Speaker 1
So, as I was saying, let's make sure the client knows we're available next week, but keep the language open.
Words and timings
So,asIwassaying,let'smakesuretheclientknowswe'reavailablenextweek,butkeepthelanguageopen.
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May 2, 2026 ยท 2026 #15. Read the transcript grouped by speaker, inspect word-level timecodes, and optionally turn subtitles on for direct video playback
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Speaker 3
Me too.
Words and timings
Metoo.
Speaker 1
Actually, let's rephrase that last part to sound a bit more collaborative. Thanks.
Words and timings
Actually,let'srephrasethatlastparttosoundabitmorecollaborative.Thanks.
Speaker 3
Hello, everybody. It's Saturday, May 2nd, 2026. As always, I'm talking to you from San Francisco on the edge of Silicon Valley. It's been quite a week for tech. All The Big Companies Amazon Google Microsoft And Meta Reported Their Q1 Numbers Had A Huge Reaction In The Market Google Was Up 10% Meta Down Almost 10% A Lot Of It Had To Do With What Financial People Call CapEx Capital Investment Which Is Blooming Blossoming Exploding Bloating Depending What Adjective You Want To Use And Those Are Defining In Many Ways The Direction Of The Big Tech Stocks Meta Is Down Because Wall Street Feared Meta Was Overspending Doing Too Much CapEx Whereas Google Got Away With It Because Their Numbers Are So Good So I Was Expecting And That Was The Week Keith Teare, the publisher of That Was The Week newsletter, a summary of what's been happening in tech, to lead with news of all the financial doings and undoings in Silicon Valley. But instead, I found his newsletter leading with a video of a rather attractive woman with the words, hand job, question mark. And I wonder, Keith, whether your That Was The Week Has Been Hijacked. Are you into porn now? What's going on? Handjob? I didn't know that we did handjobs these days in tech.
Words and timings
Hello,everybody.It'sSaturday,May2nd,2026.Asalways,I'mtalkingtoyoufromSanFranciscoontheedgeofSiliconValley.It'sbeenquiteaweekfortech.AllTheBigCompaniesAmazonGoogleMicrosoftAndMetaReportedTheirQ1NumbersHadAHugeReactionInTheMarketGoogleWasUp10%MetaDownAlmost10%ALotOfItHadToDoWithWhatFinancialPeopleCallCapExCapitalInvestmentWhichIsBloomingBlossomingExplodingBloatingDependingWhatAdjectiveYouWantToUseAndThoseAreDefiningInManyWaysTheDirectionOfTheBigTechStocksMetaIsDownBecauseWallStreetFearedMetaWasOverspendingDoingTooMuchCapExWhereasGoogleGotAwayWithItBecauseTheirNumbersAreSoGoodSoIWasExpectingAndThatWasTheWeekKeithTeare,thepublisherofThatWasTheWeeknewsletter,asummaryofwhat'sbeenhappeningintech,toleadwithnewsofallthefinancialdoingsandundoingsinSiliconValley.Butinstead,Ifoundhisnewsletterleadingwithavideoofaratherattractivewomanwiththewords,handjob,questionmark.AndIwonder,Keith,whetheryourThatWasTheWeekHasBeenHijacked.Areyouintopornnow?What'sgoingon?Handjob?Ididn'tknowthatwedidhandjobsthesedaysintech.
Speaker 2
I think I've got a career ahead of me as a headline writer, Andrew. If BuzzFeed needs somebody...
Words and timings
IthinkI'vegotacareeraheadofmeasaheadlinewriter,Andrew.IfBuzzFeedneedssomebody...
Speaker 3
I don't think BuzzFeed are in existence. I think they went out of business.
Words and timings
Idon'tthinkBuzzFeedareinexistence.Ithinktheywentoutofbusiness.
Speaker 2
Oh, we lost Andrew.
Words and timings
Oh,welostAndrew.
Speaker 3
Didn't BuzzFeed go out of business several years ago? They May Well Have Done Probably Because Of Headlines Like Handjob Question Mark With An Attractive Looking Woman But Anyway What's Why Are You Leading With Handjobs This Week Keith
Words and timings
Didn'tBuzzFeedgooutofbusinessseveralyearsago?TheyMayWellHaveDoneProbablyBecauseOfHeadlinesLikeHandjobQuestionMarkWithAnAttractiveLookingWomanButAnywayWhat'sWhyAreYouLeadingWithHandjobsThisWeekKeith
Speaker 2
It's interesting because you didn't play the video to the end where the subtitle comes up. You purposely left it in the most provocative.
Words and timings
It'sinterestingbecauseyoudidn'tplaythevideototheendwherethesubtitlecomesup.Youpurposelyleftitinthemostprovocative.
Speaker 3
Would I ever do anything like that?
Words and timings
WouldIeverdoanythinglikethat?
Speaker 2
But firstly, you're right. The final third of my tutorial this week is all about the earnings results. So you're not wrong. But I led with the change in the user interface to computing. It's really the redefinition of the word software. Which was very prominently coined this week In an interview that Andre Kapathi did with Sequoia Capital At their annual AI Fest And that interview is in That Was The Week newsletter for this week It is in there And he made the point that He really doesn't use his hands anymore To achieve his work tasks He's speaking to the computer and it's doing things And then he's getting things back And He Made The Point That You Know That Era Where You Load A Web Page Type Something In Possibly Click Send And That Would Include Emails And Texts And Everything Is Not Quite In The Review Mirror But The End Is Nigh And That Led Me To Just Conceptualize The You Know About Two Years Ago We Did A That Was The Week Called Eyes Hands Is And Mouth And It Was All About The Inclusion Of The Other Human Attributes Beyond Hands Two Years Later It'S Not Unreasonable To Talk About The End Of The Hand Driven Computer Era Yeah I Think Some People Can Be Listening To This Think
Words and timings
Butfirstly,you'reright.Thefinalthirdofmytutorialthisweekisallabouttheearningsresults.Soyou'renotwrong.ButIledwiththechangeintheuserinterfacetocomputing.It'sreallytheredefinitionofthewordsoftware.WhichwasveryprominentlycoinedthisweekInaninterviewthatAndreKapathididwithSequoiaCapitalAttheirannualAIFestAndthatinterviewisinThatWasTheWeeknewsletterforthisweekItisinthereAndhemadethepointthatHereallydoesn'tusehishandsanymoreToachievehisworktasksHe'sspeakingtothecomputerandit'sdoingthingsAndthenhe'sgettingthingsbackAndHeMadeThePointThatYouKnowThatEraWhereYouLoadAWebPageTypeSomethingInPossiblyClickSendAndThatWouldIncludeEmailsAndTextsAndEverythingIsNotQuiteInTheReviewMirrorButTheEndIsNighAndThatLedMeToJustConceptualizeTheYouKnowAboutTwoYearsAgoWeDidAThatWasTheWeekCalledEyesHandsIsAndMouthAndItWasAllAboutTheInclusionOfTheOtherHumanAttributesBeyondHandsTwoYearsLaterIt'SNotUnreasonableToTalkAboutTheEndOfTheHandDrivenComputerEraYeahIThinkSomePeopleCanBeListeningToThisThink
Speaker 3
Keith Maybe There'S A Freudian Element Here You'Re Talking About The clothing coming off I'm quoting you here That clothing is coming off Whether that's wishful thinking on your part is another matter But it's worth going back to all this capex stuff I mean we're talking about double amounts Well you don't like my theme then Well I just think that you're I mean, maybe, I don't know what, so to speak, maybe unburying the lead. I mean, the big story is of this CapEx investment. I mean, the overshoot reports that we're talking about double the amount of CapEx Apex Investments In Q1 Of 2026 And From Last Year And It's 2% Of All The Goods And Services Produced In The United States So We're Talking About Very Significant Numbers Our Post Of The Week Talks About This 700 Billion Dollars On AI Infrastructure And I'm Quoting The Post From Signal This Kind Of Spending Usually Happens Via Governments Or Wars Whereas This Time It's Four Companies Racing To Build The Foundational Mechanics Of AGI Those Four Companies Of Course Are Microsoft Amazon Google And Facebook You Argue In The In Your Editorial Keith And You Do Come To This As You Know You're Not Ignoring It Entirely That
Words and timings
KeithMaybeThere'SAFreudianElementHereYou'ReTalkingAboutTheclothingcomingoffI'mquotingyouhereThatclothingiscomingoffWhetherthat'swishfulthinkingonyourpartisanothermatterButit'sworthgoingbacktoallthiscapexstuffImeanwe'retalkingaboutdoubleamountsWellyoudon'tlikemythemethenWellIjustthinkthatyou'reImean,maybe,Idon'tknowwhat,sotospeak,maybeunburyingthelead.Imean,thebigstoryisofthisCapExinvestment.Imean,theovershootreportsthatwe'retalkingaboutdoubletheamountofCapExApexInvestmentsInQ1Of2026AndFromLastYearAndIt's2%OfAllTheGoodsAndServicesProducedInTheUnitedStatesSoWe'reTalkingAboutVerySignificantNumbersOurPostOfTheWeekTalksAboutThis700BillionDollarsOnAIInfrastructureAndI'mQuotingThePostFromSignalThisKindOfSpendingUsuallyHappensViaGovernmentsOrWarsWhereasThisTimeIt'sFourCompaniesRacingToBuildTheFoundationalMechanicsOfAGIThoseFourCompaniesOfCourseAreMicrosoftAmazonGoogleAndFacebookYouArgueInTheInYourEditorialKeithAndYouDoComeToThisAsYouKnowYou'reNotIgnoringItEntirelyThat
Speaker 3
This Isn't That Unusual That Great Change Is Always Created By Tech Companies So Perhaps You Might Explain That Why Isn't It That Concerning Why Don't You Agree With At Signal That We're In A New Historical Era When It Comes To Private Companies Investing In Infrastructure
Words and timings
ThisIsn'tThatUnusualThatGreatChangeIsAlwaysCreatedByTechCompaniesSoPerhapsYouMightExplainThatWhyIsn'tItThatConcerningWhyDon'tYouAgreeWithAtSignalThatWe'reInANewHistoricalEraWhenItComesToPrivateCompaniesInvestingInInfrastructure
Speaker 2
Well, I firstly, it's not a new historical era. I mean, every era, you know, the American railways were not built by the government. And neither was the internet.
