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Elon Musk Weekly News Update: Tesla, SpaceX, Neuralink, and More · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk Podcast.
• 0:05
  This is a show where we discuss the critical Crossroads, The
• 0:08
  Shape, SpaceX, Tesla X, The Boring Company, and Neuralink,
• 0:13
  and I'm your host, Will Walden. There's a company called BYD, or
• 0:17
  BIDE for short. It's a huge automotive company,
• 0:21
  and it's on the verge of surpassing Tesla as the global
• 0:26
  leader in EV sales. Now, this is a huge change in
• 0:30
  the EV market, and this means that China is increasing its
• 0:33
  influence in the global automotive sector.
• 0:37
  Now, despite the dominance of established auto brands like
• 0:40
  Toyota, Volkswagen, General Motors, Chinese companies,
• 0:44
  notably BYD and SAIC Motor Corp, have made significant strides in
• 0:49
  the industry. Now, China has recently
• 0:51
  surpassed the United States, South Korea and Germany in
• 0:54
  passenger car exports, contending with Japan for the
• 0:57
  global lead. Now this is attributed to the
• 1:00
  aggressive expansion of Chinese manufacturers in the EV world.
• 1:04
  It's no longer about the size or the legacy of the company, but
• 1:07
  rather the speed of innovation and iteration.
• 1:11
  BYDS proactive approach has set a new pace in the industry,
• 1:14
  compelling others to accelerate their own advancements, And the
• 1:18
  competition between Tesla's Elon Musk and Byds Wang is becoming
• 1:23
  increasingly evident. Musk's concerns over
• 1:26
  affordability contrast with Wang's aggressive marketing of
• 1:30
  more affordable models. Now this competition is
• 1:33
  reshaping the EV market, with BYD offering a broader range of
• 1:37
  accessible vehicles. Now.
• 1:39
  Musk acknowledged the competitiveness of their
• 1:40
  vehicles, a significant shift from his previous dismissive
• 1:44
  stance of the company. Now this change is due to Byd's
• 1:48
  remarkable progress in the EV sector, a realization of Wang's
• 1:52
  long term vision for the company, And despite Bide's
• 1:56
  domestic success, the company faces challenges in
• 1:59
  international markets. Trade tensions and potential
• 2:02
  tariffs in Europe and the US complicated global expansion.
• 2:06
  Now this is about geopolitical challenges that Chinese
• 2:09
  automakers face and exporting their models to foreign markets.
• 2:14
  Now this could be solved if they make plants in the United States
• 2:17
  or in Europe because they don't have to import anything to those
• 2:20
  countries. Then now, Wang, unlike Musk,
• 2:23
  maintains a low profile, avoiding social media and public
• 2:26
  appearances. However, his statements about
• 2:28
  Chinese brands challenging the status quo in the auto industry
• 2:32
  shows that he's confident in Byd's capabilities and the
• 2:35
  potential of the Chinese EV market.
• 2:37
  Warren Buffett has a stake in this, too.
• 2:40
  Berkshire Hathaway recognized Byd's potential early, investing
• 2:43
  significantly in the company. The payoff was substantial,
• 2:47
  reflecting the company's growth and success in the EV market.
• 2:50
  And Charlie Munger, the late Vice Chairman of Berkshire,
• 2:54
  viewed BYD primarily as a strategic battery.
• 2:57
  Investment praised the company's focus on crucial technological
• 3:00
  advancements in the EV sector, which has been pivotal in its
• 3:03
  growth. And Byte's journey began with
• 3:06
  the acquisition of a falling state owned automaker and the
• 3:10
  launch of its first plug in hybrid, the F3 DM.
• 3:14
  Early government subsidies in Byd's unique position as a
• 3:17
  battery manufacturer aided its growth in the nascent EV market.
• 3:22
  Mugger lauded Wang's leadership and engineering focus at BIDE,
• 3:25
  which played a crucial role in the company's development.
