Intel Stock and Market Predictions

This episode is brought to you by the Build Podcast, a new podcast from the guys behind Sincera, Michael Sullivan and Ian Myers. Mike and Ian built their company by figuring out clever solutions to a few important ad tech problems in their industry. And that philosophy is exactly what this show is all about. In it, they interview some of the smartest tech minds in the biz to hear about how they identified opportunities, solved their hardest challenges, and grew their businesses in the process. Listen to the Build with Michael Sullivan wherever you get your podcasts . Have you ever pretended you're someone else? Pretty much twice a week with you, Cara . Hi everyone, this is Pivot from New York Magazine and the Vox Media Podcast Network. I'm Kara Swisher. And I'm Scott Galloway. Scott. I was in San Francisco. I did a lovely event with Gavin Newsom and Ann Lamont, an unusual pair, and the crowd was lovely and asked me all about you in a good way. In a good way. They were asking upon you. Can you help him? Um . Well, every now and then I get that. What was the event? It's um my sister-in-law has a thing called Refugia, it which helps take these sort of empty public spaces to bring people together and use this native grasses that don't don't need a lot of water and create things for older and young Where are you now? You're in a hotel now, where are you now? I'm in New York now. Oh, you're back in New York? Yeah, I'm interviewing. I have three podcasts today and Mickey Cheryl tonight, the governor of New Jersey. I'm also interviewing the Devil Wears Prada people today, the director and writer. It's getting amazing reviews, just as I said it's but you don't like sequels, but this sequel is good. No, I like sequels. I just think Hollywood's running out of anyway. Trevor Burrus Let me say this one isn't. This one is worth the wait. It's 20 years. It's about a kid who who lived in a a pretty upper middle class family, but he he had aspirations of more because he was in a private school with a lot of uh oligarchs kids and he pretended he was an oligarch's kid and ended up dead, um thrown out a window. They Yeah, it's an astonishing story. And they're saying it was suicide, but maybe it was a homicide, and he got all mobbed up with Russians and uh various people. It's it's really something. I read it on the plane. It must have been I would imagine that took place a while ago though, because most of the Russians have left. Well I don't know, I guess, but I don't know. Have you ever pretended you're someone else? Aaron Powell Pretty much twice a week with you, Kara. No. I pretend to be thoughtful and a good person. There's definitely something interesting interesting about the spectrum between I mean there's some truth to the fact that you never meet someone, you meet their representative . And so I don't like there's a scale, right? And the same is true of entrepreneurs. At what point are you are you a visionary or a psychopath liar? I think there's a lot of that in society, and quite frankly, some of it's a strategy. Yeah. But have you like said you did something else? I've never done that. I'm I'm exactly the same. Oh no, I don't not no, I don't quite frankly, not because I'm ethical, but because I'm smart enough to know the in a digital world they'll find out. It is hard today to do it because everyone's searchable, right? I mean anyway. Yeah. I don't know. Actually a few times I've said I look good naked, so who would you say if if you could be like if you could pretend you were someone? If I could like pretend I was them or switch places with them? No, just like say, hi, I'm Scott, I'm a blank fireman. I don't know. Um I've never thought about , oh, I wish I was this person. It's taken me a long time to like this one. I know, I know. It's interesting. You want to be you. Um I was on Outward Bound and when you got there many years ago in my twenties, they wouldn't they said, do not say what you do for a living to anybody, like so that we don't know, right? That you talk about anything else but your job, which is very hard actually. And I was just in my twenties, so I wasn't that far along and but I was clearly a reporter. And at the end of the it was like I don't know, two weeks or ten days or something like that. They said all the jobs of everybody and we were sitting in a group at the last session and you know, talking and we got to really know each other, but you couldn't talk about what you did, which is really hard. And um and it's actually a really good exercise, I have to say. And they had the n well all the jobs around the around the circle, and nobody got anybody's job right. Everybody thought someone was someone thought I was a like a a um a defense lawyer. A mechanic? No, a defense lawyer. That I was I I was like a killer a killer lawyer. That's what they thought I was. Killer lawyer. Well that's you kinda are. That's pretty that's actually pretty accurate. You know what did not get me laid in two thousands New York? Oh roll up to a bar, finally get a rap going, order a drink. What do you do? I'm a teacher. Oh. Isn't that nice? I gotta go. I gotta I gotta go find somebody who can take me to St. Bart's next week. I think that's sexy now. I think today it's a cool job. What you hear from a lot, what I can spot immediately though. I ask people what they do all the time. I don't I think it's interesting. I'm not trying to sell or assess their importance. I just find it really interesting because quite frankly, pretty much all I do is is work, and that's kind of my identity, which is pathetic. But I find it really interesting. The general difference between or a difference between U.S. and Europe is in the US, people ask, what do you do? In Europe they ask, where are you from? But what I find what I'm running into a lot, a lot of young men come up to me in when I'm when I'm out in New York and I'll and I'll say, What do you do? And you can always tell the the um son of a rich kid, because they go on for about a minute trying to describe what they do. And it's clear like, okay, you do nothing and someone else is paying your bills. They they talk about some convoluted or they're trying to start a platform for creatives or artists, or they're starting a membership club or it's like, oh, you have rich parents. Anyways, I can sniff out Nepo babies pretty quickly. All right. Well my kids all work hard. They have good jobs. Anyway, let's get to the news. The FCC, this story, Scott, has ordered Disney to file early renewal applications for its ABC owned broadcast licenses. These are affiliates in different cities, years ahead of the normal schedule. The commission is citing an ongoing investigation into Disney's DEI practices as justification. More notably, it comes days after Trump and Melania Renewed a push to take Jimmy Kimmel off the air after he made a joke about Melania being an expectant widow. Uh Disney is pushing back hard. The new CEO is not having it and he's being supported by a range of companies and everything else. This is a step too far for our good friend and moron, uh Brent Brenda Carr. Um I'm calling him Brenda , um, who is a moron. He's a moron and he's just such a nakedly political, although I wouldn't want to say him naked, um, speaking of naked, uh political person who is just carrying water for the Trumps. Melania doing this was, you know, fascinating. But no, Kimmel's just emboldened and has put out a series of things. And no one's no one is putting up with this shit and they're gonna lose. The FCC is gonna lose in court. But what a harassment of an American