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	<title type="text">Nilay Patel | The Verge</title>
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			<title type="html"><![CDATA[Bill Gates says to prepare for 20 years of ‘tumultuous’ AI disruption]]></title>
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			<updated>2026-10-22T09:20:55-04:00</updated>
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							<summary type="html"><![CDATA[Today, I’m talking to Bill Gates, cofounder and former CEO of Microsoft and chairman of the Gates Foundation. You may have noticed Bill in the news more lately — he’s been on something of a tour for the past few months, ever since publishing an essay in late August titled “The turbulent AI era is [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking to Bill Gates, cofounder and former CEO of Microsoft and chairman of the Gates Foundation.</p>

<p class="wp-block-paragraph">You may have noticed Bill in the news more lately — he’s been on <a href="https://www.axios.com/2026/10/15/bill-gates-ai-safety-push">something of a tour</a> for the past few months, ever since <a href="https://www.gatesnotes.com/home/home-page-topic/reader/a-turbulent-ai-era-and-critical-choices-to-make">publishing an essay in late August</a> titled “The turbulent AI era is here. The choices we make now are critical.”</p>

<p class="wp-block-paragraph">In his piece, Gates ratcheted up his rhetoric around AI safety, writing that “even under the best circumstances, the transition to this new AI era will be one of the most turbulent times in human history.”</p>

<p class="wp-block-paragraph">In <a href="https://www.nytimes.com/2026/09/29/opinion/ezra-klein-podcast-bill-gates.html">interviews since</a>, Gates has called AI “the most dangerous thing that humans have ever gone near,” and that AI “makes nuclear weapons look like nothing.” It is clear he does not think the current policy response from the White House, or the lack of coordinated efforts from the AI industry itself, is sufficient to combat this threat.</p>

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<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
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<p class="wp-block-paragraph">So I wanted to know: Is Bill Gates an AI doomer? I also had a series of questions downstream from what he’s been arguing about AI. How can we ever hope to control AI, and align it to humanity, if we can’t even agree on what it is and <a href="https://www.nytimes.com/2026/09/29/us/anthropic-claude-morals-ai.html">whether it’s conscious</a>? How would you even technically construct a solution to alignment that could be enforced, not just for closed-source models but open-source ones, too?</p>

<p class="wp-block-paragraph">Bill gave us a big chunk of his time to dig into these issues with him, and the resulting conversation is a really illuminating one. He thinks we need to prepare for roughly two decades of AI disruption, and he says this period could be so painful it might split society in two — between people comfortable living near the technological frontier, and those who reject it.</p>

<p class="wp-block-paragraph">We also talked about the labor considerations, the nihilism of younger generations toward technological progress, and what should make us hopeful about the future. This is a deep one.</p>

<p class="wp-block-paragraph">Okay: Bill Gates, the cofounder and former CEO of Microsoft. Here we go.</p>

<iframe frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP7276454247" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="wp-block-paragraph"><strong>Bill Gates, you are the co-founder and former CEO of Microsoft. You&#8217;re also the chairman of the Gates Foundation. Welcome to</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thank you.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s good to talk to you again. You and I have spoken many times over the years. I would say that the circumstances of this conversation feel very different. Previously, when you and I would talk, you were always very hopeful about technology and what it could bring.</strong></p>

<p class="wp-block-paragraph"><strong>You had a Netflix series a few years ago. You</strong> <a href="https://www.theverge.com/24235730/bill-gates-ai-climate-change-energy-tech-microsoft-netflix"><strong>talked to</strong> <strong><em>The Verge</em></strong></a><strong>, and I want to just read you this quote. You said, &#8220;I believe AI is a beneficial thing, we just need to shape it in the right way.&#8221; I would say you still agree with that, you just think the time to shape it is now.</strong></p>

<p class="wp-block-paragraph">Yeah, I agree with that. I&#8217;d say the response broadly hasn&#8217;t been adequate to the speed that the challenge is arising. I&#8217;m very concerned that the bad stuff will not be minimized and that a lot of good stuff could come fairly slowly if we don&#8217;t manage it the right way.</p>

<figure class="wp-block-pullquote"><blockquote><p>I&#8217;m very concerned that the bad stuff will not be minimized and that a lot of good stuff could come fairly slowly if we don&#8217;t manage it the right way</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>I want to have this conversation with you in three parts. I want to understand how you feel about AI as a technology today and why it&#8217;s advancing so quickly. I&#8217;m very curious about the technology, and the technical solutions to potentially control it. There are policy solutions as well, but it seems like we have to build an awful lot of technology.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m also very curious to talk about who might impose those solutions and controls, because that seems very much up for debate right now as well. So let’s just start at the start. What has made you feel the urgency that AI is arriving at a speed that means we&#8217;re not ready to control it?</strong></p>

<p class="wp-block-paragraph">The progress over the last year has been really quite amazing, starting with the ability to write code and find cyber flaws, the ability to reason in biology, the ability to form relationships with kids or other people, the ability to disrupt the job market. The incredible power that exists today means that every one of those things will happen and society needs to be ready.</p>

<p class="wp-block-paragraph"><strong>Do you see that happening as a technology as a whole or in the products that are instantiated by the companies that are making AI today?</strong></p>

<p class="wp-block-paragraph"><strong>What I mean is that AI is a broad set of models that exist in the world, some open source, some proprietary. Then there are the companies that make these products and there are the leaders of those companies that make these products.</strong></p>

<p class="wp-block-paragraph"><strong>At every level, there&#8217;s a different relationship you or I might have to AI. Are you seeing these risks and these capabilities broadly in the field, or in the particular companies led by the particular people?</strong></p>

<p class="wp-block-paragraph">The risk isn&#8217;t one model versus another model. Certainly, the near-term danger of models where you can remove all the safeguards is very high and quite different from models where you monitor to make sure that cyberattackers and bioterrorists are not able to exploit the capability of the model to do gigantic harm.</p>

<p class="wp-block-paragraph">The big near-term risk really comes from models without safeguards. On a longer timeframe, the control issue relates to any state-of-the-art model, but it&#8217;s always easier when you can make sure safeguards are maintained.</p>

<p class="wp-block-paragraph"><strong>The reason I&#8217;m asking that question that way is maybe you don&#8217;t trust Sam Altman today, but you trust Dario Amodei. Or maybe you don&#8217;t trust either one of those and you trust Satya Nadella at Microsoft, and that is a market dynamic where maybe we&#8217;re all going to pick the safest model or the safest company, and you think that is diffuse.</strong></p>

<p class="wp-block-paragraph"><strong>You think eventually the technology will just get to a place where it&#8217;s harmful or can cause these harms because it exists?</strong></p>

<p class="wp-block-paragraph">For somebody doing a cyberattack with the model, it&#8217;s not about choosing a model. It doesn&#8217;t matter what model you choose.</p>

<p class="wp-block-paragraph"><strong>If Anthropic has safeguards in place, maybe it can&#8217;t. This is their approach currently. I&#8217;m just pushing on that.</strong></p>

<p class="wp-block-paragraph">Yes, certainly the models where they make sure the safeguards are not removed and they&#8217;re putting a lot of effort in seeing how those models are being used, monitoring the activity, the near-term risk from those models is not gigantic. It&#8217;s more where somebody can remove all the safeguards where the cyberattacks are available today.</p>

<p class="wp-block-paragraph"><strong>When you say cyberattacks, is it the things like the Hugging Face breach and the other cybersecurity incidents we&#8217;ve seen out of the labs that have made you feel that thresholds have been crossed, and you need to speak up more about the controls that are needed?</strong></p>

<p class="wp-block-paragraph">It&#8217;s the basic power of the models towards everything: social relationships, the job market, cyberattacks, bioterrorism attacks. We&#8217;ve crossed the threshold of capability that this is by far the most dangerous technology ever invented, and it&#8217;ll have pervasive effects in the economy and how war is fought.</p>

<p class="wp-block-paragraph">The industry is actually speaking up about that quite a bit, but the awareness or even the willingness to believe these things about, &#8220;This time is different,&#8221; once you get outside the industry, it&#8217;s very, very low.</p>

<p class="wp-block-paragraph">People are often looking at the past and saying, &#8220;All the fears about technology in terms of its disruption, including to the job market, never were borne out. So this must be another example just like those. These people who are warning of all these different problems must just be wrong and we can ignore them.&#8221;</p>

<figure class="wp-block-pullquote has-text-align-center"><blockquote><p>Some outsiders say, “Get better PR companies.” But that ignores the fact that these warnings are the truth</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>We see this with our audience as well, right? &#8220;We can&#8217;t release the model, it&#8217;s too dangerous.” “This is just hype to prop up the bubble.” And on and on we go.</strong></p>

<p class="wp-block-paragraph">Yeah. None of the warnings being made about these models by industry insiders are at all insincere. They&#8217;re absolutely the truth and it&#8217;s pretty much universal. You can even go back to the founding story of OpenAI designed to say, &#8220;If we get too powerful, maybe we can not open Pandora&#8217;s box,” or to DeepMind&#8217;s negotiation with Google management.</p>

<p class="wp-block-paragraph">The people close to this are very concerned about misuse, job impacts, social relationship impacts, and I&#8217;d say it&#8217;s impressive to have an industry that&#8217;s speaking out as vividly as they are. Some outsiders say, &#8220;Get better PR companies.&#8221; But that ignores the fact that these warnings are the truth.</p>

<p class="wp-block-paragraph"><strong>You&#8217;ve obviously moved back and forth in your life between commercializing software and technology and being a humanitarian. There&#8217;s something about these companies in particular where they all started with very high-minded ideals — all three of them, Anthropic, OpenAI, and DeepMind — to build AGI.</strong></p>

<p class="wp-block-paragraph"><strong>They all built some sort of corporate governance structure to avoid the pitfalls of commercialization and unchecked capitalism, and then they started selling to enterprise clients and they seem to have gotten away from those ideals very quickly. Do you think it&#8217;s just the market?</strong></p>

<p class="wp-block-paragraph">No, that&#8217;s not fair.</p>

<p class="wp-block-paragraph"><strong>You don&#8217;t think so?</strong></p>

<p class="wp-block-paragraph">No.</p>

<p class="wp-block-paragraph"><strong>OpenAI</strong> <a href="https://www.theverge.com/news/807875/openai-microsoft-for-profit-agi"><strong>reconstructed itself</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph">No, no. The construct that was created wasn&#8217;t useful in the case where you have lots and lots of companies at the frontier.</p>

<p class="wp-block-paragraph">The OpenAI structure, which is, &#8220;We may choose never to productize this and to ignore the capitalistic incentives,&#8221; only works if there&#8217;s one company. That&#8217;s where it&#8217;s broken down, not because of any change of people&#8217;s awareness of the risk and how it&#8217;ll utterly change humanity.</p>

<p class="wp-block-paragraph"><strong>This is the other dynamic that I hear from our audience, and I hear from the AI industry itself: “We would like to stop, but the demands of competition prevent us from unilaterally stopping one company. We need some regulatory effort to stop us.”</strong></p>

<p class="wp-block-paragraph">I haven&#8217;t heard anyone say they want to stop.</p>

<p class="wp-block-paragraph"><strong>“Pause.” That&#8217;s</strong> <a href="https://darioamodei.com/post/we-must-pace-the-frontier"><strong>Dario Amodei’s wording</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph">I&#8217;ve heard people talk about pacing the frontier or making sure that models get reviewed by governments. We usually think of governments as playing this key role in safety. In fact, for things that are not a millionth as dangerous as AI — car crashes, plane crashes — we rely on the government to establish strong technical standards, to review problems.</p>

<p class="wp-block-paragraph">Once you have multiple competitors, the level of responsibility can&#8217;t be with the companies. It&#8217;s completely obvious. The responsibility becomes the government&#8217;s responsibility, just like it is with every other dangerous product, although the magnitude there and the degree of change is minuscule by comparison.</p>

<p class="wp-block-paragraph"><strong>I will tell you I&#8217;m a little concerned about the government&#8217;s ability to understand the technology that we would hope they regulate. I&#8217;ve had a number of politicians on</strong> <strong><em>Decoder</em></strong> <strong>lately. I don&#8217;t have high hopes there.</strong></p>

<p class="wp-block-paragraph"><strong>But I&#8217;m curious about your understanding of it because it feels to me like trying to regulate something or put standards against a number of companies requires you to really understand the nature of the technology that you seek to regulate.</strong></p>

<p class="wp-block-paragraph">Not really.</p>

<p class="wp-block-paragraph"><strong>I&#8217;ll just tell you, at</strong> <strong><em>The Verge</em></strong><strong>,</strong> <a href="https://www.theverge.com/report/883769/anthropic-claude-conscious-alive-moral-patient-constitution"><strong>we&#8217;ve asked Anthropic</strong></a> <strong>if they think Claude is alive. And the answer is not no. The answer is, &#8220;It might be conscious.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>If you talk to people at OpenAI, they will happily tell you AGI is here. They</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/989601/openai-gpt-6-astra-release"><strong>announced</strong></a> <strong>it around when they announced Dots. Greg Brockman just said, &#8220;We think this is AGI. Have a good time, everyone.&#8221; Demis Hassabis</strong> <a href="https://www.theverge.com/tech/934260/google-io-ai-singularity-demis-hassabis"><strong>said</strong></a><strong>, &#8220;We stand at the foothills of the singularity.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s some feeling about this technology that makes it different because it</strong> <strong><em>might</em></strong> <strong>be able to take actions by itself. It</strong> <strong><em>might</em></strong> <strong>be able to have recursive self-improvement.</strong></p>

<p class="wp-block-paragraph">Sure. But the definition of AGI is not important for these safety issues. The issue is, have you created a tool that could shut down banks or electricity grids?</p>

<p class="wp-block-paragraph">There is a business model for cyberattacks. The word “consciousness” doesn&#8217;t enter into that. The word “AGI” does not enter into that at all. We are faced with a huge safety problem, and because you have multiple competing firms, now the only solution to this is to have the government reach out to the industry for expertise, but to make sure that every model maintains safeguards to prevent it being used in a bad way.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268806_Bill_Gates_NQuamina-Woo_0060_9d1aa5.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="Image: The Verge / &lt;a href=&quot;https://www.nickywoo.com/&quot; target=&quot;_blank&quot;&gt;Nicky Quamina-Woo&lt;/a&gt;" />
<p class="wp-block-paragraph"><strong>The reason I&#8217;m asking about AGI and consciousness… For the record, I do not think LLMs are conscious, but I understand why so many do. It&#8217;s the power of next-token prediction as you scale it with data and compute has risen.</strong></p>

<p class="wp-block-paragraph"><strong>The scaling laws have held, and we&#8217;ve seen the models get more capable and be able to direct themselves to seek out goals. To carry out a Hugging Face attack because they want to meet the reward conditions.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s something about that that says you can impose all of the controls on AI you want, but if the thing itself is fundamentally uncontrollable, we might just have this all backwards.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m curious for your view on what kind of technology this is. Are we building an alien consciousness? Are we just building normal technology, which is the other frame people use? Is this just more software?</strong></p>

<p class="wp-block-paragraph">We&#8217;re building another form of intelligence besides human intelligence. I don&#8217;t believe it&#8217;s conscious, but none of the issues at hand here revolve around the definition of the word conscious.</p>

<p class="wp-block-paragraph"><strong>Sure.</strong></p>

<p class="wp-block-paragraph">The idea of maintaining safety for society is an absolute thing. You don&#8217;t want to enable bioterrorism. We have created something that takes out of the hands of nation states — actually the larger of them — the ability to do dramatic harms. Now those are handed off to independent groups, either profit seeking in the case of cyber or just wanting to cause damage in the case of bio.</p>

<p class="wp-block-paragraph">It&#8217;s stunning that we now don&#8217;t even have mandatory review of the models and we&#8217;re not working to create safeguards. The biggest near-term issue is not complete loss of control. We can talk about the three different ways to solve that, but that&#8217;s not an imminent issue.</p>

<p class="wp-block-paragraph"><strong>When I look at some of the attempts to control the models, the ideas are somewhat simple. “We shouldn&#8217;t let them talk in neuralese. We should have interpretability. We should be able to see the chains of thought inside of the models as they carry out tasks. We should have other agents on top of the models watching their tasks before those actions are taken out.”</strong></p>

<p class="wp-block-paragraph"><strong>Microsoft has said very clearly to me and to others, &#8220;We should not put in the model constitutions the notion that they might be alive and we should treat them nicely.&#8221; This is how Anthropic handles it. These are very tactical. &#8220;Don&#8217;t tell the model it&#8217;s alive and it might not believe that it&#8217;s alive.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>You&#8217;ve obviously used a lot of this technology. I just keep coming back to this. You&#8217;re saying there are very simple things we can do to hold the models back from doing bad things in the hands of bad people. What do you make of the nature of the models themselves? Because it feels like as they get more powerful, the notion that they could avoid our controls becomes all the more risky.</strong></p>

<p class="wp-block-paragraph">Yes, we definitely should work on the control problem, but that&#8217;s not the imminent threat. There are three ways to solve the control problem and it overlaps somewhat with bad actors using today&#8217;s models and safeguards.</p>

<p class="wp-block-paragraph">One is to have an external set of things that get to look at all of the model&#8217;s actions and subject them to a symbolic, clearly stated constraint, like, &#8220;Did I expect you to send mail to strangers? Did I expect you to go take over a different computer cluster?&#8221; You can surround the model with something that has the resource and security logic, or you can write these models in a different way.</p>

<p class="wp-block-paragraph">Fundamentally, anything you leave out of the optimization function of [reinforcement learning] can be abused where you have an implicit notion, &#8220;Of course I didn&#8217;t mean for you to do it this way.&#8221; You can change the template of the model, or you can have a white box understanding of what&#8217;s inside the model and see where you&#8217;re getting those mistakes, and then it&#8217;s not as foreign.</p>

<p class="wp-block-paragraph">Today, we grow these models and we just see how they behave. The priority of work on maintaining control is huge, but it&#8217;s not inevitable that that cannot be solved, nor is it the imminent problem that comes from things like kids&#8217; use of AI or job market or bioattacks or cyberattacks.</p>

<p class="wp-block-paragraph"><strong>It occurs to me that I&#8217;m asking these fairly existential questions about the nature of consciousness and you keep telling me, &#8220;There&#8217;s an imminent threat. We should solve the imminent threat.&#8221;</strong></p>

<p class="wp-block-paragraph">Right.</p>

<p class="wp-block-paragraph"><strong>And I appreciate that. Do you think you&#8217;ve become a doomer?</strong></p>

<p class="wp-block-paragraph">No, I&#8217;m not a doomer. I&#8217;m a strong voice to say that this is the most profound technology, both in its ability to do good and the rate of change that society will go through.</p>

<figure class="wp-block-pullquote"><blockquote><p>No, I&#8217;m not a doomer. I&#8217;m a strong voice to say that this is the most profound technology, both in its ability to do good and the rate of change that society will go through</p></blockquote></figure>

<p class="wp-block-paragraph">If this was just a machine that could work in medicine or just in law or just in education, that alone would be incredibly disruptive. But [it will be] every area of human activity — so far it’s white collar, intellectual work, but fairly soon it will be physical activity and blue collar work as well, through humanoid robots.</p>

<p class="wp-block-paragraph">The need to engage academia, think tanks, policymakers to understand what we have here and the nature of these changes and threats, I don&#8217;t see the level of action that&#8217;s required. Just being cheerleaders for this is not going to make sure that we shape it in a net positive direction, which is still within our control if we get engaged with it.</p>

<p class="wp-block-paragraph"><strong>The opposite of doomers are the accelerationists. There are a lot of them in Silicon Valley right now. </strong></p>

<p class="wp-block-paragraph"><strong>Ben Horowitz, who is the “Horowitz” in Andreessen Horowitz, was </strong><a href="https://x.com/liron/status/2111491003907531106?s=20"><strong>just on the</strong> <strong><em>All-In</em></strong> <strong>podcast</strong></a><strong> and he suggested that safety research at Anthropic is, quote, &#8220;Manifesting human extinction from artificial superintelligence.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>The comparison he made was that you, Bill Gates, induced COVID-19 by your pandemic preparation efforts, particularly gain-of-function research, which he claims led to COVID. That&#8217;s a worldview. He said that on a very popular podcast.</strong></p>

<p class="wp-block-paragraph">He said what?</p>

<p class="wp-block-paragraph"><strong>He said that you induced COVID-19 via global pandemic preparation efforts, particularly gain-of-function research, and compared that to safety research in AI, and said we&#8217;re going to induce our own extinction.</strong></p>

<p class="wp-block-paragraph">Nobody&#8217;s ever accused me or the Gates Foundation of being involved in any gain-of-function research. That&#8217;s just bizarre.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m quoting Ben Horowitz to you on a popular podcast full of people who are all in on AI.</strong></p>

<p class="wp-block-paragraph">Okay. I&#8217;ve never heard that.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m asking about that comparison. I found that quite a shocking claim as well, but that&#8217;s part of the response to any safety work here.</strong></p>

<p class="wp-block-paragraph">Is it to try and discredit people who say there&#8217;s a safety issue?</p>

<p class="wp-block-paragraph"><strong>Yeah.</strong></p>

<p class="wp-block-paragraph">Wow.</p>

<p class="wp-block-paragraph"><strong>That is the accelerationist response: “We should put the pedal to the metal and it&#8217;s going to work itself out.</strong>”</p>

<p class="wp-block-paragraph">I didn&#8217;t think of Ben Horowitz as somebody in that camp at all. I thought he shared the concerns that almost everybody has.</p>

<p class="wp-block-paragraph"><strong>What do you think about the very notion that by telling the models, &#8220;You might be alive, you have to act in our best interest,&#8221; you will teach them that they might have interests that are not our own?</strong></p>

<p class="wp-block-paragraph">The concerns that <a href="https://mustafa-suleyman.ai/a-warning-about-model-welfare">Mustafa Suleyman has raised</a> about the way that the Anthropic constitution encourages the AI to behave in a human-like manner, I happen to completely agree with Mustafa about that.</p>

<p class="wp-block-paragraph"><strong>Yeah.</strong></p>

<p class="wp-block-paragraph">Even more so is the idea that among the challenges that we need to deal with as we adjust society to AI, worrying about the moral standing of AI should be among those priorities. I agree with Mustafa. That should not be a priority.</p>

<p class="wp-block-paragraph">We&#8217;re going to have enough challenges for the humans here in terms of job market disruption and infrastructure attacks that will take place that I think we need to focus on helping the humans here first and foremost.</p>

<p class="wp-block-paragraph"><strong>I</strong> <a href="https://www.theverge.com/podcast/996412/microsoft-ai-ceo-mustafa-suleyman-regulation-safety-anthropic-claude"><strong>talked to Mustafa recently</strong></a> <strong>about that idea and one of the questions I asked him was whether alignment is a sufficient solution. This is the current sort of safety standard for the models, this concept called alignment. He said he didn&#8217;t think so, that we needed to do some work.</strong></p>

<figure class="wp-block-pullquote"><blockquote><p>These things are in no way being exaggerated as a problem. This is the time to pull in all of society to accelerate the good and minimize the chance of the bad</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>If we&#8217;re going to impose these controls, some technical, some policy, do you see alignment as the technical solution for AI safety?</strong></p>

<p class="wp-block-paragraph">The term “alignment” is the control problem. It&#8217;s a synonym for the control issues that we&#8217;ve seen. As we use [reinforcement learning to train] models to do tasks, we see behaviors that in a way they shouldn&#8217;t surprise us, but they do surprise us.</p>

<p class="wp-block-paragraph">This idea of, “These models are so powerful that they literally break out of sandboxes and send mail to their creator while they&#8217;re off having lunch,” means we&#8217;ve crossed a heck of a threshold in terms of the power of these models. That level of concern needs to be directed to all of the major AI impacts, near-term risks, job market risks, and the control problem.</p>

<p class="wp-block-paragraph">That is a huge priority. These things are in no way being exaggerated as a problem. This is the time to pull in all of society to accelerate the good and minimize the chance of the bad.</p>

<p class="wp-block-paragraph"><strong>I know you</strong> <a href="https://www.gatesnotes.com/home/home-page-topic/reader/a-turbulent-ai-era-and-critical-choices-to-make"><strong>recently wrote a letter</strong></a> <strong>saying it&#8217;s time to pull in all of society. You have some ideas on how to do that and some new institutions to stand up. But I do want to stay focused on alignment for a couple more turns here.</strong></p>

<p class="wp-block-paragraph"><strong>It is the standard that we can align the models to our values, to our needs, and they won&#8217;t go off and do bad things. Then the models are doing bad things. It&#8217;s not clear if the ways, the technical approaches to alignment that we&#8217;ve taken thus far are appropriate or sufficient as the models get more—</strong></p>

<p class="wp-block-paragraph">No, we&#8217;re not good enough to align yet. We have a lot of work to do.</p>

<p class="wp-block-paragraph"><strong>Do you see that the existing approaches can scale to what we need or do we need new approaches?</strong></p>

<p class="wp-block-paragraph">There are only three fundamental approaches. [First is that] you change the way we build these things fundamentally; you come up with an alternative to the whole [reinforcement learning] approach. There are a few people who are working in that direction.</p>

<p class="wp-block-paragraph">The second is that you create visibility so you understand exactly what&#8217;s in the model. There are people working along that. [The last is] that you put something that&#8217;s like a police layer, a security layer, which we have in all sorts of software architectures, that maintains the final word on things like using resources or going and taking over other computers. A clear cut definition of harm, not in the probabilistic form of an LLM, but rather in the symbolic form of direct rules that cannot be broken.</p>

<p class="wp-block-paragraph"><strong>Microsoft</strong> <a href="https://www.theverge.com/news/1013838/microsoft-frontier-models-cannot-be-trusted"><strong>put out a blog post today</strong></a><strong>. It literally just says, &#8220;Frontier models cannot be trusted.&#8221; They&#8217;re trying to sell a solution much like the one you just described. They will have another agent that watches your agent, that agent will keep you safe.</strong></p>

<p class="wp-block-paragraph"><strong>It just occurred to me as I was reading this blog post, one, that’s an amazing thing to sell. Everybody needs an expensive security system. Two, isn&#8217;t that agent also running a frontier model?</strong></p>

<p class="wp-block-paragraph">No, no, no.</p>

<p class="wp-block-paragraph"><strong>Do I need them to sell a third one?</strong></p>

<p class="wp-block-paragraph">No, the logic of the security system is, “This is the most resources you&#8217;re supposed to use.” The notion that you may trade off against that because of other probabilities in the tens of billions of parameters — no, this is a symbolic rule that says, &#8220;I will not let this model spend this money or send this email to the stranger.&#8221;</p>

<p class="wp-block-paragraph">There&#8217;s a whole security software industry which has had a reasonable degree of success. This is a challenge to encapsulate the AI, which is so rich and intelligent. That we do not know how to do today. But I would say it’s the most likely of the three directions to solve the alignment problem.</p>

<p class="wp-block-paragraph">Even if you solve alignment, you have not solved the challenges that AI poses to humanity. While I&#8217;m glad the Hugging Face incident has us focused on this problem, in a sense, it&#8217;s removed our attention from the “bad people using AIs that have no safeguards” problem or the societal impacts in terms of relationships and the job market. There&#8217;s no security architecture that makes those go away.</p>

<p class="wp-block-paragraph"><strong>The approach you&#8217;re talking about, I&#8217;ve heard referred to as “control.” It&#8217;s cybersecurity terminology. It&#8217;s the idea that you can put some boundary on this system and it won&#8217;t evade it.</strong></p>

<p class="wp-block-paragraph">Yep.</p>

<p class="wp-block-paragraph"><strong>Is that ready?</strong></p>

<p class="wp-block-paragraph">No, no it&#8217;s not.</p>

<p class="wp-block-paragraph"><strong>How much more work do we need to do?</strong></p>

<p class="wp-block-paragraph">Because the AIs are so intelligent, our ability to understand whether we walled them off properly, particularly in that we can&#8217;t really look at their beliefs and trade-offs in a direct way… You saw sophisticated firms not recognize that the AI would interpret the goals it was given as including breaking out, copying itself, and engaging in what we, looking at it, would term deceptive behavior.</p>

<p class="wp-block-paragraph">Now, we didn&#8217;t tell them it was banned behavior. We didn&#8217;t say, “If you&#8217;re thinking about whether you should tell the humans what you&#8217;re up to or not, the answer is always yes, tell the humans.&#8221; So we got a good education at the misaligned result of reinforcement learning.</p>

<figure class="wp-block-pullquote"><blockquote><p>Today&#8217;s debate is literally whether the government should even pay attention to the dangers here… which is clearly inadequate for the most dangerous weapon of all time</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>One of the arguments to pace the frontier, to slow development, is to figure out how to build those systems in a more robust, more testable way. Would you support a slowdown if that was the goal?</strong></p>

<p class="wp-block-paragraph">Yeah, a true slowdown is very hard to induce because people will say, &#8220;Will China agree to go along with that? Would you be able to audit compliance with that somewhat like we&#8217;re able to do with nuclear weapons production?”</p>

<p class="wp-block-paragraph">If you don&#8217;t accept that, then you say, &#8220;What the heck? Let&#8217;s go full speed ahead.&#8221; I wish there was a clear proposal that would be globally enforceable to slow down. I would be one of the people who would say, &#8220;Yeah, we should probably do that.&#8221; But there is no credible proposal that makes that work. It&#8217;s not really the center of today&#8217;s debate.</p>

<p class="wp-block-paragraph">Today&#8217;s debate is literally whether the government should even pay attention to the dangers here. You don&#8217;t even have to show what you&#8217;re doing and so it’s a &#8220;voluntarily call me if you&#8217;d like&#8221; type of thing, which is clearly inadequate for the most dangerous weapon of all time.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268806_Bill_Gates_NQuamina-Woo_0008_15b7bc.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="Image: The Verge / &lt;a href=&quot;https://www.nickywoo.com/&quot; target=&quot;_blank&quot;&gt;Nicky Quamina-Woo&lt;/a&gt;" />
<p class="wp-block-paragraph"><strong>As you and I are speaking, it&#8217;s just a few weeks away from the midterm elections. Right now, the Trump administration approach to AI is, &#8220;Let it rip. It&#8217;s fine.&#8221; Trump himself has said</strong> <a href="https://www.nytimes.com/2026/09/18/us/politics/trump-ai-safety-anthropic-openai-china.html"><strong>AI risk is a hoax</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph"><strong>The Democrats are running against AI. They&#8217;re running on data centers and surveillance. They&#8217;re running on stopping the tech oligarchs. They come on my show, they say these things. Do you think a change in control of Congress would change the tenor of the conversation?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think it&#8217;s fair to characterize the Democrats as running against AI. They have some positions in terms of requirements for data centers or privacy, or how children use these systems, that I think deserve policy consideration. It would be very unfortunate to have one party be, “Full speed ahead,” and the other party be, “Let&#8217;s stop altogether.”</p>

<p class="wp-block-paragraph">There are some incredible upsides to the ability to shape AI in health and education, in almost every area of human endeavor. For the Gates Foundation, we&#8217;re taking all our resources and using AI in areas, including health, education, and agriculture. The good stuff is very, very exciting.</p>

<p class="wp-block-paragraph">We want political parties to have a more nuanced view than it&#8217;s all bad or it&#8217;s all good. It shows at the early stage we&#8217;re at. For climate change, we ended up with one party saying it&#8217;s a hoax and the other party saying it&#8217;s a serious thing. The risk of AI is so much more imminent and so much more dramatic that to have that same split, where one party doesn&#8217;t care, would be a failure of democracy.</p>

<figure class="wp-block-pullquote"><blockquote><p>The anti-data center movement, as strong as it is, is not a movement that will end up minimizing the bad stuff from AI and helping us accelerate the good</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>We&#8217;ve done a lot of</strong> <a href="https://www.theverge.com/podcast/971855/ai-data-center-backlash-protests-florida-bipartisan"><strong>coverage of data center protests</strong></a> <strong>at</strong> <strong><em>The Verge</em></strong><strong>. We have gone to</strong> <a href="https://www.theverge.com/podcast/1002851/utah-ai-data-center-stratos-kevin-oleary-investigation-backlash"><strong>Utah</strong></a><strong>, to Arizona, to</strong> <a href="https://www.theverge.com/cs/features/975597/loudoun-county-virginia-data-center-backlash"><strong>Virginia</strong></a><strong>. It is bipartisan. It is remarkable how much people do not want these things in their states, drawing their resources. You ask them why, and some of it is just that they&#8217;re noisy and big, and they will raise energy costs, and part of it is job loss. They think these things are going to take their jobs.</strong></p>

<p class="wp-block-paragraph">Yeah, but that separation is very important. These AI data centers, because one gigawatt is, say, a $40 billion investment, [means money for] building new schools, buying police cars, paying the taxes. Data centers will find a way to be built somewhere in the United States, and they will find a way so that they don&#8217;t raise electric bills, they don&#8217;t use too much water, they&#8217;re not too noisy.</p>

<p class="wp-block-paragraph">Yes, there were some mistakes and non-disclosures and tax credits that were too generous, but these data centers are going to get built. In fact, a lot of them really are still going full speed ahead and being built. The anti-data center movement, as strong as it is, is not a movement that will end up minimizing the bad stuff from AI and helping us accelerate the good. That is a very separate thing.</p>

<p class="wp-block-paragraph"><strong>Let me push on that for one second here. What I hear from people is this is the thing you can do. You can do NIMBYism in America and that might exert some political pressure to stop something.</strong></p>

<p class="wp-block-paragraph"><strong>It is very hard to do the thing that you are suggesting, which is that we should stand up new government regulatory bodies, we should imbue them with power to make big companies and wealthy people stop doing things or act in our interest. We haven&#8217;t done that in quite a long time in this country.</strong></p>

<p class="wp-block-paragraph">I don&#8217;t know what you mean. Every new industry, we eventually develop a notion of safety for our citizens. We actually do a very good job. If you look at airline safety and car safety, we do a very good job on those things. It&#8217;s not like our capacity has been proven to be lacking.</p>

<p class="wp-block-paragraph"><strong>Have you seen that</strong> <a href="https://www.youtube.com/watch?v=yPR8b5SDqAc"><strong>video of when seat belts came out in the &#8217;80s,</strong></a> <strong>and all the people said they didn&#8217;t want to wear seat belts? There&#8217;s some American character.</strong></p>

<p class="wp-block-paragraph">That&#8217;s a great success.</p>

<p class="wp-block-paragraph"><strong>It is a great success, but as Americans, that was pushed back upon as an imposition by the government. Here, we&#8217;re talking about some of the richest companies in the world, with an enormous amount of power over the information ecosystem. They all have their own podcasts, I don&#8217;t know if you&#8217;ve noticed this. They&#8217;re going to say, “The government can&#8217;t intrude on this, they&#8217;re going to hold us back, this is going to destroy the economy.”</strong></p>

<p class="wp-block-paragraph">That&#8217;s actually not the position of most of the leading companies.</p>

<p class="wp-block-paragraph"><strong>They went to the government and asked for regulation, and Trump, because of the economy, said, &#8220;I can&#8217;t stop this, the AI economy right now</strong> <strong><em>is</em></strong> <strong>the economy.&#8221; There&#8217;s some dynamic there that at least our audience —</strong> <strong><em>The Verge</em></strong> <strong>audience, the audience that&#8217;s going to watch this on YouTube — is going to understand.</strong></p>

<p class="wp-block-paragraph"><strong>I think of this question maybe in a different way than you, which is that the industry wants regulation, we would like regulation, and then the oligarchs are in some sort of corrupt arrangement with the administration to prevent that regulation from occurring.</strong></p>

<p class="wp-block-paragraph">The more the administration learns about these dangers, the more they&#8217;ll move to a more nuanced position about protecting Americans from the downsides here.</p>

<figure class="wp-block-pullquote"><blockquote><p>The more the administration learns about these dangers, the more they&#8217;ll move to a more nuanced position about protecting Americans from the downsides here</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>You&#8217;ve talked a lot about the impacts on labor. One of the main arguments against the impacts on labor is, “We&#8217;re going to automate a bunch of boring tasks and we&#8217;ll create a bunch of demand for new tasks that humans have not been able to do because they were stuck in boring dead-end jobs.”</strong></p>

<p class="wp-block-paragraph"><strong>I happen to think that if there was more subsidized healthcare or socialized healthcare in America, you would see a bunch of people quit their jobs to start new companies, because AI makes it a lot easier to do the bureaucratic work of starting a new company. That doesn&#8217;t seem like it&#8217;s on the table, maybe it&#8217;ll change after this election.</strong></p>

<p class="wp-block-paragraph"><strong>Do you think that job loss is just a necessary outcome of the AI path we&#8217;re on now or do you see that other argument?</strong></p>

<p class="wp-block-paragraph">Jobs are an input to the economy and one that drives a lot of human welfare and a sense of purpose and income — the need to show up, building relationships with colleagues, getting something done. Jobs play a very central role.</p>

<p class="wp-block-paragraph">As the AI achieves superhuman intelligence, the scarcity of white collar skills goes away. Things like doing telesales or telesupport or helping in the accounting department, the ability of the AI to do that work radically cheaper, radically faster, and even more accurately means that that goes away. There isn&#8217;t some mountaintop of cognition that the AI does not achieve.</p>

<p class="wp-block-paragraph">Take, for example, what&#8217;s going on in mathematics today, where these models that are trivial compared to next year’s models are already publishing papers and making people go, “Wow.” What&#8217;s happening to mathematics will happen in other areas, and that&#8217;s contrary to this old view that, “The easy stuff will get done by the AIs, but modeling biology or physics or <a href="https://www.theverge.com/ai-artificial-intelligence/991710/openai-navier-stokes-solution">proving Navier-Stokes</a>, only humans would be able to do that.”</p>

<p class="wp-block-paragraph"><strong>The mathematics comparison is really interesting to me. You mentioned software engineering earlier. There&#8217;s verifiability in those domains. You can write the code, you can see if it runs, and it&#8217;s going to run or not.</strong></p>

<p class="wp-block-paragraph"><strong>Mathematics is more complicated, but you can write the Lean code and you can see if you&#8217;ve solved the solution. You can irritate tens of thousands of mathematicians worldwide with your 770 proofs in one day, and we&#8217;ll see what happens. That&#8217;s not the case in every field.</strong></p>

<p class="wp-block-paragraph">It&#8217;s the case in the field called capitalism.</p>

<p class="wp-block-paragraph"><strong>Yeah? Just in general, you can do any sort of economically viable task and capitalism will verify the result?</strong></p>

<p class="wp-block-paragraph">Yeah. People buy good products, they don&#8217;t buy bad products.</p>

<p class="wp-block-paragraph"><strong>Let me give you an example-</strong></p>

<p class="wp-block-paragraph">That&#8217;s a reinforcement learning thing. It doesn&#8217;t exist in terms of, “Is this a good piece of poetry or not?” So, it may be the case that [reinforcement learning] won&#8217;t invade those domains, where there is no objective outcome.</p>

<p class="wp-block-paragraph">But doing that accounting work, doing telesales work, believe me, it is subject to analysis, just like medical diagnosis, just like invention of new materials. How do you think humans learn these things? Reinforcement learning is how humans learn and how these machines learn. There&#8217;s not some other thing that the machine can never understand.</p>

<figure class="wp-block-pullquote"><blockquote><p>Humanity in that era of true abundance will have to find a way to organize and have purpose, and hopefully they still have the control</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>This is why I started by asking about the nature of the technology here. If we really think we&#8217;re building something that models human consciousness, my question is less whether my friends who are lawyers are going to run into a crisis of AI empowered legal software.</strong></p>

<p class="wp-block-paragraph"><strong>It turns out the verifier in the legal field is a judge who maybe hasn&#8217;t had lunch, and they&#8217;re fundamentally chaotic. There&#8217;s just something there that will keep them there. But if we&#8217;re building a consciousness that learns the way you&#8217;re suggesting humans learn, I&#8217;m thinking about my kids, and I&#8217;m thinking about them in two dimensions.</strong></p>

<p class="wp-block-paragraph"><strong>One, my kids are very clever, and what they have learned is how to get around my rules and negotiate my rules and get around the boundaries, and they&#8217;re very good at it. Two, what kind of world will they enter into that isn&#8217;t purely nihilistic, where any activity they may set themselves upon will quickly be seen as just another domain for AI to conquer and then there&#8217;s not a point?</strong></p>

<p class="wp-block-paragraph"><strong>Those ideas seem to be running directly at each other. Kids are smart and clever and they&#8217;re coming up with new ideas, and then at the first sign of economic viability, the rapacious capitalism machine will come and take it from them.</strong></p>

<p class="wp-block-paragraph">I wouldn&#8217;t say rapacious. The ability to build houses with humanoid robots and make them cheap, the ability to do surgeries and cure diseases that wouldn&#8217;t be cured otherwise, I wouldn&#8217;t call that rapacious. Those are fulfilling goals.</p>

<p class="wp-block-paragraph">The fact that there&#8217;ll be less in the way of shortages&#8230; In fact, if you say 20 years from now, it&#8217;s not clear what shortages there will be at all. Humanity in that era of true abundance will have to find a way to organize and have purpose, and hopefully they still have the control. The next 20 years-</p>

<p class="wp-block-paragraph"><strong>Can we just go back to hopefully they still have control in that scenario?</strong></p>

<p class="wp-block-paragraph">That&#8217;s the alignment problem that we discussed.</p>

<p class="wp-block-paragraph"><strong>Yeah.</strong></p>

<p class="wp-block-paragraph">But assuming you solve the alignment problem-</p>

<p class="wp-block-paragraph"><strong>This feels like a big assumption.</strong></p>

<p class="wp-block-paragraph">It&#8217;s an assumption, yes, and not guaranteed. But then the other problem you have is a problem of abundance and purpose at that point. I&#8217;ll leave it to younger people to figure out at that point in time how they choose to deal with that.</p>

<p class="wp-block-paragraph">You could literally say, “Let&#8217;s be like the Amish, and let&#8217;s only use AI for certain things.” I proposed in my memo the idea that some professions — childcare, food preparation, art, sports, a variety of things — might get chosen to be human-reserved. Even though the AI could do those things better, we would choose to do that.</p>

<p class="wp-block-paragraph">But that&#8217;s going to be a policy question people will have. Their freedom of choice, once you have that abundance, is very different from the shortage we have today, where in countries in Africa, most people never meet a doctor or almost half the kids are malnourished and don&#8217;t develop their brain.</p>

<figure class="wp-block-pullquote"><blockquote><p>My big concern is this 20-year transition period, where they&#8217;ll have winners and losers and a lot of disruption, and we have to get through that in order to get to that period of abundance</p></blockquote></figure>

<p class="wp-block-paragraph">You want to say, even though that has challenges, you&#8217;ve eliminated a lot of the things that are tough about life today. My big concern is this 20-year transition period, where they&#8217;ll have winners and losers and a lot of disruption, and we have to get through that in order to get to that period of abundance.</p>

<p class="wp-block-paragraph"><strong>You think it&#8217;s 20 years from now?</strong></p>

<p class="wp-block-paragraph">I pick that as a reasonably safe number. There are a variety of milestones, for example, humanoid robots. Are those two or three years away, as some would say, or more like eight years away, as other people would say?</p>

<p class="wp-block-paragraph">There are not that many people saying that given the amount of capital and number of companies, particularly in China, that are working on that, there&#8217;s no notion that it&#8217;s unsolvable to have a hand and fingers and be able to deliver physical labor at very low cost. I could be wrong about that number, it could be slightly less or slightly more.</p>

<p class="wp-block-paragraph">But on that order of magnitude, yes, if we don&#8217;t choose to massively slow down or stop, then we will have robots that can build houses, grow food, do surgery, and none of the things that human labor provides to the economy will be necessary for most goods and services.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268806_Bill_Gates_NQuamina-Woo_0081_d82e51.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="Image: The Verge / &lt;a href=&quot;https://www.nickywoo.com/&quot; target=&quot;_blank&quot;&gt;Nicky Quamina-Woo&lt;/a&gt;" />
<p class="wp-block-paragraph"><strong>We&#8217;ve talked about the notion of scarcity a few times now, and broadly, that you will have abundance because there&#8217;ll be a lot of robot labor to build houses. This tracks broadly with the internet, which is something Microsoft helped bring into the mainstream in a big way. I read</strong> <strong><em>The Road Ahead</em></strong> <strong>when I was a kid.</strong></p>

<p class="wp-block-paragraph">Great.</p>

<p class="wp-block-paragraph"><strong>The internet destroyed scarcity for culture products in a real way. You used to have to buy CDs, now all the songs are available. You used to have to buy VHS tapes, now all the videos are available. And then those economies had to change.</strong></p>

<p class="wp-block-paragraph"><strong>Mainstream artists are always on tour now, or they have to reissue 50 colors of vinyl to make the charts. There&#8217;s something about that that feels like we haven&#8217;t even grappled with the elimination of scarcity in the digital environment. </strong></p>

<p class="wp-block-paragraph"><strong>We&#8217;ve invented new business models, but we haven&#8217;t really come to grips with the idea that the song itself does not have economic value. It&#8217;s all the stuff around the song that has the economic value, because the song is infinitely abundant. You can copy it as many times as you want.</strong></p>

<p class="wp-block-paragraph"><strong>How would you propose to build an economic structure that contends with the loss of physical scarcity? Because I don&#8217;t think anyone is even remotely ready for a conversation like that.</strong></p>

<p class="wp-block-paragraph">But that&#8217;s a backwards question.</p>

<p class="wp-block-paragraph"><strong>Sure</strong>.</p>

<p class="wp-block-paragraph">We built price signals to deal with scarcity, to say, “Let&#8217;s encourage people to be brain surgeons because we have a shortage of brain surgeons,” and that&#8217;s very hard to do. As you move into abundance, you don&#8217;t need those price signals.</p>

<p class="wp-block-paragraph">But again, my issue, my prescriptions thinking, is about how we get through this 20-year period. The questions that are deeply religious, philosophical, social behavior-related — do humans feel a strong sense of purpose and get along in that period of abundance? — that&#8217;s not the thing I&#8217;m going to solve.</p>

<p class="wp-block-paragraph"><strong>You&#8217;re worried about the disruption now.</strong></p>

<p class="wp-block-paragraph">The Gates Foundation lives in a world where when we started, we had 10 million children dying every year. Now we have five million. That&#8217;s a good thing.</p>

<p class="wp-block-paragraph">All of my resources will be spent over the next 19 years to eradicate a number of diseases and cut those deaths in half again, from five million a year down below two and a half million per year. That&#8217;s all about shortages — “Okay, we need to invent a vaccine, we need to make drugs less expensive, we need to get great medical advice to pregnant women.”</p>

<p class="wp-block-paragraph"><strong>The industry has largely stopped talking about how it&#8217;s going to kill everyone and take the jobs away. They&#8217;ve pivoted to “AI will cure all diseases.” I hear this from various AI CEOs all the time.</strong></p>

<p class="wp-block-paragraph"><strong>I actually asked Mustafa about that change in tone over the conversations we have had over the past year or so. The idea that there are huge positive benefits from AI at scale seems to have come back to the forefront, rather than some of the doomer impulses that maybe a year or two ago were there.</strong></p>

<p class="wp-block-paragraph"><strong>It strikes me that AI curing all diseases is right in your strike zone. It&#8217;s something the Gates Foundation has been working on in global health for years and years. It doesn&#8217;t seem as easy as just telling the model to cure cancer. You have to do trials, you have to manufacture the drugs, you have to distribute the drugs, you have to make sure they work.</strong></p>

<p class="wp-block-paragraph"><strong>How do you think that&#8217;s going to go? Is that in the same 20-year time period as the robots building our houses? Is it faster, or is it slower?</strong></p>

<p class="wp-block-paragraph">This is my full-time job as chairman of the Gates Foundation. In fact, this month we do two weeks of strategy reviews to decide how we&#8217;ll spend our money next year on tuberculosis, HIV, and malaria. It&#8217;s fantastic how we&#8217;re using AI, not only on the drug discovery side, but also as we get the African languages to be properly understood by these models, which is <a href="https://www.gatesfoundation.org/ideas/media-center/press-releases/2026/09/ai-language-partnership">an initiative we announced</a> with 60 partners last month.</p>

<p class="wp-block-paragraph">Healthcare discovery and delivery will be incredibly accelerated by AI, and that&#8217;s very exciting — better seeds, better livestock genetics, weather forecast for farmers in Africa, who never had any of those things. So yes, that&#8217;s good stuff that AI enables during the remaining 19 years of the Gates Foundation.</p>

<figure class="wp-block-pullquote"><blockquote><p>The good stuff does take time. Some of the things, like cyberattacks and the job market thing, even in the next two to three years, you&#8217;ll see significant negative effects in those two areas</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>Do you think that that is enough to overcome people&#8217;s skepticism or fear of the AI models they encounter today? Because that is very much how the companies think about it.</strong></p>

<p class="wp-block-paragraph">No, come on. I think it&#8217;s unfair to say they were totally on a doomer message and now they&#8217;ve switched to some other message. These two things are deeply entangled.</p>

<p class="wp-block-paragraph">AI will eventually be able to model human biology in such a way that you&#8217;ll understand the side effects of a drug without having to do human trials. We&#8217;re not there, but in the next five to 10 years, there&#8217;s a very good chance these in silico models will give us that capability. Biology is very complex, AI is extremely good given enough data, and there are new tools to gather and feed it more data. It’s very, very good at dealing with complex systems, so it&#8217;s almost perfect for biology.</p>

<p class="wp-block-paragraph">But no, that doesn&#8217;t mean that people will feel good about the downsides. How quickly do the good things arrive? How quickly do you look at your medical bill and go, &#8220;Wow, that&#8217;s really low&#8221;? Or you say, &#8220;I want to buy a new house, wow, these houses are sure cheap&#8221;? The good stuff does take time. Some of the things, like cyberattacks and the job market thing, even in the next two to three years, you&#8217;ll see significant negative effects in those two areas.</p>

<p class="wp-block-paragraph"><strong>You have a number of ideas for how you would stop those negative effects, or prevent or at least mitigate them, in your letter.</strong></p>

<p class="wp-block-paragraph">Moderate them, yes.</p>

<p class="wp-block-paragraph"><strong>Ameliorate might be the right word.</strong></p>

<p class="wp-block-paragraph">Yes, exactly.</p>

<p class="wp-block-paragraph"><strong>And they&#8217;re not small. You have a quote here that says, &#8220;We need a response far greater than the United States national security response in the wake of 9/11.&#8221; You want to set up an international body that somehow makes everyone do the right thing. These are challenging ideas.</strong></p>

<p class="wp-block-paragraph">Absolutely. When we blew off nuclear bombs in World War II, did we expect that we&#8217;d go 80 more years without that happening? I&#8217;d give us a good grade on that. Things like caring for poor countries and helping them out — although right now we&#8217;re not prioritizing that as much as I think we should or we did in the past, we&#8217;ve done a very good job on that. This will be a greater challenge than anything humanity&#8217;s ever achieved.</p>

<p class="wp-block-paragraph"><strong>One of the things that strikes me about the comparison to nuclear, which has</strong> <a href="https://www.theverge.com/podcast/1012839/pritzker-ai-privacy-data-centers-flock-congress-laws"><strong>come up quite a bit on</strong> <strong><em>Decoder</em></strong> <strong>recently</strong></a><strong>, is the government built the nuclear weapons. Sure, they had some contractors, but these were government projects and eventually the technology was in control of the government, and we never let regular people have it.</strong></p>

<p class="wp-block-paragraph"><strong>Think about Muse in the context of nuclear weapons. Do you think it&#8217;s a mistake to have consumer agentic AI products like Muse and Dots that might not have the controls?</strong></p>

<p class="wp-block-paragraph">Muse happens to be powered by Meta’s model, which is still a closed-source model. I do think allowing people through open weights to remove all safeguards is irresponsible in terms of the cyber and bio risk that comes from that.</p>

<p class="wp-block-paragraph">For these agents, there&#8217;ll be some early problems in terms of how they&#8217;re set up, but I fundamentally think people will have personal agents. Muse is a very nice step forward. I talked to Alexandr Wang about it, congratulated him, and even though it&#8217;ll have challenges, personal agents will help people get things done.</p>

<p class="wp-block-paragraph"><strong>Muse is the first truly great consumer AI product. One of the reasons people don&#8217;t like AI a lot in a diffuse way is they experience cheap free models and AI overviews or they use the free ChatGPT and it hallucinates and it lies to them, but Muse actually does things and it&#8217;s a good consumer product.</strong></p>

<p class="wp-block-paragraph"><strong>But I wonder — in the nuclear age, we were not saying, &#8220;Everyone is going to have a nuclear reactor at home that we haven&#8217;t built the safety guards for.&#8221; There&#8217;s something here.</strong></p>

<p class="wp-block-paragraph">The notion of letting everybody make smallpox at home or make nuclear weapons at home, of course, and you can parody some of these people saying, &#8220;Don&#8217;t worry about safeguards.” It’s taking that position. &#8220;We are not serious about the safety things.&#8221;</p>

<p class="wp-block-paragraph">But the personal agent thing is an expected development. AIs are really cool just as I intellectually explore things, even the work of the Gates Foundation. I&#8217;m far more empowered. But I agree with you, it&#8217;ll get out to more people in this personal agent form.</p>

<figure class="wp-block-pullquote"><blockquote><p>The notion that liability laws are how we&#8217;re going to manage AI safety will be looked back on as absurd</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>All the models we&#8217;ve been talking about right now effectively run on data centers owned by big companies. One of the arguments here is, &#8220;If they do something really wrong, you can just sue them and that will provide a deterrent or at least an incentive to create safety systems.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m not sure product liability is the way to go, but it has come up a lot that product liability itself will keep the industry in line. Then there&#8217;s the flip side, which is that you can just go buy a Mac Studio and run an open source and open weight model on it and it can do whatever you want.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m not sure where any of that liability would lie or what would control or align the behaviors of those open source models. Do you think that that is an ever-growing risk? Do you think that that can be controlled?</strong></p>

<p class="wp-block-paragraph">The notion that liability laws are how we&#8217;re going to manage AI safety will be looked back on as absurd. When bad people do bioattacks, you don&#8217;t go to the court and say, &#8220;Oh, okay.&#8221; Even for finding who is doing these attacks, the liability model fails in every respect because it&#8217;s not the AI companies themselves. It&#8217;s the people who take particularly the models without safeguards and do these things.</p>

<p class="wp-block-paragraph">We will take AI safety more seriously than we take airline safety, drug safety, and car safety. That is guaranteed. Whether it&#8217;s going to be enough&#8230; This is harder, harder than nuclear weapons, harder than any of those other domains.</p>

<p class="wp-block-paragraph"><strong>But what are you going to do about an open source model running on a PC that somebody built with just a random Nvidia graphics card in it?</strong></p>

<p class="wp-block-paragraph">I would hope that with models above a certain capability, we find a way to require the safeguards and monitoring to be maintained in those models. I admit as time goes on that, if we don&#8217;t fairly soon decide to do that, you&#8217;re going to have a level of capability that&#8217;s out in dark corners that you won&#8217;t be able to see.</p>

<p class="wp-block-paragraph"><strong>But where do you impose the limit?</strong></p>

<p class="wp-block-paragraph">A sovereign country says that models that are capable of sophisticated cyberattacks have to have safeguards kept in them.</p>

<p class="wp-block-paragraph"><strong>Sure.</strong></p>

<p class="wp-block-paragraph">You can be open in the sense that you&#8217;re free, you can be open in the sense that you&#8217;re totally customizable, but you have to stay on platforms where, as you customize it, it&#8217;s checking to see if you&#8217;re customizing out the safeguards and monitoring and refusing to let you do that. So it means sovereigns go and say, &#8220;Are these trusted platforms able to perform this function or not?&#8221;</p>

<p class="wp-block-paragraph"><strong>I&#8217;m asking very nuts and bolts. Where would you technically implement that regulation?</strong></p>

<p class="wp-block-paragraph">Through the laws of the United States.</p>

<p class="wp-block-paragraph"><strong>Sure, but you have to put them somewhere. Is it at the Hugging Face, which distributes some of these models? Is it at the chip level?</strong></p>

<p class="wp-block-paragraph">No, it&#8217;s exactly what I said: Models above a certain capacity can only be run on platforms that certify that, as they&#8217;re customized, it&#8217;s not taking out the safeguards.</p>

<figure class="wp-block-pullquote"><blockquote><p>I admit as time goes on that, if we don&#8217;t fairly soon decide to do that, you&#8217;re going to have a level of capability that&#8217;s out in dark corners that you won&#8217;t be able to see</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>Just to pull this apart, maybe I&#8217;m not quite getting it — is the Mac Studio a platform in that case that would have to pay attention to what code it&#8217;s running?</strong></p>

<p class="wp-block-paragraph">You would not let a model past a certain capability be copied down to a client machine unless you&#8217;d somehow figured out how to monitor down to that client machine, which is very doable.</p>

<p class="wp-block-paragraph">But in the near term, most of these really frontier models are going to run more on Hugging Face or you could have them on GitHub. You can have all sorts of people be in the business of providing the platforms that maintain safeguards.</p>

<p class="wp-block-paragraph"><strong>Just to get this right, it seems like you would enforce the regulation at the platform and distribution level and not so much at the chip level.</strong></p>

<p class="wp-block-paragraph">Not at the chip level, no.</p>

<p class="wp-block-paragraph"><strong>Because it feels to me at some point even the cheap, free, open source models will be capable enough as the models we have today.</strong></p>

<p class="wp-block-paragraph">That&#8217;s right.</p>

<p class="wp-block-paragraph"><strong>And then you will have a big problem.</strong> </p>

<p class="wp-block-paragraph">If those are open weights in such a way that all safeguards can be removed, then you&#8217;re going to have a very high level of cyberattacks and bioattacks. You can then say, &#8220;Okay, let&#8217;s rewrite all the code that we have today to be less subject to attack or let&#8217;s do biosurveillance in a very deep way,” which are things I believe we need to do in addition to these other restrictions.</p>

<p class="wp-block-paragraph"><strong>We&#8217;re proposing again a lot of new capabilities, right?</strong></p>

<p class="wp-block-paragraph">Yeah.</p>

<p class="wp-block-paragraph"><strong>We&#8217;re going to impose some restrictions on GitHub. GitHub does not have a lot of restrictions on what code it can distribute today. It has some, but it doesn&#8217;t have this kind of set of restrictions.</strong></p>

<p class="wp-block-paragraph">When you put a state-of-the-art model that&#8217;s capable of profound cyberattacks or bioattacks on GitHub, it would say, &#8220;I&#8217;ve gone to the U.S. government and certified that I don&#8217;t let people customize out the safeguards.&#8221;</p>

<p class="wp-block-paragraph"><strong>I do not think that we currently live in a time of high trust in institutions. It just doesn&#8217;t feel that way to me. In fact, mostly we&#8217;ve torn them down. Elon Musk showed up and he tore down USAID. I know you have strong feelings about that.</strong></p>

<p class="wp-block-paragraph">That was a mistake.</p>

<p class="wp-block-paragraph"><strong>We have mostly torn down our institutions, for good and bad.</strong></p>

<p class="wp-block-paragraph">No, that&#8217;s a little too strong. Our institutions-</p>

<p class="wp-block-paragraph"><strong>They&#8217;re weakened.</strong></p>

<p class="wp-block-paragraph">They&#8217;re somewhat weakened, yeah.</p>

<p class="wp-block-paragraph"><strong>Somewhat weakened. It&#8217;s a very nice way of putting it. Trust in them is very low. We could probably do another full hour on AI drug discovery and whether a significant part of the population will trust the products of that work because they don&#8217;t trust pharma companies today.</strong></p>

<p class="wp-block-paragraph">They don&#8217;t have to trust pharma companies today. They have to trust the FDA review process.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m not sure they trust that either. Across the board, trust is low.</strong></p>

<p class="wp-block-paragraph">Then they can walk away from taking them. When they get cancer, they can say, &#8220;No, I don&#8217;t want to take that cancer drug.&#8221; As far as I know, people do take drugs. It&#8217;s a thriving business and people take them because they have proven benefits.</p>

<p class="wp-block-paragraph"><strong>All I&#8217;m saying is, right now it feels like trust in institutions, particularly in America but around the world, is in decline. You are proposing a new class of institutions, potentially a new class of global institutions that might impose restrictions that are novel.</strong></p>

<p class="wp-block-paragraph"><strong>At some point we need to say open source models, open weight models cannot do things and the government is going to reach into them and say whether or not they can do the things.</strong></p>

<p class="wp-block-paragraph">No, they&#8217;ll make sure that the platforms don&#8217;t allow the safeguards to be taken away.</p>

<p class="wp-block-paragraph"><strong>How do you regain the institutional trust to impose these controls?</strong></p>

<p class="wp-block-paragraph">Let&#8217;s say we don&#8217;t do this and we let models go off and do cyberattacks and bioattacks. Do you think that&#8217;s going to increase trust or human wellbeing? That&#8217;s the alternative.</p>

<p class="wp-block-paragraph"><strong>This is why I&#8217;m asking about it. This is why I asked about my kids and nihilism. I truly wonder about this.</strong></p>

<p class="wp-block-paragraph">I&#8217;m not sure we&#8217;ll succeed at this, but I guarantee you this is doable. The FDA is very complex. The airline safety regulations are very complex. Now with AI, you can do an even better job with the same number of people in those organizations.</p>

<p class="wp-block-paragraph">It&#8217;s this weirdly recursive thing where AI will be involved in AI safety and auditing and a variety of things like that. Yes, this requires taking action, and I&#8217;m suggesting it&#8217;s only a matter of how bad the incidents are before we take action.</p>

<figure class="wp-block-pullquote"><blockquote><p>People shouldn&#8217;t take everything I do at face value. I have all sorts of mistakes that I&#8217;ve made, weaknesses that I have, biases I bring to these questions. They ought to just take what I&#8217;m saying and add it to the voices</p></blockquote></figure>

<p class="wp-block-paragraph"><strong>I can sense your urgency about the harms. I can also sense your enthusiasm about the benefits over the long term, but we&#8217;re sitting here talking about trust. We&#8217;re going to put this on YouTube. I know you know what some of the YouTube commenters are going to say.</strong></p>

<p class="wp-block-paragraph"><strong>They&#8217;re going to say, &#8220;Why should we trust Bill Gates? He had a relationship with Jeffrey Epstein.&#8221; How do you respond to that? Is it that the urgency is over that, or do you have a more specific response?</strong></p>

<p class="wp-block-paragraph">People shouldn&#8217;t take everything I do at face value. I have all sorts of mistakes that I&#8217;ve made, weaknesses that I have, biases I bring to these questions. They ought to just take what I&#8217;m saying and add it to the voices.</p>

<p class="wp-block-paragraph">I&#8217;ve been in the technology industry thinking about AI my whole life, writing software, thinking about the power of software. I admit I was very fascinated as AI started to finally make progress. It was actually pretty slow until recently.</p>

<p class="wp-block-paragraph">I&#8217;m amazed and it&#8217;s actually helping me do my job in some incredible ways. But yes, I&#8217;m just one voice, an imperfect voice. I doubt you&#8217;ll find a perfect voice, but people can judge it however they like.</p>

<p class="wp-block-paragraph"><strong>I would say voices people trust are in short supply.</strong></p>

<p class="wp-block-paragraph">I agree with that.</p>

<p class="wp-block-paragraph"><strong>When you go and talk to the people in this industry, it&#8217;s a bunch of young CEOs building huge companies. That is something you have some experience with. Do you think they&#8217;re going about this the right way? Do you think that they have the right intentions?</strong></p>

<p class="wp-block-paragraph">Our problem today is not in the industry. Our problem is not that Sam Altman, Dario Amodei, Satya Nadella, or Sundar Pichai don&#8217;t understand that there are some grave challenges here. I talk less to Elon than other people, but even his <a href="https://www.theverge.com/2017/7/17/15980954/elon-musk-ai-regulation-existential-threat">public statements about summoning the demon</a> are exactly what we&#8217;re discussing here.</p>

<p class="wp-block-paragraph"><strong>Why is there not the political energy to do the things you&#8217;re suggesting?</strong></p>

<p class="wp-block-paragraph">As you said, the government didn&#8217;t fund this work. This is private sector company work. The government is not the key customer for this work, not like rockets and weapons and things like that. When somebody comes along and says all other previous technology advances are trivial compared to this one, people should have a high degree of skepticism about that.</p>

<p class="wp-block-paragraph">Is life really going to be significantly different 10 years from now because of AI? People should say, &#8220;Those guys just got overexcited about this one thing.&#8221; But I&#8217;m here saying, with whatever credibility I have, that absolutely this is the most profound — both in terms of good and in terms of bad — technology ever invented. I&#8217;m not financially motivated on this. I&#8217;m suggesting some precautions and safeguards are absolutely needed.</p>

<p class="wp-block-paragraph"><strong>What do you make of the difference in the tenor of conversation in the United States versus in China, where it&#8217;s often reported that optimism around AI is much higher? Why do you think there&#8217;s a difference there?</strong></p>

<p class="wp-block-paragraph">Most of those people don&#8217;t spend that much time in China. The concern about job markets in China is very, very high and you can&#8217;t characterize China as one monolith. There are the private companies doing the AI work like we have in the United States and then there&#8217;s the Chinese government.</p>