• 3:28
  This approach differentiated BIDE from its competitors and
• 3:31
  has been a key factor in the success of the company, and
• 3:34
  Bide's hiring of international talents such as Wolfgang, Edgar
• 3:38
  and other notable designers marked a shift in its approach
• 3:41
  to car design and quality. This move helped the company
• 3:44
  transition from producing basic models to more sophisticated
• 3:47
  Competition is fueled by government subsidies here and
• 3:50
  has been a major driver of innovation in China's EV market.
• 3:54
  This intense competitive environment is expected to
• 3:56
  propel Chinese manufacturers to a significant global market
• 4:00
  share by the end of the decade. And although Tesla currently
• 4:03
  surpasses BIDE in several financial metrics, analyst
• 4:06
  predicts that BIDE will close these gaps significantly in the
• 4:09
  near future. Now, this projection is based on
• 4:12
  the company's continued growth and innovation.
• 4:14
  Now, Wang's personal journey, though from a humble background
• 4:17
  to becoming a billionaire, mirrors kind of the rise of
• 4:21
  Biden. He has a relentless pursuit of
• 4:24
  growth and innovation, and it's been integral in Bide's success
• 4:28
  in its expansion in the global market.
• 4:31
  Now, Bide's strategy for maintaining its leadership
• 4:33
  position involves focusing on advanced tech, including
• 4:36
  automated driving technologies. However, the company faces very
• 4:40
  stiff competition for both established and emerging players
• 4:43
  in the EV market, such as Rivian and Tesla, of course.
• 4:46
  And Wang's response to whether BIDE could rival Toyota
• 4:49
  highlights the fluid nature of the EV industry.
• 4:51
  Its success will depend on technological advancement and
• 4:55
  market responsiveness. Move really fast, get these
• 4:58
  things out there as fast as possible and new tech to the
• 5:01
  market before anybody else. And this is how BIDE will
• 5:05
  maintain its competitive edge over companies like Tesla.
• 5:08
  And as BIDE assumes the leading position in the EV market,
• 5:12
  overtaking Tesla, that faces the challenges of reinventing itself
• 5:16
  over and over to stay ahead, constantly innovating.
• 5:19
  And this requires a shift in strategy from being a challenger
• 5:23
  to setting new benchmarks in the industry being better than
• 5:26
  everybody else constantly. Now they have an ability to
• 5:31
  innovate and adapt, and that will be crucial in defining its
• 5:35
  future trajectory in defeating Tesla to be the number one
• 5:39
  selling EV brand in the world. Hey, thank you so much for
• 5:43
  listening today. I really do appreciate your
• 5:45
  support. If you could take a second and
• 5:46
  hit the subscribe or the follow button on whatever podcast
• 5:49
  platform that you're listening on right now, I greatly
• 5:52
  appreciate it. It helps out the show
• 5:54
  tremendously and you'll never miss an episode.
• 5:57
  And each episode is about 10 minutes or less to get you
• 6:00
  caught up quickly. Please, if you want to support
• 6:03
  the show even more, go to patreon.com/stage Zero and
• 6:09
  please take care of yourselves and each other and I'll see you
• 6:12
  tomorrow. Over two years ago, the US
• 6:14
  government allocated $5 billion to construct a nationwide
• 6:19
  network of fast charging station for EVs.
• 6:22
  Now this initiative was part of a bipartisan infrastructure law
• 6:26
  aimed at alleviating range anxiety among potential electric
• 6:30
  vehicle buyers or EV buyers by ensuring accessible charging
• 6:33
  options for longer journeys. But despite these goals set by
• 6:37
  the government, the reality of establishing A widespread EV
• 6:40
  charging network has been a very slow process.
• 6:43
  And as of December 2023, only Ohio and New York have
• 6:47
  successfully opened charging stations under this new federal
• 6:50
  program. Now, a few other states have
• 6:52
  recently commenced their projects, planning to finish
• 6:55
  them by early 2024. Broadly available charging
• 6:59
  facilities are essential for meeting the Biden
• 7:01
  administration's objective of having E VS constitute half of
• 7:05
  all new car sales by 20-30. However, a significant barrier
• 7:09
  remains range anxiety or the fear of running out of power
• 7:12
  without access to a charging station, which is a major
• 7:15
  concern for many Americans considering an EV purchase.
