It's like Hunter Biden selling crack on

the White House lawn. Just like being

that brazen.

[music]

>> Hi everyone, this is Pivot from New York

Magazine and the Vox Media Podcast

Network. I'm Cara Swisser

>> and I'm Scott Galloway.

>> Scott, how was it? The game

>> it started off slow. First half was kind

of a sleeper and then the second half

was great. Yeah.

>> And uh so yeah, it was it was great to

be there. I took my boys. What was the

vibe of the place?

>> You know, the Argentinian fans are

incredible and the Spanish fans are are

hot. So, generally speaking, um, you

know, check, check, check. And Matt Live

did a good job. I will say this, I

thought FIFA put on an incredible

tournament in terms of touch points and

graphics and vibe. Um, it was, you know,

typically the final is not the best

game. What was unusual about the cup uh

the tournament in Qatar was the final

was the best game. It's like the Super

Bowl usually isn't a very good game. Um

and this wasn't this was an okay game,

not a great game, but it's sort of like

quite frankly I'm exhausted.

>> Did you like not like the the the uh the

thing in the middle was a little bit

jumbled. It was sort of like

>> I didn't think it worked.

>> I was like where's Bad Bunny?

>> I mean when they like yell out Shakira

and Elmo in the same breath, you're sort

of like what's going on here? It it it

just felt like a dog's breakfast and I

just those things are hard to pull off.

You got to you got to try and please

everybody and you know have someone

who's at the charts but also ethnically

ambiguous and then it's just that's a

difficult one. But just just to put some

numbers around it the I think the

business story and I've said this for a

while that's going to come out you're

just going to see over and over they're

an advertiser but they're going to be

it's it they're going to get good or bad

they're going to get a ton of awareness.

The World Cup will be the largest

gambling event in history.

>> Yeah. Five 5.6 billion.

>> Yeah. Amazing.

>> And Cali did more, get this, than 31

billion in trading volume in June.

That's up 87% from May,

>> right?

>> And the platform is declared 1 billion

in daily volume every day since the

tournament began June 11th.

>> Yeah.

>> And they say just the um World Cup

volume 23 billion. Poly Market set an

all-time record of 10.8. I mean, in just

one game, USA versus Belgium, drew 64

million on Khi. And what

[sighs and gasps]

>> what's interesting here is that when you

have this much money wagered on matches,

they're no longer it's no longer a

gambling story. It's a capital market

story. And KI's added 3 million users

during the World Cup. And it feels like

prediction markets are kind of becoming

the Bloomberg terminal for the

>> But is that a good thing or just it is

thing? I get it's an is thing, but is it

a good thing? I generally think that

wagering on sports

is something that young men need to be

educated about. I don't know if you can

stop it. I don't know if you can ask

someone to go fight for their country

and then not wager on the Browns game,

but I think there needs to be education

and I think it needs to be regulated

because it does it does prey

on a more immature prefrontal cortex of

a male. It does prey on an increasingly

online youth

and

there's just no getting around it if you

look at the data

>> because they'll bet on anything right

once they get started. Like they were

betting on drug outcomes. It starts to

get a little demented.

>> Well, that's that's another there's just

the pure addiction element and the fact

that when a state legalizes gambling,

bankruptcies tend to skyrocket. And then

there's the potential for insider

trading. I actually think that'll get

arbitrageed out when people realize if

they don't have inside information, they

should not bet. We'll get to that

because Trump We'll get to that in a

second. Oh yeah. The grift. I mean, I'll

just say um White House teleprompter

operator is being long time his

teleprompter operator. It's being

investigated over allegations he used

inside knowledge for the president's

speeches to earn over $100,000 on I

think it was Kelshi. That's right. And

then Trump media is going to sell uh

Wall Street traders investment firms as

much as $100,000 a month for faster

access to his posts on Trump social

where he talks about what he's going to

do. and then he bets against it. It's

all like it's both insider trading, it's

insiderness, it's gaming the system, and

then it's possible addiction. So, I

mean, I think betting is can be fun.

It's just this seems like on turbo and

especially when the president himself

and his minions are all doing it.

>> I think one of the or the most

interesting thing that's not covered

about these prediction markets is that

we used to discover information through

traditional media and journalists.

>> Sure.

>> Now, we discover it through markets.

>> Yeah. And when enough people have money

on an outcome, markets often become the

fastest aggregator of truth. I use data

from prediction markets more than I use

data from traditional news outlets. Now

I whenever it's about politics or

predicting anything,

this this tends to be the data source I

go to. So there's this weird

uh neither good nor bad.

It really is the wisdom of crowds has

been monetized and is now being

leveraged for data input for for media

companies such as our such as oursel.

The insider trading thing like [gasps]

so people on both sides of the aisle

engaged in insider trading.

>> Yeah.

>> Trump came in and said you guys are

amateurs. I'm I'm going to make millions

not thousands

>> maybe even hundreds of millions.

>> Yeah. And then just the brazeness of

saying this is tantamount to so

Republicans will always say and it's

accurate that Speaker Pelosi up 600% in

the past 10 years the S&P up 200% that

clearly she had access to non to

material non-public information but she

didn't start a wire service selling her

inside information

>> right to others. [laughter] I know. It's

like it's like Hunter Biden amplified,

right? He just

>> It's like Hunter Biden selling crack on

the White House lawn just like being

that brazen. It And by the way, he hands

down has the best the best social in the

world right now.

>> Um uh very very actually very authentic

talking about addiction. Anyways, the I

just can't

it it goes it goes back to the basic

notion if you're going to commit a

crime,

don't get a speeding ticket. Don't have

an isolated incident.

>> Yeah, just keep

>> commit double murder and rob banks every

[ __ ] hour.

>> Yeah, I know. It really

>> everyone just doesn't know where to

look.

>> Guy the honestly everyone's looking for

an edge. It's such a grotesque story.

>> It's It's like Are you crazy? Are you

nuts? I love that all the little ones

get caught and then Trump doesn't plain

sight and just steals and steals and

he's just thief. Speaking of which, he

he tried to steal the attention from the

team. What was that wandering around the

stage? Did Did he He got booed, right?

correct or not?

>> He got he got booed on the way out and

he did get booed on the way out, but he

>> got booed on the way in. You could hear

it.

>> I'm sorry. Excuse me. You're right. On

the way in, but it was Claudia Shan. It

was Prime Minister Carney or President,

>> you know, they they were all there. It

makes sense that they were all there.

Um, it wasn't as bad as I thought it was

going to be. I mean, no one likes to get

booed. I don't But I'm trying to

remember at past Super Bowls.

>> Did pre are presidents usually

applauded? I don't I haven't been to

that many events with presidents.

>> They don't get booed like that. He gets

booed everywhere he goes. But but why

was he on the stage? Could you Could you

even tell from where you were sitting?

