Trump AI Speech & Action Plan, DC Summit Recap, Hot GDP Print, Trade Deals, Altman Warns No Privacy

1. 0:00 – 1:44

   Bestie intros!

   1. CPChamath Palihapitiya0:00

      How much founder mode did you do?

   2. JCJason Calacanis0:01

      Are you saying that I popped an app? I need an app right now. Hold on.

   3. DSDavid Sacks0:04

      You don't need anything right now. Are you chewing it? What are you doing?

   4. JCJason Calacanis0:07

      No, you put this nicotine patch, you upper deck it, releases it, and then you become a god.

   5. CPChamath Palihapitiya0:12

      Is that the app that Tucker sent you?

   6. JCJason Calacanis0:14

      Yeah. Tucker and I are gonna do a crossover.

   7. CPChamath Palihapitiya0:16

      Wait, did you work out a side hustle here?

   8. DSDavid Sacks0:18

      Yes, he did.

   9. JCJason Calacanis0:18

      I haven't presented it to the group for a vote yet. You're preempting me.

   10. CPChamath Palihapitiya0:21

       Wait a second. Are you being paid for this plug right now?

   11. DSDavid Sacks0:24

       Yes, he is.

   12. JCJason Calacanis0:24

       I'm just saying, if you use the promo code J-CAL-

   13. CPChamath Palihapitiya0:27

       Wait a second. Wait a second.

   14. JCJason Calacanis0:29

       Promo code J 15-

   15. CPChamath Palihapitiya0:32

       Okay, he broke up, which is good.

   16. DSDavid Sacks0:33

       Is he on drugs? Is he taking drugs? (laughs) He's on drugs.

   17. JCJason Calacanis0:36

       No, I'm not on drugs.

   18. DSDavid Sacks0:37

       And, and he's doing a deal with Tucker Carlson.

   19. CPChamath Palihapitiya0:38

       This is like a PSA for not taking this stuff. You're so out of control.

   20. DSDavid Sacks0:42

       (laughs) Did you take two of them? What are you doing?

   21. CPChamath Palihapitiya0:44

       I thought this stuff relaxes you.

   22. DSDavid Sacks0:46

       (laughs)

   23. CPChamath Palihapitiya0:46

       What the hell is going on? Your internet's on the fritz too.

   24. JCJason Calacanis0:50

       No, I fixed it. I fixed it. I fixed it. That was Putin. Putin got my internet.

   25. DSDavid Sacks0:55

       (laughs)

   26. JCJason Calacanis0:55

       Uh, Putin's getting my-

   27. CPChamath Palihapitiya0:56

       My God.

   28. DSDavid Sacks0:56

       What flavor are you eating or using?

   29. JCJason Calacanis0:59

       Oh, today is chilled mint. Today is chilled mint. Ugh.

   30. CPChamath Palihapitiya1:01

       You don't seem very chill. You seem-
2. 1:44 – 16:39

   Recapping "Winning the AI Race" in DC: Trump's speech, best moments, key takeaways

   1. NANarrator1:44

   2. JCJason Calacanis1:44

      All right, everybody. Welcome back to what Jensen from NVIDIA has confirmed is the number one podcast in the world. Yes, the All In Podcast is here. We had an amazing time in, uh, DC last week, and we'll get into that. But, uh, hey, Freeberg, you crushed it on all those incredible speakers last week. 10 days, you had to pull off that event, Freeberg, and you did it. Chamath and I just parachuted in to DC last week for the AI summit. Sax was busy working with POTUS to get all those executive orders done. Take us behind the scenes, Freeberg. All of these incredible speakers. You got Lisa from AMD. You had Lutnick, I liked him. Bessant, I liked him.

   3. DSDavid Sacks2:30

      We had to say no to a lot of tech company CEOs that found out about the event and wanted to speak on stage. So, there was a big kind of cutoff that we had to make around making sure that we got our message across. I think if you watch the content, we talked briefly about it at the beginning, but the focus was really on trying to dispel the negative AI narrative and myth-

   4. JCJason Calacanis2:52

      Hm.

