Latest / The 47 Morning Update with Ben Ferguson / How We Re-Capture Big Tech & Universities: One-on-One with Tech Entrepreneur Joe Lonsdale

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How We Re-Capture Big Tech & Universities: One-on-One with Tech Entrepreneur Joe Lonsdale · The 47 Morning Update with Ben Ferguson

0:01
Speaker 1: Welcome.
0:02
Speaker 2: It is Verdict with Center Ted Kruz, Ben Ferguson with
0:05
Speaker 2: you Centator.
0:05
Speaker 1: This is really fun. We're getting to do back.
0:07
Speaker 2: To back evenings with a live audience, which is really exciting.
0:10
Speaker 2: And we've got a dear friend of yours and a
0:12
Speaker 2: guest with us tonight getting to talk about some really
0:15
Speaker 2: cool things, especially when it comes to education. Imagine starting
0:19
Speaker 2: a university. That's a pretty cool idea, and we have
0:22
Speaker 2: someone that's done that.
0:22
Speaker 1: I'll let you do the intro.
0:24
Speaker 3: Well, we're very proud to be in Austin, Texas tonight
0:27
Speaker 3: with a very good friend of mine and someone who
0:30
Speaker 3: I say, without hyperbole, is one of the smartest people
0:33
Speaker 3: on planet Earth. We are with Joe Lonsdale. Joe Lonsdale
0:37
Speaker 3: is a big tech entrepreneur. He is a venture capitalist.
0:42
Speaker 3: He runs a major venture capital fund that invests in
0:45
Speaker 3: tech companies across the country. He was the CEO of Pallanteer.
0:50
Speaker 3: He led the big tech exodus from California to Austin, Texas.
0:56
Speaker 3: And one of the amazing things we're seeing is Austin
0:59
Speaker 3: Tech is becoming a mecca for people in tech who
1:04
Speaker 3: were not insane socialists came into that and Joe came
1:09
Speaker 3: as sort of the search party. He was sent first,
1:14
Speaker 3: and I think probably Silicon Valley was curious the reception
1:18
Speaker 3: he would get, and they found the cannibals did not
1:21
Speaker 3: eat him, and so he wired back. Come to Texas.
1:25
Speaker 3: There's freedom here, there's sanity here, Joe. It is great
1:28
Speaker 3: to be with you. Welcome to Verdict.
1:29
Speaker 4: Thanks for being here, Ted, and thank you very much
1:31
Speaker 4: for including me. It's very kind of you, saye one
1:33
Speaker 4: of the smartest senators. I appreciate the line there.
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3:19
Speaker 2: You've got something that I think is amazing, and it
3:22
Speaker 2: deals with education. I want to start with that first,
3:24
Speaker 2: because not only did you leave California, but you also
3:27
Speaker 2: had this insane idea of Hey, I want to start
3:30
Speaker 2: a university.
3:32
Speaker 1: Where did that come from? And what is the goal emission?
3:35
Speaker 4: Oh, you know, we've been talking about the universities for
3:37
Speaker 4: a while. I mean all of us have seen over
3:38
Speaker 4: the years, so they've kind of gone the wrong direction.
3:40
Speaker 4: But you know, when I was in university, I'm I'm,
3:42
Speaker 4: I'm you know, I was there in two thousand and
3:44
Speaker 4: two thousand and four. They with problems. There was there
3:46
Speaker 4: was is you know, you'd get in trouble for being
3:48
Speaker 4: polically incorrect. You be told not to talk about things.
3:50
Speaker 4: They got my first B for trying to defend John
3:52
Speaker 4: Locke in a humanities course because that was, you know,
3:54
Speaker 4: not supposed to do that.
3:55
Speaker 1: But but it was famed that one, by the way.
3:57
Speaker 4: Yeah yeah, I know, you know, but it wasn't like.
3:59
Speaker 3: Joe that's called humble brag first B first that's true,
4:03
Speaker 3: but its freshman year.
4:04
Speaker 4: It was you know, but but you know, it wasn't
4:08
Speaker 4: totally crazy. And I think a lot of people who
4:09
Speaker 4: have not been at universities for a while don't realize
4:12
Speaker 4: like just how crazy these places have become over the
4:15
Speaker 4: last you know, five six seven years. There was I
4:17
Speaker 4: think it was like a shift in our society. Maybe
4:19
Speaker 4: it was around twenty fourteen, twenty fifteen, but I mean
4:22
Speaker 4: at Stanford Review, which Peter Thiel started and I was
4:24
Speaker 4: involved with, which is a libertarian and conservative paper. Like
4:27
Speaker 4: a lot of the kids there, it is like you
4:28
Speaker 4: can't even admit you write for it anymore. It has
4:31
Speaker 4: to be pseudonymous because it would ruin your social life
4:33
Speaker 4: and you'd be attacked for it. And like these departments
4:35
Speaker 4: have just gotten so radicalized and so broken, and it's
4:38
Speaker 4: so there's there's an you know, the administrators. Over the
4:40
Speaker 4: last twenty years, you've tripled the size of the administrations. There's
4:43
Speaker 4: more administrators now at Yelling. There our students, bat's many
4:45
Speaker 4: administrators at Harvard. This DEI thing has come in. It's
4:48
Speaker 4: anti merit. It's just it's just so broken. So I
4:51
Speaker 4: think people don't realize that, you know, I actually believe
4:53
Speaker 4: university has played a really important role in our society
4:55
Speaker 4: the last hundred years. And you know, I was really
4:57
Speaker 4: I'm really lucky to have friends such as Neil Ferguson,
4:59
Speaker 4: the great historian, Barry Weiss, you know who I think
5:02
Speaker 4: runs one of the most important media companies in the
5:04
Speaker 4: US today, as my two co founders and all of
5:07
Speaker 4: us realize, you know, American institutions are breaking, they're failing.
5:10
Speaker 4: It's bad for our country. You want you to do
5:12
Speaker 4: in America when these things are broken, you build new ones.
5:14
Speaker 3: And Joe, what you're doing here is incredibly important. So
5:17
Speaker 3: you founded the University of Austin. Tell listeners of the
5:20
Speaker 3: podcast what the University of Austin is and what's the vision.
5:23
Speaker 3: What is it trying to accomplish.