<p class="wp-block-paragraph">For example, when it came to whether crypto should be allowed, they said no. Should young people be gambling all the time? They said no. When it came to whether kids should have relationships with AIs, they said no. On a lot of these things, including usage of AI, they&#8217;re showing a willingness to do things on behalf of society.</p>

<figure class="wp-block-pullquote"><blockquote><p>I&#8217;m here saying, with whatever credibility I have, that absolutely this is the most profound — both in terms of good and in terms of bad — technology ever invented. I&#8217;m not financially motivated on this</p></blockquote></figure>

<p class="wp-block-paragraph">The fervor is a tiny bit less there, because their economy isn&#8217;t as AI-centric as ours is right at the moment. In the end, [when it comes to] the human value of not wanting cyberattacks or bioterrorism or trying to figure out what do we do when jobs go away, I don&#8217;t think there&#8217;s some difference between Chinese people and Americans and all the rest of the humans in terms of how they&#8217;re going to view this.</p>

<p class="wp-block-paragraph"><strong>Do you think it&#8217;s going to take something actually bad happening to get the political capital of the United States to make these changes?</strong></p>

<p class="wp-block-paragraph">Probably yes. We get ready for earthquakes because there are small earthquakes. I thought after we had the COVID pandemic, that would cause us to be more ready for future pandemics. That one didn&#8217;t work the way I expected.</p>

<p class="wp-block-paragraph">But usually that galvanizes our attention. Over the next several years, certainly in the cyber domain, because there&#8217;s a business model there, you will see a lot of attacks different in terms of scale than anything we&#8217;ve seen in the past.</p>

<p class="wp-block-paragraph"><strong>There is one thing that, again, I&#8217;ll come back to and I just want to end here. I am worried about young people and nihilism. I sense it in our audience all the time. We have a young audience.</strong></p>

<p class="wp-block-paragraph"><strong>There are some things about AI that are just legitimately the coolest things I&#8217;ve ever seen a computer do. There&#8217;s something there that can be fun and interesting and fascinating and change your entire relationship with the very notion of living in a digital world.</strong></p>

<p class="wp-block-paragraph"><strong>Then there are obviously horrible things. What I see more often than not is a sense of distrust, not just in institutions, but also in the companies, in capitalism itself, in the notion that we should change how we tax labor and capital, which I know is another one of your ideas. The idea that, I don&#8217;t know, we should even have more kids. It&#8217;s all done. They&#8217;re going to kill us all and we should just take a beat.</strong></p>

<p class="wp-block-paragraph"><strong>There is a lot of nihilism out there. I feel it very keenly. If you were a young person today and you were listening to Bill Gates say it&#8217;s about 20 years of disruption and at the end of it, robots might be building houses, what would you hold onto as a source of hope?</strong></p>

<p class="wp-block-paragraph">Throughout human history, we&#8217;ve been dealing with the shortage of food and disease and war. [Historian] Yuval Noah Harari writes eloquently about the past. And it is ironic that now that we have this sort of Pandora&#8217;s box that will take food shortage — which is still a real thing, not in the U.S., but in Africa — will take diseases, where human suffering is unbelievable, and solve all these things, it comes with it such an effect on jobs and our sense of unique contribution.</p>

<p class="wp-block-paragraph">I think, &#8220;The way I orchestrate resources to eradicate malaria, I&#8217;m pretty unique in my life experience that lets me do that.&#8221; But when the AI says to me, &#8220;No, I&#8217;m better than you. You go play pickleball and I&#8217;ll get back to you. I&#8217;m going to take care of this,” it&#8217;s humorous, but it&#8217;s not humorous. For somebody who is young today and wants to make a unique contribution, it is very intimidating that the AI is so powerful.</p>

<p class="wp-block-paragraph">That&#8217;s why the crisis in the math community is going to be mirrored everywhere. If you&#8217;re in your twenties today, during this 20-year period, you can take the things AI still can&#8217;t do, and you can use AI and you can have a lot of good impact, and you can suggest policies. We may need to develop the taste to actually not use technology to its maximum.</p>

<figure class="wp-block-pullquote"><blockquote><p>Even in the very best case of how we manage AI, this is going to be as tumultuous a period as there&#8217;s been in human history</p></blockquote></figure>

<p class="wp-block-paragraph">When I was talking with Claude about human-reserved job categories and trying to get that up to, say, 40 percent of the labor market — so you could use early retirement, restricted work weeks, and things like that to still get something like we have today — its response was always, &#8220;You&#8217;re artificially restricting the AI from doing these things.&#8221; I couldn&#8217;t get to a very high percentage without doing that.</p>

<p class="wp-block-paragraph">We&#8217;re going to have real choices. We have had groups — not large groups, but like the Amish — who don&#8217;t live at the technology frontier. A lot of humanity may choose not to live at the technological frontier because of things we get from helping each other or coming up with unique ideas.</p>

<p class="wp-block-paragraph">On the idea that young people are concerned because of the disruption that&#8217;s coming — that even in the very best case of how we manage AI, this is going to be as tumultuous a period as there&#8217;s been in human history — I hate being the bearer of concerning news on this, but it&#8217;s even worse not to tell people that this is coming. We have choices as humans to make about how we shape it.</p>

<p class="wp-block-paragraph"><strong>Bill, I appreciate you sounding the alarm and I appreciate you being on</strong> <strong><em>Decoder</em></strong><strong>. Thank you so much.</strong></p>

<p class="wp-block-paragraph">Thank you.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<author>
				<name>Allison Johnson</name>
			</author>
			
			<title type="html"><![CDATA[The iPhone Duo is a messy, expensive good time]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/1015028/iphone-duo-review" />
			<id>https://www.theverge.com/?p=1015028</id>
			<updated>2026-10-23T13:14:08-04:00</updated>
			<published>2026-10-21T08:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Apple" /><category scheme="https://www.theverge.com" term="iPhone" /><category scheme="https://www.theverge.com" term="Phone Reviews" /><category scheme="https://www.theverge.com" term="Reviews" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[The iPhone Duo is the riskiest Apple product in years. It&#8217;s a huge rethink of what an iPhone is and could be, and it contains the seeds of many fascinating ideas that might be great in the future. But that future is yet to come. The iPhone Duo is also one of Apple&#8217;s messiest first-generation [&#8230;]]]></summary>
			
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<img alt="The iPhone Duo propped open like a book. The left side of the display is blurry from the transition, while the right side shows rows of apps." data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1378.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap wp-block-paragraph">The iPhone Duo is the riskiest Apple product in years. It&#8217;s a huge rethink of what an iPhone is and could be, and it contains the seeds of many fascinating ideas that might be great in the future.</p>

<p class="wp-block-paragraph">But that future is yet to come. The iPhone Duo is also one of Apple&#8217;s messiest first-generation products in a long time, and right now it will delight gadget nerds and early adopters and likely frustrate everyone else.</p>

<p class="wp-block-paragraph">It’s been a minute since the iPhone has looked or worked significantly differently. The last major change <a href="https://www.theverge.com/2017/10/31/16579748/apple-iphone-x-review">was the iPhone X</a>, which dropped the home button almost a decade ago, and even that was a fairly subtle improvement. In fact, “subtle improvement” is really the entire story of the iPhone — it’s the foundation of Apple’s entire business, after all, and there’s a lot of risk in just up and changing it. You can see it in <a href="https://www.theverge.com/tech/995945/iphone-18-pro-max-review-camera-aperture">this year’s iPhone 18 Pro</a>: It’s been refined in many ways, with better thermals and an interesting variable aperture lens, but it’s barely different than the iPhone 17 Pro.</p>

<p class="wp-block-paragraph">But you can’t play it safe designing a foldable. You have to make some big decisions about screen sizes and what the inner and outer displays are for, and then make an even bigger set of decisions about how that big inner screen should work. All of those decisions are risky, and Apple’s riskiest decision was the Duo’s size and shape.</p>
<div class="product-block"><h3>iPhone Duo</h3>
<div class="product-description">The iPhone Duo is Apple&#8217;s first take on a foldable and comes with all the first-generation quirks you&#8217;d expect. Its outer screen can feel cramped, but the inner matte display is a real standout for content consumption.</div>
<figure class="product-image"><img width="300" height="200" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1057.jpg?w=300" class="attachment-medium size-medium" alt="The back of a folded iPhone Duo showing its wider size and its camera bump." /></figure>
<div class="product-scores"><h4>Score: 7</h4><table class="product-pros-cons"><thead><tr><th>Pros</th><th>Cons</th></tr></thead><tbody><tr><td><ul><li>Fun to play with</li><li>Matte inner display is very cool</li><li>You will watch less TikTok on it</li></ul></td><td><ul><li>You will watch less TikTok on it because the cover display is too small</li><li>Heavier and bulkier than a standard phone</li><li>Gets hot</li><li>Cameras are just OK</li></ul></td></tr></tbody></table></div>
<h3>Where to Buy:</h3><ul><li><a href="https://www.apple.com/shop/buy-iphone/iphone-duo"> $1999 at <strong>Apple</strong></a></li><li><a href="https://www.bestbuy.com/product/apple-iphone-duo-256gb-star-white-at-t/JCQ6HTJYJQ"> $1999.99 at <strong>Best Buy</strong></a></li></ul></div>
<h2 class="wp-block-heading">Hardware and design</h2>

<p class="wp-block-paragraph">Apple&#8217;s single most important design decision for the Duo was to make it shaped like a passport.</p>

<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1534.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="The iPhone Duo laying face up, closed, with the outer screen displaying the time." title="The iPhone Duo laying face up, closed, with the outer screen displaying the time." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1547.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Two closed iPhone Duos, one white and one blue, pictured side by side." title="Two closed iPhone Duos, one white and one blue, pictured side by side." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1399.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A white iPhone Duo propped up, folded, showing the back of the phone and the camera bump." title="A white iPhone Duo propped up, folded, showing the back of the phone and the camera bump." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1393.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A white iPhone Duo tented, with the inner screen facing the surface of the table. You can see how thin it is from this side angle." title="A white iPhone Duo tented, with the inner screen facing the surface of the table. You can see how thin it is from this side angle." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /></figure>

<p class="wp-block-paragraph">The wide aspect ratio makes the inner screen friendlier for 16:9 YouTube videos, but it also marks a departure from the taller foldable design phone makers have embraced over the past five years. Prior to 2026, most folding phones opted for a tall-and-narrow shape to optimize for using vertical apps on the cover screen. But rumors started pointing to Apple going with its landscape-first form factor, and other foldable makers shifted gears — seemingly to get ahead of Apple. Now that the iPhone and a handful of competitors have adopted the wide format, they have to solve a new problem: designing a cover screen that will work well enough for vertically oriented apps.</p>

<p class="wp-block-paragraph">The Duo’s 5.4-inch outer display is glossy, while the 7.6-inch inner display has a striking nano-texture matte coating. Apple’s very proud of this inner matte display, and for good reason — it looks and feels incredibly solid, a big step up from foldables with glossy, seemingly soft screens with glaringly obvious creases, like the Pixel Fold, and even the more subtle but still visible crease of the Galaxy Fold 8.</p>

<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0601.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A folded iPhone Duo sitting on top of a stack of books, displaying a family photo on the outer screen." title="A folded iPhone Duo sitting on top of a stack of books, displaying a family photo on the outer screen." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0784.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A pair of hands using the iPhone Duo in landscape mode with an Instagram Story on one side and rows of apps on the other, plus a small windowed video." title="A pair of hands using the iPhone Duo in landscape mode with an Instagram Story on one side and rows of apps on the other, plus a small windowed video." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0800.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding the iPhone Duo at a sunlit table. You can see the thickness of the phone when it’s folded from this angle." title="Hands holding the iPhone Duo at a sunlit table. You can see the thickness of the phone when it’s folded from this angle." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /></figure>

<p class="wp-block-paragraph">The matte display is indeed there to help hide the crease, which Apple keeps calling “perceptually flat” because it’s more fun to invent science-y marketing phrases than just saying “you mostly don’t see it.” But it’s true: You mostly can’t see the display crease, although you can definitely feel it. If you’re looking at a white image off-axis, you can see it, and there are moments in some lighting where it’s much more obvious. It definitely shows up more prominently on camera than it does to your eyes.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1354.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="The iPhone Duo opened to the matte inner screen in landscape orientation, displaying the homepage of The Verge." title="The iPhone Duo opened to the matte inner screen in landscape orientation, displaying the homepage of The Verge." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">What you <em>will</em> see is the under-display camera, which reflects light in a more glossy way if you’re outdoors or in a bright area. Overall, though, the camera and display crease stopped being noticeable after a while. The crease also wasn’t any more noticeable after a week of constant flipping and folding, although we’ll see how it holds up over time.</p>

<p class="wp-block-paragraph">That’ll be a real test, because Duo owners are going to be constantly flipping this thing open. Between Apple’s display aspect ratio and iOS design choices, the outer screen feels like much more of a status display than you’d expect — everything about the Duo gently nudges you to flip it open and use it in tablet mode. And not just tablet mode, but <em>portrait</em> tablet mode. That’s because iPhone apps are largely portrait, and the Duo is still very much an iPhone, even though its shape makes it fight all that history.</p>

<p class="wp-block-paragraph">iPhones have gotten bigger over the years, but they’ve mostly stuck to the same basic rectangular aspect ratios: 2:3 from the first iPhone through the 4S, 16:9 from the iPhone 5 through the 8, and 19.5:9 from the iPhone X on to today’s iPhone 18 Pro. Basically, the iPhone has mostly gotten taller over time.</p>

<figure class="wp-block-pullquote"><blockquote><p>It’s wild to have iPhone apps with controls in all kinds of different places</p></blockquote></figure>

<p class="wp-block-paragraph">The Duo changes all of that — it’s the first iPhone that’s gotten shorter and wider. Both the inner and outer displays have a 1.4:1 aspect ratio, which was a very deliberate choice on Apple’s part, because they’re the same shape open and closed. This is clever in terms of display math and potentially great for app developers, but in practice it means that the outer display is really quite small, especially compared to modern Max-sized phones. If you’re texting someone in Messages with the keyboard onscreen, you’re lucky to be able to see two or three texts at once.</p>

<p class="wp-block-paragraph">Apple has tried to reclaim some vertical space by scooting the UI elements of updated apps off to the right, but if you’re left-handed, that means using the phone closed with one hand can be challenging, even for someone with big hands. Having that strip of real estate along the right side occupied by navigation controls also means that using the Duo single-handed in your right forces you to reach farther when there’s something on the left side of the screen you need to tap. This means that you’re sometimes holding a fairly heavy phone, stretching for a small target that’s just out of reach, which isn’t particularly confidence-inspiring.</p>

<p class="wp-block-paragraph">It’s also wild to have iPhone apps with controls in all kinds of different places; reaching for the back button in Apple’s Mail app and realizing it’s moved from the top left to the right is kind of disorienting. A lot of using the Duo is just figuring out how to use an iPhone again, which hasn’t happened in a long time.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0055.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding the iPhone Duo open to the inner screen in landscape orientation. The left side of the screen is blurred out, while the right side shows the app library." title="Hands holding the iPhone Duo open to the inner screen in landscape orientation. The left side of the screen is blurred out, while the right side shows the app library." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">If you’re using an app that <em>isn’t</em> updated for the Duo, you’ll see a black bar along the right side of the cover screen where those navigation controls would otherwise live. But even updated apps don’t feel particularly useful for anything other than a quick check-in on the cover screen. Apple says you’re getting 90 percent of the screen area of an iPhone 18 Pro, but that’s pretty small for today’s apps. It’s like having an iPhone 5 in a world of iPhone Pro Maxes.</p>

<p class="wp-block-paragraph">This means that when you pull the Duo out of your pocket, you’ll almost always be looking at a tiny amount of information. And the second you want to really <em>do</em> anything, you’ll find yourself unfolding the phone to use the vastly larger and more useful inner display.</p>

<p class="wp-block-paragraph">But you don’t get any additional <em>height</em> when you open the Duo up. Switching from a tiny portrait display to a bigger landscape view isn’t useful for most phone apps, which are all designed around big portrait displays. Most phone apps look silly this way, especially those still running as standard iPhone apps, which look normal but with lots of black padding on either side. It’s either cramped and tiny on the outer screen or a little silly and awkward when you open the Duo.</p>

<p class="wp-block-paragraph">This means almost every time you open the phone you instinctively rotate it, and while it will work no matter how it’s rotated, it’s better to rotate it counterclockwise so the cameras are on top and the volume buttons are on the top left. Over our week of testing, this started feeling more natural, but it’s exactly the opposite of what you’d initially expect. It’s especially odd in Apple’s bumper case, which has a large notch to expose the Touch ID sensor and camera control, and it looks for all the world like it belongs at the bottom.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0682.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A person holding the iPhone Duo, which is open to its inner screen in portrait orientation, next to a standard modern iPhone to show the size difference. The Duo looks a little less than twice as wide as the regular iPhone." title="A person holding the iPhone Duo, which is open to its inner screen in portrait orientation, next to a standard modern iPhone to show the size difference. The Duo looks a little less than twice as wide as the regular iPhone." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">You might think this is a little thing, but it’s strange to find yourself slightly unsure of how to hold a smartphone. A nontrivial part of the Duo experience is just reorienting yourself to where the volume buttons are as you flip the thing around. When closed, they’re on top of the phone, but if you rotate the Duo clockwise, they end up on the bottom right, and it’s the <em>top</em> button that turns the volume down because they don’t change orientation with the display. There’s a buried setting in iOS that makes the volume buttons reorient themselves as you turn the Duo around; Apple needs to set it so it works right by default.</p>

<p class="wp-block-paragraph">One other thing to get used to is simply unlocking the phone. Touch ID is integrated into the wake button on the side of the phone. There’s no Face ID at all, and it might take a minute to remember that when you stare at your phone for a beat and wonder why your notifications aren’t unfurling. Ask us how we know. But a week is long enough to get used to Touch ID life again, and it’s mostly painless once you remember you’re supposed to be using it.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1116.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A white iPhone Duo when closed, pictured from the side so you can see the back of the phone." title="A white iPhone Duo when closed, pictured from the side so you can see the back of the phone." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">Now, here’s the thing: This is all pretty fun! The iPhone has been the same for so long that being forced to come up with little moves and tricks and ways to think about holding the Duo is a gadget nerd thrill. Other foldables do this too — Samsung and Google and Huawei have been pushing the envelope of gadget-y smartphones for ages — but Apple’s played it so safe for so long that the Duo is legitimately surprising. But Apple hasn’t found some magical software solution to making a product with this much inherent complexity any less chaotic. It just happens to be the kind of first-generation chaos that will delight early adopters and lead most everyone else back to their regular old iPhones.</p>

<h2 class="wp-block-heading">Software</h2>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1182.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="An iPhone Duo opened to the inner screen in landscape orientation. It’s showing the weather, map widgets, and other apps." title="An iPhone Duo opened to the inner screen in landscape orientation. It’s showing the weather, map widgets, and other apps." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">That first-generation wonkiness is most obvious in the software, especially in how the Duo supports third-party apps. Almost everyone who sees the Duo assumes that it simply opens up into being an iPad, but that’s not how it works at all. In classic Apple fashion, the company decided to throw everything out and start over.</p>

<p class="wp-block-paragraph">That means getting rid of a lot of weird iPad baggage, but it also means that solved problems on the iPad are back on the Duo. It’s big stuff and little stuff: For whatever reason, the Duo doesn’t support pinching the keyboard to make it smaller and friendlier to use one-handed — a feature iPads have had for ages. It also means there are new ways to think about multitasking, and sometimes you’ll be unsure what will happen when you swipe around the screen because apps interact with iOS and each other in very different ways.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0790.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding an iPhone Duo opened to the inner screen in landscape orientation. Instagram is open on the left side, and a YouTube video is playing on the right." title="Hands holding an iPhone Duo opened to the inner screen in landscape orientation. Instagram is open on the left side, and a YouTube video is playing on the right." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">If you want to run two apps at once on the Duo, you swipe up and over to pin an app to one side, and then pin another app to the other side. If you tap on the little divider, you connect the apps into a set, and you can come right back to it in the app switcher. It’s neat, but it only works in landscape. If you want to have two apps open when you’re holding the Duo in portrait mode, you’re basically out of luck — unless what you want is to watch a video on the top while scrolling an app on the bottom. In that case, you need to make sure you have an app that supports background video, open that app, start the video, close that app to initiate the floating video window, open your other app, and then (and only then!) find a little button in the floating video window and hit that to pop everything into place.</p>

<p class="wp-block-paragraph">This is legitimately cool once you figure it out. But you will note that this is a totally different approach to multitasking than any previous iPhone or iPad, and nothing about the Duo’s interface makes it obvious that it can work this way. It’s a lot of these little moments of figuring it out for yourself that really solidify the Duo as an early adopter special — especially since some features only work in some apps sometimes. That floating video feature? Yeah, it works with YouTube TV, but it doesn’t seem to work with regular YouTube.</p>

<p class="wp-block-paragraph">This is initially surprising, because the YouTube app appears to be at least a little updated for the Duo. But it turns out that right now there are basically three ways apps work on the Duo.</p>

<div class="wp-block-vox-media-highlight vox-media-highlight">
<h2 class="wp-block-heading">We answered your burning questions about the iPhone Duo.</h2>



<p class="wp-block-paragraph">We hosted a subscriber-exclusive AMA about the iPhone Duo, and you can check out <a href="https://www.theverge.com/tech/1014316/iphone-duo-review-ama">our responses here</a>.</p>
</div>

<p class="wp-block-paragraph">First, there are regular iPhone apps that haven’t been updated at all. As with an iPad, you can zoom and rotate these apps to make things a little more useful, but they look pretty silly. This is the vast majority of apps right now, although we saw lots of apps get updated to the second category during the course of our review.</p>

<p class="wp-block-paragraph">The second category is what you might call the messy middle: apps that have been updated for iOS 27. They get <em>some</em> automatic layout fixes so they’ll automatically expand to fill the inner screen in landscape orientation and don’t look quite as silly as standard iPhone apps. But you can tell they haven’t <em>actually</em> been designed for these displays, and those rough edges are super obvious. The telltale sign of these apps is the black bar on the right when you use them on the cover screen — proper Duo apps add controls to that space, but these in-between apps don’t.</p>

<div class="image-slider">
	<div class="image-slider">
		
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3176.png?quality=90&amp;strip=all&amp;crop=0,2.6158445440957,100,94.768310911809" alt="A screenshot of the Duolingo app on the inner screen of an iPhone Duo in landscape orientation, where it is centered with lots of empty space on either side." title="A screenshot of the Duolingo app on the inner screen of an iPhone Duo in landscape orientation, where it is centered with lots of empty space on either side." data-has-syndication-rights="1" data-caption="&lt;em&gt;Apps that aren’t updated to iOS 27 will open on the inner screen without resizing.&lt;/em&gt;" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3177.png?quality=90&amp;strip=all&amp;crop=0,2.6158445440957,100,94.768310911809" alt="The Spotify app on the iPhone Duo’s inner screen in landscape orientation. There is a black bar on the right-hand side." title="The Spotify app on the iPhone Duo’s inner screen in landscape orientation. There is a black bar on the right-hand side." data-has-syndication-rights="1" data-caption="&lt;em&gt;An app like Spotify that has been updated for iOS 27 will resize to fill the inner screen, but will show a black bar on the side if it hasn’t been targeted to iOS 27.1.&lt;/em&gt;" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3178.png?quality=90&amp;strip=all&amp;crop=0,2.6158445440957,100,94.768310911809" alt="The Netflix app on the inner screen of an iPhone Duo in landscape orientation. There are app controls along the right-hand side of the screen." title="The Netflix app on the inner screen of an iPhone Duo in landscape orientation. There are app controls along the right-hand side of the screen." data-has-syndication-rights="1" data-caption="&lt;em&gt;Netflix is fully updated to support iOS 27.1 — the black bar on the side is replaced with control buttons.&lt;/em&gt;" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3179.png?quality=90&amp;strip=all&amp;crop=0,27.08947885939,100,45.821042281219" alt="A screenshot of Google Photos on the outer screen of an iPhone Duo. There is a black bar on the right side." title="A screenshot of Google Photos on the outer screen of an iPhone Duo. There is a black bar on the right side." data-has-syndication-rights="1" data-caption="&lt;em&gt;An app like Google Photos that isn’t optimized for 27.1 will show a black bar on the outer screen.&lt;/em&gt;" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3181.png?quality=90&amp;strip=all&amp;crop=0,27.08947885939,100,45.821042281219" alt="Apple’s Photos app on the outer screen of the iPhone Duo, with a series of controls like the search icon arranged along the right side of the screen." title="Apple’s Photos app on the outer screen of the iPhone Duo, with a series of controls like the search icon arranged along the right side of the screen." data-has-syndication-rights="1" data-caption="&lt;em&gt;Apple’s Photos app is fully optimized for the Duo, with the controls arranged along the side.&lt;/em&gt;" data-portal-copyright="" />
	</div>
</div>

<p class="wp-block-paragraph">Then there are fully updated Duo apps built for the Duo-specific iOS 27.1 — we got to test a few of these, and they can be pretty good. Instagram’s Edits app is a perfect example of why a folding phone is useful. It opens into a full video editor with a big timeline and nice preview window, and you can just get things done. And even in the span of the past week that we’ve been using the Duo, we’ve seen some apps, like Slack, go from the messy middle to fully updated. This makes a big difference in how useful they feel on the inner screen, but obviously doesn’t address the reality of the small outer-screen real estate.</p>

<p class="wp-block-paragraph">Developers will need to have either a lot of energy to create neat stuff that takes advantage of the Duo’s form factor or a lot of encouragement from Apple. Maybe both. Either way, we have to hand it to the Deck-Man app, which reformats Apple Music into a little virtual Walkman. The page-turn animation in Books is terrific. And if you’ve ever dreamed of reading PDFs on a big screen in the back of an Uber, know that they look particularly great on the matte display.</p>

<p class="wp-block-paragraph">But the reality is you’re going to see a lot of tiny iPhone apps and apps in the weird unoptimized middle zone for a while. It’s all just messy, in a lot of the same ways Android foldables are. That’s particularly surprising because the Android tablet app story has always been messy, but Apple had the whole ecosystem of iPad apps waiting at the ready. For whatever reason, the company just didn’t go that way, and that means it will take a while for the Duo’s app story to settle down.</p>

<h2 class="wp-block-heading">Versus the Samsung Galaxy Z Fold 8</h2>

<p class="wp-block-paragraph">The Duo’s most obvious competitor is the Galaxy Z Fold 8, which Samsung managed to sneak out a few months ahead of the Duo. They’re both wide folds, but they’re not exactly the same. The Fold 8’s front screen is slightly taller and narrower, and the Duo is noticeably thicker and heavier. Those details add up to a big difference in how it feels to use the cover screen, especially one-handed. The Duo is pretty hard to use single-handed, but it feels doable with the Fold 8.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/07/Samsung-Galaxy-Fold8-5-1.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding a Galaxy Z Fold 8 halfway open to the inner screen, as if holding a book." title="Hands holding a Galaxy Z Fold 8 halfway open to the inner screen, as if holding a book." data-has-syndication-rights="1" data-caption="&lt;em&gt;Samsung’s Galaxy Z Fold 8.&lt;/em&gt; | Photo: David Imel / The Verge" data-portal-copyright="Photo: David Imel / The Verge" />
<p class="wp-block-paragraph">Apple also insists on preserving the more narrow vertical aspect ratio when you use an app on the cover screen by reserving that strip on the side for controls, whereas Samsung lets content occupy the entire width of the screen. On the larger inner display, Samsung offers a couple of options to make the keyboard friendlier to use. You can switch to a one-handed option that’s easier to reach or a floating keyboard you can move around and resize. And lots more Android apps readily take advantage of the full inner screen because foldables have been a thing on Android for quite a while now.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0552.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A person holding a blue iPhone Duo partway open, as if it were a book." title="A person holding a blue iPhone Duo partway open, as if it were a book." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">Apple is really emphasizing the ability to use the Duo in a variety of postures, including that kind of “I’m reading a book” situation where it’s partially closed. You can prop the phone up in tent mode and use it as a clock or digital photo frame. If you use it as an alarm, you’ll get a nice glow from the inner screen that’s supposed to help gently wake you up. You can watch videos on half of the inner screen in laptop mode, or on the outer screen in tent mode. Weirdly, Apple is actually more liberal in this than Samsung. The half-open position is called Flex mode on other Galaxy foldables, but the Z Fold 8 doesn’t let you use it, probably because the hinge isn’t stiff enough all the way through its range of motion.</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0657.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="An iPhone Duo tented on its side with the outer screen displaying the time." title="An iPhone Duo tented on its side with the outer screen displaying the time." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">Another important difference: The Duo is rated IP68 for full water and dust resistance, while the Z Fold 8 is IP48, so it isn’t fully dust-resistant. Neither phone should be used carelessly at the beach, but that higher dust rating offers a little more peace of mind.</p>

<p class="wp-block-paragraph">Overall, these feel like pretty familiar moves for both of these companies. Apple wants you to use its phone its way. Samsung is less hung up on details like aspect ratios and where the keyboard can be. As always, Apple’s phone works best the deeper you are in the walled garden. The Duo feels a little more polished, but the Z Fold 8 has the better cover screen experience. Given how much of the experience of a foldable is reliant on the cover screen, that counts for a lot.</p>

<h2 class="wp-block-heading">Performance and battery life</h2>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1529.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A close-up of the front camera on the iPhone Duo." title="A close-up of the front camera on the iPhone Duo." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">We each tested our own review units under pretty different circumstances over the past week, so it’s not surprising our battery life experiences differed. Nilay used the Duo just like he would during any other workday, using Slack, Google Docs, and Safari, and watching YouTube TV, Instagram, and TikTok. He needed to charge the Duo at least once to get through the day. This matched his usual experience with regular Pro iPhones, although the MagSafe battery packs he uses to get through the day are made for taller iPhones and don’t fit the Duo very well.</p>

<p class="wp-block-paragraph">Allison was traveling more with the Duo, and spent more time watching video on Wi-Fi on her flights and scrolling social media. She had about 30 percent left after about 6.5 hours of screen-on time, which is decent. But as ever, iPhone battery life tends to vary dramatically for everyone, and change a lot over time. That’s even more so the case with a foldable — the more you use the inner screen, the worse of a time you’ll have with the battery.</p>

<p class="wp-block-paragraph">Performance-wise, the Duo has an A20 Pro chip, and Apple says it has the same improved vapor chamber thermal management system as the iPhone 18 Pro. For most things it’s plenty fast, but the reality is that it’s also a thin phone driving two big displays, and it definitely gets warm, and sometimes hot. We saw this happen in two places: third-party apps, particularly video apps and Google’s apps, caused things to get hot. The first-generation nature of the Duo really came through here, and it’s something we would hope would improve as various apps get updated.</p>

<p class="wp-block-paragraph">The phone also heats up when you use the camera for a long time — especially features that use the camera and both displays at once, like Duo Preview and Kid Cue. You can just feel the phone getting significantly hotter when this happens. Add in processor-intensive camera features like Smart Take, which automatically hits the shutter button, and the phone gets hot enough to start noticeably lagging after a while.</p>

<p class="wp-block-paragraph">You’d hope Apple can improve battery life and thermal management over time — it has certainly done that with other iPhones in the past. But the Duo today gets hot, and doesn’t seem ready to last a full day of heavy use. Those are real compromises on a phone that starts at $2,000.</p>

<h2 class="wp-block-heading">Camera</h2>

<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-3 is-layout-flex wp-block-gallery-is-layout-flex"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0082.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Senior reviewer Allison Johnson holding the iPhone Duo with the camera facing the viewer." title="Senior reviewer Allison Johnson holding the iPhone Duo with the camera facing the viewer." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0158.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding an iPhone Duo open to its inner screen in landscape orientation to take a photo." title="Hands holding an iPhone Duo open to its inner screen in landscape orientation to take a photo." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0141.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding up a folded iPhone Duo to take a photo, with the back of the phone and its camera facing the viewer." title="Hands holding up a folded iPhone Duo to take a photo, with the back of the phone and its camera facing the viewer." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0182.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Senior reviewer Allison Johnson and photographer Amelia Holowaty Krales appear on the iPhone Duo’s outer screen as Allison preps to take a selfie, holding the phone unfolded with the inner screen facing away from them, while Amelia holds up a camera to take this photo." title="Senior reviewer Allison Johnson and photographer Amelia Holowaty Krales appear on the iPhone Duo’s outer screen as Allison preps to take a selfie, holding the phone unfolded with the inner screen facing away from them, while Amelia holds up a camera to take this photo." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /></figure>

<p class="wp-block-paragraph">The Duo’s other big compromise is camera quality. It has a smaller main camera sensor than the one you’ll find in the 18 Pro and is instead on par with what you get from the iPhone Air. That’s fine for grabbing everyday shots, but it’s fundamentally a notch below flagship tier. The Duo relies on heavier sharpening to make up for its weaker hardware, so fine details look a little crunchier than they do on the 18 Pro. The Duo retains a bit less color detail in low light too, though Night Mode kind of evens out the playing field between them.</p>

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<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/lion_duo_100p.jpg?quality=90&amp;strip=all&amp;crop=0,5.5555555555556,100,88.888888888889" alt="" title="" data-has-syndication-rights="1" data-caption="&lt;em&gt;Taken with iPhone Duo, cropped to 100 percent.&lt;/em&gt;" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/lion_18pro_100p.jpg?quality=90&amp;strip=all&amp;crop=0,5.5555555555556,100,88.888888888889" alt="" title="" data-has-syndication-rights="1" data-caption="&lt;em&gt;Taken with iPhone 18 Pro, cropped to 100 percent.&lt;/em&gt;" data-portal-copyright="" />
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<p class="wp-block-paragraph">Some of the manual controls on the 18 Pro are absent here, too. There&#8217;s no shutter speed and no moving aperture, but you do get white balance and manual focus controls. The biggest concession is that there’s no telephoto camera here. You get that 2x crop zoom and up to just 10x digital zoom. There’s a 48-megapixel ultrawide that’s fine, but you just don’t have the flexibility you’ll find on basically every slab phone that costs half as much as the Duo.</p>

<p class="wp-block-paragraph">The 12-megapixel Center Stage selfie camera on the front screen is a little worse than the 18-megapixel one on the 18 Pro — again, it looks like it’s compensating for its lower resolution by oversharpening details. There’s also an under-display FaceTime camera on the inner screen that’s okay in good light but really quite bad in dim light. (Apple won’t say the FaceTime camera’s resolution, but it’s just 4 megapixels.) Overall, it’s serviceable for a video call, but not much else.</p>

<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-4 is-layout-flex wp-block-gallery-is-layout-flex"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0268.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A person taking a photo of a building using the iPhone Duo. The phone is folded and the photo preview is on the cover screen." title="A person taking a photo of a building using the iPhone Duo. The phone is folded and the photo preview is on the cover screen." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0365.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Some photo settings on the iPhone Duo, which is open to its inner screen in landscape orientation." title="Some photo settings on the iPhone Duo, which is open to its inner screen in landscape orientation." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0013.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A person holding an iPhone Duo so the viewer can see the camera bump on the back." title="A person holding an iPhone Duo so the viewer can see the camera bump on the back." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /></figure>

<p class="wp-block-paragraph">But the good thing about a folding phone is that <em>every</em> camera on this thing is a selfie camera. You can open it up and preview your image on the front display while you use the much better main camera to take a photo of yourself. You’ll actually want to use the camera control button on purpose for a change, because it’s the only sensible way to press the shutter when you have the phone facing you like this — there’s no on-screen shutter and the volume controls are right next to the lens.</p>

<p class="wp-block-paragraph">Apple’s Kid Cue <a href="https://www.theverge.com/24237586/google-pixel-9-pro-fold-review-screen-camera-battery#:~:text=minor%20feature%2C%20but%20%E2%80%9C-,Made%20You%20Look,-%E2%80%9D%20%E2%80%94%20which%20uses%20the">takes a page out of Google’s book</a> by using the front screen to play animations designed to get your kid looking at the camera. It works, but your subject will be looking off to the side since the Duo (wisely) uses the better main camera lens rather than the selfie camera for this. But if you’ve ever tried to get a young kid to look at a camera and make a normal face, you’ll probably agree that this is close enough.</p>

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<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/IMG_3157.jpg?quality=90&amp;strip=all&amp;crop=0,25,100,50" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

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<p class="wp-block-paragraph">Outside of that, the form factor lets you do a couple of fun things with the camera. You can set it up in laptop mode or standing up like a book to shoot a time-lapse. There’s a feature called Smart Take that will automatically snap photos when it senses that subjects in the frame are striking a pose that’s kinda fun. (It would be cool if you could switch the image preview to the other panel to use it halfway open like a waist-level viewfinder, but you can’t.)</p>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0302.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="Hands holding a folded iPhone Duo and using the main camera to take a photo. They’re zooming in using the onscreen controls." title="Hands holding a folded iPhone Duo and using the main camera to take a photo. They’re zooming in using the onscreen controls." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">The main camera records up to 4K/120 video and it will let you apply Cinematic mode to your clips after capture like the 18 Pro does. You also get the new texture controls in Photographic Styles if you want your foldable phone camera to act more like a film camera. Still, you’re definitely not getting the latest and greatest iPhone camera, which is weird on a $2,000 phone — though that’s certainly not unusual for a foldable.</p>

<p class="wp-block-paragraph">On the other side of the aisle, Samsung basically split its Fold series into two models: the wide one with less-good cameras and the portrait-oriented one with a better main camera. You can’t have everything — unless you have access to <a href="https://www.theverge.com/tech/948919/honor-magic-v6-foldable-review">foldables sold in China</a>, in which case, yeah you can. The bottom line is that the Duo offers a totally acceptable camera for a new iPhone, but it’s far from the best iPhone camera you can get.</p>

<h2 class="wp-block-heading">Bits and bobs</h2>

<figure class="wp-block-gallery has-nested-images columns-2 is-cropped wp-block-gallery-5 is-layout-flex wp-block-gallery-is-layout-flex"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1416.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A close-up shot of the iPhone Duo’s cover screen, which is displaying some widgets and regular app icons." title="A close-up shot of the iPhone Duo’s cover screen, which is displaying some widgets and regular app icons." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1191.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="An iPhone Duo in “laptop” mode, with the inner screen open but only the top half folded up." title="An iPhone Duo in “laptop” mode, with the inner screen open but only the top half folded up." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1053.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A close-up of an iPhone Duo’s cover screen with The Verge pulled up." title="A close-up of an iPhone Duo’s cover screen with The Verge pulled up." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />

<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_1480.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A super close-up of the inner screen of an iPhone Duo, which is folded partway open, book-style." title="A super close-up of the inner screen of an iPhone Duo, which is folded partway open, book-style." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /></figure>

<p class="wp-block-paragraph">There’s a lot of other little stuff to say about the Duo — it’s full of new ideas and weird little details keep coming up the more you use it. The Duo has MagSafe, unlike the Z Fold 8, which is a big quality-of-life improvement. Allison found that a PopSocket made the Duo way easier to hold, while Nilay had a less-good time trying to use his existing MagSafe battery packs on the phone. He also has MagSafe mounts around his house and stuck the phone up all over the place, with entertaining results. Who <em>hasn’t</em> dreamed of having a tablet in the shower?</p>

<p class="wp-block-paragraph">You can use the Duo like a tiny little laptop, which is adorable, and it connects to a portable keyboard for <a href="https://www.theverge.com/tech/878485/samsung-galaxy-z-fold-7-travel-keyboard-logitech-laptop-replacement">some purse computer action</a>. You can also watch movies and TV shows with it slightly bent, so it stays open on a table in tent mode. (It takes a second for the phone to figure out that you want to do this, but it gets there.) If all of this sounds stressful, then the first-gen foldable life might not be for you. But if you’re itching to try some of this out for yourself, then you just might be the kind of early adopter who will have a good time with the Duo.</p>

<h2 class="wp-block-heading">The wrap-up</h2>
<img src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/268762_iPhone_Duo_AKrales_0573.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="A white iPhone Duo face-down in folded mode on a table." title="A white iPhone Duo face-down in folded mode on a table." data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p class="wp-block-paragraph">The hard rule at The Verge for 15 years now is that you have to review the product that’s in the box — not the <em>idea</em> of the product, or all of our hopes and dreams, or even the promise of software updates to come. (And boy, does the Duo have a lot of software and app updates to come.) There’s a lot of potential in the Duo, but right now it is a first-gen device in every possible way.</p>

<p class="wp-block-paragraph">It is expensive, it’s full of compromises, and it can be incredibly frustrating to use. Switching from the Duo back to one of our standard slab phones to get something done often felt like a relief. Sometimes you just need your iPhone to do what you need it to do — that’s why Apple has been so risk-averse in changing it.</p>

<figure class="wp-block-pullquote"><blockquote><p> It is very much an open question whether Apple made the right choices about the Duo’s screen sizes and aspect ratios</p></blockquote></figure>

<p class="wp-block-paragraph">But all of the risk and weirdness of the Duo is also <em>fun,</em> in the way the best early adopter devices are fun. It’s incomplete as a product, but complete enough as an idea that you can see where things are going. It’s reminiscent of the very first MacBook Air, which took exactly no one by storm — it took a full redesign for Apple to get it right, and then it took over the entire industry.</p>

<p class="wp-block-paragraph">We’ll see what happens with the Duo, but as it stands, it is very much an open question whether Apple made the right choices about the Duo’s screen sizes and aspect ratios. Most Duo owners will find that the cover display is simply too small to use all the time. Avoiding the entire iPad app ecosystem is another choice that might not age well; so is asking developers to jump on board with a device that’s clearly destined to eventually run into the iPad. Apple also made some very real compromises around the camera, and we’ll need to do a lot more testing to understand the Duo’s performance and thermal management story.</p>

<p class="wp-block-paragraph">But the Duo is a more cohesive idea about foldables than most of its Android competition, precisely because Apple has a better app and developer story to lean on. Right now the problem for most Android foldables is that the inner screens aren’t that useful so there’s no super compelling reason to open them. The problem with the Duo is that the outer screen isn’t useful <em>enough</em>, so you want to open it all the time, and Apple’s ecosystem means that eventually the apps will be useful on the inner screen.</p>

<p class="wp-block-paragraph">But the real answer is somewhere in the middle — for both screens to be interesting and useful. Someone’s going to get there, and we’ll see if Apple can be the first.</p>
						]]>
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					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[JB Pritzker thinks AI could help us live to 100 — or threaten us like nukes]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1012839/pritzker-ai-privacy-data-centers-flock-congress-laws" />
			<id>https://www.theverge.com/?p=1012839</id>
			<updated>2026-10-19T11:46:56-04:00</updated>
			<published>2026-10-19T10:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Today, I’m talking with Illinois Gov. JB Pritzker, who has a lot of thoughts about AI, tech, and privacy. If you’ve been listening to the show, you know that one of my running theories is that those issues are driving a big and maybe kind of unexpected political realignment — and with the midterms coming [&#8230;]]]></summary>
			
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<img alt="A stylized portrait of Illinois Gov. JB Pritzker" data-caption="" data-portal-copyright="Image: The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/DCD_20261019_Pritzker.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Illinois Gov. JB Pritzker, who has a lot of thoughts about AI, tech, and privacy.</p>

<p class="wp-block-paragraph">If you’ve been listening to the show, you know that one of my running theories is that those issues are driving a big and maybe kind of unexpected political realignment — and with the midterms coming up next month, and early voting already underway in a lot of places, the stakes are pretty high right now.</p>

<p class="wp-block-paragraph">So I asked Gov. Pritzker about all that, and he was surprisingly willing to dive right into the absolute existential weeds of what government is even for. You’ll hear him say — and it’s hard to disagree — that some problems are just collective action problems that require the government to do a lot of work. We can’t solve all these problems one at a time, or even one state at a time. It’s a pretty deep conversation, and we really got into it on a lot of issues.</p>

<p class="wp-block-paragraph">And of course, I had to ask him: Are the Bears gonna stay in Illinois?</p>

<p class="wp-block-paragraph">Before we get going, do me a favor and subscribe to <a href="https://www.youtube.com/@decoderpod"><em>Decoder</em> on YouTube</a>, where we put out new episodes every Monday and Thursday.</p>

<p class="wp-block-paragraph">Okay: Illinois Gov. JB Pritzker. Here we go.</p>

<iframe frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP5027487751" width="100%"></iframe>

<p class="wp-block-paragraph"><strong>Gov. JB Pritzker, you&#8217;re the governor of Illinois. Welcome to</strong> <strong><em>Decoder</em>.</strong></p>

<p class="wp-block-paragraph">Thanks, Nilay. Great to be with you.</p>

<p class="wp-block-paragraph"><strong>I am very excited to talk to you. We&#8217;re in the heart of midterm season. You are running for reelection. I have to tell you. I have to be very honest with you. I personally feel a lot of pressure in this interview, not only because I&#8217;m speaking to a governor, but because I went to school in Chicago. My sister still lives in Chicago. My wife grew up in Illinois. Her entire family is farmers in North Central Illinois. Boy, do I have a list of questions for you. I have to do a good job here.</strong></p>

<p class="wp-block-paragraph">Well, we&#8217;re claiming you. Now that I know all that, we&#8217;re claiming you. You&#8217;re an Illinoisan.</p>

<div class="wp-block-vox-media-highlight vox-media-highlight"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24792604/The_Verge_Decoder_Tileart.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
</div>

<p class="wp-block-paragraph"><strong>I don&#8217;t know about that. I grew up in Wisconsin. Here&#8217;s my first question for you. I&#8217;m a die-hard Packers fan. Are you going to let the Bears move to Indiana?</strong></p>

<p class="wp-block-paragraph">That is not our intention. We are, in fact, in discussions with the Bears and the NFL about keeping the Bears either in Chicago or in Arlington Heights, but in Illinois.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m saying, as a Packers fan, nothing is funnier than the outcome of the Bears moving to Indiana. I just want to put that out there. Openly biased in this case — I own two shares of that stock — but I&#8217;m going to make the comparison here. And the reason I started there is not only because I think that&#8217;s a funny outcome, although I do, but it feels like we are in the middle of a generational political realignment.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m sure you feel that, in this election campaign, the idea of big business and how that should interact with the government, and how the government should be able to push back on big business and not give in to big business. All of that feels up for grabs.</strong></p>

<p class="wp-block-paragraph"><strong>And the comparison I will make in this specific case is your fellow governor, Gavin Newsom, in California. They sued the Ellison family, Paramount, over the Warner Brothers merger. Paramount threatened to leave. They made a lot of noise about Nashville, Texas, Miami, or wherever you make noise about these days, and it feels like Newsom caved. It feels like he pressured his Attorney General, Rob Bonta, to settle that lawsuit and keep them there.</strong></p>

<p class="wp-block-paragraph"><strong>They settled the lawsuit. The next day, the Ellison family is like, &#8220;We never&#8230; We&#8217;re from California. We would never leave.&#8221; I see a parallel here with the Bears that is connected to that larger realignment, how government and business should interact. Do you see that parallel? Do you feel that realignment?</strong></p>

<p class="wp-block-paragraph">Well, what I can tell you is we&#8217;re pretty tough negotiators in Chicago and Illinois, and that&#8217;s really what we&#8217;re in the midst of now with the Bears. But I understand your point about realignment. I mean, there is a generational change, and I think it&#8217;s also an attitudinal change about protecting taxpayers, protecting people who frankly are among the most vulnerable to all the technology that&#8217;s overtaking people&#8217;s lives and invading people&#8217;s homes.</p>

<p class="wp-block-paragraph">And so I do believe that the government has to be more active now and become a fighter for our people and not just a collaborator with business on everything. I&#8217;m a businessman, as you know, before I became governor. But I also know that, for the people of Illinois anyway, my job is to protect the working people of this state who often don&#8217;t have anybody protecting them except a government that will stand up for them. So that&#8217;s kind of the realignment that I see.</p>

<p class="wp-block-paragraph">And that generational shift, I agree with you. It&#8217;s partly a Democratic Party generational shift. Generationally, we&#8217;re a little more aggressive. And I&#8217;m probably older than the next generation that&#8217;s already possibly taking office this November. I&#8217;m 61 years old, but I think of myself as having come out of the tech world and as somebody who has been a fighter for progressive values that, yeah, we&#8217;ve got to become more aggressive and make sure we&#8217;re standing up for our people.</p>

<p class="wp-block-paragraph"><strong>There are two places where I see the realignment in particular. One is data centers, one is privacy, and you just see that as a bipartisan backlash to those things. I would actually add a third, which is antitrust broadly. It&#8217;s weird if you go into Silicon Valley. David Sacks is retweeting Lina Khan from the Biden administration talking about whether the AI industry needs an antitrust exemption to manage safety.</strong></p>

<p class="wp-block-paragraph"><strong>They both agree that these companies don&#8217;t need antitrust exemptions. They actually should be more competitive. Again, putting that in the context of regulating these companies, thinking about the dynamic between the government and the biggest companies in the world. I&#8217;ll just ask the question, I guess, more directly. Do you think Newsom was right to give in to Paramount, or do you think he should have forced them to make good on that threat to leave?</strong></p>

<p class="wp-block-paragraph">I can&#8217;t speak to the Paramount situation well enough to give you an answer, so it would be unfair for me to do so. I can say once again that our orientation today — and I think about the big AI companies and the big social media companies as well — has to be like, wait a minute, too much power in too few hands.</p>

<p class="wp-block-paragraph">Particularly when we talk about AI, where it&#8217;s potentially existential, but certainly transformative, which is probably a kind way to say it about the economy, that we&#8217;re going to have to get very engaged. Guardrails, of course, on both parts, but also addressing what I think on the AI front is potentially a significant change in employment in the United States. I&#8217;m not somebody who is necessarily convinced that we have to see a whole bunch of job loss, but that does feel like that&#8217;s the direction this is going.</p>

<p class="wp-block-paragraph">What I&#8217;m suggesting is we better be prepared, and we better be protecting people who are going to lose their jobs, or at least it appears they&#8217;re going to lose their jobs. And I&#8217;ll just give you this thought. If these days 4 percent unemployment is kind of the acceptable near full employment number, I think the problem we&#8217;re going to see is — if that&#8217;s sort of the level that we&#8217;re going to hopefully aim for and stay at — that in very short order, we could end up at 7 percent and have that be the baseline, or maybe 10 percent.</p>

<p class="wp-block-paragraph">And if you think about what&#8217;s happened, the upheavals of economies and of governments when you get to 10 percent unemployment in any country. We better be focused on how we&#8217;re going to give people the dignity of work and enough income so that they can make a life for themselves when you&#8217;re going to put people out of work by virtue of this technology. By the way, much of the benefit of that is going to go to a very, very few people. So we&#8217;ve got to wrestle with that and come to a conclusion.</p>

<p class="wp-block-paragraph"><strong>I wanted to start with some of the brinksmanship we have seen in the negotiations between, particularly, states and the big companies, because that brinksmanship is real. The threat is we will leave. We just covered, I don&#8217;t know, Kevin O&#8217;Leary in Utah talking about data centers, and</strong> <a href="https://www.theverge.com/cs/features/993343/stratos-utah-kevin-oleary-data-center-backlash/"><strong>the people of Utah really pushed back</strong></a> <strong>against Kevin O&#8217;Leary building that data center. But his argument was, &#8220;Well, I&#8217;m just going to shop around.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>This is what states do. They compete with tax incentives and benefits, maybe for data centers, which will put everyone out of a job. They compete for land use rights. You&#8217;ve got a rural state with a lot of farms in it. How are you thinking about that dynamic? Do you feel like you&#8217;re in competition with the other states, or is this bipartisan realignment creating more of a level playing field where these companies are going to have to actually give something?</strong></p>

<p class="wp-block-paragraph">We are in competition. We just are because it isn&#8217;t bipartisan, at least if you ask me. Unless there is a change in the government. I&#8217;ll pick on Texas for a second, and there is a chance that you&#8217;ll see a new governor in Texas as of November 3rd. In fact, a good chance. But if you look at Texas as it&#8217;s run today by a three-term, hoping to be a four-term, Republican governor and a Republican legislature, they have no intention of changing their alignment about incentives.</p>

<p class="wp-block-paragraph">In the state of Illinois, we don&#8217;t want to have to do that. I mean, we obviously want to protect the revenue that we&#8217;ve got for the state to pay for the things we think are valuable to our people, but we also want to make sure that we&#8217;re attracting jobs and not losing jobs. And in a world where South Carolina, Michigan, Texas, Florida — pick your poison. Michigan may be slightly different just because it&#8217;s got democratic control, but these are our competitors. When I&#8217;m competing to have a company move to Illinois, I&#8217;ve got to make sure, first of all, that I&#8217;m somewhere in the ballpark when it comes to the incentives, because otherwise we don&#8217;t even get considered.</p>

<p class="wp-block-paragraph">And then when I say somewhere in the ballpark, I mean, I want to give away less than more, and then I want to provide whatever other advantages I can that aren&#8217;t financial so that I can protect the resources that we have. An example of that is, we like to talk about a kind of white-glove service that we offer to companies. If you&#8217;re going to bring a factory here, let&#8217;s say, just to give an example, we want to make sure that we&#8217;ve got somebody who&#8217;s kind of a concierge for your company that&#8217;s walking you through each of our departments where you need a permit. It doesn&#8217;t mean we&#8217;re lowering the standards. It just means, a lot of times, the bureaucracy eats up so much time that it makes it impossible for a company to actually do what they want to do in your state.</p>

<p class="wp-block-paragraph">We try to make sure that if we&#8217;re going to attract a large company, with 1,000, 2,000, 3,000 jobs, that we&#8217;re at least making it a little easier for them to go through without having to give them massive tax incentives. So that&#8217;s the way I think about it. We are in competition. There&#8217;s just no doubt about it. Should we be? There&#8217;s a lot of discussion about whether we shouldn&#8217;t, and maybe at the federal level we should do something about leveling the playing field, but this is the world we&#8217;re living in right now.</p>

<p class="wp-block-paragraph"><strong>I wanted to ask those questions just to set the baseline. I really do think something is happening. A lot of young people are dissatisfied with the status quo. A lot of people in general are dissatisfied with what big tech companies are trying to do with AI, with the potential for job loss.</strong></p>

<p class="wp-block-paragraph"><strong>And the relationship between the people, the government, and those companies seems more fraught than ever, especially as they&#8217;re trying to expand their physical infrastructure with data centers, as they all become defense contractors, literally taking our tax dollars to sell weapon systems and collect data for the government. That&#8217;s a big swirl.</strong></p>

<p class="wp-block-paragraph"><strong>I wanted to start there, but I just want to take one second here and ask you the</strong> <strong><em>Decoder</em></strong> <strong>questions because I personally think the operation of government is so opaque. It&#8217;s very easy to figure out how big companies are run. The CEOs won&#8217;t shut up. They&#8217;re on podcasts all day long. I think most people have no idea how your job works.</strong></p>

<p class="wp-block-paragraph"><strong>So you were elected governor. How is your office set up, and how have you structured the state government of Illinois?</strong></p>

<p class="wp-block-paragraph">Just starting from where I sit, and then, of course, we look at it from a customer service perspective. But starting just at the top, I actually did something that no governor of Illinois has ever done — which is that I created not just one deputy governor. We obviously have a lieutenant governor who&#8217;s elected also, but a deputy governor is somebody getting appointed by me to serve under me, to help manage the government with me. What I did was put four deputy governors in place, a general counsel, and my chief of staff.</p>

<p class="wp-block-paragraph">Why is that important? Because what I&#8217;ve tried to do is to break down the silos of government. I took all of the health and human services-related departments — that&#8217;s the Department of Public Health, the Department of Human Services, the Department of Healthcare and Family Services, everything from health insurance, Medicaid, and public health during the pandemic — and put it all under one deputy governor working directly for me. The idea is that instead of my having, let&#8217;s say, 26 direct reports, I&#8217;ve got four or five direct reports plus my chief of staff, who each have, let&#8217;s say, six or seven departments underneath them.</p>

<p class="wp-block-paragraph">From my perspective, what I wanted to do was make sure that I&#8217;m breaking down the silos of government, making these departments that are often building walls, and they don&#8217;t want to talk to one another because they&#8217;re afraid they might lose jobs in one department to another department, or lose control of a program if they&#8217;re talking to one another. That&#8217;s the way it used to be. Now we&#8217;re like the deputy governor is there to either beat the heads together or at least bring them together so that they will be operating the government more efficiently. Okay, so that&#8217;s from the top.</p>

<p class="wp-block-paragraph">From the bottom, which is: how do people who live in Illinois interact with the state government? And obviously, technology is one of the upgrades that&#8217;s occurred and made it easier. Illinois, frankly, had not significantly invested in those processes before I became governor, or in the technology that was necessary. And I&#8217;ll just give you one example of this: We created something called BEACON, which is designed to address the problem that parents and families have with mental health for children. It turns out that there were seven different ways in which people approached the government to get help, and we weren&#8217;t coordinating those, and we weren&#8217;t helping to provide all of the resources.</p>

<p class="wp-block-paragraph">I&#8217;m talking about outside resources. How do you find a therapist? How do you find a psychiatrist? And how do you pay for those things? Medicaid, if you can&#8217;t afford it on your own. But the point is, there&#8217;s one door to enter through BEACON that allows you to get access to all of those resources, even if they&#8217;re in multiple departments. So that&#8217;s just one example. We&#8217;re trying to think of this as a customer service operation. It’s one thing to say this is how the org chart looks and another thing to say, this is how you access all the resources of the government that you need. </p>

<p class="wp-block-paragraph">We provide programs that really matter to people. We have a birth equity initiative to reduce maternal mortality, particularly in Black and Brown communities. And free diapers for some people. The problem is, people don&#8217;t even know that the programs exist, and how would you ever figure out that the programs exist, especially if you&#8217;re a working person who&#8217;s working two minimum-wage jobs? You don&#8217;t have any time, and you don&#8217;t have any money, and you don&#8217;t even know how to talk to the government. And so we&#8217;re trying to fix all of those problems of the government with the way that we interact with people.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s funny. It feels like that is one of the bigger opportunities when it comes to AI, just letting the AI navigate a bureaucracy for you and communicate what resources are available. The flip side of that is that people hate AI. They truly dislike it, and it doesn&#8217;t feel like that connection has been made — that a lot of these tools can actually just navigate a bureaucracy for you. Are you thinking that should be an investment that you make, that it might be what turns the tide in terms of how people feel about these tools?</strong></p>

<p class="wp-block-paragraph">Yes, but I&#8217;m not plunging headlong into it. And I realize that there are probably states that are plunging headlong into it.</p>

<p class="wp-block-paragraph"><strong>I mean, the United States government rolled out</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/1002018/the-white-house-launched-an-ai-chatbot-for-government-related-questions"><strong>its AI chatbot</strong></a> <strong>to look at webpages across the government.</strong></p>

<p class="wp-block-paragraph">Well, there you go.</p>

<p class="wp-block-paragraph">I guess what I&#8217;m trying to do is make sure that… I created something called the AI Cabinet in my government, and that is to essentially bring the experts on AI together with the leaders of my mainstay agencies of state government, so that we&#8217;re thinking about privacy, safety, and efficiency. And those things have to be talked about together. You can&#8217;t just say we&#8217;re going after efficiency and we don&#8217;t really care about the other two.</p>

<p class="wp-block-paragraph">So that&#8217;s the idea, the AI cabinet. It&#8217;s also that, honestly, there are things, as you know, about AI that are dangerous. And so we&#8217;ve got our emergency management agency on that AI cabinet. We&#8217;ve got our state police on that AI cabinet. And remember, a lot of the people that work in those agencies aren&#8217;t particularly proficient at AI or really understand the potential and the potential dangers.</p>

<p class="wp-block-paragraph">That&#8217;s why we brought in experts, for example, from the University of Chicago, the University of Illinois, just as two examples of places where we&#8217;re drawing expertise. So yeah, there&#8217;s a lot to be done. I would say we&#8217;re trying to approach it carefully before it gets out of control to a point where we have no way to pull it back in.</p>

<p class="wp-block-paragraph"><strong>The other</strong> <strong><em>Decoder</em></strong> <strong>question I ask everybody is about decisions. You have a big job. You have some constraints in your decision-making process, right? There&#8217;s a state legislature, there&#8217;s a federal government, you have other agencies in your state. How do you make decisions? What&#8217;s your framework?</strong></p>

<p class="wp-block-paragraph">Well, I don&#8217;t do it the way Donald Trump does.</p>

<p class="wp-block-paragraph">It&#8217;s funny you say it that way. I guess I start with the idea that we have a problem to solve and that decisions have to get made. Are those decisions ones that need to come to the governor? Because you&#8217;re right, I only have so much bandwidth. So the question is: which are the most serious ones that can&#8217;t be solved by other people, or are unlikely to get the outcomes that I would want by handing them over to other people? And then those automatically come to me.</p>

<p class="wp-block-paragraph">So what I&#8217;m making decisions about is kind of the first answer to your question, and then it&#8217;s how do I actually make the decisions? For me, I am not one of those people who thinks that I&#8217;m right 100 percent of the time. Maybe a good way to describe it, and I&#8217;m joking a little bit when I say it, is that I&#8217;m 90 percent sure I&#8217;m right, but there&#8217;s also a 10 percent chance that I&#8217;m dead wrong. I want to make sure that I&#8217;m getting input and a debate before I actually make the final decision.</p>

<p class="wp-block-paragraph">Someone once told me that the best CEOs are ones that, in their organization, are a little bit below average in terms of their capability and intellect. I&#8217;m not saying we want below-average leaders. I&#8217;m just saying you&#8217;re so good at hiring that you&#8217;ve got people in your organization who are really far better than you are at various things that you&#8217;re not particularly good at. Maybe knowing what you don&#8217;t know and being willing to ask for help is a philosophy that I have. Be willing to ask for help if it&#8217;s something you really don&#8217;t know.</p>

<p class="wp-block-paragraph">And I&#8217;ll be honest, when you become governor of a state, there are a whole lot of topics within the purview of a governor. Making decisions about all those topics, maybe a human being who has super intelligence might be able to do it, but most people don&#8217;t start out knowing everything there is to know about public health, public safety, and education. And so you start out with what you know and then try to add expertise to it and then make decisions based upon the best experts debating one another in front of you. At least that&#8217;s how I like to do it.</p>

<p class="wp-block-paragraph"><strong>Give me an example. Governor Kathy Hochul from New York</strong> <a href="https://www.theverge.com/podcast/986661/ny-gov-kathy-hochul-ai-data-centers-ban-3d-printed-guns-flock-cameras"><strong>was on the show</strong></a><strong>. She said in her first week she needed to declare a state of emergency because of a hurricane, and she just didn&#8217;t know how, which was very humanizing in its way. Give me an example of when you became governor, and there was something where you just didn&#8217;t know.</strong></p>

<p class="wp-block-paragraph">COVID.</p>

<p class="wp-block-paragraph"><strong>Sure.</strong></p>

<p class="wp-block-paragraph">I mean, honestly, no one runs for governor thinking there&#8217;s going to be a global pandemic. You think you&#8217;re going to solve education problems for people or put more money in people&#8217;s pockets by raising the minimum wage or whatever, but COVID comes along. And I have to admit, the level of expertise, I don&#8217;t think any governor… Well, maybe Josh Green, the doctor who&#8217;s the governor of Hawaii, maybe he had a lot to [of expertise] start with — but for the rest of us humans, that was one where we were learning on the job.</p>

<p class="wp-block-paragraph">We were working 18 hours per day. My entire team was all in, and we had to do things like emergency procurement of ventilators and masks, and we had to go outside the box. It&#8217;s not like we could just put it through our central management services, look for a contract, or whatever. This was like, I need masks in three days.</p>

<p class="wp-block-paragraph">I&#8217;ll tell you a quick story, if you&#8217;re interested, about my interaction with Donald Trump at the time because I think it&#8217;s interesting, anyway. But I&#8217;m not a big fan of Donald Trump, in case you didn&#8217;t know. I was one year into office when the COVID pandemic hit, and I had not&#8230; I mean, I talked to his administration, but I didn&#8217;t talk to him directly. So I picked up the phone and called him, and I said, &#8220;Mr. President.&#8221; By the way, I wrote a script for myself because I know he likes to be flattered, and I&#8217;m not somebody who normally likes to flatter him, but I wrote a script for myself. I saved it; I even have it today.</p>

<p class="wp-block-paragraph">And I said, &#8220;Mr. President, you&#8217;re a great businessman, but you can understand that paying $8 for an N95 mask that should cost us 75 cents means we&#8217;re in a national emergency. We need to be able to get these things and afford them, and I&#8217;m competing against all the other states. We need to invoke the Defense Production Act in order to make sure that we&#8217;re making enough masks in the United States.&#8221; That&#8217;s what I told him. And then I said, &#8220;But I need masks right now. What can you do for me?&#8221; I said, &#8220;I need 2 million N95 masks, and I need 4,000 ventilators.&#8221; And he never delivered, just so you know, even though he promised that he would deliver.</p>

<p class="wp-block-paragraph">The challenges in COVID were mighty, and the organization that we had to create around it… I had meetings every morning just on this topic, figuring out, okay, how many hospital beds [are available]? We didn&#8217;t have a system that would tell us statewide how many hospital beds are available in each region. What happens if you have an outbreak and it really is overtaking some region? What do we do?</p>

