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Pivot

Elon's OpenAI Bid, Trump's Judicial Strategy, and DOGE's Shock and Awe

Tue, 11 Feb 2025

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​​Kara and Scott share their reactions to Elon Musk calling them "cruel, mean, & deceitful human beings." Then, they dig into Elon (and a group of investors) making a $97 billion bid for control of OpenAI, and what exactly will come of it. Plus, Trump's latest tariff threats, and his master plan to discredit judges and weaken the judiciary branch. Follow us on Instagram and Threads at @pivotpodcastofficial. Follow us on Bluesky at @pivotpod.bsky.social Follow us on TikTok at @pivotpodcast. Send us your questions by calling us at 855-51-PIVOT, or at nymag.com/pivot. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Transcription

Chapter 1: What did Elon Musk say about Kara and Scott?

0.269 - 14.356 Kara Swisher

On this week's episode of Net Worth and Chill, I'm chatting with internet sensation and everyone's favorite Philly influencer, Bran Flakes. He's a social media maverick and content creator turning viral moments into cold, hard cash. Listen wherever you get your podcasts or watch on the Your Rich BFF YouTube channel.

0

15.057 - 18.418 Scott Galloway

Oh my God, I can't go to a sex movie with you. I just, that just flashed through my brain.

0

18.438 - 24.041 Kara Swisher

That wasn't on my bingo card either. So yeah, that's, that's not going to happen. Yeah.

0

27.833 - 34.316 Scott Galloway

Hi, everyone. This is Pivot from New York Magazine and the Vox Media Podcast Network. I am the very cruel Kara Swisher.

0

34.777 - 36.537 Kara Swisher

And I'm the deceitful Scott Galloway.

36.918 - 39.619 Scott Galloway

Yeah, and we're both mean, right? We're both mean.

40.059 - 40.98 Kara Swisher

Yeah, I know. We're awful.

41 - 42.581 Scott Galloway

That one's accurate. Don't you think?

43.121 - 45.022 Kara Swisher

The revolution begins with two podcasts.

Chapter 2: What is the significance of Musk's $97 billion bid for OpenAI?

102.076 - 105.559 Kara Swisher

And he goes after you. Of course. It's like, okay.

0

105.6 - 108.042 Scott Galloway

I'm always taking a bullet for you, Galloway.

0

108.703 - 135.686 Kara Swisher

I said these things, Elon, not Kara. And he's acting like these individuals. First off, can the guy not afford autocorrect? It's like his team or grammar, pick a struggle. And the notion that there's somehow these, he portrayed this team as being in Guantanamo Bay when the reality is they're on a Discord server figuring out if their logo or their meme should have sunglasses.

0

135.806 - 144.448 Kara Swisher

I mean, to portray these kids as victims is just kind of hilarious. But I did feel bad that he went after you and not just me.

0

144.468 - 150.93 Scott Galloway

I know, of course. Well, I am pretty obnoxious about him all over the place. So it probably like glommed up into one thing.

150.95 - 151.99 Kara Swisher

He didn't say anything.

152.21 - 177.701 Scott Galloway

I know, but in general, on CNN, where I call him a toddler, an adult toddler on any day of the week and twice on Sunday or anything, just us threatening him. But here's the deal. First of all, all you said, and I tend to agree with, is, you know, from the reporting, the exceptional reporting by Wired, for example, these guys, a couple of them sound like a prick, right? And we said it.

177.861 - 195.206 Scott Galloway

These people sound like pricks. They're doing something that's probably fun for them. They get to work for Elon Musk. They get to like raid the government or everything else. We just, we're like, this is not the way we should make sausage in our country. It's really gross how they're doing it this way. And they need to do it in a legal way. That's all we said.

195.446 - 214.014 Scott Galloway

And he tries to insinuate that we're threatening them. Because as I say, everything, every accusation is a confession by these fellas. And let me just read the thing again. for people who don't understand, he reposted a video of us talking about Doge employees in our last episode.

Chapter 3: How does Trump's judicial strategy affect the judiciary?

330.848 - 333.61 Scott Galloway

Yeah, I get it. I understand. I do attack him.

0

334.07 - 339.294 Kara Swisher

I realize you don't need protecting. I don't. I just found it. He puts your name first like you did that. I was me.

0

339.864 - 359.983 Scott Galloway

Well, he likes to do that. You know, but let me just say about the death threats. You know when I got death threats? When he said my heart was seething with hate. Remember with Yoel Roth where he said Yoel was evil and my heart was filled with seething hate. I got, should he have not done that? I didn't like bitch and moan about that. And I got a lot of really frightening comments.

0

360.243 - 376.507 Scott Galloway

Stuff aimed at me when he does it every time. So, you know what? And instead he bitches and moans about it. Well, I'm bitching and moaning now. Guess what? I got death threats. Guess what? I can handle it. It just is, again, a larger strategy of intimidating journalists and other people who speak out and disagree with him.