Words and timings
Well,Ifirstly,it'snotanewhistoricalera.Imean,everyera,youknow,theAmericanrailwayswerenotbuiltbythegovernment.Andneitherwastheinternet.
Speaker 3
But here's where I'm not sure you're right. So you say innovation, I'm quoting you here, innovation waves have always been privately financed. And you say the steam engine, the railway network, the telephone, the electricity grid, the car, commercial aviation, The Personal Computer The Commercial Internet But Explain What You Mean By The Commercial Internet How Was That Funded By Private Companies Well If You Measure
Words and timings
Buthere'swhereI'mnotsureyou'reright.Soyousayinnovation,I'mquotingyouhere,innovationwaveshavealwaysbeenprivatelyfinanced.Andyousaythesteamengine,therailwaynetwork,thetelephone,theelectricitygrid,thecar,commercialaviation,ThePersonalComputerTheCommercialInternetButExplainWhatYouMeanByTheCommercialInternetHowWasThatFundedByPrivateCompaniesWellIfYouMeasure
Speaker 2
The Internet By Traffic Or By Revenue None Of It Is Coming From Or Going To The Government What The Government Did Is Funded A Research Project At DARPA That Led Vince Cerf And Bob Metcalf To Invent TCPIP
Words and timings
TheInternetByTrafficOrByRevenueNoneOfItIsComingFromOrGoingToTheGovernmentWhatTheGovernmentDidIsFundedAResearchProjectAtDARPAThatLedVinceCerfAndBobMetcalfToInventTCPIP
Speaker 3
Hold on, I mean, you're not giving it full credit. This was ARPANET, which was a massive government investment, which created the very infrastructure for the internet. I mean, this is an investment.
Words and timings
Holdon,Imean,you'renotgivingitfullcredit.ThiswasARPANET,whichwasamassivegovernmentinvestment,whichcreatedtheveryinfrastructurefortheinternet.Imean,thisisaninvestment.
Speaker 2
It didn't create the infrastructure. It created the protocols. ARPANET was a pathetic university-based bulletin board-style internet that I used to use in the 1980s.
Words and timings
Itdidn'tcreatetheinfrastructure.Itcreatedtheprotocols.ARPANETwasapatheticuniversity-basedbulletinboard-styleinternetthatIusedtouseinthe1980s.
Speaker 2
You know, it isn't nothing. It's the... It's The Precedent That Required To Be In Place For The Internet To Exist I'm Not
Words and timings
Youknow,itisn'tnothing.It'sthe...It'sThePrecedentThatRequiredToBeInPlaceForTheInternetToExistI'mNot
Speaker 3
sure Everyone Would Would Call The ARPANET Pathetic By Modern Standards But That's Not Really The Point Our Interview Of The Week Is With John Steele Gordon Very Distinguished Economic Historian From The Wall Street Journal Who Is A Contributor To A Wall Street Journal Series On The Most Impactful US Inventions And The Internet Comes Up Number One But As The Wall Street Journal Suggests Keith This For Better Or Worse Was A Cold War Project Came Out Of ARPANET Funded By The Defense Department So This Wasn't Private I Mean The Reality Is Is
Words and timings
sureEveryoneWouldWouldCallTheARPANETPatheticByModernStandardsButThat'sNotReallyThePointOurInterviewOfTheWeekIsWithJohnSteeleGordonVeryDistinguishedEconomicHistorianFromTheWallStreetJournalWhoIsAContributorToAWallStreetJournalSeriesOnTheMostImpactfulUSInventionsAndTheInternetComesUpNumberOneButAsTheWallStreetJournalSuggestsKeithThisForBetterOrWorseWasAColdWarProjectCameOutOfARPANETFundedByTheDefenseDepartmentSoThisWasn'tPrivateIMeanTheRealityIsIs
Speaker 2
That No But You Shouldn't Flatten The Argument Don't Flatten The Argument How am I flattening the argument? Well, you know, you're making the case that research funded by government is important to innovation. And I'm not going to disagree with that. And that's true of AI as well.
Words and timings
ThatNoButYouShouldn'tFlattenTheArgumentDon'tFlattenTheArgumentHowamIflatteningtheargument?Well,youknow,you'remakingthecasethatresearchfundedbygovernmentisimportanttoinnovation.AndI'mnotgoingtodisagreewiththat.Andthat'strueofAIaswell.
Speaker 3
No, I'm not. I'm not making that. I'm simply saying that you said that the internet was, or whatever you mean by the commercial internet, was funded by... By Private Companies But The Reality Is That The Internet Was Built By The
Words and timings
No,I'mnot.I'mnotmakingthat.I'msimplysayingthatyousaidthattheinternetwas,orwhateveryoumeanbythecommercialinternet,wasfundedby...ByPrivateCompaniesButTheRealityIsThatTheInternetWasBuiltByThe
Speaker 2
Government No It Wasn't Built Using The Wrong Word It Was It Was Research Was Funded That Led To Protocols That's The Truth And That Those Protocols Took On A Form Which It Starts As You Were Just About To Say With The National Science Foundation And Then DARPA And ARPANET But These Were Primitive Research Projects Not Very Heavily Funded Actually That Led To The First Internet Service Providers Like Earthlink Here In The US Or My Company EasyNet In Europe And We Were The Ones Who Raised Money To Build The Commercialization Of A Protocol Although Maybe That's True But This
Words and timings
GovernmentNoItWasn'tBuiltUsingTheWrongWordItWasItWasResearchWasFundedThatLedToProtocolsThat'sTheTruthAndThatThoseProtocolsTookOnAFormWhichItStartsAsYouWereJustAboutToSayWithTheNationalScienceFoundationAndThenDARPAAndARPANETButTheseWerePrimitiveResearchProjectsNotVeryHeavilyFundedActuallyThatLedToTheFirstInternetServiceProvidersLikeEarthlinkHereInTheUSOrMyCompanyEasyNetInEuropeAndWeWereTheOnesWhoRaisedMoneyToBuildTheCommercializationOfAProtocolAlthoughMaybeThat'sTrueButThis
Speaker 3
Didn't Happen Until About 1995 Because Of The True 94 Actually Well Because Only Then Was The Law Changed So You Could Have Quote Unquote A Commercial Internet I'm Just Trying To Defend This Guy I Don't Even Know Who Signal Is I Found This It Was An Interesting Post That So Are You Suggesting That That That What Michael and Google and Meta and Amazon are doing is like the commercial internet in 1995.
Words and timings
Didn'tHappenUntilAbout1995BecauseOfTheTrue94ActuallyWellBecauseOnlyThenWasTheLawChangedSoYouCouldHaveQuoteUnquoteACommercialInternetI'mJustTryingToDefendThisGuyIDon'tEvenKnowWhoSignalIsIFoundThisItWasAnInterestingPostThatSoAreYouSuggestingThatThatThatWhatMichaelandGoogleandMetaandAmazonaredoingislikethecommercialinternetin1995.
Speaker 2
Well, look, let's start with this guy. He's not wrong that this scale of investment is normally associated with governments and wars. And I think both words are important, governments and wars. And so the scale of investment is very large and it's private. I Do Think That You Know The Internet Bubble In The Late 99 2000 Era Was Very Small Compared To This But It Was The Second Biggest It Was Also Huge It Was Also People Like Amazon Yahoo Netscape Microsoft Who Were Who Funded The The Global Growth Of The Internet Including Lots Of Non-American Companies In China In Particular So The Guy Isn't Wrong About The Scale Of Investment And The Fact That It's Private And I Wasn't Really Criticizing Him When I Made The Point That It's Normal For The Commercialization Of Any Technology To Be Mainly Private That Is Normal I Can't Think Of A Non-Private Commercialization Of Any Scale Even In China I Made The Point In The Internet It's Private Companies That Both Raise Money Then Build Systems Then Get Revenue That Fuels Their Building Even More If They're
Words and timings
Well,look,let'sstartwiththisguy.He'snotwrongthatthisscaleofinvestmentisnormallyassociatedwithgovernmentsandwars.AndIthinkbothwordsareimportant,governmentsandwars.Andsothescaleofinvestmentisverylargeandit'sprivate.IDoThinkThatYouKnowTheInternetBubbleInTheLate992000EraWasVerySmallComparedToThisButItWasTheSecondBiggestItWasAlsoHugeItWasAlsoPeopleLikeAmazonYahooNetscapeMicrosoftWhoWereWhoFundedTheTheGlobalGrowthOfTheInternetIncludingLotsOfNon-AmericanCompaniesInChinaInParticularSoTheGuyIsn'tWrongAboutTheScaleOfInvestmentAndTheFactThatIt'sPrivateAndIWasn'tReallyCriticizingHimWhenIMadeThePointThatIt'sNormalForTheCommercializationOfAnyTechnologyToBeMainlyPrivateThatIsNormalICan'tThinkOfANon-PrivateCommercializationOfAnyScaleEvenInChinaIMadeThePointInTheInternetIt'sPrivateCompaniesThatBothRaiseMoneyThenBuildSystemsThenGetRevenueThatFuelsTheirBuildingEvenMoreIfThey're
Speaker 3
Successful Let Me Ask Maybe This Is A Bit Of A Dumb Question But A Lot Of This A Lot Of The Money The capex Investment Is Going Towards Data Centers And This Is An Increasingly Controversial Issue Lots Of Local Communities For One Reason Or Other For Better Or Worse Don't Want Data Centers New York Times Describes Opposition To Data Centers As The Most Bipartisan Issue Since Beer In Other Words Everybody Agrees On The Left And The Right That Data Centers For Better Or Worse Are Wrong There Are Fights All Over The Country 37 Data Center Fights Just In Virginia Alone Going To The Virginia Supreme Court And These Companies Are Investing More And More In Data Centers If You Want To Extend The Metaphor To The Internet From The 90s Keith What Exactly How Would You Describe The Equivalent Of A Data Center Or This Investment Of Data Centers In The 90s Wasn't The Internet Built Out By Then Pretty Much Maybe It Was A Bit Pathetic As You Note But Isn't this investment, this private investment in data centers, which is the core of CapEx, this is what all these companies are spending their money on, won't that mean that these companies essentially own the infrastructure for AGI? And in that sense, isn't Signal correct?
