The AI Kept Choosing War

11 Mar 2026 · 34 min · 15 chapters

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In short

Podcast Episode Summary: The AI Kept Choosing War

Podcast Title

Possible Description "Possible" is a weekly podcast hosted by Reid Hoffman and Aria Finger that explores a brighter future through conversations with forward-thinking leaders in various fields, particularly focusing on technology and AI. The show integrates AI tools to enhance discussions and provide insights.

Episode Title

The AI Kept Choosing War Episode Description In this episode, Reid and Aria delve into new research on AI decision-making in simulated nuclear crises, highlighting the limitations of machine reasoning. They discuss the implications of AI in warfare, the rise of software agents as labor substitutes, and the future of AI-powered manufacturing in the U.S.

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Key Discussions

  1. AI Decision-Making in Nuclear Crises
  2. Study Overview: A King's College London paper analyzed AI models like GPT-5.2 and Gemini 3 in war game scenarios involving territorial disputes.
  3. Findings:
  4. AI models escalated to nuclear conflict in 95% of simulations.
  5. Tactical nuclear weapons were deployed in 76% of cases.
  6. The reasoning behind their decisions invoked classic deterrence, but none chose accommodation or surrender.
  1. Human Judgment vs. AI Logic
  2. Human Element: The importance of human intuition in crisis management was emphasized. Historical examples were cited where human decisions prevented nuclear escalation.
  3. AI Limitations: AI models reflect learned data rather than incorporating human emotional intelligence or contextual awareness.
  4. Discussion on Responsibility: The episode examined the balance between AI capabilities and the necessity for human oversight in critical decision-making.
  1. AI and Labor Economics
  2. Rise of Software Agents:
  3. A job listing for an "agentic AI developer advocate" signified a shift where AI could perform tasks traditionally done by humans.
  4. Discussion on whether this trend indicates a new labor market where AI agents are hired instead of people.
  1. Manufacturing and Economic Competitiveness
  2. AI in Manufacturing: The episode concluded with a debate on the role of AI in revitalizing U.S. manufacturing:
  3. Highlighted Bob McGrew's startup aiming to automate manufacturing through advanced AI.
  4. Emphasized that AI must be integrated to make U.S. manufacturing competitive again.
  1. Future Workforce Dynamics
  2. Shift from Hourly Labor to AI-Enhanced Work: Reid discussed the potential transition from traditional hourly jobs to roles where individuals can leverage AI for productivity.
  3. Equity and Economic Prosperity: The importance of including a wide range of workers in the benefits of AI and ensuring equitable distribution of wealth generated by AI advancements.

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Key Takeaways

  • AI's Decision-Making Flaws: Current AI models may not adequately handle complex geopolitical tensions without human intervention.
  • Human-AI Collaboration: Successful integration of AI into sectors like manufacturing requires collaboration and understanding between technology and human expertise.
  • Economic Resilience: Embracing AI technologies is crucial for the U.S. to maintain competitiveness in global markets, especially in manufacturing.

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Closing Thoughts The episode closes with a reminder of the importance of compassion and human values in the development and implementation of AI technologies. It is vital to ensure that advancements in technology serve to reduce human suffering rather than escalate conflicts.

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Episode Credits

  • Hosts: Reid Hoffman, Aria Finger
  • Producer: Pallet Media
  • Showrunner: Sean Young
  • Production Team: Tanasi Delos, Katie Sanders, Spencer Strasmoor, Imozu, Trent Barbosa, Tafadzwa Nimo-Rundwe, and others.

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This episode serves as an insightful exploration of the intersection of AI, warfare, and economics, emphasizing the need for thoughtful engagement with technology in shaping our future.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

AI Models in Nuclear Crises

0:45 to 2:15

Exploration of a King's College study on AI behavior in simulated nuclear crises.

“Tactical nuclear weapons were deployed in 95 % of situations.”

Understanding AI Decisions

2:15 to 4:24

Discussion on AI's decision-making process during territorial disputes and war scenarios.

