Huang out... and gets an offer | Hour 2

What's going on? Thank you so much for listening to this podcast. It is heard live every day from noon to three on WBT radio in Charlotte. And if you want exclusive content like invitations to events, the weekly live stream, my daily show prep with all the links, become a patron, go to the Pete calendar show.com. Make sure you hit the subscribe button, get every episode for free right to your smartphone or tablet. And again, thank you so much for your support. So the world's most powerful AI executive. Jensen Huang, Huang, sorry, Huang, is out as the founder and CEO of NVIDIA. They make the chips. The chips are, as I mentioned earlier, very important because of their useful applications. That's really the limit of my technical expertise on the matter. I don't, I do. Accept as true that there is a race to lead in the AI space between America and China. I believe the evidence is very clear that China has been funding a whole bunch of different efforts to thwart our AI development. They want to catch up to us. They are so far behind and people think, and when I've talked about this before with regard to data centers, because that's another front in this war, people, they want to just dismiss data centers as like, oh, that's just so you can stream stuff on your TV. Oh, that's just for the internet access and all that. It is far more than that. The way a data center. Operates basically, unless like you are like open AI, for example, um, which people now refer to as closed AI because it's, it hasn't lived up to its promises, uh, when it was founded to be open. Um, like they, they, um, they have their own, they build their own data centers. Google builds its own data centers. Right. Um, but there are data centers that also get built by private Companies that that's all they do is build the data center and then they rent out racks of compute power. So this way, you know, Atrium Health or Novant Health, right? They need all of the cloud storage for all of their, you know, online applications, all of their records, everything like that. So they need to store all of this stuff someplace and they need to run all of their systems based on computing power. And so they will rent space, basically. So this is not just about. Large learning. Models like the LLMs, like ChatGPT. This is not just about Copilot or Gemini or whatever. That is one. Factor or product, I'll say, in a very large portfolio of things that need computing power. And There are applications that are national security related. There are applications that are military related. So if China gets the kind of compute power that we have, then they are able to scrape all of the data out of basically all of the internet. That's, I mean, that's the goal here, right? Like, even your large language models, right, what do they learn off of? They learn off of everything online. And this was a problem, remember, when the first generation of this stuff first started coming out, and remember, they started, like, you could type into chat GPT, like, give me a picture of the, what was it, the, was it World War I? No, what was it? I forget the Vikings, something like that. Show me, show me a rendering of the Vikings or something. And the model would kick out an image and they would be like black people wearing Vikings attire. You remember that? Remember those types of stories, those images that were being produced because the people that were writing the code at the time, which like nowadays are, like my understanding is that there really aren't people that are like writing code so much because AI is writing it itself. And so. It would just spit out this woke infused garbage, right? Why was it doing that? Well, it's scraping information out of all of the stuff that's online. Remember there were fights about like, If you're using, you know, ChatGPT to help you write emails or something or look through your bank account to do a household budget, right? When you are giving it access, it's now scraping all of this information, which it kind of has to do, right? If you're trying to do like a household budget, it has to scrape all that information. And then it teaches itself, it learns off of this information. Now, imagine that at a scale in China, that is manufacturing stuff that may have chips and whatnot in various other products that then get shipped all around the world, and now they may be scraping data from customers who bought a laptop and never wanted to be part of some Chinese LLM or AI program, and now they're having all of their stuff scraped and used. And then you can see, obviously, the national security implications for this stuff. What did we learn about the refrigerators? A couple days ago in France, all these commercial refrigerators and grocery stores all shut down. It was a hack job, right? That's the kind of vulnerabilities that exist with the AI of everything, with the Internet of everything. That's my