5:25
Speaker 4: You know, we're trying to build a new great university
5:29
Speaker 4: in America that competes with Harvard, Yale, Princeton, Stanford, MIT.
5:32
Speaker 4: It competes for the best and brightest, and we want
5:35
Speaker 4: to have one of these places where it actually pursues truth,
5:38
Speaker 4: where it doesn't defer to who's offended, doesn't defer to
5:41
Speaker 4: a crazy ideology. You don't have a bunch of you know,
5:43
Speaker 4: administrators hounding you down. You actually are are focused on
5:47
Speaker 4: teaching young people to be courageous, to basically learn how
5:51
Speaker 4: to speak up, learn how to confront solutions in our society.
5:53
Speaker 4: If you can have even like a small number of
5:55
Speaker 4: the people who go on to run our elite to
5:57
Speaker 4: learn how to speak out, learn how to call out?
6:00
Speaker 3: Where is the university and the journey of its founding
6:02
Speaker 3: and becoming established and growing.
6:04
Speaker 4: So you know, it turns out, like a lot of
6:06
Speaker 4: other industries, there's a big cartel for starrying these things.
6:08
Speaker 4: We had to do two thousand pages of regulation, We
6:10
Speaker 4: had to you know, go through all sorts of things.
6:12
Speaker 4: But we were officially operating university, the first new private
6:15
Speaker 4: university in Texas in over sixty years. Where we're we've done,
6:18
Speaker 4: We've done all sorts of different events and seminars, and
6:20
Speaker 4: we have our first, our founding undergraduate class joining right now.
6:23
Speaker 4: There's gonna bee hundred students to join the fall. You know,
6:26
Speaker 4: we've had over five thousand.
6:27
Speaker 3: Professor, are they all freshmen or that are starting or
6:29
Speaker 3: how does how does it work in terms of the
6:31
Speaker 3: class coming.
6:31
Speaker 4: In, We're we're defining them as all freshmen, although we
6:34
Speaker 4: may admit a few people who who've gone to a
6:35
Speaker 4: couple of the top schools and are fleeing them, and
6:38
Speaker 4: so you know, we conclude them with us instead of course.
6:40
Speaker 3: Now are there particular majors that are being offered to
6:42
Speaker 3: start with?
6:43
Speaker 5: What? What are the students going to be studying.
6:45
Speaker 4: Well, you know, we want all the students to have
6:47
Speaker 4: a sort of intellectual foundations of like the Great Debates
6:50
Speaker 4: of Western civilization, kind of like the core what's called
6:53
Speaker 4: a classical liberal core. But then you have different centers.
6:55
Speaker 4: We have a Center for Economics, History and Politics, and
6:58
Speaker 4: we have people who've given up tenure at place is
7:00
Speaker 4: like University of Chicago and Columbia and other places like that,
7:03
Speaker 4: so I teach there. They have a center for STEM.
7:05
Speaker 4: Our friend Elon Musk built a lot of things here,
7:07
Speaker 4: and people who help run SpaceX and Boring Company are
7:10
Speaker 4: helping us shape some of the STEM to make sure
7:11
Speaker 4: these students are people they want to partner with. So
7:13
Speaker 4: we have multiple different electives as well.
7:16
Speaker 2: Just like any other college, raising money is something that
7:18
Speaker 2: obviously is vitally important. And then you have moments where
7:21
Speaker 2: you can see we're probably instead of you going to
7:23
Speaker 2: people telling them the story, they start coming to you.
7:27
Speaker 2: Did that just happen when we saw so much anti
7:30
Speaker 2: Israel rhetoric on college campuses, where then people that you
7:33
Speaker 2: know came to you and said, hey, maybe I do
7:36
Speaker 2: want to get involved in this idea.
7:37
Speaker 1: Maybe you're onto something here.
7:39
Speaker 4: Yeah, you know a lot of people like I haven't
7:41
Speaker 4: realized just help broken the universities are. They always thought
7:44
Speaker 4: it was something guys like Ted and I like to
7:46
Speaker 4: argue with the crazy people on the far left, and
7:48
Speaker 4: we've probably always called these places out. But they've gotten
7:51
Speaker 4: a lot worse since we were arguing with them twenty
7:52
Speaker 4: years ago, and so, and a lot of these people
7:55
Speaker 4: finally woke up after October seventh, and after they saw
7:58
Speaker 4: obviously the presidents of Harvard and MIT and whatnot like
8:01
Speaker 4: in Penn going and making total fools of themselves, and
8:04
Speaker 4: they started to look a little more closely. And then
8:06
Speaker 4: of course, like the plagism scandal comes out, and then
8:08
Speaker 4: if you're been paying attention, it turns out that it's
8:10
Speaker 4: not just clydeing Gay, it's all the leadership of the
8:13
Speaker 4: DEI and the Title Line Office all plagiarize all their stuff.
8:15
Speaker 4: Because guess what, if you have a philosophy that's anti
8:17
Speaker 4: merrit maybe you yourself aren't doing things that are meritocratic.
8:20
Speaker 4: You know.
8:20
Speaker 3: Look, I don't know about you, Joe, but I for one,
8:23
Speaker 3: was really inspired when when former Harvard president Claudine Gay
8:26
Speaker 3: wrote the immortal words we have nothing to fear but
8:29
Speaker 3: fear itself.
8:33
Speaker 1: First time she's ever written that. It was amazing, you know.
8:35
Speaker 3: Then she said I have a dream, yes, and then
8:39
Speaker 3: eat pluribusunum.
8:43
Speaker 1: It's really brilliant.
8:44
Speaker 4: Let's just be honest, and it shows you how rotten
8:46
Speaker 4: these places are that we've they've now done an investigation.
8:49
Speaker 4: The board of Harvard didn't even look into her scholarship
8:51
Speaker 4: before making her president. They didn't even look into it
8:53
Speaker 4: at all. And it's clear because it's not She was
8:55
Speaker 4: not hired for being a great scholar. She was hired
8:57
Speaker 4: for obviously other reasons for her, for her gender and
8:59
Speaker 4: her sex.
