Supreme Court Saves Social Media, Montana Bans TikTok, and Sam Altman Wants AI Regulation

19 May 2023 · 1 h 6 min

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Podcast Notes: Pivot - Episode Summary

Episode Title

Supreme Court Saves Social Media, Montana Bans TikTok, and Sam Altman Wants AI Regulation

Hosts

  • Kara Swisher: Tech Journalist
  • Scott Galloway: NYU Professor

Episode Overview

In this episode, Kara and Scott delve into major developments in technology, business, and politics, including:

  • The Supreme Court's recent rulings regarding social media platforms
  • Montana's controversial ban on TikTok
  • Calls for AI regulation by OpenAI's CEO, Sam Altman
  • Other notable stories including Microsoft-Activision merger developments and WeWork’s CEO stepping down.

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Key Discussions

  1. Supreme Court Rulings on Social Media
  2. Section 230 Cases:
  3. The Supreme Court chose not to make a definitive ruling on Section 230 in two significant cases.
  4. Gonzalez v. Google: Related to a family’s lawsuit against Google for ISIS-related content.
  5. Twitter v. Tamna: Twitter was found not liable in an ISIS attack case.
  6. Outcome: Seen as a win for social media companies, maintaining the status quo.
  1. Montana Bans TikTok
  2. Legislation:
  3. Montana becomes the first state to ban TikTok, effective January 1st of the following year.
  4. Fines imposed on app stores and TikTok itself, but not on users.
  5. Criticism: Kara and Scott criticize the move as politically motivated and ineffective.
  6. First Amendment: ACLU and TikTok are expected to challenge the law.
  1. Elon Musk's Remarks
  2. Controversial Tweets:
  3. Musk continues to make headlines with provocative statements, including criticisms of billionaire George Soros.
  4. Discussed the implications of such statements and their potential impact on Tesla's business.
  5. Remarks on the need for advertising due to declining sales.
  1. AI Regulation Discussions
  2. Sam Altman’s Testimony:
  3. CEO of OpenAI calls for regulation of AI, seeking to establish safety standards and independent audits.
  4. Comparison with previous tech hearings where CEOs faced harsher scrutiny.
  5. Altman emphasizes the need for a new regulatory body dedicated to AI.
  1. WeWork's CEO Steps Down
  2. Company Struggles:
  3. WeWork's current CEO Sandeep Mantrani resigns, following struggles to achieve profitability.
  4. Discussion on the broader implications for commercial real estate and the potential for bankruptcy.

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Key Takeaways

  • Supreme Court’s Decision: Reflects a reluctance to engage in social media regulation, placing the onus on Congress.
  • Montana TikTok Ban: Viewed as a misguided effort to address broader concerns around freedom of expression and technology regulation.
  • Musk's Strategy: Highlights the precarious positioning of Tesla amidst increasing competition and the need for traditional advertising.
  • AI Regulation: Altman’s suggestions could lead to meaningful changes, but skepticism remains regarding the effectiveness of Congress.
  • WeWork's Future: Raises questions about the viability of flexible office space models in a post-COVID world.

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Predictions

  • Scott predicts a downturn for writers in Hollywood similar to the British coal miner strikes of the 80s, where studios may leverage the current strike to minimize costs and replace human creativity with AI-driven solutions.

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Listener Engagement

  • Listeners are encouraged to send questions or comments through the podcast's dedicated channels.

Next Episode: Tune in on Tuesday for further insights and updates on tech, business, and political landscapes.

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Transcript

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1:27Hi, everyone. This is Pivot from New York Magazine and the Vox Media Podcast Network, and I am Christiane Amanpour. Actually, we all are. She gave a great speech, Scott, but hello. How are you doing? Okay, say more. She gave an amazing commencement address at the Columbia Graduate School of Journalism, where I went, and she works for CNN. She's a very well-known CNN person. And she actually went against CNN and she said she had spoken to Chris Licht and then gave a stem winder of a speech where she said a lot of stuff, a lot of really interesting stuff, which I obviously agree with. It was elegant and also eviscerating at the same time.

2:06One of the things she said that really struck me is be truthful, but not neutral. Both sidesism does not get you to the truth. Drawing false and moral factual or factual equivalence is neither objective or truthful. And she sort of schooled CNN on some stuff. She's just the kind of person they say they want, who delivers the news and you don't ever think of her as a pundit in any way. And she sort of handed them their heads. It was quite something to see. They knew she was going to do it. She told them. I don't think they have much control over her or she wouldn't really listened to them. So anyway, it was an interesting speech and I applaud her for it.

2:46Thank you. My most viral video clip of 2023 is when I was on with Christiana. I like her. She's an impressive woman. Well, just as it's great to live in America where you can shitpost America nonstop, but if someone asks you about Turkey or China, you become very thoughtful and measured because you're a total prostitute for money and you're a truth teller in democratic free speech environments. And then you become, you know, I'm, of course, talking about Musk. It's great to work for CNN, where they, where they say to the reporters, we respect your rights to, to say what you want to say off camera versus working at Fox.

3:22Not everybody. I didn't like Oliver Darcy's newsletter. Because he went on background with you and bitched about a bad meeting? No, he did not. He did not. I didn't write one story about it. By the way, I haven't had breakfast. I'm hangry. I see that. I didn't write one story on this company. But nonetheless, I'm sure they're not happy that she did this, but she has a higher status. Like, I can say things that maybe others at Fox can't say. Oh, and also, I'm getting calls from my lesbian friends saying, you really don't know how lesbians have children from our last episode. I know. Many people were surprised by that.

3:57And by the way, I just want to point out, I absolutely don't understand how it happens. This is how it happens. Oh, Scott. We're moving on to lesbianism. I'm going to finish with Christiana Monoport. She's a real hero. I thought she elegantly did it. These are people she works for. She obviously has greater status, so can say more than other people at the company who are not allowed. There's a real, I know you don't think it's a big deal, but there is a real groundswell of upset within that company. And I think she articulated it with a lot of class. You know what I mean? Like, and I think that's a great thing.

4:27I think all news organizations have to get used to being covered themselves, including being talked about by the people who work there. And there's this old school idea that you're not supposed to talk about the place you work. And I think that's bullshit because, you know, you have to, it's a media organization. It's not, you're not working for Exxon or whoever. And so I think that she, as usual, met my already high expectations doing a classy dissent and in a really great way. I know inside of CNN, it's much appreciated because she has a lot of status and can do these things while others get slapped down.

5:00In any case, well done, Christiane. And Scott, if you have any questions about lesbian procreation, why don't you proceed? So they literally called and said, you really don't understand how lesbians have children. I'm like, of course I do. You guys cry and hug for several hours as Riverdale plays in the background, and a German shepherd pulls up in a Subaru and delivers a baby. Oh, my God. How can I be so wrong yet so wrong? Oh, God. I'm not even going to tell you. I don't even imagine. Oh, good God. We go to the doctor's office. We go to the doctor's office and get inseminated. That is how it happens.

5:38As you know, I've told this story before. I happened to be on the phone with Walt Mossberg while I was undergoing the procedure. Yeah, I was. He called me in the middle of it. That's what happens when you get to my age and Walt's age. A lot of procedures. Let me just say, if that ever happened, I would not be talking to you during such a procedure. or multitrust. You wouldn't be making rude jokes throughout any kind of insemination procedure. Thank you. So there you go. So just so you know, I do make jokes during insemination procedures. It doesn't work. Just so you know. If I don't bring some humor to me during that situation, it's a disturbing experience.