• 7:18
  Now, to encourage EV adoption, the government has introduced
• 7:21
  incentives like tax credits up to $7500 and the promise of a
• 7:25
  comprehensive network of high speed chargers.
• 7:28
  And these chargers are expected to be conveniently located every
• 7:32
  50 miles along major roads and highways, offering reassurance
• 7:36
  to drivers about the availability of charging
• 7:38
  options. The White House's goal is to
• 7:41
  establish a minimum of 500,000 public chargers by 20-30.
• 7:45
  However, the National Renewable Energy Laboratory suggests that
• 7:49
  over 1,000,000 public charging ports may be necessary by the
• 7:52
  end of the decade to adequately support the growing number of
• 7:56
  EVs in the United States. Now, a representative from RMIA,
• 8:00
  nonprofit organization supporting the energy
• 8:03
  transition, emphasize the urgent need to accelerate the
• 8:06
  development of new charging infrastructure.
• 8:08
  And this urgency stems from the public perception of inadequate
• 8:12
  charging options, which hinders interests in EVs.
• 8:15
  And EV sales are increasing more rapidly than any other
• 8:19
  automobile category. And the Inflation Reduction Act,
• 8:22
  a significant climate law passed under President Biden, has
• 8:25
  further fueled investments in EV production.
• 8:28
  Nonetheless, the expected surge in demand for EVs hasn't
• 8:31
  materialized as anticipated. State officials, particularly in
• 8:36
  regions like Tennessee, have cited challenges in navigating
• 8:39
  new federal requirements and lack of prior experience in
• 8:43
  building chargers as reasons for slow rollout, and the process
• 8:47
  involves extensive planning and adherence to numerous federal
• 8:50
  stipulations before any construction can even start on
• 8:54
  this project. And the US Transportation
• 8:56
  Department has established strict rules for the program,
• 8:59
  including technological standards and operational
• 9:02
  requirements. Chargers must be located within
• 9:05
  a mile of an Interstate or a highway, maintaining operational
• 9:08
  status 97% of the time, and have at least 4 functional charging
• 9:13
  ports now. States have been granted
• 9:15
  flexibility in contract awarding and fund allocation, leading to
• 9:19
  varied progress levels across the country.
• 9:21
  Ohio, for instance, emerged as a leader by opening its first
• 9:25
  federally funded charger this month, with more stations
• 9:28
  planned in the near future. In contrast, most states lag
• 9:31
  behind Ohio and New York in their progress.
• 9:34
  Building a comprehensive charging network involves not
• 9:37
  just construction but also overcoming numerous bureaucratic
• 9:41
  and environmental review hurdles, a process that can span
• 9:45
  several years or possibly even a decade.
• 9:48
  And Tennessee's approach to building a charging system
• 9:51
  illustrates the complexity of the tasks, as it requires the
• 9:54
  charges to be continuously operational and meet specific
• 9:58
  power thresholds. Unlike simpler infrastructure
• 10:01
  projects like sidewalk construction or a road very
• 10:05
  basic, the states with less dense populations and limited
• 10:08
  existing charging infrastructure like Wyoming are facing
• 10:12
  additional delays as well. These states are currently
• 10:14
  gauging interest levels for utilizing federal funds, which
• 10:17
  can cover a substantial portion of the project costs.
• 10:20
  The types of connections for charging stations are also a key
• 10:24
  consideration. While the federal requirement is
• 10:26
  for combined charging system connectors, states like Texas
• 10:30
  are opting to include connectors used by Tesla vehicles as well
• 10:34
  major automakers like Ford and General Motors.
• 10:37
  They have also announced plans to incorporate Tesla's charging
• 10:40
  ports in their future models, and most car companies now are
• 10:44
  doing the same. And senior officials in the
• 10:46
  Biden administration remain very optimistic about the future
• 10:49
  availability of charges, though they appointed to streamline
• 10:52
  processes such as simplified environmental permitting to help
• 10:55
  states expedite the projects. Gabe Klein, the executive
• 10:58
  director of the Federal Joint Office of Energy and
• 11:00
  Transportation, said that significant private investments
• 11:04
  in charging infrastructure have expressed confidence in reaching
• 11:07
  the administration's charging network goals before 20-30,
• 11:10
  despite the apparent slow progress from a public
• 11:13
  perspective. Nick Nigro, founder of Atlas
• 11:16
  Public Policy, said that while substantial progress has been
• 11:19
  made, much of it remains unseen by the public.