Words and timings
SuccessfulLetMeAskMaybeThisIsABitOfADumbQuestionButALotOfThisALotOfTheMoneyThecapexInvestmentIsGoingTowardsDataCentersAndThisIsAnIncreasinglyControversialIssueLotsOfLocalCommunitiesForOneReasonOrOtherForBetterOrWorseDon'tWantDataCentersNewYorkTimesDescribesOppositionToDataCentersAsTheMostBipartisanIssueSinceBeerInOtherWordsEverybodyAgreesOnTheLeftAndTheRightThatDataCentersForBetterOrWorseAreWrongThereAreFightsAllOverTheCountry37DataCenterFightsJustInVirginiaAloneGoingToTheVirginiaSupremeCourtAndTheseCompaniesAreInvestingMoreAndMoreInDataCentersIfYouWantToExtendTheMetaphorToTheInternetFromThe90sKeithWhatExactlyHowWouldYouDescribeTheEquivalentOfADataCenterOrThisInvestmentOfDataCentersInThe90sWasn'tTheInternetBuiltOutByThenPrettyMuchMaybeItWasABitPatheticAsYouNoteButIsn'tthisinvestment,thisprivateinvestmentindatacenters,whichisthecoreofCapEx,thisiswhatallthesecompaniesarespendingtheirmoneyon,won'tthatmeanthatthesecompaniesessentiallyowntheinfrastructureforAGI?Andinthatsense,isn'tSignalcorrect?
Speaker 2
Let me take you back to 1994 when I built a data center in Brick Lane in London for EasyNet. At That Time Pretty Much Every London University Had An Internet Node And Had One For Some Years There Was No Such Thing As A Data Center In Any Of Those Universities There Was A Few Modems Hanging Off A Wall And A Router My Data Center In Brick Lane Lived Alongside About Five Other Data Centers In London That Were All Owned By Telephone Companies And So 1994 Was An Entirely Privately Funded Internet At Any Scale But Yours Was A
Words and timings
Letmetakeyoubackto1994whenIbuiltadatacenterinBrickLaneinLondonforEasyNet.AtThatTimePrettyMuchEveryLondonUniversityHadAnInternetNodeAndHadOneForSomeYearsThereWasNoSuchThingAsADataCenterInAnyOfThoseUniversitiesThereWasAFewModemsHangingOffAWallAndARouterMyDataCenterInBrickLaneLivedAlongsideAboutFiveOtherDataCentersInLondonThatWereAllOwnedByTelephoneCompaniesAndSo1994WasAnEntirelyPrivatelyFundedInternetAtAnyScaleButYoursWasA
Speaker 3
Startup And The Telephone Companies Weren't The Smartest They Didn't Really
Words and timings
StartupAndTheTelephoneCompaniesWeren'tTheSmartestTheyDidn'tReally
Speaker 2
Understand What Was Happening Well They Understood Enough To Build TCP IP Facilities British Telecom In 1994 Came And Did A Deal With Me To Trends Let's Try Not To Personal I Just Want You To Understand History The History Of The Internet Is Not A History Of Government Success It Is Also A History Of Government Success But That Is Such A Small Part Of The Story I Don't Think
Words and timings
UnderstandWhatWasHappeningWellTheyUnderstoodEnoughToBuildTCPIPFacilitiesBritishTelecomIn1994CameAndDidADealWithMeToTrendsLet'sTryNotToPersonalIJustWantYouToUnderstandHistoryTheHistoryOfTheInternetIsNotAHistoryOfGovernmentSuccessItIsAlsoAHistoryOfGovernmentSuccessButThatIsSuchASmallPartOfTheStoryIDon'tThink
Speaker 3
That's The Argument And We're Not Talking About Whether You Why Are You Why Are You
Words and timings
That'sTheArgumentAndWe'reNotTalkingAboutWhetherYouWhyAreYouWhyAreYou
Speaker 2
Focused On This
Words and timings
FocusedOnThis
Speaker 3
Because It's Such An Important Issue I Think For The Future Of The AI Economy Let's Go Back To Your Example Of British Telecom Whether Or Not They Invested In Your Data Center In Brick Lane It Didn't Mean That Quote Unquote They Owned The Internet Did It What Did They Get For That Investment What
Words and timings
BecauseIt'sSuchAnImportantIssueIThinkForTheFutureOfTheAIEconomyLet'sGoBackToYourExampleOfBritishTelecomWhetherOrNotTheyInvestedInYourDataCenterInBrickLaneItDidn'tMeanThatQuoteUnquoteTheyOwnedTheInternetDidItWhatDidTheyGetForThatInvestmentWhat
Speaker 2
Well, I'll tell you how pathetic it was. This is why startups are so important. They gave me three years of exclusivity to dial up internet in the UK. They even manned an 800 number to field consumer calls to get people to sign up for EasyNet. And all I had to do in return was buy a T1 line from them. Into Our Headquarters Which Was Also Siberia Cafe Which Cost About 12,000 Pounds A Year So For 12,000 Pounds A Year They Gave Me Three Years Of Exclusivity To The British Internet For Consumers That's How Little They Understood About What Was
Words and timings
Well,I'lltellyouhowpatheticitwas.Thisiswhystartupsaresoimportant.TheygavemethreeyearsofexclusivitytodialupinternetintheUK.Theyevenmannedan800numbertofieldconsumercallstogetpeopletosignupforEasyNet.AndallIhadtodoinreturnwasbuyaT1linefromthem.IntoOurHeadquartersWhichWasAlsoSiberiaCafeWhichCostAbout12,000PoundsAYearSoFor12,000PoundsAYearTheyGaveMeThreeYearsOfExclusivityToTheBritishInternetForConsumersThat'sHowLittleTheyUnderstoodAboutWhatWas
Speaker 3
Going On As I Said They Weren't Very Smart But We're Talking About Entirely Different Stratospheric Numbers Now Goldman I Think Estimate We're Talking About Almost 800 Billion In 2026 That This CapEx Investment Is Going To Go Up To About 1.6 Trillion In 2031 And Most Of That Is Going To Come It's Not This Is Not A Startup Economy What We're Talking About Andrew Andrew Andrew What Is Your Point About That Are You Saying It's Too Big I'm Simply Suggesting That It's A Different Historical Moment When Private Companies And We're Not Talking About Startups I
Words and timings
GoingOnAsISaidTheyWeren'tVerySmartButWe'reTalkingAboutEntirelyDifferentStratosphericNumbersNowGoldmanIThinkEstimateWe'reTalkingAboutAlmost800BillionIn2026ThatThisCapExInvestmentIsGoingToGoUpToAbout1.6TrillionIn2031AndMostOfThatIsGoingToComeIt'sNotThisIsNotAStartupEconomyWhatWe'reTalkingAboutAndrewAndrewAndrewWhatIsYourPointAboutThatAreYouSayingIt'sTooBigI'mSimplySuggestingThatIt'sADifferentHistoricalMomentWhenPrivateCompaniesAndWe'reNotTalkingAboutStartupsI
Speaker 2
Agree It's A Different Historical Moment But I Think To Requote Signal
Words and timings
AgreeIt'sADifferentHistoricalMomentButIThinkToRequoteSignal
Speaker 3
This Kind Of Spending Usually Happens Via Governments Or Wars Whereas This Time It's Four Companies Racing To Build The Foundational Mechanics Of AGI Now These Aren't Startups Hold On Let Me Let Me Be Clear We're Not Talking About Open AI Or Anthropic Or Any Of The Other Many AI Startups We're Talking About Four Companies Four Biggest Tech Companies So This Is I'm not suggesting it's good or bad, I'm simply suggesting that this guy is right, that this kind of spending usually happens via governments or wars, whereas this time it's racing to build the foundational mechanics of AGI.
Words and timings
ThisKindOfSpendingUsuallyHappensViaGovernmentsOrWarsWhereasThisTimeIt'sFourCompaniesRacingToBuildTheFoundationalMechanicsOfAGINowTheseAren'tStartupsHoldOnLetMeLetMeBeClearWe'reNotTalkingAboutOpenAIOrAnthropicOrAnyOfTheOtherManyAIStartupsWe'reTalkingAboutFourCompaniesFourBiggestTechCompaniesSoThisIsI'mnotsuggestingit'sgoodorbad,I'msimplysuggestingthatthisguyisright,thatthiskindofspendingusuallyhappensviagovernmentsorwars,whereasthistimeit'sracingtobuildthefoundationalmechanicsofAGI.