company, a classic American company. What do you think about this? Well, I actually saw Kimmel's response. I mean, the reality is late-night TV is dying without the help of Brendan. Sure, exactly. And in a weird way it kind of helps. I think Jimmy Kimmel, all the late night people are extraordinarily talented. That is to be quick on your feet, hardworking, come up with new material every night. They're extraordinarily talented people, all of them across the whole spectrum. And I'm actually trying to get Jimmy Kimmel to come be the interview for our uh proxy markets live in Saturday in uh Los Angeles. And it was Jimmy, call me. So I think it'd be very interesting to have him talk about it. I think I don't think Jimmy should have i I watched it where he addressed it and said, of course. I think he should just double down and say, I stand by everything I said. He has. It's humor. He has in ensuing skits are very funny. He did he di he's done a series. Okay, this is this is what's going on here. Fascism. So who said they're poisoning the blood of our country. Oh, that was Trump. Who described political opponents as vermin? Who told the squad to go back to where they come from? Who said that Adam Schiff was guilty of a crime that is punishable by death. That's treason. The dehumanization, the delegitimization, the exclusion, the criminalization, the existential threat framing, no individual in public office has In the world than Donald Trump. Trevor Burrus Can I interject? One of the things that's incredible is that these are the free speech warriors, right? And I'm like, where are where's all those folk? Where's the folk at the free press? Where's the folk? Where's the Comedy's illegal? Remember that one? Comedy should be legal in the case. Stop. But at the same time, former FBR director James Comey has been indicted yet again for making a threat against President Trump by photographing seashells on the beach that said I think it's 86, 46, forty-seven, whatever, whichever president he is. Um it it was funny and he was just doing it. And by the way, a lot of the right had done it to Biden, like eighty-six, whatever number he is, forty-six. I was a waiter. Eighty six meant we're out of pumpkin suit. That's eighty six. We had a we had a chalkboard that said eighty six. Trump claims it's a mob kill. He's claims it's a mob kill name. 'Cause he lives in the seventies of New York. You know, but this is like his his approval ratings are underwater. I it doesn't work it 'cause everyone's heard him talk, like and then the culture wars turning up the volume seems like, hey dude, that was last year or two years ago. That worked and doesn't work anymore. Cause I think everyone's I mean Disney's pushing back. This is just like an astonishing array of like pee the what I'm more interested in is like Brenda and the and and uh this guy who's running the DOJ. I thought Pam Bondi sucked, but Todd Blanche is trying to compete for suckiest uh suck up. Aaron Powell Yeah, but isn't aren't we aren't we just disappointed I I think we always blame our political leaders and d d he is the culprit here, but I'm shocked there isn't more pushback. I I just people seem to be I think we've become complacent. I think we've taken a lot of our our norms and our rights for granted. And that people I think people are complacent and I I'd like to think that the midterms will show maybe that they're not. But I think people with the voting maybe errantly assume that things will revert back to normal at some point? Oh, I don't think they're complacent. There's been a lot of pushback to the Kimmel stuff and the Comey stuff. I just think people are like, you know, enough of this fucking asshole. Why is he taking up so much of our brain oxygen on this nonsense? I it's working. I think it's re I think it's sent a chill across all of all of cable TV. Oh I don't think so. I don't think so. I know firsthand from a bunch of producers that the legal costs and the review of stuff has gone way up and anything that feels on the edge, they say, Can we say something else or can we lighten the language? I think this intimidation and this chill is working. Well, I don't know. I don't I don't think so. I don't think it is. I don't think it's gonna work. And I don't think it it works. And you know, these people like let me just tell you, Brenda, when you leave office, which you will at some point, I'm gonna follow you everywhere, everywhere you try to get a job. I'm gonna bring up all your terrible things, and I'm gonna make sure people know what you did. I'm gonna make sure people understand who Brenda is because there's nothing we can do about Trump at this point. I was just thinking that he is in our head so much. We have to like remove him from our head, but it doesn't mean ignoring him. It means removing we get so sucked into their ridiculous, comical, toxically comical drama. It it's gotta be time to say you're in our fucking rear view mirror, old man, old cankle, you know man of cognitive questionability, like and move him along. You know, just move him along. You brought up an interesting thing and that is the media just doesn't know how to cover Trump. Showing our dress of the nines to have him say he's delegitimate at a i in a windowless ballroom. I okay, clearly the media does not know how to deal with this guy. The idea I like is newspapers and uh cable news companies all do the following. Instead of having four or five stories and a narrative about what he's done and interviewing people about how ridiculous it is, I think I think I think they should have a two-minute segment and one page on the back page that are the following. This is what Trump said today. And just really quickly outline it. Today he accused Comey with the show. He brought up, he said this about this person. He said these these people are animals. He said the shell thing. And just do it really quickly. This is what Trump said today. And sequester it and you can get it all in one place, because what happens now is twenty-two of the twenty-seven minutes , or I'm sorry, eighteen of the twenty-four minutes, whatever the the actual content load is on TV, is different stories that involve him. I agree. And he is like he is like a Star Wars character or a villain, a Marvel Comics character, he gains power from conflict and from um uh controversy. And what I'm saying is what I I think they should do is I think they should do the news and they should just take everything Trump and go, he said this, this, this, this, and this today. We'll see you tomorrow night. That's it. Yeah, they make segments about it. Yeah, they do. We got it like as J uh Jennifer Welch calls him Kang Ring fence it. Ring fans him and be like he I was I was you know what I did I when I was coming back from San Francisco? I walked into a store and I bought an actual book and um I was like that's a mess. I was like, I'm gonna read a book. Not read not like participate in the social media around him. I mean it's sometimes it's fun and I really have to say Jimmy Kimmel's actually doing a great job about he said he's finally brought Melania and Trump together. He's using it as content, which he should do. Um but in a lot of ways, just laughing at this poor, obese old man is I think the way to go here. Mock him relentlessly. It's not ignoring it, because I think that's a mistake. There's a lot of people telling me I'm just not reading it at all, which could come off as I'm not engaged. You know how on page three of the sun they used to have a naked hot woman. Uh page three of every newspaper. This is the shit Trump said. This is