sub agents in parallel, and draft the
00:35:16
work product ready for your review. So
00:35:19
you can delegate the work and own the
00:35:20
judgment. Harvey agents support work
00:35:23
across fund formation, litigation,
00:35:25
regulatory compliance, M&A, and more.
00:35:27
adapting to the complexity of each
00:35:29
matter and the way your team actually
00:35:31
works. Trusted by more than 60% of the
00:35:34
AM law 100 and leading Fortune 500 legal
00:35:37
teams, Harvey is the AI operating system
00:35:40
designed specifically for legal work,
00:35:42
helping teams move faster with greater
00:35:44
precision and confidence. Harvey, AI
00:35:47
tailored for law. Learn more at
00:35:49
harvey.ai.
00:35:54
Support for this show comes from Virgin
00:35:56
Atlantic. Flying to your dream
00:35:58
destination can be a once in a-lifetime
00:36:00
feeling, and knowing your vacation is
00:36:02
hours away can really feel exciting.
00:36:04
It's a whole reason why Virgin Atlantic
00:36:06
wants to make that feeling even better.
00:36:08
Virgin Atlantic was born from a desire
00:36:10
to bring back the joy of flying, and
00:36:12
they've been that way ever since. Their
00:36:14
beautiful, stylish, new planes, mood lit
00:36:17
in soft purple and pink, make you feel
00:36:19
like a VIP before you've even been
00:36:20
settled into your seat. Their flight
00:36:22
attendants provide warm, welcoming,
00:36:23
attentive, one-to-one service like no
00:36:26
other. Customers in all cabins can
00:36:28
choose their main meal before they fly.
00:36:30
You can pre-order a range of menu
00:36:32
options in advance and look forward to
00:36:33
something delicious waiting aboard. If
00:36:35
you're seeking a moment of well-being
00:36:37
before takeoff, two luxurious popup
00:36:39
wellness experiences have also arrived
00:36:41
at their London Heathrow Clubhouse. And
00:36:43
enhancements to their award-winning
00:36:44
clubhouse can bring you elevated
00:36:46
comfort, modern style, and a sense of
00:36:48
calm before you fly. Go to
00:36:49
virginatlantic.com
00:36:51
to learn more.
00:36:54
Scott, we're back. Taylor Swift has
00:36:55
filed a new trademark application for
00:36:57
two voice clips in one image that are
00:37:00
likely uh an effort to protect her voice
00:37:02
and image from AI misuse. This is
00:37:04
something a lot of celebrities are
00:37:05
doing, but she's probably the biggest
00:37:06
one. The voice clips are sound
00:37:08
trademarks covering Swiss voice with
00:37:10
clips of her saying, "Hey, it's Taylor
00:37:11
Swift and hey, it's Taylor." Registering
00:37:14
a celebrity's spoken voice has not been
00:37:16
tested in court. Matthew McConnA has
00:37:18
also trademarked his use of his images
00:37:20
and voice in January. It's an
00:37:22
interesting strategy. Um,
00:37:25
and she she did an really interesting
00:37:27
interview with Joe Casarelli, who I love
00:37:29
at the New York Times, called the 30
00:37:31
Greatest Living American Songwriters.
00:37:33
Really wonderful story. It it does a
00:37:35
range of people and it's really
00:37:37
terrific. Let's listen to what she had
00:37:38
to say. If there's any way we can make
00:37:41
confessional songwriting a little bit
00:37:42
more of something that isn't like people
00:37:45
take that as sort of like you were being
00:37:47
messy or whatever, you you have to be
00:37:50
fair to everyone. Then are like are rap
00:37:52
beefs messy or are they confessional?
00:37:54
Like we've got to just like let's make
00:37:57
it a music conversation rather than just
00:37:59
like ganging up on the female artists.