Speaker 2
Yeah, I mean, I obviously made him the post of the week for a reason. I think he's right as well, so I'm not sure what we're debating. He's right, but thank God. Thank God For Those Four Companies Because Without Those Four Companies We Wouldn't
Words and timings
Yeah,Imean,Iobviouslymadehimthepostoftheweekforareason.Ithinkhe'srightaswell,soI'mnotsurewhatwe'redebating.He'sright,butthankGod.ThankGodForThoseFourCompaniesBecauseWithoutThoseFourCompaniesWeWouldn't
Speaker 3
Be Getting This But The Reason Of Course And You Know This Is Better Than I Do The Reason Why People Don't Trust AI And You Cover This In The Newsletter Particularly In The US It's Really Weird People Trust AI Less In The US Than They Do In China Which May And Maybe We Can Come To That Later Is Because Not Of The Not Open AI And Anthropic Because These Large Companies Are Controlling Our AI Thing Isn't That The Reality What Do You
Words and timings
BeGettingThisButTheReasonOfCourseAndYouKnowThisIsBetterThanIDoTheReasonWhyPeopleDon'tTrustAIAndYouCoverThisInTheNewsletterParticularlyInTheUSIt'sReallyWeirdPeopleTrustAILessInTheUSThanTheyDoInChinaWhichMayAndMaybeWeCanComeToThatLaterIsBecauseNotOfTheNotOpenAIAndAnthropicBecauseTheseLargeCompaniesAreControllingOurAIThingIsn'tThatTheRealityWhatDoYou
Speaker 2
Mean You Sound Like A Conspiracy Theorist What Do You Mean They're Controlling Our AI Thing What Do They Control
Words and timings
MeanYouSoundLikeAConspiracyTheoristWhatDoYouMeanThey'reControllingOurAIThingWhatDoTheyControl
Speaker 3
But They Own The Data Centers They're Investing In The Infrastructure And This Goes
Words and timings
ButTheyOwnTheDataCentersThey'reInvestingInTheInfrastructureAndThisGoes
Speaker 2
Back To The Telephone Company Because It Owns The Telephone In Your House As It Used To Be The Case Owns The Telephone As You Noted In The 90s The Telephone
Words and timings
BackToTheTelephoneCompanyBecauseItOwnsTheTelephoneInYourHouseAsItUsedToBeTheCaseOwnsTheTelephoneAsYouNotedInThe90sTheTelephone
Speaker 3
Companies Weren't Very Smart They Didn't Understand What They Were Doing Whereas
Words and timings
CompaniesWeren'tVerySmartTheyDidn'tUnderstandWhatTheyWereDoingWhereas
Speaker 2
These Companies Are Massively Powerful And Like A MAGA Conspiracist I Mean There's Nothing Controlling Here That The Control To Be Honest Is Largely In The Hands Of Individual Users Of AI The Facilitating Is What They're Doing They're Facilitating And They're Going To Make Money From It As Well Which Is Which They Should So You're Not You Don't Think
Words and timings
TheseCompaniesAreMassivelyPowerfulAndLikeAMAGAConspiracistIMeanThere'sNothingControllingHereThatTheControlToBeHonestIsLargelyInTheHandsOfIndividualUsersOfAITheFacilitatingIsWhatThey'reDoingThey'reFacilitatingAndThey'reGoingToMakeMoneyFromItAsWellWhichIsWhichTheyShouldSoYou'reNotYouDon'tThink
Speaker 3
This Is Particularly Significant In Historical Terms That These And There May Be Four There May Be Five There May Be Three Who Knows What The Future Of Meta Is Maybe They Won't Be Able To Compete With Google Or Microsoft Or Maybe Apple Will Appear In This Play But Isn't This You Don't Think It's Very
Words and timings
ThisIsParticularlySignificantInHistoricalTermsThatTheseAndThereMayBeFourThereMayBeFiveThereMayBeThreeWhoKnowsWhatTheFutureOfMetaIsMaybeTheyWon'tBeAbleToCompeteWithGoogleOrMicrosoftOrMaybeAppleWillAppearInThisPlayButIsn'tThisYouDon'tThinkIt'sVery
Speaker 2
Significant Well I'm Trying To Detect What It Is You Care About It Sounds Like You Have A Concern Whereas I Only Have A I Want To Stand And Applaud What So Where's My Applause Comes From You Know And The Title Of This Week's The Hand Job Thing
Words and timings
SignificantWellI'mTryingToDetectWhatItIsYouCareAboutItSoundsLikeYouHaveAConcernWhereasIOnlyHaveAIWantToStandAndApplaudWhatSoWhere'sMyApplauseComesFromYouKnowAndTheTitleOfThisWeek'sTheHandJobThing
Speaker 3
Which Is They Are Maybe You Are Taking Our Mind Off With This Beautiful Woman The Hand Job Of What's Maybe We're All Getting The Hand Job From Big Tech They're
Words and timings
WhichIsTheyAreMaybeYouAreTakingOurMindOffWithThisBeautifulWomanTheHandJobOfWhat'sMaybeWe'reAllGettingTheHandJobFromBigTechThey're
Speaker 2
Funding The Next Evolution Of You Know Human Computer Relationships Which I Put Into The Editorial Are Going To Be More Like Human Human Relationships Like Where When You Go To A Restaurant You Talk To A Waiter And You Don't They Don't Bring You A Keyboard To Type In What You Need Although These Days Some Of Them Actually Do Do That And You Know Our Relationship To Computing Has Been Through Keyboards And Mice And Touch Screens Their Funding The Possibility That We Will Relate To Computing The Same Way We Do To Humans Speaking To Them Getting Answers Querying Things That Are Much More Natural And A Massive Scale And It'S Going To Change Everything And It'S Going To Cost A Lot Of
Words and timings
FundingTheNextEvolutionOfYouKnowHumanComputerRelationshipsWhichIPutIntoTheEditorialAreGoingToBeMoreLikeHumanHumanRelationshipsLikeWhereWhenYouGoToARestaurantYouTalkToAWaiterAndYouDon'tTheyDon'tBringYouAKeyboardToTypeInWhatYouNeedAlthoughTheseDaysSomeOfThemActuallyDoDoThatAndYouKnowOurRelationshipToComputingHasBeenThroughKeyboardsAndMiceAndTouchScreensTheirFundingThePossibilityThatWeWillRelateToComputingTheSameWayWeDoToHumansSpeakingToThemGettingAnswersQueryingThingsThatAreMuchMoreNaturalAndAMassiveScaleAndIt'SGoingToChangeEverythingAndIt'SGoingToCostALotOf
Speaker 3
Money But There Also As You Say The Clothing Is Coming Off In Every Sense I Mean I'M Not Suggesting It'S Necessarily A Bad Thing All I'M Trying To Do Is Support Signal. I mean, maybe Signal's an AI. I don't know if Signal needs support. I mean, I'm supporting...
Words and timings
MoneyButThereAlsoAsYouSayTheClothingIsComingOffInEverySenseIMeanI'MNotSuggestingIt'SNecessarilyABadThingAllI'MTryingToDoIsSupportSignal.Imean,maybeSignal'sanAI.Idon'tknowifSignalneedssupport.Imean,I'msupporting...
Speaker 2
The only word I would disagree with, really, is the word for. If it was spelled F-O-R, it isn't for the companies. It's for us, by the companies.
Words and timings
TheonlywordIwoulddisagreewith,really,isthewordfor.IfitwasspelledF-O-R,itisn'tforthecompanies.It'sforus,bythecompanies.
Speaker 3
I'm not going to make fun of your northern accent, us, but...
Words and timings
I'mnotgoingtomakefunofyournorthernaccent,us,but...
Speaker 3
The Reality I'm Not Sure We Want To Relitigate All These Arguments That Dividers Keep Is That These Companies Are Not Doing It Out Of Some Sort Of Civilizational Altruism They're Doing It For Better Or Worse And I Can Understand It To Pursue Their Own Interest So They're Not Giving Away This Technology Well That's An
Words and timings
TheRealityI'mNotSureWeWantToRelitigateAllTheseArgumentsThatDividersKeepIsThatTheseCompaniesAreNotDoingItOutOfSomeSortOfCivilizationalAltruismThey'reDoingItForBetterOrWorseAndICanUnderstandItToPursueTheirOwnInterestSoThey'reNotGivingAwayThisTechnologyWellThat'sAn
Speaker 2
Interesting Insight Andrew I Mean I Think I Don't Think Civilization Is A Conscious Project I Think What Happens Is Civilization Is What You Get By Through Innovation An Innovation You're Quite Right Is Driven By Self-Interest I Actually Think Self-Interest Is Underestimated As The Key Driver Of Civilization Without Self-Interest There Be No Impetus And So Self-Interest Is A Big Part Of It And The More They You Know The More They Give Us These Tools And They Pushed One Of The Parts Of The Editorial This Week Is That The Devices Are Going To Change This Is Going To Be Pushed To The Edge I Can't Wait For Apple's Developer Conference In A Few Weeks Time Because I Think We'll See The First Signs Of It There But OpenAI And Johnny Ive Are Also Moving In The Edge I'm Always
Words and timings
InterestingInsightAndrewIMeanIThinkIDon'tThinkCivilizationIsAConsciousProjectIThinkWhatHappensIsCivilizationIsWhatYouGetByThroughInnovationAnInnovationYou'reQuiteRightIsDrivenBySelf-InterestIActuallyThinkSelf-InterestIsUnderestimatedAsTheKeyDriverOfCivilizationWithoutSelf-InterestThereBeNoImpetusAndSoSelf-InterestIsABigPartOfItAndTheMoreTheyYouKnowTheMoreTheyGiveUsTheseToolsAndTheyPushedOneOfThePartsOfTheEditorialThisWeekIsThatTheDevicesAreGoingToChangeThisIsGoingToBePushedToTheEdgeICan'tWaitForApple'sDeveloperConferenceInAFewWeeksTimeBecauseIThinkWe'llSeeTheFirstSignsOfItThereButOpenAIAndJohnnyIveAreAlsoMovingInTheEdgeI'mAlways
Speaker 3
Suspicious Of That Term It's A Metaphor But The Reality Is If The Edge Is Owned By Apple Or OpenAI Then I'm Not Sure It's Really The Edge The
Words and timings
SuspiciousOfThatTermIt'sAMetaphorButTheRealityIsIfTheEdgeIsOwnedByAppleOrOpenAIThenI'mNotSureIt'sReallyTheEdgeThe
Speaker 2
Edge Is Owned By You See It Isn't The Edge The Very Definition Of Edge If You Use The Word Properly Is It's Owned By You You Pay $1,000 For An iPhone It Has Models On It And It's Capable Of Interacting With You And It Doesn't Go Through Apple's Data Centers So It Truly Is The Edge But I Think That This Coming Back Doesn't This
Words and timings
EdgeIsOwnedByYouSeeItIsn'tTheEdgeTheVeryDefinitionOfEdgeIfYouUseTheWordProperlyIsIt'sOwnedByYouYouPay$1,000ForAniPhoneItHasModelsOnItAndIt'sCapableOfInteractingWithYouAndItDoesn'tGoThroughApple'sDataCentersSoItTrulyIsTheEdgeButIThinkThatThisComingBackDoesn'tThis
Speaker 3
Mean That The Data Center Issue I Always Thought It Was A Bit I Wouldn't Say Trivial But Maybe In Some Ways Ideologically Frivolous That It Is An Important Issue I Mean It'S Going To Become As The Times Suggest It'S The Most Bipartisan Issue Since Beer Opposition To Data Centers Not Everybody Understands But These Dentist Centers Are The Operating Systems For Large Tech In Our AI Age Is That Fair How Would You Describe
Words and timings
MeanThatTheDataCenterIssueIAlwaysThoughtItWasABitIWouldn'tSayTrivialButMaybeInSomeWaysIdeologicallyFrivolousThatItIsAnImportantIssueIMeanIt'SGoingToBecomeAsTheTimesSuggestIt'STheMostBipartisanIssueSinceBeerOppositionToDataCentersNotEverybodyUnderstandsButTheseDentistCentersAreTheOperatingSystemsForLargeTechInOurAIAgeIsThatFairHowWouldYouDescribe
Speaker 2
Well I Think It Is As Important As You Suggest But For A Different Reason It's Emblematic Of America's Backward Looking Elements That This Is Controversial In Any Way At All The Reason It Isn't Controversial In China Is There's A General Consensus In China That AI Will Be Good For Society The Reason It Is Controversial In America Is Because More Backward Looking One Could Say Luddite Like Sentiments Fear If You Will As Opposed To Optimism Dominates The Political Agenda And The Politicians Are Scared Of Taking It On So As You Rightly Say That It Becomes A Bipartisan Issue But It Is Entirely Symbolic Or Emblematic Of America's Decline On The World Stage Whereas The Actual Drive To Build Them Is Emblematic Of America's Leadership Yeah It's
Words and timings
WellIThinkItIsAsImportantAsYouSuggestButForADifferentReasonIt'sEmblematicOfAmerica'sBackwardLookingElementsThatThisIsControversialInAnyWayAtAllTheReasonItIsn'tControversialInChinaIsThere'sAGeneralConsensusInChinaThatAIWillBeGoodForSocietyTheReasonItIsControversialInAmericaIsBecauseMoreBackwardLookingOneCouldSayLudditeLikeSentimentsFearIfYouWillAsOpposedToOptimismDominatesThePoliticalAgendaAndThePoliticiansAreScaredOfTakingItOnSoAsYouRightlySayThatItBecomesABipartisanIssueButItIsEntirelySymbolicOrEmblematicOfAmerica'sDeclineOnTheWorldStageWhereasTheActualDriveToBuildThemIsEmblematicOfAmerica'sLeadershipYeahIt's
Speaker 3
Ironic And One Of The Pieces That You Cover Is The Post's Report On AI Americans Are Down On AI Americans Are Amongst The Most Suspicious The Most Skeptical About AI They Are Less Excited About AI Than Almost Anyone Else Whereas China Is The Most Excited I Think More Than Anybody More Than Indonesia Thailand 84% Of Chinese People Are Interviewed For This This Survey So They Are Excited Whereas Only 38% Of Americans And This Is The Week Where Deep Seek Sequel Which Deep Seek Is One Of The Chinese Challengers To AI Failed To Impress. So it's kind of ironic that in America, which leads the world in AI, people are very skeptical, whereas in China, which still lags behind, most people are optimistic. Is that just a paradox of history? How would you explain it?