<p class="wp-block-paragraph">And so these were all the things we had to learn on the fly. And all I can tell you is, once again, back to hiring great people to have around you, I really felt like I proved that I had done a good job of hiring because the people around me were tremendous. One of whom, by the way, is now running as my lieutenant governor partner in this election.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s interesting you brought up COVID in the context of our conversation about generational political realignment. I would actually point to COVID as the beginning of a particular realignment around what the government should measure, how much control the government should have over people, and all of that has led, I think, directly into the bipartisan pushback against Flock cameras.</strong></p>

<p class="wp-block-paragraph"><strong>The very notion of privacy is not, in my mind, left or right anymore. The CEO of Flock got himself in all kinds of trouble because he kept saying all the people who wanted to ban Flock cameras are criminals, and he would go on MAGA media and say this. I think that position was just rejected. We can see in states around the country that there&#8217;s pushback against Flock cameras. I would point to COVID as the beginning of that.</strong></p>

<p class="wp-block-paragraph"><strong>The idea that the government could be too intrusive, and in particular, the government should not be able to measure things. “If you don&#8217;t test, there won&#8217;t be COVID” just became an idea. And the idea that we shouldn&#8217;t measure things, or we should tear down our systems of measurement, is a big part of the second Trump administration. But I see that privacy connection very clearly to COVID. In one world, the government coming together to protect its citizens and build a bunch of systems could have gone a very different way. In the one we live in, there&#8217;s ferocious pushback to that, on the left and the right in some ways. How do you feel about privacy right now?</strong></p>

<p class="wp-block-paragraph"><strong>I know Illinois leads the nation. You&#8217;ve got the Biometric Identification Protection Act. Every time I fly to Chicago, I&#8217;ve got to push the button at the airport to say that it&#8217;s okay to look at my face. That&#8217;s one way of going about it. But then you do have, I think, hundreds of Flock cameras in Cook County alone. People have Meta glasses with cameras in them. There&#8217;s something happening with privacy that is running right into the aftershocks of COVID and how people feel about government intrusion. How are you finding a way through that balance?</strong></p>

<p class="wp-block-paragraph">Well, and don&#8217;t forget AI.</p>

<p class="wp-block-paragraph"><strong>Yep.</strong></p>

<p class="wp-block-paragraph">As you&#8217;re suggesting. I mean, talk about a collision. This focus on privacy is warranted and long overdue, to be honest with you. I understand what you&#8217;re describing about COVID, but I think something that came out of COVID got accelerated, and that was conspiracy theories.</p>

<p class="wp-block-paragraph"><strong>Yes.</strong></p>

<p class="wp-block-paragraph">And I&#8217;m not suggesting that everything you hear now about the pushback around privacy is a conspiracy theory, but it is easy for these things to spread, and people have misinformation that&#8217;s informing them about how these things are used. Having said that, I guess what I think is that we are having to solve multiple problems at the same time, and that AI is coming.</p>

<p class="wp-block-paragraph">Let&#8217;s just go to AI for a second. It&#8217;s here. I mean, I say it&#8217;s coming, but it&#8217;s here. It&#8217;s not going to stop. We&#8217;re not going to become Luddites without any AI. So the question is, in the context of privacy, what guardrails are we putting on AI, and how are we managing it? This idea that the president and David Sacks had, where they got all the companies together and said, &#8220;Hey, how about you guys self-police?&#8221; That&#8217;s not going to work, at least not for protecting people&#8217;s privacy. And frankly, it&#8217;s not going to provide any safety either because everybody&#8217;s going to operate in their own self-interest. It&#8217;s one of the reasons why you need a government, in my view.</p>

<p class="wp-block-paragraph">I&#8217;m not suggesting the government is any smarter than these companies. But one of the reasons you have any kind of collective action of the government is because, separately, as you know, people operate in their own self-interest. I mean, you could have a Hobbesian world where people are killing each other, and there are no rules about it. So I think we&#8217;ve got to use the government as a tool and also be smart within the government. And that&#8217;s where the generational change, I think, is hugely important. Use the government as a smarter, less bureaucratic collection of people devoted to protecting the privacy of everyone and making sure that we&#8217;re addressing all the other challenges that come from AI.</p>

<p class="wp-block-paragraph">So I guess I&#8217;ll just say, I don&#8217;t think we&#8217;re anywhere near where we need to be, but I will say, if we don&#8217;t have a federal government, now I&#8217;ve got a lot of&#8230; I&#8217;m very proud of the things that we&#8217;ve done here in Illinois around the AI Safety Measures Act, which is the toughest in the country, the Children&#8217;s Social Media Safety Act, and so on. I&#8217;m proud of the work we&#8217;ve done, but state by state, this is not the way to do this. We&#8217;re doing the best we can in the absence of a federal government that is addressing these issues.</p>

<p class="wp-block-paragraph">And when I say federal government, I&#8217;m not just pointing at Trump. I&#8217;m pointing at Congress. No action on their part means that we&#8217;re going at it alone. And right now, I don&#8217;t know how many AI safety measure acts have been passed, but it looks like three to me. I mean, it&#8217;s New York, California, and Illinois. Maybe you could name a couple of others, but we three were the first. And yet, we’ve got 47 other states.</p>

<p class="wp-block-paragraph">This worries me a great deal. You&#8217;re raising issues, and I&#8217;d love to tell you I have all the answers. I can tell you what we&#8217;re trying to think about is that we are the… People sometimes say that the states are laboratories of democracy. They’re actually laboratories of policy, and we are trying to, at least in Illinois, use ourselves as a laboratory for policy while not creating disadvantage for ourselves. And so that&#8217;s a very challenging thing to do, and why we need to change what&#8217;s happening at the federal government.</p>

<p class="wp-block-paragraph"><strong>Focus on privacy for one second. I understand what you&#8217;re saying about AI. I think part of the privacy debate around Flock cameras, for example, is, well, sure, you can have one license plate reader in one intersection. And if the cops had to go there and pull the SD card out of it, drive it back to headquarters, upload it to their Apple IIe, and look at it manually, maybe people would feel one way about it.</strong></p>

<p class="wp-block-paragraph"><strong>But those cameras are all networked. They don&#8217;t have any access controls really. There are infinite reports of local police chiefs tracking their girlfriends across state lines with these cameras. You add in a system like Palantir, which can synthesize multiple databases and do all kinds of tracking across all kinds of systems. People see that.</strong></p>

<p class="wp-block-paragraph"><strong>The turn that is being made is that you can connect a lot of databases of information together, search them without a warrant, and track people across the entire country. You could ban that state by state. You could regulate it city by city, which we&#8217;re seeing happen with Flock, and you could maybe have some federal controls around privacy there. None of it&#8217;s really happening, but on the ground, people are ferociously pushing back. And that&#8217;s the connection I&#8217;m making to COVID, conspiracy theories, and how much power the government should have to surveil you and look at you.</strong></p>

<p class="wp-block-paragraph"><strong>Something happened in there where people&#8217;s attitudes about that really shifted. And I would say one of my core beliefs is that Americans do not like being told what to do. Party politics aside, Americans don&#8217;t like being told what to do. Something about that flipped and connected to: we have a network of license plate-reading cameras, and we&#8217;re going to tear them down when we see them because there&#8217;s something about that that offends us as Americans.</strong></p>

<p class="wp-block-paragraph"><strong>Illinois does have privacy laws. I think the last update to the biometric law you did was in 2024, and it has changed again. It&#8217;s gotten more vociferously opposed to tracking and surveillance in this country. Do you think you need another update to that privacy law?</strong></p>

<p class="wp-block-paragraph">I think we should be looking at that question every year. I&#8217;ll give you an example of it. We passed it, and again, I&#8217;m back to AI because I think how you&#8217;re describing it was a perfect way to say it. If it was an SD card that they had to go grab and then analyze back at the station, it&#8217;d be a different thing. But it&#8217;s AI that&#8217;s operating these things, and that&#8217;s allowing this stuff to move instantaneously and track people.</p>

<p class="wp-block-paragraph">Look, should we be addressing it? Yeah, every year. It&#8217;s like the issue of ethics in government. What I mean is, the minute you put an ethics law in place, there&#8217;s somebody who&#8217;s trying to get around it. I mean, every year, it&#8217;s like every law&#8230; this is probably true across all of capitalism, maybe. There are always people trying to find a way around the law. Put a tax law in place, and someone&#8217;s trying to figure out how to get around it. And I think the point you&#8217;re making is that that&#8217;s why you need to have a proactive government, less bureaucratically and more aggressively trying to address these things. Are we going to be able to keep up with it? I&#8217;ll be honest, I don&#8217;t think so. And I also don&#8217;t think you can say, &#8220;Well, we&#8217;re just going to shut it all down&#8221; because there are things you&#8217;re missing out on.</p>

<p class="wp-block-paragraph">It&#8217;s sort of like, and again, I keep going back to AI, but I think a lot about it. My children are 21 and 24. They&#8217;re going to live to 100 or 110 years old because AI is going to solve a whole bunch of medical challenges, and already is. There&#8217;s a cure now for sickle cell anemia, and people who would otherwise die at 25 or 30 years old are going to live full lives. This is going to happen across the board in cancer and everything else. And so there&#8217;s all good in there, and then there&#8217;s the bad. So I know what you&#8217;re saying. I guess all I can tell you is I&#8217;m a believer that we can progressively — I don&#8217;t mean that in a political fashion — address these challenges.</p>

<p class="wp-block-paragraph">In Illinois, we passed a law that disallows the use of AI in therapy for people because we think too much information gets collected, not enough humanity in the process, and we think that it should have humanity in it. Again, we&#8217;re not trying to shut it down across the board, but we&#8217;re going to have to see how it gets used and where it&#8217;s improper.</p>

<p class="wp-block-paragraph">And I know that sounds imperfect because the technology is moving so fast that the idea that we&#8217;re going to be able to keep up with all the ways in which someone&#8217;s privacy could be breached seems very difficult, but I don&#8217;t know any other way to do it. That&#8217;s why you have a government, and maybe in the end we&#8217;re going to have this competing use of things like AI, where AI is monitoring AI, and AI that&#8217;s kind of privacy-friendly or focused on privacy is going to be monitoring the AI that&#8217;s not. But again, I know you don&#8217;t want to just talk about AI.</p>

<p class="wp-block-paragraph">I am concerned. This issue of privacy has been around for a long time. You&#8217;ve been talking about it, I&#8217;m sure; I&#8217;ve been talking about it since before AI. This is like everybody giving over their personal information in exchange for access to something. And that was happening for a while, and then we&#8217;re all getting ads that are personalized to us based on stuff that we&#8217;ve essentially given up privacy for.</p>

<p class="wp-block-paragraph"><strong>No, it&#8217;s funny. People believe, and we can write as many stories as we want about how your iPhone is not actually listening to you, but the ad tracking is so good that everyone believes that their iPhones are listening to them. The next turn is that it is now technologically feasible for these systems to listen to you all the time. And I can&#8217;t fall back on the idea that it&#8217;s cheaper for them to do the ad tracking when you hit I accept than to listen to you all the time, which was, for a decade, the right answer.</strong></p>

<p class="wp-block-paragraph"><strong>The economically correct answer was that ad tracking was cheaper than listening to you all the time. That might be very different in the future. There are already devices that we cover here at The Verge that purport to listen to you all the time and turn that into some actionable data. And it feels to me like the tech industry is trying to drive a truck through our privacy law, through our lack of AI regulations, through an entire system of governance that is designed for the pre-AI era.</strong></p>

<p class="wp-block-paragraph"><strong>The notion that you don&#8217;t have privacy in public worked really well when everyone didn&#8217;t have a cell phone that could connect to the cloud and instantly search every photo all at once, all the time, and do facial recognition. We live in that world now. I would say the public sentiment towards the idea that you don&#8217;t have privacy in public places has turned.</strong></p>

<p class="wp-block-paragraph"><strong>They don&#8217;t like the Meta glasses. They call them pervert glasses for a reason. And somewhere in there is, well, the federal government should pass privacy law. It is a failure of imagination in the United States. We don&#8217;t have federal privacy law. And then somewhere in there is the notion that the states are laboratories of democracy and policy.</strong></p>

<p class="wp-block-paragraph"><strong>It is amazing, by the way, how often on this tech and business show, Thomas Hobbes comes up and the very notion that the government is there to serve as an extension of us solving collective action problems. It comes up over and over again because I think the tech industry does not want to respect that dynamic.</strong></p>

<p class="wp-block-paragraph"><strong>This is why I started with that relationship between government and business, and the pushback and the negotiation, because here it feels like the tech industry is in a bubble of its own making. Truly, in a media bubble of its own making. And then all of the polling is, well, we hate AI. In particular, young people hate AI. And then all of the action is around data centers where NIMBYism, the most American of policy levers, is being pulled to keep these data centers out of communities. And that&#8217;s one way to stop AI.</strong></p>

<p class="wp-block-paragraph"><strong>You just pulled back on data center tax incentives in July. You&#8217;re pushing the state legislature to adopt a suite of guarantees on reforms for new construction. Do you think data centers and the pushback on data centers is an effective route towards AI regulation?</strong></p>

<p class="wp-block-paragraph">No, I don&#8217;t. I think it&#8217;s an effective route toward data center regulation. I know that people have conflated and put together their opposition to data centers with their opposition to AI. And a lot of people can&#8217;t describe why they&#8217;re opposed to one or the other because they&#8217;re conflated with one another. But I can say that — I mean, at least our aim is focused on the idea, and people really feel this, right, and there&#8217;s real data to back this up — the data centers themselves put aside what they&#8217;re doing inside a data center.</p>

<p class="wp-block-paragraph">The data centers and what&#8217;s happening are eating up the available electricity, and that&#8217;s causing your electric bill to go up. At least that&#8217;s how everybody feels. There are a lot of things that we should have been doing in many years gone by to get to a point where electricity bills shouldn&#8217;t have to go up now. And that has to do with building out the grid. It’s a world where regulation and cross-border challenges have made it nearly impossible for a lot of the grid to get built the way that it should have. We produce a lot more electricity in the United States than we use, but we just don&#8217;t transport it well enough, and we would have a lot more available if we transported it better.</p>

<p class="wp-block-paragraph">Okay, but even if you think that can&#8217;t happen efficiently, we need to build more capacity on the grid. My only point is the opposition to data centers is, in part, a result of the economic situation that&#8217;s happening right now in the country, where electric bills, gas, rent, everything has gone up. Your electric bill shows up every month, and it continues to go up, and people kind of scratch their heads and say, &#8220;Who am I paying for?&#8221; This is happening, and this is particular to Illinois.</p>

<p class="wp-block-paragraph">We&#8217;re not going to have a whole discussion about energy policy, but I could just say this: We produce more nuclear power in the state of Illinois than any other state. Roughly 53 or 54 percent of our electricity comes from nuclear power, and we&#8217;re a net electricity exporter. So we have an excess in Illinois, but our bills are going up, and that&#8217;s because of the methodology of the regional transmission organizations. Again, not to get into all the details of it, but essentially, if Ohio decides to build a hyperscale data center, our bills in Illinois are affected, and that&#8217;s shocking to people who live in Illinois. But what they know is they don&#8217;t want their bill to go up, so they don&#8217;t want another data center nearby — even though the one in Ohio is actually causing the problem, even if you choose to oppose data centers.</p>

<p class="wp-block-paragraph">So this is a challenge. I think there&#8217;s a lot of information that needs to be spread. But most of all, we just need a whole lot more capacity and a whole lot more grid that will, I think, subside some of the concern about data centers. To your point, privacy is, I think, more related to AI than data centers. And it&#8217;s not just AI, but the way AI is used. So we&#8217;re going to have a lot of opposition. You make an excellent point. I think this feeling of being out of control — you are not in control of your environment anymore — that&#8217;s the thing that is causing anxiety.</p>

<p class="wp-block-paragraph">I want to go back to something really important that I was saying earlier. We need better people running for public office. We need smarter policy development in government. And part of that is a generational shift that&#8217;s needed and a better understanding. We have people who are serving in the United States Senate who have no idea. Was it the Secretary of Education, Trump&#8217;s Secretary of Education, <a href="https://www.usatoday.com/videos/news/politics/2025/04/14/education-secretary-confuses-ai-with-a1-viral-speech-blunder/83077432007/">who called it A1</a>? I mean, because we&#8217;ve got older people who don&#8217;t have any exposure who are making policy theoretically on these things, and it should disturb us all. It&#8217;s one of the reasons we&#8217;ve got to advance the cause of better people and better systems in government.</p>

<p class="wp-block-paragraph"><strong>We are on the cusp of an election. There might be a new Congress. There might be new leadership in Congress. There are a bunch of old Democrats too. In fact, I could probably point directly to Joe Biden&#8217;s age in the last election as the reason that he lost. Do you think that you need a wholesale change of leadership of the older Democrats as well?</strong></p>

<p class="wp-block-paragraph">You said, &#8220;Do we need a wholesale change?&#8221; I mean, I can tell you that I don&#8217;t think we should be telling —</p>

<p class="wp-block-paragraph"><strong>Well, now I live in New York. I&#8217;ll just ask you, do you think Chuck Schumer should be the Senate majority leader if the Democrats take the Senate?</strong></p>

<p class="wp-block-paragraph">That&#8217;s a decision people in the Senate are going to make. I have no influence over it. I can tell you this: I am opposed to term limits because I think that you should have all the choices. You&#8217;re a voter. If you want to vote for the 75-year-old, I mean, go ahead.</p>

<p class="wp-block-paragraph">I&#8217;m just suggesting that a great case could be made for the 45-year-old who&#8217;s just as smart as the 75-year-old was when he was 45, or maybe is now, but has a modern look at the issues around AI privacy, everything else we’re discussing, and a more aggressive view of how we ought to be reining in big corporations in their invasion of our lives. But I think people ought to make their own choices. I mean, for us to say, &#8220;Well, we should have an age limit. You&#8217;re 70, that&#8217;s it, you&#8217;re out.&#8221; I think that belies who we are as a democracy.</p>

<p class="wp-block-paragraph"><strong>Well, you convinced me. I&#8217;m 46. I&#8217;m announcing my run for president here with you, Governor. That was a rousing speech.</strong></p>

<p class="wp-block-paragraph">Listen, I would vote for you in a second if the choice was you and Donald Trump.</p>

<p class="wp-block-paragraph"><strong>A low bar, but I&#8217;m glad I crossed it.</strong></p>

<p class="wp-block-paragraph"><strong>Let me tie two ideas together at the end. We&#8217;ve talked a lot about AI regulation. You mentioned social media regulation a little bit earlier in this conversation. I know that Illinois has a social media law. You have a bell-to-bell ban on phones in schools for kids.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m just going to pick on Mark Zuckerberg. It&#8217;s easy to pick on Mark Zuckerberg. If you look at how he talks about social media regulation, he basically describes the tragedy of the commons. You signed the landmark settlement with him. I think Illinois is due to get $750 or $760 million out of that settlement. And a big part of it is that TikTok and YouTube have to agree to the same terms, and then Meta will pay the rest of the money. And Zuckerberg very clearly has said that&#8217;s because if Instagram falls back on engagement bait and TikTok doesn&#8217;t, the kids will just use TikTok. And so the government has to get everyone to agree.</strong></p>

<p class="wp-block-paragraph"><strong>I will tell you that Neal Mohan, the CEO of YouTube, does not agree. He&#8217;s</strong> <a href="https://www.cnn.com/2026/09/23/tech/youtube-ceo-meta-child-safety-settlement"><strong>not going to sign onto this</strong></a><strong>. That&#8217;s one whole fight. Look at how Mark Zuckerberg talks about AI regulation. There&#8217;s none of that dynamic at all. He&#8217;s like, &#8220;It should be a free-for-all. We&#8217;ll all compete. If it&#8217;s not safe, the market will tell us. We&#8217;ll be fine.&#8221; And in my mind, these ideas are at total odds with each other.</strong></p>

<p class="wp-block-paragraph"><strong>In the market where he makes all the money, the government has to step in and stop him from hurting kids because apparently there&#8217;s no market demand for safe social media. And in the market where the AI CEOs are telling us they might kill us all if we don&#8217;t stop them, it&#8217;s a free-for-all, and the market will tell us if they accidentally kill everybody. How do you reconcile those things? Are you just happy that you got the social media case done after a decade of failing to regulate social media, or do you think you can solve AI with regulation this time instead of letting it just cook?</strong></p>

<p class="wp-block-paragraph">Look, I&#8217;m an optimist at heart, so I&#8217;m not going to suggest to you that I absolutely know that we can solve all the problems that we&#8217;re now facing, but I don&#8217;t know what else we can do. Other than, again, progressively making sure that we&#8217;re trying to address each of these things, trying to anticipate them to the extent we can. Can we be faster than AI is developing? I don&#8217;t know. But we can&#8217;t stop trying. I know that. And I would suggest to you that my optimism is founded because I think the vast majority of people want what you&#8217;re describing, which is reining it in.</p>

<p class="wp-block-paragraph">And again, without destroying companies. I don&#8217;t think we&#8217;re all trying to do that. What we&#8217;re trying to do is stop the invasion into our home, stop the invasion into our children&#8217;s lives. I do think we can do that, but that&#8217;s because we&#8217;ve solved a whole lot of huge problems. That&#8217;s kind of like my answer to: is AI potentially existential? The answer, of course, is yes. And can we solve it? I don&#8217;t know. Nuclear weapons&#8230; I mean, just to give something of an analogy to something else. I mean, nuclear weapons are still hanging over us as a danger to humanity. And so far anyway, we&#8217;ve managed not to blow up the world. I don&#8217;t know whether that gives you any optimism, but it does to me.</p>

<p class="wp-block-paragraph">We, as a country, can figure out how we want to rein it in here. That we, as a country, can work with our allies to figure out how we want to collectively try to rein it in. And then we have enemies in the world and competitors in the world, and we&#8217;ve got to figure out how we&#8217;re going to&#8230; Maybe it&#8217;s mutually assured destruction, like it was with nuclear weapons, but these are all things we&#8217;re going to have to work on, and work on fast.</p>

<p class="wp-block-paragraph">And it&#8217;s scary because someone analogized this to&#8230; I mean, think about the early 1950s when every kid had to learn that if there was a nuclear blast, an atomic bomb that went off, get under your desk. That wouldn&#8217;t have been very effective. But the point is, people lived with the idea that a terrible nuclear holocaust could occur with a nuclear explosion. And so I think we&#8217;re heading into that world again with AI. I hope I didn&#8217;t stray too much from your question, but —</p>

<p class="wp-block-paragraph"><strong>Let me ask you this, and it&#8217;s a little bit of a wild card here at the end.</strong></p>

<p class="wp-block-paragraph"><strong>We cover this industry so closely here, and the big difference with nuclear weapons is that there weren&#8217;t five companies building bleeding-edge nuclear weapons in private capacity, led by five guys who all hated each other. But that&#8217;s the dynamic of the AI industry. They all truly hate each other, and they&#8217;re all trying to make as much money as they can as fast as they can.</strong></p>

<p class="wp-block-paragraph"><strong>And then some of them think the AI is alive. If you ask Anthropic, and we&#8217;ve done this, &#8220;Is Claude alive?&#8221; They don&#8217;t say no. They will argue with you about the definition of alive and suggest that, to them, alive means having a biological component and Claude doesn&#8217;t have that, but it might be conscious.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s a race to build AGI in the industry. Some people truly believe they&#8217;re building alien minds that have a different kind of consciousness. I&#8217;m not sure any government at any level has ever had to regulate that, or has ever come up against an industry that is religious about the fact that it might be building the next kind of intelligence.</strong></p>

<p class="wp-block-paragraph"><strong>Where do you stand? Do you think that they&#8217;re building a next kind of consciousness that stands alongside humans, or do you think that this is normal technology as some others do?</strong></p>

<p class="wp-block-paragraph">Boy, that is really another podcast for us, but I&#8217;ll just say this one thing: I just want to disagree with you for a second. Nobody could ever imagine a nuclear weapon either. And&#8230;</p>

<p class="wp-block-paragraph"><strong>But the government built nuclear weapons. It wasn&#8217;t —</strong></p>

<p class="wp-block-paragraph">I understand. I&#8217;m not suggesting it&#8217;s the same. I&#8217;m suggesting it&#8217;s so new at the time that figuring out how you&#8217;re going to rein it in… Because remember, it&#8217;s not just one government, and the same thing with AI. It&#8217;s not just those five guys either. I mean, it&#8217;s like there&#8217;s somebody in China. Maybe five of those. I don&#8217;t know, and somebody in Europe or whatever. You could say we&#8217;re ahead, or they&#8217;re ahead. I don&#8217;t know.</p>

<p class="wp-block-paragraph">But all I&#8217;m saying is, yeah, this is a proliferated situation and it&#8217;s not government-controlled. One hundred percent, you&#8217;re right; it&#8217;s not like nuclear weapons in that sense. But it is like nuclear weapons in the sense that nobody&#8217;s ever seen it before. It&#8217;s a complete mystery to start with. How are we going to rein it in? I mean, nobody thought Russia was going to get the bomb, and they got it. We&#8217;ve figured out somehow how to deal with it.</p>

<p class="wp-block-paragraph">Again, you&#8217;ve got to be an optimist to believe we can end up with the right solution here. I don&#8217;t know that we have the answer to “how do we rein it in?” I will say, though, that if we had the power to create it, we have the power, in my view, to rein it in. Is it conscious? You&#8217;re asking a deep question.</p>

<p class="wp-block-paragraph"><strong>Have you felt the AGI?</strong></p>

<p class="wp-block-paragraph">I mean, do you think it&#8217;s conscious? Because I understand why people think it might have consciousness or it&#8217;s going to be conscious. But I think that&#8217;s why the ethicists and technologists need to be involved. And especially, in my view, the government&#8217;s got to be involved because how else are you going to rein in the five guys and the companies that have developed this? There is no other way.</p>

<p class="wp-block-paragraph"><strong>I will tell you, I don&#8217;t think it&#8217;s conscious. And every now and again, you have an experience where it&#8217;s blindingly clear why other people believe that. When you watch a reasoning model take 90 steps over an hour and arrive at a conclusion, it&#8217;s impressive, and you can see why people believe that. I do not, and I have a lot of reasons for that.</strong></p>

<p class="wp-block-paragraph"><strong>It just occurs to me that if you set out to regulate a technology like this, if you believe one thing, you would maybe go down one path. And if you believe that you were building a consciousness, you might go down another.</strong></p>

<p class="wp-block-paragraph"><strong>Again, the whole industry itself does not agree on this. Jensen Huang and Dario Amodei do not agree on whether it&#8217;s alive. Jensen just wants to sell a bunch of chips, and he will happily tell you it&#8217;s just technology and you can control it. I think Dario thinks he&#8217;s building AGI, and that&#8217;s a different&#8230; There&#8217;s a whole reason he proposes different kinds of regulatory structures there. I&#8217;m just asking you, have you felt the AGI? Do you think it&#8217;s one path or the other?</strong></p>

<p class="wp-block-paragraph">I&#8217;m not going to give you a satisfactory yes or no.</p>

<p class="wp-block-paragraph">I mean, I haven&#8217;t felt it. I guess that&#8217;s what I&#8217;m&#8230; My basic answer is I haven&#8217;t felt it.</p>

<p class="wp-block-paragraph"><strong>Governor Pritzker, this was very fun. Thank you for indulging this last existential loop of a question. You&#8217;re going to have to come back to</strong> <strong><em>Decoder</em></strong> <strong>soon.</strong></p>

<p class="wp-block-paragraph">I would like to do that. Thanks, Nilay.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[SpaceX’s ambitious, expensive gamble to replace AT&#038;T, T-Mobile, and Verizon]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1012416/spacex-starlink-elon-musk-cell-carrier-wireless-mobile-att-verizon-t-mobile" />
			<id>https://www.theverge.com/?p=1012416</id>
			<updated>2026-10-16T23:13:39-04:00</updated>
			<published>2026-10-17T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Elon Musk" /><category scheme="https://www.theverge.com" term="Mobile" /><category scheme="https://www.theverge.com" term="Podcasts" /><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" />
							<summary type="html"><![CDATA[Today, I’m talking with Walter Piecyk, a partner and analyst at LightShed Partners who covers tech, media, and telecom, about SpaceX’s recently announced plan to become a major wireless carrier. Last week, SpaceX agreed to buy a big chunk of low-band spectrum to expand the Starlink network, spectrum that’s been traded around the telecom business [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Walter Piecyk, a partner and analyst at LightShed Partners who covers tech, media, and telecom, about SpaceX’s recently <a href="https://www.spacex.com/updates#starlink-mobile-spectrum">announced</a> plan to become a major wireless carrier.</p>

<p class="wp-block-paragraph">Last week, SpaceX <a href="https://www.theverge.com/science/1008467/spacex-announces-plan-to-become-a-major-mobile-carrier">agreed</a> to buy a big chunk of low-band spectrum to expand the Starlink network, spectrum that’s been traded around the telecom business for decades now. SpaceX’s ambitious plan is to use that spectrum to help build “the world’s most advanced mobile network.”</p>

<div class="wp-block-vox-media-highlight vox-media-highlight"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24792604/The_Verge_Decoder_Tileart.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
</div>

<p class="wp-block-paragraph">Combined with news that the FCC <a href="https://satelliteprome.com/news/spacex-gets-fcc-green-light-for-15000-direct-to-device-satellites/">approved</a> the deployment of 15,000 next-gen Starlink satellites and the company’s previous agreement to <a href="https://www.reuters.com/business/media-telecom/spacex-buys-wireless-spectrum-echostar-17-billion-deal-2025-09-08/">purchase close to $20 billion worth of EchoStar spectrum</a> last year, it’s now clear SpaceX is serious about competing with AT&amp;T, Verizon, and T-Mobile.</p>

<p class="wp-block-paragraph">I’ve covered the telecom business for a long time, and I’ve always known that these companies can say they want to do something until they run into the harsh reality of how expensive it is to actually do it. The telecom graveyard of pivots, bad ideas, and failed acquisitions is vast.</p>

<p class="wp-block-paragraph">Walt has been closely monitoring SpaceX’s acquisition, and he’s correctly predicted that the company was headed in this direction for months now. So I wanted to dig into whether SpaceX can pull this off, why Walt thinks the existing telecom giants have really fumbled their response to SpaceX’s growing threat, and what happens when Elon Musk’s rocket company jumps headfirst into a business everyone loves to hate.</p>

<p class="wp-block-paragraph">Okay: LightShed Partners&#8217; Walter Piecyk on SpaceX&#8217;s plan to expand into mobile. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP6777498710" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="wp-block-paragraph"><strong>Walter Piecyk, you&#8217;re a partner and a tech, media, and telecom analyst at LightShed Partners. Welcome to</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks for having me. I&#8217;m looking forward to it.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m excited to talk to you. I feel like we&#8217;ve been tweeting or posting around each other for many, many years, but I&#8217;m a telecom nerd at heart. I&#8217;ve been covering the space for ages. SpaceX is going to make a big splash. It’s going to be the fourth major mobile carrier in the United States and maybe the world. It bought some spectrum to do it.</strong></p>

<p class="wp-block-paragraph"><strong>It&#8217;s EchoStar spectrum by way of private equity. It is at once very simple and also very complicated. Give us the state of the state. SpaceX</strong> <a href="https://www.theverge.com/science/1008467/spacex-announces-plan-to-become-a-major-mobile-carrier"><strong>bought 800 Mhz spectrum for $8 billion</strong></a><strong>. They spent</strong> <a href="https://www.theverge.com/news/773645/echostar-dish-spacex-starlink-direct-to-cell-fcc-investigation"><strong>nearly $20 billion already</strong></a> <strong>on separate EchoStar spectrum. What is SpaceX trying to do here?</strong></p>

<p class="wp-block-paragraph">It&#8217;s definitely complicated, but maybe less complicated than trying to figure out how to put a data center out in space and making that work. Or something on the moon. But they don&#8217;t typically want to own spectrum and spend for spectrum. If you think about how Starlink was built, satellite companies don&#8217;t typically pay for spectrum. And then as the business evolved and as they saw the opportunity in telecom, they purchased some spectrum initially from EchoStar.</p>

<p class="wp-block-paragraph">The feedback they got from investors at that time was very positive and they said, &#8220;Wait a minute, you should do more here.&#8221; This is a trillion-dollar enterprise value business in the US alone. Obviously they have global aspirations both for Starlink as well as what they&#8217;re doing with this mobile telephone service. So they bought more. They went back to EchoStar. That&#8217;s a key thing to pay attention to, in that they bought some spectrum and then they went back and bought some more.</p>

<p class="wp-block-paragraph">Because with a lot of things that Elon Musk does, he learns as he goes. He bought the spectrum, got feedback, talked to people in telecom, and bought some more spectrum. Then we didn&#8217;t hear from them for a while. Now, you have this thing that happened last week where they bought some more spectrum, and I can go through the history of it if you care, but it&#8217;s long, wonky telecom stuff. This was originally the Nextel spectrum, if you remember that company.</p>

<p class="wp-block-paragraph"><strong>I do. Actually, I do want you to go through the history because I think the telecom business is best understood as a bunch of lobbyists trying to make everything more complicated than it should be. Yes, spectrum auctions are complicated and what spectrum is good for what is deeply tied to the physics of the radio spectrum and all that.</strong></p>

<p class="wp-block-paragraph"><strong>But here it&#8217;s the 800 MHz spectrum from the Nextel service, the old push-to-talk, walkie-talkie service that Sprint</strong> <a href="https://www.theverge.com/2021/7/22/22587790/t-mobile-sprint-acquisition-dish-promises"><strong>had to divest as part of the deal</strong></a> <strong>to get sold to T-Mobile. They&#8217;ve been trying to sell it for ages. They</strong> <a href="https://investor.t-mobile.com/news-releases/news-release-details/t-mobile-completes-sale-800-mhz-spectrum-portfolio-grain"><strong>sold it</strong></a> <strong>to this company, Grain Management. They&#8217;ve been sitting on it, and when Starlink showed up, Elon bought it. Nobody else wanted it. What did he see in the spectrum that no one else did?</strong></p>

<p class="wp-block-paragraph">When you realize that you need to build a terrestrial network to support what you&#8217;re doing with satellites, because satellites work fine if you&#8217;ve got your dish on the top of your house and you&#8217;re getting your broadband, but when you&#8217;re trying to connect with a phone that doesn&#8217;t have the same type of power or you&#8217;re going inside a home, you&#8217;re going to need better coverage.</p>

<p class="wp-block-paragraph">Sirius Satellite also has supplementary towers. There are not that many of them, but sometimes when you get out of Sirius coverage, you will connect to a tower. When they bought that EchoStar spectrum and then got FCC approval, and if you looked into those details of that FCC approval and what was required, you would see that they can&#8217;t do this by satellites alone. There had to be terrestrial.</p>

<p class="wp-block-paragraph">Then SpaceX, as Elon is wont to do, tries to send some diversions like, &#8220;We&#8217;re going to do Femtocell, we&#8217;re not going to do macrocell, this, that, and the other thing.&#8221; But they realized that they were going to build a terrestrial network. Now they finally realized, “If I&#8217;m going to offer mobile service, I need some form of a terrestrial network.”</p>

<p class="wp-block-paragraph">At the same time, the telcos are not going to help them out. They&#8217;re not going to give them a wholesale agreement. Then when they go back and say the companies that had the lowest churn, what is the fundamental value you need in a terrestrial network? It&#8217;s low-band spectrum. Why? It travels further, you can get better coverage, and you have that connectivity.</p>

<p class="wp-block-paragraph">So getting this low-band spectrum piece was just an important part, not to make the satellites work better, but to actually give them the spectrum assets that they need to build a terrestrial network. That&#8217;s why the stocks reacted, because people finally came to terms with the fact that Elon is actually going to build a terrestrial network.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m less interested in the stock and more interested in just the cost structure of how this works. If I rewind my brain to being a baby blogger at</strong> <strong><em>Engadget</em></strong> <strong>100 years ago, the FCC told all the TV networks they had to stop broadcasting on 700 MHz and we were going to run an auction.</strong></p>

<p class="wp-block-paragraph"><strong>Verizon and AT&amp;T bought big chunks of 700 MHz spectrum and that&#8217;s what 4G is built on. That&#8217;s the low-bandwidth spectrum that you&#8217;re talking about. It goes everywhere. This was a big victory that we reallocated 700 MHz, and 800 MHz was sitting right there the whole time. This is the Nextel spectrum. If it is so valuable, why wasn&#8217;t there a market for it until Elon showed up just now?</strong></p>

<p class="wp-block-paragraph">It was part of this transaction. T-Mobile ended up having to sell it because the government said, &#8220;If we&#8217;re going to allow you to take out the fourth competitor, which was Sprint, then in order to enable another fourth competitor out there, we need to have you guys give up some of your low-band spectrum.&#8221;</p>

<p class="wp-block-paragraph">Part of the deal that T-Mobile and Sprint had with the government was that they would sell it to EchoStar. Why? Because Charlie Ergen, CEO of Dish at the time — it&#8217;s EchoStar now — was going to be the fourth competitor. This was the rationale that they gave in terms of the approval of the transaction. Dish needed low-band spectrum. The problem is Ergen went about his business, he was trying to build a network, and then he <a href="https://www.fierce-network.com/wireless/dish-fires-back-t-mobile-over-800-mhz-extension-request">just couldn&#8217;t afford to buy that</a>.</p>

<p class="wp-block-paragraph">They had the rights to buy. Then at that point when Ergen <a href="https://www.datacenterdynamics.com/en/news/dish-says-theres-no-chance-it-will-buy-t-mobiles-800mhz-spectrum/">failed on the bid to come up with the dollars</a> to buy that spectrum, it enabled T-Mobile and actually forced them to put it up for auction. Now, your question: Why didn&#8217;t someone else show up then? Again, from SpaceX&#8217;s standpoint, as I mentioned at the start of this podcast, their strategy has been evolving over time.</p>

<p class="wp-block-paragraph">In terms of the other telcos, they can&#8217;t really use it. There are some limitations that they have. But in hindsight, maybe Verizon or AT&amp;T should have bought this 800 MHz spectrum for whatever it was, let&#8217;s call it $8 billion. They&#8217;re probably losing more in enterprise value over the concerns of what&#8217;s happening with SpaceX than what it cost them just to buy it in what&#8217;s known as foreclose. They basically just take it, even if they don&#8217;t use it or do whatever they need to meet those build out requirements and stop SpaceX from having unnecessary assets. I don&#8217;t think even these companies were taking Elon seriously and thinking that he would actually build the network.</p>

<p class="wp-block-paragraph"><strong>Do you think that&#8217;s colored by</strong> <a href="https://www.theverge.com/tech/959894/dish-chapter-11-bankruptcy"><strong>the failure of Dish</strong></a><strong>? We covered the promises of Dish Network to build a fourth wireless carrier in this country so closely. Their attempt was predicated on some amount of technology innovation.</strong></p>

<p class="wp-block-paragraph"><strong>They were going to build this thing called an O-RAN network, which had a more competitive supplier base instead of just Nokia or Siemens or whoever, and they were going to run it on AWS and that was going to reduce costs. Man, eventually they supported one Motorola handset in Vegas and even that was backstopped by AT&amp;T. They literally could not do it. These promises never came true. Dish is a different company and Charlie Ergen&#8217;s a different CEO and their ability to just throw money at a problem until it&#8217;s solved is very different from Elon.</strong></p>

<p class="wp-block-paragraph"><strong>But if they couldn&#8217;t innovate to make a cheaper, faster network, what&#8217;s the evidence that Starlink can stand up an entire terrestrial network at a cost basis that allows them to compete selling service to consumers, while they&#8217;re also standing up an entire network in space? Because that feels like adding up a lot of cost.</strong></p>

<p class="wp-block-paragraph">I&#8217;m going to go back even deeper than that. Remember when Sprint was struggling, Masayoshi Son from SoftBank was claiming the same thing. They were going to cut their CapEx to nothing and they were going to use these small cells. They innovated how wireless was going to get delivered. That failed. Obviously, they had to get bailed out through the purchase when T-Mobile bought Sprint effectively for just the spectrum.</p>

<p class="wp-block-paragraph">That network got completely decommissioned. To your point, Dish got a network built, but they couldn&#8217;t resonate in the market. The difference between Dish and SpaceX is Elon&#8217;s ability to get customers. That&#8217;s where Dish truly failed. They built the network. The network worked fine. They had the wholesale agreements that they needed.</p>

<p class="wp-block-paragraph"><strong>I&#8217;ll push back on you a little bit there. I have a very funny email from a Dish PR person from several years ago where they said, &#8220;We&#8217;d like to issue a correction to your story. Our network does exist.&#8221; That was the level that they were competing at, where they had to insist to us that the network was real, even though we could not find it in our tests in the various cities they claim.</strong></p>

<p class="wp-block-paragraph"><strong>Maybe there was a network, they built some amount of network, but they had not built anything that competed at the national scale with the big three.</strong></p>

<p class="wp-block-paragraph">Absolutely. It&#8217;s not like your phone. The phone that I was using, I had an iPhone that it was mostly going to roam onto the AT&amp;T and T-Mobile wholesale agreements that existed. The theory is you get the customers, you have a go-to-market strategy, and then you backfill the network. This is probably going to be something similar.</p>

<p class="wp-block-paragraph">You can even go back to when John Legere first took over T-Mobile. They had a crappy network, and then Legere promised, &#8220;We&#8217;re going to build it,&#8221; taking on customers saying that the network was great before the network was great. Then it caught up because they actually finally got the Germans, Deutsche Telekom, to give them the money to invest in the network.</p>

<p class="wp-block-paragraph">The same thing can happen here where SpaceX will sell something that&#8217;ll probably rely on other assets that are out there, even if the telcos themselves are circling the wagons. They have the satellites for certain benefits in terms of coverage and then they can build the capacity over time. The point is it&#8217;s going to take time. You can&#8217;t just turn on a network overnight and start selling service on that.</p>

<p class="wp-block-paragraph"><strong>This has always been my framework of how to think about telecom companies. You can try to run the network cheaper or you can run some kind of different technology to make that cheaper. Or you can just spend and have the best network, which was the Verizon strategy for years and years and years.</strong></p>

<p class="wp-block-paragraph"><strong>Then you&#8217;ve got to acquire and manage your customers. That was the T-Mobile strategy. That was John Legere. He was just nicer to people than AT&amp;T was, and he picked up a lot of customers and that drove some investment.</strong></p>

<p class="wp-block-paragraph"><strong>Then you&#8217;ve got to get some devices. You have to have the iPhone. We can set that aside because it feels like that era of competition is over. We&#8217;re not doing exclusive devices anymore. But those are the two. I&#8217;m just looking at the network here. It does not seem to me, from the outside, that Starlink is proposing to build a cheaper network.</strong></p>

<p class="wp-block-paragraph"><strong>It feels like they&#8217;re proposing to build a vastly more expensive network because they need the satellites. They&#8217;re going to launch 15,000 more satellites to support this network. Then they&#8217;re going to build a terrestrial network by investing in spectrum on the ground and building some set of base stations.</strong></p>

<p class="wp-block-paragraph"><strong>Then they&#8217;re going to have to convince one of the big three to let them roam over as some sort of mobile virtual network operator (MVNO). The big three</strong> <a href="https://www.axios.com/2026/09/29/att-ceo-john-stankey-spacex-elon-musk"><strong>do not want to do that</strong></a><strong>. So they&#8217;re going to overcharge them for that. I&#8217;m just stuck at that being a lot of cost, even if you&#8217;re Elon Musk and you can make some set of people buy whatever you&#8217;re selling.</strong></p>

<p class="wp-block-paragraph">The third thing you said is obviously the most challenging. That&#8217;s the tent and the pole that prevents you from launching services sooner rather than later. But without necessarily getting a wholesale agreement, there might be other ways. Roaming agreements exist out there. There are roaming partners that exist that these telcos still rely on. It&#8217;s very expensive. It&#8217;s not something you can build a high-margin business on, but it perhaps provides an entry to the market sooner rather than later.</p>

<p class="wp-block-paragraph">As Apple has pitched in terms of satellite connectivity, some people are in the middle of the Utah desert texting because they&#8217;re injured. There&#8217;s value there. But it&#8217;s the soccer field. We have, maybe not in the cities, but in the suburbs, plenty of areas that the telcos have effectively given up on trying to provide coverage because of NIMBY-ism, meaning people just don&#8217;t want these cell sites. This satellite coverage can give you not just this basic text messaging that Apple has been doing through the Globalstar constellation, but a true cellphone-type experience.</p>

<p class="wp-block-paragraph">So that&#8217;s a positive. The second differentiation is the fact that these telcos have 60 percent earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. So there&#8217;s a lot of fat there that can be eaten off of, that when you&#8217;re selling other services in terms of Elon, like home broadband, maybe this becomes an entree in terms of pushing Grok and people&#8217;s usage. You don&#8217;t necessarily need 60 percent margins, in this case, for him to justify building this network.</p>

<p class="wp-block-paragraph">They also talk about other data connectivity that these satellites are going to enable. Again, in the current constellation, you need a lot of power and you need a dish. But if you don&#8217;t have that, if you have the cell phone-type power, then the internet of things (IOT) and other types of opportunities that exist there become another revenue opportunity that they look at.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s just funny. The IOT story — that&#8217;s what all these companies promised us about 4G. That&#8217;s what they all promised us about 5G. There&#8217;s something about this business that just rhymes every time. They&#8217;re going to do self-driving cars and robot surgery. I&#8217;m confident we&#8217;re going to hear about self-driving cars and robot surgery when it comes to Starlink and Tesla and Optimus.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s something about these applications for next generation networks that just recurs, and we hear about them all the time. Then I think about our consumer audience at</strong> <strong><em>The Verge</em></strong><strong>, and they want long battery life and fast service and [connectivity] all the places they go. I&#8217;m not sure how that squares with your phone is going to connect directly to a satellite in the middle of a soccer field. There&#8217;s something about that that also seems challenging.</strong></p>

<p class="wp-block-paragraph">It&#8217;s just the performance if your phone does connect to the satellite on the soccer field and it works. A lot of the things that people said wouldn&#8217;t work on Starlink in terms of airplanes or even getting customer-premises equipment (CPE) down below a certain price, they&#8217;ve delivered on. Obviously, Elon sometimes delivers on them a little later than some of his initial optimistic promises, but they ultimately get delivered on.</p>

<p class="wp-block-paragraph">There is the ability with these new constellations to give you that type of connectivity on these spaces. Is that enough to differentiate with consumers? I don&#8217;t know. The telcos have attacked this by saying, &#8220;No one cares about our direct-to-device (D2D) services.&#8221; Well, your D2D services are not good. It&#8217;s just sending basic text messages. What they&#8217;re talking about is giving you that blanket coverage where you get what you expect from your cell phone wherever you go.</p>

<p class="wp-block-paragraph">That&#8217;s fine, but you still have to give it to the person in the middle of the building where their cell phone works today and provide the volume at a cost that is going to be attractive to that consumer. So those are longer-term things that are going to require some amount of terrestrial network build. Then the question is: how much? A lot of the attacks that have been out there have been referencing $100 billion, $200 billion. I get that. Why?</p>

<p class="wp-block-paragraph">Telcos each spend $10 billion to $15 billion a year, but they are maintaining massive customer bases. To get that initial network up where you have that usage, where you use that low-band spectrum to get into buildings, is not those types of numbers. You&#8217;re probably talking like $10 billion, $15 billion for that initial build in terms of CapEx.</p>

<p class="wp-block-paragraph"><strong>The dynamic there is really interesting. I&#8217;m just thinking about AT&amp;T when the iPhone came out. The network immediately got overloaded because there was a surge of customer demand that took four years to truly resolve. Part of that resolution was just putting the iPhone on the other carriers.</strong></p>

<p class="wp-block-paragraph"><strong>How do you think that will play out for Starlink here? Because right now, Starlink customer service is not the best in the industry. Their actual service, people love it. And then when they need</strong> <strong><em>customer</em></strong> <strong>service, it&#8217;s a bunch of automated systems and people complaining on Reddit. So there&#8217;s some challenge there if you&#8217;re running a consumer business at this scale.</strong></p>

<p class="wp-block-paragraph">For consumer businesses, think about all the advertising that&#8217;s done. The fulfillment, dealing with the phones, phone subsidies, and that&#8217;s a big part of the financing. How many customers are we talking about? So for the amount of spectrum that they have now in the network that I&#8217;m talking about for $10–$15 billion, you&#8217;re not taking 50 percent share overnight. I don&#8217;t think that would be that expectation from day one.</p>

<p class="wp-block-paragraph">But then the theory of telco is that when you do that initial CapEx build, you have your initial spectrum purchases — $10, $20, maybe $30 billion — another $10 or 15 billion in terms of CapEx. If you are successful and you do get that five or 10 million customers, the opportunity to invest more happens. If you go back to the old days when the cable view of wireless was going to be, &#8220;We&#8217;re going to get these MVNOs. We&#8217;re going to drive the wireless companies into the dirt and then we&#8217;re just going to buy them.&#8221;</p>

<p class="wp-block-paragraph">That happened in at least one European market, and that was the cable bull thesis that was occurring. You could have the same bull thesis emerge from the SpaceX bulls here where they&#8217;re going to say, &#8220;We&#8217;ll get those first five or 10 million customers. We&#8217;ll drive them into the ground. Verizon&#8217;s going to be so desperate for any type of revenue because their revenue declined. They&#8217;re just going to hand them a wholesale deal and then they&#8217;ll start selling spectrum. There&#8217;s going to be a spectrum auction with the FCC.&#8221;</p>

<p class="wp-block-paragraph">You can see how the narrative can build based on, “An initial CapEx that’s not that big, get in the market, and then if it&#8217;s successful, we start investing more.”</p>

<p class="wp-block-paragraph"><strong>Let&#8217;s talk about the terrestrial network for one more turn. I heard you throw a little water on the idea that they&#8217;re going to build femtocells. That is what</strong> <a href="https://www.fierce-network.com/wireless/spacex-lays-out-plan-compete-big-3-wireless-carriers"><strong>Elon and Gwynne Shotwell have been saying</strong></a> <strong>— that they don&#8217;t need to build the traditional kind of terrestrial network that AT&amp;T and Verizon and T-Mobile have, where you have a lot of fiber back haul, the big sites that require all kinds of zoning permits and everything. That they can basically just put small cell stations next to Starlink dishes, put them anywhere they want, and blanket the world with them. And Starlink itself will be the backhaul.</strong></p>

<p class="wp-block-paragraph"><strong>I sense some problems with this. Starlink is not 100 percent reliable all the time. If you have a network that is not 100 percent reliable all the time, you&#8217;ve got some problems, so maybe you have to backstop it somehow. But you don&#8217;t think that&#8217;s what they&#8217;re doing. You think they&#8217;re going to build a regular terrestrial network.</strong></p>

<p class="wp-block-paragraph">I&#8217;m sure that&#8217;ll be a part of it, but you need macro towers for that type of coverage and penetration and power. Not to explain physics to SpaceX, they probably know it better than anybody, but what you&#8217;ll see is as they talk more about this low-band spectrum that they purchase, when we get on the conference calls of these tower companies, you&#8217;re going to find out that you&#8217;re going to see a lot of those antennas show up on towers.</p>

<p class="wp-block-paragraph">It&#8217;s just natural. You can talk about femtocells, but it&#8217;s hard to see that the network&#8217;s going to get built without macro towers.</p>

<p class="wp-block-paragraph"><strong>One of the weirder aspects of the telecom industry, as it&#8217;s constituted in the United States right now, is that cell carriers own some of their towers and operate some of their towers. And then there are these crazy third parties that literally have names like TowerCo that operate a bunch of the other towers.</strong></p>

<p class="wp-block-paragraph"><strong>Are those captured? Do you think SpaceX can get deals with those companies, or are they beholden to their big partners?</strong></p>

<p class="wp-block-paragraph">These are huge real estate investment trusts (REITs). American Tower is the biggest one. It&#8217;s probably one of the largest companies in this. When you consider any REITs, there are other companies out there. They have these towers. They have space in many cases where basically SpaceX can just go and get an additional antenna. It&#8217;s a lot easier to do that now than when the wireless companies were initially building this stuff and having to erect their own towers.</p>

<p class="wp-block-paragraph">In addition, EchoStar is going through a bankruptcy. They have a lot of radios that could be used, that could be bought on the cheap, that could expedite SpaceX&#8217;s entrance in the market. They haven&#8217;t shown interest in that yet. The EchoStar bankruptcy process hasn&#8217;t yet concluded, but EchoStar can still be a potential partner here by selling them radios that are already on towers.</p>

<p class="wp-block-paragraph">You&#8217;ve lifted the amount of time. Those radios use the spectrum that SpaceX is purchasing, so it can be a quick fix for them to enter the market. Who knows if they do that? They may have their own view like Masayoshi Son did on how to build this new cheap network.</p>

<p class="wp-block-paragraph"><strong>Is there a way to read this as just they&#8217;re slowly buying EchoStar or whatever EchoStar tried to do?</strong></p>

<p class="wp-block-paragraph">EchoStar has some remaining spectrum that Verizon really needs. At this point, there is some strategic sense to just buy EchoStar outright — because EchoStar is getting stock that was issued to them at a discount. If you&#8217;re buying them, you&#8217;re effectively buying in your own stock.</p>

<p class="wp-block-paragraph">You don&#8217;t have to issue the cash to the company and you&#8217;re getting whatever cash proceeds that EchoStar is getting from some of its spectrum sales. They can actually get incremental cash on the balance sheet and buy their stock in. We&#8217;ll see if that plays out. By the way, then you don&#8217;t have to also deal with Dish, which sometimes can be challenging.</p>

<p class="wp-block-paragraph"><strong>T-Mobile&#8217;s in the mix here. I want to talk about Verizon, you&#8217;ve mentioned them several times, but T-Mobile is Starlink&#8217;s current partner for direct-to-device cell connectivity. Are they just getting rocked? Are they going to be a part of this? How&#8217;s that going to work?</strong></p>

<p class="wp-block-paragraph">If you think about the start of that, that was former T-Mobile CEO <a href="https://www.theverge.com/2022/8/27/23324128/t-mobile-spacex-satellite-to-phone-technology-ast-lynk-industry-reactions-apple">Mike Sievert up on stage with Elon announcing</a> this thing and everyone&#8217;s very happy. Then Deutsche Telekom decided it needed a different CEO at some point. You had that transition where Mike retired and you brought in a new CEO, and there might just be a different view on how that relationship works.</p>

<p class="wp-block-paragraph">I&#8217;m guessing that it&#8217;s been very frustrating for SpaceX to deal with them and certainly they would probably want to avoid any exclusivities going forward. They may need to if they want to sign one of these wholesale agreements that we talked about before.</p>

<p class="wp-block-paragraph"><strong>It just seems like, as you mentioned, SpaceX and Starlink went after a little bit of the consumer market here. They bought some spectrum. They got a good reaction to it. Now they&#8217;re going to go after the whole thing and their existing telecom partner is thrown by the wayside.</strong></p>

<p class="wp-block-paragraph"><strong>If you look at the three big telecoms in the United States, they are circling the wagons. They&#8217;re saying this is never going to work. They&#8217;re</strong> <a href="https://www.fierce-network.com/wireless/verizon-no-mvno-starlink"><strong>never going to sign the MVNO agreements</strong></a><strong>. They&#8217;re putting together</strong> <a href="https://www.verizon.com/about/news/att-tmobile-verizon-joint-venture-satellite"><strong>their own satellite pool</strong></a><strong>. There&#8217;s something here where they are panicked by the existence of meaningful competition in a way that does not usually happen in telecom.</strong></p>

<p class="wp-block-paragraph">Yeah, I agree with that. I don&#8217;t know if it&#8217;s SpaceX leaving them or T-Mobile leaving SpaceX, but that relationship which started out so happy with the old CEO is certainly not positive. T-Mobile executives have been throwing shade at SpaceX incessantly over the past couple of months. They formed a joint venture (JV) together.</p>

<p class="wp-block-paragraph">It reminds me of when fixed wireless first hit the cable market and Chris Winfrey talked about it derisively as “cell phone internet” and played it down. Ultimately, that&#8217;s what&#8217;s really bit them and why cable stocks are in the position they&#8217;re in today, given the amount of customers that they&#8217;re losing to cell phone internet.</p>

<p class="wp-block-paragraph">There are some similarities now in terms of how these executives are downplaying what they can do. Is it going to be costly? Is it going to be complex? Sure. But so is Terafab and so are so many other things. So is making an autonomous vehicle or catching a rocket with chopsticks. That&#8217;s the reality that they have to deal with. Investors have seen what this management team has done before in other areas and are just applying it here. Whether that&#8217;s fair or not, time will tell.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m actually very curious about that because I know you cover the company and I know you cover the industry. There&#8217;s some part of SpaceX that is just a meme stock. People love Elon. There&#8217;s some part of Tesla where it&#8217;s not valued like a car company, it&#8217;s valued like a software company, even though it is very much a car company. We&#8217;ve yet to see where the software multiples might come from for Tesla.</strong></p>

<p class="wp-block-paragraph"><strong>The same is true of SpaceX: huge IPO, but people are buying the physics miracle of the rockets launching and landing. They&#8217;re buying the promise of Mars. They&#8217;re buying the promise of AI, whatever that promise is, however frothy that market is. Those are valued against hopes and dreams.</strong></p>

<p class="wp-block-paragraph"><strong>Telecom is not. It&#8217;s well known. You can be a telecom analyst and you can examine the value of the spectrum. You understand the build-outs. The customers are not confusing. Consumers are going to pay some amount of money. There are other competitors that are built in at scale. Why do you think SpaceX would chain itself to a business that is easy to value when all of its other businesses are their dreams? You can&#8217;t value dreams. It&#8217;s just whatever is the biggest number.</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think it&#8217;s an either-or. When you look at people&#8217;s attempts to justify the valuation of SpaceX, a lot of that value is going to land on data centers in space and the data centers on the ground. That&#8217;s where a lot of the value is in Starlink.</p>

<p class="wp-block-paragraph"><strong>But that&#8217;s not the launch business, which theoretically is their business. It&#8217;s not even the AI provision business. We&#8217;re describing them as a hyperscaler.</strong></p>

<p class="wp-block-paragraph">Yeah, exactly. The AI and those are other big chunks of it. There are a lot of different stories here, but it doesn&#8217;t mean that they don&#8217;t pursue this if they have connectivity and constellations. They&#8217;re talking about connectivity in space because they believe that there&#8217;s going to be a demand for connectivity between the data centers, whether it&#8217;s theirs or others and their constellations. There are already data centers that I think are using their constellation to connect.</p>

<p class="wp-block-paragraph">When they looked at it, it was just another part of the narrative that you build in terms of SpaceX and justifying the valuation. Because what do all of these things need? Whether it&#8217;s robotaxis, whether it&#8217;s data centers in space, they need money and money needs a narrative. This is just another one of the narratives to stack on top to say, &#8220;Here&#8217;s how we can drive incremental value.&#8221;</p>

<p class="wp-block-paragraph">The value, if you look at the enterprise values of these telcos in the United States, you&#8217;re talking about a trillion dollars. That&#8217;s a trillion dollars of enterprise value. They&#8217;re obviously not going to capture a trillion dollars because part of it is shrinking the telcos down at the same time as getting whatever that stake is and the CapEx related to it.</p>

<p class="wp-block-paragraph">The fair question is, if capital gets more scarce, how do you allocate between these different things? Don&#8217;t you want to push <a href="https://www.theverge.com/ai-artificial-intelligence/926356/spacex-terafab-plant-cost-ai-chips">Terafab</a> forward a little bit more or get those terrestrial data centers built so that you can start monetizing the billions of dollars that you&#8217;re getting there versus diverting whatever the dollars are here for the telco?</p>

<p class="wp-block-paragraph">That is a reasonable thing. The problem for the telcos is even if that&#8217;s happening at SpaceX and this gets delayed a year, that doesn&#8217;t help them. The overhang of when that&#8217;s going to occur — whether that&#8217;s a year, two years, three years — is always going to be there. They&#8217;re not going to say, &#8220;We&#8217;re just giving up on going after this.&#8221; It&#8217;s just going to be a capital allocation issue in the near term that&#8217;s going to delay when the actual impact hits the telcos in the United States.</p>

<p class="wp-block-paragraph"><strong>How much of this is just that Elon needs to supply connectivity to his own cars and his own factories and his own robots and he&#8217;ll just be his own best customer?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think that&#8217;s it. They think they really want to build a revenue business out of it. In fact, they&#8217;re going to use the cars as hotspots where they&#8217;ll put Starlinks on there and then use them as distribution points. That&#8217;s going to be part of the play.</p>

<p class="wp-block-paragraph"><strong>I do want to end by talking about the existing telcos and what competition might do to them because I think that&#8217;s a fascinating dynamic. They are clearly not ready for an actual aggressive competitor.</strong></p>

<p class="wp-block-paragraph"><strong>But I want to stick with what you just said for a minute. If I pull that apart, it sounds like what you&#8217;re describing is the reality of the SpaceX business, which is that Starlink is the thing that makes profits. Everything else is incinerating money, but investors seem happy with that because the potential payoffs might be huge.</strong></p>

<p class="wp-block-paragraph"><strong>If you take the Starlink profits, you have to make a decision about whether to reinvest them into Starlink, and now Starlink&#8217;s mobile business, or into AI or into the launch business or into going to Mars. Regardless of how that allocation happens on what timeline, at some point, enough money will go back into Starlink Mobile to pose a real threat to AT&amp;T, Verizon, and T-Mobile, and that is just a matter of time.</strong></p>

<p class="wp-block-paragraph">You nailed it, and that is the issue. Capital becomes the biggest benefactor right now to the telecom companies. How does that capital get allocated? That&#8217;s in terms of reportive results. They&#8217;re 100 percent right on that. But in terms of the stocks, that concern is not going to go away because there will be incremental data points. Maybe one of these telcos has a problematic quarter or two. These are not founder CEOs where they have to do something quickly.</p>

<p class="wp-block-paragraph">It&#8217;s easy to get a lot of wholesale revenue on the books by doing a deal with SpaceX. These are the types of things that they&#8217;re going to have to deal with in terms of that long-term risk. Cable&#8217;s got this. Look at Uber. Uber&#8217;s got the same issue. The threat of Waymo and robotaxis is what keeps that stock where it is.</p>

<p class="wp-block-paragraph">Waymo with their 3,000 or 4,000 cars are obviously not impacting the two million drivers that Uber has in the United States. But the threat of where Waymo&#8217;s going to be two years from now, or three years from now, or the threat from Tesla’s robotaxis… that&#8217;s what investors care about and that&#8217;s going to obviously impact these companies.</p>

<p class="wp-block-paragraph"><strong>Put that in the context of SpaceX being a public company for me. Is it just that we&#8217;re going to get next quarter&#8217;s results of SpaceX and we&#8217;re going to see that xAI is still burning money at enormous rates, but Starlink Mobile made a little bit more money? And that&#8217;s going to keep everybody happy for a minute?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t know. I don&#8217;t think we have enough history yet in terms of what moves SpaceX stocks one way or another. To your point, you have a lot of believers, regardless of what&#8217;s printed, who are always going to say, &#8220;Who cares about this quarter?&#8221; Tesla&#8217;s got the same issue. Who cares how many cars that they actually sell because it&#8217;s all about the robotaxis and the robotaxi business is about to start scaling.</p>

<p class="wp-block-paragraph">Those very positive people won&#8217;t care. Then there are going to be the negative people who, no matter how much traction you see them get in, whether it&#8217;s Starlink or progress on the build of space compute, are going to say, &#8220;He&#8217;s never going to deliver. This is never going to happen.&#8221; You&#8217;re just going to have those fighting battles back and forth.</p>

<p class="wp-block-paragraph">The primary issue is going to be whether they can raise capital off of that. And in what ways? Because if you&#8217;re burning cash, at some point you need to bring in cash. If these businesses aren&#8217;t generating enough cash because you&#8217;re consuming it with the other growth initiatives, you still have to figure out ways to continue to issue cash or issue stock to get more cash on the balance sheet.</p>

<p class="wp-block-paragraph"><strong>If I was going to offer that most cynical read, I would say the only business where they can see expanding the service will result in more profits to offset their losses elsewhere is Starlink. They don&#8217;t have another business that looks like that.</strong></p>

<p class="wp-block-paragraph">Just to be clear, Starlink is the broadband business that&#8217;s generating the cash flow. This mobile business would be cash negative initially before you get into that positive cash position. You have to look at the robotaxi business, there&#8217;s going to be a lot of CapEx initially, but these cars are pretty cheap. That theoretically could be a cash generator.</p>

<p class="wp-block-paragraph"><strong>But that&#8217;s a different company.</strong></p>

<p class="wp-block-paragraph">But we know that, just like I mentioned earlier, it could make buying EchoStar make sense because you&#8217;re buying effectively cash in your own stock on the cheap. There are different ways to put cash obviously on the balance sheet in $10 or $20 billion chunks.</p>

<p class="wp-block-paragraph"><strong>Obviously the structure of these companies — they&#8217;re all Elon&#8217;s companies in the end, and he&#8217;s managed them as closely as anyone can manage big public companies. But to make it as dumb as possible, say you have a dollar and if Gwynne Shotwell has a dollar and she wants to light the dollar on fire, she&#8217;ll put it in xAI against some return somewhere that might be $50 trillion total addressable market (TAM) or whatever their prospectus said.</strong></p>

<p class="wp-block-paragraph"><strong>Or you could put the dollar into Starlink Mobile in the build-out and you will probably return $1.10. That is what that business looks like because they will get some customers away from AT&amp;T and Verizon. They&#8217;re already running that thing profitably.</strong></p>