“And so it's kind of like, look, it's actually trained on kind of pure rationality of a whole bunch of kind of human text.”

Human Oversight in AI

4:24 to 5:45

Importance of human involvement in AI decision-making to prevent escalation.

“But when we were going to higher alert because of 9-11, one of the things she says is we've got to call the Russians and we've got to tell them that we're going to higher alert.”

Anthropic's Stance on AI and War

5:45 to 8:11

Examination of Anthropic's position on AI's role in military applications and decision-making.

“It was saying in our judgment about where the capabilities of these models are right now, and we are experts in the development of the capabilities models.”

The Role of Relationships in Diplomacy

8:11 to 10:23

Discussion on the importance of personal relationships in diplomatic negotiations.

“And it makes Hegs Hess himself that crazy AI computer that escalates into bad scenarios where it makes the decisioning framework within the Department of War much smarter.”

Training AI with Compassion

10:23 to 14:00

Exploration of how AI models can incorporate mercy and reduce human suffering.

“It wasn't always, you know, puffing up your chest and saying, I have nuclear weapons.”

Navigating Compassion in AI Models

14:03 to 15:47

Explore how compassion and mercy must influence AI development.

“a source of violence and terrorism, you know, in a very bad way across the world and including in the Middle East, as I think a important thing.”

The Emergence of Agentic AI Roles

15:47 to 16:49

Discuss the implications of hiring AI agents for specific tasks.

“Last week, a company posted a job listing for something called an agentic AI developer advocate.”

Human Amplification vs. Replacement

16:49 to 19:06

Understand the balance between AI's productivity and the human workforce.

“The notion of having kind of AI agents doing work is already present.”

Embracing AI for Economic Prosperity

19:06 to 21:59

Learn about the importance of adapting to AI for future economic success.

“mass amounts of productivity amplification, what are the ways that we can be helping human beings economically, but also in finding meaning in the stuff that they're doing?”
Show all 15 chapters

AI in Manufacturing and Job Concerns

21:59 to 27:40

Examine the role of AI in manufacturing and the fears of job displacement.

“But the short answer is you want to have the companies that are generating that wealth because then you can then address the distribution issues.”

The Future of Work and AI's Role

27:40 to 28:00

Discuss the potential future of work in relation to AI advancements.

Collaboration Between Workers and Companies

28:00 to 29:25

Learn about the importance of collaborative efforts between autoworkers and companies for improved productivity.

“And, you know, part of what happens with offshoring capabilities is if you, you know, capital can always fly, capital can have kind of have offshoring.”

AI's Role in the Future of Manufacturing

29:25 to 31:02

Explore how AI integration is essential for the success of the manufacturing industry and the necessity to adapt.

“You're not allowed to use AI in the writing room.”

Global Manufacturing Competition

31:02 to 32:35

Understand the challenges posed by global competition in manufacturing and the need for innovation.

“is helping manage, train, evolve the AI in various ways.”
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Transcript

Automatic transcript. May contain errors.

0:00Reid:Reid, it is lovely to see you today. First question, I want to talk about a fascinating academic paper out of King's College London that came out last week, and it's looking at how frontier AI models behave in simulated nuclear crises. We often compare the AI age, the nuclear age, although there are many differences. And in this case, researchers ran 21 war game scenarios involving territorial disputes, regime survival threats, Cold War style standoffs. And they had models like GPT 5.2, Cloud Sonnet 4, Gemini 3. They played against each other as decision makers. And what they saw was across over 300 turns of play and nearly 800 ,000 words of reasoning, The models chose, unfortunately, nuclear escalation almost every time.

0:50Reid:Tactical nuclear weapons were deployed in 95 % of situations. They had full strategic nuclear war, happened 76 % of the time. And what's maybe more surprising is that the models weren't behaving randomly. They generated long chains of reasoning, explaining their choices, invoking classic deterrence logic like rationality of irrationality. I think the most important thing, perhaps, is that none of these models ever chose accommodation or surrender in any scenario. And so recently in the news, we've seen the recent interaction between OpenAI and Anthropic and the DoD. And so clearly using AI in times of war and on battlefields is top of mind.