Words and timings
IronicAndOneOfThePiecesThatYouCoverIsThePost'sReportOnAIAmericansAreDownOnAIAmericansAreAmongstTheMostSuspiciousTheMostSkepticalAboutAITheyAreLessExcitedAboutAIThanAlmostAnyoneElseWhereasChinaIsTheMostExcitedIThinkMoreThanAnybodyMoreThanIndonesiaThailand84%OfChinesePeopleAreInterviewedForThisThisSurveySoTheyAreExcitedWhereasOnly38%OfAmericansAndThisIsTheWeekWhereDeepSeekSequelWhichDeepSeekIsOneOfTheChineseChallengersToAIFailedToImpress.Soit'skindofironicthatinAmerica,whichleadstheworldinAI,peopleareveryskeptical,whereasinChina,whichstilllagsbehind,mostpeopleareoptimistic.Isthatjustaparadoxofhistory?Howwouldyouexplainit?
Speaker 2
Look, this is one of those areas where you've got to applaud the Trump administration. It is gung-ho, you know, China-like in its support for AI. and from a point of view of government leadership, it's a bright shining light when it comes to its understanding of how important AI might be to the future and facilitating that happening. It's in stark contrast to Bernie Sanders, who wants to have a moratorium on data centers being built.
Words and timings
Look,thisisoneofthoseareaswhereyou'vegottoapplaudtheTrumpadministration.Itisgung-ho,youknow,China-likeinitssupportforAI.andfromapointofviewofgovernmentleadership,it'sabrightshininglightwhenitcomestoitsunderstandingofhowimportantAImightbetothefutureandfacilitatingthathappening.It'sinstarkcontrasttoBernieSanders,whowantstohaveamoratoriumondatacentersbeingbuilt.
Speaker 3
You don't have to be a Trump fan to believe in AI. I mean, the accelerationists on the center left As the client, for example, are supportive.
Words and timings
Youdon'thavetobeaTrumpfantobelieveinAI.Imean,theaccelerationistsonthecenterleftAstheclient,forexample,aresupportive.
Speaker 2
So it's not either Trump or Bernie Sanders. No, I'm just painting a picture of the two extremes, and you're quite right, there's lots in the middle.
Words and timings
Soit'snoteitherTrumporBernieSanders.No,I'mjustpaintingapictureofthetwoextremes,andyou'requiteright,there'slotsinthemiddle.
Speaker 3
And some of the Trump people are actually deeply hostile to AI too.
Words and timings
AndsomeoftheTrumppeopleareactuallydeeplyhostiletoAItoo.
Speaker 2
Yeah, but the main point is that, look, America is performing extremely well in AI anyway. Data Centres Are Going To Be Built They Are Being Built These These Sums Of Money Which You Rightly Say Are Large Probably Going To Look Small Five Years From Now Because There'll Be Even Bigger Numbers And There'll Be Bigger Revenues So It Is A Classic Case Study In How Capitalism Invest To Produce More Value And It Is Going To Produce More Value
Words and timings
Yeah,butthemainpointisthat,look,AmericaisperformingextremelywellinAIanyway.DataCentresAreGoingToBeBuiltTheyAreBeingBuiltTheseTheseSumsOfMoneyWhichYouRightlySayAreLargeProbablyGoingToLookSmallFiveYearsFromNowBecauseThere'llBeEvenBiggerNumbersAndThere'llBeBiggerRevenuesSoItIsAClassicCaseStudyInHowCapitalismInvestToProduceMoreValueAndItIsGoingToProduceMoreValue
Speaker 3
So Let me Ask You This Question On Infrastructure I Mean Maybe It's Not The Right Word We've Already Talked About The Commercial Internet We Noted That Up Until 1995 There Wasn't A Commercial Internet And Then It Became Commercialized And That It Was Funded By ARPANET Which Was A Defense Research Project For Better Or Worse Will These Data Centers If They Continue If If The Goldman Report Is Right Let's Say By 2031 Over One And A Half Trillion Dollars Is Invested Annually In CapEx Which Is Mostly Say Continues To Be Data Centers What Will That Mean In Terms Of The Ownership Of AGI I Mean This Comes Back To Signals Point To Build The Foundational Mechanics Of AGI Will That Mean That The Big Four Or The Big Five Or The Big Three Whatever They Are By 2031 Will Own Those Mechanics Isn't
Words and timings
SoLetmeAskYouThisQuestionOnInfrastructureIMeanMaybeIt'sNotTheRightWordWe'veAlreadyTalkedAboutTheCommercialInternetWeNotedThatUpUntil1995ThereWasn'tACommercialInternetAndThenItBecameCommercializedAndThatItWasFundedByARPANETWhichWasADefenseResearchProjectForBetterOrWorseWillTheseDataCentersIfTheyContinueIfIfTheGoldmanReportIsRightLet'sSayBy2031OverOneAndAHalfTrillionDollarsIsInvestedAnnuallyInCapExWhichIsMostlySayContinuesToBeDataCentersWhatWillThatMeanInTermsOfTheOwnershipOfAGIIMeanThisComesBackToSignalsPointToBuildTheFoundationalMechanicsOfAGIWillThatMeanThatTheBigFourOrTheBigFiveOrTheBigThreeWhateverTheyAreBy2031WillOwnThoseMechanicsIsn't
Speaker 2
That The Key Question So I Think You Got To Unpeel The Onion A Bit Here To Understand It I Think The First Thing To Say Is That By It's Not At All Clear That By 2030 LLMs
Words and timings
ThatTheKeyQuestionSoIThinkYouGotToUnpeelTheOnionABitHereToUnderstandItIThinkTheFirstThingToSayIsThatByIt'sNotAtAllClearThatBy2030LLMs
Speaker 3
Will Be The Dominant Form Of AI Right So Whatever Is I Mean I Don't Think That The Goldman Report Makes Any Bets But It's Certainly Going To Be One Kind Of Age One
Words and timings
WillBeTheDominantFormOfAIRightSoWhateverIsIMeanIDon'tThinkThatTheGoldmanReportMakesAnyBetsButIt'sCertainlyGoingToBeOneKindOfAgeOne
Speaker 2
Kind Of AI Or Another And Then The Second Thing I'd Say On The Onion Being Peeled Is We Are Already In The Age Of Agentic AI which sits on your computer and interacts with your data, mainly unstructured data, and can carry actions out on your behalf, which is the hands-off part of it. We're already in that phase. Anyone using AI as a chatbot is living in a two years ago kind of age. AI can now do things for you and deliver stuff automatically based on your instructions. And It Can Even Question Your Instructions And Improve Them So We Are Already In That Stage So Once We Get To Device Independent AIs Which We Are Very Close To Already If You Look At The Main Interesting Thing About What Is Happening In China Is The Open Source Models That Now Run On Devices Like Your Mac Mini And So You Can't Buy A Mac Mini Anymore They Are Sold Out Because Everyone Is Running Their Own AIs On Them For Free, by the way. Not everyone, but people who want to run their own. People who want to are. So the historical trend through to 1930, which Goldman Sachs... 2030, you missed the second. Sorry, 2030. Goldman Sachs is extrapolating from a present that probably is fictional.
Words and timings
KindOfAIOrAnotherAndThenTheSecondThingI'dSayOnTheOnionBeingPeeledIsWeAreAlreadyInTheAgeOfAgenticAIwhichsitsonyourcomputerandinteractswithyourdata,mainlyunstructureddata,andcancarryactionsoutonyourbehalf,whichisthehands-offpartofit.We'realreadyinthatphase.AnyoneusingAIasachatbotislivinginatwoyearsagokindofage.AIcannowdothingsforyouanddeliverstuffautomaticallybasedonyourinstructions.AndItCanEvenQuestionYourInstructionsAndImproveThemSoWeAreAlreadyInThatStageSoOnceWeGetToDeviceIndependentAIsWhichWeAreVeryCloseToAlreadyIfYouLookAtTheMainInterestingThingAboutWhatIsHappeningInChinaIsTheOpenSourceModelsThatNowRunOnDevicesLikeYourMacMiniAndSoYouCan'tBuyAMacMiniAnymoreTheyAreSoldOutBecauseEveryoneIsRunningTheirOwnAIsOnThemForFree,bytheway.Noteveryone,butpeoplewhowanttoruntheirown.Peoplewhowanttoare.Sothehistoricaltrendthroughto1930,whichGoldmanSachs...2030,youmissedthesecond.Sorry,2030.GoldmanSachsisextrapolatingfromapresentthatprobablyisfictional.
Speaker 3
Okay, but we're talking about a lot. So you suggest, I mean, whether it's a trillion or a trillion and a half.
