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Palmer Luckey Wants to Be Silicon Valley's War King | The Circuit — Transcript

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  1. 0:00[Music]
  2. 0:06I'm driving Palmer luy's personal
  3. 0:07warship and we're all about to
  4. 0:10die sorry
  5. 0:15guys so this is a mark 5 Special
  6. 0:17Operations craft that I purchased from
  7. 0:19the Navy are you sure I'm not going to
  8. 0:21flip the boat y you're going to be fine
  9. 0:24it's the fastest boat that the Navy ever
  10. 0:25built it was designed specifically for
  11. 0:28Navy SEAL insertion and extraction
  12. 0:30missions it runs really fast and it's a
  13. 0:32lot of
  14. 0:35fun while this boat may be part of the
  15. 0:37Old Navy lucky is trying to bring
  16. 0:39Silicon Valley speed and Innovation back
  17. 0:42to the Pentagon well some of the United
  18. 0:44States technology is very bad it's also
  19. 0:47extremely expensive and not necessarily
  20. 0:49adapted to the types of conflicts we're
  21. 0:51going to see in the future the United
  22. 0:52States has a lot of investment in Legacy
  23. 0:54weapon systems that are not necessarily
  24. 0:57having China quaking in their booze
  25. 1:03he's betting his new age defense company
  26. 1:05can take a slice of the pentagon's $850
  27. 1:07billion budget and reinvent how they do
  28. 1:10business from the outside
  29. 1:13in that is if they can beat the
  30. 1:16incumbents and convince the top brass
  31. 1:18that a billionaire founder sporting
  32. 1:20Hawaiian shirts is just as serious about
  33. 1:23rebooting America's Arsenal as they are
  34. 1:25you're not the typical Silicon Valley
  35. 1:27founder wearing a black turtleneck nor
  36. 1:29are you walking around and talking like
  37. 1:31a buttoned up defense contractor CEO
  38. 1:33like how does that play I am a little
  39. 1:35bit of a caricature uh but it's because
  40. 1:37I just haven't changed it was really
  41. 1:39easy when we started andall to say
  42. 1:41conflict is over we're living at the end
  43. 1:43of History this idea of putting our best
  44. 1:47brains towards things that can kill
  45. 1:50people is a waste of talent and a waste
  46. 1:52of money and unethical and that's not
  47. 1:55what anyone's saying anymore the war in
  48. 1:57Ukraine and China's rapid military ation
  49. 2:00have renewed fears that the US defense
  50. 2:02industry isn't modernizing fast
  51. 2:05enough that's brought a controversial
  52. 2:07handshake between Tech and defense back
  53. 2:09out in the
  54. 2:16[Music]
  55. 2:21open the military has a long and storied
  56. 2:24history with the tech industry
  57. 2:29[Music]
  58. 2:31post World War II billions in defense
  59. 2:34funding transformed California into
  60. 2:36Aerospace and Technology boom
  61. 2:38towns the first company to manufacture
  62. 2:41microchips that guided missiles
  63. 2:43satellites and helped Silicon Valley get
  64. 2:45its name was funded by the
  65. 2:48Pentagon founders of that very company
  66. 2:50pioneered modern-day venture capital and
  67. 2:53helped cultivate a vibrant tech
  68. 2:56industry today there's a new generation
  69. 2:58trying to bring back a America's past
  70. 3:01proven by Palmer luy's collection of
  71. 3:03unusual Vehicles you sure it still works
  72. 3:06it should it
  73. 3:07[Laughter]
  74. 3:14should
  75. 3:21yeah so this is a 1967 Disneyland
  76. 3:24autopia uh designed by Bob gur and Walt
  77. 3:28Disney as far as I know mine is the only
  78. 3:30complete autopia that is outside of the
  79. 3:33parks mine has the original Mechanicals
  80. 3:36original gear boxes original Wheels the
  81. 3:39whole deal when I got it though
  82. 3:44uhoh technical
  83. 3:48difficulties got a got got a flaad
  84. 3:51screwdriver oh there we go look at
  85. 3:55that we got to get
  86. 3:58moving all right there we go back in
  87. 4:01back in business so are you sure this is
  88. 4:03street legal we're on the street aren't
  89. 4:10we you grew up in Long Beach right not
  90. 4:14too far from here that's right close to
  91. 4:16the port and it was a place with a lot
  92. 4:18of car culture a lot of Aerospace
  93. 4:21culture a lot of Defense
