Latest / Connor with Honor: AI, Real Estate and Real Life / OpenAI's 5% Offer to the Government, 87,714 AI Job Cuts, and a Robot for Your House

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OpenAI's 5% Offer to the Government, 87,714 AI Job Cuts, and a Robot for Your House · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Well, it's eight fourteen in the morning, Pacific Standard Time.
• 0:02
  SPEAKER_00: Today's Friday, july seventeenth, twenty twenty six, and in the last ten days, the AI world dropped more news than most industries see in an entire year.
• 0:11
  SPEAKER_00: Three of the biggest companies on Earth switched brand new AI models.
• 0:15
  SPEAKER_00: One of them launched today, and OpenAI floated, giving the United States government a piece of the company.
• 0:22
  SPEAKER_00: OpenAI is also building a strange little robot for your house.
• 0:26
  SPEAKER_00: Layoffs blamed on AI hit a number we haven't seen ever before.
• 0:31
  SPEAKER_00: And smart people in finance are now saying the whole thing looks like a bubble.
• 0:35
  SPEAKER_00: So let's take it one piece at a time.
• 0:37
  SPEAKER_00: Both sides, truth in the middle.
• 0:39
  SPEAKER_00: And then where this goes, one month out, six months out, a year out, and then five years out.
• 0:45
  SPEAKER_00: We'll try to get there as soon as we can.
• 0:47
  SPEAKER_00: That last part matters most.
• 0:49
  SPEAKER_00: It's not moving in a straight line, it's moving on a curve that bends up faster and faster.
• 0:55
  SPEAKER_00: Wrapping your head around that curve is the whole game.
• 0:58
  SPEAKER_00: Let's get into it.
• 0:59
  SPEAKER_00: First up, the flood of new models.
• 1:02
  SPEAKER_00: In the span of about a week, three giants shipped.
• 1:05
  SPEAKER_00: OpenAI put out a new family called GPT 5.6.
• 1:09
  SPEAKER_00: Three sizes.
• 1:10
  SPEAKER_00: They name them Luna, Terra, and Soul.
• 1:14
  SPEAKER_00: Small, medium, and large.
• 1:16
  SPEAKER_00: Elon's company, Elon Musk, XAI, opened up Grok 4.5 to the public.
• 1:20
  SPEAKER_00: Grok rhymes with ROC.
• 1:22
  SPEAKER_00: And today, right now, Google is launching Gemini 3.5 Pro.
• 1:26
  SPEAKER_00: Gemini is said, like Jim and I, Anthropic, said the company behind Claude, also rolled out the newest model, Claude Sonnet 5.
• 1:37
  SPEAKER_00: In this same stretch, two words you're going to keep hearing.
• 1:40
  SPEAKER_00: The first is tokens.
• 1:42
  SPEAKER_00: A token is just a chunk of text, roughly three-quarters of a single word.
• 1:47
  SPEAKER_00: When these companies talk about price per million tokens, they mean the cost to read or write about 750,000 words.
• 1:56
  SPEAKER_00: GPT 5.6 runs from$1 to$5 for a million words input.
• 2:02
  SPEAKER_00: And that's dirt cheap compared to what it cost a year ago.
• 2:05
  SPEAKER_00: The second word is the context window.
• 2:07
  SPEAKER_00: That's how much AI can hold in its head at one time.
• 2:11
  SPEAKER_00: These new models hold about 1 to 2 million tokens.
• 2:15
  SPEAKER_00: Gemini 3.5 Pro is reported to hold 2 million.
• 2:19
  SPEAKER_00: That's like handing the AI 15 full novels at once and it remembers all of them while it answers your questions.
• 2:28
  SPEAKER_00: Both sides, the bull case.
• 2:30
  SPEAKER_00: The tools are smarter, cheaper, and they handle way more at once.
• 2:33
  SPEAKER_00: What cost a fortune last year is close to free this year.
• 2:38
  SPEAKER_00: For a small business owner, that's definitely rocket fuel.
• 2:42
  SPEAKER_00: The bear case.
• 2:43
  SPEAKER_00: A new model drops every week.
• 2:45
  SPEAKER_00: Half of them are not even confirmed by the companies.
• 2:48
  SPEAKER_00: They leak out first.