• 11:22
  The complex nature of spending public funds involves numerous
• 11:26
  checks and balances contributing to the protracted development
• 11:29
  process, and despite the government's efforts, some
• 11:32
  potential EV buyers remain very hesitant, including myself.
• 11:37
  I have range anxiety. SpaceX is currently testing
• 11:41
  their Starship Booster and Starship Vehicle 25 at Boca
• 11:45
  Chica Starbase, Texas, and they've achieved the new
• 11:48
  milestone by conducting static fire tests for both stages of
• 11:53
  its Starship rocket system on the same day.
• 11:56
  This comes as the year ends for SpaceX with a remarkable 96
• 12:01
  space missions, and is now gearing up for an important
• 12:04
  third orbital test flight of the Starship, potentially including
• 12:08
  a payload deployment. This is kind of a new thing.
• 12:12
  So Starship, which is notable for being the world's largest
• 12:15
  rocket, saw its upper and its first stages tested separately.
• 12:19
  And in a rare occurrence, SpaceX carried out static fire tests
• 12:22
  for both the first stage Super Heavy booster and the upper
• 12:25
  stage Starship rocket on the same day.
• 12:28
  And while the specifics of the engine tests are not fully
• 12:30
  disclosed, it's understood that at least one engine on the
• 12:33
  Starship second stage was fired. This stage is also integral to
• 12:38
  NASA's Artemis program for landing astronauts on the Moon,
• 12:41
  heightening the importance of these tests.
• 12:45
  Now detailed observations of the second stage testing revealed
• 12:50
  that the ignition of the single stage Raptor engine was
• 12:53
  particular test demonstration of a flight like start up, which is
• 12:57
  essential for in space burns. Now, such specific testing is
• 13:02
  critical in assessing the Starship's capabilities for
• 13:05
  actual space missions, especially considering the
• 13:07
  precision required for in space maneuvers and burns.
• 13:11
  And this test as to the speculations about Starship's
• 13:14
  upcoming test flight, which may include launching A payload into
• 13:17
  space and demonstrate Spacex's focus on replicating real time
• 13:22
  mission conditions in its tests now, the Starship program began
• 13:28
  all the way back in 2020. It's actually longer ago that
• 13:31
  like 2016 actually started this thing, but down in Boca Chica
• 13:34
  it's around 2020 and it's been marked with rapid progress and
• 13:38
  development and testing. And over the years, the company
• 13:41
  has introduced new Raptor engines, upgraded a Super Heavy
• 13:44
  booster, improved the Launchpad Water deluge system, and
• 13:48
  streamlined its whole production process.
• 13:51
  And these advancements show that SpaceX is ready to go for the
• 13:55
  Artemis 3 mission. The manufacturing process is
• 13:58
  critical for Spacex's strategy to realize its ambitious goals
• 14:03
  with Starship. Elon Musk has emphasized the
• 14:06
  necessity of producing at least 100 Starships annually to
• 14:09
  support the company's Mars colonizations plans.
• 14:12
  The Super Heavy booster is designed to return to the launch
• 14:15
  site within minutes of the launch, but the second stage
• 14:18
  Starship takes considerably longer, necessitating a higher
• 14:22
  production rate of Starships now to manage the expected launch
• 14:25
  frequency, SpaceX is also expanding its infrastructure by
• 14:29
  constructing a second launch site in Texas.
• 14:32
  The success of today's static fire test is a huge step towards
• 14:36
  the upcoming third flight test, and this next phase will involve
• 14:39
  comprehensive evaluations including full stack
• 14:42
  integration, ship and booster inspections, pad checks and any
• 14:47
  necessary repairs to the spacecraft.