1:30Reid:What do you think this says about how AI might impact nation-level conflict?

1:36Aria:It's a great question. And the depth of it actually illustrates a bunch of different issues to go into. And I will touch lightly as opposed to deeply on each one of them. But there's a bunch of really important issues. The first is, you know, to some degree, when we do all this kind of academic or other kind of theory and game theorizing world, it's to play to trying to highlight where we may need to add into our human responses. And that's what generates all of the analysis, text, political science, et cetera, which the AI agents essentially train on. You know, to some degree, well played in this very old movie, which I recommend to people, War Games.

2:15Reid:So fantastic. Even I've seen it. Yes. And so it's kind of like, look, it's actually trained on kind of pure rationality of a whole bunch of kind of human text.

2:26Aria:But the problem is, of course, those human texts are trying to balance out against a set of human biases where those human biases actually, in fact, have some very important plays in how actually, in fact, we need to have a compassionate, a humanist, a humanist future. And so, you know, in this classic punchline, spoiler for those people who haven't seen it, is the human character gets the AI to play a bunch of no-win scenario games to realize that there's no-win scenarios. And it isn't actually best played out by nuclear escalation in this particular case. Part of that is like where is the value of the human in the loop in these circumstances?

3:14Aria:And what a lot of people don't realize is we actually had a number of different circumstances where we were very close to nuclear war where a human made a decision of saying, oh, actually, in fact, I don't believe what I'm seeing in my sensors because I don't think that people would be that crazy and stupid. There was a Russian colonel who did that. There's a stack of things that it's actually important to realize in these circumstances where it's a, hey, what's the actual context of the circumstance? What's actually happening? What might be the irrational but, frankly, irrational but smart thing to do in terms of this and is to de-escalate and downgrade?

4:03Aria:Actually, I was just at a kind of a gaming scenario thing when 9-11 was happening. I was listening to Condoleezza Rice talk about this. But when 9-11 was happening, it was like one of the things that she had learned from some earlier war game scenarios that she had gotten prioritized on her calendar. She was like, I don't need to do this kind of war game scenario. But when we were going to higher alert because of 9-11, one of the things she says is we've got to call the Russians and we've got to tell them that we're going to higher alert. And it's not because of you. We don't need to have this escalating thing.

4:40Aria:And the Russians said, yes, we understand this because we've done the same thing too. We understand you're going to higher alert and we are going to a lower alert right now because we understand exactly what's happening here. And we don't want to create World War III, right, just out of this mechanics of higher alert, higher alert, higher alert. So you get to it's like, well, but the, you know, the AI people would say, hey, we can train this to not do this. And it's like, well, you can and you can't in this context alert. You can in some ways for doing this, but it's this kind of contextual awareness of this circumstance.

5:16Aria:And then, of course, the fact that you might say that winning the game in this case is de-escalating because even if we're surrendering or even if we're doing something else, it's what's the game that we're playing? And the game that we're playing is actually, in fact, survival of the human race. And actually, in fact, navigating that is really important. So anyway, so that's my first short answer to your first short point on your game. The other ones I think are people paying attention to the details of actually how Anthropic was responding to the Department of War was not saying we will never help in any of these circumstances.

6:01Aria:It was saying in our judgment about where the capabilities of these models are right now, and we are experts in the development of the capabilities models. There were two different points. There was one surveillance, mass surveillance on U.S. citizens, which is we as a private company are not going to provide capabilities for this. And, you know, just full stop and we're a private company. We're a country of freedom and liberties. And we're saying that's kind of a freedom and liberty we have. And the second one is to say on the making autonomous lethal decisions, we don't think that they're there yet.

