00:00Off camera, we were talking, you know, I've tried to make sense this week of where the United States currently
00:05stands as it relates to China in the context of technology.
00:09Earlier in the program, we spoke with David Sachs about just that.
00:13Your sense of the balance right now in closer economic cooperation with China while considering them in the technology context
00:21to continue to be an economic adversary.
00:25Yeah, there's a lot going on when it comes to conversations in D.C. and in Silicon Valley about the
00:32United States leading in technology.
00:34And you're right, all of that is within the context of making sure that we're winning this so-called technology
00:39race with regard to China.
00:41And I think that's really important.
00:43And I think it's important also that we have a common picture and an understanding of what winning means.
00:48You referenced your interview with David Sachs yesterday, and I think he put it really well.
00:52It's market share for American technology or allied technology, ultimately trusted technology.
00:58And I think that's really important.
01:00However, the big challenge there that I think isn't talked about enough is that if you look at market share
01:06of artificial intelligence, there's a concerning trend growing with Chinese models.
01:12And specifically, their open weight and their open source models, which are cheap.
01:16They're good enough.
01:17And if you look at the trend just about a year ago, 15 months ago, Chinese open source models were
01:24essentially a negligible part of world AI usage.
01:28Fast forward to 15 months later, end of 2025, all of a sudden, they're going from 1% to almost
01:3630% of global token usage, world AI usage all of a sudden.
01:40And so they're cheaper, they're good enough.
01:43And the Chinese are very focused, not necessarily on having the best models, but on having the most used.
01:51And so I think the United States, when we're talking about Silicon Valley and Washington, D.C. connecting, need to
01:56make sure that not only do we have an innovation strategy, we've also got a really big distribution strategy.
02:02We're going to hear later in the program from someone who is a China hawk, but maybe a different definition
02:08of a China hawk.
02:09That's Vinod Kostler.
02:10The reason I wanted to talk to David Sachs about the Presidential Council of Advisors for Science and Tech is
02:16look at who's on it.
02:18Those are companies that either at one time had a big market share in China or would love to export
02:24their technology to China.
02:26With something like PCAST, is it realistic that a sitting president's thinking or the policy of the administration of the
02:33day actually gets influenced by those that are a part of it?
02:39Yeah, I think the bridge in the conversation between those tech leaders and Silicon Valley leaders in general in Washington,
02:45D.C. has increasingly been fortified.
02:48And those conversations were happening anyway.
02:50I think PCAST and that group of advisors is now going to accelerate that.
02:54But it's not new, and that conversation and the back and forth on policy has already been taking place.
03:01And I think that's really important, and that bridge is really important.
03:04At the same time, let's not forget that we also have to keep in mind every American in between Silicon
03:09Valley and Washington, D.C., when it comes to technology,
03:12they're focused on jobs, they're focused on the energy requirements and data centers being built in their backyard.
03:18So that's also really important, as are our allies, because AI ultimately is borderless.
03:23And the only way that the United States is going to lead is by working hand-in-hand with our
03:27allies as well.
03:28Let's go back to Iran.
03:30You know, we said that when the president travels to China, depending on where we are in that process, they
03:35will likely discuss the war in Iran.
03:37Why does it matter quickly that the U.S. get China's view on this?
03:42Well, I think, look, they're one of the leading economies.
03:46They have a lot to do with our own economy, oil prices and things like that.
03:50And so, you know, making sure that we're on the same page is good for American strategy.
03:54And I'd say, you know, we're seeing a big role that technology is playing in Iran as well.
03:59And so all of that is part of American technological leadership and dominance and ultimately bringing this war to a
04:06victorious end as soon as possible.
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