• 14:50
  And Elon Musk recently announced VIA X, formerly known as
• 14:53
  Twitter, the completion of a static fire test of the Flight 3
• 14:57
  Super Heavy booster. Now these tests are critical to
• 15:00
  verify the functionality of the entire system encompassing
• 15:04
  ground equipment, vehicle engines and both external and
• 15:09
  internal plumbing. Now responding to a user on X,
• 15:13
  Musk highlighted the operational efficiency of the Super Heavy
• 15:15
  booster, noting its rapid turn around time.
• 15:18
  He said as it returns in about 6 minutes and can theoretically be
• 15:22
  ready for reflight in about an hour, he's showing that the
• 15:26
  booster has the potential for frequent reuse.
• 15:30
  They would fly it back to Boca Chica Starbase, Texas, refurbish
• 15:34
  the booster, do any sort of upgrades, make sure it works,
• 15:37
  and then either fly it the same day or fly it within the next
• 15:41
  few days or the week. So we're going to be seeing
• 15:44
  boosters being reused, I believe, possibly by the end of
• 15:49
  2024. Now, Musk's vision for Spacex's
• 15:52
  production capabilities extends beyond the current targets.
• 15:56
  He envisions, raising the production of starships to 300
• 16:00
  per year, far exceeding the initial goal of 100.
• 16:03
  Now this increase is vital to accommodate the longer orbital
• 16:06
  and reuse cycles of the Starship compared to the booster.
• 16:09
  If they do end up catching the booster first, the Starship
• 16:14
  possibly will always land in the Pacific Ocean for a while, and
• 16:19
  if they can catch the Starship booster, they can reuse those
• 16:22
  things. So 300 starships per year seems
• 16:25
  about right, and starships longer orbit and ground track
• 16:30
  alignment requirements mean it's reuse frequency might be limited
• 16:34
  to just once a day. Now the ship needs to complete
• 16:37
  at least one orbit, but often several to have the ground track
• 16:40
  line back up with the launch site, so reuse may only be
• 16:44
  daily. He wants starships to launch
• 16:48
  like airplanes do frequently on the hour, and I it seems like
• 16:55
  they're going to be able to do that if they have 300 starships.
• 16:58
  Now these developments really suggest that SpaceX will focus
• 17:02
  more on increasing the production of starships than the
• 17:05
  Super heavy boosters. The strategy aligns with a
• 17:08
  different operational and reuse dynamics of the two components
• 17:11
  of the Starship, and the significance of these tests
• 17:13
  cannot be understated as they represent crucial steps in
• 17:16
  Spacex's journey towards more advanced and frequent space
• 17:20
  missions. The successful static fire tests
• 17:22
  are important indicators of the starship's readiness for more
• 17:25
  complex missions, including potential payload deployments.
• 17:29
  Spacex's plans for the Starship extend beyond lunar missions, to
• 17:32
  the company envisions using the rocket system for interplanetary
• 17:36
  travel, particularly for missions to Mars.
• 17:38
  The company's focus on rapid testing and development reflects
• 17:41
  its commitment to maintaining a leading position in the space
• 17:44
  industry as well. This is about business, and
• 17:46
  Spacex's ability to conduct multiple significant tests in a
• 17:49
  single day shows that they have the expertise and the robustness
• 17:53
  of technical infrastructure so they can continue building
• 17:57
  starships faster and faster. But looking ahead, Spacex's next
• 18:01
  steps will be closely monitored. The upcoming third orbital test
• 18:05
  flight of the Starship is particularly anticipated, as it
• 18:08
  may include the first attempt to deploy a payload into space,
• 18:12
  possibly Starlinks, a key capability for future missions,
• 18:16
  and with each successful test and development, SpaceX moves
• 18:20
  closer to realizing its vision of interplanetary travel and
• 18:23
  potentially changing the course of human space exploration.
• 18:26
  The company continues to set new standards in space technology
• 18:29
  and exploration, and the success of these static fire tests marks
• 18:33
  a step forward. A huge step forward for the IFT
• 18:37
  3 flight, possibly early next year.
• 18:40
  We have a stream on our Space News Pod channel on YouTube,
• 18:44
  youtube.com/space News Pod. If you want to watch the live
• 18:49
  stream of Starship with my commentary, please go there and
• 18:52
  subscribe and help us out. The New York Times has initiated
• 18:56
  A lawsuit against Open AI and Microsoft alleging copyright
• 19:00
  infringement. Now the Times claims that it's
• 19:02
  articles have been used without permission to train large
• 19:05
  language models like ChatGPT and Co pilot which now directly
• 19:10
  compete with its journalistic content.