6:18Why did I even start? I'm trying to start this morning on an elegant way with Christiane Amanpour. And you take it right down to lesbian procreate. All right, whatever. We're going to move on. We're going to move on. You're in Miami. You and your virtue signaling around how much you like Christiane Amanpour. Who doesn't love Christiane Amanpour? Why don't you just not be a cynic about someone who's doing something great? Just say, God, that was cool. She's doing great work. Anyway, we have a lot to talk about. The CEO of OpenA says he wants Congress to regulate artificial intelligence. We'll get into that.

6:48I know you had a tweet situation on the whole thing. Also, the U.S. state bans TikTok outright. Shocker, it's a GOP state. And we'll unpack some of Elon Musk's latest failings. But first, the Supreme Court has punted on its Section 230 decision, like we said, Scott, in the case of Gonzalez versus Google, the one about the family whose daughter was killed by ISIS in Paris. The court sent a decision back down to the lower court, punting. Another related case, Twitter versus Tamna. The court ruled unanimously that Twitter did not provide assistance to ISIS. In that case, the family lost someone in an ISIS attack in Istanbul.

7:24The rulings are being called a win for social media companies because they are. We predicted they would not touch this thing. The courts are not going to be socially – social media regulating. Nor should they in this case. And Congress, of course, does nothing. So where does that leave things, Scott? Leaves them where they are. Yeah. And it's really interesting. Well, I don't know. Can you think of another body right now that has lost more credibility this quickly than the Supreme Court? No, no. In this case, I think they made the right decision. I agree. I agree. No, it's I think, like I said, I know we should just give Clarence Thomas a million dollars to stop being so corrupt.

8:05Just here. Just you need the money. Well, actually, it's an interesting point. And that is, should we be paying? And I think there's I think this is worth exploring. I wonder if we should be paying our elected officials a lot more money. And because I think a lot of them. Yeah, they are prone to. But then they need to raise money. Maybe the Supreme Court or regulators. Well, the Supreme Court also. But I do think a lot of these, a lot of elected officials have their eye on the paid positions and jobs. The next prize, yeah. And I think it's unhealthy. I think it ends up perverting their decision making.

8:39And there's something to be said for. I mean, we had Senator Warner on. Senator Warner can't be bought. Yeah. He's, you know, and I'm not suggesting we only have rich people in Congress, but there's something about maybe paying these people more that I think warrants consideration. Well, in any case, any thoughts on these? I think this was not the appropriate place for these decisions, and they were not correct. You cannot hold them accountable. This is not how – you know what? Change Section 230 if you don't believe – like, legislate. Rewrite it. 230 is the law. They interpreted 230 correctly.

9:09into, I just don't know what, I can't imagine the precedence it would set in the number of cases that we filed the next day if a tourist in Paris, which is a tragedy, who is killed by ISIS, is somehow they find Twitter liable for that. Yeah, that was Google. Oh, it was Google? Excuse me. But that to me just, okay, now what, right? Yeah. I agree with you. I think they got this right. I don't mind that they brought it and tested it, But it just seems like this is not what the law says. Again, change the law. The problem is not the Supreme Court here, although the Supreme Court has become a massive problem, I think, in terms of their ethics and standards.

9:48But this is Congress's job. This is Congress's job. This is Congress's job, as with most things. And they can either do it around this or AI or anything else, or they could not and then reap the whirlwind, which they have reaped. Anyway, there's a new group leading negotiations over the debt ceiling, and it's inspiring confidence across parties that the deal might happen. The White House has called on its counselor, Steve Reschetti, Budget Chief Shalanda Young, and Legislative Affairs Chief Louisa Terrell. Republicans are sending Representative Garrett Graves to negotiate. He has a pretty good reputation.

10:22Reschetti and Terrell are said to have the full competence of President Biden. I assume Young does also. So I, oddly enough, sat next to, was it a dinner where I sat next to Steve Ruchetti? And he's the most avuncular, sort of Midwestern-y, friendly guy I've met in Washington to date. He was such a lovely fella. So I suspect he was being that way. He's like that all the time. So I had a little more confidence when I heard his name. But I think he seems to cross aisles quite a bit and is very well-liked by the Republicans. I can't imagine he wouldn't be. In any case, will we get a deal before default day of June 1st, according to Janet Yellen?

11:00I think so. I think this is a loser. This is mutually assured destruction for both parties. Biden would look terrible. It'd be terrible for the country. The Republicans would come out of this. Look, it's just there's just the incentives are aligned here to figure this shit out. And that's what they're going to do. Yeah. I mean, there's some worry on the on the left. They're going to do these work requirements, but Biden said it's no big deal around payments. So there's that. And there's certainly worry that McCarthy will get more than he deserves for throwing a tantrum. Nobody loves giving into a tantrum, obviously.

11:37Yeah, what I've seen is, I mean, I'm curious to get your thoughts here, but what I've seen is basically Speaker McCarthy has said, wink, wink, just give me something symbolic that has no meaning. that I can throw at the crazies and say we got something. Yeah. Because. I wonder if they say that when the door closes. Like, oh, good fucking heavens. Like, anyway, sorry. Well, you know what? I forget who it was. I don't know if it was Senator Bennett. So that's something I thought that was really insightful. And it made sense. And that is, once the cameras go off, these people are surprisingly reasonable.

12:11And that is, we live in a society where the algorithms reward craziness. and that raises donor money from the crazies. And so people want to, once the cameras are on, they make these very bold, principled, angry statements and then they go behind closed doors and they're more reasonable. And what Senator Warner also said, which I thought was interesting, is that if you look at the last couple of years, it's actually been a fairly productive Congress. That is true. Especially the Senate. Especially the Senate, yeah. Yeah, that's true. I think the fact that they're doing it in front of the camera is like, does everything have to be this performative bullshit?

12:50Like, they're obviously going to get to an agreement. Said two people with three podcasts. Yeah, but we're paid to be performative bullshit, let me just say. These people, no, they're not. They're paid to, like, do the budget. No, they're paid to do the fucking budget. And it drives me crazy. Anyway, likely they will get to that. Wall Street will be happy. Stocks will go up, et cetera. Another story interesting, since I know you know this guy pretty well. I don't know. I know him just vaguely. WeWork CEO Sandeep Mantrani will step down. He became CEO in 2020, led the company to going public in 2021.

13:24WeWork has since struggled to turn a profit and earlier this year struck deals to cut debt by$1.5 billion. Current WeWork board member David Talley will take his place as interim CEO. Shares of the company have tumbled at the news, leaving them down 96 % for the year. Obviously, they're suffering from nobody's going to work or, you know, they aren't the startups aren't starting up as much, et cetera, et cetera. So what do you think? You were sort of positive on this guy. I know you, you know, you sort of smacked at WeWork for years, but you you had good thoughts about him. Sandeep is one of those sort of elder statesmen of the real estate business.

13:59He ran his general growth properties, very, very well liked. I wouldn't call his friends, but I've done some work with him. Very smart, very well respected. And my guess is he got an enormous pay package to come try and be a shepherd or a steward of WeWork. I would say that this is probably the beginning of the end of this chapter of WeWork. It strikes me as a similar situation. I haven't spoken to him or anyone else at WeWork. But it strikes me as being similar to when that very well-respected CEO of Vice left. This means the company is likely going to file chapter. It just doesn't. I read the numbers.