9:00
Speaker 3: So how are you finding your faculty to assemble a
9:03
Speaker 3: new university. You've got people like Neil Ferguson, You've got
9:06
Speaker 3: Barry Weiss, who I would note if you have not
9:09
Speaker 3: read Barry Weiss's resignation letter from the editorial board of
9:13
Speaker 3: The New York Times. It is one of the most
9:16
Speaker 3: important things written in the past decade, and it is
9:21
Speaker 3: the most concise and effective indictment of the corruption of
9:25
Speaker 3: corporate journalism that I've read anywhere. So the two of them,
9:28
Speaker 3: how did you team up with them? And how did
9:30
Speaker 3: you find the other members of your faculty.
9:32
Speaker 4: You know, I have to have to give Marc and
9:33
Speaker 4: Drewson credit for introducing me to Barry. We both were
9:35
Speaker 4: talking to him about the need to rebuild our broken
9:37
Speaker 4: institutions in the US, whether it's media, whether it's universities,
9:40
Speaker 4: whether it's so much else we need to weed to fix.
9:42
Speaker 4: And I'm so inspired by her. Neil's been her friend
9:45
Speaker 4: for a very long time. I think he's the greatest
9:47
Speaker 4: living historian, and a lot of other people are attracted
9:50
Speaker 4: to working with people like that. So, you know, we
9:53
Speaker 4: announced this, We've had we had in the first few months,
9:56
Speaker 4: five thousand professors send us notes to try to inquire
9:58
Speaker 4: a boy working with us. So it's not been wild them.
10:00
Speaker 4: This is the place people want to be part of.
10:02
Speaker 3: Five thousand professors. That's worth underscoring. Look, there are, and
10:07
Speaker 3: I think this is true in every one of our
10:09
Speaker 3: institutions that is corrupted and captured by the left, there
10:12
Speaker 3: are people trapped within them who have not lost their minds,
10:17
Speaker 3: but they're scared. They still want to earn a living,
10:19
Speaker 3: they want a job that they know if they open
10:21
Speaker 3: their mouth they risk being canceled, being fired, being thrown out.
10:25
Speaker 3: But I think that's true at universities. I think that
10:28
Speaker 3: is true in entertainment. I think that is true in journalism.
10:30
Speaker 3: I think that's true in big tech. Let me shift,
10:33
Speaker 3: you know, the world a big tech Well, you know,
10:37
Speaker 3: I think back to big tech fifteen years ago, and
10:40
Speaker 3: I think at the time, big tech was really at
10:42
Speaker 3: a fork in the road, and it could have gone
10:45
Speaker 3: down the road of embracing a libertarian utopia, of saying,
10:50
Speaker 3: leave us the hell alone, we're gonna be entrepreneurs, We're
10:52
Speaker 3: gonna invent a new world, or it could have gone
10:56
Speaker 3: down the road they chose instead, which is nanny state
11:00
Speaker 3: to talitarianism. We have the power and we will use
11:03
Speaker 3: the power to silence anyone who dare.
11:05
Speaker 5: Speak speak out.
11:07
Speaker 3: Do you agree with that assessment, and if so, why
11:10
Speaker 3: did they choose road number two?
11:13
Speaker 4: I do agree with that. And to tie it back
11:15
Speaker 4: to what we're just talking about, Ted, these cultures come
11:19
Speaker 4: from our universities. Google is hiring thousands of PhDs out
11:24
Speaker 4: of these universities who've just grown up in that culture
11:26
Speaker 4: their entire life. Amazon, Microsoft, Facebook. These are these tech
11:29
Speaker 4: cultures and university cultures. They're one and the same. And
11:32
Speaker 4: you know, the university culture is that Roden. That's what
11:35
Speaker 4: these kids are up in their whole life. And it's
11:37
Speaker 4: interesting because you kind of learned these places like rather
11:39
Speaker 4: than a university teaches you to be courageous and speak up,
11:41
Speaker 4: you learn shut up, virtue signal, go along, or you're
11:44
Speaker 4: going to get in trouble. And you learn there's gonna
11:46
Speaker 4: be a five percent of crazy people on the far left,
11:49
Speaker 4: and when they shout, you obey because that's how you
11:51
Speaker 4: stay out of trouble. And that's the way these companies
11:53
Speaker 4: are run.
11:54
Speaker 5: Now, is there a tipping point there?
11:56
Speaker 3: There have been a handful of people who have shown
12:00
Speaker 3: real courage in the tech space. There's you, There's Elon Musk,
12:03
Speaker 3: There's Peter til there's Palmer Lucky, there's Larry Ellison.
12:07
Speaker 5: That there are a few how many others are there?
12:11
Speaker 3: And do you see a tipping point where others will
12:14
Speaker 3: feel like, wait, I can speak out in support a
12:17
Speaker 3: free enterprise, I can speak out in support of free speech.
12:20
Speaker 3: I can stand up to the borg the collective mentality
12:25
Speaker 3: of Silicon Valley.
12:27
Speaker 4: You know, I think a lot of people are scared,
12:29
Speaker 4: and they're scared for good reason. This is where I'd
12:31
Speaker 4: actually have a little bit empathy towards lat of these
12:33
Speaker 4: friends of mine. I get texts every time that we
12:36
Speaker 4: put something online that you and I like and we're
12:38
Speaker 4: speaking out or are being strong. I get texts from
12:40
Speaker 4: people who run multipillion dollar companies. I get texts from
12:43
Speaker 4: people whose companies support hundreds of thousands of other companies,
12:46
Speaker 4: and they're terrified if they're supporting one hundred thousand dollar
12:48
Speaker 4: companies that if they become you know, we drinking vodka
12:52
Speaker 4: with the name of a friend that Austin on it.
12:53
Speaker 4: He does not do politics because he knows that if
12:55
Speaker 4: he becomes controversial, it could hurt him. So there's a
12:58
Speaker 4: lot of fear right now in the community, and the
13:00
Speaker 4: far left very good at demonizing people who speak out.
13:02
Speaker 2: You moved a company from California to Texas. There's a
13:05
Speaker 2: lot of people that love that, but they also there saying,
13:08
Speaker 2: don't California my Texas? When people move here, I'm assuming
13:13
Speaker 2: you had people that didn't agree with your conservative values
13:15
Speaker 2: it came.
13:16
Speaker 1: Do they see life differently? I mean it's been a
13:18
Speaker 1: couple of years.