Words and timings
Okay,butwe'retalkingaboutalot.Soyousuggest,Imean,whetherit'satrillionoratrillionandahalf.
Speaker 2
I think it might be, I think it may well be five times greater than that.
Words and timings
Ithinkitmightbe,Ithinkitmaywellbefivetimesgreaterthanthat.
Speaker 3
Okay, well, even more so than if it's seven trillion. And if that money is coming from private companies, what exactly does that mean?
Words and timings
Okay,well,evenmoresothanifit'sseventrillion.Andifthatmoneyiscomingfromprivatecompanies,whatexactlydoesthatmean?
Speaker 2
Well, again, you've got to trace what that means, money from private companies. How does that work? You know, this week, Anthropic is being asked to sell shares at a trillion dollar valuation, Anthropic. If it says yes, it's going to take money from investors. Where Does That Investor's Money Come From It Comes Mainly From Pension Funds Or University Endowments So This Is The People's Money Funding The Next Stage Of Evolution And If It Works It Will Go Back To The People In The Form Of Gains Yeah
Words and timings
Well,again,you'vegottotracewhatthatmeans,moneyfromprivatecompanies.Howdoesthatwork?Youknow,thisweek,Anthropicisbeingaskedtosellsharesatatrilliondollarvaluation,Anthropic.Ifitsaysyes,it'sgoingtotakemoneyfrominvestors.WhereDoesThatInvestor'sMoneyComeFromItComesMainlyFromPensionFundsOrUniversityEndowmentsSoThisIsThePeople'sMoneyFundingTheNextStageOfEvolutionAndIfItWorksItWillGoBackToThePeopleInTheFormOfGainsYeah
Speaker 3
But This Isn't True I Mean You Would Include Would You Would Include Google And Microsoft And Amazon In That I Mean Yeah Yeah Yeah Meta This Week
Words and timings
ButThisIsn'tTrueIMeanYouWouldIncludeWouldYouWouldIncludeGoogleAndMicrosoftAndAmazonInThatIMeanYeahYeahYeahMetaThisWeek
Speaker 2
Opened Up A 40 Billion Dollar Bond That Was Snapped Up And Oversubscribed In 24 Hours Where Does That Money Come From To Buy That 40 Billion Dollar Bond And The
Words and timings
OpenedUpA40BillionDollarBondThatWasSnappedUpAndOversubscribedIn24HoursWhereDoesThatMoneyComeFromToBuyThat40BillionDollarBondAndThe
Speaker 3
Stock Market Is A Kind Of Public Investment Fund So It's The Equivalent In A Sense
Words and timings
StockMarketIsAKindOfPublicInvestmentFundSoIt'sTheEquivalentInASense
Speaker 2
Of The Arpanet Well There's No Such Thing As You Know In The Stock Market Government Money All The Money In The Stock Market Is Private And It Includes Everybody Who Invested In The Stock Market In Even The Institutions That Do It Institutionally Get Their Money From Where Do They Get It From They Get It From The
Words and timings
OfTheArpanetWellThere'sNoSuchThingAsYouKnowInTheStockMarketGovernmentMoneyAllTheMoneyInTheStockMarketIsPrivateAndItIncludesEverybodyWhoInvestedInTheStockMarketInEvenTheInstitutionsThatDoItInstitutionallyGetTheirMoneyFromWhereDoTheyGetItFromTheyGetItFromThe
Speaker 3
Source Of Capital And GDP So You're Suggesting That Really When It Comes Down To It When When We Do A Hand Job On These On The Mechanics Of Capitalism Private
Words and timings
SourceOfCapitalAndGDPSoYou'reSuggestingThatReallyWhenItComesDownToItWhenWhenWeDoAHandJobOnTheseOnTheMechanicsOfCapitalismPrivate
Speaker 2
Companies Are Actually Public Well That's The Whole Nature Of A Stock When When Stocks Were Invented It Was A Revolution It Was The First Time Individuals Could Own Companies Instead Of Private Feudal Like Ownership So A Stock
Words and timings
CompaniesAreActuallyPublicWellThat'sTheWholeNatureOfAStockWhenWhenStocksWereInventedItWasARevolutionItWasTheFirstTimeIndividualsCouldOwnCompaniesInsteadOfPrivateFeudalLikeOwnershipSoAStock
Speaker 3
Is A Democratizing Asset Hmm Well Now We Have Reason To Trust All These Private Companies What Do You Make Keith Of This Week About We Always Talk About The Wacky Races On This Show Because Every Week One Big Company Or Other Or One Startup Or Another Seems To Be Ahead I Read A Couple Of
Words and timings
IsADemocratizingAssetHmmWellNowWeHaveReasonToTrustAllThesePrivateCompaniesWhatDoYouMakeKeithOfThisWeekAboutWeAlwaysTalkAboutTheWackyRacesOnThisShowBecauseEveryWeekOneBigCompanyOrOtherOrOneStartupOrAnotherSeemsToBeAheadIReadACoupleOf
Speaker 2
Pieces I Couldn't Find Them Actually For This Week But There Were A Couple Of
Words and timings
PiecesICouldn'tFindThemActuallyForThisWeekButThereWereACoupleOf
Speaker 3
Pieces That Suggested And You Always Find This On Big Weeks In The Market That Something As changed in the long term. Do you think that the Google numbers, the Meta numbers, the Amazon numbers, what do they tell us about the long term trend in the wacky races between these big tech companies?
Words and timings
PiecesThatSuggestedAndYouAlwaysFindThisOnBigWeeksInTheMarketThatSomethingAschangedinthelongterm.DoyouthinkthattheGooglenumbers,theMetanumbers,theAmazonnumbers,whatdotheytellusaboutthelongtermtrendinthewackyracesbetweenthesebigtechcompanies?
Speaker 2
I do think there's a kind of a differentiation between them. I think if you take Meta's numbers, they're a sign of its indecision and its attempt to correct its course. and so it's spending more for less than the other three because it's having to reorientate the company to a certain extent and it's not really a player. So it got hammered. I think Microsoft through the deal they did with OpenAI last week has released OpenAI to be a more prolific partner across the whole industry and Microsoft's Azure revenues Which Are Heavily Subsidizing OpenAI And Therefore Shrinking Microsoft Margins Will Suffer Through That Decision But It Was Probably Inevitable But They'll Get It Back Because They Own About 30% Of OpenAI 20-30% Of OpenAI I Think Amazon Is The Big Winner Because OpenAI Can Now Spend Money With Amazon And Is Doing As Anthropic Is As Well And Then Google Is Probably The Biggest Winner Of All Because Google Is Successfully Navigating The Path From A Search Engine Advertising Company To An AI Company Very Very Well Whilst Preserving Its Revenues From Advertising Even Though At The Gross Margin Level Is Being Impacted It Is Doing Very Well And Then Of Course The Hidden to Anthropic and OpenAI because they're not public and probably SpaceX should be included in that. So those three are kind of hidden. They're even bigger winners, especially Anthropic and OpenAI. It's just not visible to us yet. It will become visible once they list.
Words and timings
Idothinkthere'sakindofadifferentiationbetweenthem.IthinkifyoutakeMeta'snumbers,they'reasignofitsindecisionanditsattempttocorrectitscourse.andsoit'sspendingmoreforlessthantheotherthreebecauseit'shavingtoreorientatethecompanytoacertainextentandit'snotreallyaplayer.Soitgothammered.IthinkMicrosoftthroughthedealtheydidwithOpenAIlastweekhasreleasedOpenAItobeamoreprolificpartneracrossthewholeindustryandMicrosoft'sAzurerevenuesWhichAreHeavilySubsidizingOpenAIAndThereforeShrinkingMicrosoftMarginsWillSufferThroughThatDecisionButItWasProbablyInevitableButThey'llGetItBackBecauseTheyOwnAbout30%OfOpenAI20-30%OfOpenAIIThinkAmazonIsTheBigWinnerBecauseOpenAICanNowSpendMoneyWithAmazonAndIsDoingAsAnthropicIsAsWellAndThenGoogleIsProbablyTheBiggestWinnerOfAllBecauseGoogleIsSuccessfullyNavigatingThePathFromASearchEngineAdvertisingCompanyToAnAICompanyVeryVeryWellWhilstPreservingItsRevenuesFromAdvertisingEvenThoughAtTheGrossMarginLevelIsBeingImpactedItIsDoingVeryWellAndThenOfCourseTheHiddentoAnthropicandOpenAIbecausethey'renotpublicandprobablySpaceXshouldbeincludedinthat.Sothosethreearekindofhidden.They'reevenbiggerwinners,especiallyAnthropicandOpenAI.It'sjustnotvisibletousyet.Itwillbecomevisibleoncetheylist.
Speaker 3
We will see. I Tend To Agree With You On Anthropic I'm Much Less Bullish On Open AI But We Won't Relitigate That One Keith We Often Talk About It Mentioned The Advertising Industry There Was A Very Good Piece In The Financial Times On What They Were Calling The End Of The Road For The Madman Not The Mad Max For The Madman As AI Moves Into Advertising People Always Talk About Porn Being The So To Speak Canary In The Coal Mine When It Comes To The Future Of Tech And Economics But It May Be Advertising What'S Happening In The Advertising Industry Keith As AI Moves Into It Google And Facebook Of Course Were Always The Leading Players But Will There Be Any Advertising Companies In An AI Age Or Just A Small Collection Of High End Boutiques
Words and timings
Wewillsee.ITendToAgreeWithYouOnAnthropicI'mMuchLessBullishOnOpenAIButWeWon'tRelitigateThatOneKeithWeOftenTalkAboutItMentionedTheAdvertisingIndustryThereWasAVeryGoodPieceInTheFinancialTimesOnWhatTheyWereCallingTheEndOfTheRoadForTheMadmanNotTheMadMaxForTheMadmanAsAIMovesIntoAdvertisingPeopleAlwaysTalkAboutPornBeingTheSoToSpeakCanaryInTheCoalMineWhenItComesToTheFutureOfTechAndEconomicsButItMayBeAdvertisingWhat'SHappeningInTheAdvertisingIndustryKeithAsAIMovesIntoItGoogleAndFacebookOfCourseWereAlwaysTheLeadingPlayersButWillThereBeAnyAdvertisingCompaniesInAnAIAgeOrJustASmallCollectionOfHighEndBoutiques
Speaker 2
Well, you know, I think the video I put in the editorial this week was produced by me using Claude and a system called Sea Dance, which is a Chinese video.