14:34It did$800 million in revenue and it lost$300 million. And this isn't a growth company with IP that can justify those types of losses. It means that the business just doesn't work. Yeah, it never did, did it? They spent too much money. They entered into a series of long-term leases that basically made it impossible for them to ever make money. No one's willing to look at this thing. The markets aren't willing to look at this thing as a growth company. And so effectively what you have is a company that is probably going to go BK. It'll be interesting to see if whoever the creditors are that take control of the company can go through and cherry pick the WeWorks that are making money.

15:09But this is, I don't know, enough already. Put this thing out of its misery. Yeah. Is there room for this kind of thing, office, like quick office rental space? Because the whole commercial office business has got to be, you've got to be crying almost every day. Well, that's the most interesting thing about this. And that is people will spend some time talking about WeWork and reminiscing, but they're exhausted by it. And the reality is it's gotten about 10 times more media than the significance of the company. What they'll talk about, though, is what it says about the larger commercial real estate decline coming.

15:42And this is the next, you know, Greece sovereign debt or the recession. The thing we're going to start wringing our hands over is the structural decline and the pain that's about to be felt in commercial real estate. And like everything else, it's nuanced. There are some buildings in Manhattan that are doing really well. And then there's other buildings in San Francisco that just got sold for 20 or 30 percent of their value just a few years ago. So but there is going to be a lot of pain. The enduring structural change out of COVID, if you look at e-commerce, even if you look at teen depression, everything is where it would have been had that maintained its growth rates before COVID.

16:23In other words, the biggest things, retail, e-commerce, they look, if you didn't know COVID had happened and you just looked at where they are, you wouldn't know that COVID happened. The structural change or the enduring structural change appears to be remote work. Yeah. Yeah, it's true. But, you know, it's morally wrong not to go back to work. I don't know if you know that. Elon Musk said that in a guy who makes cars so we can commute says it's morally wrong not to go back to work. It's morally wrong. In that interview on CNBC, did you know that? You're committing a moral offense to Elon. People should get off the goddamn moral high horse with the work from home bullshit.

17:00Because they're asking everyone else to not work from home while they do. I was still obligated to say that young people should get into the office. It's a feature, not a bug for young people. It is. It's just going to be a different kind of office. And I wonder if it's going to be more. You wonder if something like WeWork would do better if you create. You know, the one thing, the enduring attraction of WeWork was that they were kind of cool spaces to work in, right? And most offices are really – Oh, and flexibility. Deadly. Flexibility. And that was, to me, the most – it wasn't the beer or the kombucha on tap or whatever.

17:32I felt it was like it was a nice place to go. You felt okay going to an office. And that's – I think offices have to rethink that if they want to bring more people in. And through most of the country, people are going back to the office through much of the country, but not in these big cities. where people just can have choices and still have more power. But we'll see. And also, just to pause on WeWork, the real innovation around WeWork, so first off, it's not innovative to give someone$100 worth of office space and charge them$70. And that's what WeWork essentially has done. They've given you, it's like those mattress companies that were sending you$800 worth of mattress for$600.

18:08It's a great deal for the tenant. The real innovation around WeWork is that if you're an entrepreneur, and I've experienced this, the real estate industry would make you sign five-year leases and one-year deposits. It was just incredibly onerous and inflexible to get into this key component of organizational value. And that was an office. And they came in and said, just show up and then you can kind of leave when you want. But enough already. Take this thing out back and put a bullet in its head. All right. Then the EU's competition commission says it's game on for Microsoft's acquisition of Activision Blizzard.

18:43The approval is conditional. For one thing, the companies have to honor multiple 10-year deals, making Call of Duty available in all gaming platforms. They were going to do this anyway. Why wouldn't they? But the deal still faces hurdles. Last month, regulators in the UK said they plan to block it, and the FTC here in this country sued to do the same. The bid expires in July, but could be extended. What do you think? I mean, the European Commission holds a lot of weight here, moving it forward, if they get these conditions. I think it means the deal goes through. You know, the UK blocking it, the EU is the bigger, the bigger, I also wonder if it's political at all.

19:21I wonder if the EU is kind of fed up with that little Brexit bitch called the UK. And it said, all right, you know, you can, you can scream and get angry and throw your toys on the ground. But Europe is the second largest economy in the world. There's just no getting around. This is a huge win for Microsoft and probably creates momentum that they'll get this. The FTC is the one. If FTC settles with them and gets conditions, which they'll get, they'll sort of probably get similar conditions. It'll go through. And no one cares about the UK. Is it Brexit pitch? That's a really lovely term that you just made up.

19:53I just made that up. It's almost as good as the German Shepherd showing up in the Subaru. I'm more proud of that. I don't feel that was good. Anyway, yes, we both think this is probably going to go through. I think, you know, they would like to get it. If they don't, someone else will buy this company. And it looks like the game's in Lena Khan's corner right now to figure out what kind of conditions she can make it look good that she got some stuff out of them. You interviewed her. And then not have to go through this. I did last week. I just want everyone to know when Kara's interviewing someone important, who does she call and ask for questions?

20:26Who does she call and say, give me a couple questions? By the way, a bunch of anchors do that. Okay. Who does she call second? You. I called you. That's right. That's right. I did. Did you interview her? I did. Yes, I did. Last this week. It's up. It's up. Thanks for listening. Yes, it's a really good interview with her. And actually, she's had a much more. Should we all listen to it? I would say a less fire. Yes, we should. Less fiery tone. She's learned how to deal in Washington. She seemed very reasonable at the same time firm. It was a very. She's really. She's coming up to speed rather quickly.

21:03And still very firm on issues. She sort of whacked at Facebook quite a bit. She called them recidivists, which made me laugh several times. It didn't make Facebook laugh, but I like the word recidivist. She's like, oh, did I say that word? How did I come up with it? She's so smart. It's crazy. But yeah, she's probably going to do a deal with them. She'll do a deal with them. All right, let's get to our first big story.

21:28The nation's leading AI entrepreneur wants Congress to regulate artificial intelligence. Maybe. Sam Altman, the CEO of OpenAI, went before a Senate subcommittee on Tuesday to answer questions about gender of AI. He was joined by an executive from IBM, but unlike other tech hearings, senators were light with their criticism. They're even kind. They asked Altman about potential rules for AI tools. Here's one exchange between Altman and Senator Blumenthal, who's usually beside himself, of Connecticut. it. Should we consider independent testing labs to provide scorecards and nutrition labels or the equivalent of nutrition labels?

22:05Yeah, I think that's a great idea. I think that companies should put their own sort of, you know, here are the results of our test of our model before we release it. Here's where it has weaknesses. Here's where it has strengths. But also independent audits for that are very important. And I'm excited for a world where companies publish with the models information about how they behave, where the inaccuracies are, and independent agencies or companies provide that as well. I think it's a great idea. It was a love fest. That clip had been edited a little for clarity, but it was very much a love fest.

22:42It was a very information gathering feeling. They didn't attack him, you know, the way they did Zuckerberg, for example. You have tweeted, does he actually want regulation? You know, as you pointed out, Zuckerberg had said, regulate us while lobbying against regulation. There's no evidence that Altman is lobbied against regulation. He gave$250 ,000 to the Democratic Super PAC in 2020. He's also donated it to California Democrats. He called for three things, a new regulatory agency, a set of safety standards for AI and independent audits of AI models. He didn't call for transparency requirements around what data was used for training.

