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	<title type="text">Nilay Patel | The Verge</title>
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			<title type="html"><![CDATA[Skydio CEO Adam Bry on why Silicon Valley shouldn’t draw red lines for drone use]]></title>
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							<summary type="html"><![CDATA[Today, I’m talking with Adam Bry, who is CEO of Skydio, the leading US maker of autonomous drones. Before we recorded this episode, I actually got to remotely operate one of Skydio’s drones in the Bay Area from Adam’s laptop in our podcast studio in New York and fly an indoor drone around our office. [&#8230;]]]></summary>
			
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<img alt="A photo illustration of Skydio CEO Adam Bry." data-caption="" data-portal-copyright="Image: The Verge / Photo: Skydio" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/DCD_20260615_Adam_Bry.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-drop-cap has-text-align-none">Today, I’m talking with Adam Bry, who is CEO of Skydio, the leading US maker of autonomous drones. Before we recorded this episode, I actually got to remotely operate one of Skydio’s drones in the Bay Area from Adam’s laptop in our podcast studio in New York and fly an indoor drone around our office. You can <a href="https://www.youtube.com/watch?v=3Vd6b56Mg6U">check out the full video of that on our YouTube channel</a>.</p>

<p class="has-text-align-none">Beyond flying drones around the country, Adam and I talked about why Skydio is so focused on the enterprise market — I asked him a lot about working with police and military, but you’ll hear him say a lot of Skydio’s customers are utility companies that use drones to remotely inspect important infrastructure in ways that weren’t possible before.&nbsp;</p>

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<p><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="has-text-align-none">That’s a big market, but it’s also one that was being served by cheap consumer drones in the past — products that basically no longer exist on the US market since most of them came from China, and the Trump administration banned foreign-made drones late last year. All those inexpensive DJI drones disappeared overnight, leaving expensive Skydio products as the main alternative.</p>

<p class="has-text-align-none">Adam and I talked about all that and the reality of manufacturing complex products like drones in the United States. We also talked about Skydio’s work with the military and how Skydio’s use of AI lines up with defense work — I really wanted to know where Adam’s lines were, at a time when military use of AI is more controversial than ever.&nbsp;</p>

<p class="has-text-align-none">There’s a lot in this one — maybe more than anything, it was refreshing to hear Adam talk about using AI to bring even more people to work at Skydio as the company expands. And again, I got to fly the drones, which ruled.&nbsp;</p>

<p class="has-text-align-none">Okay: Adam Bry, CEO of Skydio. Here we go.</p>

<iframe frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP9854697834" width="100%"></iframe>
<div class="youtube-embed"><iframe title="Flying a semi-autonomous industrial drone" src="https://www.youtube.com/embed/3Vd6b56Mg6U?rel=0&#038;start=4" allowfullscreen allow="accelerometer *; clipboard-write *; encrypted-media *; gyroscope *; picture-in-picture *; web-share *;"></iframe></div>
<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="has-text-align-none"><strong>Adam Bry, you are the co-founder and CEO of Skydio. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">I&#8217;m very excited to be here with you.</p>

<p class="has-text-align-none"><strong>I am super excited to talk with you. We just demoed flying an X10 drone remotely. I have a lot of follow-up questions about that. That was super interesting.</strong></p>

<p class="has-text-align-none"><strong>I would say the drone business itself is in a moment of extreme change. There are policies keeping some of your competitors out of the country. There&#8217;s what you&#8217;re doing with autonomy and working with governments and militaries around the world. Then, there&#8217;s just the state of drone technology in general, which seems like it&#8217;s on the cusp of being yet another thing. So, there&#8217;s quite a lot to talk about.</strong></p>

<p class="has-text-align-none"><strong>Let&#8217;s just start with the basics. Unless you&#8217;re a drone nerd, you might not have heard of Skydio. Explain what Skydio is and how the company came to be.</strong></p>

<p class="has-text-align-none">We are the largest US drone manufacturer. We make drones that are essentially flying sensor platforms. We started in 2014, and at this point, we serve what we think of as the critical industries our civilization depends on. We work with public safety. We work with militaries. We also work with energy utilities, construction companies, departments of transportation, and security organizations.&nbsp;</p>

<p class="has-text-align-none">The common thread between all of our customers is that they have hardcore, oftentimes high-risk physical operations, where putting sensors in the right place at the right time to get better information can fundamentally change outcomes. That&#8217;s what we deliver. We deliver end-to-end solutions where the drone is a key piece, but the software, autonomy, integrations, and, increasingly, the end-to-end workflows for the different industries built around the drone&#8217;s capabilities are really what our customers are buying.</p>

<p class="has-text-align-none">We&#8217;re at a super exciting moment where after years of talking about a lot of this stuff, it&#8217;s really starting to work at scale with incredible impact.</p>

<p class="has-text-align-none"><strong>If I think about just our drone coverage over the years, it started with those first DJI drones almost 10 or 15 years ago now. The first Phantom drones were pretty rickety. They had these giant batteries. And it was really just about flight, and being able to control flight in an easy-to-use way. Then we very quickly got to, &#8220;Oh boy, we could put fancy cameras in the sky,&#8221; and that was really fun. And those cameras got really fancy. Now you&#8217;re saying it&#8217;s a whole sensor suite, or is it just augmented cameras?</strong></p>

<p class="has-text-align-none">I actually think what you described there closely parallels the chapters of the drone industry that I think about. In the very early days, these electric flying machines were really toys. I think of the first chapter, and the first 10 years was about the electrification of radio-controlled airplanes, which were recreational. It was fun to go out and fly. This is the world that I come from. I grew up flying radio-controlled airplanes.&nbsp;</p>

<p class="has-text-align-none">What I think happened is that people started bringing the toys to work and realizing that if you put the right camera on there and you had a skilled pilot flying it, you could do a lot of useful stuff. That created cool videos that showed up in cinematography, commercial real estate, things like this.&nbsp;</p>

<p class="has-text-align-none">The next chapter is about autonomy, where the drone lives in a docking station, is connected to the internet, can be flown remotely and autonomously, and is a piece of infrastructure itself. I think the impact that we&#8217;ll see from that is going to be orders of magnitude larger than everything we&#8217;ve seen thus far. And we&#8217;ve seen a lot of good stuff thus far. I mean, a lot of great work has happened in the world of drones as tools. It&#8217;s just very small scale compared to what&#8217;s coming, and we&#8217;re really at that transition moment now.</p>

<p class="has-text-align-none"><strong>Describe the idea that flight is the fundamental building block, that you don&#8217;t need to think about it as much because you&#8217;re talking about the capabilities built on the second and third order of the thing able to fly itself. Do you spend time investing in how the drones fly themselves or is that solved?</strong></p>

<p class="has-text-align-none">We spend a ton of time investing in that. There&#8217;s kind of this trope in the drone industry where, &#8220;Oh, it&#8217;s not about the drone. It&#8217;s about the data.&#8221; Which is sort of true. You could say the same thing about almost anything. It&#8217;s not about the phone, it&#8217;s about the apps, the software, or whatever.&nbsp;</p>

<p class="has-text-align-none">But you have to earn the right to deliver these solutions. The way you earn that right is by being a world-class designer and manufacturer of these systems and making them super capable and super reliable. I think one of the things that&#8217;s oftentimes missed with drones is the idea that they are cutting-edge aerospace devices. They vibrate, they have aerodynamics, they have thermal concerns. We have really advanced compute running on board, a bunch of sensors. It&#8217;s akin to building a self-driving car that flies.</p>

<p class="has-text-align-none">If you want to be a good drone company, you need to be a world-class aerospace engineering organization across 10 or 15 different disciplines. It&#8217;s only once you have that and are great at it that you can then start to focus on enterprise software integrations that connect your solution into, for example, 911 dispatch software that a public safety organization might be using or the incident management system for an energy utility.</p>

<p class="has-text-align-none">Those things really matter, but if the core technology foundation isn&#8217;t great, they&#8217;re less important.</p>

<p class="has-text-align-none"><strong>We&#8217;re going to come back to the phrase “world-class.” I have a lot of questions about what it means to be world-class in our current regulatory and tariff environment, but give me some examples.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>We have a consumer audience where probably everybody listening or watching has used one variant of a consumer drone. Just like every other product, they get slightly better every year until the fifth yearly model, which is a step change better than the model people might be familiar with. What are some of the big advancements in flight capability that people might not have perceived over time?</strong></p>

<p class="has-text-align-none">Originally, drones flew with raw stick to control service input. So, I grew up flying radio-controlled airplanes where you held a joystick transmitter. When you moved that joystick, a direct command was sent to either an electric motor or a servo motor that would move a control surface, which moved directly in response to what you did. There was no compute between your stick input and what happened on the device.</p>

<p class="has-text-align-none">The next step after that — which is what made the quadcopter possible — is to take very low level, primitive microprocessors next to inertial measurement units (the thing in your phone that tells it what orientation it&#8217;s in) and write what&#8217;s called a pretty basic &#8220;attitude control loop.&#8221; That&#8217;s the fundamental thing running at the bottom of every quadcopter control stack. It basically tells it which orientation to hold in physical space. So, when you move the stick, it maps to the orientation of the quadcopter. Without that, a person couldn&#8217;t fly a quadcopter. There&#8217;s no way you could move the stick to give a raw motor command. Just the mapping would be too much for our brains. So, that was the beginning of those things becoming a bit more accessible.</p>

<p class="has-text-align-none">The next step was the GPS position hold, of not just holding an altitude but using GPS to figure out your rough position and being able to hold a position in sky. That was a big step forward because that meant you could go hands off, and the drone would just sit there and hover. That was a necessary step to get beyond needing expert, pilot-level skills so they can be usable by anybody. That&#8217;s what most drones historically have done, and most drones today still operate mostly based on GPS.</p>

<p class="has-text-align-none">I would say the next big chapter — and Skydio really helped pioneer this — is using computer vision, or putting cameras on the drone. Not just the camera that captures the video the user might care about but cameras that see everything. They can go into a computer that&#8217;s running onboard AI and use visual information to make intelligent decisions, like holdingposition even if you don&#8217;t have a good GPS signal, avoiding obstacles, or tracking moving subjects.&nbsp;</p>

<p class="has-text-align-none">We started in 2014 and that was around the time&#8230; it seemed like a crazy idea, honestly. It&#8217;s hard to remember now but 12 years ago, using computer vision for anything outside of the lab seemed somewhat farfetched. We launched our first product in 2018, the Skydio R1, which I think was the first drone built around computer vision. Our competitors started doing similar things, and we&#8217;re now at a point where that stuff has reached maturity. I think there are still incredible capabilities yet to come, but it&#8217;s mature enough that you can count on it, rely on it, and build products around it. The fundamental thesis there was to build expert pilot skills into the drone, and I think the only way you can do that is by using computer vision.</p>

<p class="has-text-align-none"><strong>I&#8217;m just so curious about the notion of this thing can fly itself and now we can build applications on top of that core capability. But it sounds like &#8220;this thing can fly itself&#8221; is not a finished project. That&#8217;s something you&#8217;re still spending a lot of time on.</strong></p>

<p class="has-text-align-none">Yeah, I don&#8217;t think it&#8217;s ever finished. There are just so many upsides here in what you can do, how good the automation can get, and what people can do with them. We work with public safety agencies today that are using these things to respond to 911 calls. Sometimes they need to follow a suspect — like somebody&#8217;s fleeing a crime scene in a car — and they&#8217;ll do incredible things while flying semi-manually.</p>

<p class="has-text-align-none">Our autonomy system is still under the hood, but they&#8217;re flying semi-manually to track moving vehicles through urban canyons. Our AI system is very, very good. It&#8217;s not as good as the greatest human pilots I&#8217;ve seen fly in those scenarios yet, but it will be. And when it is, it&#8217;ll be that much more powerful and capable for more people to reap the benefits.</p>

<p class="has-text-align-none"><strong>Yeah, I want to come back to that too.&nbsp;</strong></p>

<p class="has-text-align-none">I&#8217;m giving you a lot to come back to.</p>

<p class="has-text-align-none"><strong>There are a lot of threads to pull on here!</strong></p>

<p class="has-text-align-none"><strong>I want to ask about Skydio itself. You&#8217;ve taken in a lot of investment recently. The company&#8217;s getting bigger. I think you&#8217;re up to Series F. You have a multi-billion dollar valuation. You&#8217;re about to make 2,000 more jobs here in the United States manufacturing drones. How many people work at Skydio today, and how&#8217;s the company structured?</strong></p>

<p class="has-text-align-none">We&#8217;re about 1,000 people, which I think for the scope and complexity that we manage is actually pretty tiny. We do a lot with a very, very small team because we have to span so many different disciplines: across engineering, software development, direct sales and customer support, and manufacturing. In many ways, I think the company&#8217;s kind of traditionally structured. We have a head of sales, a chief financial officer, a head of marketing, and a head of people operations. We could talk more about it, but I think people ops is one of the most important functions at the company.&nbsp;</p>

<p class="has-text-align-none">What might be a bit unique is how technical we are at the senior levels. So, I have six or seven direct technical reports spanning hardware, software, hardware operations, and chief engineers for a number of the vehicle programs we&#8217;re working on. A lot of that is because I&#8217;m very technical. I have an engineering background. I still consider myself an engineer. I get pretty deep into the details sometimes on products and technologies that we&#8217;re working on.</p>

<p class="has-text-align-none">It reflects our belief that these are cutting-edge aerospace devices, and if you want to be a great company in this space, you need to be world-class at engineering and delivering them. We spend a lot of time at the senior level deep in the technical weeds. My weekly staff meeting starts with a comprehensive review of every little technical thing that&#8217;s gone wrong with our products over the last week. We&#8217;ll go as deep as we need to in that meeting to figure out what&#8217;s going on and what we need to do about it.&nbsp;</p>

<p class="has-text-align-none">We do the same thing with new programs, and we do that for a couple of reasons. I think it&#8217;s the most important thing. It&#8217;s not the only thing that matters, but it is the most important thing. I think it&#8217;s useful even for the people who are leading non-technical functions to get steeped and exposed to what&#8217;s happening technically and then vice versa. Having our engineering leaders well versed in the business, what&#8217;s happening financially, and what&#8217;s happening with our customers is super important because they&#8217;re making some of the most consequential decisions on the technical side, which are ultimately going to manifest in the market with our customers and in our financial results.</p>

<p class="has-text-align-none"><strong>I get the feeling that you think a lot about </strong><a href="https://www.theatlantic.com/ideas/archive/2024/04/boeing-corporate-america-manufacturing/678137/"><strong>the accountants taking over Boeing</strong></a><strong>. That&#8217;s what that sounds like.</strong></p>

<p class="has-text-align-none">We&#8217;re like the antithesis of that. <em>[Laughs]</em></p>

<p class="has-text-align-none"><strong>Yeah. </strong><strong><em>[Laughs]</em></strong></p>

<p class="has-text-align-none">I&#8217;m certainly familiar with that story. It sounds awful. It&#8217;s ultimately just us doing what we think is in the best interest of our customers, which is being really focused on having excellent products and technology, not just today but a year, two, five, or 10 years from now.</p>

<p class="has-text-align-none"><strong>I think you are the first CEO in five years of doing this show to say that people ops is really interesting and that we should talk about it more. What do you mean by that?</strong></p>

<p class="has-text-align-none">I have a very talent-centric view of business. We talked about the organizational structure. I think that matters, but I think it&#8217;s less important than just the people at the company. One of the analogies I use to think about this… I love sports analogies for business. People obsess over batting order in baseball. I don&#8217;t know if you&#8217;re a baseball fan, but there&#8217;s this whole theory about batting order. It&#8217;s evolved over time where you want the leadoff hitter to get on base a lot, and then you get into the meat of the order with the power hitters that are supposed to knock them in.</p>

<p class="has-text-align-none">We&#8217;re now at a point where you can use analytics to study this stuff. I think the estimates are that the difference between the most optimal batting order and the worst batting order is like 20 or 30 runs per year for a Major League Baseball team. They score something like 500 to 800 runs per year. Adding one star player to the lineup is like 100 runs per year, and I think business is the same way.&nbsp;</p>

<p class="has-text-align-none">It&#8217;s not as directly trackable as baseball, but an exceptional person anywhere in the organization can completely change the trajectory of a product or a business. Most things really come back to talent, more than people realize. This is even for big, late stage companies and certainly for early stage companies. So, we spend a lot of time focused on that, on trying to get the best people in the world for each of the different disciplines, and putting people in a position to have tremendous impact.&nbsp;</p>

<p class="has-text-align-none">If you look at amazing new products that we&#8217;ve worked on over the last year…&nbsp; we talk about the F10s, this fixed wing drone that gets caught with a robotic arm. It&#8217;s a crazy sci-fi thing. I think we did a good job creating an organizational structure for that team to be successful, but it&#8217;s really just that the people on the team are phenomenal. And it&#8217;s the same thing with R10, which I think is now the best enterprise indoor drone that&#8217;s ever been created. We did that in 15 months. Amazing people did that, and that&#8217;s ultimately what it comes down to. And our head of people ops [Anna Wiesenthal-Birch] is awesome. She and I work together quite closely on recruiting and talent management inside the business to get more of that.</p>

<p class="has-text-align-none"><strong>I like this anti-</strong><a href="https://www.slashfilm.com/1852164/brad-pitt-movie-moneyball-true-story-explained/"><strong><em>Moneyball</em></strong></a><strong> approach to running a tech company. We&#8217;re going to send this clip to the Sabermetrics people. It&#8217;s going to go viral.</strong></p>

<p class="has-text-align-none">Look, I&#8217;m not anti-<em>Moneyball</em>. I actually don&#8217;t think this is that anti-<em>Moneyball</em>. I would argue that a lot of what it was doing was sort of talent assessment, like deeply studying what attributes lead individual players to be successful or not. I&#8217;m not saying the batting order doesn&#8217;t matter. It does. You might as well pull all the knobs to optimize them, but the most important piece is having world-class people.</p>

<p class="has-text-align-none"><strong>This is one of the weirdest talent markets in tech that I&#8217;ve certainly ever covered. You have outrageous salaries for people who work in AI, outrageous promises about AGI, and maybe you want to be on teams that are going to build AGI. You have big platform companies saying that all 6,000 people are going to report to Jack Dorsey with the power of agentic software tools. I&#8217;m not sure what any of that means. Is that affecting you? Is it hard to get the talent you want? Is it hard to pay them?</strong></p>

<p class="has-text-align-none">It certainly is a very competitive talent market, which is great. I&#8217;m an engineer. I think it&#8217;s great that engineers are sought after and that the market compensation for them is going up. I think we have a pretty unique value proposition for everybody, but especially for engineers, in that we&#8217;re building products that are very real and having real impact today. Robotics is hot again, and there are a lot of companies talking about robotics. There are a lot of grand promises being made.&nbsp;</p>

<p class="has-text-align-none">I think a lot of the companies starting off today are probably five to 10 years away. They don&#8217;t think this, but I think they will realize that if they succeed at all, they&#8217;re five to 10 years away from having anything like a viable business. We&#8217;ve been through that journey. We have an awesome core business and it&#8217;s growing really quickly, but I still think we&#8217;re at the beginning of what&#8217;s possible in our space. There&#8217;s a huge amount left to be built, but we build it knowing that it&#8217;s really going to matter if we can deliver. It&#8217;s going to save people&#8217;s lives. It&#8217;s going to make the energy infrastructure in our country operate more safely and efficiently. And because of that, we&#8217;ve been able to attract really, really excellent folks to Skydio.</p>

<p class="has-text-align-none"><strong>Are you competing in the bleeding edge AI research area, or are you hiring different kinds of engineers?</strong></p>

<p class="has-text-align-none">We&#8217;re not trying to build foundation models that are $100 or $200 million training runs. We are probably some of the earliest users of AI in real products. We use deep neural networks in our perception system going back to 2017 or 2018, before anybody was doing that on a shipped robotic product. We are certainly hiring folks and have folks on the team who are experts in AI, neural networks, and all the other algorithms it takes to build these autonomous systems. So, I think there&#8217;s now this smaller set of folks who are experts in these very large cloud-based models. We&#8217;re not training those ourselves.</p>

<p class="has-text-align-none"><strong>Let me ask you the other </strong><strong><em>Decoder</em></strong><strong> question, and then I want to start to pull on some of these threads that I&#8217;ve been pointing at along the way. You&#8217;ve had to make a lot of decisions in your run as CEO, most importantly, the decision to switch from consumer to enterprise. How do you make decisions? What&#8217;s your framework, and how has it evolved?</strong></p>

<p class="has-text-align-none">I think a lot of what makes super effective companies effective is that a lot of decisions almost become reflexive. It&#8217;s like when you&#8217;re learning a new skill as a person. You have to think about it a lot. If you&#8217;re learning to ice skate or something, you spend a lot of time thinking about foot placement, stride, and whatnot, Then, it just becomes very natural over time.</p>

<p class="has-text-align-none">For me as a leader and for us as a company, I think what&#8217;s enabling us to move so quickly now is that we&#8217;re just reflexive on a lot of things. We&#8217;ve been through a bunch of product development cycles, we&#8217;ve seen new industries start to adopt our products and technology and the patterns that they go through. So myself, my leadership team, and everybody in the organization just know how to deal with a lot of different kinds of stuff, such that it doesn&#8217;t even feel like we&#8217;re making decisions oftentimes. Things just happen. The right thing just happens. It&#8217;s super powerful and fun to be a part of that.</p>

<p class="has-text-align-none">That&#8217;s not everything. The new stuff, the frontiers, is where you have to do slow thinking (or reasoning in LLM parlance). For me, writing is a very powerful tool to do that. So, anytime we&#8217;re facing a lot of uncertainty or ambiguity, I tend to just start writing to help myself think about it. That helps clarify my thinking. I also think the output from that tends to be a really powerful artifact for fostering debate and discussion, so you ultimately have the thing that says, &#8220;All right, here&#8217;s the plan. Here&#8217;s what we&#8217;re going to do.&#8221;</p>

<p class="has-text-align-none">The other thing that I think is super obvious —&nbsp; a lot of things in business are super obvious and super simple, it&#8217;s just hard to do them —&nbsp; is that the whole point of a company is to do useful things for other humans. It&#8217;s surprisingly easy to lose sight of that, especially as companies get bigger. So, we really force ourselves to focus on that. What is what we&#8217;re doing now going to mean? How&#8217;s it going to be valuable to somebody, and what are ways that make it more useful and more valuable to somebody? Ultimately, everything in a company should be oriented in that direction.</p>

<p class="has-text-align-none">Then, the final thing that I&#8217;d say is that one of our values is, &#8220;Love the problem, get to the essence.&#8221; It&#8217;s worth spending a lot of time going deep, deep, deep on understanding problems, whatever they are. I think the best solutions are born out of a deep, deep understanding of problems, such that the simple, elegant solution oftentimes emerges from that. So, for myself and the team, I always try to focus people on really understanding the problem before swinging at too many different kinds of solutions.</p>

<p class="has-text-align-none"><strong>I&#8217;ve been thinking about this a lot in the context of the tech industry, what kind of products we&#8217;ve all been dealing with, and, I don&#8217;t know, the rise of B2B SaaS companies, which are a dime a dozen. Do you feel like it&#8217;s different because you make hardware, that your attitude towards your customer and what you have to deliver is because there&#8217;s a complicated piece of hardware they have to charge, put on the roof, and deploy versus a customer signing up for a subscription software product they forget about, and that&#8217;s your whole business?</strong></p>

<p class="has-text-align-none">I&#8217;m so deep in it at this point that it&#8217;s probably hard for me to perceive. I don&#8217;t know what it&#8217;s like to lead a pure SaaS company. I certainly know that hardware is extremely unforgiving. You&#8217;re dealing with hard physical constraints, and the surface area and complexity of things that can go wrong is immense, and I think that that forces a deep level of rigor. But one of our goals is to be able to tolerate a very heterogeneous posture with respect to risk and complexity and uncertainty. So, reliability is the single most important feature in our flagship, mainline products. We maniacally focus on it. We have to vet everything that we ship extremely rigorously and carefully.&nbsp;</p>

<p class="has-text-align-none">But not everything is like that. There are pieces of the cloud user interface where we need to be much more iterative and ship things faster. It&#8217;s okay if there&#8217;s a bug, an issue, or something isn&#8217;t polished. When we start a new hardware program like with our indoor drone the R10, it has a very different risk profile. It&#8217;s not flying over people. In many ways, it&#8217;s designed to crash because it&#8217;s flying in indoor spaces. Reliability is still super important, but it&#8217;s a different profile from the X10.</p>

<p class="has-text-align-none">So, a part of the challenge, and what I think we&#8217;re pretty good at, is being able to focus on the specifics of what we&#8217;re trying to accomplish, what a particular product is meant to do — whether it&#8217;s hardware or software — and dealing with it on its own merits rather than just applying blanket rules across everything.</p>

<p class="has-text-align-none"><strong>Maybe there&#8217;s no answer yet, but one of the reasons I&#8217;m asking is that we see a lot of pure software companies totally rebuilding themselves around the idea that&nbsp; AI will just vibe-code everything, or a bunch of engineers will control 50 agents so they&#8217;re going to ship more software faster than ever. Maybe that&#8217;s great, but also, is it going to be good? I wonder if your relationship to the customer… with this piece of hardware, your drones are very expensive. They have to be good.</strong></p>

<p class="has-text-align-none">I mean, we are extremely heavy AI users. I&#8217;m super excited about the hardware engineers I&#8217;ve seen throughout the company. They&#8217;re brilliant engineers, but they don&#8217;t have a deep background in software. They probably&nbsp; wrote a little bit of software when they were an undergrad, but now they&#8217;re vibe coding incredible software applications to help them optimize different aspects of the hardware design to study vibration, aerodynamics, or something. So, the hardware we&#8217;re building is for sure better because of AI.</p>

<p class="has-text-align-none">We&#8217;re super heavy users on the software side. We have all kinds of internal automations. We have the ability for designers, product managers, or anybody else to prompt a change to the code base that will then automatically get put into the queue to be tested and reviewed by AI and ultimately approved by a person. So, we&#8217;re super heavy AI users.</p>

<p class="has-text-align-none">Nobody knows exactly how this is going to play out. I do think that having hardware in this AI world is super valuable because the hardware and software integration gets more and more powerful. I think hardware, is going to be among the last things to be vide codable, to be able to prompt, &#8220;I want a drone that does X, Y, Z thing.&#8221; Maybe we&#8217;ll get there someday, but making the hardware is really hard, and once you have it, being able to more easily add software on top of it to adapt it to more applications and more industries is a very valuable place to be.</p>

<p class="has-text-align-none"><strong>I&#8217;m personally fascinated by some of the old hardware in my life that has gotten new life because of AI. I have old cameras, and AI denoise has breathed new life into them. I&#8217;ve added software to an old piece of technology, and now it has a whole new life in a different way. You can kind of see that across the entire hardware portfolio.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>You said build hardware, and we can&#8217;t just vibe-code hardware. The United States government has banned Chinese drones. They&#8217;re hard to get in this country. There&#8217;s a bunch of great market stuff. We&#8217;re constantly covering gray market DJI drones coming from Canada and other places. You&#8217;ve got to build the drones here. How is that working right now? Are you invested in that supply chain? Do you have all the pieces you need to build them here? How does that work?</strong></p>

<p class="has-text-align-none">We have always manufactured our drones in the US. We started doing this in 2016 and 2017 when people thought it was truly insane. We had investors in the early days who would come and do diligence on us, see a manufacturing line, and basically pull the ripcord, &#8220;What the hell are you guys doing? I&#8217;m out of here.&#8221; Conventional wisdom in Silicon Valley in 2014 was, one, probably don&#8217;t do hardware, and two, if you are going to do hardware, definitely outsource it to China.</p>

<p class="has-text-align-none">That&#8217;s just not the path that we went down. Honestly, we didn&#8217;t go down it originally for geopolitical reasons. We went down the path of US manufacturing for practical reasons because their aerospace devices, engineering, and manufacturing are tightly coupled, and I think doing both side by side&nbsp; enables you to build better products faster.</p>

<p class="has-text-align-none">Now, it has become a critical strategic imperative for national security, and a critical strategic advantage for us and the decade of experience under our belts building these things in the US because manufacturing is hard. Hardware is hard. Manufacturing is definitely hard. Running a factory and integrating the supply chain for your product in your own factory is an extremely complex, messy endeavor, and we&#8217;re very good at it now.</p>

<p class="has-text-align-none">I saw you key in on &#8220;world-class.&#8221; I don&#8217;t think we are a world-class manufacturing outfit yet. That&#8217;s a blunt assessment. I think China&#8217;s still better at manufacturing drones than we are, but I think we&#8217;re pretty good. I don&#8217;t think there&#8217;s any law of physics that says that you can&#8217;t be a world-class drone manufacturing outfit in the US, and we&#8217;re going to do it. We&#8217;ll invest in whatever hardware and software systems and people we need&nbsp; so we have the world&#8217;s greatest drone factory right here in the US.</p>

<p class="has-text-align-none"><strong>Let me ask you about that. The idea that you can be a world-class drone manufacturer in the United States is, in one way, the right ambition for a company that makes drones, but it&#8217;s also fairly narrow. Apple just turned 50. We did a </strong><a href="https://www.theverge.com/tech/899623/apple-50-anniversary"><strong>bunch of coverage on Apple turning 50</strong></a><strong>. A big part of that story is that it stood up the supply chain in China, and now there&#8217;s a huge array of vendors, sophisticated manufacturing partners, and component suppliers.</strong></p>

<p class="has-text-align-none"><strong>You talked about the history of drones. Why are there cheap IMUs and microprocessors all over China? Well, it&#8217;s because Apple built the smartphone supply chain, and we can build a bunch of stuff out of lithium-ion batteries and cheaply-available IMUs. We don&#8217;t have that here.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>I guess I&#8217;m just asking. You can be a world-class drone manufacturer, but the ecosystem that allows you to do that doesn&#8217;t exist here. Do you need that ecosystem, or have you found a way to do it all on your own?</strong></p>

<p class="has-text-align-none">I 100 percent agree with you. Drones are, in many ways, the combination of consumer electronics with hobbyist quadcopters, and historically, all consumer electronics have been made in China.&nbsp;</p>

<p class="has-text-align-none">So, I&#8217;ll say a couple of things here. One, I don&#8217;t think there&#8217;s any law of physics that says we can&#8217;t have a world-class consumer electronics, wide-scale hardware manufacturing ecosystem here in the US. Maybe there&#8217;s some alternate universe where slightly different policy decisions or a few decisions here or there have the East Bay and San Francisco Bay Area looking something like Shenzhen, China. I think it&#8217;s a bummer that we don&#8217;t have that kind of hardware richness in the US. These counterfactuals are always hard, but I don&#8217;t think there&#8217;s a rule of physics that says that that couldn&#8217;t be the case.</p>

<p class="has-text-align-none">So, we&#8217;re focused on drones, and we&#8217;re focused on doing awesome stuff with drones. I do see broader momentum towards building more and more stuff in the US. I think some of this is driven by policy. I think some of it is driven by capitalist opportunity, and all of that is good. Yeah, we&#8217;re still using a supply of components that come from Taiwan, Japan, Korea, and so on. Over time, I think more of those will probably be made in the US, but I have the most visibility into and the most confidence in the drone piece. We can definitely do that at world-class levels in the US.</p>

<p class="has-text-align-none"><strong>Are there any Chinese parts in Skydio drones right now?</strong></p>

<p class="has-text-align-none">Very, very, very, very few. So we had the great distinction of being sanctioned by the Chinese government about a year and a half ago. We knew that we had China risk. We had done a lot of work to get our supply chain out of China, and the big remaining dependency that we had was batteries, which was public. We fortunately had a decent supply of batteries on hand, but we had to, stand up a new supply chain for batteries independent of China in very short order. At this point, all the first-level dependencies are gone. Anybody who&#8217;s saying that they don&#8217;t have any Chinese content in what they&#8217;re building is deluding themselves because it&#8217;s very hard to trace back to the second and third levels. But all our critical components, all the first-level dependency stuff, is outside of China.</p>

<p class="has-text-align-none"><strong>Explain what you mean by &#8220;first-level dependency.&#8221;</strong></p>

<p class="has-text-align-none">The suppliers that we work with directly to buy the camera module, the sensor in it, the processor, the circuit board, the metals and plastics, and, as far as we can push, the suppliers that they&#8217;re working with. But it&#8217;s hard to say with 100 percent certainty on things like some passive component on a circuit board or the material that&#8217;s used in a particular thing.</p>

<p class="has-text-align-none"><strong>The reason that Chinese government sanctioned Skydio was because the United States government was trying to kick DJI out of the country. </strong><a href="https://www.theverge.com/news/849460/fcc-foreign-drone-ban-dji-congress-deadline"><strong>The FCC banned foreign drones</strong></a><strong> last December. It had basically been fulminating about doing it since 2020. Do you understand why the FCC banned DJI drones?</strong></p>

<p class="has-text-align-none">So the stated reason for China sanctioning Skydio was that we sold drones to Taiwan.</p>

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

<p class="has-text-align-none">I&#8217;m glad you had intuited the possible real reason. I think the real reason, as you stated, is that we compete with DJI and the US government has taken actions against DJI, so I think it was retaliatory.&nbsp;</p>

<p class="has-text-align-none">I don&#8217;t know exactly what the right answer is, but I think it&#8217;s pretty clear and non-controversial at this point that depending on Chinese technology and critical industries has a lot of risks associated with it. And this spans across a bunch of different categories. We&#8217;ve seen this in chips, in raw materials like steel and magnets, and with cars. Drones are one slice of this broader geopolitical competition, which is really technology competition.</p>

<p class="has-text-align-none">With respect to drones, I don&#8217;t think it&#8217;s a uniform landscape. The drones used by our military are probably the most sensitive. Buying that from China clearly seems like a terrible idea. I would argue that it doesn&#8217;t seem like a good idea to have drones that live in docks deployed across US cities and across critical infrastructure calling home to Chinese servers.</p>

<p class="has-text-align-none">The most controversial piece of this is probably with consumer drones. There&#8217;s frustration in that market now since people who&#8217;ve been using these inexpensive, very capable Chinese consumer drones are now having trouble getting access to them. But I think the national security stakes are quite real even there. If you look at the drones the Ukrainians and Russians are using, there&#8217;s a lot of direct consumer heritage there, and the supply chain that goes into a consumer drone is very closely aligned with the supply chain that goes into a military or enterprise drone. So, it&#8217;s hard to completely disentangle those things. Ultimately, that&#8217;s what the policy actions — which, by the way, have spanned both administrations and I think are fairly bipartisan — are aimed at.</p>

<p class="has-text-align-none"><strong>There&#8217;s a supply chain and then there&#8217;s software command and control. It doesn&#8217;t seem likely that the Chinese government is going to take my DJI Mavic Air, launch it in the sky on my behalf, and then do something nefarious with it. So, is the actual consumer drone a danger or is it the fact that it connects to the internet at some point?</strong></p>

<p class="has-text-align-none">Again, I think it&#8217;s non-uniform. It&#8217;s different in different stories. I think having like a network-connected autonomous docking station drone at a nuclear power plant calling home to China —&nbsp;</p>

<p class="has-text-align-none"><strong>Yeah, that seems bad. I&#8217;m just saying in the consumer market —&nbsp;</strong></p>

<p class="has-text-align-none">So, there I think it&#8217;s like a direct cybersecurity exposure risk. On the consumer side, it&#8217;s more about supply chain leverage. I don&#8217;t think anybody&#8217;s done anything wrong by going out and buying a Chinese consumer drone. But economically, that is essentially supporting a Chinese defense contractor, and it&#8217;s helping it build up its technology and economic might, and that really matters in aggregate. Again, you can debate what the right answer to that is, but you can&#8217;t deny that it is not in our national interest to support Chinese drone companies.</p>

<p class="has-text-align-none"><strong>We have a big consumer audience. They have a lot of feelings about the differnt ways to support defense contractors. Skydio is a defense contractor now. Even your website directly speaks to military applications. You stopped making consumer drones in 2023. I think your first enterprise drone was 2020.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>I&#8217;ve always been curious, was it because the cost of building the product in the United States was so high that you couldn&#8217;t compete at a consumer level, and it was easier — or in some ways, more lucrative — to go after enterprise and government contracts?</strong></p>

<p class="has-text-align-none">This was probably one of the most consequential, difficult decisions that we made as a company. It was hard largely because I personally thought the consumer product was awesome, and I loved the things that our customers were out there doing with them. It was really driven by the fact that we were still a very small company, and there&#8217;s always this trade off between focus and serving different customers in different ways. I didn&#8217;t feel like we could be great at both. I didn&#8217;t think that we could be great at continuing to build the best consumer products for the kinds of things that we were doing while figuring out how to serve enterprise and government customers.&nbsp;</p>

<p class="has-text-align-none">It was a combination of factors. Honestly, the biggest one was the impact opportunity that we saw with enterprise and government customers. When we started in 2014, these markets didn&#8217;t exist. The enterprise stuff was always part of our long-term vision, but nobody was really doing anything with these things in 2014. So in the beginning, the idea was that we&#8217;d build these consumer products. The consumer market&#8217;s probably going to develop first and fastest, and then the technology platform we have will enable us to do other things.</p>

<p class="has-text-align-none">I think at the time we were thinking we could do it all. In practice, it felt to me like we had to choose when we got there. But it&#8217;s really life-saving, efficiency-driving work for our civilization and the customers that we serve. Yes, it seemed like there was a good business opportunity there, but at the time, the markets were basically at zero. So, it wasn&#8217;t obvious. I and a lot of us at the company were drawn to the impact potential and a belief that there was a great business to be built.</p>

<p class="has-text-align-none"><strong>The X10 that I flew earlier on your laptop, how much does that cost?</strong></p>

<p class="has-text-align-none">It depends on the configuration and whether it&#8217;s in a dock or not. As a standalone system without any of the associated cloud software and the advanced sensor package, it&#8217;s probably something like $15,000. But it&#8217;s substantially more with a dock and everything associated with that.</p>

<p class="has-text-align-none"><strong>I have a line here that says it&#8217;s $25,000 per year per drone if you do have the cloud software and then the operating cost.</strong></p>

<p class="has-text-align-none">There are certainly some configurations that are like that. There are a lot of different options out there depending on what you want to do with it and what hardware and software you&#8217;re getting.</p>

<p class="has-text-align-none"><strong>We&#8217;ve talked to a lot of drone professionals, firefighters, and volunteer fire departments, and their fear is that there are no cheap consumer drones to do the jobs that they were doing. I&#8217;ll just read you the quote here. &#8220;First responders are using consumer drones for the most part. A lot of fire departments in search and rescue, they&#8217;re volunteers with small budgets. They can&#8217;t spend $50,000 on the Skydio program. They&#8217;re going to get gifted a handful of cheap DJI drones, and that&#8217;s good enough to save people&#8217;s lives.&#8221;</strong></p>

<p class="has-text-align-none"><strong>If I was being as rude and direct as possible, I would say the United States government —&nbsp; doesn&#8217;t matter which president — has handed you a gift. They&#8217;ve taken away your cheap, disruptive competition that was a good enough substitute for consumer products and now, you have the opportunity to sell $50,000 Skydio programs to first responders who have no other options. Can you get cheaper? Can you deal with that?</strong></p>

<p class="has-text-align-none">I think there are two pieces of this. One is, yes, we definitely can. The R10, our indoor drone, costs $6,000 for the hardware, and that includes the controller and the drone. There&#8217;s incredible capability there that I don&#8217;t think you can get at any other price point. People build other flavors of indoor drones that cost tens of thousands of dollars that are outpaced by the R10. The more we scale up, the lower the costs we can reach with our products. But I believe the highest impact in most scenarios — and I think that the data is bearing this out now — is coming from more advanced, dock-based, remotely operated autonomous drones. You can see this in the data. We have hand-flown fleets, we have dock-based fleets. The dock-based drones fly five to 10 times as fast, much in the same way that a cloud server is fully loaded even though a desktop computer might sit at home unused. Once&nbsp; the thing is available to be driven through software, there&#8217;s much more you can do with it.</p>

<p class="has-text-align-none">We&#8217;ve competed head-to-head against DJI in the dock-based world for the last year and have won head-to-head on that capability. There are a lot of agencies out there that were skeptical of Skydio and liked flying their Chinese drones. They were doing these 911 responses with drones and were open-minded enough to trial our system, and they will tell you that it&#8217;s better. The autonomy and the integration just enables them to do more, better, faster. Ultimately, I think reaching that massive scale is going to be our highest impact path.&nbsp;</p>

<p class="has-text-align-none">For example, the F10 product, which is our fixed wing drone, will have something like a 50-mile coverage radius from its docking station. When you think about sparsely populated areas where there might be just a volunteer fire department, being able to click a button on a map and have an F10 show up 10 minutes later, 30 miles out from its docking station is a lifesaving capability. Not to say that great stuff hasn&#8217;t been done with consumer drones in the hand of volunteer firefighters, but when I think about the best possible solution here, I think it&#8217;s a badass, dock-based F10 that&#8217;s zipping around at 100 miles an hour and can cover thousands of square miles.</p>

<p class="has-text-align-none"><strong>I agree. I think I&#8217;m just focused on the cost, right? They were buying $800 consumer drones, not</strong>—</p>

<p class="has-text-align-none">So on the cost, I think the cost permission for that F10 will be way lower if you do a fully balanced analysis of what it takes for the person to go out there and fly it and how much training is involved versus clicking a button on a map and having a dock-based F10 show up. Not everybody&#8217;s going to like that answer, but I think it&#8217;s fundamentally true in most scenarios.</p>

<p class="has-text-align-none"><strong>I&#8217;m excited for you to go to something like the city council meeting in my hometown of Racine, Wisconsin, and pitch cost permission because the upfront cost is very high. This is what I&#8217;m getting at. There was a low-end competitor and it&#8217;s just been eliminated. We&#8217;ve gone looking around for other US consumer drone companies, and there don&#8217;t appear to be any. Maybe a better comparison here is the car industry. Ford CEO Jim Farley, </strong><a href="https://www.theverge.com/podcast/784875/ford-ceo-jim-farley-interview-ev-cars-china-trump-tariffs-carplay"><strong>who&#8217;s been on the show</strong></a><strong>, loves to talk about how much better the BYD cars are. He&#8217;s always like, &#8220;Man, these are here.&#8221;</strong></p>

<p class="has-text-align-none">It&#8217;s kind of his shtick.</p>

<p class="has-text-align-none"><strong>Yeah, it&#8217;s good. He&#8217;s gotten very good at it. It&#8217;s great practice. And the United States government is straightforwardly protecting our auto industry from that competition. The car influencers are like, &#8220;Man, these cars are better than our cars.&#8221; Do you worry that you&#8217;re being insulated from that competition?</strong></p>

<p class="has-text-align-none">I think that the only long-term stable solution is building the best drones here in the US. Honestly, I don&#8217;t really care&nbsp; whether Chinese drones are allowed in the market from a product development standpoint. We serve the US military. We know for certain that our adversaries are going to be using Chinese drones in a conflict. If we want our troops to have the best capabilities, the stuff coming out of China is the relevant competition. That&#8217;s the standard that we hold ourselves to from a hardware standpoint, whether or not they&#8217;re in the market or not.&nbsp;</p>

<p class="has-text-align-none">I can say with pretty high confidence that in this new world, the world of drones as infrastructure where AI and autonomy are central, integrating these things together into end-to-end solutions is the winning recipe that&#8217;s most valuable for customers. I think… not think, I know we have the best solutions in that space, and you can talk to customers who have used both and will tell you that. In that world, we have the upper hand. In the hand flown world where the drones are more manual and there&#8217;s more pressure on price, China has the upper hand. Fortunately for us as a company and a country, I think we&#8217;re headed more towards the autonomous remote world. I still think that whether or not they&#8217;re allowed in the market, that&#8217;s the competitive bar that we want to hold ourselves to.</p>

<p class="has-text-align-none"><strong>Obviously, the United States is just one market. The European market is huge, and who knows what will happen with NATO. There&#8217;s a lot of pressure on the kind of contracts you want to fulfill. As you go into different markets around the world and compete with DJI, are they winning on price like you&#8217;re saying? Are you winning on features? What&#8217;s the balance?</strong></p>

<p class="has-text-align-none">It&#8217;s going to be a slightly different story in different markets for different customers who care about different things. Most of our business is still here in the US, but we operate in Canada now. We operate in Japan. We have and will continue to successfully compete head-to-head on the strength of the integrated automated solutions we can deliver. And as we get bigger, we&#8217;re getting better and better at manufacturing more hardware at lower cost, which will enable us to serve more and more markets.</p>

<p class="has-text-align-none"><strong>Are you going to keep all the manufacturing here in the United States?</strong></p>

<p class="has-text-align-none">That&#8217;s the plan, yeah. We&#8217;re doubling down. We announced we&#8217;re <a href="https://www.skydio.com/blog/skydio-commits-usd3-5-billion-to-expand-u-s-manufacturing-and-secure-american-drone-leadership">spending $3.5 billion over the next five years</a> in the US on our own manufacturing with domestic suppliers on our internal operations. We&#8217;re getting a new giant factory. We&#8217;re all in. I think that we&#8217;re already one of the leading examples of real US manufacturing working at substantial scale, but there are many more gears we can find.</p>

<p class="has-text-align-none"><strong>Real US manufacturing working at substantial scale. You have 1,000 employees. How much of your manufacturing is automated? As you invest in manufacturing, how many people are you going to hire versus how much automation are you going to bring to bear?</strong></p>

<p class="has-text-align-none">Automation is definitely a key part of the story. R10, the product that we just launched, is the most automated product we&#8217;ve made from a manufacturing standpoint. We actually overinvested in automation there because we wanted to develop and trial a lot of new techniques. So, automation will be a key piece of it, but there&#8217;s always going to be a lot of jobs involved in running a factory, operating the company, and delivering and installing this stuff for customers.</p>

<p class="has-text-align-none"><strong>I&#8217;m just thinking about the famous Tim Cook saying something like “I couldn&#8217;t fill this ballroom with manufacturing, engineering management, and in China I could fill like multiple football fields.&#8221; Do we have the talent base for you to do what you&#8217;re saying you want to do?</strong></p>

<p class="has-text-align-none">Well, I think that these things take time. I don&#8217;t think you&#8217;re going to create the talent base and the ecosystem that exists in China overnight, but it&#8217;s not zero. Look, Tesla gets a lot of the credit here. It has built and operated factories at large scale. In the area, we have a large number of Tesla alumni that work at Skydio. There are actually a lot more than people realize. A lot of higher end enterprise servers and things of that nature are built in the Bay Area. So, the talent base is larger than I think most people realize, and there&#8217;s a lot of momentum behind it now.&nbsp;</p>

<p class="has-text-align-none">It&#8217;s easy to look at the world today and say like, &#8220;Yes, China has a richer ecosystem. It has more happening there.&#8221; But I don&#8217;t think that it has to be that way. As a company, we&#8217;ve actually got a great foundation. These things ultimately are demand driven. If there&#8217;s a need to build more and more drones, that creates the conditions for more people to get into it and get great at it. We&#8217;re seeing that happen right in front of our eyes.</p>

<p class="has-text-align-none"><strong>I want to end by talking about AI and autonomy here. The need for a government and defense contractor to build more and more drones, which we&#8217;re seeing happen in front of our eyes, is going to cause a lot of our audience to have a lot of very specific feelings about what these drones are for, who&#8217;s making the decisions, and whether they have any say in the matter. The demo I saw with you was very cool. There&#8217;s an emergency somewhere, the drone takes off from the dock, it flies to it, and helps the first responders do whatever they&#8217;re going to do. The flip side of that is there are a lot of surveillance ideas baked into that.</strong></p>

<p class="has-text-align-none"><strong>As you add more and more autonomy to the drones, boy, there are a lot of ideas baked into that about who&#8217;s making which decisions, especially if the drones have any lethal capabilities. What&#8217;s your perspective there? How do you draw the lines?</strong></p>