what Trump said today. Just list it all. Two minutes every night, national news, cover the news, try not to talk about what's going on in Iran, dah dah dah, and then last two minutes. This is what Trump said today. And that this go through it all because he he is totally dominating the news cycle. He gets energy from conflict. People see it as authentic and and leadership and he so I I'm my I just get him. Like that smug piece and that smug deflection of Pete Hagseth, his smirky. Like literally that smirk on his like hearings . It's he's so smirky and stupid, it's really kind of like I don't like these characters anymore. Representative Moulton was good. I'm actually I feel bad. I'm actually consistently impressed with some of our elected representatives. Oh, I meant to tell you before I forget, I went and did something you would love. Have you heard of um NECO or NECO? Any KO NECO? No. It's this advanced preventive healthcare concept from those found founders of Spotify. So I just want to disclose I got no compensation for this that this is not an it's going to sound like an ad. Okay. You go into this place and they basically take your blood, put all sorts of cuffs on you for blood pressure and measurement. They have all these lasers and scans and then they take you go into this tube and they take twenty four hundred pictures of you. But here's the thing, it's amazing. And then they do it all immediately and give you put you in a room with a doctor and they go through everything visually in a very user-friendly feels like something out of the movie Gatta ca. And I thought, okay, how much I I said, I need to pay because I don't want to be seen as uh I don't I don't like the whole influencer thing. I'm like, I need to pay. I have the money. Do you know how much it was? How much? It was 300 pounds. Oh . I thought it was going to be 3,000 pounds. Oh, wow. Interesting. And you get a baseline of all your good cholesterols, your bad cholesterols, your circulatory health, uh everything about it did change my behavior. I mean, I have one of these ridiculously expensive clonciers things. This thing, and there was a line out the door to get into this thing. Trevor Burrus This is what they do in Korea for everybody. Trevor Burrus Everybody gets these tests once a year. Trevor Burrus And it's the guys from Spotify. They're trying to democratize advanced preventive medicine. It's called metal. I like that idea. And you get and you get a baseline and I I mean if it's that inexpensive. They did this thing with twenty four hundred pictures of, you know, basically you're naked to look at I'm very fair and I'm prone to skin cancers, and they said, all right, you have 2200 marks. All of them are fine, except for these twelve. Oh wow. Three hundred pounds. Anyways, I was blown away. We should have filmed at this thing. And I and also, you know what I've discovered by watching your show and going to Neko , I r I try to run once or twice a week and I was always I I rode crew and w one time I was in very good cardiovascular health. I pushed myself running. That's just the way I run. And I time myself and I try and lower my times and I row and I try and get run. 100%. I had I just figured that out. They're like, no, what's it called? Zone two or level two? Where you supposedly can have a conversation, but you can So I last night I ran slowly, jogged for forty minutes. And that's supposed to be the way to do it. But anyways, and unfortunately, unfortunately they say the same fucking thing to me. I'm like, how do I change my diet? And and Dr. Pramala and I asked her if I use her name, she said the same thing. They're like, well they're also polite. They're like, you may want to consider drinking a little bit less. Yes, I think you may wanna do that. I think you may want to consider drinking a little bit. I feel like I'm affecting you. This is so great. By the way, this week's episode's about about loneliness and uh connection. You'll like it. Did you see the data on marriage? No. Men who are married and women who are married are less likely to get advanced stage cancer. Having someone else in your life nagging you, feeding you well, checking in on you, giving you a reason to live, it ends up it's the ultimate it's the ultimate I would have never gotten a colonoscopy if I hadn't nagged about it. It wasn't excited about. Is that me who nagged you? No, it was it was it was my girlfriend at the time. I get them every I get them every uh Oh and by the way, have you seen rectal cancers are skyrocketing among young people? I think it's a pesticide. We're moving on. No, it wasn't joke. I wasn't going anywhere. I saw you seize up. Okay. I just was like rectal cancer and we're out. No no no. Okay. No no no. I don't want to hear it. Okay. I'm going to move on. You say read a book, I say go have a beer with a friend. It's worth a beer. I agree. But anyway. It's like six beers, Scott. That's the issue. All right. Now we've got to get to a rundown of latest big tech earnings that are all over. All of these came out at once, and it was called Day of Reckoning. First up Alphabet, the company reported a twenty-two percent surge in first quarter revenue with sales reaching around a hundred and ten billion. What a number. Net income was up eighty-one percent compared to the same period of year. Shares for Alphabet are up fifteen percent year to date at the time of this taping. Microsoft, the company beat expectations with revenues increasing eighteen percent year over year for the quarter. Capital spending for the company will reach a hundred and ninety billion though this year, a sixty-one percent increase over twenty twenty-five. Amazon beat expectations expanding revenue in its cloud computing segment by twenty eight percent year over year. The company announced it expects to spend $200 billion on AI in 2026. And finally, Meta reported lower than expected CapEx uh missed on user growth, which is interesting. This is the first time, which attributed in part to Internet disrup.tions in Iran They're blaming Iran. I don't think so. Daily Active People was down over five percent over the fourth quarter. In better news, revenue climbed thirty-three percent from a year earlier, making it the fastest growing quarter since twenty twenty one. So what you jumps out at about these four uh uh companies besides their enormous spending on AI, obviously. Aaron Ross Powell I used to say this in the attention economy. It's now the It's now the ketamine economy where it's dissociated from everything else but AI. And I said yesterday on Profit Markets that I thought these guys were going to blow away their expectations because what do they monetize? They monetize spending around AI and and up until today or till AI came on, they the driver was they monetize attention. With everything that's going on in the world, are you less or more glued to your phone? I I can't stop looking at my fucking phone. Like, okay, who did we bomb today? So let's just go through the earnings, which were nothing short of staggering. Alphabet's revenues were up 22 percent to 110 billion. They be consensus. Their consensus was $5 , there was $263. They came in at $5.11, although some of that was an unnatural equity gain. Google Cloud hit $20 billion up 63% with their backlog doubling. Search revenue, just $460 billion. Jesus Christ, they're backlogs of half a trillion dollars. Search revenue, which was supposedly going away because of OpenAI, was up 19% . Gemini paid monthly active users is up 40% quarter on quarter Gemini is really doing well, I would say. Full year cap ex guidance went up. The