understanding of some of the risks here, okay? Now, there are a lot of upsides. You got, like, for example, you can tell some AI program, you can say, hey, you know, go back and look through every peer-reviewed study on, I don't know, vaccines, let's say. I'm not getting into the vaccine discussion. But, like, and give me an analysis of, you know, what all of the peer-reviewed stuff says. And so you can do, like, a massive amount of research in minutes. and get a conclusion, right? And then replicate that out into highly technical medical testing, breakthroughs and stuff. This is the promise of AI. This stuff can actually make our lives better. And the proponents of AI... they are very bullish on what AI is going to be able to do. And I've talked a little bit about some of those predictions and we don't know if that stuff is going to come true. There could be, you know, catastrophe. I don't know. There's probably going to be a lot of disruption. Like grids could go down. Like this is the stuff that could be coming, which is why you should be prepared. Folks be prepared. Seriously. And that's just smart. You never know when a society gets destabilized. Anyway, this one guy who has zipper issues in charge of NVIDIA may have been, uh, well, he's compromised, let's say, right. Compromised by a, what people are assuming to be a, a Chinese spy named Alice Huang, same last name, no relation. I hope, um, She's an executive at one of NVIDIA's customers, a company called Megaspeed. And I saw this morning some reporters went over to, I believe she's in Singapore, or the company is located in Singapore. They went to the company, and it's like this little storefront, and there isn't anybody in there, and there's no engineers. It's like, okay, so this is obviously a front, right? So China's been buying these chips through these cutouts. because the US government has told NVIDIA, nobody can sell these advanced chips to the Chinese. And China has been hamstrung by this, much like they want to hamstring us on. The minerals, right? What are they called? I forget. Rare earth minerals, right. They are going around the globe, buying up all of that. Why? So they can control that entire manufacturing process because they will control the natural resource, right? By the way, spoiler, rare earth minerals, depending on the mineral, they're not actually that rare. So I don't know why, I don't know how they got that name. So that's why they want to control the rare earth minerals. They get that part of the production chain. But the chips, they can't build themselves. And there are all sorts of restrictions against giving the Chinese that technology. And NVIDIA has argued that if you shut us out of the market, that's going to make China just race forward and figure it out themselves. So might as well just give them the chips. They won't try to then build their own. That was the debate. Legitimate debate, but didn't work. The holidays will be here before you know it, and so now is the time to create precious and priceless family heirlooms that will last for generations. Take your old photos, slides, films, and tapes to Create-A-Video in Mint Hill. There, they'll turn those memories into the story of your lives, memories from past family events captured forever to pass down to future generations. Create-A-Video's skilled team will professionally transfer your family's stories onto easy-to-use USB drives or DVDs that won't deteriorate over time like the old photos and tapes are doing right now. They will create a keepsake video that you can share and copy and keep forever. I can see it now. You're gathered around the holiday table with your loved ones, watching all these memories and people of your lives. You're sharing laughs, maybe some tears, telling stories that make your family uniquely yours. Beat the holiday rush and get your memories in now. Go to createavideo.com or visit them in Mint Hill just off I-485. Your photos and videos are your life told through the eyes of everyone around you and all who came before you. And they will tell others to come who you are. Visit createavideo.com. Rick on the text line says, Pete, thank you for being our AI for us so we don't have to do it. Appreciate the breakdown. I am a giver. That's what I do. You're welcome, Rick. Pleasure is mine. Paul says, Pete, I bet the NVIDIA guy is starting to think that she was the Wong one. Probably so. Yeah. Probably the wrong Wong. So this from Axios. Huang, who has led NVIDIA... since founding the chipmaker 33 years ago, has become the AI boom's chief evangelist and most authoritative voice. Huang confessed to the affair in a letter to staff on Sunday, apologized to his family as NVIDIA's board launched an independent probe into the suspected Chinese intelligence operation. U.S. Officials believe Alice Huang, Huang. No relation, who is an executive at an NVIDIA customer called Megaspeed, was recruited by Beijing's top spy agency to gather