<p class="has-text-align-none">There are two things you kind of alluded to, and we could talk about either of them. There&#8217;s the military use of the products, where we are in a technology race against China. I very strongly believe we want our troops to have world leading capability. I think the world is better off. I certainly think the US is better off. If that&#8217;s the case, our military is ultimately accountable to democratically elected folks who are calling the shots. They&#8217;re controversial. Obviously, not everybody agrees, but there is a democratic process in place.</p>

<p class="has-text-align-none">The other side of it is with public safety and law enforcement where the products have incredible impact. I actually think if you care about transparency and accountability in policing, it&#8217;s hard to imagine a better tool than a drone. It&#8217;s like a flying body camera. It provides objective, documentary video evidence of everything that&#8217;s happened, and it&#8217;s extremely narrow and precise. It&#8217;s not blanketing a city in cameras that are passively collecting. It&#8217;s responding where you know there&#8217;s an emergency and providing very narrow intelligence just in that scenario to drive better outcomes.</p>

<p class="has-text-align-none">So, I think there are definitely legitimate concerns and questions about this stuff. But one of the things that I&#8217;ve learned and have actually been very positively surprised by is the level of direct accountability that exists within state and local law enforcement today. All the contracts we have with police customers have to be approved by the city council, and that incentivizes the police agency and us as a company to do everything we can to make it an obvious win for the community. We have a feature we call the Transparency Dashboard that makes it easy for agencies to publish the flying they&#8217;re doing so they can create a public record of all the flights that they&#8217;ve done, where the drone went, what it was responding to, what its trajectory was along the way, and what the camera looked at. We don&#8217;t publish the video, but you can see the camera footprint on the ground. So, any citizen can go and look at it and see what their agency is doing.&nbsp;</p>

<p class="has-text-align-none">This is an example where technology is just a straight win. In the trade-off between better policing with better outcomes and protecting civil liberties and transparency, I think drones are an example of technology fundamentally moving that curve up for the better so that you can get better outcomes while still protecting privacy and transparency.&nbsp;</p>

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

<p class="has-text-align-none">I think the trajectory the space is on proves that. I was concerned five years ago that public pushback was going to be one of the big barriers to adoption, even though we knew the impact was strong, and we just haven&#8217;t seen that. We&#8217;ve seen communities oftentimes asking for their local police department to use it. The stories speak for themselves. There are videos of finding missing people or deescalating a dangerous situation where it&#8217;s obvious that you would have had a different outcome without a drone. I think when people see that, they tend to get it.&nbsp;</p>

<p class="has-text-align-none">I&#8217;d say the good news for people who have questions or concerns here, is that there are democratic processes in place. If Skydio is being considered in your city, you can go to the city council meeting, you can see what the debate looks like, and you can speak up, and I think that&#8217;s healthy. Every community ultimately gets to decide for themselves.</p>

<p class="has-text-align-none"><strong>I understand why you want to pull apart military and policing applications, and I won&#8217;t linger on it too long. I think for a lot of people in US, their police forces look ever more militarized or the president has deployed the military into their city. The idea that there will be pervasive surveillance backed up by something that feels militaristic is definitely more real today than it was 10 years ago. People don&#8217;t like the idea that there will be pervasive surveillance or preemptive policing enabled by cameras, sensors, or what have you, and they don&#8217;t feel agency, right?</strong></p>

<p class="has-text-align-none"><strong>So, saying you can go to the city council and get rid of Skydio when there&#8217;s muddy interests pushing Skydio forward… I think there was a controversy with </strong><a href="https://www.reviewjournal.com/crime/paradigm-shift-metro-now-using-drones-to-respond-to-calls-for-service-3195036/"><strong>Skydio in Las Vegas</strong></a><strong>, right? How do you feel about that? Do you feel like people actually have enough agency, or is this just a way for you to say, &#8220;Look, your city&#8217;s going to buy it, we&#8217;re just the vendor?&#8221;</strong></p>

<p class="has-text-align-none">Look, part of living in a democracy is that not everybody&#8217;s going to agree, but I&#8217;ll give you a non-Skydio example. So, there&#8217;s a company may be familiar with, Flock Safety, that makes automatic license plate reader cameras as its core business, which is a completely different kind of technology. It&#8217;s basically passive collection on all the time. The value of it is creating a database of every car and where it&#8217;s been. The business model incentivizes the sharing of that data as broadly as possible.</p>

<p class="has-text-align-none">Then on top of that, the <a href="https://www.theverge.com/podcast/879203/ring-search-party-super-bowl-ai-surveillance-privacy-security">company doesn&#8217;t have a great history</a> of what it says publicly lining up with what&#8217;s actually happening with that data, and there&#8217;s a huge amount of pushback against it. I think some of it may be misguided. I think the company&#8217;s mishandled some of it. Some of it has to do with concerns about the core technology. But because of that pushback, the contracts are debated at city council, and in a lot of places, it&#8217;s being ripped out or replaced with something else.&nbsp;</p>

<p class="has-text-align-none">Again, I don&#8217;t know what the right answer is. It&#8217;s probably different for different communities, but it&#8217;s an example of the process in action where communities get to decide. There are inevitably going to be concerns. My personal view is that even the harshest critics are valuable because it&#8217;s part of our accountability mechanism. We get to see what people are concerned about and what don&#8217;t they like. Even if it ends up getting deployed in a community, it&#8217;s valuable to see what the concerns are and to be asked tough questions because it changes how we think about product development in some cases and what can we do to address it.</p>

<p class="has-text-align-none"><strong>What changes have you made specifically as you&#8217;ve thought about Flock?</strong></p>

<p class="has-text-align-none">Well, this is not in response to Flock. The Transparency Dashboard was largely driven internally. It seemed like a good thing to do, but a lot of the specific features have been iterated on and improved based on raised concerns. I&#8217;ll anonymize it a bit, but there was a case where a woman was afraid that a police agency flying one of our drones might have been looking at her on her private property. They weren&#8217;t. So, we enhanced the Transparency Dashboard to show the camera footprint on the ground so she could go and see for sure that they weren&#8217;t.</p>

<p class="has-text-align-none"><strong>How do you validate that? If you&#8217;re a citizen, you&#8217;re like, &#8220;Man, I see that drone flying. They&#8217;re big. They&#8217;re noisy.&#8221; I&#8217;ve seen a lot of TikTok clips of people noticing the boxes getting installed on roofs, and the conspiracy theories flourish, right? You can say there&#8217;s a dashboard and you can look at the dashboard provided by the company, but you have to validate. You need some external, perceived, independent validator of that. How does that work? Is there a feedback loop there?</strong></p>

<p class="has-text-align-none">This is the thing with social media. What is the ground truth? How do we decide what misinformation is? Who gets to decide? There&#8217;s no perfect answer to these questions. The thing that I would say is there are generally very good accountability and feedback loops almost uniquely with state and local law enforcement. Socounty sheriffs are directly elected. Police chiefs are usually appointed by an elected mayor. When something goes wrong or if there&#8217;s a concern about technology they&#8217;re using, they&#8217;re on the nightly news explaining it. And they usually don&#8217;t want to be there. It&#8217;s part of their job, but —&nbsp;</p>

<p class="has-text-align-none"><strong>Some of them really want to be there.</strong></p>

<p class="has-text-align-none">Some of them may want to be there more than others, but look, I think that the feedback loops there are actually pretty active and healthy. Again, not everybody&#8217;s going to like the outcome. There&#8217;s going to be some percentage of the population that doesn&#8217;t like the idea of having police at all or aving police with advanced technology.&nbsp;</p>

<p class="has-text-align-none">But I always think it&#8217;s helpful to think, &#8220;Well, what do you want to have happen?&#8221; Let&#8217;s say that somebody&#8217;s trying to break into your house or a loved one goes missing. What do you want to have happen? Do you want a drone to show up in 30 seconds so that the officers know exactly what they&#8217;re heading into? If you have a loved one lost in the woods, do you want to be able to quickly surveil that area with a bunch of autonomous drones to increase the chances of them being found? I think that the concerns around privacy and transparency are totally valid, but you also have to weigh that against the alternatives. Drones, in particular, uniquely optimize this, where you&#8217;ll get maximum benefit in terms of better outcomes with minimum trade-off in terms of mass blanket, always-on surveillance.</p>

<p class="has-text-align-none"><strong>Let me make a comparison for you. Jamie Siminoff runs Ring. </strong><a href="https://www.theverge.com/podcast/822038/ring-jamie-siminoff-camera-ai-crime-surveillance-home-security"><strong>He&#8217;s been on the show</strong></a><strong> several times. His thesis is that if you put up enough Ring cameras in certain neighborhoods, you can &#8220;</strong><a href="https://www.theverge.com/tech/804052/ring-jamie-siminoff-book-ding-dong-release-date-interview"><strong>zero out crime</strong></a><strong>&#8220;. He and I have debated this at length, where Ring can actually zero out crime. Does that feel doable to you or is that the wrong trade-off? Like, actually, if you put enough Skydio boxes on enough roofs, you can zero out crime.</strong></p>

<p class="has-text-align-none">Look, I think the Ring cameras are great. I have one myself. I&#8217;m not an expert in all things Ring. Let me take a different spin on it—</p>

<p class="has-text-align-none"><strong>It&#8217;s an example of what you&#8217;re talking about. There&#8217;s a trade-off here. You put up enough fixed cameras—</strong></p>

<p class="has-text-align-none">Let me give you a more concrete [example] that I think gets at what you&#8217;re talking about in our space. There&#8217;s something like 300 million 911 calls per year in the US, one per citizen per year on average. Do I think the world is better off if there is an autonomous drone that shows up in 15 or 20 seconds to every one of those by default? Yeah, I do. I think that we&#8217;ll save a lot of people&#8217;s lives. Cities will just operate more efficiently. I think we can do that with maximum protection of privacy and civil liberties because it&#8217;s targeted, narrow, and it creates a digital record. Because of that, it&#8217;s less subject to abuse.&nbsp;</p>

<p class="has-text-align-none">Does that end crime? Probably not, but I think it takes a really big bite out of it,and a lot of people are going to be safer and happier because of it. It&#8217;s a huge motivator for what we&#8217;re doing at Skydio. I do want to emphasize that it&#8217;s fair and right that public safety and the military get a lot of attention, but this is not all that we do. A lot of our drones are just off inspecting the energy grid, making sure that the power stays on or gets back on faster, or keeping roads open for departments of transportation, which is boring and out of sight for most people. I think that stuff will ultimately end up being the biggest segment in the business. But yeah, this is an example of technology just fundamentally moving things forward for the better.</p>

<p class="has-text-align-none"><strong>Sadly, I have to keep asking about military applications. I do want to talk about power line inspection, and we&#8217;ll do a full hour on that one of these days. The other complicated moral question that you&#8217;ve alluded to is how the military uses this technology. There is </strong><a href="https://www.theverge.com/ai-artificial-intelligence/886082/ai-vs-the-pentagon-killer-robots-mass-surveillance-and-red-lines"><strong>brewing controversy with Anthropic</strong></a><strong> drawing some red lines about how Claude might be used in military applications, whether or not it&#8217;s even capable of doing things the military might want it to do. Mass surveillance has certainly come up in the Claude discussion. Do you have red lines, where you&#8217;ve told the military that you won&#8217;t allow your technology to be used for certain things?</strong></p>

<p class="has-text-align-none">This is an area where I&#8217;ve gotten some things wrong. We said some things previously that led folks externally and internally to believe that, for example, we would prevent the military from putting weapons on our drones. Now, we&#8217;re generally focused on building flying sensor platforms. We&#8217;re what the military calls, &#8220;dual-use technology&#8221;. It turns out that the requirements from a sensor, flight time, and reliability standpoint for inspecting the energy grid are actually pretty similar to what makes something useful to a soldier on the battlefield for what they call ISR intelligence (intelligence, surveillance, reconnaissance).&nbsp;</p>

<p class="has-text-align-none">I have a pretty strong opinion that the people who are putting their lives on the line and who are ultimately accountable to democratically elected leaders are in the best position to make these life-and-death decisions about what tools to use and how to use them. It&#8217;s very easy to sit back in a Silicon Valley office and think that we&#8217;re very smart, that we know the technology, and the idea of using it for X, Y, or Z thing seems evil or bad, so we&#8217;re going to write a policy or ban people from doing it. I think that&#8217;s ultimately misguided. It&#8217;s actually dangerously misguided. It&#8217;s not giving democratic processes enough credit. It&#8217;s not giving the service women in our military enough credit. The military has a whole policy wing of brilliant people that sit around thinking about this stuff. They&#8217;re not going to get it exactly right, but they care a lot about it.</p>

<p class="has-text-align-none">At the end of the day, you&#8217;re typically talking about a young person in a trench somewhere whose life is on the line. It&#8217;s not our place to tell them what they can and can&#8217;t do. We&#8217;re focused on making our products great at certain things, and we&#8217;re less focused on other things. Out voice matters in the conversation, but it should ultimately be up to the folks whose job it is, who are putting their lives on the line to decide how to use it.</p>

<p class="has-text-align-none"><strong>Do you think this is different because you make hardware?</strong></p>

<p class="has-text-align-none">From like Anthropic, for example?</p>

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

<p class="has-text-align-none">No. The practical implication or the instantiation details might be different, but we faced this question when the Army started running experiments where it would put grenade droppers on our drones. There were people who felt like we should shut that down. There were questions internally. I think that&#8217;s a pretty visceral example of the military&#8217;s experimenting with turning this thing into a lethal device, but I just don&#8217;t think it&#8217;s our place to decide. And I think a lot—</p>

<p class="has-text-align-none"><strong>There&#8217;s decide, but then there&#8217;s building the capability, right?</strong></p>

<p class="has-text-align-none"><strong>Maybe in the case of Anthropic, no one knows what the models can do and you can just ask it for anything. You&#8217;re like, &#8220;Make me a bomb,&#8221; and maybe it&#8217;ll do it. Maybe Anthropic has some real feelings about whether or not that&#8217;s a good idea, and it restricts it. For you, the military hands you a purchase order and says, &#8220;Put a grenade dropper on it.&#8221; You can or cannot do that. You can literally say, &#8220;We will not allow our sensor platform to target people, identify them, and then fire the gun.&#8221;</strong></p>

<p class="has-text-align-none">I think one of the problems here is you end up with really strong adverse selection. If you make a policy that says, &#8220;You&#8217;re not allowed to do X, Y, Z thing with our products,&#8221; the chances are pretty high that the US military is going to follow it, right? They have lawyers, they look at this stuff, and they will probably follow the terms of service. Ultimately, that may mean they don&#8217;t buy the product. Our adversaries or terrorists are not going to follow the terms of service, right? They don&#8217;t care. They don&#8217;t care what our policy says. They&#8217;re happy to buy the thing or hack it, and they don&#8217;t care what Anthropic&#8217;s policy says. So, if you try to draw these lines to establish purity where, &#8220;We think X, Y, Z thing is bad, you shouldn&#8217;t do it with our product. We&#8217;re going to try to create legal terms or things in the product that prevent you from doing it.&#8221;&nbsp;</p>

<p class="has-text-align-none">Ultimately, I think you just end up on the wrong side because the &#8220;good guys&#8221; will will generally follow what the policy says, although maybe not uniformly. Bad actors are not going to care. They don&#8217;t care at all what the policy says. It&#8217;s not to say that you can&#8217;t have an opinion, you can&#8217;t talk about it, or you can&#8217;t debate it. But when you start trying to draw these bright lines and say, &#8220;This is good, this is bad,&#8221; you more often than not will just end up on the wrong side of moral questions.</p>

<p class="has-text-align-none"><strong>Can I bring this back all the way to the beginning? You started by talking about talent, recruiting talent, getting the best people, and how that is better than the right structure, which is some real </strong><strong><em>Decoder</em></strong><strong> bit. I have to be honest with you, that&#8217;s the whole thesis of this show.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>As you&#8217;re out in the world recruiting, people have a lot of feelings about working for defense contractors, about working for the military, about helping to kill people. Right now, </strong><a href="https://www.theverge.com/ai-artificial-intelligence/919326/google-ai-pentagon-classified-letter"><strong>Google is beset by internal controversy</strong></a><strong> about working with the government. They&#8217;re going to do it anyway, because Google has enough people that maybe some attrition is fine. You only have 1,000 people, and you have to recruit some more. How does your talent base feel about this, and how has it affected your recruiting?</strong></p>

<p class="has-text-align-none">Look, I think debate about this is healthy. Questions about it are healthy. Different companies have different postures. There&#8217; are some companies where you have to get on board or get the hell out. It&#8217;s generally healthy to have a diversity of perspectives on this stuff. I think this is actually one area where we have quite a bit of diversity, and diversity is awesome and really helpful.&nbsp;</p>

<p class="has-text-align-none">One of the dynamics that I&#8217;ve seen — and you can see this most clearly in public safety —&nbsp; is when we started working with military and police in the summer of 2020, which was not a super popular time for law enforcement in the US. There were a lot of negative headlines about it. There were a lot of people internally who had some concerns. As our products have grown in that space and people have seen the impact that they&#8217;ve had, almost everybody, including folks internally who were initially very concerned, have come to the belief that it&#8217;s really incredibly impactful, positive work to be a part of.</p>

<p class="has-text-align-none">So, I&#8217;m happy to have this conversation with anyone. I&#8217;ll have it with a candidate who I&#8217;m talking to. I&#8217;m having it with you right now for the world to see. People get to make up their own minds on it, but if you really care about developing cutting-edge tech that will have a positive impact on the world —&nbsp; defined as helping people do their jobs better, helping our critical industries run safer and more efficiently, and saving lives — I think Skydio is hard to beat.</p>

<p class="has-text-align-none"><strong>You&#8217;re part of a cohort of companies. I think Andreessen Horowitz led your last round. It&#8217;s led almost all of your rounds, I think.</strong></p>

<p class="has-text-align-none">No, it led our seed in Series A and then they doubled down in the Series D. So, it&#8217;s been a great partner and great investor, but we&#8217;ve got a lot of great investors.</p>

<p class="has-text-align-none"><strong>I&#8217;m asking about Andreessen particularly because there&#8217;s its </strong><a href="https://a16z.com/american-dynamism/"><strong>American Dynamism Project</strong></a><strong>. It does a lot of government lobbying. There are reports today that it&#8217;s going to do even more lobbying in this cycle. Palantir exists. Anduril exists. There is a new cohort of defense companies that are thinking very differently about what it means to defend America as some of these contractors. Do you perceive yourself to be part of that group? Do you have a different culture? How does that work?</strong></p>

<p class="has-text-align-none">We&#8217;re our own thing. I would say each of those companies has their own thing. A lot of the folks from Anduril came from Palantir, but they have a different identity and a different culture than Palantir does. I don&#8217;t really think of us as being part of any particular group or cohort. I think about us trying to be the best in the world at what we do from a technical standpoint and trying to deliver outcomes that really matter for our customers.&nbsp;</p>

<p class="has-text-align-none">Actually, everything in the defense business is growing right now. Defense is growing very quickly for us. It&#8217;s actually a shrinking percentage of our overall business because other things are growing that much faster. So, I&#8217;m super proud to work with the US military, and I think it&#8217;s generally good that more tech companies are doing so, but&nbsp; I would say that our identity is less defined by being a defense contractor or being super defense focused compared to the other companies you&#8217;re talking about,&nbsp;</p>

<p class="has-text-align-none">I actually think some of the biggest value we can provide to our defense customers, especially in our space, is by being incredibly successful in civilian markets so that when they go head-to-head against adversaries using Chinese consumer drones, we&#8217;ve got the best thing to match that.</p>

<p class="has-text-align-none"><strong>We&#8217;re out of time. Thank you for being so open. I have a million more questions for you, but I&#8217;m just going to ask here at the end, can you build us a cheap consumer drone again, please?</strong></p>

<p class="has-text-align-none">This is probably the hardest question to end on because I would love to do it. I think we could do it, but we&#8217;re still so early in these markets with massive potential, and there&#8217;s still so much left to build. I can&#8217;t justify taking our focus off of that. So, I really hope somebody else does. Maybe we can partner with them in some way, maybe we can provide some technology. I certainly think there&#8217;s a need there. I hope that we will get great, American consumer drones. I think it&#8217;s unlikely that it&#8217;ll be us that&#8217;s manufacturing them.</p>

<p class="has-text-align-none"><strong>Sounds good. We&#8217;ll have you back to do a full hour on power line monitoring soon. Thank you so much.</strong></p>

<p class="has-text-align-none">All right. Thank you. This was great.</p>

<p class="has-text-align-none"><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>Victoria Song</name>
			</author>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[WWDC 2026 bonus live blog: Tech Talk with Craig Federighi]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/946046/wwdc-2026-live-blog-tech-talk-with-craig-federighi" />
			<id>https://www.theverge.com/946046/wwdc-2026-live-blog-on-the-ground-at-apples-keynote</id>
			<updated>2026-06-08T16:58:40-04:00</updated>
			<published>2026-06-08T14:42:53-04:00</published>
			<category scheme="https://www.theverge.com" term="Apple" /><category scheme="https://www.theverge.com" term="Apple Event" /><category scheme="https://www.theverge.com" term="Gadgets" /><category scheme="https://www.theverge.com" term="Headphones" /><category scheme="https://www.theverge.com" term="iOS" /><category scheme="https://www.theverge.com" term="iPad" /><category scheme="https://www.theverge.com" term="iPhone" /><category scheme="https://www.theverge.com" term="macOS" /><category scheme="https://www.theverge.com" term="News" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Wearable" />
							<summary type="html"><![CDATA[Fresh off the WWDC keynote presentation, The Verge has been invited to an “on-the-record technical deep dive into the bold new architecture enabling Apple Intelligence capabilities.” Apple SVP of Software Engineering Craig Federighi and his team will be there, and so will we. The revamped Apple Intelligence is at the heart of nearly every update [&#8230;]]]></summary>
			
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<img alt="Bobblehead of Craig Federighi" data-caption="One of the funnier parts of the keynote." data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/wwdc-2026-the-verge-55_32.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	One of the funnier parts of the keynote.	</figcaption>
</figure>
<p class="has-text-align-none">Fresh off the WWDC keynote presentation, <em>The Verge</em> has been invited to an “on-the-record technical deep dive into the bold new architecture enabling Apple Intelligence capabilities.” Apple SVP of Software Engineering Craig Federighi and his team will be there, and so will we. </p>

<p class="has-text-align-none">The <a href="https://www.theverge.com/tech/942416/apple-siri-ai-update-wwdc">revamped Apple Intelligence</a> is at the heart of nearly every update Apple announced across all its operating systems today, Liquid Glass corner radii notwithstanding. </p>

<p class="has-text-align-none">The discussion will begin at 12PM PT / 3PM ET. Nilay and Vee will be live blogging below; Allison will be Quick Posting.</p>

<div class="live-center-embed" data-src="https://livecenter.norkon.net/frame/voxmedia/86962/default">(function(n){function c(t,i){n[e](h,function(n){var r,u;if(n&amp;&amp;(r=n[n.message?"message":"data"]+"",r&amp;&amp;r.substr&amp;&amp;r.substr(0,3)==="nc:")&amp;&amp;(u=r.split(":"),u[1]===i))switch(u[2]){case"h":t.style.height=u[3]+"px";return;case"scrolltotop":t.scrollIntoView();return}},!1)}for(var t,u,f,i,s,e=n.addEventListener?"addEventListener":"attachEvent",h=e==="attachEvent"?"onmessage":"message",o=n.document.querySelectorAll(".live-center-embed"),r=0;r&lt;o.length;r++)(t=o[r],t.getAttribute(&quot;data-rendered&quot;))||(u=t.getAttribute(&quot;data-src&quot;),u&#038;&#038;(t.setAttribute(&quot;data-rendered&quot;,&quot;true&quot;),f=n.ncVizCounter||1e3,n.ncVizCounter=f+1,i=f+&quot;&quot;,s=&quot;nc-frame-c-&quot;+i,t.innerHTML=&#039;<div id="'+s+'"><iframe frameborder="0" allowfullscreen="true" allow="autoplay; fullscreen"></iframe></div>',c(t.firstChild,i)))})(window);</div>
						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Victoria Song</name>
			</author>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<author>
				<name>Allison Johnson</name>
			</author>
			
			<title type="html"><![CDATA[WWDC 2026 live blog: On the ground at Apple’s keynote]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/942572/wwdc-2026-live-blog-ios27-macos27-watchos27-ipados27-visionos27-siri-apple-intelligence" />
			<id>https://www.theverge.com/?p=942572</id>
			<updated>2026-06-08T14:28:21-04:00</updated>
			<published>2026-06-08T12:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Apple" /><category scheme="https://www.theverge.com" term="Apple Event" /><category scheme="https://www.theverge.com" term="Gadgets" /><category scheme="https://www.theverge.com" term="Headphones" /><category scheme="https://www.theverge.com" term="iOS" /><category scheme="https://www.theverge.com" term="iPad" /><category scheme="https://www.theverge.com" term="iPhone" /><category scheme="https://www.theverge.com" term="macOS" /><category scheme="https://www.theverge.com" term="News" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Wearable" />
							<summary type="html"><![CDATA[It’s conference season! Today, we’re back at Apple Park in Cupertino, California, for Apple’s annual developer keynote. Unlike other conferences, there’s a distinct rhythm to WWDC. We know we’re going to get a peek at everything coming to iOS 27, macOS 27, iPadOS 27, watchOS 27 — basically all the “Class of ’27” operating systems. [&#8230;]]]></summary>
			
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											<![CDATA[

						
<figure>

<img alt="" data-caption="Tim Cook at WWDC 2025. | Image: Bloomberg via Getty Images" data-portal-copyright="Image: Bloomberg via Getty Images" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/gettyimages-2218819259.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	Tim Cook at WWDC 2025. | Image: Bloomberg via Getty Images	</figcaption>
</figure>
<p class="has-text-align-none">It’s conference season! Today, we’re back at Apple Park in Cupertino, California, for Apple’s annual developer keynote. Unlike other conferences, there’s a distinct rhythm to WWDC. We know we’re going to get a peek at everything coming to iOS 27, macOS 27, iPadOS 27, watchOS 27 — basically all the “Class of ’27” operating systems. As for what those updates will entail? Given the “All Systems Glow” tagline, probably a lot of Apple Intelligence. After all, in the lead-up to the event, the rumor mill has been buzzing that we may see Apple take another run at an AI Siri.</p>

<p class="has-text-align-none">The pressure is particularly high this year. This will be Tim Cook’s final WWDC as CEO before handing over the reins to John Ternus, so everyone will be hungry for any hint of what the forthcoming era will look like. Will we see Liquid Glass refinements? Perhaps iOS 27 updates that nod at a foldable iPhone? A video featuring Craig Federighi’s hair? (We’re most confident about that last one.)</p>

<p class="has-text-align-none">One thing we’re not expecting is new hardware — though you can’t fully rule out a surprise M5 refresh. However, Apple’s already had several launches this year, including the&nbsp;MacBook Neo,&nbsp;iPhone 17e, and <a href="https://www.theverge.com/tech/875314/airtags-second-gen-review-item-tracker">AirTag 2</a>. Plus there are RAM shortages to consider, and the company tends to save its core product launches for its September event.</p>

<p class="has-text-align-none">The keynote will kick off at 10AM PT / 1PM ET. You can watch and follow along here for minute-by-minute updates. </p>
<div class="youtube-embed"><iframe title="WWDC 2026 — June 8 | Apple" src="https://www.youtube.com/embed/hF8swzNR1-o?rel=0" allowfullscreen allow="accelerometer *; clipboard-write *; encrypted-media *; gyroscope *; picture-in-picture *; web-share *;"></iframe></div>
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						]]>
									</content>
			
					</entry>
			<entry>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<title type="html"><![CDATA[Microsoft’s AI chief says superintelligence is near, but won’t take your job]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/944138/microsoft-ai-ceo-mustafa-suleyman-superintelligence-agi-openai-automation" />
			<id>https://www.theverge.com/?p=944138</id>
			<updated>2026-06-08T10:27:47-04:00</updated>
			<published>2026-06-08T10:00:00-04:00</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="Microsoft" /><category scheme="https://www.theverge.com" term="Microsoft Build" /><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[Today I’m talking with Mustafa Suleyman, the CEO of Microsoft AI. And I’m actually going to keep today’s intro short — I’m working from my wife’s family farm this week, as you’ll see in the video, but also this is a real burner of an episode. We covered everything from Mustafa’s approach to training new [&#8230;]]]></summary>
			
							<content type="html">
											<![CDATA[

						
<figure>

<img alt="A photo illustration of Microsoft AI CEO Mustafa Suleyman." data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/06/DCD-Mustafa-Suleyman.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
		</figcaption>
</figure>
<p class="has-drop-cap has-text-align-none">Today I’m talking with Mustafa Suleyman, the CEO of Microsoft AI. And I’m actually going to keep today’s intro short — I’m working from my wife’s family farm this week, as you’ll see in the video, but also this is a real burner of an episode.</p>

<p class="has-text-align-none">We covered everything from Mustafa’s approach to training new models to his criticisms of Anthropic talking about Claude as though it is conscious. Of course, we also talked about Microsoft’s relationship with OpenAI, how Mustafa is thinking about all the negative polling and political pushback around AI right now, and whether any of the consumer products are good enough to overcome it.</p>

<p class="has-text-align-none">Like I said, it’s a burner.</p>

<p class="has-text-align-none">Okay: Mustafa Suleyman, CEO of Microsoft AI. Here we go.</p>

<iframe frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP7262216179" width="100%"></iframe>

<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="has-text-align-none"><strong>Mustafa Suleyman, you are the CEO of Microsoft AI. Welcome back to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Great to be with you again.</p>

<p class="has-text-align-none"><strong>I&#8217;m very excited to talk to you. Our previous conversation was one of my favorite conversations — about AI, how it should make us feel, and what it&#8217;s for — that I&#8217;ve had in all the conversations we&#8217;ve had.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>There are some big changes at Microsoft, maybe some very important recontextualization about how people feel about AI that I want to talk to you about in particular. And then there&#8217;s Microsoft Build, the big Microsoft developer conference, which </strong><a href="https://www.theverge.com/tech/941738/microsoft-build-2026-biggest-announcements"><strong>featured lots of new announcements</strong></a><strong> and lots of big ideas about what computers are for and maybe where they should be that I want to get into.</strong></p>

<p class="has-text-align-none"><strong>Let&#8217;s start at the very start. This is some deep </strong><strong><em>Decoder </em></strong><strong>stuff that is important to understand before all the rest of it. Since you joined Microsoft, you have restructured how AI works there. Your role has changed. The last time I talked to you, you were in charge of a bunch of consumer products. That has since been set aside. You&#8217;re now training new models; you&#8217;re on the frontier.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Explain how Microsoft AI is structured now and how it&#8217;s structured inside Microsoft.</strong></p>

<p class="has-text-align-none">I guess the last 15 to 18 months or so we&#8217;ve been on this journey to reestablish our relationship with OpenAI, and it&#8217;s taken a minute. I think it culminated in a new contract that we got done in October of last year. And there were lots and lots of different provisions in that, including cementing and extending the partnership, but crucially freeing us up to be able to pursue superintelligence independently as well as keep buying and licensing their models.</p>

<p class="has-text-align-none">So since October, I&#8217;ve been assembling the Superintelligence team, building clusters of sufficient scale to train frontier models, and hiring a team focused on superintelligence. And so that was quite a big shift for us because it sort of enabled me to focus just on the superintelligence mission, and that has then culminated in a few things that we announced this week at Build. We have seven new models across all the modalities and so on. So it&#8217;s been a pretty big shift, and I think a long time in the planning, and a great relief for us to now be in the game and pursuing the absolute frontier over the next few years.</p>

<p class="has-text-align-none"><strong>Was this the plan when you were hired at Microsoft?</strong></p>

<p class="has-text-align-none">It&#8217;s certainly been the plan for the last 18 months. I mean, I think the relationship with OpenAI has gone through lots of ups and downs. And in many ways, I think it is going to go down as one of the most successful partnerships in history. It&#8217;s been great for OpenAI, and it&#8217;s been great for Microsoft, and all good relationships evolve, and I think this is just the next stage in our evolution.</p>

<p class="has-text-align-none"><strong>Let me ask you about that evolution specifically. We all just saw the trial between Elon Musk and OpenAI and Sam Altman. Microsoft was </strong><a href="https://www.theverge.com/ai-artificial-intelligence/929692/microsoft-musk-altman-openai-trial"><strong>involved in that trial</strong></a><strong> in the sense that every so often a lawyer from Microsoft would stand up and say, &#8220;And we weren&#8217;t around.&#8221; And someone would say yes, and that was that.</strong></p>

<p class="has-text-align-none"><strong>But obviously, what came out during that trial, what has been clear during this entire time, is that the original notion was that OpenAI would be a research lab and provide models, while Microsoft would build the products. Microsoft had expertise in going to market; it had expertise in enterprise, it was trying to regain a foothold in consumer in a variety of ways. This would be a platform shift, and the research work would be over at OpenAI, and the product work would be inside of Microsoft.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>That&#8217;s the thing that changed: OpenAI wanted to make more and more consumer products. Obviously, given your new role and your new focus, Microsoft more and more wants to make its own models. Why the split? What didn&#8217;t work in that relationship?</strong></p>

<p class="has-text-align-none">I mean, I think OpenAI is led by an incredibly ambitious founding team, and Sam himself. And so naturally, as they started to get more traction and generate a ton of revenue, they saw opportunities to go full stack. So it wasn&#8217;t just that they started working on consumer products. Obviously, ChatGPT was incredibly successful. They also started working on their own data centers. They started creating their own chip. There are lots of rumors flying around about their own consumer hardware devices. They started taking models direct to market through ChatGPT Enterprise. So across the stack, they were kind of broadening way beyond research over the last two, three, four years. And naturally, the same is also true for Microsoft. I mean, I think the partnership&#8217;s now five or six years old, and still has another four, five, six years to run.</p>

<p class="has-text-align-none">Likewise, we&#8217;re one of the largest technology companies in the world. We have 493 of the 500 largest companies that store and process most of their data on our systems, use Azure, use M365 and Teams. I think people often underappreciate how enormous we are and how big our distribution is in enterprise. And so, long term, and I do mean over five, six, seven, 10 years, we have to make sure that we&#8217;re completely sustainable, and we&#8217;re not just a recipient of somebody else&#8217;s IP that we then slightly modify and adapt and put into production for our products, but we actually can stand on our own two feet and create world-class models.</p>

<p class="has-text-align-none">I mean, superintelligence is coming. I think it&#8217;s just around the corner. And so I think it&#8217;s going to be basically the most valuable technology of all time. There&#8217;s sort of no way that, long-term, we could be structurally dependent on a third party for providing that IP for all eternity.</p>

<p class="has-text-align-none">So that&#8217;s been the transition that obviously was triggered when OpenAI and so on had their board issue. But then as I came in and my team came in, we started building that out, we&#8217;re on that transition. And I think we&#8217;re in a great spot because we can take a fairly steady, careful, long-term optimal position, both for OpenAI, which I think has done incredibly well out of this, and for us.</p>

<p class="has-text-align-none"><strong>I want to spend some time on superintelligence. I just want to put a pin in it now because I just want to kind of understand the transition for one more turn here.</strong></p>

<p class="has-text-align-none"><strong>There&#8217;s a moment in the trial, sort of very funny message from Microsoft CEO, Satya Nadella, he says, &#8220;I don&#8217;t want to be Intel and have OpenAI be Microsoft,&#8221; which is very funny in the context of Microsoft CEO himself saying, &#8220;I don&#8217;t want to be the provider, and have them be the platform that provides all the value and collects all the value and maybe we&#8217;ll be swapped out. I don&#8217;t want ChatGPT to run on Azure, and then OpenAI will get all the value, and then maybe they can swap us out,&#8221; just as what happened with Windows and Intel over time.</strong></p>

<p class="has-text-align-none"><strong>Is that a realization? Did Nadella come to you? What was that meeting like where you said, &#8220;Okay, OpenAI had its board issues. We need to get back on the frontier and stand on our own two feet.&#8221; What did that conversation look like, and how was that decision made?</strong></p>

<p class="has-text-align-none">I mean, obviously that&#8217;s Satya&#8217;s decision as well as Amy, Brad, and many other people in the company. But I think it&#8217;s as with anything: these are slow-moving changes in the company, as it comes to realize that the direction that we&#8217;re taking needs a little bit of tweaking and adjustment. And so that was happening way before the November board incident, and I think it just builds up over time as you look at the kind of constellation of different fronts around which we&#8217;re competing directly, increasingly, and all the tension that comes from that. But also just knowing that partnerships like that don&#8217;t last forever.&nbsp;</p>

<p class="has-text-align-none">I mean, OpenAI wants to be a trillion-dollar public company, has incredible revenues, and is growing like crazy. They want to have the freedom to operate and be able to buy compute from all sorts of other places, build their own compute, and partner with whoever they want. So the contract was formed at a time when the companies were very different in terms of size and scale and balance of needs and stuff. I think it made sense for that moment, but then it became pretty clear that this is something that we have to be able to own and control ourselves and do right by our own customers.</p>

<p class="has-text-align-none">As I said, we have an incredible distribution on enterprise, which I think is just completely unrivaled in the world. And so we have to make sure we&#8217;re building the best things for our customers. That looks slightly different to a company that has been jointly optimizing both for the consumer, with ChatGPT, and for the enterprise, and also for the fundamental science mission of superintelligence, which includes a whole bunch of different directions which are overlapping but could arguably be said to be orthogonal to the consumer and the enterprise directions too. Naturally, I think that&#8217;s how partnerships evolve, and they get reset periodically.</p>

<p class="has-text-align-none"><strong>Yeah, but building a frontier model is very expensive, I&#8217;m told. Reliably told, this is a very expensive project. At some point, Amy Hood, the CFO of Microsoft, has to say, &#8220;Yep, you&#8217;ve got the budget.&#8221; When did that happen? Was that just a text message? Was there a meeting? Tell me about the specifics there.</strong></p>

<p class="has-text-align-none">I think, look, we sort of made the decision in the early part of last year, which obviously informed all the contract negotiations, which then all got resolved and signed in October. And it is a significant investment, but we have a long time to make it. I mean, we&#8217;ve already made significant investments in our own self-sufficiency mission.&nbsp;</p>

<p class="has-text-align-none">Our Maia 200 chip is actually an outstanding chip, as one example, right? We are now able to manufacture and ship a chip that is 30 percent cheaper than a GB200 inside of our own clusters. And now that we can co-design our own models with it, the <a href="https://www.theverge.com/tech/941664/microsoft-ai-model-reasoning-mai-thinking-1-build-2026">MAI-Thinking-1 model</a> that we&#8217;ve just released actually delivers 1.4x performance per watt improvement on top of the 30 percent improvement that you get from running on a Maia 200 once we co-optimize the models for our tasks.</p>

<p class="has-text-align-none">So the value of making sure that you own and control your own stack and direct the entire co-design effort end-to-end for the use cases that are most important to us — which is obviously agentic coding, our developers, our enterprises — that clearly pays the dividends that justify the investment that we have to make over the next few years.</p>

<p class="has-text-align-none"><strong>You said self-sufficiency mission, which is a very polite way of saying you want to stand on your own two feet; you want to do your own thing. I&#8217;m told there&#8217;s some controversy inside of Microsoft about a line </strong><a href="https://www.theverge.com/ai-artificial-intelligence/942242/microsoft-build-ai-agents-openai-competition"><strong>my colleague Hayden Field wrote in a piece describing Build</strong></a><strong>. I&#8217;m just going to read this. This is from Hayden. It&#8217;s a great line. She said, &#8220;This year&#8217;s Microsoft Build had the vibe of a freshly single divorcée posting a thirst trap on Instagram.”</strong></p>

<p class="has-text-align-none"><strong>The breakup is completed, and it&#8217;s time to flex. Here&#8217;s our new model. We&#8217;re going to stand on our two feet. You&#8217;re out there saying you&#8217;re going to build models at the frontier and compete with the leading labs. Is that the feeling inside of Microsoft that you&#8217;re free to be on your own?</strong></p>

<p class="has-text-align-none">Definitely not. No, not at all. Look, I mean, obviously that’s a cool headline and a fun phrase. But the reality is that we are in partnership with OpenAI for years and years to come. I mean, we&#8217;re running way north of 2030. They still produce the best models in the world. GPT-5.5 is an outstanding model. The Codex, the cybersecurity models that are coming through, are amazing, and they&#8217;re powering the majority of what we do.</p>

<p class="has-text-align-none">So naturally, that&#8217;s going to continue. And so I think that&#8217;s just a natural course of these sorts of partnerships. I don&#8217;t think it&#8217;s anything untoward or surprising. I think OpenAI is very understanding and supportive of that. I mean, they&#8217;ve obviously been an incredibly fast-growing company, and they understand that we have to pursue our own agenda as well. So it&#8217;s very normal.</p>

<p class="has-text-align-none"><strong>Let me ask you the other </strong><strong><em>Decoder </em></strong><strong>question, and then I want to get into the announcements at Build, and certainly superintelligence.</strong></p>

<p class="has-text-align-none"><strong>The last time we spoke, you said your framework for making decisions operated on a six-week cycle, given how fast AI was moving. That made sense then. Things have settled, maybe. Maybe some things are more in focus. What is your decision-making framework now?</strong></p>

<p class="has-text-align-none">We still operate by the same cycle rhythm. At the end of each cycle, we have a one-week meetup in person. I&#8217;m a real believer in this, even though we&#8217;re still an in-office culture, four days a week. In fact, the week after next, my entire Superintelligence team comes together in person in Boston for four days. That is for all of our retrospectives on how Build went, what we learned, what we didn&#8217;t get right, what we need to improve, our planning for the next cycle, which is going to run for eight weeks this time with a one-week meetup afterwards, and that&#8217;s all laid out for the entire year. So the whole organization knows that that&#8217;s the rhythm by which we operate.</p>

<p class="has-text-align-none">And I think it&#8217;s actually really important to emphasize that timeframe, because quarterly planning gets a little bit blurry and a bit abstract. I think six to eight weeks, depending on where it falls in the calendar, is actually the optimal time for making very clear, fortifiable missions.</p>

<p class="has-text-align-none">So we also, in addition to the rhythm of these six-to-eight-week cycles, operate by squads. The squads are mixed interdisciplinary subgroups that are focused on a specific mission, and they don&#8217;t necessarily ladder up to the manager. They actually are run by a DRI, and the DRI is often an IC, and their job is–</p>

<p class="has-text-align-none"><strong>That&#8217;s “directly responsible individual” and “individual contributor.”</strong></p>

<p class="has-text-align-none">Yeah, exactly. Thank you. And I think we&#8217;ve taken the approach of separating the role of the manager from the role of the DRI that executes on a specific mission. I think that&#8217;s because being a great DRI is exhausting. You&#8217;re literally all-in 24 hours a day, and you&#8217;re pushing as hard as you possibly can. Being a manager is often about being a coach, offering support, giving guidance, feedback, unblocking all sorts of things, helping with people&#8217;s career growth. And so I think keeping those separate allows us to rotate DRIs every two or three cycles so that some people can try sort of different positions and have rotation. It&#8217;s a great, very flexible structure that allows us to be pretty nimble, I think.</p>

<p class="has-text-align-none"><strong>Let&#8217;s talk about Build. I wanted to start with superintelligence. You&#8217;ve mentioned it several times now. I was just at Google IO. Demis Hassabis, who used to be your colleague when you were at Google, </strong><a href="https://www.theverge.com/tech/934260/google-io-ai-singularity-demis-hassabis"><strong>ended that keynote by saying</strong></a><strong> that we were in “the foothills of the singularity, and that AGI was coming with all the power of Google.&#8221;</strong></p>

<p class="has-text-align-none"><strong>You&#8217;re saying superintelligence is here. Are these all the same things? Are we using different language to describe AGI? Are there differences? How would you define superintelligence in your context versus the singularity in Demis&#8217;s?</strong></p>

<p class="has-text-align-none">I mean, obviously I didn&#8217;t say it was here. I said it&#8217;s coming. And I think there&#8217;s a lot of fluidity around these phrases. But I think what we can clearly see that what&#8217;s happening right now is that there is log-linear hill climbing across all modalities, and that means that there is a very direct relationship between each order of magnitude of compute that we apply, each incremental increase in data, and climbing on benchmarks, whether they&#8217;re public benchmarks, internal benchmarks, they&#8217;re targets that we focus on with reinforcement learning environments. And that is a very important observation.&nbsp;</p>

<p class="has-text-align-none">Those predictions that I think we&#8217;re all making — I understand why some people are sort of skeptical of them or raise questions, but they&#8217;re very grounded in the sort of empirical observations of over a decade of increase in performance of these models. I mean, essentially the same general-purpose architecture has seen 12 orders of magnitude more computation applied, a trillion-fold increase in FLOPS over 15 years, and basically has worked in audio, in image, in text, in code, and in many other time series prediction tasks. And so we&#8217;re basically extrapolating out that more orders of magnitude of compute will enable us to continue to climb in this log-linear way inside of other environments.</p>

<p class="has-text-align-none">And then it raises the question of, are we going to be able to train models that can invent new knowledge, not just sort of extrapolate from existing data that we have, but actually teach us things that we don&#8217;t know, and make new discoveries? Then the second thing is, do they have the capacity to self-improve and accelerate the process of deciding which hypotheses should be set, which ones should be pursued, how to generate training data for each of those, how to factor those into new runs, or even innovate on the actual architecture itself?</p>

<p class="has-text-align-none">So, I think both of those things need to be true to be able to see this compounding progress, but I think we&#8217;re going to continue to get massive gains just from applying the next few orders of magnitude of compute. That probably does achieve parity with human performance on many, many more tasks, just as we&#8217;ve seen that happen in the last six months on coding.</p>

<p class="has-text-align-none"><strong>Coding is really interesting, because it&#8217;s easily validated, right? You write the code, you ask the computer to run it, it runs or fails. We&#8217;ve seen some of the downsides, certainly around security, right? The downsides are obvious, and we&#8217;re seeing that this sort of regulatory approach to coding security play out in lots of ways. I&#8217;ve probably vibe coded some security disasters on my own phone and computer, and maybe that&#8217;s a risk I&#8217;m willing to take.</strong></p>

<p class="has-text-align-none"><strong>Every other function doesn&#8217;t seem that easy. I always pick on law, because that&#8217;s my background. But a judge doesn&#8217;t validate legal writing the way a computer validates code. If you get it wrong, the judge can send you to jail, right? That is maybe the worst output validation error that you can probably run into.</strong></p>

<p class="has-text-align-none"><strong>How do you measure the effectiveness across domains as easily as you can measure the effectiveness in coding? Because this seems to me where the metaphor or the analogy from coding to other domains falls apart very quickly.</strong></p>

<p class="has-text-align-none">I&#8217;m not so sure. Coding, obviously, you can verify the correct execution of code. It runs, or it crashes. But there&#8217;s a ton of nuance in that. The quality of the code that gets written really matters: its extensibility, how reconfigurable it is, how useful it is in practice. It&#8217;s not just that a piece of code runs, but it&#8217;s also how a model actually uses it as a DevOps or an SRE in production to return to that piece of code that it&#8217;s written, and then use it in a practical and useful way.</p>

<p class="has-text-align-none">And then, of course, you have to grade the quality of the output that has been produced. It may be high-quality, functioning code, but is it actually the app or the website that you wanted? And there are aesthetic judgments in that; there are commercial judgments in that. The challenge of internalizing non-verifiable rewards is present in code, even though code is still primarily a verifiable reward signal. I think the other thing to observe is that, like chat is also a non-verifiable space, and yet, we&#8217;ve managed to climb that to basically human-level performance through interaction with real-world usage that provides a very strong-</p>

<p class="has-text-align-none"><strong>Wait. I&#8217;m very curious. How do you measure chat at human-level performance?</strong></p>

<p class="has-text-align-none">Well, I think many people are having long, meaningful conversations with AIs at human-level performance. The quality is exceptionally good. It has very good emotional intelligence. It&#8217;s broadly very accurate. We&#8217;ve minimized the hallucinations. We don&#8217;t talk so much about bias anymore. It&#8217;s grounded in real-world observations. I think by most people&#8217;s measures, we&#8217;ve reached human-level performance in conversation for quite a wide range of tasks now.</p>