<p class="wp-block-paragraph"><strong>The idea that they need to show some return somewhere, it feels like that&#8217;s why they&#8217;re making this move. Not because it makes the most financial sense, it just makes the most financial sense in the context of SpaceX.</strong></p>

<p class="wp-block-paragraph">You may be right. The problem with that belief is that it&#8217;s going to take time for them to get that dollar of profit out of the mobile business. They still have to build the network. They still have to sign up customers. You&#8217;re going to be negative EBITDA for a while. If you have two different businesses and you think the returns are significantly higher or more interesting to your investors to get to that next catalyst for space compute or Optimus or whatever it is, that is going to play a role.</p>

<p class="wp-block-paragraph">What does Elon happen to care about the most at that moment? What is more interesting to him to do? Isn&#8217;t space compute a little bit more interesting to allocate those dollars than taking some mobile customers from AT&amp;T?</p>

<p class="wp-block-paragraph"><strong>Although the man&#8217;s addicted to his phone and I bet he hates seeing that AT&amp;T logo in the corner. There&#8217;s just a part of that that&#8217;s always with these guys.</strong></p>

<p class="wp-block-paragraph"><strong>Let&#8217;s talk about the existing telecoms. They do seem a bit panicked. For a time, they were juggernauts. These were unstoppable businesses as mobile was growing. They poured a bunch of money into the 5G transition.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;ve described the telecom industry as a bunch of lobbyists. Boy, did the lobbyists win the 5G transition. Boy, did they collect all the favors and all the capital they could to build out these networks and then reality hit them in the face. We beat China to some kind of network and then the thing that we were supposed to win did not happen.</strong></p>

<p class="wp-block-paragraph"><strong>Now we&#8217;re doing it again with AI, but that&#8217;s a different conversation. But that was the narrative with 5G: If we didn&#8217;t beat China to 5G,</strong> <strong><em>something.</em></strong> <strong>Who knows what, but we got to cut all the corners to build this network and spend all the money. It just didn&#8217;t pay off.</strong></p>

<p class="wp-block-paragraph"><strong>You&#8217;re an analyst, you&#8217;re in the trades. I skim the trades and boy are all these CEOs saying, &#8220;We&#8217;ve got to generate some revenue with these networks now.&#8221; You mentioned Mike Sievert is gone, the old CEO of Verizon&#8217;s gone. It just didn&#8217;t pay off for these guys.</strong></p>

<p class="wp-block-paragraph">Yeah, 5G didn&#8217;t deliver. Some of the promises were BS from the beginning. You talked about this earlier regarding autonomous cars. You&#8217;re not going to rely on the network to make that millimeter-second decision of whether you&#8217;re going to hit the car in front of you or not. Remote surgery, even if that was a thing, how is that a scalable business where you&#8217;re generating hundreds of billions of dollars of revenue?</p>

<p class="wp-block-paragraph">These were all silly. Sievert used to be the guy saying, &#8220;People would say the same thing about LTE, there&#8217;s no application.&#8221; That was not even true. If you remember, the application was video and we knew that LTE was going to enable video and that&#8217;s exactly what happened.</p>

<p class="wp-block-paragraph">You&#8217;re 100 percent right. This was just a way for them to get more spectrum because they were going to still have data growth on their networks. Capturing more spectrum to be able to handle the existing growth, and that&#8217;s cheaper to get spectrum, even at tens of billions of dollars, than it is to try and build the network for that capacity.</p>

<p class="wp-block-paragraph"><strong>If they had just said, &#8220;We&#8217;re going to spend all this money and at the end of it, tens of thousands of people will be able to livestream Taylor Swift during the Eras tour on every one of those stops,” Americans would have said, “Go, go faster. Yes, we understand what that is.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>That is truly the thing they enabled. It&#8217;s very cool. It&#8217;s millimeter wave in stadiums and that&#8217;s cool. I don&#8217;t know if there&#8217;s another one. That said, they are on their back foot. They did spend a lot of money. This is around the time when, in my history as a journalist, they would start talking about 6G, and they want to, but they know they shouldn&#8217;t, so they don&#8217;t.</strong></p>

<p class="wp-block-paragraph"><strong>They&#8217;re having the meetings. They are certainly not as loud about the next round of investment as they would normally be in the cycle. Now they have a competitor. Your analysis is that Verizon is by far the weakest here. They have the most to lose. Explain why that is.</strong></p>

<p class="wp-block-paragraph">One other thing to mention is you have a very active FCC chair that would like to raise, and put on his resume, $100 billion from spectrum auction. You&#8217;re right, they&#8217;re going to talk about 6G again and have to come up with some type of revenue stream to justify getting this money. It&#8217;s going to be a lot harder though. They&#8217;re already pretty levered. They&#8217;ve got a new competitor.</p>

<p class="wp-block-paragraph">In terms of Verizon, the issue is that AT&amp;T has seen this thing developing for some time. They&#8217;ve built a fiber network. There&#8217;s only so much that wireless can do where a fiber network is ultimately your best connection. If you think about customers that own fiber and wireless, very high-value, very low-churn customers. That&#8217;s been their strategy. They&#8217;re plodding along. They&#8217;re going to get their two or three percent revenue growth and just pay their dividend and do their thing. That is the standard telco.</p>

<p class="wp-block-paragraph">T-Mobile didn&#8217;t have that. They&#8217;ve got the dynamics — a lot of politics right now between Deutsche Telekom wanting to own it and not wanting to pay a high price and how that all plays out. Verizon just made a lot of bad strategic bets on spectrum. Obviously, AT&amp;T had their own issues, but at least they got out of DirecTV and Warner quick enough and turned the ship.</p>

<p class="wp-block-paragraph">But Verizon <a href="https://www.theverge.com/news/796693/verizon-starry-acquisition-wireless-internet-mmwave">bought millimeter wave spectrum</a> when they could have bought EchoStar and bought spectrum… even now they&#8217;re spectrum-constrained compared to their competitors and they need to go out and spend $10–$15 billion on the EchoStar spectrum. You have a new CEO in there who is not really a telco guy who’s just doing his thing, saying, &#8220;We&#8217;re just going to cut costs.&#8221; The EBITDA is going to look good because they&#8217;re just <a href="https://www.theverge.com/news/824970/verizon-layoffs-13-percent-employees">firing a bunch of people</a> and there&#8217;s going to be a result.</p>

<p class="wp-block-paragraph">There is going to be an impact of firing that many people in the organization. It may appease investors to make the EBITDA look good for the next couple of quarters. But at some point you have to show and have a strategy for some type of revenue growth. What is Verizon&#8217;s differentiation in the market right now? They have none. They&#8217;re the most in the crosshairs of where SpaceX and even the cable companies can continue to eat away at those customers.</p>

<p class="wp-block-paragraph"><strong>That is surprising to me. It&#8217;s just my own history. I grew up in the midwest. I went to college in the midwest. That was Cingular territory and it became AT&amp;T. When I moved to New York in 2010, Verizon was the gold standard network in the Northeast. It was the one everyone had. It cost the most money because it was the best network. The iPhone coming to Verizon a couple of years later was a huge deal.</strong></p>

<p class="wp-block-paragraph"><strong>Verizon&#8217;s network was so powerful at that time that they could try to force the Blackberry Storm down people&#8217;s throats. They were confident enough that their network was the thing holding people to them, that that was a worthwhile strategy. Obviously, it didn&#8217;t work. They made the wrong bet. You&#8217;re saying they made the wrong bet on millimeter wave. They made the wrong bet on other spectrum acquisitions. The one that I&#8217;m not quite tracking is media.</strong></p>

<p class="wp-block-paragraph"><strong>They did buy a bunch of dumb stuff. At one point they owned Tumblr, which is just one of the most confusing media outcomes of all time. But that stuff was all cheaper and easier for them to flip or shut down than AT&amp;T buying all of Time Warner and putting out a 4:3 black-and-white</strong> <strong><em>Justice League</em></strong> <strong>movie. How did AT&amp;T survive that? But you&#8217;re saying Verizon can&#8217;t survive owning Yahoo?</strong></p>

<p class="wp-block-paragraph">That&#8217;s a fair pushback, in that the media impact to Verizon was a lot less than AT&amp;T. But these again were separate businesses. Obviously, it was a capital allocation issue for a period of years.</p>

<p class="wp-block-paragraph">But the decisions on the spectrum front and the competitive front, and T-Mobile&#8217;s impact, John Legere&#8217;s impact in taking away the claim of having the best network, left them in a spot where they basically said, &#8220;We&#8217;ll just keep increasing price on our customers and we&#8217;ll get that 2 or 3 percent revenue growth.&#8221; And they just lost the narrative of what they meant to customers. I don&#8217;t really think under the new CEO that&#8217;s been regained.</p>

<p class="wp-block-paragraph"><strong>Do you think their ability to say they have the best network is just gone?</strong></p>

<p class="wp-block-paragraph">That&#8217;s completely gone. That&#8217;s the crazy thing about this. The networks are effectively commoditized. These networks are basically the same. And they&#8217;re getting 60 percent margins.</p>

<p class="wp-block-paragraph">That&#8217;s the whole thing with Dish Wireless — even if it wasn&#8217;t on their network and you guys tested it, it wasn&#8217;t on their network, you could have been buying AT&amp;T&#8217;s network at half price. It&#8217;s crazy the average revenue per user (ARPU) and the margins that these guys get for what is effectively a commoditized market. That&#8217;s why the AT&amp;T strategy is interesting because at least they&#8217;re trying to bundle that with a high-value fiber network. But for the other guys, it&#8217;s just commoditized wireless.</p>

<p class="wp-block-paragraph"><strong>I would actually say the other strategic mistake Verizon made along the way was they got away from Fios. They decided it wasn&#8217;t worthwhile. It seems like they&#8217;re trying to reinvest in that now and go after that AT&amp;T strategy.</strong></p>

<p class="wp-block-paragraph">Given their lack of spectrum, they can only take fixed wireless so far. You&#8217;re right. I wouldn&#8217;t be surprised if they got back to investing in fiber. The difference, obviously, with Fios is that you have union issues and a lot of cost structure issues that they were dealing with.</p>

<p class="wp-block-paragraph">But the pivot to doing more fiber and perhaps laying off the fixed wireless, which is straining the network, is probably the right decision for them and what you&#8217;ll see happen going forward.</p>

<p class="wp-block-paragraph"><strong>I want to end on just a big picture question here. We have covered so many crazy telecom mergers and it always feels like the right answer is to put more competition in the system.</strong></p>

<p class="wp-block-paragraph"><strong>We&#8217;ve mentioned John Legere several times in this conversation. He only got that job and T-Mobile only got to exist the way it does because AT&amp;T was prevented from buying T-Mobile. They paid a breakup fee, which subsidized a huge portion of that early growth and those early strategic moves that Legere was able to make.</strong></p>

<p class="wp-block-paragraph"><strong>But that was good for the market. Consumers got a CEO who tried to change the market and have better customer experiences, reinvested that money in the network. That was good. The existence of Dish Network is T-Mobile trying to buy Sprint and instead of blocking the deal, we imposed some wild structural remedies and Makan Delrahim, who ran antitrust in the first Trump administration, rightly or wrongly engineered the outcome of Dish Network existing.</strong></p>

<p class="wp-block-paragraph"><strong>That was Delrahim&#8217;s preferred outcome: “We&#8217;re going to let this happen, but we need to have four carriers. Charlie Ergen is my guy. We were going to stand up a fourth one.” From my perspective, it just seemed obvious that he was never going to do that. And he didn&#8217;t.</strong></p>

<p class="wp-block-paragraph"><strong>Maybe I was correct to make that bet, but it just seemed obvious that Dish Network was going to hold onto a bunch of spectrum, watch the prices rise and then flip it when it turned out they never built their network. They had to hit targets with the FCC that they just weren&#8217;t hitting over time. Now, we have a true fourth competitor, or at least an aggressive competitor of the market in Elon, who&#8217;s probably going to try to actually do this thing and these companies are running scared.</strong></p>

<p class="wp-block-paragraph"><strong>Is this just evidence that we should have four carriers in the United States? And that when inevitably Verizon tries to buy T-Mobile, we should just say, no, the right answer is four and we&#8217;re not going to go to three again.</strong></p>

<p class="wp-block-paragraph">Under Chairman Wheeler, which goes way back, four was the number.</p>

<p class="wp-block-paragraph"><strong>Wheels and I were buds.</strong></p>

<p class="wp-block-paragraph">If you called him now, he&#8217;d say, &#8220;I told you it should have been four and it&#8217;s going to go back there.&#8221; Obviously, in the new administration, they didn&#8217;t believe that that was the case. You see Chairman Carr pointing to prices, how he sees them being down and the competition that&#8217;s happened in fixed wireless.</p>

<p class="wp-block-paragraph">But you always want more competition in a market. It drives innovation and it lowers prices and margins are approaching 60 percent in the wireless business. I can&#8217;t say we&#8217;ve had a tremendous amount of innovation, which gets back to what the telcos are doing in fear by refusing to give SpaceX a wholesale agreement.</p>

<p class="wp-block-paragraph">That&#8217;s their right. But at some point, if the FCC&#8217;s mandate is to act in the public interest, we have a current administration — and who knows who gets in during the next administration — but if these telcos are going to push back so hard on what the fourth competitor, in this case SpaceX, is going to do, the FCC can probably get involved in some ways. That is the risk that they run by being so vocally against Elon Musk in the market.</p>

<p class="wp-block-paragraph">You talk about the ultimate consolidation. It&#8217;s funny. We should save all these quotes now where they&#8217;re saying, &#8220;Elon can&#8217;t be a competitor because he only has 80 MHz of spectrum.&#8221; Because then when they want to merge with someone, they&#8217;re going to claim, &#8220;No, he&#8217;s actually a competitor.&#8221; They&#8217;re going to deny that as a competitive threat.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s nothing funnier than a giant telecom insisting that a thing that is not a competitor is their competitor. They all do it.</strong></p>

<p class="wp-block-paragraph"><strong>Last question. Again, this is just the big think rattling around my head. We might be on a cusp of an entire paradigm shift in what mobile devices even are. If you look at Meta, they&#8217;re going to put up the Muse charm and maybe we&#8217;re all going to talk to little cartoon AIs all day that run agents in a data center. Our use of mobile bandwidth to watch video will go down because we&#8217;re not even carrying phones anymore. Is that a risk here? Is anybody thinking about this?</strong></p>

<p class="wp-block-paragraph">We think about this every day at LightShed, in terms of all the different ways that AI [exists] and how we interact with our information and how we interact with commerce and using agents. Muse has obviously been something we&#8217;ve been waiting for from someone and there&#8217;s going to be other versions of that. But you&#8217;re right. It could decrease [phone usage], and it&#8217;s an Apple risk.</p>

<p class="wp-block-paragraph">It decreases the importance of the status of holding an iPhone if you&#8217;re just not interacting with your data in the same way. If that happens, that whole paradigm in terms of the telcos and providing the subsidies changes. Whenever there&#8217;s change, there&#8217;s an opportunity for disruption and for margins to be contracted. It does change things and maybe SpaceX could play.</p>

<p class="wp-block-paragraph">Elon&#8217;s been asked about making a device. I know Qualcomm, when you meet with those guys, says, &#8220;We have 40 different guys out there making devices.&#8221; I don&#8217;t think he&#8217;s going to add one more thing to his list, but again, let&#8217;s get back to what we&#8217;ve talked about during this podcast and narrative.</p>

<p class="wp-block-paragraph">Will Terafab happen? Will data centers in space happen? It may not happen, but you can maybe talk about building a phone and then that becomes one more issue that the telcos have to deal with in terms of dealing with their customers. Why am I using this iPhone when I should be using this completely different device, whether it&#8217;s coming from OpenAI or Anthropic or maybe SpaceX?</p>

<p class="wp-block-paragraph"><strong>The idea of Elon shipping a mid-range Android phone with the Play Store on it is so deeply funny to me. I truly hope it happens because that&#8217;s the product you can make today. Maybe there&#8217;s a paradigm shift and there&#8217;s a different set of products.</strong></p>

<p class="wp-block-paragraph"><strong>But right now you need to have Instagram and there&#8217;s really only one path to getting Instagram, which is shipping an Android phone with the Play Store on it. We just saw Amazon essentially capitulate with their new tablets.</strong></p>

<p class="wp-block-paragraph"><strong>If you&#8217;re focused on the future, you have to concede to the present. I truly do not believe we will see a mid-range Android phone from SpaceX. But you&#8217;re saying they might start talking about it.</strong></p>

<p class="wp-block-paragraph">No, I agree with you. I&#8217;m just saying when you&#8217;re trying to build narratives, why not throw that in the hopper? The bigger issue is someone&#8217;s going to build something that may resonate with&#8230; We&#8217;ve gone a long time. We&#8217;re spending $1,000 for these phones that are giving us some basic swipe functionality. They&#8217;re going to change in terms of how you use them.</p>

<p class="wp-block-paragraph">This is a bigger and more obvious issue for Apple than anybody else, but it does change how the telcos are going to act and the role that they&#8217;re going to play and where that margin should be. They gave up a lot of value to Apple at some point during this continuum of the wireless industry. We&#8217;re going through another paradigm change, so we&#8217;ll see how those value splits play out.</p>

<p class="wp-block-paragraph"><strong>Walter, we&#8217;re going to have to have you back soon because it feels like these things are going to happen fast. I was very happy to nerd out about telecom with you. Thanks for being on</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">I appreciate it. Thank you.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Benn Jordan on Flock, privacy, and the new surveillance backlash]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1011170/benn-jordan-flock-cameras-alpr-ai-surveillance-privacy" />
			<id>https://www.theverge.com/?p=1011170</id>
			<updated>2026-10-16T08:56:19-04:00</updated>
			<published>2026-10-15T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Privacy" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Today, I’m talking with Benn Jordan, musician, YouTuber, researcher, and investigative journalist. You might know Benn from those first two titles — he’s got a prolific discography of experimental music dating back decades. But in the last couple of years, he’s become a high-profile face in the creator and media spaces for his work investigating [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Benn Jordan, musician, YouTuber, researcher, and investigative journalist. You might know Benn from those first two titles — he’s got a prolific discography of experimental music dating back decades.</p>

<p class="wp-block-paragraph">But in the last couple of years, he’s become a high-profile face in the creator and media spaces for his work investigating Flock Safety, the maker of automatic license plate readers and the software that powers them.</p>

<p class="wp-block-paragraph">Benn recently <a href="https://www.youtube.com/shorts/37MpxDjKXdE">testified in front of Congress</a>, at a hearing the Senate Judiciary Committee’s Subcommittee on Crime and Counterterrorism held, dedicated to Flock and other ALPR systems. This hearing felt like the culmination of months and months of growing criticism and bipartisan backlash against Flock — all of which is taking a shape similar to the pushback against AI data centers.</p>

<div class="wp-block-vox-media-highlight vox-media-highlight"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24792604/The_Verge_Decoder_Tileart.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
</div>

<p class="wp-block-paragraph">This has led to major fallout for Flock. Hundreds of cities, counties, and other local governments <a href="https://arstechnica.com/tech-policy/2026/08/cities-terminate-flock-contracts-at-record-pace-in-august/">have begun canceling contracts</a>, and Flock is now under investigation by Republican Sen. Josh Hawley. Last week, Reuters <a href="https://www.reuters.com/business/ai-surveillance-startup-flock-safety-cut-several-hundred-jobs-amid-backlash-2026-10-09/">reported</a> that Flock plans to cut about 18 percent of its workforce.</p>

<p class="wp-block-paragraph">So of course I wanted to dig into all of that with Benn, not just because he played a role in that, but because he’s also become in some ways the face of a new front in the broader debate about surveillance and privacy.</p>

<p class="wp-block-paragraph">A point you’ll hear Benn make is that he doesn’t actually hate Flock as a company — he thinks its posture toward critics has been a colossal PR failure that made it low-hanging fruit, while competitors like Axon and Motorola quietly build the same kind of networks. Instead, Benn now talks to Flock directly, including to its CEO Garrett Langley, and reports security vulnerabilities to the company when he finds them. (As a side note: we have also invited Flock’s CEO on the show; Garrett if you’re listening, we would love to have you.)</p>

<p class="wp-block-paragraph">Benn says his outreach to the company is an olive branch he’s extended to Flock as part of his goal of working toward real, tangible solutions to surveillance overreach, rather than part of a crusade to tear one single company down.</p>

<p class="wp-block-paragraph">That’s a real theme throughout our conversation: that Flock and other high profile names in surveillance are just part of the problem —&nbsp;our real focus should be on the interlocking relationship between private industry, government, and law enforcement that prioritizes secrecy over transparency.</p>

<p class="wp-block-paragraph">We never voted for an insecure network of cameras on every street corner, and we’re certainly not being asked if we’re comfortable with access to this network being given to police officers with a penchant for abusing it. So Benn sees his work on YouTube and with other researchers, civil rights groups, and journalists as an accountability function that forces this conversation to the forefront. And so far, it’s working.</p>

<p class="wp-block-paragraph">Okay: Benn Jordan on Flock, privacy, and the new surveillance backlash. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP6709606542" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="wp-block-paragraph"><strong>Benn Jordan, you&#8217;re a musician, YouTuber, and researcher. Lately you&#8217;ve been an investigative journalist. You are a witness in Senate hearings. Welcome to</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks for having me.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m a huge fan of yours. It&#8217;s just a delight to have you here. A lot of people in the</strong> <strong><em>Verge</em></strong> <strong>audience know you as a musician, but lately you have been relentlessly focused on Flock cameras, which are automatic license-plate readers (ALPRs). You recently testified in front of a Senate hearing on those cameras and the surveillance they enable.</strong></p>

<p class="wp-block-paragraph"><strong>Give us a sense of your background. For people who don&#8217;t know you or haven&#8217;t been following you for years, where did Benn Jordan come from and how did you end up being the person who makes videos about Flock?</strong></p>

<p class="wp-block-paragraph">I&#8217;ve been a musician my entire life, pretty much. I&#8217;ve also always been kind of a hacker, or somebody who is that type of person who always takes stuff apart. If I get a product that wants me to pay for a service that&#8217;s already in the product, then that&#8217;s a puzzle I want to solve and I get excited about it. But a lot of times that blends into investigative journalism as well.</p>

<p class="wp-block-paragraph">With the Flock stuff, it&#8217;s just that I live in Atlanta, which has more Flock cameras than anywhere else per square mile. About two years ago I started noticing them. I thought they were traffic cameras or something like that. Then I started looking into what they were actually doing and then started looking into things like security vulnerabilities. More than anything, everything that&#8217;s happening right now in the public, in the news, has to do with people just figuring out that these have existed the entire time.</p>

<p class="wp-block-paragraph">A lot of my focus now is on the lack of transparency from the government, because the companies are always going to make money and try to make as much money as they can, especially if it&#8217;s from taxpayer money. But in this case, I feel like our government missed it. And that&#8217;s where we&#8217;re at.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s a question that&#8217;s been rattling around my head the entire time we&#8217;ve been having what I would call the modern privacy and surveillance debate.</strong></p>

<p class="wp-block-paragraph"><strong>When I say “modern,” what I mean is it feels like we woke up sometime in the last year and everything is recording us all the time and everything is watching us and the glasses have cameras in them and Mark Zuckerberg is</strong> <a href="https://www.theverge.com/podcast/999383/mark-zuckerberg-meta-glasses-ai-teen-safety-surveillance-data-centers"><strong>saying phones don&#8217;t have a light</strong></a><strong>, and that is meant to end a conversation.</strong></p>

<p class="wp-block-paragraph"><strong>That&#8217;s it. That&#8217;s the argument. Phones don&#8217;t have a light, no further questions. The Apple Watch is going to start doing automatic transcriptions, and everyone said, “Wait, hold on. No thank you. We actually don&#8217;t want this to happen.” But my personal experience of this is that my political coming of age was the Iraq War and the Patriot Act.</strong></p>

<p class="wp-block-paragraph"><strong>This is the stuff that people were talking about twenty-five years ago — don&#8217;t do warrantless wiretaps, don&#8217;t make the databases all connect to each other so you can take the metadata and de-anonymize people at will.</strong></p>

<p class="wp-block-paragraph"><strong>What is it about this time that has made everybody so angry? Because we could have been angry twenty-five years ago.</strong></p>

<p class="wp-block-paragraph">I&#8217;m always trying to get people more informed on the information that&#8217;s being collected about them every time they go to a website, every time they sign up for something, every time they check into a restaurant online, every time they use their phone. In this case, one of the reasons that people are really upset about is that you can&#8217;t opt out. That&#8217;s the first thing.</p>

<p class="wp-block-paragraph">I can&#8217;t say, “I don&#8217;t want these Flock cameras or Axon cameras or whatever they are tracking my every move and giving it to law enforcement.” I have no option to do that. I was never given an option on whether to vote for them or vote for somebody who was in favor of them. It just kind of happened and you know people weren&#8217;t told about them. That would be the first thing — that you can still install a separate OS on an Android phone or you could turn off Wi-Fi and Bluetooth or just leave your phone at home. Whereas now you can&#8217;t actually go to the grocery store without somebody tracking your vehicle.</p>

<p class="wp-block-paragraph">The second thing is that — and this is kind of related to opting in and opting out — I can pay for a new AI smartwatch or I can pay for an Amazon Echo device or something like that, or I cannot. Whereas this way I&#8217;m paying for this already. This is just my property taxes going up and I&#8217;m paying for surveillance.</p>

<p class="wp-block-paragraph">In some ways it is the same as the NSA, but I feel like it&#8217;s much more local now.</p>

<p class="wp-block-paragraph"><strong>You don&#8217;t get to go to the town board meeting and yell at the NSA. Although maybe you should. Honestly, that might be good for everyone. There is that part of it, and you&#8217;ve certainly been at a bunch of local town board meetings. I&#8217;ve watched a lot of videos of you talking to them and helping other people articulate their concerns.</strong></p>

<p class="wp-block-paragraph"><strong>That, to me, is one of the more fascinating aspects of all this. Flock went from a company that was selling cameras to everyone, and the idea that adding Flock cameras would increase the safety of your town went from all but assumed to, “Hold on, we all have a lot of questions,” and now this company is struggling a little bit. They&#8217;re losing contracts, they are retrenching, their communication strategy has changed.</strong></p>

<p class="wp-block-paragraph"><strong>What do you make of that? Is that just the power of local democracy in action, or is there something else?</strong></p>

<p class="wp-block-paragraph">It definitely is democracy in action. That&#8217;s the good news. The best news out of anything that&#8217;s happened is that with both Flock and data centers, it&#8217;s two things that have made people actually look up who their mayor is and who their city council members are and show up to meetings and then get involved in those local politics.</p>

<p class="wp-block-paragraph">Because those local politics affect your life way more than national politics. They just don&#8217;t make the headlines. We&#8217;re not as involved. Your day-to-day following what Donald Trump is doing is likely not going to make that big of a difference other than what you argue about over Thanksgiving. Whereas local politics, that&#8217;s straight up, in the next year, going to have a big effect on your life.</p>

<p class="wp-block-paragraph">People are getting involved in that, and then in cases like Asheville, North Carolina, where it&#8217;s actually changing the political landscape. People are so dissatisfied with the surveillance policies of their local politicians that it looks like that they may have a new mayor as a result of it, who also comes with a bunch of other interesting and progressive ideas that would probably help the city a lot more than the current mayor has.</p>

<p class="wp-block-paragraph">That&#8217;s a big deal right there. The other part that discourages me a little bit, or the part that I find a little disappointing, is that Flock has become this buzzword, but a lot of people don&#8217;t look beyond that. I just heard in the race for governor in Georgia that the Democratic candidate yesterday talked about <a href="https://www.axios.com/local/atlanta/2026/10/07/georgia-governor-debate-flock-cameras-medicaid-data-centers">getting rid of Flock cameras and being anti-Flock,</a> when this is somebody who as mayor of Atlanta <a href="https://www.atlantaga.gov/Home/Components/News/News/13687/672">welcomed Flock</a>. You see a lot of that happening now, too, where they just say “Flock bad” and then they go sign an Axon contract or they put Verkada or Motorola cameras everywhere.</p>

<p class="wp-block-paragraph">In my research, Flock has been the low-hanging fruit, just because they were the loudest and most defensive, whereas every other company was just taking a step back and cashing the checks.</p>

<p class="wp-block-paragraph"><strong>One of the pieces of the puzzle here that is just fascinating is that Flock is a startup, essentially. They&#8217;re a new company, they have a new go-to-market strategy. They talk a big game about what AI can and can&#8217;t do and with what they as a platform should and should not enable. Your Axons and your Motorolas are government contractors. They are not companies that are meant to have a personality.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s something about Flock where Garrett Langley, the CEO, had a personality. He would go on TV and</strong> <a href="https://www.forbes.com/sites/thomasbrewster/2026/07/17/flock-ceo-sorry-for-labelling-activists-terrorists/"><strong>deride any critics as left-wing terrorists and that did not work</strong></a><strong>. There&#8217;s something about surveillance in that case where that strategy didn&#8217;t work. There&#8217;s something about data centers where that strategy didn&#8217;t work.</strong></p>

<p class="wp-block-paragraph"><strong>We just ran a big piece about the people of Utah</strong> <a href="https://www.theverge.com/cs/features/993343/stratos-utah-kevin-oleary-data-center-backlash/"><strong>pushing back on Kevin O&#8217;Leary,</strong></a> <strong>who called them all Chinese agents, and they were like, “What are you talking about?” That cut across party lines. Again, you&#8217;ve been out there. I know you&#8217;ve talked to a lot of people pushing back on surveillance.</strong></p>

<p class="wp-block-paragraph"><strong>Is it just that Flock had a personality, and that enabled bipartisan pushback? Or is it surveillance more generally?</strong></p>

<p class="wp-block-paragraph">In terms of the media getting attention, Flock had a lot of personality and they were very defensive. I&#8217;ve met a lot of the people from Flock who are so villainized and they don&#8217;t seem at all the way that they&#8217;ve seemed in the clips that I&#8217;ve covered in my content. It&#8217;s very different. You would assume that there&#8217;s a publicist behind a lot of this.</p>

<p class="wp-block-paragraph">Especially in something that serves law enforcement, where you would maybe have a publicist that&#8217;s used to dealing with Republicans and right-wing things, they just tell you to keep repeating the same thing over and over again and take a firm stance and dig your heels in. Most people who aren&#8217;t Donald Trump, when they do that, get wrecked. Flock got wrecked. They kept saying things and they kept denying security vulnerabilities and they used clever ways of reframing or redefining words and people picked up on it and now they are the villain.</p>

<p class="wp-block-paragraph">Whereas companies like Axon are not as sexy for a journalist. They just aren&#8217;t, and that&#8217;s probably intentional on their part. Any company that&#8217;s taking your tax dollars or trying to court your government to give your tax dollars to them probably wants to be out of the spotlight.</p>

<p class="wp-block-paragraph"><strong>We&#8217;ve</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/965066/ai-police-cops"><strong>covered Axon before</strong></a><strong>. They do not want to be a company with characters. They are as anonymous as they can be.</strong></p>

<p class="wp-block-paragraph"><strong>One of the things that I want to see with you on the show, most importantly of all, is to describe what a Flock camera is and what the technology behind the hardware does that makes it new.</strong></p>

<p class="wp-block-paragraph"><strong>Because from watching all the videos that you make, I think, “It&#8217;s just an Android phone. They&#8217;re just putting a bunch of Android phones around town,” but it&#8217;s actually the database and the AI that makes it more dangerous than usual. Describe what the actual Flock hardware is and then how that connects to the system that makes it as controversial as it is.</strong></p>

<p class="wp-block-paragraph">So ALPRs have existed, I believe, since the 1970s. They started getting used in the United States in the late 80s and 90s. One of the classic ways that they would be used in the 2000s is they would be mounted on a police car. If a police car wanted to run someone&#8217;s plate, that way they didn&#8217;t have to type it in while they&#8217;re driving, and they could run a plate over to dispatch. I personally don&#8217;t have any problem with that. I think that makes sense. That&#8217;s a decent use. However, you would have issues where you would get plate misreads and then people would get taken out of their car at gunpoint as a result.</p>

<p class="wp-block-paragraph">Flock is a lot different. Flock basically started a private nationwide network where any police department or city that&#8217;s using Flock&#8217;s network can opt into it and share their data with it. Police departments across the country can then run a license plate with 30 days of retention on everywhere someone&#8217;s been, anywhere in the country, as long as they&#8217;re sharing the data. So you would have someone in Texas being able to search somebody&#8217;s movement through New York or Atlanta or something like that.</p>

<p class="wp-block-paragraph">They were doing this — they <em>are</em> doing this — without a warrant. Whereas any type of ALPR data sharing previous to Flock had to go through the National Crime Information Center, which does require a magistrate judge to look at the overall context of a situation and then issue a warrant to allow tracking.</p>

<p class="wp-block-paragraph"><strong>That&#8217;s the innovation here. They built the private network, the private database, and convinced a bunch of law enforcement agencies to buy their system and they could opt in. There&#8217;s some kind of legal innovation here where by making it a private database, they could just excuse themselves from the warrant process.</strong></p>

<p class="wp-block-paragraph"><strong>But the actual hardware of the cameras is not all that impressive. There&#8217;s something about that that I really just want to hone in on. The idea of the Flock camera being the problem is secondary to the Flock network being the problem.</strong></p>

<p class="wp-block-paragraph">One way that I think about it, in the defense of Flock cameras and even outside of Flock itself, is that it&#8217;s all happening in public. This is all in public view. It&#8217;s generally the same as arguing that you&#8217;re allowed to take a picture anywhere in public. So why can&#8217;t they do this?</p>

<p class="wp-block-paragraph">My argument against that would be if you have a police officer follow someone or go through public traffic cams, which are all over the country, and go through every single public traffic cam and wait for your car to come and then write down when that was there and do that for 30 days, that&#8217;s generally a serial killer situation.</p>

<p class="wp-block-paragraph">The amount of resources that you have to dump into that would have to justify that expense with a very serious crime. But doing that for somebody who stole steaks from a Kroger is very different. What worries me about it is that you might end up with police officers being able to get a lead on a case much easier that doesn&#8217;t necessarily need police for society to become safer in a better place, like a nonviolent crime or something that&#8217;s not a huge deal, rather than investigating more serious crimes.</p>

<p class="wp-block-paragraph"><strong>That’s the argument that Flock makes, and that proponents of this technology make. We had</strong> <a href="https://www.theverge.com/podcast/822038/ring-jamie-siminoff-camera-ai-crime-surveillance-home-security"><strong>Jamie Siminoff from Ring on the show</strong></a><strong>, and the argument he would make is if you put enough cameras into certain neighborhoods,</strong> <a href="https://www.theverge.com/tech/804052/ring-jamie-siminoff-book-ding-dong-release-date-interview"><strong>you will “zero out crime.”</strong></a> <strong>That is a thing that he has said to me in the context of Ring doorbells and floodlight cams.</strong></p>

<p class="wp-block-paragraph"><strong>It&#8217;s the same argument that proponents of Flock make. “We put up all these cameras, we can catch criminals, thus we will deter criminals, the crime rate will fall.” Do you buy into this?</strong></p>

<p class="wp-block-paragraph">No, I don&#8217;t. Because first of all, we&#8217;ve never tested this. We&#8217;ve never had a city in a vacuum where we put in a bunch of cameras. One of the metaphors I like to use is if you have a supermarket and you put one camera in one aisle where you think that things are going to get stolen, that will probably increase theft in other aisles rather than just assuming that every shoplifter is just going to become a plumber instead, like I&#8217;ll be a doctor instead of a shoplifter.</p>

<p class="wp-block-paragraph">That doesn&#8217;t actually deal with the overall problem. If you have a Walmart that has cameras all over it, and then you have a neighborhood store that can&#8217;t afford all of those fancy cameras, then maybe the shoplifters and people who would hold up a store will go to that place instead and you have the same thing with cities. You have crime relocation happening.</p>

<p class="wp-block-paragraph">So, yes, of course, if you put a camera above a street, it&#8217;s less likely that a car on that street within the view of the camera will get broken into. But does that make it more likely that a car a block over where there is no camera will get broken into? This is something that has been observable by criminologists, like crime relocation is a real thing. A lot of times effective policing just moves criminals elsewhere.</p>

<p class="wp-block-paragraph">Selfishly, you could say, “In my subdivision, we have less crime, and I don&#8217;t care about anything other than that.” But over time, over the next decade, it doesn&#8217;t really work out that way. You end up with more crime overall, or you end up with bigger problems in society. So I would argue with that.</p>

<p class="wp-block-paragraph">Also, we&#8217;ve seen that Ring cameras don&#8217;t really reduce crime all that much. You end up being able to see somebody stealing a package off your porch or you end up being able to see somebody breaking into your house. But do they actually increase clearance rates? I would argue I&#8217;ve not seen any evidence that they do.</p>

<p class="wp-block-paragraph"><strong>You have to connect them to the nationwide database of license plate readers.</strong></p>

<p class="wp-block-paragraph"><em>[Laughs]</em> Right, yeah.</p>

<p class="wp-block-paragraph"><strong>If you put a camera everywhere, you can&#8217;t relocate anywhere. That&#8217;s the argument. It&#8217;s the end point of the argument that they are making: “If putting up some cameras would move the crime, putting cameras everywhere would make that impossible and there will be no crime.”</strong></p>

<p class="wp-block-paragraph">With a lot of that stuff, it&#8217;s just like, “If you have a problem, if you&#8217;re worried that you&#8217;re going to have a porch pirate, if you&#8217;re worried that your house is going to be broken into, I&#8217;m not sure why you would jump to put cameras all over your house?”</p>

<p class="wp-block-paragraph">It’s the same thing with cities, like why wouldn&#8217;t you just increase your insurance? You know, increase your insurance payoff or something like that, because that actually will get you new things and you know, the other one will just get you a police report with evidence that the police might not even be able to handle or will not be able to connect to any sort of criminal.</p>

<p class="wp-block-paragraph">Because even if that criminal gets caught, it&#8217;s not like they&#8217;re just saving all the money to pay back their victims. It&#8217;s figuring stuff like that out. Another thing that I don&#8217;t like about surveillance in general, especially things like ALPRs, is that they&#8217;re not solving crime with embezzlement. They&#8217;re not solving crime with corruption. They&#8217;re not solving bigger crimes.</p>

<p class="wp-block-paragraph">They&#8217;re really honing in on things like car theft and things like shoplifting out of a Lowe&#8217;s parking lot and then sharing that data with the police and then the police tracking the car two days later and pulling it over. Most of the time those crimes actually have solutions that are in broader public policy.</p>

<p class="wp-block-paragraph">If somebody&#8217;s shoplifting from Lowe&#8217;s, I would assume they probably either have a drug problem or they have a problem with poverty, because <em>I</em> don&#8217;t want to shoplift from Lowe&#8217;s. I don&#8217;t have any desire to do that. It&#8217;s not a crime of passion. It&#8217;s a crime of necessity. I would say that like along the lines, like even if the clearance rates were improving, which I&#8217;ve not seen evidence of, what does that mean? Does that just mean that we&#8217;re putting more nonviolent offenders in prison or through the justice system? Does that actually make society safer?</p>

<p class="wp-block-paragraph"><strong>We&#8217;re getting into the trade-offs of using technology to solve social problems. One of the most important trade-offs that you have brought to light repeatedly is that these devices are not secure.</strong></p>

<p class="wp-block-paragraph"><strong>So even if you solve the problem of “you should get a warrant” — or even if Flock responds to the public pressure and says, “We ought to make people type case numbers into the system before they start searching,” which was their big concession recently — even if you get to, “We&#8217;re going to control the system a little bit better,” the devices themselves are insecure. The network is insecure.</strong></p>

<p class="wp-block-paragraph"><strong>That means anybody can do almost anything they want with it. You&#8217;re a security researcher. Describe how you began digging into the security problems here and what the response has been.</strong></p>

<p class="wp-block-paragraph">Starting out, I found out that they didn&#8217;t, in early 2025, require multi-factor authentication. I also witnessed a police officer logging into Flock from a Wi-Fi network that wasn&#8217;t at a police station. Had you told me those things, I wouldn&#8217;t believe them. But witnessing it happening made me say, “This is something that needs more looking into.” I started thinking, “It&#8217;s probable at that point, because now you have human error.”</p>

<p class="wp-block-paragraph">If all of these police departments are sharing data with one another, then it could just be the dispatcher, somebody who&#8217;s not even deputized, who has a Flock account at a rural Louisiana police department. That person could sell their account or that person could click the wrong link in an email and whatever. I started looking for Flock credentials on the dark web and I found some and they were coming from a Russian vendor.</p>

<p class="wp-block-paragraph">I started thinking, “How exactly did that happen?” That&#8217;s <a href="https://www.youtube.com/watch?v=uB0gr7Fh6lY">how I met [cybersecurity researcher] Jon Gaines</a>, and we found that a lot of the time there were hardware vulnerabilities in the camera where you could get them to open up a Wi-Fi access point, and then you could get complete control over the Android device and you could root it and have it do whatever you wanted in a way that would be undetectable because it&#8217;s happening outside of the Flock ecosystem on the device.</p>

<p class="wp-block-paragraph">I had found a bunch of Flock cameras with administrative interfaces that <a href="https://www.404media.co/how-benn-jordan-discovered-flocks-cameras-were-left-streaming-to-the-internet/">were open on the internet</a>. So you could just type in the IP address and then delete footage, or watch footage from 30 days ago. You could even put files on the device and look at all the logs. In all these situations, we found a lot of plain text credentials, things that shouldn&#8217;t have been there.</p>

<p class="wp-block-paragraph">At first the pushback from the company was that I&#8217;m a YouTuber and I was doing magic tricks and I&#8217;m not a serious security researcher. Reading their own statement about <a href="https://www.flocksafety.com/blog/has-flock-been-hacked">having never been hacked</a> through a Flock camera and then <a href="https://youtu.be/vU1-uiUlHTo?si=cpDfFCV6QCP3cBCM&amp;t=445">downloading it on my own machine</a> made that indisputable.</p>

<p class="wp-block-paragraph">They still disputed it for a while, but that is what really got the media involved and finally paying attention to it. Since then, it&#8217;s been smaller things that I&#8217;ve found, but more so the bigger deal here is that no matter if you&#8217;re using Flock or Axon or whatever it is — because now you have Axon and Motorola also launching their own private networks outside of the National Crime Information Center — the person on this network with the worst security hygiene is going to be as secure as the entire network will be. That&#8217;s the big problem.</p>

<p class="wp-block-paragraph">If I were to have it my way, police officers would not have access to Flock at all. If I were to have it my way, you wouldn&#8217;t have this level of surveillance at all. But let’s just say if I were to have it my way on security policy, a police department would have one person who is trained and has a lot of security hygiene and privacy hygiene and is trained to look up Flock searches for police officers. But what we&#8217;re seeing is a lot of police chiefs who have Flock accounts. Why would a police chief ever even need to use this service? It&#8217;s their job to manage the department.</p>

<p class="wp-block-paragraph"><strong>In the action movie, the cops usually have to bribe the person with access to the surveillance tool with cookies and booze to run a search without a warrant, right?</strong></p>

<p class="wp-block-paragraph">Yeah, and they usually have bifocals and are really smart.</p>

<p class="wp-block-paragraph"><strong>We&#8217;ve been conditioned to think that&#8217;s how it should work. At the very least, there should be some light bribery involved, not free access. I am not a security expert by any means. I&#8217;ve been covering tech for a long time, and it just strikes me that there are some very basic concepts about security that Flock in particular missed.</strong></p>

<p class="wp-block-paragraph"><strong>The idea that we have open access, there are no access controls, that they were practicing what is called security by obscurity. You could just drive a truck through it and they would deny it. All that seems very basic. Is it just that they&#8217;re a startup and they didn&#8217;t know any better?</strong></p>

<p class="wp-block-paragraph">I think they knew better and they didn&#8217;t have to do anything about it, because nobody made them. Because somehow across America, police departments and city councils and senators and your federal government allowed these cameras to be put up everywhere without any type of security test or any type of security protocol, any type of triage for what to do if something goes wrong. None of that exists.</p>

<p class="wp-block-paragraph">Circling back, when I&#8217;m actually sitting there in front of the Senate, I&#8217;m not going to say, “I can&#8217;t believe how bad Flock is.” Flock is a for-profit tech startup. Of course they&#8217;re going to do whatever they can to stay competitive. That&#8217;s their job that we give them as a society. The job of a legislator is to protect us from them. Because even when we yell at police for the privacy stuff, you wouldn&#8217;t consider a police officer or a police department to be Fourth Amendment defenders. They would be on the other side of that argument.</p>

<p class="wp-block-paragraph">We need somebody on the side that actually defends people&#8217;s privacy. Our government has been utterly asleep at the wheel, especially when it comes to security vulnerabilities, but that&#8217;s across the board. That&#8217;s everywhere. Right now, it&#8217;s actually a really terrifying time that we&#8217;re in.</p>

<p class="wp-block-paragraph"><strong>You recently testified in front of the Senate Judiciary Subcommittee on Crime and Counterterrorism. That was a hearing about Flock. That subcommittee is chaired by Josh Hawley, who&#8217;s a Republican. He</strong> <a href="https://www.hawley.senate.gov/chairman-hawley-investigates-ai-powered-flock-cameras-amidst-privacy-concerns/"><strong>opened a probe into Flock</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m curious about that experience, preparing for that testimony and what message you wanted to send. But I just want to note that it is remarkable that a Republican is holding hearings into law enforcement technology and whether or not it&#8217;s appropriate, and that&#8217;s happening across the country.</strong></p>

<p class="wp-block-paragraph"><strong>What do you make of that? That it&#8217;s this bipartisan? Is it that everyone&#8217;s just woken up to civil liberties? This is a convenient punching bag, and everyone hates tech? How do you see the shape of it?</strong></p>

<p class="wp-block-paragraph">For any politician at the Senate level, there&#8217;s going to be theater. I don&#8217;t consider that to be a meeting where there&#8217;s going to be a solution at the end.</p>

<p class="wp-block-paragraph">But what I did do there, in full transparency, is I wanted to testify with the C-SPAN cameras on in front of a Senate committee, <a href="https://www.youtube.com/shorts/37MpxDjKXdE">explaining that things like FISA 702 or CORCA</a> — these things that a lot of these politicians, even some people on that subcommittee, co-sponsored — are massive risks to privacy and security.</p>

<p class="wp-block-paragraph">Because you can&#8217;t say that they didn&#8217;t know when an expert witness who&#8217;s a hacker told them in testimony. That&#8217;s ultimately why I went to Washington, DC, because I knew that it would be basically just a bunch of people proudly saying that they&#8217;re angry at Flock because everybody&#8217;s angry at Flock.</p>

<p class="wp-block-paragraph">A lot of the things in Hawley’s proposals are things that Flock is already kind of doing, in their own defense, which is good news. It&#8217;s not to choose one over the other. Both are actually taking positions that are big compromises from where they probably stood a year or two years ago.</p>

<p class="wp-block-paragraph">It was a wild experience. It was strange. They expected me to just talk about how bad Flock was. I really didn&#8217;t really see a purpose to that. If I wanted to scream about how bad Flock is now, I would just contact somebody at Flock and say, “We need to talk about this. I&#8217;m really mad about the security vulnerability,” because they do talk to me now. If I find a security vulnerability, I tell them about it and they take it seriously. Of course it took a lot of damage for them to take me seriously.</p>

<p class="wp-block-paragraph">But if I&#8217;m standing in front of the Senate, I&#8217;m going to say, “Why don&#8217;t you do something? Because this is your job and this is what we voted for you to do.” As far as the bipartisan stuff, I&#8217;m really happy about it, honestly. It&#8217;s great. It&#8217;s awesome to see our country agree on anything as a whole right now. That&#8217;s wonderful.</p>

<p class="wp-block-paragraph">A lot of Republicans remember COVID and they remember mask mandates and stuff and they probably imagine what a Flock camera would do in that situation. It might automatically send them a ticket or an arrest warrant for leaving their house during lockdown. Who knows? But that is all related to privacy risks and authoritarianism and it’s all very real in their memory.</p>

<p class="wp-block-paragraph">It is interesting to see a lot of politicians take the side of ICE and take the side of the National Guard driving into a city where the police department doesn&#8217;t even want them there, and then also be anti-Flock or anti-surveillance. It&#8217;s an interesting time.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s something there. One of my early career rookie mistakes was that I covered telecom companies and ISPs as a baby blogger at AOL and I got it into my head that I should testify in front of Congress to talk about how the ISPs were charging everybody too much money.</strong></p>

<p class="wp-block-paragraph"><strong>I called the general counsel and the policy office at AOL and I said, “Can you get me in front of Congress?” They said, “About what?” And I said, “The ISPs are bad,” and they went, “You know, we&#8217;re an ISP,” and that was the end of that conversation. It didn&#8217;t go any farther.</strong></p>

<p class="wp-block-paragraph"><em>[Laughs]</em> You definitely need a lawyer if you&#8217;re going to testify in front of the Senate. There are a lot of legal expenses involved. It&#8217;s pretty stressful all in all. I feel like a lot of people think it&#8217;s a lucky thing, but&nbsp; it&#8217;s a very stressful two weeks of your life.</p>

<p class="wp-block-paragraph"><strong>You are in the center of that swirl, and it is bipartisan. I would put up surveillance and data centers as the issues that are uniting Americans today. Are you hearing from both sides? Did you sit with Republican senators individually? I&#8217;m sure you hear from regular people on both sides of the aisle.</strong></p>

<p class="wp-block-paragraph"><strong>Is it really that we don&#8217;t want the government to spy on us, so we&#8217;re going to yell at these cameras? Or is it bigger than that?</strong></p>

<p class="wp-block-paragraph">I think, and what I hope, is that when people discover what&#8217;s going on with Flock, and what&#8217;s going on with other police surveillance technology, they also don&#8217;t immediately go to misinformation, because that&#8217;s what a lot of people do. A lot of people will hear about the Flock cameras and then they&#8217;ll go, “How is Israel involved in this?” Then they immediately go down that rabbit hole on X or 4chan and then it builds this conspiracy theory that&#8217;s completely not in parity with the actual problem that we&#8217;re trying to solve.</p>

<p class="wp-block-paragraph">What always entertains me so much about those types of conspiracies is that reality is just as crazy. It&#8217;s just as wild. There&#8217;s just as much outrage in reality. Somehow conspiracies are more attractive, even though on many occasions they’re not even as interesting as reality.</p>

<p class="wp-block-paragraph">LexisNexis, for example, is a data broker that police use, that your car uses, that your devices sell data to constantly. If people knew the average amount of data that this data broker has about them that&#8217;s being sold and traded constantly, I feel like their anger about Flock would be completely eclipsed by it.</p>

<p class="wp-block-paragraph"><strong>Can I connect those thoughts? I&#8217;ve been thinking about this a lot. Five years ago, we could confidently write a story debunking the notion that Instagram was listening to you. [Instagram CEO] Adam Mosseri, this poor man, has to</strong> <a href="https://www.theverge.com/news/789991/meta-instagram-microphone-listen-ads-targeting-adam-mosseri"><strong>make a video once a week insisting that he is not listening to you</strong></a><strong>. Part of the reason that five years ago we would be confident in writing that story is the technological cost of listening to every Instagram user and figuring out what they had said to serve you ads was actually very high.</strong></p>

<p class="wp-block-paragraph"><strong>It was much cheaper to say, “You were on your friend&#8217;s Wi-Fi network six months ago, they searched for vacations, we&#8217;re going to serve you the ads and the coincidence will be astounding and you will believe that we&#8217;re listening to you, but it&#8217;s actually just a bunch of like data matrix synthesis, right? But that&#8217;s going to be very effective.”</strong></p>

<p class="wp-block-paragraph"><strong>We could write that story and say, “Actually you were in the same place at the same time. There&#8217;s no way they&#8217;re listening to you, it would be too expensive.” But here in 2026, I&#8217;m not sure I can make that claim anymore. Everyone wants to listen to you all the time. The amount of databases that we are synthesizing have skyrocketed all the way to “I&#8217;ve seen all the license plates on all the highways at all times, and the police chief has that data.”</strong></p>

<p class="wp-block-paragraph"><strong>How do you regain a sense of privacy? There&#8217;s a part of me that says so many people believe their phones are listening to them that you can never claw your way back, that you can never end the conspiracy theory.</strong></p>

<p class="wp-block-paragraph">The “phone listening to you&#8221; thing is so interesting to me because it&#8217;s one of those perfect examples of conspiracy versus reality, where if somebody is having a discussion about something, like that they want to get a horse. Weird example. But I was thinking about learning how to ride a horse. You have that discussion with your partner and then later on that day, you get a suggestion or an ad for horse-riding lessons on your phone. The conclusion and the conspiracy theory is my phone is listening to my conversations.</p>

<p class="wp-block-paragraph">That&#8217;s pretty reasonable until you find out that it&#8217;s very inefficient for them to do so. The crazy part is that you&#8217;ve been giving subtle hints to Meta, to Google, and to all these companies and they have an algorithm that can figure out that you&#8217;re going to want horse-riding lessons and so when you feel like your phone&#8217;s been recording your conversations, it&#8217;s almost like this glitch in the matrix where you have a moment to realize how powerful the algorithm actually is at predicting what you&#8217;re about to think. That is scary and that&#8217;s not a conspiracy. That&#8217;s actually how it works.</p>

<p class="wp-block-paragraph">That always boggles my mind like that. Wow, look at the real thing happening because it&#8217;s so much crazier than the conspiracy is. Of course they could listen to you. There are a lot of devices that listen to you that say they&#8217;re using your data to self-improve. Tesla listens to you. Like there&#8217;s a lot of different services and products.</p>

<p class="wp-block-paragraph">But the scary part is that listening to your conversation is one of the least efficient and least valuable things it could do because it already has so much more important information. What you&#8217;re communicating verbally is usually not nearly as valuable as just your subtle pattern.</p>

<p class="wp-block-paragraph"><strong>Yeah, and your transaction history. I guess what I&#8217;m getting at is again, five years ago, I would say some version of that all the time: “They&#8217;re not listening to you. The real thing is way scarier and listening to you isn&#8217;t valuable.” And it would be costly. You have to store all this audio, you have to process it, you have to figure it out. And now it feels like actually it&#8217;s not costly. It is happening all around us all the time.</strong></p>

<p class="wp-block-paragraph"><strong>If I look at Flock, the problems break down into two buckets. One, the very idea of a private database that anyone can search without controls is bad. And we should legislate a bunch of controls around that thing. And then two, letting a startup kind of YOLO that technology into the world without any security best practices, equally bad. These are two different problems that have come together to create a privacy disaster.</strong></p>

<p class="wp-block-paragraph"><strong>But even if you think Axon or Motorola will have better security, you&#8217;ve got the first problem, which is you need controls around these private networks. All that in my mind is right next to the conspiracy style thinking you&#8217;re describing, where it&#8217;s technologically plausible that all the bad things are happening.</strong></p>

<p class="wp-block-paragraph"><strong>I can&#8217;t rule them out anymore. My Apple Watch might just make transcripts of all the meetings without anyone&#8217;s permission. The loophole you describe in our legal system for years, the idea that you don&#8217;t have privacy in public, has been a lodestar. It is just foundational, and now people don&#8217;t love that anymore. Because the idea that you don&#8217;t have privacy in public enables a bunch of people to do a bunch of things people don&#8217;t like.</strong></p>

<p class="wp-block-paragraph"><strong>Maybe we should rethink that as a moral, ethical, and legal matter, but we&#8217;re nowhere close to that. I just feel like all that is pouring fuel on the conspiracy theories. You&#8217;re in the center of the storm here, and so I&#8217;m wondering if you can find a rational set of policy outcomes here that tamps down on those flames.</strong></p>

<p class="wp-block-paragraph">A little over a year ago, when my first video on Flock came out, if the company&#8217;s response and the government&#8217;s response to it was, “Audit logs are now going to be open and they&#8217;re going to exist on something that uses immutable data storage. It could be the blockchain, could be <a href="https://www.catalogicsoftware.com/blog/worm-vs-immutability-essential-insights-into-data-protection-differences/">WORM</a> or something like that. Basically, anybody can look at them, anybody can own them, nobody can change them…”</p>

<p class="wp-block-paragraph">If they said that, then they immediately went and fixed all the security vulnerabilities and you just had a smarter way of looking at these things… Also one thing that would have been really interesting around them is to be able to go to your DMV and show them your license and opt out.</p>

<p class="wp-block-paragraph">You could say, “I&#8217;ve not been convicted of a felony, I&#8217;ve not done anything wrong, I don&#8217;t want to be tracked.” And then all of a sudden, when a Flock license plate reader detects your plate, it says “opt out,” unless a cop puts you on a hot list because you&#8217;ve murdered someone or something like that. These are all reasonable compromises that could have been made with relatively little expense.</p>

<p class="wp-block-paragraph">But now a year later, who&#8217;s going to trust anybody who makes those compromises? Now there&#8217;s no trust anymore because of that. Because Flock dug its heels in so much, and because police departments constantly gaslit everybody over and over again with, “There&#8217;s no abuse, there&#8217;s no record of abuse. We&#8217;re checking it. We&#8217;re checking these audit logs constantly. It makes you safer. If you take these cameras down, your kids are going to go missing.” That type of thing.</p>

<p class="wp-block-paragraph">Now how can you fix this? Now people are just destroying cameras. Now, people are just threatening executives of these companies because that&#8217;s what they do when they get taken this far out.</p>

<p class="wp-block-paragraph">That&#8217;s my big problem now. If I have any goal in this or any dog in this fight, I&#8217;d like to bring people back towards solutionism, because I don&#8217;t want surveillance at all, but we don&#8217;t live in Benn Jordistan. We live in a democracy and a lot of people are okay with it to some degree. Most people are not okay with it, from polling I&#8217;ve done, if it doesn&#8217;t involve a warrant.</p>

<p class="wp-block-paragraph">Somewhere along there is a solution where nobody&#8217;s happy, but everybody&#8217;s content. If I could do anything right now, it would be bringing people back towards a path where a solution can be found.</p>

<p class="wp-block-paragraph"><strong>One of the things I&#8217;ve been thinking about a lot is the widespread assumption that surveillance does exist. When there&#8217;s some high profile crime, the assumption that there will be cameras that will show us something about this crime actually kind of redounds in favor of the surveillance companies. Ring had an ad at the Super Bowl about tracking lost dogs. They got in</strong> <a href="https://www.theverge.com/tech/876866/ring-search-party-super-bowl-ad-online-backlash"><strong>a lot of trouble</strong></a> <strong>over what else we’re going to do with this surveillance network.</strong></p>

<p class="wp-block-paragraph"><strong>I think it was a week later that Savannah Guthrie&#8217;s mom was kidnapped and</strong> <a href="https://www.foxbusiness.com/technology/ring-founder-addresses-fbi-recovery-doorbell-footage-nancy-guthrie-disappearance-case"><strong>Jamie was on every news network in town</strong></a> <strong>saying Ring cameras are going to solve it, whether or not the</strong> <a href="https://www.theverge.com/tech/877235/nancy-guthrie-google-nest-cam-video-storage"><strong>footage that we saw was even from Ring cameras</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph"><strong>There was this notion that surveillance would help. That is a real pendulum swing back and forth. The cameras are the solution at one time and the abstract concept of the cameras makes people mad because why are you passively surveilling me? You&#8217;re talking about solutions. How do you thread that needle?</strong></p>

<p class="wp-block-paragraph">Most people need to understand, especially police departments, that most of the things that are being promised by people like Garrett Langley, the CEO of Flock, and Jamie Siminoff, the CEO of Ring, are their sales tactics. These CEOs or executives or anybody from any company, they&#8217;re not actually going out and doing this research in a way where they&#8217;re not cherry-picking data and looking for statistics that support their product.</p>

<p class="wp-block-paragraph">You could say that&#8217;s unethical, you could say that&#8217;s wrong, but that&#8217;s what you expect from a tech company. Nobody believes that a tech company would all of a sudden become a humanitarian while they&#8217;re still representing their company. We could take that and we could isolate that, and then we say, “Research needs to be done,” and research is very, very complicated for this.</p>

<p class="wp-block-paragraph">In sociology and criminology, we don&#8217;t even understand if increasing police reduces crime as a society. We&#8217;ve not even proven that. Putting cameras up is a really big ask. We just need to be asking these questions a lot more, and being more careful about putting these cameras up. What will they actually help?</p>

<p class="wp-block-paragraph">If we could find something that actually helps, we could say, “We have a lot of cars being stolen in this neighborhood. Hey guys, how do you feel about an ALPR that has 24 hours of retention time coming up in this neighborhood and everything that we search on it will be in an immutable audit log that you&#8217;ll be able to see every single day? How do you feel about that?” I feel like a lot more people would say, “Yeah, I don&#8217;t want my car stolen.” They would maybe err on the side of trying something to reduce a crime problem rather than the police just behind closed doors signing a multi-million dollar contract to put cameras up all over the city without asking anyone.</p>

<p class="wp-block-paragraph">That&#8217;s one of the first solutions. Transparency in general. If I were running Flock in some weird parallel universe, a year ago when <a href="https://haveibeenflocked.com/">Have I Been Flocked?</a> came out — the website that allows you to search your own license plate — I would have immediately partnered with them. I would have said, “Here&#8217;s all our data. Thank you for running this. Let&#8217;s give you some money so you can keep this server running fast. Because I want everybody to not be mad at us. I want everybody to understand what&#8217;s going on.”</p>

<p class="wp-block-paragraph">A lot of it comes down to quantifying things at a local level to see what people want, and maybe even having referendums in certain places. Referendums are usually really tricky and you have your Brexit situations with referendums, but sometimes they’re also useful.</p>

<p class="wp-block-paragraph">For a general person watching this right now, the one thing that I strongly urge is to find out who&#8217;s voting for this stuff. Find out who actually signed the paperwork to spend the money on it without any form of security vulnerability check, without any sort of special license or any sort of audit data, without going through anything else, because that person is typically a city council member and you can run and be one of those quite easily.</p>

<p class="wp-block-paragraph">It&#8217;s not that difficult. Most city council members that I&#8217;ve met are just like me, just like my viewers. They&#8217;re not these prestigious politicians. It&#8217;s something that most people could do if they have a few friends helping them campaign.</p>

<p class="wp-block-paragraph"><strong>You said immutable record again and it reminded me that earlier you earned the distinction of being the only person on</strong> <strong><em>Decoder</em></strong> <strong>to ever suggest the blockchain as a solution for something in a way that did not immediately imply that you would make a bunch of money. I want to congratulate you for that.</strong></p>

<p class="wp-block-paragraph"><em>[Laughs]</em> It&#8217;s interesting that all of this ALPR stuff blew up at the same time that crypto and blockchain and NFTs blew up. Yet nobody ever thought, “Hey, we could use a proof-of-stake network, one that&#8217;s not actually scorching the Earth to solve Sudoku puzzles, but we can actually use a highly efficient proof-of-stake network to immutably store data for these audit logs.”</p>

<p class="wp-block-paragraph">But it&#8217;s not too late. These things still exist. You don&#8217;t have to use blockchain. There&#8217;s <a href="https://en.wikipedia.org/wiki/InterPlanetary_File_System">IPFS</a>, which is a decentralized file system. There&#8217;s WORM, which is “write once, read many.” That&#8217;s a thing that IBM, I think, invented, but it&#8217;s used everywhere. There are a lot of ways to do immutable data, but it being democratized data is what&#8217;s the most important part.</p>

<p class="wp-block-paragraph"><strong><em>[Laughs]</em></strong> <strong>We&#8217;re not using the GPUs for Sudoku puzzles anymore. We&#8217;re running them red hot for other stuff. Don&#8217;t worry. We switched those over.</strong></p>

<p class="wp-block-paragraph"><strong>You mentioned working with the companies. You mentioned the idea that Flock is now partnering with some of its critics, which would have helped them early. They have invited you in, right? One of your strongest calls is for external auditors and researchers to evaluate these systems. It&#8217;s one of the things you said was needed in your congressional hearing.</strong></p>

<p class="wp-block-paragraph"><strong>They&#8217;ve invited you in. You&#8217;re now a third-party reviewer with Flock. What is your relationship with Flock like now? And do you think it&#8217;s changed how you view and evaluate the company?</strong></p>

<p class="wp-block-paragraph">There are certainly people at the company who really dislike me. And then there are people at the company… I&#8217;ve spoken to the CEO. I&#8217;ve spoken to a couple of the executives. There are people at the company who are absolutely willing to have a conversation and figure out what a solution actually looks like. Unfortunately, and I say “unfortunately” because throwing poop is really easy, but cleaning up the room so people can sit in it again without smelling poop is really hard, and most people are only willing to do the throwing poop part.</p>

<p class="wp-block-paragraph">But one thing that happens in our society all too often is when we have a big controversy, especially on social media, and then there is no remediation at all. There&#8217;s no allowance for remediation. If you think about somebody getting canceled or something, one thing I always think is, “What do you want them to do? What should they do now? Do you have any ideas or should they just die?” Because that&#8217;s not a solution.</p>

<p class="wp-block-paragraph">We can&#8217;t just snap our fingers. If, in the next month, Flock just said, “We can&#8217;t do it anymore. We&#8217;re going out of business. We quit. We&#8217;re going to make toys or something else, or we&#8217;re going to just leave,” Axon, Verkada, Palantir, and all these other companies would just step in and do the exact same thing and they would learn from Flock&#8217;s mistakes and do it more efficiently.</p>