Words and timings
Well,youknow,IthinkthevideoIputintheeditorialthisweekwasproducedbymeusingClaudeandasystemcalledSeaDance,whichisaChinesevideo.
Speaker 3
You know, you're not getting banned on YouTube when your title is Handjob and you have an attractive woman on the cover. You're not going to... There is a subtitle that is meant to offset... Well, the subtitle is very, very small. All I see is Handjob, but go on. Maybe I have a one-track mind.
Words and timings
Youknow,you'renotgettingbannedonYouTubewhenyourtitleisHandjobandyouhaveanattractivewomanonthecover.You'renotgoingto...Thereisasubtitlethatismeanttooffset...Well,thesubtitleisvery,verysmall.AllIseeisHandjob,butgoon.MaybeIhaveaone-trackmind.
Speaker 2
Well, I knew that. That was what encouraged me to stick with that title.
Words and timings
Well,Iknewthat.Thatwaswhatencouragedmetostickwiththattitle.
Speaker 3
Sticky title, right?
Words and timings
Stickytitle,right?
Speaker 2
Yeah. You know, when I publish this on Substack, they do a title test and I put three titles in and it tells me which is the one that people click on the most and that becomes the title.
Words and timings
Yeah.Youknow,whenIpublishthisonSubstack,theydoatitletestandIputthreetitlesinandittellsmewhichistheonethatpeopleclickonthemostandthatbecomesthetitle.
Speaker 3
I didn't know that. So they tell you which is the best. They give you a handjob themselves or three handjobs.
Words and timings
Ididn'tknowthat.Sotheytellyouwhichisthebest.Theygiveyouahandjobthemselvesorthreehandjobs.
Speaker 2
Exactly. And now I've forgotten your question.
Words and timings
Exactly.AndnowI'veforgottenyourquestion.
Speaker 2
The Question Was About The Future Of Advertising Advertising Is Probably After Coding The Next Big Impact Of AI Firstly Design Is Pretty Much A Solved Issue Now
Words and timings
TheQuestionWasAboutTheFutureOfAdvertisingAdvertisingIsProbablyAfterCodingTheNextBigImpactOfAIFirstlyDesignIsPrettyMuchASolvedIssueNow
Speaker 3
Design Of Anything You Got Into Your Handjob Thing Because You Were Talking About How You Produce This Semi Pornographic Video Video With A Pornographic Title Yourself You Didn't Need To Go To An Expensive Video Marketing Boutique But But You Know An Individual Idea
Words and timings
DesignOfAnythingYouGotIntoYourHandjobThingBecauseYouWereTalkingAboutHowYouProduceThisSemiPornographicVideoVideoWithAPornographicTitleYourselfYouDidn'tNeedToGoToAnExpensiveVideoMarketingBoutiqueButButYouKnowAnIndividualIdea
Speaker 2
Person Can Create A Design For Anything If They Can Describe It And Get An End Result In Minutes If Not Hours That Would Have Cost A Lot Of Money To Agencies In The Past
Words and timings
PersonCanCreateADesignForAnythingIfTheyCanDescribeItAndGetAnEndResultInMinutesIfNotHoursThatWouldHaveCostALotOfMoneyToAgenciesInThePast
Speaker 3
Yeah, and of course Canva is doing very well and Anthropic threw their hat into the design ring a couple of weeks ago. So the big players are involved as well. Big tech.
Words and timings
Yeah,andofcourseCanvaisdoingverywellandAnthropicthrewtheirhatintothedesignringacoupleofweeksago.Sothebigplayersareinvolvedaswell.Bigtech.
Speaker 2
Well, so if you take an average advertising agency like WPP as a bunch of suits facing off to customers and then filtering through to a bunch of creatives, you know, what the customer needs are, you're now at the point where The Customer Themselves Can Articulate Their Needs And Get Back Material Using AI Without Paying Anybody Else And So You Really Are At The Point Where The Advertising Agency Is Mainly Going To Be A Distribution Agency Doing The Operational Side And That That's The First Part Of My Editorial Really Which Is Who Which Human You Know Kind Of Types Survive This And My My Answer Is Leadership Creatives And Operators But Specialists You Know Get Replaced And Now The Specialists Can Still Be Working For The Companies But They're Going To Use AI To Scale Themselves So You Can Have A Hundred Advertising Agencies Working For You In AI You Know For The Same Price As One So, you know, it's a threatened, it's not a threatened discipline, it's threatened at a level of does it need humans and how many does it need and what kind of humans does it need?
Words and timings
Well,soifyoutakeanaverageadvertisingagencylikeWPPasabunchofsuitsfacingofftocustomersandthenfilteringthroughtoabunchofcreatives,youknow,whatthecustomerneedsare,you'renowatthepointwhereTheCustomerThemselvesCanArticulateTheirNeedsAndGetBackMaterialUsingAIWithoutPayingAnybodyElseAndSoYouReallyAreAtThePointWhereTheAdvertisingAgencyIsMainlyGoingToBeADistributionAgencyDoingTheOperationalSideAndThatThat'sTheFirstPartOfMyEditorialReallyWhichIsWhoWhichHumanYouKnowKindOfTypesSurviveThisAndMyMyAnswerIsLeadershipCreativesAndOperatorsButSpecialistsYouKnowGetReplacedAndNowTheSpecialistsCanStillBeWorkingForTheCompaniesButThey'reGoingToUseAIToScaleThemselvesSoYouCanHaveAHundredAdvertisingAgenciesWorkingForYouInAIYouKnowForTheSamePriceAsOneSo,youknow,it'sathreatened,it'snotathreateneddiscipline,it'sthreatenedatalevelofdoesitneedhumansandhowmanydoesitneedandwhatkindofhumansdoesitneed?
Speaker 3
Yeah, and if it's an interesting and I think an important piece, don't put your daughter or son into advertising, I would Certainly Advised A Lot Of Liberal Arts Graduates From These Expensive Colleges In America Can't Think Of Anything Else To Do So They All Want To Go Into Marketing But I'm Not Sure What They're Going To Do When The Marketing Jobs Dry Out Keith
Words and timings
Yeah,andifit'saninterestingandIthinkanimportantpiece,don'tputyourdaughterorsonintoadvertising,IwouldCertainlyAdvisedALotOfLiberalArtsGraduatesFromTheseExpensiveCollegesInAmericaCan'tThinkOfAnythingElseToDoSoTheyAllWantToGoIntoMarketingButI'mNotSureWhatThey'reGoingToDoWhenTheMarketingJobsDryOutKeith
Speaker 2
Well They Can Use You Know I Think When Sam Altman This Week Said It's The Revenge Of The Idea Guy And He Recalled Us And You Will Empathize With This Andrew Because It's Been You And Me Have Both Been Through This In The Past An Idea Guy Came Up With An Idea And Said I Need Some Engineers To Help Me Implement It And That's True In Physical Or Digital Creativity And Many Of Our Ideas Never Saw The Light Of Day Because We Couldn't Afford To Get The Engineers To Help Us Build It Now You Can And So Suddenly The Idea Guy Instead Of Being This Frustrated Creative Can Actually Lean In And Make Things Happen And That'S Going To Change The The You Know How Many Things Get Made And You Know You Know Our Experience Of That As Receivers As Consumers Is Going To Be An Abundance Of Choice Back To Abundancy
Words and timings
WellTheyCanUseYouKnowIThinkWhenSamAltmanThisWeekSaidIt'sTheRevengeOfTheIdeaGuyAndHeRecalledUsAndYouWillEmpathizeWithThisAndrewBecauseIt'sBeenYouAndMeHaveBothBeenThroughThisInThePastAnIdeaGuyCameUpWithAnIdeaAndSaidINeedSomeEngineersToHelpMeImplementItAndThat'sTrueInPhysicalOrDigitalCreativityAndManyOfOurIdeasNeverSawTheLightOfDayBecauseWeCouldn'tAffordToGetTheEngineersToHelpUsBuildItNowYouCanAndSoSuddenlyTheIdeaGuyInsteadOfBeingThisFrustratedCreativeCanActuallyLeanInAndMakeThingsHappenAndThat'SGoingToChangeTheTheYouKnowHowManyThingsGetMadeAndYouKnowYouKnowOurExperienceOfThatAsReceiversAsConsumersIsGoingToBeAnAbundanceOfChoiceBackToAbundancy
Speaker 3
Let's End With Some Education It's Always People Are Deeply Fearful Of The Impact Of All This Tech On Our Children We're Paranoid About Our Kids These Days There Was A Big New Yorker Piece By Jessica Winter What Will It Take To Get AI Out Of Schools I Think You And I Keith We Don't Always Agree On Everything But We're Both Astonished By That Given Why Would You Want To Get AI Out Of Schools Why Would You Not Want To Equip Kids With The Technology That Will Enable Them To Be Competitive In The Workplace Well What Do You Make Of These Kind Of Articles In The New Yorker Which Is You Know Read By Everyone In New York City And Brooklyn And All The Rest Of The Liberal
Words and timings
Let'sEndWithSomeEducationIt'sAlwaysPeopleAreDeeplyFearfulOfTheImpactOfAllThisTechOnOurChildrenWe'reParanoidAboutOurKidsTheseDaysThereWasABigNewYorkerPieceByJessicaWinterWhatWillItTakeToGetAIOutOfSchoolsIThinkYouAndIKeithWeDon'tAlwaysAgreeOnEverythingButWe'reBothAstonishedByThatGivenWhyWouldYouWantToGetAIOutOfSchoolsWhyWouldYouNotWantToEquipKidsWithTheTechnologyThatWillEnableThemToBeCompetitiveInTheWorkplaceWellWhatDoYouMakeOfTheseKindOfArticlesInTheNewYorkerWhichIsYouKnowReadByEveryoneInNewYorkCityAndBrooklynAndAllTheRestOfTheLiberal
Speaker 2