13:19
Speaker 2: Now do they come and go, hey, it's actually better
13:21
Speaker 2: way of life and they like freedom and they're starting
13:24
Speaker 2: to come around to it, or do they just move
13:25
Speaker 2: here because they say, Okay, well it's more freedom during
13:28
Speaker 2: COVID and I pay less taxes, But I'm still the
13:30
Speaker 2: same person voting.
13:31
Speaker 4: You know, I want to give you statistic you probably know,
13:33
Speaker 4: and obviously I'm a huge fan of this, sad Or.
13:35
Speaker 4: The last race you run was closer than it should
13:37
Speaker 4: have been. If it wasn't for people who had moved
13:39
Speaker 4: to Texas, the race would have gone the other way
13:41
Speaker 4: by the numbers. And so it turns out that on
13:44
Speaker 4: the on the whole, the people who choose to move
13:46
Speaker 4: here tend to be even more on the side of liberty,
13:48
Speaker 4: more on the side of freedom even than the people
13:51
Speaker 4: who were born here. So I think it's fair to
13:53
Speaker 4: be really worried about these crazy people coming in. But
13:55
Speaker 4: you should know the people who choose to come here, like,
13:58
Speaker 4: we're fleeing something that's bro and we're coming here because
14:02
Speaker 4: if America falls were screwed right, And a lot of
14:05
Speaker 4: my friends, by the way, have given up. I have
14:06
Speaker 4: billionaire friends who are living in Switzerland's we're living in Singapore,
14:09
Speaker 4: who are say, Joe, the woke guys are in charge.
14:11
Speaker 4: You're done. My wife and I are here in Texas
14:13
Speaker 4: because we are making a stand here for America and
14:14
Speaker 4: those are our values and there are a lot of
14:15
Speaker 4: our friends values.
14:18
Speaker 2: You've got kids, how much of that was your decision
14:20
Speaker 2: as well? I mean, when you've got young kids. You
14:22
Speaker 2: and I are actually the same age, graduated the same year.
14:26
Speaker 2: And I know for me that.
14:27
Speaker 3: By the way, Ben, he's made gazillions of dollars, he's
14:30
Speaker 3: been a major CEO. What the hell have you done
14:31
Speaker 3: with your life?
14:32
Speaker 1: Man, I'm a co host of Center Ted Cruz. I've
14:34
Speaker 1: got that going right, you know. But how much was
14:40
Speaker 1: it your?
14:41
Speaker 3: And I will tell you back in a moment, and
14:44
Speaker 3: I will tell you Joe does have a basketball corner
14:46
Speaker 3: and we are gonna shortly play hoops. I'm told Joe
14:49
Speaker 3: has a pretty serious hoops game. Ben in high school
14:53
Speaker 3: was a center, and you know, has got some mass.
14:56
Speaker 3: So we're gonna see how things play out.
15:00
Speaker 4: He's a little bigger guy. You I wouldn't talk too
15:02
Speaker 4: much Tress before a game.
15:03
Speaker 1: Somebody's going to be out of here.
15:06
Speaker 3: This is the only part of my game is trash shocking.
15:09
Speaker 5: If I give up on trash, I had zero game left.
15:14
Speaker 4: Ben. We're loving raising our four daughters here. I think
15:16
Speaker 4: this is a great place to raise kids. I think
15:18
Speaker 4: it's a lot more tolerant place of a lot of
15:19
Speaker 4: different views. It's funny to say, used to be Sanrancisco
15:21
Speaker 4: was quote unquote tolerant, but it actually is not like
15:24
Speaker 4: if you if you speak out and then they are aside,
15:26
Speaker 4: you're in trouble there. I think here is very accepting
15:28
Speaker 4: where we live in Texas and yeah, I mean, listen,
15:30
Speaker 4: you guys have all heard the stories. I had friends
15:33
Speaker 4: kids who were in first grade at the local private
15:34
Speaker 4: school that we had heard was the best one, and
15:36
Speaker 4: they came to us and they were distraught, and they said,
15:38
Speaker 4: you know, the teacher lined the kids up today and
15:40
Speaker 4: told them to be lining up by gender, and then
15:42
Speaker 4: she yelled at them for half an hour about how
15:43
Speaker 4: there's not only two genders and they're confused. And then
15:45
Speaker 4: he's like, I mean, I'm not obsessed with this stuff myself,
15:48
Speaker 4: but if the teachers are obsessed with it, that's kind
15:49
Speaker 4: of weird place to raise kids.
15:52
Speaker 5: What's the path to take them back?
15:53
Speaker 3: So with University of Austin, you were fighting to try
15:56
Speaker 3: to take back universities. I think that's incredibly important you know,
15:59
Speaker 3: I guess to say, as a parent, you know, you
16:02
Speaker 3: sit here and think, do you do you spend hundreds
16:05
Speaker 3: of thousands of dollars to send your kid to a
16:08
Speaker 3: school that will try to brainwash them to hate America
16:11
Speaker 3: and hate you exactly, And it's it's hard.
16:14
Speaker 5: To know what to do.
16:15
Speaker 3: But at the same time, you want your kids to
16:16
Speaker 3: do well in Education has been the key to success
16:20
Speaker 3: so often in America that I know a lot of
16:22
Speaker 3: parents that are just just almost paralyzed.
16:25
Speaker 5: What do I do?
16:25
Speaker 3: You're fighting to take that institution back. Do you have
16:29
Speaker 3: hope we can take universities back? And then I'm gonna
16:32
Speaker 3: ask you the same question on big tech.
16:34
Speaker 4: You know, on universities, we got to build some new ones.
16:36
Speaker 4: They're gonna they're gonna influence the broken ones to be better.
16:39
Speaker 4: I think it's gonna take multiple that we build and
16:41
Speaker 4: and uh, yes, I think we can shift the back.