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23:22And he didn't call for prohibitions on using copyrighted works, although that's going to be a mess of trouble for a lot of companies. What do you think? Well, I thought at some point he was also going to call for the important conversation around gender balance or write a book on personal loss. I mean, I just – we've been to this movie before. Okay. And we live in a country where to be one of the wealthiest people, to be a billionaire, means to have people admire you, want your opinion on stuff, to laugh at your jokes. To be a billionaire in the U.S. is to be loved, and people want to be loved.

23:57I don't think he's a billionaire, just so you know. Okay. Yet. Well, he doesn't actually have a stake in this. Okay. All right. Well, let's play a game. Who said this? All right. We need a more active role for governments and regulation. October of 20. Mark Zuckerberg or Sheryl Sandberg. Okay. No, she said Sandberg calls for government regulation. That was June of 19. Google CEO Sundar Pichai, companies such as ours cannot just build promising new technology and let market forces decide how it will be used. That was June of 20. Twitter CEO Dorsey. Generally, I think regulation is a good thing.

24:32April of 19. CEO Nick Clegg. Much has been said about Facebook recently, but there's one thing we agree on. Congress should pass new Internet regulations. That's October of 20th. Snap Spiegel, our guy. We definitely support thoughtful regulation. That was in May of 2022. That is up to Congress not to pass it. I agree. I don't know. In this case, I think they are actually trying to be thoughtful and going around early to do these things. Now, whether Congress does anything is another story. Let me say, speaking of people I interviewed, Altman said a lot of what he told me in March when I spoke to him on my other podcast, which will not be named.

25:11Except here he went a bit further. Let's listen to that. Congressman Ted Lieu said there needs to be an agency dedicated specifically to regulating AI. Is that a good idea? I think people like us that are creating these very powerful systems that could become something properly called AGI at some point, those efforts probably do need a new regulatory effort. And I think it needs to be global body, new regulatory body, and then having existing industry regulators still do their regulation. Who should head that agency in the US? I don't know. Anyway, he had said this very clearly and has been talking about a global body.

25:52Same thing Lena Kahn talked about. She thought she had enough rules in place that she could do the regulation. And so this is way further along than other previous efforts, I would say. I would have to push back on you on that. But go ahead. I hope you're right. I hope that Sam is true to his word and he seems like a lovely young man. you like him. Everyone I know thinks a lot of him. And every piece of data says that he is full of shit and that he uses two weapons of mass distraction that have been used on us before. One, pretending to want to be regulated. And the new weapon of mass distraction is to refer to this company as the governing body, as a nonprofit.

26:35I think a hundred times the original investment goes back to the investors and management before it turns, the money goes back to a nonprofit. So they just shouldn't use the term nonprofit when they're talking about this company. Yeah, that is true. To create some sort of distraction that somehow they're more noble and not as profit motivated as everybody else. So I agree. This was a love fest. We have the Restrict Act. We have Antitrust and Amy Klobuchar. And there's always a lot of head nodding. We always think we're going to get something done. So you're right. Let's move to the part where we actually create that regulatory body.

27:07I think the first regulatory body should probably be or hopefully we can walk and chew gun at the same time. I like to be a division of NATO. I think we need cross-border, multilateral agency looking at this from a defense standpoint. I do think this is a defense issue. But enough already. Appoint somebody, get the commission going, have it be ground up, start with people who have technology backgrounds. But I just feel, I'm sorry, we've been here before and we always get our hearts broken. Well, let's talk about, I would agree. I would agree. But I think, one, this particular technology is not protected the way the other one is.

27:44So they knew there was nothing they could do. And so there is liability. So they're going to tread much more lightly. There's all kinds of significant copyright problems. There's going to be another hearing on that coming up. I do think Congress is doing the right thing doing these meetings. This was a little bit of a loaf fest, I would agree. I don't necessarily think they have to smack them. But it was more of a fact-finding mission. And I don't mind them doing that for a short amount of time. you know but let's talk about specific things we got a listener question via email let's read it out dear mr and mrs swisher that's funny do you think audio and visual media should have information about how much of the content written or form is generated by ai do you think there's there will be some kind of labeling system like organic food that media will adopt so the customers at least have some idea of what they are consuming thank you lars well lars i think that It's a great idea.

28:36And actually, so does Sam Altman. It's not a bad idea. Like, where's the provenance of things? I think you're going to have to have some sense of where they collated all your information from so you can judge it. I don't know. Scott, what do you think about that one? I think it's a good idea. And it gets to one of the economic points. And that is, if you're – I've been spending a lot of time, or I was spending time in something called a writer's room. And we've been talking a lot about the writer's strike. And if you feed into an LLM every episode of Modern Family such that you can help write the next great sitcom about an American family, those writers should be compensated.

29:17There should be some sort of tool that not only indicates what percentage is AI generated, and quite frankly, I don't think the consumer is going to care as long as they feel like it's good information or more importantly, it makes them feel good about themselves, whether it's misinformation or not. But what you're going to need is you're going to need something similar to what the record industry has done a decent job of in the music industry. And that is if you're KROQ 106.7, the greatest radio station in the history of mankind, and you play a bunch of B-52 songs, another amazing band, they at the end of the year send you a bill and say, okay, you've used this content to build your company.

29:50There's going to need to be some sort of likely AI generative model that says, this is where you have fed the LLM. This is the input to the LLM, and we need to compensate them. Yeah, and I think a lot of these companies have been, including ChatG, OpenAI, about the details of the sources of data and all kinds of things. They're trying to keep quiet about its training techniques, the amount of computing power. And so they're a lot less open because there is more competition. But here's the thing. If you're a nice white kid who's in technology, when you stand in front of Congress, the first three times are really nice to you.

30:26God, I just I literally have PTSD from this bullshit. Whether it was Marissa Mayer standing in front of Senator John Kerry saying about Google. Well, it's and he's saying the Seattle Post intelligence just went out of business in about two years because their classified business gone. And she was like, well, it's early, Senator. I mean, I just we've been here before. Yeah, yeah. Anyway. I would agree. So what would a regulatory agency look like and who should head it besides me? I would say the following. The most important thing is to get a regulatory body going. The second most important thing is to ensure that when someone takes an uber Kalanick-like approach with their generative AI and starts doing mendacious shit because they're like move fast and break things, that they get hit really hard really early.

31:09I think the algebra of deterrence needs to be set here that, okay, we're going to err on the side of prosecuting people that start generating misinformation around certain categories, regardless of whether or not you think you're an innovator, regardless of if a name brand VC has given you money. That shit's not going to hunt here. I think early and often. Yeah, well, it might not have the same First Amendment issues that stymies social media regulation. And as I said, may not be protected by Section 230. There is a lot more, you know, they can't just bring in false First Amendment free speech arguments that they often tend to make that sometimes are applicable and most times are not.

31:47So that's that. It's, you know, they have liability just the way The New York Times does or anybody else. That's right. But the hard part is, how do you reverse engineer it to if somebody creates, says, give me 10 or 100 or a million tweets that are automatically uploaded or content uploaded LinkedIn in the voice of a regulatory body or a legitimate medical journal that vaccines alter your DNA, it may be really difficult to reverse engineer it to the source. But let me, I want to circle back. I don't want to be a total Debbie Downer on this. The most positive thing about, in my view, all of this is that this is likely, I believe this is the most enduring technology since probably mobile.