investors don't like that because as strong as their top line is, everyone's saying we need to spend more money. Their stock was up eight percent in after hours. Let's talk about Microsoft. Azure grew faster than anyone expected, but they had to boost their CapEx guidance, which investors don't like. Revenue up 18% to $83 billion. They also beat consensus wildly. Azure grew 40 percent. The AI business crossed $37 billion annual run rate. That's up 123% year on year. Their commercial backlog is up to two-thirds of a trillion six hundred and twenty-seven. Their Q on CapEx was $32 billion, but it's been raised. Their full year CapEx, they've raised $190 billion, well above the $155 they'd expected. OpenAI committed an additional quarter of a trillion dollars in Azure spend the day before the print, but the stock was down two percent. Meta , Jesus, Jesus Christ, Kara, Meta revenue was up 3 3 % Efficiencies of AI. Earnings of 10 of $10.44 , although a bunch of it was a tax benefit. Add impressions were up 19 percent and, their uh average price parad was up 12 percent. Q2 revenue guided to 60 billion, which implies 25 percent growth. Full year cap ex, again, this is what investors don't like. They raised to 1$3 5 billion from $120 and then um uh also higher component prices and the stock fell nine percent after hours. Last one, Amazon . Fastest growth in fifteen quarters , but free cash flow collapsed because of their capex. Again, good what the analysts love, they're blowing away their top line. What the analysts hate is they're all saying we need to spend more money. Revenue was up 17 percent. EPS blew away, but unfortunately a lot of that was because of recognition of a gain in anthropic stock that from their investment there. AWS hit 38 billion up 28 percent. Advertising grew 24 percent. Q and CapEx again, what the analysts don't like. CapEx $44 billion, full year at $200 billion. Free cash flow fell, see above, they're increasing their capex. OpenAI recently committed to consume two gigawalks of So all of a sudden they're getting into the chip game and stock rose the stock rose three percent after all of what does this say to you? Oh my gosh. AI meeting the world. Yeah. Yeah. It is living up to its expectations, but the capex required to live up to those expectations to deliver against the demand is sucking is basically like like taking all the juice out of the earnings. The cap ex requirement to live up to the demand, the infrastructure buildup. When does that stop? It's sort of like having a hot spouse that requires a lot of money for you to stay. Yeah, trust me, I know that feeling. Uh what does it require? What is it what what does it require for that to not? Must work har that's what I would say to myself. Must work harder. Um Well they're doing that. What does it require? Trevor Burrus When is the spending going to stop? Well, when a big a big customer announces they are reducing their spend IAI or one of these companies announces OpenAI basically said that they kind of shit the bed that their numbers didn't meet expectations. But the bigger guys, these players, are all just on fire. I don't see it slowing down. Yeah. Can I note the OpenAI thing you just referenced there are internal concerns about the company's spending plans and its user revenue targets, according to the Wall Street Journal? OpenAI missed internal goal of reaching one billion weekly active chat GPT users by the end of the I think that's all due to you. The company is also denying there's a rift between Sam Altman and CFO Sarah Fryer over computing resources. And they're of course approaching their IPO, although they're we'll get to their trial next, this trial with Elon, which is also another distraction. But they're they're seeing a lot of bumps as they go into it. So is there a like a reckoning moment or what how do you look at it? Just one big customer or by the way. I started on my next book. That's the name of it, The Reckoning. Oh, The Reckoning. Oh, didn't I use the word reckoning? I feel like I inspired that. You liked when I said reckoning last week, but I was talking about the media. I'm sure if it well let me say if the book works, if it's a best seller it was your idea. Okay. Um I think there's a reckoning coming in America and I think there's a reckoning coming in the markets. But keep in mind that this AI is now sucking so much oxygen out of the out of the room. I sit in a lot of VC pitches. If you're not an AI company, you can't raise money right now. I mean it is very difficult. And by the way, I'm on the board of an AI company that's growing four X a year, and they're like, that's not enough. Unless you were growing 10X a year as an AI company that's purely software. This company called Rogo that is uh it's a great great, little company that is basically AI for financial institutions. They just closed around at $2 billion. Right. No, it's not. And they're going to get they raise $100 million . You literally, if you are not an AI right now and growing, you know, five, seven, 10x a year, you can't raise money. And this is it is a, in my opinion, it's a it's a kind of a all of the GDP growth is coming from the CapEx and AI. All of the earnings growth, 77% of the earnings growth is coming from the Mag 10. We are becoming, and we've said this before, America is a giant bet on AI. And people are t people are wondering, and breakfast with a big tech CEO today, they kept people are really wr. how is the SP hitting all-time highs with such geopolitical uncertainty and oil at $110 bu ac barksrel. And the reality is, America is now a giant bet on AI. And I in a weird way, the the war in Iran kind of helps these guys. First off, none of these guys are affected by None of it. Terrorists or any of Trump's n they were all at the White House last week with this week with King Charles. Every one of them was there again, by the way. And then by the way, the high oil prices, that money, the additional cost circulates within our economy. It hurts consumers, but Chevron and Holliburton are making a shit ton of money, right? Yeah. So it's oil moguls and tech moguls. Trevor Burrus, we're a net that's right. We're a net exporter, and there's a very unhealthy thing. And you can see your issues and your addictions and your problems and forgive yourself and b have a better handle on stuff. And people say it's a world breakthrough. The the most dangerous thing I think about the world we live in in America right now is that if you live in America and you're in the point one percent, you are not invested in the wellbeing- of America. Why? Do you care about infrastructure? You don't care about TSA. You don't care about airports. You don't care about you, you have you go to Teterborough and you're flying your own plane. Do you care about the fact that 40% of third graders can't read? No. You have your own private schools where they spend $75,000 per student. Do you care about policing and safety? No. You live in a doorman building in a neighborhood that is so over policed and has so many cameras, you're just fine. Do you care about the health of America? No, you have concierge medical services that give you everything you need. The people who control our government or have a disproportionate influence have totally dissociated, disassociated from America's interests. And even more frightening, is that America, you could argue, has disassociated from the global interests. Do we care about high oil prices? Not really. Do we care about HIV infections in Zambia? Not really. We have two oceans protecting us from chaos and disease. You could argue eventually