information and potentially influence NVIDIA's campaign to expand advanced chip sales into China. Because again, they are lagging behind us in the AI race. They are trying to build as many data centers as they can, but they can't get the tech inside the data centers. That's been their choke point. NVIDIA's board said at the time that they did not know. if there was any national security or company secrets that got compromised, and they were like, oh, we have confidence in him, and then they ousted him. Now, the Trump administration reportedly knew about the suspected Chinese intel operation long before it became public. Trump was reportedly briefed in 2025, according to the New York Times, and Secretary of State Marco Rubio personally oversaw a classified intelligence memo warning senior officials this spring. See, again, though, that we don't know for sure. And Jensen Huang, he has said he would testify before Congress. And so maybe we'll get some answers coming out of that. There's no public evidence that Huang's relationship influenced his advocacy for selling to China. He has long advocated. He's like, we got to sell to China. That's a marketplace for us. And if we don't sell... to China, our chips, they will then go and build their own manufacturing industry. And they have not been able to do that, but that was his pitch, okay? And some people agree with that. Some people do not. It's a legitimate debate. But if you sell them the chips, then they're going to be able to make advancements to catch up closer to us on their computing power. And as they do that, they're probably going to then start reverse engineering the chips and they're going to constantly be trying to manufacture their own chips. Now, something interesting happened after Huang was ousted, okay, after Huang was out. Elon Musk made him a job offer on Twitter, formerly known as X, right? Jensen Huang left NVIDIA, and the first one to reach out to him was Elon Musk, who said publicly it would be an honor to hire him. I've quoted this guy before. He's a French tech entrepreneur named Breville Leporam, and I like quoting him because I like saying his name. It has increased my French vocabulary by 33% because I knew hors d'oeuvre. And I knew, sorry, I also know rendezvous. So that's four. So it increased my French vocabulary because now I can say, sorry, that's his, that's his name. So anyway, his analysis. Now he is, he is definitely like on the pro AI side. Okay. And But he also talks about things in sort of larger philosophical ways, which I appreciate, which is what I try to do as well. Like we'll talk about topics and stories and news events and stuff. But in case you haven't noticed by now, I usually try to bring those things into what is the larger issue at play, right? And so that's what he does. I'll tell you what he has to say about the 1% here. Very interesting. All right, real quick. Every government number gets revised, right? Every projection gets walked back. Gold does not file corrections like GovCo. Revelation Gold Group helps families hold physical gold and silver, including in a tax-advantaged gold IRA. It's real. It's in your name. And 10 minutes tells you if your retirement account qualifies. If you want to learn more, go to calendarmetals.com. That's calendarmetals.com. There is a link in the podcast description. Or if you want to talk to somebody, you can call 888-465-3049. So Brevard Lepogram, a French tech entrepreneur, founder of Argile AI, took notice of the job offer that Elon Musk made to Jensen Huang, who left the company he founded and led for 33 years, NVIDIA, amid the scandal of the The affair with a person with the last same name, Huang. I've heard it pronounced both ways. By the way, I just want to say, I think I have shown remarkable restraint. Okay? I could be making so many jokes. So many double entendres. We're up into like triple and quadruple entendres here. Okay? I could. I could be saying so many other things. I have shown remarkable restraint. Unlike some of you people on the text line. But I have enjoyed them. Okay, so that's not an invitation for more. It's not. I've seen all of them. Or I'm getting duplicates now, okay? Duplicate double entendres, okay? I've seen them. All right, so. Le Pogon says on a lengthy post on Twitter that Elon Musk publicly offered Jensen Huang the opportunity to work with him, I think specifically because Elon Musk wants to build a chip manufacturing facility. Okay? And this is what Le Pogon says. The 1% recognizes the 1%. What is he talking about? Is he talking about trillionaires and billionaires? No, he's not talking about that. He says there's a law that runs through all of human history, and almost nobody sees it, the 1-9-90. Law. Now, I admit I have never heard of this law. I feel like I would have heard about the law, but there are a lot of laws, so I may not have heard of this one. But here's how he describes this 1990 law. 1% create the value. 