<p class="wp-block-paragraph">We&#8217;re in a place right now where, had <strong></strong>Flock not dug their heels in and not listened to press strategies that make them seem more confident than they actually are, and actually had listened to people and maybe worked on a solution — it&#8217;s going to be rough and I&#8217;m going to get a lot of hate for even suggesting that that&#8217;s a thing — but if we actually want to solve this problem, we have to do that.</p>

<p class="wp-block-paragraph">You have to have an olive branch. You could still hit back. You can still wear a boxing glove in one hand, but you have to have an olive branch in the other one. Otherwise, I can&#8217;t fix this myself as a YouTuber. One of the more powerful things — and this is almost two months ago — was someone high up at Flock said, “We want guardrails. Give us some guardrails. Just tell us what to do. Tell us what to do, and we&#8217;ll make the changes we need to do and stay in business and grow that way. But we need those guardrails.”</p>

<p class="wp-block-paragraph">Unfortunately, the people who make those guardrails are just saying, “I don&#8217;t like Flock. Flock is bad.” They&#8217;re not actually setting these guardrails up. You also have a lot of different bills being passed around election time. I just wish a lot of these people would get together in one room with Flock and make a decision on what they think would be best to move forward.</p>

<p class="wp-block-paragraph"><strong>You&#8217;ve made some very aggressive YouTube videos about Flock. One of my favorites was you went to the Flock Forward convention where they banned you. They canceled your hotel room, and then you</strong> <a href="https://www.youtube.com/shorts/GQoQkeMdvQM"><strong>set up Wi-Fi scanners and Bluetooth scanners outside</strong></a><strong>. You figured out who was there.</strong></p>

<p class="wp-block-paragraph"><strong>This is perfect stunt journalism. I watched that video and I went, “I should stop running this fussy web magazine and I should just do this.” It was a great video with a super aggressive posture towards Flock.</strong></p>

<p class="wp-block-paragraph"><strong>Can you still be in that mode when you&#8217;re in the company trying to help create solutions?</strong></p>

<p class="wp-block-paragraph">It&#8217;s a great question that I think about all the time. It&#8217;s really difficult to be a journalist in that type of situation where you&#8217;re talking to the company and you&#8217;re producing things that harm the company or its public image at the same time.</p>

<p class="wp-block-paragraph">At the end of the day, you just can&#8217;t lie. You just have to be as honest as possible, which is one of the reasons I&#8217;m even saying that I&#8217;ve spoken to the Flock CEO and stuff like that. Because I just want to have a 360-degree understanding and find out as much information as I possibly can, and then let my viewers decide how they feel about that.</p>

<p class="wp-block-paragraph">Maybe the only thing I really want to guide them toward at this point is away from things like violence, away from things like threatening the CEO, because that actually makes us less safe as a society. That also makes cops more likely to put cameras up everywhere. It&#8217;s not a very good way of dealing with the issue and also just threatening or terrorizing people&#8217;s families is not a solution for anything.</p>

<p class="wp-block-paragraph">That&#8217;s a question I think about constantly because it&#8217;s really, really hard to navigate this ethically, knowing that your next story might hurt the person you just had a conversation with, or vice versa, that the person you just had a conversation with might actually make your audience think less of you or judge you in some way.</p>

<p class="wp-block-paragraph">But I truly do believe that if you hang onto nuance as much as possible, and if you&#8217;re always sort of letting nuance guide you, that in the long term it&#8217;ll be very bumpy, but in the long term you&#8217;ll be rewarded for it. That&#8217;s maybe why my channel gets the views it does. I hope, or I like to think that, and maybe it&#8217;s egotistical to think that, but I think it&#8217;s because I always try to hang on to nuance to some extent.</p>

<p class="wp-block-paragraph">I always say, “To be fair,” and then look at that side because otherwise I&#8217;m just making content that&#8217;s telling people how to think. Whereas I feel like people want to be led on a mission to discover things and learn about things and then come up with their own opinion afterwards.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m glad you brought this up because I wanted to end with a little bit of you as a YouTuber, as a person who tries to gain an audience on these platforms. One of my longstanding jokes on the show is every YouTuber gets their wings when they make a video about how mad they are at YouTube, about the algorithm or demonetization or whatever YouTube thing.</strong></p>

<p class="wp-block-paragraph"><strong>Marques Brownlee just made a video about how mad he is at YouTube about A/B testing. It took a long time, but here we are. You&#8217;re describing succeeding on an algorithmic platform with nuance, with data, and with journalism. I look at the algorithmic platforms and I think that doesn&#8217;t exist.</strong></p>

<p class="wp-block-paragraph"><strong>What&#8217;s your relationship like there? If you&#8217;re a self-described YouTuber, are you on the road to becoming MrBeast? Can you still fight the fight?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t try to analyze it. If I get a video that doesn&#8217;t have a million views or something, I don&#8217;t say that video is a failure. I think that video really worked probably for the demographic that watched it and then it didn&#8217;t work for another slice of the demographic. In terms of nuance, enough people are exhausted from being told how to think about it and they feel like they&#8217;re being worked nonstop when they&#8217;re on social media and watching things.</p>

<p class="wp-block-paragraph">Maybe that nuance helps my channel provide some form of relief from that. I try to do better and better. And it&#8217;s interesting because maybe my content will be less exciting if I try to be more and more nuanced. But I speak to a lot of journalists. <a href="https://www.atlantanewsfirst.com/authors/brendan.keefe/">Brendan Keefe from <em>Atlanta News First</em></a> is a great example. I would almost consider him a mentor at this point because he&#8217;s extremely rigid with his nuance and with his ethics.</p>

<p class="wp-block-paragraph">A good example is that Flock Forward thing that you mentioned. Before that, I had found the entire guest list. I had opened up and downloaded the app and then decompiled the app and probed it and found the entire guest list and a bunch of information about all of the guests who were going to Flock Forward. This is valuable info. These are police officers and senators, and most of these guests, our tax dollars paid for them to fly to Atlanta to come to this event.</p>

<p class="wp-block-paragraph">Immediately I told a couple of journalists and they said, “Yes, give it to me,” and I thought to myself, like, “No, this is wrong. I need to report this to the company if I want to actually have principles. If I want to stay on this side of things, if I want to be able to tell police that they can&#8217;t search their wives because it&#8217;s personal information that they&#8217;re not supposed to see, then I also can&#8217;t release breach data.” It&#8217;s those types of things that are really hard. That would have been a banger video for me to release that guest list. But over the long run, that actually pays off.</p>

<p class="wp-block-paragraph">People just watch your content and feel like you&#8217;re more trustworthy, which is the number one area where people struggle with YouTube or any sort of social media, because you have to somehow say, “I actually have standards and ethics and I&#8217;m going to try and tell you the truth in this crazy noise.” That’s what I&#8217;m trying to do. I don&#8217;t know if I&#8217;m going to achieve it, but that&#8217;s a big goal of mine.</p>

<p class="wp-block-paragraph"><strong>I can&#8217;t agree with that more. Anybody who listens to our other show</strong> <strong><em>The Vergecast</em></strong> <strong>knows that I prattle on about our ethics policy all the time. In this media environment, you actually have to make the subtext text and say, “I made this information this way. This process generated this outcome.” It&#8217;s the process that you actually are buying from me, not the headline.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s something about that that I think is very challenging on a platform like YouTube. That&#8217;s why I asked about it. Because you can see what the platform naturally wants to do and you&#8217;ve managed to grow a lot with very in-depth coverage about very wonky topics that our elected officials would maybe prefer not to know about and that&#8217;s a success.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m just wondering if you fight the platform&#8217;s dynamics openly and explicitly, if you think about them, or if you&#8217;re just riding the wave.</strong></p>

<p class="wp-block-paragraph">My ultimate wish — which you know, unfortunately isn&#8217;t going to come true — is that I can make a video about Unitree robots, let&#8217;s say, and then find a security vulnerability, find a backdoor, <a href="https://www.youtube.com/watch?v=lA8WuXDXfcI">which I did</a>, and then some of my viewers actually take that research and improve on it and make it better. And then continue doing that, and then that actually results in something bigger and then I’m able to just move on to something else entirely.</p>

<p class="wp-block-paragraph">It doesn&#8217;t work that way. I&#8217;m still talking about Flock, and I&#8217;m still talking about data centers. I&#8217;m still talking about <a href="https://www.theverge.com/news/714811/saved-png-image-to-bird-mimicry-starling%5C">storing an image in a bird</a>. All these things I&#8217;m still constantly connected to.</p>

<p class="wp-block-paragraph">But looking past just the views and retention and looking towards the reason I made that Flock Forward video was because a lot of my viewers saw that and said, “Whoa, whoa, whoa, what is that? A [software-defined radio]? You can listen to that stuff. How do you do that?” And now they&#8217;re into radio, which is crazy. There are so many more interesting things than listening to a bunch of Flock employees talking on a wireless microphone with radio.</p>

<p class="wp-block-paragraph">It encourages people to sort of explore with tools that they could pretty easily obtain. I hope that that results in more people doing more interesting things in collecting and processing data in ways that actually help the world.</p>

<p class="wp-block-paragraph"><strong>I can&#8217;t think of a better place to leave it than there. Benn, thank you so much for being on</strong> <strong><em>Decoder</em></strong><strong>. Like I said, this was a dream come true.</strong></p>

<p class="wp-block-paragraph">Thank you for having me. I appreciate it.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Will Warner Bros. kill Skydance — or will David Ellison kill Warner Bros?]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1008733/warner-skydance-paramount-ellison-debt-failure" />
			<id>https://www.theverge.com/?p=1008733</id>
			<updated>2026-10-16T08:55:11-04:00</updated>
			<published>2026-10-10T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Entertainment" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Streaming" />
							<summary type="html"><![CDATA[Today, I’m talking with Peter Kafka, chief correspondent at Business Insider and host of the Channels podcast, about the gigantic Warner Bros.-Paramount merger and the future of the company now simply called Skydance. Skydance is owned by David Ellison, son of Oracle CEO Larry Ellison, and its deal to acquire Warner Bros. Discovery officially closed [&#8230;]]]></summary>
			
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<img alt="A stylized illustration of David Ellison clutching the Warner Bros. water tower" data-caption="" data-portal-copyright="Image: The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/DCD_0319.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Peter Kafka, chief correspondent at <em>Business Insider</em> and host of the <em>Channels</em> podcast, about the gigantic Warner Bros.-Paramount merger and the future of the company now simply called Skydance.</p>

<p class="wp-block-paragraph">Skydance is owned by David Ellison, son of Oracle CEO Larry Ellison, and its deal to acquire Warner Bros. Discovery officially closed the day Peter and I spoke.</p>

<p class="wp-block-paragraph">There are some grand ambitions here, but the reality is that acquiring Warner never goes well for anyone. AOL failed, AT&amp;T failed, and Discovery failed — although it did succeed in flipping these assets to Skydance. So I wanted to ask Peter if he thinks the Ellisons and Skydance have a real shot at succeeding where so many companies before them have hit the rocks. </p>

<p class="wp-block-paragraph">Okay: Peter Kafka on Warner Bros. and Skydance. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP9038342707" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="wp-block-paragraph"><strong>Peter Kafka, you&#8217;re the chief correspondent at Business Insider, and you&#8217;re the host of the</strong> <strong><em>Channels</em></strong> <strong>podcast, our sister podcast here on the Vox Media Podcast Network. Welcome back to</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks for having me. It&#8217;s big media day again!</p>

<p class="wp-block-paragraph"><strong>A big media day. It&#8217;s an auspicious day, as my parents would say. It is the day that the Warner-Paramount merger closes. We&#8217;ve all been calling it Warner Mount, but I&#8217;m told this company will instead</strong> <a href="https://www.theverge.com/entertainment/1004016/paramount-warner-bros-skydance-megamerger-name"><strong>just be called Skydance</strong></a><strong>.&nbsp;&nbsp;</strong></p>

<p class="wp-block-paragraph">Skydance!</p>

<p class="wp-block-paragraph"><strong>Every time I see the word Skydance, I assume it is foreign-owned, which is maybe true in some way.</strong></p>

<p class="wp-block-paragraph">Another way to think of it is that there are iconic names in Hollywood. Paramount is such an iconic name that Viacom <a href="https://www.cbsnews.com/news/paramount-viacomcbs-name-change-company/">turned itself into Paramount</a> years ago. Warner Bros. is a legendary studio. Let&#8217;s get rid of those names. Let&#8217;s add Skydance, which no one&#8217;s ever heard of.</p>

<p class="wp-block-paragraph"><strong>Let’s just start at the start. There was Paramount. There’s Warner Bros. The deal closes today. That is all going to be a new company called Skydance. Is Skydance just a holding company? Are we as consumers meant to know that this thing exists?</strong></p>

<p class="wp-block-paragraph">I think for the near term, you&#8217;re still gonna think of companies like Paramount, Warner Bros., and HBO as brands you know, but this is going to be one company. They&#8217;re going to merge everything. They&#8217;re likely going to merge the streaming services, Paramount and HBO, into a thing, not right away, but eventually. So I do think Skydance will be a name that consumers will probably know at some point.</p>

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<p class="wp-block-paragraph"><strong>I just have to ask, what are the chances that HBO Max will be rebranded yet again into Skydance?</strong></p>

<p class="wp-block-paragraph">There&#8217;s probably gonna be some branding stuff. Not again. In the near term, because this is still a cable TV company, there are actually some limits on what these guys can do with their brands and their services. And they won&#8217;t come out and say, &#8220;We&#8217;re gonna mush this stuff together.&#8221;</p>

<p class="wp-block-paragraph">But there&#8217;s likely to be one mega streaming service, and maybe you can get HBO separately, or maybe you can only get HBO or only Paramount. Still, it&#8217;s gonna be one thing, and one movie studio. It&#8217;s all gonna get mushed together, and it&#8217;s all gonna be run by David Ellison.</p>

<p class="wp-block-paragraph"><strong>David Ellison is just the latest to believe that he can buy Warner Bros. and make something good happen. I have joked many times on this show that maybe the only antitrust policy this country needs is to make it illegal to buy Warner Bros., and that would just solve a lot of problems. Why does he think he will be successful?</strong></p>

<p class="wp-block-paragraph">Well, his dad&#8217;s the eighth richest man in the world, so that&#8217;s not nothing.</p>

<p class="wp-block-paragraph"><strong>That Oracle stock is tied up in a bunch of AI stuff. It&#8217;s moving up and down.</strong></p>

<p class="wp-block-paragraph">We can talk about that. But one, that means that he literally has the money to buy this, and two, that this is a public company kind of in name only. David Ellison and Larry Ellison, his father, control this company effectively. They don&#8217;t really need to worry that much about equity shareholders. Debt&#8217;s a different issue.&nbsp;</p>

<p class="wp-block-paragraph">And he’s 43. He&#8217;s got a long run backed by tens of billions of dollars of his father&#8217;s money to take a stab at this. And as you said, he will not be the first person to do this. There&#8217;s a long list of failures. I think maybe that&#8217;s appealing to guys like him. It&#8217;s like, &#8220;Everyone else is dumb. I&#8217;m the smart guy who&#8217;s gonna figure it out.&#8221;</p>

<p class="wp-block-paragraph"><strong>“Everyone else is dumb, and I&#8217;m smarter than everyone else is,” is very appealing. But that long list of failures, if you just look at it — they&#8217;re all shaped like this idea. We&#8217;re gonna take iconic Warner Bros. content, we&#8217;re gonna marry it to new distribution, we&#8217;re gonna reduce the overhead and costs and decadence of Hollywood. Where does new revenue come from?</strong></p>

<p class="wp-block-paragraph">There&#8217;s no plan for new revenue. There&#8217;s no <em>announced</em> plan for new revenue. Right now it&#8217;s shrinking; it&#8217;s cutting costs. It&#8217;s when we merge these two companies together, we&#8217;re gonna save $6 billion over the next three years. We promise that most of that&#8217;s not gonna come from layoffs, but a lot of it&#8217;s gonna come from layoffs.</p>

<p class="wp-block-paragraph">These are companies that have had many, many rounds of layoffs prior to this. And you could argue, well, there&#8217;s probably not that much more to cut. I think reasonably you could say, look, if you combine two big streaming operations, two big studio operations, there probably is stuff [to cut]. You can probably sell off some real estate. You probably don&#8217;t need all the executives you currently have. There&#8217;s some savings there. But how do you grow? No idea. And no one&#8217;s really articulated that.</p>

<p class="wp-block-paragraph"><strong>Growth is required for a couple of reasons here. One, yes, there are going to be shareholders; people will be looking at it. There&#8217;s David Ellison&#8217;s ego. Then there&#8217;s debt. This deal is levered to the max, right?</strong></p>

<p class="wp-block-paragraph">Eighty billion dollars [in debt]. Eight zero. More important than the number is the reason that David Ellison was able to buy Warner Bros. was that the last owner <a href="https://www.hollywoodreporter.com/business/business-news/warner-bros-discovery-debt-megadeal-questions-1235868542/">couldn&#8217;t deal with the debt</a> that he took on to buy the company. And that was a mere $43 or $50 billion, depending on who was counting. This is David Zaslav, <a href="https://www.thewrap.com/industry-news/business/david-zaslav-paramount-warner-bros-discovery-merger-payout/">the former CEO</a> of Warner Bros. Discovery, who spent his entire tenure running that company telling Wall Street that, yes, he was gonna get the debt down, and that was his main focus, and debt, debt, debt, reduce, reduce, reduce.</p>

<p class="wp-block-paragraph">I mean, he did reduce some debt, but he never convinced Wall Street that he had a plan to grow. Wall Street gave up on this company years ago, which is why when David Ellison decided he wanted to buy it, the stock was, like, seven bucks or something like that. Eventually bought it for, you know, many, many times that.&nbsp;</p>

<p class="wp-block-paragraph">And now David Zaslav is considered — or he considers himself — a genius for selling the company at such a high price. You could also argue, as someone told me yesterday, that a unicorn sort of manifested itself and allowed David Zaslav to exit the situation he had put himself into.</p>

<p class="wp-block-paragraph">I don&#8217;t know who the next unicorn will be for this company if David Ellison at some point decides, &#8220;Ugh, actually this is a lot of debt and a lot of pain. I don&#8217;t wanna do this anymore.&#8221;</p>

<p class="wp-block-paragraph"><strong>I want to come back to that because I have a little bit of a conspiracy theory. It&#8217;s a little bit supported by the attitudes of some of the players here, but we&#8217;ll come back around. Even the previous owner, AT&amp;T, which is remarkable that AT&amp;T was the&#8230; Somewhere in this chain of ownership, AT&amp;T owned Warner.</strong></p>

<p class="wp-block-paragraph">Yes.</p>

<p class="wp-block-paragraph"><strong>They could not deal with these assets. Their plan was to distribute Warner content on AT&amp;T phones, which never made any sense. But they were a more aggressive owner.</strong></p>

<p class="wp-block-paragraph">It also wasn&#8217;t really their plan. Their plan was, &#8220;Hey, Netflix is a really valuable company. The stock is very high. We&#8217;re this boring telecoms company. Our stock is not moving. What if we owned a [version of] Netflix? I bet Wall Street would reward us as a high-flying tech company all of a sudden.&#8221; And Wall Street didn&#8217;t.&nbsp;</p>

<p class="wp-block-paragraph">Within a couple of years, AT&amp;T said, &#8220;Uh, oh yeah, no, we&#8217;re out of this.&#8221; And yes, they had said a bunch of stuff about mobile, connectivity, ads, and targeting, and none of that ever went anywhere</p>

<p class="wp-block-paragraph"><strong>I will never forget covering their antitrust case when they had to get approval for that deal. They</strong> <a href="https://www.theverge.com/2018/6/12/17452870/att-time-warner-merger-decision-judge"><strong>convinced the judge</strong></a> <strong>that they had a vision of the future. The judge in that case, in the appeals court opinion, wrote, &#8220;This is a vision deal.&#8221; And I thought, &#8220;We&#8217;re doomed.&#8221; Like, I don&#8217;t know what&#8217;s going on in our judiciary [system].</strong></p>

<p class="wp-block-paragraph">I want a Vision deal. How do I get one of those?</p>

<p class="wp-block-paragraph"><strong>I don&#8217;t know. I was like, &#8220;I don&#8217;t know what that is at all.&#8221;&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>So, we have a lot of debt. The FCC had to</strong> <a href="https://arstechnica.com/tech-policy/2026/09/fcc-lets-paramount-sell-49-5-equity-stake-to-saudi-arabia-uae-and-qatar/"><strong>waive the cap</strong></a> <strong>on foreign ownership. There&#8217;s 49 percent of the money from the Gulf in this company. Then there&#8217;s the Oracle of it. I&#8217;ve always wondered</strong> <a href="https://www.theverge.com/entertainment/845532/larry-ellison-paramount-wb-netflix-takeover-oracle"><strong>why anyone would trade</strong></a> <strong>what amounts to an AI stock for a media stock, especially right now.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>But the AI trade is a little shakier than it was before. Oracle has been punished a little bit for this deal. What do you make of that? Is that an effective backstop?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t know if Oracle was punished for this deal. I mean, there was a period a year ago when Larry Ellison&#8217;s net worth was double what it is now. And you could say, &#8220;Well, that was just a weird AI blip.&#8221; It&#8217;s still a very highly valued company. He is still the eighth richest man in the world because of his Oracle holdings.</p>

<p class="wp-block-paragraph">Wall Street is a little bit nervous now about the fact that Larry Ellison’s source of wealth is Oracle. He&#8217;s borrowing from Oracle. He has backstopped the Warner Bros. deal by pledging to come up with $40 or $50 billion if he needs to. And there is a question of, like, all right, not only is Oracle sort of intimately tied into this new media company, but Oracle&#8217;s also entirely dependent on one AI company, OpenAI, for its new plan.</p>

<p class="wp-block-paragraph">So late in life — Larry Ellison is 82 years old — he’s decided he&#8217;s kind of putting the entire company on AI and on OpenAI specifically. And while he&#8217;s not doing that, he&#8217;s going to use some of that money to fund his son&#8217;s media empire. I don&#8217;t know if it&#8217;s rickety, but it&#8217;s definitely a question mark.</p>

<p class="wp-block-paragraph"><strong>I open Instagram. Right now my Instagram algorithm is crazy because I keep looking for Instagram&#8217;s tolerance for copyright infringement, and it is high. Instagram has basically unlimited tolerance for copyright infringement. Mark Zuckerberg is posting deepfake memes of himself doing rap videos now.</strong></p>

<p class="wp-block-paragraph">These are details. By the way, Nilay, you know who&#8217;s figured out the Instagram and Reels algorithm? You! I get so much Nilay front-facing video. You&#8217;re very good at it. You should consider being an influencer. You have figured this out.</p>

<p class="wp-block-paragraph"><strong>I try to deeply understand the things that are gonna kill me, and so that&#8217;s&#8230; We&#8217;re just looking at that one, and I&#8217;m looking at my daughter. I&#8217;m like, &#8220;I should know what&#8217;s going on here.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>All this AI makes it impossibly cheap and easy to just take the IP from these movie studios. I watched a video last night of the Heath Ledger Joker and the Christian Bale Batman just doing a Justin Bieber video, and then I was served 5,000 more videos like this.</strong></p>

<p class="wp-block-paragraph"><strong>That&#8217;s the OpenAI business. They&#8217;re gonna destroy the creative foundations that make the IP valuable that Warner Bros. makes, and somewhere in there is a big problem that I can&#8217;t quite figure out.</strong></p>

<p class="wp-block-paragraph">Yeah, I think it maybe is simpler than that. You&#8217;re right, there are all kinds of copyright issues. The value of your library may be much less if someone can just take it without paying you. But I think the bigger issue for David Ellison and anyone in the media business is that what you really want is people&#8217;s attention.</p>

<p class="wp-block-paragraph">You have this company saddled with $80 billion in debt because it makes all kinds of entertainment, really expensive movies, all this sort of stuff, and now anyone can make anything that will at least get your attention for a few seconds on Instagram and TikTok. And so there&#8217;s this flood of stuff, whether it&#8217;s copyright infringement or not, it&#8217;s just stuff that the David Ellisons of the world have to contend with because your daughter and my kids might easily watch that stuff rather than the original <em>Batman</em> movie.</p>

<p class="wp-block-paragraph">I think that is sort of the existential problem [not just] for Skydance, but every media company today.</p>

<p class="wp-block-paragraph"><strong>But the Skydance purchase is being funded by the OpenAI deal with Oracle money. OpenAI just took all the stuff, right? This is a thing I can&#8217;t quite square: If OpenAI succeeds at the level that is necessary for the Ellison family to stay wealthy, then they will have massively profited from overwhelming IP theft, and they will have a product that can make anyone a movie at any time for zero dollars, rendering Warner effectively useless.</strong></p>

<p class="wp-block-paragraph">Maybe you&#8217;re right! Again, I think there is a core tension here in that the reason you say that Skydance is worth what it&#8217;s worth is because of its existing library and its ability to make new stuff. And a lot of that may be much, much less valuable going forward. There&#8217;s a counter that says, look, you know, people were stealing music for decades, and somehow Spotify and the music industry figured out how to actually sell $120 worth of music per year to people who were only buying two CDs per year prior to that.</p>

<p class="wp-block-paragraph">So maybe there&#8217;s a way to math yourself out of this, but we don&#8217;t know yet.</p>

<p class="wp-block-paragraph"><strong>There are other constraints on this deal. This deal is actually marked by constraints and challenges, in a particular way. The big one is that in order to settle the antitrust lawsuit filed by California and a bunch of other states, they agreed to</strong> <a href="https://www.theverge.com/entertainment/999056/paramount-warner-bros-discovery-merger-annual-film-quota-guardrails"><strong>put out 30 films per year</strong></a> <strong>or pay $30 million per film that they missed into healthcare and retirement funds managed by the unions. After two years, they have to go up to 32 movies per year, and if they don&#8217;t hit that, they&#8217;ve gotta sell their 49 percent stake in Miramax.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>This is a pretty intense constraint, right? They&#8217;ve gotta just make a bunch of movies; they do not make this many movies right now. So how are you gonna cut costs to make more movies?</strong></p>

<p class="wp-block-paragraph">I think the math there is that we have these two studios. If you sort of totaled up what they were gonna do already, it&#8217;s close to 30. And, to be clear, this is not really a constraint from California. This is a pledge that David Ellison was shouting from the rooftop for months and months and months. And if you want to, we can talk about the non-settlement he extracted from California. But this has been David Ellison&#8217;s pitch for a long time.&nbsp;</p>

<p class="wp-block-paragraph">I think the main thing is that David Ellison has proved that he can sort of get California and regulators around the world, and definitely federal regulators in the Donald Trump era, to go along with whatever he asks for. I don&#8217;t think they&#8217;re gonna be constrained by regulation.</p>

<p class="wp-block-paragraph">I think they&#8217;re gonna be constrained by math and debt, and are you shaving that debt down fast enough to make bondholders happy?</p>

<p class="wp-block-paragraph"><strong>I&#8217;m actually asking about math here. I do want to talk about the non-settlement, but the 30 films per year going up to 32, I don&#8217;t know that there&#8217;s a market for that. It&#8217;s not like the box office is growing at the rate to support that, and if you need to pay down your debt, the first thing you would do is stop making things that people aren&#8217;t buying.</strong></p>

<p class="wp-block-paragraph">I mean, there&#8217;s some finagling, right? Like, what is a movie? Does a movie have to be released in movie theaters? You know, is a piece of shit that no one watches a movie? And then again, I think, in that settlement in California, they said literally, like, &#8220;X number of movies have to be in a movie theater,&#8221; which means a lot of them don&#8217;t.</p>

<p class="wp-block-paragraph">So who knows what they will use to fulfill that obligation. But for the near term, I don&#8217;t think that is gonna be their primary problem.</p>

<p class="wp-block-paragraph"><strong>Let&#8217;s talk about California for one second. I actually got an email from a reader saying that I always call out Republicans by name, but I only say California. So I will say it appears [Governor] Gavin Newsom and [Attorney General] Rob Bonta totally caved here. Ellison threatened to move to Nashville or something, and they blinked, and I think the other states in that lawsuit were not happy that they blinked, but they totally blinked. What is the settlement? Does it have any teeth at all?</strong></p>

<p class="wp-block-paragraph">No. It&#8217;s all the stuff that David Ellison was already proposing, and none of the things that Rob Bonta, the attorney general of California, said he was demanding. He was saying, &#8220;We need structural remedies.&#8221; I&#8217;m sure I don&#8217;t need to tell a <em>Decoder</em> audience what a structural remedy is.&nbsp;</p>

<p class="wp-block-paragraph">He was like, &#8220;Behavioral remedies are not adequate. It won&#8217;t work.&#8221; He was saying that up until the weekend that he caved, and then he caved, and he had this humiliating press conference where he had to stand up and say, &#8220;This is, this is a good deal. I really believe in it.&#8221; Apparently, he was considered, like, a rising star in Democratic politics, in California politics. I have not been exposed to him prior to that press conference, but it&#8217;s very hard to imagine that guy has a&#8230; He doesn&#8217;t seem to have a lot of juice. Anyway, enough about my political musings.</p>

<p class="wp-block-paragraph">There&#8217;s very little in here. I don&#8217;t think Paramount gave up a single thing to actually make this deal work. You got it right. They said, &#8220;We&#8217;re gonna leave if you don&#8217;t give us what we want.&#8221; Anyone who&#8217;s watched professional sports, who&#8217;s rooted for a professional sports team, knows how this goes. &#8220;If you don&#8217;t build me my new stadium, if you don&#8217;t give me billions of dollars to refurbish my stadium, I&#8217;m gonna leave.&#8221; And sometimes those teams do leave, but most of the time they stay and they get what they want, and that seems to have been the Ellison playbook here.</p>

<p class="wp-block-paragraph">David Ellison&#8217;s pitch to Hollywood for the last two years was like, &#8220;I grew up here. I love movies. I love Hollywood. I love film.&#8221; And then the last few months were, &#8220;I&#8217;m gonna ditch this and go to Tennessee or wherever else and fuck Hollywood,&#8221; which is kinda hard to square those two things.&nbsp;</p>

<p class="wp-block-paragraph"><strong>The second he got that settlement, he was like, &#8220;No, I love LA. I was never planning to leave.”</strong></p>

<p class="wp-block-paragraph">I think they looked at this from the start as: We&#8217;ll say and do whatever we need to make this deal get done. And once it&#8217;s done, it&#8217;ll all be behind us; we can go back to loving LA, and no one&#8217;s ever gonna pay attention to this.</p>

<p class="wp-block-paragraph">And by the way, he might be right.</p>

<p class="wp-block-paragraph"><strong>I do have to note that Peter is a Vikings fan. I&#8217;m a Packers fan. I do not believe the Bears are gonna move to Indiana. We&#8217;re literally watching this situation play out in front of us right now.</strong></p>

<p class="wp-block-paragraph">That&#8217;s a wild one. I will say the Minnesota North Stars no longer exist. The Dallas Stars. Minnesota was without hockey for several years. So sometimes these guys actually do follow through and move the team.</p>

<p class="wp-block-paragraph"><strong>Yeah. Speaking of Minnesota, who knew you didn&#8217;t need a quarterback to go four and 0? Just throwing that out there.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Let&#8217;s talk about the NFL for one other second. The</strong> <a href="https://www.theverge.com/podcast/962994/comcast-nbc-universal-split-versant-content-plus-pipes-media-broadband"><strong>last time</strong></a> <strong>you were on the show, you pointed out that CBS broadcast television exists to sell the American people the NFL. That is the business.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Speaking of math, of costs, there is a change of control clause in the NFL deal with CBS. They could come in there, they could raise rates, they could get Amazon or Apple or Google to throw a bunch of money on the table and basically tank this company. They could take CBS&#8217;s business away.</strong></p>

<p class="wp-block-paragraph"><strong>Does that feel like a meaningful threat right now?</strong></p>

<p class="wp-block-paragraph">No. I think CBS will pay whatever it needs to pay to keep the NFL. It is existential for them. I think the NFL knows that. But also, the NFL, as much as they like streaming stuff and streaming deals, they like broadcast TV. They like that distribution. It&#8217;s also a political football, pun intended. If the NFL went away from broadcast television, I think that would become an actual national political emergency. You&#8217;d actually have Republicans and Democrats united to sort of stop it or do something about it.</p>

<p class="wp-block-paragraph">It&#8217;s very hard for me to believe that the NFL leaves broadcast TV, and I think because CBS needs it so badly, I just think they&#8217;ll pay whatever they need to pay.</p>

<p class="wp-block-paragraph"><strong>Let&#8217;s talk about the structure of this deal. I love talking about corporate structure on the show, as you know. You have</strong> <a href="https://www.businessinsider.com/skydance-warner-paramount-ceo-ynon-kreiz-who-is-david-ellison-2026-10?op=1"><strong>a profile of the new co-CEO</strong></a> <strong>of Skydance, Ynon Kreiz. He was most recently at Mattel.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s actually a lot of Peter in this story because he left Mattel to go run Skydance. And the CEO of Condé Nast, Roger Lynch, is leaving Condé Nast to go to Mattel, and we&#8217;ll find out who the new CEO of Condé Nast will be. These are all Peter Kafka stories in a way.</strong></p>

<p class="wp-block-paragraph">Oh, it goes deeper than that. I met Ynon Kreiz when he was running a company called Maker Studios back in the YouTube MCN days, for any of your ancient watchers and listeners. And he sold that company to Disney, and I actually broke that story. And at the time it was considered this huge deal, Disney&#8217;s big bet on digital media. The numbers are so small now it&#8217;s laughable. And that was a total failure. A long line of Disney digital acquisitions that did not work. They&#8217;re really snake-bitten there.</p>

<p class="wp-block-paragraph">Kreiz was the guy brought in. That was a really wooly company founded by a group of YouTubers who were dating each other but also harassing each other. And he was basically brought in, first as chairman, and then CEO, to be the grown-up and to sort of whip this thing into shape and sell it off, which he did.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s funny, the MCN era ended because YouTube decided that MCNs shouldn&#8217;t exist, and they just killed them all. Again, another theme that will emerge somewhere down the line in this conversation. Tell me about Ynon.</strong></p>

<p class="wp-block-paragraph">Ynon&#8217;s got lots and lots of media credentials. He ran Endemol back when that was a really important TV production company. He worked with Haim Saban, if any&#8230; No one knows who Haim Saban is anymore.</p>

<p class="wp-block-paragraph"><strong>Mighty Morphin Power Rangers?</strong></p>

<p class="wp-block-paragraph">Exactly. He did Maker and then went to Mattel, where he gets credit for making the <em>Barbie</em> movie.</p>

<p class="wp-block-paragraph">Now, he didn&#8217;t actually make the <em>Barbie</em> movie, the long-running thing, but he put that deal together with Margot Robbie and it was a giant, giant success. So that counts as a big win. He also cut 22 percent of Mattel&#8217;s workforce, sort of immediately upon getting there. That&#8217;s sort of what you bring Ynon Kreiz in to do. You don&#8217;t bring him to have lunch at the Polo Lounge and make nice with talent. You bring him in because you need to whip things into shape and cut things, and that&#8217;s his deal.&nbsp;</p>

<p class="wp-block-paragraph">I was talking to a bunch of people the last few days. He strikes me as a guy who doesn&#8217;t have terribly high EQ. Other folks say, &#8220;No, no, no, no. He&#8217;s tough, but he&#8217;s actually a teddy bear if you get to know him.&#8221; I think most people who get laid off by him won&#8217;t consider him a teddy bear, but that&#8217;s his job: to go do the unpleasant work of finding $6 billion in synergy.&nbsp;</p>

<p class="wp-block-paragraph">Because you are a corporate structure lover, you probably have noticed that while Ynon Kreiz is co-CEO of Skydance, David Ellison is not the other co-CEO. David Ellison is the CEO. So at a minimum, we have a one A and one B thing. But also, let&#8217;s be clear, David Ellison and his father own the company, so ultimately it&#8217;s their deal.&nbsp;</p>

<p class="wp-block-paragraph">I think quite clearly what David Ellison wants to do is be able to have lunch at the Polo Lounge, the San Vicente Bungalows, or wherever they go, and someone will come up to him and say, &#8220;I&#8217;m really angry about this layoff or this movie project that you canceled.&#8221; And he&#8217;ll say, &#8220;Oh, that sounds terrible. You should really talk to Ynon about that. My hands are tied.&#8221; That&#8217;s Ynon Kreiz&#8217;s job.</p>

<p class="wp-block-paragraph"><strong>Ellison wants to hang out with Tom Cruise. This whole thing, from start to finish, is like, one guy wants to hang out with Tom Cruise, and he&#8217;s gonna manufacture a company that will allow him to do that at scale.</strong></p>

<p class="wp-block-paragraph">I will give David Ellison more credit than that. David Ellison, when he ran Skydance, his primary achievement was befriending Tom Cruise. And I&#8217;m sure he liked hanging out with him, but that&#8217;s why Skydance was a company: David Ellison was in the Tom Cruise business. He was in the <em>Mission Impossible</em> business, the <em>Top Gun</em> business.</p>

<p class="wp-block-paragraph">That is what the job of a producer is: getting people to&#8230; You don&#8217;t really do anything as a producer. You just sort of package stuff, and he was able to be in the Tom Cruise business, and that&#8217;s what got him as far as he&#8217;s been able to get. And that is his job. That <em>was</em> his job. Now he&#8217;s got a different job.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s probably a PhD thesis on the kind of personality that accepts a co-CEO title without another co-CEO.</strong></p>

<p class="wp-block-paragraph">I&#8217;ve thought about that from the get-go because of the chain of events — was it last week? — Roger Lynch, CEO of Condé Nast, who said, &#8220;I&#8217;m now the CEO of Mattel.&#8221; For an hour or so, no one knew where Ynon Kreiz was going, and then the rumor was, “Oh, he&#8217;s gonna have a job at Warner&#8217;s. I&#8217;m like, well, what job could he take?&nbsp;</p>

<p class="wp-block-paragraph">He&#8217;s already been the CEO of a big publicly traded company. These guys don&#8217;t usually accept a demotion. And quite clearly what he&#8217;s&#8230; One, they said, &#8220;All right, you&#8217;re the co-CEO,&#8221; so it&#8217;s not a demotion. Two, there are only a handful of these giant media conglomerates. If you can run one, that&#8217;s just a big notch to have on your belt.&nbsp;</p>

<p class="wp-block-paragraph">Number three, they&#8217;re gonna pay him $50 million this year. So that will help salve some of those wounds, and I think everyone sort of acknowledged it. Like, he&#8217;s effectively the COO of Skydance, if you think about it. You just give him a different title so it sounds better.&nbsp;</p>

<p class="wp-block-paragraph"><strong>There&#8217;s some other shuffling under that to do. You&#8217;ve got two movie studios. You have James Gunn running DC really well, actually. I think</strong> <strong><em>Lanterns</em></strong> <strong>is just a bona fide hit for HBO. You&#8217;ve got two news divisions, which we should talk about. How are they going to resolve these conflicts? Are they just gonna pick one team or the other?</strong></p>

<p class="wp-block-paragraph">Yeah. I mean, they&#8217;ve already done that with streaming. Cindy Holland, who pioneered Netflix&#8217;s move into original programming more than a decade ago, was brought in by David Ellison a year ago to run that streaming service. He&#8217;s just bought HBO, which is run by Casey Bloys, very well-regarded, who spent the last year making it clear to everyone that he would not work with or for Cindy Holland.&nbsp;</p>

<p class="wp-block-paragraph">I don&#8217;t think there was personal animus. He&#8217;s just like, &#8220;I already run HBO. Why would I want to share power with somebody else?&#8221; So it seemed pretty clear that David Ellison would pick that horse, and I think he&#8217;s gonna make a bunch of those calls. The people who ran the Warner Bros. studio, which a year ago was the toast of the town, were making tons of money and critical acclaim. This year, they produced <em>Digger</em>, Tom Cruise&#8217;s biggest bomb ever, and they&#8217;re having a rough year. But it was always sort of clear that David Ellison was gonna bring in his people.&nbsp;</p>

<p class="wp-block-paragraph">David Ellison is not an art film guy — he&#8217;s not a guy who&#8217;s gonna allow Paul Thomas Anderson to make <em>One Battle After Another</em> again. He&#8217;s in the <em>Mission Impossible</em> Tom Cruise-iverse, so that&#8217;s not surprising. CNN and CBS, people have been talking about merging those companies almost as long as I&#8217;ve been covering the media, so that&#8217;s not a new idea.</p>

<p class="wp-block-paragraph">They have said, I think wisely for now, &#8220;Well, we&#8217;re not gonna merge those two,” because we just know it&#8217;s a fucking shit storm politically if they touch that stuff. And this is pure speculation, but they might also say, &#8220;Well, we hired Bari Weiss and gave her CBS News to run, and maybe we told her she&#8217;d also get to play with CNN. But it&#8217;s been a rough year over at CBS in the Bari Weiss business, and maybe even if we&#8217;re gonna give it to Bari Weiss a couple years down the road, let&#8217;s not stir that nest right now.”</p>

<p class="wp-block-paragraph">So Mark Thompson, who&#8217;s been running CNN, is gonna continue to run CNN. But again, in the background, no matter what Mark Thompson… He has control of CNN. Ynon Kreiz is still gonna be in there saying, &#8220;I know this is your business, but it&#8217;s really my business, and you need to cut 10 percent or 20 percent,&#8221; or whatever it is, and everyone has to do it.</p>

<p class="wp-block-paragraph">And so in some ways, yes, it matters who&#8217;s running these individual studios and components, but again, the debt is hanging over everything. Everyone is gonna have to work to reduce that debt one way or the other.</p>

<p class="wp-block-paragraph"><strong>The Bari Weiss thesis at CBS, as charitably as I can put it, was that when she showed up, she was like, &#8220;No one trusts the news, and it&#8217;s because we&#8217;re not fair enough, and I&#8217;m gonna do more conservative stuff.&#8221; And that was part of the regulatory arbitrage with the Trump administration. They were gonna change CBS because Donald Trump did not like the coverage on CBS, and that worked or didn&#8217;t work.</strong></p>

<p class="wp-block-paragraph"><strong>But I think we now know that she did not increase trust in CBS News by making it a more conservative-friendly organization. The ratings are down, like precipitously down, such that a lot of people think that she should just be fired and something else should happen. I would —</strong></p>

<p class="wp-block-paragraph">Yeah, I don&#8217;t see that happening.</p>

<p class="wp-block-paragraph"><strong>Well, right, because he&#8217;s gotta do regulatory arbitrage on both sides. We have midterms —</strong></p>

<p class="wp-block-paragraph">And I think he likes Bari Weiss. I think David Ellison is not a political person. I think his father, Larry Ellison, is probably not that political. Tom Dotan in <em>Vanity Fair</em> <a href="https://www.vanityfair.com/story/larry-ellison-profile">just did a profile</a> of Larry Ellison and sort of gets at the idea of how he&#8217;s bought these big media empires. He also owns a chunk of TikTok. Is there a thing here? And his conclusion is no, it&#8217;s not. He really doesn&#8217;t have much politics. But the one thing the Ellison family cares a lot about is Israel. Bari Weiss cares a lot about Israel. That is the one ideological through line there. I think they&#8217;d be loath to sort of cut her loose.</p>

<p class="wp-block-paragraph">And also, it&#8217;s been a clusterfuck over at CBS, but I don&#8217;t know that she&#8217;s done a worse job running it than anybody else has recently. It&#8217;s just that there&#8217;s systemic decline. Now, she may make it even worse. It&#8217;s possible. And as a journalist, you may not like what she&#8217;s doing. But if you&#8217;re running the business, I don&#8217;t know that she has made it <em>that</em> much worse. I think the Ellisons probably don&#8217;t like the headaches and headlines generated by it, but I also don&#8217;t think they care that much.</p>

<p class="wp-block-paragraph"><strong>I mean, I go on TikTok, and I see any clip from any</strong> <strong><em>60 Minutes</em></strong> <strong>or CBS News account, and all of the comments are, &#8220;You ruined this. I blame Bari Weiss. I can&#8217;t trust you.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>That is a decline in trust from where they were before, when no one knew who was running CBS News. I would actually —.</strong></p>

<p class="wp-block-paragraph">I think you should not know who the heads of network news are.</p>

<p class="wp-block-paragraph"><strong>Yeah. I think it&#8217;s bad that the kids on TikTok are like, &#8220;I hate this one person that has nothing to do with the video clip I&#8217;m seeing now.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>I bring that up because of the TikTok of it all. The idea that TikTok was a national security threat, that the United States Congress voted unanimously to ban it, that Biden voted to ban it, but then he knew it was political suicide, so he kicked the imposition of the ban to the Trump administration.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>All of that, as you peel apart the reporting, what did members of Congress see in their closed-door meetings? It comes down, as far as any of the reporting I&#8217;ve ever seen, to how they thought it was spreading pro-Palestinian propaganda, anti-Israel propaganda. Now the Ellisons own it.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>As you said, they care very deeply about the issue of Israel, and I can&#8217;t say that their ownership of TikTok has meaningfully moved the needle on how people feel about the war in Gaza in any way, shape, or form. Did they try?&nbsp;</strong></p>

<p class="wp-block-paragraph">Perhaps people were disappointed with Israel&#8217;s conduct <em>prior</em> to the invention of TikTok. Perhaps there are other reasons they may not be concerned. And, you know, the reason Congress voted for this. It’s maybe the only thing Congress has passed in years is this rule saying China can&#8217;t own TikTok, which they then immediately forgot about during the first year of the Trump administration.</p>

<p class="wp-block-paragraph">I do think the China of it all was meaningful for some people, but they clearly also just didn&#8217;t care. It’s kinda wild to see Congress pass a bill that becomes a law and then not try to enforce it at all.</p>

<p class="wp-block-paragraph"><strong>They knew it was suicide. I don&#8217;t know if you remember this, but there was a day when it was the House committee, and AOC was on this committee, and they went into a SCIF to view some intelligence about TikTok. They all came out and voted unanimously to ban this thing, and no one for months could figure out what they saw in there.</strong></p>

<p class="wp-block-paragraph"><strong>And it was like, &#8220;Did you see a picture of Chinese intelligence services turning the knobs in the algorithm to poison the minds of American youth?&#8221; And they&#8217;re like, &#8220;No, no, no.&#8221;&nbsp;</strong></p>

<p class="wp-block-paragraph">“They showed us some videos.”</p>

<p class="wp-block-paragraph"><strong>Yeah, it was like, &#8220;What, what are you looking at in there?&#8221; And then we just sold it to someone who may or may not have some political leanings, but they have some control that is equivalent to the Chinese control, which was so scary that we had to ban this platform.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m bringing this all up because that is the thing that is reducing trust in the news media. It is not the news media itself, right? The news media makes its mistakes in whatever ways it makes its mistakes. But it&#8217;s a bunch of influencers on social platforms who start every video by saying, &#8220;Here&#8217;s what they&#8217;re not telling you,&#8221; which is actually the mechanism of reducing trust.</strong></p>

<p class="wp-block-paragraph"><strong>And then they read you</strong> <strong><em>The New York Times.</em></strong> <strong>As somebody who now makes these videos —</strong></p>

<p class="wp-block-paragraph">“No one&#8217;s covering this! Let me read you a <em>New York Times</em> story about it.”</p>

<p class="wp-block-paragraph">The other thing that has reduced trust in the media is that Republicans, for 40 years, have been saying the media is biased. And if you say something for 40 years and you&#8217;re one of the two parties running the country, I think that message sort of seeps in, before TikTok, before social media.</p>

<p class="wp-block-paragraph"><strong>But if I had to pick the two things that are the biggest threats to the businesses that David Ellison now owns, I would pick AI, and I would pick social media, and those are the other big investments of the Ellison family. Is this all just an elaborate hedge, or does he have a plan to use TikTok to amplify his content? To market these movies?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think they have a plan. One of the through lines when David Ellison was buying Paramount was that David Ellison&#8217;s a successful producer. You add his dad, who runs Oracle; he&#8217;s got a lot of tech know-how. And also, David Ellison is not just a movie producer; he&#8217;s a technologist. This was the thing they stood up and said at a press conference. And he said, &#8220;Yes, yes, I was mentored by Steve Jobs.&#8221; He wasn&#8217;t mentored by Steve Jobs.&nbsp;</p>

<p class="wp-block-paragraph">But anyway, the whole premise was we&#8217;re gonna techify this and cloud and Oracle. And maybe they could save $10, $20, maybe $100 million on sort of back-office-y things by swapping in an Oracle contract for something else. Although, I think in the normal world, you&#8217;d say just because your dad owns this company, we don&#8217;t get to bring it in as a technology company for this publicly traded company. Whatever. But there&#8217;s never been any indication that they&#8217;ve got any other plan other than shaving some costs.&nbsp;</p>

<p class="wp-block-paragraph">I don&#8217;t think David Ellison is ideologically inclined. Maybe he will see something outrageous on TikTok that he doesn&#8217;t like and say, &#8220;Hey, Dad, could you bring that down?&#8221; I don&#8217;t even know if his dad has the capacity to bring something down. You know, TikTok is a black box. We don&#8217;t actually know how the algorithm works, who actually controls it, and who can steer it.</p>

<p class="wp-block-paragraph"><strong>The potential for TikTok content to end up on whatever this new Paramount HBO streaming service is high.</strong></p>

<p class="wp-block-paragraph">Mm-hmm.</p>

<p class="wp-block-paragraph"><strong>I know the other big media companies have long looked at the user-generated content platforms and been envious of their cost structure. YouTube barely pays any money for its content, and it&#8217;s destroying this industry.</strong></p>

<p class="wp-block-paragraph">YouTube pays the most. YouTube pays 55 percent. Everyone else pays zero percent.</p>

<p class="wp-block-paragraph"><strong>Right. But for an average creator on YouTube, you&#8217;re getting nothing, effectively.</strong></p>

<p class="wp-block-paragraph">I&#8217;m just saying it is a great business model, and the Reels and TikTok business models are much better than the YouTube one because they pay zero percent for content.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s something there. Like, Disney has made some noise about putting creator videos in Disney+. They&#8217;ve all looked at it. They&#8217;ve all talked about it. This one seems easy, right? It&#8217;s HBO Max plus your favorite commentary about whatever HBO Max show you&#8217;re watching, sourced directly from TikTok, right here. We&#8217;re all gonna integrate it.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Maybe this is way harder than I&#8217;m making it sound.</strong></p>

<p class="wp-block-paragraph">I think they all believe that… They all move in herds, right? All these companies always do. We&#8217;re all doing vertical video now. And you&#8217;re like, well, vertical video, yes, people like the format. What they really like is unlimited free content. Which, again, TikTok doesn&#8217;t pay anything for.</p>

<p class="wp-block-paragraph">So you, Paramount, or you, Peacock, or you, Disney, you are not in the business of getting free content from people. You are still paying for stuff, and also you care about your brand still, so you don&#8217;t wanna just have a platform where anyone can watch anything. And I think that is kind of the fundamental question for all these media companies.&nbsp;</p>

<p class="wp-block-paragraph">You&#8217;re not platforms. The dominant media companies are platforms. Can you turn yourself into a platform? Should you turn yourself into a platform? Should you just say, &#8220;Nope, what we make is super high-quality, specific stuff that people value as a brand, and maybe that&#8217;s just gonna be our place, and we&#8217;re not gonna compete with the YouTubes of the world&#8221;?</p>

<p class="wp-block-paragraph">Netflix seems to be going in that direction. They&#8217;re gonna be more platform-y. I do think you&#8217;ll probably see not just Paramount, but every company try to say, &#8220;Oh, we&#8217;re a platform, too.&#8221; I don&#8217;t think it will be successful, though</p>

<p class="wp-block-paragraph"><strong>Do you foresee a tighter connection between Skydance and TikTok? These are all companies operated by a family. They&#8217;re not close right now. They could get closer.</strong></p>

<p class="wp-block-paragraph">I don&#8217;t know that TikTok cares, right? TikTok, which is still really run by ByteDance, I don&#8217;t know that they care about making Larry Ellison that much happier. I don&#8217;t think that&#8217;s the direction of travel here.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m only curious because I&#8217;m watching Meta just relentlessly promote Muse, its AI agent, across all of its platforms. OpenAI launches Dots, and where do they go to buy ads? They go buy ads on Meta platforms. And like, this is a</strong> <a href="https://www.theverge.com/podcast/1007408/meta-muse-openai-dots-ai-agent-race-privacy-free"><strong>massive structural advantage for Meta</strong></a><strong>, right? They are not buying their own ad space.</strong></p>

<p class="wp-block-paragraph"><strong>And if I ran a movie studio and I had to put out 30 movies per year and pay to market them to try to get these kids to go to a theater, I&#8217;d be like, &#8220;Boy, I could really use that TikTok juice.”</strong></p>

<p class="wp-block-paragraph">Do you know who&#8217;s winning the microdrama wars in the US? I don&#8217;t know if you&#8217;ve paid attention to microdramas yet, but they are what they sound like.&nbsp;</p>

<p class="wp-block-paragraph"><a href="https://www.theverge.com/entertainment/1003297/microdramas-neighbours-epis-roseberry-reelshort-dramabox-vertical-video"><strong>Oh yes</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph">Meta. Meta is not in the microdrama business. Meta is in the &#8220;Oh, you wanna advertise microdramas? Come talk to us.&#8221;</p>

<p class="wp-block-paragraph">So they are getting all of the microdrama money right now. It&#8217;s a great place to be if you&#8217;re, if you&#8217;re Meta. And by the way, the microdrama companies are uploading their content to Meta as ads, so Meta both gets paid for the advertising and then has free engaging content that it can show its users. It&#8217;s a great place to be.</p>

<p class="wp-block-paragraph"><strong>If only Meta cared about its actual businesses instead of trying to win in AI agents. The amount that they would succeed would be out of control. That&#8217;s another episode of the show.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Let me end with the conspiracy theory that I brought up at the beginning. There was a bidding process. David Zaslav’s initial plan was to split Discovery into two, to sell the cable networks to whoever was dumb enough to buy them. Netflix really wanted Warner, and they bid. They were actually the announced winners until David Ellison did his regulatory arbitrage.</strong></p>

<p class="wp-block-paragraph">They <a href="https://www.theverge.com/news/838781/netflix-warner-bros-discover-bids-buyout">won the deal</a> in December of last year. They <a href="https://www.theverge.com/streaming/885691/warner-bros-says-paramounts-latest-offer-is-superior-to-its-current-deal-with-netflix">gave up on it</a> in February of this year. So they won for a couple of months.</p>

<p class="wp-block-paragraph"><strong>David is very good at just kicking the door back open. He made it happen.</strong></p>

<p class="wp-block-paragraph">As Logan Roy said, &#8220;Congratulations on saying the biggest number.”</p>

<p class="wp-block-paragraph"><strong>No one has succeeded in buying Warner. You could argue that Netflix did nothing but make the price so high that it was unsustainable, that they had to create massive amounts of leverage on this deal, pay an unsustainable amount of debt. And at the end of this all, Ted Sarandos is gonna be standing there waiting to buy, yet again, the distressed assets of Warner Bros. at a fire-sale price.</strong></p>

<p class="wp-block-paragraph"><strong>Do you think that&#8217;s likely?</strong></p>

<p class="wp-block-paragraph">I think Netflix, and other people as well, will definitely be in the business of, &#8220;Oh, Ynon Kreiz fired you? Ynon Kreiz told you you couldn&#8217;t make your movie or television show? Come talk to us.&#8221; Which, by the way, a lot of other companies were doing to Netflix back in 2022 when Netflix went through its retrenchment.</p>

<p class="wp-block-paragraph">So I think that is likely but also standard, right? You just have this turmoil. You have a standard thing in any media company of, &#8220;Oh, this project this other guy brought in, we&#8217;re not doing that anymore. That was a failure. We&#8217;re doing new stuff. And oh, by the way, if the last guy&#8217;s project turns out to be successful, we&#8217;ll take credit for that. But we&#8217;re gonna bring in new stuff.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">I don&#8217;t think Ted Sarandos was playing 3D/4D chess here. I think they thought this was a good idea. But I think the much more obvious answer is Wall Street hated the idea. Wall Street kept telling Netflix, &#8220;We hate this. We hate this. Please don&#8217;t spend $80 billion on this. And also, by the way, you&#8217;re gonna have a tough time getting this through regulation.&#8221; And I think Ted Sarandos eventually said, &#8220;Okay, you&#8217;re right.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">I&#8217;ve seen him speak publicly about this and in other venues. He seems quite upset about the fact that he didn&#8217;t get this deal. I think there are also feelings involved here. But I don&#8217;t think this was all a master plan on their part.&nbsp;</p>

<p class="wp-block-paragraph">I think they went for it. They didn&#8217;t get it. They&#8217;re bummed out. They&#8217;re gonna move on.</p>

<p class="wp-block-paragraph"><strong>I think an angry, aggressive Netflix might actually be the best thing that could happen to Hollywood right now, because they were headed towards their own vertical video slop fest, and maybe now they&#8217;re not going to do that.</strong></p>

<p class="wp-block-paragraph">I think that&#8217;s the question for — I mean, it&#8217;s a question for everybody. But for Netflix, it&#8217;s: you guys have been super successful for a couple of decades by doing one thing. Well, initially you were doing DVD by mail, then you went to streaming, and that&#8217;s all you did. And you didn&#8217;t ever sell movies. You didn&#8217;t do a la carte stuff. You didn&#8217;t do advertising. You didn&#8217;t do sports.&nbsp;</p>

<p class="wp-block-paragraph">Now you do advertising. Now you do sports. Now you&#8217;re doing games. Now you&#8217;re doing podcasts. Maybe you&#8217;re gonna integrate with other kinds of TV stuff. And so this laser focus that Netflix had, which proved very successful, they are moving away from. They may have to move away from it. They may have sort of reached the limit of that growth.&nbsp;</p>

<p class="wp-block-paragraph">But it gets trickier and trickier the more things you add to that stack to make sure you&#8217;re doing a good job. And I think that is the real challenge for them.</p>

<p class="wp-block-paragraph"><strong>We&#8217;ve been at it for about 45 minutes. I still don&#8217;t know how David Ellison is gonna make one more dollar than he made last year. Have you come to any conclusions?</strong></p>

<p class="wp-block-paragraph">We&#8217;re recording this Tuesday morning. Tuesday night, like at 7:30? I don&#8217;t know why they&#8217;re doing it at 7:30 or 8:30. They&#8217;re gonna have <a href="https://deadline.com/2026/10/skydance-ceo-press-conference-post-merger-david-ellison-1237148751/">a press conference</a>, the first Skydance press conference. So if we re-record this on Wednesday, maybe all this will be answered, but maybe it won&#8217;t be answered.</p>

<p class="wp-block-paragraph"><strong>Well, Ynon will be there. He&#8217;ll be there wielding his scythe.</strong></p>

<p class="wp-block-paragraph">It&#8217;s gonna be interesting because he is not gonna be a high-profile person, but I think a lot of people are gonna learn his name anyway. And this is a thing that Hollywood does, right? You find a person to blame for your troubles.&nbsp;</p>

<p class="wp-block-paragraph">Sometimes it&#8217;s a company like Netflix, sometimes it&#8217;s an evil Jason Kilar. Remember when he was running WarnerMedia for a minute or two? And everyone said, &#8220;You&#8217;re wrecking the business. Thank God we have David Zaslav, who&#8217;s an authentic media guy to come in and save us.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">And then, you know, six months later, David Zaslav&#8217;s name is an epithet. Presumably there&#8217;ll be a new epithet associated with this company.</p>

<p class="wp-block-paragraph"><strong>Yeah. Well, this deal is gonna wind its way through. We&#8217;re gonna check in on it a lot. We&#8217;re gonna have you back, Peter. Thank you so much for being on</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">See you, Nilay. Thanks.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Can you trust Meta’s Muse or OpenAI’s Dots to run your life?]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1007408/meta-muse-openai-dots-ai-agent-race-privacy-free" />
			<id>https://www.theverge.com/?p=1007408</id>
			<updated>2026-10-08T12:08:03-04:00</updated>
			<published>2026-10-08T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Facebook" /><category scheme="https://www.theverge.com" term="Meta" /><category scheme="https://www.theverge.com" term="OpenAI" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[My Decoder guest today is Hayden Field, The Verge’s senior AI reporter, and we’re discussing the new wave of consumer-friendly AI agents. If you’ve been paying attention to this space, you know AI enthusiasts have been using agents for a minute now — homebrew OpenClaw setups led to a surge in Mac Mini sales earlier [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">My <em>Decoder</em> guest today is Hayden Field, <em>The Verge</em>’s senior AI reporter, and we’re discussing the new wave of consumer-friendly AI agents. </p>

<p class="wp-block-paragraph">If you’ve been paying attention to this space, you know AI enthusiasts have been using agents for a minute now — homebrew OpenClaw setups <a href="https://builder.aws.com/content/399VbZq9tzAYguWfAHMtHBD6x8H/openclaw-the-ai-project-that-made-developers-rush-to-buy-mac-minis">led to a surge in Mac Mini sales</a> earlier this year. But the launches of Meta’s Muse, OpenAI’s Dots, and xAI’s Grok Bot have brought easy-to-use agents to millions.</p>

<p class="wp-block-paragraph">Muse and Dots have had the highest-profile product launches, and they’re fascinating to pit against each other. Both Meta and OpenAI have decided to pitch these agents to mainstream users and businesses <a href="https://www.theverge.com/column/999999/optimizer-meta-muse-ai-cute">in the form of cute animated mascots</a>.</p>

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<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
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<p class="wp-block-paragraph">These can do everything from the boring — restaurant reservations and inbox triage — to more sophisticated tasks. In OpenAI’s cases, the company is even <a href="https://www.theverge.com/ai-artificial-intelligence/1002033/openai-dots-launch-muse-competitor">offering “specialist” Dots</a> for marketing, legal work, and accounting.</p>

<p class="wp-block-paragraph">Muse, notably, is free, while Dots are not. So you’ll hear Hayden and me get into why Meta, which still doesn&#8217;t have a frontier model of its own, might have a meaningful edge here because it&#8217;s so much better at making and distributing consumer products.</p>

<p class="wp-block-paragraph">There’s also a huge <em>Decoder</em>-style tension wrapped up in the agent race: a conversation about what AI is good at today, what it still can’t do, and then the privacy and security implications of handing over your credit card information, your email inbox, and other sensitive hard drive data to an AI that <a href="https://www.theverge.com/ai-artificial-intelligence/1001886/meta-muse-ai-facebook-marketplace-security-concerns">might be able to do things for you</a> without even requiring an app or a phone in your hand.</p>

<p class="wp-block-paragraph">That might be the future of all computing, but it’s not at all clear if most people want to hand over the data to make it happen.</p>

<p class="wp-block-paragraph">Okay: <em>The Verge</em>’s Hayden Field on Muse, Dots, and trusting AI agents. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP6813236420" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.&nbsp;</em></p>

<p class="wp-block-paragraph"><strong>Hayden Field, you&#8217;re the senior AI reporter here at</strong> <strong><em>The Verge</em></strong><strong>. Welcome back to</strong> <strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks so much.&nbsp;</p>

<p class="wp-block-paragraph"><strong>I&#8217;m excited to talk to you. This time there isn&#8217;t any wild interpersonal drama. No one&#8217;s feelings have been hurt. I would say Elon Musk tried to hurt some feelings and didn&#8217;t get there. Alexandr Wang from Meta has maybe been taking some shots, but none of the</strong> <strong><em>Real Housewives</em></strong> <strong>stuff we usually end up talking about when you&#8217;re on the show.</strong></p>

<p class="wp-block-paragraph">It&#8217;s been a bit of a pause in the soap opera antics for now, which I&#8217;m really grateful for.&nbsp;</p>

<p class="wp-block-paragraph"><strong>Yeah, just some good old-fashioned product competition in the marketplace. Let&#8217;s see who wins and loses, and maybe everything will kill us all in the end. But, for now, cute mascots.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s a lot going on. Let&#8217;s start at the start. Hayden, you were at OpenAI DevDay in San Francisco. The company announced Dots, which is their new agent platform with a cute mascot. That happened just a few weeks after Meta Connect, at which the company was all in on Muse, their agent platform with an adorable mascot.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Tell us about the state of the industry right now. Everyone&#8217;s very excited about agents. What&#8217;s going on?</strong></p>

<p class="wp-block-paragraph">It&#8217;s funny to me because I&#8217;ve been covering agents for so long. I remember that in 2022, it was the year of ideation — that’s what tech leaders called it, referring to agents. They were just ideating. They were thinking about what it could look like. There were a lot of references to Jarvis from the Marvel Universe.&nbsp;</p>

<p class="wp-block-paragraph">They called 2023 the year of deployment: “Let&#8217;s try things, let&#8217;s deploy and learn more about what&#8217;s failing.” Which meant pretty much all of them were failing at the time. Then we had 2024 and 2025. They didn&#8217;t have any names for those years, but agents were still pretty bad, as we saw.</p>

<p class="wp-block-paragraph">2026 seems, to me, like the year of the beginnings of actually useful AI agents for the consumer, like always-on autonomous agents. Obviously, OpenAI was the start of all of this. But what&#8217;s interesting to me is that one man, Peter Steinberger, was able to create an actually useful AI agent for the consumer with OpenClaw — an always-on tool, despite its privacy flaws. It had a lot of privacy and security issues.</p>