  94. 4:27activity I grew up watching the the
  95. 4:29Marine Corps practice right offshore in
  96. 4:32their helicopters watching Navy ships do
  97. 4:35exercises and uh you know get it gets in
  98. 4:38your brain and it doesn't
  99. 4:40[Music]
  100. 4:42leave Southern California unlike a lot
  101. 4:45of places is a place where almost
  102. 4:48everybody knows someone who has served
  103. 4:50in the military or has a family member
  104. 4:52who served in the military when that's
  105. 4:54the case because of the density of
  106. 4:56military population here you don't
  107. 4:57really have the crazy political ideology
  108. 5:00that you get in places like the Baran
  109. 5:02but when I started andril of course it
  110. 5:05was a totally different world uh defense
  111. 5:07was not cool and it was definitely not
  112. 5:09the hottest
  113. 5:15thing before launching andil lucky
  114. 5:18worked on virtual reality headsets in
  115. 5:20his parents garage by age 18 he had a
  116. 5:23prototype that kickstarted the modern VR
  117. 5:26movement and caught the world's
  118. 5:27attention including mark Zuckerberg
  119. 5:30Zuckerberg bought Oculus for $2 billion
  120. 5:34lucky was later ousted the thing is I'm
  121. 5:37I'm actually not nearly as political of
  122. 5:39a person as people think I am I mean
  123. 5:41people think you got kicked out of
  124. 5:42Silicon Valley yeah I got kicked out of
  125. 5:43Silicon Valley because I made a $99,000
  126. 5:45political donation the reason that
  127. 5:47people pay attention to it at the end of
  128. 5:49the day is because it's novel for a
  129. 5:51person in Tech to have supported the
  130. 5:53person who became president that year to
  131. 5:56be clear he means this guy meta disputes
  132. 6:00that lucky was fired for his political
  133. 6:01views but whatever the reason the result
  134. 6:04was a rift between lucky and the valley
  135. 6:07so he turned his attention to defense
  136. 6:09and set up shop in Southern
  137. 6:12California this my extraordinarily tall
  138. 6:16door the house was built in the 1980s
  139. 6:19and I've kept all the bones the same I
  140. 6:20think it's a pretty cool place has some
  141. 6:22good Miami Vice
  142. 6:24Vibes I've got my my 2-in uh teal shag
  143. 6:28carpet this is my fish tank it's about a
  144. 6:306,500 gallon
  145. 6:33aquarium this looks like a Dungeons and
  146. 6:36Dragons table oh no this is just my
  147. 6:38coffee table although it does have a map
  148. 6:40of our Dungeons and Dragons campaign
  149. 6:42what kind of character are you in
  150. 6:43Dungeons and Dragons I aan chaotic
  151. 6:45neutral wizard uh named nrim 5 he's from
  152. 6:49the Lost Nation of Atlantis how much
  153. 6:52success have you had with that pretty
  154. 6:54limited so far pretty limited so
  155. 6:57far I know you're a big gamer what are
  156. 7:00the connections between navigating a
  157. 7:01virtual Battlefield and a real
  158. 7:03Battlefield probably the the main
  159. 7:05similari is are some of the technology
  160. 7:06that we're applying to things like heads
  161. 7:09up displays and augmented reality for
  162. 7:11for soldiers and Airmen to allow them to
  163. 7:13see where the danger on the battlefield
  164. 7:16is it's also worth noting that really
  165. 7:18virtual reality came out of military
  166. 7:20research in the first place and the
  167. 7:22games industry and the military
  168. 7:23industrial complex have always shared
  169. 7:25kind of back and forth
  170. 7:26[Music]
  171. 7:30how'd you get interested in defense
  172. 7:32technology I briefly was able to work as
  173. 7:35a lab technician on an army project
  174. 7:38called Brave mind that it was treating
  175. 7:41veterans with PTSD using virtual reality
  176. 7:43exposure therapy and that was actually
  177. 7:44before I started Oculus I kept in touch
  178. 7:46with a lot of friends in the defense
  179. 7:47industry and what I heard over and over
  180. 7:48again is that it was broken the
  181. 7:50incentives were wrong they were being
  182. 7:51punished for doing the right thing
  183. 7:53rewarded for doing the wrong thing they
  184. 7:55made more money when they were over
  185. 7:56budget and uh that really got me worried