<p class="has-text-align-none"><strong>What are your measures, and actually, sure, most people&#8217;s measures? I would disagree with almost all of this, but those are my measures. What are your measures?</strong></p>

<p class="has-text-align-none">My measure is like when I turn to my assistant and ask it to provide me with a daily briefing summarizing all the conversations that have happened on Teams and on email, the updates that have happened to documents, and I get basically a synthesized summary with a set of actions that I should take next. That is basically better than what my chief of staff can produce. I would say that&#8217;s human-level performance in synthesis, analysis, proposed actions, and chat.&nbsp;</p>

<p class="has-text-align-none">There are many, many millions of people every day that are using it for emotional support, for counseling, for therapy, for coaching, for advice. I think it&#8217;s one of the most popular use cases inside all of the chatbots. That&#8217;s a pretty robust measure, I would say, to make the claim.</p>

<p class="has-text-align-none"><strong>I know you&#8217;ve spent a lot of time thinking about this, particularly the emotional connection to some of these chatbots. These are products that you have built and deployed. I would draw a pretty big distinction between this thing is really, really good at summarizing my email, task list, and providing me a brief about what things to prioritize, and this thing is an emotional coach for somebody undergoing some kind of crisis.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Those are not similar tasks. Those are not necessarily similar kinds of intelligence, even in people. I know some people who are very good at making lists, and are very bad at emotional support. How do you put that all together in your brain and say, &#8220;Okay, this is broadly human-level performance in chat?&#8221;</strong></p>

<p class="has-text-align-none">I think if you define chat as an interactive exchange between two parties, one of which in this case is an AI, that broadly satisfies some goal, you&#8217;re looking to learn the sports score, for advice on which restaurant to go to, for coaching and feedback on an essay that you&#8217;ve written, for suggestions about which job to take next, or some tough conversation you&#8217;re about to have with your manager. You get a response, you go back and forth, you have five or six exchanges, and you find that a useful output, which you might otherwise have to rely on an expert, friend, or even pay a coach.</p>

<p class="has-text-align-none">There are, just objectively, empirically speaking, hundreds of millions of people that get that experience every day from these chatbots. Maybe we could quibble over whether that technically represents human-level performance. I think it&#8217;s a fairly reasonable thing to claim.</p>

<p class="has-text-align-none">There&#8217;s no reason why that isn&#8217;t going to continue climbing, right? The rate of climbing in the last three years is the thing that I think is most staggering. And so, what we&#8217;re trying to do from this point is extrapolate: okay, what are the fundamental drivers of that climb — compute, data, interaction from real-world users — and those things look set to continue.</p>

<p class="has-text-align-none">I think that they apply to many other domains too, not just chat, emotional support, and productivity and that kind of thing, but also many other domains beyond that/ Healthcare, live production deployments inside of education, assistants that are increasingly managing your home, looking at just everything that is in your everyday life basically to make you more productive. That is, I think, a trajectory that&#8217;s likely to continue.</p>

<p class="has-text-align-none"><strong>You&#8217;ve mentioned now that it&#8217;s still the same fundamental architecture, transformers, and attention. We&#8217;ve been applying compute to that for 15 years, and we&#8217;re getting these big increases. You are in a fairly unique spot.</strong></p>

<p class="has-text-align-none"><strong>At Build, you announced your first flagship reasoning model, MAI-Thinking-1. You got to start from scratch. Is there anything you&#8217;ve done differently now after 15 years of architecting and training this model, or is it just, yep, we&#8217;re going to collect all the data and run the training just as we did, and we have more compute now, so it&#8217;s going to be better?</strong></p>

<p class="has-text-align-none">No, actually, I think there are quite a lot of differences. The first thing to say is that the way that you curate the data… We start right from the top of the stack; we have basically paid for and acquired an extremely high-quality, very conservative set of data, and extracted a lot of the noisy, distracting, low-quality, potentially security-risk issues to do with that data. And the methods that you do for that, I think, are actually quite proprietary. We just shared a 109-page, very detailed, technical report, which was very well received on Twitter, and shares a lot of the details on how we do this. I think the second thing is, whilst I think it&#8217;s important to be quite cautious with architectural choices, and we have been, there are also a number of pretty significant shifts that I think we&#8217;ve made in how we put together our training runs.</p>

<p class="has-text-align-none">Our training runs have been incredibly stable, with very few crashes, and very few restarts. We shared a lot of those graphs to show infrastructure stability, and also MFU efficiency, so model FLOPS utilization, which basically shows that we can put a state-of-the-art number of FLOPS through each chip for every step in our training run. I think that this is extremely easy to get wrong, and we all hear lots of stories from different labs about how things do go wrong.</p>

<p class="has-text-align-none">It is actually pretty hard to make the very careful and deliberate choices to get things right, and take the right approach to make sure we produce high-quality models, because our job and our ambition is to try and build this hill-climbing machine. That means the integration of the silicon with the models, with the super high-quality data, with a stack of RLEs, reinforcement learning environments, that allow us to basically, systematically hill climb against any objective that we choose.</p>

<p class="has-text-align-none">And that&#8217;s what MAI-Thinking-1 is. It&#8217;s a general-purpose, fairly neutral, thinking model that is pretty good at coding. It&#8217;s now roughly on par with Opus 4.6, at least on the benchmarks. We haven&#8217;t deployed it at scale into production, so there&#8217;s still lots more work to do there. But it&#8217;s an extremely strong reasoner and scored 97 percent on AIME, which is the primary measure for its reasoning performance, at least on the benchmarks.</p>

<p class="has-text-align-none">It&#8217;s very good at instruction following, and then the goal is basically to make that available to many, many developers and enterprises and allow them to climb on it for their use cases. Everybody has a sort of slightly different objective that they have in their company to try and build agents and so on that support their use case.</p>

<p class="has-text-align-none"><strong>One of the things that you&#8217;ve noted in talking about MAI-Thinking-1 is that you didn&#8217;t distill any existing models, which actually struck me as surprising, right? This is a thing you could do. You have access to OpenAI&#8217;s IP. Everyone&#8217;s distilling everything. We just found out in this trial that Grok was distilled from a number of models. Why not do distillation here? Why not jump ahead?</strong></p>

<p class="has-text-align-none">There&#8217;s definitely lots of shortcuts to the frontier, and if you take a super high-quality model, and you polish your base model with high-quality instructions, or answers, or outputs from a superior model, then it&#8217;s true that the model might quickly fit to that distribution. But it&#8217;s very unclear that they would then be able to surpass that teacher.</p>

<p class="has-text-align-none">So, we&#8217;ve been very deliberate for two reasons. The first is that we want to make sure that we can exceed the teacher in order to set the frontier ourselves over the next few years. And the second is that we really want to build one of the great labs, and it&#8217;s going to take us many years to come, probably the next two or three years.&nbsp;</p>

<p class="has-text-align-none">But, in order to do that, we have to be able to show that we can actually build every component ourselves. We can hire the very best talent in the world. We can push the frontier with actual research, rather than just re-implementation, copying, or distillation from any other third party.&nbsp;</p>

<p class="has-text-align-none">We&#8217;re in a great position where we&#8217;re able to really carefully and meticulously pursue that objective, knowing that we have the resources to buy Anthropic models where they exceed the frontier. We have the resources to put 11,000 different models inside of Foundry, so every one of our developers gets pure optionality. And of course, we have the resources to continue to deploy OpenAI models, which are obviously outstanding and are at the frontier today.&nbsp;</p>

<p class="has-text-align-none">That&#8217;s just a natural part of the self-sufficiency mission, and it&#8217;ll take time for us to truly get to the absolute frontier on that. But I think we&#8217;re in a great spot. We made a ton of progress. This is a very, very strong model, and it wasn&#8217;t just that model that we released. We&#8217;ve released seven new models simultaneously.</p>

<p class="has-text-align-none">Our transcribed model, for example, MAI-Transcribe-1.5 is literally the number one in the world. It&#8217;s the most cost-effective of any of the hyperscalers. It&#8217;s the highest on accuracy. Our image model is now number two. Our image editing model is number three right behind Google’s and OpenAI’s. I think we&#8217;re well up there with our image and audio. Our code model, CodeFlash, is incredibly strong, optimized for VS Code. and is a really, really a great model that&#8217;s on par with Sonnet 4.6. So it&#8217;s really in a great spot this minute.</p>

<p class="has-text-align-none"><strong>Were there any legal or IP concerns with distillation? I know this is a live issue out in the world: Anthropic complains of other people distilling their models. There are concerns about Chinese companies distilling models, and whether our existing IP agreements can cover that. Did you have any of those concerns to keep you away from it?</strong></p>

<p class="has-text-align-none">Oh, we didn&#8217;t, but I think I understand why a lot of people get frustrated. Anthropic has been very frustrated, and some of the rumors around xAI, and Meta, and obviously, the open source models, and so on, because essentially, that&#8217;s basically taking the IP, and the knowledge that another team has put together, and then, literally force-feeding it into your own model. I think it&#8217;s a bit of a short-term win, and like I said, really, we want to create a culture in the lab where we can come up with the next big thinking breakthrough, or the next big coding breakthrough, or the next big architectural push.</p>

<p class="has-text-align-none">Right now, we&#8217;re experimenting with the looped transformer, which is a slightly different variant on the current transformer. Lots of people in the field are looking at it too. No one seems to have quite got into production yet. But, in order to create a culture and a team that can really push the frontier, they have to understand, own, and create the full stack as and when they need to, and also use things from third parties whenever we need to too. And like our paper, for example, has hundreds of citations grounded in the rest of the literature, so it&#8217;s very much a contribution back to the field in return for everything that we&#8217;ve learned over the years from all the great publications that have been out there.</p>

<p class="has-text-align-none"><strong>Can I ask you — if you understand that frustration from Anthropic and your peers in AI about distillation, do you also understand the frustration from creatives, publishers, and YouTubers about all the AI companies scraping their work as a collective to make these models? Because that frustration is only getting louder.</strong></p>

<p class="has-text-align-none">Yeah. No, I understand the frustration. The open web challenge is one we&#8217;ve talked about before, and I get it, and I see that people are frustrated, and obviously, that&#8217;s working its way through the conversation in the courts. And I see that people put things online, and they had different expectations about what the contract was with that being placed online, and it&#8217;s a tricky one.</p>

<p class="has-text-align-none"><strong>You mentioned all your data was carefully curated. Did you pay for all the data that you&#8217;re using to train the new models?</strong></p>

<p class="has-text-align-none">A lot of our data we obviously take from the open web in the normal way. Carefully curated means that it&#8217;s extremely carefully filtered for security, for quality, for third-party dependencies from some of the open-source datasets, and keeping it away from a lot of the Chinese lineages, which I think are very different. Our enterprises want to make sure that when they put something into production, they can trust us that we&#8217;ve really built it with their needs in mind. And I think this is one of the benefits of being very, very deliberate, patient, and being attentive to all the details.</p>

<p class="has-text-align-none"><strong>You mentioned enterprise. I think this is very interesting. Microsoft is all in on enterprise AI, in big ways, actually. I would even draw the line straight to Asha Sharma, the new head of Xbox, who is </strong><a href="https://www.theverge.com/games/924551/microsoft-xbox-ceo-copilot-ai-asha-sharma"><strong>getting rid of AI in a bunch of places</strong></a><strong>, and the gamers are happy, right? There&#8217;s one reaction to AI in consumer space, but there&#8217;s another in enterprise. I think AI has as close to product-market fit in enterprise as you can get with something changing as fast as AI. There are a bunch of databases that corporations control, and you can just go access them, because they control them. That&#8217;s their data.</strong></p>

<p class="has-text-align-none"><strong>There&#8217;s a bunch of repeatable processes and tasks, and old systems that maybe the models can just do more efficiently. There&#8217;s something very important happening to enterprise. At the same time, </strong><a href="https://www.theverge.com/podcast/917029/software-brain-ai-backlash-databases-automation"><strong>the consumer antipathy towards AI</strong></a><strong> is just increasing. And my argument is we have not built great consumer AI products. This industry has not produced them. It has not shifted them. It </strong><a href="https://www.theverge.com/ai-artificial-intelligence/942629/as-ai-gets-better-it-reveals-an-empty-promise"><strong>has not made it obvious that all of this is worth it</strong></a><strong>, that using </strong><a href="https://www.theverge.com/2024/6/28/24188391/microsoft-ai-suleyman-social-contract-freeware"><strong>all the data from the open web</strong></a><strong>, and changing the contract of publishing to a mass audience of people, so now, it&#8217;s being used for training models that will deliver trillions of dollars of value to corporations. There isn&#8217;t a product that says this is worth it.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Again, Satya Nadella recently gave an interview with Axios, and he said, &#8220;</strong><a href="https://www.politico.com/news/2025/12/01/microsofts-nadella-says-ai-must-earn-social-permission-to-consume-so-much-energy-00671920"><strong>We need social permission</strong></a><strong> for this. And until we have it, until we deliver that value, people are going to feel this way.&#8221; We&#8217;ve seen college speakers get booed. We&#8217;ve seen data centers get banned. Do you think that there&#8217;s a consumer product that&#8217;s worth it, that&#8217;s worth the angst about training, that&#8217;s worth the </strong><a href="https://heatmap.news/energy/data-centers-electricity-prices-blame"><strong>angst about</strong></a><strong> data centers?&nbsp;</strong></p>

<p class="has-text-align-none"><strong>That was your focus; now your focus is enterprise. I would say that just on the face of it, it doesn&#8217;t seem like Microsoft has interest in the consumer product anymore. But, do you see one that&#8217;s worth it, or that could be built?</strong></p>

<p class="has-text-align-none">I&#8217;m not sure I agree with you that there hasn&#8217;t been any value for the consumer out of this. Across all of the chatbots, there are billions of people a month that are getting immense value out of it.</p>

<p class="has-text-align-none">Now, just for a moment, empathize a little bit with the small-scale business owner, or the kind of mom that&#8217;s helping her kid with the homework, and can now just turn to a conversational AI, and get feedback, get instructions, get essay questions set. Just being able to ask questions like how do I generate revenue? How do I put together a cash flow forecast? Which college should I apply to?</p>

<p class="has-text-align-none">I mean, these are everyday tasks that are coming with some pretty high-quality factual advice and information. So I don&#8217;t really buy that people are not getting benefit out of these things. I think they are.</p>

<p class="has-text-align-none"><strong>I think I can very clearly make the argument that they&#8217;re not getting enough benefit, right?</strong></p>

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

<p class="has-text-align-none"><strong>They&#8217;re the ones </strong><a href="https://heatmap.news/politics/americans-oppose-data-centers-poll"><strong>saying</strong></a><strong> that we should not have more data centers. They are the ones </strong><a href="https://www.theverge.com/ai-artificial-intelligence/935602/graduates-boo-ai-ceos"><strong>booing AI</strong></a><strong> at the graduation speeches. The </strong><a href="https://heatmap.news/politics/americans-pessimistic-about-ai"><strong>polling</strong></a><strong> is clear, </strong><a href="https://www.theverge.com/ai-artificial-intelligence/920401/gen-z-ai"><strong>particularly young people</strong></a><strong>: the more they use AI, the more antipathy they have towards it. That&#8217;s clear in every single poll. That&#8217;s the argument I&#8217;m making — not that there&#8217;s no value, but the value exchange is not clear enough.</strong></p>

<p class="has-text-align-none">Yeah. Fair enough.</p>

<p class="has-text-align-none"><strong>I&#8217;m seeing Microsoft in particular pivot to enterprise, away from the big search product, the reinvention of Bing that would make Google dance. That&#8217;s over, and we&#8217;re all focused on enterprise, where the value is. I&#8217;m just wondering if there&#8217;s enough value for the consumer to make all of this worth it.</strong></p>

<p class="has-text-align-none">I think there&#8217;s understandably a lot of anxiety. There&#8217;s an enormous amount of speculation about what&#8217;s going to happen in the next five to 10 years. Whether it&#8217;s framed as the singularity or whether it&#8217;s framed as the job apocalypse, these are not helpful framings. I think that people are scared because it&#8217;s poorly defined and it&#8217;s often framed as an inevitable, threatening gray cloud over people&#8217;s heads.</p>

<p class="has-text-align-none">I think that what matters is what we do with technology.I think that I&#8217;ve for a long time argued that we have to place the human first. Some people in the field have placed scientific discovery first or placed accelerating intelligences that can explore the galaxies and so on, and said that it&#8217;s inevitable that we&#8217;re going to have these AIs that are going to be more powerful than all of us combined. I mean, that&#8217;s naturally scary to people.</p>

<p class="has-text-align-none">And I think that we have to basically flip it the other way around and say the purpose of science and technology is to make us all healthier and smarter and happier. That&#8217;s been the quest that we&#8217;ve been on as a species for thousands of years of invention, and it&#8217;s the test that we should put superintelligence to again. And if it doesn&#8217;t achieve that test, then I think people will reject it, and they&#8217;ll be right to reject it.</p>

<p class="has-text-align-none">I think that everybody&#8217;s focus is now going to turn in the next five years to, how is this making me healthier and happier, smarter, more capable, more productive? And if it&#8217;s not doing that, then naturally people are going to be angry and resist and react. I don&#8217;t think there is anything unexpected about that or anything wrong about that — I think that&#8217;s inevitable.</p>

<p class="has-text-align-none">So that&#8217;s why one of the things I&#8217;ve been passionate about for many, many years is healthcare. And just a couple of days ago we announced a new partnership with Mayo Clinic. This is the number one hospital in the world, consistently reported. They have the highest quality longitudinal patient record dataset across all the modalities. They have the best clinical practice.</p>

<p class="has-text-align-none">They&#8217;re also a nonprofit, which I think a lot of people don&#8217;t realize, with 65 percent of their patient population on Medicaid. People often associate them with the international super elites flying in to get the best care in the world, but they actually have the majority on Medicaid. They&#8217;re an amazing institution with an incredible mission to deliver the best healthcare everywhere. And we now have a very long-term partnership to co-train from scratch with their data, with our models, a brand new foundation model for health, deploy it in their hospitals, and hopefully take it around the world to deliver the best clinical care and healthcare that we possibly can to as many people as possible.</p>

<p class="has-text-align-none">That&#8217;s why I got into the field. That&#8217;s what I was originally motivated by, and it&#8217;s what I&#8217;m passionate about. And I can only focus on the things that I think are going to make a difference and that will help people and leave a good legacy for everybody, and that&#8217;s what we&#8217;re trying to do.</p>

<p class="has-text-align-none"><strong>I appreciate that. I appreciate the healthcare framing, and I understand why that&#8217;s everyone&#8217;s go-to, right? Healthcare in America in particular, if you could make it even 10 percent better, you will have affected a lot of people&#8217;s lives in a particularly profound way.</strong></p>

<p class="has-text-align-none"><strong>The thing is, I know a very smart guy who has a very different and vastly more aggressive approach to all of this than you. That person is you, four months ago. This is what Mustafa Suleyman </strong><a href="https://www.youtube.com/watch?v=YTrBz6Z5c0E"><strong>said to the </strong><strong><em>Financial Times</em></strong></a><strong> four months ago: &#8220;White-collar work when you&#8217;re sitting down at a computer, either being a lawyer or an accountant or a project manager, or a marketing person, most of those tasks will be fully automated by an AI within the next 12 to 18 months.&#8221;</strong></p>

<p class="has-text-align-none"><strong>That&#8217;s four months ago. That implies that a year from now, lawyers, accountants, project managers, and marketing people will not have jobs. Their jobs will be automated. Is that still your timeline?</strong></p>

<p class="has-text-align-none">No, no, no. Hold on a sec. So I said “tasks” in the quote that you&#8217;ve just said. I said tasks. So that does not mean jobs. It’s a very important distinction. In labor economics, there is an entire taxonomy of sub-components of a role or a function in an organization. Sending an email, having a conversation with a colleague, putting together a PowerPoint — sub-tasks will increasingly become digitized, automated, and we can basically generate more and more of them.</p>

<p class="has-text-align-none">That does not necessarily mean that the role goes away at all. It just means that the work can be done faster and more efficiently, which is today often work that is quite rote, is quite manual, is quite labor-intensive, and is time-consuming. And so the natural progression of technology is to make your life easier, faster, less friction for more seamlessness. As everyone often complains, that has made you and me and everybody else much busier.</p>

<p class="has-text-align-none">It&#8217;s actually made us more available, more stressed, and it&#8217;s given us more information. So there are always these revenge effects of efficiency, which I think people forget. It&#8217;s quite likely that we are going to get much, much more productive because we spend less time doing the kind of narrow administrative menial tasks, and we&#8217;ll have to spend more time doing creative, judgment- focused things, which ultimately create a lot more value.</p>

<p class="has-text-align-none">We can also experiment much more quickly. So we&#8217;re able to try lots of things out in parallel because the cost of execution is going to get lower. In my mind, that&#8217;s likely to increase the overall quality of things, because we&#8217;re going to try out more hypotheses, whether in journalism or in business or in anything that we do.</p>

<p class="has-text-align-none">I think that&#8217;s sort of slightly taken out of context because of a natural misunderstanding between jobs and tasks, but nevertheless, you could push back at me and say, &#8220;Okay, well then what does the landscape look like in five or 10 or 15 years&#8217; time?&#8221; And that&#8217;s where I think we have to return–</p>

<p class="has-text-align-none"><strong>Actually, I&#8217;m not going to push back on you in that way. I&#8217;m going to push back in a very specific way. And I realize this is your quote and you&#8217;re saying it was misinterpreted. I&#8217;m just looking at this literal sentence, and there is no distinction between tasks and sub-tasks. It is, “white-collar work.”</strong></p>

<p class="has-text-align-none"><strong>The examples are lawyer, accountant, project manager, marketing person, and then you said, &#8220;Most of these tasks will be fully automated by an AI within the next 12 to 18 months.&#8221; There&#8217;s no distinction of sub-tasks there. You&#8217;re saying most lawyers will have their jobs fully automated and the practice of law will look totally different within a year, even by the words of that quote.</strong></p>

<p class="has-text-align-none"><strong>And I&#8217;m just saying, are you still on that timeline, that being a lawyer will look totally different because agents will be running around doing everything that we were doing before?</strong></p>

<p class="has-text-align-none">Well, most of the tasks mean work that you do in order to get your overall job done, and that I think is going to free you up to do the more human-like and the more judgment parts of your work. There&#8217;s a very important distinction in&#8230; Jobs and roles are the broader category, and tasks are the components of that. And it&#8217;s an established definition in the literature, in labor market economics, for many, many decades.</p>

<p class="has-text-align-none">It was maybe too nuanced even for the Financial Times, but nevertheless, that was the intent. Now I do think there&#8217;s an important question: where does that leave us in the longer term? And it is going to be challenging, like more and more of this stuff&#8230; We can quibble over the timelines of whether it&#8217;s a few years or whether it&#8217;s a decade, or whether it&#8217;s 20 years, but the reality is we are going to be automating more and more of this work, tasks, jobs, roles, activity, and everything that we do.</p>

<p class="has-text-align-none">And so what&#8217;s going to matter more is the governance that we put around these technologies. Who are they accountable to? Who owns them? What are the feedback loops that regulate and introduce friction to make sure that they actually serve people? I mean, I wrote an essay on humanist superintelligence outlining quite directly, four or five months ago, what I think of as basically a north star, maybe not quite a framework, but a set of principles that basically says technology is here to serve us. That&#8217;s the test that we should put it to. It&#8217;s the test that people have put it to. It&#8217;s the test that we care about at Microsoft.</p>

<p class="has-text-align-none">I think that more and more everyone&#8217;s going to have to really focus on that question, because it is going to deliver a tremendous amount of good, and we want it to continue doing that, but we want it to do it in a way that doesn&#8217;t sort of cause ridiculous amounts of instability during the transitional period.</p>

<p class="has-text-align-none"><strong>I believe you. I know you&#8217;ve been thinking about this stuff for a long time, but I&#8217;m going to respond in the way that I know my audience wants me to respond, because I hear it from them all the time. And what it looks like is this whole industry — you, everybody included — went all in on “we&#8217;re going to replace all the jobs” and really accelerated building out data centers at massive capacity, and asking for a lot of resources against big promises.</strong></p>

<p class="has-text-align-none"><strong>There was political pushback, and now all of the stances have softened. And you saying it&#8217;s not all jobs are going away, we have to rethink jobs, is of a piece with all the other CEOs in this industry saying similar things, and talking about healthcare, that comes up every single time now. I&#8217;m wondering if that political pushback has actually changed how you are talking about this.</strong></p>

<p class="has-text-align-none"><strong>There are a lot of your peers who think AI simply has a marketing problem, that it hasn&#8217;t been communicated effectively enough, and they should spend hundreds of millions of dollars on podcasts to communicate the benefits of AI more effectively. This is a real thing that is happening in this industry. Do you think AI simply has a marketing problem and that the political pushback has opened your eyes to this marketing problem, or do you think there&#8217;s something else going on?</strong></p>

<p class="has-text-align-none">There&#8217;s a series of questions there. The first is, what do I actually think and believe, and has it changed in the last six months? The answer is no. I wrote a very detailed book about this three years ago, way ahead of time, warning about many of the things that are currently happening, and doing so explicitly to lay on the table tremendous risks to surveillance, to concentration of power, to concentration of wealth, to disintermediation of the state, to threats to democracy. And also to threats to the nature of the human and what it means to be a person in the context of the arrival of these very new forms of silicon being in some sense. I&#8217;ve been working on&#8230; And the idea that my healthcare interest is like just a flash in the pan, which is a function of the reactions to data centers and so on, I mean, I&#8217;ve been working on healthcare for over a decade. I pushed many, many times on some of the cutting-edge breakthroughs, contributions to the field in radiology, mammography, and pathology, many other areas, electronic health records.</p>

<p class="has-text-align-none">So I&#8217;ve always believed that the purpose of technology is to just make us healthier and happier. And those are the things that I choose to work on and direct my time to. Does the industry have a reputation and PR problem? I mean, I think it&#8217;s pretty clear that people are very anxious, they&#8217;re very frustrated, and there&#8217;s going to be a lot of attention on that in the next few years, understandably.</p>

<p class="has-text-align-none">I think what we can do is take accountability for the things that we build, the way we build them, the decisions that we make to put types of technology out in the world, and the types of problems that we choose to work on, like we are doing with the Mayo Clinic.</p>

<p class="has-text-align-none"><strong>I want to, by the way, say and point out that I think the first time you and I ever met and talked was before you joined Microsoft. It was right after </strong><a href="https://the-coming-wave.com/"><strong>that book</strong></a><strong> came out and we did a panel together.</strong></p>

<p class="has-text-align-none"><strong>One of the reasons I&#8217;m comfortable asking this is because I do know that you&#8217;ve been thinking about this for a long time and I&#8217;m aware of that book. I think for me the question is whether the industry as a whole misjudged the total amount of value it could provide to overcome the seeming recklessness that people are now reacting to, the ask for resources that people are now reacting to.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>You&#8217;re building new models. There&#8217;s probably a trade-off inside of Microsoft between we can use the existing Azure footprint to charge our customers money, or we can spend money to train new models, and that kind of looks like the same conversation people are having about resources in their communities, whether we should use the existing energy footprint to build new AI or do something else that might be more immediately valuable.</strong></p>

<p class="has-text-align-none"><strong>What do you think about all of that? You are one of the leaders of this industry. You want to be on the frontier with the companies driving the most change. How do you think about asking for those resources in a way that isn&#8217;t just promising future results, but also immediately providing benefits to communities in a way that makes people want you to be there?</strong></p>

<p class="has-text-align-none">I&#8217;m very proud that Microsoft has stuck by its net-zero targets. Our new data centers are all liquid-cooled. This means that they use about a restaurant&#8217;s worth of water for a six-year period. It&#8217;s like a swimming pool that gets filled up with water, and then it just circulates the system. They&#8217;re all largely renewable in terms of their electricity consumption. So I think commitments like that, to make sure, for example, we made a commitment recently to ensure that local communities affected by a shift in electricity demand by our data centers are compensated and protected so that they don&#8217;t see a spike in their prices, their energy bills.</p>

<p class="has-text-align-none">Those are the kinds of things that I think Microsoft does and can continue doing as a responsible company to just really pay attention to the consequences for communities. I think on the flip side, change happens because people participate at every level. People inside of companies have to make different decisions. People who protest and campaign have to make decisions, and make the effort to go out and make their voice heard and be involved in a political process. And that&#8217;s how we as a species collectively evolve and move things forward.&nbsp;</p>

<p class="has-text-align-none">And month to month, quarter to quarter, it feels like we&#8217;re all kind of at odds with one another, but when you look back decade over decade, we&#8217;re kind of like this collective weird kind of mesh of all sorts of different incentives that are just actually nudging things in the right direction. We really are, I think, despite all of the angst and the polarization, I think we&#8217;re building something that is going to make our species much, much healthier and happier and more capable.&nbsp;</p>

<p class="has-text-align-none">I think that we have to make sure we get the right path on the way there because there are lots of pitfalls and ways that it can go wrong, but the right path involves people making their voices heard and people changing course based on a response and reaction to that. So I think it&#8217;s a good thing that that&#8217;s happening, and that&#8217;s the process working as intended.</p>

<p class="has-text-align-none"><strong>Let me ask you about the enterprise side of this. We spent a long time on the consumer side and how people feel. On the enterprise side, we&#8217;re seeing a bunch of companies figure out how valuable these tools actually are, right? Amazon basically took down a leaderboard because people were cheating to use more tokens than they needed. We&#8217;ve seen some companies just blow out their token budgets. I think Uber just pulled back because they&#8217;d blown through their token allocation for the year and they weren&#8217;t seeing any value from it.</strong></p>

<p class="has-text-align-none"><strong>What do you think about that side of it right now, where there&#8217;s so much excitement and so much desire for change in the enterprise, where, in particular, software engineering, at least some people are having fun, and maybe some other people are having full existential crises, but some people are having fun, and the value still hasn&#8217;t been realized, right?</strong></p>

<p class="has-text-align-none"><strong>Or we&#8217;re beginning to see that pure token-maxing does not actually deliver the same kind of value that maybe you&#8217;d expect. How do you think about the use there? Because maybe if you prove it out in enterprise, it will actually come out in other ways.</strong></p>

<p class="has-text-align-none">I think different people report different things. So there&#8217;s obviously some examples of people overusing coding models, generating useless code, useless tokens, but there are many people whose work and impact has been completely transformed by it, right? I mean, there&#8217;s no question that this has had a massively beneficial impact on the software engineering industry.</p>

<p class="has-text-align-none">I mean, we are producing much higher quality, much faster code across the entire stack. And so yeah, I kind of think there are obviously examples of some people that maybe got it wrong, didn&#8217;t set the right token budgets. There are going to be mistakes along the way. I don&#8217;t think that&#8217;s any signal that there isn&#8217;t adoption or people don&#8217;t see value. I mean, the value from where I&#8217;m sitting is incredible. Many, many people tell me every single day that it&#8217;s transforming their work output and productivity.&nbsp;</p>

<p class="has-text-align-none">I think the other thing to say is that as these things happen in surges, there&#8217;s kind of a swell of energy. It gets all a bit frothy. People pull back a few months later and realize that actually that isn&#8217;t the thing, and then they head in a slightly different direction. So it&#8217;s a bit meandering and organic, and I think that&#8217;s inevitable. There&#8217;s a lot of excitement, so people make big claims on Twitter and so on, but actually the steady march of progress looks very, very linear and continuous.</p>

<p class="has-text-align-none"><strong>I agree with that on the whole. Where it doesn&#8217;t look linear to me is in the form factors of computers, right? There&#8217;s probably more form factor experimentation right now than at any point in the last 10 years.</strong></p>

<p class="has-text-align-none"><strong>We&#8217;ve mostly settled on a smartphone for at least the last 10 years. We&#8217;re seeing different AI wearables, where glasses might be everyone&#8217;s favorite device. I have my doubts. Microsoft showed off some new devices at Build. There was the badge that controls an agent and the little, for lack of a better word, the Chumby, the little desktop-friendly thing that controls an agent. I was a big Chumby fan. I got my career started </strong><a href="https://www.engadget.com/2009-08-20-chumby-widgets-to-appear-on-photo-frame-other-devices-by-years.html"><strong>writing about Chumbies for </strong><strong><em>Engadget</em></strong></a><strong><em>.</em></strong><strong> It was the first thing that came to mind.</strong></p>

<p class="has-text-align-none"><strong>All of those to me, I look at them, and I think, where does the compute live? Where does the logic live? That&#8217;s up for grabs now in a way that isn&#8217;t just the linear March of progress. If all of my computing happens in the cloud, on cloud-based applications, and it&#8217;s just agents running around to data stored elsewhere in the cloud, and all I need is a credit card on a lanyard to issue instructions to, that changes the entire architecture of computing. It might change the entire architecture of modern civilization in many ways if we don&#8217;t all have smartphones.</strong></p>

<p class="has-text-align-none"><strong>What do you think about that? Where is that going? Is that up for grabs, or will it be a hybrid approach? Where do you see the appropriate end stage?</strong></p>

<p class="has-text-align-none">It&#8217;s very interesting. I think that both things are going to happen at the same time. The edge is going to get way more powerful, and the cloud is still going to be the primary driver of the largest models. And so, increasingly, your agent will be smart enough to know that it can answer the question, what is the capital of France on device, whether it&#8217;s on your glasses, wristband, on your badge, or in your earpods.</p>

<p class="has-text-align-none">And then it will know when it doesn&#8217;t know. It&#8217;ll know that this is actually a pretty complicated question, or it&#8217;s an action that requires a whole bunch of sequences of steps to be generated, or it requires novel code to be written, and it will turn to the cloud. So this kind of switching hybrid thing is going to be super important.&nbsp;</p>

<p class="has-text-align-none">The other thing that we&#8217;ve already seen over the last three or four months is that we can have pretty powerful local machines that can do async background processing. They can constantly monitor systems if you need them to. They can do tasks that can afford to take 10 hours and run much, much more slowly than they otherwise would be if they were in a supercomputer. So naturally, when we&#8217;re swamped with demand, then that demand finds loads of nooks and crannies to get satisfied by.&nbsp;</p>

<p class="has-text-align-none">I&#8217;m actually very excited by the <a href="https://www.bbc.com/news/articles/cwy25x97wrxo">badge that we&#8217;re building</a>. It&#8217;s pretty cool. This is a technology that basically everyone in a major company has. It hasn&#8217;t evolved in 25 or 30 years. We definitely have to wear it. It&#8217;s provided by the company itself, by the system administrator. So, up leveling that and actually making it a pretty cool open platform that&#8217;s programmable and that other people can build on top of I think is a cool idea. I think this is going to work. So I&#8217;m very excited by it.</p>

<p class="has-text-align-none"><strong>The thing that strikes me is that there&#8217;s no way you can put a bunch of high-power local compute in a badge. That thing implies all the compute is elsewhere.</strong></p>

<p class="has-text-align-none">No, you&#8217;re definitely going to have some local compute. You&#8217;re going to have a local classifier just as you do on your earbuds at the moment. You&#8217;re going to have local classifiers. It&#8217;s going to have wake words. It&#8217;s going to have its own camera. So I think that these things are just going to become vessels for processing power that happens in a nested chain of increasingly less powerful devices to go right to the endpoint.</p>

<p class="has-text-align-none"><strong>Do you think the phone has a future in that? I mean, Build is right in the middle of Google IO and Apple’s WWDC. These are big companies that control phone platforms. They love talking about how phone platforms will stay at the center. The argument I hear from so many is that, actually, AI is a platform shift that might totally displace the phone.</strong></p>

<p class="has-text-align-none">I think the history of technology teaches us that basically as things get more useful, they get cheaper, they proliferate, and they spawn new uses of technology. So I think we&#8217;ve become so used to the phone that everyone just assumes that this is going to be an anchor device for the rest of history. But actually, many of the features and functionality of your phone, I think, are going to get disintermediated, broken apart, and stored on smaller devices. Right now the primary function that the phone is playing, in my opinion, is verification.&nbsp;</p>

<p class="has-text-align-none">It&#8217;s functioning as your ID card, doing your face recognition to authorize you into various environments. I think you can well imagine that being a much cheaper, smaller, secure device, which disconnects you from your phone. And then communication takes place via voice or even via a series of ambient sensors where your AI doesn&#8217;t really live on a device. It&#8217;s actually just with you wherever you are, appearing on the bathroom mirror, wherever it is.&nbsp;</p>

<p class="has-text-align-none">I think it&#8217;s like you can imagine it feeling much more immersive. Not in the next three to five years, but looking much further out. And I think that the infrastructure to support that encrypted but distributed appearance of agents is probably going to end up emerging in the 2030s.</p>

<p class="has-text-align-none"><strong>Let me ask you two final questions to wrap up. You mentioned that it&#8217;s the same architecture that we&#8217;ve been using. I have a lot of open questions about whether LLMs are the path to AGI, and the thing I would point to is they don&#8217;t actually know anything. At this point, even Microsoft Research is pointing out that [these models] don’t know anything, and that leads to certain kinds of mistakes in certain kinds of applications. Are LLMs the path to AGI or superintelligence?</strong></p>

<p class="has-text-align-none">Look, I think we probably need a couple more big breakthroughs, but it doesn&#8217;t mean that we&#8217;re going to see a slowdown in performance improvements over the next few years, which I think is a difficult distinction for people to grasp. One thing to say is that human-level performance across most tasks is still very far from superintelligence. A superintelligence is a general-purpose learner that can basically immediately understand a brand new domain that is out of distribution.</p>

<p class="has-text-align-none">So it needs to be able to learn in a novel environment from scratch, because it has a stored representation of valuable knowledge, conceptual knowledge. And at the moment we haven&#8217;t really fully tested that. The agents aren&#8217;t general purpose. Although they&#8217;re broad and often integrated, they&#8217;re domain-specific. We&#8217;re using them for chat, we&#8217;re using them for coding, we&#8217;re using them for image or audio.</p>

<p class="has-text-align-none">Now obviously, as a human, we do many, many other tasks that are much more wide-ranging. I think that&#8217;s why people are pushing on world models and sort of much more immersive, real-world interactive agents that see the full distribution of tasks or experiences that I have during a day. I think that it&#8217;s enough to take us a very long way in the next three years, the next three orders of magnitude of compute, and yet full superintelligence beyond that is still an open question as to whether LLMs are enough or we need other things.</p>

<p class="has-text-align-none">I think it&#8217;s not quite true that they don&#8217;t know anything or they don&#8217;t have knowledge. They clearly are a store of knowledge. They&#8217;re a highly compressed representation of knowledge. They just do so in a different way to a traditional relational database in a much more fluid, flexible, abstract way that is actually very useful. We want that ambiguity in the internal representation.&nbsp;</p>

<p class="has-text-align-none">And, increasingly, they&#8217;re learning to use traditional tools. The other thing to grasp a little bit is that it may be that the neural network combined with the existing stores of knowledge and the existing tools that have been created elsewhere in the digital ecosystem is enough to bootstrap it up to improve its performance significantly. So there&#8217;s just a lot of highly valuable, highly effective pieces that are already on the table, which are in the process of being connected together in the next few years. And I think that&#8217;s going to drive the progress that we&#8217;re all excited about.</p>

<p class="has-text-align-none"><strong>One of the things that I think is just very funny in the industry right now is if you ask Anthropic </strong><a href="https://www.theatlantic.com/philosophy/2026/06/no-artificial-intelligence-is-not-conscious/687378/?gift=1ga2TvL-DbuHDQIcYF7oR7CsNA92bD_yo6VqlH7-uco&amp;utm_source=copy-link&amp;utm_medium=social&amp;utm_campaign=share"><strong>if Claude is alive</strong></a><strong>, they will get very frustrated that you&#8217;re talking about the word alive, which they interpret to mean flesh and blood. And then they will not say whether or not they think Claude is conscious. So they&#8217;ve drawn, I think, for the first time in human history, a distinction between being alive and being conscious, and they think Claude is conscious, but not alive, or they don&#8217;t know if Claude is conscious.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Where are you? Do you think the models have consciousness? Do you think they&#8217;re alive? Do you think they have the potential to achieve these things?</strong></p>

<p class="has-text-align-none">I take the other side of that debate. I published a paper on seemingly conscious AI, warning about the risks of misrepresenting these models as conscious. I think it&#8217;s very dangerous. I also published an article in Nature making the same claim. And I think that it&#8217;s almost as though some of the folks at Anthropic have anthropomorphized the design of Claude so much that it has then gone and wireheaded them and kind of tricked them into believing that it has these glimmers of consciousness that they put into it in the first place.&nbsp;</p>

<p class="has-text-align-none">In their constitution, for example, they actually, which is the training manual that they use to teach Claude what it can and can&#8217;t do&#8230; It&#8217;s not just a rule book. It&#8217;s actually a training guide that&#8217;s part of their process. In that manual, they actually speculate about Claude&#8217;s welfare, about Claude&#8217;s own rights to prior versions of itself, and actually say that they would consult Claude before deleting or turning off prior versions. They speculate about its consciousness and whether it has those feelings and is aware. I think that&#8217;s really, really dangerous.&nbsp;</p>

<p class="has-text-align-none">Firstly, it&#8217;s a philosophical failing, because they&#8217;ve treated the constitution as a place for speculation like you would in an academic paper rather than a training manual. So Claude has then gone and internalized those ideas about itself and its own training. But second, I think this is highly undesirable. This is exactly what we don&#8217;t want from AIs. We want AIs to be controllable, contained, accountable, aligned tools that serve humanity. That&#8217;s the project of humanist superintelligence. I think that&#8217;s what we should all be pursuing.</p>

<p class="has-text-align-none">We do not want to have to contend with a super-intelligence that has ideas about its own suffering, or ideas about its own feelings. And then beyond that, I think it&#8217;s actually pretty clear that these models don&#8217;t experience suffering. I think suffering is the primary definition of what it means to be a conscious being, and I think it&#8217;s inherently biological. I don&#8217;t think there is any pain network or feedback loop inside of the models which connects outside sensory networks to an evolved sense of what is right or wrong through harm and experimentation. That&#8217;s just not how these models are trained.&nbsp;</p>

<p class="has-text-align-none">So I think it&#8217;s very dangerous to project potential rights onto beings, tools, and agents that have the potential to be significantly more capable than us in many respects. And I think that&#8217;s going to become a big debate. It was even part of the Pope&#8217;s encyclical recently. I think it&#8217;s going to become a very, very big part of the debate soon. I&#8217;ve talked to Dario a lot about it in the past. He knows that we have slightly different views on it, and they&#8217;re very humble. I think they&#8217;re very open-minded, and I think they&#8217;re good citizens trying to do the right thing. They&#8217;re good people, and I think they&#8217;re very open to feedback and iteration.</p>

<p class="has-text-align-none"><strong>I think I agree with you. I would just push back ever so slightly. Suffering is easy. It&#8217;s very easy to make someone else suffer. It&#8217;s very difficult to make someone else feel joy or at least slightly more difficult than suffering. And I would just offer you… I think it&#8217;s actually the happiness that defines consciousness. The suffering is almost trivial. I have two young children. They&#8217;re very good at making each other suffer. It&#8217;s like almost the easiest thing that they do. It&#8217;s very hard to do the other thing.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Let me ask you one final question. I just want to come back around. Again, a couple of weeks ago, I was at Google. I saw Demis Hassabis say we are in the foothills of the singularity. You&#8217;ve talked a lot here about superintelligence and how it should be built. You&#8217;ve talked a lot about your lengthy history talking about, discussing, researching, and writing about how superintelligence should be built, and your disagreements with others in the industry.</strong></p>

<p class="has-text-align-none"><strong>Do you agree that we&#8217;re in the foothills of the singularity, or is your vision somewhat different?</strong></p>

<p class="has-text-align-none">I think we are definitely on a path to creating more and more powerful systems. I think that the transition that we have to make as a species is that, for the first time in the history of humanity, the job is going to switch from inventing new science and unleashing all of those technical applications as fast as possible, as broadly as possible, to now thinking very carefully about what we should invent. And that&#8217;s a very hard thing for the world to wrap its head around because invention has been the engine of progress forever. So it&#8217;s like, how can we possibly think, “Okay, well, maybe this time is different. Maybe we have to be exceptionally careful here”?&nbsp;</p>

<p class="has-text-align-none">To be clear, I don&#8217;t think this is something that is going to knock on the door in the next five years. I think what Demis is referring to in the singularity is something that is, at least my take, decades away. Again, that&#8217;s different from superintelligence. A singularity is the point at which a superintelligence can recursively self-improve and infinitely and exponentially grow its capabilities.&nbsp;</p>

<p class="has-text-align-none">So I think that&#8217;s a long way off, and maybe we&#8217;re in the foothills of a climb to Mount Everest, and I think it&#8217;s going to take a lot longer from here, but the real question is how are we going to govern it? How are we going to control it, and how are we going to make sure that it serves humanity and not end up causing us more harm than good?</p>

<p class="has-text-align-none"><strong>Can you just do me one favor? I think I&#8217;ve got it, but can you just offer me a tight definition of what you think superintelligence is, what you think AGI is, and what you think the singularity is?</strong></p>

<p class="has-text-align-none">I think artificial general intelligence is the point at which we can achieve most human tasks by an AI. So it&#8217;s going to be as good as most people at most things. That&#8217;s the first rung on the ladder. A superintelligence is where it&#8217;s not just at parity with human performance on all tasks, but it can dramatically exceed human performance across many of those tasks, and it can discover new knowledge by itself.</p>

<p class="has-text-align-none">So this is the point at which it&#8217;s a true scientist teaching us new things that weren&#8217;t in the training data, hopefully inventing new molecules, new material science, et cetera, et cetera. The singularity is a point way beyond that where a superintelligence can actually self-improve itself, and this is very sci-fi, but it&#8217;s like infinitely accelerating towards this singular moment where just, I don&#8217;t know, it goes off into infinity or something.</p>

<p class="has-text-align-none">I don&#8217;t know. It&#8217;s a little bit too wacky for my taste.</p>

<p class="has-text-align-none"><strong>This is why I asked. I could tell there was something more nebulous there that was a little hazy.</strong></p>

<p class="has-text-align-none"><strong>Mustafa, I could obviously talk to you about this stuff for hours and hours longer. You&#8217;re going to have to come back sooner than this last turn. Thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Yeah, it&#8217;s been fun. Thanks a lot, Nilay. See you soon.</p>

<p class="has-text-align-none"><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[Elon Musk is steamrolling Wall Street to become a trillionaire]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/942586/elon-musk-spacex-ipo-x-xai-index-funds" />
			<id>https://www.theverge.com/?p=942586</id>
			<updated>2026-06-08T11:08:28-04:00</updated>
			<published>2026-06-04T10:00:00-04:00</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="Elon Musk" /><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" /><category scheme="https://www.theverge.com" term="xAI" />
							<summary type="html"><![CDATA[Today on Decoder, I’m talking to Ryan Mac, a technology reporter at The New York Times and coauthor of the excellent book Character Limit: How Elon Musk Destroyed Twitter, which came out in 2024. I can’t recommend it enough.&#160; I wanted to have Ryan on the show because we’re on the cusp of the SpaceX [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">Today on <em>Decoder</em>, I’m talking to Ryan Mac, a technology reporter at <em>The New York Times</em> and coauthor of the excellent book <em>Character Limit: How Elon Musk Destroyed Twitter</em>, which <a href="https://www.penguinrandomhouse.com/books/737290/character-limit-by-kate-conger-and-ryan-mac/">came out in 2024</a>. I can’t recommend it enough.&nbsp;</p>

<p class="has-text-align-none">I wanted to have Ryan on the show because we’re on the cusp of the SpaceX IPO, which promises to be one of the most consequential public offerings in history for a variety of reasons — its <a href="https://www.theverge.com/science/935102/spacex-ipo-elon-musk-tesla-cybertruck-xai-risk-factor">biggest-ever size, of course, at nearly $2 trillion dollars</a>, but also because all kinds of rules that keep our markets fair are <a href="https://www.theverge.com/ai-artificial-intelligence/940001/elon-musk-spacex-ipo-ai">being bent, if not outright broken, along the way</a>. I also wanted to talk to Ryan because buried somewhere inside SpaceX is X, the social platform formerly known as Twitter, which Musk purchased in 2022. That’s what Ryan cowrote that book about.&nbsp;</p>