   5. DSDavid Sacks2:52

      ... that AI is just here to destroy jobs because there's this big economic boom that's happening both with respect to new industries that are emerging, which is why we showcased Hadrian and others, but then also the infrastructure needed to support the AI race with data centers, chips, mining, and energy. And so we highlighted each of those four industries. And then the cabinet people found out about it and wanted to get involved. So, we were unfortunately squeezing people on and off stage. (laughs) It's kinda crazy to tell the Secretary of Treasury he has to get off the stage because he's passed his 20-minute allocation. But, uh, we had to line everything up so that the president could get his Secret Service detail to clear the stage and get set up in time. That's why we were rushing everyone. But man, what a week, what a rush. It was awesome. Thanks to David Sacks for the leadership and pulling it all together, bringing those folks to the table. And Sax, congrats on getting your EO signed and your action plan published. That was pretty cool. Pretty awesome to meet the president and meet all those cabinet members and have all of this day come together because of the work you've been doing. (laughs) How does it feel? (laughs)

   6. JCJason Calacanis3:55

      Sax, how are you doing in the afterglow there? I can see that you're in the afterglow. You sent me a picture of the four besties with our credible 47th president. Uh, how are you feeling right now?

   7. CPChamath Palihapitiya4:06

      (laughs) Are you gonna put that on the screen?

   8. JCJason Calacanis4:08

      I mean-

   9. CPChamath Palihapitiya4:08

      Maybe later.

   10. JCJason Calacanis4:09

       ... can we have it? I don't, I don't know if that's allowed. Can, are we allowed to put that on the screen? I don't know what the protocol is.

   11. CPChamath Palihapitiya4:14

       Yeah, I think we can.

   12. JCJason Calacanis4:15

       Yeah. I mean, I haven't gotten my picture. Um, I did notice that I was... Unfortunately, when they took the picture of the four of us with the president, somehow I got cropped out by accident.

   13. CPChamath Palihapitiya4:24

       (laughs)

   14. JCJason Calacanis4:24

       I think maybe they weren't using a wide lens.

   15. DSDavid Sacks4:26

       Wait, Jason, what was it like for you to meet the president? 'Cause just for the audience, we all stood in line and then we took-

   16. JCJason Calacanis4:31

       Yes.

   17. DSDavid Sacks4:31

       ... a photo with the president backstage, and then we did a photo with the four of us. But Jason, when you had your moment with the president, what did you say? Did you ask him about immigration? Did you ask him about climate change?

   18. CPChamath Palihapitiya4:40

       I have your photo by the way. I have your photo with the president-

   19. JCJason Calacanis4:42

       Oh, fantastic.

   20. CPChamath Palihapitiya4:43

       ... on my phone.

   21. DSDavid Sacks4:44

       Did you bring up solar panels with him? Like, what was your big moment all about?

   22. JCJason Calacanis4:48

       I didn't know we were taking a picture. That was like sprung on me. So, I was like, "Oh, we're taking a picture." So, my brother Josh, who runs security for us, was like, "You, they need you in the back to take a picture with the president." And I was like, "Yeah, I'm good." I, I gotta, I gotta prepare for, uh, you know, some, some segment.

   23. DSDavid Sacks5:05

       Oh, you were gonna pass?

   24. JCJason Calacanis5:06

       Well, I thought he was joking with me.

   25. DSDavid Sacks5:08

       Oh.

   26. JCJason Calacanis5:08

       So, I was like, "Yeah, yeah, I'm good. I'm good." (laughs) He's like, "No, no, I'm serious. (laughs) You're, you're taking pictures with the president."

   27. DSDavid Sacks5:13

       Uh-huh.

   28. JCJason Calacanis5:13

       I was like, "We are?" (laughs) Okay. So, I ran back-

   29. DSDavid Sacks5:16

       Uh-huh.

