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Hey Brian, how you doing? Great to see you. You got the hottest topic in the country, whether it's the data centers or AI, where the guardrails should be. Very few people can talk intelligently about it. We should be honest about it.
Do you worry? First off, before we get into the the narrow part of it, do you worry about lawmakers who don't use AI trying to put guardrails in judging AI? Because I do. It's a it's a little it's a little bit comical, Brian. I mean, listen, our the reason America is going to win and be the strongest and wealthiest country is because government doesn't screw things up.
These guys are not going to be smarter than the Chinese guys running their government, but what they can do is they could be less authoritarian and not break things.
So we got to hope the the frankly the dumb people on both sides don't break things.
So what what what what is one area? See, I love the idea theoretically, and tell me if this is possible because you know who you're competing with. You take the top five AI companies, and you provide like an eighteen-month stay on a board overseeing the top AI companies. And is it possible to do that without stealing each other's technology and advances? I would love to.
If you look at what the Trump administration put in place, I thought it was pretty reasonable, right? They all sign this thing, and they're gonna they do their own audit trails. They watch each other's audits, and you basically the only people smart enough in this industry to to hold things you know accountable safely are the people involved, which which is obviously chicken and egg because you can't trust people in charge of industry not try to lock in their advantages, not try to stop new competitors.
So so so it's it's a tough thing to get right, but obviously they have to be involved. The people running it understanding what's possible. Here in terms of setting the framework, so and by the way, we should probably be making it really transparent. We should be holding them accountable, but we shouldn't be breaking it, right?
So there's there's nuance to this, right? Why I was I was reading the story today about how the Chinese and the U.S. are kind of you're interlocked because a lot of people in America like the cheaper models that China's putting out, and yet you guys are leading the sophisticated portion of this by about. And I was got was in a briefing. With another high-level CEO the other day, off the record, that says he believes he's nine to twelve months ahead of China overall.
I don't know where you would you think.
So, yeah, can you describe how we need each other? I saw in in this industry. Yeah, listen. I think I think we're it's somewhere between six to twelve months ahead. It's it's not it's really hard to know because they're they're going to keep things secret as well.
But there's a lot of companies, such as Palantir, such as Cognition, and others that that benefit more from there being what we call a jagged frontier. Right.
So if if there's if there's just one company in the U.S. dominating the frontier model company, then they get a lot of power. And and whereas if there's multiple models competing, then then it lets everyone else who's building other parts of the ecosystem. Do better.
So, for example, Nvidia, which is selling chips, they want there to be lots of models, and then they can capture more of the value themselves. And so, this is a funny dynamic where the distillation, right, the copying of the U.S. models by others, is actually very good for everyone except for the top two model companies.
Well, so interesting.
So, Joe, where do you see your focus right now? Because you're also helping out the weapons industry, right?
Well, I run one of the top venture capital firms in defense. I guess we'd call it as one of the areas you call weapons is fair. You know, it's it's the primes right now in the U.S. Brian have fallen way behind, and they're making. For example, Raytheon makes sixty to eighty Tomahawk missiles per year.
We have new competitors that are testing things that are just as good, cost a fifth as much. They're going to make a thousand next year.
So I'm focused on our defense area and and ramping up production. Saronic is delivering hundreds of these autonomous vessels. To the you know we just built this giant shipyard in Texas last week that we announced with the vice president and the governor visiting.
So we're focused on ramping up in defense, but you know the bigger theme even beyond defense is ramping productivity in the U.S. right now. We are going to make the U.S. a lot wealthier by building on top of AI, and that is what our adversaries are afraid of. You know when when you see everyone attacking AI from the far left and the far right and from on the internet, this is the same thing they did when they attacked fracking, when they attacked nuclear.
Like they are so scared. The U.S. is going to pull way ahead of them, and they're trying to do anything they can to slow us down, and they're trying to trick everyone to be afraid to slow us down. That that's the number one question right now.
So you know what's interesting is the one thing about Elon Musk is come out multiple times over the last five years and said AI will make work unnecessary, which kind of Really, kind of rattles a lot of people's cages. I thought Jeff Bezos had a different, different take. I want you to hear this. This is we're going to be in a world of tremendous productivity gains because productivity is driven by invention, and that's what these AI tools are going to allow. Because of the productivity in the economy, many people are going to decide if you have a let's say you have a two earner income household.
One of those people is likely you're not going to need to have a two earner income household. You know what? I can support my family working three days a week. That's what productivity in the economy means. And so, people, I think you're going to have a labor shortage.