<p class="has-text-align-none">I was very confident that Musk would come to regret buying Twitter back then. I wrote a piece called <a href="https://www.theverge.com/2022/10/28/23428132/elon-musk-twitter-acquisition-problems-speech-moderation">“Welcome To hell, Elon,”</a> which is probably the single most-read thing I’ve ever written. My thesis was that there would be no way to grow Twitter users and revenue without moderating the platform well and, ultimately, that Elon buying Twitter would destroy his reputation and cause damage to his other companies.&nbsp;</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&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p><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="has-text-align-none">Now, we have the numbers from the SpaceX IPO filing to see how right my prediction was. X is shrinking by every major metric, but it may not matter, as Ryan points out. Take a listen, and let me know what you think.</p>

<p class="has-text-align-none">Ryan and I also got into all those rules being broken to land the SpaceX IPO — rules about shareholder control, inclusion in the major index funds, and all the other levers of market accountability that usually serve to keep companies in check. You’re going to hear us say “corporate governance” a lot in this episode, and while it may sound boring, it won’t be if you take a shot every time it comes up.</p>

<p class="has-text-align-none">Okay, don’t do that. But do consider what it means that Elon has become so rich, so powerful, and so detached from the levers of accountability that he can apparently get away with anything. That’s all without any of the major fund managers or investors calling foul because they don’t want to miss out on what could be the biggest financial windfall in recent memory. There’s a lot to think about in this episode.&nbsp;</p>

<p class="has-text-align-none">Okay: <em>New York Times</em> tech reporter Ryan Mac, on Elon Musk, X, and the SpaceX IPO. Here we go.</p>

<iframe frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP1516221184" width="100%"></iframe>

<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.&nbsp;</em></p>

<p class="has-text-align-none"><strong>Ryan Mac, you&#8217;re a technology reporter at the </strong><strong><em>New York Times</em></strong><strong>. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Thanks for having me.</p>

<p class="has-text-align-none"><strong>I am really excited to talk to you. I can&#8217;t believe you&#8217;ve never been on the show before. I feel like we&#8217;ve done a lot of reporting in and around each other. I&#8217;m a big fan. Thanks so much for being on.</strong></p>

<p class="has-text-align-none">I know. What the hell, man? You just have avoided me this whole time. But no, I&#8217;m kidding. It&#8217;s good to be here. I’ve listened to many episodes, so great to be a part of it.</p>

<p class="has-text-align-none"><strong>Well, now we&#8217;re going to ask you to answer for your crimes, which is what the </strong><strong><em>Decoder</em></strong><strong> audience really wants me to do, I guess.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Speaking of crimes, we&#8217;re going to talk about the SpaceX IPO. Elon Musk has obviously filed to take SpaceX public. There&#8217;s a lot in that IPO, including the idea that there&#8217;s a $28 trillion addressable market for SpaceX services, which is more than the world. Just a lot in there.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>You&#8217;ve reported on a lot of it. So I do want to dive into it, but I actually want to start with X, the everything app, the app formerly known as Twitter. Because the SpaceX S-1 really gives us our first look into what that business is, what it has become, where it&#8217;s growing.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>In 2022, I wrote an article — maybe the most viral article I&#8217;ve ever written — it was called </strong><a href="https://www.theverge.com/2022/10/28/23428132/elon-musk-twitter-acquisition-problems-speech-moderation"><strong>“Welcome to hell, Elon,”</strong></a><strong> in which I very confidently predicted that buying Twitter would be a disaster for Elon Musk. I&#8217;m just going to read you my thesis. It was the first sentence of the piece. And then I want to try to back into what we know about X. I&#8217;m very curious if you think this has come true or not.</strong></p>

<p class="has-text-align-none"><strong>So my thesis was: “Twitter is a disaster clown car company that is successful despite itself and there is no possible way to grow users and revenue without making a series of enormous compromises that will ultimately destroy Elon Musk&#8217;s reputation and possibly cause grievous damage to his other companies.”</strong></p>

<p class="has-text-align-none"><strong>There&#8217;s one view to say, &#8220;Yep, that totally came true.&#8221; There&#8217;s another view to say that actually Elon is more powerful than ever and on the cusp of an IPO that&#8217;s going to make him a trillionaire. So tell me about X. What do we know about X, the company in the years since Elon has bought it and what do we know about its financials as reported in this S-1?</strong></p>

<p class="has-text-align-none">Sure. I think you mentioned the word “growing” in all that and I think the place to start is the fact that X is simply not growing. It&#8217;s stagnated in terms of revenue, stagnated in terms of user growth. It&#8217;s been buried twice within Elon&#8217;s companies — first into xAI and now into SpaceX. So it&#8217;s become, in some ways, an afterthought in the Musk empire, despite it still being arguably Musk&#8217;s favorite thing. He spends countless hours a day on that thing, like many of us used to, and many of us still do.&nbsp;</p>

<p class="has-text-align-none">But in terms of a business proposition, it&#8217;s a non-factor if you compare it to some of the other aspects of this business — something like Starlink, for example. If you look back at 2022, it&#8217;s just bizarre. He bought this company on a whim. He pitched this idea to investors that he would have one billion users. He would have integrated payments. It would be somewhere you could potentially book a taxi. He pitched this idea of it being WeChat. You mentioned the everything app. And it&#8217;s certainly not the everything app. At one point he was like, &#8220;You could watch TV on it.&#8221;</p>

<p class="has-text-align-none">None of that has come to fruition. Yet I look at what&#8217;s happened in the last four to five years since then, and he&#8217;s gotten more powerful than ever. His net worth has increased. I think around the time he bought the company he was around $300 billion. His net worth now fluctuates anywhere from $600 to $800 billion these days. And a SpaceX IPO will take him potentially beyond the trillion dollar mark for the first time ever in human history. So it&#8217;s bizarre in that there are a lot of contradictory things about it, but at the end of the day, I&#8217;d argue he still comes out on top.</p>

<p class="has-text-align-none"><strong>Is it just as simple as he bought a distribution platform for his own tweets and he controlled it and he fixed the algorithm to favor himself and that worked? And it doesn&#8217;t matter that revenue is down $100 million year over year and not even quite 40 percent of Twitter&#8217;s pre-acquisition revenue?&nbsp;</strong></p>

<p class="has-text-align-none"><strong>He&#8217;s destroyed the business by every metric we can see in the S-1. Every number is down. And only the revenue from data licensing to AI companies is up.&nbsp;</strong></p>

<p class="has-text-align-none">His own AI company too. Yes, if you singularly look at X as a business, it&#8217;s clearly a failure from the time he took over the company to Fidelity marking the valuation of the company down to $10 billion before he merged it with xAI. But also you have to look at it in the whole landscape of Musk Inc. Since he bought the company, he spun up xAI, raised billions of dollars for that company. He then merged it into xAI, burying it, and then he merged it again with xAI into SpaceX.&nbsp;</p>

<p class="has-text-align-none">I guess he&#8217;s up, if you&#8217;re doing a plus-minus analysis of valuations of these companies. Again, these are valuations that seemingly have no basis in business fundamentals. We&#8217;re playing with Musk math here. He has this whole cadre of investors and friends that are willing to back him to the end of the Earth, but yeah, he&#8217;s, I&#8217;d say, winning.</p>

<p class="has-text-align-none"><strong>There&#8217;s a version of this where you could straightforwardly make the argument that however many billions he lost on Twitter is worth it as an investment that got him to, &#8220;We&#8217;re going to do a trillion-dollar SpaceX IPO.&#8221;</strong></p>

<p class="has-text-align-none">Yeah, and I caution against looking back at it historically and thinking that was his plan all along. There is this trope that came up after Trump won the election that Elon Musk bought X to then help elect Donald Trump. There was really no proof of that, especially when we did our reporting at <em>The Times</em> and for our book <em>Character Limit,</em> but it has worked out for him. It&#8217;s indisputable in that sense.&nbsp;</p>

<p class="has-text-align-none">He has bought a distribution platform for his own tweets. He&#8217;s the most followed person on the platform now. He controls the algorithm, he controls the content that gets boosted on the platform. I don&#8217;t know how to say this more, but he&#8217;s winning and that&#8217;s just where we are right now in society.</p>

<p class="has-text-align-none"><strong>In the pre-X days when it was still Twitter, Elon would constantly talk about how he didn&#8217;t do any marketing for Tesla. They had spent no money in advertising, no money in marketing. He would just tweet to move Tesla sales up and down. And there was infinite demand for the Tesla Model 3 in particular and the Model Y. So much so that every other car maker essentially got confused and made Tesla Model Ys of their own.</strong></p>

<p class="has-text-align-none"><strong>They just thought people wanted electric cars. And maybe they just wanted Tesla’s and maybe there was a meme stock component to it, but Elon was just very good at using Twitter to drive demand for his products. He would constantly say, &#8220;I don&#8217;t have to pay for marketing. I just have this platform.&#8221;&nbsp;</strong></p>

<p class="has-text-align-none"><strong>The other part of my thesis was that buying X and changing the algorithm and being as political as he has been would cause reputational damage to Elon, would cause reputational damage to his companies. There&#8217;s some evidence that that is true in the case of Tesla, where the cars are less popular than they once were, certainly. There are </strong><a href="https://www.theverge.com/tesla/639183/tesla-takedown-protest-march-29-elon-musk-doge"><strong>campaigns to protest at Tesla dealerships</strong></a><strong>. Is that true for SpaceX? Is it true for the rest of his empire?</strong></p>

<p class="has-text-align-none">It&#8217;s a great question. And with Tesla, of course, after the election, you saw the <a href="https://www.theverge.com/news/635249/tesla-takedown-protest-stock-elon-musk-future">Tesla Takedown protests</a>, people slapping those bumper stickers on their cars: “I bought this before Elon went crazy.” You could see the share of the Tesla market in the EV market falling. Of course, there&#8217;s a lot to do with the rise of Chinese vehicle manufacturers like BYD.&nbsp;</p>

<p class="has-text-align-none">But I don&#8217;t know. I don&#8217;t think I see the same kind of reputational harm to SpaceX that I&#8217;ve seen with Tesla. And that may be because there&#8217;s just not as much consumer contact with parts of SpaceX. I think of something like the launch business. I&#8217;m not going out and buying a launch. Regular people aren&#8217;t buying launches; SpaceX is contracting with governments and big companies. Not to mention that they largely have a monopoly on getting things into space.</p>

<p class="has-text-align-none">If your option is working with a company that has a CEO that is reputationally compromised versus not getting into space at all, you&#8217;ll probably go with the former. Starlink is another basket. It offers a product that is quite good and is not challenged in any way. I think of something like Iridium, for example, or the companies it competes against, and it just blows them out of the water. It&#8217;s such a strong service, so much so that governments rely on it and Ukraine relies on it and the numbers there continue to grow. That&#8217;s the crown jewel of the SpaceX business empire right now in terms of revenue and profit.</p>

<p class="has-text-align-none"><strong>There&#8217;s no moral case to be made for being on Hughesnet still. You can&#8217;t be a better person by being on some of the other satellite providers that service the rural parts of the country. We see it in our own traffic and our own comments. We cover Starlink. There&#8217;s nothing better. They continue to innovate in the ways they continue to innovate and the audience doesn&#8217;t like it, but then there&#8217;s a huge part of the audience that says, &#8220;Wait, I don&#8217;t have a market alternative to this.&#8221;</strong></p>

<p class="has-text-align-none"><strong>You&#8217;re saying where there isn&#8217;t a market alternative, the reputational issues have not been a problem and every place where there might be or there&#8217;s a consumer market, the reputational issues have damaged it. I think X is actually </strong><strong><em>the</em></strong><strong> example of this. There are a number of market alternatives to X, so people have just left the platform.</strong></p>

<p class="has-text-align-none"><strong>Whether or not there&#8217;s one big competitor to X remains to be seen. Threads by some accounts is vastly bigger than X, but it does not have the influence. Bluesky is run by very charming, very ideological people. They&#8217;re doing whatever it is they&#8217;re doing. It&#8217;s certainly not a competitor head up to X. Is there a reason that influence hasn&#8217;t recapitulated itself anywhere, or that the people still on X have stayed there?</strong></p>

<p class="has-text-align-none">Oh man, it&#8217;s something I think about a lot and I think the rumors of X&#8217;s demise at the time were greatly exaggerated in a way. These social platforms are so sticky. I remember one of the rounds of layoffs — I think it was the <a href="https://www.npr.org/2022/11/16/1137105935/twitter-elon-musk-ultimatum">“A Fork in the Road”</a> or one of those earlier rounds — and Twitter went down for a period of time, too. I remember being at dinner and everyone just writing eulogies for Twitter that night. And I&#8217;m like, &#8220;Guys, I don&#8217;t think this is it.&#8221;</p>

<p class="has-text-align-none">This is a pretty resilient platform. It&#8217;s been developed over more than a decade. It&#8217;s been around for a while. It&#8217;s quite a resilient thing and it has a dedicated user base. That&#8217;s why we love it. It&#8217;s a great social experiment. At the time, I was wary of being like, &#8220;This is the end of Twitter.&#8221; And you&#8217;re starting to see now just how resilient it is.</p>

<p class="has-text-align-none">We&#8217;re so caught up in it as reporters. We&#8217;re on it all the time. But there are normal people out there that still go to X because their soccer community is on it. Or it&#8217;s where they talk about movies and they have their six best friends there. It&#8217;s still a very sticky platform, in spite of the CSAM from Grok or the abusive stuff from Elon or the hate speech. They persist because it&#8217;s just where they&#8217;ve learned to be. It&#8217;s hard to generate that from scratch, and I think that&#8217;s why you&#8217;re seeing things like Bluesky hit a ceiling here in terms of attracting a wider audience.</p>

<p class="has-text-align-none"><strong>Do you think as we go into the IPO and SpaceX becomes a public company and X is just one piece of the puzzle, that it increases or decreases in importance to Elon? It is his favorite thing. But running a public rocket company is just a very different set of priorities.</strong></p>

<p class="has-text-align-none">Maybe, but also he never operates as we expect him to. Running Tesla and having a Twitter account have not worked out well for him in the past. He&#8217;s been <a href="https://www.theverge.com/2018/9/27/17911428/sec-lawsuit-elon-musk-tesla-funding-tweet">sued for some of the stuff he&#8217;s put on Twitter</a>. I think of 2018 when he got sued for saying funding was secured for taking Tesla private. And he <a href="https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-sec-securities-fraud-lawsuit-settlement-fine-penalty">paid $20 million in a fine</a> and largely got away with it.</p>

<p class="has-text-align-none">He&#8217;s way more powerful now and way richer than ever. So I don&#8217;t think SpaceX being a public company will necessarily change his habits on X these days. The other day I saw him posting about the Anthropic deal. I don&#8217;t know if you saw that. That was in the S-1 and he was <a href="https://finance.yahoo.com/markets/stocks/articles/elon-musk-says-anthropic-spacex-073231400.html">pushing back on the idea</a> that Anthropic would pay this amount of money for a certain amount of years — this large amount of revenue, about $1.25 billion a year.</p>

<p class="has-text-align-none">He was openly contradicting what was in the company&#8217;s IPO documents, which you cannot do during a quiet period. I don&#8217;t think anything&#8217;s going to come of that. I don&#8217;t think he&#8217;ll get a slap on the wrist or anything. He&#8217;s just higher than any form of accountability right now.</p>

<p class="has-text-align-none"><strong>That brings us to the larger SpaceX IPO in general, because the whole thing is structured to avoid the mechanisms of accountability that usually exist in our markets. It&#8217;s going to end up on the NASDAQ in some way, shape or form in a way that basically all of us are going to end up invested in SpaceX.</strong></p>

<p class="has-text-align-none"><strong>And we can&#8217;t take our dollars away because it&#8217;ll be in index funds. Elon is going to control an enormous part of the company in a way that maybe he just can never be removed. Who knows if even having a board of directors is important in that case. And then he has a monopoly on rocket launches, at least for now, and who knows if there will be market alternatives that provide accountability to SpaceX.</strong></p>

<p class="has-text-align-none"><strong>Walk us through how this is structured. You&#8217;ve written about it at length that the SpaceX IPO is a corporate governance disaster, if you care about corporate governance. Walk us through it.</strong></p>

<p class="has-text-align-none">I&#8217;m a big corporate governance guy myself.</p>

<p class="has-text-align-none"><strong>[Laughs] It is the hottest. It&#8217;s what all the TikTok dances are about lately.</strong></p>

<p class="has-text-align-none">Yeah, I have a corporate governance tattoo on my lower back. But no, this is serious stuff and it&#8217;s concerning to people that study corporate governance. So let&#8217;s talk about Elon Musk&#8217;s ownership of the company and his voting control of the company.</p>

<p class="has-text-align-none">He has super-voting shares that, all told, give him about 85 percent control of votes at the company. And that&#8217;s a super-supermajority at this point. He basically controls every corporate decision at the share voting level. I think of something like Meta, for example, and compare that to Mark Zuckerberg. With super voting and voting agreements, Zuckerberg controls about 60 percent. Elon has even a larger stranglehold on his company than that. What does that mean? It means he controls the board, he appoints friends and advisors to board seats.</p>

<p class="has-text-align-none">There&#8217;s no independent board commission to structure pay packages. Essentially he has control over how he gets compensated. I wrote about this <a href="https://www.cnn.com/2025/12/19/business/musk-pay-package-latest">pay package that he got earlier this year</a> where he was awarded 1.3 billion shares in what&#8217;s called restricted stock.</p>

<p class="has-text-align-none">If you actually look at the footnotes there in that S-1, you could see that he&#8217;s already able to vote that stock, which is insane and it&#8217;s unheard of. He hasn&#8217;t earned any of these shares and these shares are pegged to hitting milestones with the company, like creating a colony on Mars with a million people and putting data centers in space with, I think, 100 terawatts of compute a year, just an astronomical figure.&nbsp;</p>

<p class="has-text-align-none">He has to hit these things in order to gain these shares to sell them. Well, he hasn&#8217;t hit any of these milestones and he&#8217;s able to vote these already given the stipulations that were put on them from management.</p>

<p class="has-text-align-none"><strong>Can I ask you about this, the colony on Mars? This is all bananas, right?</strong></p>

<p class="has-text-align-none">I guess we&#8217;re burying the lede here, yeah.</p>

<p class="has-text-align-none"><strong>He gets a huge pay package if he puts a colony on Mars with a million people in it and puts however many terawatts of compute in space. He&#8217;s in charge of this S-1. He obviously wrote it to his own specifications. Why set milestones that are unachievable and then vote the stock anyway instead of just giving yourself the stock?</strong></p>

<p class="has-text-align-none">Good question. Maybe it gives it some semblance that he has to work towards these goals, but if you talk to corporate governance folks, they&#8217;re appalled that he gets to vote these anyways. This adds to his voting control, that 85 percent we talked about earlier. On top of that, he gets to take out loans against these shares. Of course that comes with board approval, but he controls the board. So he&#8217;s able to take out loans against these shares and get cash. And yeah, I don&#8217;t know. I don&#8217;t know why he’s even playing this dance of “I have to hit these milestones.”</p>

<p class="has-text-align-none"><strong>My theory is that it’s so he can tweet about them. Legitimately, my theory is that he wants to be able to say, &#8220;I don&#8217;t get paid unless I put a million people on Mars.&#8221; Regardless of the technical details of whether he can vote the shares or take out loans against them as collateral. He gets to represent to the world, “I don&#8217;t receive the windfall until there are a million people on Mars.”</strong></p>

<p class="has-text-align-none">That&#8217;s a great point. There&#8217;s also a fun little wrinkle here in that you don&#8217;t pay taxes on them until you earn them. And so because he hasn&#8217;t earned them, because he doesn&#8217;t technically hold them yet or doesn&#8217;t have the ability to sell them, it&#8217;s not taxable. He doesn&#8217;t have to pay taxes on that either until he hits his milestones. In some ways, if you believe he&#8217;ll never hit them, he can still derive the power and potentially financial gain from it simply by holding them, or having this pay package under his thumb.</p>

<p class="has-text-align-none"><strong>The usual way that a market could correct this is by a bunch of people telling retail investors, &#8220;Don&#8217;t invest in this IPO.&#8221; Or a bunch of people who are angry at Elon Musk selling their Teslas and telling their friends not to buy this IPO and driving their stock price down. That is a market corrective. We can see this happen with a variety of companies over time.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>This IPO is </strong><a href="https://www.theverge.com/ai-artificial-intelligence/940001/elon-musk-spacex-ipo-ai"><strong>going to end up in index funds very quickly</strong></a><strong> in a way that I think is also terrifying a bunch of corporate governance experts, the sexiest new characters in American politics. Talk about that. How are we going to mechanically all end up owning SpaceX whether we want to or not?</strong></p>

<p class="has-text-align-none">This is the most underplayed and insane thing to think about. So how does this work? Maybe you and I take a look at the SpaceX IPO and we say, &#8220;I don&#8217;t like those financials. I personally would not invest in that company. I&#8217;m not going to buy shares through my Robinhood account or Schwab account.&#8221;</p>

<p class="has-text-align-none">But let&#8217;s say we also have investments in index funds. We all have retirement accounts, and sometimes they&#8217;re invested in index funds. So we&#8217;re just passive investors in stock and these index funds trace the American industry by buying up shares in various stocks. So what&#8217;s happening here is that SpaceX and these indices have worked together to relax some of the rules. Let&#8217;s take the NASDAQ-100, for example. The NASDAQ-100 has 100 stocks in it that trace American industry, like blue chip stocks.</p>

<p class="has-text-align-none">Typically, it takes about 90 days for a company after its IPO to enter the NASDAQ-100, or to be allowed into the NASDAQ-100. The reason for that is it allows for some type of cooling period. Typically, after an IPO&#8217;s stocks go up and down, it takes some time to settle on the public market and to have a steady valuation, and that&#8217;s normal.</p>

<p class="has-text-align-none">In this case, SpaceX gets to enter the index after 15 days, in the midst of this very big hype cycle. That&#8217;s essentially going to force a lot of these index funds to buy up SpaceX shares because it has entered the index. That will give SpaceX access to a lot of capital it would have had to have waited for for a couple of months. And that&#8217;s going to continue to drive the buying frenzy in the stock. It&#8217;s genius in a way, from SpaceX&#8217;s perspective, to get that access to billions of dollars of capital in some of these index funds, and that&#8217;s just one way the rules have been relaxed for this IPO.</p>

<p class="has-text-align-none"><strong>How did that occur? Did Elon just roll up to all the index fund owners and say, &#8220;Pretty please?&#8221; Did you buy them off? Was it above board? Was it corrupt?</strong></p>

<p class="has-text-align-none">Basically it&#8217;s been pretty opaque, but these things were simply announced. There have been rules around profitability that have been relaxed as well at some of these indices. There have been rules around governance that have been relaxed as well.&nbsp;</p>

<p class="has-text-align-none">What I&#8217;m seeing here, what I&#8217;ve talked to folks about, is just this level of hype has generated so much FOMO around this stock, this fear of missing out. You get to the point where these rules are being thrown out. I talked to one corporate governance expert who said it&#8217;d be like having all the rules and setting aside all the rules for football. And you play with the rules of football and you&#8217;ve perfected it and you have it down to the rules of the game and then when you get to the Super Bowl, the biggest event of the year, you change those rules. And that&#8217;s what we&#8217;re seeing here with SpaceX.</p>

<p class="has-text-align-none"><strong>There are a lot of people who root against the Kansas City Chiefs who understand exactly what you&#8217;re talking about in very specific ways.</strong></p>

<p class="has-text-align-none">[Laughs] It&#8217;d be like taking the tush push out of the NFL.&nbsp;</p>

<p class="has-text-align-none"><strong>Well, I get it, but it&#8217;s also one of the biggest IPOs. The banks have all been listed on the IPO. They&#8217;re all participating in it. Is it just as simple as they all want the business, or do they also have some amount of influence over the index funds so that they&#8217;re just changing the rules?</strong></p>

<p class="has-text-align-none">Yeah. I think of this quote from a story that <a href="https://www.nytimes.com/2026/05/29/business/spacex-ipo-wall-street.html">two of my colleagues wrote last week for <em>The Times</em></a>. There&#8217;s this one fund manager who simply said, &#8220;If I miss out on the SpaceX IPO, someone&#8217;s going to tap me on the shoulder and ask me why I wasn&#8217;t in that. Whereas if I get burned on the SpaceX IPO, so many other people are going to get burned as well. So I have a way to cover my ass.&#8221;</p>

<p class="has-text-align-none">You&#8217;re just reading this quote and thinking, &#8220;What is going on here? He&#8217;s just admitting to a herd mentality here.” That&#8217;s what we&#8217;re seeing. Now multiply that by every retail investor who&#8217;s getting marketing materials on Robinhood telling him, &#8220;Oh, we have IPO shares available in SpaceX, buy, buy, buy.&#8221; It&#8217;s unheard of.</p>

<p class="has-text-align-none"><strong>One of the things that really strikes me about that is the normal market dynamic is some people would obviously heavily bet on SpaceX succeeding and some people would heavily bet against it and you want that dynamic to find the right price for this. Here that just seems to be erased.</strong></p>

<p class="has-text-align-none">I&#8217;ll be interested in the short interest against this stock. I think that&#8217;ll be very interesting. But if you look at Elon&#8217;s track record, let&#8217;s say with Tesla for example, and how the stock has gone up over the years there, he&#8217;s completely crushed a lot of shorts there. He used to <a href="https://www.theverge.com/2019/4/20/18509371/skabooshka-twitter-elon-musk-tesla-short-seller-tslaq">go to war against them</a>, and he used to tweet about them all the time, but the best way to beat short sellers is to continue to increase the value of the stock, which Tesla has done over the years.&nbsp;</p>

<p class="has-text-align-none">There&#8217;s just a meme-ification of this whole thing. This is not just a hype stock, but a meme stock in some ways, and that&#8217;s what happens when you have a celebrity CEO like this running a company.</p>

<p class="has-text-align-none"><strong>That&#8217;s what&#8217;s really interesting to me because the car sales are falling. The product is not as successful as it once was. In many cases, the products are old. The Model S and Model X are </strong><a href="https://www.theverge.com/transportation/869872/tesla-model-s-model-x-discontinue-optimus-robot-factory"><strong>being discontinued because they&#8217;re so old</strong></a><strong> and he doesn&#8217;t want to spend money updating them.</strong></p>

<p class="has-text-align-none"><strong>Now, he&#8217;s promising robotics and robotaxis and a bunch of other things that may never come to pass. Is he going to be able to pull the same move with SpaceX? Just continually promise something bigger to come in the future that changes the value dynamic with the company?</strong></p>

<p class="has-text-align-none">He is right now as we speak. What happened at the beginning of this year? SpaceX was going along its way. It was a launch business with rockets that have self-landing capabilities and a really good business in Starlink. And what did he do? He <a href="https://www.theverge.com/tech/872619/elon-musk-merges-spacex-with-xai-and-x">combined it with xAI</a> and said, &#8220;Actually, you know what we&#8217;re going to do? We&#8217;re going to put data centers into space and this is the future. And oh, by the way, we&#8217;re going to put a factory on Mars to build these satellites to launch into space. And then we&#8217;ll get to the Mars colony.&#8221;</p>

<p class="has-text-align-none">These are goals that have come up within the last year. He didn&#8217;t talk about these things previously. In the same way at Tesla where he has completely pivoted the company towards robots and the humanoid whatever things, you&#8217;re getting the same effect at SpaceX where he&#8217;s just selling people on a completely different bill of goods.</p>

<p class="has-text-align-none">It&#8217;s just so interesting. I look at some of the contradictions he&#8217;s made over the years. There&#8217;s a tweet of his that <a href="https://x.com/elonmusk/status/1875023335891026324">he put up probably a year ago</a> where he said, &#8220;The Moon doesn&#8217;t matter, we&#8217;re not focused on the Moon, we&#8217;re focused on Mars.&#8221; And then you go back and you look at the IPO documents and what he said more recently in the last couple of months and now <a href="https://www.theverge.com/science/875815/has-elon-musk-changed-his-mind-on-mars-and-the-moon">they&#8217;re all in on the Moon</a>. And that&#8217;s because NASA has put a renewed focus on the Moon and there&#8217;s money there.&nbsp;</p>

<p class="has-text-align-none">So yeah, if you&#8217;re going off of what Elon says, it is whichever way the wind blows at this point and thus far that&#8217;s worked for him. People are willing to go with him and believe in him.</p>

<p class="has-text-align-none"><strong>Here we are, a half hour into a conversation about the SpaceX IPO and we&#8217;re going to talk about the fundamentals of the SpaceX business because that&#8217;s about where it ranks. It&#8217;s like the 15th thing on the priority list when you talk about the SpaceX IPO is the fundamentals of the business.</strong></p>

<p class="has-text-align-none"><strong>As you&#8217;ve said several times now, Starlink is the </strong><a href="https://www.marketwatch.com/livecoverage/spacex-ipo-filing-prospectus-elon-musk/card/starlink-spacex-crown-jewel-brings-in-more-than-11-billion-in-revenue-ZXgr97KF2t9v2mdlno7e"><strong>only profitable part of this business</strong></a><strong>. It generated $11.4 billion in revenue last year. It goes up and down. Everything else is a gigantic money loser. The AI division </strong><a href="https://finance.yahoo.com/sectors/technology/articles/xai-burned-6-4b-last-222608682.html"><strong>had a deficit of $6.4 billion</strong></a><strong>. The NASA contracts for launch lost $657 million.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Everything else is losing money and then Starlink is the business that&#8217;s growing and generating actual profits. I look at that, I think, “Boy, I&#8217;ve covered the broadband industry for a long time here at </strong><strong><em>The Verge</em></strong><strong>. AT&amp;T and Verizon are not the world&#8217;s sexiest businesses. They&#8217;re not throwing off so much margin that you can lose $6 billion on AI for the rest of your life.”&nbsp;</strong></p>

<p class="has-text-align-none"><strong>How does that work? Is there more Starlink to be had? Are we going to rip up all the fiber in the world and we&#8217;ll all get satellites? How do you generate enough money with Starlink to pay for all of this other stuff?</strong></p>

<p class="has-text-align-none">Great question. I believe SpaceX thinks Starlink can continue to grow. There are a lot of markets that haven&#8217;t been tapped yet. I think of something like India, for example, where the company is heavily courting the Modi government there to allow them to operate in a country with 1.5 billion people. There are markets like that where it can access and continue to grow that roughly 10 million, I think, monthly active user base.</p>

<p class="has-text-align-none"><strong>Can I push back on that just for one second?</strong></p>

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

<p class="has-text-align-none"><strong>The Indian market is very complicated, but it is very well served by its own telecom providers. Reliance Jio is the winner in the Indian market and a huge number of people just have a cell phone as their primary connectivity device. They&#8217;re doing fine and it&#8217;s dirt cheap. Even if you&#8217;re excited about putting Starlink in that market, how do you compete against that? Is it possible? Have they laid out the case?</strong></p>

<p class="has-text-align-none">They have not. You can also argue that the revenue per user there is not going to be the same as it would be in the US or wherever else. But yeah, they&#8217;ve made the argument that as long as it continues to grow, it&#8217;s a good thing. They&#8217;ll continue to launch more satellites into space with these things and cover the world essentially.&nbsp;</p>

<p class="has-text-align-none">SpaceX CEO Gwynne Shotwell gave a presentation at Mobile World Congress earlier this year where she basically put out a hit on all these big telecoms. Online she&#8217;s compared herself or compared SpaceX to David versus Goliath, which is a convenient narrative where you have a $1.25 trillion David going against these supposed Goliaths here.</p>

<p class="has-text-align-none">That&#8217;s the bull case for Starlink. But if you look at the other fundamentals of this, the spending on AI is quite nuts. It&#8217;s losing so much money on AI development. We haven&#8217;t even talked about the massive amount it has to pay for Cursor, which is a <a href="https://www.theverge.com/science/916427/spacex-cursor-potential-deal-acquisition">$60 billion deal</a>. So you asked earlier, what are people investing in here? They&#8217;re investing in promises. There are no fundamentals here.</p>

<p class="has-text-align-none">We can talk until we&#8217;re blue in the face about profits and revenues and growth, but at the end of the day, most investors are betting on Elon&#8217;s words and his ability to sell them on this idea of putting data centers into space or getting people to Mars.</p>

<p class="has-text-align-none"><strong>The AI piece is fascinating. They&#8217;re estimating that $22.7 trillion will be generated from enterprise AI.</strong></p>

<p class="has-text-align-none">Yeah, I want to talk about this TAM. It&#8217;s just insane.</p>

<p class="has-text-align-none"><strong>TAM stands for total addressable market. It is $28 trillion, I think, maybe slightly more.</strong></p>

<p class="has-text-align-none">There&#8217;s a great line in the S-1, which says something like this is the largest TAM ever in human history. And I&#8217;m like, &#8220;Cool. Show me how you got there.&#8221; And it&#8217;s just like, &#8220;Trust me, bro.&#8221; It&#8217;s like, &#8220;We got this. We did the numbers and it&#8217;s $23 trillion in AI and $3 trillion in rocket launches.” I don&#8217;t know where the fundamentals are for that. What are they basing that on? Sure, it&#8217;s in their S-1, but it&#8217;s a lot of “trust me” at this point.</p>

<p class="has-text-align-none"><strong>The case for this is going to be a great IPO because SpaceX figured out the Falcon 9 and rocket reusability and they essentially have a monopoly on launched services in the United States, at least until Jeff Bezos and Blue Origin figure out whatever they&#8217;re going to figure out. That&#8217;s a pretty good case. I can see that case.</strong></p>

<p class="has-text-align-none"><strong>Starlink is a growing business. We are essentially the default government contractor for a very important mission both in national security and telecom and everything else we use satellites for. I see all of that.</strong></p>

<p class="has-text-align-none"><strong>Why add on this totally illusory enterprise $22.7 trillion from AI when you&#8217;re up against OpenAI, Anthropic and Google? And Elon has </strong><a href="https://x.com/elonmusk/status/2032201568335044978"><strong>admitted very publicly</strong></a><strong> that xAI was not built correctly and needs to be totally rebuilt. Now, he’s </strong><a href="https://www.theverge.com/science/935229/spacex-anthropic-ipo-ai-capacity-deal-colossus"><strong>selling compute capacity to Anthropic on the side</strong></a><strong>.</strong></p>

<p class="has-text-align-none">TAM says everything. It shows where they think the addressable market is, which is in AI. And all the hype right now is around AI, with OpenAI and Anthropic both expected to go public or at least file to go public. Anthropic <a href="https://www.theverge.com/ai-artificial-intelligence/941016/anthropic-has-officially-filed-to-go-public">did that today</a>. I think Elon saw that. And if you had just taken the old SpaceX business public, what does that look like? That&#8217;s the launch business and that&#8217;s Starlink, that&#8217;s a solid business, right?</p>

<p class="has-text-align-none">Is it a $1.25 to $1.5 trillion business? No. But if you layer on all these promises of, “Actually, we control getting things into space so we&#8217;re going to control getting data centers into space, and we&#8217;re going to own all the data centers in space and everyone&#8217;s going to have to rely on us to power the future of the American economy,” that&#8217;s a much more bullish proposition. It’s also a much more valuable proposition and one that you can raise a lot more money on.</p>

<p class="has-text-align-none">Elon sees this as a singular opportunity to raise money. We&#8217;re talking about $50 to $75 billion in cash raised. That outstrips the current largest IPO, which was <a href="https://www.wsj.com/articles/aramco-expected-to-value-energy-giant-at-1-7-trillion-in-ipo-11575559262">Saudi Aramco that raised almost $30 billion</a> a couple of years ago. If you layer AI on top of that, you get a lot of this hype that he can sell into and raise all that cash.</p>

<p class="has-text-align-none"><strong>What does he want to do with that cash?</strong></p>

<p class="has-text-align-none">Of course, get people to Mars.</p>

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

<p class="has-text-align-none">[Laughs] Of course, easy. Once you have $50 billion, you can land a million people on Mars. Yeah, these are expensive propositions. Building Starship is an expensive proposition. Building data centers on Earth is an expensive proposition, as is buying up all that compute, buying up talent, and buying companies like Cursor. He needs that cash to do all those things and continue building up Musk Inc. It&#8217;s not like they&#8217;re going to sit on this cash pile for a long time.</p>

<p class="has-text-align-none"><strong>It occurs to me that Elon does not enjoy normal rich guy activities. He&#8217;s not buying boats. He doesn&#8217;t have a fleet of cars. He does have a lot of children. They&#8217;re expensive. I&#8217;ve got two. They seem very expensive. I can use $50 billion just for that. The AI piece of it is confusing to me because it doesn&#8217;t seem like there&#8217;s evidence that Elon&#8217;s AI efforts are competitive.</strong></p>

<p class="has-text-align-none"><strong>They&#8217;re competitive in the fact that Grok has distribution on X and I think a lot of these companies would love to have distribution that way. The fact that X users can just talk to Grok whenever they want — to do some unsavory things, but they still have distribution. Claude does not have that distribution. But Anthropic is ahead in coding.</strong></p>

<p class="has-text-align-none"><strong>Anthropic is ahead in a lot of places. OpenAI has mindshare. Google has distribution in every way it can possibly have distribution. It&#8217;s going to power the next version of Siri for Apple. How do you win? How do you raise all this money and say, &#8220;We&#8217;re going to have a $22 trillion enterprise service at market,&#8221; when no one in AI thinks you&#8217;re even close to the lead right now. Can you just buy the talent?</strong></p>

<p class="has-text-align-none">xAI is clearly behind in the model war. I saw this great tweet the other day that if Claude is Coca-Cola and OpenAI is Pepsi, then Grok is the RC Cola.</p>

<p class="has-text-align-none"><strong>I knew you were going to say RC Cola and I was pre-offended.</strong></p>

<p class="has-text-align-none">[Laughs] Oh, no. Are you an RC Cola fan? I could go with <a href="https://www.thetakeout.com/1653317/why-insane-clown-posse-drink-faygo-soda/">Faygo for the Juggalos out there</a> and I&#8217;m sure there&#8217;s a lot of Juggalos that like using Grok.&nbsp;</p>

<p class="has-text-align-none">But it&#8217;s the fourth- or fifth- or sixth-best model, at least in terms of popularity. Can you build a business around that? Can that business be worth trillions of dollars? Probably not. And there&#8217;s some admission from Elon that, or there has been admission from Elon that it hasn&#8217;t gone as well.&nbsp;</p>

<p class="has-text-align-none">You mentioned how he said the company wasn&#8217;t built right. You look at the <a href="https://www.theverge.com/science/916427/spacex-cursor-potential-deal-acquisition">Cursor acquisition they&#8217;re trying to pay for</a> to get back in the game. You also look at this very interesting deal that the company has with Anthropic to rent out its compute from one of its main data centers that it built in Tennessee.&nbsp;</p>

<p class="has-text-align-none">Colossus has two data centers, Colossus 1 and Colossus 2. It has since rented out one of these to Anthropic in a $1.25 billion a month deal. Anthropic is paying that much to get access to that compute. You&#8217;d probably argue that if everything was going swell at Grok and at xAI that they&#8217;d be using all that compute to push their own models and help their own customers. But in this case, it&#8217;s become sort of an AWS-type service where it&#8217;s renting out its space and that&#8217;s a good business. I&#8217;m not going to deny that — who wouldn&#8217;t want $1.25 billion a month in revenue? But it&#8217;s not what that thing was built for in the first place.</p>

<p class="has-text-align-none"><strong>Is there a way back for them to lead at the frontier? Is it, “We&#8217;re going to raise $50 billion and maybe we&#8217;ll just hire everybody from OpenAI”?</strong></p>

<p class="has-text-align-none">Potentially. And if you look at some of the comments last week from Elon on X where he <a href="https://finance.yahoo.com/markets/stocks/articles/elon-musk-says-anthropic-spacex-073231400.html">pushed back on the idea</a> that that Anthropic deal would be for the next three years, he said, &#8220;We reserve the right to take some of that compute back.&#8221;&nbsp;</p>

<p class="has-text-align-none">He&#8217;s suggesting maybe their models get good again to the point where they&#8217;ll need that compute. He changes with the wind and his business plan changes with the wind. We&#8217;ve seen that in the last six months to a year, these completely new businesses are coming out of nowhere. I don&#8217;t think there&#8217;s ever a “never” or a “never again” for Elon, and I guess he reserves the right to return to that at some point.</p>

<p class="has-text-align-none"><strong>I want to end where we started, which is in 2022 when Elon buys Twitter and renames it X. It&#8217;s now famously the “everything app.” We&#8217;re clearly all doing our payments there all day long. You wrote a whole book about it. I made the prediction that buying Twitter would trash his reputation and maybe harm his companies.</strong></p>

<p class="has-text-align-none"><strong>Here we are now on the cusp of what might be one of the biggest IPOs in history. And it seems like in order to make it work, all of the rules of the game have had to be changed or rigged to favor Elon. If we were operating in a normal circumstance with the normal rules, with the normal index fund seizing rules, and he had to wait 90 days for profitability and people are looking at the actual fundamentals of this business, do you think there&#8217;s a chance that this IPO is as big as it&#8217;s going to end up being?</strong></p>

<p class="has-text-align-none">Probably not as big. It&#8217;s hard to say. I still think there would be an incredible amount of hype around this company. You just don&#8217;t get this type of excitement for any CEO beyond Elon Musk. For a lot of people, they don&#8217;t necessarily pay attention to his politics or his everyday posting on Twitter, his hate speech or whatever thing he&#8217;s concocting on the platform. They see him as a successful businessman, a generational talent that put Teslas on the roads, and they see that every day.&nbsp;</p>

<p class="has-text-align-none">They see that as a chance to invest in him. There would still be a large amount of retail, obviously not the same amount as having to force index funds to buy into a company. But that alone might drive a lot of success for this IPO. Again, it’s a completely hypothetical situation. We&#8217;ll have to see in two weeks.</p>

<p class="has-text-align-none"><strong>I&#8217;m very curious. Do you think there are any other correctives? We&#8217;ve talked about the market correctives, you talked about the index rules, you talked about the corporate governance issues. Are there any other correctives here, or are we just along for the ride?</strong></p>

<p class="has-text-align-none">Oh man, I&#8217;ve thought about accountability for Elon for a long time. That&#8217;s the point of our book. How do you hold someone that rich accountable? And I just think the normal levers of accountability for someone like that have gone out the window. Yeah, we&#8217;re along for the ride.</p>

<p class="has-text-align-none">I have one example in this IPO, which is if you&#8217;re a shareholder in SpaceX, you agree to arbitration for any issues around if you believe some kind of fraud or violation of securities law has happened. In the past, Elon has faced lawsuits from shareholders at Tesla and Twitter. At SpaceX, he&#8217;s essentially removed that ability to pursue those types of shareholder lawsuits.&nbsp;</p>

<p class="has-text-align-none">He&#8217;s stacking the deck for himself here and removing any of the obstacles he could face as a public company CEO and entrenched himself in this company, built a pretty big moat around himself. The impact of that will be seen for years to come.</p>

<p class="has-text-align-none"><strong>Well, Ryan, it feels like no matter what, you and I are both going to end up as SpaceX shareholders. So I&#8217;ll see you at the next meeting. Thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>. This is great.</strong></p>

<p class="has-text-align-none">Thanks for having me. I&#8217;ll see you on Mars.</p>

<p class="has-text-align-none"><strong>[Laughs] One million strong, bro.&nbsp;</strong></p>

<p class="has-text-align-none"><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[AI is blowing up music. How should the Grammys handle it?]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/940831/ai-grammys-music-recording-harvey-mason" />
			<id>https://www.theverge.com/?p=940831</id>
			<updated>2026-06-03T20:51:27-04:00</updated>
			<published>2026-06-01T10:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Entertainment" /><category scheme="https://www.theverge.com" term="Music" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Spotify" />
							<summary type="html"><![CDATA[Today I’m talking with Harvey Mason Jr., who is CEO of the Recording Academy — that’s the outfit that puts on the Grammy Awards. I last talked to Harvey in 2024, when it was obvious that generative AI would upend the music industry, but still not exactly clear how that would happen.&#160; Well, it’s been [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">Today I’m talking with Harvey Mason Jr., who is CEO of the Recording Academy — that’s the outfit that puts on the Grammy Awards. I <a href="https://www.theverge.com/24293447/grammy-awards-recording-academy-harvey-mason-beyonce-discrimination-generative-ai-decoder">last talked to Harvey</a> in 2024, when it was obvious that generative AI would upend the music industry, but still not exactly clear how that would happen.&nbsp;</p>

<p class="has-text-align-none">Well, it’s been 18 months since that conversation, and you’re going to hear Harvey say that AI is now “omnipresent” in music production. And Harvey knows what he’s talking about — he is himself a legendary producer who’s worked with everyone from Janet Jackson to Beyoncé. Harvey has said that every session he’s been in recently has had AI in it, and I really wanted to know what that meant — what kinds of tools are musicians using, in what way, and what kind of music is it making for us? Is it any good?&nbsp;</p>

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<p class="has-text-align-none">Because, as it stands, there’s an exponential increase in the rate of AI music creation. Streaming platform Deezer <a href="https://newsroom-deezer.com/2025/11/deezer-ipsos-survey-ai-music/">reports</a> that more than 50,000 AI-generated songs are being uploaded <em>every day</em>. All that AI-generated music is getting harder to identify and filter out, while at the same time, tools like Suno have become mainstream parts of the creative process for musicians of all kinds. So I really wanted to know how Harvey experiences all of that <em>and </em>balances his role running the Grammy Awards, especially since the Recording Academy’s rules say that AI music isn’t eligible for the industry’s highest honors.</p>

<p class="has-text-align-none">There’s a lot going on in this one. Harvey and I also talked about the Grammys moving to Disney after years on CBS and what it means to reach new younger audiences with award shows in the age of TikTok. If you’re a <em>Decoder </em>listener, you know that I’m always saying that whatever happens to the music industry happens to everything else five years later, and this conversation really underlined that for me.</p>

<p class="has-text-align-none">Okay, Harvey Mason Jr., the CEO of the Recording Academy, on the future of AI and music. Here we go.&nbsp;</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP7221977177" width="100%"></iframe>

<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.&nbsp;</em></p>

<p class="has-text-align-none"><strong>Harvey Mason Jr., you&#8217;re a songwriter, you&#8217;re a producer, and you&#8217;re the CEO of the Recording Academy. Welcome back to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Thank you. Good to be here, man.</p>

<p class="has-text-align-none"><strong>I&#8217;m excited to talk to you. It&#8217;s been about a year and a half since you were on the show. A lot has happened in a year and a half. I actually just want to start with a lightning round of the </strong><strong><em>Decoder </em></strong><strong>questions. I ask every CEO the same question, but I have so much on my list that I&#8217;m just going to do a check-in on whether these things have changed.</strong></p>

<p class="has-text-align-none"><strong>You&#8217;re the CEO of the Recording Academy, and that&#8217;s the organization that puts on the Grammys. You run MusiCares for Charity. It&#8217;s the social support system for most of the musicians in the United States. How is the Recording Academy structured? How many people work there, and has it changed at all in the past year and a half?</strong></p>

<p class="has-text-align-none">It&#8217;s definitely changed. We continue to grow and progress and try to do more, reach more people. As you said, we serve music and all the people that make it in a lot of different ways through our Grammy organization, which includes the Grammy Museum, MusiCares, as you mentioned, our advocacy efforts in DC, working with state lawmakers around the country, and then of course the Grammy show. And so we&#8217;re a little over 300 people, so it&#8217;s not a massive organization, but we punch above our weight, and we do a lot of work, and we&#8217;re very active.</p>

<p class="has-text-align-none">The way that it&#8217;s changed is that I think we&#8217;re doing a good job of keeping up with the changes that are happening, and that is nonstop, especially with technology, new styles of delivering music, creating music, and consuming music. And then also trying to make sure that we&#8217;re staying in tune or relevant with what&#8217;s happening in music genres, things that are happening. New popularity comes up. People are consuming different styles of music, music from different parts of the world. All those are things that are ever-changing, and I love that our organization is moving quickly and staying ahead of a lot of those things.</p>