He wouldn't get off the stage. And then

that that infantina, his his uh his

little guy who gives him awards, chased

him across the stage to try to get him

to move cuz you know, you're supposed to

do this thing.

>> I don't think that was him attention

mongering. I think that was him

daughtering. I don't think he knew where

to go.

>> Daughtering. Yeah. I thought that was I

just I don't know if you could tell, but

that's what was happening. It was weird.

It was weird. But of course, he just has

to take I think he was daughtering.

That's what I felt. Everyone's like,

"Oh, he's taking attention." I'm like,

"I don't think he knows where to go."

Like, cuz the guy ran after him like I

often do it when my mom was mobile.

>> Look, FIFA has a terrible reputation and

it's and it's earned every ounce of that

terrible reputation. these international

sporting organization committees, they

kind of operate in another Netherland,

whether it's the ILC, even the NC2A, I

think, is is has not draped itself in

glory because they they have just a

total lack of regulation. They have

immense power. They have cartel power.

They have monopoly power.

>> These stadiums weren't even allowed to

say, I'm a Gillette Stadium or Metife.

They had to cover it up such that FIFA

would have total monopoly power on all

monetization of ad revenue.

>> Interesting. It's a grift everywhere you

go.

>> Yeah, it it definitely feels as if and

I'm a capitalist. I don't I I don't

think there's any better way to leverage

the most powerful instinct and then a

self-preservation and capitalism. And I

do think it's it's just proven over and

over that creates the growth you need

for social services,

but it does feel like it's just gone too

far.

>> Yeah, I think you've had too much World

Cup I think. But speaking of grifters, I

I'll tell you something that hasn't gone

too far. Andrew Tate and his brother

Tristan had been arrested in Miami after

British authorities issued 38 new

charges against him, including

allegations of rape and trafficking. Uh,

these guys, I mean, there was obviously

a big meme about his outfit, which was

very strange. It was the strange sort

of, you know, um, lady outfit. It was

odd outfit. Um, but I'm very happy

they're arrested. For anyone who wants

to read about them, you will understand

that these people need to be thrown into

jail and never let out again. Um, I'm so

happy. I hope Trump doesn't try to stop

them from being extradited to England,

which is where these latest um, they

were, of course, uh, jailed in Romania.

>> Do you think he'll do that? I haven't

even thought of that.

>> Yeah, Trump could he did that's how how

do you think they got back here from

Romania? Trump put the put the pressure

on Romania to let him out.

>> God, I think with all the [ __ ] he's

under with with Ebstein, that's the last

thing he'd do.

>> You know, Amanda got this right. This is

Epstein in real time. This is Epstein in

real time. like in at with the

government letting these people off all

the time. That's how they got back here.

That's why they were parting to Maine in

their lady outfits. These two are

rapists and sex traffickers and they and

and child molesters. I just this is just

the fact that the Trumps are so tight in

them with them. Um JD Mance follows

them. Um there it's not there's one

there's manosphere is one thing. These

two are are are predators and uh should

be thrown into jail. And I'm glad

Britain came after them. I I agree that

and I I don't I know it's 38 new counts.

And what I would say is that I I'm glad

that the justice system is taking over

here, but the good news in the lens I

look at this through you, you know, to a

certain extent is that young men have

moved on from the Tates. They're no

longer a thing. The media has not. And I

think it's good that they maintain

coverage and that they're brought to

justice for what would feel like just so

many allegations that that they're going

to spend. You know, it's probably a

pretty safe prediction that they may

spend a decent part of the rest of their

life in jail. The Crown Prosecution

Service has added new charges, rape,

human trafficking, and these images of

child and assault.

>> This is their thing. This is their

>> and it brings their it bring Andrew

Tate's total charges to 42.

>> They found uh additional alleged victims

in Bedfordshire and Hurt for bringing

the total number of accusers in the UK

case to seven. Both of them had dual US

UK citizenship and are now waiting

extradition. The thing that doesn't get

a lot of attention and I think might be

the reason they end up in jail is people

don't talk a lot about

the actual business model. Um, and that

is Andrew Tate didn't get famous from

kickboxing or big brother. He he may

have gotten famous doing that, but he

got rich teaching men to get rich,

teaching men to get rich,

>> right? basically Hustlers University and

he had this bogus subscription remind me

of like Trump University this bogus

subscription education platform and at

one point they think he had 100,000 uh

people almost all men

>> right learning how to be bad men

>> roughly at $50 a month at its peak. So,

$5 million a month in recurring revenue

from basically an affiliate market

pyramid scheme where the product was

mostly more affiliate marketers

and and the pitch was never subtle.

Dominance, submission, and this thing

called the matrix is a world view where

women are property and violence against

them is a lifestyle brand. They they've

really set young men

>> Yeah. back.

>> The the few and I want to give more

young men more credit than just

believing everyone was a Tate fan.

>> Yeah, they are. But the scary thing

about that part of the manosphere and

what was so macatious about it is it

would start off okay, be fit, be

actionoriented, take control of your

economic life, and then it just became

about dominance and misogyny and crime

in a grift.

>> Let's just they just call it what it is.

I mean, they they like sell rape as a

product. Um, I just I I I think that

they they should go to jail and stay

there. And I would agree that all kinds

of young men have rejected them. my sons

years ago had rejected them. Had looked

at them, looked at their stuff cuz it

was really popular when they were

teenagers and I was sort of disturbed by

that cuz I had been very aware of his

messaging and had rejected it. Um that

said, he had enough followers to be able

to party on and among the followers

apparently are Baron Trump and others.

Um, and it just it's, you know, in this

case, I don't blame Baron Trump. This is

grotesque, but it's very attractive in

some way. And they are essentially

rapists and sex traffickers and and now

uh pedophiles and the Trump

administration better remove itself from

any because it is it's Epstein in real

time.

>> These guys at the end of the day, I

believe they're going to be found guilty

of a lot of different crimes and spend a

lot of time in jail. The thing I find

most interesting is that how were

obvious grifters like this and such vile

people able to get so much traction

>> and [clears throat] get so much

influence. They're very close to the

Trump people

>> 100% Cara and I I go back to what Peter

Ducker says that every business success

can be reverse engineered to a change in

demographics. And so what's the

demographic here? What's the market that

opened up? And I believe that it's

millions. It's a cohort that

unfortunately has exploded and that is a

cohort of loneliness and downward

mobility young men and that created

demand and guys like Tate supplied it.

>> Yeah, it must be girls fault

>> wrapped in bugattis and grievance. This

isn't your fault. And uh this the thing

that he has kind of in common with Trump

was the persecution or grievance complex

that they leverage. his the tape

brothers standard response to every

legal action across different countries

that accuse him of crimes has been the

same script. This is a conspiracy

against me because I I speak the truth.