32:33People say since web, I would say since mobile. This is really exciting. And the really wonderful thing is it's American. The best companies in the world doing this are in America. And that gives us an edge on our adversaries. That's going to spawn incredible economic growth. I think this is going to result in job creation, not job destruction. The most innovative product of the last 50 years has been the vaccines. And this is a close, probably number three behind either the web or mobile. And it's American. So that's very – Yeah. It's American. That said, when I interviewed him, and he also said it in Congress yesterday, he called for an international body, which I tend to agree.

33:11He compared it to the International Atomic Energy Agency. That said, nuclear arms and power have always been products of the government, not individuals and individual companies. And so that's a little different here. So how do you regulate private companies? You could sort of link it, I think, more to like CRISPR and cloning and things like that than you necessarily would the government. But it certainly – it has to be – there has to be an international standards body of what you can't make, like killer robots, no, yes on this, no on this. And so there's sort of rules of the road from the get-go.

33:45And that's what's most important is who is going to be the – it should be the U.S. leading this effort to create this international body. probably should come out of the State Department or I'm not sure where it should. I mean, it could come out of it. The president has got to come from the executive branch. I was also at a dinner with Tony Blinken, and he was very interested in the State Department being part of it. So I don't know which one would push forward, the Commerce Department. There's national defense. there's some sort of regulatory body to ensure that, you know, it doesn't get out of control or we create this, you know, move even further into a post-true society.

34:28But there's even three or four levels down beyond that. The thing I am most worried about AI is that I see this terrible trend that stuck during COVID. And that is people, specifically young people are using some sort of digital form of a relationship where they think they have friends, but they're not experiencing friendship. And rather than taking the risk of going out and making friends, meeting mentors, finding mates, they try and find some weak, low risk facsimile, whether it's Netflix or Tinder or porn that decreases their motivation to socialize with other people. And the result is a slow slip into depression.

35:10And I wonder with open AI, or I worry about open AI, if we're going to be able to create everything from fake friends, fake girlfriends, and reasonably good sex bots, where we have an entire generation of young people that mistake friends and relationships for friendship and actual relationships, and become more and more sequestered from each other. I mean, literally, the movie Her is playing out. I guess. I don't know. I didn't like that movie. Anyway, I'll have to go back and re-watch it. I kind of... The director asked me what I thought, and I was like, eh, at the time. I don't know. That's the first thing is a relation.

35:48That thing was ahead of its time. It'll send chills down your spine when you watch it again. I'll watch it now. Alright, okay. Or go... Probably a better film. What is it? Ex Machina? Ex Machina? Ex Machina? Yeah, that one I thought was great. The fact is, the AI was part of it, and I think the AI could care less. And that's... I could see a person falling in love with AI or can't see an AI falling in love with a person. And one of the most rewarding things in life is to have real desire, real pining. There's a reason that romantic comedies are two hours, not 10 minutes. And we're creating a world with low calorie, low reward relationships where there's no obstacles or no disappointment.

36:25And it leads to a lack of life. It leads to a lack of victory of, you know, it's really exciting, speaking for a friend to get asked to a prom at a different school when four girls at your own high school say no to you. I can say this firsthand. It's really exciting. When you ask four girls to your prom at university high school and they all say no, and then someone asks you to their prom at a different school. I asked four girls and I said no. But that's life. That's the that's the wonder and the victory of life. And instead we're like, I know I'll have a fake relationship on a digital platform that's enhanced by AI and I'll never know real desire and I'll never know real victory.

37:12Interesting. Scott, stay away from the AI. That's all I have to say. I'm not going to tell you that I went to all four proms. That is unfair. That is unfair. Anyway, Anyway, Scott, I had lots of boyfriends and I'm a lesbian. So think about it that way. All right, Scott, let's go on a quick break. When we come back, we'll talk about the new TikTok ban out west and take a listener question about the future of writing.

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40:08Scott, we're back on our second big story. Bad news for fans of air fryers and crocodile videos in Montana. On Wednesday, the state became the first in the union to ban TikTok. Governor Greg Gianforte signed the ban into law. It imposes a fine on app stores that let users download the TikTok app. It also fines TikTok itself. If it operates in the state, there are no fines for TikTok users. This ban is set to take effect on January 1st of next year. Of course, it'll be overturned. Both TikTok and the ACLU-issued harsh statements, acutely bill violating the First Amendment. It completely does. This is such endless fucking virtual signaling by these dumb, body-slamming governor of Montana.

40:49The states should have no business here except for maybe banning TikTok and government things. It's just that they really need to stop. This is such – they were busy. They finished doing their anti-trans stuff, anti-trans performer bills, and then moved on to this one. They really should focus on roads and other issues in Montana, but they didn't. What do you think? I'm not sure I see the two as being equivalent. I don't – all I have to say about – It's just a waste of time. It's a waste of time for – I love the great state of Montana. I think it's incredibly beautiful. I don't like TikTok. I'd like it to be banned.

41:21So I'm – but you're right. In terms of – it probably doesn't make sense for states to start banning media. It's ridiculous. There is a real danger from China. But our governor from Montana is not going to help anything. And he's going to ruin it too at the same time because he's shredding the Constitution. You're right. I agree. It's just – it'll be torched by the courts. There's lots of ways to do it. And instead this guy just wants to jump out in front of, I don't know, Christine Ome or whoever the fuck is going to do it somewhere else. It's literally the reason I'm comparing it to the trans thing is they all just got on the thing when they should be doing stuff for the people in the state of Montana.

41:58It's not going to work. It's endless bullshit. And this guy has no business being just get off, get on the porch, young, young man. Well, it could be. It's not like it's not like he's a governor telling principals what pronouns they can use in schools. Oh, wait, that's Florida. Yeah, I'm sure he does have a bill like that. Oh, come on. They have whatever. All these states are doing these meaningless – the next one will be that lady in Arkansas. They all want to be president, and they don't think they can be – they can't inflame the crazies in every other state by just, like, making sure the fire department and the police department are working effectively.

42:35I can't stand it when governors run for Senate and vice versa. They are totally different jobs. One's lawmaking and legislative. One is an operational job. One is you're supposed to make sure the roads work, that when it rains, the sewers are actually working. Even water. Deal with water issues, Governor. I mean, come on. This is bullshit. And by the way, it also gets in the way of actual things our government needs to do around this particular company. I'm with you on this, Kara Swisher. I'm with you. I'm just pissed at this guy. We stand together. I will go out on a limb here and I'll say he's being, even if he's being truthful, he's not being neutral.

43:10He's not being truthful. Oh, stop it. You stop that. Listen, don't insult her because I will come to Florida. I will fly to Miami and slap you. I love Chris Donombo. You know, look, this also gives TikTok a lot of high ground that it probably deserves in this moment. But it doesn't allow you to really look at this correctly. And, of course, they've been deploying ads. You know, the senator said that. The result, everyone's a TikTok lobbyist. This is overreach on every single thing. Speaking of right-wingers in social media, Elon Musk tweeted an attack on George Soros this week, likening the billionaire to X-Men villain Magneto and said he wants to erode the fabric of civilization.