• 19:12
  Now this legal challenge could significantly impact the whole
• 19:16
  industry, particularly the development and use of AI driven
• 19:20
  content generation. Now, the law asserts that Open
• 19:23
  AI and Microsoft's AI models can generate content that either
• 19:27
  replicates or closely summarizes the expressive style of the
• 19:30
  Times, undermining its unique relationships with its
• 19:33
  readership. Now, the complaint alleges, this
• 19:36
  practice harms the newspaper's ability to generate revenue
• 19:39
  through subscriptions, licensing, advertising, and
• 19:42
  affiliate programs. Now, the New York Times contends
• 19:45
  that the AI models pose a threat to high quality journalism by
• 19:49
  compromising the ability of news outlets to protect and monetize
• 19:52
  their content. The suit criticizes Microsoft's
• 19:55
  Bing Chat and Open A IS ChatGPT for using the Times content to
• 20:00
  create competitive products without permission.
• 20:03
  Or compensation. The lawsuit also highlights the
• 20:07
  significant financial success of both Open AI and Microsoft from
• 20:11
  utilizing the Times content. Now, despite attempts by the
• 20:14
  Times to negotiate a fair compensation for the use of its
• 20:17
  content, no agreement has been reached, prompting the legal
• 20:21
  action. The New York Times is seeking
• 20:23
  substantial damages, potentially in the billions of dollars, for
• 20:27
  the alleged copyright infringement.
• 20:29
  He also requests the court to compel Open AI and Microsoft to
• 20:32
  cease using its content for training AI models and to remove
• 20:36
  its work from their data sets. Now this legal action follows A
• 20:40
  trend where multiple news outlets including the BBCCNN and
• 20:44
  Reuters have blocked open a is web crawlers, preventing the AI
• 20:48
  company from scraping their content.
• 20:50
  And on the other hand, some publishers like Axel Springer
• 20:53
  have embraced AI, forming agreements with Open AI for
• 20:56
  content usage. A lawsuit could set a
• 20:59
  significant precedent in the evolving domain of AI and
• 21:01
  copyright law. The Times, as a major American
• 21:04
  media organization, is the first to file such a lawsuit over AI
• 21:08
  generated content, potentially setting a course for others in
• 21:11
  the industry. And the Times legal complaint
• 21:14
  does not specify an exact monetary amount, but emphasizes
• 21:18
  the need for billions in statutory and actual damages for
• 21:21
  the unauthorized use of its content.
• 21:24
  Further demands the destruction of any AI models and training
• 21:28
  data incorporating the Times copyrighted material.
• 21:32
  Now, while Microsoft has declined to comment, Open AI has
• 21:35
  not yet responded to the lawsuit.
• 21:37
  This legal challenge could shape the future of generative AI
• 21:40
  technologies and has major implications for the whole news
• 21:43
  industry, particularly for those who have adapted successful to
• 21:47
  online journalism. Now the lawsuit addresses
• 21:50
  broader concerns about the use of intellectual property by AI
• 21:54
  systems, a topic that has caused unease in various creative
• 21:58
  industries. This includes complaints from
• 22:00
  celebrities, authors, and photography syndicates about a
• 22:03
  is ability to replicate and generate content based on their
• 22:07
  copyrighted works, and the legal boundaries of copyright law
• 22:10
  often undergo scrutiny with technological advancements.
• 22:13
  The current lawsuit against AI use by Open AI and Microsoft is
• 22:18
  the latest in a series of legal challenges that have accompanied
• 22:21
  major technological shifts such as the emergence of radio and
• 22:25
  digital file sharing. Now, there's a growing
• 22:28
  expectation that this matter will ultimately reach the
• 22:31
  Supreme Court, given its importance and the novelty.