0

376.867 - 394.837 Scott Galloway

President Trump called for the Washington Post to fire columnist Eugene Robinson. Elon Musk called, speaking of which, investigative reporter Catherine Long, who was writing about this stuff, disgusting and cruel. You know, just this is what these people do all the time. They do all kinds of intimidating and rude remarks.

395.077 - 411.367 Scott Galloway

And that's to say nothing of his endless anti-trans stuff, anti-immigrant stuff, his tasteless stuff about gay people, his tasteless stuff about women, about anyone who opposes him. So this guy, you know, pot, kettle. Nice to meet you. Anyway, there you have it.

411.427 - 426.096 Kara Swisher

Well, you know, look, we get it wrong sometimes. But just keep in mind, both Kara Swisher and Scott Galloway, we live with our children. And so we got that going for us. And we're not giving Nazi salutes.

426.536 - 428.838 Scott Galloway

That was your best one. You're such a great dad.

430.575 - 453.331 Kara Swisher

You're an amazing father. To the best of my knowledge, I have not hired video game players to pretend they're me such that I can go on podcasts and say I'm a world-class video game player. I'm not creating fake accounts to call myself an amazing dad. I do a lot of virtue signaling around my fatherhood, but I haven't gone that far. And so far, I am not addicted to ketamine.

Chapter 4: What are the implications of AI for future content creation?

455.573 - 456.393 Scott Galloway

Oh, how'd it go?

0

456.413 - 467.041 Kara Swisher

I'm willing to try. No, I didn't. I didn't get there. I just went out and drank instead. I had something called – I had two mezcal margaritas and half an edible, and that worked for me. That all worked.

0

467.141 - 472.325 Scott Galloway

Jeff Swisher said he'd help you if you need help because he gives ketamine every day as a doctor. Not that he's going to prescribe it for you.

0

472.345 - 477.947 Kara Swisher

Oh, I got to tell you, I had – I'm sorry, I keep bringing this back to me. I had lunch with Chris Anderson from TED.

0

478.287 - 478.587 Scott Galloway

Oh, yeah.

478.647 - 498.392 Kara Swisher

And he sat down and it was so lovely. You know what he said to me? He looked at me and he's like, me and Jacqueline, his wife, who's lovely. He's like, are you all right? I'm like, yeah, well, I mean, I'm no less fucked. I'm more fucked up than I usually am. People after hearing that podcast are worried about me and taking me out to lunch and sitting me down.

498.772 - 504.415 Kara Swisher

He goes, no, no, really, no, really, Scott, are you? Are you all right? And also, would you be willing to come back and do another talk?

505.315 - 508.177 Scott Galloway

Did he step down from Ted?

508.617 - 529.748 Kara Swisher

He's like he's basically it's kind of a gangster move. I don't know if you've heard about this. He said, I'm giving Ted away. And of course, he's going to give it away to some billionaire who put a bunch of money behind it. But he has basically decided to give Ted. He needs every Democrat. Over the age of 100, like 40, 50% of them needs to take a note out of the Chris Anderson page book.

Chapter 5: How did the Super Bowl reflect cultural tensions?

576.051 - 580.274 Kara Swisher

Yeah, but this notion that like, I'm not, this shit used to bother me.

0

580.294 - 583.896 Scott Galloway

Yeah, it did. It doesn't bother you anymore. It doesn't.

0

584.176 - 591.004 Kara Swisher

I feel like I'm turning into one of those villains that gets energy from attacks. I love that this guy hates me.

0

591.205 - 595.99 Scott Galloway

Like he punches you and then you get his energy? Like that kind of person? Seriously.

0

596.01 - 598.033 Kara Swisher

We're doing some right, Kara.

598.193 - 606.296 Scott Galloway

We're doing some right. It's true. It's true. He does call most people disgusting, cruel, pedo. When he calls you a pedo, that's when you know he loves you.

606.656 - 611.057 Kara Swisher

Yeah, we're headed that way? I don't know, but you pointed it out.

611.097 - 611.537 Scott Galloway

You, not me.

612.138 - 616.598 Kara Swisher

Look, let's just get to the source here. It's just so clear the guy wants to fuck me.

Chapter 6: What are the latest developments in Amazon's business strategy?

635.128 - 640.311 Scott Galloway

I had this, I played this game with someone. I'm not going to tell you. I didn't, I couldn't answer it, but you know, fuck Mary Kelly.

0

640.331 - 641.092 Kara Swisher

Fuck Mary Kelly.

0

641.112 - 642.933 Scott Galloway

Okay. I'm going to do this. You're going to answer it right now.

0

643.273 - 643.553 Kara Swisher

Okay.

0

643.773 - 647.196 Scott Galloway

Musk, Bezos, Zuckerberg. Go.