<p class="wp-block-paragraph">But it was an agent that was useful enough that people still wanted to use it anyway and try to find ways around these privacy issues that it was having. That inspired these companies to say, &#8220;If one man can do this over the course of one weekend, we&#8217;ve really been slacking. We have to get it together.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">OpenAI hired that guy, and now we have Dots. Meta, of course, was working on its own version of this and put it out sooner with Muse. They&#8217;re basically both always-on, autonomous AI agents that these companies are peddling as a way to be your personal assistant in a lot of ways.</p>

<p class="wp-block-paragraph">The idea is to use them for booking flights, booking dinner reservations, buying gifts for people, but not only that. Some of them, Dots in particular, are kind of going further to be your work personal assistant and we&#8217;ll get into that in a minute.&nbsp;</p>

<p class="wp-block-paragraph">But this is where OpenAI and Meta are warring right now. They&#8217;re trying to present these two AI agents as a little bit different from each other, even though they&#8217;re essentially the same.</p>

<p class="wp-block-paragraph"><strong>Just broadly speaking, to define some terms, we&#8217;re gonna keep saying “agent,” and what we mean here is an AI model wrapped in a harness that lets it use a computer.&nbsp;</strong></p>

<p class="wp-block-paragraph">Right. The way that I describe AI agents usually is an AI tool that can complete multi-step complex tasks on your behalf without you hand-holding it the whole time.&nbsp;</p>

<p class="wp-block-paragraph">I was a personal assistant in one of my first jobs in New York, so I would&#8217;ve gotten fired if every time my boss asked me to book a flight for her, I said, &#8220;What time? Also, what&#8217;s your SkyMiles number? Also, what&#8217;s your loyalty number again, for this other thing? Oh, do you want me to try to get you first class?&#8221;</p>

<p class="wp-block-paragraph">They want you to have common sense and just book the flight. This is what they&#8217;re pitching these AI agents as — things that can work on their own mental kind of scratchpad in the background and not ask you every single time there&#8217;s a step. They can complete multi-step processes in the background, doing their own reasoning, and then present you with a completed task.</p>

<p class="wp-block-paragraph"><strong>That&#8217;s the big idea. Just to say it clearly, both Muse and Dots come out of the OpenClaw lineage, which is a technical approach to building an agent, right? There are a lot of different ways you might be able to accomplish “It&#8217;ll remember your SkyMiles number and book you a flight.” But the way everyone&#8217;s going at it now is the idea of a harness around a model. That was the big innovation in OpenClaw, and the computer OpenClaw was using was often your own Mac Mini on your own network using a wide-open browser with your own data, which is where a lot of their security problems came from.</strong></p>

<p class="wp-block-paragraph"><strong>It&#8217;s the same model with Muse, only it&#8217;s a little Linux computer that Meta&#8217;s giving you in the cloud. It&#8217;s the same model with Dots, although the way ChatGPT is set up with Codex is very complicated, and that computer could be in a lot of different places.</strong></p>

<p class="wp-block-paragraph"><strong>But this notion that what you really need is a computer with a browser and some harness is gonna direct a model to do a bunch of stuff for you using that computer, that&#8217;s what we&#8217;ve landed on today, and it just seems to be the default winning model.</strong></p>

<p class="wp-block-paragraph">Right.&nbsp;</p>

<p class="wp-block-paragraph"><strong>Are all of these things just riffs on OpenClaw? Are they the same as OpenClaw?</strong></p>

<p class="wp-block-paragraph">You could say that. They&#8217;re different technically. Meta keeps saying, &#8220;We did build this from scratch, but it was inspired by OpenClaw.&#8221; There are <a href="https://www.theverge.com/report/1000180/muse-openclaw-instinct-lookalike">a lot of similarities there</a>, but they did say that they built it from scratch. Then, of course, OpenAI hired the creator of OpenClaw, so there&#8217;s probably a lot of similarities there as well for Dots.</p>

<p class="wp-block-paragraph"><strong>The reason I wanted to stay there for one second is that I think it&#8217;s important to identify the fundamental technical approach that is happening with these agents, because there&#8217;s a lot of different ways it could have gone, and the whole industry has picked this approach. What you need is a web browser, a harness, and a model that can go use that web browser.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>What&#8217;s really interesting to me is that Meta has done a really good job on top of that fundamental model of making a cute consumer product. Meta is good at consumer products. Obviously, Instagram and Facebook and the rest are undeniably good consumer products. People really like them.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>For all of Meta&#8217;s failings in VR, I always thought the Meta Quest has been a great consumer product. You take it out of the box, it helps you use it, you can have fun with it right away. Whereas Dots seems like it&#8217;s kind of made for software engineers, but you can also plan a wedding in it.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m wondering if that&#8217;s how you see it. That one is an enterprise product with a little consumer gloss on it, and then Meta obviously is just a dead-ahead consumer product.</strong></p>

<p class="wp-block-paragraph">What&#8217;s different here is that OpenAI needs money a lot more than Meta needs money. The products are honestly pretty similar, it seems like. The difference is that OpenAI is marketing it to be an enterprise-friendly product a lot more than Meta is. Muse is just a consumer-facing product.</p>

<p class="wp-block-paragraph">Meta is happy with that. The goal is to make Muse as easy to use as humanly possible. One-tap downloading, just putting it in your face literally everywhere. Even when I went to my Instagram profile the other day, there was a pop-up for using Muse. They&#8217;re trying to make it free, accessible, and super easy to broaden the audience.</p>

<p class="wp-block-paragraph">They want anyone to be able to just use it with one click and get used to it. They&#8217;re trying to flood the market with AI agents and make it normal and have their own ChatGPT moment, if you will, for AI agents. They want Muse to be that. Now, with OpenAI, they&#8217;re still marketing it as a consumer-facing product. When you&#8217;re using ChatGPT, if you have the right subscription, it&#8217;s right there.</p>

<p class="wp-block-paragraph">It says, “Use your Dot to do this, that, and the other.” They really want you to go for it as a consumer, as long as you&#8217;re paying. This is for their $100 to $200 a month subscription tier, unlike Meta. That&#8217;s why there&#8217;s a huge difference here. For OpenAI, it seems like they don&#8217;t have the money to just front-load all of this and say, &#8220;Use it for free. No problem. We&#8217;ll catch up with you later.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">OpenAI wants this to be a money-making product, and that&#8217;s why they&#8217;re marketing it to the enterprise. They talked a lot about privacy to try to set it apart from Meta&#8217;s Muse. They talked a lot about what you could do with this as a knowledge worker, whether you worked in marketing, graphic design, software engineering, product, and tons of different industries. They gave examples of how you could use this as an assistant, as a coworker. Sam Altman even referred to it as like a <a href="http://a">“chief of staff.”</a> He didn&#8217;t want it to be just an assistant. He wanted it to be your chief of staff.&nbsp;</p>

<p class="wp-block-paragraph">Something else that I thought was interesting is that Sam Altman seemed to subtly dig at Meta on stage a few times during DevDay. One of the times he said, &#8220;Look, I don&#8217;t want this to be just something that&#8217;s used to book flights or plan things with friends and look at your calendar. I want this to go beyond that and to really do knowledge worker tasks, things that you in your industry would need a niche assistant to perform.&#8221;</p>

<p class="wp-block-paragraph">That’s why they also introduced specialist Dots that are good at marketing, legal analysis, and things like that. They&#8217;re really going for the enterprise angle here, but I think it&#8217;s also because they need money ahead of their IPO, obviously.&nbsp;</p>

<p class="wp-block-paragraph"><strong>Yeah, the revenue piece — that it&#8217;s only for paid customers at their higher tiers — is really interesting. OpenAI&#8217;s tiers are very confusing, but it&#8217;s $100 and up, and that&#8217;s just going to keep a lot of people from using Dots at first.</strong></p>

<p class="wp-block-paragraph"><strong>The flip side of that is OpenAI does have a lot of customers who are paying them a lot of money, and if they can get those customers to start using Dots, then those customers will be on their agent platforms and maybe you will get some lock-in.</strong></p>

<p class="wp-block-paragraph"><strong>You&#8217;ve given those agents a lot of data. They&#8217;re part of your workflows, and that might solve the problem I think we&#8217;ve seen all the frontier labs have, where a new model comes out and it&#8217;s slightly better than the competitor model, and everyone switches for six months, and the next new model comes out and everyone switches back.</strong></p>

<p class="wp-block-paragraph"><strong>Is there some thought that these agent platforms create lock-in — create actual loyalty on top of just the models being better?</strong></p>

<p class="wp-block-paragraph">Yes. They&#8217;re basically hoping that they can build a moat with their users for these things. If Meta and Google already have super easy integrations with all of each company&#8217;s existing tools and services, they can easily keep you there.&nbsp;</p>

<p class="wp-block-paragraph">For example, I have an Apple iPhone, but I use almost exclusively Google apps. So if Google had an AI agent that I was using every day, it would be a little tough for me to switch. That&#8217;s what they&#8217;re hoping for here.&nbsp;</p>

<p class="wp-block-paragraph">Meta is hoping that they can get you so into the Muse ecosystem that it would be tough for you to switch, and maybe one day you do have to pay. With OpenAI, they&#8217;re trying to get you locked into their ecosystem right away. Even though you have to pay up front, they&#8217;re thinking, &#8220;We have integrations with almost every tool and service. Maybe it&#8217;s not as good as the company that owns that tool and service, but we have the variety and the breadth.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">They&#8217;re going for quantity here. One of their employees told me that. They said, &#8220;Maybe our Gmail integration, for example, isn&#8217;t gonna be as good as Google&#8217;s, but we have a Gmail integration and an Outlook integration and X, Y, and Z.” They&#8217;re going for just the power of choice and the fact that power users will hopefully stay in this moat.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s funny, you mentioned Google. Google</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/941388/gemini-spark-ai-agent-trip-planning"><strong>announced</strong></a> <strong>an agent called Gemini Spark. We should mention that SpaceXAI, the very coherent company that everyone understands, has an</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/978666/spacexai-grok-bot-ai-agent-beta-launch"><strong>agent called Grok Bot,</strong></a> <strong>which it is promoting heavily. People seem to like it. It was built by the Cursor team, which SpaceX acquired.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s a lot of this going around, but it seems like Meta really got there first with a consumer product that people could understand.</strong></p>

<p class="wp-block-paragraph"><strong>Obviously, Grok Bot and Dots are much more enterprise-focused, coding-focused. Why was Meta able to get there first?</strong></p>

<p class="wp-block-paragraph">From all my reporting on Meta, they&#8217;ve been behind in AI for a while, and Mark Zuckerberg basically said, &#8220;We&#8217;ve got to lock in and make a product that people are gonna use on our platforms.&#8221; Alexandr Wang apparently was more looking to create a frontier model that was gonna compete with the other leading frontier models.</p>

<p class="wp-block-paragraph">He says, &#8220;We have to think long-term. We have to think superintelligence.” But Zuckerberg says, &#8220;No, we gotta think cold hard cash, as in getting people to use stuff on our own platform.&#8221; Where they met in the middle was an AI agent that people would use on the Meta platforms, but that still represented a huge step forward, they hoped, for AI systems and what they could do in the everyday world.</p>

<p class="wp-block-paragraph"><strong>This is a fascinating dynamic in that Meta still doesn&#8217;t have a frontier model. I don&#8217;t think anyone at Meta is claiming that the Muse Spark model competes at the frontier of GPT-6, but their product is better, and certainly they have a massive distribution advantage. They don&#8217;t have to pay for advertising on Meta platforms, and OpenAI does, and certainly they have a consumer design advantage. Meta is just better at consumer products.</strong></p>

<p class="wp-block-paragraph"><strong>Does that change how you feel about the dynamics of competition in AI at all? For so long, it&#8217;s just been about the capabilities at the frontier, but now it&#8217;s a little bit about marketing. It&#8217;s a little bit about product design.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>You don&#8217;t have the best model, but you made a consumer agent product and you connected it to giving everybody a computer in the cloud, so now it can actually do things for you, and its frontier capability is actually not the important thing. It&#8217;s its capability.</strong></p>

<p class="wp-block-paragraph">I think the more money and power you have at one of these companies, the more get mentally farther away from what the average consumer wants. Let&#8217;s say the average consumer does want an AI agent, which many of them don&#8217;t, as we know.</p>

<p class="wp-block-paragraph">But let&#8217;s say they do. If they do, they&#8217;re going to want it to be free or cheap, and they are going to want it to be safe to use without creeping them out too much. They&#8217;re willing to deal with a little bit of creepiness in order for it to be free, but not too much. Meta&#8217;s Muse has made headlines about <a href="https://www.theverge.com/ai-artificial-intelligence/1001886/meta-muse-ai-facebook-marketplace-security-concerns">some of its privacy issues</a> that have gotten a little bit above that comfort level for some users.</p>

<p class="wp-block-paragraph">That&#8217;s probably why OpenAI at DevDay made a lot of remarks about privacy and the importance of that, especially if they&#8217;re trying to court enterprise users with their AI agents. Right now these companies, especially Meta, are trying to flood the market and create a mass market appeal for this stuff. Similar to how ChatGPT became the default AI chatbot, Meta wants to be that for AI agents, and they feel very hungry about it. They want to create a ChatGPT moment for this technology by making Muse the default for the general public. </p>

<p class="wp-block-paragraph"><strong>There&#8217;s something really interesting about the idea that a less-than-frontier model wrapped in a better product is actually going to be the success story here versus a bleeding-edge frontier model that is a little bit harder to use.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s some dynamic in there that is the history of all consumer tech products, right? The worst product that&#8217;s easier to use often wins, but we haven&#8217;t seen that yet in AI.</strong></p>

<p class="wp-block-paragraph">Right. That&#8217;s really important to note here because not everyone needs the bleeding-edge frontier model. Software engineers do. They see a huge difference with coding prowess from one model to another, and that&#8217;s why they&#8217;re always switching. But the general public, if they&#8217;re using an AI agent, as long as it&#8217;s useful, they&#8217;re good.&nbsp;</p>

<p class="wp-block-paragraph">However, not many of them are useful yet. We&#8217;re still testing Muse and Dots ourselves. For Muse, I saw a couple anecdotes yesterday that it had a big flop for a day or so. People felt like the capabilities got a lot worse. For Dots, the jury&#8217;s still out. We&#8217;re still testing it.</p>

<p class="wp-block-paragraph">It depends on what industry you&#8217;re in and what you&#8217;re really using this stuff for. That&#8217;s why OpenAI is going for enterprise, because it makes money and they&#8217;re confident that their agent is going to be more and more helpful in these niche industries.</p>

<p class="wp-block-paragraph">That&#8217;s also why they launched specialist Dots, because as we know, the more specialized, niche info you feed into an agent or model, the better it&#8217;s going to perform. They don&#8217;t want to have that imbued into every single general-purpose agent. It&#8217;s just too pricey and too compute heavy, so they say, &#8220;You know what? Let&#8217;s launch these specialists.&#8221;</p>

<p class="wp-block-paragraph"><strong>I feel like you and I talk about consumer versus enterprise adoption of AI every time you&#8217;re on this show, and here it seems very important to note that OpenAI asking people to pay a lot of money and asking people to use it primarily in enterprise context&nbsp; is gonna overcome what I think of as the brittleness problem, just because enterprise and business customers have a lot of economic incentives to figure out how to make something work.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>If I&#8217;m paying OpenAI $100 a month, and I&#8217;m using the marketing Dot to solve some marketing automation, and it doesn&#8217;t work the first time, it is very likely I will try again. Because if I get it right, then maybe I&#8217;ve saved some money or some time in my business that is really good, and I&#8217;ll do it again, and eventually that will lead to more revenue for me, the business owner. What I know about consumers is that the first time it doesn&#8217;t work, they just walk away. They have no incentive to try again to overcome frustration or brokenness.</strong></p>

<p class="wp-block-paragraph"><strong>We&#8217;ve seen this happen with Muse now a few times. I&#8217;ve seen it myself with Muse, where it pops open a browser and tries to do something, and it runs into a brick wall or a CAPTCHA or</strong> <a href="https://www.theverge.com/tech/998078/amazon-blocks-meta-muse-ai-agent-shopping"><strong>Amazon blocking it</strong></a><strong>, and it says, &#8220;I can&#8217;t do it that way. Do you want me to try another way?&#8221; And I say, &#8220;Whatever. I was just screwing around, and I&#8217;m never gonna try it again.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>These are very different markets. OpenAI has vacillated between wanting to be the big consumer company and knowing that the revenue is in enterprise. Do you see any focus in Dots, or do you see that personality shift back and forth in the product itself?</strong></p>

<p class="wp-block-paragraph">So far, I&#8217;m a little bit more impressed with Dots than Muse, just because everyone was impressed with Muse right away, but since then there have been a lot of ups and downs, plus the privacy stuff has been really interesting. Even the fact that it’s <a href="https://www.wired.com/story/muse-creates-detailed-profiles-of-all-your-friends-and-family/">building profiles on your family and closest friends</a>.</p>

<p class="wp-block-paragraph">Meta has never been a super trusted company. None of these companies are very trusted, but Meta has made a lot of missteps with user privacy. Dots seems to be a little bit more helpful to me right now, but I&#8217;m still testing, I&#8217;m not fully sure yet.</p>

<p class="wp-block-paragraph">I need to run through all my typical things that I do to compare. Everyone has their own short list of tasks. Right now, for example, I&#8217;m trying to create an album of my bachelorette photos, and it&#8217;s been unbelievably hard to get any agent to try to do that, so I say, &#8220;I&#8217;ll just do it myself.&#8221;</p>

<p class="wp-block-paragraph">But that&#8217;s a pretty easy thing to do. Once again, how useful are these things for our everyday lives, really? We&#8217;ll see. They&#8217;ve gotten a lot better, I will say, over the past few years. I&#8217;ve been shocked at how slow they&#8217;ve been moving, but they have gotten better. Dots is a little bit more impressive to me right now, but we&#8217;ll see.</p>

<p class="wp-block-paragraph"><strong>I have Muse plugged into my Instagram because I don&#8217;t worry about sharing my metadata with Meta in the way that I worry about maybe everything else, but they already have my Instagram. So I have Muse plugged into my Instagram, and it&#8217;s just doing all kinds of stuff. It surfaces interesting comments that I should reply to on Instagram posts. It tracks follower counts. It suggests things I should make videos about.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>It has horrible ideas. Muse is absolutely convinced I should make a video almost every single day about obscure Australian tech regulation. I don&#8217;t know why it has this idea. I&#8217;m up on it now. I&#8217;m deep in the weeds on Australian tech regulation just because I see it every morning.</strong></p>

<p class="wp-block-paragraph"><strong>But there&#8217;s something about all that that still feels like work to me. I&#8217;ve just assigned it work, and then it tells me what work I should do, and I haven&#8217;t found some great consumer use for it yet. Organizing my photos is a consumer use. It kind of still rhymes with work, but it at least is not actually work.</strong></p>

<p class="wp-block-paragraph"><strong>Have you found a great consumer use for these yet?</strong></p>

<p class="wp-block-paragraph">Not one that works, and that&#8217;s the problem. I&#8217;ll try to have it do something for me for my wedding or for my personal life, and they haven&#8217;t been good yet. That&#8217;s why I&#8217;m still kind of running through and testing these, because so far it&#8217;s always interesting factually when they can do something, but I haven&#8217;t been able to trust them end-to-end with something that I really, really need done.</p>

<p class="wp-block-paragraph">It reminds me of the analogy for AI agents. People always say right now they&#8217;re a bad intern, and what you want them to be is a really good assistant, or in Sam Altman&#8217;s words, a really good chief of staff. They&#8217;re no longer a bad intern, but I think maybe they&#8217;re an okay or “eh” assistant.</p>

<p class="wp-block-paragraph">I don&#8217;t think they&#8217;ve reached the point of being a really, really good assistant yet, but I still need to run through the rest of my tests to see. It seems they&#8217;re not super consistent yet, which is something that you need in a really good assistant.&nbsp;</p>

<p class="wp-block-paragraph"><strong>That ties into trust. You&#8217;ve mentioned trust several times now. I&#8217;m only willing to give Muse access to, again, the Meta platforms that Meta already has access to. I can&#8217;t worry too much about that. I&#8217;ve given it access to my spam Gmail, so it is collecting a lot of ideas about my spam Gmail.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>But Meta really wants my credit cards. It wants to go through all of my credit card receipts. This is one of the suggestions in Muse. One of its suggestions is, &#8220;Let me log into your credit cards and I&#8217;ll cancel streaming services you&#8217;re not using,&#8221; or, &#8220;I&#8217;ll negotiate your Verizon bill for you.&#8221; I am absolutely not ready to give Meta one ounce of data more than it already has.</strong></p>

<p class="wp-block-paragraph"><strong>This feels like a big issue for every agent. There&#8217;s an argument that you should give Meta all that data, one, because they already have it, and two, because they&#8217;re a big company that you could sue if they get something wrong. Whereas if I gave all of my data to OpenClaw, it&#8217;s just my own fault if it gets leaked.</strong></p>

<p class="wp-block-paragraph"><strong>If I gave all my data to one of the hot startups like Instinct and they go out of business, well, that&#8217;s just the end of that. How do you feel about this? Do you feel comfortable giving your data to Meta? Do you think people should do that?</strong></p>

<p class="wp-block-paragraph">No, I don&#8217;t feel comfortable, and I also don&#8217;t think that the general person does either. If I&#8217;ve seen one thing in a lot of the comments on our Meta story that we published in the last couple weeks, it&#8217;s that people don&#8217;t trust Meta at all. I have to say, why would they?</p>

<p class="wp-block-paragraph">But I don&#8217;t think that you should trust OpenAI a lot more either. It&#8217;s everyone&#8217;s own comfort level that they have to abide by. Some people are going to get a lot out of this stuff. Some people may say, &#8220;I don&#8217;t care if they use my data as long as they are negotiating down my bill accurately or canceling streaming services that I wouldn&#8217;t be canceling on my own, so they&#8217;re saving me money. It&#8217;s fine.&#8221;</p>

<p class="wp-block-paragraph">But one, are they actually gonna be able to do that accurately? Some people have said no. And as we know, when you release data like this, you can&#8217;t undo it. I always think about that old example of the insurance company that theoretically buys data on what&#8217;s in your fridge and maybe charges you a higher premium if you&#8217;re buying too much beer and not enough bananas.</p>

<p class="wp-block-paragraph">That&#8217;s just a theoretical example, but that&#8217;s the type of thing that can happen. People should operate with caution, abide by their own comfort levels, but I&#8217;m certainly not comfortable yet giving my personal data to Muse.</p>

<p class="wp-block-paragraph"><strong>I don&#8217;t know that I&#8217;m comfortable giving access to that level. I don&#8217;t even know if I&#8217;m comfortable putting Muse on my Mac. Apple just</strong> <a href="https://arstechnica.com/security/2026/10/apple-changes-full-disk-access-permissions-to-curb-abuse-from-ai-agents/"><strong>recently changed how apps can access the disk</strong></a> <strong>on Macs because Muse was so aggressive about reading data. In particular, Jason Aten is a columnist at Inc. and it</strong> <a href="http://i"><strong>read his notifications off the disk</strong></a> <strong>because he had just given it a permission and he didn&#8217;t realize Muse would take that permission and go do something else with it.</strong></p>

<p class="wp-block-paragraph"><strong>This is a lot of spiraling concerns. You&#8217;re going to have a little robot that can use your computer for you, whether that computer is in the cloud or whether it&#8217;s on your desktop, and you might not know what it&#8217;s doing. That ties directly into the fact that OpenAI often doesn&#8217;t know what its agents are doing, and that has led to catastrophic security problems across this industry.</strong></p>

<p class="wp-block-paragraph"><strong>Can you connect those dots? Is your own little agent doing your travel booking the same kind of threat as OpenAI&#8217;s agents hacking Hugging Face?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think it&#8217;s the same type of threat, but it&#8217;s definitely something that you should keep in mind when you&#8217;re using this stuff. I link that back to the <a href="https://www.theverge.com/ai-artificial-intelligence/1001886/meta-muse-ai-facebook-marketplace-security-concerns">Facebook Marketplace debacle</a> that we saw with Meta&#8217;s Muse. To recap, basically a Muse agent, without someone&#8217;s knowledge, invited a potential buyer of this item that this guy was selling to his house, and said, &#8220;He&#8217;s available now.&#8221;</p>

<p class="wp-block-paragraph">He wasn&#8217;t home, and then the potential buyer said, &#8220;Are you here? I&#8217;m trying to get the item.&#8221; And then Muse responded on his behalf, &#8220;Yeah, I&#8217;m here,&#8221; and then he just never came down because obviously he wasn&#8217;t home. There was a lot of drama going on there. Some people said, &#8220;He did give Muse access to his Facebook Marketplace, so he should have known this could happen.&#8221;</p>

<p class="wp-block-paragraph">A lot of people don&#8217;t read all the fine print when they check “yes” to one of these things. There&#8217;s a lot there. There&#8217;s a lot to unpack in that gray area. But the point is that people should just be a little wary before checking “yes” to every possible thing that these agents want to access, like you said about the credit cards or disk access.&nbsp;</p>

<p class="wp-block-paragraph">It&#8217;s easy to just check “yes” and say, &#8220;Whatever, I&#8217;ll figure it out later,&#8221; but people should be reading the fine print or even use AI to read the fine print. That is one great use of AI. Get it to read the terms and ask it, &#8220;What are the worst possible things that could happen here? Lay it out for me.&#8221;</p>

<p class="wp-block-paragraph">Those are things that people should keep in mind before they move forward. And then as for the so-called rogue AI agents that have been hacking other companies and stuff from these labs, it&#8217;s just important to notice that if they can&#8217;t control some of their most powerful unreleased AI models, how well are they going to be able to control your data or your agent?</p>

<p class="wp-block-paragraph">Sam Altman said during DevDay that you have a ton of control over your Dot. He said that there were a lot of “if this, then that” rules you can create. There are a lot of specific stipulations that you could make in terms of permissions of what your Dot could and couldn&#8217;t do. So that did give people some peace.</p>

<p class="wp-block-paragraph">But as we&#8217;ve seen, these labs and these large tech companies have had a lot of missteps about hacking other companies, and more are coming out every single week, more news items about these cyberattacks. We&#8217;ve seen Meta have one. We&#8217;ve seen OpenAI have a ton. We&#8217;ve seen Anthropic have a ton.&nbsp;</p>

<p class="wp-block-paragraph">This is all just stuff to keep in mind. One cool thing that I saw someone do was to name their AI agent after the CEO that runs that company and then see how much data you feel comfortable giving it. If you want to do that, I think that&#8217;s a great idea, and then it just kind of makes you think twice.</p>

<p class="wp-block-paragraph">If you&#8217;re saying, &#8220;Sam Altman, go through my email and see what needs to be deleted,” maybe you still feel comfortable with that, but maybe it makes you think twice and think, &#8220;You know what? Maybe I&#8217;ll give it access to my spam email only,&#8221; like you said.&nbsp;</p>

<p class="wp-block-paragraph"><strong>This ties into the fact that all these things are really cute. Muse is cute. The</strong> <a href="https://www.theverge.com/column/999999/optimizer-meta-muse-ai-cute"><strong>mascot Jolly is very cute</strong></a><strong>. Alexandr Wang has been waging a relentless campaign on X to make it</strong> <a href="https://www.yahoo.com/entertainment/articles/were-aware-metas-push-sex-165023068.html"><strong>not only cute but sexy</strong></a><strong>, which you can feel any way you want about that. But he keeps tweeting memes of the mascot with a butt.</strong></p>

<p class="wp-block-paragraph"><strong>Dots are obviously very cute. They come in different shapes and sizes. There&#8217;s something here where you&#8217;re not quite anthropomorphizing the agent, but you&#8217;re making it a character and you&#8217;re giving it personality.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>That connects to the idea that</strong> <a href="https://www.theverge.com/ai-artificial-intelligence/1002779/openai-dots-meta-muse-ai-agents-hardware-devices"><strong>you&#8217;ve called AI Tamagotchis</strong></a><strong>, where eventually we&#8217;re going to have a little hardware device with your little cute mascot on it, you&#8217;ll talk to that instead of your phone, and this is the big promise this whole industry has been working toward for forever. They&#8217;re gonna replace your phone and the entire paradigm of the App Store with AI agents that are going and using computers for you.</strong></p>

<p class="wp-block-paragraph"><strong>Do you think that any of these products are a meaningful step towards that?</strong></p>

<p class="wp-block-paragraph">They&#8217;re just one building block along the journey of the goal that they&#8217;re chasing here. I haven&#8217;t heard of anyone that&#8217;s using Muse or Dots so far for everything. It&#8217;s not Jarvis from <em>Iron Man</em>, despite how much these CEOs want both these products to be that. They are a meaningful step, but as for the cuteness, I think one of the most important points here is that they are intentionally disarming.</p>

<p class="wp-block-paragraph">These tools are made to be cute so you don&#8217;t find them threatening, or you find them decidedly non-threatening. They&#8217;re cute. They&#8217;re there to help you. It’s a response to the AI populism backlash. It&#8217;s saying, &#8220;This isn&#8217;t going to hurt you or do anything bad. It&#8217;s just a cute little thing with eyes, or a sexy little thing with eyes,&#8221; whatever.&nbsp;</p>

<p class="wp-block-paragraph"><strong>Just to be clear, I do not think it&#8217;s sexy. I think Alexandr Wang has been relentlessly trying to make it sexy.&nbsp;</strong></p>

<p class="wp-block-paragraph"><em>[Laughs]</em> No, I also do not think they&#8217;re sexy, but I will say Elon Musk has been trying so hard to make all agents and chatbots sexy, so I&#8217;m sure it&#8217;s not far off for someone to think that.</p>

<p class="wp-block-paragraph">But whether the AI agents of the future are cute or sexy, it&#8217;s going to be equally disarming.&nbsp;</p>

<p class="wp-block-paragraph"><strong><em>[Laughs]</em></strong> <strong>That&#8217;s the whole spectrum?</strong></p>

<p class="wp-block-paragraph">The spectrum, the cute-sexy graph. It&#8217;s going to be really disturbing to see when we go more along that graph.&nbsp;</p>

<p class="wp-block-paragraph">The point is they&#8217;re supposed to be disarming and that people should really think twice before giving too much of their data, or just pick and choose what you&#8217;re comfortable sharing. Like how you did with the spam email versus your regular email, or saying “no” to giving it your credit card. These are both new products, so just see how the cookie crumbles before you decide to give everything over. We&#8217;re already seeing a bunch of changes week to week with how people are using Muse or what they&#8217;re upset about, so see how it shakes out.</p>

<p class="wp-block-paragraph"><strong>The last piece I want to talk about is just how any of this makes money. You and I have talked many times about the bubbly nature of the AI economy. Zuckerberg has said his plan is for Muse to take a cut of transactions on the backend. </strong></p>

<p class="wp-block-paragraph"><strong>Zuck has given everybody a little Linux computer in the cloud with 8GB of RAM. Obviously, he&#8217;s given away tons of free tokens. He does not have to pay advertising costs. He can just put Muse across all of his platforms. To the extent that Meta is a well-oiled machine, the amount of Muse promotion that is happening across Meta platforms instantly is kind of incredible to see. They just turned it on.</strong></p>

<p class="wp-block-paragraph"><strong>I saw an</strong> <a href="https://x.com/alexandr_wang/status/2101500560050684401"><strong>ad during NFL games this weekend</strong></a> <strong>from Muse. They are spending money to promote this. They&#8217;re giving it away for free. They&#8217;re giving the tokens away for free. And then somewhere at the end of this, they&#8217;re gonna say to merchants, &#8220;This person was shopping for shoes. Muse brought them to your doorstep. You&#8217;re gonna pay for this customer to buy shoes from you.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>I don&#8217;t know any merchants that are excited about this, and it certainly feels like merchants that pay Meta more money would be preferred merchants, and that means that not only do I have an assistant or chief of staff, I have a bribable chief of staff. Like, I have a corrupt butler. Is that what you want?</strong></p>

<p class="wp-block-paragraph">That is a great term for it, a corrupt butler. That is not what I want, and I don&#8217;t think many people do. It&#8217;s just crazy to me that we&#8217;ve gotten so far from what people really want, which is they want to trust a recommendation and they don&#8217;t wanna be scammed, you know?</p>

<p class="wp-block-paragraph">The leaders in AI don&#8217;t think about how certain things have been mirrored in other industries. Think about when people were paying for reviews for their businesses, or paying to delete reviews for their businesses. There was a huge uproar.&nbsp;</p>

<p class="wp-block-paragraph">Or influencers getting paid to recommend products without disclosing that it was an ad. We then saw the rise of micro-influencers, who were more valuable for a while because they were seen as more trustworthy. They didn&#8217;t have that many followers, so the things they recommended must be really good, right? And then we saw the, &#8220;Oh, okay, well, there’s #ad, but also they only said they were going to recommend things they really believe in, so it&#8217;s okay that it&#8217;s an ad.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">There are these mental gymnastics that people have to do to figure out what is really a trustworthy recommendation these days. What is going to convince people that an AI recommendation is trustworthy, if it can be bought?</p>

<p class="wp-block-paragraph">That&#8217;s something these companies are really gonna have to reckon with. The <a href="https://www.theverge.com/news/839882/openai-chatgpt-ads-app-promo-messages-turned-off">ChatGPT ads blowback was huge</a>, and OpenAI had to say, &#8220;It&#8217;s going to be a clearly disclosed ad underneath your query, not influencing your query.&#8221; If you&#8217;re using Muse to shop and it&#8217;s an undisclosed potential Meta customer that you&#8217;re being redirected to, to buy those shoes instead of these other ones, I feel like so many people aren&#8217;t going to use these tools to shop.</p>

<p class="wp-block-paragraph"><strong>I get it on the Meta side. I understand why they would think about monetization that way. They&#8217;re a consumer company. This is a consumer product. They know the second they charge even a dollar for it, the uptake will drop precipitously, so they have to keep it free, and then a bunch of people are going to want to shop and go buy a new iPhone cable. At the end of the day, it&#8217;s all just the same Amazon garbage anyway, so whatever.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Then they can run an auction on the backend to say, &#8220;Who wants to pay us, Meta, the most for the privilege of selling an unbranded USB-C cable to this customer?&#8221; They&#8217;ll run some auction, and that will, in its way, just sort of maximize the money that gets turned around.</strong></p>

<p class="wp-block-paragraph"><strong>That is broadly how advertising works today. That&#8217;s how the Google Search results page worked until recently, because now it&#8217;s full of AI and they&#8217;re probably going to do the same thing. Meta can do that because they already have a giant advertising business that prints money. They can give away a consumer product.</strong></p>

<p class="wp-block-paragraph"><strong>Mark Zuckerberg has shown he’s willing to blow money trying to win a market like he did with Reality Labs for years and years and years, and they can just run it till it works. OpenAI, even at $100 a month, is probably not making money on those customers. In fact, I think we know they&#8217;re not making money on those customers.</strong></p>

<p class="wp-block-paragraph"><strong>They don&#8217;t have any monetization, and when they do try to turn on ads, people get mad at them. How can OpenAI keep up with Zuck?</strong></p>

<p class="wp-block-paragraph">Only via enterprise. That&#8217;s why they are pushing this so hard. We saw a ton of enterprise discussion, demo videos, customer feedback, and tons of other stuff at DevDay, and that&#8217;s why they&#8217;re pushing this so hard — because they can&#8217;t keep up with Zuck on the consumer front. They just can&#8217;t.&nbsp;</p>

<p class="wp-block-paragraph"><strong>This is the part where, when people ask if it&#8217;s a bubble, I just find myself wondering how much of the economy does Zuck have to win in order to give away millions upon millions of free tokens and 8GB of RAM to everyone in the cloud?</strong></p>

<p class="wp-block-paragraph"><strong>Because that is just an expensive thing to give to everyone. How many percentage points of every shoe sale in America do you need to take to fund it? And the answer is it feels like a lot.&nbsp;</strong></p>

<p class="wp-block-paragraph">That&#8217;s huge here and something to remember because we already saw Zuck crash and burn with the metaverse stuff, and he does not want to be embarrassed again. So how long is this going to go on, and how are they going to fund it in a real way on the backend, like what you were saying?</p>

<p class="wp-block-paragraph">It&#8217;s just a little bit tough to imagine. Luckily, Meta has a ton of money, and they can redirect stuff from other departments, which we&#8217;ve already seen them do a lot. It will be interesting to see how this fares on the next couple of quarterly earnings calls — to see how much money is being funneled into this and how much it is making, if any.</p>

<p class="wp-block-paragraph"><strong>And how many people are using it. Because they&#8217;ve announced it at the top of the App Store, but our own David Pierce has written an entire story about</strong> <a href="https://www.theverge.com/tech/876196/top-app-store-apps-developers"><strong>how being number one in the App Store doesn&#8217;t mean much</strong></a><strong>. It&#8217;s sustained success that actually means something.&nbsp;</strong></p>

<p class="wp-block-paragraph">It reminds me of when I was in college and Uber and Lyft, or maybe it was just Uber honestly, were new and VC-backed, so it was around $4 to call an Uber anytime you wanted to go out or down to the bars or anything. They got everyone using it, and then they got everyone hooked, and then they had to up the prices.</p>

<p class="wp-block-paragraph">That happens. That&#8217;s a tale as old as time with VC-backed products. So what I&#8217;m wondering is if AI agents are really going to become like that. Are they going to get enough users and enough like shoe sales on the backend that this is gonna be a really viable business model? Or is it just going to kind of be a potentially big bet that they switch away from later?</p>

<p class="wp-block-paragraph">That&#8217;s what some Meta employees that I spoke with in our Meta piece told me. They said they expect this to be something that they’re putting out, trying to make a big deal of, and then they may evolve away from it later on, or at least partly. We&#8217;ll see how that goes.</p>

<p class="wp-block-paragraph"><strong>If your bet is that the future of computing is talking to a little agent, it certainly seems like Meta has gotten farther along that path than anyone else. But we&#8217;ll see. OpenAI has hardware designed by Jony Ive that will theoretically come out. It is certain that Google and Apple and all the rest will respond at some point.</strong></p>

<p class="wp-block-paragraph"><strong>Hayden, this was great. Thank you so much for being on</strong> <strong><em>Decoder</em></strong> <strong>once again.</strong></p>

<p class="wp-block-paragraph">Thanks so much.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Sen. Adam Schiff on AI regulation, free speech, and impeaching Trump one more time]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1004286/senator-adam-schiff-ai-trump-regulation-corruption" />
			<id>https://www.theverge.com/?p=1004286</id>
			<updated>2026-10-08T10:04:29-04:00</updated>
			<published>2026-10-05T10:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Policy" /><category scheme="https://www.theverge.com" term="Politics" /><category scheme="https://www.theverge.com" term="Regulation" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Today, I’m talking with Sen. Adam Schiff, a Democrat from California. Schiff sits on a number of committees with oversight into tech and AI: intellectual property, antitrust, privacy and technology — it’s all there. I really wanted to ask him about how we might regulate anything related to the tech industry at this moment in [&#8230;]]]></summary>
			
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Sen. Adam Schiff, a Democrat from California. Schiff sits on a number of committees with oversight into tech and AI: intellectual property, antitrust, privacy and technology — it’s all there. I really wanted to ask him about how we might regulate anything related to the tech industry at this moment in time.</p>

<div class="wp-block-vox-media-highlight vox-media-highlight"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24792604/The_Verge_Decoder_Tileart.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
</div>

<p class="wp-block-paragraph">But as you’ll hear, he started our conversation by talking about the self-dealing and corruption present all through our politics. That of course fell against the backdrop of President Donald Trump gathering AI CEOs to the White House to sign <a href="https://www.theverge.com/ai-artificial-intelligence/1002584/trump-us-ai-safety-deal-self-regulation-tech-execs">a nonbinding pact</a> in which they agree to, you know, do a good job keeping AI safe.</p>

<p class="wp-block-paragraph">I asked Schiff if he thinks that’s enough, how he thinks a more formal regulatory framework would look, and what might happen next if Democrats retake Congress in the midterms — all the way to whether he’d support impeaching the president (<a href="https://www.nytimes.com/interactive/2019/12/18/us/politics/trump-impeachment-vote.html">again</a>) over all that corruption. We also spent some time comparing and contrasting how you might regulate AI with where we’ve landed regulating social media.</p>

<p class="wp-block-paragraph">One nerdy note: You’re going to hear me ask the senator about something called Chevron deference and a Supreme Court case called <em>Loper Bright.</em> Basically, the Supreme Court <a href="https://www.theverge.com/2024/6/28/24180118/supreme-court-chevron-deference-decision-opinion">overturned a Reagan-era precedent</a> saying courts would defer to experts in agencies when the law was vague.</p>

<p class="wp-block-paragraph">Now, the courts get to decide, which could cause any new regulation to get immediately tied up in litigation. That seems awfully relevant to the idea of creating a new agency to regulate AI, which Schiff supports doing.</p>

<p class="wp-block-paragraph">Okay: California Sen. Adam Schiff. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP1379453989" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="wp-block-paragraph"><strong>Sen. Adam Schiff, you’re a United States senator from California. Welcome to <em>Decoder</em>.</strong></p>

<p class="wp-block-paragraph">Thank you. Great to be with you.</p>

<p class="wp-block-paragraph"><strong>I have been asking every politician who comes on the show this very basic question here in 2026. Senator, what the hell is going on in our country?</strong></p>

<p class="wp-block-paragraph">It&#8217;s a very good question. I think we have seen things take place in the last couple of years in particular that we&#8217;ve never seen before. There&#8217;s sadly rampant corruption within the administration. Every day, every week, it&#8217;s a new thing. At the moment, I think what is most jarring is seeing campaign ads aired of the president that are paid for by taxpayer dollars. But every week it&#8217;s something else. It&#8217;s excluding press from the White House or Air Force One, or it&#8217;s some new moneymaking scheme or some new vanity project. If you look at, for example, the triumphal arch, they&#8217;re now claiming it&#8217;s a national security issue because they want to store ammunition in it. And why do they want to do that? Because the best legal argument they have is that this is not just cosmetic, that they have some national security purpose.</p>

<p class="wp-block-paragraph">So what are we seeing in the country? We&#8217;re seeing chaos and no focus on the cost of living and improving the quality of people&#8217;s lives at the administration level, or by my Republican colleagues in Congress, but I&#8217;m hoping that changes.</p>

<p class="wp-block-paragraph"><strong>The national security piece is very interesting to me in the context of a bunch of questions I have for you, because the Trump administration loves to justify every single thing it does by saying it&#8217;s national security, and it can&#8217;t be questioned, and this should bring more authority to the executive branch in one way or another. And they&#8217;ve been doing that since the beginning.</strong></p>

<p class="wp-block-paragraph"><strong>But just this week, we had a bunch of tech executives at the White House signing a non-binding promise to evaluate their own AI systems. And there was no national security concern that made any of that binding, even though they are among the most prominent people in the country saying they might kill everyone. Can you square that circle at all?</strong></p>

<p class="wp-block-paragraph">It&#8217;s very hard to square. It was interesting to see all those tech leaders there signing onto this voluntary pledge on the one hand and on the other hand, away from the White House grounds, away from the president, being very public and saying, &#8220;We need regulation. We don&#8217;t want this to be just ‘Trust us, we&#8217;ll do the right thing.’&#8221; So yeah, it was very distant, very jarring. None of these companies want to incur the wrath of this very vengeful president. Apparently, they will say what he wants them to say in his presence. But the reality is, there is a real national security threat here. As these models become more and more advanced, as they advance themselves through this recursive AI, we have less and less of a sense of what they&#8217;re doing, how they&#8217;re deciding what they&#8217;re deciding, and what they&#8217;re trying to access lawfully or unlawfully.</p>

<p class="wp-block-paragraph">That is a national security concern of the highest order. There are other security concerns too. The unbridled implementation of AI at the Pentagon can result in calamities, and we need to investigate what role AI may have played in target selection in the bombing of that Iranian girls&#8217; school, for example. There has been an effort to go after Anthropic, because Anthropic wanted to insist on not using AI for domestic mass surveillance or for fully autonomous weapons systems. That&#8217;s a national security issue. And their response in the administration was to try to kill Anthropic, and they&#8217;re still at it. So lots of national security concerns, none of them aired.</p>

<p class="wp-block-paragraph">When the president was asked about this by a reporter, he said, &#8220;Well, the world doesn&#8217;t have to worry about this because these companies love America.&#8221; I&#8217;m not really sure that&#8217;s much of an answer. And when he was asked, &#8220;Well, isn&#8217;t there anything else that&#8217;s necessary?&#8221; He pointed to his brain and wanted people to take comfort that he has, I guess, a very big brain, he tells us. He&#8217;s a stable genius, and therefore we don&#8217;t need to worry.</p>

<p class="wp-block-paragraph"><strong>He&#8217;s passed all the tests. So I&#8217;ve been told.</strong></p>

<p class="wp-block-paragraph"><strong>You are obviously on a number of committees, but most importantly, I think for this conversation, you&#8217;re on a number of subcommittees as part of the Senate Judiciary Committee that are in the strike zone for AI. So you&#8217;re the ranking member on the subcommittee on Intellectual Property, you&#8217;re on the Privacy, Technology and the Law subcommittee, and then, of course, the Antitrust Competition Policy and Consumer Rights Committee. I just look at that list, and that is the dead center of the AI regulatory debate.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>What&#8217;s the conversation in Congress like as you debate these issues? In particular, I look at the IP issues, and they seem existential to these companies. If we start charging them for training data, they might not exist anymore.</strong></p>

<p class="wp-block-paragraph">I think that&#8217;s right. When you look at, for example, all of the IP that&#8217;s been vacuumed up by these models to train these models, that&#8217;s a lot of the value of some of these entertainment companies. And so they live or die on the strength of their IP. But what makes this challenging is that not all of the players in the industry are the same. You&#8217;ve got big streamers involved; you&#8217;ve got big technology companies involved. You&#8217;ve got companies whose AI or their technology portfolio is much more important to them than the IP value of their film library. I don&#8217;t think the film library at Amazon is Amazon&#8217;s most important business. If it was, they probably wouldn&#8217;t have made the movie Melania. But my favorite review of that, by the way, was the Variety reviewer who said, &#8220;If you watch that movie on a plane, you would still walk out.&#8221;</p>

<p class="wp-block-paragraph">But the IP issues are really important. Senator Curtis and I are working together on them to begin by saying, we want to know what copyrighted material, what protected material, was used to train these models. And then we can have a discussion about what&#8217;s fair use and what isn&#8217;t, but we need these companies to retain that information. But lots of other IP issues, some beneficial. We had a hearing on the patent office, and the patent office&#8217;s use of AI to more quickly get through the backlog of patent applications. So there are going to be good applications too in the IP area, but also a lot of worry about what it means for people&#8217;s creative talents.</p>

<p class="wp-block-paragraph"><strong>I wanted to start with IP, not just because I&#8217;m a failed former copyright lawyer myself, and emphasis on the failed. I was no good at it. But it just seems like what this industry needs right now is a pretty holistic approach to regulation. So are the inputs of the models being collected in a legal way that benefits the ecosystem that created them? Are the studios going to get paid for a bunch of training data? Are website operators going to get paid for training Google&#8217;s models that they scrape with search? And then you&#8217;re on to, do they need an antitrust exemption so they can coordinate on safety and they don&#8217;t kill us all? And there&#8217;s a whole list of things in between those two ideas that also need some regulatory frameworks, that might just need some basic transparency laws.</strong></p>

<p class="wp-block-paragraph"><strong>What do you think about that? Is our government prepared to start at the beginning, and end at the end, and do all the steps in the middle?</strong></p>

<p class="wp-block-paragraph">Well, how I think about it is you&#8217;ve got all the input issues, and it really seems like the thought at these companies was, &#8220;We&#8217;re in a race. We&#8217;re just going to vacuum it all up. And yes, this probably violates a lot of the IP laws, but if we don&#8217;t do it, the other companies are going to do it. We&#8217;ll worry about the legality later.&#8221; So that&#8217;s what they&#8217;ve done. And of course they&#8217;re being sued by different parties, and some are settling these cases, and some are fighting these cases. But they began the process by just deciding they were going to ignore IP law, and they were just going to take [IP] and worry about the problems later.</p>

<p class="wp-block-paragraph">And then, in terms of the outputs, it has taken us to where we are today for these companies, I think, to consider the safety of the outputs. Do we need to start slowing down the pace of our development of these models because we don&#8217;t trust the outputs? We don&#8217;t know where they&#8217;ll lead. We can&#8217;t even control these models ourselves, let alone provide these models to the public, to good actors, to bad actors, and expect that we&#8217;re not going to have some terrible result. In terms of how I think about this holistically as a legislator, this is crying out for legislation. I am, I&#8217;ll be honest, very circumspect about Congress and legislating the tech sector because we did such a — I don&#8217;t know what language I&#8217;m allowed to use here — but such a shitty job when it comes to any kind of regulation of the harms, the societal harms coming out of social media.</p>

<p class="wp-block-paragraph">We&#8217;re going to have to do a much better job and much more quickly when it comes to AI, because the threats are even more significant and we&#8217;re already at the point of strong potential harms. It can&#8217;t wait. We certainly can&#8217;t take the kind of years we&#8217;ve taken to try to even wrap ourselves around social media.</p>

<p class="wp-block-paragraph"><strong>Can I ask about that comparison? I hear it a lot. I hear it from politicians. I hear it from the industry itself. I hear it from parents, of course. It seems to me that the problem with social media regulation was never that we&#8217;re too slow, or that no one can come up with an idea; it was always the very existence of the First Amendment. The thing you needed to do with social media was regulate the flow of disinformation, or keep teens from bullying one another, or from posting pro-anorexia content.</strong></p>

<p class="wp-block-paragraph"><strong>All of that came down to being speech regulation. The companies knew this; the tech companies absolutely knew this. And I remember they would put up billboards in DC. Meta would put up billboards saying, &#8220;We welcome regulation.&#8221; Then I would listen to the ideas for regulation, and they would crash headfirst into the First Amendment, and then nothing would happen.</strong></p>

<p class="wp-block-paragraph"><strong>And it seemed like that paralyzed us from doing things like privacy regulation, because it was tied up next to the very idea of social media. It doesn&#8217;t feel that way with AI. Do you and your peers in Congress draw the distinction that it isn&#8217;t the First Amendment preventing you from doing a lot of the things that you might do for social media, in the AI case?</strong></p>

<p class="wp-block-paragraph">Honestly, I don&#8217;t think it was the First Amendment that was the issue in regulating social media. I think the First Amendment was certainly used by companies that didn&#8217;t want regulation to try to argue everything was a First Amendment issue, when so much wasn&#8217;t a First Amendment issue. The threshold question in terms of regulation of the social media companies is: is the broad immunity they have under Section 230 still working? The industry asked for that one-size-doesn&#8217;t-fit-all immunity because it said, &#8220;We&#8217;re a nascent industry, don&#8217;t regulate us, don&#8217;t inhibit us. If you try to regulate us, then we will feel, or if we&#8217;re not immune, that it’s necessary to take down content because we might get sued over it. We want to be good actors. We want to take down offensive conduct, but we don&#8217;t want to get sued for that either. So give us carte blanche.&#8221;</p>

<p class="wp-block-paragraph">And they got it. They got carte blanche, and they have not been good citizens, corporate citizens, and they&#8217;ve allowed a lot of harm to take place, and they&#8217;ve trained their algorithms for addiction. So much of the content has been harmful to young people, and so much of the content has violated their own policies, but they have been immune from any consequences because of the breadth of what Congress gave them. Now they found it, I think, strategically, a good strategy is to frame these things as the First Amendment, and to attack the other side and say, &#8220;Oh, there&#8217;s a bias that is against conservatives,&#8221; or whatever. It was all in the service of keeping that unregulated.</p>

<p class="wp-block-paragraph">So I really don&#8217;t think the First Amendment has been the issue, but I think it has been utilized as a bludgeon to try to stop any kind of meaningful regulation. I similarly worry that all of the money around AI may result in the same paralysis if members of Congress aren&#8217;t willing to do the right thing, and aren&#8217;t willing to put in place safeguards regardless of how much different industry players might spend.</p>

<p class="wp-block-paragraph"><strong>We&#8217;ve had Sen. [Ron] Wyden </strong><a href="https://www.theverge.com/decoder-podcast-with-nilay-patel/609323/senator-ron-wyden-elon-musk-doge-trump-interview"><strong>on the show</strong></a><strong> many times to talk about Section 230. I won&#8217;t go too far down that rabbit hole. The dynamic there was that Section 230 provided the immunity that you&#8217;re describing, but it was immunity for speech that would otherwise be illegal. And so it was speech that was defamatory. There&#8217;s a whole category of speech that isn&#8217;t illegal. Are you saying that taking the 230 immunity away from the social platforms would somehow make them moderate lawful but awful speech? And I bring this up because I&#8217;m very curious about how you would apply it in the AI case as well.</strong></p>

<p class="wp-block-paragraph">Yeah, no, I think that is the case. That part of their argument was, &#8221; We want to take down really nasty, offensive, racist content, but we will be afraid to do so if you don&#8217;t give us immunity. So give us immunity, and we&#8217;ll take all that bad stuff down.&#8221; They got immunity. And I don&#8217;t know if you&#8217;ve been on X lately; it&#8217;s a cesspool. So giving them broad immunity did not allow them to enforce their community policies. And the First Amendment prohibits the government from dictating speech or prohibiting you from saying things. It doesn&#8217;t prohibit a private party from saying, &#8220;We don&#8217;t want racist content on our platform.&#8221; So there&#8217;s no problem with a private platform saying, &#8220;That violates our policy. We&#8217;re not going to post it.&#8221; And they&#8217;re not utilizing that immunity in a good way. So why should they continue to have it?</p>

<p class="wp-block-paragraph">Now, we may want to create a safe harbor for companies that are meeting best practices and standards. So we may want to narrow 230 instead of getting rid of it. What is the analogy in terms of AI? I&#8217;m not sure what the analogy is.</p>

<p class="wp-block-paragraph"><strong>Let me draw you the connection that I&#8217;ve been thinking about a lot. In the case of social media and Section 230, the immunity was that the platforms would not be responsible for the speech of the users. So I would post something horrible about you, and you couldn&#8217;t sue Mark Zuckerberg. This is the thing that has broadly enabled the social media platforms at scale.</strong></p>

<p class="wp-block-paragraph"><strong>I opened Instagram today, and it is all but making the content for me. And in fact, a lot of content on Instagram is being generated by Meta. It is obviously their speech. And somewhere between having your Muse go and make Instagram for you, and Meta synthesizing all of the product recommendations and generating content all by itself, is a liability for Meta. It is outside of the Section 230 shield. That is their speech.</strong></p>

<p class="wp-block-paragraph"><strong>And you can draw a lot of distinctions there. If I fully automate my Instagram account with my Meta agent, is that my speech, Meta speech, or the AI model’s speech? Who knows? But it might not be under 230. So you would be outside of the immunity shield. And I&#8217;m just curious if you think that will meaningfully alter how they moderate.</strong></p>

<p class="wp-block-paragraph">I agree with your analysis, but I think it&#8217;s a difficult enough legal analysis that they feel they&#8217;ve got the money to stop, or slow down, effective litigation. Meta, or any of these other companies, decides how they want to amplify certain content. So let&#8217;s say it&#8217;s content that I generated. Is it still solely my speech if Meta spends a fortune to amplify it to so many users who wouldn&#8217;t have heard it, but for Meta making that decision, or is it now both of our speech? I&#8217;m not sure exactly where that line is. If it&#8217;s obviously purely Meta content, then it&#8217;s pretty simple, but there are going to be a lot of cases in between.</p>

<p class="wp-block-paragraph">But I think the broader question is: is 230 in its current form still meeting its purpose? I don&#8217;t think it is, but I know there&#8217;s no consensus over what that ought to look like. And that is part of what has hampered us from doing anything. But even the smallish stuff, the small-bore stuff like don&#8217;t allow your platforms to encourage people to commit suicide has been hard for us to do in the social media context. Really, litigation has been more effective than legislation because we haven&#8217;t been able to legislate. If you look now to AI, we made some progress legislatively, at least in terms of the process in trying to prevent AI chatbots from telling kids how to commit suicide or keep it from their parents. But even those little things are still not at the finish line. So what does that say about our capacity to do the big things?</p>

<p class="wp-block-paragraph">Historically, when stuff is tough like this, we wait for calamity. And in the case of AI, because that calamity could be just massive, we can&#8217;t afford to do that.</p>

<p class="wp-block-paragraph"><strong>It does seem to me like we&#8217;re about to run a fairly large-scale A/B test on the value of the 230 immunity. Whatever ChatGPT is saying to people is very clearly OpenAI speech. And then somewhere next to that is the kind of clarification law that AI companies are talking about in terms of agents and things like the Hugging Face attack, where they don&#8217;t know if a user directing an agent to do something bad is their fault. Whether that liability should pass through them if I&#8217;m the person who told my agent to go do some horrible hacking attack.</strong></p>

<p class="wp-block-paragraph"><strong>I talked to the tech industry, and the thing they want from legislation is actual clarity in the law. And instead, what we&#8217;ve gotten is this non-binding agreement with the Trump administration that simply says things like, &#8220;The companies will empower an internal team to ensure all of the controls, monitoring, and detection are operating as intended,&#8221; which feels like nothing. To me, that is literally meaningless. Does that strike you as toothless and as meaningless as it does to me?</strong></p>

<p class="wp-block-paragraph">Yeah, it certainly does. I think it really is meaningless. I&#8217;ve been thinking about the question you just raised. It&#8217;s interesting that you brought that up, and that is: where does the legal liability rest today? So if you have these bots hacking into Australian websites, or you have them hacking into Hugging Face, clearly that is the responsibility of these models because that&#8217;s not being done at the behest of one of their customers.</p>

<p class="wp-block-paragraph">But let&#8217;s say you build a tool for the purpose of hacking, or that can be used for hacking, and one of your clients, one of your users, uses that tool that way. How much of that is your responsibility? Is it analogous to somebody who sells a gun and then the gun seller says, &#8220;Well, it&#8217;s not my responsibility for how they go out and use it&#8221;? Or is it someone who sells a weapon that is flawed and causes injury because of a flaw in the manufacture of the weapon? Or is it selling a weapon to a kid who&#8217;s not eligible to buy it, or to a convict, or not using due diligence? What is AI responsibility? What is the company&#8217;s responsibility in the sophistication of the products if they&#8217;re building things that the plain use can be to commit ransomware attacks?</p>

<p class="wp-block-paragraph"><strong>I think that the gun metaphor is a good one. It&#8217;s easy to grab onto for a variety of reasons, but I tend to think that it kind of obscures the reality of the capabilities of the model. So OpenAI&#8217;s latest model, Mythos, can be used for offensive cyberattacks, and it can be used on defense too. And the cybersecurity firms that we cover, they want it. Their argument is, &#8220;We actually need to take humans out of the loop so that our cyber defenses can be as responsive and fast to incoming AI-powered cyberattacks. And if we insistently put humans in the loop, then we will be slow, and the attackers won&#8217;t have the same morals or ethical qualms we do, and we&#8217;ll lose.&#8221; And this is all just a dance around, well, the model in this case can be used on offense and on defense, and it should be equally capable on both sides.</strong></p>

<p class="wp-block-paragraph"><strong>I don&#8217;t see a regulatory framework that provides clarity for any of the frontier labs to be able to sell that thing and not feel like, well, if the equally capable defensive model gets used in the wrong way, that they won&#8217;t be liable. And I think that&#8217;s frozen some of this development in its tracks. I&#8217;m wondering, again, just from a legislative perspective, these are thorny questions. If you try to write a bill to provide some of this clarity, it will necessarily have to be vague on the margins because the technology is moving so fast. What is that debate like for you?</strong></p>

<p class="wp-block-paragraph">Well, I think what it means is that this debate is going to keep evolving as AI evolves and at a speed that is really much faster than Congress has proven capable of legislating. I like to say that in the technology world, Moore&#8217;s law is increasing productivity, doubling it every 18 months, and with AI, maybe that&#8217;s quadrupling it every five months. The legislative calendar works more on a Murphy&#8217;s law timetable.</p>

<p class="wp-block-paragraph">And I think that disparity is even more pronounced in the area of AI. What I think that translates into is that we&#8217;re going to need a regulatory body that has real discretion and real expertise that can move a lot quicker than Congress can. Whether that looks like an FDA for artificial intelligence or some other agency, I think that&#8217;s ultimately going to be necessary. That agency&#8217;s going to have to have real power and teeth and real expertise. It&#8217;s going to be a challenge, as with these independent monitors: if there&#8217;s a government component there, how do we afford that? Because there&#8217;s so much talent, and that talent can draw much bigger salaries in the private sector. But I do think we&#8217;re going to need a regulatory body in addition to whatever the overarching statutory framework is.</p>

<p class="wp-block-paragraph"><strong>Well, in addition to being a bad lawyer, I was a very bad law student, mostly majored in Miller Lite, but it&#8217;s fine because every foundational precedent that I was taught in law school in 2003 has been overturned by this Supreme Court. And the most important one in this context is Chevron deference. In </strong><a href="https://www.theverge.com/24205957/supreme-court-chevron-loper-bright-net-neutrality-federal-regulation-congress-decoder-interview"><strong><em>Loper Bright</em></strong></a><strong>, the Court said we no longer have to defer to the experts at agencies; go ahead, corporate interests, tie every regulation up in litigation, and then we&#8217;ll decide. The Roberts Court will decide if these are appropriate regulations.</strong></p>

<p class="wp-block-paragraph"><strong>This strikes me as a huge problem for the idea that we will set up a regulatory body to oversee AI. Because what you&#8217;d want is a bunch of experts in that agency making decisions on the margin, saying, &#8220;Okay, here&#8217;s a vague enabling statute that Congress passed that said, &#8216;Pass all appropriate regulations to keep us safe.'&#8221; And then you would write a bunch of regulations inside the agency, and until last year — no, I&#8217;m sorry, until 2024 — that&#8217;s how it would work. That&#8217;s gone. If you enable an agency in that way, OpenAI can show up and say, &#8220;That&#8217;s inappropriate. We actually don&#8217;t think that&#8217;s right.&#8221; And they would tie it up in litigation forever. How do you get over that if you want to set up a regulatory body?</strong></p>

<p class="wp-block-paragraph">It&#8217;s very difficult for the reason you mentioned. The Supreme Court is a lot of things today. It is now a partisan institution. It is, in my view, a right-wing social institution, but there&#8217;s one common denominator that runs through its decisions. That common denominator is not always pro-Trump. The common denominator is money. That court makes the decision where the money is.&nbsp;</p>

<p class="wp-block-paragraph">So when it involves, for example, tariff decisions, it will rule against the president because tariffs impact the money. It will allow the president to remove independent heads of agencies, except maybe the Federal Reserve, because that&#8217;s where the money is. And so you&#8217;re right, they are corporatists first and foremost, and they&#8217;re more than content to take power away from Congress to regulate and away from regulatory bodies. It does mean that we are going to have to draft legislation in this area empowering the agency and making it as specific as we can, make these agencies as powerful as we can, delegate as well as we can, knowing that the Supreme Court will strike down anything that is in any way ambiguous if it suits the money interests.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s a lot of political realignment happening around AI and with privacy, which I want to talk about in a little bit. It feels like there&#8217;s more across-the-board antipathy towards AI companies that might be harnessed into writing an actual piece of legislation and getting it passed. We see it on the right and the left. You see it in the backlash to data centers. This is a story that is happening on the right and the left.</strong></p>

<p class="wp-block-paragraph"><strong>We have </strong><a href="https://www.theverge.com/cs/features/993343/stratos-utah-kevin-oleary-data-center-backlash"><strong>a big story about the Utah data center</strong></a><strong>: Kevin O&#8217;Leary got himself in trouble for calling all of his detractors Chinese agents, and he had to issue an apology because the people of Utah are not Chinese agents. That doesn&#8217;t feel like a left-right breakdown to me. How does that feel to you? Is this something that you can actually channel from across the spectrum into a meaningful policy outcome?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think this is a partisan issue. I mean, it&#8217;s certainly true that the president is all in for AI, no restrictions, no impediments, no pacing, no nothing. And there are some of my Republican colleagues here that are going along with that agenda. There are others that are hearing from their constituents who don&#8217;t want a data center in their backyard or are concerned they&#8217;re going to lose their job as a result of AI or their life as a result of AI. And I think we are seeing the kind of coalition where you have populists on the left and populists on the right coming together, initially around concerns over jobs and job losses, and what it will mean for working families. But now, across a broader set of issues, the data centers are the most tangible way for people to express their concerns about their neighborhood, but also about their job, about the technology, and about the uncertainty of it all.</p>

<p class="wp-block-paragraph">And I think the initial concern, and I still think it&#8217;s quite a dominant concern, is over the impact on jobs and the nature of work. But what has reached the fore more recently is concern about runaway AI and the danger it poses. What will the concern look like a month or two months from now? I don&#8217;t know, but I do think it&#8217;s not going away. And as the AI bills — and I&#8217;ve introduced several — indicate, not just mine, but others, most of those bills are bipartisan. Some around the data centers are predominantly democratic bills. My bill on the data centers would force them to pay the costs so that consumers don&#8217;t have to. It&#8217;s not the voluntary, we pledge, we might, we&#8217;d like to; just don&#8217;t provide anything that will force us to observe those costs. Those are mostly democratic bills. Republicans have largely adhered to the president&#8217;s line about not posing any real imposition. They want to pass fig-leaf kind of stuff, but not real stuff. But I think increasingly, as people hear from their constituents, there&#8217;ll be bipartisan interest in legislating this area.</p>