6:42Aria:for that technology. We think that provisioning it is actually, in fact, bad, and we are the experts on this stuff. Now, to some degree, Hegseth responded in a way that is validating of the anthropic detailed point. They weren't saying we're not patriotic. They're not saying that we were not supporting our country in wars and in times of war in order to do this. They're saying we as the experts are doing this. And it's like, well, Hegseth is going, no, I'm the big dog here. You do what I tell you to do. And it's like, no, no, that's actually not the name. You're failing the Rorschach test in what the conversation is, which is the conversation is, is the technology actually, in fact, ready yet?

7:27Aria:It's Hegseth as being the stupid war games thing. It's like, no, I'm going to escalate. I'm going to nuke them first. And you're like, oh my god that's super scary because the actually the anthropic people here are actually being highly reasonable in what they're doing and what hegseth at all is trying to position them as being anti-patriotic they're saying we have a better decisioning than the than the department of war etc etc and actually you know i think if you go to rank and file within the department of war, I think you'll find them going, no, no, we understand what's being said here, which is the technology is not ready, right?

8:07Aria:And that that's actually, in fact, the point of what's going on. And it makes Hegs Hess himself that crazy AI computer that escalates into bad scenarios where it makes the decisioning framework within the Department of War much smarter. And so I think it's important for those of us who are smart people to say, no, this is not a politicization of red versus blue, of patriotism versus not, because actually, if you look at the details of what Anthropic is doing, it's actually saying, we're actually, in fact, talking about when the technology is ready. We are, in fact, believers in a democracy, believer in elected office.

8:55Aria:Hegseth wasn't elected, right, in terms of this. And being smart about what this means for impact on, you know, what can be like ending of human lives. And we think that technology is not ready for that in a independent theater point of view as experts in this technology. And so I thought that was an important part of that discussion that was badly covered in the general discourse.

9:30Reid:Well, we're all used to founders and CEOs like boasting about their technology and sort of saying that it can do more than it actually can, you know, saying, oh, no, no, it's ready. It's ready. And so when a founder CEO says, oh, no, my technology is not ready, we should probably trust them. They probably know the best. If they're the ones saying it's not ready yet, we should pause. You also mentioned Condoleezza Rice. And for those of you who hadn't listened, she was on Possible last year, a phenomenal episode. She understands, you know, geopolitics and war perhaps better than most.

10:03Aria:Better than the vast majority, not most, the vast majority.

10:07Reid:Better than everyone but five, or maybe she's the best.

10:10Aria:Yes, she's in the set of the best.

10:12Reid:Yeah. And so one of the things she said, sort of similar to what you were saying, is that the personal relationships mattered. When she got on the phone with someone, it's because she had a relationship with them that sort of this soft diplomacy mattered. It wasn't always, you know, puffing up your chest and saying, I have nuclear weapons. It was, okay, let's talk this through. So thinking about these AI models that continue to escalate or lead to nuclear war, do you think that's a problem in the models themselves? Or are they just reflecting back that perhaps the nuclear deterrence of the last 30 years was actually much more sort of aggressive and bellicose than we might have thought?

10:50Aria:There's two different problems in the current models themselves. One is the models are reflecting only the set of things that we have generated as kind of textual analysis and reasoning that we are using to modify our own behavior. But they're not including us and our behavior in that. It's like sometimes you need to not be blinded by like a human fear response or anger response. And you need to be, you know, only doing this. And that's what this stuff is doing because it's the body, the corpus of the material is meant to be training human beings. And it's one of these places where you go, well, actually, in fact, you know, these models are not human beings.

11:38Aria:The fact that they're embodying this kind of how we train human beings suggests that this is the kind of area where you'd want the humans to still very much be in the loop. And it's a very precise point for doing it. Now the question is to say, well, could you train AIs in ways that are not only kind of human in the loop? And the answer is maybe, but it's the nature of the technology is something you'd have to look at. This is one of the things that I've kind of learned from being in a number of conversations, you know, at the Vatican about, you know, what is AI since the, you know, Pope Francis and I briefed Pope Francis on AI.