16:43
Speaker 4: We're not gonna reconquer Harvard and Yale. I mean it's
16:46
Speaker 4: not you have basically realize these places. It's the administrators,
16:49
Speaker 4: it's the departments through their own hiring. It's it's the
16:52
Speaker 4: lawyers who are in charge. It's the board is in
16:53
Speaker 4: charge that you're not gonna reconquer those schools, but you
16:56
Speaker 4: can influence them to be better and you can build
16:57
Speaker 4: better ones. I actually think we have a better chance
16:59
Speaker 4: in case to twelve that we do in universities, and
17:02
Speaker 4: that's thanks to school choice. If we can get that done,
17:04
Speaker 4: and this is something I wish though, I think a
17:06
Speaker 4: law of rary Republicans are on our side now in Texas.
17:08
Speaker 4: They get it, they get how bad it is. I
17:10
Speaker 4: think a lot of people in the rural areas, you know,
17:12
Speaker 4: they know the teachers, they love them, and they're confused.
17:15
Speaker 4: They don't realize there's tons of schools, especially in our
17:17
Speaker 4: cities in Texas even here, that are brainwashing our kids,
17:19
Speaker 4: and we desperately need to give parents the right to
17:21
Speaker 4: get out of those schools.
17:22
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17:24
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18:54
Speaker 2: You seem to be doing something that is really cool
18:57
Speaker 2: and fun. A lot of people do legacy late in life.
19:00
Speaker 2: They think about their country, they think about their grandkids,
19:04
Speaker 2: and then they kind of shift what they're doing. You
19:07
Speaker 2: seem to be in the fight right now and includes
19:09
Speaker 2: you working on legislation through I Think Tank.
19:13
Speaker 1: You even had an op ed that just came out
19:15
Speaker 1: this last week.
19:16
Speaker 2: Tell people about that aspect of what you're doing, because
19:18
Speaker 2: you seem to be all in on the fight again
19:20
Speaker 2: at a young age, in your early forties.
19:22
Speaker 4: Yeah, you know, I'm still building companies, are running my fund.
19:24
Speaker 4: So I'd be really nice just to be able to
19:26
Speaker 4: wait until I was sixty or seventy. I think maybe
19:28
Speaker 4: if this was twenty thirty years ago, I might have
19:31
Speaker 4: done that. It feels like this is a really critical
19:32
Speaker 4: time for our country and we can't just wait twenty
19:34
Speaker 4: or thirty years.
19:36
Speaker 5: Absolutely.
19:36
Speaker 4: Yeah, So so give given that given that we might
19:39
Speaker 4: not have a country left if we don't all fight
19:40
Speaker 4: for it right now. It's my job to do it.
19:42
Speaker 4: And you know, at Cerro Institute, we have teams in
19:45
Speaker 4: twenty States. We're fighting for liberty and accountability and going
19:48
Speaker 4: after all sorts of nonsense there. Yeah, the op ed
19:50
Speaker 4: was fun this week. I felt pretty strongly. I'm friends
19:53
Speaker 4: with Elon Musk and watching what's happening to him and
19:56
Speaker 4: the president with the weaponized courts, and you know, our country.
19:59
Speaker 4: One of the reasons is except as we have, you know,
20:01
Speaker 4: equality of justice under the law. And I'd be very
20:03
Speaker 4: against Republicans weaponizing courts to attack the left, and I
20:06
Speaker 4: was also very against the left weaponizing courts to attack them.
20:09
Speaker 4: I think it was great. Jeb Bush spoke up about
20:10
Speaker 4: that as well.
20:11
Speaker 3: Yeah, look, it is absolutely grotesque the weaponization of our
20:14
Speaker 3: justice system. We're seeing it against Donald Trump with four
20:17
Speaker 3: indictments all over the country, with a ridiculous civil verdict
20:21
Speaker 3: in New York, and we're seeing it against Elon Musk.
20:24
Speaker 3: I will say the Biden administration, watching the Biden administration
20:28
Speaker 3: weaponize every single federal agency against Elon Musk. And as
20:34
Speaker 3: you know, Elon, until like twelve minutes ago, wasn't a Republican.
20:39
Speaker 3: Elon had never voted Republican until just over two years ago.
20:43
Speaker 3: Elon voted for Hillary Clinton and for Joe Biden, and
20:47
Speaker 3: he said publicly the first Republican he ever voted for
20:50
Speaker 3: was Myra Flores here in Texas, just a couple of
20:53
Speaker 3: years ago. And the fact that he dared speak out,
20:57
Speaker 3: and especially the fact that he bought Twitter and has
21:01
Speaker 3: a loud free speech, the left has decided he must
21:05
Speaker 3: be destroyed. And even for someone with vast resources, having
21:10
Speaker 3: the federal government come after you, it is a daunting proposition.
21:15
Speaker 4: Yeah, it's really disgusting to watch, like how open they are.
21:19
Speaker 4: It feels like a thorobold country tech And you know,
21:21
Speaker 4: I think you step back a little bit. There's this
21:23
Speaker 4: battle in our in our civilization for truth and justice,
21:26
Speaker 4: and it's very clear truth and justice have been losing
21:29
Speaker 4: a lot the last twenty thirty years. I think buying
21:31
Speaker 4: Twitter now X, I think hopefully what we're trying to
21:34
Speaker 4: do with some of these institutions, we can start to
21:36
Speaker 4: turn it around. I still think we're losing a little bit,
21:37
Speaker 4: but I think we're going to start turning things around.
21:39
Speaker 4: And I if more of us can get into the fight,
21:41
Speaker 4: more people like Elon, I think we have a chance
21:42
Speaker 4: to win.
21:43
Speaker 3: So how about big tech? Is their hope for turning
21:46
Speaker 3: big tech around is are there You mentioned five thousand
21:50
Speaker 3: professors wanting to get out. That's a really encouraging stat
21:53
Speaker 3: to me. Do you think there are likewise people in
21:56
Speaker 3: big tech that are quietly wanting some semblance of sanity
22:02
Speaker 3: but are afraid and is there a way that they
22:05
Speaker 3: can come out of hiding.
22:06
Speaker 4: Yeah, there's definitely a lot of them. And I'll tell
22:08
Speaker 4: you what. The way that this works, thank goodness, is
22:11
Speaker 4: there are market forces and you know, Google would have
22:14
Speaker 4: been way ahead of everyone else if they didn't have
22:16
Speaker 4: a completely corrupt I mean, it's a joke online, but
22:19
Speaker 4: it's like they put out these things they saw this
22:20
Speaker 4: week where they couldn't even do a picture of a
22:22
Speaker 4: white person. You'd ask eighteen twenties, show me a couple
22:24
Speaker 4: from the eighteen twenties America, and it's like it's like
22:27
Speaker 4: a black guy and a Japanese woman, and like that's nice,
22:29
Speaker 4: but it's probably not.