Uh does that remind you of anybody? So

they they take a specific evidence-based

allegation and they reframe it as an

attack on the truth or on an idea. And

and it's it's effective because it's

flattering to the audience that if you

believe him, you're not defending an

accused rapist, you're defending free

speech in a movement. Uh so I I find

like how did this happen to me will be

written about in you know sociology

books.

>> I agree. I let me tell you there's a

story which I mentioned a couple weeks

ago in June. You might have

[clears throat] been away but I think I

did mention it. It's called Andrew

Tate's Empire of Abuse by Heidi Blake

from The New Yorker. You need to read

it. It's an incredible indictment on a

lot of people that facilitated it. But

it you'll get it'll give you a primer

into why these people belong in jail and

should stay there for the rest of their

lives. And I'm glad and I'm glad they

got arrested in such an embarrassing

way, too. You know, the in their weird

little outfits and their

>> Oh, by the way, the silver lining here

is Scott Galloway has his Halloween

outfit. I know. Everybody was talking

about that.

>> Oh my god.

>> They're just Except they're rapists.

Scott. O, you could do better. Why don't

you dress? [clears throat]

>> Well, I'll take the gay prostitute looks

to the rapist. Although, no gay would

dress like that. Sorry. He looks like a

like a a Midwestern lady parallegal.

Anyway,

>> [laughter]

>> um, okay, Scott, let's go on a quick

break. When we come back, uh, SpaceX

stock has taken a dive.

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>> Scott, we're back. This is an

interesting story. Ed is all over this,

man. I've been following this. He loves

this story. SpaceX stock is no longer

blasting off. Let's use a rocket term.

Shares of the company are down almost

23%, wiping out almost a trillion

dollars in market value. One could say

that was overvalued and it's not really

wiping it out. It's just coming down to

where it belongs. As we tape, the market

cap for the company is 1.63 trillion and

going down. The short squeeze is quite

heavy on here. Let's listen what you

said uh about the stock in early June. I

think SpaceX is about to hit a 10-year

high on the minute it goes public,

meaning it'll be all downhill from

there.

>> Yeah, I think you got this. And um so

talk about what's happening here and the

short squeeze with what's occurring. I

think most of the float, which is very

small at this moment, um is devoted to

short sellers. So explain the situation.

>> Uh I think Elon Musk will be remembered

as arguably the greatest engineer in a

sector, but that sector is not space or

EVs. that sector is the financial

markets. He has engineered in in concert

with Goldman and JP Morgan a means of

creating demand whether it's just this

will be a good trade or it's Elon Elon

always gets his investors back or look

at all these pictures of rockets look at

all this flowery we work like language

about the world being an interstellar

species or an interplanetary species

constrained supply and then

unprecedented valuation just not we've

never seen anything like this call the

president or call whoever get included

in the NASA SEC 100 get demand that no

IPO has ever been fortunate enough to

register.

Uh now everyone talks about okay they've

lost a trillion dollars in market value

but it's still worth $1.6 trillion.

>> Someone say it's a $35 stock.

>> Yeah. It's it's not a broken company.

It's a reminder that gravity eventually

applies to stocks too. And th this is

this is what IPOs have become. And that

is they're no longer an opportunity for

retail investors to participate in

America's greatest companies. They don't

create value. They transfer. They no

longer create value. Carat, they

transfer value from optimistic public

investors to early private investors.

Because if someone who's on or been on

the board of a lot of private companies,

there's so much capital available in the

private markets that if the people who

really know the company and the sector

well think, you know what, there's still

a lot of growth and value here,

>> they stay. They keep it all for

themselves and they find their own

capital and they invest,

>> right?

>> And they don't need to access the

public. If you wanted to raise a couple

hundred million bucks like Google did

back when they went public in the '90s,

you had to go public. VCs and

institutional investors didn't have that

kind of capital. Now, the only basically

I've said this for a while, the IPOs

have now become the last stop on the

chump train. And that is okay, we don't

think there's upside anymore here.

Basically, it's a means. It's like

showing up to an IPO right now is like

showing up to a poker game after

everyone else already knows each other's

cards.

>> Ah, and then you're the chump.

>> And it's like that whole thing. If you

don't know who the dumbest person in the

room is, it's you. Now having said that

if you can get in on shares

at the pricing like from you're

investment bank or an institutional

investor or whatever it is there's these

guys engineer a one day pop if we had a

real a real SEC chair coming in I think

a really solid review of the IPO process

>> of this company

>> or even even tokenization even let's

throw a bone at the crypto guys maybe

they should tokenize private companies

put it on the blockchain and create a

level of transparency and disclosure

using AI that more people can

participate in these companies preIPO.

But the IPO process itself

>> is now a transfer of wealth. Yeah.

>> Well, it and not only that, it kind of

it kind of defines the term rigged.

>> Explain what the short sellers are doing

here and why the this float is so they

kept the float tight in order to create

the pop. Correct.

>> So, first off, okay, they waved the rule

was included in the NASDAQ 100. They

also waved another rule. Typically, when

a company goes public, it has to float a

certain amount of the company. With

this, although they raised although they

raised $80 billion on a $2 trillion

market cap company, that means only 4%

of the firm's shares were available,

>> right?

>> And they've have they have all sorts of

staggered lockups. They have effectively

soft lockups that if you buy through

certain platforms, you get banned from

the platform. if you if you sell

>> sell the stock which is they don't want

to call it a lockup because that would

violate certain SEC conditions and

create a different class of stock. So

they created a way a workaround that's

effectively a lock up. But people

basically this is one of the most

shorted stocks in history now cuz people

are betting it's going to go down and

what people do is they borrow stock and

say I'll sell it back to you at the same

price for a fee and they're hoping that

it'll go down and they have they get to

sell it back to you at the price when

they initially shorted the stock. It's

dangerous because any move up creates a

short squeeze and it can, you know, it

can create velocity on the way up

>> which Elon has battled before with Tesla

and other things. He's that he and sort

sellers have been in a lifelong fight

over the valuations of his companies.

>> Yeah, this is look, this is a company

that is uh and and every time I say this

about Musk, I'm wrong. And to be fair,

Musk has delivered in spades for his

investors. The people who invested in

Twitter, it's like they must have

thought, I'll write this thing off. And

he's like figured out a way to stuff it

into SpaceX and talk about rockets. And

those people now have a chance to get

their money out. But here's the thing. I

believe they're going to get their money

out. And there's going to be an enormous

number of investors who've made a lot of

money to be fair, a lot of private

investors, and it will create some

economic growth. I a guy a friend of

mine from one of the investment banks

said that there are 12 new billionaires

just in Texas. You know the IPO market

and capital formation in the US and

SpaceX is part of this is a marvel

>> except they may not be stay

billionaires, right? Elon's no longer a

trillionaire now at this point.