00:38:01
And I think the more male artists that
00:38:04
are messy or emotionally complex or
00:38:07
confessional or upset,
00:38:10
um, the happier I am. And then thirdly,
00:38:13
this Universal deal is going to trigger
00:38:15
something in her contract that's going
00:38:16
to force, uh, Universal to pay out all
00:38:20
its artists, even if they gave them
00:38:22
advances. um if it sells, she put it in
00:38:25
to protect herself, but it also uh she
00:38:29
the the way she wrote it, everybody who
00:38:31
is at Universal will have to be paid
00:38:33
out. So, she's getting enormous payouts
00:38:35
for all the artists and this possible
00:38:37
deal for Universal, which I think will
00:38:39
endear her to many artists. Um what do
00:38:42
you think here about any of this? I know
00:38:43
you don't like her, but she's a
00:38:44
tremendous business person.
00:38:46
>> I never said
00:38:47
>> I know you don't like her music here. I
00:38:49
don't that's not fair to say I don't
00:38:51
like her.
00:38:51
>> Okay. not her music. Excuse me.
00:38:54
>> Yeah. Uh so look, the
00:38:58
I I'm a fan of bearing on the side of
00:39:01
protections around people's IP and
00:39:05
essentially
00:39:06
Google coming in and crawling every
00:39:08
media company. Um people using people's
00:39:11
likeness, their voice. I I I believe
00:39:15
Jensen Hong said it. Everyone should own
00:39:17
their digital twin. And that's not only
00:39:19
the physical rendering, but also your
00:39:22
voice, your likeness. People spend a lot
00:39:24
of time and energy trying to develop IP
00:39:27
that they own that they can decide to
00:39:29
give to their heirs or sell their
00:39:30
catalog or their likeness or their image
00:39:33
and they should own it. And so I'm a I'm
00:39:35
a fan of these cases and the fact that
00:39:37
she's doing it on behalf of other
00:39:38
artists is really wonderful. And she's
00:39:40
very high-profile and people have
00:39:42
enormous affection for her. So she has
00:39:44
she's immediately going to get public
00:39:46
support for whatever she does. So, I'm a
00:39:48
fan of this. I'm a fan of how she's
00:39:50
handling it. And we need
00:39:53
these companies. I think you said it or
00:39:55
your your partner Walt Mossberg said it.
00:39:58
These guys are pickpockets. And
00:40:01
>> rapacious information is what Walt said.
00:40:04
>> Yeah. So, and now they're stealing
00:40:07
likeness. I don't I and I think that I
00:40:10
think the I think the um solution here
00:40:13
again they'll come up with the illusion
00:40:15
of complexity in that is they can
00:40:17
calibrate how closely they get to the vo
00:40:19
to her voice without it triggering an IP
00:40:21
but I think it's pretty simple I think
00:40:23
someone should be representing authors
00:40:25
and artists and past celebrities and
00:40:28
they or their heirs or their state can
00:40:30
either license it into a giant pool or
00:40:32
not and then every time it is used and
00:40:35
you have an AI crawl it every time an AI
00:40:37
takes takes takes a a sentence from your
00:40:40
book or lets someone speak in your
00:40:42
voice, you are entitled to x percent.
00:40:46
Music artists have been doing this a
00:40:47
long time. When you listen to
00:40:50
>> Let me ask you, let me plum that. When I
00:40:53
Ann Lamont was on stage with me this
00:40:54
week, she talked about how she she got
00:40:58
the AI to write something in her voice
00:41:01
and she said it was actually better, but
00:41:03
it wasn't her. But they had crawled so
00:41:05
much of her stuff. So, are they making
00:41:08
her or a ver a faximile of her? And what
00:41:11
happened to your Google thing that you
00:41:12
did? Was it Google when they did the
00:41:14
Scott gallery teacher?
00:41:16
>> What happened? You never said what
00:41:18
actually happened. You took it down,
00:41:19
right?
00:41:21
>> Yeah. I started working on it a year
00:41:23
ago. Yeah.
00:41:24
>> I think so. I was getting a lot of
00:41:26
emails from people, young men and
00:41:28
mothers, asking for advice, and I
00:41:30
couldn't keep up with it.