22:30
Speaker 5: I don't know if you've seen.
22:31
Speaker 3: It's actually very complex game theory, but if you ask
22:34
Speaker 3: Google to create a chessboard, it has only black pieces
22:38
Speaker 3: and it's very hard to know how to win or
22:40
Speaker 3: lose at that point.
22:41
Speaker 4: That the funny part is they only got in trouble.
22:43
Speaker 4: I want to make the point. But the funny part
22:44
Speaker 4: is they only got in trouble for this because somebody
22:46
Speaker 4: thought to say, show me a German Nazi soldier from
22:48
Speaker 4: the nineteen thirties, and it showed this Han Chinese woman,
22:51
Speaker 4: this Native American guy and not.
22:52
Speaker 2: Seeing it for him, and that was too far amazing,
22:56
Speaker 2: that was too far New York Times.
22:57
Speaker 1: It's like, Okay, now we actually know we need to fix.
22:59
Speaker 3: This lit the Chinese Nazis. That was a real problem
23:03
Speaker 3: history class.
23:04
Speaker 4: So but we're scayed.
23:05
Speaker 1: Did she actually cover that in paper? I don't know
23:07
Speaker 1: if you've read that one yet.
23:08
Speaker 4: Here. Here's the great thing about markets and about innovation
23:11
Speaker 4: is that when you start to focus so much on
23:13
Speaker 4: nonsense that you start to lose and you start to
23:15
Speaker 4: not track the best people, other people defeat you in
23:17
Speaker 4: the market, and those new things are very often you know,
23:20
Speaker 4: if you look at fast drawing startups versus these technopolies,
23:23
Speaker 4: the fast drawing startups are far less woke because they
23:25
Speaker 4: have to be focused on competence, and a lot of
23:27
Speaker 4: people who are joining them are fleeing these crazy broken places.
23:30
Speaker 4: So I do think it's going the right direction.
23:31
Speaker 3: Let me ask a business question. You know tech better
23:34
Speaker 3: than most people alive. Where are things going in terms
23:39
Speaker 3: of innovation ten years from now? What should we know
23:42
Speaker 3: now that we don't know, And how will the world
23:46
Speaker 3: be different in a decade.
23:47
Speaker 4: Well, the really positive thing that's happening right now. And
23:50
Speaker 4: I was never a huge crypto guy. I don't love
23:52
Speaker 4: fiacht currencies. I think there's a good use against like,
23:54
Speaker 4: you know, corrupt governments, but I was never that in
23:56
Speaker 4: a crypto AI actually, to me is actually very real. Uh.
24:01
Speaker 4: The way to think about it. We can talk all
24:03
Speaker 4: about sorts of complicated things, but the simple thing to
24:04
Speaker 4: think about is productivity is just really key in our economy.
24:07
Speaker 4: The reason we have more wealth is we do more
24:09
Speaker 4: with less. And there's all these industries in our economy
24:12
Speaker 4: where this this AI combined with operations can do things
24:15
Speaker 4: much more affordably, much cheaper. And so if you look
24:18
Speaker 4: at this like healthcare building, for example, we spend probably
24:20
Speaker 4: over a quarter trillion dollars a year healthcare building and
24:22
Speaker 4: you can probably cut that in the third over the
24:25
Speaker 4: next five or six years. There's tons of areas like that.
24:27
Speaker 3: So there are lots of cassandras painting stories of impending
24:30
Speaker 3: doom from Ai. Is AI gonna destroy us all? And
24:35
Speaker 3: do you know what year does Skynet go online?
24:38
Speaker 4: My do work a lot in defense, so I'm working
24:40
Speaker 4: on it. Said, but there's this. We can control all
24:43
Speaker 4: of you now we uh no, listen, there's there's two
24:48
Speaker 4: different conversations with AIS, my master, thank you, Downtown getting
24:51
Speaker 4: in trouble with there?
24:52
Speaker 2: Uh.
24:52
Speaker 4: It does in charge the the uh. There's two different
24:56
Speaker 4: conversations with AI. One of them is productivity and wealth
24:59
Speaker 4: cre and it's actually extremely positive and that's really good.
25:02
Speaker 4: The other conversation with AI, it's very funny. A lot
25:04
Speaker 4: of people in the tech world are not religious. They've
25:06
Speaker 4: given up their religion, and so this is kind of
25:09
Speaker 4: like a form of their religion. The Singularity that taking
25:11
Speaker 4: over the world of AI, and it's very funny. It's
25:13
Speaker 4: a very missionic vision. It's very much like revelations in
25:16
Speaker 4: Judaism and Christianity, where this thing comes and it changes
25:19
Speaker 4: everything and it's effectively a new God because once it
25:21
Speaker 4: improves itself keeps getting better, and so it's like it's
25:24
Speaker 4: like a secular religion. In Silicon Valley, people are obsessed
25:27
Speaker 4: with it as They talk about end of times with
25:29
Speaker 4: it all the time. And it's funny because America has
25:31
Speaker 4: had a lot of other religious like revival movements over
25:33
Speaker 4: the last two hundred years where people were convinced that
25:35
Speaker 4: at times was coming very soon. This is quite a
25:37
Speaker 4: weird one based in Silicon Valley.
25:39
Speaker 3: All right, so we're going to wrap up momentarily, but
25:41
Speaker 3: I want to ask, so you are very engaged in policy,
25:45
Speaker 3: a policy question Washington is wrestling with right now. So
25:48
Speaker 3: as you know, I'm the ranking member on the Senate
25:50
Speaker 3: Commerce Committee, and AI is squarely within our jurisdiction. In fact,
25:55
Speaker 3: back in twenty fifteen, I chaired the first ever Congressional
25:58
Speaker 3: hearing on AI and have been focused on it for
26:00
Speaker 3: a long time now.
26:01
Speaker 5: There are a lot of.