43:48Actually, Elon is eroding the fabric of civilization. One thing he didn't mention is Soros sold over 100 ,000 shares of Tesla stock in the first quarter. He said, of course, asked about his tweets and the conspiracy theories could alienate customers and hurt his business. He paused for quite a while because that's what he does. It's a part of his little stunt and I'm a genius and I must think for a minute thing. And let's listen to what he said. I'll say what I want to say. And if the consequence of that is losing money, so be it. Said every three-year-old toddler wanting to keep his truck everywhere in the world.

44:22Anyway, he certainly went on to say what he wanted. Here is later in the interview arguing that the man who killed eight people in Texas earlier this month was not a white supremacist, even though everyone else does, including the state of Texas. Go ahead. Ascribing it to white supremacy was bullshit. Okay. And there's no proof, by the way, that he was not. There's no proof. I would say that there's no proof that he is. And that's a debate you want to get into on Twitter? Yes. Because we should not be ascribing things to white supremacy if it's false. Yes, you shall not besmirch the good name of white supremacy.

44:59Didn't he have a swastika tattoo? Yes, yes, yes, yes. And the state of Texas. That's kind of a tell, isn't it? Mm-hmm. He had hundreds of posts online that including neo-Nazi material and white supremacy. I honestly, you know, you don't want to say bad things to someone from South Africa, but boy, is it bleeding through that terrible history of that country. One of the many things that bother me about, I have never understood the conspiracy theory and the hate that George Soros evokes. And for Elon Musk to say about anybody that they hate humanity, that's what he said about George Soros. George Soros hates humanity.

45:39George Soros is a Holocaust survivor. George Soros spends a dramatic amount of his wealth trying to promote democracy and freedom around the world. And I'm sorry, he hates humanity? So I don't – that is a really – that is a very aggressive thing to say about somebody. You know, I don't like, I mean, I don't like Elon Musk. I would never say that about him. But again, he's like trying to go red pill. I think he's angry that he sold his stock. Yeah, that to me. I've never understood. And Bill Gates gets some of that too. I'm like, thank God that we have these people who make so much goddamn money and then turn around and think, okay.

46:24You know, Bill Gates says, I'm going to try and cure infectious diseases. And George Soros says, I'm going to try and protect democracies all around the world. I'm like, well, okay. Billionaires could do a lot worse. I've never understood this red pill hate for George Soros. I just don't get it. This whole thing. Besides George Soros pretending this guy isn't exactly what he is. Like, I feel like if you have Nazi tattoos and several, you might be a Nazi. That's just me. Or you might like them. You might enjoy them. You might enjoy their repertoire. And I don't even know why he's picking this fight.

47:02And can you imagine Linda Iaccarino going, oh, wait, this is all she's going to do. He's going to say, and he doesn't care about money. Like, he does. Yeah, shareholders would like to have a word. So do advertisers. Yeah, but, well, there's no shareholders of Twitter, except his friends who just are like, Like, oh, Elon. By the way, Tesla said it was going to advertise for the first time. And that's what he said. That was a big takeaway from that. They said they need advertising. That's a problem. It usually just marked it on his fame. You know, they used that for years and years. At one point in one of their filings, they historically have been able to generate significant media coverage of our company and our vehicles and believe we will continue to do so.

47:43It was alluding to Musk. To date, the vehicle sales, media coverage, and word of mouth have been primary drivers of our sales leads and have helped achieve sales without advertising, traditional advertising and relatively low marketing costs. Now they might advertise. Thoughts? So, and I will bring this back to the story, but two nights ago, when was it? I got a call from Stephanie Ruhl saying, come on the 11th hour with Kara. It'll be great. With Kara. And I'm like, what are we talking about? And he said, well, we're going to talk about Elon Musk. I'm like, I'm out. I'm going to go drink. I'm done talking about this guy.

48:14He lives Renfri too much in my head. And I want to advertise it. Yeah, but I've got a bunch of calls from media outlets saying we comment on Elon and advertising. And I looked at what he said. I think it's just one of those things where he just said it off the top of his head. I don't think it means anything. I don't. One of the, in my opinion, one of the really most innovative things about Tesla is that is that Elon Musk has massively leveraged Twitter and new mediums to get the equivalent of billions of dollars in free advertising. And one of the reasons that Tesla has much greater margins than the other automobile companies is they spend almost nothing on advertising.

48:53It's like Lee Iacocca, right? And as a professor of brand strategy who made his living preaching about the power of intangible assets resulting in a rational margin and advertising, the reality is advertising, to a certain extent, kind of outs you as not getting it. And if you think about the best products in the world and the best companies in the world, Show me a company that's aggregated or acquired or accreted more than$100 billion in market cap within, say, 36 months. And I'll show you a company that doesn't really advertise like a traditional company in its sector. So this was another head fake to get a headline.

49:32I don't know. I doubt they're even going to do it. They don't think they're going to do it. I think they're going to need to. I don't think people are as hot on Tesla. They've got to find a way to sell them. Yeah. I think they're going to need to. They're going to need to be like doing their advertising. I don't think they can avoid it with the competition. There's too much. Yeah, he gets so much. He can, I mean, keep in mind, he doesn't have a - Negative now. Negative attention now. Before it was largely positive. You know, and the same thing with on Twitter, he's got at some point, he's got to get advertisers to want to advertise there, right?

50:06Maybe Tesla can advertise on Twitter. That's a key point. because this is the trick that Google and Meta used to do. First, they throw parties and they call these advertisers and people, their partners as they basically put a gun to their head and execute them. But they used to advertise a little bit, right? To maintain good relationships with their quote unquote partners. Can you help us? We're going to spend a little money, throw them a bone. Here's kind of your last meal. And we want to, Amazon would advertise a little around the holidays. And I don't know if they were testing it, if they were sincere about it.

50:41or they just wanted to maintain, you know, throw a few bones at the people that they were putting out of business. Except he needs advertising compared to them. They didn't need it. I think they do. I think Tesla needs it. I think they do. Look, the margins were down. The numbers were down. It's only – these aren't going up. These are not going up because of him anymore. They're not. That's a function of competition. The question is – No, it's also him. It's like he's – I literally – and I'm not just talking to like a lot of people are like, I have gotten so many emails and calls from people. They don't say they're woke people because they're not.

51:16They're like, what else is out there? That's the nature of people, right? They want something fresh. Yeah, they want some great cars now. So I don't know. I think he needs to advertise, and I think it's a very big expense. Yeah, but what you're saying, though, is that advertising offers an ROI. How is he going to get people to buy the cars if other cars are just as good and prettier? Honestly, they're all prettier than the Tesla now. Well, I mean, that's a different issue. That's a product problem. But what you have is the companies have added a lot of value. It used to be, I mean, I'm thinking about watching the entire, I love watching an entire series with my kid.

51:49And my 15-year-old nine just ripped through Game of Thrones, which is probably inappropriate, but it's bonding. And I'm thinking about when he turned 16, I would like to watch the entire Mad Men series again. I just thought it was amazing and so interesting. And it's such a lesson on kind of the, it's such a great period piece. And it's also a really interesting insight into work and advertising. And when I came at professional age, a good ad campaign could literally change the trajectory of a company. They could. Kia or Hyundai, I forget who it was, had this amazing ad campaign and it literally increased their market share three points, which is enormous in the world of automobiles.