00:41:31
>> So, I said, "Upload." and they a former
00:41:33
student of mine who's a Google product
00:41:35
manager came and said we have something
00:41:36
called portraits we're doing it with a
00:41:38
bunch of doctors we're doing it with a
00:41:40
bunch of historians where we we we
00:41:43
upload everything you've ever done and
00:41:45
someone can come to an avatar and ask
00:41:47
questions and it'll give something
00:41:50
pretty resembling a reasonable fact
00:41:52
similarly the answer you would give and
00:41:54
I said that sounds great and I started
00:41:55
working on it about a year and a half
00:41:56
ago took him about six or nine months
00:41:58
and I tested it and it actually did if
00:42:00
it said should I get an MBA or it asked
00:42:02
good questions and gave it a reasonable
00:42:03
answer.
00:42:04
>> And then you actually [ __ ] it up for
00:42:07
me. You did that interview
00:42:10
>> with those parents of the kid who had
00:42:13
committed suicide.
00:42:15
>> And I thought, okay, am I going to be
00:42:17
part of the problem here where I in
00:42:19
inadvertently sequester young men from
00:42:22
asking their parents for advice, finding
00:42:24
real people, finding mentors, finding
00:42:26
friends? And it came out. The day it
00:42:28
came out, I started testing it and I
00:42:30
just felt really uneasy with it and I
00:42:32
called
00:42:33
>> saying I [ __ ] it up. I showed you an
00:42:35
better way to live.
00:42:37
>> You illuminated me.
00:42:38
>> Okay.
00:42:38
>> You illuminated. Let's try to work on
00:42:40
our words with Cara. Okay. Okay. All
00:42:42
right. Go ahead.
00:42:43
>> Better words.
00:42:44
>> Better words.
00:42:45
>> Uh and then I called, to Google's
00:42:47
credit, I called them and I said, "I got
00:42:49
to be honest. I just feel really
00:42:50
uncomfortable with this. I want I can
00:42:52
see how it might be helpful, but I can
00:42:54
also see how some young man doesn't ask
00:42:57
a friend or his dad for advice and
00:42:59
instead says, "Well, Prop G said this
00:43:01
and it's just
00:43:03
>> Anyway, so they took it down and and by
00:43:05
the way, the major I think the m
00:43:07
>> it's it's gone. It's you can't find it."
00:43:10
>> Yeah, they took it down.
00:43:12
>> We'll see.
00:43:13
>> Except when I go or my understanding is
00:43:15
they took it down.
00:43:16
>> It's in some fault like a mummy. Okay,
00:43:18
go ahead. But you can say in the voice
00:43:21
of Cara Swisser,
00:43:22
>> yeah,
00:43:23
>> please write this thing. And my my view
00:43:26
is they should be able to do that, but
00:43:29
only if you have agreed to have your
00:43:32
stuff crawled. And the more people who
00:43:34
ask, say this in the voice of Caris
00:43:36
Swisser, you should get a royalty check.
00:43:38
Similar to the way artists do it, music
00:43:40
artists do it. When you listen to Kroq,
00:43:43
rock of the 80s in the 80s, and they
00:43:45
were constantly playing B-52 song Yeah.
00:43:47
songs. At the end of the year, they
00:43:49
would send a check to Warner Brothers
00:43:50
and the B-52s would get a check.
00:43:53
>> I don't This has been
00:43:55
>> because I I did that Simpsons thing and
00:43:57
I got an enormous check the other day
00:44:00
and I'm like they can do it and they
00:44:02
Hollywood sucks, right? Like it's
00:44:05
astonishing and it goes way back when I
00:44:07
was with um uh the Google twins where
00:44:11
they were stealing books and were Carol
00:44:13
what is the difference if we take their
00:44:15
books? I was like, "You shocking
00:44:16
shoplifter." And or they take
00:44:18
television, their mentality is to take
00:44:21
it from you, which is interesting. So,
00:44:23
I'm glad someone like Taylor Swift is
00:44:24
really pushing back. It'll be
00:44:26
interesting to see if it could apply to
00:44:28
all of us because I think it will
00:44:29
benefit because you you you are easily
00:44:34
this would work really well if someone
00:44:36
just didn't work with you to do it, but
00:44:38
just did it. Um, so anyway, in an
00:44:41
upcoming episode of my show, I make one
00:44:43
of these and it's really frightening and
00:44:45
and I I don't like
00:44:47
>> When you say one of these, what is
00:44:48
>> I made the keratar. I'm going to give it
00:44:50
to you for Christmas. I made a a digital
00:44:53
3D version in a box of me and you it
00:44:55
looks like me sitting in a chair like 3D
00:44:58
version and it speaks it talks like me.