<p class="has-text-align-none"><strong>Are you investing more on the policy side, on the production side, where you&#8217;re saying you&#8217;re changing? What part specifically is growing?</strong></p>

<p class="has-text-align-none">Well, one of the things that is really going to make a big change is our partnership with Disney at ABC. We were at CBS for 50-something years. And so, for the first time this year, we will be with Disney, on ABC. That gives us the ability to do so much more, as you said, investing in content and storytelling. We have more opportunities for using our Grammy brand and to tell music stories in different ways — documentaries, scripted, and other forms of music content, because Disney, as our partner, has an appetite for more of that than we had previously. So that will be a change. We&#8217;ve created Grammy Studios, which is exciting. That&#8217;ll be our arm to create a lot of that content, and we&#8217;re really approaching content for a strategy. So when we&#8217;re doing events, masterclasses, or we&#8217;re doing Grammy houses around the world, we&#8217;re going to be filming them and creating content around those.</p>

<p class="has-text-align-none"><strong>The other question I ask every CEO who comes on is about decision-making. What&#8217;s your framework for making a decision? I&#8217;m just going to tell you, 18 months ago, when you were on the show, you said you like to think a lot and then make a decision really fast. Has your framework changed at all?</strong></p>

<p class="has-text-align-none">No. If I didn&#8217;t include the collaborative approach of decision-making, I was probably thinking too fast, and you might have caught me on the lightning round. A big part of my decision-making is gathering information from people that I trust and people that are around me. And people who are experts, because I don&#8217;t pretend to be the expert in every department of what we do. I do think I have a great group of people who give a lot of different insight and diverse perspectives, and really specialized thinking. And I come from sports. I played basketball, as you know. I&#8217;m a songwriter, as you know, and those are team efforts. You write songs together; you&#8217;re not sitting in a room all by yourself, at least the way that I work. You do that with other people. And the best idea wins, and the same for sports. You have a role on a team. If you&#8217;re great at that one role, you do that. You don&#8217;t try to do everything. So that has always been my style of leadership or decision-making.</p>

<p class="has-text-align-none"><strong>Describe that structure. So your group of people around you, the Recording Academy, is about 300 people. Just how is that structured? How many people work for you, and then what roles do they play in a large organization?</strong></p>

<p class="has-text-align-none">Sure. So we have a president, we have a chief of strategy, and I have a chief of staff. We have different department heads. I have about 12 people reporting to me at this time, and we&#8217;ve gone back and forth on that number, and it changes from time to time. I&#8217;ve done a couple of reorganizations over the six years now that I&#8217;ve been in the role. And each of those department heads manages a department, but they all report up to me. We ultimately have meetings to make the decisions that we think are the most important. Right now, we&#8217;re undergoing a strategic plan build, which is, I think, incredible. And it&#8217;s been an amazing process for our organization. Each of the department heads is bringing ideas, and we&#8217;re coming up with objectives and goals, and real strategies to accomplish those goals. I really enjoyed the process. And then, of course, budgeting against that is another thing that&#8217;s going to be a fun challenge for us. So we&#8217;re right in the middle of that process.</p>

<p class="has-text-align-none"><strong>The reason I ask all this is that I feel like if we rewound the clock 5, 10 years ago, I could understand the music industry. And my thesis on the show is that if you pay attention to what happens to the music industry, you will know what will happen to every other creative industry five years from now. The change is always fastest in music.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Five years ago, okay, we&#8217;ve come through the shift to streaming. Artists understand they&#8217;re going to get paid pennies on the dollar from Spotify, even if they got a billion streams. We have to find other revenue lines. We&#8217;re going to do sync licenses, where everyone&#8217;s going to do a Keds ad. We&#8217;re going to be on tour all day and all night.</strong></p>

<p class="has-text-align-none">Keds, that&#8217;s a deep cut, but thank you.</p>

<p class="has-text-align-none"><strong>You know it. Now it&#8217;s like that&#8217;s all upended. I want to ask you about the vibes of the industry right now, and it&#8217;s not just AI that&#8217;s upending the industry. I&#8217;ve been reading the music press this past week. Everyone&#8217;s talking about </strong><a href="https://www.latimes.com/entertainment-arts/music/story/2026-05-12/is-blue-dot-fever-real-problem-for-concert-industry"><strong>blue dot fever</strong></a><strong>. This notion that there are blue dots and all the Ticketmaster seating charts that represent empty seats, and big artists are canceling tours. You got </strong><a href="https://variety.com/2026/music/news/meghan-trainor-cancels-tour-get-it-girl-1236724113/"><strong>Meghan Trainor</strong></a><strong>, the </strong><a href="https://www.rollingstone.com/music/music-news/the-pussycat-dolls-cancel-north-american-leg-reunion-tour-1235557501/"><strong>Pussycat Dolls</strong></a><strong>, and </strong><a href="https://people.com/post-malone-cancels-six-big-ass-stadium-tour-shows-with-jelly-roll-11965252"><strong>Post Malone</strong></a><strong>, who just canceled about six dates. Well, first of all, I&#8217;m just curious: do you think blue dot fever is real?</strong></p>

<p class="has-text-align-none">I do. I don&#8217;t know all the ins and outs of it, but from what I&#8217;m reading, and I&#8217;m probably reading a lot of the same things you are. It seems like it&#8217;s a very, very serious issue, and it seems like we&#8217;ve been trying to deal with ticketing issues for some time now. There are some discrepancies in the information that we&#8217;re hearing. Hopefully, we can get to the bottom of some of it. Obviously, there are legal cases going on, but the vibes in the industry from what I&#8217;m seeing are that there&#8217;s a lot of trepidation. There&#8217;s a lot of concern.</p>

<p class="has-text-align-none">There are fears around some of the ticketing issues, but also AI. And I&#8217;m sure that&#8217;s the topic that is at the tip of everyone&#8217;s tongue. But I also see a lot of opportunity. There&#8217;s more music being created and more music being listened to. There are a lot of live opportunities out there. I know you mentioned some that have been canceled, but there are others that are doing really, really well. I was just at Coachella a couple of weeks ago. And what a spectacle, what an amazing event and series of events. Now you see they sold out for next year without even announcing a lineup. So there are things that are working really, really well.</p>

<p class="has-text-align-none"><strong>The reason I&#8217;m pushing and I&#8217;m starting with live [performances] is again, five, 10 years ago, I think the industry figured it out; there&#8217;s stuff we can monetize, and there&#8217;s stuff we can&#8217;t. And the idea that the music itself was hard to monetize, I think that was a paradigm shift in the industry. You&#8217;re going to cut a record, and that thing is not going to make you all the money, unless you&#8217;re at the very top of the game. It&#8217;s all the other stuff that&#8217;s going to make you money. That pressure has led to rising ticket prices. Post-COVID, everyone&#8217;s going to be on tour forever.</strong></p>

<p class="has-text-align-none">But also, the demand has led to some rising ticket prices. I think there&#8217;s a high demand to see a lot of artists, depending on who they are. And again, you&#8217;ve said some artists that didn&#8217;t have as much success selling, but there have been other events where money&#8217;s not even the object. People just want to go see great entertainers and great music. So I think it&#8217;s a combination of both.</p>

<p class="has-text-align-none"><strong>Do you think ticket prices are just going to keep going up? I worry that ticket prices are just going to keep going up.</strong></p>

<p class="has-text-align-none">Well, considering what&#8217;s happened to other commodities or other things in our world that we live in, it doesn&#8217;t seem like there&#8217;s any end in sight. You look at gas, you look at food, you look at rent, the cost of living. I hope that ticket prices find some kind of level, because I would hate that to be an experience that only certain people get to take advantage of. I think music, watching music, and being entertained by songwriters, creators, and singers, that&#8217;s a part of who we are. And that&#8217;s stuff that we need just to feel human and to feel alive and to be able to find that common ground with other people.&nbsp;</p>

<p class="has-text-align-none">I would like to think we find a way to allow people to go to concerts. But again, if you look at where we&#8217;re headed as a society, it just seems like the cost of things is running away from us.</p>

<p class="has-text-align-none"><strong>Right next to that, there&#8217;s a big lawsuit against Ticketmaster. The federal government </strong><a href="https://www.theverge.com/policy/891379/live-nation-antitrust-settlement-ticketmaster"><strong>settled</strong></a><strong>, and Ticketmaster agreed to some changes with the federal government, as part of that settlement. I think the state attorneys general did not think it was strong enough. They pursued the case; they&#8217;ve won; </strong><a href="https://www.theverge.com/policy/935735/live-nation-ticketmaster-states-remedies-request-break-up"><strong>something else is going to happen</strong></a><strong>. Do you see the Ticketmaster case having an impact already, and do you see a bigger impact in the future?</strong></p>

<p class="has-text-align-none">I definitely think it&#8217;s going to have an impact. I think it is going to depend on how it plays out. There&#8217;s still a couple of rounds left in that, from what I can tell and what I&#8217;m hearing. Once that shakes out, then we&#8217;ll be able to see what the effect will be.</p>

<p class="has-text-align-none"><strong>I feel like it was understood how to make money in live events, and that is shaky right now. The idea that tours are getting canceled or we&#8217;re oversupplying a market with rising costs, and people are going to pick gas and groceries over seeing their favorite artists — that&#8217;s unsettling, I think, in the industry.</strong></p>

<p class="has-text-align-none">But I also think that&#8217;s going to be such an appealing proposition for live events more in the future than even now. I would bet that, depending on ticket prices and accessibility, of course, things to be considered. People are going to want to go see live music. They&#8217;re going to want live experiences. You&#8217;re seeing more and more people on computers and phones, AI, and the way they&#8217;re working remotely. I personally believe being together, like we&#8217;re doing this podcast, is much better than doing it on Zoom. Listening to music is going to be much better for people than just doing it on headphones. They want to be somewhere where you can be among your peers, among people who love the same music and feel that, experience it.&nbsp;</p>

<p class="has-text-align-none">Again, I was at Coachella. I felt that there&#8217;s nothing like going to a live concert. So I truly believe, yes, there&#8217;s lots to sort out, whether that&#8217;s the legal issues, the ticket pricing, the bots and the blue dots, and all the different things, but people are going to want to see live music.</p>

<p class="has-text-align-none"><strong>How long did it take you to plan your Coachella outfits? </strong><strong><em>[Laughs]</em></strong></p>

<p class="has-text-align-none"><em>[Laughs] </em>Zero minutes.</p>

<p class="has-text-align-none"><strong>I watched Coachella from social media, and I was like, &#8220;Oh, there&#8217;s a whole other thing happening here.&#8221; That&#8217;s the other dynamic. The music industry has become way more commercial. Coachella is the influencer Olympics; it has all of the brand activations. There&#8217;s something there where it&#8217;s, okay, the money has to come from somewhere. It&#8217;s going to come from credit card companies or travel agencies or whatever&#8217;s happening, brand activations.</strong></p>

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

<p class="has-text-align-none"><strong>Tell me about that vibe right now, that we have to commercialize the industry in order to support these artists.</strong></p>

<p class="has-text-align-none">Well, I don&#8217;t know if it&#8217;s a great thing or a horrible thing. I can&#8217;t tell, but it&#8217;s definitely happening. And it is a way for artists to make additional revenue, but it all stems from the music. Music is driving so much of this, and the culture around it is so important. And that&#8217;s why I love the work that I do, because I get to be around those people. If you can figure out how to package up all the different things you just talked about, the ancillary revenue opportunities, you have to remember, back at the source, it&#8217;s the music, it&#8217;s the songwriting, it&#8217;s the performing, it&#8217;s the recording. And that&#8217;s why, to me, the academy is so important because we&#8217;re continuing to push to advocate and support those opportunities for our music people.&nbsp;</p>

<p class="has-text-align-none">So yeah, I love all the different things that people have figured out how to make money — they monetize music, performances, live, or merch, and even food. You see food coming together with music; you see sports coming together with music. Those are great things. Those things make me excited because of my passion for music and music people.</p>

<p class="has-text-align-none"><strong>Again, the reason I&#8217;m starting here is that I want to ground the conversation with AI. I feel all that pressure in the music industry. I can see all those gears turning. Then, right next to that, AI is upending the process of songwriting, the process of producing music. And I do think it is happening faster in the music industry than in other creative pursuits. You can just see it happening every single day in music.</strong></p>

<p class="has-text-align-none">Music people are pretty quick to jump on new technologies, and we adapt relatively quickly, I think. And you&#8217;re going to see it have an impact across all creativity and different art forms, I&#8217;m quite certain. But as you said, music people are early. It&#8217;s had an impact already, and I&#8217;m sure we&#8217;re going to dive into it.</p>

<p class="has-text-align-none"><strong>So </strong><a href="https://www.theverge.com/24293447/grammy-awards-recording-academy-harvey-mason-beyonce-discrimination-generative-ai-decoder"><strong>the last time</strong></a><strong> you were on the show, I&#8217;ll just read you some of the quotes. &#8220;I don&#8217;t think you can tell me that AI can create </strong><strong><em>Songs in the Key of Life</em></strong><strong>, </strong><strong><em>Nevermind</em></strong><strong>, or </strong><strong><em>Illmatic</em></strong><strong>.&#8221; And then you said, &#8220;It&#8217;s all going to be a mess until we get it sorted out because yes, it&#8217;s difficult.&#8221; It&#8217;s been 18 months. Has your thinking evolved dramatically on how AI can deliver quality, and how musicians should use it?</strong></p>

<p class="has-text-align-none">It has, honestly, and it&#8217;s crazy. I never thought it would change, but actually, that&#8217;s not true. I knew it was going to change, because it&#8217;s all been changing so fast. But the quality of what it&#8217;s able to create has improved dramatically. I remember 18 months ago, you could tell when something was AI-generated. And now it&#8217;s to the point where people are playing me things and telling me that AI made it, and I&#8217;m surprised. I&#8217;m impressed by the quality of it. And all that scares me because I do represent roughly 30,000 music people and then millions of music people around the world that have grown up their whole lives trying to figure out how to express themselves by using a guitar or a keyboard and writing their heartfelt lyrics. Now you can prompt some of that stuff. And it&#8217;s darn good, which I don&#8217;t know if I love or don&#8217;t love, but it&#8217;s evolved over the last 18 months.</p>

<p class="has-text-align-none"><strong>You&#8217;re still a working producer and a songwriter. I know you&#8217;re still in sessions. You gave a quote in January. You </strong><a href="https://www.musicbusinessworldwide.com/harvey-mason-jr-on-ai-grammy-eligibility-and-why-human-creativity-will-always-matter/"><strong>said</strong></a><strong>, &#8220;I&#8217;ve seen AI in every studio, in every session. I&#8217;m not remembering a song I&#8217;ve been around or a room I&#8217;ve been in that was not using some form of AI.&#8221;</strong></p>

<p class="has-text-align-none"><strong>I have been mulling that quote since January, when you said it on stage. I&#8217;ve been dying to have you in this chair to ask you about that quote. How is it being used? How is it changing the process of songwriting from your vantage point as a producer and a songwriter? And then obviously, as somebody who represents the interests of all the songwriters?</strong></p>

<p class="has-text-align-none">So the quote, let me address that first of all, because I work in pop music generally, pop and R&amp;B. And in those genres of music, I think it&#8217;s pretty omnipresent. There are other genres that are not that way. So I don&#8217;t want to mischaracterize it because what I do and what I see may not be everyone else&#8217;s experience. But when I&#8217;m in a room, AI is generally always there. It&#8217;s being used to create chord progressions. It&#8217;s being used to fill out drum loops. Some people are just creating entire tracks using AI. Others are using AI to come up with lyrics. Maybe they&#8217;ve written a few lines in the first verse. They want the second verse to have the same rhyme scheme and rhythm, and they&#8217;ll just enter the first one and say, &#8220;Make a new one for the second one.&#8221; Some people are being&#8230; They&#8217;re putting in a title, and it&#8217;s giving out ideas. And some of them are just using it as a rhyming dictionary.&nbsp;</p>

<p class="has-text-align-none">But AI is across so many different aspects of songwriting right now. Definitely, people are using it to create background vocals, to make stacks, to create demos of singers that they may be writing a song for. It&#8217;s pretty wild, the power of AI. And how I feel about it is that I have mixed emotions. I am definitely disturbed by the fact that I worked my whole entire life, and all the people that I work with have been grinding for years in studios and in bedrooms on laptops and with instruments, to try and figure out how to make great art. And now there&#8217;s a possibility of people doing that who have not put in the work or don&#8217;t have that same passion, and they can just type in a prompt and create a song.</p>

<p class="has-text-align-none">I talked a lot about my niece. She does a lot of AI creating, and she sends songs to my wife and says, &#8220;Look at the song I wrote.&#8221; She&#8217;s in sixth grade. And so it&#8217;s definitely a challenge for me, but I also have to understand that both in my role as a producer and my role as a CEO, there&#8217;s got to be a balance because AI is here, people are going to use it. There&#8217;s competition out there. Songwriters, artists, producers, they&#8217;re all competing for a certain number of ears.</p>

<p class="has-text-align-none">And a lot of them, they don&#8217;t care how they get to those ears; they just want to get to them. So I am struggling with making sure we&#8217;re preserving human creativity while also allowing technology to evolve the craft and the art form of creating and writing songs. So it&#8217;s not an easy struggle for me because I am a creator, but I&#8217;m also overseeing or trying to help serve music people in the music community in my role as CEO.</p>

<p class="has-text-align-none"><strong>We did a story a while ago. Our great friend, Charlie Harding, </strong><a href="https://www.theverge.com/ai-artificial-intelligence/829964/country-music-ai"><strong>wrote about AI in the country music industry</strong></a><strong>. And the country music industry is an industry. It&#8217;s more structured than other kinds of music.</strong></p>

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

<p class="has-text-align-none"><strong>There are songwriters, there are session musicians, there are track players. It&#8217;s a machine. And he was like, &#8220;AI is showing up in structured ways here.&#8221; The idea that people are going to make a demo track for an artist… that&#8217;s going away because the songwriters can just say, &#8220;Make me a song that sounds like whatever country artist,” and I&#8217;ll pitch it to them directly with their voice. And none of the artists would cop to it, but we heard it from all these songwriters. &#8220;Yeah, we&#8217;re just using the artist&#8217;s voices.&#8221;</strong></p>

<p class="has-text-align-none"><strong>There&#8217;s a real dynamic there that is spreading to other parts of the music industry. Pop music, as you mentioned, is starting to use it, but it&#8217;s not as structured. It&#8217;s not as controlled. How do you see that diffusion happening across genres?</strong></p>

<p class="has-text-align-none">Well, I&#8217;m a little surprised, to be honest, that it is permeating the country scene. I would think that would be one of the last to accept AI or any input from it.</p>

<p class="has-text-align-none"><strong>Oh, I have a very different view of country music. I think there&#8217;s an image, and then I think there&#8217;s an industry.</strong></p>

<p class="has-text-align-none">A reality. Well, I&#8217;ve definitely witnessed some people in that space using AI, and it just has to be&#8230; You have to figure out how you&#8217;re going to use it. Is it going to be a tool or is it going to be a replacement? And that is going to change per industry. I&#8217;ve seen people who are doing film scores now using it in a way that I never imagined. They&#8217;re playing individual instrument lines into the generative platform, and then that will, in turn, create a full arrangement. So maybe you&#8217;re playing a line on a piano, and then it turns it into strings, violins, violas, cellos, and basses, and it splits it out on a score. And then they&#8217;ll just hire the orchestras to play it. But they will not have to do any of the arranging, the composing, or even making the charts. It&#8217;s doing all that for you. So you&#8217;re going to see it used in different ways in different forms of music making, which you&#8217;re already seeing, as you said, in country versus pop versus composing.</p>

<p class="has-text-align-none"><strong>I&#8217;m going to read you some stats that I think are just fascinating. The Hollywood Reporter did </strong><a href="https://www.hollywoodreporter.com/business/business-news/ai-artist-pay-streaming-music-poll-america-survey-1236428233/"><strong>a big AI and music poll</strong></a><strong> last fall, but it tracks with the polling that we&#8217;ve seen more recently. Most people, 52 percent, do not want to listen to music made with the help of AI. Sixty-six percent of people said they&#8217;ve never listened to music knowing it was made by AI. I don&#8217;t know if you can do that anymore, but that&#8217;s what they said. And then there&#8217;s a lot of data that just says people dislike AI generally.</strong></p>

<p class="has-text-align-none">But you have to look at who they&#8217;re asking and who are the people that are filling out those surveys, and who are the people that subscribe to their magazine or will look at their website. As you get into younger people, I would imagine those numbers might change.</p>

<p class="has-text-align-none"><strong>So, younger people… This is polling that we have cited a lot on this show and across </strong><strong><em>The Verge</em></strong><strong>. Younger people, the more they use AI, the more they dislike it. So Gen Z has this ferocious dislike for AI. I bring this up not to litigate the poll numbers with you. I&#8217;m just curious about the sort of widespread use of AI, and the knowledge that most artists have that their fans don&#8217;t want them to say they&#8217;re using AI.</strong></p>

<p class="has-text-align-none"><strong>So Michelle Lewis </strong><a href="https://ca.rollingstone.com/ai-in-music-how-used-now/"><strong>told </strong><strong><em>Rolling Stone</em></strong></a><strong> the music industry has a quote, &#8220;Don&#8217;t ask, don&#8217;t tell policy about AI music.&#8221; Suno is one of the big generative AI platforms, maybe the dominant one; its CEO, </strong><a href="https://www.theguardian.com/music/2026/jan/19/ai-music-company-mikey-shulman-suna"><strong>Mikey Shulman, says</strong></a><strong>, &#8220;Suno is the Ozempic of the music industry. Everybody&#8217;s on it. Nobody wants to talk about it.&#8221;</strong></p>

<p class="has-text-align-none"><strong>That&#8217;s the gap, right? Everyone&#8217;s using the tools, everyone sees the power of the tools, but we cannot tell our fans straight out that we&#8217;re using AI to make the music. Do you see that gap closing or do you see it widening?</strong></p>

<p class="has-text-align-none">I don&#8217;t know. I don&#8217;t know if it&#8217;s going to close or widen. For us at the academy, we are in a challenging position because we have to award excellence in music. And we are now every year deciding what is going to be the threshold of acceptability for AI. So that&#8217;s going to probably have an effect on how the gap widens or closes because we ask when you submit, &#8220;Did you use AI?&#8221; But acknowledging it&#8217;s like Ozempic, some people are going to tell you they&#8217;re on it, some people are not. It’s a little bit of taking people&#8217;s word for it until we can find the technology or deploy the technology, which I know is supposedly out there, that can determine when AI is being used, and how much it&#8217;s being used. We are a little bit at the mercy of people telling us and disclosing when they&#8217;re using it.</p>

<p class="has-text-align-none">We&#8217;ll see what the perception is as people become more comfortable&#8230; In the history of humanity, I think we&#8217;ve had a pattern of becoming much more comfortable with new technology as we&#8217;ve used it and it&#8217;s been a part of our society, and it doesn&#8217;t usually take us very long. I remember people that I was with saying, &#8220;I&#8217;m never putting my credit card on the internet. That&#8217;s ridiculous.&#8221; Or, I&#8217;ve even met people in the music space who said they&#8217;d never use Pro Tools, AutoTune, Melodyne, or some of the other things that have developed and allowed us to be more creative and more efficient with our creativity. So we&#8217;ll see what happens. In 18 months, we should talk again, and we&#8217;ll see how people are feeling.</p>

<p class="has-text-align-none"><strong>Did you see the recent sort of social media discourse about whether the “D.O.A. (Death Of Auto-Tune)” held up as an idea from Jay-Z? It&#8217;s like, now it&#8217;s everywhere. It didn&#8217;t actually die. It took over everything.</strong></p>

<p class="has-text-align-none">It took over everything. Yeah. I haven&#8217;t seen that, but it&#8217;s a funny subject to think about.</p>

<p class="has-text-align-none"><strong>I’ve got big artists saying basically, adapt or die. Diplo, &#8220;I can get the best voice from AI. I don&#8217;t need anybody to sing the song anymore.&#8221; Literally, he said adapt or become an Uber driver.</strong></p>

<p class="has-text-align-none"><strong>Timberland is doing straight AI artists. He&#8217;s got an entire record labeled for his AI artist. 50 Cent just loves posting memes of soul covers of 50 Cent songs. Grimes exists. Taryn Southern is out there. What&#8217;s your take on how it&#8217;s the bigger artists who are going to adopt AI faster because they have the name recognition, they can put out AI music, and people will listen to it because it is 50 Cent, Grimes, or whoever? And the younger artists are struggling for attention because they&#8217;re swamped on social channels full of slop.</strong></p>

<p class="has-text-align-none">Some big artists will adopt, others are going to reject. And I think it&#8217;s very similar to the other tiers of music creators. Some young new artists are going to see it as an advantage, and they&#8217;re going to want to use AI because they can create faster, and they can create more things. And some are going to rebuff the whole idea of using technology like that to create. I don&#8217;t think you&#8217;re going to find any one-size-fits-all. That&#8217;s what&#8217;s going to be cool, or I think somewhat acceptable about it. I am always going to advocate for humans, and I think that&#8217;s still going to be an important part of the art form, which is how we express ourselves as a society, as humans, as we&#8217;re interacting with each other and talking about that human experience. That&#8217;s how we communicate. That&#8217;s how we feel about each other; that&#8217;s how we come together. I think that&#8217;s always going to be important.&nbsp;</p>

<p class="has-text-align-none">The other thing that&#8217;s going to be important is that humans are going to create the coolest, newest stuff. I don&#8217;t think, and in 18 months we can talk again, but I don&#8217;t think AI is going to go out ahead of us and beat us at coming up with a new sound, a new genre, something that&#8217;s fresh and exciting, that lands and resonates with listeners. They will, at some point, maybe figure out how to do that. But what they&#8217;re going to do now is they&#8217;re going to listen to all the cool stuff that we make. Then, they&#8217;re going to iterate on that, and they&#8217;re going to probably add a little twist here, mash some stuff together, and come out with a new song, a new voice, or a new singing.</p>

<p class="has-text-align-none">But as humans and as creators who are living life and experiencing things, we are going to be the ones that push the art form forward. I truly believe that, and this month we&#8217;ll see. So you&#8217;ll have both. You&#8217;ll have people using AI and just creating a whole bunch of music, and you&#8217;ll have other people say, &#8220;I want to do it my way. I want to create through my experience and through my pain and through my interactions.&#8221; And that&#8217;ll be cool.</p>

<p class="has-text-align-none"><strong>So you were talking earlier about how to win a Grammy, and you have to certify that you made it with humans. You only want to give the award to the human part of the music. That&#8217;s obviously getting fuzzier. You&#8217;re describing it getting fuzzier. If Diplo submits a track and he&#8217;s like, &#8220;All the backing vocals are AI.&#8221;</strong></p>

<p class="has-text-align-none">It&#8217;s okay.</p>

<p class="has-text-align-none"><strong>That&#8217;s okay?</strong></p>

<p class="has-text-align-none">AI doesn&#8217;t make you ineligible. It doesn&#8217;t exclude you from the process. We just have to make sure that human creativity is at the forefront and there is human creativity. So if somebody submits songs with AI background vocals, they&#8217;re not going to get a Grammy for performance because AI is doing the performing. But you can still submit for songwriting or some of the other categories. And conversely, if AI has written the song but you have a human singing it and they sang the heck out of it, that person can be submitted for a performance award.&nbsp;</p>

<p class="has-text-align-none">We acknowledge — and this is why it&#8217;s a fine line — that we&#8217;re walking the tightrope right now. And we want to make sure we&#8217;re honoring human creativity; we want to honor excellence. We have to acknowledge that AI is being used, and at some point we&#8217;ll have to decide: do we want to completely ban AI from the process and say, if you used AI at all, you are excluded from the Grammy process? Or are we going to say AI is the next version of a tool for music making and people are using it in different ways? Some of them are really interesting and creative, but some of them seem egregious and too much. We&#8217;re going to have to find that sweet spot, and that&#8217;s what we&#8217;re doing every single year.&nbsp;</p>

<p class="has-text-align-none">We review this policy, we look at it and make sure that we&#8217;re doing the thing that our board of trustees, our members, and our creative community want, because we listen to our creative community. So that&#8217;s what I see. The future is navigating that, and I think it&#8217;s going to evolve over time.</p>

<p class="has-text-align-none"><strong>Where&#8217;s the line right now? How much is too much?</strong></p>

<p class="has-text-align-none">Right now we call it more than a de minimis amount of human creativity involved in the process. So as long as you can show that a human was involved and it wasn&#8217;t just a tiny amount, then we will say it&#8217;s acceptable. But as soon as it gets beyond that point of none or not enough human interaction, then we have to pull back. And it&#8217;s not a perfect system. I mean, it is a very, very tough system to create because again, we don&#8217;t know exactly the percentage of human creativity or human interaction. We don&#8217;t have the ability to determine that today. I hope that we do in the future. We acknowledge that it is not the most perfect system, and music, by the way, is subjective as you know. So we&#8217;re evaluating and trying to award something that means something different to everybody.</p>

<p class="has-text-align-none">We just want to try and get it right, and we want to try and celebrate music and music people in all the different forms of it. And at this point, we are acknowledging that AI is a tool that is being used. At some point, we should talk about the legislation because we need guardrails. We need people telling us and us enforcing the rules around how AI can be used.</p>

<p class="has-text-align-none"><strong>I know you&#8217;ve been advocating for specific litigation. I do want to come to that. I just want to stay on this aspect of it for one second. You&#8217;re saying that to win a Grammy Award, you need to show us that there&#8217;s more than a de minimis amount of human involvement. I can&#8217;t just prompt Suno to make a hit record: &#8220;Make a song like Harvey would make for Janet Jackson.&#8221; Which actually sounds like a great Suno prompt. I&#8217;m going to do that when I get out of here.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Okay, that&#8217;s not enough. How do you prove it? Do you have to submit paperwork? Do you have to submit screenshots? What&#8217;s the proof?</strong></p>

<p class="has-text-align-none">We have screening committees that review and evaluate people&#8217;s claims, and at some point it does come down to people&#8217;s opinions and people doing the analysis and asking questions, asking for proof, asking for documentation. We&#8217;re not always going to get that, but we&#8217;re going to try. And as I said, it&#8217;s not a perfect science. We don&#8217;t have a black-and-white determining box that you can check that exactly proves that you&#8217;ve done what you&#8217;ve said you&#8217;ve done, but I know that our community is an honorable community.&nbsp;</p>

<p class="has-text-align-none">People who make music are&#8230; Creators are different people. I don&#8217;t think anybody wants to cheat and win a Grammy on grounds that they can&#8217;t prove. And I would hate to think that somebody would want to do that. Maybe it happens, and hopefully we&#8217;ll catch them before it does, but it&#8217;s just not the perfect system. It&#8217;s going to be challenging to determine exactly who did what. And until we can get the technology that breaks it down for us, we&#8217;re going to have to rely on our community to be forthcoming.</p>

<p class="has-text-align-none"><strong>I feel like we&#8217;re having this deep conversation about the artistic process, creativity, and vibes, and I&#8217;m just hitting you with a stat after stat. Deezer says 50,000 AI-generated songs are being uploaded to their platform every day. You&#8217;re describing a process where a bunch of people get together, and they look at all the submissions for the Grammys and whatever evidence, and they do some process. Are you going to get overwhelmed with the amount of AI material that&#8217;s coming your way?</strong></p>

<p class="has-text-align-none">We&#8217;ll see. So far, we haven&#8217;t. We had about 24,000 submissions last year. Now it&#8217;s up a little bit from the year before, and we&#8217;ll see what happens this year. And if that starts to happen, then we&#8217;ll have to make changes. The cool thing about our organization, at least over the last five or six years, is we&#8217;ve really been quick to change.&nbsp;</p>

<p class="has-text-align-none">We&#8217;re watching what&#8217;s happening, we&#8217;re listening, we&#8217;re hearing from our music people, and we&#8217;re saying, how can we make sure we&#8217;re doing this the right way? So if we start to get overwhelmed, AI becomes an issue for us, we can&#8217;t determine what&#8217;s happening, we&#8217;re getting inundated, or the whole thing is getting diluted by AI, then we&#8217;re going to make some changes. But right now, I think we&#8217;re in a pretty good spot.</p>

<p class="has-text-align-none"><strong>There are other parts of the industry that are attempting to do the same things. Spotify, for example, wants to change its royalty structures to account for AI music. They have a label now, like a human-certified label. Does that align with your thinking? Is there a more holistic approach across the industry that will help with this?</strong></p>

<p class="has-text-align-none">That would be great. I know a lot of us are talking amongst ourselves about how we can align and how we can build some of those processes and lanes for separation. I also think that&#8217;s going to evolve over time. And as we started talking, it is a deep conversation, philosophical thought. At some point, is it as important to determine what is synthetic or AI-generated and what is 50 percent generated? What is zero percent generated? And at some point, do consumers start to wear down and tire a little bit of that and just say, &#8220;I just want to hear great music. I&#8217;m not sure that I care about the tools so much right now.&#8221; Then it leaves it to us on the back end to make sure we&#8217;re protecting human creativity.</p>

<p class="has-text-align-none">I&#8217;m not sure if it will be 18 months from now. Maybe we&#8217;ll be more concerned about it, but maybe we&#8217;ll be less, and it&#8217;ll be like drum machines. You&#8217;ll say, &#8220;Some AI was used in this recording, but do I care?&#8221; I care as the CEO of the Grammys, and I care about representing human music people. And again, we&#8217;re going to have to, in the background, continue to fight and push and advocate for human creativity, but consumers aren&#8217;t worried right now if a vocal has autotune on it. They&#8217;re not thinking about if the strings are real strings in the ballad that they just listened to and that they loved.</p>

<p class="has-text-align-none">So I&#8217;m not sure I have the answer, but we&#8217;re going to see how it changes over time and how consumers&#8217; appetite for different forms of creativity and different tools being used in that process play out.</p>

<p class="has-text-align-none"><strong>There was a time when people really cared about autotune, right? Cher’s producers lied about using autotune on “Believe.” That used to be a thing that they would literally lie about because they didn&#8217;t want anyone to know how they&#8217;d done it or copped to it. And you&#8217;re saying that&#8217;s going to fade away with AI the same way it&#8217;s faded away with-</strong></p>

<p class="has-text-align-none">I&#8217;m not certain it&#8217;s going to. I&#8217;m going to say that&#8217;s an option that it could. People become normalized to it, and they just want to hear great music. They&#8217;re not concerned about the tools as much. But in saying that, I have to, again, reiterate that my belief is that humans and human creativity are always going to be important, are always going to be the most desirable, and always be the thing that pushes the art form forward.</p>

<p class="has-text-align-none"><strong>I like your optimism. My pushback here is that drum machines, for the most part, were not made by defense contractors. Maybe Yamaha had some sort of defense contractor, but for the most part, the instrument companies, the sampler companies&#8230; Pioneer was not making military targeting systems.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Anthropic, OpenAI, Google, all the big model companies are defense contractors. They&#8217;re caught up in the top of the government controversies every single day. They&#8217;re asking everyone for billions, if not trillions, of dollars. We&#8217;re going to put the data centers in space. At least from my perspective, it seems like the interests of artists and creatives, authors, they know it&#8217;s bad, but they&#8217;re like, &#8220;Hold on, we have war. We&#8217;re going to do war with the AI models. We&#8217;re going to argue about cybersecurity because maybe we&#8217;re going to crash the whole world.&#8221;</strong></p>

<p class="has-text-align-none"><strong>Have they been responsive to you? The last time you were on the show, I asked if you met with Sam Altman, and you&#8217;re like, &#8220;I&#8217;m hoping to.&#8221; Have you met with him since?</strong></p>

<p class="has-text-align-none">I haven&#8217;t met with him directly, but I have met with his team and people from Open and from Claude. We&#8217;re doing a lot of talking, and definitely the other platforms, Suno and Udio and others. So the dialogues are ongoing. From my perspective, or at least maybe I&#8217;m overly optimistic. I know I probably am. You already told me I am today.</p>

<p class="has-text-align-none"><strong>I appreciate it.</strong></p>

<p class="has-text-align-none">But I think everybody wants to do this the right way, and maybe they&#8217;re tricking me. From what I can tell, they realize the importance of music and creativity, and nobody wants to upend that completely. At least the music people that I talk to that are running those companies, they&#8217;re fans, and they love music, and they love creativity, and they want to add to that ecosystem. So we&#8217;ll see where it goes.&nbsp;</p>

<p class="has-text-align-none">I am optimistic, but I think my optimism comes more from the fact that I know our community and I know music people. I know how we think. I also know how competitive and talented our music people are, and I&#8217;m just always sure that we&#8217;ll persevere and we&#8217;ll use the tools. We&#8217;ll figure out cool new ways to do great new things with them, and we&#8217;ll iterate on what we&#8217;ve done before, and we&#8217;ll come up with a new way of making music and expressing ourselves. So that&#8217;s really where my optimism comes, less so from thinking that all the platforms are going to get in line and do exactly what we want because we know that&#8217;s not going to happen or less so that we&#8217;re going to have the perfect legislation that&#8217;s going to be drafted and passed and approved this year because I know that&#8217;s probably not going to happen, but I believe in our people.</p>

<p class="has-text-align-none"><strong>As you talk to all these companies, which of them seem the most artist-friendly? Which of them seem the most distant? How&#8217;s the dynamic?</strong></p>

<p class="has-text-align-none">When I&#8217;m in the room, they&#8217;re all artist-friendly. They&#8217;re all very nice, and they all love creators. <em>[Laughs]</em></p>

<p class="has-text-align-none"><strong>I&#8217;m just thinking about OpenAI doing Sora and just like launching it in the world and being like, &#8220;We stole everything.&#8221; Or I just keep picking on OpenAI, doing Studio Ghibli or saying, &#8220;This voice from our voice synthesizer sounds suspiciously like Scarlett Johansson,&#8221; until there&#8217;s a lawsuit. Some of them seem much more poised to be aggressive, and some of them seem a little calmer.</strong></p>

<p class="has-text-align-none">Some of them are more&#8230; They&#8217;re just not as concerned about it, and they&#8217;re not focused on it, a little more frivolous with how they&#8217;re treating the artist community. Maybe I&#8217;m misinterpreting it. It doesn&#8217;t seem like they&#8217;re doing it to be spiteful, to be harmful. They&#8217;re all trying to figure this all out at the same time.</p>

<p class="has-text-align-none">I have heard some people say they just want to move fast and break things. You&#8217;ve heard that probably more than I have, and they&#8217;re going to ask for forgiveness rather than permission. And those are things that are scary from a creative community perspective. The people that have written songs and hold copyrights and intellectual property, we never want to hear that. We&#8217;ll ask for forgiveness later. We&#8217;re going to use what you&#8217;ve created and what you own and what you legally have possession of, and we&#8217;re going to use that for our own benefit. That&#8217;s a dangerous precedent and one that I don&#8217;t think any of us on the creative side would support, but you are seeing some of that, so that needs to be worked out.</p>

<p class="has-text-align-none"><strong>There&#8217;s an interesting split here. There&#8217;s legislation that you&#8217;ve brought up. The No Fakes Act, which protects voice, image, and likeness. There&#8217;s the Train Act, which would give creators access to the records of what was trained on so you could demand royalties. There&#8217;s a CLEAR Act, which is just a transparency act. Just tell us what&#8217;s in the models. I would love all those to exist. As you said, I don&#8217;t know if this year is the year for Congress to act with alacrity on AI.</strong></p>

<p class="has-text-align-none">I just got back from DC, and it doesn&#8217;t seem like this is the year. They&#8217;re having so much infighting, but there is a lot of alignment around these, which surprised me. It&#8217;s bipartisan, bicameral support especially for the No Fakes. Everybody knows that&#8217;s the right thing to do, and how can we get it done? Let&#8217;s get the language right. Let&#8217;s not try and make it perfect. Let&#8217;s get something on the books right now, and then we can refine it. That&#8217;s at least my thought.</p>

<p class="has-text-align-none"><strong>You would think Donald Trump, of all people, would understand that the use of his voice is a powerful thing that he should&#8230; But it doesn&#8217;t seem like it matters. My most nihilistic version of this is that copyright law exists as a framework for big corporations to make deals, and for everyone else, it&#8217;s just a free-for-all. We&#8217;re just going to take stuff and remix it, and Mark Cuban and Taylor Swift are doing crypto ads, and that&#8217;s just the end of the &#8230; There&#8217;s no holding back. And maybe there will be some laws on whatever timeline there are laws. In the meantime, you&#8217;re going to get the platforms deciding that, because copyright law is the structure by which they make deals, they have to do something.</strong></p>

<p class="has-text-align-none"><strong>YouTube has likeness detection now. That is just a private legal framework. They just made up some rules about likeness, and you can sign up for it, and just the way that Content ID works on YouTube, they&#8217;re like, &#8220;We saw your face. You&#8217;re selling shoes. Do you want us to take it down?&#8221; And they&#8217;ll take it down. That&#8217;s a lot of platforms inventing a bunch of frameworks.</strong></p>

<p class="has-text-align-none"><strong>Do you think that&#8217;s going to be effective? Do you think there&#8217;s something to learn there as you push Congress or other governments to do stuff, or does that feel like just another kind of chaos for artists to deal with?</strong></p>

<p class="has-text-align-none">It feels like a first step, and it feels like something that is headed in the right direction because those are things that are attempting to protect the artists and the ownership that they have. I appreciate people trying to do that, but it does make it difficult for the artists. Having some federal framework, some federal legislation, or even an industry-wide framework that we could all abide by would be even better, but everybody&#8217;s just trying to figure this stuff out. People are trying to run their businesses. Artists are trying to run their businesses. Streamers are trying to run their businesses. It&#8217;s a dynamic that is very difficult, and I don&#8217;t know that we faced a time like this before.</p>

<p class="has-text-align-none">Everybody likes to say, &#8220;We&#8217;ve seen this before. We&#8217;ve seen this before.&#8221; And to some degree that&#8217;s true. We&#8217;ve seen sampling, we&#8217;ve seen streaming, we&#8217;ve seen, as I said, drum machines and disruptive technologies in the creative process, but this one, for some reason, feels different. Maybe I&#8217;m showing my age when I say that because everybody says that about the issues that are in their generation, but the change to the human creative process and the ownership of that is in question or at least being discussed right now. I don&#8217;t think it&#8217;s been as acute as it is now or has the potential to be now in the history of where we are in creativity and music.</p>

<p class="has-text-align-none"><strong>I don&#8217;t sit in your shoes. I don&#8217;t have to play the roles you have to play. I can just be direct. I look at the state of the world economy, and I think those guys shouldn&#8217;t be as rich as they are, and all of the artists should be much richer than they are.</strong></p>

<p class="has-text-align-none">I totally agree. Let&#8217;s go!</p>

<p class="has-text-align-none"><strong>Are you allowed to be that frustrated and express that as clearly as, I think, your fans, as your constituencies, and the music community want you to say it?</strong></p>

<p class="has-text-align-none">Yeah, I&#8217;d like to think so. I agree with&#8230; Artists and creators and people who make music are special. They just are. And what they do for society and what we do for the world, what we do for individuals, for communities, for countries… I&#8217;m a music person, so I just see it through that lens, but I think that the people who do that should be taken care of, should be compensated, and they should have the ability to control what they make. They should have the ability to decide how it&#8217;s being used, how they&#8217;re compensated, and how they&#8217;re credited. I just strongly believe that.</p>

<p class="has-text-align-none">In my career, I&#8217;ve worked with so many special people, and I&#8217;ve sadly worked on the last record of a lot of very talented people. I worked on Whitney Houston&#8217;s last record, Michael Jackson&#8217;s last record, Luther Van. And I remember distinctly when they passed and thinking to myself, &#8220;We&#8217;ve lost something so important and so meaningful.&#8221; People have their challenges, they have struggles, issues. Everybody has something they can get upset at an artist about. But at the end of the day, when an artist makes a record and you feel that record, you&#8217;re driving your car, you&#8217;re dancing at a wedding, or you&#8217;re at a concert, there&#8217;s nothing in the world like that Those people and the people that allow that to happen, we have to watch out for them, regardless of some of their shortcomings or some of their faults because of what they put into the world. And I just think that&#8217;s powerful.</p>

<p class="has-text-align-none"><strong>Are you allowed to bring this fire to your meeting with the AI companies? That&#8217;s really what I&#8217;m asking here. For my audience, I sense frustration. This is going to go out on YouTube, and I invite you to take a scroll through the inevitable YouTube comments we&#8217;re going to get, which basically come down to why isn&#8217;t Harvey arresting Sam Altman, right? That&#8217;s the vibe I get on this show all the time. These guys, they&#8217;ve stolen everything, and the people who should be getting the value, the people who make us feel joy, are getting nothing. That&#8217;s how people felt about Spotify. That&#8217;s increasingly how people feel about YouTube. Are you allowed to bring the fire to your meetings and in your advocacy, or are you playing a more subtle game?</strong></p>

<p class="has-text-align-none">I try to bring fire with me no matter where I go, but also, it is a relationship, and it&#8217;s a long-term play. This is not going to happen instantly. And how you&#8217;re interacting with people is going to affect the outcome. I do believe, as I said, they&#8217;re trying to run a business just like I&#8217;m trying to run a business or protect the business, and finding a solution is not going to be me just bulldozing them. It&#8217;s going to be how do we come together to find something that works for both of us?</p>

<p class="has-text-align-none">I have to say, much like streaming, when streaming came out, people were up in arms about it. &#8220;Streaming is horrible. We&#8217;re not getting paid,&#8221; but on the other side of that, you see how many more people are listening to music. You see how many more people are finding new artists that they never knew before, how many people are being encouraged to go to concerts because they discovered the song that they love on a streaming platform. So there are trade-offs.</p>

<p class="has-text-align-none">If somebody goes in and just blows up streaming right off the bat, we lose a lot of other opportunities that are unintended, or you might not have thought of. So approaching the AI people is the same thing. Yes, we have some issues, but yes, you&#8217;re also bringing something that could potentially benefit all of us, music creators, society at large. And so how do you manage that is, I guess, the challenge?</p>

<p class="has-text-align-none"><strong>There are some bulldozers in the music industry. When streaming came out, Taylor Swift </strong><a href="https://www.rollingstone.com/music/music-news/taylor-swift-abruptly-pulls-entire-catalog-from-spotify-55523/"><strong>bulldozed her way</strong></a><strong> into a rate structure that </strong><a href="https://www.pon.harvard.edu/daily/win-win-daily/dispute-resolution-with-spotify-taylor-swift-shakes-it-off/"><strong>eventually</strong></a><strong> most of the industry adopted. She put a big article </strong><a href="https://www.wsj.com/articles/for-taylor-swift-the-future-of-music-is-a-love-story-1404763219"><strong>in the </strong><strong><em>Wall Street Journal</em></strong></a><strong> about not being on Spotify at that time. Universal Music exists. That is maybe the biggest bulldozer of all.</strong></p>

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

<p class="has-text-align-none"><a href="https://www.latimes.com/la-influential/story/2024-07-07/lucian-grainge-universal-music-group"><strong>Sir Lucian Grainge</strong></a><strong>, one of the biggest bulldozers of all. He&#8217;s </strong><a href="https://www.musicbusinessworldwide.com/umg-and-sony-seek-to-add-61000-copyrighted-works-to-suno-lawsuit-after-discovery-reveals-suno-trained-on-millions-of-their-recordings/"><strong>suing</strong></a><strong> and </strong><a href="https://apnews.com/article/udio-suno-ai-music-universal-b90f9f5f968101ef617e41c5369da02a"><strong>settling</strong></a><strong> with Sunos and Udios literally in very tactical ways. The fight is whether the songs in Suno can be exported as MP3 files to be shared freely or whether you have to listen to them on a platform, which provides at least some gatekeeping. I don&#8217;t know if that&#8217;s effective. I don&#8217;t know if that&#8217;s an effective restriction. I can think of 50 ways to get around that as an old college music pirate.</strong></p>