  186. 7:59especially in a world where we were
  187. 8:00running a new experiment as a country an
  188. 8:02experiment where for the first time in
  189. 8:04American history tech companies were not
  190. 8:06working with
  191. 8:08[Music]
  192. 8:10dood the relationship between Silicon
  193. 8:13Valley and Washington splintered after
  194. 8:15the Cold War top talent caught the do
  195. 8:18wave ditching government jobs in
  196. 8:20windowless rooms for positions at shiny
  197. 8:23Tech firms everybody used to work on
  198. 8:25Capitol Hill or the government for the
  199. 8:27military now everybody works for an
  200. 8:28internet St up the defense industry
  201. 8:31Consolidated power around five big
  202. 8:33primes to supply the military's hardware
  203. 8:36and software it's a large complex
  204. 8:38oligopoly with a strict chain of command
  205. 8:41that filters ideas through layers upon
  206. 8:43layers upon layers of
  207. 8:45bureaucracy for Tech startups looking to
  208. 8:48get a piece of the action welcome to the
  209. 8:50Valley of Death the government tries to
  210. 8:53nurture new ideas but the amount of time
  211. 8:55it takes to go from prototype to
  212. 8:57adoption puts most startups in the
  213. 8:59defense Market graveyard it seemed
  214. 9:02impossible for Outsiders to compete
  215. 9:04until SpaceX and paler sued the
  216. 9:06government claiming the bidding system
  217. 9:08unfairly favored the incumbents paler
  218. 9:11co-founder Peter Teal's Venture firm was
  219. 9:13the first to invest in andero it's no
  220. 9:15coincidence that the only two companies
  221. 9:17to break through in the last 35 years
  222. 9:20since the winding down of the Cold War
  223. 9:21really uh were both founded by
  224. 9:23billionaires it's it's it's unfortunate
  225. 9:26but it reflects the reality that we've
  226. 9:27created where this muscle we used to
  227. 9:29have as a country of turning small
  228. 9:31innovated defense companies into large
  229. 9:34scale providers of weapons uh we we lost
  230. 9:37it and the only way to bypass that was
  231. 9:39to already have made billions of dollars
  232. 9:41somewhere else as a as a country we need
  233. 9:43to do
  234. 9:45[Music]
  235. 9:50better so this is the old LA Times
  236. 9:53Printing plant it was the old LA Times
  237. 9:55Printing Press I started Oculus in
  238. 9:58Orange County and it was a place where I
  239. 10:01could hire people from all over the
  240. 10:02country when I moved up to the Bay Area
  241. 10:05it actually became a lot harder to hire
  242. 10:06people who weren't already in the Bay
  243. 10:07Area but this is a place where you can
  244. 10:10build great companies that draw from all
  245. 10:12of America not just from that one tight
  246. 10:15little isolated bubble well I was
  247. 10:17actually wondering is it is it is it
  248. 10:19hard to poach people from sort of big
  249. 10:21tech companies oh no no the way that you
  250. 10:23poach people from Big tech companies is
  251. 10:24to tell them that their career is
  252. 10:26meaningless and that they're wasting
  253. 10:28their lives on something that doesn't
  254. 10:29matter a decent trick of people when you
  255. 10:32can kind of shock them out of the Matrix
  256. 10:33being what are you doing with your life
  257. 10:35there's big problems in the world and
  258. 10:37you're not part of solving them that's
  259. 10:39been behind a lot of the people who
  260. 10:40leave big tech companies come to work at
  261. 10:46andil anderl has been clear from the
  262. 10:49get-go to come here is to build weapons
  263. 10:51and surveillance
  264. 10:53systems they started with this tall
  265. 10:56autonomous security tower that sits on
  266. 10:58borders in the US and abroad launched in
  267. 11:00the early days of the Trump
  268. 11:03presidency they've expanded their
  269. 11:05Arsenal to autonomous submarines counter
  270. 11:07drones and other robots that are cheaper
  271. 11:09to build with menacing
  272. 11:12names this is a halfs scale model of
  273. 11:14Fury which is an autonomous fighter jet
  274. 11:18that we're
  275. 11:19building this is wisp this is scanning
  276. 11:23infrared imager that's able to detect