12:17Aria:And one of the reasons why it's very useful for us as technologists to be in those conversations was like, well, you know, and we were talking about actually paroling and kind of use of the justice system. But it's like there's a role for mercy in human systems. Are you training your models to have a good sense of mercy in them? And the, you know, I think we normally kind of think of efficiency. We think of truth. We think of, you know, weighing all the evidence and all this kind of thing, which is, you know, extremely important parts of this. But you go, well, actually, in fact, would you want to have, call it criminal judgment, without some notion of mercy in it?

13:05Aria:You'd go, well, shit, not really. And can we train it? That's an interesting question, et cetera. And so I think that's another part that this highlights. It's in is, I think, really important for this stuff because it's not that I believe that there's never a place for war or violence or conflict in it. It's not a complete pacifism. But the notion of the fact that you want to be driven by a North Star of we're trying to reduce human suffering. We're not trying to prove that, you know, I am the most alpha or I am the most biggest man, et cetera, et cetera. And that the notion of paying attention to, you know, reducing human suffering across the board is an important thing.

13:59Aria:And reducing human violence across the board is a really good thing. And that you're making decisions that way, not by being, you know, unwilling to step up in the wrong circumstances, because sometimes you have people, you know, like I think the Ayatollah community has been a source of violence and terrorism, you know, in a very bad way across the world and including in the Middle East, as I think a important thing. but you also need to be paying attention to, you know, like, well, you know, that whenever you engage in this, you're causing a lot of people to die and suffer in, you know, like what's the way that you minimize the amount of deaths, period, not, hey, it's only all of those people who we don't care about deaths.

14:52Aria:And how do you navigate that is, I think, is very important and where that would play in to how you're building AI models, what the notion of compassion is, what the notion of mercy is, what the notion of minimizing deaths and suffering overall is, is important. And, you know, like that's where you'd want all of this dialogue to be, as opposed to like the, you know, I am the big man here. You do what I tell you to do.

15:22Reid:Yeah. I mean, it's just So like whether we are patriotic Americans and we want the best for our country, to your point, this this mercy and compassion, we certainly want it in geopolitics and international relations. But as we are training this A.I., like that has to be included. We can't just build sort of smart machines. It must be something that takes into consideration those things as well. So let's let's head to a slightly lighter note than the nuclear war and bombing. Last week, a company posted a job listing for something called an agentic AI developer advocate. And this quote unquote employee isn't necessarily a person.

16:03Reid:The company is looking for someone to build an AI agent trained on certain workflows. They can create content, run growth experiments, and provide product feedback. The company will pay$10 ,000 a month to the developer who maintains that agent. And so in other words, instead of hiring a person for a role, they're effectively hiring a piece of software that someone built and is maintaining. And there are humans in the loop. They want humans to check all of the content that's going out the door. And so my question for you is, is this just a stunt or are we actually seeing the early version of what a new labor market will look like?

16:42Reid:Because we're all trying to predict that labor market. And is it this where people build agents that work for them and are hired out to companies?

16:49Aria:Well, it's definitely a clever stunt. So credit to the stuntiness. But it partially is a clever stunt, not just because it deals with a bunch of current human fears and concerns and everything else, and so therefore gets a whole bunch of attention because of it, but also because it's clearly versions of, call it, some new labor market. The notion of having kind of AI agents doing work is already present. But I think it's a, like, this is a lens. Part of the reason why the question is good is a lens to how certain parts of work and labor are moving towards. Now, part of it is I think that we as a society and we as industries and we as companies and we as technologists need to be kind of saying, hey, look, it is a natural part of building productivity.

17:48Aria:Building productivity is part of how we create, you know, progress in society and part of how we make that happen. But we do, of course, need to be paying, you know, a lot of good attention to, you know, how do we have human amplification? It's part of the reason why I did super agency. Super agency wasn't just for, hey, look, be a little bit more positively minded, bloomer versus gloomer, bloomer versus doomer, you know, as ways of doing this. But it's also to say to the zoomer technologist is to say, hey, pay some attention to being bloomers as well. and to be thinking about how do you build this stuff in relevant ways.