   30. JCJason Calacanis5:16

       ... and, uh, they put us in line. And then I was like, "I think I'm getting punked here," because they kept repeating to me, "Okay, Jason, you're last, you're last." And they, you know, and I know you guys like to put in a joke or two. So, you know, I just got in line last and it's obviously, you know, it's, it's a big deal to take a picture with the president. So, I didn't want to, um, you know, use that time inappropriately or anything. So, I just said, "It's a pleasure to meet you."
3. 16:39 – 34:32

   AI Executive Orders, unbiased AI, spiciest moments

   1. JCJason Calacanis16:39

      stood out?

   2. CPChamath Palihapitiya16:39

      Let's just talk about the executive orders for a second, because I think it's pretty cool that the president of United States signed three executive orders at the All-In Summit that we just hosted. (laughs) I mean, that was pretty amazing. One of them was to promote AI exports because we want the American tech stack to be, become the global standard. The second was around AI infrastructure to make permitting easier so that we can help solve those energy problems you were talking about, Friedberg. And then the third one was on preventing woke AI in the federal government, and that, to me, is probably my personal favorite because we spent a couple years on this show talking about how, when we were talking about woke, you're really talking about censorship, right? We were talking about censoring people's views based on, uh-

   3. JCJason Calacanis17:21

      Bias.

   4. CPChamath Palihapitiya17:22

      ... i- ideological bias, ideological dogmas. We saw what was happening in social media before Elon bought X that helped bring things back. But we were on a track, I think, before President Trump's election, to repeat that whole social media censorship apparatus in the form of AI bias or AI censorship. And we saw this with the whole Black George Washington and where some AI models were saying it was worse to misgender someone than-

   5. JCJason Calacanis17:51

      (laughs)

   6. CPChamath Palihapitiya17:51

      ... to have a global thermonuclear war.

   7. JCJason Calacanis17:53

      Yeah.

   8. CPChamath Palihapitiya17:54

      And this wasn't an accident, because if you go back to the Biden executive order on AI, there was something like 20 pages of language on there encouraging DEI values to be infused into AI models.

   9. JCJason Calacanis18:05

      Mm.

   10. CPChamath Palihapitiya18:06

       So again, we were on track to repeat all the social media censorship, all the trust and safety stuff...... in this new world of AI. But it would have been even more insidious because at least when someone gets censored, you kind of find out about it.

   11. JCJason Calacanis18:20

       It's explicit. It's not-

   12. CPChamath Palihapitiya18:21

       It's explicit.

   13. JCJason Calacanis18:22

       Yeah.

   14. CPChamath Palihapitiya18:22

       But with AI, it would have been worse because you wouldn't have even known. It would just be there rewriting history in real time to serve a current political agenda. It would have been brainwashing our kids.

   15. JCJason Calacanis18:32

       And people trust these AIs more than they should. I mean, these things are making a prediction of the next word coming. This is not like God-given truth here. And so, Freeburg, you wanted to interject-

   16. DSDavid Sacks18:44

       Sacks.

   17. JCJason Calacanis18:44

       ... there about this one? Because this is-

   18. DSDavid Sacks18:46

       Yes.

   19. JCJason Calacanis18:46

       Actually, I'll be honest, Sacks. I'm surprised you're saying this was the most important one to you. I like that you clarified it because it was the one that was mocked or kind of like people were like, "What? Why is this important?" And I think you made a good case for why it's important. Freeburg, your response? Yeah.

   20. DSDavid Sacks18:59

       But, Sacks, this is not about broadly making, quote, "AI" non-ideological. Private companies should still have the right through freedom of speech or freedom of expression or freedom to operate to make AI that does whatever they want it to do. What the EO was, was that the federal government would not procure ideologically biased AI.

   21. CPChamath Palihapitiya19:19

       Correct.

   22. DSDavid Sacks19:19

       Is that correct?

   23. CPChamath Palihapitiya19:19

       Yes, exactly.

   24. JCJason Calacanis19:20

       Yes.

   25. CPChamath Palihapitiya19:20

       No, we're, we're aware-

   26. DSDavid Sacks19:21

       Just to make sure that, that the federal government is not trying to instruct private companies how to operate.

   27. CPChamath Palihapitiya19:26

       Right.