9% comment on it, take it, or envy it. 90% help the 1%. you. 9% comment on it, take it, or envy. It. 90% help the 1% build and mostly just want a peaceful life. He says, look at any free system, a company, a social network, an entire economy. The distribution is always the same. And throughout history, the 9%, the ones that comment on it, take it, envy it, the 9% have always won. Not because they create, but because they control the narrative, the law, and the gate. He gives some examples, people throughout history, 1451, Jacques Royer, the richest man in France, built a trading empire from the Mediterranean to Bruges, and personally bankrolled the reconquest of Normandy for King Charles VII. His reward for doing so was that he was arrested, tried, his fortune seized, and redistributed to the very people who brought him down. He gives other examples throughout history. It's all the same reflex, he says. When a creator gets too powerful, the 9% brings him to heel. That's the fight we are watching right now, he says. Except this time, something has changed. For the first time in history, the 1% can create so much value that the 9% becomes useless, visibly useless. Elon Musk is leading the way on this. He says when a single entrepreneur produces more value than an entire bureaucracy, one question becomes unavoidable. What exactly is are the commentators for? What is it you say that you do here? Right? And that's their nightmare, not AI. So what will they do? Well, same playbook as always, in three moves. First, expropriate. Not with tanks, but with taxes. That's the first step. Second, and you already hear this, right? The whole Democrat Party is running on this very idea. Soak the rich, eat the rich, take all their money. Nobody should be a billionaire. Nobody should be a trillionaire, right? All of that. Step two, make the technology impossible to build. Hello, nuclear, right? We see this, right? The precautionary principle. This is at play as well. You throw up so many barriers that no advancement, no development research can be done. And so everything stagnates because Government controls, the bureaucracy controls the permitting, right? Mandatory licenses. Setting thresholds for compute power. Restrictions on open models of AI. This is, by the way, at the heart of this, according to Le Pogon, is this fight over open versus closed AI development. What does that mean? Well, open means. Individual entrepreneurs can get access to the AI technology and they can build their own systems. And then they can use those systems to work towards other types of inventions or efficiencies and that sort of stuff. Closed means everybody is locked out of the most powerful computing power. And so you have to then buy compute power from the few monopolies that would exist after the government steps in and closes the gate. And that's why you've got companies like Anthropic that are pushing these doomsday scenarios. Oh my God, our product is so powerful, it could wipe out everything, right? Well, why would you be saying that? Why would you just like you could just stop. Right. But it's like, oh, my gosh, somebody stop me. Right. Like, well, you can just stop. So they're not stopping, but they're telling everybody that the dangers are so great. Why are they doing that? To to prompt the bureaucrats to step in. prompt government to step in, close the gate, and say, okay, these big companies tell us how to regulate you appropriately, safely, for everybody's safety, right? So we're going to regulate you guys. You guys then get to be basically a protected monopoly, and that then allows you to operate at a loss, and we will subsidize it because now you are national security, too big to fail. And it shuts the gate on all of the competitors. They won't be able to compete. They won't be able to comply with all of the regulatory framework that the big companies with their army of lawyers can, they can navigate all of that stuff and they will write the laws where they'll be able to comply, but the smaller operators won't. And that's how you get a monopoly. So that's, that's inside the industry that's going on right now. That's, I think the fight going on in the industry. They don't want the competition, and their finances are not great. Some of these companies, the big companies, right? So they want to be able to sell all the compute power through the data centers, basically, and then get the gate closed so nobody else can get into the market. And that's the third step is to regulate. Let me jump over to the phones here and chat with Dave. Hello, Dave. Hello. Yeah, I got a situation. Okay, I used to work at Amazon. Got terminated because they decided they were going to try out Oculus Robots at the warehouse in Greensboro, okay? Okay. What were you doing? So what were you doing? What was the job? Doing shipping and receiving. Like loading trucks or something? Yeah, loading pallets. And then they put certain pallets. You