  277. 11:25aircraft by building a 360° sphere that
  278. 11:28it integrates as
  279. 11:30scams and uh this is an electronic
  280. 11:32warfare system it can jam and hack and
  281. 11:36make sure that you're able to talk and
  282. 11:38the other guy isn't in a whole bunch of
  283. 11:40really powerful
  284. 11:42ways you're trying to run a defense tech
  285. 11:44company like a startup how does that
  286. 11:47compare to like lockie Martin and Boeing
  287. 11:50and how do you get Washington to accept
  288. 11:52that most new R&D is down on a Cost Plus
  289. 11:55basis meaning the contractor gets paid
  290. 11:56for their time their materials and then
  291. 11:58a fixed percentage of profit on top of
  292. 12:00course that incentivizes you to come up
  293. 12:03with expensive Solutions and to drag it
  294. 12:05out as long as as long as you can andal
  295. 12:08we're the opposite because we're a
  296. 12:09defense Products company that makes
  297. 12:11things that work and sell them rather
  298. 12:13than getting paid to do work uh it means
  299. 12:17that when we do something faster it
  300. 12:18helps our profit
  301. 12:22margins You're Building Products that
  302. 12:24the government doesn't even know it
  303. 12:25needs yet right very often it's pretty
  304. 12:28rare that we work on something that is
  305. 12:30consensus in the government where
  306. 12:32there's widespread belief that what
  307. 12:33we're doing is the right solution to the
  308. 12:35problem often we're building things that
  309. 12:36they've written off as not feasible or
  310. 12:39not viable there was a lot of skepticism
  311. 12:42about applying artificial intelligence
  312. 12:44to defense a lot of skeptic about
  313. 12:45artificial intelligence in general chat
  314. 12:47GPT was one of the most helpful
  315. 12:49Technologies to us because it helped
  316. 12:51convince people that AI can do things
  317. 12:53they didn't believe computers could
  318. 12:56do are we getting to a point where
  319. 12:59battles could be fought by Ai and
  320. 13:00counter AI only we're not going to have
  321. 13:03systems that are acting entirely on
  322. 13:04their own without human Direction but
  323. 13:07will we see dog fights between AI
  324. 13:09fighter jets that don't have people in
  325. 13:10them yes absolutely in fact in Ukraine
  326. 13:12there's been a variety of engagements
  327. 13:14where you had uh unmanned systems
  328. 13:16destroying other unmanned systems it
  329. 13:18seems like what's happening in Ukraine
  330. 13:20has marked a shift in in Warfare
  331. 13:23strategy what's happening in Ukraine is
  332. 13:25is fascinating because they can't afford
  333. 13:28to treat Warfare as a thing to be think
  334. 13:32tanked or as a thing to be debated in
  335. 13:35white
  336. 13:36papers they have to actually win today
  337. 13:39and that means that a lot of barriers to
  338. 13:41trying new ideas have been lifted and
  339. 13:43that's one of the reasons you've seen
  340. 13:44for example the proliferation of small
  341. 13:46unmanned armed quadcopters it's why
  342. 13:48you've seen the proliferation of a lot
  343. 13:49of really interesting counterd drone
  344. 13:51systems things that were not nearly
  345. 13:53mature enough to be deployed let's say
  346. 13:55by the United States uh but they are
  347. 13:57willing to deploy them in a very early
  348. 13:58stage maturity because they know they
  349. 14:01can't win doing things the old
  350. 14:04[Music]
  351. 14:06way the old way meant having the biggest
  352. 14:09most expensive weapon on the
  353. 14:11battlefield now it's about having a
  354. 14:13swarm of commercial technology available
  355. 14:15quickly and
  356. 14:17cheaply to that end the Pentagon
  357. 14:19recently announced the replicator
  358. 14:21program to FastTrack thousands of
  359. 14:23lowcost autonomous drones startups and
  360. 14:26Venture capitalists who historically
  361. 14:28shunned military work declared it's time
  362. 14:30to build to get in on the action the old
  363. 14:33school way of working through five six
  364. 14:35large primes and developing technology
  365. 14:38just doesn't work you have to work with
  366. 14:39the private sector to bring new