   28. DSDavid Sacks19:26

       It's simply saying, "If you want to sell to us, this-"

   29. CPChamath Palihapitiya19:28

       Yes.

   30. DSDavid Sacks19:28

       "... these are the rules of the road."
4. 34:32 – 56:37

   Copyright, fair use, and patents in the Age of AI

   1. JCJason Calacanis34:32

      stuff. Sacks, I wanna, um, say there was one point of difference, if you wanna get into it-

   2. CPChamath Palihapitiya34:36

      Okay.

   3. JCJason Calacanis34:36

      ... around the, the, the content part of, part of it, where... And this is something that the press was having a, a field day with and they really keyed on, which was, hey, respecting IP, respecting copyright. What's the feedback been so far on that, which was a pretty spicy part of President Trump's speech?

   4. CPChamath Palihapitiya34:57

      Well, I think what the president said was just very pragmatic. He said we have to have a common sense approach towards intellectual property. And he said if you have to make a deal with every single article on the internet, every single website, every single book, every piece of IP, in order to train an AI model, it wasn't feasible. He said, "Look, I appreciate the work that went into people creating these works, but you're not gonna be able to negotiate a deal for every single one of them." And if we require our AI models to do that, and China doesn't, and they won't, they're just training on everything, whether it's, you know, pirated or not, then we're gonna lose the AI race. So I think he took the side of a fair use definition. I don't know if he used the term fair use, but effectively-

   5. JCJason Calacanis35:41

      No, he didn't. Yeah.

   6. CPChamath Palihapitiya35:41

      ... he was taking the side of a reasonable fair use.

   7. JCJason Calacanis35:46

      What did you think of that part, Dave Freiberg? You have any thoughts, or Chamath, on that part?

   8. DSDavid Sacks35:49

      I think he's absolutely right. I've said this before. If something's in the internet, if something's in the open domain, and I strongly disagree with the idea that AI getting trained is the same as AI replicating copyright material. If AI outputs text or outputs audio or outputs video that contains copyright material, it is 100% in violation of copyright.

   9. CPChamath Palihapitiya36:13

      And he said that, by the way.

   10. DSDavid Sacks36:14

       Yes. And if the AI is learning, it is understanding patterns, it is understanding reasoning, it is understanding concepts by reading copyright material, just like humans do. A writer, an author reads a bunch of fiction, learns good techniques, learns good concepts, learns good theory from reading all those books, and then goes and writes his or her own book, they are not violating copyright material in the same way that AI-

   11. JCJason Calacanis36:38

       What if it's all behind a paywall?... Friedberg. What if it's all- Oh, if- ... the New York Times content- No, if it's, if it's behind a- ... and it's not on the open internet? 100%, you're, you're 100% correct, that should be paid for or licensed. Okay. I'm talking about the open internet, I'm talking about open- Got it. ... material.

   12. CPChamath Palihapitiya36:50

       Common Crawl.

   13. JCJason Calacanis36:50

       I'm talking about stuff that's in the open domain. Which exactly-

   14. CPChamath Palihapitiya36:53

       Common Crawl. There's a thing called Common Crawl.

   15. JCJason Calacanis36:55

       Now, if there was, if somebody stole a hundred books, let's say, and put them on their website, and it was a pirated Russian website with a thousand books on it, and you accidentally crawled it, you would be obligated to take that out then. Correct.

   16. CPChamath Palihapitiya37:08

       I think we can all agree?