• 2:49
  SPEAKER_00: Google reportedly scrapped its first version of Gemini 3.5 and rebuilt it because it kept breaking on hard tasks.
• 2:57
  SPEAKER_00: And when every model is about as good as the next one, none of them are special.
• 3:01
  SPEAKER_00: That's called commoditization.
• 3:04
  SPEAKER_00: The product becomes a plain commodity like bottled water.
• 3:08
  SPEAKER_00: Nobody pays extra for plain water.
• 3:10
  SPEAKER_00: Well, you'd be surprised apparently, but I'll leave you with that.
• 3:14
  SPEAKER_00: The truth, both are right.
• 3:15
  SPEAKER_00: The tools really are getting better fast.
• 3:17
  SPEAKER_00: And the differences between them are getting smaller.
• 3:20
  SPEAKER_00: The real winner is not any one company.
• 3:22
  SPEAKER_00: The winner is us.
• 3:24
  SPEAKER_00: We get near genius level help for our pocket change.
• 3:27
  SPEAKER_00: Now, where it goes.
• 3:28
  SPEAKER_00: One month from now, Google and OpenAI trade blows on the scoreboard.
• 3:32
  SPEAKER_00: Back and forth.
• 3:33
  SPEAKER_00: Six months.
• 3:34
  SPEAKER_00: Price to use these keep falling.
• 3:37
  SPEAKER_00: One year most people stop caring which brand they use.
• 3:40
  SPEAKER_00: The way you stop caring which company made the electricity coming into your house.
• 3:45
  SPEAKER_00: In five years, this kind of intelligence is baked into everything.
• 3:48
  SPEAKER_00: It's invisible.
• 3:49
  SPEAKER_00: It's like a spell check you never even think about.
• 3:53
  SPEAKER_00: And the next one's strange.
• 3:54
  SPEAKER_00: OpenAI, the maker of ChatGPT, is reportedly getting ready to go public.
• 3:59
  SPEAKER_00: That means selling shares on the stock market.
• 4:01
  SPEAKER_00: Private investors already value the company around$850 billion, close to a trillion.
• 4:08
  SPEAKER_00: OpenAI reportedly proposed handing the United States government a 5% equity share in their company, a stake.
• 4:16
  SPEAKER_00: At today's value, that piece would be worth around$42 billion.
• 4:20
  SPEAKER_00: The CEO, Sam Altman, framed it as a way to share the upside of AI with the public.
• 4:25
  SPEAKER_00: And the plan floats the idea that other AI companies like Google and Anthropic would give the government a similar slice.
• 4:33
  SPEAKER_00: Both sides.
• 4:34
  SPEAKER_00: The case for it, AI is going to reshape the country, so let the country own a piece of the winnings.
• 4:40
  SPEAKER_00: If regular Americans benefit with these companies, when these companies win, that feels fair.
• 4:46
  SPEAKER_00: Altman's argument is don't let all the money pool at the top.
• 4:51
  SPEAKER_00: The case against it.
• 4:53
  SPEAKER_00: When the government owns a piece of one company, the company gets a stamp of approval that the others don't have.
• 4:59
  SPEAKER_00: An investor quoted by Axios called it a political move to win favor with the White House.
• 5:05
  SPEAKER_00: Not a real gift to the public.
• 5:07
  SPEAKER_00: A forester analyst named Indrali Bandopadya warned the other countries would then demand the same deal and start to distrust American AI companies as neutral.
• 5:21
  SPEAKER_00: The truth, follow the timing.
• 5:23
  SPEAKER_00: Open AI is about to rage huge, raise huge money on the stock market.
• 5:27
  SPEAKER_00: A friendly government makes that easier.
• 5:30
  SPEAKER_00: Whether this helps the public or just helps open AI depends on the fine print.
• 5:34
  SPEAKER_00: And we haven't seen the fine print.
• 5:37
  SPEAKER_00: Where it goes, well, one month, more leaks, lots of noise, probably no signed deal yet.
• 5:42
  SPEAKER_00: Six months, if it happens, expect a court fight or some hearing over whether it's fair.
• 5:47
  SPEAKER_00: One year this becomes a template, government and big AI all tied together, for better or for worse.
• 5:53
  SPEAKER_00: Five years we find out if a government stake made AI safer for people or just protected the biggest player from competition.
