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	<title type="text">Elizabeth Lopatto | The Verge</title>
	<subtitle type="text">The Verge is about technology and how it makes us feel. Founded in 2011, we offer our audience everything from breaking news to reviews to award-winning features and investigations, on our site, in video, and in podcasts.</subtitle>

	<updated>2026-04-20T20:19:49+00:00</updated>

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				<name>Elizabeth Lopatto</name>
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			<title type="html"><![CDATA[Silicon Valley has forgotten what normal people want]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tldr/915176/nft-metaverse-ai-weirdos" />
			<id>https://www.theverge.com/?p=915176</id>
			<updated>2026-04-20T16:19:49-04:00</updated>
			<published>2026-04-20T16:30:00-04:00</published>
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							<summary type="html"><![CDATA[One of the most mortifying things about knowing a lot of techies is listening to them tell me excitedly about some very important discovery that they believe they have made. Recently, I ran into an acquaintance of mine, who began talking my ear off about an amazing discovery he’d made with LLMs. Knowledge, it turns [&#8230;]]]></summary>
			
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<img alt="A brain is shown, melting in the sun" data-caption="The long-term risks of the All-In Podcast, illustrated. | Image: Cath Virginia / The Verge, Turbosquid, Getty Images" data-portal-copyright="Image: Cath Virginia / The Verge, Turbosquid, Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/04/268457_HUBRIS_CVIRGINIA.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	The long-term risks of the All-In Podcast, illustrated. | Image: Cath Virginia / The Verge, Turbosquid, Getty Images	</figcaption>
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<p class="has-text-align-none">One of the most mortifying things about knowing a lot of techies is listening to them tell me excitedly about some very important discovery that they believe they have made. Recently, I ran into an acquaintance of mine, who began talking my ear off about an amazing discovery he’d made with LLMs. Knowledge, it turns out, is structured into language! You could put one word into ChatGPT and it might understand what you wanted, or make up a word and see if it understood what you meant! These amazing new tools have revealed that the English corpus contains so <em>much</em> about its speakers!</p>

<p class="has-text-align-none">He concluded that LLMs are a discovery on par with writing.&nbsp;</p>

<p class="has-text-align-none">Regular humans hit on this idea about a century ago; my most generous interpretation of what he was telling me was that he’d hit on a kind of naive, confused version of Structuralism; Saussure via a game of telephone. (There has been <a href="https://www.upress.umn.edu/9781517919320/language-machines/">recent work</a> on a similar point, which argues that one needs to <a href="https://www.jhiblog.org/2025/06/11/language-and-image-minus-cognition-an-interview-with-leif-weatherby/">understand LLMs via literary theory</a>, but it <a href="https://3quarksdaily.com/3quarksdaily/2025/08/attention-is-all-we-need-on-leif-weatherbys-language-machines.html">starts with Saussure</a>.) I tried to get out of the conversation as quickly as I could, not least because he seemed frustrated that I didn’t see things exactly as he did —&nbsp;a new behavior and likely a symptom of LLM overuse.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>There is a certain amount of hubris required to throw oneself at an unsolved problem. But elsewhere, that hubris is a liability.</p></blockquote></figure>

<p class="has-text-align-none">Not every discovery that’s new to you is actually new. For instance, there’s Elon Musk <a href="https://x.com/MarioNawfal/status/1989414278936629595">marvelling at the complexity of hands</a>; I could point to a variety of disciplines for which this is 101-level stuff: artists, who have to figure out how to draw them; surgeons, who have to figure out how to operate on them; musicians and magicians, who rely on extremely fine motor skill to produce their work; neuroscientists and psychologists, who doubtless encountered the cortical homunculus early in their careers. Or Palmer Luckey claiming that <a href="https://x.com/PalmerLuckey/status/1939520689662484906">“no one has done a postmortem”</a> on the One Laptop Per Child computing project —&nbsp;because he didn’t know there’s a whole book about it called<em> The Charisma Machine.</em></p>

<p class="has-text-align-none">At its most absurd nadir, one is reminded of Juicero, a company that sold a $400 juicer that did the same work as squeezing its proprietary juice packs with one’s bare hands.</p>

<p class="has-text-align-none">Look, discovering something that’s new to you is exciting —&nbsp;ask anyone who listened to me yell about the joys of European (higher-fat) butter — but you can’t take for granted that something that’s new to you is new to <em>everyone. </em>These things have in common a certain incuriosity that I have found endemic among a certain kind of tech enthusiast, particularly the ones who are most interested in startups and entrepreneurship. Perhaps they have been so siloed that they did not realize their “discovery” was well -known elsewhere, or perhaps their self-conception is that they are the smartest, and if they don’t know something, no one knows it.&nbsp;</p>

<p class="has-text-align-none">There is a certain amount of hubris required to throw oneself at an unsolved problem — you have to believe you can solve it. But elsewhere, that hubris is a liability. It leads you to do weird things, like <a href="https://www.theverge.com/tldr/897566/marc-andreessen-is-a-philosophical-zombie">announce that Freud invented introspection</a> and that it is a bonus that you simply do not engage in it.</p>

<figure class="wp-block-pullquote"><blockquote><p>Within recent memory, people who made software and hardware understood their job was to serve their customer</p></blockquote></figure>

<p class="has-text-align-none">When I think I have observed something important, my first impulse is to go to a library, or Wikipedia, or a person who I think may be knowledgeable, and see what else has been observed. For instance, when I had a concussion, I wanted to see if anyone else had written about what it was <em>like</em> to recover — the dry medical descriptions did very little for me. When I couldn’t easily find an account, <a href="https://www.theverge.com/2017/9/27/16086018/concussion-diary-brain-injury-recovery-symptoms">I wrote my own</a>. I still receive emails about it, years later, from people who are doing the same search I did, following their own concussions. But doing something like this requires you to take for granted that other people are smart, that smart people have always existed, and that very little in the human experience is new. That requires, you know, intellectual humility —&nbsp;and a willingness to think about other people’s experiences.</p>

<p class="has-text-align-none">While this particular kind of hubris makes people crashing bores, it’s not just an annoying personal trait. It seems to have seeped into the professional side of Silicon Valley as well.</p>

<p class="has-text-align-none">Within recent memory, people who made software and hardware understood their job was to serve their customer. It was to identify a need, and then fill it. But at some point following the financial crisis, would-be entrepreneurs got it into their heads that their job was <em>to invent the future</em>, and consumers’ job was to go along with that invented future. My guess is that they’re aping what they thought Steve Jobs was doing when he, for instance, got rid of the optical drives on the MacBook Air.&nbsp;</p>

<p class="has-text-align-none">But Steve Jobs, famously, failed at inventing the future in the 1980s and got booted from Apple. We all know how things changed when he came back. But the iMac, the iPod, the iPhone were built with a need in mind. The iMac won because it was easy to use. The iPod was easier to take with you than a CD player and a stack of CDs. (It also was a way to play the MP3s you might have illegally downloaded.) The iPhone had the App Store, which expanded its utility well beyond any other mobile device.</p>

<figure class="wp-block-pullquote"><blockquote><p>At some point, our Silicon Valley overlords forgot that in order for their vision of the future to be adopted, <em>people had to want it.</em></p></blockquote></figure>

<p class="has-text-align-none">Some of this was luck — <a href="https://www.theverge.com/2021/10/7/22711230/springboard-handspring-documentary-secret-history-first-real-smartphone">introducing the right product at the right time</a>. But each product offered consumers a distinct value proposition. Sure, early adopters jumped on each of these things because they were cool, but the uncool masses don’t care about that. They’ll buy something if it improves their life in a distinct way.&nbsp;</p>

<p class="has-text-align-none">In the place of problem-solving technology, companies have jumped on successive bandwagons like NFTs, the metaverse, and large language models. What these all have in common is that they are not built to really solve a market problem. They are built to make VCs and companies rich. NFTs, like crypto, let VCs quickly unload investments with abbreviated lockup periods. The metaverse promised to enrich companies like Facebook by having people move <em>all</em> their socializing online, where it could be surveilled and monetized. In addition, Facebook’s metaverse required the purchase of hardware, which would then need regular upgrades.</p>

<p class="has-text-align-none">At some point, our Silicon Valley overlords forgot that in order for their vision of the future to be adopted, <em>people had to want it.</em> That’s why NFTs, the metaverse, and the Oculus and Vision Pro never really found their customer base. AI is, admittedly, more useful — it’s good for organizing large swaths of data, for instance. LLMs have had widespread consumer adoption, at least as long as they remain free. But there is only really one customer for LLMs that can justify the massive cash incineration process that was required to build them: the US government.</p>

<p class="has-text-align-none">There can only be a few winners on government contracts, though. So we are now treated to the spectacle of watching AI companies scramble. OpenAI is perhaps the funniest, because it is attempting to position itself as a consumer product.</p>

<figure class="wp-block-pullquote"><blockquote><p>The people who tell us that AI will dominate our future and take our jobs are the people who are <em>hoping</em> that will be true.</p></blockquote></figure>

<p class="has-text-align-none">Consider Sam Altman telling the world that he <a href="https://www.businessinsider.com/sam-altman-chatgpt-parenting-jimmy-fallon-2025-12?ref=platformer.news">needed ChatGPT to tell him how to raise a baby</a>. You exist. I exist. Our parents did not have LLMs, or even AI, and yet somehow we survived our childhoods, as did almost everyone else we knew growing up because <a href="https://www.cdc.gov/nchs/data-visualization/mortality-trends/index.htm#data-tables">childhood death rates</a> in the US have been extraordinarily low —&nbsp;compared to most of the rest of human history — for decades. The technologies that allowed us all to survive our childhoods were sanitation, vaccines, and antibiotics. I would put money down that a mandatory measles vaccine will do more for the survival of American children than anything OpenAI has accomplished with all of its billions of dollars to date.</p>

<p class="has-text-align-none">In any event, I presume what Altman actually did was hire a nanny.</p>

<p class="has-text-align-none">Or consider Elon Musk telling us about our future humanoid robot servants. I have a robot servant. Several, actually: a dishwasher, a washer for my clothing, and a dryer. They aren’t very mobile, and yet they have saved me tremendous labor. My fridge is from the ’90s, and my microwave isn’t much younger, and both of those things have been remarkable in what they have done for me: made food storage and cooking easy, without AI involvement. It doesn’t seem like there’s much AI can do to improve things over the baseline that these machines have already established, especially since my “dumb” technology hasn’t required an update in more than 20 years. Saving money is valuable to me, too.</p>

<p class="has-text-align-none">The people who tell us that AI will dominate our future and take our jobs are the people who are <em>hoping</em> that will be true. They may be hoping this because it makes them feel important, or because they want to be billionaires, or because they simply do not understand other people. I think that final point is underestimated. If you are going to provide me with a robot servant, I have a very clear bar: It’s gotta be at least as much bang for my buck as my dishwasher.</p>

<figure class="wp-block-pullquote"><blockquote><p>There are places in our lives where efficiency isn’t desirable</p></blockquote></figure>

<p class="has-text-align-none">Normal people aren’t running around like chickens with their heads cut off, trying to automate every single part of their lives. Indeed, there are places in our lives where efficiency isn’t desirable. Vacation planning is sometimes suggested as a place AI can make our lives easier. For me, at least, planning the vacation is a pleasure in and of itself; it allows me to browse information about a place, consider what might be fun, and imagine myself doing it. If I have friends who have been to that place before, it gives me an excuse to talk to them, getting their recommendations. The entire process sharpens the anticipation I feel as the date for the vacation approaches. But if I wish to outsource that, I can do so already — that’s what cruise ships and theme parks are for.</p>

<p class="has-text-align-none">LLMs are, at best, an enterprise technology that may make certain kinds of data organization easier, or coding faster. This has almost nothing to do with most people’s lives. Dinking around with code is a hobby many tech people enjoy and one the rest of us simply don’t care about. Making it easier to write code doesn’t change that <em>I don’t want to write code.</em> I have other hobbies!</p>

<p class="has-text-align-none">The actual use for LLMs in most normal people’s lives is <a href="https://nymag.com/intelligencer/article/openai-chatgpt-ai-cheating-education-college-students-school.html">cheating on schoolwork</a>. For adults, it’s <a href="https://www.theverge.com/2024/12/5/24313222/chatgpt-pardon-biden-bush-esquire">looking up information</a> —&nbsp;LLMs are in the process of supplanting Google Search. Google had been <a href="https://pluralistic.net/2024/02/21/im-feeling-unlucky/">degrading its search project for some time</a>, and the results just kept getting worse. This opened the door for an alternative, and <a href="https://www.theverge.com/2024/8/30/24230975/openai-publisher-deals-web-search">the LLMs stepped through</a>. How long that will last, I don’t know —&nbsp;the LLMs themselves will require money at some point and their frequently inaccurate (and <a href="https://www.theverge.com/2024/6/27/24187405/perplexity-ai-twitter-lie-plagiarism">sometimes plagiarized</a>) results are killing the websites they rely on to <a href="https://www.theverge.com/24167865/google-zero-search-crash-housefresh-ai-overviews-traffic-data-audience">generate information</a>. Sure, it’s more inefficient to click through to a high-quality product, but how else do you plan to continue to have people generate high-quality information? No one has solved this problem.</p>

<figure class="wp-block-pullquote"><blockquote><p>Musicians aren’t bogarting creativity — they are people who enjoy making music</p></blockquote></figure>

<p class="has-text-align-none">Sometimes inefficiency is load-bearing. Take, for instance, the stock market. It is only open during certain hours, and only during certain days of the week. That means that during a panic, there is an artificial boundary that gives people time to calm down. This is effective; it’s one of the reasons that individual stocks sometimes undergo a trading halt during periods of hysteria. Now consider crypto, which is open for business 24/7/365: There is no way to pause a panic. One of the reasons the crashes in crypto are so huge and so fast is because there is no breaker to trip and no break in trading to allow traders to regroup. In fact, crypto panics are arguably exacerbated by the fact that many people <em>literally cannot sleep</em> because the market does not close.</p>

<p class="has-text-align-none">There are other ways in which consumer AI is weird. Take the AI music apps, which are predicated on the idea that there are people in the world who <em>want</em> to make music but simply haven’t taken the time to learn how to play an instrument. There are likely very few of those people! Musicians aren’t bogarting creativity —&nbsp;they are people who enjoy making music. The rest of us just enjoy listening, which is an end in itself.</p>

<p class="has-text-align-none">The place where AI music is most useful is for people who want to figure out how to get themselves onto Spotify playlists, accrue streams, and make money —&nbsp;<a href="https://www.theverge.com/2024/11/14/24294995/spotify-ai-fake-albums-scam-distributors-metadata">that is to say, scammers</a>. Similarly, the self-publishing market is rampant with AI slop, not because people are desperately trying to express themselves, but because it is easy to trick other people into buying slop on Amazon. And it’s not just the casual readers who get swindled, as demonstrated by the scandal around <em>Shy Girl</em>, the <a href="https://www.nytimes.com/2026/03/19/books/shy-girl-book-ai.html">now-withdrawn novel that fooled Hachette</a>. The end result for most people is that these <a href="https://www.youtube.com/watch?v=GbeKTa5xhZo">AI tools make it harder for them to access art made by other people</a>. And the end result for artists, of course, is that it’s harder to make a living.</p>

<figure class="wp-block-pullquote"><blockquote><p>Did Mark Zuckerberg’s Meta utopia ever develop legs?</p></blockquote></figure>

<p class="has-text-align-none">How is it that all these wunderkinds trying to build the next product to take over the world haven’t thought about this? I think the answer is simple. They do not have much in common with normal people, and haven’t thought much about what normal people’s lives are like, or what normal people value. What they have been doing instead is getting high on their own supply —&nbsp;listening to VC podcasts, freaking themselves out about whether they’ll be able to keep up with AI agents, and otherwise getting increasingly more detached from reality.</p>

<p class="has-text-align-none">I suspect this is how we wound up with NFTs, the metaverse, and the clunky VR/AR headsets. These are things that appeal to a very narrow set of people who are overrepresented in the VC and wannabe-tech-entrepreneur spaces. The Silicon Valley hype cycle worked overtime for those things, and I think we all know how this turned out. When was the last time <em>you </em>heard about a Bored Ape, or a Crypto Kitty, or any of the other novelties that briefly swept the nation? Did those novelties translate into a real, durable income stream for artists, musicians, and other creators, as we were promised? When was the last time you saw someone wearing Apple’s headset? Did Mark Zuckerberg’s <a href="https://www.theverge.com/tech/897396/meta-vr-horizon-worlds-metaverse-andrew-bosworth">Meta utopia ever develop legs</a>?</p>

<p class="has-text-align-none">Look, we all had <a href="https://www.businessinsider.com/marc-andreessen-zero-introspection-debate-2026-3">a bit of fun at Marc Andreessen’s expense</a> about his lack of introspection —&nbsp;but this is precisely the reason Silicon Valley keeps trying to force futures on consumers that they emphatically don’t want. A VC who is incapable of self-reflection will never notice that his bets on the future of consumerism are failing in exactly the same way every time. That VC hasn’t noticed, and indeed can’t notice, that his experience isn’t representative of what the ordinary person wants or needs.</p>

<figure class="wp-block-pullquote"><blockquote><p>“They come out much more at peace, but then they tend to quit their companies.”</p></blockquote></figure>

<p class="has-text-align-none">Actually, while I’m picking on Andreessen, I want to point to <a href="https://youtu.be/qBVe3M2g_SA?si=xGWA3K0Kk94vVU0U&amp;t=205">a bit of that interview that didn’t go viral</a>. It occurs right after the fatal introspection quote, but I think it gets to the real rot at the heart of Silicon Valley’s current culture. In it, Andreessen mentions psychedelics, saying he was discussing them with podcaster Andrew Huberman. “I was describing this phenomenon we see in Silicon Valley, where there are these guys who get under pressure, and they feel anxious or whatever, and someone tells them about psychedelics, and they try it,” Andreessen says. “And they kind of come out the other end as a changed person. They come out much more at peace, but then they tend to quit their companies.”</p>

<p class="has-text-align-none">In Andreessen’s telling, Huberman suggests that these people may be happier, and better off. And Andreessen says, “Yeah, but their company is failing.”</p>

<p class="has-text-align-none">The hubristic entrepreneurs (and the VCs who need them) are a relatively small slice of the population. The majority of us would much rather be happy than try to found a company that takes over the world —&nbsp;sacrificing the majority of our waking hours, our hobbies, and likely many of our relationships in the process. It may be the case that the real way to shape the future isn’t to dictate it to consumers. It is simpler just to give people things they actually want.</p>
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					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Elon Musk is about to be a very busy boy!]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/906027/elon-musk-lawsuit-ipo-spacex-tesla" />
			<id>https://www.theverge.com/?p=906027</id>
			<updated>2026-04-02T14:53:38-04:00</updated>
			<published>2026-04-02T14:15:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Electric Cars" /><category scheme="https://www.theverge.com" term="Elon Musk" /><category scheme="https://www.theverge.com" term="Law" /><category scheme="https://www.theverge.com" term="OpenAI" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Tesla" /><category scheme="https://www.theverge.com" term="Transportation" /><category scheme="https://www.theverge.com" term="xAI" />
							<summary type="html"><![CDATA[To be honest, I thought Elon Musk would confidentially file for SpaceX’s IPO on the 20th of this month, rather than the 1st. But maybe that just means he’s moved on to other numbers, and we should all mark our calendars for June 7th as an IPO date just in case. Based on the April [&#8230;]]]></summary>
			
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<p class="has-text-align-none">To be honest, I thought Elon Musk would confidentially file for SpaceX’s IPO on the 20th of this month, rather than the 1st. But maybe that just means he’s moved on to other numbers, and we should all <a href="https://en.wikipedia.org/wiki/6-7_meme">mark our calendars for June 7th</a> as an IPO date just in case.</p>

<p class="has-text-align-none">Based on the April 1st filing, and the general length of an SEC review before the S-1 document becomes public, the earliest I am expecting a SpaceX IPO is June. (At least, assuming there is still anyone left at the SEC who wants to do their job instead of just glance at the first page of the filing, say, “Seems fine!” and then go out for a smoke break.) Of course, <a href="https://www.reuters.com/business/finance/filing-first-trade-inside-us-ipo-process-2026-04-01/">this process could take longer</a> — for instance, WeWork filed for an IPO in <a href="https://www.cnbc.com/2019/04/29/the-we-company-formerly-known-as-wework-files-confidentially-for-ipo.html">April 2019</a>, and its S-1 was <a href="https://www.theverge.com/2019/8/15/20806366/we-company-wework-ipo-adam-neumann">released in August for us all to laugh at</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>We all deserve a break from this guy, but we aren’t going to get one</p></blockquote></figure>

<p class="has-text-align-none">Elon Musk is going to be busy! Frankly, after the DOGE bullshit last year, we all deserve a break from this guy, but we aren’t going to get one. There are assorted Tesla announcements to expect, a trial where Musk will grandstand about Sam Altman and OpenAI, and then, of course, the S-1. Will those events occur in that order? I sure fucking hope so or else I may collapse from exhaustion.</p>

<p class="has-text-align-none">Tesla, which has <a href="https://www.theverge.com/transportation/870332/tesla-throws-in-the-towel-on-car-sales">decided it doesn’t like being a car company anymore</a>, has set a deadline of April to start production on its Cybercabs. The <a href="https://www.statesman.com/business/technology/article/tesla-cybercab-sxsw-22075456.php">design that the <em>Austin American-Statesman</em> saw at South by Southwest</a> didn’t have a steering wheel, pedals, or a rear window. <a href="https://www.theverge.com/transportation/900559/robotaxi-two-seater-tesla-lucid-drag-cost">It is a two-seater</a>, because why would you ever go anywhere with your friends? Elon Musk doesn’t have any and neither should you.</p>

<p class="has-text-align-none">As you might expect, there are some problems with the Cybercab program. First of all, people keep leaving Tesla. Mark Lupkey, who was the manufacturing guy for the Cybercab at Giga Texas, has departed —&nbsp;<a href="https://electrek.co/2026/03/30/tesla-cybercab-assembly-leader-mark-lupkey-leaves/">the third senior Cybercab leader to ankle the joint</a>, after Victor Nechita, who was the program manager, and Thomas Dmytryk, who built the ridehailing backbone. The <a href="https://finance.yahoo.com/markets/stocks/articles/tesla-loses-two-more-leaders-172334078.html?fr=sycsrp_catchall">talent drain from Tesla over the last two years</a> has been substantial.</p>

<p class="has-text-align-none">That’s just the personnel. The robotaxi service itself is not doing so hot either! While I have been promised by various dorks that autonomous driving will be safer than human driving, this robotaxi program doesn’t seem to be. <em>Electrek</em> has been <a href="https://electrek.co/2026/02/17/tesla-robotaxi-adds-5-more-crashes-austin-month-4x-worse-than-humans/">keeping an eye on the crashes</a>, and it turns out that as of February, humans are four times safer than Tesla’s autonomous vehicles. Compared to Waymo, which looks like it may actually be safer than people, this is atrocious.</p>

<figure class="wp-block-pullquote"><blockquote><p>The next-gen Roadster may be revealed later this month, or never</p></blockquote></figure>

<p class="has-text-align-none">We also may or may not hear from Optimus, Tesla’s crack at the <a href="https://www.washingtonpost.com/technology/2026/03/27/musk-optimus-robot-physical-ai/">now-buzzy “physical AI,”</a> formerly known as robots. We were <em>supposed</em> to hear about Optimus in the first quarter of this year, but can you believe it, <a href="https://x.com/elonmusk/status/2038890797760934115">that got delayed</a>. I suppose it has improved over “<a href="https://www.theverge.com/2021/8/20/22633958/tesla-bot-elon-musk-ai-day">guy in a robot costume</a>,” but I’m not convinced it’s ready for primetime, not least because I am old enough to remember when Musk wanted an “<a href="https://www.businessinsider.com/elon-musk-revives-his-alien-dreadnought-factory-dream-for-batteries-2020-9">alien dreadnought</a>” manufacturing Teslas, which wound up as <a href="https://www.wired.com/story/elon-musk-tesla-life-inside-gigafactory/">an expensive failure</a> that fucked up the schedule for the Model 3. (Many Model 3s were built instead in a tent in the Tesla Fremont factory parking lot.) I get that Silicon Valley hates human workers but the fact is that we are <a href="https://www.theverge.com/2023/3/23/23651976/ai-money-investment-vc-hype">largely cheaper</a> than our competition.&nbsp;</p>

<p class="has-text-align-none">Finally, there’s the next-gen Roadster, which was supposed to be <a href="https://www.theverge.com/transportation/816120/tesla-roadster-demo-coming-next-april-musk-says">demoed on April 1st</a> —&nbsp;but it also got mysteriously delayed. It may be revealed later this month, or never. It was <a href="https://www.theverge.com/2017/11/17/16669024/tesla-roadster-2017-fastest-car-world">originally supposed to start production in 2020</a>. Sure, production delays are kind of the norm for Tesla, but six years is egregious.</p>

<p class="has-text-align-none">How <em>is </em>Tesla, the publicly traded company Musk already has? <a href="https://www.theverge.com/transportation/869603/tesla-q4-2025-earnings-revenue-profit-musk-robotaxis">In decline</a>, it seems. Its lineup is aging, the <a href="https://www.cbsnews.com/news/tesla-cybertruck-sales-elon-musk/">Cybertruck is a failure</a>, and Musk’s far-right political activity <a href="https://www.theverge.com/news/635249/tesla-takedown-protest-stock-elon-musk-future">has alienated a wide swath of car buyers</a>. Its misleadingly named Full Self-Driving <a href="https://www.theverge.com/transportation/897303/tesla-full-self-driving-nhtsa-probe-march-2026">may be in danger of a recall</a>. At least things are looking up for Tesla’s energy business, <a href="https://techcrunch.com/2026/03/12/tesla-becomes-a-utility-in-the-uk-setting-up-showdown-with-octopus-energy/">which will be a utility in the UK</a> and seems to be planning <a href="https://www.reuters.com/sustainability/climate-energy/tesla-plans-india-push-into-energy-storage-it-expands-beyond-cars-job-ad-shows-2026-03-20/">an expansion into India</a>.</p>