  367. 14:41technologies in big Tech firms have had
  368. 14:44more long-term success offering Hardware
  369. 14:46Ai and cloud services in exchange for
  370. 14:49billion dooll deals but there's been
  371. 14:51friction on the tech company side from
  372. 14:54Engineers who don't want anything to do
  373. 14:55with the military some tech employees
  374. 14:58have pushed back on working with the US
  375. 14:59government and the US military do you
  376. 15:01see where they're coming from
  377. 15:03fundamentally I think it's an emotional
  378. 15:04thing they came to a company to work on
  379. 15:06consumer Tech they weren't told that
  380. 15:08their work would be used for potentially
  381. 15:12violence and they don't like that and I
  382. 15:14I I empathize with that because to them
  383. 15:16it feels like a little bit of a bait and
  384. 15:21switch critics see the technology You're
  385. 15:23Building worry it could be misused on
  386. 15:25American citizens for example are they
  387. 15:27right to worry oh of course anything can
  388. 15:29be misused but like if you want to point
  389. 15:31to things that can be misused against
  390. 15:33American citizens I mean the military
  391. 15:34has a lot of guns the military has a lot
  392. 15:37of aircraft you have to have trust in
  393. 15:40the system you have to believe that
  394. 15:43democracy works and you have to believe
  395. 15:45that the right way to control these is
  396. 15:47on the policy side there are actually
  397. 15:49things I would like to build that the
  398. 15:50dod would not use and would not deploy
  399. 15:52that they do think are beyond the pale
  400. 15:54and that's the way that it should be US
  401. 15:56foreign policy and military policy
  402. 15:57shouldn't be in the hands corporate
  403. 16:02Executives the heart of ander's
  404. 16:04Technology isn't its Hardware but it's
  405. 16:09software Engineers here have developed a
  406. 16:12proprietary AI driven system called
  407. 16:14lattice that acts like an intelligent
  408. 16:16control center for the company's
  409. 16:17Hardware lce is our AI system for
  410. 16:21controlling distributed robots we're
  411. 16:23doing processing and computer vision
  412. 16:24machine learning on that data and
  413. 16:26producing an operating picture of the
  414. 16:28world so we understand the chessboard so
  415. 16:31to speak and then the autonomy can apply
  416. 16:34those very logical decisions about what
  417. 16:37to do and move forward and act so walk
  418. 16:39me through the process from
  419. 16:42identification to decision or decisions
  420. 16:44so we've got a manned crew that's going
  421. 16:46to try and fly in and land somewhere
  422. 16:48they have some Mission they need to do
  423. 16:49on the ground but there's threats that
  424. 16:51are unknown so we're going to send the
  425. 16:53autonomous systems forward they're going
  426. 16:55to try and draw out any enemy fire and
  427. 16:58with the autonomous systems you're okay
  428. 17:00if they if they die you're okay if they
  429. 17:02get taken out because that tells you
  430. 17:04more information about the the
  431. 17:06battlefield so that you can make
  432. 17:07informed decisions interesting but
  433. 17:08there's still a long way to go still a
  434. 17:10lot to build y there's the old saying
  435. 17:13Hardware is hard the United States used
  436. 17:15to be able to build things that would
  437. 17:17fly twice as fast as our adversaries and
  438. 17:19we'd be twice as fast for a decade those
  439. 17:22days are gone Hardware advantages like
  440. 17:24that are going to be quickly copied by
  441. 17:25our adversaries so a lot of the most
  442. 17:27durable advantages we build for example
  443. 17:30using software to make decisions twice
  444. 17:32as fast or 10 times as fast is a is a
  445. 17:34capability that I don't think our
  446. 17:35adversaries are close to to
  447. 17:38copying Lattis is just one example of
  448. 17:41the military's increasing use of
  449. 17:45AI the Pentagon has been developing
  450. 17:47project Maven an AI system that analyzes
  451. 17:50images from military drones and helps
  452. 17:52suggest targets Google initially won