00:45:01
It's it's um it's me and uh it's not you
00:45:05
know it's like a faximile that's not
00:45:07
quite um me but it is um and I'm sending
00:45:11
it to you for Christmas the whole box
00:45:12
it's great it's going to go
00:45:13
>> but again I like I I like the idea of
00:45:16
this as long as you sign up for it
00:45:18
because you might decide have at it or
00:45:21
after if you're like me and you think
00:45:23
once you're gone it doesn't I would like
00:45:24
my heirs to get a check because people
00:45:27
say in the voice of Scott Galloway write
00:45:29
about income inequality whatever it is
00:45:30
Right. So, and I think a lot of artists
00:45:35
and a lot of writers and a lot of
00:45:37
singers would would agree to this.
00:45:39
There's a model for it.
00:45:40
>> Yeah, absolutely. Well, we'll see. But
00:45:42
you're getting that for Christmas. The
00:45:43
keratar. It's great. We'll have it
00:45:45
forever. Um and it will add to things
00:45:47
right up until my f my dying breath.
00:45:50
Anyway, um one more quick break. We'll
00:45:52
be back for predictions.
00:45:57
>> Support for the show comes from Indeed.
00:45:58
When you're looking for talent, Indeed
00:46:00
sponsored jobs can just be the boost you
00:46:02
need. It matches you with quality
00:46:04
candidates fast, so you don't need to
00:46:05
spend months searching for that new
00:46:07
hire. According to their data, sponsored
00:46:09
jobs posted directly on Indeed are 95%
00:46:12
more likely to report a hire than
00:46:14
non-sponsored jobs. Join the 3.3 million
00:46:18
employers worldwide that use Indeed to
00:46:19
connect with quality talent that fits
00:46:21
their needs. Spend less time searching
00:46:23
and more time actually interviewing
00:46:24
candidates who check all your boxes.
00:46:26
Less stress, less time, more results.
00:46:28
When you need the right person to cut
00:46:30
through the chaos, this is a job for
00:46:32
Indeed sponsored jobs. And listeners of
00:46:34
the show will get a $75 sponsored job
00:46:37
credit to help get your job the premium
00:46:39
status it deserves at
00:46:40
indeed.com/mpodcast.
00:46:43
Just go to indeed.com/mpodcast
00:46:46
right now and support our show by saying
00:46:48
you heard about Indeed on this podcast.
00:46:50
That's indeed.com/mpodcast.
00:46:52
Terms and conditions apply. Need the
00:46:54
ride higher fast? Then this is a job for
00:46:56
Indeed sponsored jobs.
00:47:01
>> Support for this show comes from Navon.
00:47:04
Business trips are great. The baggage
00:47:06
that comes with them is not. The shuffle
00:47:08
of paper receipts, the dreaded post-trip
00:47:10
paperwork. Non deletes all the grunt
00:47:12
work so employees can actually focus on
00:47:14
the business part of business trips.
00:47:16
More than 12,500 companies including
00:47:18
Box, Anthropic, and Kraton Barrel refuse
00:47:21
to work the old way. They choose Non to
00:47:23
make the manual expense report extinct.
00:47:26
So if you want to save 15% on your T&
00:47:28
budget, yes, 15%, check out non.com.
00:47:36
Okay, Scott, let's hear a prediction.
00:47:38
I'm going to go first. I do think The
00:47:40
Devil Wars Prod is tracking to be like a
00:47:42
$200 million movie its first week. Um, I
00:47:45
think a lot of these movies, whether
00:47:47
it's uh Project Hail Mary, this movie,
00:47:50
um, it there's a lot of love for movies
00:47:53
that are just wellmade by Hollywood and
00:47:56
good and fresh that feel fresh. So, I
00:47:59
think these movies are killing it at the
00:48:01
box office cuz people and they're
00:48:03
actually watching it in theaters, too.