• 6:01
  SPEAKER_00: Watch this one closely because it sets the rules for everything else.
• 6:05
  SPEAKER_00: The next story, and this one lands close to home, a firm called Challenger, Gray and Christmas tracks layoffs.
• 6:13
  SPEAKER_00: In just five months of 2026, companies blamed AI for 87,714 job cuts for the whole year of 2025.
• 6:23
  SPEAKER_00: That number was 54,836.
• 6:26
  SPEAKER_00: So we already blew past last year in less than half the time.
• 6:30
  SPEAKER_00: Stanford researchers found something sharper.
• 6:33
  SPEAKER_00: Jobs for software developers aged 22 to 25, the youngest coders fell almost 20% since 2024.
• 6:41
  SPEAKER_00: The entry level doors closing on the exact field everybody told kids to go into.
• 6:46
  SPEAKER_00: Both sides.
• 6:47
  SPEAKER_00: Side one, AI is taking jobs.
• 6:50
  SPEAKER_00: The numbers real, companies are cutting and pointing at AI.
• 6:54
  SPEAKER_00: Side two, when laid-off workers were asked why they lost their jobs, only 1% said AI or automation.
• 7:02
  SPEAKER_00: Sam Altman himself admitted there's a quote, some AI washing.
• 7:07
  SPEAKER_00: That means bosses blaming AI for cuts they wanted to make anyway.
• 7:11
  SPEAKER_00: AI becomes the convenient excuse or a scapegoat because the robot, not because the boardroom.
• 7:18
  SPEAKER_00: And one more twist, a Gallup study found that 62% of people who got laid off were folks who barely used AI at all.
• 7:26
  SPEAKER_00: Once a year less.
• 7:28
  SPEAKER_00: The people using AI every day were more likely to keep their jobs.
• 7:32
  SPEAKER_00: The truth, AI is not coming for your job not yet.
• 7:37
  SPEAKER_00: A person using AI is coming for your job now.
• 7:40
  SPEAKER_00: The tool doesn't fire you.
• 7:43
  SPEAKER_00: The coworker who learned the tool and now does the work of three people using it.
• 7:48
  SPEAKER_00: That's the shift.
• 7:49
  SPEAKER_00: The danger is not the machine yet, but the danger is standing still, why the person next to you levels up.
• 7:56
  SPEAKER_00: Where it goes, one month, more headlines, more layoffs, stamped with AI, some real, some cover story.
• 8:02
  SPEAKER_00: Six months, state start reacting.
• 8:05
  SPEAKER_00: California already ordered a review of severance and unemployment rules for AI-driven cuts.
• 8:10
  SPEAKER_00: One year the real gap opens between AI users and non-users.
• 8:14
  SPEAKER_00: In pay and in job security, five years, whole job titles get rewritten.
• 8:20
  SPEAKER_00: And the people who adapted early are running things.
• 8:23
  SPEAKER_00: The move is simple.
• 8:24
  SPEAKER_00: Be the person who uses the tool, not the person it replaces.
• 8:28
  SPEAKER_00: Here's the next story.
• 8:30
  SPEAKER_00: The money behind the machine.
• 8:31
  SPEAKER_00: The biggest tech companies, Amazon, Google, Microsoft, and Meta, plan to spend about$725 billion this year building AI.
• 8:40
  SPEAKER_00: This is data center, chips, and power.
• 8:42
  SPEAKER_00: As a share of the whole US economy, that spending is bigger than the entire Apollo program that put men on the moon, bigger than the entire interstate highway system.
• 8:53
  SPEAKER_00: The worry has a name.
• 8:54
  SPEAKER_00: It's called Circular Deals.
• 8:56
  SPEAKER_00: Company A invests billions in Company B.
• 9:00
  SPEAKER_00: Then Company B turns around and spends the same money buying products from Company A.
• 9:04
  SPEAKER_00: The money goes in a circle.
• 9:06
  SPEAKER_00: But on paper it looks like booming demand.
• 9:09
  SPEAKER_00: But it might just be the same dollars running laps.
• 9:12
  SPEAKER_00: Here's a real example.
• 9:14
  SPEAKER_00: Anthropic raised a giant round of funding.
• 9:16
  SPEAKER_00: A chunk of it, about$15 billion, came from the same cloud companies.