it hits our shores, but right now the markets are. No, the markets. The rich people. I get it. It's a Pierre Don't Care economy. Do you know the book Pierre Don't Doesn't Care? Yeah. I don't care. That it's a it's a wonderful um children's thing where he eventually gets eaten by a lion because he doesn't care. He always says, I don't care. But that's what they're like. It's a peer don't care group of people. We have to figure out economic policies that give the wealthiest people in our nation a vested interest in the success of America again. You know who cares? The people. I'm telling you. There's an anger. You can feel it. It's palpable that they do not hear. Hope so. They have gone from they have literally gone from heroes to villains . And let me say, I get it everywhere I go, everywhere. From and it's not, you know, like, oh, it's the you know, it's the people, you know, the working class. It's everybody who's not like them and it is angry. It is deeply and profoundly angry. And it even more so than it it Trump they sort of have it's all figured in. He's a terrible person or if they don't like him. And even the there was just a really interesting story about all the people that voted for him are like, we're very disappointed and we now regret our vote, which you're sort of like, okay. Oh fine, whatever. But there's a there's a growing anger that I think they do not understand of villa of them being villains and they're behaving like villains. Um we have to move on, but we'll see where this goes because if they're the only ones that benefit and all the other companies don't. There isn't as you say, a reckoning. It's a great word. It actually m is from the Middle English. I'll just read this to you from narration, accounts, settling accounts, and it's about the act of calculating, estimating, or settling accounts often carrying a connotation of judgment, retribution, or facing consequences. It's the act of setting accounts and consequences. That's right. Scott's gonna have a r to give you a reckoning. Anyway, um let's take a quick break. Speaking of reckoning, um when we come back, Elon takes the stand ard i'm mid first two-time individual cell champion, championship MVP and, forward for the US Women's National Team. Before I went pro, I graduated from Harvard with a degree in psychology. Which comes in handy more than you think. Any athlete pursuing greatness knows there's a certain mentality you have to have. What people don't know is what that costs. In my podcast, Confessions of an Elite Athlete, I sit down with the best athletes in the world and explore the psychology, mindset, and unseen battles on the path to greatness. So take a seat and learn from the confessions of an elite athlete on YouTube or wherever you get your podcasts. Support for this show comes from Virgin Atlantic. 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Trusted by more than 60% of the AM Law 100 and leading Fortune 500 legal teams, Harvey is the AI operating system designed Harvey, AI Tailored for Law. Learn more at Harvey.ai Scott, we're back. Elon Musk took the stand this week in a trial against OpenAI. Let's go through some of the things he said. He was a quote fool to provide OpenAI's early funding. He discussed his concerns about AI and not wanting to have a terminator outcome. Elon said it's not okay to steal a charity. Warning if he loses it, it would give license to looting every charity in America. By the way, Elon is not charitable at all in any way. FYI. The judge pushed back, reminding jurors that Elon's claims and his opinions have no legal value whatsoever. As I predicted, a number of prospective jurors had thoughts about Elon, with some calling him a greedy, racist, homophobic piece of garbage and a world-class jerk in questionnaires . Um I think his this has not been good for Elon. One of the things that Ellie said when he gave us that video last week was that these that they're not used to being challenged publicly and he is losing his brain on st he looks terrible and he needs to control himself, which speaking of ketamine, he cannot. He has no ability to do so. Um I'm gonna be fair to him. He was the first person who did talk about this termin ator outcome fifteen years ago to me, or something, some maybe 10. Um, and he was the first person to be very worried about it. He shifted, becoming less worried over the various interviews. At first, it was Terminator, then you were a house cat, and then we were like ants that are just gonna get covered by a highway, which isn't mean or anything. But one of the things I would say is he started off that way and then he immediately lost his mind because he he tipped out of open AI because he thought they couldn't make it and these emails talk about that. And he signed away his rights. He did give them thirty-eight million, not a hundred , as he's claimed in other depositions, so he's keeps changing the number, which isn't good when you're under oath. Um but one of the things that uh is very clear here is that he's shifted to being a greedy hypocrite and started his own company that includes non-consensual uh uh sexual images and child pornography. So it's not like he's here to save us and he's trying to put himself off as someone who's worried about uh AI and is fully participating in the damage it does. So what I h what I have heard how this went down, uh very like broadbrush actions that kind of give a sense of the what went down here, and tell me if you've heard different. Is that Sam actually tried to raise $500 million when it was a nonprofit for the nonprofit and was unable to do that . on showed up and said, this needs to be a for-profit company and I need to control it and own eighty percent of it. Yes. That's exactly what happened. And the people there said, no, we're not up for the for-profit Elon controls part of the game. He does that on every company. But go ahead. So he said, I'm out and he signed paperwork. Yep. This is the This is literally the biggest example of seller's regret in history. And then the other fact pattern here about his quote unquote trying to pretend he's more noble than he is and he's really worried about AI. Who went on to develop an LLM that most experts would say has the fewest guardrails? Yeah. Elon with XAI . So the fact pattern here, the narrative, and this is my prediction, I don't think OpenAI I said last week I thought they were going to settle. I don't think OpenAI wants to settle. I think their attitude is I think I think Elon's either going to drop the case or lose. Aaron Powell Well it's a jury trial and then the judge decides on the reparate, whatever the remedies are. Trevor Burrus But if they're found if open AI is found not guilty or that there's then it's over. Oh he could appeal. I bet he could appeal. He can always appeal. He's got so much money. I mean Trump's gonna appeal the E. Jean Carroll thing to the Supreme Court now that he's lost in the appeals court. Well he doesn't want to pay eighty three million. He doesn't want to pay eighty that's he'll have to pay that if he if the Supreme Court doesn't bring the money down, presumably. He wants to get it to ten million. He's gonna have to pay or something. Anyways, back to the open AI case. Everything I've seen fits this narrative that El on once this thing became commercially viable, he wanted it to flip to for-profit and he wanted to own it all, and that he legally gave up his ownership and his governance drives.. Yeah Well one of the things he he was concerned. He absolutely and one of the interesting things I love them being under oath, 'cause now I