>> Oh yeah. Okay. But still the amount of

wealth created

>> I get it. I get it. But it's on the

backs of

dupes, right? Someone's going to be at

the short end of the stick and that's

going to be the return.

>> Okay. to to be fair. Okay. I I don't

think

we're out there telling people it's

overvalued. Uh I mean Goldman Sachs and

Morgan Stanley putting a price rating on

it at 205 and 300. That is a that is an

exercise in creative writing. And I

wonder if we're headed back to again 99.

Remember when people were saying where

where analysts were saying putting out

buy recommendations and then in private

emails saying this is a piece of [ __ ]

There's just no [ __ ] way. I don't

care who that Morgan Stanley analyst is.

My guess is he or she is a very bright

person

>> and in exchange for the fees for

underwriting this company in exchange

for uh the opportunity to manage the

wealth of the of the shareholders post

the IPO, which is actually a bigger

business for these investment banks that

people don't talk about.

>> There's a general onus on the analyst

not to say this thing's overvalued. It's

worth 40 bucks a share.

>> That goes back that goes back.

>> Right. Right. And [clears throat]

Sarbain Oxley I think was supposed to

cure that and it has not. The only

difference is it used to be if you had a

certain type of company the analyst

writing it up was the most important

thing and the analysts used to show up

to pitch the IPO

and they're no longer allowed to do

that. They're supposedly not talking to

each other but there's no [ __ ] way

anyone with half a brain would put a

$300 price target on this thing.

>> What would you do here? What what is

>> as an investor?

>> Yeah. Just sit quietly. Uh, if you're an

Do you mean a shareholder or just

>> If you're a shareholder now, is it going

down?

>> Sell.

>> Are you kidding?

>> Yeah.

>> The the Let me The way I look at it is I

just look at the asymmetry of potential

upsides and the underlying valuation.

The asymmetry here is is very dramatic

that if this stock was at seven, it's

much more likely, what is it now? 140 or

something. I don't even know what. It's

much more likely this stock's at 70 than

280. So you have asymmetry to the

downside, which means sell. Now, you've

got to look at tax ramifications if you

got into the IPO or whatever. But also,

if you're a private market investor, you

might be up 10 or 20x on this, which

again, credit SpaceX, credit Elon,

credit the markets for creating that.

>> Oh my gosh,

>> get out.

>> I've had calls I haven't had a call from

anyone at SpaceX. I've had calls from

employees at OpenAI and Anthropic that

are being pitched to buy their shares in

the secondary market and I would say the

same [ __ ] thing. Sell at least 50%

and hope and call me. I hope I'm wrong.

>> Lock it in.

>> Lock in most or all of those things.

>> Lock it in. All right. Well, speaking of

which, in that topic, China is once

again staking its claim in the AI race.

This is a really interesting story.

Something we've talked about a lot.

Chinese startup Moonshot AI just

unveiled a new open- source model called

Kimmy K3, which the company says can

match top models from OpenA and

Anthropic on important benchmarks.

Moonshot has priced the model at $15 per

million output tokens. That's cheaper

than Anthropic's Fable 5, which cost $50

for the same level of output. AI and

semiconductor shocks dropped on this

news, similar to what we saw with Deep

Seek last year. Scott, this is before we

discuss this, I want to play a

prediction you made last December about

China, AI, and Trump. Let's listen.

>> I think China's about to go for the

jugular here, and I think that they're

going to massively engage in what I'll

refer to as AI dumping, and that is

these openweight models. These models

are just much cheaper, lower power

consumption, and everyone from Airbnb to

other Fortune 500 firms are starting to

recognize that these things are lower

cost. And uh I think essentially China's

going to say, "Okay, the fastest way to

kick this guy in the nuts is that he's

made a giant bet on AI, including the

S&P and his entire economy on AI, and

we're just going to start dumping AI

into the US market."

>> So, great prediction. Um I I want to

talk about how concerned are US

companies. They're of course calling it

AI communism. One of them, one of the

one of the top people um about what

China's doing.

>> What does that mean? Centrally planned

AI. Well, they're giving giving it away

for free everybody and benefiting

society.

>> It's called dumping. There's nothing

more capitalist than trying to

consolidate markets.

>> So Trump's former AI David Sachs called

this a new model concerning and argued

us is setting itself back with

regulation saying this is how you lose

the AI race. There is no regulation,

David. So I don't know what you're

talking

>> I think he's talking about the data

center more

>> whatever it doesn't matter. It is this

is not why the this is not the problem

David. The problem is these costs. Uh,

so Scott, go for it because you really

did. I have, this has stayed with me

when you started talking about it last

year and I remember thinking he's dead

right about what China's going to do

here. And you're right. It's not AI

communism. It's AI capitalism is what's

happening.

>> Cara, this is the biggest story that's

getting this is the business business,

the biggest business story that is

getting the least coverage. And that is

everyone thought the AI race would be

won by the company with the the smartest

model. And increasingly, it's looking

like it'll be won by whoever can drive

margins to zero the fastest. China isn't

going to beat open AI uh in a frontier

model, a premium AI. That's not what

they're trying to do here. They're

trying to make premium AI economically

irrelevant. Moonshot pricing AI at

roughly 70% below comparable frontier

models. It's not competition. It's

>> dumping.

>> Get used to the word. Exactly. It's AI

dumping, folks.

>> Yeah. Dumping. And this is what China

has done. This is just like for God's

sakes, if we had a secretary of commerce

who didn't have his head up as us and we

had economists who were in the room, for

God's sake, just spend an hour with G

Rio Mundo. For God's sakes, just

>> I just did. I just

>> get get Justin Wolfers in there and say,

and just listen to the people. This is

what China did to solar panels, steel,

EVs, and batteries. First they match

western quality or they don't even match

it 80 90%.

>> Close. Actually they match it with cars.

They've matched it but go ahead.

>> Then they cut the price by 2/3. Then

they own the market. Investors should

stop asking who has the best model. The

the the salient

key question is the following. Who still

has pricing power in 24 months?

>> Yes. So what do the So Trump will do

will try to keep them out of here the

way they did with EVs, but it doesn't

matter because across the globe, China

will own the markets everywhere like

they do with EVs. That that is in if you

go anywhere except the United States,

their EVs are everywhere. Everywhere. So

what happens here? What cuz they're

going to try to keep they'll keep it out

of this. This this is what these these

companies are freaking either want to be

bailed out or they want to be protected

which is of course typical of them

because they're communists. Um, so what

what what what does the Trump

administration do since as you noted

they're banking as you completely

presently noticed they're banking on

this? Um, they've staked their entire

market upon this. Um, uh, I think that's

exact that's what you said, his entire

company on AI and we're going to start

dumping AI onto the US market. So what

is what did the Trump administration do?

Especially because they're in there

especially after the midterms, they

don't have a lot of moves to make here.