• 22:34
  While some publishers might settle the fundamental issue of
• 22:37
  AI's, use of copyrighted content will likely require legal
• 22:41
  resolution. Prior to this lawsuit, the Times
• 22:44
  attempts to negotiate with Microsoft and Open AI to reach
• 22:47
  an amicable resolution, including the possibility of a
• 22:50
  commercial agreement and implementing technological
• 22:53
  safeguards around AI products. These talks, however, did not
• 22:57
  yield a solution. The stance of the technology
• 23:00
  industry on copyright concerns varies.
• 23:02
  Some, like venture capital firm Andreessen Horowitz, argue that
• 23:07
  imposing copyright liabilities on AI companies could
• 23:10
  significantly hinder the development and the innovation,
• 23:14
  and the lawsuit frames ChatGPT and similar AI systems as
• 23:17
  potential competitors in the news sector.
• 23:19
  The Times is concerned that AI generated responses using its
• 23:23
  content could lead to reduced website traffic, affecting its
• 23:26
  advertising and subscription revenues.
• 23:29
  And the Times is also addressing the potential damage to its
• 23:32
  brand caused by AI generated inaccuracies or what they call
• 23:36
  hallucinations where chat bots provide false information
• 23:39
  attributed to the New York Times.
• 23:42
  How such incidents could lead to misinformation and harm the
• 23:45
  newspaper's reputation for accuracy.
• 23:48
  Now, the lawsuit also discusses how AI systems like Microsoft's
• 23:51
  Bing Chat use content from the Times wire cutter site without
• 23:55
  proper attribution or links, leading to revenue losses for
• 23:58
  the paper. Now this highlights a broader
• 24:00
  financial implications of AI use of copyrighted material.
• 24:04
  Now the lawsuit by the New York Times against Open AI and
• 24:08
  Microsoft is a huge development Between AI, technology,
• 24:13
  copyright law and journalism. There's got to be a challenge
• 24:16
  for traditional media in the digital age, though.
• 24:20
  They've already gone through a lot, moving from physical copies
• 24:23
  of the New York Times to an all digital platform, and now Open
• 24:27
  AI and Microsoft are being sued for the digital use of their
• 24:32
  copy. Elon Musk's company X, formerly
• 24:35
  known as Twitter, has recently faced a legal set back.
• 24:38
  A federal judge has rejected X's attempt to halt a new California
• 24:42
  law, a decision that impacts how social media platforms manage
• 24:46
  and disclose their content moderation strategies.
• 24:49
  Now the law in question, EB587, was passed last year in
• 24:53
  California, and it mandates that large social media companies
• 24:57
  must publicly share their methods for moderating content,
• 24:59
  particularly content that involves hate speech, extremism,
• 25:03
  disinformation and foreign political interference.
• 25:06
  Now, X challenged this law, arguing that it infringes on the
• 25:09
  1st Amendment rights. However, U.S.
• 25:12
  District Judge William Shubb disagreed with X's stance.
• 25:16
  In his ruling, he stated that while the law does not impose a
• 25:19
  significant compliance burden on social media companies, it does
• 25:22
  not unjustifiably or excessively burden them within the
• 25:26
  boundaries of the 1st Amendment law.
• 25:28
  He emphasized that the required disclosures are straightforward
• 25:31
  and uncontroversial. XS legal complaint had contended
• 25:35
  that the law's requirements were very vague and that it would
• 25:38
  compel social media platforms to censor constitutionally
• 25:41
  protected content. Now, Judge Shubbs decision
• 25:45
  clarifies that AB 587 simply requires social media companies
• 25:49
  to report their existing policies on content moderation.
• 25:52
  He noted that these reports are purely factual and that the fact
• 25:55
  that they might relate to controversial issues does not
• 25:59
  make the reports themselves controversial.
• 26:01
  X's internal dynamics have also been shifting since Elon Musk's
• 26:04
  takeover, The company has seen significant job cuts,
• 26:07
  particularly in its trust and safety team, and this downsizing
• 26:11
  in the company's moderation policies are now under scrutiny
• 26:15
  in Europe as well. And the European Union has
• 26:18
  initiated a formal investigation into X's compliance with the
• 26:21
  Digital Services Act of the DSA. This move, the first of its kind
• 26:25
  under the DSA, focuses on whether X has allowed the spread
• 26:28
  of illegal content, particularly in relation to the terrorist
• 26:32
  group Hamas's activities against Israel.