• 9:20
  SPEAKER_00: It then promised to spend$100 billion with.
• 9:25
  SPEAKER_00: That's money in a circle.
• 9:26
  SPEAKER_00: So both sides.
• 9:28
  SPEAKER_00: Here's the optimist.
• 9:29
  SPEAKER_00: This is the real build out.
• 9:30
  SPEAKER_00: AI needs computers and power the same way the country once needed railroads and highways.
• 9:36
  SPEAKER_00: Big infrastructure always looks crazy expensive before it pays off.
• 9:41
  SPEAKER_00: The skeptics, this looks like a bubble.
• 9:43
  SPEAKER_00: When companies prop up each other's sales, demand looks bigger than it really is.
• 9:48
  SPEAKER_00: If one company blinks and cuts spending, the entire chain drops together.
• 9:53
  SPEAKER_00: Some analysts compare the risk to the 2008 financial crash, where everything was quietly tied to everything else.
• 10:01
  SPEAKER_00: The truth, both can be true at once.
• 10:04
  SPEAKER_00: The technology is real, and the overbuilding, that's also real.
• 10:09
  SPEAKER_00: Railroads were real too, and investors still got wiped out in the railroad crash.
• 10:13
  SPEAKER_00: A real revolution and a financial bubble are not opposites.
• 10:17
  SPEAKER_00: They often ride that same train where it goes.
• 10:20
  SPEAKER_00: In one month, spending keeps climbing, the announcements get bigger.
• 10:23
  SPEAKER_00: Six months, watch for the first big company to quietly trim its spending.
• 10:29
  SPEAKER_00: That's going to be the tell.
• 10:31
  SPEAKER_00: One year either the demand proves real and the money catches up or the cracks start showing.
• 10:38
  SPEAKER_00: Five years we will look back and know if 2026 was the railroad or the bubble.
• 10:43
  SPEAKER_00: Or as I believe, maybe both.
• 10:46
  SPEAKER_00: Next story, and this is where I live every day in my own business, is the big shift right now is not chatbots, it's agents.
• 10:54
  SPEAKER_00: A chatbot answers a question.
• 10:56
  SPEAKER_00: An agent actually does the work.
• 10:58
  SPEAKER_00: So you don't ask it to write the email.
• 11:01
  SPEAKER_00: You tell it to research the customer, write the email, schedule it, log it into your own system.
• 11:06
  SPEAKER_00: And you really don't even say all of that because you don't want to limit its ability to perform your goal.
• 11:12
  SPEAKER_00: So the goal is the most important, but it takes actions on its own.
• 11:17
  SPEAKER_00: The market is moving fast.
• 11:18
  SPEAKER_00: Gartner research firm said predicts that by the end of this year, 40% of the business software will have AI agents built in, up from 5% today.
• 11:28
  SPEAKER_00: Now companies say nearly four out of 10 already run more than 100 agents, both sides.
• 11:34
  SPEAKER_00: The promise.
• 11:35
  SPEAKER_00: An agent that does the busy work frees a one-person shop like mine to do the work of a whole team.
• 11:40
  SPEAKER_00: I use voice agents that answer my calls and book appointments while I sleep.
• 11:44
  SPEAKER_00: And that's not a demo, that's my Tuesday.
• 11:47
  SPEAKER_00: The danger, most of these agents are not secured.
• 11:50
  SPEAKER_00: In one survey, 88% of companies reported a confirmed or suspected AI agent security incident in the past year.
• 11:59
  SPEAKER_00: More than half of all agents run with no oversight and no logging at all.
• 12:03
  SPEAKER_00: There's no tracking, nobody's watching them.
• 12:05
  SPEAKER_00: And there's a brand new type of attack.
• 12:07
  SPEAKER_00: It's called prompt injection.
• 12:10
  SPEAKER_00: Because an agent reads text and then acts on it, a bad actor can hide secret instructions inside of a document or web page.
• 12:18
  SPEAKER_00: The agent reads the trap and follows the hidden order, like slipping a fake note into a trusted assistant stack of mail.
• 12:26
  SPEAKER_00: The truth, agents are the most useful and the most dangerous thing in AI right now.
• 12:31
  SPEAKER_00: At the same time, the power is real.
• 12:34
  SPEAKER_00: The guardrails are year behind, years behind the power.