26:01
Speaker 3: Voices in Washington, most notably Chuck Schumer, but also including
26:06
Speaker 3: some Republicans that are eager for a very heavy hand
26:10
Speaker 3: of government when it comes to AI, and Schumer and
26:12
Speaker 3: Democrats are proposing literally prior government approval before innovations in AI.
26:20
Speaker 3: I've been very vocal in saying that it's catastrophically stupid
26:24
Speaker 3: and if we put government in the position of prior approval,
26:27
Speaker 3: we will seed leadership of AI to our enemies, to
26:31
Speaker 3: China and other countries, and we will kill American leadership.
26:34
Speaker 3: I'm interested in your views because this policy discussion. I
26:37
Speaker 3: got to tell you a lot of big tech, the
26:40
Speaker 3: Googles and facebooks of the world, are saying yes, yes,
26:43
Speaker 3: regulate us because they believe they can capture the government
26:46
Speaker 3: and use it to shut everyone down. What's your take
26:49
Speaker 3: on how government should approach AI, because this is as
26:52
Speaker 3: hot as any question in Washington right now.
26:55
Speaker 4: Well, you know, mister Santa, one hundred percent agree with you.
26:58
Speaker 4: I'm really glad you're taking that that tactic. As you
27:01
Speaker 4: know that big companies, allot of them know they're losing
27:04
Speaker 4: some of their best talent. They know it's going to
27:05
Speaker 4: be hard to compete. But you know what they have,
27:07
Speaker 4: Like if I want to start a competitor, for example,
27:09
Speaker 4: to black Rock right now in New York, I've spend
27:11
Speaker 4: one hundred million dollars year on lawyers even just to
27:13
Speaker 4: do what they do. They love the fact that there's
27:15
Speaker 4: tons of rules regulations. These big companies would love it
27:18
Speaker 4: to make it impossible to compete against them in AI.
27:20
Speaker 4: So number one, one hundred percent keuth regulations as small
27:22
Speaker 4: as possible. Now, the thing I will give them, and
27:26
Speaker 4: we have to be very careful because this it's not
27:27
Speaker 4: why they're doing it. The thing I will give them
27:29
Speaker 4: is there probably are ways that some people could figure
27:31
Speaker 4: out how to use AI in bioterror in other areas,
27:34
Speaker 4: and so we have to watch it. We have to
27:35
Speaker 4: be very careful, we have to see as it goes along.
27:37
Speaker 4: But let's not give them the ability to make the
27:39
Speaker 4: whole thing crony and break it.
27:40
Speaker 3: Well, and look, there is no doubt there will need
27:43
Speaker 3: to be regulations applied to AI like to any other industry.
27:45
Speaker 3: Now many of our existing laws can apply. So are
27:48
Speaker 3: there risks of fraud? Are the risk of deception?
27:51
Speaker 5: Yes?
27:51
Speaker 3: So do you see things like Taylor Swift had the
27:54
Speaker 3: AI fake porn put put on, and because she was
27:57
Speaker 3: Taylor Swift and had such a prominence, she was able
28:00
Speaker 3: to get it pulled down. Well, what happened is if that's.
28:02
Speaker 4: Your kids, you yeah.
28:05
Speaker 5: And nobody would watch that.
28:06
Speaker 3: That's all right, that the market forces would take care
28:09
Speaker 3: of that all on its own.
28:12
Speaker 1: I was so ready to get in there, so ready.
28:15
Speaker 1: That was my moment, and you knew it, and you
28:17
Speaker 1: jumped in beforehand I'm okay, keep going, folks, go ahead.
28:25
Speaker 3: But there's no doubt there are going to be need
28:28
Speaker 3: to apply laws and rules, whether fraud, whether deception. The
28:33
Speaker 3: legal system will have to be applied. But but I
28:36
Speaker 3: think we should move slowly and understand what we're doing
28:40
Speaker 3: because the productivity benefits potentially are are are massive. And
28:45
Speaker 3: I will say, when you know, you talked a minute
28:48
Speaker 3: ago about how how the big tech companies want barriers
28:52
Speaker 3: to entry, and that is the most common one of
28:55
Speaker 3: the great lies of politics. It is the idea that
28:59
Speaker 3: that that conservatives are pro big business. The reality is
29:04
Speaker 3: big business loves big government. Big business usually gets in
29:09
Speaker 3: bed with big government, and big business loves when government
29:13
Speaker 3: puts barriers to entry to stop the next generation of entrepreneurs.
29:17
Speaker 3: And I'll say this, look, I have nothing for her
29:21
Speaker 3: against big business, but I am interested in the little guys,
29:24
Speaker 3: the next group of entrepreneurs. What the economist Joseph Schumpeter
29:28
Speaker 3: called creative destruction. And one of my favorite images on
29:32
Speaker 3: the Internet is a picture of the founders of Microsoft
29:36
Speaker 3: in nineteen seventy eight. And you have Paul Allen with
29:39
Speaker 3: long hair and a beard, and he looks like one
29:40
Speaker 3: of the begs. You've got Bill Gates with glasses the
29:43
Speaker 3: size of hip hubcaps and on. It's just that picture
29:49
Speaker 3: of a bunch of college dropouts, and it just asks
29:52
Speaker 3: would you invest money with these guys? And that is
29:55
Speaker 3: and they were taking on IBM, Big Blue, the giant behemoth,
29:59
Speaker 3: and they were there creative destruction.
30:00
Speaker 5: Now they're the giant.
30:02
Speaker 3: And I will say, let's do this to wrap up,
30:05
Speaker 3: talk about the importance of disruptors, of the innovation of
30:08
Speaker 3: the next generation, driving techs, driving productivity, driving our counties.
30:13
Speaker 4: I mean, this is one hundred percent how America works,
30:15
Speaker 4: as you say. And by the way, it's our biggest
30:17
Speaker 4: advantage against China as our adversary in China right now,
30:20
Speaker 4: the CCP, aside from just having killed a bunch of
30:23
Speaker 4: our billionaire Chinese tech friends, so everyone's terrified to build
30:25
Speaker 4: more tech if you're alredy sucessful in China, the other
30:27
Speaker 4: thing they have going against.
30:29
Speaker 5: Them, hold on, say that again.