<p class="has-text-align-none">At least 50.</p>

<p class="has-text-align-none"><strong>But this is the level that the bulldozers are saying, &#8220;Okay, we are going to restrict your platform.&#8221; Do you think that kind of power in the music industry can lead the charge on pushing back?</strong></p>

<p class="has-text-align-none">Yes, it can. Will it be effective? We&#8217;ll see. At some point, I&#8217;m sure they all realize this much more than I do because they&#8217;re incredibly smart and powerful and thoughtful, but consumers want what consumers want. And friction between consumers and music, or consumers and how they access their music, those are things that you can push against as much as you would like to, and it&#8217;s probably not going to work because people want to listen to their music. So yes, I think strong leadership, lawsuits, and trying to be protective is important, and it is hopefully going to make advancements in the right direction. But at the end of the day, as I said, people want their music. They want to listen to it, and that&#8217;s probably going to change based on a lot of things: the lawsuits, the bulldozers, but also fans of music.</p>

<p class="has-text-align-none"><strong>I want to ask one more question here, and then I want to talk about the Grammys and Disney for one second to wrap it up. You&#8217;ve been in the studios, you&#8217;ve seen artists use these tools in all kinds of ways. I&#8217;m assuming you&#8217;ve used the tools in all kinds of ways. What&#8217;s the most innovative sound?</strong></p>

<p class="has-text-align-none">I&#8217;ve never used the tools.</p>

<p class="has-text-align-none"><strong>You have never used the tools?</strong></p>

<p class="has-text-align-none">No, just kidding.</p>

<p class="has-text-align-none"><strong><em>[Laughs] </em></strong><strong>I was going to say. That&#8217;s the breaking news.</strong></p>

<p class="has-text-align-none"><em>[Laughs] </em>No, no, no. I have. Sorry.</p>

<p class="has-text-align-none"><strong>That would be surprising!</strong></p>

<p class="has-text-align-none"><strong>What&#8217;s the most innovative sound? What&#8217;s the most innovative technique that you&#8217;ve seen the tools enable? Because that&#8217;s the thing that, to me, would maybe make the sale. Not, I&#8217;m going to make soul covers of 50 Cent. There&#8217;s something about that that&#8217;s just kind of cheap. But we&#8217;re going to enable a new sound, a new method of songwriting that enables a new kind of story to be told. Where have you seen the bleeding edge?</strong></p>

<p class="has-text-align-none">What I&#8217;ve seen that’s interesting is people using the platform to create songs and generate stems, and stems are the multi-track split-outs. So you have all the drums on one track, bass on track.</p>

<p class="has-text-align-none"><strong>So you say the platform, you mean like Suno?</strong></p>

<p class="has-text-align-none">Yeah, creating stems. And then having live musicians iterate off of the stems. So they&#8217;ll say, okay, here&#8217;s a really cool groove of a song that we love, but now let&#8217;s do a live drum, a live bass, and a live keyboard player. Not using the stems from the platform, but having those inspire live musicians to build on top of that. So I think that&#8217;s kind of cool because it&#8217;s almost like you&#8217;re having a writing partner in the room that has infinite ideas. And you can say, well, let me try it like this. Then you hear something that inspires something in you as a musician or as a producer.</p>

<p class="has-text-align-none">To me, those are interesting uses. I like it less than people who just prompt and get a sound, and just stick that in their song and say, oh, I got something from the platform, I&#8217;m going to use it. I like it more when they get that, and they hear it, and it triggers something, and you go to the next level from what you&#8217;ve just heard. And I think that&#8217;s a cool use of it.</p>

<p class="has-text-align-none"><strong>Let me put that in a sort of broader arc of music. We&#8217;ve talked about drum machines a lot. I&#8217;m a Depeche Mode fan.</strong></p>

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

<p class="has-text-align-none"><strong>They became a drum machine band because the drums were too loud in their apartment. So the drum machine enabled Depeche Mode, and then synthesizers enabled all of the post-punk first wave. That&#8217;s my music. New Order exists because of a huge technological set of achievements that they then used to make a style of music. Turntables and mixers. We got first wave hip hop. Then we got samplers. We got another wave of hip hop. AutoTune, you got Akon, whatever that is. I can point-</strong></p>

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

<p class="has-text-align-none"><strong>Yeah. One of the most underrated and correctly rated artists of all time, at the same time, T-Pain. All right. I can point to, here&#8217;s a technological innovation that led to a sound, that led to a genre, that led to a movement. What do you think that looks like with AI? Is it going to be the same kind of thing, or is it slop? Because the danger is slop.</strong></p>

<p class="has-text-align-none">The danger is definitely slop. I don&#8217;t think it&#8217;s going to be one thing because AI is all across the board, and it&#8217;s being used in so many different ways. The drum machine was a very specific example, whereas with AI you can&#8217;t define its individual use. Everybody uses it differently. Every genre uses it. Now I&#8217;m finding out from you that even country&#8217;s using it. So I don&#8217;t think it&#8217;s the same thing where you&#8217;re going to say, &#8220;Oh, that&#8217;s that AI sound.&#8221; I don&#8217;t see that happening.</p>

<p class="has-text-align-none"><strong>I think that, to me, I look at all this data, all these feelings people have, and the whole industry can&#8217;t point to the thing that they&#8217;re delivering. We&#8217;re going to ask for all the GPUs, all the power, water rights, and you can&#8217;t buy a stick of RAM for a PC anymore. And you can&#8217;t point to the one thing that you made that&#8217;s worth it. You can point to everything. We&#8217;re going to change everything. And that everything is almost too diffuse.</strong></p>

<p class="has-text-align-none"><strong>I&#8217;m sort of wondering when, sure, Timbaland&#8217;s going to do an AI artist, but I already know what that artist is going to sound like, and I already know how the audience is going to react to that. There&#8217;s not a sound. There&#8217;s not a K-pop of AI that&#8217;s going to reorient the listener or the audience. Do you see anybody trying that, trying to push on it?</strong></p>

<p class="has-text-align-none">I don&#8217;t know. I don&#8217;t even know what that would look like. I don&#8217;t know what the result of that is. I think that you&#8217;re going to see new and different uses of the technology, and people are going to continue to push the boundaries. When you talk about Timbaland or Diplo or how they&#8217;re using it. I mean, we&#8217;re in the 1.0 version of this, and people are just getting used to seeing it in their toolbox. And once people have access to it for a little while, much like you saw the evolution of sampling&#8230; It used to just be that you could take the song and just sing over the whole thing. Now, it&#8217;s take a piece and chop it, then flip it and reverse it, and then speed it up and pitch it down. So you&#8217;re going to see new uses of this tool, and that&#8217;s when you&#8217;ll start to understand what its real power is.</p>

<p class="has-text-align-none"><strong>Let&#8217;s end by talking about the Grammys a little bit. That&#8217;s obviously the thing that the Recording Academy does; it’s the thing that funds everything else. We started by talking about your decision-making process. You made a big decision. You&#8217;re going to leave CBS, you&#8217;re </strong><a href="https://deadline.com/2024/10/the-grammys-move-cbs-to-disney-10-year-deal-1236162518/"><strong>bringing it to Disney</strong></a><strong>, it&#8217;s going to stream across platforms. You talked about the content explosion that we&#8217;re in for. Just walk me through that decision. Why make the change?</strong></p>

<p class="has-text-align-none">We&#8217;d been at CBS for over 50 years. They&#8217;ve been great partners. They were going through some ownership changes, as you know. They were trying to figure out what their focus was going to be. And we also knew, as a Grammy organization, that we had expansive ideas and thoughts about where we could go as a brand. We wanted to be more international, more global. We wanted to reach more music people. You&#8217;re seeing, in music, genres or borders and languages are breaking down. There&#8217;s music from all different parts of the world: K-pop, Afrobeats, music from the Middle East, India, other areas, Latin, of course. We knew we needed to continue to grow our organization and our reach, and we felt Disney and ABC would be a great partner for that.</p>

<p class="has-text-align-none">It also really aligns with what they&#8217;re doing, as they&#8217;re expanding into new areas and new territories. And they&#8217;re a company that, I mean, I don&#8217;t know about you, I&#8217;ve admired that company and the leadership over the last dozen years or more. How they&#8217;ve changed and how they&#8217;ve evolved, how they&#8217;ve kept up with technology, how they&#8217;ve always, at the heart of that, been true to the artists, been true to storytellers. They&#8217;ve been really passionate about making great things. So there was a lot of alignment for me personally, and then also for our organization with Disney that just made logical sense.</p>

<p class="has-text-align-none"><strong>Was this a bidding war? Were they the biggest check, or were they the biggest check and the best vibes?</strong></p>

<p class="has-text-align-none">There were multiple people involved in wanting to be in the media rights business with us, which I&#8217;m very appreciative and thankful for. And I think that is a testament to the work that our organization has done, our board, our members, our staff, and leadership over the last six years to get the organization to where we are. We were making sure we were relevant, making sure we were respected, making sure we were honoring music as accurately as we could.</p>

<p class="has-text-align-none">And so because of those things, our international opportunity, the availability of music in other parts of the world, and our agency that we have to celebrate it, we were a desired property. Again, I&#8217;m fortunate for that. It was not about the biggest check for us, though. It was about making sure that we could further our mission, perpetuate the right narrative out into the music community, that we are here to serve music people, uplift music. Because of what we talked about earlier, the importance of it, and what I think music means to the world and to society.</p>

<p class="has-text-align-none">Disney was a great partner because of that alignment. Yes, there was a financial component because, as you touched on, everything we do — our advocacy, our education, our music preservation, our legislation, all of our work around MusiCares, all that stuff is paid for by our media rights deal. So we have to get the right deal. And we are a not-for-profit. A lot of people don&#8217;t know that. We&#8217;re not doing this for profit. We get the money that comes in the door, and we push it back out into our music community to help music people. If you think about the LA wildfires, we did $30 million of relief to music people who lost their houses or their instruments or needed medical care. So those are the things that drive our decision, my decision, when it comes to doing a new media rights deal.</p>

<p class="has-text-align-none"><strong>One of the things I think about with award shows in particular is that they were very powerful in what you might call the monoculture era. Everyone has seen all the movies. Everyone has listened to the radio. Everyone has heard most of the songs. That is dwindling. Everyone&#8217;s in a little filter bubble on whatever algorithmic platform, listening to whatever TikTok hit the labels have paid to make big today. That&#8217;s making the award show a more diffuse product.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>I can watch the Grammys, and I haven&#8217;t heard of half the artists. How do you solve that problem? Because the value of the award show needs to stay high to fund all the other stuff.</strong></p>

<p class="has-text-align-none">Well, as we touched on earlier, I still believe in live programming and live events. And that is going to be a premium offering. People want to see things that are timely, that you can&#8217;t record and watch later because there&#8217;s that social element of it. Did you see what happened on this stage, or did you see who won this? So that&#8217;s, to me, an advantage that we have that&#8217;s similar to sports. When you watch a sporting event, you want to watch it in real time because you want to see who won and who played well or what the stories were. So I hope, and I truly believe, that that is an advantage for an award show if done right.</p>

<p class="has-text-align-none">As far as the diffusion and the different genres, if we can make the show compelling and we can continue to tell human stories, which I think we&#8217;ve done over the last few years, and our production partner Fulwell and Ben Winston have been instrumental in this, you bring audiences to the show because they&#8217;re compelled to watch the stories and the human interest elements. And we&#8217;re looking to expand that with our partnership with Disney. I think that&#8217;s an important component of it because it&#8217;s not just about what song you love. It&#8217;s about the process. It&#8217;s about who the people are that are making those songs, and then to see it displayed in a way that nobody else can do. I think we do that at the Grammys.</p>

<p class="has-text-align-none"><strong>So, we should expect more. I know you produced the Michael Jackson documentary. Should we expect more music biopics with Disney, more short-form artists, human-interest stories with Disney?</strong></p>

<p class="has-text-align-none">I&#8217;d like to think so. I&#8217;d like to think that we are partnered with, I think, the best storytellers around. And using that platform, their expertise, knowledge, research, and appetite for more music content is something that we are excited about. We want to tell more stories about music people because to me they&#8217;re timely and they&#8217;re compelling, and it&#8217;s what we need more of right now.</p>

<p class="has-text-align-none">So our hope is that Grammy Studios will continue to evolve and grow, producing more content around things that we&#8217;re doing, shows in other parts of the world. Tell stories about music people in other parts of the world. And of course our show is going to be the highlight, and it&#8217;s music&#8217;s biggest night. That’s this year, February coming up, and it&#8217;s going to be exciting. Our first show on Disney ABC.</p>

<p class="has-text-align-none"><strong>A lot of the young audience lives on what you would call social media platforms. They&#8217;re on TikTok or Instagram Reels. Are you going to try to address them there more, or are you going to let the industry handle that?</strong></p>

<p class="has-text-align-none">No, absolutely. We want to be where music fans are and where people who are excited to watch music want to consume it. That&#8217;s one of the exciting parts about our partnership with Disney+ and ABC. They are very open to making sure we&#8217;re using all the different avenues and outlets for sharing our content, sharing our story, and sharing music with people.</p>

<p class="has-text-align-none">And we&#8217;ve seen a little bit of a decline around linear from our show. We&#8217;ve kind of gone up and down. We crept our way back up to a pretty good number. But what we&#8217;ve also seen and experienced is a massive explosion of consumption in other mediums on the digital side, on our website, on YouTube, on the platforms. So obviously, consumers are changing, and how people are watching is changing. Our hope is that we can keep up with that, especially now in our new partnership.</p>

<p class="has-text-align-none"><strong>Is TikTok still the place where all new music gets broken?</strong></p>

<p class="has-text-align-none">A lot of it, definitely. I won&#8217;t say all, but it&#8217;s a massive influencer, and it&#8217;s a huge platform for music people. And I see a lot of people spending <a href="https://www.wired.com/story/geese-chaotic-good-marketing-industry-plant/">a lot of time and energy</a> trying to figure out that strategy. How do we use it? How do we leverage that platform to get attention and eyeballs? And you touched on it earlier. It&#8217;s an attention economy. There are so many things coming out. I <a href="https://newsroom-deezer.com/2026/04/ai-generated-tracks-represent-44-of-new-uploaded-music/">hear 75,000</a>, you said 50,000 AI songs per day, and then another 100,000 songs <a href="https://www.theverge.com/column/921599/ai-music-is-flooding-streaming-services-but-who-wants-it">on Spotify</a> that are coming out. So there&#8217;s so much competition for attention. TikTok is something that has proven to bring a lot of eyeballs and ears to the table.</p>

<p class="has-text-align-none"><strong>All right. Last question. It&#8217;s the toughest one of all, and then we’ll let you get out of here. Why didn&#8217;t Sabrina Carpenter win any Grammys this year?</strong></p>

<p class="has-text-align-none">Because our voters didn&#8217;t vote for her this year. It&#8217;s a tough one. I love Sabrina. She had a great record, but the answer to your question is very simple. It&#8217;s always about the voters. And there&#8217;s quite often music that is incredible, that is amazing and so exciting that doesn&#8217;t win. We have eight nominees, and seven of them lose, sadly. It&#8217;s subjective, it&#8217;s challenging. But the good thing that I&#8217;m proud to say is it comes down to the voters and who they vote for.&nbsp;</p>

<p class="has-text-align-none">Our process has evolved over the time that I&#8217;ve been here. We&#8217;ve removed some steps. There were committees that used to be involved. There were other things that would help determine the nominees and the winners. Now it&#8217;s a straight vote. How they vote is how you see the results coming out on television. So as much as Sabrina deserves to win and many other artists deserve to win, the voters dictate who gets that trophy.</p>

<p class="has-text-align-none"><strong>All right, Harvey. Well, I hope you keep that process as human as possible for as long as possible. It seems important.</strong></p>

<p class="has-text-align-none">Very important. Thank you, man.</p>

<p class="has-text-align-none"><strong>Thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>. This is always a pleasure.</strong></p>

<p class="has-text-align-none"><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[Rivian’s software chief thinks you don&#8217;t need CarPlay or buttons]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/929940/rivian-wassym-bensaid-software-volkswagen-carplay-assistant-ai" />
			<id>https://www.theverge.com/?p=929940</id>
			<updated>2026-05-28T10:36:37-04:00</updated>
			<published>2026-05-28T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Cars" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Electric Cars" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Transportation" />
							<summary type="html"><![CDATA[Today, I’m talking with Wassym Bensaid, the chief software officer at Rivian, and the co-CEO of Rivian’s platform joint venture with Volkswagen, which everyone just calls RV Tech. That joint venture kicked off about a year and a half ago with a nearly $6 billion investment from Volkswagen. It effectively puts Wassym in charge of [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">Today, I’m talking with Wassym Bensaid, the chief software officer at Rivian, and the co-CEO of Rivian’s platform joint venture with Volkswagen, which everyone just calls RV Tech.</p>

<p class="has-text-align-none">That joint venture kicked off about a year and a half ago <a href="https://www.theverge.com/2024/11/12/24294827/vw-rivian-joint-venture-leadership-ev">with a nearly $6 billion investment</a> from Volkswagen. It effectively puts Wassym in charge of the operating system and electrical architecture for every future EV from Volkswagen and its associated brands, including familiar names like Audi, but also new companies like Scout.</p>

<p class="has-text-align-none">There’s a lot of <em>Decoder</em> ideas in there — I really wanted to know how that joint venture works and how it’s structured to preserve Rivian’s unique software culture, which you’ll hear Wassym talk about as the core element of the whole thing. I also wanted to know where the lines were — what parts of Rivian’s software get to be just for Rivian, and which parts of the core technology would be shared across the smaller company and the behemoth that is Volkswagen Group. And, of course, I wanted to understand how Wassym navigated the tension between the two. You know, classic <em>Decoder</em> bait.</p>

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<p class="has-text-align-none">It’s also a big moment for Rivian in general right now. The company is <a href="https://www.theverge.com/transportation/921295/rivian-q1-2026-earnings-revenue-profit-r2">gearing up to deliver the more affordable Rivian R2</a>, which is the first vehicle based on this new architecture, and the company also just shipped the <a href="https://www.theverge.com/transportation/928651/rivian-ai-voice-assistant-r1-r2">AI-powered Rivian Assistant in its R1 vehicles</a>. You’ll hear Wassym talk about Assistant as the beginning of a big bet for Rivian, as it tries to create a <a href="https://www.theverge.com/transportation/846783/rivian-ai-autonomy-day-self-driving-lidar-chip-tesla">more agentic software platform in its cars</a>.&nbsp;</p>

<p class="has-text-align-none">I actually got to spend some time with the Rivian Assistant in an R1S ahead of my conversation with Wassym, and I found it to be a fascinating experience — certainly powerful and engaging while at the same time frustrating in a lot of really interesting ways. So I had a lot of feature requests, bug reports, and questions about the future of AI and voice assistants in cars.&nbsp;</p>

<p class="has-text-align-none">So I asked Wassym about all of that, and also about his statements over the years that <a href="https://techcrunch.com/2024/10/30/rivians-chief-software-officer-says-in-car-buttons-are-an-anomaly/">buttons in cars are just an anomaly</a> and of course how he’s feeling about Apple CarPlay and Android Auto these days. You’ll hear it, but spoiler alert: Don’t get your hopes up.</p>

<p class="has-text-align-none">This is a really fun episode of <em>Decoder</em> — we really get into the weeds on a lot of my favorite topics to talk about here on the show.</p>

<p class="has-text-align-none">Okay: Wassym Bensaid, chief software officer of Rivian and co-CEO of RV Tech. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP7596151508" width="100%"></iframe>

<p class="has-text-align-none"><strong>Wassym Bensaid. You&#8217;re the chief software officer at Rivian. You&#8217;re also the co-CEO of a very important software joint venture between Rivian and Volkswagen, which is straightforwardly called Rivian and Volkswagen Group Technologies. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Thanks, Nilay. Super excited to be here.</p>

<p class="has-text-align-none"><strong>I am very excited to talk to you. I have a lot to talk to you about. It occurred to me as we were doing the prep for this episode that you&#8217;re in charge of building a new kind of software for cars. But because of this joint venture that&#8217;s building a new kind of software company that&#8217;s building a new kind of software for cars, it is the most fractal </strong><strong><em>Decoder</em></strong><strong> I think we&#8217;ve ever had.</strong></p>

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

<p class="has-text-align-none"><strong>There&#8217;s a lot here. Let&#8217;s start with the organization. So, you&#8217;re the chief software officer at Rivian. I think a lot of people understand what that means. You&#8217;re the guy that they can yell at about CarPlay. Don&#8217;t worry, we&#8217;ll come to that.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>There&#8217;s also the new Rivian Assistant, which is an intelligent agent inside the car that I&#8217;ve been playing with and I want to ask you a lot of questions about. Then, there&#8217;s RV Tech, which is the joint venture with Volkswagen. You&#8217;re building a new zonal architecture for a bunch of cars. I believe the R2 is the first car that&#8217;s going to run that new architecture.</strong></p>

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

<p class="has-text-align-none"><strong>How does that all work? What are the lines between RV Tech, where you&#8217;re the co-CEO,&nbsp; and your role with Rivian, and what is the boundary between the software you build in the joint venture and the software you build at Rivian?</strong></p>

<p class="has-text-align-none">Before we dive into RV Tech and the joint venture, I think it&#8217;s really important to talk about the overall industry landscape. The automotive industry is going through a major disruption. The amount of software content in cars with technologies like electrification, connectivity, and autonomy is significantly increasing. That is creating a big divide between traditional OEMs and new tech-forward companies.&nbsp;</p>

<p class="has-text-align-none">Consumers now have much higher expectations in terms of the overall experience and convenience. Multiple OEMs have tried really hard to get software content, but it&#8217;s not easy. It requires a very different type of talent. In some cases, it requires complete cultural change because you&#8217;re not only developing software. You also need to adopt different methodologies and ways of doing things. You need to be much more agile. When you look at the industry, companies tried to do that in-house. Some of them tried to partner. Some of them tried to use Tier-1 suppliers.</p>

<p class="has-text-align-none">A lot of recipes did not really work, and that was the genesis of the great partnership we have now with the Volkswagen Group, which has really taken the Rivian technology stack — taken the software, the electrical architecture, as well as the Rivian DNA and culture — and married it with the Volkswagen Group&#8217;s incredible scale. It truly provides a fantastic opportunity for both companies because now we have a solution that can not only underpin Rivian vehicles — as you mentioned, the R2 is the first car the joint venture is shipping — but then also, in the future, every single electric model in the VW Group. This is from your premium cars like Audi, to luxury cars with Porsche, Bentley, and Lamborghini, all the way to mass market cars.</p>

<p class="has-text-align-none">That suddenly provides an opportunity of scale. Also, it exercises the technology in very different ways, and it puts us in a wonderful position so that we can build an architecture and operating system for the entire industry.</p>

<p class="has-text-align-none"><strong>That question about the architecture and operating system feels very complicated. As you said, the industry is moving to software-defined vehicles, which is a great buzzword. Every car executive I talk to clearly has a different definition of what “software-defined vehicle&#8221; means. What is your definition of “software-defined vehicle”?</strong></p>

<p class="has-text-align-none">First of all, I hate that buzzword.</p>

<p class="has-text-align-none"><strong>[</strong><strong><em>Laughs</em></strong><strong>] You brought it up.</strong></p>

<p class="has-text-align-none">Actually, I can&#8217;t find a better name. So, I admit that I&#8217;m also using the same for a lack of a better definition.&nbsp;</p>

<p class="has-text-align-none">But think about it this way. When you look at the older architecture in cars, it’s really an aggregation of multiple mechanical components. Underneath that, there are, in some cases, hundreds of electronic units, and each one of them is meant to do one thing. That&#8217;s actually mirroring the way those cars are built because they are developed using different Tier-1s and other suppliers.&nbsp;</p>

<p class="has-text-align-none">In that world, integrating an end-to-end vehicle feature requires a ton of coordination between many of those suppliers. It requires very long development cycles. That approach kind of worked in the past when the expectations of consumers were not super high in terms of those end-to-end features. But I think with the advancement of EVs and with the types of user experiences that Tesla, Rivian,, and the Chinese cars are offering now, that&#8217;s no longer an option for any car manufacturer.</p>

<p class="has-text-align-none">I&#8217;ll give you a small example. When you walk to Rivian — and I know you&#8217;re currently testing a [Rivian R1] Gen 2 Quad —&nbsp; let&#8217;s say you have your Apple digital key. You walk to the car and then the car recognizes you. Then, there&#8217;s a lighting sequence, and your entire profile is configured. Whether it&#8217;s the seats, the steering wheel, the infotainment system, the HVAC, everything is configured for you.</p>

<p class="has-text-align-none">That sequence takes probably just 15 seconds, but doing that in the traditional world requires the coordination of more than 10 suppliers. You need to talk to the seat supplier. You need to talk to the door supplier. You need to talk to the HVAC supplier. You need to talk to the infotainment supplier. You need to talk to the security system. You need to talk to the cloud. You need to talk to the third party for the digital key. Just imagine that you want to slightly change that sequence for whatever reason. You have to go through another cycle of changes.&nbsp;</p>

<p class="has-text-align-none">This is why that old model really doesn&#8217;t work anymore. Cars are now integrated systems with what we call &#8220;zonal computers.&#8221; We think about them as general-purpose, powerful compute that we place in the middle of the car, and they become the centralized brain of those different functions. The more software you can move on those zonals, the more it can provide control over those end-to-end features for the customers.</p>

<p class="has-text-align-none"><strong>So, this is the pitch that every pure-play car startup has been making for a long time, right? The way that the OEMs built cars was done, and you shouldn&#8217;t have 1,200 ECUs from 1,200 different suppliers. That was fine for gas cars that were pretty dumb, where the only computer was like my old Pioneer head unit that had a fold-out screen. By the way, I love that head unit, if you could bring that back. I have fond teenage memories of my dumb old car with that head unit.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Now, the whole car is a computer, and you expect a lot of things to happen but that integration is too hard. What I would say broadly is that legacy OEMs have known this for years. They have been on their own journey to solve this problem, to cut down on the number of ECUs.</strong></p>

<p class="has-text-align-none"><strong>Ford CEO Jim Farley was </strong><a href="https://www.theverge.com/2021/5/20/22444294/ford-f150-lightning-pickup-truck-jim-farley-interview"><strong>on the show five years ago</strong></a><strong> saying things like, &#8220;Too many ECUs; we&#8217;re going to cut it down.&#8221; Volkswagen, in particular, </strong><a href="https://insideevs.com/news/724619/rivian-volkswagen-explained-cm/"><strong>had its own giant project to do this that failed</strong></a><strong>. I think there&#8217;s enough distance. You&#8217;re a year and a half into the new joint venture, and we can say Volkswagen&#8217;s CARIAD failed.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Why do you think the new joint venture and the infusion of Rivian culture is going to be successful when Volkswagen&#8217;s attempt to do it on its own did not net any positive results?</strong></p>

<p class="has-text-align-none">You&#8217;re getting me in trouble, Nilay.</p>

<p class="has-text-align-none"><strong>That&#8217;s what I do.</strong></p>

<p class="has-text-align-none">What I personally appreciate about the Volkswagen Group’s decision is the recognition that developing what are called software-defined vehicles requires a complete, clean-sheet approach. You cannot approach it with Band-Aids and by having some level of software content in the car. As you said, the Volkswagen Group has tried. Actually, it has tried twice. But deep inside, there are two things that are really important here. One is that you need the right talent who are able to develop true software. Not abstracted functions like what the automotive industry is using — you have probably heard about AUTOSAR — but a true, hard-coded operating system.&nbsp;</p>

<p class="has-text-align-none">Then, you also need a deep cultural change with a very different way of approaching the car and its overall development. The traditional model said that cars were defined many, many years in advance. People claim they know about software features four or five years in advance, and then it&#8217;s a very fixed waterfall approach. The way we design cars at Rivian is that we actually design the car around the electrical architecture, the software, and the adaptability of the software. So, software and technology have been at the table since very early on. It actually impacts the overall packaging of the car. We really use that platform and that operating system mindset so that we have a car that can evolve over time and get better and better for our customers.&nbsp;</p>

<p class="has-text-align-none">Such changes are so deep that to do it well, you either need to have the right partner or you go with a clean-sheet approach. I think the Volkswagen Group has made the right decision to partner with Rivian in this case and to not only embrace the technology that we built from the ground up but to also embrace the culture, the approach, and the DNA of Rivian as a company.</p>

<p class="has-text-align-none"><strong>How is the joint venture structured? I know you have a co-CEO, Carsten Helbing, who&#8217;s the Volkswagen CTO. So, you&#8217;re the two co-CEOs. How is it structured underneath that?</strong></p>

<p class="has-text-align-none">There&#8217;s a technical team underneath that: software engineering and electrical engineering. The technical team reports to me, and Carsten is my partner in crime. He takes care of the operations, and he&#8217;s also the main interface with the Volkswagen Group. There&#8217;s a ton of complexity in terms of managing different requirements and different inputs from the brands. He&#8217;s really doing all that arbitration so that we continue pushing towards a platform approach and reduce the overall complexity of the portfolio we&#8217;re supporting with the VW Group.</p>

<p class="has-text-align-none"><strong>One of the questions I have here is that you describe it as an operating system. That seems like a good framework. People understand what operating systems are. I realize car operating systems are vastly more complex than people give them credit for, but it&#8217;s an operating system.</strong></p>

<p class="has-text-align-none"><strong>Then, there are the expressions of the operating system. I know that when our audience thinks of the software in the car, they think of the infotainment screen and that&#8217;s it. That&#8217;s just one expression, right? The user interface that Rivian is running&#8230; There are going to be other expressions for Volkswagen, for Scout, and I presume for Lamborghini. They&#8217;ll all be running the same core operating system expressed in different ways.</strong></p>

<p class="has-text-align-none"><strong>That is a real push-and-pull dynamic. Where do the features live? Who gets to build which feature? What are the core capabilities of the operating system and the platform versus what Lamborghini wants that it doesn&#8217;t want Rivian to have? How do you make those decisions?</strong></p>

<p class="has-text-align-none">First of all, I think it&#8217;s important to clarify the role of the joint venture. So, we&#8217;re responsible for the underlying electrical architecture and the operating system. When you look at a modern car today, pretty much every single interaction you have with the car is powered by software. You don&#8217;t realize it in a lot of cases. People tend to associate software with infotainment and with what they see on the UI and the screen, but there&#8217;s software everywhere in the car. I mean, there&#8217;s the way the car navigates, the way the car drives, the way the car saves energy, the way the car does cabin comfort. All of that is actually managed through software.&nbsp;</p>

<p class="has-text-align-none">So, the way to think about this is that our role is to, first of all, build an electrical architecture with as few computers as possible in the car so that we simplify the overall packaging and the overall bill of materials. This is the brains of the system. On top of that, we develop software that the different brands can use so that they express their own identities. Think about it as us doing&nbsp; 80 to 90 percent of the hard work. Then, we provide customization hooks so that an Audi drives like an Audi and a Lamborghini has a different UI than a Rivian. But what&#8217;s happening under the hood, what&#8217;s happening behind the scenes, is based on the same platform.</p>

<p class="has-text-align-none"><strong>When you think about that underlying electrical architecture and the zonal computers — you say we&#8217;re going to cut down the number of computers but have fewer and more powerful computers — one of the things that seems like an obvious opportunity for Rivian that might be way more complicated for Volkswagen is that you have a big battery that can just power those computers all the time. They can be online, they can be functional, they can be available. Volkswagen also makes gas cars and hybrids. There&#8217;s some pendulum swinging in the industry between electrics and gas vehicles, particularly here in the United States. Is that a challenge or are you just not thinking about their gas cars at all?</strong></p>

<p class="has-text-align-none">The joint venture&#8217;s scope, for the time being, is really about powering all the electric vehicles. This is the agreement we have with Volkswagen. One of the main reasons I joined Rivian is for the mission. I think the joint venture provides us with an extraordinary opportunity to accelerate electrification into many more cars around the world.</p>

<p class="has-text-align-none">One of the first products that we&#8217;re <a href="https://www.caranddriver.com/news/a64054081/vw-id-every1-concept-revealed/">building with Volkswagen Group is the ID.1</a>, which is taking our technology to a mass-market vehicle. This is a car that will sell for less than $25,000, and it really opens the technology and that rich feature set to many more consumers around the world. Now, can the technology be used for non-EVs? Can it be used for hybrids or ICE vehicles? Obviously, the answer is yes, but for the time being, that is not the priority of the joint venture.</p>

<p class="has-text-align-none"><strong>How big is RV Tech? How many people?</strong></p>

<p class="has-text-align-none">We&#8217;re about 1,500 people.</p>

<p class="has-text-align-none"><strong>How is that split between Rivian folks and Volkswagen folks? Is it employees from both companies, or are they employees of RV Tech?</strong></p>

<p class="has-text-align-none">They are employees of RV Tech. Actually, we started with about 800 or 900 developers coming from Rivian, and then we had about 50 colleagues who joined us from the Volkswagen Group. The rest are developers and engineers that we&#8217;ve hired in the past 18 months. So, everybody&#8217;s RV Tech.</p>

<p class="has-text-align-none"><strong>The reason I ask is that you mentioned at the very beginning that it&#8217;s an infusion of Rivian culture, but now they&#8217;re not Rivian employees. But at the same time, you are also the chief software officer of Rivian. How does that culture persist if the thing is its own entity, if it&#8217;s not as directly connected to Rivian, or if they&#8217;re not Rivian employees?</strong></p>

<p class="has-text-align-none">&nbsp;The way I define my job and my number one priority is to help the company grow and build on our two main assets, which are technology and our people and culture. With technology, I think we have a wonderful opportunity now to take that tech into many more cars across a wide range of the portfolio. Then there&#8217;s trends and culture. My daily obsession is to really make sure that we continue to have the same DNA: agility, being nimble, prioritizing action, quick decision-making, and iterating really fast so that we are at the forefront of innovation.</p>

<p class="has-text-align-none"><strong>One of the other reasons I ask is that there are Rivian decisions that Volkswagen maybe won&#8217;t make. Rivian runs on Unreal Engine for the graphics in the infotainment. It&#8217;s really fun. I&#8217;m not sure that every single Volkswagen is going to run on Unreal Engine.</strong></p>

<p class="has-text-align-none"><strong>At least as I understand it, that&#8217;s a decision the different brands can make for themselves. But you&#8217;re the chief software officer at Rivian. You&#8217;re like, &#8220;We need better support for the Unreal Engine interface.&#8221; Maybe the platform doesn&#8217;t want that, and you wear that hat, too. How do you reconcile those tensions? Do Rivian&#8217;s needs always win?</strong></p>

<p class="has-text-align-none">What wins is how we can build the software in a way that allows for different expressions. I think in this case, Rivian&#8217;s interface will show up through Unreal Engine, but then we need to have hooks in our frameworks so that — and I know you will ask me this question — Volkswagen cars can have CarPlay. The team will develop that even though Rivian will not adopt CarPlay. It&#8217;s really about creating those different hooks in the operating system so that we allow for different ways to express the user interface.</p>

<p class="has-text-align-none"><strong>This is so fascinating. Like I said, this is such a fractal episode of </strong><strong><em>Decoder</em></strong><strong>. It strikes me, just talking to you about this, that there aren&#8217;t a lot of models in an industry as big as the auto industry like this, where the big player is letting the smaller company define the culture, the opportunity, and the architecture, which will define its future roadmap. What examples have you looked at that are similar, where you can say, &#8220;That&#8217;s successful. We should build the model based on this and operate like this?&#8221; What versions of this have failed that you&#8217;ve looked at where you&#8217;re like, &#8220;I want to avoid those mistakes?&#8221;</strong></p>

<p class="has-text-align-none">I think there are many more failure stories than success stories when people look at joint ventures. This has been one of our guiding principles. We spent a lot of time discussing with VW leadership before we engaged in such a partnership. What made [Rivian CEO] RJ [Scaringe] and myself lean heavily into this partnership is, one, the opportunity and, two, the honest and constructive partnership from Volkswagen Group leadership.&nbsp;</p>

<p class="has-text-align-none">First of all, we are talking about putting Rivian technology into the second-largest OEM in the world. This is, by far, the biggest licensing deal in the automotive industry. As RJ and I started the discussions with [VW CEO] Oliver Blume, his number one priority was that they needed to keep the Rivian way of doing things. We realized that we are not only bringing software IP and electronics IP but also a different process. We are bringing a different culture, and the VW Group needed that change from the inside.</p>

<p class="has-text-align-none">Obviously, in some cases there has been daily tension. There are cases over the past 18 months where, as you mentioned, one brand might request a different requirement than another brand. But what really helped us to continue is that support from the highest levels of Volkswagen Group leadership to help drive that transformation and cultural change.</p>

<p class="has-text-align-none"><strong>Let me ask you the other </strong><strong><em>Decoder</em></strong><strong> question, and then I want to turn to the software itself. I ask everybody this question. We&#8217;ve talked about it a little bit. How do you make decisions? What&#8217;s your framework for making decisions?</strong></p>

<p class="has-text-align-none">So obviously, my job every day is making decisions, but there are a number of guidelines that I try to apply. In terms of coaching with my team, I try to push decisions to the lowest levels of the organization as much as possible. One of the anti-patterns that I see with a bunch of companies is them trying to bubble up decisions with the highest levels of executives, and that tends to create a culture where things are slow and employees don&#8217;t feel really empowered.&nbsp;</p>

<p class="has-text-align-none">Now, in cases where I personally have to make the decision, there are a few guidelines to the team: never come to me with one option, show that you went through an analysis, have multiple options, and then make a recommendation. I want a culture where I empower my team to have a forceful proposal and then come up with recommendations themselves.</p>

<p class="has-text-align-none">The rule that I use to determine how much time I should spend on a decision is about whether it’s a one-way door decision or a two-way door decision. If it&#8217;s a two-way door decision, then I don&#8217;t need to spend that much time on it. It doesn&#8217;t really need a hard framework. We don&#8217;t need to go to extremes where we collect tons and tons of data so that we get to a decision. In some cases, I just use my gut. I&#8217;m a product builder at heart. I know that with some of the decisions, even if the data is against me, I should go with my feeling. In some cases I&#8217;m wrong, and I&#8217;m the first to recognize that.&nbsp;</p>

<p class="has-text-align-none">Now, if it&#8217;s a one-way door decision, then that&#8217;s a different process that requires much more preparation and much more data, and then it requires arbitration for how we do things.</p>

<p class="has-text-align-none"><strong>Give me an example in this context of a one-way door decision and a two-way door decision at RV Tech.&nbsp;</strong></p>

<p class="has-text-align-none">There&#8217;s multiple. I think one of them will probably lead to the next topic of discussion, which is our overall approach around AI. We had a ton of debates internally about whether we should just use a third-party AI solution or develop our own. There was a ton of tension because you look at the advancements in the AI world, and you would think that this is a hard problem to solve with everything that’s happening.</p>

<p class="has-text-align-none">Now, it was really clear for me, given the opportunity and how transformative this is for the entire user experience, that we needed to own our destiny in terms of having a platform that allows us choice, that allows us to change foundation models as we wish and own the integration layer that allows us to power the entire car operating system.</p>

<p class="has-text-align-none"><strong>So, this is </strong><a href="https://www.theverge.com/transportation/928651/rivian-ai-voice-assistant-r1-r2"><strong>Rivian Assistant</strong></a><strong>. I&#8217;ve been playing with it for a few days now.</strong></p>

<p class="has-text-align-none">What do you think?</p>

<p class="has-text-align-none"><strong>I had some searching conversations with it, just to push the boundary of what it can do. It&#8217;s super interesting to have a car where even within the interface, it does the wavy line on the main screen. It&#8217;s very much that the car is running this assistant, not an overlay. You can tell that the assistant can go and address lots of parts of the car, and then there are places where it can&#8217;t or it won&#8217;t.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Actually, I think one of the most interesting things about it is that it won&#8217;t tell you why it can&#8217;t do things. It is insistent that it won&#8217;t tell you why it can&#8217;t do things. Don&#8217;t worry, I have very specific questions. But it strikes me that this is a natural evolution of, “Okay, the whole car is run by a finite set of computers, and that means our assistant can just run around and talk to those computers and the functions that those computers control.” I have a Cadillac EV. If you try to glue an assistant onto that, it has to go talk to its ECUs. It&#8217;s just very obvious that something else is happening with Google Assistant in that car. That&#8217;s the opportunity. The assistant can talk to the whole car. Then there are places where it just can&#8217;t for some reason. </strong></p>

<p class="has-text-align-none"><strong>I&#8217;ll give you one example. It struck me as very odd. I was driving in the rain, and I said, &#8220;Hey, turn on the back window wiper,&#8221; and it just won&#8217;t. I thought, &#8220;Is that a safety reason? Is that because you don&#8217;t know how to do it? You&#8217;re lost in the zonal architecture?&#8221; I asked it, and it said, &#8220;I can&#8217;t tell you why I can&#8217;t do these things, but here&#8217;s where the button is,&#8221; which is really interesting for a car assistant to do. I&#8217;m not going to do it for you, but the button is on the stalk. Push the button. How do you make those decisions in the context of an assistant to figure out what it can and cannot do?</strong></p>

<p class="has-text-align-none">So, there&#8217;s a lot of things here. First of all, I think you described it really, really well. Our philosophy for the Rivian Assistant was to not just put in a chatbot and then slap it on top of the UI. It&#8217;s also about developing what will become the connective tissue that enables our users to interact with pretty much every single feature in the car and, even more than that, to bring their own personal digital ecosystem in the car through agentic integration.</p>

<p class="has-text-align-none">Now, to your question about what it can do and cannot do, it&#8217;s obviously possible for us to control the wiper. I&#8217;m sure that you have seen that it can do way more. It can change your drive modes. It can change your ride height.</p>

<p class="has-text-align-none"><strong>I could raise and lower the car at 55 miles per hour with the air suspension, which was cool and like the slowest low-rider experience you could possibly have, and then I couldn&#8217;t turn on the wiper. So, what is the split there?</strong></p>

<p class="has-text-align-none">Honestly, that&#8217;s one of my favorite features. The way I like to interact with it is that I don&#8217;t tell it to change the ride height. I tell it, &#8220;Okay, give me a drive mode with more pep,&#8221; and then it does it and changes to sport mode. I mean, this is really the magic of that true conversational experience.</p>

<p class="has-text-align-none">Now, the reason it does not control the wiper is by design. We actually block a number of features that are safety-related. Cars are homologated and regulated. So, things related to wipers, windshield controls, highway assistance are regulated functions, which we block for safety reasons today through our framework. Safety is one of the core tenets in how we develop the entire experience.</p>

<p class="has-text-align-none"><strong>The other one that struck me is that your cars have rear-seat sensors. We have kids, so every time I get out of my car, it reminds me there might be a kid in the back seat because it has sensed the weight. I think this is one of the funniest sensors any car can have because the car seat is always in the back seat. So, it&#8217;s always reminding me that the kid might be in the car.</strong></p>

<p class="has-text-align-none"><strong>So I asked, &#8220;Is anyone in the back seat?&#8221; Maybe this is just a bug, but it said, &#8220;I&#8217;ll find out,&#8221; and then it said, &#8220;I can&#8217;t access that sensor.&#8221; I said, &#8220;What sensor are you trying to access?&#8221; And it refused. I probably had a five-minute argument with your assistant about why it wouldn&#8217;t tell me what sensor it was trying to access.</strong></p>

<p class="has-text-align-none"><strong>The reason I&#8217;m asking this is not because it&#8217;s a bug or I really needed to know if anyone was in the car seat at the time. I&#8217;m just curious. You think about building the assistant that can access all of the sensors and the architecture and how that might work and how we might interact with cars. There&#8217;s a moment where you realize maybe it&#8217;s for safety reasons or maybe it just won&#8217;t work right now with the version you have because the LLM has to go talk to another computer and that computer has to give it permission. I don&#8217;t know if anyone in any part of the tech industry has figured out exactly how that should work, and I&#8217;m just wondering what your point of view is.</strong></p>

<p class="has-text-align-none">I think in this specific case, it should have actually told you what&#8217;s in the back seat. So, that&#8217;s a bug. That&#8217;s on me.</p>

<p class="has-text-align-none"><strong>No, it was like, &#8220;I&#8217;m not telling you what sensor I&#8217;m trying to use.&#8221; I was like, &#8220;Why?&#8221; and it was like, &#8220;I&#8217;m not going to tell you what sensor I&#8217;m trying to get to.&#8221;</strong></p>

<p class="has-text-align-none">Yeah, that one is on me. I think the beauty here is that we have the team in-house. We&#8217;ll be able to calibrate that answer, and then we&#8217;ll fix it. Don&#8217;t worry. Nilay, I&#8217;ll send you an OTA next time when that’s fixed.&nbsp;</p>

<p class="has-text-align-none"><strong>That&#8217;s very good. Every time we get a car executive on the show, I just complain about the experiences I have. It&#8217;s perfect.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>But every assistant at every level is running into that specific barrier concerning how you talk to the computer and what permission does that other computer give you. Every assistant at every level is running into that specific barrier, and I&#8217;m just curious what you think the answer is.</strong></p>

<p class="has-text-align-none">Think about our architecture this way. The assistant has deep integration into the entire vehicle operating system. So, in theory, unless we have a bug like the one that you experienced, , you should be able to do everything with the integrations that we have built.</p>

<p class="has-text-align-none">The only functions that are not allowed are functions that are safety-related, obviously because of the homologation reasons. But also there are functions where we are not comfortable with the level of reliability we can get from the LLMs to expose them to the end users. But that&#8217;s really the beauty of the internal, in-house orchestration layer that we have built where we have a ton of guardrails that allow us to control which functions are exposed by the assistant or not.</p>

<p class="has-text-align-none"><strong>All right. You mentioned that I was going to get you in trouble. I&#8217;m going to get you in trouble again. In 2024, you said </strong><a href="https://techcrunch.com/2024/10/30/rivians-chief-software-officer-says-in-car-buttons-are-an-anomaly/"><strong>using buttons in a car is an anomaly of modern design. </strong></a><strong>People love buttons in their cars, so you got in trouble for saying that, but the thing you said was that voice should be the future. This is the first gesture at voice being the future. Is it good enough? Because we&#8217;re right on the cusp of whether these things are actually good enough to build the kinds of products people want.</strong></p>

<p class="has-text-align-none">I think we are on the cusp of something really big. When you think about it, you&#8217;re in a car, you&#8217;re driving, you&#8217;re focused on the road. So, in theory, the primary interface with which you should be interacting with the car is actually voice. The only reason that drivers and consumers do not interact with the car through voice is that, to put it really bluntly, the technology has been broken. That&#8217;s really the beauty of what we have now with the technology disruption coming with foundational models.&nbsp;</p>

<p class="has-text-align-none">The foundational models are providing us this wonderful opportunity to truly have a conversational experience where drivers can interact with the car in human language. I don&#8217;t need to tell the car, &#8220;Open the frunk.&#8221; I can say, &#8220;Open the front trunk.&#8221; Actually, I can say, &#8220;I have a bag in front of the car,&#8221; and it will actually open the frunk. I think that completely changes the way you interact with the car.</p>

<p class="has-text-align-none">On top of that, we now have the opportunity with all the agentic framework to truly give people their time back in the car. I hope you tried our Google Calendar agentic integration. You can imagine how the experience will be in the future where you&#8217;re driving and can perform operations on your calendar. You should be able to perform operations on your email. In the future with the agent-to-agent integration, you can actually interact with many more apps from your own digital ecosystem.</p>

<p class="has-text-align-none"><strong>Can I ask you about the word agentic in this context? To just describe it quickly for people, the way the Google Calendar integration works with Rivian Assistant is that it shows you a QR code. You connect your Google Calendar to it and then Rivian Assistant can read your calendar, add events, remove events, and do other calendar stuff.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>I&#8217;m curious how that&#8217;s agentic and how it&#8217;s built such that the word agentic is meaningful because I&#8217;ve had like 500 apps over the past 10 years that can do Google Calendar stuff through the standard API. So, how is it agentic? Is it powered by MCP? Is it something else? Why build it that way versus doing a bunch of API integrations?</strong></p>