   17. JCJason Calacanis37:09

       Correct. Correct. Okay. 'Cause that's what a lot of the lawsuits are about. So I think we're m- reaching something. I just wanna say, I, you know, this is such an important point, especially to me as a content creator and somebody who spent his career in this. I've been thinking about the endgame and, um, I was... I'm here in Park City, I was just giving this, a keynote and I wanted to show you something I made. Sacks. 'Cause I think we have to get to the, the endgame here. So, in my talk, I talked a little bit about how can we get through this fight and then maybe getting to a solution. So, I had my team mock up the New York Times website here and ChatGPT doing a deal with them. So, here you see, you're on the New York Times website and you ask it a question powered by G2PT. You ask it, "Hey," you might ask this question, in fact. You log in with your ChatGPT credentials, your... and it could be Grok, it could be Gemini, "Give me the earliest mentions of Putin." You know, if you were a fan of Putin or something. And it would then go through that and give you your, your Put- Putin references. And then I made another one. And then obviously, this would be an exclusive to ChatGPT, it would be one of those things where, you know, they get an exclusive. And then here on the, uh, Disney+ channel, imagine you could make yourself into a, a Jedi knight, and you could then upload your photo. You know, kids might really get into this. You upload your photo, you can make... You talked about this, Friedberg, a couple of times, of the future of narrative storytelling. You up your photo, and then it makes you into a Jedi knight. There's, there's Darth Cal Kestis. So-

   18. CPChamath Palihapitiya38:32

       That looks to me-

   19. JCJason Calacanis38:32

       I mean, I'm curious-

   20. CPChamath Palihapitiya38:32

       ... like you're infringing on their trademark.

   21. JCJason Calacanis38:35

       What's that?

   22. CPChamath Palihapitiya38:36

       Are you infringing on their, their copyrights?

   23. JCJason Calacanis38:38

       This is fair use. This is fair use.

   24. CPChamath Palihapitiya38:40

       (laughs)

   25. JCJason Calacanis38:40

       This is a perfect example of fair use for editorial.

   26. DFDavid Friedberg38:42

       You're also infringing on some Ozempic. That's a-

   27. CPChamath Palihapitiya38:44

       (laughs)

   28. JCJason Calacanis38:44

       Absolutely.

   29. DFDavid Friedberg38:45

       ... that's pretty big.

   30. JCJason Calacanis38:46

       Trust me, I am definitely infringing on some Ozempic here. Guys, I'm, I'm past Ozempic. I'm onto peptides now, man. I'm on the Wolverine protocol, so look out.
5. 56:37 – 1:02:48

   Sam Altman highlights AI chatbot privacy issues

   1. JCJason Calacanis56:37

      still have all the news.

   2. CPChamath Palihapitiya56:38

      We should talk about this, this, um, AI privacy issue that Sam Altman mentioned.

   3. JCJason Calacanis56:41

      All right, that's a great segue 'cause I saw that as well, David Sax, and, uh, as our civil servant working on AI, this is something where you can-

   4. DSDavid Sacks56:49

      (laughs)

   5. JCJason Calacanis56:49

      ... have an additional contribution. There's more work we can give you.

   6. DSDavid Sacks56:52

      (laughs)

   7. JCJason Calacanis56:52

      All right, listen, here it is. AI user privacy is becoming an issue because friend of the pod, Sam Altman, says there is no legal confidentiality when using his product, ChatGPT. Here's a 30-second clip. Again, friend of the pod, FAP, Sam Altman, on Thiel-Vaughn.

   8. SASam Altman57:12

      People talk about the most personal shit in their lives to ChatGPT. Young people especially, like, use it as a therapist, a life coach, uh, "Having these relationship problems, what should I do?" And right now, if you talk to a therapist or a lawyer or a doctor about those problems, there's like, legal privilege for it. We haven't figured that out yet for when you talk to ChatGPT. So, if you go talk to ChatGPT about your most sensitive stuff and then there's, like, a lawsuit or whatever, like, we could be required to produce that, and I think that's very screwed up. I think we should have, like, the same concept of privacy for your conversations with AI that we do with a therapist or whatever.

   9. JCJason Calacanis57:45

      Okay, Sax, this is bringing up something-

   10. CPChamath Palihapitiya57:47

       Yeah.

   11. JCJason Calacanis57:47

       ... super important. What's your take on it?

   12. CPChamath Palihapitiya57:50

       Okay. Well, I, I think this is an interesting topic because, like copyright, this is an area where we have existing law, but it does make you rethink whether those laws are truly applicable or make as much sense in this new world. So, the existing law, the existing example is search history. You know, the government can get a copy of your search history. They can subpoena it.