52:26That doesn't happen anymore because people aren't glued to their TVs. People with any money aren't watching ad-supported media. Product innovation went through this massive golden age, unlocked with digital innovation. And all of a sudden, product and innovation and supply chain innovation became the way you built your brand, not advertising. So I'm not even sure a limited amount. Sure. But I don't know. At the golden age of Don Draper has been drawn. Well, I don't know how they're going to sell cars then because someone's got this guy's is getting negative attention and he doesn't care if it has consequences.

53:02But advertising isn't going to save him from himself. Yeah. He needs to butt the fuck out of this stuff and just work on the products. That's all he needs to do. But he's not going to do it. OK, Scott, let's pivot to a listener question. You've got, you've got. I can't believe I'm going to be a mailman. You've got mail. This question comes from two. Hi, Kara and Scott, not Mr. and Mrs. Swisher. As an independent author, I've been watching the rise of narrative AI with interest. Right now, their prose is fever dreams, but it's going to improve. Do you see a future for human authors? And if AI-written books flood the market, what can human creatives do to stand out?

53:37Thank you, Tuverd. I don't know, Scott. What do you think? Do you like the idea of being married to me? Be honest. I don't. I'm thinking of seeking a divorce. Yeah, I'm going to hire a very high-priced divorce attorney. I've already talked to every divorce lawyer in town to contaminate them. Thanks, Tom. I had the best divorce in the world. It was called my divorce tragically amicable. We're still friends. That's what actually made it more sad. I'm like, wait, why are we getting divorced again? Mine was amicable, too. Ours is going to be ugly, though. Ugly. AI written books flood the market. Can human creatives do to stand out?

54:16Can you stay on topic? Are you planning to divorce me? I am. Since the beginning. I just want you for your money and your apartments. I want the apartment in the settlement. Said every woman in my life, quite frankly. Yeah, exactly. I think I deserve it, honestly. Yeah. I really, in a weird way, I really do put out for you. Anyway, human creatives, what can they do to stand out? Answer two's question. That was good. I know. I'm getting better at these sex jokes. Every technology has a similar effect, and that is it consolidates the market. And it basically, if you're a middling lawyer drafting leases, vanilla leases, you're in a lot of trouble.

54:57If you're a writer who just does okay work but not great work, watch out. Here it comes. But if you're a thoughtful person that's creative and knows how to, AI is not going to take your job. Someone who understands AI is going to take your job. And this is, I'm already using Notion AI, one of our advertisers. And I will take, so for example, I will take, we're talking about, and this is going to be scary, about starting something called, you know, the original AI Prof. G. And feed in my book, my most recent book on, I wrote something called The Algebra of Wealth. feed in every transcript from every property podcast and create a generative AI that could potentially answer questions.

55:41But the thing is, the thing you feed into it is what makes it original or different. And so if you're someone who can produce really great original work, your compensation is going to go up. If you're someone that needs to constantly rely on generative AI for other stuff, you're probably in trouble. But if you're doing original work and using generative AI to help you, to inspire you, to fill in gaps, to make stuff better, you're going to become a warrior. So this doesn't make you obsolete, it makes mediocre people obsolete. And what will happen is there'll be unbelievable new businesses and there'll be new adjuncts and new services and new jobs created by these little companies and they'll become medium and big size companies to do really cool things with generative AI.

56:30There is an interesting thing. This guy named Jake Ward on Twitter put, we took a website from zero to 750K a month SEO traffic using 100 % AI generated content, 7K total pages generated hit 300K a month after six months, 750 after 12, 4K plus keywords and positions one and three, 13K plus keywords and positions four through 10. he did this whole breakdown. And to me, it's demand media AI edition is what it's doing for that market, right? If you remember demand media, who kind of was a content farm. And this is a version of a content farm. And he's right. Mediocre, you're fucked. Any press releases, earnings releases, things like that, anything that can be done in this way.

57:16And then a human checks it, sure, is gone. And much stuff is, much marketing material is just, it's easy to copy. It's easy to do. And so that's really, you have to be creative, really hyper-creative. Look, there are certain industries that are just going to, I've always thought that disruption is more a function of how ripe the industry is. I don't think, I think everyone's talking about writers right now, and I do have a prediction around the writer's strike. But I think the The industry that's going to – there's the mother of all chins right now is healthcare. I would not want to be a pathologist or virologist or radiologist right now because there's no reason – Radiologists have already been under siege, yeah.

57:55There's no reason why – AI is really good at looking at patterns and then predicting, all right, if you give me a million data points, I'll give you with really great accuracy what the million and first data point will be. And it strikes me that looking at stuff under a microscope and trying to understand what is the pathogen here, that AI is just going to do that better. And we've been over – I don't want to say we've been overpaying these people because the end practitioners haven't done as well. But the insurance company and the people have inserted themselves in the middle in the pharma companies, you got to think that that's where AI is really going to boom.

58:30Yeah, it's going to be a real – but books too, I'm sorry to tell you, there's a lot of mediocre writing out there. And this will be mediocre for you. And mediocre but necessary, banal but needed. Like, you just have to have it around. Like, here's your explanation for this and that and the other things. So there's – you just – you don't have the imagination big enough to figure out where this is going. But we have to move on. But go ahead. Last thing. But last point. Like, I like you all know, Hari, the guy who wrote Sapien. Yeah. Harari. Him with Armed with AI. Yeah. His next book, I can't even imagine the kind of content he's going to be able to produce because the way his mind works, his ability to connect instinct with human behavior and what the future might look like.

59:13I just don't think any AI can come up with that. But what he'll be able to do is say, all right, give me a history of homo sapiens in this era and what happened. And he will have just a level of rigor and research. He didn't have access before. If as long as it's from good sources, that's the thing. So we'll have to see. But you still will require creativity and a certain flair. Yval has a beautiful writing style, I think. So that is, you can start to mimic it, but it's still very hard to mimic certain people, like Scott Galloway, for example. God! No generative AI comes up with a German shepherd.

59:53My ex-husband, Scott Galloway, my ex, my ex, my soon-to-be ex. I'm taking the kids, albeit my sister's. If you've got a question of your own and you'd like them answered, send it our way. Go to nymag.com slash pivot to submit a question for the show or call 855-51-PIVOT. All right, Scott, one more quick break. We'll be back for predictions.

1:00:20Support for the show comes from Odoo. Running a business is hard enough and you don't need to make it harder with a dozen different apps that don't talk to each other. One for sales, another for inventory, a separate one for accounting. Before you know it, you find yourself drowning in software and processes instead of focusing on what matters, growing your business. This is where Odoo comes in. It's the only business software you'll ever need. Odoo is an all-in-one, fully integrated platform that handles everything. That means CRM accounting, inventory, e-commerce, HR, and more. No more app overload.

1:00:49No more juggling logins. Just one seamless system that makes work easier. And the best part is that Odoo replaces multiple expensive platforms for a fraction of the cost. It's built to grow with your business, whether you're just starting out or you're already scaling up. Plus, it's easy to use, customizable, and designed to streamline every process. It's time to put the clutter aside and focus on what really matters, running your business. Thousands of businesses have made the switch, so why not you? Try Odoo for free at odoo.com. That's O-D-O-O dot com.