<p class="has-text-align-none">Anyway, I suppose we now have to discuss <em>Musk v. Altman</em>, which is scheduled for a jury trial beginning on April 27th. Musk, you may recall, cofounded research nonprofit OpenAI alongside Sam Altman and others in the halcyon days of the 2010s, when he was <a href="https://www.youtube.com/watch?v=2KK_kzrJPS8">running around telling us we were living in a simulation</a> and doing <a href="https://www.youtube.com/watch?v=KGR5HP3KSBk">cameos on <em>The Big Bang Theory</em></a>. Altman and Musk were even friends at the time, if <a href="https://www.wired.com/2016/04/openai-elon-musk-sam-altman-plan-to-set-artificial-intelligence-free/">contemporaneous <em>Wired</em> reporting is to be believed</a>. Both of them had been yelling about the danger of Skynet before they decided they would save us all from Skynet by simply building it themselves.</p>

<figure class="wp-block-pullquote"><blockquote><p>Musk is notably vicious, and OpenAI’s lawyers are notably nasty</p></blockquote></figure>

<p class="has-text-align-none">The problem with a company founded by two power-hungry monsters is that there can be only one king. By 2017, even <a href="https://openai.com/index/elon-musk-wanted-an-openai-for-profit/#summer-2017-we-and-elon-agreed-that-a-for-profit-was-the-next-step-for-openai-to-advance-the-mission">Musk had agreed OpenAI needed a for-profit arm</a> to raise the money the organization needed. Musk left in a huff because he wasn’t going to be the CEO, and he cut off the cash that he’d promised the nonprofit-slash-startup. This left OpenAI in the lurch —&nbsp;ultimately leading to its deal with Microsoft.</p>

<p class="has-text-align-none"><a href="https://www.theverge.com/2024/3/1/24087937/elon-musk-suing-openai-nightmare-1l-contracts-exam">Musk says OpenAI has betrayed its vision or whatever</a> by going for-profit. OpenAI thinks <a href="https://www.theverge.com/2024/3/5/24091773/openai-response-elon-musk-breach-of-contract-lawsuit">Musk is trying to eliminate competition</a> for xAI, the rival company he founded after flouncing off. xAI was later bought by SpaceX and will now be going public soon, so one amusing thing about this trial’s timing is that anything it reveals about xAI may affect the IPO following on its heels.</p>

<p class="has-text-align-none">It’s <a href="https://www.theverge.com/column/863319/highlights-musk-v-altman-openai">all very messy</a> and likely to get messier, since Musk is <a href="https://www.theverge.com/2023/10/1/23895069/walter-isaacson-biography-musk-review">notably vicious</a>, and <a href="https://www.theatlantic.com/technology/2025/11/openai-lawsuit-subpoenas/684861/">OpenAI’s lawyers are notably nasty</a>. Recently, there was <a href="https://www.courtlistener.com/docket/69013420/454/1/musk-v-altman/">a fun filing on the docket</a> that suggested what we were liable to get in the case: Musk’s lawyers wanted his recreational drug use and <a href="https://www.techdirt.com/2026/03/31/weeks-after-denouncing-government-censorship-on-rogan-zuckerberg-texted-elon-musk-offering-to-take-down-content-for-doge/">ties to the Trump administration excluded</a> from the trial. What’s even more fun is the piece of deposition attached, in which Musk is <a href="https://bsky.app/profile/lopatto.bsky.social/post/3mi2rqceaoc2u">asked if he knows what “rhino ket” is</a> and whether he attended Burning Man 2017. Among <a href="https://storage.courtlistener.com/recap/gov.uscourts.cand.433688/gov.uscourts.cand.433688.455.1.pdf">other contentious issues</a>: whether Musk’s baby mama Shivon Zilis’ romantic relationship with Musk can be mentioned in the trial — since she was also an OpenAI board member during the relationship, OpenAI alleges. Zilis, originally a plaintiff in the case, is the mother of four of <a href="https://www.wsj.com/politics/elon-musk-children-mothers-ashley-st-clair-grimes-dc7ba05c">Musk’s known children</a>. The judge has not yet ruled on this particular mess.</p>

<p class="has-text-align-none">In the meantime, SpaceX will <a href="https://www.spacex.com/launches">continue launching rockets</a>. Bringing down the cost of space apparently hasn’t made people want to go more often, as SpaceX’s biggest customer appears to be SpaceX, and the <a href="https://www.theverge.com/tech/887899/spacex-ipo-risks-ai">Starlink internet service is what’s actually keeping the company afloat</a>. Perhaps we will see some movement on the various investigations and lawsuits around <a href="https://www.theverge.com/ai-artificial-intelligence/867874/stripe-visa-mastercard-amex-csam-grok">xAI’s bespoke child sexual abuse material generator</a>, Grok. Maybe Musk will say goofy stuff about putting AI data centers in space, I don’t know.</p>

<p class="has-text-align-none">What I do know is that we are about to enter another heavy season of Elon Elonning, but this time there’s less goodwill for him than ever. I don’t think the SpaceX IPO will totally flop, but weirder things have happened! I for one am <a href="https://www.theverge.com/tech/887899/spacex-ipo-risks-ai">looking forward to the S-1</a>. In the meantime, I will simply remind you that the gray market drug of choice for most productivity nutjobs isn’t ketamine. Do with that information what you will.</p>
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									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Marc Andreessen is a philosophical zombie]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tldr/897566/marc-andreessen-is-a-philosophical-zombie" />
			<id>https://www.theverge.com/?p=897566</id>
			<updated>2026-03-19T16:07:54-04:00</updated>
			<published>2026-03-19T16:07:54-04:00</published>
			<category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Science" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="TL;DR" />
							<summary type="html"><![CDATA[I admit, this is an innovation I did not see coming: Silicon Valley has invented the philosophical zombie from the classic thought experiment “lol how crazy would it be if there were a philosophical zombie.” Until recently, the philosophical zombie was a concept closely associated with Australian philosopher David Chalmers, who defines it as “someone [&#8230;]]]></summary>
			
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<figure>

<img alt="A photo of Marc Andreessen’s head opened up, with nothing inside." data-caption="What inner life? | ﻿Image: Cath Virginia / The Verge, Getty Images" data-portal-copyright="﻿Image: Cath Virginia / The Verge, Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/03/268412_Marc_Andreessen_is_a_philosophical_zombie_CVirginia2.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	What inner life? | ﻿Image: Cath Virginia / The Verge, Getty Images	</figcaption>
</figure>
<p class="has-drop-cap has-text-align-none">I admit, this is an innovation I did not see coming: Silicon Valley has invented the <a href="https://plato.stanford.edu/entries/zombies/">philosophical zombie</a> from the classic thought experiment “lol how crazy would it be if there were a philosophical zombie.”</p>

<p class="has-text-align-none">Until recently, the philosophical zombie was a concept <a href="https://personal.lse.ac.uk/ROBERT49/teaching/ph103/pdf/Chalmers_The_Conscious_Mind.pdf">closely associated with Australian philosopher David Chalmers</a>, who defines it as “someone or something physically identical to me (or to any other conscious being), but lacking conscious experiences altogether.” Chalmers’ zombie twin is identical to him functionally and psychologically —&nbsp;except that he feels nothing. This is different from a Hollywood zombie, which has “little capacity for introspection and lack[s] a refined ability to voluntarily control behavior.”</p>

<p class="has-text-align-none">So okay, Marc Andreessen is even shallower than our standard philosophical zombie —&nbsp;but still, I think there is a strong case he should be hunted and captured by the Stanford philosophy department so they can try their thought experiments out on him in real life. (Humanely, of course.) But I think for all of us who are interested in consciousness, Andreessen is certainly a specimen.</p>
<div class="youtube-embed"><iframe title="Marc Andreessen: The World Is More Malleable Than You Think" src="https://www.youtube.com/embed/qBVe3M2g_SA?rel=0&#038;start=56" allowfullscreen allow="accelerometer *; clipboard-write *; encrypted-media *; gyroscope *; picture-in-picture *; web-share *;"></iframe></div>
<p class="has-text-align-none">For those of you who are not as internet-poisoned as I am, let me recap: A <a href="https://youtu.be/qBVe3M2g_SA?si=a53cDLqH1sd145vr&amp;t=56">video of Andreessen</a> on David Senra’s podcast — podcasts being <a href="https://www.theverge.com/2024/7/24/24204706/marc-andreessen-ben-horowitz-a16z-trump-donations">Andreessen’s favored form of self-disclosure</a> — has been making the rounds. In the video, Andreessen cheerfully says he has “zero” levels of introspection —&nbsp;“as little as possible.” This is a positive for entrepreneurs, we are told. “And you know, if you go back 400 years ago, it never would have occurred to anybody to be introspective,” Andreessen says, thus setting himself up for thunderous dunking.&nbsp;</p>

<p class="has-text-align-none">I could point to the many ancient traditions of introspection (set out variously in the Bhagavad Gita, Plato, or <a href="https://www.biblegateway.com/passage/?search=Psalm+119&amp;version=NIV">Psalm 119</a>) or note that his comments about a “guilt-based whammy” that showed up from Vienna in the 1910s and 1920s due to the work of Sigmund Freud suggests Andreessen has never met a Catholic (and is unfamiliar with major Catholic thought, to boot, as introspection is <a href="https://en.wikipedia.org/wiki/Confessions_(Augustine)">famously important to St. Augustine</a>). I could post a portrait of René “I think therefore I am” Descartes. I could note that this is such a significant misunderstanding of Freud as to suggest Andreessen is totally unfamiliar with him. I am not going to do any of those things, as I believe they have already been done by internet commenters.</p>

<p class="has-text-align-none">I am instead going to try to set out what happened, which is that I believe Andreessen read a book.</p>

<figure class="wp-block-pullquote"><blockquote><p> Chater proposes that the idea of an “inner self” is an illusion</p></blockquote></figure>

<p class="has-text-align-none">The reference Andreessen gives is <em>The Mind Is Flat</em> by Nick Chater, a professor of behavioral science at the Warwick Business School at the University of Warwick in the UK. Now personally I am somewhat skeptical of how serious a book is when its title <a href="https://www.nypress.com/news/flathead-OVNP1020050426304269992">references Thomas Friedman</a>, especially when it is being written by some business school guy. Still, the basic thrust of the book —&nbsp;as far as I can tell — is a polemic against the notion of an unconscious mind.</p>

<p class="has-text-align-none">I have not read the book, so I am relying on <a href="https://www.youtube.com/watch?v=vspX6NaLxdc">a lecture Chater gave at Google</a> and <a href="https://www.susanblackmore.uk/review-of-the-mind-is-flat-the-remarkable-shallowness-of-the-improving-brain/">reviews</a> <a href="https://nautil.us/many-of-our-beliefs-are-unconscious-a-response-to-nick-chater-237157">by</a> <a href="https://tomstafford.substack.com/p/is-the-mind-flat">his peers</a> in order to summarize it; if this seems unfair to Andreessen, I am happy at his request to actually read the book and do this again in much more irritating detail. In Chater’s Google lecture, he begins by providing a series of optical illusions, demonstrating that our vision cannot work the way we believe it works. This is pretty convincing stuff! It turns out perception is very weird. (That noise you just heard was everyone who’s ever taken a philosophy 101 class yell “<a href="https://plato.stanford.edu/entries/qualia/">qualia</a>” in unison. That’s the philosophy word for the “red-ness” of the color red, or the sensation of the smell of napalm in the morning.)&nbsp;</p>

<p class="has-text-align-none">From here, Chater proposes that the idea of an “inner self” is an illusion similar to the illusion we experience when we think we are perceiving more than one color at once. According to Chater, our minds can only do one thing at a time — that is, that we cannot have two thoughts at once, and the idea that we can is an illusion. From there, <a href="https://www.researchgate.net/publication/329946789_The_mind_is_flat_The_remarkable_shallowness_of_the_improvising_brain">he suggests that there are no mental depths</a>, there’s no such thing as <a href="https://www.health.harvard.edu/blog/unconscious-or-subconscious-20100801255">the unconscious</a>, and there’s no organizing principle to anyone’s mind. To the degree that an “inner self” exists, <a href="https://youtu.be/vspX6NaLxdc?si=XY9rJkUlEL_YG8m8&amp;t=1699">it is a kind of “tradition,”</a> the cumulative effect of your accumulated experiences, just as a canyon exists because of the cumulative effects of water.</p>

<p class="has-text-align-none">There are some obvious problems with this polemic, which are highlighted in the reviews. The key thing I think Andreessen is badly summarizing is <a href="https://youtu.be/vspX6NaLxdc?si=WnHJE861KsOlPaF4&amp;t=44">an assertion Chater makes in his Google speech</a>: The idea that the conscious mind is like the part of the iceberg above water and that there is a mysterious part of the self below the water is attributable to Sigmund Freud, and this conception of the “larger self” is wrong. There’s only the part above the water.</p>

<figure class="wp-block-pullquote"><blockquote><p>“TLDR There is no inner self, you&#8217;re chasing an imaginary concept, the end.”</p></blockquote></figure>

<p class="has-text-align-none">Here’s <a href="https://x.com/pmarca/status/2033682638771482636">Andreessen’s read of Chater</a>: “TLDR There is no inner self, you&#8217;re chasing an imaginary concept, the end.”</p>

<p class="has-text-align-none">In one of several follow-up posts to the interview on X, Andreessen went on to <a href="https://x.com/pmarca/status/2033683166905700676">something even sillier</a>: “You&#8217;re a 15 second sliding context window with the working memory of a goldfish, your long term memory is mainly fake, and it&#8217;s a minor miracle you can get out of the door in the morning.” It’s impressive in the sense that almost every single part of Andreessen’s sentence is wrong.</p>

<p class="has-text-align-none">I will begin, pedantically, with the goldfish, which actually have <a href="https://www.livescience.com/goldfish-memory.html">impressive memories</a>, like, years’ worth. But let’s get to the point: “your long term memory is mainly fake.” I suppose this depends on what Andreessen means, doesn’t it? On the one hand, any cradle Catholic can do an “Our Father” or a “Hail Mary” basically at will for the rest of their lives, even if they haven’t set foot in a church in 20 years. There are other indications that memory is in some sense “real”: <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC4511859/">Small studies</a> suggest that <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC2914108/">musical memory</a> is <a href="https://pubmed.ncbi.nlm.nih.gov/15607545/">preserved</a> even in <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC6525150/">Alzheimer’s patients</a>. Finally, most of us have attended a play, where actors recite speeches at will. How this is possible if long-term memory is fake, I don’t know. On the other hand, long-term memory can be <a href="https://www.psychologytoday.com/us/blog/hidden-motives/201203/unreliable-memory"><em>unreliable</em></a> — it is possible even to <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC10567586/">implant false memories</a>. But <em>“mainly fake”</em>? I hope Andreessen stretched before that reach.</p>

<p class="has-text-align-none">Obviously, if you’re a “sliding 15 second context window” it would be impossible to have consistent thoughts, preferences, and beliefs over time — <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC5144810/">except</a>, <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC5742083/">of course</a>, <a href="https://psycnet.apa.org/record/2025-11398-001">people do</a>. Personality may <a href="https://pubmed.ncbi.nlm.nih.gov/21859226/">change</a> over <a href="https://pubmed.ncbi.nlm.nih.gov/15709943/">a lifetime</a>, but there is <a href="https://www.tandfonline.com/doi/abs/10.1207/S15327965PLI1202_01">often stability</a> for <a href="https://pubmed.ncbi.nlm.nih.gov/15709943/">years or decades</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>At this point, a reader may be tempted to point out to me that Andreessen is trolling</p></blockquote></figure>

<p class="has-text-align-none">As for “it’s a minor miracle you can get out of bed in the morning,” well, I have to assume this reflects Andreessen’s own mornings. (Also, any parent of a toddler can tell you that gross motor skills are independent of sophisticated thought, memory, or introspection.) This is the only part of the sentence I can’t really argue with — I personally don’t have much trouble getting out of bed, but I can’t speak for him.</p>

<p class="has-text-align-none">At this point, a reader <a href="https://x.com/pmarca/status/2033937776182448213">may be tempted</a> to <a href="https://x.com/pmarca/status/2034076647151071496">point out to me</a> that <a href="https://x.com/pmarca/status/2034047908044280285">Andreessen is trolling</a>, and I am <a href="https://x.com/pmarca/status/2033996232574800201">taking him</a> far <a href="https://x.com/pmarca/status/2033989507213889615">too seriously</a>. But unfortunately for everyone, Andreessen has waded into an interest of mine, making it intersect with my actual job. He has been posting about his theory of mind for days now — a repeated behavior, which suggests it must be important to him.&nbsp;</p>

<p class="has-text-align-none">So since we’re doing quasi-scientific polemics, I’ll throw my own in. I’ve been wondering for a while why many of our Silicon Valley overlords behave like they’ve <a href="https://www.mayoclinic.org/diseases-conditions/chronic-traumatic-encephalopathy/symptoms-causes/syc-20370921">repeatedly sustained traumatic brain injuries</a>, and I think I’ve come to a conclusion. One thing we know from <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC3191246/">a variety</a> of <a href="https://pubmed.ncbi.nlm.nih.gov/28322422/">studies</a> is that cognition <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC11881919/">doesn’t decline</a> for <a href="https://pubmed.ncbi.nlm.nih.gov/22149165/">some people</a> as they age — <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC7812665/">those people</a> tend to have <a href="https://pubmed.ncbi.nlm.nih.gov/23079557/">stayed in school longer</a> and tend to have greater <a href="https://pubmed.ncbi.nlm.nih.gov/33554903/">intellectual engagement</a>. We also know that if you don’t use <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/lang.12665">one of your languages</a> on a regular basis, you <a href="https://pubmed.ncbi.nlm.nih.gov/28424634/">start to forget it</a> — <a href="https://pubmed.ncbi.nlm.nih.gov/30177893/">even if it was your first language</a>. Writing by <a href="https://www.scientificamerican.com/article/why-writing-by-hand-is-better-for-memory-and-learning/">hand is better for memory</a>; predictive text leads to <a href="https://dl.acm.org/doi/abs/10.1145/3377325.3377523">boring writing</a>.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>So since we’re doing quasi-scientific polemics, I’ll throw my own in</p></blockquote></figure>

<p class="has-text-align-none">I am now going to extrapolate from this: If you stop using some skill, mental or physical, you lose it and its benefits. We’ve already <a href="https://arxiv.org/pdf/2506.08872v1">seen signs of this</a> with heavy users of AI, along with <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC12712562/">AI psychosis</a>, which may occur because chatbots are <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC12805049/">too sycophantic</a>. (I have pitched my editors on attempting to give myself AI psychosis, but they seem to think I am making a joke.) So I’m going to suggest that overreliance on AI is bad for you — which suggests a corollary: Whatever is happening to normal people as a result of AI overreliance <em>has already happened to the ultra-wealthy.</em></p>

<p class="has-text-align-none">Consider: I spend a lot of time standing in line (at the supermarket, at the post office, at a bakery, at a coffee shop). While I’m standing there, I can either be annoyed at how long it’s taking me to get to the front of the line or do something else: goof around on social media or retreat into my mind palace, where I might daydream, review events from earlier in the day, or think about something interesting, like <a href="https://archive.org/details/beyondfreedomdig0000skin/mode/2up">whether it matters</a> if <a href="https://patriciachurchland.com/wp-content/uploads/2020/05/2006-Do-We-Have-Free-Will.pdf">I don’t have free will</a>. I have a lot of opportunities to hang out in my mind palace, because I do a lot of mundane chores, like grocery shopping, laundry, and picking up after myself.</p>

<p class="has-text-align-none">The ultra-wealthy don’t have to do any of this. They pay people to do it for them — cooking, cleaning, shopping, you name it. There are no periods of the day where they are forced to figure out how to entertain themselves in the face of repetitive chores. If you don’t use it, you lose it — so maybe a lot of them lose introspection. In fact, they can offload any cognitive activity they don’t enjoy! That’s what subordinates are for, isn’t it? And whatever gets consistently offloaded, they lose.</p>

<p class="has-text-align-none">But, worse, they don’t notice they’re losing any skills because they are constantly surrounded by people on their payroll, or people who want something from them. People who are, you know, <em>aggressively financially motivated to flatter them and agree with them. </em>If that yes-man tendency in chatbots is what’s driving AI psychosis or social skill atrophy in normal people, then the same thing has <a href="https://www.apa.org/news/podcasts/speaking-of-psychology/wealth-empathy">already happened</a> to the very rich.</p>

<figure class="wp-block-pullquote"><blockquote><p>We’ve got ourselves a philosophical zombie right here, and possibly a methodology for creating them at will</p></blockquote></figure>

<p class="has-text-align-none">So I am inclined to take Andreessen at his word. He’s having a little meltdown, as he sometimes does, first of all because people are making fun of him online — a thing he doesn’t encounter on a regular basis outside social media due to the yes-man phenomenon of wealth, and which is for this reason <em>much </em>more upsetting for him than it would be to a normal person. He has wholesale adopted Chater’s thinking, or at least a version of it, and it probably felt revelatory and correct to him because his own mind is shallow. (He doesn’t strike me as the kind of guy who’s thought about <a href="https://iep.utm.edu/hard-problem-of-conciousness/">the hard problem of consciousness</a> much, you know?) I’m not convinced he knows he was reading a polemic.</p>

<p class="has-text-align-none">But second, I also believe him when he says he doesn’t introspect. Because we know he agrees with Chater, we can just use Chater’s definition of thought here, bracketing whatever problems that definition may have. Because introspection under Chater’s definition is just another kind of perception, Andreessen has just functionally told us that he is missing qualia. We’ve got ourselves a philosophical zombie right here, and possibly a methodology for creating them at will<em>.</em> Someone should get on the horn to Australia — Chalmers is going to be <em>so excited</em>.</p>

<p class="has-text-align-none">I am also going to presume that in his posts, Andreessen is describing himself. But obviously there’s some overlap with a thing that Andreessen invests in, which is to say AI — which also has no long-term memory, no actual perception (and no qualia), and no ability to get out of bed. It is possible that Andreessen likes Chater because Chater suggests there is no depth to humans, which means that AI “intelligence” is very close to human intelligence, which means AI can replace humans at their jobs and Andreessen’s investments will make a boatload more money.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>So I decided to ask ChatGPTeessen another question</p></blockquote></figure>

<p class="has-text-align-none">So, <a href="https://www.vanityfair.com/news/story/dario-amodei-anthropic-ai?srsltid=AfmBOoribWwYBosFI0sj2C8p_9erzHVt3xGRailOhInUuXcpvB2trl9-">inspired by <em>Vanity Fair</em></a>, I thought it might be fun to interview Andreessen via ChatGPT —&nbsp;an a16z investment — since he seems to be implying that humans aren’t much different than AI. (Andreessen’s firm is <a href="https://x.ai/news/series-b">also invested in xAI,</a> but I think asking <a href="https://www.theverge.com/x-ai/707442/grok-antisemitic-hitler-elon-musk-opinion-reprogrammed">Mecha Hitler</a> to impersonate Andreessen is probably too rude, even for me.) I asked ChatGPT, <a href="https://chatgpt.com/s/t_69bb3a4ada9c81918ed775d9c36fa65c">roleplaying as Andreessen</a>, why he didn’t introspect; it told me “I wouldn’t actually say that,” before going on at length about why people who want to be entrepreneurs should use it but also “validate everything against external feedback.” But hey, if improvising nonsense is all Andreessen does, this is as much of an answer as the real guy can give us.</p>

<p class="has-text-align-none">So I decided to ask ChatGPTeessen another question: What did Andreessen mean when he wrote “Introspection = neuroticism x narcissism x thumbsucking”? <a href="https://chatgpt.com/s/t_69bb3a4ada9c81918ed775d9c36fa65c">Here’s the answer</a>:</p>

<div class="wp-block-vox-media-highlight vox-media-highlight">
<h2 class="wp-block-heading"></h2>



<p class="has-text-align-none">What I meant is: most of what people call “introspection” is not some high-fidelity path to truth—it’s a distortion loop.</p>



<p class="has-text-align-none">Break it down.</p>



<ul class="wp-block-list">
<li><strong>Neuroticism</strong>: you’re obsessing over your own thoughts, replaying decisions, second-guessing. That’s not clarity—that’s anxiety masquerading as insight.</li>



<li><strong>Narcissism</strong>: you’re assuming your internal state is uniquely important, that your feelings are the central object worth analyzing. In reality, the world doesn’t care. Markets don’t care. Users don’t care.</li>



<li><strong>Thumbsucking</strong>: you’re not acting. You’re sitting there, self-soothing with analysis instead of making decisions and moving forward.</li>
</ul>



<p class="has-text-align-none">So the equation is deliberately provocative, but the point is practical: <strong>introspection is often a trap</strong>.</p>



<p class="has-text-align-none">In startups, this kills you. Founders sit around debating their own motivations, their fears, their identity—meanwhile someone else is shipping product, talking to customers, and taking the market.</p>



<p class="has-text-align-none">The bias should be toward <strong>external reality and action</strong>:</p>



<ul class="wp-block-list">
<li>What do users do, not what do you feel</li>



<li>What works, not what you think should work</li>



<li>What ships, not what you’ve analyzed</li>
</ul>



<p class="has-text-align-none">Use introspection sparingly, like a diagnostic tool. But if it becomes your default mode, you’re just spinning in place.</p>
</div>

<p class="has-text-align-none"></p>

<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"></blockquote>

<p class="has-text-align-none">This answer, much like the first one, doesn’t sound <em>stylistically</em> like Andreessen: It’s not succinct or tendentious enough. On the other hand, it’s an improvising 15-second context window with no introspection telling me what Marc Andreessen thinks, which is what Andreessen also claims to be. And the gist <em>does</em> sound like his thinking, doesn’t it?&nbsp;If there’s no “inner self,” what’s the difference?</p>