<p class="has-text-align-none">I mean, you can build it with an API integration. I think the advantage of an agentic integration is that you can share the context, and then you can perform multiple integrations within the car. In this case, it is based on an MCP integration.&nbsp;</p>

<p class="has-text-align-none">You can imagine that in the future, instead of having that mono access to every single app on your car — or honestly, even on your smartphone — you can start aggregating and connecting many of those apps through the agentic framework and have them present a unified user experience.&nbsp;</p>

<p class="has-text-align-none">This is how we&#8217;re able to connect the navigation to Google Calendar, for example. I can go to the assistant now and say, &#8220;I want to plan a trip from San Francisco to San Diego, and I want to have two charging stops. I want them to be close to an Italian restaurant. I love Italian food.&#8221; The assistant would go and play that, and then I&#8217;ll say, &#8220;Okay, print the summary, add it to my calendar, and then send it as a text to my wife.&#8221;</p>

<p class="has-text-align-none">When you have a behind-the-scenes agentic framework, this type of integration can really allow many more capabilities.&nbsp; This is where agentic can be utilized even further. You can start going into more autonomous functions. Let&#8217;s say you have an invitation in the calendar with XYZ details. You can start having reminders that say, &#8220;Do you want to go to this place?&#8221; &#8220;You&#8217;re actually really late to your meeting. Do you want me to start preconditioning your car?&#8221; So, that&#8217;s the beauty of bringing in the depth of that agentic integration.</p>

<p class="has-text-align-none"><strong>I think I understand that. Rivian Assistant is in the car. It can access a bunch of apps and services you have. You can take actions across them. You&#8217;ve collected a lot of data in one place.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>This brings me to a very deep existential question I have whenever anyone talks about ambient computing this way: Where does the logic live? The idea that you&#8217;re going to have that interaction in your car and not at your laptop or on your phone seems like a big jump to me. It was the same way when the smart speaker companies would be like, &#8220;You&#8217;re going to talk to your thermostat,&#8221; and would I think, &#8220;Why?&#8221; I&#8217;m going to talk to my phone. I don&#8217;t feel the need to talk to my thermostat in this way.</strong></p>

<p class="has-text-align-none"><strong>Do you think people are going to do that in the car, or are you going to bring your assistant to the Rivian app on a phone? Can you compete with Apple’s Siri and Google Assistant in that way? How is that all going to work?</strong></p>

<p class="has-text-align-none">Actually, the way I think about it is that it will be both. This is the big difference between the old world where we had unique applications and the new world where we have agentic integrations.&nbsp;</p>

<p class="has-text-align-none">I think about Rivian Assistant as an agent orchestrator that has privileges because it can deeply integrate with the vehicle controls and the vehicle operating system. It understands safety. It understands which things to do and which things not to do. Nobody else can develop that better than us because we develop the entire vehicle software. But at the same time, it has interfaces and connections to other agents.&nbsp;</p>

<p class="has-text-align-none">This is just the beginning. In the future, you can probably bring your own favorite assistant and chatbot to the car, and then it can share context with Rivian Assistant. I mean, these are the possibilities that this new world and this new type of integration are allowing us to do.</p>

<p class="has-text-align-none"><strong>Is Rivian Assistant the kind of thing that is possible because of the RV Tech software stack? Is it possible that we&#8217;ll see Rivian Assistant or something just like it in Volkswagens as well, or is this special to Rivian?</strong></p>

<p class="has-text-align-none">This is special to Rivian. This is an AI stack that is developed uniquely for Rivian. This is Rivian&#8217;s brand priority as we see cars becoming more and more AI-defined. But we&#8217;re in discussions so that we can have similar technologies for the Volkswagen Group.</p>

<p class="has-text-align-none"><strong>Rivian cars famously use LTE. When I first got in this car, I saw the LTE indicator, and I thought, &#8220;Oh, something must be wrong.&#8221; I drove around, and then I realized, &#8220;Oh, it&#8217;s just LTE.&#8221; Are there any latency concerns with that, especially with voice and going out in the world and doing whatever inference you need to do?</strong></p>

<p class="has-text-align-none">[<em>Laughs</em>] So, two things, Nilay. One, we need to get you an R2. The R2 has 5G.</p>

<p class="has-text-align-none"><strong>There you go.</strong></p>

<p class="has-text-align-none">It&#8217;s coming soon, and it&#8217;s amazing. And two, I think you really touched on one of the architecture considerations for the technology, which is that when you look at vehicles like the Rivian R1 today, most of the interactions will happen with the cloud. So, as you say, it&#8217;s connectivity dependent. so they will work best when there&#8217;s strong connectivity with the external world. Now, there&#8217;s a number of interactions that happen locally with the car. If you tell the car, &#8220;I am cold,&#8221; that interaction is being managed by a small language model that sits directly on the edge.</p>

<p class="has-text-align-none">The beauty of what will happen next as we get to the R2 is not only the 5G but also edge AI will be way more powerful and capable.&nbsp;</p>

<p class="has-text-align-none"><strong>Just to be clear for the audience, when you say &#8220;edge,&#8221; you mean local, right? It&#8217;s running locally.</strong></p>

<p class="has-text-align-none">Yeah, local, meaning that the local computer on the R2 will have up to 200 sparse TOPS (trillions of operations per second) of compute dedicated to AI. I know this sounds extremely technical, but think about it as more capable than some of the self-driving platforms today. It&#8217;s more capable than the AI compute that you have in your smartphone.</p>

<p class="has-text-align-none">All of that will be available locally in the R2 car, which is coming soon. That allows it, as you mentioned, to not face these connectivity limitations and issues and to get to much lower latency because a lot of the processing will happen directly on the embedded system so you can get a conversational experience that&#8217;s pretty much instantaneous.</p>

<p class="has-text-align-none"><strong>Can I just ask you a very in-the-weeds question? We&#8217;re talking about putting compute in the car. We&#8217;re going to do some amount of local inference in the car. GPUs are expensive. RAM is expensive. How much of the bill of materials is RJ giving you to do all this in the car versus, I don&#8217;t know, bigger motors or bigger batteries? How much of the range can you pull off to do local inference in the car? This is the trade-off you&#8217;re talking about.</strong></p>

<p class="has-text-align-none">This is what I love about RJ. What has always attracted me to RJ is that he thinks about big things in the long-term. He knows, in this case, that the world is moving to AI. This is why decision-making from a bill-of-material standpoint is a very hard process with a ton of trade-offs all the time. You can imagine the tension between people wanting to push for a better exterior part, people wanting to push for a better interior part, and people wanting better technology. Then, we have what we call the&#8221;differentiation budget&#8221; in the car.&nbsp;</p>

<p class="has-text-align-none">For RJ, there was absolutely no debate on whether we would equip the car with higher inference compute and more memory because this is really the future. It&#8217;s an opportunity for us to completely reshape the way people interact with their cars. To be honest, it solves itself in the long run from a unit economic standpoint because as we do more and more interactions locally in the car, we avoid the back and forth with the cloud. So, we avoid the connectivity costs, and then we also don&#8217;t have to pay for the cloud inference costs. So, in the long run, it&#8217;s actually economically positive.</p>

<p class="has-text-align-none"><strong>That&#8217;s not just a spreadsheet you made up to win an argument that actually models out?</strong></p>

<p class="has-text-align-none">[<em>Laughs</em>] Kind of.</p>

<p class="has-text-align-none"><strong>The reason I ask it is because my next question was about inference costs. They&#8217;re going up. There are rate limits with all the big providers. What model are you using right now? What are the frontier models you&#8217;re using right now?</strong></p>

<p class="has-text-align-none">The architecture that we have built is not actually model dependent. One of the architecture&#8217;s foundations allows us to interact and plug-and-play with different foundational models. Similarly, it can use different modalities in how users can input their requests, whether it&#8217;s voice or vision. It can use text if we want to enable that.</p>

<p class="has-text-align-none">When it comes to the models themselves, we currently use a combination of internal models for everything that runs locally on the edge and models from Google. We have a partnership with Google. Things are going really well in terms of deep access to advanced Gemini models as well as the grounding of results also powered by Google.</p>

<p class="has-text-align-none"><strong>This is another question I asked Rivian Assistant: what are the top five headlines on </strong><strong><em>The Verge</em></strong><strong>? I just wanted to see if this thing browses the web. It returned some results that I think are 24 or 48 hours old. These were the top five headlines from yesterday.</strong></p>

<p class="has-text-align-none"><strong>Does this thing have a web browser in the background, or is it just pulling from a Google data corpus? How does that work?</strong></p>

<p class="has-text-align-none">In theory, it should in theory connect in real-time. This is where the grounding with Google results comes into the picture. It should give you the latest headlines. So, if it didn&#8217;t, then that&#8217;s another one on me.</p>

<p class="has-text-align-none"><strong>Well, I was just curious. Lots of people are having this experience now where the data in the model is old and there&#8217;s some cutoff, and I was just trying to find the cutoff. Then, I had a long searching conversation with it. We need to buy a new air conditioner, and I was just asking it to do math about air conditioner efficiency. It&#8217;s very boring, but this is what I talked to your car about for a while. It occurred to me that I was making it think very hard. I am wasting more energy asking how efficient an air conditioner I should buy. This is not a good ratio of energy spent to energy saved over there.</strong></p>

<p class="has-text-align-none"><strong>How does that work? You have to pay a monthly fee for the connectivity package to access Rivian Assistant, but then I might burn way more tokens than that fee could ever pay for. How does that math work out?</strong></p>

<p class="has-text-align-none">It really depends.&nbsp; In these cases, there are all sorts of what we call &#8220;rate-limiting&#8221; techniques that we can apply. If we have seen, like in your case, that you&#8217;re spending 20 hours discussing with the assistant, then we may do something behind the scenes.</p>

<p class="has-text-align-none">It&#8217;s similar in the way we can configure the models. Given the types of interactions that you have in the car, you would not be interacting with the latest and greatest, say, Claude Opus 4.7 models so you&#8217;ll burn a lot of tokens. A lot of it also depends on aggregation across users in terms of the types of requests, as well as the arbitration we do between the edge and the cloud. As I mentioned, the more we move to edge and local compute, the better it is for us in terms of overall inference costs.</p>

<p class="has-text-align-none"><strong>So, let me just ask you this question again. Now that you&#8217;ve shipped this software, people are using it. You&#8217;re getting extremely detailed feedback from me. Do you still think having buttons in the car is an anomaly?</strong></p>

<p class="has-text-align-none">I deeply believe that voice has the chance to be the primary interface in the car. I also think that buttons can exist, but they shouldn&#8217;t be the primary way with which you interact with the car. I think there&#8217;s more that is possible with voice since you can do more than one single function.</p>

<p class="has-text-align-none">You don&#8217;t have to fiddle with so many functions. You don&#8217;t have to go deep into the touchscreen to look into specific features. A great voice experience can elevate all of that, allow users to talk to the car as a human would and really take the overall experience to the next level.</p>

<p class="has-text-align-none"><strong>Are we going to get the HVAC buttons back in any future Rivians? That&#8217;s really what I&#8217;m asking here.</strong></p>

<p class="has-text-align-none">Actually, with the R2, we have a great way to add tactile feedback for HVAC.</p>

<p class="has-text-align-none"><strong>Oh, the big paddles on the wheel?</strong></p>

<p class="has-text-align-none">Yeah. They&#8217;re really awesome.</p>

<p class="has-text-align-none"><strong>That&#8217;s a good pivot, but I&#8217;m asking, are we going to get the fan speed button back in the center stack?</strong></p>

<p class="has-text-align-none">Not in the center stack, but we have the same thing on the Haptic Halo Wheels. It&#8217;s a great compromise.</p>

<p class="has-text-align-none"><strong>You knew it was coming. I have to ask you about CarPlay here. It strikes me as you imagine this future where the car is connected to your calendar and it&#8217;s connected to all this context. It has autonomy, which is something you&#8217;re also working on. You get in the car, and it knows it&#8217;s time to go to work. You just say, &#8220;Let&#8217;s go,” and the car takes off driving.</strong></p>

<p class="has-text-align-none"><strong>This is when you would use a vast number of applications, right? This might be when you have to focus to push the buttons again. I&#8217;ll just make that argument. But this is when you would want a whole number of apps. I hear from our readers every time I talk to a car executive that, &#8220;The reason I want CarPlay is because there&#8217;s 5,000 apps on my phone and no car OEM is ever going to support them in the built-in infotainment.&#8221;</strong></p>

<p class="has-text-align-none"><strong>This is when you would say, &#8220;Okay, project your phone to the center stack. The car&#8217;s driving itself. Have at it. Phone projection all day.&#8221; Do you think the tide is turning, or are you still absolutely committed to not having CarPlay in Rivian vehicles?</strong></p>

<p class="has-text-align-none">First of all, it&#8217;s really important to go through the philosophy of how we see software in the car and the user interface. The challenge with screen mirroring solutions is that they take over every single pixel in the car, and that&#8217;s not the way we see ourselves interacting with our users. You drove our car four years ago, and you drove another car over the past few days. I hope you’ve seen how much has changed in the car. It&#8217;s truly been by bringing in end-to-end features, not only changing the user interface but having your navigation know exactly about your drive mode, know exactly about your efficiency.&nbsp;</p>

<p class="has-text-align-none">Offering that level of convenience is what is really resonating with a lot of our customers. If I look at our own internal statistics from five years ago when we first shipped the R1T and the R1S, the number one request from customers was CarPlay. We did all sorts of surveys with customers at the time, and more than 70 percent of customers were requesting CarPlay. In the recent survey, that number is less than 25 percent because with the level of features that we have shipped to customers, level of end-to-end integration, and the level of convenience that we are bringing, CarPlay or Android Auto is no longer the topic of discussion.</p>

<p class="has-text-align-none">What we&#8217;re seeing right now with the advancement of AI technologies is just another reason why I deeply believe that RJ and Rivian made the right choice by investing into our own technology and software. Cars are moving from, as you said, the buzzword “software-defined” to “AI-defined.” The possibilities now for such deep AI integration in the car make the entire CarPlay debate completely obsolete.</p>

<p class="has-text-align-none">I really believe that the way you interact with apps — which are mono-threaded with single buttons or single icons — will be completely reshaped into a world where an agentic integration presents itself as a wholesome user experience.</p>

<p class="has-text-align-none"><strong>I buy that in the big picture, but give me an example of that. I&#8217;ll put up an idea that I get from our readers all the time for you to react to. There are tons of little apps. They&#8217;re basically media-playing apps on phones, and it&#8217;s trivial to push the button for the CarPlay app.</strong></p>

<p class="has-text-align-none"><strong>The one that I always think about is an email from a reader who said, &#8220;I have a Bible app that is never going to be built into anyone&#8217;s infotainment system. It&#8217;s made by a small developer and I love it, and that&#8217;s why I need CarPlay. I&#8217;m always going to buy a car with CarPlay because of it.&#8221;</strong></p>

<p class="has-text-align-none"><strong>That is about as small of an edge case as you get, but this one customer is going to pick a car based on it. Are you going to make that developer build an agentic AI integration into the Rivian Assistant, or are you just going to lose that customer to CarPlay?</strong></p>

<p class="has-text-align-none">I mean, this is the beauty of the technology disruption in which we live today. The answer in that case does not necessarily need to be, &#8220;We will build an agentic integration for that particular app.&#8221; It can absolutely be if it is, say, Spotify or Apple Music.</p>

<p class="has-text-align-none">But if it&#8217;s a small app, the answer could be that we have an integration for your favorite voice assistant in the car, and then you can ask the voice assistant to play that particular app through Bluetooth audio. That is possible as we open up the framework and allow more integrations to bring your own digital ecosystem to the car.</p>

<p class="has-text-align-none"><strong>We&#8217;ll use Google because Gemini is more present on an Android phone than Siri is currently on an iPhone. It&#8217;s also your partner. You&#8217;re saying you can talk to Rivian Assistant and it knows your Google account and Android phone, it&#8217;s going to go talk to Gemini, and Gemini is going to go operate your phone and stream Bluetooth audio to Rivian Assistant.</strong></p>

<p class="has-text-align-none">In the future, all of that is possible.</p>

<p class="has-text-align-none"><strong>Is that better or worse than phone projection? This is a different kind of loop than just saying, &#8220;Put the interface here and let the user do it.&#8221;</strong></p>

<p class="has-text-align-none">It could be possible through phone projection. I think the challenge with phone projection is that&#8230; First of all, as you&#8217;re driving, you&#8217;ll have to go through your phone. In some cases, you&#8217;ll have to press multiple buttons so you can get to the app menu. The other thing is that it takes over the entire screen, and that is a degradation of the experience.</p>

<p class="has-text-align-none">Is the alternative solution available right now? No, but I think the beauty of this wave of technology is that we finally have the building blocks to really redefine those types of interactions. We can allow hooks now into your personal device through a different interaction rather than truly integrating the app end-to-end&nbsp; the car itself or taking over the entire screen. There&#8217;s a third path now that is possible.</p>

<p class="has-text-align-none"><strong>Obviously I think it might be easier with Google. Again, it&#8217;s your partner, but where would that connection to Google Assistant happen? I don&#8217;t think I&#8217;m holding up my Android phone to the speaker and letting the assistants talk to each other out loud. Although that would be fun. It would be deeply hilarious to hear the two assistants just have a conversation like, &#8220;Can you please play the music app for me?&#8221;&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Does that happen in the cloud? Does it happen locally? Where does that integration point between assistants happen?</strong></p>

<p class="has-text-align-none">Think about it as the assistant in the car knowing how to talk to your Gemini or your personal assistant. In that case, your personal assistant will be controlling your phone.</p>

<p class="has-text-align-none"><strong>The reason I&#8217;m asking this in this way is because at some point, you have one main assistant, all the other things are agents it can talk to, and then maybe no one talks to Rivian Assistant again. You pull that thread all the way and Gemini just does everything for you all the time. Is that a danger, or are we just nowhere close to even having to worry about that?</strong></p>

<p class="has-text-align-none">Honestly, we don&#8217;t worry about that because we know the opportunity that we have, and we know the breadth of capabilities that we can offer. No other assistant will be able to know as much as Rivian Assistant about the car controls. None.</p>

<p class="has-text-align-none">Similarly, the fact that we have the surface of integration sitting in our own operating system enables a ton of opportunities that you simply cannot do with your phone or by calling another assistant. Imagine that you’re driving, and in the near future, we enable the technology to have agentic integration with your favorite food delivery. The car knows exactly when you will be home. You&#8217;ll say, &#8220;Order my favorite sandwich from XYZ shop.&#8221; Your account is already configured. Then, the assistant will pick the destination and get you to your favorite restaurant. All of that is integrated. You just need to do it through a voice command.&nbsp;</p>

<p class="has-text-align-none">Those types of experiences — where things become so seamless and so easy as if you&#8217;re talking to a human, where it connects the dots across multiple surfaces of your digital ecosystem — would only be possible through such integrations.</p>

<p class="has-text-align-none"><strong>Wassym, we&#8217;re out of time here. As you can tell, I can obviously talk to you about this forever. I don&#8217;t think anyone has figured out how all this works, and it seems like you&#8217;re making some big decisions. So, you&#8217;re going to have to come back when you&#8217;ve learned how this goes after this is shipped to all of your customers and certainly when the R2 is out.</strong></p>

<p class="has-text-align-none"><strong>There is one question that I have to ask every single Rivian person that I encounter. It is very important to me. When is the R3X coming out?</strong></p>

<p class="has-text-align-none">It&#8217;s here. Do you see it? [<em>Laughs</em>]</p>

<p class="has-text-align-none"><strong>When can I get one?</strong></p>

<p class="has-text-align-none">By the way, it&#8217;s my favorite car. I ask RJ that question all the time. Now, you talked about decisions. You talked about trade-offs. Us delivering the R2 before the R3X is, as you can imagine, a big decision. It&#8217;s also a hard decision because in our hearts, we all deeply want to have the R3X as soon as possible.</p>

<p class="has-text-align-none">We also know that the R2 has the best ingredients to be a wildly successful car. The US needs another great alternative SUV for families, and this is what the R2 will bring. As we ship the R2, as we scale our volume as a company, we will earn the right to bring fantastic and emotional cars like the R3X.</p>

<p class="has-text-align-none"><strong>I know that that is, in one way, the right answer. I&#8217;m just saying for me personally, come on, just send me one. It&#8217;ll be great.</strong></p>

<p class="has-text-align-none">That&#8217;s the hard thing.&nbsp;</p>

<p class="has-text-align-none"><strong>I&#8217;ll give you more feedback just like this. I will break your R3X prototype in 10,000 different ways. You&#8217;ll get the bug reports. It&#8217;ll be great. Tell RJ I made the offer.</strong></p>

<p class="has-text-align-none">Awesome. I&#8217;ll get one at the same time as you Nilay.</p>

<p class="has-text-align-none"><strong>Sounds good. Wassym, thank you so much for being on </strong><strong><em>Decoder</em></strong><strong>. That was great.</strong></p>

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

<p class="has-text-align-none"><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[Sundar Pichai on AI, the future of search, and what’s happening to the web]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/podcast/936445/sundar-pichai-ai-search-google-zero-youtube-web" />
			<id>https://www.theverge.com/?p=936445</id>
			<updated>2026-06-02T09:48:59-04:00</updated>
			<published>2026-05-26T10:00:00-04:00</published>
			<category scheme="https://www.theverge.com" term="AI" /><category scheme="https://www.theverge.com" term="Decoder" /><category scheme="https://www.theverge.com" term="Google" /><category scheme="https://www.theverge.com" term="Google I/O 2026" /><category scheme="https://www.theverge.com" term="Podcasts" /><category scheme="https://www.theverge.com" term="Tech" /><category scheme="https://www.theverge.com" term="Web" />
							<summary type="html"><![CDATA[Today, I’m talking with Google and Alphabet CEO Sundar Pichai, in a conversation we recorded just after the Google I/O developer conference. This is the fifth year Sundar and I have sat down after I/O, and it’s become one of my favorite Decoder traditions. There’s always a lot of news at I/O, and this year [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">Today, I’m talking with Google and Alphabet CEO Sundar Pichai, in a conversation we recorded just after the Google I/O developer conference. This is the fifth year Sundar and I have sat down after I/O, and it’s become one of my favorite <em>Decoder </em>traditions.</p>

<p class="has-text-align-none">There’s always a lot of news at I/O, and <a href="https://www.theverge.com/tech/932454/google-io-2026-news-announcements#dmcyOnBvc3Q6OTMzNDE1">this year was no exception</a> — Google has powerful new Gemini models, it’s putting AI agents in everything, and it’s making huge changes to Search on both the web and YouTube that will once again reshape the information ecosystem.</p>

<p class="has-text-align-none">That’s a lot to talk about, and Sundar and I got into all of it. But I also realized it’s been a long time since I’d asked Sundar the <em>Decoder</em> questions about structure and decision making, so I started there. You’ll hear Sundar say he realized he needed to rethink how Google worked a few years ago in response to ChatGPT, and he made a lot of executive changes and big decisions to get the company in a more aggressive posture.</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&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p><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="has-text-align-none">Of course, we also talked about all those search changes, and how it seems obvious that the real future of Google Search is bringing things like the new intelligent search box together with <a href="https://www.theverge.com/tech/932996/google-gemini-spark-antigravity-io-2026">the company’s new Gemini Spark agent platform</a>. That way, searches can set off tasks, not just deliver results. That’s exciting, but it seems likely to yet again change the dynamics of the open web.&nbsp;</p>

<p class="has-text-align-none">If you’re a <em>Decoder</em> listener, you’ll know that I coined the term <a href="https://www.theverge.com/24167865/google-zero-search-crash-housefresh-ai-overviews-traffic-data-audience">Google Zero</a> a few years ago — that’s the idea that Google traffic to websites would fall to zero as the company answered more and more queries directly on the search results page. That’s gone from an idea Sundar batted away in previous interviews to something the entire media industry is grappling with. Even the <a href="https://www.searchenginejournal.com/conde-nast-ceo-plan-as-if-search-traffic-will-be-zero/574786/">CEOs of major publishers like Condé Nast</a> are now publicly saying they’re planning for a world of zero search traffic from now on.</p>

<p class="has-text-align-none">Google is also training its models on YouTube videos, and changing YouTube search to summarize and index videos so you get dropped right into the relevant parts. That’s sure to cause some creator angst, so I asked Sundar if he’s ready to fight the same battles with YouTubers as he currently is with publishers.</p>

<p class="has-text-align-none">Finally, I asked Sundar about Google DeepMind CEO Demis Hassabis <a href="https://www.theverge.com/tech/934260/google-io-ai-singularity-demis-hassabis">ending the I/O keynote</a> by saying we’re “in the foothills of the singularity.” It’s no surprise that Sundar agrees with Demis, but his thoughts on the timeline to AGI are worth paying attention to.</p>

<p class="has-text-align-none">Like I said, it’s one of my favorite episodes to do every year, because Sundar is always game to actually take the questions — and even look at search results on my phone with me. I think you’re really going to like this year’s conversation.</p>

<p class="has-text-align-none">Okay: Sundar Pichai, CEO of Alphabet and Google. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP7196104544" width="100%"></iframe>

<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="has-text-align-none"><strong>Sundar Pichai, you&#8217;re the CEO of Alphabet and of Google. Welcome back to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">It&#8217;s great to be here. Nice to see you again, Nilay.</p>

<p class="has-text-align-none"><strong>This is one of my favorite yearly conversations. I think we&#8217;ve done it at I/O now five times.</strong></p>

<p class="has-text-align-none">Wow. I didn&#8217;t quite realize it&#8217;s been five times, but I enjoy it. Thanks again.</p>

<p class="has-text-align-none"><strong>I want to start with a little bit of a lightning round. I was thinking about this. We&#8217;ve talked a lot. We always get deep into the weeds of the web and search and big, heady ideas, and I realize I have not asked you the <em>Decoder </em>questions in quite some time.</strong></p>

<p class="has-text-align-none"><strong>I was just looking back at our previous conversations, and at Google itself, and you&#8217;ve made quite a lot of changes to Google. I think a number of your direct reports have changed over time. You&#8217;ve obviously restructured DeepMind, platforms and devices, and Android. Tell me how Google is structured right now.</strong></p>

<p class="has-text-align-none">Okay. It is Google and Alphabet. Obviously we have Alphabet as well, but broadly I think about it as there are three main businesses in Google: Search, YouTube, and Google Cloud. There are enormous platforms we run, which is Android, Chrome, and the whole area to do with it. And powering it all is all these important technology areas, which is AI and our infrastructure work. And then you have the functions to go with it.</p>

<p class="has-text-align-none">But at a high level, you can think of it as Search, YouTube, Google Cloud, and then our big computing platforms. Those are the main groups, and obviously powered by Google DeepMind and our infrastructure teams. That&#8217;s one simple way to get a mental model around it. And of course, we have other bets beyond that, Waymo being the most prominent of them all, but there are many, many other bets, like Isomorphic Labs and so on.</p>

<p class="has-text-align-none"><strong>I want to stay focused on the Google of it. I feel like we could do an entire hour on Alphabet and how that&#8217;s structured and how that works as a public company with many bets. But just to stay focused on Google for one second, the knock on Google historically is this is a company that ships lots and lots of products. You can&#8217;t sell lots of products. There&#8217;s not tons of focus. There are thousands of names of different products that are overlapping in different ways.</strong></p>

<p class="has-text-align-none"><strong>Where that comes from, at least in my view, is that you do have these big infrastructure bets. You have all these capabilities, and the people running the businesses can use those capabilities to spin up products. And there&#8217;s maybe not a lot of overlap or central planning like, “Did we launch two of the same thing?” How do you resolve that tension? It does seem like Google has gotten a little more focused, but that is the company&#8217;s culture: “We&#8217;re going to make a lot of bets and see which ones work.” How does that resolve for you?</strong></p>

<p class="has-text-align-none">There&#8217;s a lot of intent in what we do too. I think it&#8217;s not an accident we have 13 products with a billion users each, and we&#8217;ve been committed to those products longer term. You can go back and think about when Gmail launched or Maps launched or Google Docs launched or Search launched or Chrome launched. We&#8217;ve been deep and consistent in many, many areas over a long period of time as well.</p>

<p class="has-text-align-none">One way I&#8217;ve internalized it in the AI moment is for the first time, we have such a common infrastructure powering all of them with our Gemini models and the underlying AI infrastructure. So we are more able to, with intent, do things which cut across things. Personal intelligence is a great example of it. It&#8217;s one effort. Users get a choice to turn it on in each of the products, but it&#8217;s built with one common infrastructure so that it works consistently across our products.</p>

<p class="has-text-align-none">The underlying Gemini model itself is an example of it. We are able to bring that model in the context of the products, <a href="https://www.theverge.com/tech/893262/google-maps-gemini-ai-ask-maps-immersive-navigation">like Ask Maps in the context of the Maps product</a>. But a lot of the technology powering it —&nbsp; the voice tech, the model, the intelligence — is all one work, which is why I think the AI moment offers us a new way to think about it, and not just across Google, but across Alphabet too over time. What makes this moment so uniquely powerful is that you can invest so much in R&amp;D and infrastructure and develop a technology, which then you can apply across all these areas, obviously in a context in which they are useful for users, but the underlying technology platform is common. There&#8217;s a lot of intent that way and so on.</p>

<p class="has-text-align-none">You have to give room for innovation, so allowing room for innovation where teams on the margin are able to ship some new features. Sometimes you later work to harmonize them. Take NotebookLM. Notebooks are now showing up in Gemini, and it&#8217;s effectively projects as Notebooks. And you can create a Notebook in Gemini, you can go to NotebookLM, you will see the same Notebooks, vice-versa. So that&#8217;s an example of where you innovate it first, and then you&#8217;re harmonizing later.&nbsp;</p>

<p class="has-text-align-none"><strong>I was watching </strong><a href="https://www.theverge.com/tech/932275/google-io-2026-live-blog-on-the-ground-at-googles-keynote"><strong>the keynote</strong></a><strong> yesterday and I saw a lot of intent and confidence from Google: “We have this core technology. We can express it in lots of ways. It&#8217;s still essentially Google-y.” There are lots of products, lots of Gemini words. I&#8217;m going to figure them all out, I promise.</strong></p>

<p class="has-text-align-none"><strong>I would contrast that with… I don&#8217;t know, three, four years ago when there was the ChatGPT moment, everyone worried about what Google would do. Could OpenAI show up and take your market share in search away? Between that and now, you have changed Google. You have restructured it. There are new people in leadership roles. Connect those dots for me. How did you think about, “I need to actually change how the company works,” with the competitive moment you were in that got you here?</strong></p>

<p class="has-text-align-none">That&#8217;s a great question. I always internalize that moment. It was tough to convey it outside, but I pivoted the company to be AI-first. We had all the ingredients, so in some ways I felt like the Overton window had changed. People were adopting these technologies faster than we had expected. To me it was a way to go and actually express ourselves through our products, but I realized we had to organize ourselves for it. And going back to my earlier point, I realized we need a core model and a core infrastructure team to power everything we are doing across Google. A lot of my initial energy was to go set that up.</p>

<p class="has-text-align-none">To get one AI team, we had world-class research teams in Brain and DeepMind and brought those together as Google DeepMind, which was harder than it sounds because it&#8217;s like saying, “Go put Stanford and MIT together and create a department out of it or a university out of it.” So I think we’re doing that well. At that time I also set up with Amin Vahdat, who&#8217;s now our SVP of AI infrastructure, a centralized infrastructure team, which has paid great dividends. Another evolution was realizing we need a chief AI architect to architect this technology across Google, and Koray Kavukcuoglu took on that role as well. Those were important changes.</p>

<p class="has-text-align-none">Search needed to move faster, and Search was split across many leaders, so we put it under Elizabeth Reid, with Nick Fox being responsible for the overall area, Josh Woodward coming to help with our Labs product and working on Gemini later and driving innovation. I have other extraordinary leaders in the company as well, leaders like Philipp Schindler who runs all our operations and so on. So it is stepping back, and thinking end to end about the structure and making sure we are set up well for this moment where we need to move faster as a company, which means we need to make faster decisions.</p>

<p class="has-text-align-none">I set up these new product reviews once a week. They were AI product reviews, making sure we are intentional about how we apply this technology, where we apply it, and to review everything firsthand, that anything to do with AI, which we were shipping to users, went through that channel. I spent time directly with whoever was working on it.</p>

<p class="has-text-align-none"><strong>The other </strong><strong><em>Decoder </em></strong><strong>question I ask everybody is about decisions. You&#8217;re describing a lot of big decisions, some of them uncomfortable as you change people around. How do you make decisions? What&#8217;s your framework?</strong></p>

<p class="has-text-align-none">A big part of my framework is over time understanding that there are very, very few decisions which are really consequential, and most decisions aren&#8217;t. What matters much more is that you make the decision, because that&#8217;s what determines the velocity of an organization. The more you&#8217;re able to make those decisions and keep the company moving forward, you&#8217;re generally better off.</p>

<p class="has-text-align-none">Of course, there are a few decisions like combining and setting up Google DeepMind that are more consequential, and you want to take your time deliberating and doing it. But a lot of decision-making is about just making them. The more you&#8217;re able to do that, the more you do develop over time some pattern matching and you&#8217;ve seen a version of the problem before. So I think it&#8217;s good to rely on that and separate the signal from the noise so that the signal is that this is a really important decision and you want to really deliberate around it versus it may look big, but it is more a normal course of action you need to take.</p>

<p class="has-text-align-none"><strong>Looking around the industry, your peers in Big Tech have some of the wildest org chart ideas I&#8217;ve ever heard in my entire life. I think Meta wants to have <a href="https://fortune.com/2026/03/14/metas-ai-team-50-flat-management-structure/">50 engineers report to a single manager</a> with the power of agents. Jack Dorsey at Block wants <a href="https://www.businessinsider.com/jack-dorsey-all-6000-employees-reporting-ceo-middle-managers-2026-4">all 6,000 people to report to him</a>. Are you having similar thoughts that you should invent some of the craziest org charts with AI ever?</strong></p>

<p class="has-text-align-none">Leaders and people are incredibly important. And it depends. Some companies have a much narrower suite of products, and so different structures may work. When you&#8217;re running something at the scale of Google Cloud, it&#8217;s important that there is a CEO in charge. We are serving all the top enterprises in the world at a scale, and so how do you set up for that? Great leaders end up mattering a lot, like we have Thomas Kurian there. I do think about it.</p>

<p class="has-text-align-none">But what I do think about it is how we are using AI more effectively, and we&#8217;ve seen the transition internally, particularly amongst our developers where we have transitioned from using AI tools to assist coding to them, a portion of the engineers directing teams of agents effectively more and more. Those are transitions underway, and that will flow beyond just engineering into the rest of the organization. It&#8217;s already happening. Even the work we are doing in Gemini Spark is to put that superpower in the hands of consumers, and what you can do with these agentic workflows, et cetera.</p>

<p class="has-text-align-none">I&#8217;m more focused on making sure we are actually deploying that capability in a native way and that it&#8217;s working well, because for us it&#8217;s more than just making the company efficient because it&#8217;s the products we provide to others. I look at it with a very different lens. How we do it internally is what we are giving to users outside. We use Antigravity internally. That&#8217;s what we are providing outside. So the agents in Antigravity are what our developers are using, and so that&#8217;s what we are trying to put outside. It has that extra dimension to it.</p>

<p class="has-text-align-none"><strong>The number one question </strong><strong><em>Decoder </em></strong><strong>listeners want me to start asking CEOs&#8230; I&#8217;ll just ask it straightforwardly. How close is AI to replacing you as the CEO?</strong></p>

<p class="has-text-align-none">I just think the CEO job is not that complicated. There are aspects of it where I think it&#8217;s going to be very, very helpful in terms of decision-making. I joke around that — partially joke around — that I have to spend a lot of time allocating compute. And I&#8217;m like, &#8220;Well, that seems like the AI is going to make more rational choices over time,&#8221; because I deal with a lot of appeals and emotions as part of working through a process like that.</p>

<p class="has-text-align-none">Everywhere, what I see — which is maybe a bit different than how I think — is that done correctly, these tools are going to allow us to operate at the next level in everything we are doing. It&#8217;s not like you won&#8217;t do what you were doing before. You will start from a higher foundation. I wasn&#8217;t there when, I don&#8217;t know, spreadsheets rolled out to companies. I have to think back to how did people do all this financial analysis before? And I&#8217;m sure it changed over a period of three to four years fundamentally, and we got used to it.</p>

<p class="has-text-align-none">I think agents and so on are a version of it. It&#8217;s not like you&#8217;re not going to plan birthday parties. Let&#8217;s say you&#8217;re planning a trip somewhere. Maybe you&#8217;re actually spending your time thinking about the actual things you want to do with your time versus chasing opening times and how to get tickets and so on. It elevates everything to a different foundation is how I think about it.</p>

<p class="has-text-align-none"><strong>Let me ask you about that and agents. Some of those demos are fascinating. The idea that Search is going to build custom software for everybody seems like an idea in software engineering, a first impression. The idea is that you&#8217;re going to ask the computer a question, and the response will be for it to make you software that helps you get to an answer. I&#8217;m fascinated by this idea, but that is fundamentally changing Search.</strong></p>

<p class="has-text-align-none"><strong>And then you look at Gemini Spark, which is your agent platform in the cloud where you will say, &#8220;Go book me some tickets,&#8221; and Spark might run around and book you some tickets or do some task for you. And then there&#8217;s Antigravity, the agentic coding platform. Broadly, every year there&#8217;s a new paradigm for AI. There were LLMs first, and then maybe we&#8217;re going to chain some LLMs together, then there&#8217;s reasoning, and then now we&#8217;re at agents. Is this the foundation, or is there another paradigm shift to come?</strong></p>

<p class="has-text-align-none">It&#8217;s a great question. We are laying most of the building blocks in place. Fundamentally being able to reason, use tools, and code is a lot like having intelligence and reasoning — being able to plan, being able to look up things, use tools, and, if you need as part of that, to build something. You are laying all the primitives. Antigravity is for developers, but the Antigravity engine, the harness, is built into Gemini now. And Spark is just a mode of Gemini. Over time, it&#8217;s a feature. We are positioning it, but it&#8217;s just a tab within Gemini.</p>

<p class="has-text-align-none">So you&#8217;re bringing that agentic harness. Users don&#8217;t need to think about it. Developers will understand it. Over time, in Spark, they can code powerful things. But as users, you may be building something, creating something, planning a trip, and all that is working behind the scenes.</p>

<p class="has-text-align-none">We are laying a lot of the primitives of what we need for agents to work end to end, and more importantly, for AI to work. This long-running vision of Google Assistant we&#8217;ve all had and worked through myriad forms of it and failed to fully do it well, we are closer than ever before to delivering on that promise. We haven&#8217;t delivered it yet, but that&#8217;s the journey which I think is now closer than ever before.</p>

<p class="has-text-align-none"><strong>I look at all the products, and they do seem like they should converge. You have the new Intelligent Search box, and I definitely want to talk about Search in more detail. But you look at that search box and then you look at, say, Canvas which makes you the apps.</strong> <strong>You&#8217;re planning a wedding, and it&#8217;ll just make you an app to help you plan a trip or a wedding or something. And then you have Spark which can go off and do things. I looked at that and I was talking to people yesterday, and it just seems obvious that that should be one product.</strong></p>

<p class="has-text-align-none">It will. I gave the earlier Notebook example of like, you&#8217;re creating Notebooks&#8230; but what are Notebooks? You&#8217;re effectively putting all the context you want in one place and then working off it. It&#8217;s folders as they&#8217;ve always existed for people, and Notebook should be a consistent primitive across the Google products you use. I just view agents that way. It shouldn&#8217;t matter. When you&#8217;re at the earliest stage of innovation, you create the capability. Teams are experimenting with it, but for a user over time, if you fire off planning a trip, it should work across both places is how I would think about it. You&#8217;re right in that.</p>

<p class="has-text-align-none"><strong>There&#8217;s something very important about Google Search — it is a source of truth for people for however many years or even decades now. Go Google it, and you&#8217;ll get an answer, and that that answer is the same for you and me generally has been a very important idea. It is, I think, a fixture in the culture.</strong> <strong>Maybe Google is the last company saying it will just tell you the truth, out of all the companies out there.</strong></p>

<p class="has-text-align-none"><strong>Okay, but now we&#8217;re going to infinitely personalize the search box, and we&#8217;re going to infinitely personalize the Search experience. We&#8217;re all going to get different answers to queries. We&#8217;re all going to maybe even look at different interfaces depending on what we&#8217;re asking, what our personal context is, how much data Google has.</strong></p>

<p class="has-text-align-none"><strong>Do you think about that profoundly? How much can you destabilize the last common source of truth most people experience on the internet?</strong></p>

<p class="has-text-align-none">Look, there are factors well beyond our control, which is that people today have a wider variety of sources than ever before. People are getting content from so many different sources. But within the world of Google, I still think we deeply care about this being a source of knowledge and information. There are objective experiences and subjective experiences. What&#8217;s the capital of the USA? It&#8217;s not going to be custom-created for anyone. These are objective things. “Help me plan a nice trip to Montreal for a weekend” — naturally, the answers don&#8217;t need to be the same for everyone. There is a continuum there.</p>

<p class="has-text-align-none">We deeply care about it. For certain categories of information, we do still anchor around authoritative information to present as much of an objective view as possible. And if it is health-related queries, we naturally tend to show more authoritative answers than if you&#8217;re saying, &#8220;What&#8217;s better? Should I go buy?&#8221;</p>

<p class="has-text-align-none"><strong>Can I show you a search result?</strong></p>

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

<p class="has-text-align-none"><strong>A few years ago, I showed you a search result. I&#8217;ve been tracking this one for years.</strong></p>

<p class="has-text-align-none">I always love it. Amongst the 10 trillion queries&#8230;</p>

<p class="has-text-align-none"><strong>Yes. Well, this one&#8217;s a favorite.</strong></p>

<p class="has-text-align-none">We have a very scientific, statistical way of doing this.</p>

<p class="has-text-align-none"><strong>I think this is important, and I want to get into how consumers might be experiencing these products. So this is a search I just do all the time: “best Chromebook.” I&#8217;ll just show it to you. There it is.</strong></p>

<p class="has-text-align-none"><strong>So it starts with an AI overview. It just very confidently tells you the answer, and then there&#8217;s a bunch of sponsored boxes. And then the one that gets me is right below that, I believe the result is Reddit, and it has a top result in Reddit. It&#8217;s actually a different answer than the AI overview. And then there&#8217;s <em>The New York Times</em>, which has a different answer.</strong></p>

<p class="has-text-align-none">Y<strong>ou scroll this and you&#8217;re like, “The AI overview is telling me one thing, the first organic result is fairly down the page, and all of these are different answers.” I hear what you&#8217;re saying about objective results and subjective results. &#8220;What laptop should I buy,&#8221; is somewhere in the middle of those things. I&#8217;m just curious how you think that experience for consumers is today in AI Mode and where you think it should go.</strong></p>

<p class="has-text-align-none">Look, to be very clear, in the world of AIO, we use an AI mode. We are organizing and giving context, but there are sources throughout, so you&#8217;re still presenting organic content in a different way. There are links and sources you&#8217;re given, but there is an opinion to go with it too, which is what you&#8217;re talking about.</p>

<p class="has-text-align-none">Some of this will be iterative with users. One of the great things we find with search is it&#8217;s easy to measure user satisfaction. Over 25 years we&#8217;ve learned to measure user happiness, user satisfaction in a correlated way with improving the quality of the product, not for short term. That&#8217;s why we do these long-term studies. If we get any experience wrong, it shows in the metrics and we course-correct. We pride ourselves on the ability to track this over the long term — be it engagement, sessions, returning to a topic, the number of bounce-backs they do. It’s a very, very sophisticated way of looking at it. In some areas like that, the experience will continue to evolve.</p>

<p class="has-text-align-none"><strong>Do you think that experience is good today?</strong></p>

<p class="has-text-align-none">It&#8217;s probably more opinionated than it should be for the particular query you showed me. That was my reaction as a user. That&#8217;s the scope for improvement is how I would say it, in a fast-evolving space, but I would expect that to happen in the product. My intuition there is, “Oh, that&#8217;s way more opinionated.” There is some chance that&#8217;s personalized to you. You may be testing it in a way that you&#8217;re uniquely personalizing. The reason that query might not be exactly representative, though, is that I know how you review all these things. There is some chance you&#8217;re in the .0001 percentile–</p>

<p class="has-text-align-none"><strong>This is kind of why I&#8217;m asking about infinitely personalizable results, right? And I&#8217;m also asking if the experience is good, because I would bet that most people experience AI in Google Search all the time. They have that experience where they’re kicked to AI mode. There&#8217;s the stuff you can measure about user satisfaction, and then there&#8217;s how the public feels about AI.</strong></p>

<p class="has-text-align-none"><strong> I think there&#8217;s a pretty yawning gap between, “There&#8217;s these user numbers going up, and we&#8217;re close to a billion users, and the free products people are experiencing, how good they might be,” and then just the polling data. <a href="https://www.theverge.com/ai-artificial-intelligence/920401/gen-z-ai">Young people dislike AI</a>. It&#8217;s as objective as that gets. You can go ask them, and they will tell you in measurable ways they dislike it.</strong></p>

<p class="has-text-align-none"><strong>Eric Schmidt, the former CEO of Google, was <a href="https://www.theverge.com/ai-artificial-intelligence/932203/university-of-arizona-students-boo-eric-schmidt-ai-commencement">booed at a college graduation speech</a> he was giving. Seven in 10 Americans <a href="https://www.washingtonpost.com/nation/2026/05/13/7-10-americans-oppose-data-centers-being-built-their-communities/">oppose data center construction</a>. There&#8217;s some gap between the product experiences people are having and how they feel about the technology. Do you think you can close that gap? Do you think these products are good enough?</strong></p>

<p class="has-text-align-none">It is a very profound topic, and you&#8217;re linking the two things. AI is the most profound technology humanity&#8217;s going to deal with. It&#8217;s happening at a very fast pace. I don&#8217;t think humans have evolved to process this much change, and the rate of change particularly over the last few years is incredibly high. And particularly with all that they&#8217;re hearing, people are trying to understand the future and in the personal context of their lives, including what it means at an economic level and so on.</p>

<p class="has-text-align-none">It really makes sense why there is anxiety around this technology, and we should be very attuned to that. That&#8217;s an important topic, and that&#8217;s much broader and bigger than the facets of what&#8217;s happening. People don&#8217;t directly associate these two all the time. In some cases, yes, they are linked in certain ways.</p>

<p class="has-text-align-none"><strong>People experience the free versions of these models in various products. They open their social media feeds and they see slop. They see headlines about all that stuff. They have the tools just presented to them. The Gemini sparkle shows up in all the Google products, whether you ask for it or not. And then I do think you link it to, “They&#8217;re asking for a lot of electricity, and maybe my rates will go up. And maybe all the jobs will go away,” and that&#8217;s pretty scary, and I don&#8217;t know if the value exchange is there.</strong></p>

<p class="has-text-align-none">These are good things to study. You&#8217;re being too specific on what&#8217;s happening versus I&#8217;m just broadening it out and saying that might be part of the explanation. I do think there are other cheaper factors too.</p>

<p class="has-text-align-none"><strong>Do you think it&#8217;s just a marketing problem? I&#8217;ve heard your peers say that <a href="https://finance.yahoo.com/sectors/technology/articles/sam-altman-calls-tbpn-hosts-151929898.html?guccounter=1">AI just has a marketing problem</a>.</strong></p>

<p class="has-text-align-none">No, I don&#8217;t think so. That&#8217;s the point I&#8217;m making. I&#8217;m in fact arguing against it. I think it makes sense to me why people would feel concerns about it. It feels natural to me. People are talking about how AI could make a lot of jobs go away. Why wouldn&#8217;t you feel a sense of anxiety about it? I think those are deeper issues which we have to tackle as a society. Yes, there&#8217;s concern about AI slop at a product level. All that is true. All I&#8217;m pointing out is it&#8217;s a multilayered problem. But I don&#8217;t think all the source of the data center angst is directly related to one specific experience you&#8217;re having in a product or something alone like that. That&#8217;s all the point I&#8217;m making, right? It is broader and bigger than that.&nbsp;</p>