would have boxes that had numbers on them. You'd put them in certain places. You'd get a piece of paper. Anyway, these AIs come in there. They can't join the union. They don't have to pay them. They can work overtime. They can work more than 12 hours without stopping. So basically, my job went out the window. So when we just had the election, I asked the Democrat and the Republican candidates that were running for Congress and Senate for this district's What are they going to put in place for the people like me that are going to be in the future? Mass layoffs are going to happen. We don't have food stamps available. We don't have Section 8 health available. We don't have anything programmed in place for when these AIs take all the jobs. And this one guy, a friend of mine, was at Walmart. And he said they are self-driving Volvo trucks from Greensboro, as a matter of fact, are being tested. And they put someone on the passenger side because they can drive 12 hours. A human has to drive 12 hours, stop, and rest 12 hours and drive again. Well, now these semis are going from North Carolina to California. They can drive nonstop because they're self-driving vehicles. They just have someone that rides in the passenger seat that gets out and gets gas and everything. Mm-hmm. So, you know, this is coming, and when it comes in, we'll be planning in place. I'm worried that they're going to start doing it now because once these tests are done and they start with you, every way you look, you have obvious robots working in these warehouses, self-driving trucks. Hey, Uber and Lyft are having this problem now in California. They have the self-driving testers that are doing this forever. So that way they don't have to pay for the Uber and Lyft driver. Okay. All right. I got your point. So what are you doing now? Unemployed, drawn unemployment, but that's only for a certain amount of time. Right. What are you, what are your, what are you qualified to do? Are there certain things that you could. Warehouse warehouse staff and then warehouse storing? Like I was doing previously at Amazon. How old are you? Um, 26. You're only 26. Yep. Okay. So that's good. Amazon paid good. And yes, hours and paid off my car and my house. No, that's great. Yeah. Right, yeah. So, at age 26, are you interested in studying something else, or were you intending to work at a warehouse until you could, like, physically not do the job anymore? Actually, not to interrupt you, but actually, the thing that took my job is what I'm going to study. There you go. There you go. That's a great idea. The only problem is... All those people that got laid off, everybody can't be doing AI technology. No, no, everybody's going to do something that they want to go do. So here's the thing. So this is what we're talking about is a thing called creative destruction, and it happens in all free market systems, right? And I mentioned this the other day. This is the classic economic example of the buggy whip maker, right? When the automobile was invented... And they started replacing horse and. Carriages, right? There were people that used to make buggy whips, right? The whip that you would hit the horses with to make them walk and you would ride your buggy, right? So the buggy whip maker. Well, when the car was invented, then people did not use the buggies anymore. They did not use horse and buggies, right? And that meant the buggy whip maker went out of business, You don't see them anymore. So that entire job was eliminated. Oh, yeah. Right? But did all those people starve to death? Did all those people not go to work, do something else? Actually, you might be surprised. Most of us are not employed yet. That what? Most of you are not employed? Yeah. Right. Well, for right now, I don't know. When did you get laid off? December of last year. You've been on unemployment for 10 months? Yep. You go in, you put out a card that says you're looking for a job. Oh, I'm aware of the process. I've done it two different times. I work in radio, so I'm aware of how that works. Yeah, yeah, yeah. My job is a very volatile industry. So I know the process, but even when I was laid off during the recession and then as COVID hit, um, I was not on unemployment for almost a year. I think it depends on your status, how you got laid off. I really do. Well, I, I, I. Encourage you to pursue your studies in, in a, uh, in a sector that has, uh, growth potential. So I applaud you for going after the AI stuff and trying to find something in that realm. That's a good idea. All right, that'll do it for this episode. Thank you so much for listening. I could not do the show without your support and the support of the businesses that advertise on the podcast. So if you'd like, please support them too and tell them you heard it here. You can also become a patron at my Patreon page or go to the Pete Kalinor show.com. Again, thank you so much for listening and don't break anything while I'm gone.