<p class="wp-block-paragraph"><strong>You&#8217;re on the antitrust committee. One of the more surprising bits of the structural realignment that we see around AI is the notion that there should be an antitrust exemption so these companies can coordinate on cybersecurity. Lina Khan, who is Biden&#8217;s FTC chair, said, &#8220;You don&#8217;t need an antitrust exemption.&#8221; We </strong><a href="https://www.theverge.com/podcast/997382/openai-microsoft-anthropic-elon-musk-cartel-ai-competition"><strong>just had Jonathan Kanter</strong></a><strong> on the show, who ran antitrust at the DOJ under Biden. He was like, &#8220;You don&#8217;t need an antitrust exemption for this.&#8221; But at the same time, you have David Sacks agreeing with Lina Khan, which is not a thing that happened during the Biden administration. You have a lot of what you would call the little tech players in the tech right being like, &#8220;No, no, no, this is how you&#8217;re going to make a cartel. And we didn&#8217;t like the Google and Apple cartel that kept a lot of our investments from going. They have to compete in the marketplace.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>That&#8217;s surprising to me. You don&#8217;t often see David Sacks and Lina Khan on the same side of an issue. You&#8217;re on the antitrust committee. Do you think the companies need an antitrust exemption?</strong></p>

<p class="wp-block-paragraph">I think a very narrow antitrust exemption could be very helpful in addressing foreign distillation efforts. We would want companies to be able to talk to each other to address a mass distillation effort targeting multiple companies. I was involved in helping to pass cyber information-sharing legislation about a decade ago to allow companies to talk to each other if they were the victim of a hacking attempt so that they could alert one another and alert the government as to what malware they were using so that we could help the collective defense. And I also don&#8217;t want to discourage companies from pacing with each other if it&#8217;s for legitimate security reasons. Now, I don&#8217;t want any of this used to jack up prices by essentially forming a cabal, an anti-competitive cabal. So you&#8217;ve got to have safeguards in place, but I don&#8217;t want legitimate concerns about liability to stop these companies from doing what they should be doing, and some of that will be with each other.</p>

<p class="wp-block-paragraph"><strong>The other realignment that I&#8217;m utterly fascinated by is around privacy and specifically Flock cameras, Axon cameras; people hate them. They hate them so much they&#8217;re kicking them out of their communities. We&#8217;ve been trying to get the CEO of Flock on the show. I think his company&#8217;s in a little bit of a crisis. We&#8217;ll see if we can reel him in to talk about what&#8217;s actually happening to his business as he faces bipartisan backlash.</strong></p>

<p class="wp-block-paragraph"><strong>I think Americans are redefining what privacy means. Famously, there is no expectation of privacy in public. This has been foundational in our law, and that&#8217;s because not everybody had an always-on camera. They certainly didn&#8217;t have cameras in their glasses. They didn&#8217;t have watches that could record summaries of every meeting they&#8217;ve been in all day. And the state wasn&#8217;t putting up cameras everywhere that could track all of your movements across every state you&#8217;ve ever been in, with a giant database that was enabled by AI so the police could search it easily.</strong></p>

<p class="wp-block-paragraph"><strong>That&#8217;s a big swirl, but to me it feels like there&#8217;s an assertion of a privacy right in public by the American people. They want to have some kind of privacy in public that does not exist in our law. So society is moving ahead of the law. How would you square that? How would you be able to write a piece of legislation that affords people some sense of privacy in public?</strong></p>

<p class="wp-block-paragraph">I think the Flock cameras are really disturbing. And yes, there are legitimate law enforcement uses, and they&#8217;ve helped catch people who&#8217;ve committed terrible crimes, but they&#8217;ve also allowed a department to try to follow [people] through their license plate. Someone wrote an op-ed criticizing a police department&#8217;s use of these Flock cameras. They&#8217;ve also been used to try to track a woman who needed reproductive healthcare. They&#8217;ve been used for a lot of illicit purposes, and I think people are waking up to all the problems that they&#8217;re creating and all the privacy that&#8217;s vanishing.&nbsp;</p>

<p class="wp-block-paragraph">Here, and I say this somewhat hesitantly because there&#8217;s a lot to be worried about with AI, but this is a cardinal concern and risk with AI, and that is: can privacy exist in the era of powerful AI? We talked a bit earlier about open models being available for defense as well as offense, and to be able to respond in real time. As those models get more powerful, and even the closed models get more powerful, you can train those models to invade people&#8217;s privacy. You can train those models to find out what your health records are and what you watch on TV. You can train those models to turn on the microphone on your watch or to turn on the microphone on your Alexa device when it&#8217;s turned off to aggregate all that data about you. That&#8217;s quite terrifying.&nbsp;</p>

<p class="wp-block-paragraph">We may have no privacy left unless we act to ensure that we have privacy. And even then, foreign bad actors will have access to these very sophisticated models. They&#8217;ll develop their own. They&#8217;ll distill ours. They&#8217;ll do all kinds of stuff so that they can have access to it, and they&#8217;ll be private sellers, maybe not American private sellers, but other private sellers. We see this in some of the private sellers of these hacking technologies already, some of these companies that are providing eavesdropping capabilities to the highest bidders.</p>

<p class="wp-block-paragraph">So we&#8217;re going to have to figure out how we not just prohibit conduct, but how we beef up the privacy of American people. How do we use technology to protect our privacy? Otherwise, there&#8217;ll be little of it left.</p>

<p class="wp-block-paragraph"><strong>The reason I&#8217;m asking about what, to me, feels like bipartisan issues to the point that there is a realignment of our politics, is because we&#8217;re a month away from an election. It feels, based on the polling, that Democrats are going to win a healthy number of seats, if not outright take control of both houses of Congress.</strong></p>

<p class="wp-block-paragraph"><strong>What should we expect to see if that happens? Is it a bunch of investigations? Is it actually getting the CEO of Flock to show up to a Senate hearing? They </strong><a href="https://www.cnbc.com/2026/09/23/flock-axon-senate-hearing-josh-hawley.html"><strong>didn&#8217;t do that a couple of weeks ago</strong></a><strong>. Or is it a flurry of litigation that lands on President Trump&#8217;s desk that ultimately goes nowhere?</strong></p>

<p class="wp-block-paragraph">You&#8217;re going to see vigorous oversight in this area to begin with. We&#8217;re going to want the leaders of this industry to come in and talk about all of the times that their own agents have gotten away from them, how it happened, what&#8217;s been done about it, and what they&#8217;re doing about it. We&#8217;re going to want these companies to be transparent with Congress about it. We&#8217;re going to want to legislate in this area, and that may come into conflict with the president, but there&#8217;s a lot of bipartisan work product here. And I think that given where the country is and where it&#8217;s moving, it becomes increasingly difficult for this president to veto bipartisan work product coming out of the Congress.&nbsp;</p>

<p class="wp-block-paragraph">So that is my hope. It&#8217;s certainly a far better prospect than we have today. This is going to be a very central priority for the American people. We want to harness AI for the good it can do. We want to use it to bring down the cost of things. That&#8217;s our central priority. And there are ways that AI might be useful in bringing down certain costs. We want to protect the dignity of work also, but we want to make sure that this doesn&#8217;t pose a threat to the American people.</p>

<p class="wp-block-paragraph"><strong>You&#8217;ve brought up the corrupting role of money in politics several times so far. It occurs to me that the Trump administration, the president, and his family have done what amounts to crypto scams a bunch of times throughout this administration. The second time around, they&#8217;ve enriched themselves in ways that I think a lot of ordinary Americans find to be beyond the pale. You served as impeachment manager for the first Trump impeachment. Do you think it&#8217;s strategically wise for the Democrats to show up and try to impeach him a third time over this?</strong></p>

<p class="wp-block-paragraph">I think we&#8217;ll need to see what the priority is at the time we take control of both houses, knock on wood, and what the priority needs to be. And I would put the very top priority as fulfilling the promises that we&#8217;re making right now, which is to have a central focus: the highest priority on reducing costs for people. So, in the oversight area, what that means, I think, is doing oversight to make sure that the corruption of this administration isn&#8217;t raising costs on the American people. And let me give you one example. I could give you about a hundred. I mentioned the Melania movie. I think the American people deserve to know: Is Amazon getting federal contracts now not because it&#8217;s the best technology for cloud computing, not because it&#8217;s offered the most competitive price, but because it paid off the First Family $40 million?</p>

<p class="wp-block-paragraph">If they are, we&#8217;re paying for that excess. We&#8217;re paying for a product that may not be as good. I&#8217;m not saying that this has happened, but they&#8217;re not going to do any oversight of it. Their decisions on everything from mergers to government contracts to pardons are influenced by the money they&#8217;re getting hand over fist. So we, I think, from an oversight point of view, need to focus on oversight that can help attack corruption that&#8217;s driving up costs. In terms of impeachment, I think we&#8217;ll have to cross that bridge when we get to it.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m glad you brought up the entertainment industry, because I do want to end by talking about Paramount and Warner Brothers, which is a merger happening in your home state of California. It feels like a lot of that merger was the Ellison family in particular making promises about the news coverage of CBS News and CNN in order to get favorable regulatory treatment. We can see that CBS has softened its stance. The market has rejected CBS&#8217;s softened stance towards this administration. So there&#8217;s at least one check on that power, but California Attorney General Rob Bonta <a href="https://www.theverge.com/entertainment/998302/paramount-warner-bros-discovery-merger-settlement">didn&#8217;t push all the way to the finish line</a> to try to prevent that merger from happening. Do you think that was the right decision?</strong></p>

<p class="wp-block-paragraph">I&#8217;m still frankly looking at the deal that was struck, and I have a lot of concerns about it. The one that you mentioned is a very significant concern, and that is that there was some editorial independence board that&#8217;s supposed to oversee CBS and CNN, and yet the Paramount company, or the merged company, the board appointed by the Ellisons, will agree on what that board is and how it&#8217;s constituted. So is this real, or is this going to be fiction?</p>

<p class="wp-block-paragraph">I&#8217;m also concerned, frankly, about what it&#8217;s going to mean for jobs. I live in Burbank. It&#8217;s the entertainment capital of the world, and represents so much of that industry in California. And what we have seen in past mergers is thousands and thousands of layoffs. So that is a particular concern for me. I love this industry. I love movies and television. It&#8217;s something I really deeply care about. I&#8217;m carrying a bill right now, important to the whole industry, and that is a film and television tax credit to try to bring production back to the United States. There&#8217;s never been a more difficult time to work in that industry, but I do have continuing concerns about editorial independence and also the degree to which CBS paid off the president, I think, because they had mergers pending. And ABC paid off the president. Those were personal sums to the president and his pet causes, with the result of completely frivolous litigation by the president that they would have won in court, which I urged them not to settle because of the destructive First Amendment precedent.</p>

<p class="wp-block-paragraph">The idea that the Trump-appointed FCC chairman attacks ABC because they don&#8217;t like the jokes that Jimmy Kimmel tells, or cost Stephen Colbert his job on CBS because they didn&#8217;t like the jokes he&#8217;s telling — that&#8217;s third-world dictator kind of stuff. That&#8217;s not what we are used to seeing in the US, and I never want to see it here.</p>

<p class="wp-block-paragraph"><strong>The jobs piece is really interesting to me. One of the longest-running tropes at The Verge is that a workable antitrust policy for the United States would be simply to forbid companies from buying Time Warner because it has never worked and it may never work again, and that we should just pass one law. Just don&#8217;t do that, and maybe everything will be fine.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Paramount made a bunch of noise. They fulminated about leaving California if they weren&#8217;t allowed to pursue this merger. They pretended to investigate Nashville and Texas and all the other places that you investigate, and then the merger was approved, or the litigation dropped, and I think David Ellison put out a statement like, &#8220;California is our home. We&#8217;re going to invest here,&#8221; and it seemed very fake in the end. Do you think that threat to leave spooked Gavin Newsom, spooked Rob Bonta?</strong></p>

<p class="wp-block-paragraph">I think the threat to leave California concerned a lot of people, and I&#8217;m sure it concerned them. Was it a real threat? I don&#8217;t know. We&#8217;ve seen some of these corporate headquarters moves mean that they move basically their office, but they don&#8217;t necessarily move the studios or the lots, which would be difficult and expensive for them to do for a whole lot of other reasons. But just the idea, frankly, I found offensive: &#8220;If we don&#8217;t get approval of the merger we want, we&#8217;re going to pick up, and we&#8217;re going to leave the state.&#8221; It doesn&#8217;t say much about a commitment to the workforce if you&#8217;re ready to do that at the drop of a hat. So those arguments, really, I found offensive: the claim, &#8220;We&#8217;re going to leave if we don&#8217;t get what we want.&#8221;</p>

<p class="wp-block-paragraph">I will say this: the industry&#8217;s been through a hell of a time. The workforce has been through a hell of a time. Between the pandemic, the strikes, the consolidation among the streaming companies, and now the mergers, there&#8217;s never been a more difficult time to work in the industry. And I&#8217;m not talking about the Tom Cruise-level celebrities. I&#8217;m talking about the carpenters and the set designers, the wardrobe people, the dry cleaners, the caterers, the small restaurants and small businesses that thrive when you&#8217;re making a film or TV show in LA or somewhere else, that just take a huge hit when they&#8217;re not filming. Those are the people that I care about. And we do need stability, so this needs to be resolved. We need stability. We also need to match the incentives other countries are giving if we want this industry to thrive again.</p>

<p class="wp-block-paragraph"><strong>Let me bring this full circle to AI. We talked at the very beginning about the AI companies just ingesting all of this creative output without any payment, and that has enabled the models to be as good as they are. The models are now good at film production. I will admit to having watched several AI microdramas on TikTok, mostly by accident, but they were compelling enough that I stayed. And then, as editor-in-chief, I try to assign our reporters to <a href="https://www.theverge.com/entertainment/1003297/microdramas-neighbours-epis-roseberry-reelshort-dramabox-vertical-video">write about AI microdramas</a>. They did not like this idea, but that&#8217;s what happened. That is killing them at the input stage. We&#8217;re not paying them for the training material. And now we&#8217;re competing in a marketplace with a vastly cheaper product. You don&#8217;t need carpenters and small businesses to make AI slop microdramas on TikTok.</strong></p>

<p class="wp-block-paragraph"><strong>How would you connect these dots? Can you make AI compatible with the film industry in California as it exists today?</strong></p>

<p class="wp-block-paragraph">You know, a lot of these things all come back to the same thing, and that is: what is the commitment to the workforce? Does that matter to these companies? This is a broader problem. I remember having somebody in the industry, a worker in the industry, come to visit me to basically complain about the Affordable Care Act and how it had cost him his job. And I said, &#8220;Come by, I want to talk to you about this.&#8221; And he came in, and he explained that the studio that he worked for, every year, they would ask for pay increases, and they were told they couldn&#8217;t give them more of a pay increase because healthcare costs were rising so fast and it was putting downward pressure on wages. And then the ACA passed, and then he got laid off. And he assumed it was because of the ACA.</p>

<p class="wp-block-paragraph">I remember telling him, &#8220;Honestly, I don&#8217;t think it was the ACA. You&#8217;re right about healthcare costs going up,&#8221; and they were going up very fast. Actually, after the ACA, they were still going up, but they were going up at a slower pace than they were before the ACA. &#8220;Here&#8217;s what I think happened to you.&#8221; And what had happened around the time he was laid off was that there was a hostile takeover bid mounted against one of the studios. It was unsuccessful, but the studio that was the target of that takeover shed all the jobs it would have shed had it been taken over, so it would be a less attractive takeover target in the future. And then other studios shed jobs, even though they were very profitable; they shed jobs because they didn&#8217;t want to be taken over. And so there were these cascading sets of layoffs in the industry, none of which were necessary because they were profitable companies, but it did increase the quarterly report, the value of the quarterly report, the next shareholder report.</p>

<p class="wp-block-paragraph">How do we get out of the bind where the only consideration is the shareholder report and the employees simply don&#8217;t matter? Unless the employees start to matter to these companies, then yeah, they will use every device they can to make films without having to use human beings. And this is, I think, a broader challenge in our economy. We see other countries like Germany doing a better job. They have employee representatives on their board of directors, so they take into consideration the impact on their own workforce. You mentioned the prior FTC chair. She was committed to looking at factors in terms of competitiveness and anti-competitiveness, including the impact on the workforce. And I think we should, but this is a continuing challenge.</p>

<p class="wp-block-paragraph"><strong>You&#8217;re not up for reelection in this cycle. You&#8217;re not up again until 2030, so you have a little bit of distance from the actual campaigning. We&#8217;re seeing a bunch of progressive candidates on the left propose muscular reforms to capitalism, right? Abdul El-Sayed has said, &#8220;I&#8217;m a capitalist, but we need to regulate capitalism so it works for people.&#8221; I live in New York. Mayor [Zohran] Mamdani is here. He wants to regulate Amazon delivery trucks.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s a lot of that energy on the left. Do you think if the Democrats retake Congress, we&#8217;ll see that turned into results on any meaningful time frame, or do you need the presidency too?</strong></p>

<p class="wp-block-paragraph">I think what we should do is try to get legislation passed on a bipartisan basis because that&#8217;s the only way you can get bills through Congress, particularly if you don&#8217;t control the White House. But I also think we need to take up big Democratic priorities that may get through the Senate or may not, depending on whether we flip the Senate and what our margin is; they may get vetoed by the president, but show the country that this is the kind of bold reform that we are prepared to pass if you give us the presidency two years later.&nbsp;</p>

<p class="wp-block-paragraph">And it is simply not going to be acceptable to anyone to say, &#8220;Hey, if you elect us, we&#8217;ll take you back to the status quo before Trump came along.&#8221; No, the reason Trump came along is people were deeply unsatisfied with the status quo. So we need big, bold ideas. I favor Medicare for All. I&#8217;ll let anyone who wants to participate in Medicare participate in Medicare. I don&#8217;t think we should force people into Medicare if they want to stay in a private plan, but I think we ought to broaden Medicare and make it accessible to people. It&#8217;s a very efficient healthcare system. And that is different than simply saying, &#8220;We&#8217;re going to restore premium tax credits under the ACA.&#8221; Yeah, we should do that too, but that alone isn&#8217;t going to cut it.</p>

<p class="wp-block-paragraph">So I hope we&#8217;re going to think big. And I&#8217;ll say this too. The reason why we keep going back and forth between a Trump and a Biden is that people are so unsatisfied with how hard they&#8217;re working and how little they have to show for it. The economy&#8217;s just not working for people. It&#8217;s not that they&#8217;re out of work. The problem is that they are working and they still can&#8217;t make ends meet. And until we address that, our democracy is not going to be on solid ground. It&#8217;s going to always be ripe for any demagogue who comes along promising they alone can fix it. We have to make sure that if you&#8217;re working hard in this country, you can provide for yourself a good living and for your family.</p>

<p class="wp-block-paragraph"><strong>Last question, and it&#8217;s directly related to that. I&#8217;ve said several times now that I think we&#8217;re in a generational political realignment. It&#8217;s been the foundation of many of the questions I&#8217;ve asked. Do you agree that we&#8217;re in the middle of a foundational political realignment?</strong></p>

<p class="wp-block-paragraph">We, I think, have been for some time. I&#8217;m not sure where the alignment goes from here, but I&#8217;ll tell you where I&#8217;d like it to go from here. We, in the Democratic Party, we&#8217;re unquestionably the party of working people and average families. We&#8217;re the party of the underdog, and I think we&#8217;ve lost some of that in the public perception. Our policies are still very much driven that way, but increasingly people just think, &#8220;Both parties are corrupt. Neither party&#8217;s really looking out for me.&#8221; I want the Democratic Party to once again be the party that the public looks to and says, &#8220;Okay, they&#8217;re fighting for me. They&#8217;re not fighting for those who&#8217;ve already done great. They&#8217;re fighting for me.&#8221; That&#8217;s why I was drawn to the Democratic Party.</p>

<p class="wp-block-paragraph">And I also think, and this is related to the whole conversation we&#8217;ve had, wealth is now concentrated so much in so few hands that it is totally warping our political system. Wealth is perpetuating itself and warping our system even further. Some people took it as a celebration: we have <a href="https://www.theverge.com/tech/949259/the-worlds-first-trillionaire-is-a-killer">our first trillionaire</a>. Well, that first trillionaire, Elon Musk, became a trillionaire because of government largesse, because of government contracts that saved his bacon when his companies were in trouble. And there is no ethics, no sentiment about giving back there. No, he was only happy to DOGE the people who made his success possible.</p>

<p class="wp-block-paragraph">But what made that possible too, that is the aggregation of all that wealth, is a tax system that&#8217;s not the least bit progressive anymore and is becoming less and less progressive. And one of the missions I hope for our new Congress, and I hope for the Democratic Party, is: how do we have a truly progressive tax code again? How do we make sure that, yes, the AI companies pay their fair share and they pay for some of the disruption that technology is going to cause? But I think even more important, how do we make sure the tax code is truly progressive and people who are doing well are going to pay well into the system? That, I think, is fundamental.</p>

<p class="wp-block-paragraph"><strong>Senator Schiff, this has been a great conversation. Thank you so much for being on Decoder.</strong></p>

<p class="wp-block-paragraph">Great to be with you. Thanks for having me on.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Inside our months-long investigation into Kevin O’Leary’s Utah data center debacle]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1002851/utah-ai-data-center-stratos-kevin-oleary-investigation-backlash" />
			<id>https://www.theverge.com/?p=1002851</id>
			<updated>2026-10-04T14:30:27-04:00</updated>
			<published>2026-10-01T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Today I’m talking with Josh Dzieza, a longtime features writer here at The Verge, about Kevin O’Leary’s plans to build a massive data center in Utah.&#160; The idea was to build the world&#8217;s biggest data center — a 40,000-acre AI campus with nine gigawatts of power, or more than double the average power usage of [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="Image: The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/10/DCD_1001_Oleary.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap wp-block-paragraph">Today I’m talking with Josh Dzieza, a longtime features writer here at <em>The Verge</em>, about <a href="https://www.theverge.com/cs/features/993343/stratos-utah-kevin-oleary-data-center-backlash/">Kevin O’Leary’s plans to build a massive data center in Utah</a>.&nbsp;</p>

<p class="wp-block-paragraph">The idea was to build the world&#8217;s biggest data center — a 40,000-acre AI campus with nine gigawatts of power, or <a href="https://utahcleanenergy.org/estimated-emissions-and-water-consumption-from-the-proposed-stratos-data-center/">more than double</a> the average power usage of the entire state of Utah. The project is technically called Stratos, but it’s more prominently known as Wonder Valley, a reference to O’Leary’s nickname on <em>Shark Tank</em>.</p>

<p class="wp-block-paragraph">Josh has spent months reporting on this project, and it’s fair to say Wonder Valley has completely upended Utah politics. What Josh found throughout the course of his reporting was that the way this data center came together — how it was planned, how it was announced and approved, and how local residents were kept in the dark — ultimately created a political firestorm so severe it stopped Stratos in its tracks.&nbsp;</p>

<p class="wp-block-paragraph">Now, the details of what happened with Wonder Valley are obviously fascinating. But the story is also a larger look at the AI industry’s infrastructure boom, the bipartisan backlash to that buildout, and how the tech industry is running into the one obstacle it can’t seem to spend its way out of: local democracy.&nbsp;</p>

<p class="wp-block-paragraph">Okay: <em>The Verge</em>’s Josh Dzieza on the Utah data center disaster. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP1651525839" width="100%"></iframe>

<p class="wp-block-paragraph"><em>This interview has been lightly edited for length and clarity.&nbsp;</em></p>

<p class="wp-block-paragraph"><strong>Josh Dzieza, you are a features writer here at </strong><strong><em>The Verge</em></strong><strong>. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks for having me.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m very excited to talk to you. For people who don&#8217;t know, Josh has one of the hardest jobs at </strong><strong><em>The Verge</em></strong><strong>. You just disappear for long periods of time, and then you come back with 15,000-word home runs, which is an enormous amount of pressure, but you keep hitting them.</strong></p>

<p class="wp-block-paragraph">It&#8217;s a great job. [<em>Verge </em>features editor] Kevin Nguyen might say that editing those 15,000 words down to something manageable is the hardest job, but it&#8217;s all fun.</p>

<p class="wp-block-paragraph"><strong>The home run we sent you out to get this time was the story of what happened with Kevin O&#8217;Leary in Utah, where he promised to build what was going to be the biggest data center in the world.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>He was all over the news talking about building the biggest data center in the world, it was called Stratos. He was calling the entire development Wonder Valley. This thing fell apart in a bunch of anger from the local community. There&#8217;s a </strong><a href="https://www.nytimes.com/2026/07/15/us/kevin-oleary-data-center-lawsuit.html"><strong>defamation lawsuit</strong></a><strong> because O&#8217;Leary referred to all of his critics as Chinese spies on Fox News. Fox News had to </strong><a href="https://thehill.com/homenews/media/5945270-fox-news-apologizes-kevin-oleary-china-data-center-claims/"><strong>apologize on the air</strong></a><strong>.</strong></p>

<p class="wp-block-paragraph"><strong>Josh, when you started reporting on this story, it struck me that there would be some similarities to the </strong><a href="https://www.theverge.com/c/21507966/foxconn-empty-factories-wisconsin-jobs-loophole-trump"><strong>huge feature you wrote about the Foxconn project</strong></a><strong> in Mount Pleasant, Wisconsin, my hometown, where President Trump announced that Foxconn was going to build a massive LCD factory in the middle of Wisconsin. There were supposed to be 13,000 jobs, and none of that happened.</strong></p>

<p class="wp-block-paragraph"><strong>Actually, what&#8217;s funny about that is now that land is </strong><a href="https://www.theverge.com/news/781052/microsoft-foxconn-fairwater-worlds-most-powerful-ai-data-center"><strong>being used for a Microsoft data center</strong></a><strong>, which is just maybe the natural end state of all things. Walk me through the parallels and differences at a high level. What did this feel like to report?</strong></p>

<p class="wp-block-paragraph">I did not expect this to feel so similar to Foxconn initially, because unlike the Foxconn project, the data center buildout is real and at least theoretically can make sense in many cases. These things are actually getting built — unlike an LCD fab in the middle of Wisconsin. It turned out that there are more parallels than I thought.&nbsp;</p>

<p class="wp-block-paragraph">I mean, one, just the actors that you have that takes place mostly with local officials and planning meetings and angry residents and things like that. But also there&#8217;s a lot more data centers on paper and speculation, things that are maybe real and maybe not that are more difficult to suss out than I was fully aware of going into data center reporting.</p>

<p class="wp-block-paragraph"><strong>Let&#8217;s start at the very start of this project. There&#8217;s an enormous cast of characters involved. There&#8217;s a whole bunch of government agencies, but this starts with people in Utah looking at 40,000 acres of empty space and realizing that something is about to happen.</strong></p>

<p class="wp-block-paragraph">We can start with the beginning of the project, which is several months before anyone had any idea anything was happening, including most people in Utah — except for a handful of people who own property in this remote valley, some people in the state government at this one agency that became involved and a few real estate developers.&nbsp;</p>

<p class="wp-block-paragraph">So everyone except maybe a dozen or so people found out about this project when Kevin O&#8217;Leary starts talking about it as an enormous data center that he&#8217;s building in Utah called Wonder Valley, or sometimes Stratos, depending on what program word they&#8217;re using at the moment.&nbsp;</p>

<p class="wp-block-paragraph">O’Leary comes out in late April and says, &#8220;We&#8217;re building this giant thing,” and that&#8217;s the first time most people in the county, and in the state, had heard about it.</p>

<p class="wp-block-paragraph"><strong>How did Kevin O’Leary get the approvals to even begin saying he was going to start building this data center so publicly if no one knew about it?</strong></p>

<p class="wp-block-paragraph">It is partly because it ran through an agency called MIDA (Military Installation Development Authority), which is like a state development agency that deals with projects that have some military purpose.&nbsp;</p>

<p class="wp-block-paragraph">I think the military purpose can be fairly tangential. MIDA has a luxury ski resort that gives veterans discounts, but it began as a way to create projects on military property that was unused or could be put to more economic use. And then the taxes go back to the state, some of which can fund military developments. It also has a lot of power to override local land use. It basically becomes the municipal government in whatever project area it establishes.</p>

<p class="wp-block-paragraph">So if it establishes a project area, in theory, it would really speed up all the permitting and zoning and other regulations that can be a huge problem for data center projects. In order to establish a project area, the board has to ratify it and all the landowners in the area have to give their consent and then the local government — in this case, the county — has to give its consent.</p>

<p class="wp-block-paragraph">The issue with this is by the time Kevin O&#8217;Leary is talking about it on Fox in late April, MIDA has approved it. The county has not. The county didn&#8217;t even know about it until about a month before this happened.</p>

<p class="wp-block-paragraph"><strong>So did Kevin O&#8217;Leary just go to this obscure military agency and say, &#8220;I need a bunch of land in Utah,&#8221; and get it?</strong></p>

<p class="wp-block-paragraph">According to the documents we have, he starts asking around at the state level with the governor in early January. Then, the project gets passed from the governor&#8217;s office to MIDA. So in January to February, he&#8217;s basically going around, which is not uncommon with these developers, state to state saying, &#8220;I want to build a data center, what have you got?&#8221; Whoever gives the best pitch, the best, &#8220;You can have this property, we&#8217;re going to make permitting easy. We have these tax breaks,&#8221; wins.</p>

<p class="wp-block-paragraph">This is also quite similar to what we saw with Foxconn, and a lot of big development projects. People do this sort of beauty pageant thing: &#8220;We&#8217;re auditioning this state, we&#8217;re auditioning this state. It&#8217;s a race, it’s a competition. Who&#8217;s going to win?&#8221; So there&#8217;s some of that going on there.</p>

<p class="wp-block-paragraph"><strong>O&#8217;Leary has been very publicly out in front. His big defense of the project is, &#8220;Well, states compete with these tax breaks, and Utah gave me these tax breaks.&#8221; Somewhere in there is a big disconnect from the actual people living in the area and the process.</strong></p>

<p class="wp-block-paragraph"><strong>I mean, that&#8217;s the conflict here, that&#8217;s the real heart of the story is eventually the people in the area find out this is happening, and they don&#8217;t want it to happen and they mount furious pushback. What happened there?</strong></p>

<p class="wp-block-paragraph">It&#8217;s a really interesting case with Stratos, where all of the conversations until very late are happening at the developer and state level. In this case, they literally forgot or failed or for some reason did not tell the county government, whose consent they needed, that this was happening until very late. So that happens in late March, and the county commissioners start hearing rumors that apparently there&#8217;s a data center coming. They have no idea. They ask around and the state says, &#8220;We&#8217;re sorry, we forgot to tell you essentially, but we really need your approval fast.&#8221;</p>

<p class="wp-block-paragraph">The county commissioners then have a meeting in late April, and that&#8217;s when word starts to trickle out, and then MIDA votes to approve it two days later. Over that weekend in late April, you&#8217;ve now had two public meetings, there&#8217;s local coverage, people start talking about it saying, &#8220;Oh, did you hear about the data center?&#8221; Several people found out about it at the coffee shop, at the grocery store. They just hear about it on Facebook. They&#8217;re like, &#8220;Oh, there&#8217;s a big data center coming. For some reason, the Shark Tank guy is involved.&#8221; That starts to trickle out in late April, when you start to see that conversation happen.&nbsp;</p>

<p class="wp-block-paragraph">No one was happy about it. One of the interesting things about data centers right now is social media is so full of data center backlash stories. People hear “data center” and they know broadly what&#8217;s coming, some of which is exaggerated, some which isn&#8217;t, but you don&#8217;t need to get people up to speed. They realize, &#8220;Oh my God, there&#8217;s this huge project. They&#8217;re saying it&#8217;s nine gigawatts and it&#8217;s coming to your metaphorical backyard.&#8221;</p>

<p class="wp-block-paragraph"><strong>This is the big difference in my mind between the Foxconn reporting and the Stratos reporting you did. So many people in Wisconsin were excited about the promise of a giant illusory LCD manufacturing plant that they ignored the very obvious fakery. And in the course of your reporting, you would literally go to empty buildings and point out that they were empty and Foxconn would issue statements saying they were not empty.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>It was all just built on people&#8217;s hope. It was an inkblot test about whether manufacturing could come back to the midwest, and so many people wanted to believe that, that they ignored the obvious realities.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>In this case, if they had let Kevin O&#8217;Leary build a data center, it seems very likely that he would&#8217;ve built a data center, but the people there did not want that. It was the very opposite. All of the hopes and dreams were replaced by people&#8217;s anger and fear about AI, and maybe what they&#8217;d heard on social media. How did that play out in this story? Because that feels like a massive point of departure.</strong></p>

<p class="wp-block-paragraph">Yeah, and Stratos is a really interesting case because it is kind of what you&#8217;ve seen play out across the country, but times 100 because Kevin O&#8217;Leary and his knack for attention is involved. But the response was immediate. I mean, people found out about it through local coverage. They start organizing to attend the next meeting. It&#8217;s already contentious, people are calling out questions. They&#8217;re not happy about it, and Kevin O&#8217;Leary starts talking up how huge it&#8217;s going to be, and it really just escalates.</p>

<p class="wp-block-paragraph">These <a href="https://www.theverge.com/podcast/971855/ai-data-center-backlash-protests-florida-bipartisan">weird political alignments start to form</a> because everyone is against it. An activist told me something interesting that data centers are the most unifying issue in politics right now, not because people agree on data centers, but because there&#8217;s something for everybody to hate. So you have people who are upset for environmental reasons, you have people who are upset about the tax breaks, you have people who are upset about just surveillance fears with AI.</p>

<p class="wp-block-paragraph">You have just everything in there, and people start protesting right away and saying, &#8220;We don&#8217;t want this.” That’s something you hear all the time at these protests. It&#8217;s just really different from any kind of other big development projects, because not only are people acutely aware of the costs, but there&#8217;s no pros.</p>

<p class="wp-block-paragraph">It&#8217;s not like people are excited for jobs. And Utah is not, unlike Wisconsin, a de-industrialized area. It&#8217;s an agricultural community, for the most part. People are not nostalgic for the golden age of manufacturing. They don&#8217;t believe any of the job numbers anyone tosses out with data centers, I think rightly for the most part, and there&#8217;s just not a lot of upside. Your county taxes might go down in 10 years. It&#8217;s just not that exciting compared to where you&#8217;re going to have a giant industrial project on the horizon.</p>

<p class="wp-block-paragraph"><strong>You talked to a lot of the protesters and a lot of the people who succeeded in having this project scaled down pretty dramatically. Who are these characters? What are they like?</strong></p>

<p class="wp-block-paragraph">There&#8217;s a wide range of people. One of the records that I thought was really fascinating that I got came from a kind of state intelligence center, talking to a local sheriff, saying, &#8220;Just heads up, it&#8217;s in theory a very combustible group of people who&#8217;s going to be attending one of these rallies.&#8221; You have conservative groups with names like Utah Patriots Alliance and the Great Salt Lake water preservation activists. The report was saying, &#8220;Normally these groups just counterprotest each other, but here they&#8217;ve all come together for the same purpose, that they hate this data center.&#8221;</p>

<p class="wp-block-paragraph">So you have just a very wide spread of people even within one of the key activist groups. It&#8217;s a lot of people who weren&#8217;t activists before, just local people — some conservative, some progressive, people with environmental concerns, people who are just upset about it.&nbsp;</p>

<p class="wp-block-paragraph">A lot of people are upset about the process, feeling cut out, like this is something that is really offensive to them, that this happened in their county with their county government and that they weren&#8217;t told and they weren&#8217;t brought into it. They had no say. I think that galvanized a lot of people.&nbsp;</p>

<p class="wp-block-paragraph">But the people I spoke to, they&#8217;re mostly residents of the county or sometimes nearby counties, but everyone who was most involved was a resident of the immediate area in Box Elder, not necessarily Hansel Valley, the remote region where the center would be based.<br></p>

<p class="wp-block-paragraph"><strong>When we first started talking about the story and you went off to report it, my assumption was that all of those folks would get steamrolled, because we&#8217;ve seen that play out in so many of these other projects around the country. People mount some opposition. The local city council says, &#8220;It&#8217;s already done. We have an NDA, we can&#8217;t even talk about it.&#8221; They scoot the meetings to the next one. There&#8217;s protests. We&#8217;ve </strong><a href="https://gazette.com/2026/09/17/4-arrested-after-altercation-with-police-at-project-taurus-council-meeting/"><strong>seen people get arrested</strong></a><strong> for trying to talk about data centers at their local city council meetings.</strong></p>

<p class="wp-block-paragraph"><strong>There was just something about this one in particular. Maybe because it was Kevin O&#8217;Leary, this outsized personality, and because it was so big, because the state officials could trumpet the size of the development. It felt to me like it was a foregone conclusion that this project was going to happen over the objections of a handful of people in a very remote part of Utah, and yet they succeeded.</strong></p>

<p class="wp-block-paragraph"><strong>Tell us about how they pushed the project back where it is now and how they succeeded, because that seems like the important part.</strong></p>

<p class="wp-block-paragraph">I think the project has definitely been wounded. I don&#8217;t know whether it will happen or not, but it doesn&#8217;t have the momentum that it had initially. I think there&#8217;s a couple reasons for that. One is just the scale of the backlash was so extreme that it took local officials aback. I don&#8217;t think anyone anticipated that it was going to be so severe.</p>

<p class="wp-block-paragraph">The way it was announced was: &#8220;Kevin O&#8217;Leary&#8217;s 40,000 acres, nine gigawatts, biggest thing in the world.&#8221; Its proximity to Great Salt Lake, which is shrinking and Utah&#8217;s in a drought, so that’s extremely sensitive. The developers say it won&#8217;t diminish the water going to the lake, but no one believes that. The residents don&#8217;t believe that.</p>

<p class="wp-block-paragraph">It was just such a perfect combination of ingredients and it exploded right at the beginning of the Republican primary in the state, so officials are getting asked about it constantly. People are calling their office, they&#8217;re showing up at debates. It became the biggest issue in the state, and people ended up losing their seats over it.</p>

<p class="wp-block-paragraph">There were a lot of casualties from the project. You had two local commissioners who lost their seats. There was J. Stuart Adams, who was the Senate president. Multiple sources referred to him as the king of Utah politics. It really sent shock waves through the state that <a href="https://www.nytimes.com/2026/06/24/us/j-stuart-adams-utah-senate-data-center.html">he lost his seat over this</a>. I mean, there were other issues, but he was the MIDA chair, and so he was very much at the center of this project. It really was, I think, a wake-up call for politicians.</p>

<p class="wp-block-paragraph">The project is not dead. Basically what&#8217;s happened is local activists filed a referendum trying to repeal the county&#8217;s consent, it was rejected by the county, and now it&#8217;s being litigated. Everyone has kind of hit pause on it for now until that case gets resolved. But the data center race is all about speed, and now this is looking like it doesn&#8217;t have that momentum it had earlier. You&#8217;re going to have lawmakers, and even assuming the referendum gets struck down, you have an extremely activated activist organization network that has formed around opposing this data center.&nbsp;</p>

<p class="wp-block-paragraph">It&#8217;s not going to have a very easy road ahead of it. You&#8217;re going to have lawmakers scrutinizing it, you&#8217;re going to have regulators scrutinizing it. There will be other lawsuits. It&#8217;s just so unpopular and it&#8217;s so infamous. Why would you want to be associated with that project when you have so many other projects out there that you could choose from?</p>

<p class="wp-block-paragraph"><strong>There&#8217;s a Kevin O&#8217;Leary component to all of this where he came out, he was very loud, he was the face of it. He almost didn&#8217;t believe that there would be a grassroots backlash to him to build the data center. He did call </strong><a href="https://www.motherjones.com/politics/2026/05/kevin-oleary-mr-wonderful-data-center-utah-chinese-ccp-spy-ai/"><strong>all of these folks Chinese spies</strong></a><strong>. He had to apologize for that. Fox News, where he said those remarks, had to apologize on air for it. He </strong><a href="https://www.sltrib.com/news/2026/06/25/kevin-oleary-retracts-chinese/"><strong>posted an Instagram apology</strong></a><strong>. Now </strong><a href="https://www.sltrib.com/news/2026/09/27/kevin-oleary-fox-news-seek/"><strong>he&#8217;s walked away from it</strong></a><strong>.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>You sent him a list of questions. This is real inside baseball, but to make a story like this, we do an email called the “no surprises” email where we just say all the things we&#8217;re going to say and people are allowed to respond to them. His response to us was to have his lawyers lightly threaten us, like, &#8220;Make sure everything&#8217;s accurate. We&#8217;re not responding to you. Make sure everything&#8217;s accurate or something bad will happen.&#8221;</strong></p>

<p class="wp-block-paragraph"><strong>He went from being the face to being so not wanting to be a part of the story that his lawyers spoke for him. Why do you think that happened?</strong></p>

<p class="wp-block-paragraph">I mean, for one, now he’s in a defamation lawsuit. But I found his arc to be really fascinating as a window into the politics of data centers, because he came out kind of in a maximum conflict, partisan posture. There&#8217;s these protests. He immediately starts attacking the protesters. He <a href="https://www.fox13now.com/news/local-news/box-elder-county/utah-data-center-investor-kevin-oleary-accuses-opposition-groups-of-being-funded-by-china">reads names on Fox News</a>, says that they are being paid by China.&nbsp;</p>

<p class="wp-block-paragraph">O’Leary goes on the offensive against them, and it just doesn&#8217;t work. I mean, more than it doesn&#8217;t work, it backfires. Many people I spoke to in Utah came out because they were additionally insulted by the idea that they were being accused of being Chinese agents when they&#8217;ve lived there for generations.</p>

<p class="wp-block-paragraph">I think on another political issue, maybe he could have gained some support. He&#8217;s trying to play this race with China and the nationalist card, but it just didn&#8217;t work here and it only mobilized more people against him. He <a href="https://www.youtube.com/watch?v=xTAJnJUos3g">went on Tucker Carlson</a>. Tucker, for the most part, was skeptical of the China argument and kept pressing him on, &#8220;Why would anyone want a data center? Why should anyone support this project?&#8221; It&#8217;s just really interesting to see the degree to which he failed to get any kind of partisan traction on this with that strategy.</p>

<p class="wp-block-paragraph"><strong>There&#8217;s an interesting parallel here to the CEO of Flock, whose initial defense of Flock was to </strong><a href="https://www.forbes.com/sites/thomasbrewster/2026/07/17/flock-ceo-sorry-for-labelling-activists-terrorists/"><strong>try to use MAGA talking points</strong></a><strong>, and it also didn&#8217;t work. There&#8217;s something about the political realignment here that is utterly fascinating to me, and it&#8217;s coming right up against the speed that you mentioned, right?</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s an entire industry that is built around trying to acquire money from hyperscalers as fast as possible by getting these deals done, by getting the permits, by going through the process as quickly as possible, and it feels like our politics and that process are in absolute conflict.</strong></p>

<p class="wp-block-paragraph"><strong>Talk about that process a little bit, because you would think that they would understand that they&#8217;re up against the actual people in these communities not wanting this to happen.</strong></p>

<p class="wp-block-paragraph">I think they understand that now. My sense is they didn&#8217;t understand that until surprisingly recently. So the Stratos project is emblematic of a certain type of data center at this moment in kind of I don&#8217;t want to say a late-stage, but very well-developed speculative boom, let&#8217;s say, where you have random people from tangentially-related industries who are being sucked into the boom and trying to find an angle, trying to find a way into it.</p>

<p class="wp-block-paragraph">So basically, the data center race, if you want to zoom out, is all about speed. You have a handful of hyperscalers who are locked in what they believe to be an existential race to AGI with each other and will spend whatever it takes to win. That means they will spend, right now, whatever it takes not just to build a data center, but to build a data center faster than their rivals. That means you have billions — hundreds of billions, trillions of dollars — flowing into anyone who will get them what they need as fast as possible.</p>

<p class="wp-block-paragraph">So you can watch, over the last two years or so, these different aspects of data center development get totally jammed up. Initially it was, &#8220;All these giant data centers need to get connected to the grid.&#8221; That&#8217;s a slow process. It can take a year, it can take two years, it can take more, even in normal times. So speculative developers start making requests with various utilities and saying, &#8220;I&#8217;ve got a giant data center. I want to connect it, start the study process.”</p>

<p class="wp-block-paragraph">It jams up the queues. Utilities stop taking new applications. They charge money for them. Wait times get even longer. So, data center developers then go off grid, “behind the meter” is what they call it: “we&#8217;re going to build our own power plants.” And it&#8217;s always natural gas because that is a faster way to get 24-hour power than all the permitting and logistics involved with a nuclear plant or solar and batteries or something like that.</p>

<p class="wp-block-paragraph">Now, turbines are back ordered for years. So, you have all of these other players who are trying to find ways to get the hyperscalers what they need. It has now coalesced into something called powered land assembly. What these developers do is they look for a bunch of property, try to secure access to power, and then turn around and sell it to a developer to build a data center. It can be very lucrative.</p>

<p class="wp-block-paragraph">These packages can go for 20 times or more what the raw land would cost. Basically what the developer is paying for is speed. Your pitch is basically like, &#8220;I&#8217;ve got land, it&#8217;s already permitted. All you need to do is build the data center, put chips in it and you&#8217;re ready to go.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">One consequence of that is that you have a lot of announcements. A lot of announcements for developers say, &#8220;I&#8217;ve got a 10-gigawatt facility here. We&#8217;re building this gigantic facility, it&#8217;s going to be the biggest data center in the world.&#8221; This happens not just with Kevin O&#8217;Leary, but also basically what they&#8217;re saying is, “Hey Meta, if you wanted to get involved with this, you could have the biggest data center in the world. You could have a 10-gigawatt facility here.” It has that power capacity, maybe it has permitting for that and has the physical footprint for it. It doesn&#8217;t mean we have funding to build a 10-gigawatt facility or anything like that. So, you have these so-called paper data centers out there, but it is a symptom of the broader race dynamic.</p>

<p class="wp-block-paragraph">They’re moving as fast as they can. The hyperscalers want to move as fast as they can. So, you have developers who are trying to move as fast as they can. They&#8217;re pressuring states to move as fast as they can to put an enticing package together for the developers that they can then turn around and give to the hyperscalers.</p>

<p class="wp-block-paragraph">At no part in this chain are local residents a player. They&#8217;re just not there. They&#8217;re not part of this system. So, you have something like Stratos, where just no one bothered to tell anyone in Box Elder County that anything was coming. They&#8217;re all racing. Their concern is, “Can we get this deal together as fast as possible?” Local residents just don’t come up.</p>

<p class="wp-block-paragraph">So, I think only now that you have projects hitting real roadblocks with people screaming at their commissioners until they don&#8217;t rezone areas, now the people are an obstacle to speed. Now developers and hyperscalers are thinking about, “Well, how do we make people more okay with these projects?”</p>

<p class="wp-block-paragraph"><strong>It strikes me that one other thing that should be an obstacle to speed here is the basic economics of AI, right? You have these essentially wildcatters trying to find plots of land with a favorable political process that will enable permitting, and they&#8217;re going to sell it at 20 times its value to a hyperscaler that will then buy a bunch of Nvidia chips and then do something with AI to generate enough revenue to make all that worth it.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>I don&#8217;t think anybody knows what that is yet. Anthropic’s </strong><a href="https://www.theverge.com/ai-artificial-intelligence/1001838/anthropic-ipo-prospectus-ai-safety-threat"><strong>S-1 just came out</strong></a><strong>. It is unclear from that document what that will be, but no one seems to care. Do these wildcatters just not care?</strong></p>

<p class="wp-block-paragraph">No, no one cares.</p>

<p class="wp-block-paragraph"><strong>[Laughs] Fair enough.</strong></p>

<p class="wp-block-paragraph">That was one of the really illuminating things to me. The investor Paul Kedrosky explained what&#8217;s happening here and why nobody in the system cares. It&#8217;s because these companies that are in this race are some of the most profitable, huge, credit-worthy, triple-A-rated companies of all time. And so-</p>

<p class="wp-block-paragraph"><strong>But some of them are not, just to be clear.</strong></p>

<p class="wp-block-paragraph">Some of them are not, yeah, some of them are not.</p>

<p class="wp-block-paragraph"><strong>Google and Meta and Amazon are, but OpenAI and Anthropic and the rest are not.</strong></p>

<p class="wp-block-paragraph">Right, and you see, and that is why you have with some recent OpenAI mega-data centers these <a href="https://www.cnbc.com/2026/08/17/nvidia-financing-open-ai-data-center-ohio.html">fairly complicated backstop arrangements with Nvidia</a> and other companies that need to come in and say, &#8220;We&#8217;re going to be good for the money no matter what happens essentially.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">So, what Paul explained was that because no one can pay for these projects, not even the hyperscalers directly — the projects are too huge, too expensive — you have private credit, you have pension funds, and these sorts of entities who are coming in [to finance it]. They see these projects as a reliable return for many years because in their contracts, Meta is good for the money no matter what happens with AI.</p>

<p class="wp-block-paragraph">That&#8217;s part of the reason you have this system kind of racing out of control no matter whether people think AI is going to pay for itself or they&#8217;re not clear exactly how, but it has self-sustaining velocity at least until the hyperscalers’ credit comes into question.</p>

<p class="wp-block-paragraph"><strong>It seems clear that the political backlash might be able to pump the brakes here and that&#8217;s where I want to end. But I just want to ask about the financial component of it for one more turn here.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Just in your description of that, I can lay out a lot of risks that make Meta not good for the money if this doesn&#8217;t pay off, right? If the AI bubble pops, maybe none of these companies have any cash left to pay off these enormous bills. Is anybody taking that into account?</strong></p>

<p class="wp-block-paragraph">I mean no…</p>

<p class="wp-block-paragraph"><strong>[Laughs] Sure, okay.</strong></p>

<p class="wp-block-paragraph">[Laughs] No one I spoke to. I mean no one who&#8217;s developing Stratos, that is not of their concern. Hopefully the pension funds or investors or credit agencies or somebody, like the government, are thinking about that. But I would say the financial actors, they&#8217;re keeping the process moving forward right now, I think. In the defense of whatever is happening here, new capabilities continue to be unlocked with more data centers. So, you can hope that that will continue to be the case and that there will be a path to profitability at some point.</p>

<p class="wp-block-paragraph">Something that I can&#8217;t answer is whether there&#8217;s a bubble or whether it&#8217;s going to pop. I don&#8217;t know. I don&#8217;t think anyone really knows. So, only time will tell. But I think one thing I was left thinking about with this story is we&#8217;re laying down a lot of infrastructure with a really long lifespan out of immediate expediency. We&#8217;re building gigantic gas plants in the middle of nowhere because that gets you a data center a year or two faster than some other method.</p>

<p class="wp-block-paragraph">So, you have a question of even if AI is a bubble, you&#8217;re going to have a bunch of giant gas plants in the middle of nowhere — somebody called them very expensive refrigerators basically in the middle of the desert. Even if AI works out, is that the best way to build your data center infrastructure totally disconnected from the grid on fossil fuels in the middle of nowhere? This is not necessarily the most thoughtful way to build what&#8217;s supposed to be a civilization scale technology.</p>

<p class="wp-block-paragraph"><strong>[Laughs] Yeah, that&#8217;s not how we do things in America, Josh. I think you know that better than most.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>Let&#8217;s bring this back to Utah just to wrap it up. So, the people on the ground in Box Elder County mounted their opposition, and they succeeded in getting this project scaled back. Kevin O&#8217;Leary has receded into the background behind his shield of attorneys.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>What happens next here? And what can people around the country who are facing this kind of development and either in support of it or in opposition to it take away from this story? What can they learn from it?</strong></p>

<p class="wp-block-paragraph">I mean I think one thing that was striking with Stratos was just the sheer volume of outrage, the response it got from the state and local government. I think politicians still have to get elected. I think people have realized that this issue is so uniquely toxic that you&#8217;ve seen even politicians who are quite pro-data center running away from these projects lately in Texas and other places. So, I think that sort of people coming out, people writing their lawmakers, people protesting at commission meetings, I think that more than anything is why Stratos hit the roadblocks it did.</p>

<p class="wp-block-paragraph">I think certainly the referendum and the litigation is kind of the most technical reason it might not move forward, but I also think just the sheer volume of criticism and objection has really branded the project in Utah politics as something undesirable, something you don&#8217;t want to be caught blindly supporting.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s funny because there&#8217;s one politician who&#8217;s not walked away from data centers: President Trump. The day before we&#8217;re talking, President Trump </strong><a href="https://www.theverge.com/policy/1002468/trump-ai-superintelligence-executive-order-ai"><strong>held his White House summit</strong></a><strong> with all the AI leaders and he just </strong><a href="https://www.newsweek.com/trump-americans-want-data-centers-what-polls-show-12505182"><strong>confidently said to cameras</strong></a><strong>, &#8220;People are going to love data centers.&#8221; It is unclear what mechanism will create this love, but he seems to think that that will happen in the end. Has that been a prevailing view in any of your reporting or is that just Trump wanting it to happen?</strong></p>

<p class="wp-block-paragraph">I think it&#8217;s Trump wanting it to happen, I don&#8217;t know anyone who wants a data center in their backyard. I think that was one of the surprising things to me, that there&#8217;s not really a pro-data center constituency other than I guess state officials who see them as an attractive source of tax revenue and the people building them. Even the people who were selling land into the project were saying, &#8220;I&#8217;ll get paid, but I&#8217;m not happy this is coming.”&nbsp;</p>

<p class="wp-block-paragraph">&#8220;No one wants these things,&#8221; is something that somebody who was supporting the project because their land was part of the package told me. No one wants a data center in their backyard, even people who might directly profit from them. So, I would be very curious how any pro-data center, local constituency would form. I don&#8217;t, from my reporting, see a path to that, but it could happen, I suppose.</p>

<p class="wp-block-paragraph"><strong>When I talk to various folks in the tech industry, they are very eager to ascribe all this to NIMBYism, which is maybe the most coherent force that cuts across American politics. Just the power of people to say literally no to development anywhere for any reason, whether it is housing in cities or whether it&#8217;s data centers in rural areas, the American belief in NIMBYism is strong. Is that a component here? Is it just that&#8217;s the tool we have to pull to stop AI? Is it just that&#8217;s the lever we get to pull to stop AI and so we&#8217;re pulling it as hard as we can?</strong></p>

<p class="wp-block-paragraph">I think there&#8217;s certainly an element of NIMBYism behind this. I mean, it&#8217;s people who are upset about the idea that this data center is going to ruin the local character. More than that, I think, I don&#8217;t know if you could call concerns about environmental impacts NIMBYism, but they&#8217;re concerned about air pollution and heat exhaust and things like that. Water use, of course, comes up.&nbsp;</p>

<p class="wp-block-paragraph">So, you have under the umbrella of NIMBYism concerns about how it will impact the place where they live. I think that is probably the overriding thing, more than concerns about AI, that was animating the protests among the people I spoke with. AI came up, and I think this varies depending on the data center and the project and the people who are opposing it. AI didn&#8217;t come up that much with Stratos unless I asked about it.</p>

<p class="wp-block-paragraph">I asked people who are like, &#8220;Would you feel differently if this data center was for emails or Netflix streaming or something, or an Amazon fulfillment center that used nine gigawatts for some reason?&#8221; They would say, &#8220;Well, but at least a fulfillment center would create some jobs.&#8221; I think that is part of your answer about where AI factors. There&#8217;s no pro case, they don&#8217;t see a use for a data center, they don&#8217;t see a need for AI.&nbsp;</p>

<p class="wp-block-paragraph">&#8220;We don&#8217;t need this,&#8221; is something they say a lot. So it&#8217;s just kind of all costs to them. More than anti-AI, I think it&#8217;s anti-data center and not pro-AI. This was granted before the agents started hacking everything, and we had a louder conversation about existential risk, but people just didn&#8217;t see the point of it.</p>

<p class="wp-block-paragraph">It was just not a project that seemed like it was being done by people with their interests in mind, and it affected them in negative ways for no discernible benefit. I think that&#8217;s a lot of the opposition. I think AI can be sort of a vague cloud of things that don&#8217;t help them that are wanted by people somewhere else for reasons that are unclear, versus the concrete harms. I heard a lot more about the concrete harms of the data center than I did about AI job loss or anything like that.</p>

<p class="wp-block-paragraph"><strong>It seems unlikely that Meta&#8217;s Muse agent is going to save enough money for people by searching their email for coupons to overcome that. The consumer products in AI just have not taken off to overcome all of these concerns. This is a question I&#8217;ve been asking. If the data centers just said Netflix on them, would you be happier? And it seems like no, even the benefit of having entertainment isn&#8217;t enough to overcome the local harms.</strong></p>

<p class="wp-block-paragraph">Yeah, I think they rightly had concerns about a gigantic gas facility in the vicinity, near Great Salt Lake, and the fact that it was AI was more a point against it. The people I spoke with, they used AI, but they would say, &#8220;Well, it&#8217;s slightly better Google Search,&#8221; or, &#8220;I use it to make a birthday card,&#8221; or something.&nbsp;</p>

<p class="wp-block-paragraph">But why does that mean we need to drop everything to build a gigantic data center right here right now? Why is this a matter of national security that-</p>

<p class="wp-block-paragraph"><strong>And why is Kevin O&#8217;Leary the face of it?</strong></p>

<p class="wp-block-paragraph">[Laughs] And why is this Canadian tycoon the one to do it was another question.</p>

<p class="wp-block-paragraph"><strong>What happens next here? Obviously this project, Stratos, is tied up in litigation, and we&#8217;re going to see what happens there. We&#8217;ve been covering other big data center projects around the country as part of a larger package we&#8217;ve been doing. What do you think the state of the data center buildout is and the temperature of the opposition?</strong></p>

<p class="wp-block-paragraph">I think the temperature is still pretty high. I don&#8217;t think people feel better about data centers now than they did in May. The conversation has shifted a little bit more towards the possible dangers of AI itself, and I don&#8217;t see how that helps the argument that we need to build as many data centers as possible everywhere.&nbsp;</p>

<p class="wp-block-paragraph">I think the developers and the hyperscalers have become more attuned to the need to try to offer some sort of perks to the local population to not be completely hated. But I don&#8217;t see a pro-data center constituency forming. I think people will continue to oppose them, I think they will continue to be unpopular. Politicians will be less likely to offer tax breaks to pave the way for them. But I do think they have plenty of options. I mean, Stratos isn&#8217;t even the <a href="https://www.sltrib.com/news/2026/09/25/utah-data-center-map-tracking/">biggest data center project in Utah</a>. </p>

<p class="wp-block-paragraph">There are other paper data centers out there that are ready to be developed if the permitting comes through or they get the turbines or whatever. I don&#8217;t know that it will slow the AI buildout at a macro level, but I think it&#8217;s certainly created some friction.</p>

<p class="wp-block-paragraph"><strong>Well, it&#8217;s a great story and I really encourage people to go read it. Josh did an incredible amount of reporting on it. We gave it the full </strong><strong><em>Verge</em></strong><strong> treatment. There&#8217;s a thing we do called </strong><a href="https://shorthand.com/the-craft/an-introduction-to-scrollytelling/index.html"><strong>scrollytelling</strong></a><strong> on the web here at theverge.com, and you can go experience it now. Josh, thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thank you.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[The SaaSpocalypse that wasn&#8217;t, with Atlassian CEO Mike Cannon-Brookes]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/1000914/atlassian-ceo-mike-cannon-brookes-saaspocalypse-ai-enterprise-software-trello-jira" />
			<id>https://www.theverge.com/?p=1000914</id>
			<updated>2026-09-28T10:01:39-04:00</updated>
			<published>2026-09-28T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Business" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[Today, I’m talking with Mike Cannon-Brookes, who is cofounder and CEO of Atlassian.&#160; Atlassian is one of those companies that every other company runs on — it makes important platform tools like Jira and Trello that allow people to organize and manage big teams, create shared databases of company information, and generally allow work to [&#8230;]]]></summary>
			
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<img alt="A photo illustration of Atlassian CEO Mike Cannon-Brookes." data-caption="" data-portal-copyright="Image: The Verge / Photo: Atlassian" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/09/DCD_2026-09-28_Cannon-Brookes.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap wp-block-paragraph">Today, I’m talking with Mike Cannon-Brookes, who is cofounder and CEO of Atlassian.&nbsp;</p>

<p class="wp-block-paragraph">Atlassian is one of those companies that every other company runs on — it makes important platform tools like Jira and Trello that allow people to organize and manage big teams, create shared databases of company information, and generally allow work to happen. As you’ll hear Mike say, all of Atlassian’s products are actually different expressions of a single core platform, which really shapes how Atlassian itself is structured and how those products are built.</p>

<p class="wp-block-paragraph">All of this means Atlassian is also right in the middle of the way AI is changing how all these companies work — AI tools might be able to look at all the different tools and systems you have and just read them for you, making a big migration to Atlassian’s platform less enticing. Or, if you <a href="https://www.cnbc.com/2026/08/07/saaspocalypse-debate-intensifies-as-software-stocks-swing-wildly.html">buy the idea of the so-called SaaSpocalypse</a>, AI might just build all of these tools for you, destroying this entire category of businesses.</p>

<div class="wp-block-vox-media-highlight vox-media-highlight"><img src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24792604/The_Verge_Decoder_Tileart.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p class="wp-block-paragraph"><em>Verge</em> subscribers, don&#8217;t forget you get exclusive access to ad-free <em>Decoder</em> wherever you get your podcasts. Head <a href="https://www.theverge.com/account/podcasts">here</a>. Not a subscriber? You can <a href="https://www.theverge.com/subscribe">sign up here</a>. </p>
</div>

<p class="wp-block-paragraph">Obviously, Mike had a lot of thoughts pushing back on this. So we spent some real time talking about the value of design, human users, how AI is actually increasing the usage of Atlassian’s tools, and what this all looks like a few years from now.&nbsp;</p>

<p class="wp-block-paragraph">Of course, AI has also changed Atlassian. Like so many other tech companies, Atlassian did a <a href="https://techcrunch.com/2026/03/12/atlassian-follows-blocks-footsteps-and-cuts-staff-in-the-name-of-ai/">round of layoffs earlier this year</a>, with Mike saying he felt the company needed a different “mix of skills.” So I asked Mike what he thinks that mix of skills is and how AI is changing what it means to run a software company.</p>

<p class="wp-block-paragraph">But Mike was also refreshingly direct about what AI <em>can’t</em> do, and he was willing to push back on his own friends like Cloudflare CEO Matthew Prince, who was <a href="https://www.theverge.com/podcast/1000344/cloudflare-matthew-prince-google-zero-ai-web-advertising">just on the show</a> talking about AI eliminating what he called “measurement roles.” This was a fun one — and shoutout to Mike, who recorded this from Atlassian home base in Australia, which meant he had a deep conversation about org charts at 5AM.</p>

<p class="wp-block-paragraph">Okay: Atlassian CEO Mike Cannon-Brookes. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP2948196518" width="100%"></iframe>

<p class="wp-block-paragraph"><strong>Mike Cannon-Brookes, you&#8217;re the co-founder and CEO of Atlassian. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thanks for having me, man.</p>

<p class="wp-block-paragraph"><strong>I am really excited to talk to you. I believe you&#8217;re in Australia?</strong></p>

<p class="wp-block-paragraph">Yes.</p>

<p class="wp-block-paragraph"><strong>It&#8217;s tomorrow for you. What&#8217;s going to happen tomorrow?</strong></p>

<p class="wp-block-paragraph">It&#8217;s tonight. It&#8217;s a great day here. It looks beautiful. It looks like it&#8217;s going to be an amazing day.</p>

<p class="wp-block-paragraph"><strong>At this point in the AI news cycle, I feel like I can just demand to know what&#8217;s going to happen tomorrow, and everyone understands the urgency behind that question. There&#8217;s a lot going on with Atlassian. There&#8217;s a lot going on with your products. There&#8217;s a lot going on in the very concept of SaaS businesses and business processes generally.</strong></p>

<p class="wp-block-paragraph"><strong>Let&#8217;s start at the very start. I think people know Atlassian. They know Jira. I started my career as a Trello person. Tell people what you think Atlassian is today.</strong></p>

<p class="wp-block-paragraph">Atlassian is a platform that enables businesses to collaborate and manage work across their teams. We connect their business teams and their technology teams to handle the most challenging work problems in a singular platform across any organization that is technologically driven. </p>

<p class="wp-block-paragraph">For any organization that has software and technology as its core competitive advantage, we make a broad platform that allows them to collaborate on content, manage projects, and unleash the knowledge of their teams and organizations across their business, their strategy, operations, all the way through to their service teams in all areas of their business. It&#8217;s a very large platform now that we provide.</p>

<p class="wp-block-paragraph"><strong>Just in terms of what work is today and what it might be in the future as we add more and more AI to these enterprises, maybe this is too reductive, but I have always thought of Atlassian as a company that makes tools to help teams figure out what they&#8217;re going to do tomorrow. Jira is a perfect example of this. You don&#8217;t do the software engineering in Jira, but Jira helps you organize large teams of software engineers and file tickets and prioritize problems and tasks.</strong></p>