When you make unilateral non-market

decisions that are caked in bad

judgment, you end up in a quagmire. You

end up in a corner with no good options.

>> Sounds like Iran.

>> That That's exactly right. Whether it's

going into Iran without consulting

Congress, your allies, having a plan

around the state of Hormuz, you end up

with no no good options. by deciding to

no regulation

um making a huge bet on AI

infrastructure or making an just an

enormous bet. market has just gone so

crazy, so concentrated around small

number of companies. And what you have

here is he's going to be in a real

quagmire cuz you think, well, okay, he's

just going to regulate it and tell these

companies they can't use tell American

companies they can't use Chinese models.

But the most frightening graph for the

American economy and the global economy

is one of those mountain graphs. And it

shows it in the last 90 days,

>> token usage of Chinese models has gone

from like single digits to 53%.

>> Yeah.

>> The majority of AI consumption now in

the US appears to be coming from Chinese

openweight models. And here's the

problem. Whether it's David Saxs or

whoever it is that has an enormous

investment or just the economy has an

enormous investment and is dependent

upon the growth of OpenAI and Anthropic

and Nvidia and all these companies the

chip guys the infrastructure guys won't

be hit as hard but the front-end models

if they get hit hard the whole thing

could that you know those dominoes are

already starting to tip

>> Oracle Amazon

>> but the problem is every VC and all the

other people that he caters to are going

to call him and say, "I I can't afford

to build this new insurance AI company

if you all of a sudden overnight decide

I can't use Chinese open AI models." So,

he's he's surrounded by a lot of donors

who are making a lot of money arbing

arbing down the application layer to a

cheaper LLM layer.

>> And then there's the cyber security

exposure. I mean, it just goes on.

>> And he doesn't surround himself

>> smart. He surrounds himself with people

who want to make money in the short

term, but don't think about the

long-term ecosystem here.

>> Yeah.

>> I I call this Okay, two things. AI

dumping and next quagmire.

>> He's going to be in a box here. He's

going to be in a corner here.

>> He doesn't even know. He doesn't even

know.

>> I don't [clears throat] think he

understands. I don't think he cares.

>> I don't think he cares. I don't I think

he's on his way out and he's trying to

grab for whatever he can. You know, like

remember those things where they gave

you a a cart and you ran around a

supermarket and you had 10 minutes to

take everything. That's what it feels

like. Like he's running around. Not that

he could not that he could run around.

>> I forgot [laughter] about this.

>> Get to the meat.

>> So I was a macro microeconomics graduate

fellow in business school. This is

literally going to be the most exciting

fun

period to look at just how people It's

like smooth holly all over. We used to

just talk about how stupid tariffs were

and there was different historic events,

the oil shock of the 70s where we talk

about how how stupid they were in the

20s during the Great Depression to

actually constrain and tighten fiscal

supply. This this era is just replete

with head up your ass decisions that

illuminate economics and markets.

>> And then they blame like some housewife

in Utah who doesn't want a data center.

I think you're absolutely right. The

focus on data centers is probably too

much, but at the same time, it's not

enough because the ones that they stick

right in front of people or right in the

midst of people, they couldn't have done

it well. They had to like do it in the

most aggressive,

>> really tonedeaf,

>> tonedeaf way. I've been talking to a lot

of people who are building these things

and they're like, "We can show that we

make money from it." I'm like, "Oh my

god, they hate you." Like, you really

have lost the narrative here so badly

that you you need to reccalibrate what

you're doing. I never, you know, miss a

chance to to to intellectually virtue

signal. I think I think being a critical

thinker means that on a regular basis if

you do what we do, you inflame the

people who think they like know you and

trust you and like you and you say

something because you think it's the

truth and knowing that people are going

to get angry, it I do this like every

couple weeks. I say something that

people think are stupid or wrong and

they like let me know via email and

social and that's fine. And I think that

probably means one, I get it wrong, and

two, I'm doing something right. And the

latest one, people are in flame that I

said the data center push back was

populist [ __ ]

>> No, you said some of it was. You were,

let's be clear,

>> let me let me let me be clear. Whether

it's a chicken processing plant, a

nuclear power plant, or the Ford

factory, generally speaking, in every

economic economic progress involves just

very understandable nimism. It's like,

"No, I don't want the chicken processing

plant next to me. I don't want

Three-Mile Island a mile from my house."

The the charge of local government is to

weigh the externalities versus the

upside and make a thoughtful decision

representing their community. And if you

just go item by item here, you know,

some are very real concerns. Probably

the most significant is the idea that it

would strain the grid and send up

electricity costs on middle class

households such that Sam Alvin could get

richer. That is a very legitimate

concern that should be screened for. But

what gets missed is that many, if not

the majority of these power these plants

will be off-grid and powered by natural

gas.

>> No, that is perfectly fine. I just think

you have an Elon in Memphis like

poisoning people of color, poor people

of color. You've got a Kevin Olirri in

Utah like accusing people.

>> Poisoning people of color is a pretty

charged statement. Why do you say that?

>> Because there's lawsuits right now.

Methane because he has a methane um

there's a lawsuit. This is alle this

well there's a lawsuit happening in

where he opened the thing where he's

releasing all levels of methane and it's

causing pollution and poisoning. That's

that's what that's the lawsuit

>> whether whether it's where

>> listen it'll be in court. This will this

will happen in court and I'm just saying

this is what it looks like is that they

they cannot help themselves or you have

Kevin Olirri accusing people of being

Chinese communists

>> in um in [clears throat] Utah picked a

worse spokesperson. they couldn't have

picked a worse so or putting them even

close but when people are paying more

for electricity and it looks like you

know uh it looks like local officials

are on the take or or you know there's a

lot of controversy about the Louisiana

plant I don't know you know that that

should be litigated essentially

>> my fear is that

because people are quite frankly this is

the newest vessel for understandable

anger around income inequality that blue

states are going to pass these

moratoriums rather than saying how could

we make this so lucrative for the the

the citizens of of Minnesota in terms of

property taxes and an entity that does

in the short run granted in the long

term not a lot of jobs in the short run

create some vocational jobs and we get

property taxes from an entity reliable

property taxes from an entity that

doesn't tax our social services almost

at all they have closed loop water

systems and uses their own energy that's

off-grid and pays a lot of property

taxes and if I were these guys I've told

you my idea I would try and get those

payments locked in because I don't think

as many of these things are going to be

built,

>> right? No, I get that. I think the more

terms aren't forever. They are let's

have a figure out get this to do this in

a right way.