   13. JCJason Calacanis58:14

       Yeah, every true crime story starts with, "The person searched for, 'How do I kill my husband slowly,' with, you know, poison," and then they-

   14. CPChamath Palihapitiya58:21

       Yeah.

   15. DSDavid Sacks58:21

       Yeah. That's how they catch them.

   16. CPChamath Palihapitiya58:22

       Right, exactly. The point is, though, that I think Sam is right about the legal treatment right now, which is that your chat history isn't any different than the search history in the eyes of the law, but it is much more personal, it's much more interactive than your search history. You are using it, like you said, you could use it as your doctor, you could use it as your therapist, you could use it as your lawyer. And so the ability for the federal government to be intrusive is so much greater than with your search history. So, I don't know what, like, the right policy should be yet, but I, I will say it does make me uncomfortable.

   17. JCJason Calacanis59:02

       Yeah, there's a market-

   18. CPChamath Palihapitiya59:04

       That-

   19. DSDavid Sacks59:04

       Can I make a recommendation to my AI czar?

   20. CPChamath Palihapitiya59:06

       Yeah. Can I make a favor? Yeah.

   21. JCJason Calacanis59:06

       Yes, please.

   22. DSDavid Sacks59:07

       He's our servant. Why don't we-

   23. JCJason Calacanis59:08

       Please.

   24. DSDavid Sacks59:08

       ... why don't we let AI models get bar certified and get medically certified? So, if the AI models, it turns out, are actually proving to be more accurate, more thoughtful, more responsive, more reasonable, whatever it is, whatever metric we're using, and they pass the same criteria as one would need to pass to qualify for the bar or to qualify for a doctor certificate, why don't we do that for the AI? If that then happens, then the same privilege accrues to the AI as it does to the individual human that does it. And now if you extrapolate from where that takes us, if we're suddenly giving AI the same sort of privileged rights that we give to privileged humans, where is that gonna take us ultimately with respect to the overall rights for AI?

   25. CPChamath Palihapitiya59:52

       Anyways, that's a longer form-

   26. JCJason Calacanis59:52

       Well, and they have responsibility. That... Hold on a second.

   27. DSDavid Sacks59:55

       Yeah.

   28. JCJason Calacanis59:55

       I just wanna point out here, once again, you have a mind-blowing concept here. I've never heard anybody vocalize that. Could they actually be certified in that knowledge? And if they passed the test, makes sense they would, but then you also get-

   29. DSDavid Sacks1:00:06

       Right.

   30. JCJason Calacanis1:00:06

       ... responsibility. So with great power-
6. 1:02:48 – 1:07:59

   Hot GDP print, Fed refuses to cut, major US-EU trade deal

   1. JCJason Calacanis1:02:48

      Okay. Fresh e- economic news. It's time for the administration to take their victory lap. GDP growth was 50% higher than expectations in Q2 as the Fed held rates at 4.25%. In Q1, GDP declined 50 basis points. That's probably due to the imports. People were stockpiling goods.

   2. CPChamath Palihapitiya1:03:07

      That's the most pointless chart ever.

   3. JCJason Calacanis1:03:09

      Okay. And then, yeah, it is. I agree. It's a little bit, yeah.

   4. CPChamath Palihapitiya1:03:11

      It's distorted by one of the-

   5. JCJason Calacanis1:03:13

      That- that's my fault. I wanted to have both.

   6. DFDavid Friedberg1:03:14

      (laughs)

   7. JCJason Calacanis1:03:14

      I wanted to have both as bar charts. This one, because of the-

   8. DFDavid Friedberg1:03:16

      You're totally on drugs. Just say it. It's okay.

   9. JCJason Calacanis1:03:18

      What al-

   10. CPChamath Palihapitiya1:03:18

       What drugs are you on, Nick?

   11. DFDavid Friedberg1:03:20

       No, I mean-

   12. JCJason Calacanis1:03:20

       I'm not. I had coffee and an app.

   13. CPChamath Palihapitiya1:03:22

       He's alped up.

   14. JCJason Calacanis1:03:22

       I'm ap- I'm aped up.