<p class="has-text-align-none">So I guess we’ve all learned something important: Marc Andreessen, a philosophical zombie, can be easily replaced with AI. I bet that’s great news for a16z’s investors, since it means Andreessen no longer must be paid —&nbsp;and it frees him up to be the subject of some philosophy experiments. (Well, unless the neuroscientists get to him first, I guess.) I look forward to finding out what it’s like to be a philosophical zombie — or maybe that <a href="https://philosophy.uconn.edu/wp-content/uploads/sites/365/2020/03/Nagel-What-is-it-like-to-be-a-bat.pdf">it’s not like anything</a> to be a philosophical zombie.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Oh, you think the government will regulate Kalshi and Polymarket? Wanna bet?]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/business/896517/kalshi-cftc-insider-trading-polymarket" />
			<id>https://www.theverge.com/?p=896517</id>
			<updated>2026-03-18T10:20:24-04:00</updated>
			<published>2026-03-18T10:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Crypto" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[The Commodity Futures Trading Commission has a problem: It’s not very good at policing insider trading. And insider trading has become a pressing concern for prediction markets. Even Kalshi’s recently publicized fines for insider trading —&#160;levied against a politician and an employee of YouTube influencer MrBeast — were effectively self-policing. The exchange says it’s opened [&#8230;]]]></summary>
			
							<content type="html">
											<![CDATA[

						
<figure>

<img alt="A large ear is featured among graphs and a terminal" data-caption="Who’s keeping an ear out for insiders? | Image: Cath Virginia / The Verge, Getty Images" data-portal-copyright="Image: Cath Virginia / The Verge, Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/03/268401_Betting_markets_and_regulators_insider_trading_problem_CVirginia.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	Who’s keeping an ear out for insiders? | Image: Cath Virginia / The Verge, Getty Images	</figcaption>
</figure>
<p class="has-drop-cap has-text-align-none">The Commodity Futures Trading Commission has a problem: It’s not very good at policing insider trading. And insider trading has become a pressing concern for prediction markets.</p>

<p class="has-text-align-none">Even Kalshi’s recently publicized <a href="https://www.theverge.com/policy/884570/kalshi-insider-trading-mrbeast-fines">fines for insider trading</a> —&nbsp;levied against a politician and an employee of YouTube influencer MrBeast — were effectively self-policing. The exchange says it’s opened 200 investigations, frozen some accounts, and had a dozen of its investigations turn into active cases.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>“The volume of suspicious activity we see is significantly higher than what any platform publicly acknowledges.”</p></blockquote></figure>

<p class="has-text-align-none">In response to Kalshi’s announcement, the CFTC put out a statement that effectively read as a sad trombone noise about <a href="https://www.cftc.gov/PressRoom/PressReleases/9185-26">its own ability to police insiders</a>: “While Kalshi’s internal enforcement program handled these matters, under the Act, the Commission has full authority to police illegal trading practices,” the statement said. Sure, yeah, the CFTC <em>can </em>police this. But it didn’t. And there’s not a lot of reasons to believe it will.&nbsp;</p>

<p class="has-text-align-none">The CFTC, which had about <a href="https://www.cftc.gov/sites/default/files/CFTC_FY2026_Presidents_Budget.pdf">120 staffers assigned to enforcement</a> as of 2025, oversees not only prediction markets, but agricultural and stock futures, and <a href="https://www.coindesk.com/policy/2026/03/10/u-s-sec-chief-atkins-said-bond-with-sister-agency-cftc-to-include-joint-meetings-exams">part or possibly all of the crypto market</a>. The number of people assigned to enforcement has been shrinking even as the agency’s supervision portfolio has grown — it had 160 full-time employees in 2024, and is <a href="https://www.cftc.gov/sites/default/files/CFTC_FY2026_Presidents_Budget.pdf">requesting a budget for only 114 in 2026</a>.&nbsp;</p>

<p class="has-text-align-none">There are probably other insider trades that are being missed. “The volume of suspicious activity we see is significantly higher than what any platform publicly acknowledges,” says Trevor I. Lasn, who built an information dashboard called <a href="https://0xinsider.com/">0xInsider</a> to track suspicious trades on Kalshi and its primary competitor, Polymarket. “Whether that&#8217;s insiders, sophisticated researchers, or a mix of both, the pattern data is there and it&#8217;s worth examining.”</p>

<p class="has-text-align-none">Prediction markets aren’t the only thing that’s relatively new; the CFTC’s ability to police insider trading is, too. Until the passage of the Dodd-Frank Act of 2010, the only prohibited insider trading was that done by CFTC staffers and those of the exchanges it supervises. In some respects, this makes sense, given the agricultural origins of the futures market — like, who has a fiduciary duty to <em>corn</em>? Using the authority newly granted to it by the Dodd-Frank Act, <a href="https://www.ecfr.gov/current/title-17/chapter-I/part-180/section-180.1">the CFTC came up with a rule</a> modeled on the Securities and Exchange Commission’s insider trading ban.</p>

<figure class="wp-block-pullquote"><blockquote><p>“The intensity of enforcement is way different.”</p></blockquote></figure>

<p class="has-text-align-none">“At least some of the insider trading that we dislike in stocks and bonds is illegal” in commodities markets, including prediction markets, says Andrew Verstein, the faculty co-director of the Lowell Milken Institute for Business Law and Policy at UCLA. “But the intensity of enforcement is way different.”</p>

<p class="has-text-align-none">Because the rule is so new, there have been very few enforcement actions. Two cases, one against <a href="https://www.cftc.gov/PressRoom/PressReleases/7286-15">a gas trader named Arya Motazedi</a> and one against <a href="https://www.cftc.gov/PressRoom/PressReleases/7459-16">oil trader Jon Ruggles</a>, were filed and settled simultaneously. A third case, against <a href="https://www.cftc.gov/PressRoom/PressReleases/8490-22">a natural gas trader named Matthew Clark</a>, alleged Clark told a friend about his employer’s planned trades so that he could trade on this information and share the profits with Clark; Clark pleaded guilty in a related criminal case.</p>

<p class="has-text-align-none">In the absence of a real enforcement mechanism, Kalshi and Polymarket are <a href="https://www.npr.org/2026/03/06/nx-s1-5735893/iran-war-kalshi-polymarket-feud">staking out two very different positions</a>. Kalshi is trying to position itself as a law-abiding, self-policing exchange —&nbsp;even upsetting its user base by <a href="https://www.theverge.com/tech/887210/kalshi-void-bets-khamenei-death">refusing to pay out on the death of Iran’s Ayatollah Ali Khamenei</a>. Kalshi says it’s avoiding violating a <a href="https://www.law.cornell.edu/cfr/text/17/40.11">CFTC rule</a> against listing any contract “that involves, relates to, or references terrorism, assassination, war, gaming, or an activity that is unlawful under any State or Federal law.” That’s the “no assassination markets” rule, which <a href="https://www.bloomberg.com/opinion/newsletters/2026-03-02/war-markets-have-some-bugs?srnd=undefined">the CFTC may or may not be serious about enforcing</a>, who knows.&nbsp;</p>

<p class="has-text-align-none">Polymarket emphatically doesn’t give a shit, and has been merrily listing geopolitical bets, including war contracts, <a href="https://www.bloomberg.com/news/articles/2026-03-07/polymarket-founder-says-war-bets-are-facing-growing-resistance?srnd=phx-technology">to the tune of $425.4 million</a> on the week ending March 1st. Its main market operates offshore, <a href="https://gizmodo.com/best-vpn/polymarket">wink-wink-nudge-nudge</a>, and so I suppose its stance is that the CFTC simply doesn’t regulate it. I say “I suppose,” because Polymarket’s press email —&nbsp;as well as its CEO, Shayne Coplan — didn’t respond to my requests to comment.</p>

<figure class="wp-block-pullquote"><blockquote><p>“If you’re insider trading, you look at prediction markets and think, ‘No one is watching, and if anyone were, no cases have been vigorously contested and no one gets in trouble.’”</p></blockquote></figure>

<p class="has-text-align-none">Stocks and bonds, which operate under the SEC, have a more established track record with insider trading. (Even there, some inside trades likely slip through the cracks —&nbsp;hunting insider traders is something of a Red Queen’s race.) But there are also more people watching. If you attempt to engage in insider trading, your broker is obligated to report you. The exchanges have sophisticated software to detect weird trades, and they are obligated to report you. The Financial Industry Regulatory Authority, an organization that regulates members of the finance industry, monitors trades using software. And, of course, the SEC is watching. “All these layers of people are trying to catch you,” Verstein says. “And they may not, people get away with it a lot. But they are in an environment where they have to hide. And that’s really not true for prediction markets yet.”</p>

<p class="has-text-align-none">The CFTC has never been an aggressive prosecutor of insider trading, Verstein says. And while Kalshi is at least attempting to police itself at the exchange level, there just aren’t as many layers of enforcement. Kalshi spokesperson Elisabeth Diana declined to say how big its enforcement staff was. What’s more, the trade group Kalshi belongs to, the Coalition for Prediction Markets, doesn’t monitor insider trading the way FINRA does.</p>

<p class="has-text-align-none">“If you’re insider trading, you look at prediction markets and think, ‘No one is watching, and if anyone were, no cases have been vigorously contested and no one gets in trouble,’” Verstein says. Besides, if a case does somehow make it to a jury, you can just tell a story that you’re a really diligent researcher. The rules the CFTC operates under look similar to those that the SEC uses, but “in reality, the law is completely open.”</p>

<p class="has-text-align-none">Proponents of betting markets will tell you that <a href="https://www.theverge.com/podcast/889177/prediction-markets-news-gambling-polymarket-kalshi-iran-war-regulation">they surface information</a>, including insider information, and <a href="https://www.forbes.com/sites/aliciapark/2026/01/09/why-prediction-markets-need-insider-trading-according-to-their-godfather/">that’s a good thing</a>. They claim that Kalshi and Polymarket are “information institutions,” <a href="https://www.theverge.com/business/881967/polymarket-kalshi-journalism-sponsorship-ad">just like news organizations</a>, and that <a href="https://mason.gmu.edu/~rhanson/insiderbet.pdf">paying for insider information provides social value</a> by making it public. (And also that <a href="https://www.overcomingbias.com/p/insider-journalism">it’s just <em>so unfair</em></a> that journalists have been pointing out that leaking for reasons other than the public good — such as personal profit — might be a problem.) This is not an uncontested view; several states, including Arizona, which has charged Kalshi with <a href="https://www.reuters.com/world/kalshi-charged-criminally-arizona-operating-illegal-gambling-business-2026-03-17/">operating an illegal gambling business</a>. Those states are contesting the CFTC’s jurisdiction.</p>

<figure class="wp-block-pullquote"><blockquote><p>“If you can trade on when and where bombings happen, you may be tempted to change your bombing target.”</p></blockquote></figure>

<p class="has-text-align-none">Insider trading often comes paired with its “sister sin,” market manipulation, says Verstein. “If you can trade on when and where bombings happen, you may be tempted to change your bombing target,” he says. “There are bad incentives that hide in the shadow of insider trading, so we ban it in areas where we most fear the bad incentives.”</p>

<p class="has-text-align-none">Attempts at market manipulation have already started polluting the internet. A live map tracking the war in Ukraine <a href="https://www.404media.co/unauthorized-edit-to-ukraines-frontline-maps-point-to-polymarkets-war-betting/">showed a fictitious Russian advance</a> for just long enough for a Polymarket bet to resolve. And both Polymarket and Kalshi have given X posters “affiliate badges” — despite <a href="https://www.nytimes.com/athletic/6876922/2025/12/29/kalshi-polymarket-predictive-betting-markets-x-sports-insiders/">a history of those accounts faking reports</a>. As a result of a Polymarket contract, <a href="https://www.timesofisrael.com/gamblers-trying-to-win-a-bet-on-polymarket-are-vowing-to-kill-me-if-i-dont-rewrite-an-iran-missile-story/">a reporter at <em>The Times of Israel</em> has been getting death threats</a> because he refuses to change his reporting about a missile falling in Israel. But there are less aggressive forms of market manipulation, too — <a href="https://rajivsethi.substack.com/p/guessing-games">it’s possible to manipulate the odds</a> with trades, then cash out.</p>

<p class="has-text-align-none">“This field offers even more potential for abuse than insider trading does because you can both insider trade on information that will influence prediction markets, but you can also influence events that influence the prediction markets from an insider&#8217;s position,” said Sen. Adam Schiff of California, who has brought forward a bill to <a href="https://www.schiff.senate.gov/news/press-releases/news-sen-schiff-introduces-legislation-to-explicitly-ban-death-and-war-prediction-contracts/">codify bans on certain prediction market activity</a>, in an interview with <em>The Verge</em>. “So there are going to need to be very similar and perhaps even greater safeguards in place. And there are certain gambling and prediction betting that make no sense.”</p>

<p class="has-text-align-none">Schiff additionally says he doesn’t trust the CFTC chair, Michael Selig. According to Schiff, Selig assured Congress in his confirmation hearing that he’d let courts decide the litigation that came before them, and meet with stakeholders to determine the processes that suit prediction markets. “And he’s done the exact opposite,” Schiff says. “It certainly seems like he has a very strong predisposition that he came into this role with in favor of these prediction betting markets.”</p>

<figure class="wp-block-pullquote"><blockquote><p>“There’s clearly room for new regulation.”</p></blockquote></figure>

<p class="has-text-align-none">Selig’s apparent support isn’t enough for everyone. Polymarket’s <a href="https://www.bloomberg.com/news/articles/2026-03-07/polymarket-founder-says-war-bets-are-facing-growing-resistance">Coplan has complained</a> that “there’s still a lot of resistance to innovation” when it comes to prediction markets. He added, without providing evidence, that he receives emails from “people in the Middle East,” telling him that they decide whether to sleep by a bomb shelter based on Polymarket bets.</p>

<p class="has-text-align-none">It’s not clear whether Coplan’s comment references insider information leaked on Polymarket, or just informed guessing. Israel has <a href="https://www.npr.org/2026/02/12/nx-s1-5712801/polymarket-bets-traders-israel-military">arrested two people for Polymarket bets</a>, saying they used classified information. Insider information from the US government likely has also made it onto Polymarket. For instance, just before the US government snatched Nicolás Maduro, the leader of Venezuela, someone made a bet he’d be out of office, <a href="https://www.wsj.com/world/americas/maduro-polymarket-bet-a2e5d100?gaa_at=eafs&amp;gaa_n=AWEtsqdSE7inMukTf-1CLiOZ7ZTj3LKv-ZOUbVxHNvkOhopaInhcYwqzkNU9UAeFD0U%3D&amp;gaa_ts=695ed05e&amp;gaa_sig=Ht3t8_c7hl6xPoVI8cu_TdettmTa22belJSnfCO8k0pJCWrQQ_7eGn5IQtQabEHj0HfyxyLGq0TTyq7bas-3AA%3D%3D">snaring $400,000 in profit</a>. Someone else made <a href="https://www.npr.org/2026/03/01/nx-s1-5731568/polymarket-trade-iran-supreme-leader-killing">more than half a million dollars</a> with a suspicious bet on the death of Ayatollah Ali Khamenei.</p>

<p class="has-text-align-none">“There’s clearly room for new regulation,” says Cindy Schipani, a professor of business law at the University of Michigan Ross School of Business. In particular, Schipani suggests it should be illegal to trade on information that may convey national security concerns. Even trading on government secrets isn’t “cleanly illegal under any laws I could cite for you, other than maybe being fraud and violating some duties you might have to your office.”</p>

<p class="has-text-align-none">While insider trading does surface insider information, it’s obviously not an unalloyed good, points out Schipani. “Only certain people benefit, and others are harmed,” she says. This matters less in the case of, say, sports betting. When it comes to national security, however, it seems distinctly dangerous.</p>

<figure class="wp-block-pullquote"><blockquote><p>The best possible type of prediction market has traders who are <em>informed</em> without being <em>insiders</em></p></blockquote></figure>

<p class="has-text-align-none">This may be why Kalshi is trying to make sure that it isn’t associated with the anything-goes style of Polymarket —&nbsp;and why I get terse emails from Kalshi’s PR when I talk about prediction markets and insider trading. Kalshi uses software to monitor activity and flag unusual trades, and because the company collects the customer data of everyone on there, it can conduct a thorough investigation, says Diana, the spokesperson. Kalshi and <a href="http://crypto.com/">Crypto.com</a> have even formed an industry group, the Coalition for Prediction Markets. Notably, it doesn’t include Polymarket.</p>

<p class="has-text-align-none">Of course, it is possible <a href="https://www.wsj.com/finance/investing/the-tax-nerd-who-bet-his-life-savings-against-doge-6b59eda2?gaa_at=eafs&amp;gaa_n=AWEtsqe61rAUPOEbk4wCKFhknLRc_DSjFCvipWdKLZ2vnVgQSof3lOobqW16&amp;gaa_ts=69b1e2e4&amp;gaa_sig=TZ9ZWiel4IZ8OFg21isSjX4uOKA-3LHSg0PT5spT_lWsns1A2SYbJgfUzaW2SSDiCELwThQn0two8mYomUKAjw%3D%3D">to make informed guesses</a> about events <em>without</em> insider information. One might suggest the best possible type of prediction market has traders who are <em>informed</em> without being <em>insiders. </em>Markets should reward good research, says Verstein. He points to short sellers, who have surfaced fraud (for instance, <a href="https://hindenburgresearch.com/nikola/">at Nikola</a>) that was then <a href="https://www.theverge.com/2023/12/18/24006571/nikola-trevor-milton-sentence-prison-fraud-electric-truck">prosecuted by the Justice Department</a>. The ability to short Nikola before making the information public was the reason someone researched the company in the first place. In that sense, the financial incentives are positive, Verstein says.</p>

<p class="has-text-align-none">Similarly, if you see tanks rolling down the street in Pasadena, it might make sense to buy a “yes” option on “Will there be an invasion in Pasadena,” Verstein notes. If that weird little contract goes crazy, that means people notice the information. In that sense, prediction markets can function as “truth machines,” Verstein says. “That’s what made them popular with academics and political scientists for decades,” he says.</p>

<figure class="wp-block-pullquote"><blockquote><p>“If I knew insiders were always allowed to make a buck, I’d feel the market is rigged.”</p></blockquote></figure>

<p class="has-text-align-none">But informed trading isn’t the majority of the order flow on these markets — it would be too hard for insiders to make money otherwise. The majority, the people that Polymarket and Kalshi are picking up through advertising, <a href="https://murmurationstwo.substack.com/p/prediction-markets-are-not-good-markets">are people betting their fun money</a>, says Nic Carter, a partner at Castle Island Ventures. Those people won’t bet if they think the markets are unfair, Carter notes. Schipani agrees. “If I knew insiders were always allowed to make a buck, I’d feel the market is rigged.”</p>

<p class="has-text-align-none">Meanwhile, some people are trying to track insider trades so they, too, can profit. From Tre Upshaw, a former memecoin trader, there’s the “Insider Finder” portion of his tracker Polysights. He told <em>Bloomberg</em> in January that <a href="https://www.bloomberg.com/news/articles/2026-01-12/the-man-betting-on-insider-trading-as-prediction-markets-boom">85 percent of the cases he’s identified</a> resulted in a win. Lasn’s platform, 0xInsider, attempts to identify patterns that are unlikely to come from research alone. Lasn says that insider information should be surfaced quickly, to make the markets fairer.&nbsp;</p>

<p class="has-text-align-none">“When we surface suspicious activity publicly, two things happen,” Lasn said in an email. “Regular traders can factor that signal into their decisions. And the mere existence of surveillance changes behavior.”</p>

<figure class="wp-block-pullquote"><blockquote><p>“People are like, is this insider information?”</p></blockquote></figure>

<p class="has-text-align-none">Which brings us back to the CFTC. While this may be the preferred regulatory agency for prediction markets —&nbsp;since it has consistent rules, a lighter regulatory hand, and lower taxes than state gambling authorities —&nbsp;its anemic enforcement of insider trading is something of a problem for Kalshi, and anyone else wanting to make sure prediction markets are fair. And that’s just on the cut-and-dried cases. Prediction markets have weirder problems too.</p>

<p class="has-text-align-none">For instance, <a href="https://www.wsj.com/business/media/prediction-markets-campus-e57cd19f?gaa_at=eafs&amp;gaa_n=AWEtsqcSxPkRQtCxHVT8GkEJ57J823s6WPGQMXV78U2qIo0wRn4EFsSOXJM-&amp;gaa_ts=69b0e821&amp;gaa_sig=5ePTZV9FOsY6QyT7loGConL_GuhsDqDhoHN__39Z7FgxJmh5qIJS0PstN0iQNhiqdPzECYIt0gUSI9P495nGwA%3D%3D">Jeff Bezos’ stepson may have told his University of Miami frat brothers</a> that Bezos would not attend the Super Bowl, a thing that Kalshi makes it possible to wager on. “Bets among the fraternity brothers and their friends ran as high as $10,000 per person, with returns hitting more than 30 percent,” <em>The Wall Street Journal </em>wrote.</p>

<p class="has-text-align-none">“People are like, is this insider information?” one frat brother told the <em>Journal</em>.</p>

<p class="has-text-align-none">Honestly, great question. Traditionally, insider trading involves a breach of confidence and fiduciary duty, says Schipani. What fiduciary duty would Bezos’ stepson be violating by telling his frat brothers Bezos’ location? “It’s like the wild west right now,” Schipani says.</p>

<p class="has-text-align-none"><em>With reporting by Lauren Feiner.</em></p>
						]]>
									</content>
			
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			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Why is SpaceX going public?]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/887899/spacex-ipo-risks-ai" />
			<id>https://www.theverge.com/?p=887899</id>
			<updated>2026-04-04T12:08:39-04:00</updated>
			<published>2026-03-03T09:30:00-05:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Analysis" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Elon Musk" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Science" /><category scheme="https://www.theverge.com" term="Space" /><category scheme="https://www.theverge.com" term="SpaceX" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Twitter - X" /><category scheme="https://www.theverge.com" term="xAI" />
							<summary type="html"><![CDATA[I am excited about the SpaceX IPO for all the reasons investors shouldn’t be. Maybe it’ll be a real marquee moment for Silicon Valley, but I see the potential for a shitshow. After all, more than a decade ago, Musk said that SpaceX going public before going to Mars would be bad for the company. [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">I am excited about the SpaceX IPO for all the reasons investors shouldn’t be. Maybe it’ll be a real marquee moment for Silicon Valley, but I see the potential for a shitshow. After all, more than a decade ago, Musk said that SpaceX going public before going to Mars would be bad for the company.</p>

<p class="has-text-align-none">Are private markets tapped out on cash to fund SpaceX ambitions? <a href="https://www.theverge.com/2018/8/8/17664296/elon-musk-tesla-public-private-offering-stocks">Elon Musk has been very clear about his feelings on publicly traded companies</a>. Specifically: He doesn’t like them!&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>“I am hesitant to foist being public on SpaceX, especially given the long term nature of our mission.”</p></blockquote></figure>

<p class="has-text-align-none">In 2013, Musk sent an email to SpaceX, which his biographer Ashlee Vance reprinted in his book, saying he didn’t want to take the company public until his Mars transport system is in place. Tesla went public because it “didn’t have any choice,” Musk wrote in a memo to SpaceX employees in 2013. “I am hesitant to foist being public on SpaceX, especially given the long term nature of our mission.”</p>

<p class="has-text-align-none">An IPO can raise a lot of money for a company while letting longtime investors exit. But there’s a price. It’s possible the private market has overvalued the company or the financials don’t look as good as everyone hoped. And it’s much easier for investors to bail on a public company than a private one.</p>

<p class="has-text-align-none">There are other things Musk cited in his 2013 memo, too. “Public companies are judged on quarterly performance,” he wrote. If SpaceX had a bad quarter as a public company, “short sellers would be hitting us over the head with a large stick.” The stock also would get beaten up every time something went wrong with a SpaceX rocket. (In non-Trump administrations, public companies are also scrutinized more closely by financial regulators than private ones — though Trump’s SEC seems to exist <a href="https://democrats-financialservices.house.gov/uploadedfiles/01.14.2026_ltr_sec_rfcryptoe.pdf">largely to get rid of old SEC cases</a>.)</p>

<figure class="wp-block-pullquote"><blockquote><p>Data centers in space are the purported reason for acquiring xAI</p></blockquote></figure>

<p class="has-text-align-none">Tesla has an inflated share price because of Musk’s fandom, which effectively precludes activists from taking over the board and ejecting its CEO; also, <a href="https://www.theverge.com/transportation/870332/tesla-throws-in-the-towel-on-car-sales">it is a mess</a>. Given its business with the government, SpaceX could be worth taking a risk on. If SpaceX goes public, there’s a world in which a firm like <a href="https://www.newyorker.com/magazine/2018/08/27/paul-singer-doomsday-investor">Elliott Management buys shares</a> and starts agitating. SpaceX’s sheer size may make that difficult for now, but if it has a couple bad quarters, that could change.</p>

<p class="has-text-align-none">Musk’s positive case for going public right now is to put <a href="https://www.wsj.com/tech/why-elon-musk-is-racing-to-take-spacex-public-38f3de9b">AI data centers in space</a>. Well, Musk loves saying weird shit he won’t follow through on. Take, for instance, the part of the 2013 memo about SpaceX not going public until the Mars transport system is in place. It isn’t. In fact, Musk <a href="https://www.reuters.com/science/musk-says-spacex-prioritise-building-self-growing-city-moon-2026-02-08/">recast his Mars ambitions to the Moon</a>, perhaps because he recently discovered <a href="https://www.inverse.com/innovation/elon-musks-occupy-mars-banner-contains-one-crucial-mistake">the Moon is the celestial body actually shown on his “Occupy Mars” shirt</a>.&nbsp;</p>

<p class="has-text-align-none">Data centers in space are the purported reason for acquiring xAI, Musk’s tremendously money-losing home of the social media platform formerly known as Twitter and its boutique child porn generator Grok. Maybe <a href="https://www.wsj.com/tech/elon-musk-says-spacex-has-acquired-xai-038a4072?mod=article_inline">adding X and xAI to SpaceX</a> will “make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” SpaceX alone would have been a pretty clean IPO, one that would be easy to make a case for. But SpaceX plus xAI is a mess, not least because a number of governments are <a href="https://www.bbc.com/news/articles/ce3ex92557jo"><em>very </em>unhappy</a> about the aforementioned child porn.</p>

<p class="has-text-align-none">Musk has a history of buying companies that Elon Musk is the largest investor in; take Tesla’s 2016 Solar City acquisition. A number of Tesla investors sued, saying that the acquisition amounted to a bailout of the failing solar panel company —&nbsp;one meant to prop up Musk’s investment. Those investors <a href="https://apnews.com/article/tesla-elon-musk-solar-city-shareholder-lawsuit-362775d28666c40e66ca09117c31f93c">ultimately lost the suit</a>. But it does raise my eyebrows about the xAI acquisition of X, <em>and</em> the SpaceX acquisition of xAI.</p>