finally hear the things I thought were true. Like that Larry Page and he got into an argument because he was a do doomom er for sure at back then. And Larry Page called him a speciesist for being concerned to be overly overly negative, which I'm like, yeah, this we like the the human species , just sorry, you know, these people, these people, I can't tell you, I'm so pleased for people to see them as they are, right? You know, when someone said greedy, racist, homophobic piece of garbage. I'm like, you see what I'm saying? Like jerks um don't care about people. This whole thing is fantastic because they're under oath and they have to show themselves . And they also have to show how they're trying to present themselves. Like Elon is the savior of the world when he is decimated. He's responsible for the millions of these deaths that are gonna happen because of USAID . He's responsible for all manner of stuff that he's been doing on Twitter. And he wants to present himself as it is like Thanos in the Marvel movie. Remember how he was trying to present himself as a good person? Thanos has an idea of himself as a hero when he's the villain because he's he's helping the human race and he talks about it. To me, this defines Messiah Complex full stop. He he's the guy to to colonize uh to turn us into an inter And I don't think him getting ag this lawyer actually worked for him at one point and then worked against him. So he's familiar with this firm and he's just losing it on the stand, which is just what he should not do. He should be as calm as a cucumber and he can't be. And it'll be interesting the contrast with I think Sam will be smooth as silk. I think he's not gonna online online he's kind of sad over on Twitter, sad Sam, and Elon's crazy Elon and by the way an increase in white supremacist post too. Um but Sam has got to hold it together during and so does Greg Brock man um and so does Satcha, which will help a anchor open AI quite a bit, as you said. You know what I thought about doing, Scott? I thought about going down to the courtroom when I was in San Francisco 'cause I had some free time and just sitting and waving at him. Just to get him even more riled up. Like, hey girl. Does he show up? Does he gotta go? No, he's in court. They're all in court. They're all there. It's that's they have to go, I guess. Because I thought about going and just waving at all of them going, Hey girls, what up? Let's kick me all get along. That kind of stuff. But and I didn't. I hung I hung out with Louie. Um okay, Scott, let's go on a quick break. When we come back, Taylor Swift fights back against AI. Support for the show comes from Indeed. When you're looking for talent, Indeed sponsored jobs can just be the boost you need. It matches you with quality candidates fast So you don't need to spend months searching for that new hire. According to their data, sponsored jobs posted directly on Indeed are 95% more likely to report a hire than non-sponsored jobs. Join a 3.3 million employers worldwide that use Indeed to connect with quality talent that fits their needs. Spend less time searching and more time actually interviewing candidates who check all your boxes, less stress, less time, more results. When you need the right person to cut through the chaos This is a job for Indeed Sponsored Jobs. And listeners of the show will get a $75 sponsored job credit to help get your job the premium status it deserves at indeed.com slash podcast. Just go to indeed.com slash podcast right now and support our show by saying you heard about indeed on this podcast. That's indeed.com slash podcast. Terms and conditions apply. Need the ride higher fast? Then this is a j ob for indeed sponsored jobs . I'm Maria Sheripova, and I'm hosting a new podcast called Pretty Tough. Every week I'm sitting down with trail blazing women at the top of their game to discuss ambition, work ethic, and the ups and downs that come on the path to achieving greatness. We'll dive into their stories and get valuable insights from top executives, actors, entrepreneurs, and other individuals who have inspired me so much in my own journey. Follow Pretty Tough wherever you get your podcasts. I'm Esthet Herndon, and this is America Actually. We're all talking to each other to see what did we do wrong, what did we not see? I'm in Washington, D.C. this week to interview Ruben Gaego. He's a Democratic senator from Arizona, and he's been thinking openly about running for higher office. But I have to learn from this and I will learn from this. About what it means to be a better first boss uh in my office and also a better uh senator uh to my constituents. This week on America actually we asked Gaiego about predatory behavior in Washington, his plans for imigration reform and more . Scott, we're back. Taylor Swift has filed a new trademark application for two voice clips and one image that are likely an effort to protect her voice and image from AI misuse. This is something a lot of celebrities are doing, but she's probably the biggest one. Voice with clips of her saying, Hey, it's Taylor Swift and hey, it's Taylor. Registering a celebrity's spoken voice has not been tested in court. Matthew McConaughey has also trademarked his use of his images and voice in January. It's an interesting strategy. And she she did an interesting a really interview with Joe Cossarelli who I love at the New York Times called the Thirty Greatest Living American Songwriters. Really wonderful story. It it does a range of people and it's really terrific. Let's listen to what she had to say . If there's any way we can make confessional songwriting a little bit more of something that isn't like people take that as sort of like you were being messy or whatever, you you have to be fair to everyone though, then. Are like, are rap beefs messy or are they confessional? Like, we've gotta just like let's make it a music conversation rather than just like ganging up on the female artists. And I think the more male artists that are messy or emotionally complex or confessional or upset , um the happier I am . She likes confessional songwriting, Scott. Um and then thirdly, this Universal deal is gonna trigger something in her contract that's gonna force uh Universal to pay out all its artists, even if they gave them advances, um, if it sells. She put it in to to protect herself, but it also uh she the the way she wrote it, everybody who is at Universal will have to be paid out. So she's getting enormous payouts for all the artists in this possible deal for Universal, which I think will endear her to many artists. Um what do you think here about any of this? I know you don't like her, but she's a tremendous business person. I never said I don't that's not fair to say I don't like her. Okay.. Not her Aaron Powell Yeah. So I I'm a fan of airing on the side of protections around people's IP . And essentially Google coming in and crawling every media company, um people using people's likeness, their voice. I I I I believe uh Jensen Wonk said it, everyone should own their digital twin. And that's not only the physical rendering , but also your voice, your likeness. People spend a lot of time and energy trying to develop uh IP that they own that they can decide to give to their heirs or sell their catalog or their likeness or their image, and they should own it . And so I'm a I'm a fan of these cases. And the fact that she's doing it on behalf of other artists is really wonderful. And she's very high profile and people have enormous affection for her. So she has, she's immediately going to get public support for whatever