>> But that's that's what hearings and

public hearings and our legislative

officials are supposed to do without a

government a governor weighing in and

just doing a blanket moratorum,

>> right? But a lot of these tech companies

are jamming these things through. I

mean, that's this is the issue is that

they want to take a minute so they can

do things like that. And just you just

you know I think it's actually an

interesting business because Meta in

talks to lease computing power from its

data centers to Anthropic that could be

worth 10 billion dollars over two years

similar to a deal Anthropic just made

with SpaceX for computing power but only

a third of the size. You know Meta is is

wants to use this compute this these

infrastructure computes to get in the

cloud computing business to offset the

costs of AI capex. You know, there's all

manner of things working out here. And

certainly government should be part of

it. I think it's just the manner in

which several of the most high-profile

properties are going in that creates

this hatred. Essentially,

>> this is

techno narcissism, income inequality. I

don't give a flying [ __ ] about you. I

say tonedeaf things. I think that humans

require too much power. I think there's

a genocide against white African. This

is there's ne I Oh, and by the way, I I

have a tendency, the people I cohort

with have a tendency to go to islands

where there's underage girl. The There

has never been an easier target right

now than the tech brothers and some of

it is well-earned. At the same time, a

public official's job is to balance it.

Here's here's what I fear. Blue states

will feel political pressure to make

long speeches and put on moratoriums on

data centers. the Republican southern

states will say, "Come one, come all."

And they're not stupid. They're not

going to let them just like soak up all

the water. I I I think they're smarter

than that. And what I worry about, Cara,

is that while Democrats in blue states

will feel righteous, we won't have as

much tax revenue to pay for SNAP

benefits and pay our high school

teachers.

>> I get that. But the actual backlash is

happening in Tennessee.

>> That's a good point. That's a good

point. Is that Colossus? Is that where

Colossus is?

>> Right. this. Let me read this from

Reuters. Elon Musk's XAI has installed

far more gas turbines without federal

permits at its Colossus 2 data center

project in Tennessee than it publicly

acknowledged that pollution is hitting

predominantly black neighborhoods the

hardest. A Reuters analysis found like

this is just this is just like a layup

for any reporter. And this potential

emissions from the turbines are far

beyond the threshold that would require

a federal permit and would release in

near predominantly black communities

already estimated to be suffering

disproportionately high rates of lung

disease according to writers. I mean

poisoning.

>> Yeah. And that that has a that has a

consistent and rough history that that

corporate America tends to go into

areas.

>> Exactly. And if they had done it in the

right way and saying like we're going to

help the community, we're going to give.

You're absolutely but they couldn't help

themselves. And they of course I

personally I think Elon does more damage

to these people than anything else like

in terms of the way he behaves. And then

you have you know the you know the [ __ ]

Kevin Olirri coming up the side calling

people Chinese communists cuz they

object like every single thing that gets

built gets objected to. But the way they

handle the objection is anyway I I I

would agree. I think you were absolutely

right and I I don't think you're wrong.

I just think the way they did it in

high-profile places uh creates this and

it is an opportunity. It's just a

question of how much an opportunity and

how much a state or a fed a local area

should get. Anyway, it's a really

interesting story, but it's you're

right. You got this 100% right along

with the Chinese dumping to me is one of

your greatest calls. It was a long time

ago and I go on

>> I have to give you credit. That's the

way I want to start.

>> I have to give you credit. people are

going to just use these Chinese models

and there's all manner of cyber issues

around that security issues too. Not

that I trust these American companies

much either. Um, all right, let's go on

a quick break. When we come back, why

Netflix earnings have investors

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>> Scott, we're back. Netflix shares just

hit a 52-week low after the company's

latest earnings report. Revenue and

income were roughly in line with

expectations, but investors were spooked

by a third quarter revenue forecast that

raises concerns about growth. Another

red flag, engagement. This has been

really the talk of lots of people. Ted

Sando's hit back at those sophomore

slump. Viewership drop off report saying

it's very common in the industry in

season 2 falloff has actually improved

this year. Netflix also says subscribers

watch 97 billion hours in the first half

of the year up 2% from last year. Not

2%. That's not that great. But the

company is cutting back on on what we

watch reports now releasing data only

once a year instead of twice. Um uh

they're obviously thinking about live TV

channels. They got podcasts on there.

They're doing short form stuff.

subscription bundles they're thinking

about which they never thought they

would do. Um they're looking like TV to

me like or or whatever. They're looking

like YouTube is what they're trying to

do. So talk about what's happened here

cuz they were sort of on a high like

they could do no wrong and now people

are sort of slapping at them pretty

hard.

>> I didn't see this coming. It's a big big

story. I thought their stock I thought

the company was going to be well

positioned to benefit from not spending

$118 billion such that they could you

know have Scott Pelle like get angry or

maybe they wouldn't I mean I I think

they wouldn't have ever had no they

wouldn't have handled it that way they

wouldn't have gotten CBS that was

paramount right that was sky dance you

see what I'm saying though like I I

there's just no way you could have

pulled off a big acquis I I think I

think they they showed real the board

and Ted showed real discipline walking

away I don't it got to a point was like,

"Okay, we're going to be house poor

here. We're going to be trying to figure

out ways for 10 years to figure out a

way to show a return on this." To a

certain extent, they become a, if you

look at the earnings call, they become

victims of their own success. Wall

Street's no longer asking can they win.

They ask can they keep winning forever.

I mean, and you you talked about this 97

billion hours watched and that's

unbelievable, but it's up 2%. And people

are used to double digit growth from

Netflix. And the problem is it's not a

startup anymore. It's becoming cable

with a much better interface. And every

media company eventually realizes the

same thing, and that is attention is

finite. And the next story growth isn't

adding subscribers. It's owning more

hours of your day. But they've made more

progress against that than they get

credit for. They're going into live

sports. They're going to have NFL games.

They're actually bidding, which I care

about, on the 2030

>> um World Cup. I just did that Brian

Williams thing that you did. Yeah,

>> you know, we started talking about when

we're going to hang up our cleats and

he's like, you know, when the fast ball

is no longer fast. And I'm like, oh,

Brian.

>> Oh, Brian. Ah, let's put those horses

away wet and tired.

>> Yeah. He's got this folks. He's like,

"Well, that's like having a moose in a

convertible." I don't even know what

that means, but it sounds very down

home.

>> He [laughter] does.

>> Yeah. He's a very Anyways, very liable,

handsome.

>> Yeah. Just a nice handsome guy. But

look, the I the bottom line, this

company Netflix has almost been cut in

half and I like a bottoms of valuation.

It's trading at its lowest PE in a

while. I think the company's a buy here

solely because well, two reasons. One,

it can it's the operating system for for

for

nonwork hours and every time and this

happened to Netflix three or four years

ago. The stock was way down. It was.

>> And right now the fear is a clip economy

that we're

>> Yeah. YouTube is the fear.

>> We have a new generation of people that

don't want to go longer than two or

three minutes. And that YouTube and that

clips on Insta and Reels are going to

begin to soak all the time away.