It's going to actually be difficult to hire people because the productivity in the economy is going to make it so that if people don't want to work two jobs, they won't have to. Where do you stand between Elon Musk? They'll no need, no one works, and Jeff Bezos? On this particular argument, listen, I'm long SpaceX from Elon against Jeff. But on this argument, I'm on the Bezos side.
By the way, this is a problem I have. All my friends I hired back in the day at Palantir—they're all too rich. They won't work for me anymore. That's going to be the economy you have, where everyone's going to be too rich. You can't get enough people to work.
That's where we are, Brian. Hey, could you could you bring back mass production on weapons?
So, how close are you to doing this? I kept hearing about this. I know that you do you have you do you have to put out your own. I hear one of the problems is. Is you have to have a company that's willing to maybe put out the money, knowing that politics could change and you might not get paid.
Is that where you are at? Are you worried about the administration changing and deciding that we're not going to be investing in weapons or as much in defense, and you could be left out there with this fantastic? Arsenal, you know, there's always some risk there, Brian. But but I think the defense of the nation and defending it effectively and not wasting money. I think that's a nonpartisan issue.
The House and Arms, our House and Senate Arms, our Armed Services Committees have a lot of people on both sides who want to have the more efficient solutions. When we're already now delivering, like I said, like hundreds of these boats, hundred thousands of interceptors, thousands of thousands of other sorts of missiles that are cheaper and better.
So so this this is all happening right now, twenty twenty seven. The key year, everyone's going to realize. Both the left and the right are going to realize we were being ripped off by these primes, and we're going to go with the better solutions.
So I'm not too worried about the better solutions winning. It's just so obviously the correct answer, as you show them.
So when I when I push, when I talk to the CEOs of these executives, they will say to me, "The reason why in World War II they moved out so quick because they weren't nearly as sophisticated. That's why you can make all these tanks and all these bombers and all these jets. But there's so much complication. Is that there's not one place where you finish." Off one product, that they have to send it out or import different parts. That's what takes so long.
Is that a valid argument?
So, so Brian, talking to the CEO of a Prime is like is like talking to your accountant about technology. They have no idea what they're doing. These guys were not hired to be engineers. Their their systems that Primes have built are purposely cost plus. They're purposely overly complicated.
And we have new companies being run by actually top technologists to our whole level above anything the Primes can do. And we're able to do just as good stuff, much cheaper, much faster at scale. The Primes are dinosaurs, and they'll make all sorts of excuses. It's a terrible argument, and we're going to crush them. And we're already starting to see it next year.
It'll be more obvious to everyone. These guys just shouldn't even be in business anymore. For a lot of these areas, they just don't know what they're doing.
So, do you believe that if this Iran war goes on, these which you're making now could play a role in it and perfecting these stealth states? One hundred percent, one hundred percent. There's already mass production coming. I mean, listen, it already has played a role. And it's ironic, rescued, they rescued those guys that were shot down on the helicopters.
They're from those. They attacked the port. They're delivering massive numbers of ships. The interceptors are coming at scale. The missiles are coming at Scale this, you know, Andrel's delivering all sorts of things already right now.
Twenty twenty seven is the year where we just massively outproduce the primes, and we kind of see the emperor has no clothes. And these guys have a lot of excuses, but they really didn't deserve the giant contracts they had. What did that's the situation? What did you learn from the war in Ukraine, or what are you learning? I mean, huge amounts, obviously.
Palantir and Andrel and others were were over there right away and and helping helping manage a lot of the war effort. I mean, you're learning how to do. Cheaper, mass autonomous systems that coordinate and that figure out. You know, you need you need millions of things, and you need to be smart, and you need to, and you have all new tactics. You know, based on lots of new electronic warfare tactics, all sorts of stuff we're applying.
So, what would right now is that's pretty much why you believe that Ukraine has done the unthinkable. I mean, this is four and a half years, and they paid a huge price, but they are also pounding Russia. And they're paying a strike for the first time. It's very, it's very impressive what they were able to do. But Ukraine reorganized how defense, you know, industrial complex works.
They put money towards what's working, away from what's not working. They were forced to, and they and they had to empirically test it. They have all sorts of new groups producing who never would have got a chance normally. Listen, I'm hoping for peace, Brian. I think it's really sad the war is still going on, but it is so impressive what Ukraine has been able to do, and what we all can learn from them.
In the latest challenge, Joe Lansdale has been this high speed drone that might. Out is too fast for the the drone. Defense rockets, correct? Have you guys met, or have they met that challenge yet? Yeah.