she does. So I'm a fan of this. I'm a fan of how she's handling it. And we need these companies, I think you said it or your your uh partner, well Mossberg said it, these guys are pickpockets . And just going in. Trevor Burrus Well, yeah. So and now they're sealing likeness. I don't think the solution here, again, they'll come up with the illusion of complexity in that is they can calibrate how closely they get to the vo to her voice without it triggering an IP. But I think it's pretty simple. I think someone should be representing authors and artists and past celebrities and they or their heirs or their estate can either license it into a giant pool or not. And then every time it is used and you have an AI crawl it, every time an AI takes takes a a a sentence from your book or let someone speak in your voice, you are entitled to X percent. When you what do they do Let's when I An She talked about how she got the AI to write something in her voice. And she said it was actually better, but it wasn't her, but they had crawled so much of her stuff. So are they making her or a ver a facsimile of her? And what happened to your Google thing that you did? Was it Google when they did the Scott Galloway teacher? What happened? You never said what actually happened. You took it down, right Yeah, I started working on it a year ago. I think uh so I was getting a lot of emails from people, uh young men and mothers asking for advice, and I couldn't keep up with it. So I said upload, and they uh a former student of mine who's a Google product manager came and said, we have something called portraits. We're doing it with a bunch of doctors, we're doing it with a bunch of historians, we're we cr we upload everything you've ever done, and someone can come to an avatar and ask questions , and it'll give something pretty resembling a reasonable fact. Some of you of the answer you would give. And I said, that sounds great. And I started working on it about a year and a half ago. It took him about six or nine months. And I tested it, and it actually did. If it said, should I get an MBA or not? It asked good questions and gave it a reasonable answer. And then you actually fucked it up for me. You did that interview with those parents of the kid who had committed suicide. Oh, I made you upset. And I thought, okay. Am I going to be part of the problem here where I in inadvertently sequester young men from asking their parents for advice, finding real people, finding mentors, finding friends. And it came out. The day it came out, I started testing it and I just felt really uneasy with it. You illuminated me. You illuminated . You saved me for myself yet again. Let's try to work on our words with Kara. Okay. Okay. All right. Go ahead. Better words. Better words. And then I called to Google's credit. I called them and I said, I gotta be honest, I just feel really uncom fortable with this. I want I can see how it might be helpful, but I can also see how some young man doesn't ask a friend or his dad for advice and instead says, well, Prof G said this. And it's just and It's in some vault like a mummy. Okay, go ahead. But you can say in the voice of Kara Swisher, please write this thing. And my my view is they should be able to do that , but only if you have agreed to have your stuff crawled. And the more people who ask say this in the voice of Kara Swisher, you should get a royalty check. Similar to the way artists do it, music artists do it. When you listen to KROQ, Rock of the Eighties, in the 80s, and they were constantly playing B-52 song songs, at the end of the year, they would send a check to Warner Brothers and the B-52s would get a check. I don't this has been done before. It is interesting because I I did that Simpsons thing and I got an enormous check the other day. And I'm like, they can do it, and they s the Hollywood sucks, right? Like it's astonishing. And I it goes way back when I was with um uh uh uh the Google twins where they were stealing books and were Kara, what is the difference if we take their books? I was like, You shocking shoplifter and or they take television, their mentality is to take it from you, which is interesting. So I'm glad someone like Taylor Swift is really pushing back. It'll be interesting to see if it could apply to all of us, because I think it will benefit because you, you are easily this would work really well if someone just didn't work with you to do it, but just did it. Um so anyway, in an upcoming episode of my show I make one of these and it's really frightening. And and I I don't think it's a what is what is I made the caratar. I'm gonna give it to you for Christmas. I made a a digital three D version in a box of me. And you it looks like me sitting in a chair, like three D vers ion. And it speaks, it talks like me. It's it's um it's me. And uh it's not when it's like a facsimile that's not quite me, but it is. Um and I'm sending it to you for Christmas, the whole box. It's great. It's gonna be a good idea. But again, I like I I I like the idea of this as long as you sign up for it because you might decide have at it or after you if you're like me and you think once you're gone, it doesn't I would like my heirs to get a check because people say in the voice of Scott Galloway write about income inequality, whatever it is, right? So and I think a lot of artists and a lot of writers and a lot of singers would s would agree to this. There's a model for it. Yeah, absolutely. Well we'll see. But you're getting that for Christmas, the caratar. It's great. You'll have it forever. Um and it will add to things right up until my five my dying breath. Anyway, um, one more quick break. We'll be back for predictions . Wedding season is here and your wallet is already sweating. Between the bachelorette in Vegas, the destination ceremony, the registry gifts, and the outfits for every single event, being a good friend has never felt more expensive. I'm Vivian too, you're HBFF, and on this episode of Networth and Chill, we're breaking down exactly how to survive wedding season without going broke. We're talking hidden costs you forgot to budget for, how much you actually need to spend on a gift, flight and hotel hacks that could save you hundreds, and my most unhinged but totally legal money tips for stretching every dollar. Because celebrating love shouldn't mean sacrificing your financial future. Listen wherever you get your podcasts or watch on YouTube.com slash your rich bf okay Scott, let's hear a prediction. I'm gonna go first. I do think the Devil Wars Prada is tracking to be like a two hundred million dollar movie its first week. Um I think a lot of these movies, whether it's uh Project Hail Mary, this movie. Um i it there's a lot of love for movies that are just well made by Hollywood and good and fresh that feel fresh. I think people are waiting for human stories. So I think these movies are killing it at the box office because people and they're actually watching it in theaters too. They're not just waiting till it goes to digital. They like the community experience of it. And so it's a really interesting thing that that a lot of these are hitting that are that are very human centered. Um and I like that. I like that. Yeah. I I'll see it. Um so your win is the devil where's Prada? No, the idea that these movies are gonna domin like I just after Hail Mary. It's that Prada has the same feeling of Hail Mary. It it feels like real people made it. It's like when you eat a meal that's sort of fake, you n and then you eat a meal that's homemade. It's it it feels like real people made it who ha