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Stephen Schwarzman: Going Big in Business, Investing, and AI | Lex Fridman Podcast #96

Stephen Schwarzman is the CEO and Co-Founder of Blackstone, one of the world's leading investment firms with over 530 billion dollars of assets under management. He is one of the most successful business leaders in history. Support this podcast by signing up with these sponsors: - ExpressVPN at https://www.expressvpn.com/lexpod - MasterClass: https://masterclass.com/lex EPISODE LINKS: What It Takes (book): https://amzn.to/2WX9cZu PODCAST INFO: Podcast website: https://lexfridman.com/podcast Apple Podcasts: https://apple.co/2lwqZIr Spotify: https://spoti.fi/2nEwCF8 RSS: https://lexfridman.com/feed/podcast/ Full episodes playlist: https://www.youtube.com/playlist?list=PLrAXtmErZgOdP_8GztsuKi9nrraNbKKp4 Clips playlist: https://www.youtube.com/playlist?list=PLrAXtmErZgOeciFP3CBCIEElOJeitOr41 OUTLINE: 0:00 - Introduction 4:17 - Going big in business 7:34 - How to recognize an opportunity 16:00 - Solving problems that people have 25:26 - Philanthropy 32:51 - Hope for the new College of Computing at MIT 37:32 - Unintended consequences of technological innovation 42:24 - Education systems in China and United States 50:22 - American AI Initiative 59:53 - Starting a business is a rough ride 1:04:26 - Love and family CONNECT: - Subscribe to this YouTube channel - Twitter: https://twitter.com/lexfridman - LinkedIn: https://www.linkedin.com/in/lexfridman - Facebook: https://www.facebook.com/LexFridmanPage - Instagram: https://www.instagram.com/lexfridman - Medium: https://medium.com/@lexfridman - Support on Patreon: https://www.patreon.com/lexfridman

Lex FridmanhostStephen Schwarzmanguest
May 14, 20201h 10mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Stephen Schwarzman on Going Big, Pattern Recognition, and AI’s Future

  1. Stephen Schwarzman discusses his philosophy of ‘going big’ in business and life, arguing that large, consequential opportunities create a virtuous cycle of talent, resources, and impact. He explains how pattern recognition, intense listening, and solving other people’s biggest problems underpin his investing, negotiation, and leadership style. The conversation explores his approach to philanthropy, especially his role in launching MIT’s College of Computing, and his concerns about AI ethics, U.S.–China technological competition, and the social consequences of the internet. He also offers candid advice on entrepreneurship, humility, relationships, and sustaining personal values and family life while pursuing ambitious goals.

IDEAS WORTH REMEMBERING

5 ideas

Target large, consequential opportunities rather than small ones.

Schwarzman argues it’s just as hard to build a small business as a big one, but big opportunities provide more room to pivot if you’re partly wrong and generate enough value to attract top talent and resources.

Use pattern recognition to spot ‘lint on the dress’ anomalies.

He focuses on small facts that don’t fit the usual pattern; investigating one or two such ‘discordant notes’ often reveals important shifts or untapped opportunities others ignore.

Listen intensely to uncover what people really want and fear.

By observing tone, facial expression, posture, and inconsistencies between words and intent, you can infer people’s true priorities and design solutions they haven’t articulated yet.

Create value by solving others’ biggest unresolved problem.

Before meeting someone, he mentally steps into their role, identifies their top unresolved issue, and prepares fresh solution ideas; this service-oriented approach builds trust and long-term influence.

Treat philanthropy like building a new business, not writing checks.

He looks for under-addressed, society-wide issues (like AI leadership and ethics), designs new institutions or initiatives around them, mobilizes people and capital, and only then funds the vision.

WORDS WORTH SAVING

5 quotes

If you're gonna do something, do something very consequential.

— Stephen Schwarzman

I always see the lint, and I'm fascinated by how did something get someplace it's not supposed to be.

— Stephen Schwarzman

Most people give themselves away, no matter how clever they think they are.

— Stephen Schwarzman

Using AI to make this kind of mistake twice is unforgivable.

— Stephen Schwarzman

People don’t become successful as part-time workers. It doesn’t work that way.

— Stephen Schwarzman

Philosophy of ‘going big’ in business and lifePattern recognition, outliers, and deep listening as decision toolsProblem-solving as a way to build trust and influencePhilanthropy strategy and the creation of MIT’s College of ComputingAI ethics, social media harms, and governance challengesChina’s culture, system, and AI/computer science education pushEntrepreneurship, humility, and balancing ambition with family and relationships

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