Progressive Coastal Enclaves I Think It's Symptomatic Of A Particular Use Case Of AI That For Those People Is The Only Use Case And That Is That They See AI As A Chat Bot That They Ask Questions Of And Their Nightmare Scenario Is That Children Don't Think Anymore Because They Just Get The Chat Bot To Tell Them The Answers To Questions Or To Write For Them And Then To Execute On It So The Idea Is That You Get This Passive Human Leveraging AI To Not Have To Do Anything And Therefore Their Brain Will Deteriorate Because They Will Never Have To Use It Now That Is Not How AI Works Anymore That Might Have Been A Little Bit True Two Years Ago When AI First Came On The Scene But Anyone That Is Properly Using AI For Any Purpose Now Knows That You Tell AI What You Want It will interact with you to improve your idea if you ask it to, or it'll just take your idea if you ask it to do that. It will then give you a plan and carry out the work derived from the plan. And then you'll judge what it gives you and you'll tweak it. And you're really in control. Not only are you not a passive victim, you're an active user with outcomes in mind. So If Schools Understand That They Will Embrace AI I Think What We Will Get Is A
Words and timings
ProgressiveCoastalEnclavesIThinkIt'sSymptomaticOfAParticularUseCaseOfAIThatForThosePeopleIsTheOnlyUseCaseAndThatIsThatTheySeeAIAsAChatBotThatTheyAskQuestionsOfAndTheirNightmareScenarioIsThatChildrenDon'tThinkAnymoreBecauseTheyJustGetTheChatBotToTellThemTheAnswersToQuestionsOrToWriteForThemAndThenToExecuteOnItSoTheIdeaIsThatYouGetThisPassiveHumanLeveragingAIToNotHaveToDoAnythingAndThereforeTheirBrainWillDeteriorateBecauseTheyWillNeverHaveToUseItNowThatIsNotHowAIWorksAnymoreThatMightHaveBeenALittleBitTrueTwoYearsAgoWhenAIFirstCameOnTheSceneButAnyoneThatIsProperlyUsingAIForAnyPurposeNowKnowsThatYouTellAIWhatYouWantItwillinteractwithyoutoimproveyourideaifyouaskitto,orit'lljusttakeyourideaifyouaskittodothat.Itwillthengiveyouaplanandcarryouttheworkderivedfromtheplan.Andthenyou'lljudgewhatitgivesyouandyou'lltweakit.Andyou'rereallyincontrol.Notonlyareyounotapassivevictim,you'reanactiveuserwithoutcomesinmind.SoIfSchoolsUnderstandThatTheyWillEmbraceAIIThinkWhatWeWillGetIsA
Speaker 3
High End Of Montessori Waldorf Educated Kids Of The New Rich Of The New Tech Rich Growing Up Without AI Will Create A Parallel Analog Economy The Equivalent Of Vinyl Records These Days But I'm Not Sure It's Going To Subsidize An Entire Generation It's Weird That Americans Don't Trust AI And Yet They're Using It More And More There Was An Interesting Wall Street Journal Piece About How YouTube Took Over The American Classroom The Increasing Commercial Success Of YouTube Is Also Driving Google's Stock Price What's Happening Keith Why On The One Hand Does Nobody Trust Tech In America And Yet On The Other Hand Everyone's Using It All The Time
Words and timings
HighEndOfMontessoriWaldorfEducatedKidsOfTheNewRichOfTheNewTechRichGrowingUpWithoutAIWillCreateAParallelAnalogEconomyTheEquivalentOfVinylRecordsTheseDaysButI'mNotSureIt'sGoingToSubsidizeAnEntireGenerationIt'sWeirdThatAmericansDon'tTrustAIAndYetThey'reUsingItMoreAndMoreThereWasAnInterestingWallStreetJournalPieceAboutHowYouTubeTookOverTheAmericanClassroomTheIncreasingCommercialSuccessOfYouTubeIsAlsoDrivingGoogle'sStockPriceWhat'sHappeningKeithWhyOnTheOneHandDoesNobodyTrustTechInAmericaAndYetOnTheOtherHandEveryone'sUsingItAllTheTime
Speaker 2
I think if you bifurcated that by age, what you'd find is that the younger people are completely embracing it. And it's the older people who are ambiguous. And then there's a spectrum in the middle. I think among young people, and YouTube's a great example of that.
Words and timings
Ithinkifyoubifurcatedthatbyage,whatyou'dfindisthattheyoungerpeoplearecompletelyembracingit.Andit'stheolderpeoplewhoareambiguous.Andthenthere'saspectruminthemiddle.Ithinkamongyoungpeople,andYouTube'sagreatexampleofthat.
Speaker 3
I'm a young person and you're an old person, I think, in this equivalence.
Words and timings
I'mayoungpersonandyou'reanoldperson,Ithink,inthisequivalence.
Speaker 2
Yeah, but we act as we act. You did get that joke. I did get that joke. I chose to move on and not react. But it is the case that young Americans are embracing AI more and more. I have three boys. I talk to all of them. I'd say the ones either in work or education, which is two of them, use it a lot. The one who is more creative, Uses It Less At The Moment Because It Doesn't Help Him In What He Wants To Do As Much As He Would Want It To But They All Use It A Lot And None Of Them Have Negative Views About It
Words and timings
Yeah,butweactasweact.Youdidgetthatjoke.Ididgetthatjoke.Ichosetomoveonandnotreact.ButitisthecasethatyoungAmericansareembracingAImoreandmore.Ihavethreeboys.Italktoallofthem.I'dsaytheoneseitherinworkoreducation,whichistwoofthem,useitalot.Theonewhoismorecreative,UsesItLessAtTheMomentBecauseItDoesn'tHelpHimInWhatHeWantsToDoAsMuchAsHeWouldWantItToButTheyAllUseItALotAndNoneOfThemHaveNegativeViewsAboutIt
Speaker 3
Yeah, I mean, one wonders what this whole generation, if these kids are going to school, they're not being asked where they go to school. And if they're growing up without AI, if they're going to their expensive private schools in Sonoma or San Francisco or Brooklyn or Washington, DC, and they're not getting AI, they're never going to forgive their parents. What are they going to tell you? It's going to be
Words and timings
Yeah,Imean,onewonderswhatthiswholegeneration,ifthesekidsaregoingtoschool,they'renotbeingaskedwheretheygotoschool.Andifthey'regrowingupwithoutAI,ifthey'regoingtotheirexpensiveprivateschoolsinSonomaorSanFranciscoorBrooklynorWashington,DC,andthey'renotgettingAI,they'renevergoingtoforgivetheirparents.Whataretheygoingtotellyou?It'sgoingtobe
Speaker 2
They'll Sue Their Parents Yeah Yeah I Think This Is An Enduring Theme You Know We Have Friends Who Didn't Have TVs At Home And Wouldn't Let Their Kids Do Video Games And When Those Kids Come To Our House They Actually Get Addicted More Than Kids Who
Words and timings
They'llSueTheirParentsYeahYeahIThinkThisIsAnEnduringThemeYouKnowWeHaveFriendsWhoDidn'tHaveTVsAtHomeAndWouldn'tLetTheirKidsDoVideoGamesAndWhenThoseKidsComeToOurHouseTheyActuallyGetAddictedMoreThanKidsWho
Speaker 3
For Whom These Probably Look At Your Screen And See Handjob And They Don't Get That In Their Other Palo Alto Homes Do They Parents Who Put Up
Words and timings
ForWhomTheseProbablyLookAtYourScreenAndSeeHandjobAndTheyDon'tGetThatInTheirOtherPaloAltoHomesDoTheyParentsWhoPutUp
Speaker 2
What's your bet, Andrew, when I do the voting on Substack? Does that title survive or does it get replaced with a different... Well,
Words and timings
What'syourbet,Andrew,whenIdothevotingonSubstack?Doesthattitlesurviveordoesitgetreplacedwithadifferent...Well,
Speaker 3
what's the alternatives? What are the other two?
Words and timings
what'sthealternatives?Whataretheothertwo?
Speaker 2
I'll make them up. Maybe one of them will be flipping around the subtitle and the title to reverse.
Words and timings
I'llmakethemup.Maybeoneofthemwillbeflippingaroundthesubtitleandthetitletoreverse.
Speaker 3
You mean Job Hand?
Words and timings
YoumeanJobHand?
Speaker 2
No, flipping around. The subtitle is...
Words and timings
No,flippingaround.Thesubtitleis...
Speaker 3
The subtitle is The End of Typed and Touched Input. That's a bit boring, yeah. Well, you'll have to come up with some alternatives. Anyway, this is the best you're going to get as a hand job, all you That Was The Week and keen on America viewers. Interesting conversation, Keith. I still don't think, and maybe we'll come back to this in future issues. I'm not sure we really exactly Answered Signals Question About What It Means If Big Tech A Tiny Group Of Big Tech Companies Build The Foundational Mechanics Of AGI You Seem To Think That That's Democratic Anyway Because The Market Is Democratic And So It Reflects The Popular Will I'm Not So Sure But We Will Come Back To That Good Conversation That Was My Hand Job Of The Week From Keith Teare Down In Hello Alto The Heart Of Hand Job Territory Keith Have A Good Week And We Will Talk Again Next Week Hands Hands For Those People Listening Keith Just Showed Us His Beautiful Hands We'll See Them Again Next Week Keith Keep Well Bye So As I Was
Words and timings
ThesubtitleisTheEndofTypedandTouchedInput.That'sabitboring,yeah.Well,you'llhavetocomeupwithsomealternatives.Anyway,thisisthebestyou'regoingtogetasahandjob,allyouThatWasTheWeekandkeenonAmericaviewers.Interestingconversation,Keith.Istilldon'tthink,andmaybewe'llcomebacktothisinfutureissues.I'mnotsurewereallyexactlyAnsweredSignalsQuestionAboutWhatItMeansIfBigTechATinyGroupOfBigTechCompaniesBuildTheFoundationalMechanicsOfAGIYouSeemToThinkThatThat'sDemocraticAnywayBecauseTheMarketIsDemocraticAndSoItReflectsThePopularWillI'mNotSoSureButWeWillComeBackToThatGoodConversationThatWasMyHandJobOfTheWeekFromKeithTeareDownInHelloAltoTheHeartOfHandJobTerritoryKeithHaveAGoodWeekAndWeWillTalkAgainNextWeekHandsHandsForThosePeopleListeningKeithJustShowedUsHisBeautifulHandsWe'llSeeThemAgainNextWeekKeithKeepWellByeSoAsIWas
Speaker 1
Saying Let's Make Sure The Client Knows We're Available Next Week But Keep The Language Open Actually Let's Rephrase That Last Part To Sound A Bit More Collaborative Thanks
Words and timings
SayingLet'sMakeSureTheClientKnowsWe'reAvailableNextWeekButKeepTheLanguageOpenActuallyLet'sRephraseThatLastPartToSoundABitMoreCollaborativeThanks