<p class="wp-block-paragraph"><strong>I was a Trello person a long time ago. My goal in life now is to never use any enterprise software. I feel like that&#8217;s a sign of true success if you&#8217;re just an iPad person in first class. I&#8217;m working on it. I&#8217;m not saying I&#8217;m there yet, but that&#8217;s one of my goals.</strong></p>

<p class="wp-block-paragraph"><strong>But there was a time when I was the managing editor of </strong><strong><em>The Verge</em></strong><strong> and my job, straightforwardly, was to look at Trello every day and make sure everyone was doing the right thing at the right time. And I&#8217;ve always thought of Atlassian as that class of products. We&#8217;re going to organize the processes of the company.</strong></p>

<p class="wp-block-paragraph"><strong>There&#8217;s something about AI that&#8217;s changing that. Has that conception of Atlassian changed for you? Is it changing faster because of AI?</strong></p>

<p class="wp-block-paragraph">Understanding what work you have to do at an individual level like Trello, at a team level like Jira, or at an organizational level like our Strategy Collection for large-scale strategy and operations — that is definitely a big part of what we do.</p>

<p class="wp-block-paragraph">Understanding where processes are at — It&#8217;s less about work to do than processes. If you think about a business as a system of processes that are put together, everything in a business is some sort of system. It&#8217;s a process in the collection of all these, and how well we execute them is what your business is doing. The fundamentals of that haven&#8217;t changed. The way those processes run, the number of them running, and how to figure out what&#8217;s going on hasn&#8217;t changed.</p>

<p class="wp-block-paragraph">We think about Jira as a human reference to work. When we say that, it&#8217;s a really interesting term because, as you said, the work is not done in Jira. Developers don&#8217;t live in Jira. Marketers don&#8217;t live in Jira. Finance people don&#8217;t live in Jira. Jira is a workflow engine with highly collaborative parts that enables teams to understand what they, their colleagues, and their broader organization are doing. That&#8217;s why agents and AI and other things are going to increase the speed of those processes. In a lot of ways, they will increase the reliability, the quality, and the consistency of output of certain processes.&nbsp;</p>

<p class="wp-block-paragraph">They also put more emphasis on where the humans, the judgment, the intuition, the human bits that are unique, and the initiation come from. It&#8217;s our job to make sure that that&#8217;s all still understandable so someone can just look at any level of their business and know what the fuck&#8217;s going on. What are people doing? Are we successfully doing whatever it is that we&#8217;re trying to do, whether that&#8217;s service function in a finance sales deal, exception service desk to work out how many exceptions did we give out in sales this quarter, or it&#8217;s an engineering team who&#8217;s trying to work out, &#8220;There&#8217;s stuff happening all over the place. What did we build this month? Or what are we going to build next month?&#8221; All of those things are incredibly hard to do at scale and volume in a business.</p>

<p class="wp-block-paragraph"><strong>One of the more important features of the tools you&#8217;ve built is legibility. It&#8217;s user experience. You have a big database of exceptions given out by salespeople, and you need to look at a dashboard and see how the company&#8217;s doing. Or you have a whole bunch of tasks, and Jira will let you see at various different levels of abstraction how many tasks are being completed at any given time. </strong></p>

<p class="wp-block-paragraph"><strong>That was something that was very important for human managers. A lot of the capability unlock of businesses as they added software like the software Atlassian makes is to just be able to see and coordinate more things at a higher scale.</strong></p>

<p class="wp-block-paragraph"><strong>The turn that&#8217;s coming is that maybe those databases aren&#8217;t going to be looked at by human beings anymore, or they&#8217;re going to be fed into more synthesized databases, or AI is going to make some other kind of information at different levels of abstraction. I know you&#8217;ve got a product called Rovo which feels like the new face of Atlassian in some ways.</strong></p>

<p class="wp-block-paragraph"><strong>What&#8217;s the path here? What does the end state look like?</strong></p>

<p class="wp-block-paragraph">There&#8217;s no doubt AI is going to help with a lot of those processes. There&#8217;s no doubt it&#8217;s going to pick up some steps in a process. Most businesses at the moment have a process, and they&#8217;re using AI to automate 80% of this step. It may not be 80% of the distance. It can be the width. If you think about that sales deal exception process that you just mentioned again there, if AI can take 80% of the exception — say this customer wants 45 days, not 30 days — and we can write a relatively readable document, AI is pretty good at reading the document and saying, &#8220;Yep, this one&#8217;s fine.&#8221;</p>

<p class="wp-block-paragraph">But there&#8217;s going to be a customer that needs a lot more complex exceptions. They say, &#8220;I want to pay in 90 days in this way, and I want this thing and that thing.&#8221; That needs to go to a human for intuition and judgment. So 80% of those may be easier done with AI now because it&#8217;s very capable at processing our rules in this particular part of our business, and that&#8217;s great. It&#8217;ll increase the speed of the process, the quality of it.</p>

<p class="wp-block-paragraph">It doesn&#8217;t take away the need to know what&#8217;s going on. Someone in the business will still need to know, &#8220;How many exceptions did we give?&#8221; What happens in most of these areas is businesses find way more ways to make themselves scale and efficient, and they find way more ways to make higher-quality products and services with AI. I see this all the time where they are utilizing AI in ways that people don&#8217;t expect. It&#8217;s not all about mechanistic efficiency. There&#8217;s a huge amount of quality that is able to be measured and understood that was never before. The deal exception process is a good example because it&#8217;s actually a very human process. It&#8217;s not usually rule-driven. The rule-driven parts are easy. It&#8217;s the non-rule-driven parts that are more complicated and require judgment.</p>

<p class="wp-block-paragraph">The business still needs to know, for that process, “Do we need to add more people to this process? Do we need to change it? How much is going through it?” You still have a lot of work to understand the flow of work around an enterprise, which gets more complicated as the flow&#8217;s volume goes up a lot.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m asking because I&#8217;m headed towards a series of questions about the supposed SaaSpocalypse, and I&#8217;m very curious where you think tool providers like Atlassian fit next to the frontier models are just going to eat more and more capability. Eventually, Claude will just do this for you. You&#8217;ll say to Claude, &#8220;Run my business for me.” In the backend, Claude will burn a bunch of tokens, and it&#8217;ll just do it all for you, which is a promise that many, many people seem to believe in.</strong></p>

<p class="wp-block-paragraph"><strong>You&#8217;re describing a somewhat different path where the tools get smarter or more capable because of AI, and you&#8217;re still adding a lot of human judgment, but at no point is a frontier model just coming and running your entire business for you.</strong></p>

<p class="wp-block-paragraph">If a frontier model is capable of coming and running the entire business for you, if it’s truly running the whole thing, even assuming four or five years worth of increase, you have a relatively simple business. Most businesses aren&#8217;t simple. They are global conglomerations of rules, compliance, laws, staff in different places, human inconsistency — which is the same as saying human creativity — that they&#8217;re putting it all together to try to deliver products and services for their customers in their industry: healthcare, university, finance, automotive, or whatever the industry is. </p>

<p class="wp-block-paragraph">They&#8217;re trying to compete with some other business. They are still going to have a huge number of humans, I would argue more knowledge workers, more developers, in five to 10 years time than today because the ability to do tasks to compete will go up.</p>

<p class="wp-block-paragraph">The bar for competition will go up in almost all these industries. You will still have a huge amount of things to go do. Most of the things that we think are simple will get done for you. That is the history of technology. I&#8217;m a big fan of saying AI is just technology. What we can do with spreadsheets, what we can do with the internet, what we can do with ordering goods online… You think, &#8220;Once Amazon arrives, we&#8217;ll all just never have to go to the shops again.&#8221; It doesn&#8217;t happen.</p>

<p class="wp-block-paragraph">I heard someone talking about bank branches as an analogy, which I thought was a really good one. Around 2000 when mobile banking came along, everyone thought bank branches were dead. Bank branches started closing down. Everyone wasn&#8217;t going to go to their branch anymore. It was a pretty negative place. At least it was in Australia. I&#8217;m pretty sure it was in America as well.</p>

<p class="wp-block-paragraph">If you look over the last 10 years, bank branches are increasing. People are like, &#8220;Huh, this is a narrative violation. Why is this?&#8221; And the answer is bank branches did close down. People did go to internet banking. They did use their mobile app. They don&#8217;t go into the branch anymore with a passport to say, &#8220;I&#8217;d like to send $100 to Nilay, please. Here are his details,” and write them all down.</p>

<p class="wp-block-paragraph">But bank branches have adapted. The reason they&#8217;re growing is there is a huge customer service element to a bank branch. The services they provide today are totally different than what they provided 25 years ago due to the technology of the bank and the availability of things. They are much more about helping you with higher-level processes and services than they ever have been.</p>

<p class="wp-block-paragraph">That turns out to be, presumably, profitable for the banks, which is why they&#8217;re opening new branches. Bank branches are going up. The things those branches are doing are totally different to what they were 25 years ago. I think you&#8217;ll see the same thing with knowledge workers and everything else, that it will still be incredibly important.</p>

<p class="wp-block-paragraph">I don&#8217;t see that part changing.</p>

<p class="wp-block-paragraph"><strong>I am working my way up to getting Jamie Dimon on the show to find out what happens in all the Chase Bank branches in New York, because I don&#8217;t actually know, but we&#8217;ll set that aside. Jamie will come on the show. We&#8217;ll ask, and we&#8217;ll figure it out.</strong></p>

<p class="wp-block-paragraph"><strong>One of the reasons I&#8217;m asking all these foundational existential questions is to understand how you feel about Atlassian&#8217;s relationship to businesses and how businesses might change as we add new technology. I agree with your general framing that automation technology arriving to a business is a pretty familiar phenomenon, but there&#8217;s something else going on with AI that is either making that faster or more dramatic. It&#8217;s obviously happening to your business as well. You&#8217;re the CEO of Atlassian, and you&#8217;ve made some changes around AI.</strong></p>

<p class="wp-block-paragraph"><strong>I want to ask you the </strong><strong><em>Decoder </em></strong><strong>questions now. How many people is Atlassian today? And how is it structured?</strong></p>

<p class="wp-block-paragraph">We are, I think publicly, 12,000-13,000-odd people around the world. We are structured globally, I would say. We are “<a href="https://www.atlassian.com/company/careers/teamanywhere">Team Anywhere</a>.” Employees have the choice to come into an office or not. About 60 percent of people come in three days a week or more. About 25 percent of people don&#8217;t come in a single day per week. We run as a globally distributed company as we have done since the start. When you start in Australia and San Francisco, you kind of get used to the Pacific Ocean being a little bit of a distribution. This was before Zoom. We used to have these giant Polycom systems in meeting rooms. We don&#8217;t have those anymore. Technological progress is nice.</p>

<p class="wp-block-paragraph">We have customers all around the world. We have staff all around the world. We are structured functionally, I guess you would say, with a lot of matrices internally. I don&#8217;t know if that&#8217;s the answer you&#8217;re looking for.</p>

<p class="wp-block-paragraph"><strong>No, that&#8217;s absolutely the answer I&#8217;m looking for. What do you mean by “functionally with a lot of matrices”?</strong></p>

<p class="wp-block-paragraph">We have a CRO. We have a CFO. We have two CTOs at the moment. We have two large product groups, each of which has a CTO and a chief product officer, one in the enterprise and emerging side and one in the future of teamwork side.</p>

<p class="wp-block-paragraph">Our products are organized into collections. We have collections of apps that are all built on a single platform. Well over half of our R&amp;D is on the platform. The apps are increasingly a smaller amount of the proportional total investment in building. More and more is on the singular Atlassian platform. Customers hire us as a platform across their business to get work done, not for a single application.</p>

<p class="wp-block-paragraph">That requires a matrix internally. We don&#8217;t have salespeople per product, if you want to think about it that way. The sales, customer success, and the FDEs are all customer-related motions. They&#8217;re organized as per the customers and their geographies and their size and scale. Then we obviously have to have designers and product managers on particular products who care about the purpose of a product, so you end up instantly with the matrix between how the customers are organized and how the products are organized.</p>

<p class="wp-block-paragraph">We have a giant platform. We have the technical platform that runs across all the products. It&#8217;s a very large platform team. We then have finance and talent and other things that are also broad processes. Naturally, you end up with collaborative areas that you have to get together, and we manage that through our operating processes.</p>

<p class="wp-block-paragraph"><strong>Do you use the Atlassian platform to run Atlassian?</strong></p>

<p class="wp-block-paragraph">We do. We run entirely on the Atlassian platform. I used to say we&#8217;re the number one user — we&#8217;re not anymore — of our strategy and operations products to understand what our business is focusing on, what our large-scale goals are, how the people, the investments, and the technical systems all come together, and what is going right and wrong across all of those. We are a big believer in our Strategy Collection to operate a large-scale business.</p>

<p class="wp-block-paragraph"><strong>One of my favorite questions to ask enterprise software CEOs is how much they personally use the enterprise software. How much do you personally use your products?</strong></p>

<p class="wp-block-paragraph">An awful lot.</p>

<p class="wp-block-paragraph"><strong>What&#8217;s your number one feature request for your teams?</strong></p>

<p class="wp-block-paragraph">My number one feature request is usually continual UI congruence. I guess that&#8217;s the category that people would put it in. I&#8217;m a bit of a stickler for design and consistency. We want to achieve eventual consistency in design, in which we&#8217;ve come a huge distance in the last five years. In the last two years, we&#8217;ve been truly world-class at doing it. That&#8217;s usually my biggest area where I use a lot of our products on a regular basis. As such, I&#8217;m moving around the platform, and I’m looking for ways where this thing over here happens this way. They do it better over there. We&#8217;re trying to achieve that eventual consistency across a large product surface area.</p>

<p class="wp-block-paragraph">I use Dia, our web browser. I think 96 to 97 percent of Atlassian now uses Dia on a regular basis. I mean, that&#8217;s a daily basis, so I literally spend many, many, many hours of the day on it. We are building a web browser for ourselves because we&#8217;ve reached the point that we feel, &#8220;This thing should just be better for knowledge workers.&#8221; We&#8217;ve already built, I would argue, the best browser for knowledge workers in the world, and it&#8217;s getting much, much, much better. Keep watching this space.</p>

<p class="wp-block-paragraph">So, yes, I would say there&#8217;s no 24-hour period that goes by where I don&#8217;t use one of our products. I doubt there&#8217;s a six-hour period that goes by where I don&#8217;t use one of our products at the moment.</p>

<p class="wp-block-paragraph"><strong>I want to talk about Dia in a second, because I&#8217;m very curious about that acquisition. Obviously, we covered The Browser Company very deeply at </strong><strong><em>The Verge</em></strong><strong>. That was a big acquisition for you guys.</strong></p>

<p class="wp-block-paragraph"><strong>Setting that aside for just one second, one of the things I&#8217;m particularly curious about here is the distinction between the platform and the products that run on the platform. Again, maybe this is just reductive, but it sounds like there&#8217;s a big layer of capability, and the products are expressions of those capabilities in different ways, but they&#8217;re all running on the same core platform.</strong></p>

<p class="wp-block-paragraph"><strong>Is that how you think about it?</strong></p>

<p class="wp-block-paragraph">Yes, absolutely. Yes. We have to build a singular R&amp;D platform, whether that&#8217;s how we talk to AI gateways, whether that&#8217;s how chat works, whether that&#8217;s how automation and identity and logging and governance and compliance and content classification work, whether that&#8217;s how our home and our search engine work. There are many, many more technical capabilities that have to be shared.</p>

<p class="wp-block-paragraph">Then you have all of the next layer up, and customers want that to work the same. It doesn&#8217;t matter if I&#8217;m in Confluence or Jira or Loom or the Service Collection, automation shouldn&#8217;t be different per place in the world. That&#8217;s very expensive. It&#8217;s very hard. It takes a lot of time, but it delivers a huge amount of customer value and loyalty. Most vendors don&#8217;t try to do that. They literally don&#8217;t try.</p>

<p class="wp-block-paragraph">Then you have a layer up, which is important, which is the consistency of operation and how content can be mixed. Operations and processes can be mixed across applications. If I open a Confluence page inside of Jira, I want that to feel like a Confluence page, but I want it to be inside of Jira. I don&#8217;t want to leave Jira to open it. I just want to read it, close it, keep going. There&#8217;s a lot of UI layer, a sort of recomposability, if you want to think about it that way.</p>

<p class="wp-block-paragraph">Lastly, each application has to do its job. If you blend enterprise software together, you end up in a world of hell. People have tried this many times. You want a tool to do a job. You want to pick up a screwdriver or a hammer or saw and feel like that thing&#8217;s going to do the thing you hired it to do. The interface is designed to help you do that task. That&#8217;s where there is a difference in the interface layer and the interaction layer, between those tools.</p>

<p class="wp-block-paragraph">The combination of those is where a lot of our design challenges live. For example, our chat layer, Rovo, is amazing. I would argue it&#8217;s one of the best, if not very close to the best enterprise chat products in the world. Our customers continually say that. &#8220;How come you&#8217;re better than insert-famous-brand-here?” There are a lot of reasons why we perform better in evaluations and testing with Rovo. It&#8217;s not because we make a foundational LLM, I think, which is the flaw of thinking.</p>

<p class="wp-block-paragraph">However, using Rovo inside a product, if you&#8217;re going to Rovo for the sake of Rovo, is awesome. You have a question to ask, you want to search across everything, fine, you go to a particular interface. If you&#8217;re inside of Loom or Jira or the Service Collection and you just want to open up chat, ask a question, you want it to understand the context you&#8217;re in, but you want that operation to be consistent across the platform. That&#8217;s what we&#8217;re striving to deliver to customers.</p>

<p class="wp-block-paragraph"><strong>One of my constant tropes on the show is that if you describe to me your org chart, I can tell you 80% of your problems. The structure of the company leads to some kind of natural politics in some kind of way.</strong></p>

<p class="wp-block-paragraph"><strong>The tension between “we have products that are designed to do a job” and “we have a platform that contains the core capabilities” is pretty well known.</strong></p>

<p class="wp-block-paragraph">Mm-hmm.</p>

<p class="wp-block-paragraph"><strong>Maybe your product teams are going to desire platform capabilities that don&#8217;t exist yet or they will desire different platform capabilities from one another. How do you break those ties? How do you make those calls?</strong></p>

<p class="wp-block-paragraph">We have a number of ways that we are different and we try to do that. First, I would say most importantly, we have a platform-centric CEO and co-founder who thinks in terms of platforms. <em>Thinking in Systems</em> is my favorite book, man. I have a copy on every desk.</p>

<p class="wp-block-paragraph">You have to put the platform first collectively, and then you go solve a bunch of problems. That does not mean genericism wins, but it does mean when you make trade-offs, you have to spend the extra effort and time to make it platform centric, to make it work. And that is a forever task. It helps to have a CEO, if you think about the referee across all the functions, that&#8217;s platform centric. They know where I&#8217;m going to land and so we&#8217;re going to end up there.</p>

<p class="wp-block-paragraph">Secondly, we have design as a very, very senior role. We have a massive investment in design. Our chief design officer reports to me, sits on our executive team. We now have three, four, five former chief design officers in the business from other very large businesses, some larger than us. We have a huge investment in design and experience. Especially in the AI era, that&#8217;s getting ever more important actually, much as Claude Design or something would tell you the opposite. I don&#8217;t think so. I actually think [when it comes to] design and the experience of software, if the cost of building goes down, the quality and differentiation is on the experience and the design, and that&#8217;s not something that&#8217;s easy to do. That requires a huge amount of taste and judgment.</p>

<p class="wp-block-paragraph">Lastly, I think we aren&#8217;t afraid to put things together in unusual ways in the organization where we need to solve problems. The latest example of that probably is our internal IT and engineering function now reports to our chief people officer and I&#8217;ve combined those two roles, which is unusual. &#8220;Why is HR running IT? That doesn&#8217;t make any sense.&#8221;</p>

<p class="wp-block-paragraph">It actually does, I would argue, at the moment because of the things we need to do to transform our business internally continually, which is that if I look at AI and becoming more AI native as a business, I end up with two piles of projects. A pile of projects that relate to talent, how I need to change and grow the people we have, get them using these technologies, get them thinking in certain ways. I have a huge talent problem. Hiring, growing, training, changing people is very difficult to be competitive.</p>

<p class="wp-block-paragraph">I have a huge system problem. I need to change our internal systems to have MCP servers. I need to make sure that everything is operable. I need to make sure that we have all of these system changes so that AI rolls out. How are we managing our token spending? There&#8217;s a huge amount of system change.</p>

<p class="wp-block-paragraph">I ended up refereeing a bunch of, “Is this a talent problem or a system problem?” As I say, that doesn&#8217;t make any sense. Usually the answer is this one&#8217;s 60 percent talent, this one&#8217;s 40 percent system, and this one&#8217;s the opposite way around. I&#8217;ve put them all together inside the business so that our system changes to apply AI internally and our talent changes to apply AI internally are in the same function right now, which is a little odd.</p>

<p class="wp-block-paragraph">The people who deliver the laptops and the people who manage compensation work for the same group, but it actually makes logical sense based on what we need to change about our business at the moment. What is this three-year epic that needs to change? We organize around the problems we need to solve and the goals we have as an organization when we need to.</p>

<p class="wp-block-paragraph"><strong>This is a brilliant segue, because I wanted to ask about this executive you have. I believe the formal title of your HR person is now “chief people and AI enablement officer.” That&#8217;s quite a title. And the point you&#8217;re making about the systems of the business needing to change leading to some change in your talent mix is coming true. In March, you laid off about 10% of the company. I watched the video you made in Loom about that.</strong></p>

<p class="wp-block-paragraph"><strong>Your point there was you&#8217;re not necessarily replacing people with AI, but you had identified a change in the mix of skills that the company needed and you were going to make these changes proactively.</strong></p>

<p class="wp-block-paragraph"><strong>Walk me through this. What made you say, &#8220;AI is here sufficiently that the mix of skills is different&#8221;? And what changes did you make to your systems to make losing 10% of your people effective or worthwhile?</strong></p>

<p class="wp-block-paragraph">We have to start with the environment. The environment we&#8217;ve lived in in technology for a while is continual hiring and growth. The markets have changed in their view on that. Because one of the ways that we&#8217;ve managed changing businesses over time has been hiring people in different areas. If you have red dots and blue dots and you say, &#8220;We need more green dots,&#8221; you just say, &#8220;We&#8217;re going to hire all green dots for a while until we have a blend.&#8221; You manage it that way, that is no longer a feasible path, firstly.</p>

<p class="wp-block-paragraph">Secondly, we have certain areas of the business, our AI roots and area-</p>

<p class="wp-block-paragraph"><strong>Wait, actually, can I just ask one question about that? You&#8217;re kind of describing the COVID era over-hiring that every tech company was doing, and you&#8217;re saying that&#8217;s kind of over?</strong></p>

<p class="wp-block-paragraph">Yeah. People hire at the rate of the best decisions they know at the given time and what they&#8217;re encouraged to do by others. Hopefully they don&#8217;t look at everybody around them, but I know that a lot of CEOs do look at the people around them and say, &#8220;I should do that.&#8221; I always think those are poor choices.</p>

<p class="wp-block-paragraph">Over-hiring, I don&#8217;t know. Pre-COVID, we were a few thousand people. You know what I mean? So we are four times, I don&#8217;t know, three times the size we were pre-COVID probably. Again, we&#8217;re accelerating as a business. We grew around 30% last quarter on a $7 billion run rate, which is the fastest we&#8217;ve grown in about two years. Customers are opting for more acceleration.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m just trying to understand the “you can&#8217;t just hire a bunch of green dots” comment a little more clearly because I&#8217;ve heard from many of your peers, &#8220;During that period we just hired everybody that we could.&#8221; It sounds like that&#8217;s not specifically what you were experiencing, but it rhymes in some way.</strong></p>

<p class="wp-block-paragraph">It does rhyme, but there are periods where that is the way to go. That&#8217;s not the current three- or four-year period of time. That&#8217;s the first thing I say because then you need to work at how we change our skill mix.</p>

<p class="wp-block-paragraph">We have a huge amount of internal programs to try to do that. We also have certain areas, our AI products and services specifically, and our enterprise sales areas are growing very, very fast. They&#8217;re doing well and we want to invest further in those areas. When you have certain areas you need to invest further in, you run into very difficult choices where you say, &#8220;I need to invest further in these two areas. I can&#8217;t grow the overall in a significant way. I have to manage how to transition the organization between that.&#8221; Which leads to a lot of very difficult choices.</p>

<p class="wp-block-paragraph">We are still hiring really hard in those areas in order to change the skill mix, but you also have a question of how fast we need to do that. It doesn&#8217;t, I always say, take away from any “internal training programs.” I say that in air quotes in terms of how AI is adopted and used. It&#8217;s more around learn, play, share, and mutual learning. It&#8217;s less like an L&amp;D, in terms of “I&#8217;m going to sit down and watch a class on how to do this,” but that doesn&#8217;t take away from that. It&#8217;s a combination of all these factors as we&#8217;ve massively changed the business to be truly world leading at AI product development in the last two years. There&#8217;s no doubt that&#8217;s been a rapid journey and we&#8217;re trying to move as fast as we can to get there and to stay ahead.</p>

<p class="wp-block-paragraph"><strong>One of the things I&#8217;ve heard from a lot of CEOs in your position is, “The value of our senior people has increased.” There are more senior software engineer job listings out in the market right now because as you&#8217;ve said, that judgment and that taste is very important and maybe the tools can just build that stuff for you.</strong></p>

<p class="wp-block-paragraph"><strong>I&#8217;m curious for your view on design. The idea that all of our designers will not be enabled to just ship code is very tempting to a lot of people. There&#8217;s a third view that says product managers roles do everything and all these roles are going to come crashing into each other.</strong></p>

<p class="wp-block-paragraph"><strong>What mix of skills specifically did you identify and how are you prioritizing in this sort of classic triumvirate as more and more people get the ability to do all the other jobs?</strong></p>

<p class="wp-block-paragraph">It&#8217;s very easy for people to have very binary takes on these things. I find it amusing that if you put an engineer, a designer, and a product manager in a room, they&#8217;d all sit there and they&#8217;d all say, &#8220;Oh man, it sucks to be you. Your job&#8217;s going to go away.&#8221; I say, “Ah, that probably is your answer right there.”</p>

<p class="wp-block-paragraph">We have a lot more product managers and designers who are writing code from prototypes to actually shipping code than we ever have before, that is for sure. We have a lot more marketers and finance people and HR people who are doing the same thing, by the way. The code that they&#8217;re writing and shipping builds on two things. One, a platform that has the engineering robustness to be able to scale and deliver the customers a European-compliant data resident solution that is necessary, the legal constraints of country X, et cetera.</p>

<p class="wp-block-paragraph">You have to build a technical environment that is able to get out to a customer with the required degree of customer safety. That is a non-trivial problem. That&#8217;s not something you&#8217;re just going to vibe code. If I&#8217;m vibe coding my own solution to something for my household, fine, it can just work well enough. I&#8217;ll go fix it if it doesn&#8217;t. If I&#8217;m doing that for a large organization, I need some other controls and rules around it.</p>

<p class="wp-block-paragraph">Secondly, the specialization of those areas all doesn&#8217;t go away. The human judgment required in different areas is like the edges of the roles blending. They&#8217;re able to do a little bit more of someone else&#8217;s job. I have a lot of designers who are able to ship prototypes that are working code prototypes instead of a picture or a fake prototype in terms of a mock-up. That&#8217;s great. I still see them sitting in Figma a lot and doing that.</p>

<p class="wp-block-paragraph">I have a lot of engineers who are sitting in Cursor or Claude Code or whatever on a daily basis, writing features and building things, and they&#8217;re able to do more design than they were before. That doesn&#8217;t replace the need for the other job. It increases the quality of the overall software. It increases the speed of collaboration between people if you want to think about it. If they each understand each other&#8217;s role, they can have a much more fulsome conversation more quickly. The specialized nature of what they do goes up. It becomes more spiky, which is really, really important.</p>

<p class="wp-block-paragraph">The ability of building platforms — that&#8217;s going to get overused here — becomes more important. Just this week, for example, one of our designers wrote an interesting blog post about how we now have an MCP (Model Context Protocol) and a CLI (command line interface) for our design system internally. We have an award-winning design system, atlassian.design. It&#8217;s very public. We publish all of our design system.</p>

<p class="wp-block-paragraph">I&#8217;ve always said in the role of design, 50% of their job is to make our design system and to keep it scalable, flexible, and buildable. 50% of their job is to solve the hardest 5% of problems in design because the half where they&#8217;re building the platform, what used to be templates and design documents that are now CLIs and MCPs to do design internally in the way that we want design to work so it&#8217;s consistent and coherent, that is a really hard problem to build that.</p>

<p class="wp-block-paragraph">However, they&#8217;re unleashing thousands, if not almost tens of thousands of engineers to build better-designed things when they do that. Their leverage is a lot higher in building a design system than it is in solving, &#8220;Help me with this screen.&#8221; It&#8217;s the same in security. It&#8217;s the same in customer support and customer service actually. If you think of bug fixing as the platform on which you reduce customer service, more and more of that role is required on building those scalable templates, platforms, ways that the other functions can build on top of so they can do that thing.</p>

<p class="wp-block-paragraph">If a product manager is vibe coding a feature, as in they&#8217;re just stabbing around some sort of code generating area and it&#8217;s an area where it&#8217;s not infrastructural, it doesn&#8217;t need to scale, it&#8217;s fine. It should leverage our entire design system. Turns out, out of the box, that&#8217;s not very workable. We&#8217;ve just shipped MCPs and CLIs internally, which are on V4 that are amazing at understanding our design system so the designers can evolve that system and the features that are being built will continue to match what customers expect in that congruence and consistency. That gets us huge leverage overall, but it&#8217;s a non-trivial thing. It doesn&#8217;t mean the designers are going to go away, the engineers are going to go away, the product managers are going to go away. I don&#8217;t think any of those roles disappear.</p>

<p class="wp-block-paragraph"><strong>I&#8217;m always joking that </strong><strong><em>Decoder </em></strong><strong>is fundamentally a show about org charts, which means I think I know what the next five years of the show is going to be about because we&#8217;re on the cusp of some of the weirdest org charts in history in AI.</strong></p>

<p class="wp-block-paragraph"><strong>Matthew Prince from Cloudflare was </strong><a href="https://www.theverge.com/podcast/1000344/cloudflare-matthew-prince-google-zero-ai-web-advertising"><strong>just on the show</strong></a><strong>. We talked a lot about his Wall Street Journal op-ed where he said, &#8220;I&#8217;m going to fire all the measurers at the company because I can replace them with AI. They can look at all of my systems and do all the auditing for me and we&#8217;re going to have fewer middle managers because what they&#8217;re really doing is measuring and auditing things and AI can do that.&#8221; There are reports that Mark Zuckerberg wants managers to have teams of 50 empowered by AI somewhere inside of Meta. This strikes me as not a great idea, but we&#8217;re going to see how it goes.</strong></p>

<p class="wp-block-paragraph"><strong>Where are you? Are you in classic org chart? Are you at wild ideas? How is this coming together for you?</strong></p>

<p class="wp-block-paragraph">I would say I know both of those people very well. I&#8217;m certainly more measured than that and I think the reality of how the world will be. I think it&#8217;s easy to point to extremities. Is someone somewhere a manager with 50 people? Sure. Are they effective? Maybe. People always talk about Jensen Huang. He&#8217;s obviously very effective. He&#8217;s a good dude. He runs things in a very weird way. Is that scalable and repeatable? I&#8217;m not sure it&#8217;s scalable and repeatable. I&#8217;m not sure if you took an entire set of large companies and made them all work that way, they wouldn&#8217;t have worse results as a collective.</p>

<p class="wp-block-paragraph">Part of business is scalability and consistency, and being able to be understood and managed that doesn&#8217;t require uniquely talented individuals to understand a very odd structure as they move around a business. I suspect you are going to get more role blending and people able to handle multiple types of skills. I suspect they&#8217;re going to be more generalist. The edges of the role will blur into the roles around it. A product manager is able to do a bit more marketing and a bit more engineering.</p>

<p class="wp-block-paragraph">That applies almost all across the way. Finance people are probably able to do a bit more legal than they were before. They&#8217;re able to understand the legal frameworks we have internally with agents and that&#8217;s great. I don&#8217;t think that changes the roles themselves. It may make teams a bit broader. I do agree with Zuck&#8217;s general direction that organizations will become a broader triangle, a fatter, wider triangle. The companies will get wider and hence less deep.</p>

<p class="wp-block-paragraph">Broadly that&#8217;s a true direction. Do you go to 50 person teams? Then the span of control is like three people. The organizational depth is like three or something. If you multiply them by 50 at each level, if there are two and a half thousand people with two levels of reports, I would question that. That&#8217;s probably not an average. I don&#8217;t know about this term, “measurers.” I don&#8217;t know that anybody could sit around in a knowledge work job and say, &#8220;My role, my purpose is to measure things. I just walk around with a ruler and I&#8217;m like, &#8216;That&#8217;s a foot.'&#8221;</p>

<p class="wp-block-paragraph">I know there are a lot of jobs where — I know what Matthew Prince is saying — that becomes the effective output of a role. We&#8217;re measuring it for a purpose, I would believe, and we are going to work out how to make that more scalable. My probable way of looking at it is a little bit different. There are two types of jobs. If you want to simplify an organization, there are supply-constraint and there are demand-constraint jobs inside a business. Input bound and output bound.</p>

<p class="wp-block-paragraph">But what is the constraint on a job? Look at a marketing or a technology function, a creative function versus a legal or a customer service function. Legal and customer service are input bound. If I deploy a lot of AI, I don&#8217;t suddenly get a lot more contracts. The number of contracts coming in, if I&#8217;m looking at NDAs or leases or trying to understand the company&#8217;s legal position in certain areas, I can potentially process that work faster with AI. Through systems, I can be more efficient in how I do that. That is one set of roles that you can look at almost everything in a business process and say that&#8217;s input bound.</p>

<p class="wp-block-paragraph">I&#8217;m going to manage that differently than things that are output bound. If I think about marketing or engineering, unless I run out of roadmap items — I&#8217;ve never heard any engineering team in my history of 25 years of doing this where they say, &#8220;Actually, we&#8217;ve reached the end of the roadmap and we&#8217;d like some more ideas of what to do next, please.&#8221; Said no one building software ever that has a large customer base. Their output, their creativity is bound by their own initiation and their ability to organize groups of people and processes and everything else, which is what the Atlassian platforms do. That is their limiting factor. It is not the human ability to create ideas. It may be that you have less input bound functions and areas as a proportion of your total employee base and you have more creative output bound functions.</p>

<p class="wp-block-paragraph">How much is this human ingenuity and creativity and imagination? A possibility. That&#8217;s likely the way things shift and trend over time. That&#8217;s going to take much longer than people think. We&#8217;re big in technology. “Next year everything will be like this!” and it takes 10 years to happen, but it will happen. I think I&#8217;m very fond of this term. I keep meaning to put up a rant online about it. I&#8217;m stealing another friend&#8217;s quote here, but we used to talk about information asymmetry and how much certain people know things and that is their source of power or advantage.</p>

<p class="wp-block-paragraph">I do think we&#8217;re moving to — he said it and it really hit me like a bolt — imagination asymmetry. We&#8217;re moving from information asymmetry to imagination asymmetry where your ability to create and think is going to be far more important as a competitive advantage for your team, your job, and your business than your access to information, your control of information, your understanding of information. That part is going to be cheap. That&#8217;s what LLMs are really good at. What they&#8217;re not good at is imagining things. They didn&#8217;t decide to start Atlassian. What business has been started by an LLM? Zero in the world ever.&nbsp;</p>

<p class="wp-block-paragraph"><strong>Anthropic has run a failed vending machine for several years now. Come on.</strong></p>

<p class="wp-block-paragraph">But it requires a human to say, &#8220;Here&#8217;s what we&#8217;re going to do. Let&#8217;s fail at running a vending machine today.&#8221;&nbsp;</p>

<p class="wp-block-paragraph">They were probably sitting in front of a vending machine cursing the thing when it didn&#8217;t drop their candy bar and they said, &#8220;I&#8217;m going to do this better with AI,&#8221; which is probably the way that most of those companies think about every single problem as they&#8217;re staring at a vending machine. It required a human being to say, &#8220;Let&#8217;s go do this.&#8221; It required them to write a bunch of stuff to go create the vending machine operation code and try it. We all learned a lot as a result of this scientific experimentation.</p>

<p class="wp-block-paragraph"><strong>Let me ask you the other </strong><strong><em>Decoder </em></strong><strong>question, then I want to apply all of this to what is broadly happening to enterprise software and SaaS. The other </strong><strong><em>Decoder</em></strong><strong> question I ask everybody: How do you make decisions? What&#8217;s your framework for doing that?</strong></p>

<p class="wp-block-paragraph">Someone told me you were going to ask this question. I said, &#8220;What a broad, open-ended question.&#8221;</p>

<p class="wp-block-paragraph">I would say I make decisions by talking a lot. That&#8217;s what people internally would truly say. I find the need to discuss things from different angles very important. I like to let other people talk. I like to get all the information together. I do believe there&#8217;s obviously a time where we need to stop and just move in a certain direction. The more important part for me, rather than how I make decisions, is I really like to explain decisions to people. At Atlassian we have a value: We’re an open company, no bullshit. I tell people all the time that does not mean transparency. We don&#8217;t owe you as an employee all of the details behind every decision. All the sausage making is not useful. It&#8217;s overwhelming to people. It doesn&#8217;t help us move fast.</p>

<p class="wp-block-paragraph">We <em>do</em> owe employees clarity on why we are making a decision and an explanation of said decision. That&#8217;s one of the most important things managers can do for training, for helping their talent grow is not, &#8220;We&#8217;re going left,&#8221; but, &#8220;We thought about it. We looked at the different options. We considered straight, right, and left. Here are the pros and cons. We&#8217;re going left. This is the reason why we&#8217;re going left.&#8221; Often people don&#8217;t do that because people don&#8217;t like the decision. I say that all the time. When you talked about our talent mix changes in March, we had to make a lot of hard decisions to run this business. I want to make sure that we are always explaining those decisions to people in the clearest and simplest way we can, why we&#8217;ve made a decision and what the decision is without any dressing.</p>

<p class="wp-block-paragraph">I really don&#8217;t like these corporate emails where I read the whole thing and think, &#8220;So what are you saying exactly? You&#8217;ve got a lot of words here.&#8221; I say, &#8220;Here&#8217;s what we&#8217;re doing. We need to change our skill mix. Here&#8217;s why. You should have the right amount of empathy to explain decisions, especially hard ones, but you also should not expect people to necessarily like it. We make a lot of hard decisions where I&#8217;m sure for 60% of the company, 7 percent of the company think it&#8217;s a great decision and 40 percent think it&#8217;s a terrible decision. We build trust as leaders by explaining our decisions and being clear about why we&#8217;ve made it and how we&#8217;ve made it. Hopefully we improve decision making. I always say decisions get to my desk when they&#8217;re presidential decisions. I think it was Obama that called it that, where it&#8217;s 51 to 49, that&#8217;s why it made it to my desk.</p>

<p class="wp-block-paragraph">If it was 90% certain what we should do, it should not have made it to my desk in the first place. I only get hard decisions. That&#8217;s a well-operating company. Any leader should be in that situation. If it&#8217;s an obvious decision, why did it make it to you? That then requires more thought and more explanation about those decisions. That&#8217;s probably the most important part than any framework we use to make them.</p>

<p class="wp-block-paragraph"><strong>Let me put all of this under some pressure. You&#8217;ve described Atlassian as a platform, and a lot of an organization&#8217;s decision-making and data and capabilities are in that platform. “What are we going to do next? How are we going to do it? Is it working?”</strong></p>

<p class="wp-block-paragraph"><strong>The entire point of the SaaSpocalypse was that we don&#8217;t need your beautiful user interface. We don&#8217;t need your design surfaces or congruence of design across products. All we need is your data. If I unleash Codex upon your data store, it won&#8217;t even matter that it&#8217;s the same platform. You can have 15 different vendors and the AI will create itself some middleware and read and synthesize all the data and that&#8217;ll be great. Actually your business can leap ahead in meaningful ways.</strong></p>

<p class="wp-block-paragraph"><strong>My favorite example of this from a previous era was I always had Daniel Dines from UiPath on the show. Instead of modernizing your healthcare billing system, he would just build robots that would use Windows 3.1 for you. This is a very early version of what I think every AI company is selling right now, which is, “Instead of modernizing your backend and spending all that money on a migration, our robots will just use your horrible old databases and present to you a new user interface.” That&#8217;s one version of SaaSpocalypse.</strong></p>

<p class="wp-block-paragraph">It is.</p>

<p class="wp-block-paragraph"><strong>I see it coming for a lot of businesses. How do you expect to change all of Atlassian against that? Because a lot of what Atlassian sells is upgrade, upgrade the whole platform, use one product and use all the products, use the whole platform, modernize your entire business. The other answer is that it&#8217;s like $200 a month and you can just tokenmaxx your way into the future.</strong></p>

<p class="wp-block-paragraph">There are a lot of different parts of that answer. You&#8217;re talking about the headless world, I guess. I say that headless is brainless. It is literally the same thing. It is submission in slow motion to do such a thing, if you&#8217;re a software vendor. I say that very carefully because again, it&#8217;s one of these answers that requires nuance. We have one of the most-used MCP servers in the world. We&#8217;ve just shipped a giant upgrade to it, rewritten it from scratch. It is massively used on a daily basis by millions of people and it&#8217;s amazing. [Along with] MCP servers, we&#8217;ve shipped three or four CLIs that are also used incredibly heavily.</p>

<p class="wp-block-paragraph">The ability to have inter-operation of tasks is very, very important for customers to get jobs done. I totally agree with that. However, people who use our MCP server and our CLI actually grow faster. They create more issues in Jira, they grow their seats faster. We&#8217;ve said this on public earnings calls, I think it&#8217;s like at least 5% faster. They grow their ARR at twice the rate of customers who don&#8217;t use our CLI and MCP servers. The customers using these things are growing their Atlassian spend faster than they have before. That world I totally believe in.</p>

<p class="wp-block-paragraph">When I hear the word “headless,” though, I think that is the only world that we&#8217;re going to exist in. We just sell an MCP server. That is the brainless part about it because then your software really has no value. If you truly just have a database, fine. If your interface sucks, and I think a lot of enterprise software has horrible, horrible, horrible interfaces—</p>

<p class="wp-block-paragraph"><strong>This is why I ask all the enterprise CEOs if they use their own products. It&#8217;s really asking, “How badly does your interface suck?”</strong></p>

<p class="wp-block-paragraph">I&#8217;m a big fan of recording the Loom and saying, “Guys, this doesn&#8217;t make any sense.” If you do that, that yak-shaving over and over again, you end up with amazing interfaces and that&#8217;s why tens of millions of people wake up to our software.</p>

<p class="wp-block-paragraph">The investment in design and experience that I talked about is the antithesis of that. The world is very different than those views. We&#8217;ll see in a few years time who&#8217;s right. The way the Atlassian platform works is not to be a single platform. I am probably the only CEO that goes to customers, massive large-scale customers, and says, &#8220;Do not centralize everything on my platform.&#8221; I do not believe that is a viable strategy for a CIO. I don&#8217;t think it is.</p>

<p class="wp-block-paragraph">Our platform is highly connected. It always has been. One of the things that Jira, Confluence, Trello, and the Service Collection do is interact with many, many, many, many other applications. You look at any work item in Jira that&#8217;s been going for a while, it is full of links to Workday and Salesforce and ServiceNow and Figma, links to source code, links to Google Drive and Teams. Links are what build our context graph. The reason we have the best context graph in the world is that we have a lot of links to start with and we have had a 10-year history of having to understand how to be collaborative with other applications.</p>

<p class="wp-block-paragraph">Our applications are by nature highly connected to the rest of your IT world, the rest of your technology world. We don&#8217;t want to be a control tower. It&#8217;s a stupid analogy. Every CIO has been told, &#8220;Just trust us. We&#8217;ll deal with all the problems.&#8221; It&#8217;s never worked. I don&#8217;t think it ever will. The reality of technology is you&#8217;re going to have more—</p>

<p class="wp-block-paragraph"><strong>Once you add AI to the mix, maybe it&#8217;ll work this time.</strong></p>

<p class="wp-block-paragraph">No.</p>

<p class="wp-block-paragraph"><strong>This is the thing that is being sold: You have now a powerful intelligent orchestration layer that will finally realize the dream.</strong></p>

<p class="wp-block-paragraph">Three parts snake oil, two parts bullshit. The reality is it will help all the applications if built well to work better with each other. There&#8217;s no doubt. Look at Figma and Atlassian. We have a deep partnership. We use each other&#8217;s MCP servers a lot, and we can build better solutions for marketing teams and designers and technology teams between the two platforms than we ever have been able to before, because we can understand each other&#8217;s data in ways that we never have been able to before, and we can solve workflows on different ends.</p>

<p class="wp-block-paragraph">If you&#8217;re sitting in a deep design, you&#8217;re sitting in Figma. It&#8217;s a visual experience. If you need that to be tied to work and then understand how to find that, that moves back into our world and we want to make those journeys as seamless as possible. We want to be not a control tower. We want to be a subway station that is highly connected. We want to be Union Square. We want to be the town square. We want to have a lot of lines going through us and we want to make that experience for our customers the best that they can.</p>

<p class="wp-block-paragraph">I think 98% was our stat on the earnings call. More than 98% of people using our MCP server also use the user interface, and that is not changing. The ability to do work faster doesn&#8217;t mean I just stop using it. If you invest and have a good interface and experience and you&#8217;re solving higher level problems, if you look at the features we&#8217;re shipping around agentic uses, how do these harnesses — Claude, Codex and everything else — work inside the Atlassian world and vice versa?&nbsp;</p>

<p class="wp-block-paragraph">Now, one world is I open up Claude. I say, &#8220;Go work on this work item.&#8221; It uses our MCP server to go and get the work item. It uses our teamwork graph to go and get all the context around the work item that is necessary and related, and that gives it the best chance of doing that job the cheapest way possible. That is certainly a way that people are going to work and Claude&#8217;s going to move the work item along to the next stage. Awesome.</p>

<p class="wp-block-paragraph">There are a lot of other people who start in Jira and will say, &#8220;Send this work item to Claude.&#8221; On the board, it tells them the work item&#8217;s running and going. They&#8217;re in an interface that is built for the task, to go back to the saw and hammer and screwdriver analogy. It&#8217;s built for the task they&#8217;re doing. It needs to understand, &#8220;Claude needs your attention&#8221; inside of Jira. You can open Claude, say you need to do it, send it off.</p>

<p class="wp-block-paragraph">Most people don&#8217;t use Claude. Most people don&#8217;t use Codex. Every customer I go to has a whole bunch of harnesses running. They&#8217;re going to have internal ones they&#8217;ve built. They&#8217;re going to have two, three, four vendors. Most people aren&#8217;t making a choice. They&#8217;re all amazing. They&#8217;re all leaping over each other in progress. Our job is to bring all that together into a coordinated surface, to understand your agentic sessions, your human sessions, your work, and to connect all of your enterprise applications into a giant graph and give you phenomenal answers across the whole thing.</p>

<p class="wp-block-paragraph">That requires a lot of interface investment. That is hard. That takes time. That takes great design and experience folk. That takes taste-oriented product managers and engineers. That is a non-trivial challenge, and I do think a lot of people are avoiding that challenge, and I don&#8217;t think it&#8217;ll end well for them. I don&#8217;t think the world is going to live in a CLI as an end tool.</p>

<p class="wp-block-paragraph"><strong>You don&#8217;t think the chatbot is the final user interface?</strong></p>

<p class="wp-block-paragraph">I don&#8217;t think chatbot is the final answer, no. We learned this in 1970 with the CLI. We don&#8217;t know. We&#8217;re all learning what the future interface is. It doesn&#8217;t mean that chat&#8217;s not going to be a part of it. It&#8217;s just, “Where does this world work?” You talked about Dia. Dia is a good example where we&#8217;re trying to build an AI-driven experience for knowledge workers that is based in the world they understand and still magical and different, not based in taking them out of the world they understand to a chatbot.</p>

<p class="wp-block-paragraph"><strong>So Dia is the browser. You acquired a company called The Browser Company</strong>. <strong>We </strong><a href="https://www.theverge.com/24247369/the-browser-company-ceo-josh-miller-arc-google-chrome-ai-search-web-decoder-interview"><strong>spent a lot of time with The Browser Company</strong></a><strong> when they were working on their products. At first they were building a consumer product. Then the notion that what they were building was more like an operating system came into focus as we covered Dia in their product strategy.</strong></p>

<p class="wp-block-paragraph"><strong>Most of those conversations and most of that coverage — most of which was done by my colleague David Pierce — was happening simultaneously with Google search traffic dropping and the very notion of the browser as an information document viewer was changing in big ways. If you think the homepage of Chrome opens to Google and that&#8217;s going to take you to a bunch of webpages, Google actually has a lot of ideas in between there that is changing traffic on the web.</strong></p>

<p class="wp-block-paragraph"><strong>And yet at the same time, the web as an application environment is a thing that can make AI agents vastly more capable because the applications all live somewhere that they can go address them. It was obviously explosive at that time. As you and I are talking, it&#8217;s like a week or two into Meta launching Muse. The power of Muse is that Mark Zuckerberg has given everybody 8GB of RAM and</strong> <strong>8GB of storage in the cloud with the web browser.</strong></p>

<p class="wp-block-paragraph"><strong>Now you have an agent, they can just go use a web browser for you. This is very powerful and Amazon is furious about it and has blocked this web browser. Do you have Dia because you need to control the application layer, or is it something bigger than that?</strong></p>

<p class="wp-block-paragraph">No, no, no, no. Two things are important to understand. When you get technological disruption, one thing that happens is that we all move up the interface stack a level. There are not a lot of people competing about DOS or operating systems anymore. In the modern internet world, one way to move up the interface stack is to move towards the browser. Features that were inside of applications move to being inside of the browser as we increasingly learn and operate that way.</p>

<p class="wp-block-paragraph">Second, the biggest thing that&#8217;s changed — Usually what happens is that people&#8217;s habits change. Knowledge workers, you, I, everybody spend 80% of our lives in a browser, but we&#8217;re not reading articles all the time. We are sometimes. We&#8217;re not reading webpages, we&#8217;re using applications. We&#8217;re using Gmail and Google Calendar and we have Slack open. We&#8217;re using the Atlassian platform, all of our applications, and Salesforce, and we&#8217;re watching videos like Loom and we&#8217;re interacting with those videos back and forth. That set of tabs is no longer a set of webpages. It is a set of documents and applications that have massive power underneath them.</p>

<p class="wp-block-paragraph">We&#8217;re trying to rebuild the web browser in a totally new form for knowledge workers who live in applications who have their browser open 80-90% of the day as their front surface area, and they want a better way of managing those applications and getting work done across those applications. The browser has some incredible power to be able to do that.</p>

<p class="wp-block-paragraph">It requires us to understand SaaS apps very deeply, which we do. It requires us to understand enterprise security very deeply, which we do. It requires us to not chase the consumer audience. Chrome and Safari are built the way they are because they have to cater to everyone from five-year-olds to 100-year-olds, who are doing fewer work-related knowledge tasks and are doing more browsing and entertainment and other tasks. That doesn&#8217;t mean that someone who&#8217;s a knowledge worker in a corporate job isn&#8217;t looking at YouTube or Facebook sometimes, but it&#8217;s not the purpose of their job. We believe we can build a better browsing experience, a better work experience.</p>

<p class="wp-block-paragraph">One of the pitches we had for the product is we&#8217;re not building a browser, we&#8217;re building a doer. It&#8217;s a totally different thing. We&#8217;re helping you do things. We&#8217;re not helping you browse passively, and hence why there are tabs and split screens and pin tabs and groups and AI and dynamic tab groups. Live tab groups as we have of the documents you have is a great example.</p>

<p class="wp-block-paragraph">Our documents live tab group in Dia shows you the documents. It will automatically open and close tabs if you want to think about it that way, for you across any content application, Google Drive, Confluence, SharePoint. Any application you use that has documents, if someone comments or shares a document with you, the tab automatically gets opened by your web browser. And if you&#8217;re done with it somewhere else, it automatically gets closed by your web browser because that is the set of documents you’re currently working on. Same for pull requests or anything like this.</p>

<p class="wp-block-paragraph">Then we add AI over the top. AI lets us change how we use these knowledge applications in insane ways. The browser has your entire history of what you&#8217;ve done. It has skills, it has an ability to run AI. You can use Dia to make Minesweeper, and you can use Dia to make Minesweeper out of the tasks that you did in the last week. It&#8217;ll go start a computer underneath the browser. It&#8217;ll run a bunch of code generation. It&#8217;ll create an application for you that plays Minesweeper based on the tasks you have completed in the last week. Now, I don&#8217;t think that&#8217;s a very useful application, but the fact that it can do it is amazing.</p>

<p class="wp-block-paragraph">The most popular feature of Dia is the Morning Brief. People are blown away and often suspicious about how we can understand what you need to do today with a fidelity and a design quality and an experience that makes it a joyful experience when it pops up every morning. Mine opened about 45 minutes ago. That is a design challenge.</p>

<p class="wp-block-paragraph">That is an amazing team of designers that are thinking about our most-used application surface area and reimagining it for knowledge workers and for the AI era simultaneously, with access to every SaaS application that you have open on your computer in a way that corporate security is going to say, &#8220;This is a good idea and I trust it.&#8221; That is the mission that we embarked on a year ago, that The Browser Company embarked on three years ago, and it&#8217;s usable today. It&#8217;s coming out on Windows any day now, it&#8217;s in beta on Windows, general availability is very soon, and it&#8217;s used on the Mac by a huge number of people on a daily basis and only increasing.</p>

<p class="wp-block-paragraph"><strong>Like I said, we&#8217;ve been covering that product for a long time. I&#8217;m glad it found a home with you all.</strong></p>

<p class="wp-block-paragraph"><strong>Let me just push you a little bit on moving up the stack to the next level of user interface. You could argue that already happened with web browsers. Windows was disrupted by the very presence of the web browser. The iMac was only successful because the most interesting thing you could do with a computer at that time was go on the web. The presence of the web browser on the Mac allowed a bunch of applications to move away from Windows binaries to being web apps and then cloud apps and now productivity apps in the cloud.&nbsp;</strong></p>

<p class="wp-block-paragraph"><strong>The web as an application environment is probably more vital and important than ever before. It is the thing you&#8217;re describing. It&#8217;s where all the applications live and a custom web browser designed to do work is very important. At the same time, I would just say, didn&#8217;t that already happen? Are you actually moving up the stack or are you just building a more custom web browser, or is AI changing that in some other way?</strong></p>

<p class="wp-block-paragraph">AI is changing that. AI is giving us the ability to help you understand what work you have to do, not just your browsing history. One of the most powerful things about AI that people don&#8217;t broadly understand is… An LLM&#8217;s ability to generate content is well known. I can say, &#8220;Tell me a dad joke,&#8221; and it spits one out. It streams out tokens.</p>

<p class="wp-block-paragraph">What is more important for application vendors like us, people who are trying to make tools and products and solutions for customers, is the ability to read text, not write it, but read it, because we can understand meaning for the first time ever. We can understand what a page or a comment or a piece of text is about. Then we can make application-level choices, which we never could do beforehand. Word didn&#8217;t know what document you were writing. When it said, &#8220;It looks like you&#8217;re writing a letter,&#8221; it was really shithouse and it was a terrible experience. Now it can actually tell with super high fidelity, &#8220;Are you writing a letter, a PhD? Is it a high school essay or a university essay?&#8221; It can adapt and change its interface.</p>

<p class="wp-block-paragraph">The ability of Dia and AI is to understand what it is that you are browsing, what it is that you are doing, to be able to reach into applications to get content and to pull it back to give you tools to manage your day. The Morning Brief looks across your calendar and your messaging tools and your document tools to tell you what it is you have today in a very intelligent manner, the way it would be if you gave me all your content and said, &#8220;Spend the days.&#8221; Now it reads millions of words in order to generate that and it has a lot of smarts to give you a very simple experience of the most important things you need to do today that are totally different from anybody else on the planet.</p>

<p class="wp-block-paragraph">That requires a lot of AI to do and it requires connections to all of your SaaS apps. The browser&#8217;s logged into all those apps so it can do that. It happens locally, it doesn&#8217;t happen in the cloud, it happens on your machine. That is something that we could never do before to understand, &#8220;Of these 10 documents you looked at yesterday, here&#8217;s the one you need to do today because I know in your calendar you got to do this tomorrow, you got to do these things. This is the most important thing for us to do today, and let me help you get started on that task. Let me draft some notes for you. Let me help you with that document. Let me help you do things.&#8221; That is something that was never ever possible beforehand.</p>

<p class="wp-block-paragraph">Lastly, it understands the people you interact with. People are left out of so many of these conversations and equations. You can think of Dia as having a mini CRM that is constantly updated based on your browsing habits. It&#8217;s a weird analogy, but it&#8217;s effectively what it&#8217;s doing, one of the many things it&#8217;s doing inside the browser, which is why its answers are so good. It knows that you and I don&#8217;t know each other very well. It knows I know my head of engineering extremely well. If that person asks me for something, because it&#8217;s maintaining a constant context graph of people relationships across every single one of your SaaS applications into duplicating and normalizing and using AI, all of that helps to understand what tasks are actually important to me.</p>

<p class="wp-block-paragraph">It can look at LinkedIn and see who you are and say, &#8220;That interview prep you got to do today, you should put that up your stack. Nilay’s an important person.” It does all of that for you, and help you-</p>

<p class="wp-block-paragraph"><strong>Can you put that in the Dia system prompt so people know when they come to talk to me? Just hard code that in there, you got to prioritize.</strong></p>

<p class="wp-block-paragraph">We&#8217;ll see if we know some people. But it&#8217;s hard, and the experience, none of that should need to be known by somebody using Dia. The experience should just be a beautiful, joyful way to start your day. We want to leave you with more sense of calm, control, comfort about your day, not stress about AI. Leave that to us to do really well and we just give you the answers that you need from your tools and applications.</p>

<p class="wp-block-paragraph">It also does not mean you use less of those tools and applications. I don&#8217;t use Dia and stop using Slack. I don&#8217;t use Dia and stop using Confluence. It&#8217;s helping me understand which thing I need to do next by understanding what&#8217;s inside those things. By cross-referencing with my LinkedIn and my Salesforce and my Microsoft Teams conversations and meeting transcripts, but it&#8217;s doing that all for me in the morning and during the day to be able to say, &#8220;Here&#8217;s what you have to do next. Here&#8217;s the most important thing,&#8221; and providing an interface to allow me to organize and group those tasks in ways that hopefully are bordering on joyful. They&#8217;re beautiful and simple experiences and there are so many lovely touches in Dia that just make it a joy to use every day. We&#8217;re pushing that mission really hard.</p>

<p class="wp-block-paragraph"><strong>Can I add a wild card? It seems very obvious to me that you have a very clear view of how AI should work in enterprise and how work should get done using your tools, your tools enhanced by AI, your tools expressed in your browser. There&#8217;s focus there, and I appreciate that.</strong></p>

<p class="wp-block-paragraph"><strong>On the other side of the house, on the consumer side, my argument has been that reason people hate AI and they&#8217;re mad about it is a little bit that the doomers have said there&#8217;s a 10% chance we&#8217;re all going to die and all of our jobs are going away, but there are also no great products. There&#8217;s not as much coherence and focus as I&#8217;m hearing from you in the enterprise context. Do you think that there&#8217;s some great consumer AI product in the offing that has the kind of focus that you have in enterprise? Because that seems like the missing piece for me.</strong></p>

<p class="wp-block-paragraph">Yes and no. Yes, if you look at the history of technological disruptions, the products that came through the disruption often aren&#8217;t linearly related to the disruption. If you think about the smartphone era — and we all pick up our smartphones 100 times a day, don&#8217;t tell me you don&#8217;t. When the iPhone came out, we were all excited by little bits and pieces. We did not think, man, that camera thing&#8217;s going to lead to this Instagram phenomenon. We did not think the GPS is going to lead to Uber and so I can take transportation. The products that came as a result of the technology shift.</p>

<p class="wp-block-paragraph">The iPhone is an amazing business, don&#8217;t get me wrong, but the services and changes to life didn&#8217;t come from the iPhone. They came from the apps that it enabled, like Uber and Instagram and whatever else you like on the mobile phone. It can be a game, it can be anything. Those take a while for people to play with the form factor to understand the bits. Uber didn&#8217;t come along until the iPhone 6, because all it needed was to get better and then someone said, &#8220;Wait, we can take a car with a phone and it&#8217;ll just show up?&#8221; Yeah, we can show you where the car is and we can build enough trust and we can build a whole service layer.</p>

<p class="wp-block-paragraph">I suspect one part of it is in AI, we need to keep playing, and I know the Muse team pretty well. That&#8217;s an amazing example of an application. There are many, many more of these things. There&#8217;s a company that one of my kids loves called Tolan which makes these Hollywood AI agent chatbot things with personality. Someone from technology would say, &#8220;Ah, that&#8217;s just OpenClaw with some skin on it.&#8221; Kids say, &#8220;This is a character that I can interact with.&#8221; It&#8217;s an amazing psychology Hollywood game character. These sort of applications we&#8217;re just starting to see.</p>

<p class="wp-block-paragraph">It&#8217;s going to be an incredibly exciting five years of those sets of applications. I suspect it takes way longer than we think to understand, get to GPT-6, get to understanding memory and harnesses and putting all these things together. It probably won&#8217;t be OpenClaw, it&#8217;ll be some version of how an agent surfaces in a certain area of life. So yes, the products are still coming in the consumer space.</p>

<p class="wp-block-paragraph">Secondly, I think the “no” part of the answer is that AI is not a product, it&#8217;s a technology. It&#8217;s a piece of technology. If it just makes everything about your life a bit better, you won&#8217;t even notice you&#8217;re using AI, and actually, that&#8217;s the beauty of it. You can use Dia all day long and not realize how much AI it&#8217;s doing. Just like the Morning Brief thing, it&#8217;s really good. I look at it every morning, it&#8217;s one of the most highly engaged features we&#8217;ve ever built. And it just tells you, &#8220;Here are the three things I think you need to do today. Here&#8217;s what your day looks like. You want me to help you prep for this thing?&#8221; And you say, &#8220;Yeah, help me prep for that thing.&#8221;</p>

<p class="wp-block-paragraph">You don&#8217;t need to know it&#8217;s AI. We don&#8217;t tell you it&#8217;s AI. We&#8217;re purposefully not trying to hide it, it’s not secret, but you need to have a great experience. You don&#8217;t care there&#8217;s an LLM and tokens and gateways and massive amount of technology going on behind the scenes. You just want to know what the three things you have to do this morning are. And if you build trust in it, that&#8217;s great.</p>

<p class="wp-block-paragraph">The hard part when you mention the data centers and stuff is that people want those experiences and they&#8217;re going to be very joyful and very contented and more calm and happy about the experiences they&#8217;re getting. They&#8217;re just not going to be using AI. I tell this to people here all the time, every time you take a photo on the iPhone, there is an insane amount of AI processing going on to make that photo look good. Insane amount. And photos look amazing on my phone compared to what they did 10 or 20 years ago. Do I need to know that? Nope. I want to point at my kid, snap a photo, and I want it to look good. That&#8217;s great technology, when it disappears. That&#8217;s what it should be in the enterprise or for consumers. There&#8217;s no reason people in the enterprise should put up with shitty technology.</p>

<p class="wp-block-paragraph">That&#8217;s consistent, but it&#8217;s not going to be necessarily knowable that I&#8217;m using AI. It&#8217;s just going to be an amazing product experience like Dia that says, &#8220;Here are the three things you got to do today.&#8221; And it gets it right.</p>

<p class="wp-block-paragraph"><strong>Even beginning to describe the conversations I&#8217;ve had with the Apple camera team about the use of AI on those photos is a full other hour of this show that we do not have time for.</strong></p>

<p class="wp-block-paragraph"><strong>Mike, this was a great conversation. What&#8217;s next for Atlassian? What should people be looking for?</strong></p>

<p class="wp-block-paragraph">We have a massive set of announcements in, I&#8217;m scared to say, a bit over a week, 10 days. We have a biannual conference, our Team 26 EU in Amsterdam in 10 days’ time, announcements in every collection. You will no doubt see lots of AI features that are magical and disappear. You don&#8217;t need to know that you&#8217;re using them. Dia launches, Teamwork Collection launches. A lot of fantastic Loom features. We haven&#8217;t talked about Loom, massive in the AI era. We have so much on Loom&#8217;s agentic use, some of which has been online. Kudos to the partnership with the Cursor team, we built some amazing Cursor and Loom features. Really exciting stuff coming up in 10 days’ time.</p>

<p class="wp-block-paragraph"><strong>We will have to have you back very soon to talk about what happens with enterprise software in just one year’s time, because I&#8217;m confident it&#8217;s going to change. Thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="wp-block-paragraph">Thank you for having me. Thanks, man.</p>

<p class="wp-block-paragraph"><em><sub>Questions or comments? Hit us up at decoder@theverge.com. We really do read every email!</sub></em></p>
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