18:30Aria:Because it's not to say make your technology less useful, less economically impactful, less, you know, like never do replacement. Of course, sometimes you do replacement. We replaced a bunch of groomsmen people who are doing horsework when we started building cars, that kind of thing. But it's like the, but also be paying attention to a lot of amplification. in terms of what we can do. Now, that also gets to, you know, kind of questions around, you know, society and industry. And because, you know, say, well, even if we're building mass amounts of productivity amplification, what are the ways that we can be helping human beings economically, but also in finding meaning in the stuff that they're doing?

19:16Aria:Now, part of the difference that I have from some technologists who are like, oh, my God, This is going to be here in a couple of years and so forth. I actually think that there is actually, in fact, a whole bunch of pacing, human organization things. One, that's not necessarily the universe. And two, it's not like AI robotic factory is going to be building other robots any time really soon. And there's a lot of human in the loop and human combination. And we should be building AI agents to help human beings in those circumstances and help navigate. And it's also one of the reasons why for, you know, gosh, I've now lost track of the number of years that I've been trying to advocate for the creation of key human assistance agents running there.

20:09Aria:So even as we have job transformations coming, like everyone can see some of the benefit of AI. Like if you have a medical assistant, an educational assistant, a legal assistant, and they're all there, and all of a sudden you're like, hey, I'm a working class person, but I get benefit. And my children get benefit from the medical assistant, from the educational assistant, from the legal assistant. And so even though jobs are changing, and this, by the way, a lot of white-collar jobs are going to be changing, I'm even seeing benefit even though most people do not like to see job transitions. They don't like to see – like the people who are doing all the horses did not like to see cars coming.

20:49Aria:Absolutely. The people who are doing all of the hand loom did not like to see the power loom. But by the way, the embracing of those societies is part of what makes you have an economically prosperous society, part of what makes sure that your children are part of a and your grandchildren are part of a economically prosperous society. And so those job transitions are hard and not easy. And you say, well, let's at least slow them down. It's like, well, slowing them down means that other people, this is part of the reason why in super agencies said, look, England did not invent the Industrial Revolution.

21:25Aria:They just embraced it more thoroughly, which is the reason why they had a centuries-long empire, whereas France, which had kind of four times the population, or China, which had 10 times the population, did not do this. And it's one of the reasons why it's important to say, hey, in the economic prosperity that's coming from having AI agents doing work, we want to be embracing that as a society because it's actually, in fact, really important relative to the future prosperity of our society. And he's like, well, but there's all these, you know, kind of wealth division issues, like how does it divide between us and those people, between these companies and those companies, and, you know, not just big tech companies.

22:10Aria:But the short answer is you want to have the companies that are generating that wealth because then you can then address the distribution issues. If you try to mess up the fact that you're leading in it, then you don't have anything to distribute. Right. And so it's important to be saying, hey, be foot forward on the economic things. And then, of course, be also addressing distributional issues.

22:36Reid:Well, when you're talking about this job transition and sort of thinking about units of work, you already have people saying like wage work is for suckers, salary is for suckers. You know, the thing that we want to do is to put our capital to work for us. And in the future, you know, is it going to be that the economic shift is going to be from a unit of a person's time to a person's software? Like already we have someone who is working at CVS or Starbucks, like they put in an hour of work to get their paycheck. There's nothing they can do to get more money except that hour. But we have other people who are sort of augmenting or they're having AI help them out.

23:15Reid:And so in the future, is that just going to get even greater where you have the people, you know, you have the nanny that's coming to watch the kid and she's being paid hourly or he's being paid hourly. But then the person who's creating software or AI agents has sort of a multiplication effect that the other folks don't have.

23:30Aria:Yes, we are on a trend that direction. We've already been on a trend direction. It's actually part of the thing that kind of led me to essentially the path that I was on is both my parents are lawyers, both kind of highly paid and I was like, well, actually, in fact, you want to choose career paths and work that's not, you know, kind of by the hour. Like it's how do you, you could put this in various colorful ways. How do you make money when you're sleeping? Because you, you know, have capital, loan assets, et cetera, and done things. There is a question about there's a limit to how much you can charge per hour when you're kind of growing.