1:01:24Support for the show comes from Odoo. Running a business is hard enough, and you don't need to make it harder with a dozen different apps that don't talk to each other. One for sales, another for inventory, a separate one for accounting. Before you know it, you find yourself drowning in software and processes instead of focusing on what matters, growing your business. This is where Odoo comes in. It's the only business software you'll ever need. Odoo is an all-in-one, fully integrated platform that handles everything. That means CRM accounting, inventory, e-commerce, HR, and more. No more app overload.

1:01:53No more juggling logins. Just one seamless system that makes work easier. And the best part is that Odoo replaces multiple expensive platforms for a fraction of the cost. It's built to grow with your business, whether you're just starting out or you're already scaling up. Plus, it's easy to use, customizable, and designed to streamline every process. It's time to put the clutter aside and focus on what really matters, running your business. Thousands of businesses have made the switch, so why not you? Try Odoo for free at odoo.com. That's O-D-O-O dot com.

1:02:31Okay, Scott, let's hear a prediction. So in the 80s in Britain, the coal miners, I think it was the national— You're doing a coal mining prediction? But go ahead. Go ahead. I'm setting it up. I don't want to be replaced by AI. Hi. I'm trying to provide some creative context here. All right. So I think it was the National Minecrafters or Mineworkers Union took on Margaret Thatcher. And basically, Thatcher said, this is my moment to show that I'm the Iron Lady. We need to move to different types of energy and just said no over and over and basically broke the back of the coal miners union. The same thing's about to happen here with the riders.

1:03:11They have the same skill set or a similar skill set to authors, to journalists, and they make a lot more money. In addition, this is a dream come true for the studios, an enforced multilateral pause in spending as they recalibrate and have cloud cover to come back with fewer employees. the union here the writers union has so badly miscalculated the power dynamic here and and the studios are going to slowly but surely quietly they are going to break their backs and this is going to end really poorly for the writers it's going to end i can't it's it's almost it i wouldn't be surprised if we found out that the studio has got together and said piss off and upset the writers' union so they go on strike and force all of us to stop spending in producing content.

1:04:04Because every individual is like, I got eight shows I haven't gotten to yet that I'd like to watch. So this is going to be remnant. This is the information age coal miner strike in the UK. It's going to end really poorly for the writers. They are totally, and all this virtue signaling with stars that make$10 and$20 million a year showing up and pretending that they stand with their brothers and sisters. I just think it's hilarious. You're going to see this union come back to the table and the studios are going to just do what used to happen to me when I was trying to raise money through the 90s with VCs.

1:04:36They're going to grin fuck them. They're going to say, that's interesting. Writers are really important to us. We should keep talking and they're going to do nothing. And then when a bunch of the writers that are going to be replaced by AI anyways, start thinking, I can't pay my rent and start putting pressure on the union to settle, the union's going to end up with a worse deal than they had going into this thing. So my prediction, the information age equivalent of the British coal miner strike is happening with the writer's strike, and it's going to end the same way. Who's Margaret Thatcher?

1:05:08So the studio heads are Margaret Thatcher. You don't get my analogy? I thought that was pretty good. I do. I get it. I agree with you. A bunch of writers and actors have written me, and I'm like, I think you're, I don't think you have leverage here. I don't see the leverage. Maybe I'm missing it. Well, you know who the culprit is? We're creative. We're creative is not enough leverage. And I applaud writers. They're angry. They're angry at the studio heads. The real culprit is all the kids who work for me at Prof G. They don't watch ad-supported TV. They all watch TikTok. 850 million creators on TikTok.

1:05:41Assume 1 % of them are any good. They have so misread the situation. And if I were a studio head, I would be thinking, oh my God, thank God for this union. They have given us a gift. Yeah. I don't know how many, their signs are creative. They're just the leverage. I don't see it. I don't see it. I get, I'm getting a lot of angry letters from writers, but I'm sorry to tell you, I'm not sure what you should ask for. And I agree it's, but they're going to be smaller writers rooms. They just don't want to pay as much and they're not going to have to on some level. And the danger here is creating a disgruntled group of creatives that work for you eventually because you do need creativity to really do well.

1:06:22But I have to say the leverage is not there. I think you're right. Good prediction, Scott. Good prediction. Do you have anything, Kara? No, I don't have a prediction. I'm just right. I just reported and correct. This is second week in a row. I don't know what I'm going to do the third week in a row. I'll think of something. I got two in a row so far. I've got to think about what I want to do. I want to. Unfortunately, I'm often right about Elon Musk stuff. Unfortunately, I'm often right. Yeah, that's that's your biggest problem. How right you are. I had a whole show on it with Ryan Mack and Zoe Schiffer today about it.

1:06:56But one thing that came out that Ryan just tweeted was about some guy suing him who was working on their operations team. And like they wanted to install shitty locks on in offices that would put people in danger and said, just do it because no one will catch us. Like this guy is alleging this. I just, every time I think I'm like disappointed, I'm like, you're kidding me. Like, really? Anyway, it's just, I don't have a prediction except that I'm always surprised by how the depths of bad behavior. Anyway, Scott, that's the show. We'll be back on Tuesday with more Pivot. Can you read us out? Today's show was produced by Lara Neiman, Evan Engel, and Taylor Griffin.

1:07:35Ernie Andertot engineered this episode. Thanks also to Drew Burrows and Mille Silverio. Make sure you subscribe to the show wherever you listen to podcasts. Thanks for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for another breakdown of all things tech and business. Kara, my wife, have a great weekend.

1:08:00Support for the show comes from Odoo. Running a business is hard enough, and you don't need to make it harder with a dozen different apps that don't talk to each other. One for sales, another for inventory, a separate one for accounting. Before you know it, you find yourself drowning in software and processes instead of focusing on what matters, growing your business. This is where Odoo comes in. It's the only business software you'll ever need. Odoo is an all-in-one, fully integrated platform that handles everything. That means CRM accounting, inventory, e-commerce, HR, and more. No more app overload.

1:08:28No more juggling logins. Just one seamless system that makes work easier. And the best part is that Odoo replaces multiple expensive platforms for a fraction of the cost. It's built to grow with your business, whether you're just starting out or you're already scaling up. Plus, it's easy to use, customizable, and designed to streamline every process. It's time to put the clutter aside and focus on what really matters, running your business. Thousands of businesses have made the switch, so why not you? Try Odoo for free at odoo.com. That's O-D-O-O dot com.

1:09:03Support for this show comes from SC Johnson. We've all been there. Choosing not to wear your new white shoes because there's a 10 % chance of rain. Bending awkwardly over the tiny coffee table to enjoy a sip of your latte. Not ordering the red sauce. Those feelings of dread are what we call stainxiety. But now, you can break free from your Stainxiety with Shout's Triple Acting Spray that has stain-fighting ingredients to remove a huge variety of stains, so you can live in the moment and clean up later. Just breathe and shout with Shout Triple Acting Spray. Learn more at ShoutItOut.com.

From the publisher

EU regulators say 'game on' for the Microsoft-Activision deal, WeWork's CEO is stepping down, and the latest call for AI regulation is coming from inside the house. Kara and Scott discuss the weak plan to ban TikTok in Montana. And Elon Musk continues to Elon Musk, saying he’s willing to lose money to say what he wants to say. Also, a prediction about the writer's strike.
Listen to On with Kara Swisher's episode, "Will Elon Musk Turn Twitter Into Yahoo Mail?" here.
Send us your questions! Call 855-51-PIVOT or go to nymag.com/pivot.
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