  453. 17:55this contract in 2018 but backed out
  454. 17:57after thousands of work workers
  455. 17:59protested the deal paler Amazon
  456. 18:02Microsoft and anderl are currently among
  457. 18:04the main
  458. 18:05contributors Maven is now deployed but
  459. 18:08there are still open questions about
  460. 18:10ai's combat Readiness at the end of the
  461. 18:12day you just have to be correct and
  462. 18:14you're doing it from
  463. 18:16afar and so uh yes I would still submit
  464. 18:19that that is one of the toughest things
  465. 18:21that my organizations have encountered
  466. 18:23is that idea of distinguishing enemy
  467. 18:26from non-enemy or combatant from
  468. 18:27non-combatant and the scale of it is
  469. 18:31impressive there are concerns that AI
  470. 18:33could deepen the fog of War what do you
  471. 18:35think about that no I I super I super
  472. 18:37disagree I think AI is going to be a
  473. 18:39tool to put all the cards on the table
  474. 18:41for everyone my hope is that you're
  475. 18:43going to have dictators who make better
  476. 18:45decisions because even they have better
  477. 18:47information from AI let's use Putin as
  478. 18:49an example I don't think he would have
  479. 18:51launched this invasion in Ukraine if he
  480. 18:54would have understood what was actually
  481. 18:56going to happen remember they believe
  482. 18:57this is like a 3 days Special Operation
  483. 18:59they were going to roll in it was going
  484. 19:01to be over very very quickly if he had
  485. 19:03had a better understanding of what he
  486. 19:05had and what they had I think he
  487. 19:06probably would not have made the
  488. 19:08play there are a lot of thorny ethical
  489. 19:11questions we're talking about a possible
  490. 19:13future of self-guided bombs and Killer
  491. 19:15Robots who is liable when a human isn't
  492. 19:18in the loop the key is that a person is
  493. 19:21responsible for the deployment of those
  494. 19:22systems the existence of an algorithm
  495. 19:25cannot replace human responsibility for
  496. 19:28deploying that weapon system and it has
  497. 19:30to be a person who deeply understands
  498. 19:32the limitations of that system and who's
  499. 19:34going to be held to account when it goes
  500. 19:36wrong but or as hell and it's not going
  501. 19:37to be perfect there will be people who
  502. 19:40are killed by AI who should not have
  503. 19:42been killed that is a a certainty if
  504. 19:46artificial intelligence becomes a core
  505. 19:47part of the way that we fight Wars we
  506. 19:49need to make sure that people remain
  507. 19:51accountable for that because that's the
  508. 19:52only thing that'll drive us to better
  509. 19:54Solutions and fewer inadvertent deaths
  510. 19:57fewer civilian casualties I don't want
  511. 19:59AI to do these things but a lot of times
  512. 20:01the existing Technologies are much
  513. 20:07worse China and Taiwan how does this
  514. 20:10play out it can play out in a lot of
  515. 20:11different ways everything that Andel is
  516. 20:14working on on the R&D side is oriented
  517. 20:17towards that fight right now China
  518. 20:20believes that they can take Taiwan they
  519. 20:22believe that the United States is some
  520. 20:24combination of won't stop them isn't
  521. 20:26willing to stop them won't win if we do
  522. 20:28try to stop them they believe Taiwan is
  523. 20:30in a similar position with their own
  524. 20:32military we have to change their minds
  525. 20:34I'm probably going to eat these words
  526. 20:36but if China ends up invading Taiwan I'm
  527. 20:39going to feel like we've really failed
  528. 20:41in our
  529. 20:43[Music]
  530. 20:45mission you actually spent a lot of time
  531. 20:47in China working on Oculus headsets what
  532. 20:50do you know about China's capabilities
  533. 20:52in AI what don't you know I spent time
  534. 20:55in China back in the Oculus days because
  535. 20:57that's where we did our Manufacturing
  536. 20:58and we didn't really have a
  537. 21:01choice I deeply understand how dependent
  538. 21:05our country has become on Chinese
  539. 21:07manufacturing Chinese engineering
  540. 21:09Chinese supply chain materials it's