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24:09Aria:And it's part of the reason why, you know, kind of thinking about, you know, the first my first book, Start a Few, being entrepreneurial is thinking about like not just being hourly. Now, I think there will still be a lot of people to whom their jobs are hourly. And that's what happens. But I think it's moving much more in that direction. And of course, you know, what we want is we want more of people to have this kind of benefit of, you know, amplification beyond just the kind of hourly, you know, benefit. Now, you know, in a bunch of different kind of middle class and, you know, upper middle class jobs, you get a little bit of this from the derivative of your 401k being invested in the stock market and all the rest.

24:52Aria:It's one of the things that I love about the Silicon Valley, you know, building ethos, which is include everybody on the equity table in terms of what you're building. I mean, you know, you know, assistants and everybody else actually, in fact, get some equity, too. And I think that everybody gets some equity is, I think, an important lens by which Silicon Valley kind of says, hey, this is a way we operate. This is a way we create. It's actually one of the important general lessons from Silicon Valley, not just technology, not just, you know, great ambition. But that kind of shared equity is, I think, another thing that really matters.

25:29Aria:But we want to move more of it to it. Now, it may be the, hey, I'm doing nanny. I don't know if there's an equity arrangement. Maybe there is. Training AI, et cetera, et cetera. But like that kind of thing is we generally speaking want to move in that direction.

25:42Reid:One of the things we always talk about this job transition is manufacturing. Every politician is paying lip service to how do we, you know, reshore jobs to the United States. And, you know, my personal opinion, none of the policies we've done over the last year were actually pointing that direction because we're actually losing manufacturing jobs. But you have long said that the only way that this is going to be successful is if we're using AI. and if these are sort of highly skilled jobs. And so the question is, we saw last week it was announced that Bob McGrew, who used to be OpenAI's chief research officer, he's launching a startup called Arda, and it's trying to automate manufacturing using AI.

26:20Reid:The company is reportedly raising about$70 million at a$700 million valuation, and it's backed by firms like Founders Fund and Excel. And the idea is to connect frontier AI systems to the physical world. A lot of people are talking about this and trying to do it. And in particular, this platform analyzes video from factory floors, uses that data to train robots and software systems so they can coordinate the entire production process from design to finished goods coming off the line. And one of the reasons they want to do this is geopolitical. They want to make manufacturing dramatically more automated so that it is economically viable to move production back to the US and Europe instead of relying on China or Vietnam or some other countries that actually they can produce goods more cheaply.

27:06Reid:So people reacted to this sort of the same way they reacted to the developer advocate role that we just talked about. And they were anxious. because this sounds like the beginning of full job replacement. Instead of creating more manufacturing jobs for Americans, we're saying, oh, no, we're going to we're going to onshore, but we're going to onshore with robots. What do you think about that take? And do we think that this is actually possible or are we still years and years out from, you know, these these AI robots taking our jobs?

27:40Aria:First, I acknowledge the worries, you know, kind of the classic thing as the American autoworker when, you know, kind of the companies were trying to figure out how to have increased their profit margins and everything else, you know, offshored the jobs to kind of other kinds of places. It's among the things that had effect. Now, part of it is I think that the autoworkers and the company weren't as aligned as well as the Germans do, saying we should collectively be collaborating together about how do we not, it's not an oppositional between company and union thing. It's like, we should be like working this together to work the problem together, to, to, to, to increase our, our product capability everywhere and to both share some pain in doing this as opposed to, no, no, you have the pain.

28:34Aria:No, no, you have the pain. And, you know, part of what happens with offshoring capabilities is if you, you know, capital can always fly, capital can have kind of have offshoring. And that's actually in fact, you know, kind of difficult to do and change in this regard. And so, so I understand the anxiety for it, and especially given kind of a, you know, there is, you know, a bunch of capital that says, well, we don't care about you. You know, we're not going to share anything. We're just going to do it all ourselves. And so it's not just trust as I do think it should be aligned. this way, but it needs to be aligned together because the industries that will succeed in global competition are the ones that are AI amplified.