30:31
Speaker 4: A lot of our tech friends died in the last
30:33
Speaker 4: or died under or fled in the last five years
30:35
Speaker 4: out of China there and a lot of them were
30:36
Speaker 4: taken away and disappeared and then came back and they
30:38
Speaker 4: won't talk about it anymore.
30:39
Speaker 3: So do we know names of people who are killed because.
30:42
Speaker 5: I give I don't.
30:43
Speaker 4: I'll give you a friend. And Andy Tan ran an
30:45
Speaker 4: Asian innovations group forty seven years old, about to go
30:48
Speaker 4: public last year after working hard for eleven years, and
30:50
Speaker 4: they told him they wanted to do things differently with
30:53
Speaker 4: the data and going in China. He said, I'm going
30:55
Speaker 4: to go talk to him Beijing. Next I heard he
30:57
Speaker 4: died in his sleep that night at forty seven years old.
30:59
Speaker 5: Wow.
31:00
Speaker 4: And there's a lot of stories like this. There's a
31:01
Speaker 4: lot of guys who built a lot of it, who
31:03
Speaker 4: fled and who are very sketish using thing. But I'll
31:05
Speaker 4: tell you the other big advantage we have though against them,
31:07
Speaker 4: other than them strewing that up, is basically all this
31:11
Speaker 4: productivity coming from AI. It's going to disrupt healthcare. It's
31:14
Speaker 4: gonna change of health care works. It's going to change
31:16
Speaker 4: how logisticsort. It's gonna change all these industries work. In China,
31:18
Speaker 4: the government people and their cronies they own those industries.
31:21
Speaker 4: They are not going to allow those to be disrupted.
31:22
Speaker 4: The question is is in America are we still able
31:25
Speaker 4: to disrupt things? Are we still going to be allowed
31:27
Speaker 4: by our government to go in and change how those
31:29
Speaker 4: things work. And it's going to be about because we
31:30
Speaker 4: have regulatory agencies that also want to slow it down
31:33
Speaker 4: with the big companies. But I still believe in America,
31:35
Speaker 4: with the right leadership, we actually can disrupt these things
31:37
Speaker 4: and we can grow. Well.
31:38
Speaker 3: Look, when AI replace this podcast, I hope that the
31:41
Speaker 3: computer that takes my place does a really fine job.
31:44
Speaker 2: I want to talk to you about how you start
31:45
Speaker 2: your morning off. If you're like me and you're a
31:48
Speaker 2: coffee drinker, I get up early, I get on the
31:50
Speaker 2: radio at seven am, and I have got to have
31:53
Speaker 2: not just a cup of coffee, a really good cup
31:55
Speaker 2: of coffee. And I have a twenty twenty four New
31:58
Speaker 2: Year's resolution. I am not giving my money to woke
32:01
Speaker 2: coffee companies. That is something I have gotten rid of.
32:05
Speaker 2: Blackout Coffee is the coffee.
32:07
Speaker 1: That I drink. It is amazing.
32:10
Speaker 2: This is one hundred percent America and zero percent woke coffee.
32:16
Speaker 2: Blackout Coffee is one hundred percent committed to conservative values
32:19
Speaker 2: as a company. From sourcing their beans to the roasting process,
32:24
Speaker 2: customer support and shipping, they embody true American values. And
32:29
Speaker 2: they accept no compromise on premium taste and premium quality.
32:34
Speaker 2: If you want a great cup of coffee, not good,
32:38
Speaker 2: not kind of good, not pretty good, but amazing, you
32:42
Speaker 2: need to go to Blackoutcoffee dot com slash verdict.
32:46
Speaker 1: Now here's the cool part.
32:47
Speaker 2: Use the promo code verdict for twenty percent off your
32:51
Speaker 2: first order.
32:52
Speaker 5: So try it.
32:53
Speaker 2: You're going to be hooked like I am, and you'll
32:56
Speaker 2: never go back to those other woke brands. Blackout Coffee
33:00
Speaker 2: slash verdict, be awake, not woke, that's Blackoutcoffee dot com
33:05
Speaker 2: slash verdict. Promo code verdict for twenty percent off your
33:09
Speaker 2: first order. Fine, amy, Yeah, final question for you, and
33:13
Speaker 2: I want to go back to the university because there's
33:15
Speaker 2: gonna be a lot of kids that listen to this,
33:17
Speaker 2: a lot of parents, grandparents they're gonna and maybe even
33:20
Speaker 2: professors that may want to reach out.
33:23
Speaker 1: What does next year's class look like?
33:25
Speaker 2: Is there a cap on that if someone says I
33:27
Speaker 2: want more information, If there's a professor that's listening to
33:29
Speaker 2: this and says, hey, I want to leave this great
33:32
Speaker 2: institution that I'm at because of I'm being stifled or silence.
33:35
Speaker 4: I want to talk to you. How can they do that?
33:38
Speaker 4: So we're bidding our first class right now. This is
33:40
Speaker 4: just as competitive to get into as the other top
33:42
Speaker 4: ten schools. But if you have a really bright, young
33:44
Speaker 4: young student who's a founding personality, entrepreneur personality, it's pretty
33:48
Speaker 4: much one of the coolest places you can go. We
33:49
Speaker 4: have one hundred of my top tech friends who put
33:51
Speaker 4: their names on and advising it. We have all these
33:53
Speaker 4: tall academics. It's going to be very competitive to get in,
33:55
Speaker 4: but yes, please please please apply. You can go to
33:58
Speaker 4: you Austin dot org and Stritch University of all online
34:00
Speaker 4: uh professors, they're they're they're welcome to the email obviously.
34:03
Speaker 4: If they're amazing, we'll love to talk to and we
34:05
Speaker 4: have a pretty big line of people trying to get
34:07
Speaker 4: in these professors right now. But obviously it's very very
34:09
Speaker 4: interested in meeting great people.
34:10
Speaker 2: Thank you for coming on the podcast, Thanks for having
34:12
Speaker 2: us here. Thank you to everybody that's here in the
34:13
Speaker 2: audience as well. That don't forget we do the show Monday,
34:16
Speaker 2: Wednesday Friday. Hit that subscribe auto download button, and don't
34:20
Speaker 2: forget the Saturday week in review. Anything you may have
34:22
Speaker 2: miss during the week and the Cina and I will
34:24
Speaker 2: see you back here in a couple of days.