Well, listen. I mean, this is why you also have things like Eparus, which has high power microwave and it's like a force field in Star Trek, right? You can turn these things off with the speed of light. You can fry the circuits, so you need all sorts of different countermeasures. We're working on mass interceptors, mass high power microwave, and we got to get all these things over there to our allies.
And you know, but right now we're not allowed to deploy some of that in Ukraine. It's considered too sensitive. That's above my pay grade. I'll just know how to build it. They'll decide what they're allowed to use.
What about lasers? Where do you stand? Lasers are great if the weather is right. I think the Israelis figured out some really, really clever ways to to basically, you know, the way a laser has to work is it bends arbitrarily in the atmosphere, so it's impossible if you just shoot one laser to target properly. But they figured out how to shoot hundreds at once, and then every, you know, very small fraction of a second, redirect a new laser to the one that's hitting it.
So it's an amazingly complicated thing to get right. Israelis got it right; they're the best in the world at it. We should learn how to do it too.
So, Joe, you know what's so great is at about when George Bush was. Presiding over the Iraq War, Google and some of these other tech firms said we don't really want you to use our technology for war, and they started giving a real pushback, a lot of pushback. Yeah, and you know, and obviously Silicon Valley is known to be extremely left area, and I always thought that's just the way it's going to be, you know. And then this new generation with guys like you, I really see a huge patriotic streak. To use your great success for the defense of the country.
Where did that come from? Like, what generation is that? Like, do you did you what I just said? Does that resonate with you? Is yeah?
Well, listen, it's a small it's a small handful of people. It's us at Palantir, which I'm really proud of, and a lot of my guys at Palantir partner with Palmer Luckey. It's Palmer at Andrel. It's Elon Musk, who's a great patriot, and people don't understand how much SpaceX is critical for our defense. And you know, really, Palantir, SpaceX, Andrel broke through, and then others like Saronic and Epirus and Chaos are now breaking.
Further through, and so it's a handful of us, and but you know, I think it has inspired a generation and tens of thousands of technologists. And we're fixing the primes. There's going to be all the neo primes, and thank goodness, man, because now America is ahead of our adversaries again. If we just relied on the old dinosaurs, our adversaries would have crushed us.
So, but you know, America keeps building new things. That's what makes us a great country. But Joe, what do you mean you're fixing the primes? I thought you were going around the primes. We're we're fixing the defense industrial complex.
We're fixing the production. We're going around them. You know, my guess is that ultimately, pieces of the primes will be split off and and run by the neo primes because the people running the neo primes are so much more competent. That's probably the best way to do it. Is eventually, when you beat them at a few things, you'll hopefully grab and fix the rest of them because you can't have the guys in charge there right now running them.
They're just going to lose.
So I know that the school thought in the '80s or the '90s was consolidate the defense industry. This way, you're not competing against each other. We get improved. Improvements, and we get the best the best groups together. What we had was a consolidation and a lack of competition, which, as usual, because of capitalism and the nature of it, it it sent us into somewhat of a malaise.
That's right. The lack of competition, Brian, and really, these defense companies became arms of the government. They didn't have to, you know, fight for a living, and their their main skill became trying to block others and capture. Upside from the government, not actually innovating, and so that so now we've broken it again with a lot of new ones. There, you know, it's going to shift it up a lot.
Which thank, thank goodness, you know, you know, we had a Soviet system. Effectively, we shifted it to a Soviet system. Obviously, doesn't work. You need a dynamic American system. That's what we're going back to.
I know the president tried haranguing them into producing more, and it has not worked.
So no, we're just gonna do it. We're just gonna do go around them and do it, and then pull the good pieces of them in. Hopefully, but no, it's it's actually starting to work right now. You're seeing all sorts of great stuff happening. And the one thing I learned too, Joe, from our conversation, don't let your workers get rich too quick.
You know the other thing, though, is I—it's really important to me to make everyone who works with us really, really rich. But you know, maybe, maybe if they get too rich in the first few years, then it's not good. But don't worry—it's there's always going to be new great Americans to work, and it's good to make everyone who works with you really wealthy, Brian. That's the goal, and that's true. But it hasn't really curtailed your drive at all.
Obviously, I'm just kidding. I'm just, I'm just teasing the guys for early from Palantir. They're doing great. Joe Lansdale, always great. Thanks, Joe.
Thanks, Ryan. You got it. Hey, when we come back, we open up the phones one eight six six four zero eight seven six six nine. We're also talk about the midterms, a few real compelling races. Don't move.
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