647.356 - 647.656 Kara Swisher

Yes.

650.878 - 656.08 Scott Galloway

Which one? Go ahead. Okay. We might have played this before, but I'd like to play it again.

656.1 - 668.43 Kara Swisher

Oh, I would definitely marry Bezos because I'd like to roam around in a thong on one of his yachts. I think that would be a good look for me. I'd be willing to embarrass myself. They go to the best parties.

668.49 - 669.61 Unknown Speaker

I love the fashion.

Chapter 7: How do mergers and breakups impact the tech industry?

690.45 - 718.925 Kara Swisher

Oh, God. I want Zuck to put on one of those jujitsu outfits and start manhandling me a little bit. Ooh. And then a few things go the wrong place. Oh, yeah. Let's get ready to rumble. Oh, my God. And I'm not going to say kill because I don't even think it's funny to joke about violence. It's just a game. It's just a party game. I am Lauren Sanchez, and I'm making sweet, sweet love to the Zuck.

0

719.045 - 743.103 Scott Galloway

As always, everything goes back to Elon, who has continued to plague us, but he's now plaguing Sam Altman. The feud with the CEO of OpenAI took a new turn today when a consortium of investors led by Elon is offering $97 billion to buy the nonprofit that controls OpenAI. The bid was submitted on Monday, according to the Wall Street Journal. And in a quote, Elon Musk said,

0

743.41 - 764.026 Scott Galloway

It's time for OpenAI to return to open source safety focus force for good it once was. Obviously, for people that don't know, Elon and Sam and others created OpenAI Together as a nonprofit to battle. And I did an interview with them at the time about this, both of them. to battle the bigger companies and the privatization of AI.

0

764.066 - 780.824 Scott Galloway

And so it was going to be a nonprofit that was going to focus on safety. At the time, Elon thought AI was going to kill all of us. He's changed his tune on that, obviously, over the years. And this is a really shocking news. What do you think, Scott? What's he up to? Because he's not busy with other things, for goodness sake.

0

781.317 - 805.79 Kara Swisher

I think this is a rich man's version of I'm invading Greenland. I think this is a distraction. So first off, I got to be clear, I got to do more research here, but essentially what they've done accidentally or unintentionally is by starting out as a nonprofit and then pretending that they would maintain some fidelity to the nonprofit once they smelled

806.588 - 827.818 Kara Swisher

hundreds of billions in potential shareholder value, they accidentally created a two-class shareholder company. And that is they have essentially some shareholders, the nonprofit, that have a lot of governance rights. And the for-profit group is raising money at a $300 or $350 billion valuation.

828.419 - 857.359 Kara Swisher

And Musk has found a way to try and create a cudgel or, according to him, essentially get control of, if you will, the voting shares by taking over the nonprofit side of OpenAI. Now, what this really does is is probably force them to pay more in their negotiations, I think, since the last round on what they're going to pay or what share of the equity the nonprofit gets in the for-profit.

857.419 - 863.182 Kara Swisher

But be clear, this is based on the false pyramid, the statement that you just read that he's concerned.

863.462 - 864.823 Scott Galloway

Yeah, he's not concerned with anything.

Chapter 8: What does the future hold for AI regulation?

979.677 - 1000.29 Scott Galloway

It was $157 billion is the valuation they're looking at now, which is enormously high. You know, when they started as a charity, maybe for a moment there, but the minute it got profitable, all of them were running for the for-profit subsidiary. And OpenAI has emails from Musk talking about wanting to turn it into a for-profit subsidiary.

0

1000.53 - 1003.392 Kara Swisher

What if his entities aren't for profit?

0

1003.412 - 1027.569 Scott Galloway

That's correct. They have emails saying it. Like he's a liar. He's a liar about wanting this particular sentence or a fabulist or whatever. He's just doing it for the performative nature of this. But I think the question is what it will be valued at. And so he's just setting it higher. And who would end up with this controlling stake in the new open AI?

0

1027.989 - 1042.001 Scott Galloway

Now, he could have waited until it did this and then tried to make a play for it publicly. But you're right. It's Joe Lonsdale from Palantir, Ari Emanuel, like literally the least – Charitable people I know, right?

0

1042.021 - 1044.002 Kara Swisher

Let's just say they're the most capitalist.

1044.042 - 1044.562 Scott Galloway

Capitalist.

1044.782 - 1047.323 Kara Swisher

They're probably charitable people, but no one's going to put $100 billion up for fun.

1052.366 - 1052.346 Kara Swisher

100%.

1052.546 - 1073.135 Scott Galloway

And so, you know, I think he's filed all these legal complaints saying that they had betrayed their nonprofit mission at the same time. colluding with Microsoft, and this Tobarov was the one that tried to get the Attorney General's California to do this and do a fair market value. It's a fuck you, Sam kind of thing.

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