29:13Aria:If you go, oh, I'm going to slow down or break your AI thing, which presumably you can do in at least a number of circumstances, you may delay. I mean, look at Hollywood as a little parallel to this. You're not allowed to use AI in the writing room. Basically, of course, what happens is everybody, probably 90 % goes home, uses AI at home, brings in the thing themselves and does that, but is making themselves a lot less efficient relative to other kinds of things versus saying, how do we use AI in the writing room and how do we make ourselves work well in this circumstance and what are the ways that we navigate in order to do this?

29:52Aria:And so I think that there's a similar kind of thing here, which is to say, hey, look, we need to do this. Let's do this maximally collaboratively, right? And that doesn't mean that I'm not my job. Just some jobs won't change. Some jobs won't go away. Some jobs won't be created, but you need to do that. And frankly, we won't have in the US a successful manufacturing industry without AI. This is precisely when I was kind of going around to people saying, would you like to return to manufacturing industry? And they go, yes. And you go, great. you should be trying to figure out how to use these AI companies and kind of shape the AI companies to help make this happen.

30:31Aria:Because this is the only way that this is actually going to frankly happen. And then if you say, well, but I want to be working in the manufacturing industry, it's like, great, you need to be working, figuring out and people need to be working with, how do you collaborate to make that happen? So I look at Bob's company as a potentially very patriotic company for kind of what's happening here. I think we need to have more of that. We need to be having the tech companies helping the other sectors in the American jobs do this. And by the way, a little bit like the developer advocate, it may be the, hey, what we're really doing is helping manage, train, evolve the AI in various ways.

31:11Aria:And you say, well, but there's too few jobs doing that manufacturing. It's like, well, then let's get into a lot more different kind of manufacturing circumstances. It's a little like people say, well, I'm going to be a lot more productive. The company is going to be a lot smaller. Okay, let's have a lot more companies, right? There's no necessarily restriction on the number of companies. There's no, you know, and there's many different kinds of jobs where there's essentially infinite demand. Now, it's a little bit of the problem that you have to think of in, you know, one of the benefits we had post-World War II is we had the only manufacturing, you know, kind of base that hadn't been bombed out by the war so you could have a high school degree and then you know own a house and two boats and you know and you know send your kids to college well that that you know uh the bar is higher now because there's manufacturing everywhere in the world not just the many cheaper places like you know china has done a great job of creating an enormously efficient manufacturing industry um and you know it's kind of like you got to win the it's like saying, hey, we're playing the Olympics.

32:18Aria:We got to play just equally with everybody else or understand that a whole bunch of the different games are playing equally. We can't say that, hey, everybody else has lead weights on their feet and now we're running the race. And so you have to kind of play into that and play to how do we increase our performance in terms of how we're operating.

32:35Reid:Makes so much sense. Reid, really appreciate it. Thanks so much.

32:38Aria:Always fun. Possible is produced by Pallet Media. It's hosted by Ari Finger and me, Reid Hoffman. Our showrunner is Sean Young. Possible is produced by Tanasi Delos, Katie Sanders, Spencer Strasmoor, Imozu, Trent Barbosa, and Tafadzwa Nimo-Rundwe.

32:55Reid:Special thanks to Surya Yalamanchili, Sayida Sepieva, Ian Alice, Greg Beato, Parth Patil, and Ben Rallis.

From the publisher

Reid and Aria unpack new research on AI decision-making in simulated nuclear crises—and what it reveals about the limits of machine reasoning. They explore why frontier models consistently escalated to nuclear conflict in war game scenarios, and what that says about the enduring importance of human judgment. Then Reid examines the rise of software agents that can be hired like employees, and the broader shift from hourly labor toward ownership and leverage in the AI economy. The episode closes with Reid and Aria debating AI-powered manufacturing—why automation may be the only viable path to rebuilding U.S. industrial capacity, and why embracing AI-amplified industries is essential for long-term competitiveness.

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