00:48:05
They're not just waiting till it goes to
00:48:06
digital. They like the community
00:48:07
experience of it. And so it's a really
00:48:10
interesting thing that that a lot of
00:48:11
these are hitting um that are that are
00:48:14
very human- centered. Um and I like
00:48:17
that. I like that.
00:48:18
>> Yeah, I'll see it. Um so your win is The
00:48:21
Devil Wears Prada.
00:48:23
>> No, the idea that these movies are going
00:48:25
to do like I just after Hail Mary, it's
00:48:28
that Prada has the same feeling of Hail
00:48:31
Mary. It it feels like real people made
00:48:34
it. It's like when you eat a meal that's
00:48:37
sort of fake, you and then you eat a
00:48:39
meal that's homemade.
00:48:40
>> It's It feels like real people made it
00:48:43
who thought about it, who care about
00:48:45
standards and quality. And
00:48:47
>> it didn't feel like AI made it. I don't
00:48:50
know what else to say.
00:48:51
>> The the rumors of creativity's death at
00:48:54
the hands of AI were greatly
00:48:55
exaggerated. So there was a moment about
00:48:59
24 months ago where everyone thought all
00:49:01
music is going to be generated by AI
00:49:02
that you'll just give it a good prompt
00:49:04
and it'll come up with new songs that
00:49:05
are better than Kanye's and that just h
00:49:07
didn't happen. the muscle between your
00:49:09
brain, the the creativity of a young
00:49:12
brain, the creativity that that still
00:49:15
has tremendous moes around it. And even
00:49:18
in design, like look at Sorro being shut
00:49:20
down. Like the the graphics you get
00:49:23
back, the design you get back, the
00:49:24
percentage of people in design working
00:49:26
at tech firms has actually gone up as a
00:49:28
percentage of their employment base.
00:49:30
Artists, you know, no AI, no AI is going
00:49:34
on tour right now. Yeah. But as far as I
00:49:36
know,
00:49:36
>> they're not going to tailor us with the
00:49:38
situation. They certainly are.
00:49:40
>> Where I think you're being a little bit
00:49:42
nostalgic because I think The Devil
00:49:43
Wears Prada and Hail Mary
00:49:45
>> are great movies and will do well at the
00:49:47
box office, but box office is still down
00:49:50
30% postco
00:49:52
>> content original content that breaks
00:49:53
through will find a way to monetize and
00:49:55
be successful. But this collective
00:49:58
nostalgia for the movie theater I pick
00:50:01
Ipic is going bankrupt where I where I
00:50:03
live.
00:50:03
>> I'm not talking about the movie theater.
00:50:04
talking about freshness in movies,
00:50:07
>> fresh creative,
00:50:08
>> fresh creative and and I'm saying it
00:50:10
does it actually these movies are
00:50:12
showing big pickup in movie theaters. I
00:50:15
don't overall downward trend,
00:50:17
>> right?
00:50:18
>> It's really interesting that people are
00:50:20
these movies are scoring well in
00:50:21
theaters. Like that's that's what I'm
00:50:24
saying.
00:50:24
>> Not all of them.
00:50:25
>> Well, it used to be it used to be that
00:50:27
all of that type of long form content
00:50:31
ran snake through a theater and we went
00:50:32
to the movies. I remember I mean I don't
00:50:34
know about you when I was a kid I used
00:50:37
to go to the movies two or three times a
00:50:38
week.
00:50:38
>> Yeah. Twice at least once a week.
00:50:40
>> Yeah. It was just what you did. It's
00:50:42
what you did on a date. Uh it's what I
00:50:43
did with my mom. This is what you did.
00:50:45
You went saw we Granted I lived in
00:50:47
Westwood and they had the best theaters
00:50:48
in the world. But um God I just tried to
00:50:52
think the last time I took my kids to a
00:50:53
movie. Anyways um I'm glad you liked it.
00:50:57
So my prediction is much more boring.