<p class="has-text-align-none">So yes, I have some thoughts on why we are seeing this messy IPO, and all of them are more cynical than data centers in space and sentient suns.</p>

<figure class="wp-block-pullquote"><blockquote><p>I’m not sure about SpaceX’s overall cost basis but I <em>know</em> xAI is lighting money on fire</p></blockquote></figure>

<p class="has-text-align-none">First, Musk needs to help out the investors in his debt-loaded Twitter takeover, which was <a href="https://www.theverge.com/2022/12/16/23513407/elon-musk-equity-investment-sucker-born-every-minute">notoriously overvalued</a> even before it closed and became <a href="https://www.wsj.com/tech/elon-musks-twitter-takeover-is-now-the-worst-buyout-for-banks-since-the-financial-crisis-3f4272cb">the worst merger for its banks since the financial crisis</a>, until the Trump administration <a href="https://www.ft.com/content/4f44c0c1-0113-4054-be0b-adc119557f2d">reversed their fortunes</a>. So I don’t think it’s too far-fetched that Musk is now trying to pay off his equity investors. Smushing X into xAI gave those investors a slice of the more valuable company as a thank-you for their trouble. And, in turn, <a href="https://www.ft.com/content/9d2b4ca0-5d8b-4ed4-b023-d8292b5b7745">rolling the money-losing xAI into SpaceX</a> gives them an even bigger return on their investment, with the IPO poised to give them an opportunity to sell, realize their profits, and put the whole thing behind them.</p>

<p class="has-text-align-none">There’s also <a href="https://www.wsj.com/finance/stocks/spacex-seeks-early-index-entry-as-it-prepares-massive-ipo-8445ed59?mod=Searchresults&amp;pos=7&amp;page=1">some maneuvering on SpaceX’s part</a> that suggests it’s trying to prop up its value using a “fast entry” process to financial indexes such as the Nasdaq. <a href="https://www.reuters.com/business/nasdaq-proposes-fast-entry-rule-speed-up-inclusion-large-new-listings-2026-02-04/">Nasdaq is mulling a rule change</a> that would allow entry into the index after 15 days —&nbsp;instead of months — if the company in question is large enough. SpaceX is targeting more than $1 trillion as its IPO valuation, which would qualify it to get added under the rule change, and getting added to the index means that SpaceX is automatically added to index funds. That makes it even easier for SpaceX insiders to unload on retail investors, and means Musk won’t have to rely on just his faithful cultists to boost shares.&nbsp;</p>

<p class="has-text-align-none">Second, Musk wants to go to market before Sam Altman does. Do I need to recap this <a href="https://www.theverge.com/column/863319/highlights-musk-v-altman-openai">entire stupid slapfest</a> for you? (I am about to drag my ass to an Oakland courtroom to watch them bicker expensively at the end of April). Honestly, rich people should have better hobbies, like <a href="https://whc.unesco.org/en/list/175/">building spectacular architecture</a> that will outlast their miserable families.</p>

<p class="has-text-align-none">And third, it’s reasonable to conclude that SpaceX needs money. That’s what forced Musk’s hand into going public with Tesla, after all. Now, you may be suggesting that Musk really needs those funds for his <a href="https://www.verysane.ai/p/should-we-put-gpus-in-space">data centers in space,</a> in which case, I’d advise you to <a href="https://www.fresnobee.com/opinion/editorials/article264451076.html">continue waiting for the Hyperloop to get built</a>. I don’t think that’s the issue. I’m not sure about SpaceX’s overall cost basis but I <em>know</em> xAI is lighting money on fire.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>“No one has ever scaled like that outside of SpaceX.”</p></blockquote></figure>

<p class="has-text-align-none">Let’s think about SpaceX’s big moneymaker Starlink by itself for a minute, actually; maybe that will clarify if the company needs money even without an xAI acquisition. Starlink was a surprising advance on the old satellite model, says Caleb Henry of market research firm Quilty Space. Once upon a time, you parked a satellite in geostationary orbit. On paper that satellite lasts 15 years; in reality, it might last as much as 20. You make back your costs in seven years and then you just print money.</p>

<p class="has-text-align-none">Starlink emerged as the streaming wars upended TV broadcast —&nbsp;and, indirectly, the satellite business. TV broadcast revenue was drying up for satellite providers, and the geostationary style of satellite business came under competition from constellations like Starlink.&nbsp;</p>

<p class="has-text-align-none">SpaceX has also had impressive cost reductions when it comes to its equipment, Henry notes. The user terminal was initially $3,000 to build, but as production increased, the price dropped —&nbsp;and now SpaceX says it’s no longer taking a loss on those. “No one has ever scaled like that outside of SpaceX,” Henry says. “When they hit production in a week that the rest of the industry did in a year, the cost calculation changed.”</p>

<p class="has-text-align-none">Henry says he thinks Starlink is making money, and will make more money every year. Starlink has expanded the markets it’s in —&nbsp;from consumers, to militaries (especially in Ukraine), to aircraft and maritime markets.</p>

<figure class="wp-block-pullquote"><blockquote><p>Starlink is assumed to be the major revenue driver for SpaceX</p></blockquote></figure>

<p class="has-text-align-none">But as Starlink has grown, it’s also slashed prices —&nbsp;and <a href="https://www.theinformation.com/articles/spacexs-starlink-makes-land-grab-amazon-threat-looms?rc=jznb2j">possibly its margins</a>, according to <em>The Information.</em> Meanwhile, a new competitor is about to enter space: Amazon, which has partnered with AT&amp;T on Leo, a new satellite internet service. Amazon, of course, is very, very good at customer acquisition, and AT&amp;T is already an internet provider. This is to say nothing of <a href="https://www.ft.com/content/b635423f-e721-454c-b75c-98d0ad8fedf1">potential competition from China and the EU</a>. Musk’s train wreck of a personality may give his competitors an edge, especially in countries outside the US. And while SpaceX has an impressive edge on the competition now, <a href="https://apnews.com/article/tesla-sales-musk-trump-deliveries-robotaxi-6d60715babde97b3b1a8e2416f4065ca">Musk has squandered his impressive head start before</a>.</p>

<p class="has-text-align-none">Starlink is assumed to be the major revenue driver for SpaceX, with a 2024 Morgan Stanley report projecting that the company’s revenue would reach $19 billion in 2025, on the strength of 6 million Starlink subscribers, <em>The Information</em> reported. But <a href="https://www.theinformation.com/articles/inside-musks-spacex-xai-megamerger?rc=jznb2j">SpaceX’s revenue last year was only $16 billion</a>, despite 9.2 million Starlink subscribers. Oops!</p>

<p class="has-text-align-none">In 2023, Musk said Starlink had “<a href="https://x.com/elonmusk/status/1720098480037773658">breakeven cash flow</a>,” but <a href="https://www.bloomberg.com/news/features/2024-04-10/is-elon-musk-s-starlink-profitable-spacex-satellites-are-money-losers?sref=M8H6LjUF"><em>Bloomberg</em> reported in 2024</a> that “people with knowledge of Starlink’s balance sheet say money-making quarters have been less consistent than Musk suggested to investors.” Quilty Space estimates that Starlink generated about half a billion in free cash flow in 2024, its first cash flow positive year. I’m saying “cash flow” instead of “profits” because those numbers don’t take into account lifetime expenses for Starlink in terms of, say, R&amp;D and so on. Incidentally, this is exactly the kind of thing we’re all going to find out about during the IPO process.</p>

<figure class="wp-block-pullquote"><blockquote><p>There are kind of a lot of questions around Starship because it’s now a choke point</p></blockquote></figure>

<p class="has-text-align-none">The crucial question is Starlink’s costs. Henry figures that satellite constellations like Starlink could cost between $5 billion and $20 billion. SpaceX’s V2 satellites, the current version, cost between <a href="https://spacenews.com/starlink-soars-spacexs-satellite-internet-surprises-analysts-with-6-6-billion-revenue-projection/">$800,000 and $1 million to make</a>, according to Quilty Space estimates. V3, which has not yet been deployed, is estimated to cost $1.2 million per satellite. An <a href="https://www.scribd.com/document/803691077/Annex-C-1-Spacex">FCC filing</a> suggests the V3 will weigh 2,000kg, or about 4,400 pounds —&nbsp;about <a href="https://www.pcmag.com/news/spacex-offers-new-look-at-v3-starlink-satellite-for-gigabit-speeds">three and a half times as much as V2</a>. The weight difference matters because it suggests that SpaceX must rely on its new Starship, rather than the Falcon 9, to launch its heavier satellites.&nbsp;</p>

<p class="has-text-align-none">The Falcon 9’s launch costs are probably below $20 million per launch, according to Quilty Space. Starship has more question marks around it.</p>

<p class="has-text-align-none">Starship’s lifetime R&amp;D costs are likely $10 billion, according to <a href="https://pro.payloadspace.com/the-starship-report/">analysis from Payload Pro</a>. Manufacturing the full stack for it probably costs $90 million, but launch costs could plausibly drop to less than $10 million per launch if Starship is fully reusable, according to the same report. There are kind of a lot of questions around Starship because it’s now a choke point: There are V3 satellites just sitting around waiting for their launch, says Henry. Meanwhile, Starship, also on V3, hasn’t yet shown it can launch a hundred or more metric tons. “For Starship to be the answer to all of SpaceX’s problems, it needs to be as powerful in reality as has been contemplated on paper,” Henry says.</p>

<figure class="wp-block-pullquote"><blockquote><p>The program has had some hiccups —&nbsp;most notably, a series of explosions</p></blockquote></figure>

<p class="has-text-align-none">Starship doesn’t just matter for Starlink; it also matters <a href="https://www.nasa.gov/missions/artemis/artemis-iii/">for NASA</a> and other contracts. There should be <a href="https://www.ft.com/content/de219ce9-75d1-4559-b6d5-b37ae26175f0">a test flight of Starship in the next “four to six weeks,”</a> according to SpaceX president Gwynne Shotwell. SpaceX estimates Starship will be ready to launch a new constellation of Starlink satellites in “mid-2027,” said Michael Nicolls, SpaceX’s senior vice president said at Mobile World Congress. This all, of course, assumes that Starship development goes according to the plan. The program has had <a href="https://www.wsj.com/science/space-astronomy/spacexs-starship-rocket-aimed-at-mars-mission-explodes-again-8ce7c1ba?gaa_at=eafs&amp;gaa_n=AWEtsqd4Zj63HdiO8xIxCF2Bb9OSfVBB6E6F4TUFOq9mZ3CEhbx4zN7j9Ami&amp;gaa_ts=69a5f43b&amp;gaa_sig=FP8aJ4PENyIStfZBaOmVCPYaZixrqG2slUYJt8VORRma6jNjDszIZ_4YIEc996kKAMUnNIS_K9EPyZJuvP2XwQ%3D%3D">some hiccups</a> —&nbsp;most notably, <a href="https://www.scientificamerican.com/article/why-do-spacexs-starships-keep-exploding/">a series of explosions</a>.</p>

<p class="has-text-align-none">We may very well find out more with the financial document known as the S-1, which gives basic business information on the company and is required for a public offering. <a href="https://www.detroitnews.com/story/business/2025/09/10/musk-says-spacex-to-fly-bigger-fully-reusable-starship-in-2026/86076562007/">Will Starship be fully reusable</a>? How much risk is there for continued explosions? These are pretty significant variables to consider when it comes to trying to figure out SpaceX’s future trajectory; if only part of Starship is reusable, launch costs will be higher. Also, explosions are generally bad.</p>

<p class="has-text-align-none">These are pretty big things to be uncertain about, and if I were an investor, I’d be taking Musk’s projections with a pillar of salt. I mean, this is the guy who said “demand is off the charts” about the Cybertruck, a vehicle that <a href="https://www.theverge.com/2025/1/3/24334954/tesla-cybertruck-sales-demand-expectation-elon-musk">didn’t meaningfully contribute</a> to Tesla’s 2024 revenue and <a href="https://www.theverge.com/news/798889/tesla-cybertruck-sales-decrease-q3-2025">then flatlined in 2025</a>. Musk once projected that he’d sell 250,000 Cybertrucks annually; as of last October, Tesla had sold an <a href="https://www.cbsnews.com/news/tesla-cybertruck-sales-elon-musk/">estimated <em>total </em>of less than 60,000</a> in 2024 and 2025. Investors have given Musk a massive amount of leeway on what appear to be fairly routine overestimates, bad projections, and sometimes outright lies. I wonder if that will extend to SpaceX, too. </p>

<figure class="wp-block-pullquote"><blockquote><p>But there’s one other factor working against the IPO: Musk’s ego</p></blockquote></figure>

<p class="has-text-align-none">Still, despite the risks, there’s reason to think that SpaceX has some real possibility for rewards. I bring all this up because <a href="https://www.bloomberg.com/news/articles/2026-02-04/spacex-merger-provides-lifeline-for-musk-s-debt-ridden-ai-startup?sref=M8H6LjUF">SpaceX is the <em>good</em> part of the business</a>. xAI, meanwhile, burned through <a href="https://www.theinformation.com/articles/inside-musks-spacex-xai-megamerger?rc=jznb2j">almost $10 billion in cash</a> in the first nine months of last year to achieve… $210 million in revenue. This is to say nothing of the <a href="https://www.bloomberg.com/news/articles/2026-03-02/musk-s-xai-to-buy-back-3-billion-of-debt-early-in-run-up-to-ipo?sref=M8H6LjUF">$17.5 billion in debt</a> (which may incur penalties if it is paid back early), the <a href="https://oag.ca.gov/news/press-releases/attorney-general-bonta-launches-investigation-xai-grok-over-undressed-sexual-ai">fun new regulatory risks</a>, and <a href="https://news.bloomberglaw.com/litigation/grok-maker-xai-faces-non-consensual-sexual-deepfake-class-suit">the lawsuits</a> that xAI also tacks on to SpaceX. Maybe xAI is Musk’s version of a poison pill to keep activist investors away, who knows!</p>

<p class="has-text-align-none">Sure, beating the competition to market, especially when that competition is Sam Altman, is fun. But that seems like a bonus. From where I’m standing it sure looks like SpaceX, now that it has xAI weighing it down, <em>needs</em> money. SpaceX <a href="https://www.theinformation.com/articles/spacex-ipo-tap-hordes-individual-investors?rc=jznb2j">executives expect to raise $50 billion in the IPO</a>, making it twice the size of the previous largest-ever IPO. As with Tesla, Musk is probably relying on the enthusiasm of retail investors — but this time, he’s trying to shore up SpaceX with index fund money, too.&nbsp;</p>

<p class="has-text-align-none">Whether the IPO will be successful is an open question. Separately from any doubts investors may have about SpaceX’s finances, Musk has alienated a lot of people over the last two years through his political ventures — doubtless another reason to target index funds, which are a basket of investments designed to mirror a benchmark such as the Dow Jones Industrial Average, or the Nasdaq — and investors’ moods may sour on AI. But there’s one other factor working against the IPO: Musk’s ego.</p>

<figure class="wp-block-pullquote"><blockquote><p>Whatever number SpaceX actually needs is going to be large, but whatever Musk is going to want will be larger</p></blockquote></figure>

<p class="has-text-align-none">Remember <a href="https://www.theverge.com/2019/8/15/20806366/we-company-wework-ipo-adam-neumann">the WeWork IPO</a>? That S-1 was magnificently insane: a tech-company valuation of $96 billion on what was essentially a landlord, plus a bunch of other fun stuff that benefitted only the company’s CEO and founder. It was insane because WeWork was insane. “WeWork was interviewing bankers to lead its IPO, and the bankers all came in and said words to the effect of ‘we think you are great, we understand your story and want to be the ones to tell it, and we think you are worth a lot of money,’ in order to convince WeWork to hire them,” <a href="https://www.bloomberg.com/opinion/articles/2020-01-22/wework-s-valuation-was-for-wework">explained <em>Bloomberg</em>’s Matt Levine</a>. And that’s how the $96 billion valuation happened — the bankers had no incentive not to make their client, WeWork, happy. Anyway, investors got the S-1, laughed until they cried, and didn’t invest; WeWork had to yank its IPO, and then file for bankruptcy. Not ideal.</p>

<p class="has-text-align-none">Consider for a moment Musk’s megalomania. What numbers do you suppose <a href="https://www.ft.com/content/55235da5-9a3f-4e0f-b00c-4e1f5abdc606">Bank of America, Goldman Sachs, JPMorganChase, and Morgan Stanley</a> gave Musk on SpaceX? Whatever number SpaceX actually needs is going to be large, but whatever Musk is going to want will be larger. Will it make sense?&nbsp;</p>

<p class="has-text-align-none">Maybe, and maybe SpaceX’s finances will be great, and I will write something about how surprisingly normal and sensible the SpaceX S-1 is, and we will all move on with our lives. But given all the agita around the extremely overvalued Twitter acquisition, Musk’s “first buddy” status, the Starship explosions, and the AI bubble fears, plus whatever the fuck the Iran action does to energy markets, Musk may have seen the future back in his 2013 memo. To borrow a phrase, SpaceX may soon be getting hit with very large sticks.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Prop bet]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/business/881967/polymarket-kalshi-journalism-sponsorship-ad" />
			<id>https://www.theverge.com/?p=881967</id>
			<updated>2026-03-02T12:04:17-05:00</updated>
			<published>2026-02-20T11:15:00-05:00</published>
			<category scheme="https://www.theverge.com" term="Analysis" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Social Media" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Substack has updated its partnership with betting platform Polymarket, “introducing native tools that make it easier to share, discuss, and debate prediction market data directly on Substack.” Additionally, Polymarket will effectively pay “a cohort of creators,” including Matt Yglesias, to use its data though the newsletter platform’s pilot sponsorships program. This is just the latest [&#8230;]]]></summary>
			
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											<![CDATA[

						
<figure>

<img alt="Hands frame a crystal ball, where Line goes Up." data-caption="Pondering my orb. | Image: Cath Virginia / The Verge, Getty Images" data-portal-copyright="Image: Cath Virginia / The Verge, Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/02/STKS527_PREDICTION_MARKETS_CVIRGINIA.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	Pondering my orb. | Image: Cath Virginia / The Verge, Getty Images	</figcaption>
</figure>
<p class="has-text-align-none">Substack has <a href="https://on.substack.com/p/what-the-markets-are-saying?utm_source=post-email-title&amp;publication_id=1&amp;post_id=188389506&amp;utm_campaign=email-post-title&amp;isFreemail=true&amp;r=7zt&amp;triedRedirect=true&amp;utm_medium=email">updated its partnership with betting platform Polymarket</a>, “introducing native tools that make it easier to share, discuss, and debate prediction market data directly on Substack.” Additionally, Polymarket will effectively pay “a cohort of creators,” <a href="https://www.slowboring.com/p/americans-think-everyone-is-corrupt">including Matt Yglesias</a>, to use its data though the newsletter platform’s pilot sponsorships program.</p>

<p class="has-text-align-none">This is just the latest foray of prediction markets into media. Last week, <a href="https://www.wsj.com/finance/stocks/polymarket-dow-jones-partner-to-display-prediction-markets-data-in-dow-jones-content-453605ed">Dow Jones agreed to incorporate Polymarket’s betting data</a> into its “content,” including <em>The Wall Street Journal</em>. A month before that, <a href="https://news.kalshi.com/p/kalshi-cnn-prediction-market-partnership">CNN incorporated Kalshi’s betting odds</a>. In December, CNBC <a href="https://www.cnbc.com/2025/12/04/cnbc-and-kalshi-strike-exclusive-partnership.html">agreed to infuse its programming with Kalshi data</a>. Noted poker player Nate Silver, once a respected stats journalist, is <a href="https://www.prnewswire.com/news-releases/nate-silver-joins-polymarket-ahead-of-2024-election-as-trading-volume-tops-400m-302198424.html">now an advisor for Polymarket.</a></p>

<figure class="wp-block-pullquote"><blockquote><p>“If you get the news before it happens, that should be even more economically valuable.”</p></blockquote></figure>

<p class="has-text-align-none">This looks like a concerted effort to confuse people about what news is and does. Here’s <a href="https://youtu.be/Gq3v-Y6cvLI?si=_UeBMaOhlf2VcuNs&amp;t=371">Robinhood’s CEO Vlad Tenev</a>, one of the leading profiteers from <a href="https://www.theverge.com/2021/7/13/22574133/robinhood-meme-trades-dogecoin-ipo">America’s financial nihilism</a>: “I like to think about prediction markets as the next generation of the news. We know the news is economically valuable. People pay for getting the newspaper; they pay indirectly for shows like this [<em>Squawk on the Street</em> on CNBC] through advertising, and so if you get the news before it happens, that should be even more economically valuable.” </p>

<p class="has-text-align-none">Let’s stop for a moment and think about what news <em>is</em>, since the slippage in Tenev’s quote (“if you get the news before it happens”) highlights the problem with his line of thought. It kind of seems like people have recently become confused about the difference between information, journalism, and “content.” The earliest known predecessor to journalism is Rome’s <a href="https://en.wikipedia.org/wiki/Acta_Diurna">Acta Diurna</a>, which was in circulation more than two millennia ago — basically an official record of events, such as births, new laws, and financial data. (A similar publication circulated in China starting in the Tang dynasty.) In 15th-century Europe, businessmen began disseminating written accounts of important events to their contacts; this is essentially the predecessor to the modern newspaper.</p>

<p class="has-text-align-none">Do you notice anything here? That’s right: News is a record of things that have <em>happened</em>. Weather forecasts and horoscopes aside, newspapers do not traffic in predictions. They tell you, instead, about the very recent past — what happened yesterday. An online news site, not constrained by a printing press, can even tell you what happened 20 minutes ago. But no news organization exists to predict the future. By definition, you <em>cannot</em> know the news before it happens.</p>

<p class="has-text-align-none">The actual function of news, however, can sometimes be obscured by what <a href="https://lareviewofbooks.org/article/pseudo-events-in-the-21st-century/">Daniel J. Boorstin calls “pseudo-events,”</a> which are planned events that can be repeated, such as awards shows, press conferences, political conventions, and earnings calls. Unlike true events — natural disasters, a vote at the city council meeting, an assassination — the outcome of a pseudo-event can be known in advance because it is planned. Its contents can be distributed to reporters “under embargo,” so that when the pseudo-event occurs, reporters can instantaneously run a story.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>The conflation of betting markets and news began with political coverage</p></blockquote></figure>

<p class="has-text-align-none">Lots of publications, including this one, include coverage of pseudo-events — an <a href="https://www.theverge.com/apple-event">Apple event</a> is a great example — alongside the accounting of <em>real </em>events. In Boorstin’s <em>The Image: A Guide to Pseudo-Events in America</em>, he suggests that news outlets cover pseudo-events in part because there are not enough <em>actual</em> events to fill out the news cycle. There is also tremendous consumer demand for pseudo-events; celebrities, which are pseudo-events made flesh, are so significantly popular that an entire ecosystem of publications exists for them.</p>

<p class="has-text-align-none">Pseudo-events have overtaken actual events in Hollywood, where they have long been generated to create marketing for movies. The other place where pseudo-events dominate real events is politics. Speeches are pseudo-events, which is why journalists often receive the drafted remarks in advance; so are press conferences, social media beefs, ribbon-cuttings, and the Presidential pardoning of a turkey. I bring this up because I believe the conflation of betting markets and news began with political coverage.</p>

<p class="has-text-align-none">In 2024, <a href="https://www.pbs.org/publiceditor/blogs/pbs-public-editor/the-problem-with-polls/">no one was sure how reliable presidential polling was</a> — since people were increasingly using mobile phones rather than landlines, and often not picking up because of a deluge of spam calls. Polls, of course, <a href="https://www.vanityfair.com/news/2023/11/2024-election-polls-donald-trump-joe-biden">look more like pseudo-events</a> (press releases) than actual ones (six-car pileups), and exist in part to drive conversation. They are not the same thing as news; polls are, at best, a snapshot of a specific group at a specific time asked specifically -worded questions and, at worst, political horoscopes. I’m not convinced newspapers should be in the business of reporting on polls, much less running them.</p>

<p class="has-text-align-none">Still, people — at least editors and reporters, and maybe the audience too — wanted some indication of what might happen in a presidential election. Prediction markets were so confident that Trump would beat Harris that they made traditional newspapers, which saw the race as a toss up, look like they were waffling. (And if you don’t really understand how probability works, you too probably think Polymarket was more correct than “tossup.”) So betting markets were suggested <a href="https://www.npr.org/2024/10/29/nx-s1-5132616/election-day-betting-trump-harris">as a viable alternative to polls</a>; the idea was that people were so confident in a specific outcome that they were willing to wager on it. And that’s how odds on Polymarket and Kalshi started to creep into stories.</p>

<figure class="wp-block-pullquote"><blockquote><p>“​​These markets have changed the way people consume news.”</p></blockquote></figure>

<p class="has-text-align-none">The other argument in favor of betting markets, <em>as made by their advocates</em>, <a href="https://mason.gmu.edu/~rhanson/insiderbet.pdf">is that they contain insider information</a>. <a href="https://www.businessinsider.com/ritchie-torres-insider-trading-ban-polymarket-government-officials-maduro-venezuela-2026-1">This is “cool,”</a> according to Polymarket’s CEO, Shayne Coplan. It is also <a href="https://www.investor.gov/introduction-investing/investing-basics/glossary/insider-trading">illegal</a>. That doesn’t matter much to the purveyors of gambling-addiction-as-a-service; because contracts are peer-to-peer, the house isn’t getting ripped off. It’s only the punters dumb enough to enter the bet without insider information who’ll lose their shirts.</p>

<p class="has-text-align-none">There are several examples of plausible insider trading on predictions markets: the entity who cashed out with almost half a million dollars when the US <a href="https://www.theverge.com/policy/858075/trump-venezuela-maduro-kidnapping-spectacle">snatched Venezuela&#8217;s president</a>, for instance — an actual event that occurred <a href="https://www.theverge.com/policy/858075/trump-venezuela-maduro-kidnapping-spectacle">in order to create pseudo-events</a>. (Baudrillard would be so proud!) Or the bettor who made more than $1 million by <a href="https://www.forbes.com/sites/boazsobrado/2025/12/04/alleged-insider-nets-1-million-on-polymarket-in-24-hours/">placing bets on what Google’s 2025 Year in Search rankings would be</a>. Or the trader who made $50,000 by <a href="https://www.wsj.com/finance/stocks/polymarket-nobel-peace-prize-bets-c34ee0c8">betting correctly on the recipient of the Nobel Peace Prize</a>.&nbsp;</p>