  541. 21:11really extraordinary how they've pulled
  542. 21:14themselves up from almost nothing to
  543. 21:16being an economic superpower and we did
  544. 21:18this too we're the ones that gave him
  545. 21:20the blueprints we're the ones that gave
  546. 21:22them the tech we're the ones that
  547. 21:24shipped it all overseas and I'm part of
  548. 21:25the problem I'm one of the guys who did
  549. 21:26it what a do you worry that China is
  550. 21:30outpacing the US on technological
  551. 21:33innovation like could the US military
  552. 21:37lose it its Edge to China well depending
  553. 21:39on who you ask China has between 50
  554. 21:43times and 300 times the military ship
  555. 21:46building capacity of the United States
  556. 21:48this is a huge problem especially if
  557. 21:50you're fighting a war where you lose all
  558. 21:51your ships and it takes you decades to
  559. 21:53rebuild they lose all their ships and
  560. 21:56they rebuild the same year this is
  561. 21:58really inarguably an area where China
  562. 22:00has outpaced the United States now they
  563. 22:02haven't outpaced us everywhere but in a
  564. 22:04lot of the areas that matter for a fight
  565. 22:07in the Pacific they are kicking our ass
  566. 22:09and the United States is not going to be
  567. 22:11able to win by following the same
  568. 22:14strategy they do we're not going to be
  569. 22:15able to build enough shipyards and train
  570. 22:18enough welders to build 300 times more
  571. 22:20ships that's off the table so we have to
  572. 22:22win with our brains despite all its
  573. 22:24Innovation andal and other defense Tech
  574. 22:27startups are still bit players in the
  575. 22:29world of military
  576. 22:30suppliers Venture capitalists plowed in
  577. 22:33a hundred billion doll between 2021 and
  578. 22:362023 but only a handful of companies
  579. 22:39have won meaningful
  580. 22:40[Music]
  581. 22:42contracts right now andal is very much
  582. 22:44in a high- growth stage we've done a lot
  583. 22:45of things that I'm very very proud of
  584. 22:47but I'm very aware of the fact that we
  585. 22:49are not a profitable business we are
  586. 22:53living on borrowed time and so I I I
  587. 22:56it's hard for me to come and feel like
  588. 22:57I've made it when I know that you know
  589. 23:00anyone can raise money from VCS buy a
  590. 23:02really big office and fill it full of
  591. 23:05people the question is are those people
  592. 23:07building the right things and will those
  593. 23:08things pay
  594. 23:14off it's not your average Newport Beach
  595. 23:16Boat no it's not is it most of my
  596. 23:19neighbors like it and a handful hate it
  597. 23:22but that's good enough we've got a mock
  598. 23:25M2 heavy barrel 50bmg machine gun have
  599. 23:28real ones that I can that I can throw on
  600. 23:30but I I I keep I keep the fake ones on
  601. 23:32most of the time one of the other cool
  602. 23:34features of the boat is these shock
  603. 23:37mounted seats you'll notice they bounce
  604. 23:40up and down so we're going to go below
  605. 23:42deck into the Navigator's
  606. 23:44room this is also where we run all of
  607. 23:46our Communications gear processing gear
  608. 23:48computer gear radio gear you've got all
  609. 23:50of your rifle racks here so that you can
  610. 23:52rack them
  611. 23:54up so these are twin MTU engines the
  612. 23:58boat's got a little over 5,000
  613. 24:00horsepower this whole thing is basically
  614. 24:03a big giant jet
  615. 24:06[Music]
  616. 24:10ski so what else do you have in your
  617. 24:12personal Arsenal oh I got a whole bunch
  618. 24:14of stuff got a uh60 Blackhawk 1985 X
  619. 24:18Marine Corp hanvey how many helicopters
  620. 24:21I used to have seven but I only have six
  621. 24:23now I do hear that you have a vault
  622. 24:26where you have every video game
  623. 24:29ever created a while ago I purchased the
  624. 24:31world's largest video game collection
  625. 24:33and I I also collect US Air Force
  626. 24:35nuclear missile bases so I put that in
  627. 24:37one of my missile bases 200 ft
  628. 24:39underground where's that oh I can't tell
  629. 24:43[Music]
  630. 24:48you all
  631. 24:50right we're going to do some turns