00:51:00
So I think so Intel is up uh fourfold
00:51:06
and I think it's up I'm sorry it's up
00:51:08
fivefold. It's up it's it's quintupled
00:51:10
over the last year and I think it's
00:51:12
about my prediction is it's going to uh
00:51:15
uh [ __ ] the bed because Amazon is now
00:51:18
>> bragging about it as you noted.
00:51:21
>> Yeah. And I I think it's I think it's a
00:51:23
great short right now. Amazon. Amazon
00:51:25
now sells both GPUs, what Nvidia does,
00:51:27
and CPUs, what Intel specializes in. And
00:51:31
Amazon's chip revenue is growing 150%
00:51:33
every 3 months. If it were a standalone
00:51:36
business, it would be generating 50
00:51:37
billion in annual recurring revenue.
00:51:39
That's more than AMD and about as much
00:51:41
as Intel. And OpenAI and Enthropic use
00:51:43
Amazon ship for their
00:51:44
>> So Amazon Interesting. That's
00:51:46
interesting.
00:51:47
>> Well, it's weird. I think I think it's I
00:51:48
think quite frankly I think uh in Nvidia
00:51:51
has its own has much stronger modes. The
00:51:54
vulnerable company here is the one
00:51:56
that's the latest meme stock and that's
00:51:58
Intel. Metaanthropic have signed deals
00:52:00
to use Google chips called TPUs. TPUs
00:52:03
are two times cheaper than Nvidia's
00:52:05
GPUs. And Intel looks just dramatically
00:52:08
overvalued and will and I think will be
00:52:10
the victim of this increased
00:52:12
competition. The stock again up
00:52:13
five-fold. Get this. Intel now has the
00:52:17
highest forward PE of any large cap,
00:52:21
trading at 118 times forward earnings.
00:52:24
>> Oh my god, it's such a loser company.
00:52:25
Get this.
00:52:26
>> Why?
00:52:27
>> AMD at 50, Amazon at 32, Nvidia at 26.
00:52:32
And at the same time, its business is
00:52:34
expected to grow slower than peers.
00:52:36
Anyways, the most overvalued stock.
00:52:39
>> What is the meme? Explain the meme for
00:52:40
the people.
00:52:41
>> Well, Intel was beaten down. Now it has
00:52:43
a great story. Now it has the backing of
00:52:45
a guy who's willing to use the full
00:52:47
faith and credit of the government. It's
00:52:49
the chip. Everyone thinks the the chips
00:52:52
are the bottleneck in the AI boom. It's
00:52:54
not actually. It's actually power and
00:52:56
the stock's up fivefold. And now again
00:53:00
see above it's trading at a forward
00:53:01
earnings of 118. It's growing slower
00:53:03
than everybody else.
00:53:05
>> And Amazon and Google are coming for
00:53:07
their launch.
00:53:08
>> Oh. So anyways, my prediction is
00:53:11
>> you're going to see
00:53:13
>> this thing is going to look like a giant
00:53:15
hill. It the the
00:53:17
>> That's a good one.
00:53:18
>> is over and Intel is going to be one of
00:53:20
the worst performing stocks in the tech
00:53:22
sector over the next 12 month. He's
00:53:23
going to come after you instead of Jazz.
00:53:25
That's really good.
00:53:26
>> There we go.
00:53:27
>> Yeah.
00:53:28
>> Well, Intel has the look of an expectant
00:53:30
widow.
00:53:34
>> Um anyway,
00:53:35
>> uh that's really funny. Amazon that
00:53:37
Amazon is doing it is interesting.
00:53:38
Although I have to say I've given them
00:53:39
the heinous of the week award by them
00:53:42
leaking that they're going to make uh
00:53:43
the apprentice again with Dawn Jr.
00:53:46
>> Oh god, did you see that?
00:53:47
>> I know they're such suckups. And Jeff
00:53:49
was at the King Charles thing. Let me
00:53:51
just say you don't have enough There's
00:53:53
not enough budget for a cocaine budget
00:53:55
for that show.
00:53:56
>> That [ __ ] about our win.
00:53:57
>> I know.
00:53:58
>> King Charles, how good was he?