thought about it, who care about standards and quality. And i it didn't feel like AI made it. I don't know what else to say. Aaron Ross Powell Well the the rumors of creativity's death at the hands of AI were greatly exaggerated. So uh there was a moment about twenty-four months ago where everyone thought all music is going to be generated by AI, that you'll just give it a good prompt and it'll come up with new songs that are better than Kanye's life. And that just ha didn't happen. The muscle between your brain, the the creativity of a young pr brain, the creativity, there that still has tremendous motes around it. And even in design, like look at Sora being shut down. The percentage of people in design working at tech firms has actually gone up as the percentage of their employment base. Artists, you know, no AI no AI is going on tour right now, but as far as I know. They're not gonna tailor swift the situation. They certainly are. Where I think you're being a little bit nostalgic is I think the Devil Wears Prada and Hail Mary are great movies and will do well at the box office, but box office is still down 30% post-COVID. Content, original content that breaks through, will find a way to monetize and be successful. But this collective nostalgia for the movie theater I pick IPIC is going bankrupt where I l where I live in Florida. No, I get it. I'm not talking about the movie theater. I'm talking about freshness in Fresh Creative. Fresh creative. And and I'm saying it does it actually these movies are showing big pickup in movie theaters. I don't overall downward trend. It's really interesting that people are these movies are scoring well in theaters. Like that's my that's what I'm saying. Not all of those. Well it used to be it used to be that all of that type of n long form content ran snaked through a theater and we went to the movies. I remember I mean, I don't know about you, when I was a kid, uh I used to go to the movies two or three times a week. Yeah. Tw I mean once at least once a week, yeah. Yeah, it was just what you did. It's what you did on a date. Uh it's what I did with my mom. Uh it's just what you did. You once uh we but granted I lived in Westwood and they had the best theaters in the wor ld. But um God, I just tried to think the last time I took my kids to a movie. Anyways, um I'm glad you liked it. So my prediction is much more boring . So I think so Intel is up uh fourfold. And I think it's up I'm sorry, it's up fivefold. It's up, it's it's quintupled over the last year. And I think it's about my prediction is it's gonna uh uh shit the bed. Uh because Amazon is now in the bragging about it, as you noted. Yeah, no, I I think it's I think it's a great short right now. Amazon now sells both GPUs, what NVIDIA does, and CPU is what Intel specializes in. And Amazon's chip revenue is growing 150% every three months. If it were a standalone business, it would be generating $50 billion in annual recurring revenue. That's more than AMD and about as much as Intel . And OpenAI and Anthropic use Amazon to ship for their AI working. So Amazon. Interesting. That's interesting. Aaron Powell Well it's weird. I think I think it's I think quite frankly, I think uh in NVIDIA has its own, has much stronger motes. The vulnerable company here is the one that's the latest meme stock, and that's Intel. Metaanthropic have signed deals to use Google chips called TPUs. TPUs are two times cheaper than NVIDIA's GPUs. And Intel looks just dramatically overvalued and will, and I think we'll be the victim of this increased competition. The stock again up fivefold. Get this. Forward PE of any large cap chip stock trading at 1 18 times forward earnings. Oh my God, it's such a loser company. Why? AMD at 50, Amazon at 32, N VIDIA at 26 . And at the same time , its business is expected to grow slower than peers. Anyways, the most overvalued stock right now. Trevor Burrus , What is the meme? Explain the meme for the people. Well, Intel was beaten down. Now it has a great story. Now it has the backing of a guy who's willing to use the full faith and credit of the government. It's the chip, everyone thinks of the the chips are the bottleneck in the AI boom. It's not actually, it's actually power. And the stocks up five fold. And now, again, see above, it's trading at a forward earnings of a hundred and eighteen and it's growing slower than everybody else. And Amazon and Google are coming for their launch. So anyways, my prediction is you're going to see this thing is going to look like a giant hill. Oh, I love it. That's a good one. And Intel is going to be one of the worst performing stocks in the tech sector over the next six to twelve months. Trump's going to be mad at you. He's gonna come after you instead of Jess. That's really good. Yeah. Well Intel has the look of an expectant widow. Uh that's really funny. Uh Amazon that Amazon is doing it is interesting, although I have to say I've given the Heinous of the Week award by them leaking that they're gonna make uh The Apprentice again with Don Jr. Oh God, did you see that? I know. They're such suck ups and Jeff was with the King Charles thing. Let me just say, you don't have enough there's not enough budget for a cocaine budget for that. Oh that should have been our win. I know King Charles? How good was he? We didn't win, but go ahead. Go quickly, do a win. King Charles was fucking fantastic, I have to say. No one can thread the needle around a thoughtful, intelligent , stab in the heart like the British.. Yeah And when the king delivers it, you know, I just loved I I loved I loved the king saying, you have often stated that without us we would speak in German. I'd just like to remind you that without us you',d be speaking French. Yeah. He is he is so good. He whoever wrote his speech, A, he delivered it perfectly. He actually studied drama in college. I just think I was so happy because I do think he he stated what we need to know, and that is the alliance between uh Britain and the U.S. I would like to think is unshakable. Also, the king has been sick. It's a really nice moment for him. He is always He did a good job. He did his kingly duties. I like the monarchy, and I always got the sense that he's a really decent man . And uh so I just loved seeing kind of his time in the sun and just He did good. And the thing is Trump doesn't insult him because he loves the monarchy. So he insulted Trump and he's the only one who got away with it. So the Pope didn't get away with it. It was. Yeah. I don't even think Trump understood. Honestly. They just wanted to meet the king, all these people. Anyway. And those tech people sucking up to the fucking king was just like, oh my God. You guys, you are bigger than Britain and that's you could get a meeting with him any time, give money to his climate change thing. Anyway. I love that the Republicans even cheered for climate change, uh uh help with climate change, 'cause that's his big that's Prince King Charles. I keep calling him Prince Charles because he was Prince for so long, but very nice. I love that, Scott. Anyway, we want to hear from you. Send us your questions about business tech or whatever's on your mind. Go to NYMag.com/lassh pivot to submit a question for the show or call 855-51 Pivot elsewhere in the Karen Scott universe this week. This week on Prof G Conversations, Scott spoke with Ian Bremer about how the Iran War fracturing alliances and rising global tensions are reshaping the world order with no clear winners. Let's listen to a clip. Whether it's Epstein or whether it's Iran or whether it's the economy or whether it's