<p class="has-text-align-none">A great deal of <a href="https://apnews.com/article/kalshi-polymarket-nfl-nba-mlb-nhl-663ec7f5da78aeed7d7c145bb9cb65ca">volume in prediction markets is sports betting</a>, though predictions markets mechanically work slightly differently than straight sports bets. A standard sports bet has the punter taking one side and the house taking the other; in prediction markets, there are punters on both ends, and the house just takes a cut of the trade. Also, prediction markets deal in contracts, which can lead to ambiguity — such as <a href="https://apnews.com/article/super-bowl-kalshi-cardi-b-bad-bunny-d3b51d8848934d69c39ff92fa2c51278">whether Cardi B’s dance during Bad Bunny’s Super Bowl halftime show counted as a performance</a>. It is possible for the <em>spirit</em> of a contract to be fulfilled (the US kidnapped the president of Venezuela) while the <em>letter</em> isn’t (<a href="https://www.nytimes.com/2026/01/08/business/polymarket-venezuela-invasion-bets.html">according to Polymarket, this was not an “invasion”</a>).</p>

<figure class="wp-block-pullquote"><blockquote><p>It is unclear to me how helping gambling companies rip off your audience serves the public interest</p></blockquote></figure>

<p class="has-text-align-none">This distinction, silly as it sounds, may actually matter. While some states have <a href="https://docs.google.com/document/d/1X4a_L7VGuUtpWiwuSMhdlqF1TdouWTCYf0Nbj4gVgHs/edit?tab=t.0">indicated they believe prediction markets should follow the legal framework for sports betting</a>, the feds think those states should fuck right off. Any moves by the states to limit insider trading on betting markets <a href="https://x.com/ChairmanSelig/status/2023744651216240966">will be blocked by Mike Selig</a>, the chair of the Commodity Futures Trading Commission. “​​These markets have changed the way people consume news,” Selig says, accurately.&nbsp;</p>

<p class="has-text-align-none">Obviously, as the Year in Search and Nobel Prize bets show, it’s easier to correctly bet on a pseudo-event than an actual one. But the consequences of insider information on <em>actual</em> information are potentially more devastating — the leakage of state secrets, and not to protect the public. <a href="https://mattdpearce.substack.com/p/information-wants-to-be-unfree">As media critic Matt Pearce points out</a>, there’s a problem of incentives: ethical journalists cannot pay sources, but prediction markets <em>do.</em>&nbsp;</p>

<p class="has-text-align-none">Of course, for the insiders to make their money, there must be a steady supply of suckers. And there is! Only <a href="https://papers.ssrn.com/sol3/papers.cfm">about a third of traders actually make profits</a>, and “a large number of traders systematically lose money to a small minority of skilled participants.”</p>

<p class="has-text-align-none">So by partnering with these betting markets, news organizations — from the legacy entities like <em>WSJ</em> or CNN to the burgeoning new media platforms like Substack —&nbsp; have undercut themselves two ways: first, by commodifying information and then by effectively endorsing competitors who <em>can</em> pay for that information; and second, by serving as advertising for prediction markets, making their audience vulnerable to getting ripped off by insiders. It is unclear to me how helping gambling companies rip off your audience serves the public interest, which is, or at least once was, the point of newsgathering.</p>

<figure class="wp-block-pullquote"><blockquote><p>A cynic might suggest that the move to embed betting markets in newsrooms is mere marketing</p></blockquote></figure>

<p class="has-text-align-none">And the public interest is why most of us got into this business in the first place. Most journalists aim to reflect reality back to readers, without any particular interest in whether that makes said reader wealthier. The Fourth Estate, as news organizations are sometimes called, is meant to wield political power by uncovering wrongdoing, embarrassing the government into action. From Enron to Theranos, multiple frauds were first uncovered not by the SEC, but by the press. Back when corruption mattered in politics, many of those scandals — from Watergate to <a href="https://www.justice.gov/usao-edny/pr/ex-congressman-george-santos-sentenced-87-months-prison-wire-fraud-and-aggravated">whatever we want to call George Santos’ whole deal</a> — were also discovered by journalists rather than the Department of Justice.</p>

<p class="has-text-align-none">This is not to say that reporters are always right, or that journalism always achieves its highest calling. I am, after all, old enough to remember the non-existent “weapons of mass destruction” that <em>The New York Times</em> reported on to justify the war in Iraq. But as suggested by my catty little remark about the WMDs, journalists are <em>expected</em> to be accountable for their mistakes. Any reputable newspaper or magazine runs a correction when even a word is off. (That <em>NYT</em> <a href="https://harpers.org/archive/2000/08/a-court-of-no-appeal/">refuses to admit to its major errors</a> is a <a href="https://www.cjr.org/public_editor/nyt-correction-factual-errors-editors-note.php">longstanding area</a> of consternation among <a href="https://www.theverge.com/culture/700082/nyt-mamdani-news-judgment">other journalists</a>.)&nbsp;</p>

<p class="has-text-align-none">Prediction markets, on the other hand, make their money through transaction fees — and thus through volume. In true nihilistic fashion, these markets care <em>less</em> about the outcome of a contract than an actual casino. It is possible to feel betrayed by the various failures of mainstream media, but Kalshi, Polymarket, and Robinhood are only after your money. A cynic might suggest that the move to embed betting markets in newsrooms is mere marketing: an attempt to signal that these are somehow different from, and superior to, casinos. Certainly that’s what I think.</p>

<p class="has-text-align-none">What’s less clear to me is why newsrooms are going along for the ride. (I have my suspicions about why this makes sense to Substack.) Is Dow Jones so strapped for cash that it’s stooped to this? Or is it the case that the people running CNN, CNBC, and Dow Jones truly have gotten so confused by pseudo-events that they no longer understand the difference between concocted media circuses and actual happenings in the world?</p>

<p class="has-text-align-none">I also wonder whether this push to legitimize gambling will undermine trust in people who are trained and accountable, who specialize in writing about reality. In the same way that many audiences prefer pseudo-events to events, we may discover that people prefer the “wisdom” of thousands of anons attempting to predict the future to actual reporting on the current conditions around us. Seems like that’s what Polymarket and Kalshi are betting on, anyway.</p>

<p class="has-text-align-none"></p>
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									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[How the men in the Epstein files defeated #MeToo]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/874721/epstein-thiel-musk-trump-metoo" />
			<id>https://www.theverge.com/?p=874721</id>
			<updated>2026-02-13T16:09:08-05:00</updated>
			<published>2026-02-06T08:00:00-05:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Analysis" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Elon Musk" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[He might be dead, but it sure seems like Jeffrey Epstein won.&#160; Sure, Epstein was arrested on charges of sex trafficking minors. Sure, he died in jail. (I am not going to wade into the debate about how.) But he subscribed to a racist, misogynist ideology that meant rich white men like him could do [&#8230;]]]></summary>
			
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<figure>

<img alt="An image of Jeffrey Epstein with a file redacted behind him. Peeking through the redactions are Donald Trump, Elon Musk, and Peter Thiel" data-caption="The boys’ club | Image: Cath Virginia / The Verge, Getty Images" data-portal-copyright="Image: Cath Virginia / The Verge, Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/02/268318_Epstein_attacked_accountability_with_a_little_help_from_his_anti-woke_friends_CVirginia2.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	The boys’ club | Image: Cath Virginia / The Verge, Getty Images	</figcaption>
</figure>
<p class="has-text-align-none">He might be dead, but it sure seems like Jeffrey Epstein won.&nbsp;</p>

<p class="has-text-align-none">Sure, Epstein was arrested on charges of sex trafficking minors. Sure, he died in jail. (I am not going to wade into the debate about how.) But he subscribed to a racist, misogynist ideology that meant rich white men like him could do whatever they liked. And it seems he took measures to spread it.</p>

<p class="has-text-align-none">The latest tranche of Epstein documents made it obvious. Consider all the “contrarians” and “anti-woke” warriors who show up in the latest dump: <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01027691.pdf">Peter Thiel</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01998027.pdf">Elon Musk</a>, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00517328.pdf">Larry Summers</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01615190.pdf">Steve Bannon</a>, and of course, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01600354.pdf">Donald Trump</a>. With apologies to George Carlin: It’s a big club, and the worst people are in it —&nbsp;because their interests are all aligned. Pushing back on social justice, it turns out, was coordinated.</p>

<p class="has-text-align-none">Being able to see their emails makes something very clear: The “anti-woke” movement was not a genteel intellectual inquiry, made by disinterested parties who cared deeply about free speech. It is a social circle of powerful people who feel threatened by #MeToo. Reading through the emails, it’s possible to see that Epstein himself coordinated pushback against #MeToo. Looking back, it seems obvious that sinking #MeToo also led to where we are now: a place where laws simply don’t apply if you have enough money and power. The same players are involved.</p>

<figure class="wp-block-pullquote"><blockquote><p>How did all these people know each other?</p></blockquote></figure>

<p class="has-text-align-none">Recall the great many pronouncements about the limits and dangers of #MeToo —&nbsp;hilariously, <a href="https://www.nytimes.com/2018/05/08/opinion/intellectual-dark-web.html">Bari Weiss wrote an entire article in <em>The New York Times</em> about “iconoclastic” members of the “intellectual dark web”</a> who “talk constantly about the regressive left but far less about the threat from the right.” Included in this group was a correspondent of Epstein’s: <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00857157.pdf">Sam Harris</a>, to whom Epstein suggested he use “<a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02501693.pdf">more charm and less argument</a>” in debates. Several of the names mentioned in the article would later join Weiss’ abortive attempt at an “independent” school, the non-accredited University of Austin. Much like the group Weiss profiles itself, <a href="https://www.politico.com/news/magazine/2026/01/16/civil-war-university-of-austin-bari-weiss-00729688">the University of Austin would become a tool of the far right</a>.</p>

<p class="has-text-align-none">It is more accurate to understand the “anti-woke” “iconoclasts” as a group of loosely affiliated people with the same goals. This isn’t an abstract intellectual movement about free speech — or we’d be hearing more from these people about the recent <a href="https://www.techdirt.com/2026/02/05/dhs-is-hunting-down-trump-critics-the-free-speech-warriors-are-mighty-quiet/">DHS actions to hunt down critics</a> of Epstein’s old friend, Donald Trump. Besides Trump, there are two key ringleaders: Elon Musk and Peter Thiel. They both appear extensively in the Epstein files, and have good reason to want to remain untouchable.</p>

<p class="has-text-align-none">How did all these people know each other? Epstein’s influence campaign started in the sciences in the early 2000s, with the help of John Brockman, <a href="https://www.wired.com/1999/09/brockman-2/">a powerhouse literary agent</a>, and his <a href="https://www.theguardian.com/technology/2012/jan/08/john-brockman-edge-interview-john-naughton">Edge Foundation</a>, to which <a href="https://www.buzzfeednews.com/article/peteraldhous/jeffrey-epstein-john-brockman-edge-foundation">Epstein was the largest donor</a>. “Foundations associated with Epstein provided $638,000 out of a total of almost $857,000 received by Edge” between 2001 and 2017, without which “the nonprofit’s full range of exclusive events would not have been possible,” according to <em>BuzzFeed News</em>.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>“john the old conferencess did not care about diversity &nbsp; I suggest you not either. the women are all weak ,and a distraction sorry, .”</p></blockquote></figure>

<p class="has-text-align-none">Brockman, who got his start with underground movies and Andy Warhol in the 1960s, wanted Edge “to serve as a forum for big, intriguing and/or disturbing ideas advanced by intellectuals who have a track record of major achievements in their fields,” according to <em>The Guardian. </em>The obvious idea was to influence culture by disseminating those ideas.</p>

<p class="has-text-align-none">The group was, of course, mostly men. The demographics are somewhat explained in the current email dump. In 2018, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01004058.pdf">Epstein wrote to Brockman</a>, “john the old conferencess did not care about diversity &nbsp; I suggest you not either. the women are all weak ,and a distraction sorry, .”</p>

<p class="has-text-align-none">This echoes a long-standing argument — propped up by the likes of <a href="https://www.thecrimson.com/article/2005/2/18/full-transcript-president-summers-remarks-at/">Summers</a> and by <a href="https://www.edge.org/event/the-science-of-gender-and-science-pinker-vs-spelke-a-debate">Steven Pinker</a>, another of <a href="https://www.insidehighered.com/news/2019/07/17/steven-pinkers-aid-jeffrey-epsteins-legal-defense-renews-criticism-increasingly">Epstein’s close associates</a>, in Edge itself — that the lack of women in the sciences isn’t due to discrimination. They simply aren’t interested and/or aren’t good at it. <a href="https://www.theverge.com/2017/8/16/16153740/tech-diversity-problem-science-history-explainer-inequality">This assertion is, obviously, wrong</a>. But it is also in line with the “anti-woke” movement, which is fundamentally against equality. I do have to hand it to Epstein: “the women are all weak” is probably the most honest way of characterizing a large part of the “anti-woke” point of view. Just ask Mark Zuckerberg, who recently declared his company was in need of more “<a href="https://www.theverge.com/2025/1/10/24341117/mark-zuckerberg-facebook-joe-rogan-lies">masculine energy!</a>”</p>

<figure class="wp-block-pullquote"><blockquote><p>Epstein’s association with this group allowed him to launder his reputation</p></blockquote></figure>

<p class="has-text-align-none">Scientists are perhaps one of <a href="https://www.theverge.com/2019/9/19/20870858/jeffrey-epstein-science-philanthropy-donation-prestige-mit">the easiest groups to buy influence with</a>. On top of that,&nbsp; the process of getting a PhD is tightly controlled by the most influential scientists in any given field — so if you argue too much, your career suffers. Summers, whose 2005 speech suggesting women are stupid was <a href="https://www.insidehighered.com/news/2005/02/18/what-larry-summers-said">defended as being an abstract intellectual inquiry</a>, spent time emailing Epstein about how best to <a href="https://www.thecrimson.com/article/2025/11/17/summers-epstein-wing-man-woman-described-as-mentee/">sexually harass a woman he was pretending to mentor</a>.</p>

<p class="has-text-align-none">The boys’ club at the Edge Foundation created a jumping-off point for social contacts for Epstein. Their <a href="https://www.edge.org/event/the-edge-billionaires-dinner-2011">“Billionaires Dinner” in 2011</a>, which <a href="https://www.buzzfeednews.com/article/peteraldhous/jeffrey-epstein-bezos-musk-billionaires-dinner">Epstein attended</a>, featured a number of familiar names that appear in the Epstein files: Musk, <a href="https://www.nytimes.com/live/2026/01/30/us/epstein-files-release/epstein-maxwell-google-sergey-brin?smid=url-share">Sergey Brin</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01777494.pdf">David Brooks</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01872092.pdf">Marissa Mayer</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02438537.pdf">Jeff Bezos</a>, and <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00759004.pdf">Nathan Myhrvold</a> (who <a href="https://www.rollingstone.com/culture/culture-features/jeffrey-epstein-bill-gates-connection-1206453/">would later introduce Epstein to Bill Gates</a>). The <a href="https://www.buzzfeednews.com/article/peteraldhous/jeffrey-epstein-john-brockman-edge-foundation">“Billionaires Dinner” stopped</a> after Epstein made his final donation to Edge.</p>

<p class="has-text-align-none">Brockman also <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00419126.pdf">set up a dinner in 2012</a> with a very exclusive invite list, which included Bezos, Paul Allen, Brin, Anne Wojcicki, Larry Page, Evan Williams, and Myhrvold. “Please show up alone,” Brockman said to Epstein. MIT Media Lab’s Joichi Ito also seems to be willing to broker meetings between Epstein and <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01790823.pdf">Bezos or “Bill.”</a> It’s not clear which Bill is referred to here, but Bill Gates was surely close with Epstein, close enough that <a href="https://www.cnn.com/2026/02/05/politics/kfile-gates-scrutiny-justice-department-documents">the tranche of documents</a> shows extensive contact between the two men.</p>

<figure class="wp-block-pullquote"><blockquote><p>The social consequences, oddly, seem to have freaked these guys out more than anything else</p></blockquote></figure>

<p class="has-text-align-none">Epstein’s association with this group allowed him to launder his reputation —&nbsp;he had, after all, pleaded guilty to “a single state charge of soliciting prostitution from girls as young as 14,” <a href="https://www.miamiherald.com/news/local/article219494920.html#storylink=cpy">according to the<em> Miami Herald</em></a>. But here he was, rubbing elbows with “smart” people, some of whom were even considered cool. For instance, there is a long email chain with artist Neri Oxman, trying to <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA02067503.pdf">coordinate a time to eat together</a>. After a $125,000 donation from Epstein, <a href="https://www.artnews.com/art-news/news/neri-oxman-jeffrey-epstein-13236/">Oxman gave him a piece of her work</a>. (Oxman’s current husband is billionaire Bill Ackman, a loudmouth hedge fund manager who <a href="https://x.com/BillAckman/status/2011224030666506643">recently donated $10,000 to the ICE officer who killed Renee Good</a>.) These networking opportunities also did something else: They brought together a lot of influential figures who could suggest that it’s small-minded and prudish to care about sexual harassment and assault.</p>

<p class="has-text-align-none">The <em>Herald</em> revisited Epstein as part of the #MeToo movement, resulting in his rearrest on sex trafficking charges in 2019. The #MeToo movement was premised on the radical notion that no person is too rich or too powerful to escape the law. Rape is illegal. So’s sexual harassment. Some of the most prominent men accused of misconduct —&nbsp;Epstein, <a href="https://apnews.com/article/harvey-weinstein-sexual-assault-trial-metoo-71d001ebe0fe258af635fca66506b273">Harvey Weinstein</a>, Bill Cosby — did, indeed, face consequences.&nbsp;</p>

<p class="has-text-align-none">There were also social consequences: Powerful men resigned from their jobs in disgrace —&nbsp;or, in some cases, were fired. The men of Silicon Valley did not escape these consequences. Before the Weinstein allegations surfaced, <a href="https://www.bbc.com/news/technology-40352868">Travis Kalanick of Uber was forced out of the company he founded</a>, after a series of reports on a culture of sexual harassment. <em>The New York Times </em>reported on <a href="https://www.nytimes.com/2018/10/25/technology/google-sexual-harassment-andy-rubin.html">a payout Google made to Andy Rubin</a>, the father of Android, after he allegedly coerced an employee into sex; two other executives, <a href="https://www.theverge.com/2019/8/29/20837232/google-david-drummond-chief-legal-officer-cheating-wife-affair-policies">David Drummond</a> and Richard DeVaul, were also insulated from allegations of misconduct. (Both cofounders, Sergey Brin and Larry Page, had dated employees. <a href="https://www.nytimes.com/2024/07/12/technology/eric-schmidt-affair.html">Eric Schmidt,</a> the former CEO who has had multiple <a href="https://nypost.com/2025/10/20/business/eric-schmidts-ex-mistress-31-sues-former-google-ceo-70-over-alleged-stalking-abuse-and-digital-surveillance/">public relationships</a> <a href="https://pagesix.com/2019/03/18/eric-schmidt-dumps-girlfriend-for-also-dating-hedge-fund-founder/">with women</a> who <a href="https://nypost.com/2017/12/21/eric-schmidts-surprise-alphabet-exit-rekindles-womanizing-rumors/">aren’t his wife</a>, hired a mistress as a consultant.) Venture capitalist Justin Caldbeck resigned after multiple female entrepreneurs said he made <a href="http://www.theinformation.com/articles/silicon-valley-women-tell-of-vcs-unwanted-advances">unwanted sexual advances</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>As it happens, holding powerful men to account was also what #MeToo was about</p></blockquote></figure>

<p class="has-text-align-none">The social consequences, oddly, seem to have freaked these guys out more than anything else. That was where the “cancellation” panic came from — a fear that people might use their <a href="https://constitution.congress.gov/browse/essay/amdt1-8-1/ALDE_00013139/">right to freedom of association</a> to avoid people who, for instance, palled around with known pedophiles. It’s not illegal to do that, after all; it’s just gross.</p>

<p class="has-text-align-none">Social consequences are the main ones that matter in the Epstein file drop. Anyone with an internet connection and a little free time can find out who was exchanging friendly emails with an evil man. Take Peter Attia, <a href="https://www.independent.co.uk/news/world/americas/us-politics/cbs-peter-attia-bari-weiss-epstein-60-minutes-b2913369.html">one of Bari Weiss’ newly named contributors to CBS News</a>, who spent a great deal of time sending crass emails to a convicted sex criminal, including, notoriously, one that noted “<a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00833985.pdf">pussy is, indeed, low-carb</a>.” Like many women, I am not interested in taking health advice from a guy who says a bunch of sexist shit, largely because I do not believe he cares about my well-being — and that’s true even without Epstein’s involvement. Rather than bow to “cancel culture” by firing Attia, <a href="https://www.status.news/p/peter-attia-epstein-files-bari-weiss-cbs-news?utm_source=www.status.news&amp;utm_medium=newsletter&amp;utm_campaign=the-weiss-way-or-the-highway&amp;_bhlid=55db9a35edd60cf75a06f9ad8af5ab1bbe9a60ae&amp;last_resource_guid=Post%3A9e4bcef4-0444-436b-9f1e-3e55dfdf6943">Weiss is retaining him</a>, according to <em>Status. </em>But then, Weiss isn’t too worried about Epstein associates —&nbsp;after all, she named lawyer Alan Dershowitz, <a href="https://www.thecrimson.com/article/2025/11/13/epstein-dershowitz-emails/">who represented Epstein</a> and referred to him as a “<a href="https://www.bloomberg.com/news/newsletters/2025-09-26/jeffrey-epstein-s-emails-and-his-hour-of-terror">close friend</a>,” as one of her other new contributors.</p>

<p class="has-text-align-none">Perhaps unsurprisingly, <em>The Free Press</em>, the outlet Weiss founded, has published <a href="https://www.thefp.com/p/the-epstein-saga-rod-dreher-nellie">a series of articles downplaying the importance</a> of the files. The most significant of the three <a href="https://www.thefp.com/p/will-we-regret-the-release-of-the">raises the question of whether we, as a society</a>, will regret the release of these files. The suggestion that they may spread salacious (and untrue) gossip has some merits. But that article is missing a larger point: If Epstein had not escaped federal charges in 2008, there would be no push for the file dump at all. (Indeed, the current president was <a href="https://x.com/TrumpWarRoom/status/1797720117737865557?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1797720117737865557%7Ctwgr%5E8458cc89c0aeb81ae3053ec4b3eea84d5b72ad47%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.aljazeera.com%2Fnews%2F2025%2F11%2F18%2Fhow-donald-trump-shifted-on-releasing-the-jeffrey-epstein-files">in favor of releasing</a> the files before <a href="https://apnews.com/article/trump-epstein-obama-biden-comey-democrats-conspiracies-41c0d5565beb9b50fdac63361f516583">calling their contents “made up”</a> as more reporting <a href="https://www.wsj.com/us-news/law/epstein-birthday-book-congress-9d79ab34">drew attention to the men’s relationship.</a>) Its existence is a response to the public’s distrust in the justice system’s ability to hold powerful men to account. As it happens, holding powerful men to account was also what #MeToo was about.</p>

<figure class="wp-block-pullquote"><blockquote><p>“instead of the friars club , can we do a pariahs club dinnr. woody me moonves wynn charlie matt. louis ck. etc.”</p></blockquote></figure>

<p class="has-text-align-none">Epstein <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02549109.pdf">appeared to be monitoring #MeToo closely</a>, and even, at times, seemed to be the canceled man whisperer. At one point, in an email to the MIT Media Lab’s Ito, he writes, “with all these guys getting busted for harassment , i have moved slightly up on the repuation ladder and have been asked everday for advice etc.” In <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01018033.pdf">a 2018 email, Epstein writes</a>, “instead of the friars club , can we do a pariahs club dinnr. woody me moonves wynn charlie matt. louis ck. etc.”</p>

<p class="has-text-align-none">Epstein kept track of who he might add to the club. For instance, Charlie Rose — who was apparently close enough that Epstein recommended <a href="https://nymag.com/intelligencer/article/jeffrey-epstein-high-society-contacts.html">some women to Rose as assistants</a> — was <a href="https://www.washingtonpost.com/charlie-roses-misconduct-was-widespread-at-cbs-and-three-managers-were-warned-investigation-finds/2018/05/02/80613d24-3228-11e8-94fa-32d48460b955_story.html?utm_term=.56279944984e">accused of sexual harassment</a> by more than two dozen women. When the story broke, Epstein emailed multiple people —&nbsp;including <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02563624.pdf">Summers</a> — <a href="https://www.washingtonpost.com/investigations/eight-women-say-charlie-rose-sexually-harassed-them--with-nudity-groping-and-lewd-calls/2017/11/20/9b168de8-caec-11e7-8321-481fd63f174d_story.html">links to the story</a>. Later he wrote to the journalist Michael Wolff, “saw charlie rose at haircutters/ s=ell shocked.” The publicist <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02535480.pdf">Peggy Siegal emailed Epstein in 2018</a> about Steve Wynn resigning from the Republican National Committee because of accusations of sexual harassment, “The witch hunt goes on.” She suggests Epstein should have “double security” and “wear a wig and a baseball c=p in public.” In 2018, <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02455216.pdf">Steve Bannon emailed Epstein</a> a link to a <em>Business Insider</em> report about Tom Brokaw, who was accused of sexual harassment. “Make sure Woody sees this,” he writes. “Nobody safe.”</p>