00:54:00
>> We didn't do win, but go ahead. Go
00:54:01
quickly do a win. King Charles was
00:54:04
[ __ ] fantastic. I have to say a
00:54:06
charmer. No one can thread the needle
00:54:09
around a thoughtful, intelligent
00:54:13
stab in the heart
00:54:15
>> like the British.
00:54:16
>> Yeah.
00:54:16
>> And when the king delivers it,
00:54:18
>> you know, I just loved I I loved I loved
00:54:22
the king saying, "You have often stated
00:54:24
that without us we would speaking
00:54:25
German. I'd just like to remind you that
00:54:27
without us you'd be speaking French."
00:54:29
>> Yeah.
00:54:30
>> He is he is so good. He whoever wrote
00:54:35
his speech a he delivered it perfectly.
00:54:37
He actually studied drama in college.
00:54:39
>> Yeah.
00:54:39
>> I just think I was so happy because I do
00:54:42
think he he stated what we need to know
00:54:45
and that is the alliance between uh
00:54:48
Britain and the US I would like to think
00:54:49
is unshakable. Also the king has been
00:54:51
sick. It's a really nice moment for him.
00:54:53
He is always
00:54:54
>> he did a good job. He did his kingly
00:54:55
duties.
00:54:56
>> I like the
00:54:57
>> he did his kingly
00:54:58
>> I like the monarchy and I always got the
00:55:00
sense that he's a really decent man.
00:55:02
>> Yeah he is. And uh so I just loved
00:55:05
seeing kind of his time in the sun and
00:55:08
just how good he was.
00:55:09
>> He did good. And the thing is doesn't
00:55:11
insult him because he loves the
00:55:13
monarchy. So he insulted Trump and he's
00:55:16
the only one who got away with it. Like
00:55:17
the didn't get away with it.
00:55:19
>> It was so elegant.
00:55:20
>> It was Yeah. Trump understood. Honestly,
00:55:24
they just wanted to meet the king. All
00:55:25
these people anyway. And those tech
00:55:27
people sucking up to the [ __ ] king
00:55:29
was just like, "Oh my, you guys, you are
00:55:33
bigger than Britain and that's you could
00:55:35
get a meeting with him anytime, give
00:55:36
money to his climate change thing."
00:55:39
Anyway, I love that the Republicans even
00:55:41
cheered for climate change uh uh help
00:55:43
with climate change cuz that's his big
00:55:45
that's Prince King Charles. I keep
00:55:47
calling him Prince Charles because he
00:55:48
was Prince for so long. But anyway, we
00:55:50
want to hear from you. Send us your
00:55:51
questions about business tech or
00:55:53
whatever's on your mind. Go to
00:55:54
nymag.com/pivot
00:55:56
to submit a question for the show or
00:55:57
call 8551 pivot. Elsewhere in the Karen
00:56:01
Scott universe this week, this week on
00:56:03
ProfG Conversations, Scott spoke with
00:56:05
Ian Bremer about how the Iran war
00:56:08
fracturing alliances and rising global
00:56:10
tensions are reshaping the world order
00:56:12
with no clear winners. Let's listen to a
00:56:15
clip. Whether it's Epstein or whether
00:56:18
it's Iran or whether it's the economy or
00:56:20
whether it's extraordinary corruption,
00:56:23
Trump has gone against
00:56:26
all of the things that got him elected.
00:56:29
And and I I don't I I certainly think,
00:56:32
okay, there are some MAGA supporters
00:56:34
that act like it's a cult and they'll
00:56:36
support him literally no matter what he
00:56:39
does. But that's not even all MAGA
00:56:41
supporters. Not at all. This is not a
00:56:43
These people are not brainwashed
00:56:44
automatons. They're not idiots. They
00:56:47
they ultimately see when their leader is
00:56:50
screwing them and it matters to them.
00:56:52
And some of those people, they may not
00:56:54
vote for Dems, but they'll stay home.
00:56:57
>> Interesting. He's absolutely right.
00:56:58
That's what a Ted Hearnen said, too.
00:57:00
Anyway, that's the show. Thanks for
00:57:02
listening to Pivot and make sure uh to
00:57:04
like and subscribe to our YouTube
00:57:06
channel. We'll be back next week.