>> Their ad tier has actually done really

well and is responsible for a lot of

their new startups, which by the way I

thought was a bad idea. And the reality

is Ted and his God, what's a coco's

name? I don't give him enough credit.

Greg. Yeah. co-CEO of uh of Netflix. The

bottom line is every time people people

talk about this company's overvalued and

the stock gets hit, uh Greg Peters

that it ends up being a buying

opportunity.

>> Yeah, I would agree. Although they do

have risks from I I worry about some of

them being a little um jumpy with the

podcast with the like and they're just

sort of trying everything and maybe they

might need to be a tiny bit more discip.

>> Yeah, but they're very analytical. They

are. That's correct. They can pull

stuff. They have They're using AI and

analytics to look at what should be on

the home screen, what shouldn't.

>> Yeah, I agree.

>> And I think of of any media company.

>> You don't want to bet against Ted and

Greg. I really I'm actually looking at

the stock for the first time. I told you

my Netflix stock story. I bought it at

12. That's the good news. On a

riskadjusted basis or split adjusted

basis, it's now at 700. The bad news is

I sold it 3 months later at 10 to take a

stock loss. I want to find a time

machine so I can go back in time and

kill me and then kill myself. [laughter]

>> Seriously, I wouldn't I wouldn't be

doing this Joey bag of donuts

>> podcast. You know, it's a question of

what what what you do like and I think

they were smart not to get that as you

said. And speaking of which, we got Eric

Gardner from Puck. The other story is of

course the Paramount Warner deal and the

AGs which have sort of stopped it in its

tracks for now. But let's listen to Eric

Gardner from Puck about what's happening

at Paramount because this also slows

down a competitor of theirs. Um, let's

hear his summary of that.

>> For the first time, Paramount's people

are starting to talk about the Supreme

Court. So, what's going on there? Well,

yeah, of course, the Supreme Court could

eventually factor. Maybe if an

injunction is issued and Paramount

appeals it up, but I think there's more

going on here. I think it has to do with

bargaining positions. I think that the

state ages know that if they can drag

this case on, uh, it will cost the

Ellison's a lot of money, $1.2 billion

if it's, uh, you know, delayed a few

months. and uh you know, so what are

Paramount's people doing in response?

Well, they're talking about the

consequences of pursuing this fight on

and on and on. They're talking about how

the Supreme Court has conservative

justices who might change antitrust

standards who who might make it tougher

for future mergers to be blocked. And so

they're pointing out the cost that way

as well. An injunction ruling will come

soon. And after that, both sides will

assess their options. maybe they'll get

into a room and start negotiating what a

deal could be and so they'll have these

kind of future considerations in mind.

>> So interest another interesting media

question like it's it's I I personally

would be on Netflix side on this kind of

stuff in terms of figuring out how to

get back you know how to get back in

what they're doing. I guess they

eventually will solve the problem and

then have to deal with the next problem

which is the debt that they have which

is enormous away from all the other

noise about that merger. The debt is the

biggest story there. I I was against the

consolidation here and then I spent some

time with two economists that I really

respect at NYU and at Chicago and

they both convinced me just in very

sober way that this does not even the

combined Warner Brothers Discovery

doesn't qualify

or excuse me Paramount doesn't qualify

as a monopoly and and that the the

industry needs to consolidate and you

don't get to pick the political leanings

of the consolidator. That's not that's

not reason for blocking a merger. The

Now, if I were the unions, if I were

SAG, if I were SAG ARA in in California,

I'd be going apeshit crazy and using

whatever leverage I could because I do

think these guys are going to be more of

a threat to employment than at this

price and with their backgrounds in AI

than another acquirer would have been.

But again, that's not a reason legally

to block a a merger either. We we like

consolidation. We like efficiency.

That's part of capitalism. I think this

is mostly political and I understand

that. Okay, if you're going to weaponize

attorney generals and and AG's and and

and the DOJ, we're going to do the same

thing against your donors. I get it. I

like hitting back. At the end of the

day, maybe California gets some

consolation or they have to spin

something, but this goes through. This

goes through.

>> This goes through.

>> But you [clears throat] But again, these

guys might be the dog that caught the

car. Correct. Then what?

>> That is correct. Then what?

>> Then what? Look at the debt here. And

Oracle, daddy's daddy's piggy bank is

off 44% cuz everyone realizes no [ __ ]

way OpenAI can buy a trillion dollars in

Oracle or 100 billion in Oracle compute.

>> Yeah. Yeah. To me, Netflix is the one I

would focus. I I still would be bullish

on Netflix compared to this. No matter

how this turns out for Paramount, it's

not good going forward cuz they're going

to they're going to have endless things

to deal with along with the political

stuff like along with it. Um it just

goes it's much more trouble. I think

what Netflix is doing to try to figure

out what works is actually a great idea.

Like even even if I think of the half

the things won't work, I kind of like

that they're actually out making things.

And that's what Paramount needs to focus

on is what can they do to revigorate

their businesses and they're not going

to they're they're stymied by the AGs.

They're going to be stymied by the

politics. They're going to be stymi very

much so by the debt, which is what

everybody should be focused on. So in

this case, Netflix to me is the one

that's doing the most interesting.

>> Yeah. You don't socks off 50%. I don't

think you want to bet against this

management team. I think, let me put it

this way. I think there's more, again,

going back to asymmetry. If the stock

doubled and just went back to where it

was, I think people would say, "Yeah,

that kind of makes sense." If it got cut

in half here, that would be exceptional.

So, again, asymmetry

>> versus to the upside versus asymmetry to

the downside in terms of like

>> is our word for the day.

>> Well,

oh my god, you want to talk about a new

defense department asymmetry over and

over. But anyways, I like I think this

is actually an opportunity.

>> Yeah. Anyway, it's an interesting time

in media. All right, Scott, one more

quick break. We'll be back for wins and

fails.

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>> Okay, Scott, we're going to do wins and

fails. I shall I don't know. I have two.

I'm going to have two. Well, no,

actually. Um,

>> your show. your show, lady. You do you.

>> I do me. As I predicted,

>> Kathy Griffin put out this great thread

showing that a picture with her and this

23 year old and she said, "Internet,

have at it." And I'm like, and I wrote

back, Kathy,

>> yeah,

>> have at it.

>> Yeah, have at it.

>> You're consenting adults, enough men are

doing the same thing. Enjoy yourself.

>> Enjoy your money.

>> You're going to be dead soon. Do Do what

dudes do. How about it?

>> Yeah. Anyway, as I predicted, speaking

of of good predictions, The Odyssey did

a crazy numbers at the box office and

sort of knocked off the anti-woke people

who thought

>> my kids went and saw it.

>> Yeah. Pulling in 124 million for opening

in the US, 250 million across the of the

globe. Huge numbers. People were just

not stopping, non-stop talking about it.