<p class="has-text-align-none">Even the relatively minor <a href="https://www.thecut.com/2018/01/moira-donegan-i-started-the-media-men-list.html">“Shitty Media Men” list</a> — a spreadsheet anonymously edited with names of men and accusations against them — makes it into Epstein’s emails. Lorin Stein, the <a href="https://www.nytimes.com/2017/12/06/books/lorin-stein-resigns-the-paris-review.html">disgraced former editor of <em>The</em> <em>Paris Review</em></a> who resigned after accusations of sexual impropriety, forwarded to Wolff an email from the writer Stephen Elliott, who intended to sue the list’s creator since he didn’t know who’d made the accusations against him. <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01025984.pdf">Epstein promises to</a> “help anyway &nbsp; i can.” <a href="https://nymag.com/intelligencer/article/shitty-media-men-lawsuit-moira-donegan-stephen-elliott.html">Elliott sued Moira Donegan</a>, the list’s creator, <a href="https://bsky.app/profile/moiradonegan.bsky.social/post/3mdxpe4tjgs2j">six weeks later.</a></p>

<figure class="wp-block-pullquote"><blockquote><p>“not some young metoo bitch.”</p></blockquote></figure>

<p class="has-text-align-none">The most extensive emailed advice seems to be to physicist Lawrence Krauss. When Krauss was contacted by journalist Peter Aldhous for comment on a <a href="https://www.buzzfeednews.com/article/peteraldhous/lawrence-krauss-sexual-harassment-report"><em>BuzzFeed</em> story about sexual harassment allegations</a>, he <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01018970.pdf">forwarded the email to Epstein</a> and <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00675260.pdf">repeatedly asked him for advice</a> about <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00954988.pdf">how to handle Aldhous</a>. (Krauss strenuously <a href="https://www.nytimes.com/2025/11/21/us/professors-jeffrey-epstein-relationships.html">denies the allegations</a> against him, and says he “sought out advice from essentially everyone I knew”.) Krauss sent <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02525559.pdf">drafts of his proposed emails about the story</a> to Epstein as well. “Impossible to publish anything about metoo, even if the =uthor was acquitted,” <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02622105.pdf">Krauss wrote to Epstein</a>. That was of particular interest to him, because Krauss was planning to write his own #MeToo book, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01023979.pdf">he wrote in another email to Epstein</a>. Later, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA01024235.pdf">he wrote to Epstein</a> that a woman on a conciliation committee is “old.. not some young metoo bitch.” This is good news, Krauss notes.</p>

<p class="has-text-align-none">At one point, Soon-Yi Previn, Woody Allen’s wife and the adopted sister of his children, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00870143.pdf">emails Epstein with the subject line</a> “Did you see this in The New York Times today?” “First time a guy wasn&#8217;t removed from his job right away due to the MeToo movement,” she wrote. “First time a network decided after an investigation to believe their investigation and the guy as opposed to the woman.” It’s not clear from the email what article she is talking about.</p>

<p class="has-text-align-none">Allen and Previn appear to have been close friends with Epstein, and the #MeToo allegations were of personal interest. Ronan Farrow, whose Harvey Weinstein exposé was one of the major features of the movement, is also Allen’s estranged son — and his sister, Dylan, accused Allen of sexually abusing her when she was seven. In a 2017 <em>Los Angeles Times</em> article, <a href="https://www.latimes.com/opinion/op-ed/la-oe-farrow-woody-allen-me-too-20171207-story.html">she asked why the #MeToo movement had spared Allen</a>.</p>

<p class="has-text-align-none">Days later, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00927196.pdf">Wolff wrote to Epstein</a>: “I have a bad feeling about this new Woody round. It =ould pull him into the general Harvey pool of the despised and shunned. Cl=arly what Ronan and company are hoping for. I think Bannon may be right. T=is is not going to end until Trump goes down.”</p>

<figure class="wp-block-pullquote"><blockquote><p>However briefly, it meant money no longer insulated the powerful</p></blockquote></figure>

<p class="has-text-align-none">“Strange time,” <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02549109.pdf">Epstein replied</a>. “I have two mo=e friends up to bat.” Wolff told Epstein those friends won’t be the last, and added, “Big names on the horizon: Michael Douglas, Larry Gagos=an, and still my favorite, Arthur Sulzberger.” In an earlier email, Epstein suggested that Bannon may have “outted” <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00968228.pdf">Sulzberger, but for what isn’t clear</a>. “Pinch sulz your silver bullet,” he wrote.</p>

<p class="has-text-align-none">On December 14th, 2017, Sulzberger announced he was stepping down as the publisher of <em>The New York Times</em>, <a href="https://www.nytimes.com/2017/12/14/business/media/a-g-sulzberger-new-york-times-publisher.html">handing the job off to his son</a><em>.</em> Epstein emailed <a href="https://www.justice.gov/epstein/files/DataSet%2011/EFTA02547343.pdf">Kathy Ruemmler</a> and <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00924757.pdf">Landon Thomas</a> that same day, two identical messages: “Sulzberger —&nbsp;told you.” (Thomas was a <em>New York Times</em> reporter Epstein had cultivated; Thomas had not only <a href="https://nypost.com/2025/11/13/us-news/nyt-reporter-warned-jeffrey-epstein-ex-nypd-detective-was-researching-book-on-him-emails-show/">tipped off Epstein to another journalist’s book</a>, he’d even <a href="https://www.npr.org/2019/08/22/753390385/a-dead-cat-a-lawyers-call-and-a-5-figure-donation-how-media-fell-short-on-epstei">solicited a $30,000 donation from Epstein to a Harlem charity</a>.) As far as I know, Sulzberger has not been accused of wrongdoing.</p>

<p class="has-text-align-none">And all that, I suppose, illustrates how #MeToo <em>actually</em> went too far: However briefly, it meant money no longer insulated the powerful. In 2008, Epstein, who had escaped federal charges via a non-prosecution agreement thanks to Alexander Acosta (who would later become the <a href="https://abcnews.go.com/Politics/alex-acosta-former-us-attorney-negotiated-epsteins-plea/story?id=125731737">Labor Secretary in the first Trump administration</a>), got a private wing in jail, and got to leave 12 hours a day, six days a week, for “work release.” He spent a year under “house arrest,” which somehow included trips on his private jet to Manhattan and the Virgin Islands. But in 2019, the renewed scrutiny from #MeToo landed him in the federal jail where he died awaiting <a href="https://www.justice.gov/usao-sdny/pr/jeffrey-epstein-charged-manhattan-federal-court-sex-trafficking-minors">charges of sex trafficking minors</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>“would have gladly share your expenses for the gawker suit.”</p></blockquote></figure>

<p class="has-text-align-none">That seems to have been a wake-up call to his associates, like Thiel, who set about undermining the movement to make even rich men answerable for their crimes. Thiel’s influence campaign, such as it was, was less about cultural power and more about actual power. It was smarter than Epstein’s. But it also seems, in retrospect, modeled on the Edge Foundation. The so-called “<a href="https://www.thecut.com/2022/02/a-vibe-shift-is-coming.html">vibe shift</a>”&nbsp;— the reemergence of slurs as “edgy,” and feminism as “cringe” — may have been at least partially <a href="https://www.vanityfair.com/news/2022/04/inside-the-new-right-where-peter-thiel-is-placing-his-biggest-bets">funded by Thiel</a>, whose “<a href="https://www.buzzfeednews.com/article/josephbernstein/peter-thiel-anti-woke-film-festival-trevor-bazile">Thielbucks</a>” were <a href="https://www.artnews.com/art-news/news/j-d-vance-dimes-square-the-art-world-new-right-conservatism-1234716130/">rumored to be sprinkled around New York City’s Dimes Square</a>. “Anti-woke” is a convenient label&nbsp;because it obscures what the movement is actually against: accountability.</p>

<p class="has-text-align-none">Thiel’s “vibe shift” required less work than what Epstein was up to, largely because it was something that culture reporters were willing —&nbsp;eager, even — to cover. It also had its own social media apparatus set up, in the assorted podcasts that emerged from the Dimes Square scene. Plus, Thiel already had political power through his superdonor status. The Republican Party had already aligned itself with white nationalism in the 2016 election, when Donald Trump came to power on a platform of blatant racism —&nbsp;backed by Thiel, of course.&nbsp;</p>

<p class="has-text-align-none">Epstein and Thiel’s shared aims are clearest in a 2016 email about <a href="https://www.forbes.com/sites/mattdrange/2019/12/23/best-stories-of-the-decade-behind-peter-thiels-plan-to-destroy-gawker/">Thiel’s successful effort to bankrupt gossip site <em>Gawker</em></a>. <em>Gawker</em> was one of the few publications that wrote about Epstein in the early 2000s, and Epstein evidently held a grudge. “would have gladly share your expenses for the gawker suit,” Epstein wrote. <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01737999.pdf">Thiel responded with a smiley face</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>There is a short jump between contempt for women and eugenics, and an even shorter one from eugenics to actual fascism</p></blockquote></figure>

<p class="has-text-align-none">Epstein was an open eugenicist. For example, in <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00823256.pdf">this astounding exchange</a> with AI researcher Joscha Bach, whose <a href="https://www.bostonglobe.com/2025/11/21/metro/epstein-emails-mit-joscha-bach/">MIT work was funded by Epstein</a>, the two chat in detail about population culling, among <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00823302.pdf">other social engineering thought experiments</a>. (Bach wrote that women “tend to find abstract systems, conflicts and mechanisms intrinsically boring,” which, according to him, is why there are fewer women in the sciences. It seems Epstein had a type.) Bach also said in the exchange that fascism is “the most efficient and rationally stringent way of governance,” adding that it “makes romantic doo-gooders like me very uncomfortable.” Bach is now the executive director of the California Institute for Machine Consciousness, and <a href="https://joscha.substack.com/p/on-the-jeffrey-epstein-affair">in a Substack post about the emails</a>, wrote “I am not interested in supporting racists and sexists in any way.”</p>

<p class="has-text-align-none">I am not particularly interested in what Bach believes. I bring up his exchange because — even as a thought experiment — it so strikingly demonstrates that there is a short jump between contempt for women and eugenics, and an even shorter one from eugenics to actual fascism.</p>

<p class="has-text-align-none">Epstein’s influence on the science and tech world meant he was able to inject his ideas into places where other AI impresarios hung out. Epstein “hoped <a href="https://www.nytimes.com/2019/07/31/business/jeffrey-epstein-eugenics.html">to seed the human race with his DNA by impregnating women</a> at his vast New Mexico ranch,” <em>The New York Times</em> wrote. There’s no evidence this idea was anything more than a fantasy. However, it does bear a significant resemblance to Musk’s army of baby mamas — Musk has 14 known children, and <a href="https://www.wsj.com/politics/elon-musk-children-mothers-ashley-st-clair-grimes-dc7ba05c?gaa_at=eafs&amp;gaa_n=AWEtsqcP81AO-AlI1eeoPmBe0yGLtXgG-Xw1zZM-XYWefmLVhuQR_RPBHuyy&amp;gaa_ts=698128ff&amp;gaa_sig=Rj0awdPsh4NUZYKPq98JUn4NZtmX2x5Ku5exTlmnKSP16HwELPrn0WnZ_Kf8ZAzAuP-TDLGgvS0m6trCQ0bQMA%3D%3D">the true number may be much higher</a>, according to <em>The Wall Street Journal. </em>“He is driven to correct the historic moment by helping seed the earth with more human beings of high intelligence,” the <em>Journal</em> wrote. Musk uses his social network, X, to recruit potential mothers. He reportedly has <a href="https://www.nytimes.com/2024/10/29/business/elon-musk-children-compound.html">a compound for some of those mothers</a> in Austin, Texas.</p>

<figure class="wp-block-pullquote"><blockquote><p>Trump’s second presidency combines influences from both Musk and Thiel</p></blockquote></figure>

<p class="has-text-align-none">The <a href="https://www.theverge.com/ai-artificial-intelligence/855832/grok-undressing-children-csam-law-x-elon-musk">most obvious parallel</a> is Musk’s <a href="https://www.theverge.com/ai-artificial-intelligence/867874/stripe-visa-mastercard-amex-csam-grok">child sexual abuse material machine</a>, Grok. The AI chatbot has been removing clothing from real people, including children, and Musk has been reluctant to stop it. Epstein, in addition to his binders of <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00171832.pdf">compact discs of nudes</a>, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01822395.pdf">often</a> <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01970223.pdf">emailed people</a> <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00881445.pdf">asking for nudes</a> or <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01974621.pdf">requesting they take nudes of others</a>. Chillingly, <a href="https://www.justice.gov/epstein/files/DataSet%204/EFTA00006039.pdf">some of the Epstein files</a> simply say “<a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01697410.pdf">CSAM not scanned</a>.”</p>

<p class="has-text-align-none">Musk has claimed that he hardly knew Epstein, that <a href="https://x.com/elonmusk/status/1972005867580281038">he was invited to Epstein’s island, Little St. James, and refused</a>. But here <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01998027.pdf">he is in the emails</a>, asking Epstein, “What day/night will be the wildest party on your island?” And again, <a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA01752536.pdf">about a year later, asking</a>, “When should we head to your island on the 2nd?” There’s also Epstein asking Musk how many people would be with him for a “<a href="https://www.justice.gov/epstein/files/DataSet%2010/EFTA02000971.pdf">heli to island</a>.” And in 2013, Epstein <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00875135.pdf">emails Musk</a>, “thanks for the tour , you would have had fun at xmas.” “Elon Musk” occurs hundreds of times in the archive, and there are <a href="https://www.nbcnews.com/tech/elon-musk/expressed-interest-visiting-jeffrey-epstein-island-emails-show-doj-rcna256784">at least 16 conversations between Musk and Epstein</a>.</p>

<p class="has-text-align-none">Musk has a long-standing interest in breaking rules — from <a href="https://www.reuters.com/business/autos-transportation/tesla-cited-by-us-regulators-over-workers-death-2025-02-19/">safety violations at Tesla</a> to <a href="https://www.theverge.com/2018/10/16/17983032/elon-musk-sec-securities-fraud-settlement">SEC settlements</a> to <a href="https://www.theverge.com/2018/9/7/17830810/elon-musk-smokes-weed-electric-plane-design-joe-rogan-podcast">publicly smoking weed</a> despite his government contracts to <a href="https://www.theverge.com/2022/7/12/23205624/twitter-sues-elon-musk-acquisition-agreement">attempting to back out of the Twitter acquisition he’d agreed to</a>. Perhaps the only thing he believes is that he should get to do whatever he wants. And he’s had his own brush with #MeToo. A day before <em>Business Insider</em> reported that <a href="https://www.businessinsider.com/spacex-paid-250000-to-a-flight-attendant-who-accused-elon-musk-of-sexual-misconduct-2022-5">he had sexually harassed a flight attendant</a>, <a href="https://www.vanityfair.com/news/2022/05/elon-musk-flight-attendant-sexual-misconduct-allegations?srsltid=AfmBOoo_pWWCVzO2IUFAnQDI_jQeFm6HhqUacPpc72-5mT-zqVyVKy0i">Musk announced</a> he was joining <a href="https://www.latimes.com/business/technology/story/2022-05-18/elon-musk-declares-himself-a-republican-as-his-wealth-shrinks-by-12-billion">the Republican Party.</a> Musk <a href="https://www.wsj.com/business/elon-musk-spacex-employee-relationships-8bca2806">also had a sexual relationship with a SpaceX employee</a>, as well as a former intern at SpaceX, and, in 2013, asked a female employee to have his babies, according to later reporting from <em>The Wall Street Journal</em>.&nbsp;</p>

<p class="has-text-align-none">Trump’s second presidency combines influences from both Musk and Thiel — Musk spent <a href="https://www.nytimes.com/2024/12/05/us/politics/elon-musk-trump-rbg-election.html">more than $250 million on Trump’s election</a>, and Thiel’s protege, JD Vance, is the vice president. Trump, of course, has <a href="https://www.wsj.com/politics/trump-jeffrey-epstein-birthday-letter-we-have-certain-things-in-common-f918d796?gaa_at=eafs&amp;gaa_n=AWEtsqe68F5KMxCSKqteUe-nC1JY3-RiAK24oJ79U8fMTNrAmrhhlYz0KytI&amp;gaa_ts=69812be1&amp;gaa_sig=srzNXrUNicA7Vy_RYludLqvdtkY02HpdYBedStsflpcPp41ObwWFtMr_Y0P6Iv4Zt6nQRh_gzuDBlfVvRgmwzg%3D%3D">his own ties to Epstein</a>, and is also interested in evading the rule of law. Not only was he never held accountable for his role in the January 6th putsch, he has been using his government position to extract more money for himself — either through <a href="https://www.wsj.com/business/elon-musk-spacex-employee-relationships-8bca2806">what look like bribes</a>, or by <a href="https://apnews.com/article/trump-tax-leak-irs-lawsuit-df70440e1a01193c7ea456d41caeb990">suing the IRS directly</a>. He pardoned all of the people who broke into the Capitol at his behest, making it clear that anyone who did what he wanted would suffer no consequences as long as he was in office. Recently, ICE and Customs and Border Protection agents killed two people in Minneapolis. <a href="https://www.nytimes.com/2026/01/13/us/prosecutors-doj-resignation-ice-shooting.html">The <em>victims</em></a> of those shootings are being <a href="https://www.nytimes.com/2026/01/30/us/trump-alex-pretti-agitator-minneapolis-shooting-ice.html">blamed for their own deaths</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>The scale of Trump’s wrongdoing is so vast that the rape and sexual harassment accusations are practically an afterthought</p></blockquote></figure>

<p class="has-text-align-none">The scale of Trump’s wrongdoing is so vast that the rape and sexual harassment accusations are practically an afterthought. And yet at least 28 women have <a href="https://newrepublic.com/post/187761/pageant-queen-beatrice-keul-trump-sexual-assault">accused him of sexual misconduct</a>. One woman claimed to have been <a href="https://www.theguardian.com/us-news/2024/oct/23/donald-trump-accuser-stacey-williams-jeffrey-epstein">groped by Trump while Epstein watched</a>. Among his accusers is his first wife, Ivana Trump, who <a href="https://abcnews.go.com/Politics/donald-trumps-wife-ivana-disavows-rape-allegation/story?id=32732204">said in a 1993 book that Trump had raped her</a>, and then recanted. (Ivana also said, <a href="https://archive.vanityfair.com/article/1990/9/after-the-gold-rush">according to a 1990 <em>Vanity Fair </em>profile</a>, that “he clicks his heels and says, ‘Heil Hitler,’ possibly as a family joke” and that Trump “reads a book of Hitler&#8217;s collected speeches, <em>My New Order</em>, which he keeps in a cabinet by his bed.”) In fact, one of the few times that Trump has faced any repercussions for his actions was when E. Jean Carroll sued Trump for sexually abusing her in 1996 —&nbsp;<a href="https://apnews.com/article/trump-rape-carroll-trial-fe68259a4b98bb3947d42af9ec83d7db">and she won</a>.</p>

<p class="has-text-align-none">That all seems distant now. In Trump’s second term, Musk rummaged through the federal government, installing his henchmen in critical positions, slashing funding to programs he didn’t like and killing investigations into his companies. Trump’s appointment of Robert F. Kennedy Jr. —&nbsp;who has reportedly <a href="https://www.motherjones.com/politics/2025/12/robert-f-kennedy-jr-olivia-nuzzi-sexual-assault-allegation-gloria-allred/">settled sexual misconduct allegations at least twice</a> — as the head of Health and Human Services <a href="https://www.theverge.com/health/661362/rfk-jr-measles-autism">has ushered in policies</a> that look an awful lot <a href="https://www.vanityfair.com/news/story/rfk-jr-vaccines-eugenics">like actual eugenics</a>. Kennedy, it should be noted, was <em>also</em> a friend of Epstein’s, <a href="https://newrepublic.com/post/198416/rfk-jr-photos-partying-jeffrey-epstein">partying with him</a> and <a href="https://www.newsweek.com/robert-f-kennedy-jr-jeffrey-epstein-private-jet-rfk-interview-1849875">flying on his private jet</a>.</p>

<p class="has-text-align-none">Even the release of the files themselves points to the defense of those in power, at the expense of Epstein’s victims. The files were made public well after a congressionally mandated deadline. When they were finally posted, <a href="https://www.bbc.com/news/articles/cn0k65pnxjxo">almost 100 victims were identified</a> in the newly released files, resulting in death threats. The government even <a href="https://www.nytimes.com/2026/02/01/us/nude-photos-epstein-files.html">published unredacted nude photos</a>, some of which may have been of minors. And victims’ advocates claim <a href="https://www.theguardian.com/us-news/2026/feb/03/new-epstein-files-advocates-claim-documents-withheld">there are still files that haven’t been released</a>.</p>

<figure class="wp-block-pullquote"><blockquote><p>We don’t know who Epstein was emailing when he wrote “I loved the torture video.”</p></blockquote></figure>

<p class="has-text-align-none">Some identities<em> were </em>redacted, though. For instance, we don’t know who <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00663685.pdf">Epstein was emailing when he wrote</a> “I loved the torture video.” Or who he was telling in 2009 that that freedom felt “<a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00772923.pdf">fresh, firm, and creamy</a>.” Or <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00705860.pdf">who sent this creepy 2014 email,</a> which reads, “Thank you for a fun night&#8230;Your littlest girl was a little naughty.” Or <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00957551.pdf">this one</a>, from 2013, which offers to introduce Epstein to a Russian friend and says, “she is fun and gorgeous! Ahh&#8230;perfect skin and incredible shape. However, be gentle with her and not a naughty one plz!!!” Or this 2017 email, <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00943491.pdf">which reads</a>, “Naughty ? It&#8217;s like in lingerie ? Just wanna be correct. Thank you for deserts .”&nbsp;</p>

<p class="has-text-align-none">This is what elite impunity looks like, and it is coming directly from the so-called Department of Justice. It’s hard not to read these files and come to the conclusion that Epstein helped engineer the ultimate elite impunity —&nbsp;in which our society has been totally destroyed so the richest and most powerful men in the world can do whatever they want.</p>

<p class="has-text-align-none">It also seems like Epstein may have had <a href="https://www.garbageday.email/p/here-s-how-epstein-broke-the-internet?_bhlid=062f6a97424cd1702f68a54ef6f8eb1a9e8c99e9">some role in the unraveling of democracy</a> in the US. Thiel has long cultivated Curtis Yarvin, a neo-monarchist who is close with JD Vance, and obviously has his own ties with Trump, <a href="https://www.theverge.com/policy/697301/trump-supreme-court-founding-fathers-july-4">who appears to be</a> trying to turn the US <a href="https://www.theverge.com/policy/790510/trump-fascism-antifa-soros-ice">into a dictatorship</a>. Trump is, in the process, weakening the US dollar, freaking out the international community, and otherwise destroying stability.</p>

<p class="has-text-align-none">Of course, that’s an opportunity, as Epstein pointed out to Thiel in 2016. “brexit, just the beginning,” <a href="https://www.justice.gov/epstein/files/DataSet%209/EFTA00824843.pdf">he wrote to Thiel</a>. “return to tribalism . counter to globalization. amazing new alliances. you and I both agreed zero interest rates were too high, and as i said in your office. finding things on their way to collapse , was much easier than finding the next bargain.”</p>

<p class="has-text-align-none">Well, we’re living in the world Epstein wanted. We couldn’t have gotten here without a little help from his friends.</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Payment processors were against CSAM until Grok started making it]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/ai-artificial-intelligence/867874/stripe-visa-mastercard-amex-csam-grok" />
			<id>https://www.theverge.com/?p=867874</id>
			<updated>2026-01-27T03:30:10-05:00</updated>
			<published>2026-01-26T11:32:17-05:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Report" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Twitter - X" /><category scheme="https://www.theverge.com" term="xAI" />
							<summary type="html"><![CDATA[For many years, credit card companies and other payment methods were aggressive about policing child sexual abuse material. Then, Elon Musk’s Grok started undressing children on X. The Center for Countering Digital Hate found 101 sexualized images of children as part of its sample of 20,000 images made by Grok from December 29th to January [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/01/268276_You_can_still_buy_Groks_undressed_images_with_your_credit_card_CVirginia3.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-text-align-none">For many years, credit card companies and other payment methods were aggressive about policing child sexual abuse material. Then, Elon Musk’s Grok started undressing children on X.</p>

<p class="has-text-align-none">The Center for Countering Digital Hate found 101 sexualized images of children as part of its <a href="https://counterhate.com/research/grok-floods-x-with-sexualized-images/">sample of 20,000 images made by Grok</a> from December 29th to January 8th. Using that sample, the group estimated that 23,000 sexualized images of children had been produced in that time frame. Over that 11-day period, they estimated that on average, a sexualized image of a child was produced every 41 seconds. Not all of the sexualized images Grok has produced appear to be illegal, but reports indicate at least <a href="https://www.theverge.com/ai-artificial-intelligence/855832/grok-undressing-children-csam-law-x-elon-musk">some likely cross the line</a>.</p>

<p class="has-text-align-none">There is tremendous confusion about what happens to be true on Grok at any given moment. Grok has offered responses with misleading details, claiming at one point, for instance, that it had <a href="https://www.theverge.com/news/859309/grok-undressing-limit-access-gaslighting">restricted image generation</a> to paying X subscribers while still allowing direct access on X to free users. Though Musk has claimed that new guardrails prevent Grok from undressing people, <a href="https://www.theverge.com/news/862372/x-grok-ai-policy-update-deepfake-bikini-poses">our testing showed that isn’t necessarily true</a>. Using a free account on Grok, <em>The Verge</em> was able to generate deepfake images of real people in skimpy clothing, in sexually suggestive positions, after new rules were supposedly in effect. As of this writing, some egregious prompts appear to have been blocked, but people are remarkably clever at getting around rules-based bans.</p>

<figure class="wp-block-pullquote"><blockquote><p>In the past, payment providers have been aggressive about cutting access to websites thought to have a significant presence of CSAM </p></blockquote></figure>

<p class="has-text-align-none">X does seem to have at least partially restricted Grok’s image editing features to paid subscribers, however —&nbsp;which makes it very likely that for at least some of these objectionable images, money is actually changing hands. You can purchase a subscription to X on Stripe or through the Apple and Google app stores using your credit card. Musk has <a href="https://x.com/elonmusk/status/2007132029704646752?s=20">also suggested</a> through <a href="https://x.com/elonmusk/status/2007133544993435790?s=46&amp;t=fRkDIqgNCkTkvg8ZBiLA9A">his posts</a> that he doesn’t think undressing people is a problem. This isn’t X’s first brush with AI porn, either —&nbsp;it’s repeatedly had a problem <a href="https://www.theverge.com/2024/1/25/24050334/x-twitter-taylor-swift-ai-fake-images-trending">moderating nude deepfakes of Taylor Swift</a>, whether or not they are <a href="https://www.theverge.com/report/718975/xai-grok-imagine-taylor-swifty-deepfake-nudes">generated by Grok</a>.&nbsp;</p>