   15. CPChamath Palihapitiya1:03:23

       He's alped up. (laughs)

   16. DFDavid Friedberg1:03:23

       We're all friends, you can tell us. Is it really just alp?

   17. JCJason Calacanis1:03:25

       All right, that's it. I'm taking it out.

   18. CPChamath Palihapitiya1:03:27

       (laughs) Oh my God.

   19. JCJason Calacanis1:03:28

       I took it out. And now let's get back to the thing here.

   20. DFDavid Friedberg1:03:31

       (laughs)

   21. JCJason Calacanis1:03:31

       Okay. The Fed kept rates unchanged for the fifth straight meeting. This time, two out of 11 Fed governors dissented from Powell's decision. Two of the dissenters were both Republicans nominated by Trump, so it seems like the Fed is becoming a little polarized now too. First time in 32 years that more than one governor dissented and, um, yeah, even one person dissenting is rare. Here's a 25-second clip of Powell explaining how GDP factored into the cut decision. Nick, please play the clip.

   22. JPJerome Powell1:04:00

       Recent indicators suggest that growth of economic activity has moderated. GDP rose at a 1.2% pace in the first half of this year, down from 2.5% last year. Although the increase in the second quarter was stronger at 3%, focusing on the first half of the year helps smooth through the volatility in the quarterly figures related to the unusual swings in net exports.

   23. JCJason Calacanis1:04:25

       The PCE index, and then I'll throw this over to you, Sax, for, for the official position here, uh, for June dropped on Thursday. PC is the Fed's preferred gauge of inflation over CPI. PCE rose 30 bps in June in line with estimates and, um, if you remember, we talked about it in a previous episode, CPI rose a bit, 13% or 30 bps from May to June. So we're not any, we're not close to the 2%, uh, target. And that's what the Fed keeps saying, "We're not there yet." And the economy is el fuego. Sax, you know, I don't know if you noticed this, Sax, but people are talking about the QDP, Q- the second quarter print, which was amazing for GDP. You were talking about it a bunch, Chamath, on the socials. He keeps referencing the first half, so he's trying to blend those two together, I think because of the, the tariff differences or you know, maybe to, to smooth it out as he said. What's your take on this? Uh, the GDP boomed in, you know, 3%, which is pretty great, but is that-

   24. DFDavid Friedberg1:05:20

       The, the problem ... No, the problem that Jerome Powell has is that he's trying to smooth it because it allows him to justify his political decision.

   25. JCJason Calacanis1:05:30

       Okay.

   26. DFDavid Friedberg1:05:31

       But the reason why you have to segregate Q1 and Q2, Q1 was before tariffs and Q2 was after tariffs. So I think you have to segregate these two things. And if you look at the run rate from Q2, what you're probably gonna see in Q3 and beyond is more similar to Q2, which is to say, a large surplus, good GDP expansion, and moderating inflation. So why does the Fed not cut? Because at this point, not cutting is the only thing that you can do to slow the Trump administration down going into the midterms if you wanted to politicize the job. If, however, on the other hand, you just take the data as is, and you ignore Q1 because it was pre-tariff and you start to look at Q2 and you project forward, if you inject 100 basis point cut into the economy, this thing is gonna go gangbusters and Trump is gonna look like an economic genius going into 2026. So I think that, again, in the absence of politics, you cut.

   27. JCJason Calacanis1:06:32

       Okay. Sax, what's the take from inside the administration and around it? I know you're not speaking for the President on this issue, but you're in the administration, so I'm assuming you're, you're con-

   28. CPChamath Palihapitiya1:06:40

       Yeah, look, I'm not speaking for anyone, but obviously the 3% number is way ahead of expectations. It's a fantastic number. It just feels like, you know, everything's humming on all cylinders here. The one thing you didn't mention, but I think is relevant is the new trade deal with the EU, which-

   29. JCJason Calacanis1:06:55

       We're about to get to that, by the way. That's the next story.

   30. CPChamath Palihapitiya1:06:58

       Oh, okay. Well, I mean, I would include that because-

Episode duration: 1:23:50