Um, which was interesting. Huge sales of

the Odyssey itself, the Emily Wilson

edition, which is considered a much

better translation. um which he based it

on uh just all over the place just doing

really well and I appreciate it. It's a

great film and it deserves it and it

shows that if you make really great

blockbusters that are interesting and

and challenging and a great movie,

people will go to them and gets people

back in the in the in the theaters which

is great economically speaking of all

the knock-on effects. And I love that

they just nobody cared about the stupid

woke stuff that they thought might hurt

it and neither did Chris Nolan. I think

they thought Chris Nolan was

conservative. I don't think he's

anything. I think he just likes to make

good movies. Um I thought that was um uh

that was great. That I thought that was

great. It was a fail on behalf of the

anti-woke people, which was great for my

thing. Uh I think I'm going to do a fail

win kind of thing. Mark Warner, who was

at I I interviewed Gina Rando at um

Johns Hopkins this week, which was a

great interview. It'll go up soon. and

Mark Warner came to the um dinner,

Senator Warner, and then he had to leave

because he had to go on TV um to talk

about Trump's crazy speech, which we're

not discussing at all because it was

insane, which I think was a big turned

out to be a big nothing burger, his

election security. It's his attempts to

slow the election, the midterms down

inevitably.

>> There was election interference. It just

was from pus when he tried to get votes

out of Georgia.

>> Yeah. And and a pro. So, um, so anyway,

so Mark is is very much I have to say I

give him great credit. Um, and he he he

pillaried CBS for running the, uh, Trump

speech for, I don't know, 17 minutes

without any, uh, comment, especially

given Trump's record. By the way, MSNBC

did it for 10 or so. Um, I I have to

give credit to CNN, which I thought did

the best job of handling this because

they had a lot of the digital stuff to

do. So, they did not run the speech live

because of Trump's record on lying about

election interference, like very clear

record. Um, but they did keep feeding

Caitlyn Collins. I thought she did a

great job. Um, clips and then they would

comment on them and and fact check them

in real time as they were happening. And

at the same time, they did avail

themselves. They did put the speech on

the streamer live, but next to it were

reporters commenting on commenting and

factchecking in real time next to the

stream, which was great. They used

digital means to do this, which was

great.

>> They should do that at debates. They

should [clears throat]

>> We had this idea two years ago. Have a

Chiron with a with a bipartisan

committee

>> doing pants on fire or truth or mostly

true,

>> right? this is what they just fact

checked them they but they allowed

people to watch it which is like on the

streaming where it belonged but they

didn't do it on broadcast television and

and they had reporters and then they had

reporters reading the documents and

commenting on them in real time I

thought I got to say Mark apparently

from when I talked to people at CNN Mark

Thompson was behind that that's exactly

how you handle that and I think Mark

Warner was absolutely correct to Pillary

CBS for just putting it out there

without any kind of factchecking for as

long Yes, they did. I I think MS should

not have done it either. Um so I'm going

to be equal time there. Um uh but I

thought Mark was great and he was he's

very concerned about what Trump is

trying to do. Um and it was a real fail

on behalf of several news organizations

and a win for CNN to be doing it that

way. Other others did not. I think ABC

didn't run it. um NBC didn't, but I

thought they did the best job because it

did provide the speech in real time, but

put around the guardrails that reporters

are supposed to do. So, I was really

kind of pleased uh to see that u to see

that done so well on in the CNN as it

currently runs. And so, kudos to uh to

for them and Mark Thompson for doing

that and Mark Warner for warning about

it. Yeah, I I you know, there's there's

very few people you meet and you think

this guy would be a great president

right now. I think Senator Warner would

be an outstanding centrist president.

>> He's so um he just had the tragic death

of one of his kids. Um but he's just

keep he keeps going and I really

appreciate his his public service.

>> Yeah. Well, there are a lot of calls

from the Democratic party for him to

run. people saw him as very electable,

but he's he's had a lot of struggles

with his or he's had real tragedy and

he's always um as one should opted for

for his family. Anyway,

uh okay, so my loss is

again and we have to point this stuff

out and I I always I always promise

myself I'm going to be more focused on

business and tech and less part of the

raid cycle, but I do think it's

important we continue to point this

stuff out. Trump Media is is building a

paid subscription product out of insider

trading. And that's not hyperbole. It's

that's the actual SKU here. The offer is

the following. For a free for a fee,

Wall Street firms or investors

uh get Trump's true social post

delivered in milliseconds ahead of the

public fee. I know

>> it's insider trading. That's

>> that is ex. It's front running insider

trading. The launch is August 1st.

Clients are already signed up and Trump

owns 41% of the company and he's selling

or you know so like let's strip the

euphemism. This isn't a data feed. It's

a frontunning service and the product

being sold isn't information. It's the

ability to trade on insider information

before the country reads the same

sentence.

And

so why why does this matter? In April,

Trump posted that Iran had fully

reopened the straight of Hormuz. It was

false. Oil moved anyways. The post was

the event. The truth was optional. So,

he can he can move markets if and when

he decides it's beneficial for him or

the people paying for his insider

trading API. Trump has used Truth Social

to move markets on tariffs, Fed

personnel, military strikes. Every one

of those posts is now a product with a

millisecond paid tier.

And every every rule in modern

securities law, reg blackout windows,

insider trading statutes exist to

prevent one thing. Someone getting to

trade on material information before

everyone else does. And the reason we do

that is the reason capital formation

is unparalleled in our society and

companies get access to cheaper and

cheaper capital, which means crazier and

crazier ideas deeper in the barrel get

funded. And occasionally those deep in

the barrel batshit crazy ideas end up

being alphabet and we end up having more

tax revenue and more jobs for our kids

is because the 99% of investors who

don't have access to inside information

or the 99.99

still feel like they have a fighting

shot. Russia has absolutely no stock

market despite being a a real economy

and having a lot of firms that create a

lot of cash flow value because the

populace believes and knows the game is

rigged against them and so they don't

invest in it. And if you if you continue

to have a small group of people who can

engage in inside, it's getting to the

point now where everything's gambling

and and someone else is the house

because you don't have inside

information.

>> No, it's just so blatant. It's so crazy

blatant. It's nuts.

>> Well, it's a logical endpoint of a

pattern that's that's existed for a

while. 2.2 billion in Trump's disclosed

income during his time in office. 1.4 4

billion of it crypto, more than any

public crypto company made last year.

>> Also, his stock trades also

>> 22,000 of them in 2025.

>> Biden made 13 in his whole presidency.

Nvidia shares bought a week before

Commerce approved Nvidia chip sales to

China. Palunteer bought nine times

before he publicly placed praised its

warfighting capabilities. Meanwhile, SEC

enforcement actions against public

companies 80 a year under Biden. Yeah.

>> Four in the last year, folks. You think