<p class="has-text-align-none">In the past, payment providers have been aggressive about cutting access to websites thought to have a significant presence of CSAM — or even legal, consensually produced sexual content. In 2020, <a href="https://www.theguardian.com/us-news/2020/dec/10/pornhub-mastercard-visa-rape-child-abuse-images">Mastercard and Visa banned Pornhub</a> after <a href="https://www.nytimes.com/2020/12/04/opinion/sunday/pornhub-rape-trafficking.html">a <em>New York Times</em> article noted the prevalence of CSAM on the platform</a>. In May 2025, Civitai was <a href="https://www.404media.co/civitai-site-used-to-generate-ai-porn-cut-off-by-credit-card-processor/">cut off by its credit card processor</a> because “they do not wish to support platforms that allow AI-generated explicit content,” Civitai CEO Justin Maier told <em>404 Media</em>. In July 2025, <a href="https://www.pcgamer.com/software/platforms/valve-confirms-credit-card-companies-pressured-it-to-delist-certain-adult-games-from-steam/">payment processors pressured Valve into removing adult games</a>. </p>

<p class="has-text-align-none">In fact, at times financial institutions have threatened people and platforms because it seems like they didn’t want reputational risk. In 2014, <a href="https://www.theverge.com/2014/5/19/5731614/money-sex-and-power-how-wepay-triggered-a-web-payments-flamewar">adult performer Eden Alexander’s fundraiser for a hospital stay</a> was shut down by payments company WePay because of a retweet. Also in 2014, JPMorganChase abruptly <a href="https://www.businessinsider.com/porn-star-chase-bank-accounts-2014-4">shut down several porn stars’ bank accounts</a>. In 2021, OnlyFans <a href="https://www.theverge.com/2021/8/24/22639356/onlyfans-ceo-tim-stokely-sexually-explicit-content-ban-banks">briefly tried to ban sexually explicit content</a> because banks didn’t like it. (Widespread backlash to the move <a href="https://www.nbcnews.com/news/us-news/onlyfans-reverses-decision-ban-sexually-explicit-content-after-backlash-n1277595">quickly made OnlyFans reverse itself</a>.) This is <em>legal</em>, <em>consensual</em> sexual content —&nbsp;and it was deemed too hot to handle.</p>

<figure class="wp-block-pullquote"><blockquote><p>“The industry is no longer willing to self-regulate for something as universally agreed on as the most abhorrent thing out there.”</p></blockquote></figure>

<p class="has-text-align-none">But Musk’s boutique revenge porn and CSAM generator is, apparently, just fine.&nbsp;</p>

<p class="has-text-align-none">It’s a striking reversal. “The industry is no longer willing to self-regulate for something as universally agreed on as the most abhorrent thing out there,” which is CSAM, says Lana Swartz, the author of <em>New Money: How Payment Became Social Media</em>, of the inaction by Stripe and the credit card companies.</p>

<p class="has-text-align-none">Visa, Mastercard, American Express, Stripe, and Discover did not return requests for comment. The US Financial Coalition Against Child Sexual Exploitation —&nbsp;an industry group composed of payments processors, banks, and credit card companies — also did not return a request for comment. On its website, FCACSE brags that “As a result of its efforts, the use of credit cards to purchase child sexual abuse content online has been virtually eliminated globally.”</p>

<p class="has-text-align-none">Except, of course, on X.</p>

<figure class="wp-block-pullquote"><blockquote><p><br>Sexualized images of children are not the only problem with Grok’s image generation</p></blockquote></figure>

<p class="has-text-align-none">In the past, “people who did completely legal stuff were cut off from banks,” notes Riana Pfefferkorn, a policy fellow at the Stanford Institute for Human-Centered Artificial Intelligence. There are incentives to overenforce boundaries around questionable images —&nbsp;and traditionally, that’s what the financial industry has done. So why is X different? It’s run by Elon Musk. “He’s the richest man in the world, he has close ties to the US government, and he’s incredibly litigious,” says Pfefferkorn. In fact, Musk has previously filed suit against the Center for Countering Digital Hate; in a now-dismissed lawsuit, <a href="https://www.theverge.com/2023/8/1/23815515/twitter-ccdh-anti-hate-research-group-lawsuit">he claimed it illegally collected data</a> showing an increase in hate speech after he bought the platform formerly known as Twitter.</p>

<p class="has-text-align-none">Sexualized images of children are not the only problem with Grok’s image generation. <em>The New York Times</em> estimated that 1.8 million images the AI generated in a nine-day time period, or about 44 percent of posts, were sexualized images of adult women — which, depending on how explicit they are, can also be illegal to spread. Using different tools, the Center for Countering Digital Hate estimated that more than half of Grok’s images contained sexualized imagery of men, women, and children.&nbsp;</p>

<p class="has-text-align-none">The explosion of sexualized images took place after Musk posted an AI-edited image of himself in a bikini on December 31st. A week later, <a href="https://x.com/nikitabier/status/2008444770071298397">X’s head of product, Nikita Bier, posted</a> that the previous four days were also the highest-engagement days on X ever.&nbsp;</p>

<p class="has-text-align-none">Lawyer Carrie Goldberg, whose history includes challenging Section 230 in a <a href="https://www.cagoldberglaw.com/matthew-herrick-v-grindr-llc/">stalking lawsuit against Grindr</a> and another suit that ultimately <a href="https://www.cagoldberglaw.com/ca-goldberg-pllc-requires-omegle-com-to-shut-down-forever-as-settlement-term-in-product-liability-lawsuit-for-sex-trafficking-our-client/">shut down chat client Omegle</a>, is representing Ashley St. Clair, the mother of one of Musk’s children, in a case against X. St. Clair is one of many women Grok undressed — and <a href="https://www.theverge.com/news/863097/ashley-st-clair-elon-musk-grok-undressing-lawsuit">now she’s suing the platform</a>, arguing that X has created a public nuisance. “In the St. Clair case we are only focused on xAI and Grok because they are so directly liable from our perspective,” she said in an email. “But I could envision other sources of liability.” She specifically cited <a href="https://www.theverge.com/policy/859902/apple-google-run-by-cowards">distributors like Apple and Google’s app stores</a> as areas of interest.</p>

<figure class="wp-block-pullquote"><blockquote><p>“A lot of this could end up in court, and it’s going to be up to judges to make decisions about what’s ‘sexually explicit.’”</p></blockquote></figure>

<p class="has-text-align-none">There are other potential legal wrinkles. In 2022, <a href="https://www.theverge.com/2022/8/1/23287036/visa-mindgeek-pornhub-child-sexual-abuse-videos-court-liability">Visa was sued for offering payment services to Pornhub</a>, because allegedly Visa knew Pornhub wasn’t adequately moderating CSAM. <a href="https://www.reuters.com/legal/transactional/lawsuits-claim-pornhub-visa-hedge-funds-profited-child-abuse-2024-06-14/">Other lawsuits followed</a>. While the judge in the Visa case rejected the claim that Pornhub wasn’t liable because of Section 230, he also <a href="https://www.courthousenews.com/judge-tentatively-dismisses-visa-from-pornhub-sex-trafficking-lawsuits/">tentatively dismissed the claims against Visa in 2025</a>, though the woman who filed suit <a href="https://www.law360.com/articles/2393633/visa-defeats-claims-it-profited-from-child-porn-for-now">could file an amended complaint</a>.&nbsp;</p>

<p class="has-text-align-none">“A lot of this could end up in court, and it’s going to be up to judges to make decisions about what’s ‘sexually explicit,’” says David Evan Harris, a public scholar at the University of California, Berkeley. Still, <a href="https://enoughabuse.org/get-vocal/laws-by-state/state-laws-criminalizing-ai-generated-or-computer-edited-child-sexual-abuse-material-csam/">45 states have criminalized AI-generated CSAM</a>. The federal Take It Down Act <a href="https://www.congress.gov/crs-product/LSB11314">criminalizes deepfake nudes</a>. The state of California has <a href="https://oag.ca.gov/system/files/attachments/press-docs/01-16-26%20Letter%20to%20xAI%20and%20X.pdf">issued a cease and desist to Musk and X</a>, after announcing an investigation into Grok’s images. Grok may be <a href="https://calmatters.org/economy/technology/2026/01/california-investigates-deepfakes-elon-musk-company/">violating California’s deepfake porn ban</a> —&nbsp;and California is just one of at least <a href="https://www.wired.com/story/deepfake-ai-porn-laws/?_sp=5b0a32cc-5b9c-4a81-9cc0-61e8b356aef6.1769123959822">23 states that have passed such laws</a>.</p>

<p class="has-text-align-none">That should matter to payment processors, because if they are knowingly transmitting money that’s the proceeds of a crime, they are engaged in money laundering —&nbsp;which can have serious consequences. The office of California Attorney General Rob Bonta declined to comment on whether Stripe, credit cards, or the app stores were also part of the Grok probe, citing an ongoing investigation. Money laundering laws are part of the reason financial institutions have been so leery of any website that’s been accused of containing CSAM.</p>

<p class="has-text-align-none">X itself has <a href="https://www.nytimes.com/2025/02/12/business/elon-musk-cfpb-x-money.html">ambitions to create a financial service operation</a>, and has been <a href="https://techcrunch.com/2023/12/05/x-is-now-licensed-for-payment-processing-in-a-dozen-u-s-states/">licensed as a money transmitter in several states</a>. It has also <a href="https://www.cnbc.com/2025/01/28/elon-musk-x-visa-digital-wallet.html">partnered with Visa on a digital wallet</a>, and is featured as <a href="https://stripe.com/use-cases/creator-economy">a case study by Stripe for using Stripe’s creator tools</a>.</p>

<p class="has-text-align-none">But X has created a situation where payment processors are hugely disincentivized to take the law seriously. That’s because any state that files suit against processors over X is likely to be attacked by Musk for “censoring” X’s right-wing base. Plus, Musk — and possibly his buddy, US President Donald Trump — could throw a lot of resources behind getting payment processors off the hook.</p>

<p class="has-text-align-none">It seems when it comes to CSAM and deepfakes, the financial industry is no longer willing to regulate itself. So, then, who will regulate it?</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<title type="html"><![CDATA[Tim Cook and Sundar Pichai are cowards]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/policy/859902/apple-google-run-by-cowards" />
			<id>https://www.theverge.com/?p=859902</id>
			<updated>2026-01-14T11:58:59-05:00</updated>
			<published>2026-01-09T16:24:10-05:00</published>
			<category scheme="https://www.theverge.com" term="Antitrust" /><category scheme="https://www.theverge.com" term="Apple" /><category scheme="https://www.theverge.com" term="Column" /><category scheme="https://www.theverge.com" term="Google" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Twitter - X" />
							<summary type="html"><![CDATA[Since X’s users started using Grok to undress women and children using deepfake images, I have been waiting for what I assumed would be inevitable: X getting booted from Apple’s and Google’s app stores. The fact that it hasn’t happened yet tells me something serious about Silicon Valley’s leadership: Tim Cook and Sundar Pichai are [&#8230;]]]></summary>
			
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											<![CDATA[

						
<figure>

<img alt="WASHINGTON, DC - JANUARY 20: Google CEO Sundar Pichai, TikTok CEO Shou Chew, Apple CEO Tim Cook and Tesla and SpaceX CEO Elon Musk speak in the U.S. Capitol Rotunda on January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States. (Photo by Saul Loeb - Pool/Getty Images)" data-caption="The tech moguls in happier times (at Trump’s inauguration.)" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/01/gettyimages-2194388232.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	The tech moguls in happier times (at Trump’s inauguration.)	</figcaption>
</figure>
<p class="has-text-align-none">Since X’s users started using <a href="https://www.theverge.com/ai-artificial-intelligence/855832/grok-undressing-children-csam-law-x-elon-musk">Grok to undress women and children</a> using deepfake images, I have been waiting for what I assumed would be inevitable: X getting booted from Apple’s and Google’s app stores. The fact that it hasn’t happened yet tells me something serious about Silicon Valley’s leadership: Tim Cook and Sundar Pichai are spineless cowards who are terrified of Elon Musk.</p>

<p class="has-text-align-none">Here’s the relevant Apple <a href="https://developer.apple.com/app-store/review/guidelines/#safety">App Store developer guideline</a>: “Apps should not include content that is offensive, insensitive, upsetting, intended to disgust, in exceptionally poor taste, or just plain creepy.” Huh! <em>How about that.</em></p>

<figure class="wp-block-pullquote"><blockquote><p> They sold their principles for power, and now they don’t even control their own companies</p></blockquote></figure>

<p class="has-text-align-none">Here’s Google’s <a href="https://support.google.com/googleplay/android-developer/answer/16810878?hl=en&amp;visit_id=639035836323180675-1019695139&amp;rd=1">version of the same guideline</a>, which is even clearer: “Apps that do not prohibit users from creating, uploading, or distributing content that facilitates the exploitation or abuse of children will be subject to immediate removal from Google Play. This includes all child sexual abuse materials.”</p>

<p class="has-text-align-none">But booting X from these app stores for its flagrant violation of policy means upsetting Musk and the entire right-wing media ecosystem he controls through X — and with it, directly upsetting the <a href="https://www.theverge.com/policy/858075/trump-venezuela-maduro-kidnapping-spectacle">clout-chasing content vampires</a> who currently run the United States. Cook’s Apple has a massive dependency on China, and smartphones, computers, and chips are currently <a href="https://www.theverge.com/news/647666/trump-exempts-smartphones-laptops-chips-tariffs">exempt from the tariffs on China</a>. Cook can present Donald Trump with as many golden gifts as he wants, but those tariffs don’t have to stay that way.&nbsp;</p>

<p class="has-text-align-none">Google’s Pichai is similarly weak. Trump has threatened Google numerous times over his placement in search results, and so far YouTube has managed to mostly avoid scrutiny over its content moderation policies because Pichai has been content to coddle Trump with promises that everything he does is <a href="https://www.theverge.com/2024/10/27/24280799/sundar-sundar-whos-a-great-guy-very-smart">the biggest thing in Google search history</a>. Google also can’t risk upsetting Trump while AI policy remains deeply contested, and having an unhappy Musk influencing that policy is a nightmare of corruption.&nbsp;</p>

<p class="has-text-align-none">This is the trap these men have gotten themselves into: They sold their principles for power, and now they don’t even control their own companies. Welcome to <a href="https://www.theverge.com/2025/1/20/24346317/trump-gangster-tech-regulation-corruption-grift">gangster tech regulation</a>!</p>

<figure class="wp-block-pullquote"><blockquote><p>Apple’s lawyers heavily implied that a naked bananaman called Mr. Peely&nbsp; was somehow inappropriate for court</p></blockquote></figure>

<p class="has-text-align-none">Apple and Google did not respond to requests for comment.</p>

<p class="has-text-align-none">Less than five years ago, I sat through the interminable <a href="https://www.theverge.com/2021/5/3/22412899/epic-apple-trial-rules-investment-app-payment"><em>Epic v. Apple</em> antitrust trial</a>. Real heads will remember that Apple’s lawyers heavily implied that a naked bananaman called Mr. Peely&nbsp; was <a href="https://www.theverge.com/2021/5/10/22429267/epic-v-apple-fortnite-app-store-trial-peely-day-6">somehow inappropriate for court</a>. This came after a week where Apple argued that <a href="https://www.theverge.com/2021/5/7/22425759/epic-apple-trial-app-store-itch-io-offensive-sexualized-unspeakable-games-day-5">an indie storefront that users could install via Epic</a> was a problem because it hosted porny games, calling games on <a href="http://itch.io/">Itch.io</a> “offensive and sexualized.”</p>

<p class="has-text-align-none">You know what’s “offensive and sexualized,” you worthless fucking cowards? Nonconsensual AI-generated images of women in bikinis spreading their legs, and of children with so-called “donut glaze” on their faces — which, by the way, were being generated <a href="https://copyleaks.com/blog/grok-and-nonconsensual-image-manipulation">at a rate of one per minute</a>. I’d also call that “offensive, insensitive, upsetting, intended to disgust, in exceptionally poor taste” and <em>especially </em>“just plain creepy”! Do you need a back brace to stand up straight, buddy? Because at this point, I am certain you haven’t got a single vertebra.</p>

<p class="has-text-align-none">Hey, does anyone else remember when Tumblr got booted from the App Store over <a href="https://www.theverge.com/2018/11/20/18104366/tumblr-ios-app-child-pornography-removed-from-app-store">pornographic images of children</a>? I guess the real problem was that Tumblr wasn’t owned by Musk, not its violation of App Store policy. Whoopsie!</p>

<figure class="wp-block-pullquote"><blockquote><p>Can Apple and Google even identify their values beyond their commitment to “shareholder value”?</p></blockquote></figure>

<p class="has-text-align-none">It is genuinely unbelievable to me that I wasted <em>hours of my actual life</em> on a court case where Apple explained it needed total control of its App Store to protect its users. Total control of the App Store was Apple’s main argument against antitrust enforcement: The company insisted that its monopolistic control of what users could install on their phones was essential to create a walled garden where it could protect children from unsafe content.</p>

<p class="has-text-align-none">Ha! Ha ha ha!!&nbsp;</p>

<p class="has-text-align-none">Does Google have the same problem with its app store, Google Play? Of course it does, and of course it has made all the same arguments as Apple, although it does allow sideloading apps on Android. But it still hasn’t enforced its rules and pushed X to alternative app stores. Why?&nbsp; Hey Google, <a href="https://www.msn.com/en-in/news/world/tech-titans-sundar-pichai-and-elon-musk-share-a-laugh-at-donald-trump-s-inauguration/ar-AA1xwWUt">show me the photo of Sundar Pichai giggling with Elon Musk at Donald Trump’s inauguration</a>!</p>

<p class="has-text-align-none">The only consolation here is that Meta CEO Mark Zuckerberg almost certainly has steam coming out of his ears. Remember when Apple yanked Meta’s App Store enterprise certificate because <a href="https://www.theverge.com/2019/1/31/18206020/apple-facebook-internal-ios-apps-restores-enterprise-certificate">it was taking too much data</a>? Ah yes, those were the days. At this point, it kinda seems like <a href="https://www.theverge.com/news/659301/apple-executive-lied-under-oath-epic-alex-roman">Alex Roman wasn’t the only Apple witness brazenly lying on the stand</a>. </p>

<p class="has-text-align-none">I never want to hear any moral grandstanding from these boys ever again. The next time Tim Cook says “<a href="https://www.nbcnews.com/tech/tech-news/apple-ceo-tim-cook-slams-facebook-privacy-human-right-it-n860816">privacy is a human right</a>,” the only possible response is to laugh in his face. I mean, Apple and Google are fine distributing an app that has created an <a href="https://www.motherjones.com/politics/2026/01/grok-x-musk-deepfake-renee-good-ice/">undressed image Grok made of Renee Nicole Good</a>, the mother who was shot by ICE in Minneapolis. How <em>do</em> you plan to defend getting rid of the <a href="https://www.theverge.com/news/791170/iceblock-app-store-removed-by-apple">ICEBlock app</a> while allowing X to generate degrading images of a woman ICE killed? Can Apple and Google even identify their values beyond their commitment to “shareholder value”? What’s your fucking endgame here, guys?</p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Elizabeth Lopatto</name>
			</author>
			
			<author>
				<name>Sarah Jeong</name>
			</author>
			
			<title type="html"><![CDATA[Blood for stonks]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/policy/858075/trump-venezuela-maduro-kidnapping-spectacle" />
			<id>https://www.theverge.com/?p=858075</id>
			<updated>2026-01-11T15:03:17-05:00</updated>
			<published>2026-01-07T18:38:18-05:00</published>
			<category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Column" /><category scheme="https://www.theverge.com" term="Law" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" />
							<summary type="html"><![CDATA[On December 31st, a brand-new account on Polymarket placed a bet: Nicolás Maduro, the leader of Venezuela, would be out of office by the end of January. It was the first in a series of increasing bets. On January 3rd, the US bombed the Venezuelan capital, kidnapped Maduro and his wife, and killed at least [&#8230;]]]></summary>
			
							<content type="html">
											<![CDATA[

						
<figure>

<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/01/268238_The_Venezuela_attack_is_a_meme_stock_CVirginia2A.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
		</figcaption>
</figure>
<p class="has-drop-cap has-text-align-none">On December 31st, a <a href="https://www.wsj.com/world/americas/maduro-polymarket-bet-a2e5d100?gaa_at=eafs&amp;gaa_n=AWEtsqdSE7inMukTf-1CLiOZ7ZTj3LKv-ZOUbVxHNvkOhopaInhcYwqzkNU9UAeFD0U%3D&amp;gaa_ts=695ed05e&amp;gaa_sig=Ht3t8_c7hl6xPoVI8cu_TdettmTa22belJSnfCO8k0pJCWrQQ_7eGn5IQtQabEHj0HfyxyLGq0TTyq7bas-3AA%3D%3D">brand-new account on Polymarket</a> placed a bet: Nicolás Maduro, the leader of Venezuela, would be out of office by the end of January. It was the first in a series of increasing bets. On January 3rd, the US bombed the Venezuelan capital, kidnapped Maduro and his wife, and killed at least 80 people along the way. The account cashed out with almost half a million dollars.</p>

<p class="has-text-align-none">It would be a misread to describe the surprise invasion of Venezuela as imperial expansion driven by the dictates of capitalism; it is, somehow, worse. Normal capitalism requires a working relationship with reality. Normal capitalism thrives on predictability. The Trump administration is behaving like gambling addicts chasing clout in an attention economy. Venezuela is a fucking meme stock.</p>

<p class="has-text-align-none">And as with meme stocks, it’s hard to pick the most ridiculous part. Kidnapping a head of state? <a href="https://www.justice.gov/opa/media/1422326/dl">Charging that head of state</a>, the commander-in-chief of a foreign military, with “possession of machineguns and destructive devices?” The photo of a <a href="https://x.com/WhiteHouse/status/2007514552091684907?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2007514552091684907%7Ctwgr%5Ef6aefb10d7e46bf204aec479df3af1e88947d272%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.newsweek.com%2Fwar-room-photos-trump-hegseth-rubio-leaders-monitoring-x-11304320">makeshift SCIF at Mar-A-Lago, with an open blackout curtain</a>? The <a href="https://truthsocial.com/@realDonaldTrump/posts/115832487751046400">big screen in the room showing an X account</a>? Secretary of State Marco Rubio calling the operation — which was definitionally an international crime —&nbsp;a “<a href="https://www.npr.org/2026/01/04/g-s1-104485/rubio-says-theres-not-a-war-against-venezuela-despite-u-s-capture-of-maduro">law enforcement</a>” action? Polymarket insider trading on said international crime?</p>

<figure class="wp-block-pullquote"><blockquote><p>America produces the most ghoulish capitalists in the world, and not even they want this</p></blockquote></figure>

<p class="has-text-align-none">Then there’s Donald Trump saying he consulted oil companies on the invasion — but the <a href="https://www.reuters.com/business/energy/trump-administration-has-not-consulted-us-oil-majors-about-venezuela-oil-execs-2026-01-05/">same execs are denying that they knew</a>. In Trump’s defense, a <a href="https://www.politico.com/news/2026/01/03/trump-venezuela-oil-us-companies-return-00709782">Politico</a> report quotes an anonymous petroleum “industry official” saying that there had been an “offer” from the administration on the table for 10 days prior to the attack on Caracas. “They’re saying, ‘you gotta go in if you want to play and get reimbursed.’” But the oil companies, according to the insider, are awfully ambivalent about an entire sovereign nation being annexed to their supposed benefit —&nbsp;“the infrastructure currently there is so dilapidated that no one at these companies can adequately assess what is needed to make it operable.” Another source said that overtures from the Trump administration had been “relatively flatly received” by the industry.</p>

<p class="has-text-align-none">America produces the most ghoulish capitalists in the world, and not even they want this. The oil companies are leery about Venezuela because they are aware that the oil there is sour crude, which “<a href="https://www.cnn.com/2026/01/03/business/oil-gas-venezuela-maduro">requires significant refining</a>” — in other words, complex and expensive infrastructure rather than the decades-old shambles that’s there.</p>

<p class="has-text-align-none">Hence the incredible suggestion from Trump on Monday that the <a href="https://www.bloomberg.com/news/articles/2026-01-05/trump-tells-nbc-us-may-reimburse-firms-for-venezuela-oil-efforts">US government might subsidize the restoration of oil infrastructure</a>. The whole affair reeks of desperation, like Elon Musk <a href="https://www.theverge.com/2022/11/1/23435092/elon-musk-twitter-blue-verification-cost-ads-search">haggling with Stephen King</a> over the price of X Premium. Capital is being lured into justifying the propaganda, rather than the other way around.&nbsp;</p>

<p class="has-text-align-none">We have now arrived at the logical end state of financial nihilism. Meme stocks are sentiment only; whatever happens to the underlying company is irrelevant at best to what happens with the stock price. And despite the death toll, this administration is treating the war on Venezuela as all sentiment, in-jokes, and degen memes. That’s why the war room (war nook?) is just a big TV screen of X.com and war profiteering now consists of Polymarket bets.&nbsp;</p>

<p class="has-text-align-none">This is <em>Wag the Dog</em> staged by idiots who have themselves gotten confused about the difference between image and reality. Real people are dead because a number of powerful people in the US live in a sadistic fantasy, chasing a gambler’s high.&nbsp;</p>

<hr class="wp-block-separator has-alpha-channel-opacity" />

<p class="has-drop-cap has-text-align-none">Perhaps you are thinking, “Surely it cannot be legal to suddenly bomb a country, kidnap its head of state, and annex it? All in the dead of night? Surely not?” If such doubts are running through your mind, you’re in good company — in its judgment in the Nuremberg trials, the tribunal declared that a war of aggression “is the supreme international crime, differing only from other war crimes in that it contains within itself the accumulated evil of the whole.”&nbsp;</p>