• 26:35
  Now the lawsuit against California's law was filed by
• 26:38
  ACTS in September. The law, signed by Governor
• 26:41
  Gavin Newsom, requires social media firms to submit biannual
• 26:44
  reports on their moderation of hate speech, misinformation, and
• 26:47
  other harmful content. Now, Judge Chubbs denial of X's
• 26:51
  motion to suspend the law underscores its significance and
• 26:54
  its enforceability. Now, X's argument in the law was
• 26:58
  that the law coerced companies into speech against their will
• 27:02
  and interfered with their editorial judgement.
• 27:04
  The company also argued that it pressured platforms to remove
• 27:07
  content that is protected by the Constitution.
• 27:11
  Now, the situation has also affected X's business relations.
• 27:14
  There has been a notable exodus of advertisers from the
• 27:17
  platform, including major companies like Apple, Disney,
• 27:20
  IBM, and Lionsgate Entertainment.
• 27:24
  This is partly attributed to the increased levels of hate speech
• 27:27
  and misinformation on the platform, as well as Musk's
• 27:30
  other public statements. And further complications for X
• 27:33
  arise from the E US probe into its adherence to the DSA.
• 27:37
  This investigation is centered around content related to
• 27:39
  Hamas's attacks on Israel on October 7th, and the DSA aims to
• 27:43
  curb illegal online activity and disinformation.
• 27:47
  Now, Judge Shubb's page ruling on the California law emphasized
• 27:50
  the particular aspect of the reporting requirement.
• 27:54
  He noted that while it does place a burden on social media
• 27:57
  companies, it is not excessive or unjustified in the context of
• 28:00
  the 1st Amendment. This ruling is a set back for
• 28:03
  X's argument that the law violated free speech rights.
• 28:06
  Now the law requires social media companies with substantial
• 28:09
  annual revenues to issue semi annual reports describing their
• 28:12
  content moderation practices, and this includes data on
• 28:15
  objectable posts and how they're addressed.
• 28:17
  California Governor Newsom had expressed the need for
• 28:20
  transparency and how social media influences public
• 28:22
  discourse, and since Musk's acquisition of Twitter in 2022
• 28:27
  for $44 billion, he's faced challenges in maintaining
• 28:30
  advertiser relationships and managing content on the
• 28:32
  platform. Reports have indicated an
• 28:35
  increase in hate speech on the platform following his takeover,
• 28:38
  and Judge Shubb has scheduled a conference with the lawyers
• 28:41
  involved in the case for February 26th.
• 28:43
  He emphasized the importance of the laws, terms of service
• 28:46
  requirements, noting their potential impact on user
• 28:49
  decisions and X's challenges extend beyond the US.
• 28:53
  In Europe, the company faces an investigation by the EU
• 28:56
  regarding its compliance with the DSA, particularly in
• 29:00
  response to content following Hamas's attack on Israel.
• 29:03
  X has stated its commitment to complying with the DSA and is
• 29:06
  cooperating with the regulatory process.
• 29:09
  X's legal battle in California and its ongoing challenges in
• 29:13
  Europe highlight that this is the complex issue between social
• 29:17
  media law and public policy. The outcome of these cases will
• 29:20
  likely have significant effects on how social media companies
• 29:24
  operate and are regulated globally in the future.
• 29:28
  Hey, thank you so much for listening today.
• 29:29
  I really do appreciate your support.
• 29:31
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  It helps out the show tremendously and you'll never
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  miss an episode and each episode is about 10 minutes or less to
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  get you caught up quickly. Please, if you want to support
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  the show even more, go to patreon.com/stage Zero and
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  please take care of yourselves and each other and I'll see you
• 29:58
  tomorrow. Hey, thank you so much for
• 29:59
  listening today. I really do appreciate your
• 30:01
  support. If you could take a second and
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  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
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  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode and each episode
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  is about 10 minutes or less. Get you caught.
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  U quickly and please, if you want to support the show even
• 30:20
  more, go to Atreon Stage Zero and please take care of
• 30:26
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