  632. 24:53everybody hold on
  633. 24:57[Music]
  634. 25:03all right what was that that was one of
  635. 25:05our own weeks but we're going to go find
  636. 25:06one of the other ones hold
  637. 25:11[Music]
  638. 25:16on you want to try steering I'm good all
  639. 25:20right we'll bring us down to
  640. 25:25zero so as we accelerate uh you're going
  641. 25:28to hear first the first turbocharger
  642. 25:30kicked in and then after we get at about
  643. 25:3120 knots you're going to hear the second
  644. 25:34turbocharger kick in and that's when the
  645. 25:35engine changes
  646. 25:41pitch I try a starboard turn you're
  647. 25:43going to move your stick over to the
  648. 25:44right and then watch your positions
  649. 25:47here I'm turning a
  650. 25:50warship when I say Center Center center
  651. 25:53now there you
  652. 25:55go we're going fast like the the beach
  653. 25:59is approaching all right we're going to
  654. 26:01do a a little bit of a fast stop you're
  655. 26:03going to pull on the throttle just pull
  656. 26:05pull keep going give it here we go all
  657. 26:07right leave it
  658. 26:10there there you go oh my
  659. 26:14God so am I hired
  660. 26:19no you started endural in 2017 and
  661. 26:22you've lived through Silicon Valley in
  662. 26:24the era of zerp and easy money sure what
  663. 26:27do you think about the frenzy the zero
  664. 26:30interest rate phenomenon yeah there's a
  665. 26:32lot of companies that shouldn't have
  666. 26:33existed they never should have been
  667. 26:34funded all that money went to paying
  668. 26:36people to do things that were a waste of
  669. 26:38time I know lots of young Founders who
  670. 26:41were working on crypto art nonsense and
  671. 26:46a fifth delivery app or a 10th delivery
  672. 26:48app and now that money has become harder
  673. 26:50to come by you know what they're working
  674. 26:51on they're working on energy they're
  675. 26:53working on National Security they're
  676. 26:54working on transportation and uh I I
  677. 26:57think that I I see people working on
  678. 26:59real problems because the market forced
  679. 27:02them to and that's a good thing in my
  680. 27:04opinion so it's time to build it's time
  681. 27:06to
  682. 27:11built the war in Ukraine it's been 2
  683. 27:14years now how are we going to look back
  684. 27:16on it well I think that we're going to
  685. 27:18look back on it as one of the best
  686. 27:21examples of the hubis of the modern era
  687. 27:24thinking that we lived at the end of
  688. 27:25History the end of conflict the large
  689. 27:27scale War was a thing of the past that
  690. 27:29artillery is irrelevant that Manpower is
  691. 27:31irrelevant that sternly worded letters
  692. 27:33from the United Nations mean anything at
  693. 27:35all to expansionist dictators like Putin
  694. 27:38or X that's I think going to be the
  695. 27:40legacy of this
  696. 27:42fight is the US government working fast
  697. 27:45enough to like Foster the agility we
  698. 27:47need to to survive or win Global
  699. 27:49conflicts it depends on what kinds of
  700. 27:51fights we fight hopefully we have enough
  701. 27:53time uh we might not why not well let's
  702. 27:56say that China starts making moves on
  703. 27:59Taiwan and moves on other countries in
  704. 28:01the next 24 months I think we're going
  705. 28:04to be in
  706. 28:06trouble I think in 36 months 48 months
  707. 28:09we're actually still kind of in trouble
  708. 28:10if it takes long enough I think that the
  709. 28:12United States military has recognized
  710. 28:14the problem uh but you know like you're
  711. 28:15steering this boat when you turned how
  712. 28:18long did it take for the boat to respond
  713. 28:20a while it was a bit of a lag time the
  714. 28:22US military is the same way it's a large
  715. 28:24machine it takes a long time to move
  716. 28:26even once you've applied the control
  717. 28:29even if once you've applied the input I
  718. 28:30think that's the phase we're in the
  719. 28:32government has realized the problem
  720. 28:33they've applied the input we're waiting
  721. 28:35for the system to adjust
  722. 28:46[Music]

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