<p class="has-text-align-none">As with all meme stocks, enthusiasm for the Venezuela operation exists in an echo chamber. <a href="https://today.yougov.com/politics/articles/53813-americans-are-divided-on-us-military-action-in-venezuela">YouGov polling</a> in the wake of the bombing says that more Americans disapprove than approve of Trump’s handling of Venezuela; in the lead-up, support for military action was “<a href="https://today.yougov.com/politics/articles/53787-scant-american-support-for-military-action-against-venezuela-december-20-22-2025-economist-yougov-poll?_gl=1*19kne83*_up*MQ..*_ga*MTQyMTkxNzQ1OS4xNzY3NzMxNjc4*_ga_X9VN3LD3NE*czE3Njc3MzE2NzYkbzEkZzAkdDE3Njc3MzE2ODAkajU2JGwwJGgw">scant</a>.” But a lot of very powerful people have had their brains completely cooked by the rogue internet forum known as X, and can’t even tell how out of touch they are.&nbsp;</p>

<p class="has-text-align-none">A hallmark of the Trump administration is its apparent inability to <a href="https://www.theverge.com/politics/631078/trump-musk-doge-tesla-internet-tv-politics-spectacle">separate spectacle from reality</a>. A lifetime of television viewing and/or Normal Aging have effectively neutralized Trump’s ability to understand that a television representation is not reality. But since Elon Musk, the so-called “<a href="https://www.wsj.com/livecoverage/trump-inauguration-president-2025/card/spotlight-on-elon-musk-trump-s-first-buddy--2pb9J1UkFyLuPLfLtamW">first buddy</a>,” took over Twitter, a different flavor of spectacle has begun to permeate Trumpism and the Trump administration. </p>

<p class="has-text-align-none">Throughout 2025, <a href="https://cooperlund.medium.com/the-trump-flavored-content-administration-ed7aae22d34b">various political figures performed for X</a>. Consider the photo ops at <a href="https://www.dhs.gov/medialibrary/assets/photo/59679">an El Salvador prison</a>, or the <a href="https://www.whitehouse.gov/gallery/president-trump-participates-in-a-guided-walking-tour-of-alligator-alcatraz/">walking tours of Florida’s very own concentration camp</a>. Most notably, <a href="https://www.washingtonpost.com/technology/interactive/2025/ice-social-media-blitz/">ICE brings along cameras for its actions</a> as a way of attempting to make their horrors go viral. Even as <a href="https://www.theverge.com/policy/790510/trump-fascism-antifa-soros-ice">the administration’s most fascist actions</a> have received <a href="https://www.theverge.com/policy/798491/frog-portland-trump-national-guard">strong real-world pushback</a>, the Trumpist content machine has whirred away, painting a strongman picture for Trump’s supporters.</p>

<figure class="wp-block-pullquote"><blockquote><p>Enthusiasm for the Venezuela operation exists in an echo chamber</p></blockquote></figure>

<p class="has-text-align-none">A tiny fraction of world leaders expressed their wholehearted approval for the Venezuela operation, and they mostly went to X’s echo chamber to do it. “To all the narco chavista criminals, your time is coming. Your structure will completely collapse across the entire continent,” <a href="https://x.com/DanielNoboaOk/status/2007421352719069620">posted Ecuador’s President Daniel Noboa</a>. &#8220;Congratulations, President @realDonaldTrump for your bold and historic leadership on behalf of freedom and justice,” posted Israel’s <a href="https://x.com/netanyahu/status/2007519393249403343">Prime Minister Benjamin Netanyahu</a>, who is currently wanted by the International Criminal Court for war crimes.&nbsp;</p>

<p class="has-text-align-none">In contrast, when Colombia’s <a href="https://x.com/petrogustavo/status/2007356950514729388">President Gustavo Petro</a> took to X right after the bombings to express “deep concern” and Colombia’s “commitment” to the UN Charter, he was met with trolling, including <a href="https://x.com/elonmusk/status/2007529063351759330">from platform owner Elon Musk</a>. Musk has spent the last few days reposting <a href="https://x.com/cb_doge/status/2007564188202479641">crypto influencers</a> praising the war in Venezuela, including <a href="https://x.com/WallStreetApes/status/2007586063876010289">a post by @WallStreetApes</a> with a video that is tagged as AI generated and misleading.</p>

<p class="has-text-align-none">Knowing all this clarifies why an anonymous “centrist House Democrat” might <a href="https://www.axios.com/2026/01/04/maduro-venezuela-democrats-trump-congress">tell <em>Axios</em></a> that &#8220;if you don&#8217;t acknowledge when there is a win for our country, then you lose all credibility,” saying they were surprised at “how negative the response has been&#8221; from other Democrats. This is not consistent with actual polling. Americans at large do not like the Venezuela operation, but maybe more relevantly for a Democratic politician, Democrats <em>really</em> don’t like it. Being “surprised” here is terminal X brain; these are the words of someone who has been infected by the same brainworm as the White House.</p>

<p class="has-text-align-none">Rubio, on the other hand, has spent the last few days insisting that there’s no war, that “<a href="https://abcnews.go.com/ThisWeek/video/1-1-secretary-state-marco-rubio-128886956">this wasn’t an invasion</a>,” that the US is merely going to be “<a href="https://www.cnbc.com/2026/01/04/rubio-explains-how-us-might-run-venezuela-after-maduros-ouster-.html">running policy</a>” in Venezuela rather than actually “run” it, and that Maduro “<a href="https://www.whitehouse.gov/articles/2026/01/rubio-this-is-our-hemisphere-and-president-trump-will-not-allow-our-security-to-be-threatened/">was an illegitimate leader</a>.” These are the mealy-mouthed sophistries of someone who is aware of international law, and is desperately threading the needle.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>Regardless of the deranged, insular fandom of X.com, most of the rest of the world is very much not on board</p></blockquote></figure>

<p class="has-text-align-none">This is with good reason. Regardless of the deranged, insular fandom of X.com, most of the rest of the world is very much not on board. After the initial bombings, a number of countries across the world released carefully phrased <a href="https://www.reuters.com/world/americas/world-reacts-us-strikes-venezuela-2026-01-03/">official statements</a>. Leaders called for “respect” for international law (Peru, Canada, Denmark, the European Commission) or reiterated their own recognition of international law (Bolivia, Germany, the United Kingdom, Japan, Malaysia, Singapore).&nbsp;</p>

<p class="has-text-align-none">Other countries refused to mince words. A joint statement by Brazil, Chile, Colombia, Mexico, Uruguay, and Spain stated that “the military actions carried out unilaterally in the territory of Venezuela … contravene fundamental principles of international law.” And when France’s Emmanuel Macron omitted mention of international law in <a href="https://www.lemonde.fr/en/politics/article/2026/01/05/macron-s-silence-on-venezuela-risk-sounding-like-an-admission-of-powerlessness_6749096_5.html">his official statement</a> (on X), <a href="https://www.lemonde.fr/en/international/article/2026/01/05/macron-criticizes-method-used-in-us-operation-against-venezuelan-leader-maduro_6749103_4.html">other French officials</a> rushed out to flatly emphasize that the Venezuela operation violated international law.&nbsp;</p>

<p class="has-text-align-none">Meanwhile, <a href="https://www.theverge.com/elon-musk/617090/elon-musk-cpac-2025-transcript">Argentinian president</a> and <a href="https://www.aljazeera.com/news/2025/2/18/argentinas-javier-milei-faces-fraud-allegations-over-cryptocurrency-post">crypto hypeman</a> Javier Milei went on a posting bender, excitedly reposting anyone <a href="https://x.com/javierlanari/status/2007926991744582092">criticizing</a> <a href="https://x.com/AmerangelLorenz/status/2007893295218000000">international law</a>, boosting claims that the international legal regime did not care about Maduro’s own tyrannical acts while he was in power.&nbsp;</p>

<p class="has-text-align-none">This would probably be news to Maduro, as there is an ongoing probe into human rights violations alleged to have taken place as far back as 2014 in Venezuela, shortly after he first took power. Just two weeks before Caracas was bombed and Maduro was kidnapped, the Venezuelan government made an earnest attempt <a href="https://www.aljazeera.com/news/2025/12/12/venezuela-seeks-withdrawal-from-international-criminal-courts-rome-statute">to withdraw from the Rome Statute</a>, the treaty that binds its signatories to the authority — as well as protection — of the International Criminal Court. It’s not a terrible leap to assume that Maduro and his allies thought the ICC might be coming for him, and that they had better make like George W. Bush and extract themselves from the strictures of international law — just the sort of idea that appeals to all war criminals right up until the war crimes are done unto them.&nbsp;</p>

<figure class="wp-block-pullquote"><blockquote><p>Trump is now setting fire to the UN Charter, too</p></blockquote></figure>

<p class="has-text-align-none">What Trump has done in Venezuela is much bigger than the Rome Statute and specific atrocities it encompasses. It was not enough to set fire to the US Constitution; Trump is now setting fire to the UN Charter, too. If Trump is allowed to unilaterally declare Maduro’s illegitimacy and spirit him away in the night, then “that’s the end of international law, that’s the end of the U.N. charter, that’s the end of any kind of legal limits on the use of force,” as Yale Law School professor and international law scholar Oona Hathaway <a href="https://www.newyorker.com/news/q-and-a/the-brazen-illegality-of-trumps-venezuela-operation">told <em>The New Yorker</em>’s Isaac Chotiner</a>.&nbsp;</p>

<p class="has-text-align-none">Anyone with a passing familiarity with US history is surely aware of the “not-wars” that the US has been doing for decades, especially in Latin America, where the greatest hits include the CIA assist of the 1973 Chilean coup d&#8217;état, the Iran-Contra affair in Nicaragua, and kidnapping General Manuel Noriega to force a regime change in Panama. (All three of these occurred in previous Republican administrations —&nbsp;Nixon, Reagan, and George H.W. Bush, respectively.) But scholars agree that this is different, and that Maduro’s head-of-state immunity is <a href="https://justiceinconflict.org/2026/01/06/to-prosecute-or-not-to-prosecute-maduros-indictment-head-of-state-immunity-and-the-united-states-instrumentalisation-of-non-recognition/">no small detail</a>. Even the interim leader of Venezuela,&nbsp;recognized by Trump, said Maduro is the country’s “<a href="https://www.nbcnews.com/world/venezuela/delcy-rodriguez-venezuelas-interim-leader-capture-nicolas-maduro-rcna252322">only president</a>” after she was sworn in. &nbsp;</p>

<p class="has-text-align-none">The difference between now and then is far from academic. Our mad king has now taken to <a href="https://www.nytimes.com/2026/01/04/us/politics/trump-cuba-greenland-colombia.html">threatening other nations</a>: Denmark (over Greenland), Mexico, Cuba, and Colombia. It seems he believes that if the US kidnaps a head of state, <a href="https://www.nytimes.com/2026/01/03/us/politics/maduro-venezuela-trump-legal-issues.html">the US now runs that state</a>.</p>

<p class="has-text-align-none">But not even this <em>Sid Meier&#8217;s Civilization</em> view of the world can fully explain why things went down as they did. When the Trump administration kidnapped the Maduros, it was a serious geopolitical action that seemed engineered primarily to play on X. And X is indeed where it played out. The action makes the most sense if we assume the primary purpose of the Maduro kidnapping was to generate content. After all, US forces could simply have assassinated him. Instead, there will be more images of Maduro to release — including <a href="https://www.cnn.com/2026/01/03/us/video/white-house-account-posts-apparent-perp-walk-by-maduro-digvid-vrtc">the perp walk</a>. We learned this lesson over the course of the Forever Wars: There are plenty of images, content, and memes from the arrest of Saddam Hussein. By contrast, the murder of Osama bin Laden generated very little beyond conspiracy theories and a single <a href="https://obamawhitehouse.archives.gov/photos-and-video/photo/2011/05/president-obama-receives-update-situation-room">photograph</a> of President Barack Obama, Secretary Hillary Clinton, and others in the Situation Room.</p>

<p class="has-text-align-none">The Trump administration even tried to engineer their own Situation Room photo, releasing black-and-white images of themselves in what appeared to be a makeshift sensitive compartmented information facility created by use of, uh, what appeared to be blackout curtains.&nbsp;&nbsp;</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/01/Screenshot-2026-01-07-at-3.33.05%E2%80%AFPM.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="A post by the president on &lt;a href=&quot;https://truthsocial.com/@realDonaldTrump/posts/115832487751046400&quot;&gt;TruthSocial&lt;/a&gt;." data-portal-copyright="" />
<p class="has-text-align-none"></p>

<p class="has-text-align-none">But the X bubble’s addiction to content demanded more. Not satisfied with a real Maduro perp walk video, <a href="https://www.nytimes.com/2026/01/05/technology/nicolas-maduro-ai-images-deepfakes.html">AI-generated images</a> of <a href="https://www.usatoday.com/story/news/politics/2026/01/05/false-images-spread-online-after-maduros-capture/88032008007/">fake perp walks</a> flooded the platform. <a href="https://www.cnbc.com/2026/01/06/ai-generated-deepfake-videos-venezuelan-viral-us-military-maduro-misinformation.html">AI-generated videos</a> of Venezuelans celebrating made the rounds. And the White House X account went so far as to post its own version of “Mission accomplished”: <a href="https://x.com/WhiteHouse/status/2007543726521155938">an obviously AI Trump scowling into the camera</a> and ascending toward the viewer, captioned “FAFO,” an initialism for “fuck around and find out.”&nbsp;</p>

<p class="has-text-align-none">This is the inevitable endpoint of terminal X brain. Well before the Venezuela bombings, Trump has <a href="https://www.nytimes.com/interactive/2025/10/21/business/media/trump-ai-truth-social-no-kings.html">heavily relied on AI to communicate with his supporters</a>, including in ways that are likely to conflate fake videos and reality. The platform is rife with people treating signifiers as reality with their heavy use of AI. No representation of an actual event is needed to rile up the masses. The world is not that which is the case, the world is that which is content.&nbsp;</p>

<hr class="wp-block-separator has-alpha-channel-opacity" />

<p class="has-drop-cap has-text-align-none">In 1953, B.F. Skinner — best known for <a href="https://www.smithsonianmag.com/science-nature/bf-skinner-the-man-who-taught-pigeons-to-play-ping-pong-and-rats-to-pull-levers-5363946/">changing the field of psychology forever</a> by mindfucking a bunch of hapless pigeons — described “the pathological gambler” as “the victim of an unpredictable contingency of reinforcement,” <a href="https://www.bfskinner.org/newtestsite/wp-content/uploads/2014/02/ScienceHumanBehavior.pdf">akin to a pigeon</a> contorting itself endlessly in the hopes of receiving unpredictable rewards. There is an argument made by <a href="https://marginalrevolution.com/marginalrevolution/2012/11/a-bet-is-a-tax-on-bullshit.html">some economists</a> and Nate Silver that prediction markets are useful ways of telling the future because they let you know what smart people are willing to wager on. But these economists (pigeons) and Nate Silver (also a pigeon) haven’t accounted for the obvious: Being smart means getting treatment for your gambling addiction, not figuring out fun new ways to bet.&nbsp;</p>

<p class="has-text-align-none">When high-risk, high-payout bets on Polymarket or Kalshi have anything to do with reality, it is likely due to insider trading.</p>

<p class="has-text-align-none">Take, for instance, <a href="https://www.forbes.com/sites/boazsobrado/2025/12/04/alleged-insider-nets-1-million-on-polymarket-in-24-hours/">the account that won more than $1 million by placing bets</a> on Google’s 2025 Year in Search rankings — getting 22 of 23 predictions right. That account’s other trades also revolved around Google, and in November, the account won $150,000 by correctly predicting the day that Google’s Gemini 3.0 would launch. It is possible, though unlikely, that someone simply has remarkably good intuition about what’s going on internally at Google. The obvious answer is that an insider got themselves a bonus.</p>

<figure class="wp-block-pullquote"><blockquote><p>The obvious answer is that an insider got themselves a bonus</p></blockquote></figure>

<p class="has-text-align-none"><a href="https://mason.gmu.edu/~rhanson/insiderbet.pdf">Some people</a> have argued that this is good, actually —&nbsp;because it means information becomes public faster. “If your goal, for 99 percent of people, is to get a signal about what’s happening in the world, you actually want insider information,” <a href="https://www.youtube.com/watch?v=HeFwIsrtgVQ">said Coinbase CEO Brian Armstrong at the <em>NYT</em> DealBook Summit</a>. Why anyone might want to provide liquidity to a market that is stacked against them isn’t made clear. (The answer is that gambling is addictive, and casinos need pigeons.) Nor is it clear that this is the most effective way to make information public. But Armstrong effectively runs a gambling platform, so his incentives are, you know, to promote gambling.</p>

<p class="has-text-align-none">Prediction markets like Polymarket and Kalshi also create an incentive to do the opposite of spreading good information. In November, <a href="https://www.404media.co/unauthorized-edit-to-ukraines-frontline-maps-point-to-polymarkets-war-betting/">a live map tracking the war in Ukraine showed a Russian advance on Myrnohrad on November 15th</a> for just long enough for a Polymarket bet to resolve. The edit was fake, and disappeared after the bet paid out.</p>

<p class="has-text-align-none">It is not difficult to see how prediction markets create other kinds of perverse incentives. One question on Kalshi as of this writing <a href="https://kalshi.com/markets/kxmeasles/measles-cases/kxmeasles-26">involves the number of measles cases this year</a>. A possible outcome is someone betting on “above 10,000” and then unleashing biological warfare. Another is “<a href="https://kalshi.com/markets/kxaaplceochange/tim-cook-leaves-apple/kxaaplceochange">When will Tim Cook leave Apple?</a>” — a question that can be effectively resolved via murder. (The <a href="https://web.archive.org/web/20110514104800/http://www.cypherpunks.to/faq/cyphernomicron/cyphernomicon.html">’90s dream of assassination markets</a> is alive and well on the blockchain!) Sports gambling at least limits such cheating to athletes throwing games; prediction markets’ questions such as “<a href="https://fortune.com/2025/01/09/polymarket-gambling-profit-california-palisades-hollywoord-hills-wildfire-spread-los-angeles/">how far will a California wildfire spread</a>” can be influenced by gamblers aiding the fires or hindering efforts to suppress them. All of these hypotheticals make Ukraine war misinformation seem positively benign.</p>

<p class="has-text-align-none">In the case of Maduro, it’s not clear how widespread the information about the kidnapping was before it occurred. Perhaps Trump is telling the truth, and he did consult oil companies before the operation — in which case, an oil exec (or their assistant) might have made the bet. But if that information was restricted to the Trump administration, the picture gets much worse. That official would have had financial incentive to kidnap Maduro <em>even if it were not in the best interests of the US as a whole.</em> That is the pinnacle of financial nihilism — gambling markets setting political policy. Instead of Blood for Oil, we have Blood for Stonks.</p>

<p class="has-text-align-none">One reason it is nearly impossible for Kalshi or Polymarket to do anything about such trades is that these markets are effectively anonymous. There is no “know your consumer” protocol, and no way to enforce a policy against insider trading, even if the prediction market had one. Polymarket does not, and its <a href="https://www.businessinsider.com/ritchie-torres-insider-trading-ban-polymarket-government-officials-maduro-venezuela-2026-1">CEO, Shayne Coplan, has called insider trading “cool.”</a> Currently, the company is busy <a href="https://www.ft.com/content/985ae542-1ab4-491e-8e6e-b30f6a3ab666">denying that the kidnapping of a head of state amounts to an invasion</a>, refusing to pay out on one of its prediction contracts <em>unless</em> the US military controls part or all of Venezuela.</p>

<figure class="wp-block-pullquote"><blockquote><p>Divorcing the real-world outcomes from the hype machine effectively makes Venezuela a meme stock</p></blockquote></figure>

<p class="has-text-align-none">Divorcing the real-world outcomes from the hype machine effectively makes Venezuela a meme stock, complete with a mechanism for gambling in the form of prediction markets. And the X hype machine is operating in exactly the same way it does for meme stocks and crypto, acting to pump up the legitimacy of the operation with a fire hose of jokes, misinformation, and in-group shibboleths. It’s no wonder that the likes of Elon Musk and Javier Milei are furiously posting and reposting in support of the Venezuela operation; these are men who are particularly prone to boosterism for financial flim-flam, whether it’s <a href="https://www.bloomberg.com/opinion/articles/2023-06-05/elon-musk-had-fun-with-dogecoin">dogecoin</a> or <a href="https://www.reuters.com/world/americas/crypto-worth-99-million-withdrawn-milei-backed-libra-token-researchers-say-2025-02-20/">Libra</a>. Posting through this is second nature.&nbsp;</p>

<p class="has-text-align-none">As of this writing, there is now a Polymarket bet on whether the US will <a href="https://polymarket.com/event/another-us-strike-on-venezuela-on?tid=1767727667402">make another strike on Venezuela</a>, as well as “<a href="https://polymarket.com/event/us-strike-on-colombia-by-january-31">US strike on Colombia by&#8230;?</a>” and “<a href="https://polymarket.com/event/will-trump-acquire-greenland-before-2027?tid=1767727716461">Will Trump acquire Greenland before 2027?</a>” While it is a little funny to imagine the heads of various intelligence services monitoring outlier bets on Kalshi and Polymarket to find out whether the Trump administration really plans to invade Greenland, it also suggests that America’s political apparatus is riddled with gambling-addled Kim Philbys. People have been <a href="https://www.axios.com/2023/04/20/pentagon-leak-war-thunder-discord">leaking secrets on <em>War Thunder</em> forums</a> for online cred for years now. What happens when there’s real money at stake?</p>

<p class="has-text-align-none">It won’t matter that economic analysis by the government of Greenland concluded that oil drilling would “<a href="https://www.reuters.com/business/energy/greenland-puts-an-end-unsuccessful-oil-adventure-2021-07-16/">either deliver low profits or make a loss</a>.” It won’t matter that it is “<a href="https://www.bbc.com/future/article/20250121-the-enormous-challenge-of-mining-greenland">unclear</a>” whether mining for the rare earth metals under its ice is even “economically viable,” due to the complexity of processing those minerals, not to mention the pervasive lack of transportation infrastructure. It won’t matter that invading Greenland would explode NATO, sending the entire global economy into a tailspin. Polymarket will still pay out, assuming you are sufficiently careful about the definition of little words like “invasion.”&nbsp;&nbsp;</p>

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<p class="has-drop-cap has-text-align-none">In the alternate reality constructed by keyboard sycophants, crypto influencers, and Grok, Trump has won a war and is running an enthusiastic, cheering Venezuela. But though Maduro is now in US custody, <a href="https://www.nytimes.com/2026/01/04/world/americas/trump-venezuela-leader-rodriguez-machado.html">the regime has not actually changed</a>. Maduro’s own vice president, Delcy Rodríguez, has taken over the country as interim leader with Trump’s approval. Francisco Santos Calderón, Colombia’s former vice president, has accused Rodríguez of orchestrating <a href="https://www.telegraph.co.uk/world-news/2026/01/04/secret-meetings-point-to-inside-job-to-take-down-maduro/">an inside job</a>: “I’m absolutely certain Delcy Rodríguez handed him over. All the information we have, you start to put it together and say: ‘Oh, this was an operation in which they handed him over.’”</p>

<p class="has-text-align-none">Whatever happened behind the scenes, the de facto result approximates the outcome of a coup d’état, giving the lie to the hype about liberating Venezuela from an illegitimate leader. In 2024, Edmundo González ran for president in place of opposition leader María Corina Machado, who had been <a href="https://www.lemonde.fr/en/international/article/2024/01/27/venezuela-s-supreme-court-disqualifies-opposition-leader-from-running-for-president_6469941_4.html#">banned from appearing on the ballot</a>.&nbsp;González almost certainly won that election, and did so as a reflection of popular support for Machado. (Right after the bombing of Caracas, Polymarket betting on <a href="https://polymarket.com/event/us-recognizes-machado-as-leader-of-venezuela-by-january-31?tid=1767746812811">whether Machado would be recognized</a> as the new leader spiked upward.) But Trump apparently resents Machado for winning the Nobel Peace Prize and has no intention of having her or González take office. In a recent Fox News interview, Machado <a href="https://www.nytimes.com/2026/01/06/world/americas/machado-trump-fox-news.html">offered to share her Nobel with Trump</a>, marking a new nadir in the <a href="https://www.aljazeera.com/opinions/2023/12/2/kissinger-a-war-criminal-with-a-nobel-peace-prize">embarrassing history of the Peace Prize</a>; Polymarket now rates her chances at about 1 percent.&nbsp;</p>

<p class="has-text-align-none">Meanwhile, shortly after taking the reins, Rodríguez <a href="https://www.theatlantic.com/podcasts/2026/01/venezuela-maduro-trump/685501/">gave a speech on television</a> saying “we will never return to being the colony of another empire.” This prompted Trump to <a href="https://www.theatlantic.com/national-security/2026/01/trump-venezuela-maduro-delcy-rodriguez/685497/">respond with a wild threat</a>: “If she doesn’t do what’s right, she is going to pay a very big price, probably bigger than Maduro.”&nbsp;</p>

<p class="has-text-align-none">Even on the face of it, Trump’s fantasy is absurd:&nbsp;How, for instance, will the US “run” Venezuela when <a href="https://www.npr.org/2026/01/05/nx-s1-5666333/trump-claims-u-s-will-run-venezuela-but-there-are-no-troops-in-the-country">it has no troops or diplomats</a> in the country? Much to Trump’s chagrin, Rodríguez is breaking kayfabe — probably because she lives in the real Venezuela and has to deal with real Venezuelans.&nbsp;</p>

<p class="has-text-align-none">Maybe that’s why Trump is sliding back into what he knows best: bribery and extortion. Recently, in a Truth Social post, he announced that “the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil to the United States of America.” The oil will be sold, and any proceeds “will be controlled by me, the President of the United States of America.” Can’t wait to see how Congress, the legislative body that theoretically controls the nation’s purse strings, will respond to this. Perhaps they will confirm another cabinet member.</p>

<p class="has-text-align-none">Meme stocks run on hype, self-deception, and deregulation, and because of their very nature — hollow, nihilistic financial instruments dressed up as jokes — the majority of people who participate wind up losers. The action in Venezuela is destined to end in American humiliation, one way or another. The only real question is how much it will cost us,&nbsp;in lost lives and in broken alliances, before we realize <a href="https://knowyourmeme.com/memes/all-my-apes-gone">all our apes gone</a>.</p>
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