• 12:37
  SPEAKER_00: And if you deploy one, you deploy it carefully with limits and you watch it.
• 12:41
  SPEAKER_00: Where it goes, one month, every software tool that bolts on to an agent feature, six months, the first big ugly public agent disaster hits the news, probably some sort of a data leak.
• 12:55
  SPEAKER_00: One year security catches up, agent oversight becomes a normal job title.
• 13:00
  SPEAKER_00: Five years you have a small team of agents working for you, and managing them is basically a life skill, like managing your email is today.
• 13:09
  SPEAKER_00: Now the strange little robot I mentioned at the top, OpenAI is building the first piece of hardware, not an app, a physical device for your home.
• 13:16
  SPEAKER_00: They teamed up with Johnny Ive.
• 13:19
  SPEAKER_00: And that's the designer behind the iPhone.
• 13:22
  SPEAKER_00: Well, here's what it reportedly is a small speaker with no screen.
• 13:26
  SPEAKER_00: You talk to it, it talks back, using Chat GPT's voice.
• 13:30
  SPEAKER_00: But it does more than just sit there.
• 13:32
  SPEAKER_00: It has a camera and sensors so it can see the room.
• 13:36
  SPEAKER_00: It has moving parts so it can turn the shift to feel alive, like a companion instead of a gadget.
• 13:43
  SPEAKER_00: And over time it learns your habits.
• 13:46
  SPEAKER_00: And even reads your emails to guess what you need before you ask.
• 13:49
  SPEAKER_00: Both sides, that's a dream.
• 13:51
  SPEAKER_00: The helper that lives in your kitchen, knows your schedule, runs your lights, answers your questions, and feels like a member of the family.
• 13:59
  SPEAKER_00: For a lot of people, that's comforting, especially folks living alone.
• 14:03
  SPEAKER_00: The nightmare.
• 14:05
  SPEAKER_00: You're putting a camera, microphone, and a thing that reads your email in the middle of your home always on, always watching, always learning.
• 14:13
  SPEAKER_00: That's a lot of trust to hand one company.
• 14:15
  SPEAKER_00: Apple is already suing, claiming OpenAI stole the idea, and the launch already slipped from 2026 to 2027.
• 14:24
  SPEAKER_00: The truth is the device trades your privacy for convenience.
• 14:28
  SPEAKER_00: That's the deal.
• 14:29
  SPEAKER_00: It's not good or bad on its own.
• 14:32
  SPEAKER_00: It comes down to how much of your private life you're willing to hand over to feel a little less alone and maybe a little more organized.
• 14:39
  SPEAKER_00: You get to decide that.
• 14:40
  SPEAKER_00: Just decide it on purpose with your eyes wide open.
• 14:45
  SPEAKER_00: Where this goes, well, one month most legal noise, probably, mostly legal noise.
• 14:50
  SPEAKER_00: Open AI and Apple in the headlines.
• 14:52
  SPEAKER_00: Six months, other companies race to announce their own home AI companions.
• 14:57
  SPEAKER_00: One year these things start landing in living rooms.
• 14:59
  SPEAKER_00: And the privacy fights get loud.
• 15:02
  SPEAKER_00: Five years an AI presence at the home is normal the way a smart speaker is normal today, and we barely remember the houses being quiet.
• 15:10
  SPEAKER_00: Well, last story.
• 15:11
  SPEAKER_00: And this one hides behind all the others.
• 15:13
  SPEAKER_00: All those data centers, the ones soaking up$725 billion this year, they run on electricity and a lot of it.
• 15:22
  SPEAKER_00: A single big AI data center can use as much power as a small city.
• 15:26
  SPEAKER_00: The power comes from the same grid that heats your home and runs your fridge and your AC.
• 15:31
  SPEAKER_00: This matters even if you never open ChatGPT.
• 15:35
  SPEAKER_00: When demand for electricity jumps, the price trends tend to climb up for everybody on that grid.
• 15:42
  SPEAKER_00: So the cost of the AI boom doesn't just land on the tech company's balance sheets.
• 15:47
  SPEAKER_00: Some of it can land on your utility bill.
• 15:50
  SPEAKER_00: Both sides.
• 15:51
  SPEAKER_00: Well, the upside, all this money is pouring into building new power, new plants, new lines, even new nuclear.