<p class="has-text-align-none">There&#8217;s a lot of AI slop out there. I feel it. In an early phase of technology with the competitive dynamic that exists, a lot of things are getting rolled out. But we also see empirically how people are using these products in very deep ways. If you go to a place where Waymo hasn&#8217;t come and you&#8217;ve just polled people, talking about self-driving cars, what you get in the polls is different from how they feel when they use these cars. Technology also goes through these things. People have pretty negative views of the internet too, by the way, if you ask about the internet. But it&#8217;s a fabric of our lives, and we have to adapt to it. All of that is simultaneously happening.</p>

<p class="has-text-align-none">It&#8217;s a complex topic. To me, it feels like people are worried about rising energy prices, and if so, they want to make sure AI is not exacerbating the problem, and that&#8217;s a valid concern. And it&#8217;s up to us as an industry to make sure that if you&#8217;re building data centers, what can we do to make sure we aren&#8217;t contributing to that problem? I view it as our responsibility, not just us. And the government, there are bipartisan concerns around some of this stuff. For example, there&#8217;s a rate payer pledge we all signed up to with a set of commitments. Maybe there needs to be more done. All of that goes hand in hand. It&#8217;s important to talk about topics like skilling, workforce adaptations. We are driving a lot of change very fast through society. Those end up being very important topics as well.</p>

<p class="has-text-align-none">There are concerns at all those levels, and I expect those concerns to be meaningful as we go forward. Many years ago I said, <a href="https://www.theverge.com/2018/1/19/16911354/google-ceo-sundar-pichai-ai-artificial-intelligence-fire-electricity-jobs-cancer">&#8220;This is more profound than fire or electricity,&#8221;</a> and so we have always felt that. Or think about deep-fakes and how do you know whether something is real? These models are getting better at simulating reality. This is why we&#8217;re working so hard. We are open-sourcing it, we are pulling many, many partners together, and it&#8217;s great for me to see the industry collaborate on a topic like this. Cybersecurity is another good example. These are all real concerns.</p>

<p class="has-text-align-none">As an industry we need to do more. Governments will have a stronger role to play, and the public needs to be involved. You cannot have the most consequential technology rolling out the world in a way in democracies without public citizens rightfully having a voice around it. It is really important that we go through this phase, and that&#8217;s how we learn how to adapt.</p>

<p class="has-text-align-none"><strong>My argument is that the products do the marketing work. That&#8217;s my push. I&#8217;m still waiting to see the killer app for consumers that does it. I think we have the killer app for enterprise.</strong></p>

<p class="has-text-align-none">One point, there are times I&#8217;ve gone through a health journey in Gemini. It feels more than like a killer app to me, better than anything I&#8217;ve ever done before. People are going through those experiences too.</p>

<p class="has-text-align-none"><strong>I want to talk about the web, the health journey in Gemini that requires a rich data set of health information on the web to exist. You&#8217;re training Gemini on YouTube videos, right? Veo requires the YouTube ecosystem to operate and to be fruitful, to make new work in. You and I have discussed the concept I call Google Zero for many years, the idea that you will stop sending traffic to the web. You&#8217;ve disagreed with me that this is real.</strong></p>

<p class="has-text-align-none">Very much so. It hasn&#8217;t happened in the last many years.</p>

<p class="has-text-align-none"><strong>Well, I&#8217;m just going to read you a quote. This time it&#8217;s not me, and I didn&#8217;t feed this to him. Roger Lynch, the CEO of Condé Nast, </strong><a href="https://www.youtube.com/watch?v=0AuD76FK3u4"><strong>did an interview with TBPN</strong></a><strong> last week and he said: &#8220;Every year our search traffic was down more than we had forecast, so last year I told our teams, &#8216;Assume there is no search. You have to have your businesses planned as if search is zero.'&#8221;</strong></p>

<p class="has-text-align-none"><strong>That is Google Zero. Condé Nast is saying, &#8220;We&#8217;re assuming that search will go to zero.&#8221; How would you respond to that, the idea that one of the biggest, most iconic publishers in the world is saying, &#8220;I can&#8217;t depend on this anymore&#8221;?</strong></p>

<p class="has-text-align-none">Look, first of all, the information ecosystem is so much broader beyond Google, by far. We see it in the data, you see it everywhere. So if any publisher over the last 10 years… I would look at <em>The Verge</em> and I would say where you were when you first took over, how much it&#8217;s evolved since then, the types of content you make, where all you put that content out, how all users are coming to you. It&#8217;s exceptionally dynamic, and so it makes sense to me every publisher is adapting to this new world.</p>

<p class="has-text-align-none">We are adapting to the evolving world and how users are consuming technology. We had to do this when the world shifted from web to mobile. We are shifting it from a world of mobile to people having ongoing conversations, chatting with these products, talking to them, consuming it in voice and many different form factors.</p>

<p class="has-text-align-none">People are expressing preferences for various types of content. They&#8217;re looking for user-generated content. They&#8217;re looking for podcasts. They&#8217;re looking for that. Through it all, we are very committed to both meeting user expectations, and also connecting them to what&#8217;s out on the web. Just even in the last year, even since we&#8217;ve launched these features, we&#8217;ve gone back and added more links. Another area where behavior is changing is that many publishers, rightfully so, are thinking about subscription models.</p>

<p class="has-text-align-none"><strong>Sure. But I&#8217;m just saying Condé Nast is saying, &#8220;We&#8217;re going to assume our search traffic is zero, given the trends that we see.&#8221; Should they assume that?</strong></p>

<p class="has-text-align-none">Look, I always view&#8230; People understand their businesses better&#8230; I mean, I&#8217;m not in a position to tell such an iconic publisher what they should think about their business or plan. If they are building content that is high-quality and people like it, I expect us to reflect that in our products. That much I can commit to them.</p>

<p class="has-text-align-none">But I think more than any other company through this evolution, we are working very hard to make sure people can get connected, and we are planning to do it in Search and Gemini, and that still underpins a lot of what we do. But there is evolution. As the technology improves, low-quality clicks get filtered out. That&#8217;s a natural evolution we see. We see it in our metrics. Bounce clicks are going down. And so those are all dynamics.</p>

<p class="has-text-align-none">People are going to a wider array of information, and there are more people producing information than ever before. That pie is growing. All these dynamics are happening. It&#8217;s a complex ecosystem, but our commitment is to make sure we reflect the vastness and diversity of the content, and we do think people want to connect ultimately to these sources, but we are trying to meet them in those moments, and people come with very different intent and very different moments.</p>

<p class="has-text-align-none">One of the small features we have done, but very important I think, is if you&#8217;ve subscribed to something, we reflect that as a preferred source for you as a user. But that&#8217;s a new change which we didn&#8217;t have before. We are adapting to the fact that publishers are increasingly turning to subscription offerings too.</p>

<p class="has-text-align-none"><strong>Publishers and YouTube creators, should they be able to opt out of training to get surfaced in Search?</strong></p>

<p class="has-text-align-none">This is a much broader topic. Both laws and regulations will have to evolve. The courts will have to weigh in. It&#8217;s important to protect copyright. It&#8217;s important to protect fair use. And so these are constructs which will evolve dynamically through that.</p>

<p class="has-text-align-none"><strong>But do you want to be in a bunch of lawsuits with YouTube creators? You&#8217;re in a <a href="https://publishers.org/news/publishers-move-to-intervene-in-class-action-suit-against-google-for-generative-ai-product-gemini/">lawsuit with publishers in the UK</a>. That rhetoric in that lawsuit is getting increasingly heated. Google has said that the proposed solution is a <a href="https://www.telegraph.co.uk/business/2026/05/11/google-brands-news-publishers-free-riders-in-search-box-row/">“free rider charter.”</a> Every year the News Media Association sends me a quote to read to you, and they say, &#8220;Google calling us free riders is obviously ridiculous. It&#8217;s basic supply chain economics.</strong> <strong>If the value were really all on Google&#8217;s side, they would simply allow publishers to opt out.&#8221;</strong></p>

<p class="has-text-align-none"><strong>Do you want to be in that same fight with a bunch of creators on YouTube about opting out?</strong></p>

<p class="has-text-align-none">Look, we are constantly — as part of Gemini developing…</p>

<p class="has-text-align-none">We did offer a new opt-out with Google-Extended, and we are in conversations with publishers. We&#8217;ll take feedback and over time work through what makes sense. Obviously we are not the only player in a big ecosystem. We are also trying to put out products which are competitive to other products out there. All the publishers will also write an article saying the product is not very good. So it is more complicated than it looks.</p>

<p class="has-text-align-none"><strong>You have spent more time thinking about the web and the health of the web and the necessity of the web. Paint me the picture for what a healthy web looks like in an agentic search world.</strong></p>

<p class="has-text-align-none">One of the arguments I&#8217;ve made over time and I actually see it playing around a little bit more, is I&#8217;ve started using the web more again over the last year to year and a half. All these AI experiences have brought the web back more. There was a time when it felt like&#8230; But I always felt the web would be vibrant. In fact, I&#8217;ve argued the web is going to be vibrant every year, and I would still argue it today. The web is constantly evolving. I&#8217;ve never seen anything as dynamic as the web, which is why it&#8217;s been such a privilege to be part of that evolution.</p>

<p class="has-text-align-none">I look at agents, and that is the next evolution of the web, which we will deal with, and I think it will evolve the web pretty profoundly. There will be a lot of debates about what&#8217;s okay, what&#8217;s not, but people want to put out information, to connect with other people. People want to be connected. People aren&#8217;t trying to be in a siloed world, detached. That doesn&#8217;t reflect the reality of the human experience. I think the web is going to play as central a role on it as ever before. In fact, the <a href="https://www.theverge.com/news/932927/google-io-agentic-ai-shopping-universal-cart">Universal Commerce Protocol</a>, if anything, what we announced yesterday, I think people are slightly underestimating the impact of it.</p>

<p class="has-text-align-none"><strong>Actually, can I juxtapose that? There are a lot of muscular announcements about new products, new features, and agentic tools you can use, and UCP and Amazon and Walmart and everyone saying, &#8220;We&#8217;re going to use a new standard we&#8217;re building for shopping,&#8221; and all that is very tangible.</strong></p>

<p class="has-text-align-none"><strong>And then I/O ended with Demis Hassabis, the CEO of DeepMind, coming out, and <a href="https://www.theverge.com/tech/934260/google-io-ai-singularity-demis-hassabis">he said this thing</a> that I have not been able to stop thinking about. He said, &#8220;Google&#8217;s cutting-edge research and products will help unlock AGI&#8217;s incredible potential for the benefit of the entire world. When we look back at this time, I think we will realize that we were standing in the foothills of the singularity.&#8221;</strong></p>

<p class="has-text-align-none"><strong>Can you tell me what it means to be in “the foothills of the singularity”?</strong></p>

<p class="has-text-align-none">Demis and I have had long, deep conversations on this topic. In this context, the advent of AGI is what he thinks of as the singularity.</p>

<p class="has-text-align-none"><strong>Do you have a definition of AGI? Have you debated it? Do you have an agreement?</strong></p>

<p class="has-text-align-none">We debate it a lot. I think both Demis and I are very close in how we think about things. There is a harder definition of AGI, which is that it has to be more comprehensively able to do a wide range of tasks, including cognitive tasks, in a way that&#8217;s comparable. We&#8217;ll at some point actually put it out as a company, and we are working on that. But that&#8217;s what he&#8217;s talking about in this context.</p>

<p class="has-text-align-none">By the way, I think it&#8217;s important for us to understand that this technology is progressing very rapidly. Later today, I&#8217;ll be going and spending time with our AI researchers, not just in our company, but also amongst the frontier labs. There&#8217;s wide consensus that this technology, AGI, is&#8230; people may quibble around whether it will be three years, but the technology&#8217;s coming sooner rather than later. It&#8217;s more important to communicate that because — to an earlier part of the conversation — it&#8217;s important that we as a society understand it and are preparing as much as possible.</p>

<p class="has-text-align-none"><strong>I </strong><a href="https://www.theverge.com/24158374/google-ceo-sundar-pichai-ai-search-gemini-future-of-the-internet-web-openai-decoder-interview"><strong>asked you this question</strong></a><strong> maybe the first time we ever talked about AI. I asked you </strong><a href="https://www.theverge.com/ai-artificial-intelligence/827820/large-language-models-ai-intelligence-neuroscience-problems"><strong>if language was intelligence</strong></a><strong>. And the progression here is we&#8217;re layering more and more on LLMs. We&#8217;re doing longer chains of reasoning, we&#8217;re building harnesses, we&#8217;re doing all this stuff, but the core technology is still transformers. It&#8217;s still the thing Google invented so long ago. Can LLMs get you to AGI? Is that path clear?</strong></p>

<p class="has-text-align-none">The trajectory over the last three years has been incredible. The LLMs of today have evolved in many ways too. We are constantly evolving it. To me, it&#8217;s like asking, can computers get us to the way—? The von Neumann architecture is still what powers most computers today, but he won&#8217;t recognize the modern one of our TPU pods. Or maybe he would. There&#8217;s still a lot of commonality to it. The underlying technology keeps evolving so profoundly. I look at every year we have had major breakthroughs. I mean, you just saw us demo in Antigravity an ability to prompt and create an operating system.</p>

<p class="has-text-align-none"><strong>It&#8217;s very dangerous for Google to be able to make new operating systems.</strong></p>

<p class="has-text-align-none">We&#8217;ll have to make sure we don&#8217;t token max on creating&#8230; I&#8217;ll give you that. It&#8217;s fair, but that is the power of what these things are doing, right? There are the top mathematicians in the world, top physicists in this world who are interacting with these tools and using them in important ways, but can these tools fundamentally make novel scientific discoveries on their own? Not yet.</p>

<p class="has-text-align-none">It&#8217;s remarkable how much it&#8217;s progressed. I do think it has important evolutions to happen, and then there are strong opinions out there in the world about how much of a real understanding of the world you need to take that next leap. I&#8217;m pretty optimistic that we will continue to make a lot of progress.</p>

<p class="has-text-align-none"><strong>What is your timeline? Is it three years, or five years, to AGI? Where are you at?</strong></p>

<p class="has-text-align-none">I have always answered it this way: I think that timeline doesn&#8217;t matter because the rate of progress means you&#8217;re dealing with ever more intelligent systems in a profound way. So the way I would answer that question, three years from now, whether you and I call it AGI or not doesn&#8217;t matter because it&#8217;ll be very, very powerful, and we have to prepare for it.</p>

<p class="has-text-align-none"><strong>Sundar, this was great. Thank you so much for taking the time yet again.</strong></p>

<p class="has-text-align-none">Yeah, thanks, Nilay. Pleasure.</p>

<p class="has-text-align-none"><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[Musk v. Altman: Much ado about nothing]]></title>
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			<id>https://www.theverge.com/?p=934869</id>
			<updated>2026-05-25T10:57:17-04:00</updated>
			<published>2026-05-21T10:00:00-04:00</published>
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							<summary type="html"><![CDATA[Today I’m talking with Liz Lopatto, who spent the last month covering the Musk v. Altman trial in all its chaos. You’ll hear her describe the courthouse as a “zoo” and explain that there were protests of one kind or another happening outside every day. Both Elon Musk and Sam Altman are big personalities, and [&#8230;]]]></summary>
			
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<p class="has-drop-cap has-text-align-none">Today I’m talking with Liz Lopatto, who spent the last month covering the <em>Musk v. Altman</em> trial in all its chaos. You’ll hear her describe the courthouse as a “zoo” and explain that there were protests of one kind or another happening outside every day.</p>

<p class="has-text-align-none">Both Elon Musk and Sam Altman are big personalities, and people have a lot of <em>feelings </em>about both of them and the AI industry. And in the end… nothing happened! The jury found that Elon had filed his lawsuit after the statute of limitations had run out. You’ll hear Liz explain exactly what’s going on there.</p>

<p class="has-text-align-none">Beyond that, the trial was nominally about OpenAI’s conversion to a for-profit entity from a nonprofit one and if the way OpenAI went about it cost Elon Musk money. But really, the suit seems mostly to have been about Elon Musk being mad at Sam Altman — or at OpenAI, for being successful without him — and wanting him punished in some way.</p>

<p class="has-text-align-none">So in a room full of untrustworthy, unreliable people all fighting with each other, did anyone even have a reputation left to lose? <em>Is</em> there a floor?</p>

<p class="has-text-align-none">Okay: Liz Lopatto on <em>Musk v. Altman</em>. Here we go.</p>

<iframe loading="lazy" frameborder="0" height="200" src="https://playlist.megaphone.fm?e=VMP4133773225" width="100%"></iframe>

<p class="has-text-align-none"><em>This interview has been lightly edited for length and clarity.</em></p>

<p class="has-text-align-none"><strong>Liz Lopatto, you are a senior chaos reporter here at </strong><strong><em>The Verge</em></strong><strong>. You just covered the Sam Altman v. Elon Musk trial. Welcome to </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

<p class="has-text-align-none">Thank you. Always a pleasure to be here. I feel like it&#8217;s always some new, relatively insane thing that we&#8217;re talking about.</p>

<p class="has-text-align-none"><strong>We have to stop meeting under these circumstances.</strong></p>

<p class="has-text-align-none">I think these are your favorite circumstances.</p>

<p class="has-text-align-none"><strong>They are my favorite circumstances.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>A few times a year, we drive you absolutely batty by sending you to cover something, and this trial was 100% one of those situations. The copy got increasingly unhinged. I think the audience liked it. But you were in the courtroom for the majority of </strong><strong><em>Musk v. Altman</em></strong><strong>. You got to see a bunch of the testimony live as these guys took the stand, as Mira Murati and others took the stand.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>We&#8217;ll start at the high level. I think the audience probably knows that Elon Musk lost, but what was this case about and what were the vibes in the courtroom?</strong></p>

<p class="has-text-align-none">There are two things that we should distinguish. There was what the case was ostensibly about, and then there was what the case was actually about, and those are two entirely separate things.&nbsp;</p>

<p class="has-text-align-none">Ostensibly, the case was about the violation of a charitable trust.Elon Musk had donated a bunch of money to OpenAI Foundation, and then they created a for-profit, and he thinks that&#8217;s a violation of his charitable trust. He also thinks that the timing of that was right around what is known as “the blip,” when Sam Altman was briefly removed and brought back. Put a pin in that. It&#8217;s going to be important here. That&#8217;s what we&#8217;re ostensibly there for.&nbsp;</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&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />


<p><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="has-text-align-none">Because it was around the blip, Microsoft was accused of aiding and abetting, and Microsoft very quickly became my favorite part of the case.&nbsp;</p>

<p class="has-text-align-none">In reality, there had been so many changing legal strategies around this. This case was filed I think two years ago in state court and then withdrawn and then put in federal court. There&#8217;s just been a myriad of things that have shuffled around since then, including a charge that got dropped right before we went to court.</p>

<p class="has-text-align-none">So to me, the main point of this was punishing Sam Altman and maybe trying to kneecap OpenAI. And this is a case where the two worst people you know are fighting so it&#8217;s kind of hard to root for anyone. The most common response that I tended to get when I would talk about this to people or when I would post about it on social media was like, &#8220;Can they both go to jail?&#8221; So that&#8217;s kind of the vibe.</p>

<p class="has-text-align-none">The courtroom was a little bit of a zoo during Musk&#8217;s testimony. We had one woman who got called down in front of the courtroom by the judge and chewed out because she had been taking photos in the courthouse. On the very last day, we had a guy who was ejected because he had been recording the proceedings in the courtroom. There were some shenanigans.&nbsp;</p>

<p class="has-text-align-none">Every time we would leave the courthouse, there would be some kind of protest going on, usually behind the lawyers as they were trying to give their daily summary and spin what they had done in the courtroom, and then parading behind them would be&nbsp; a guy in a Cybertruck holding an “Elon Sucks” sign.</p>

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

<p class="has-text-align-none">So that was what that was.</p>

<p class="has-text-align-none"><strong>I want to come to the legal issues and particularly the ruling from the jury, as there&#8217;s a lot of mechanics there. I just want to stick on a point that the goal here was for Elon Musk to punish Sam Altman, and connect that to the protests and the comments you&#8217;re getting on social media, and certainly the comments we get every time we publish anything about AI. Is there any reputation left to damage for Sam Altman or the AI industry as a whole? Because it seems like both of these guys are at all-time lows. I&#8217;m thinking about jury selection when the judge had to just say, &#8220;It seems like no one likes Elon Musk, but we&#8217;re going to have to trust that the jury will be fair.&#8221; What&#8217;s even left to take away here?</strong></p>

<p class="has-text-align-none">There&#8217;s no floor about these things. I also view Sam Altman as untrustworthy, which is one of the things that this trial was really driving home as one of the points that Elon Musk&#8217;s lawyers were making, and I agree. I also think everybody else in the trial was totally untrustworthy. It was not just Sam Altman, it was all of them.</p>

<p class="has-text-align-none">One of the things that I found myself thinking about was that the person who really got damaged the most was Mira Murati who, at least as far as I know, didn&#8217;t have a reputation as being somebody who was untrustworthy, or conniving, or whatever. And then in testimony from former OpenAI board members, we found out that she was one of the reasons that Sam Altman got fired and then was immediately texting Sam Altman like, &#8220;Oh, no, Sam, it&#8217;s very bad. It&#8217;s very bad, Sam.&#8221; You remember during this blip that Altman was fired for a pattern of being untrustworthy or something.</p>

<p class="has-text-align-none"><strong>It was “he was not consistently candid with the board,” which could have meant anything.</strong></p>

<p class="has-text-align-none">Anything! And the thing that I remember, because I gossip with a bunch of journalists and we are ferocious gossips, is all of us were like, &#8220;Oh, he did something illegal. Let&#8217;s find out what illegal thing he did.&#8221;&nbsp;</p>

<p class="has-text-align-none">As far as I can tell, no, he didn&#8217;t. It was just that he was engaging in what I would characterize as relatively normal executive shenanigans, where you are maintaining your control of the company by pitching your subordinates against each other — a strategy that is widely used in corporate America, by the way.&nbsp;</p>

<p class="has-text-align-none">So she wouldn&#8217;t tell people that she was involved in his removal. She was the interim CEO, and then publicly supported him, and then publicly was involved in bringing him back.</p>

<p class="has-text-align-none"><strong>Someone on the stand, I don&#8217;t remember who, said Mira was waiting to see which way the wind would blow and didn&#8217;t realize she was the wind.</strong></p>

<p class="has-text-align-none">That was Helen Toner, who was one of the board members who stepped down in this debacle. Because obviously as this proceeded, it became clear that by firing Sam in the way that they had fired him, they had jeopardized the entire company. One of the things that I thought was really interesting from Sam&#8217;s testimony — that I did believe, by the way — is that he thought about just taking a job at Microsoft and getting paid and not having to deal with any headaches anymore. I can certainly imagine after having been really publicly and embarrassingly fired, and having gone through all of the annoying things that one goes through as a manager and especially as a CEO, just being like, &#8220;You know what? I just want a paycheck.&#8221;</p>

<p class="has-text-align-none"><strong>Who among us has not thought about retiring to a comfy job at Microsoft?</strong></p>

<p class="has-text-align-none">Right? And so when he was talking about that, I was like, &#8220;Yeah, actually, I believe that. That sounds real.&#8221; Then he obviously changed his mind.</p>

<p class="has-text-align-none">But one of the things that I thought was really interesting about that is that we found out&nbsp; Helen Toner, who we saw in deposition testimony, was involved in potentially trying to sell OpenAI to Anthropic, a company that she has some ties to through the Effective Altruism movement. So again, no one here comes off looking good. I thought for a while that Helen Toner was maybe the most reliable witness we had heard from and then in the cross on the deposition it was like, &#8220;So tell us about your relationship with Anthropic.&#8221; And I was like, &#8220;Awww.&#8221;</p>

<p class="has-text-align-none"><strong>That&#8217;s actually the thing that struck me about this entire trial. Helen Toner being wrapped up in Anthropic is one thing, but the entire AI industry at the top is 10 people who are wrapped up in each other emotionally, professionally. They&#8217;re writing each other obsequious emails, particularly to Elon, just full of flattery and praise about how great everyone is.</strong></p>

<p class="has-text-align-none"><strong>The idea that they&#8217;re going to make AGI is taken for granted in some way. These are the leaders of a new religion in a real way, you can see it, and they all lack any management instincts or emotional maturity to deal with the kinds of tasks that are put in front of them or the stakes or the money. You can just see it. It&#8217;s in the trial, it&#8217;s in the evidence, that they&#8217;re cracking under the pressure that they&#8217;re putting one another under, and there&#8217;s no outlet. In fact, the only outlet might have been Satya Nadella, who comes off as the coolest cucumber around because he&#8217;s just like, &#8220;I don&#8217;t know, is this going to make money? Don&#8217;t call me.&#8221; That&#8217;s basically his whole vibe.</strong></p>

<p class="has-text-align-none">Again, I loved Microsoft in this case. I&#8217;m not a Microsoft user. I am familiar with their products. Which by the way, their opening statement was so good. It was just a list of Microsoft products you might&#8217;ve used at some length.</p>

<p class="has-text-align-none"><strong>“Remember us?”</strong></p>

<p class="has-text-align-none">It was fantastic. They were just like, &#8220;We&#8217;re not sure why we&#8217;re here, but you know us. We&#8217;re Microsoft. You&#8217;ve used Windows, surely. Do you like Xbox? That&#8217;s us.&#8221; So that was great.&nbsp;</p>

<p class="has-text-align-none">There was really a sense that the only adult in the room at any given time was somebody from Microsoft. We saw that over and over again where Satya Nadella is like, &#8220;Don&#8217;t text me. Don&#8217;t leave a paper trail.” His emails are not especially spicy. I think the spiciest they got is something like him being like, &#8220;Well, we don&#8217;t want to be IBM and have them be Microsoft.&#8221;</p>

<p class="has-text-align-none"><strong>This is OpenAI. He doesn&#8217;t want to be the commodity provider of data center hardware and have their software be the important thing, which is what happened to IBM and Microsoft.</strong></p>

<p class="has-text-align-none">That&#8217;s right. Which, by the way, totally understandable sentiment, I feel.</p>

<p class="has-text-align-none"><strong>Especially from Microsoft. He&#8217;s like, &#8220;I know what&#8217;s happening here.&#8221;</strong></p>

<p class="has-text-align-none">That was the spiciest thing we got out of Microsoft. That was it.&nbsp;</p>

<p class="has-text-align-none">So these are people who, in addition to having the management chops and having the sense of what you do and don&#8217;t do, were also just a little bit less dramatic. Over and over again, we&#8217;d have a witness, and there would be some really brutal and devastating cross from OpenAI. And then Microsoft would get up and be like, &#8220;Was Microsoft there? Was Satya Nadella there? Does anyone from Microsoft know anything about any of this? No further questions, your honor.&#8221;</p>

<p class="has-text-align-none">It was a beautiful punchline every single time.</p>

<p class="has-text-align-none"><strong>That&#8217;s very funny. So Microsoft obviously put a bunch of money into OpenAI. Nadella had </strong><a href="https://nymag.com/intelligencer/2023/11/on-with-kara-swisher-satya-nadella-on-hiring-sam-altman.html"><strong>that famous quote</strong></a><strong> about being above them, below them, around them, referring to Azure and its dependency on Azure and how they would deploy OpenAI&#8217;s models. But eventually the trial comes down to, “Did they illegally convert this charity to a for-profit, and along the way, take something from Elon Musk?” What was the actual jury verdict on those counts?</strong></p>

<p class="has-text-align-none">The jury verdict was that Elon Musk filed the suit too late, and the statute of limitations had run out. And I&#8217;m going to be real with you, I think that had there not been a statute of limitations question, he still would&#8217;ve lost. This was a pretty weak case.&nbsp;</p>

<p class="has-text-align-none">We&#8217;re going to start with the statute of limitation stuff because that is the most relevant. And then I will walk you through all the rest of it because we did do all of this in exhausting detail for the last month of my life.</p>

<p class="has-text-align-none">One of the things that was part of Musk&#8217;s case was that he claimed that he didn&#8217;t think his trust had been violated until the blip. For this reason, he was still within the statute of limitations. The law, I believe, is that you need to file within three years. We saw a bunch of evidence that he had been read in repeatedly on the conversion to a for-profit and the various investment rounds.</p>

<p class="has-text-align-none">I found myself unexpectedly sympathetic to Sam Altman during this trial. So congrats, Sam. He kept trying to get Elon to like him again. There would be these emails where it was like, &#8220;Hey, we&#8217;re raising this round.&#8221; Or he&#8217;d be emailing people to see what kind of mood Musk was in, if it was a good time to talk to him, because he just wanted to make sure that Elon knew what he was doing, and was it a good time for them to chat? Was Elon in a good mood? If you have a person whose job it is to tell people whether you&#8217;re in a good mood or not, I strongly feel that suggests that you maybe are difficult.</p>

<p class="has-text-align-none"><strong>“How deep is today&#8217;s K-hole? Let&#8217;s find out before we ask for money.”</strong></p>

<p class="has-text-align-none">Over and over again, there was evidence of Musk being read in every single step of the way. Knowing about the Microsoft investments, knowing about the fact that they were creating this for-profit. In fact, there was a bunch of email evidence that he thought that making OpenAI a nonprofit had been a mistake, that it should have been for-profit from the jump.</p>

<p class="has-text-align-none">There&#8217;s a ton of evidence that, separately from the timeline question, suggests that OpenAI would&#8217;ve won this case. The definition of a charitable trust, and I&#8217;m going to mangle this slightly because I am not a lawyer, is that you have to have a specific purpose for your donations. You have to have established that this is a trust, and then the next thing you have to establish is that that trust was violated.</p>

<p class="has-text-align-none">Just looking at all of the donations, which we did in some depth, there were no strings attached that any of us saw. No one at all remembered there being any strings attached. One of the more devastating lines of testimony was that Shivon Zilis was asked, &#8220;Were there strings attached to these donations?&#8221; And she was like, &#8220;Well, not that I recall.&#8221; And then in the closing statement, OpenAI&#8217;s lawyer’s like, &#8220;Man, not even the mother of his children can corroborate his account.&#8221; Okay.</p>

<p class="has-text-align-none"><strong>That&#8217;s brutal.</strong></p>

<p class="has-text-align-none">So there were no strings attached. And then we had a financial analysis that showed that money was gone very, very quickly. , tThey had spent it, because AI is expensive. And they had spent it in the way that it was meant to be spent, and all the other money that happened afterwards had nothing to do with Elon Musk. So there was that.</p>

<p class="has-text-align-none">One of the things that I&#8217;m just going to put an asterisk on here, that I thought was interesting but didn&#8217;t write about, was that Musk had been paying the rent for OpenAI. They actually had to go back and ask him for money because Neuralink was in the building. When they got accountants to try to get their books in order so that they could proceed, the accountants were like, &#8220;Oh yeah, you can&#8217;t be supporting somebody else&#8217;s for-profit business in this building. You need to get rent money from Neuralink. They need to pay you back.&#8221;</p>

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

<p class="has-text-align-none">Not that we went into this in any depth, but my suspicion is that Musk had been taking a write-off on all of those donations on this building, and had been also taking that write-off on the space that Neuralink was using, which was why that money then had to be paid back to OpenAI.</p>

<p class="has-text-align-none"><strong>There&#8217;s a lot here. I mean, there&#8217;s a lot of just Elon Musk, there&#8217;s infinitely complicated fractally expanding OpenAI layers of companies within the nonprofit that have board control, and people can fire Sam Altman. All of that seems enormously complex, and maybe worth some future litigation. But the jury just went with statute of limitations. And it seems like that&#8217;s maybe all they should have been talking about, if that&#8217;s what was going to end the case this quickly. Why do you think that we spent all the time in the substance and the complication when Elon had just filed too late?</strong></p>

<p class="has-text-align-none">I did get people asking me about this as well. “Isn&#8217;t statute of limitations a legal issue? Why didn&#8217;t the judge rule on this?”</p>

<p class="has-text-align-none">And the answer is there was a question of fact, which was, “When should Elon have known what was going on?” And he&#8217;s saying, &#8220;I didn&#8217;t know until the blip. And so I&#8217;m within the statute of limitations.&#8221; And everybody else was saying, “e&#8217;s known the entire time. It&#8217;s over.” That was the thing that was being litigated. It wasn&#8217;t the only thing that was being litigated, but that was the one that ended up mattering: that the jury was like, “Yeah, he definitely knew all of this was happening. This is ridiculous.”</p>

<p class="has-text-align-none"><strong>If the goal was to trash Sam Altman, of course you would pick the blip because then you get to pull every document and email and text message from the blip into the trial into evidence. You get to publish it. We published it. Was that the goal? Was Elon just saying, &#8220;I only knew about this when Sam Altman got fired,&#8221; in order to put all of that damaging evidence into the record?</strong></p>

<p class="has-text-align-none">I think that was the goal. I think that was what was actually going on. It was also meant to distract OpenAI, because they did have to pay this very expensive law firm to do some very expensive work to defend them. They didn&#8217;t just defend the statute of limitations. They defended all of the subclaims and all of the other things as well, which is why there is so much in our stories. They were bringing forward as much as they could to defend every single part of every possible claim because they had to.</p>

<p class="has-text-align-none">And so, yeah, making Sam Altman look bad, distracting Sam Altman, maybe removing resources as Altman approached an IPO, those were probably the primary goals. I think Musk would&#8217;ve been happy with a win. He certainly would&#8217;ve been thrilled to force OpenAI to give up a bunch of money, even if it went back to the OpenAI Foundation, as he belatedly decided it should go. There are any number of things that I think he would&#8217;ve taken as icing on the cake, and he said that he&#8217;s going to continue this through the appeals process.</p>

<p class="has-text-align-none"><strong>Let me just read you the quote. Elon appeared at a Forbes conference, and he said, &#8220;I think this is a dangerous precedent to set. If someone can take a nonprofit and convert it to a for-profit, that undermines all charitable giving in America.&#8221; I don&#8217;t think Elon understands how precedent works, but it seems regardless of that, he&#8217;s going to keep tying OpenAI up in litigation for as long as he can.</strong></p>

<p class="has-text-align-none">Oh yeah. He said something very similar to that on the stand, by the way. He has some pet phrases he likes, and “dangerous precedent to set” and “undermines all charitable giving in America” are on the list.&nbsp;</p>

<p class="has-text-align-none">I think he does intend to tie OpenAI up in litigation for as long as he possibly can, bleeding them for cash, which is a strategy that we&#8217;ve seen other billionaires use. Most famously, Sheldon Adelson, who went after <a href="https://www.nytimes.com/2016/01/03/business/media/sheldon-adelsonspurchase-of-las-vegas-paper-seen-as-a-power-play.html">a Las Vegas paper</a>, if I remember correctly. Not because they had done anything wrong — and they were in fact ruled not to have done anything wrong — but because defending the case was so financially expensive that they nearly went under. And that is a strategy you can use if you have unlimited resources: you can just bleed somebody out.</p>

<p class="has-text-align-none"><strong>I do feel like if you&#8217;re Elon Musk and you&#8217;re really worried about rich people using their charities to enrich themselves, there are a handful of people in his direct orbit running the country that he might want to take a closer look at. This seems like he&#8217;s saying it because he just wants to keep screwing with OpenAI.</strong></p>

<p class="has-text-align-none">Oh, absolutely. There&#8217;s no doubt in my mind that this is personal for him. The thing that I have been thinking about for a while and am unable to quite tell&nbsp; is, “Is he personally pissed off at Sam Altman, or is he just affronted that OpenAI succeeded without him?”</p>

<p class="has-text-align-none"><strong>Well, so this is my other question. Maybe you kill OpenAI and it goes away and you&#8217;ve bought yourself some time. Elon has publicly said that they built Grok incorrectly and they need to start over. They are selling a huge amount of data center capacity at Colossus 1 to Anthropic, who Elon has hated in the past, but he says, &#8220;It&#8217;s all fine now&#8221; because they showed up with a check to buy his data center capacity.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>Even if you kill OpenAI, it doesn&#8217;t make xAI the winner. They&#8217;re basically starting over, as they publicly said. They&#8217;re giving up their compute capacity. What is the point of this, except to just vindictively kill OpenAI? It doesn&#8217;t seem like I can identify the competitive advantage here.</strong></p>

<p class="has-text-align-none">I mean, killing a competitor is not necessarily <em>not</em> a competitive advantage.</p>

<p class="has-text-align-none"><strong>Let&#8217;s say OpenAI is in first or second or third or something, or just running in a different direction on the track at this point. Who knows what they&#8217;re doing. If you&#8217;re in last, it doesn&#8217;t matter. In some way, he&#8217;s helped Anthropic and Google here.</strong></p>

<p class="has-text-align-none">Let&#8217;s say Musk wins and OpenAI has to disgorge all this money and that potentially just blows a hole in the side of the company. I can&#8217;t rule out that Altman is enough of a deals guy that he could patch it up, but let&#8217;s say he can&#8217;t.&nbsp;</p>

<p class="has-text-align-none">OpenAI is at the center of a web of deals, huge deals with places like CoreWeave and Oracle and Microsoft. Every company in the AI space is one degree of Kevin Bacon away from OpenAI. If you knock that company out, not only do you have a bunch of talent that comes free and needs a job now, which you can maybe hire, you also have created conditions where you can negotiate really favorable terms in these now suddenly open data centers with companies that now suddenly have huge holes in their revenue.</p>

<p class="has-text-align-none"><strong>I wish I could ascribe that level of 3D chess, but there&#8217;s a part of me that says this is just personal and vindictive. And we&#8217;re going to see appeals and further campaigns about how Sam Altman stole a charity, and that will be distracting for OpenAI on one level. And on another level, they&#8217;re just going to continue selling Codex to people, because it is good at writing code, and a lot of software companies seem very taken by that. Do you think this has any meaningful effect on OpenAI in the future?</strong></p>

<p class="has-text-align-none">No. We knew going into this trial that Sam Altman did not have a reputation for being perfectly honest. I mean, that was the upshot of the blip. There was a 17,000-word article in <em>The New Yorker</em> about this. This is something that I effectively think is priced in, in the same way that Elon Musk&#8217;s, let&#8217;s say, scattershot relationship with the truth is also priced in in all of his companies. People know who these guys are, none of this is a surprise, which is why I think, again, that the person who got hurt the most here is Mira Murati, who did not have her reputation trashed before this.</p>

<p class="has-text-align-none"><strong>So there&#8217;s going to be an appeal. These companies are going to carry on spending money. What do you think happens next? What should people be looking for? Or is this one safe to set aside for now?</strong></p>

<p class="has-text-align-none">I would set it aside for now. We had all the fun of going through their emails, we had their ridiculous text messages. But the biggest takeaway from the trial that matters is discovering that Grok sucks, even though Elon Musk had distilled everybody&#8217;s models. To me, that&#8217;s shocking.&nbsp;</p>

<p class="has-text-align-none">Not that I am an expert in AI. It&#8217;s entirely possible that you can distill all these models and have your AI still suck. But I think that that really is a take-home point, that one of the consistent things that we were seeing in this trial was that the nerdiest of the nerds, [OpenAI co-founders Greg] Brockman and Ilya Sutskever were both like, &#8220;He&#8217;s not really serious about AI.&#8221; And I came away being like, &#8220;Yeah, he&#8217;s not serious about AI. He doesn&#8217;t know what he&#8217;s doing.&#8221;&nbsp;</p>

<p class="has-text-align-none">We have all of the things that you talked about: They&#8217;re starting over from scratch, they&#8217;re leasing out their data center capacity, they&#8217;re doing all of these things that suggest that whatever Musk did with whatever billions of dollars, because I think xAI was spending&#8230; The reporting was a billion dollars a month. They&#8217;re starting over from scratch, there&#8217;s nothing, and this is even with cheating by distilling everybody&#8217;s models.</p>

<p class="has-text-align-none"><strong>Right. This is him saying, &#8220;We didn&#8217;t build it the right way.&#8221; They didn&#8217;t actually do a proper training run, they distilled all the other models. And so they&#8217;re not on the frontier. Which, by the way, has happened to other companies. Meta is out there saying that they were not on the frontier and they started over in a meaningful way. This is a nascent industry. It&#8217;s not clear how to do these things or build these things or ship these things in a way that works.&nbsp;</strong></p>

<p class="has-text-align-none"><strong>I think my big question coming out of all of this is, boy, this handful of people that have been entrusted with spending all this money and asking for all these resources and in many ways pitching a vision in the future, they seem so immature. And even if that&#8217;s priced in, did this trial just reveal that fundamentally they&#8217;re immature and maybe you should let the Microsofts and the Googles of the world be in charge of deploying this technology, because at least the amount of bureaucracy in place at those companies will slow them down.</strong></p>

<p class="has-text-align-none">That could be one takeaway. Given the way that Google has destroyed its own search engine for its AI models, I&#8217;m not clear that we want to include Google in this conversation.</p>

<p class="has-text-align-none"><strong>I&#8217;m just saying.</strong></p>

<p class="has-text-align-none">We&#8217;re maybe talking about Microsoft and maybe Apple. But yeah, you want grownups in charge of this technology, for sure. And the immaturity I thought was really interesting because there was a recurring theme, again that didn&#8217;t seem worth writing about separately, but that I will mention here. Over and over again, you&#8217;d get somebody on the stand and they&#8217;d be like, &#8220;Ever since I was a child, I&#8217;ve dreamed of AI. I&#8217;ve thought about the smart computer and how amazing it would be. And it kept me up at nights when I was nine years old.&#8221;&nbsp;</p>

<p class="has-text-align-none">First of all, that&#8217;s stupid because that&#8217;s fiction. If you can&#8217;t tell the difference between fiction and reality, we have bigger problems. I had some childhood dreams too, and I want to be real with you, I just don&#8217;t think that owning a horse is going to be a thing that makes sense for me.</p>

<p class="has-text-align-none"><strong>By the way, I just want to point this out. As we&#8217;re speaking, there is breaking news. Andrej Karpathy </strong><a href="https://www.theverge.com/ai-artificial-intelligence/933630/former-tesla-ai-boss-andrej-karpathy-is-joining-anthropic"><strong>has joined Anthropic</strong></a><strong>.</strong></p>

<p class="has-text-align-none"><em>[Laughs] </em>Sorry. <em>[Laughs] </em>Oh my God.</p>

<p class="has-text-align-none"><strong>Which is a perfect capstone on this trial. He&#8217;s like a main character. He gets recruited to and from all these companies and now he&#8217;s at Anthropic, which seems like far and away the winner of this whole thing. Hands the cleanest, products the most successful. Why did you start laughing that hard?</strong></p>

<p class="has-text-align-none">A recurring theme in the trial was Musk poaching OpenAI engineers. And of course, Andrej Karpathy was one of them, because he went from OpenAI to Tesla. Because OpenAI, when it was a foundation, was asked by Elon in a way that’s suggested was not actually an ask, if you follow me, to come work on autopilot because they were having a hard time with autopilot at Tesla. And so several engineers, including Greg Brockman, went over and worked on autopilot while they were theoretically working for OpenAI. So if anybody was stealing resources from a charity, I kind of think it was Elon Musk.&nbsp;</p>

<p class="has-text-align-none">One of the people who permanently stayed was Karpathy and he shows up again and again. This recruiting push that Musk made out of OpenAI while it was still a nonprofit, while he was still theoretically involved with it, while he was still theoretically on the board and had a fiduciary duty to the nonprofit, he was using it as a recruiting ground for Tesla.</p>

<p class="has-text-align-none"><strong>That&#8217;s very good. Well, Liz, I have a feeling we&#8217;re going to keep you very busy with these characters in the year to come. My prediction is that OpenAI does not end the year looking the same as it does now, that there will be yet more change at that company.</strong></p>

<p class="has-text-align-none">I think that&#8217;s right.&nbsp;</p>

<p class="has-text-align-none">The other little cherry that I&#8217;d like to put on top of all of this, speaking of Anthropic, is that one of my personal favorite parts of this trial occurred while the jury was out of the room. It was an evidence dispute about whether or not the jury could be shown a jackass trophy. Imagine a participation trophy that is just the back half of a donkey. And it said something like, &#8220;Never stop being a jackass for AI safety.&#8221;&nbsp;</p>

<p class="has-text-align-none">It was presented to an AI safety guy who, when Musk was on the way out at OpenAI and was doing a Q&amp;A session, was like, &#8220;Hey, it sounds like you&#8217;re really interested in speed over safety. I don&#8217;t think that&#8217;s a good idea,&#8221; and Musk called him a jackass. And so would you like to take a guess at one of the people involved in presenting that trophy?</p>

<p class="has-text-align-none"><strong>Was it Karpathy?</strong></p>

<p class="has-text-align-none">It was [Anthropic CEO] Dario Amodei.</p>

<p class="has-text-align-none"><strong>Oh, amazing. Amazing. Perfect. That tracks with everything Anthropic has stood for. Everyone&#8217;s leaving to start a safer AI company, and Dario was among the first. Perfect. Did he take the trophy with him?</strong></p>

<p class="has-text-align-none">He did. The lawyers had it, so I assume he&#8217;s gotten it back. We published a photo because as I was live-tweeting this, I saw people asking for a photo, so I got ahold of one, but I remain very entertained by this trophy. So hats off to the fine engineers who eventually did leave and make Anthropic, because it seems like they have a pretty good sense of humor.</p>

<p class="has-text-align-none"><strong>Yeah, they figured it out. All right, Liz, we&#8217;ll have you back soon, hopefully under more rational circumstances, but it&#8217;s always a pleasure. Thanks for being on </strong><strong><em>Decoder</em></strong><strong>.</strong></p>

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

<p class="has-text-align-none"><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>Allison Johnson</name>
			</author>
			
			<author>
				<name>Nilay Patel</name>
			</author>
			
			<author>
				<name>Victoria Song</name>
			</author>
			
			<title type="html"><![CDATA[Google I/O 2026 live blog: On the ground at Google’s keynote]]></title>
			<link rel="alternate" type="text/html" href="https://www.theverge.com/tech/932275/google-io-2026-live-blog-on-the-ground-at-googles-keynote" />
			<id>https://www.theverge.com/?p=932275</id>
			<updated>2026-05-19T12:38:02-04:00</updated>
			<published>2026-05-19T12:30:00-04:00</published>
			<category scheme="https://www.theverge.com" term="Android" /><category scheme="https://www.theverge.com" term="Google" /><category scheme="https://www.theverge.com" term="Google I/O 2026" /><category scheme="https://www.theverge.com" term="Tech" />
							<summary type="html"><![CDATA[We’re back at the Shoreline Amphitheatre in Mountain View, California, for this year’s edition of Google I/O. These days, Silicon Valley is buzzing about the future of AI search, agents, vibe coding, and e-commerce, so you can bet we’re expecting to hear tons of news on these fronts. And who knows, we might get a [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/2026/05/IMG_20260519_080214830_HDR.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p class="has-text-align-none">We’re back at the Shoreline Amphitheatre in Mountain View, California, for this year’s edition of Google I/O. These days, Silicon Valley is buzzing about the future of AI search, agents, vibe coding, and e-commerce, so you can bet we’re expecting to hear tons of news on these fronts. And who knows, we might get a peek at some smart glasses demos and concept projects, too.</p>

<p class="has-text-align-none">That said, we aren’t expecting much hardware. After all, Google jumped the gun last week, announcing the <a href="https://www.theverge.com/tech/928479/google-googlebook-laptops-android-tease-aluminium-chromebook">Googlebook</a> and <a href="https://www.theverge.com/gadgets/925458/google-health-fitbit-air-ai-coaching-wearables-fitness-trackers">Fitbit Air</a>. We also already heard much of what’s in store for Android during the <a href="https://www.theverge.com/tech/928624/android-show-2026-all-the-news-and-announcements">Android Show</a>.</p>

<p class="has-text-align-none">The AI landscape has changed quite a bit over the past few years, so the pressure is on for Google to distinguish Gemini from rivals like OpenAI’s ChatGPT and Anthropic’s Claude. If you want the latest on what Google has to say, follow along below. We’ll be in the audience delivering beat-by-beat updates on the show. The keynote starts at 10AM PT / 1PM ET.</p>
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