• 15:57
  SPEAKER_00: That is an investment in the grid that we've needed for decades.
• 16:01
  SPEAKER_00: Some of it will outlast the AI hype and help everybody.
• 16:04
  SPEAKER_00: The downside, in the short run, in the towns where these data centers land, neighbors are already seeing power bills tick up and asking who is really paying for this?
• 16:13
  SPEAKER_00: A boom for the company can feel like a squeeze of the mailbox.
• 16:16
  SPEAKER_00: The truth, the AI revolution is not floating in some cloud.
• 16:20
  SPEAKER_00: It's bolted to the power grid.
• 16:22
  SPEAKER_00: And the grid is physical and somebody pays for the electricity.
• 16:27
  SPEAKER_00: Follow the wires and you follow the real story.
• 16:30
  SPEAKER_00: Where it goes, one month, more data center announcements, and quiet on the cost.
• 16:35
  SPEAKER_00: Six months, more local fights over who pays for the new power.
• 16:39
  SPEAKER_00: One year, energy becomes the number one bottleneck for AI, bigger than chips.
• 16:44
  SPEAKER_00: Five years, the companies that solve cheap, clean power are the ones who won the entire race.
• 16:51
  SPEAKER_00: Let's zoom all the way out.
• 16:52
  SPEAKER_00: Forget the single source for a second.
• 16:54
  SPEAKER_00: Here's the whole board on the timeline.
• 16:56
  SPEAKER_00: One month from now, more models.
• 16:58
  SPEAKER_00: More noise, more layoff headlines.
• 17:00
  SPEAKER_00: It's going to feel loud and messy.
• 17:03
  SPEAKER_00: Don't let those noise, the noises, all of that, fool you into freezing up.
• 17:08
  SPEAKER_00: Six months from now, price, prices to use AI are going to keep falling.
• 17:13
  SPEAKER_00: The first real cracks show in the money and in agent security, and the split starts to get clear.
• 17:20
  SPEAKER_00: The people using these tools are pulling ahead of the people who are not.
• 17:23
  SPEAKER_00: One year from now, the brand of AI stops mattering to most normal people.
• 17:28
  SPEAKER_00: Agents, they're everywhere.
• 17:31
  SPEAKER_00: This is an AI, there is an AI device in a lot of living rooms.
• 17:36
  SPEAKER_00: And the government's role in these companies is getting decided in courtrooms and in hearings.
• 17:41
  SPEAKER_00: Five years from now, the intelligence is invisible and everywhere, like electricity, just humming along quietly.
• 17:50
  SPEAKER_00: Who's the whole job titles are going to be rewritten by that time?
• 17:54
  SPEAKER_00: There's an AI presence in most homes, and we will know looking back whether 2026 was the year of the great build-out, the great bubble, or both at the same time.
• 18:04
  SPEAKER_00: The thread through all of it, the curve bends up faster every month.
• 18:08
  SPEAKER_00: The gap between the people who use these tools and the people who watch from the sidelines is not staying the same.
• 18:14
  SPEAKER_00: It's widening every single day.
• 18:17
  SPEAKER_00: You do not have to be an expert.
• 18:19
  SPEAKER_00: You just have to not stand still.
• 18:22
  SPEAKER_00: That's the download for today.
• 18:24
  SPEAKER_00: My whole reason for doing the show is simple.
• 18:26
  SPEAKER_00: AI for everyone, not just the wealthy, not just the tech billionaires, not just the people that think it's going to be just wonderful and so exciting, but for the people that actually are paying attention that have to pay for medical insurance and worry about their mortgage payment and car insurance payment.
• 18:40
  SPEAKER_00: Not just the people with a computer science degree either, but for the plumber, hairstylist, veteran, restaurant owner, single mom, bus boy, you.
• 18:50
  SPEAKER_00: If any of this landed and you want to go deeper, want me to help you put this work together for your own business, come find me.
• 18:57
  SPEAKER_00: Just Google Connor with honor.
• 18:59
  SPEAKER_00: We'll connect.
• 19:00
  SPEAKER_00: I look forward to speaking with you.
• 19:02
  SPEAKER_00: Take care of each other, be safe out there, and I'll see you in the next one.
• 19:06
  SPEAKER_00: Have a fantastic day.