by Gail Alfar, Austin, Texas
I listened to Cathie Wood interview Elon Musk today. Here’s my takeaway and a brief synopsis of the interview. I hope you will also listen to the full interview.
Mainstream Media Misinformation About X and Tesla
Elon Musk spoke about how the mainstream media must create articles that create “clicks.” This is, he explained, not the same as what is seen on the X app. X is claimed to be dying by the mainstream media, but X actually has more views and traffic than websites. X is thriving through rapid advancements in technology.
He also explained he could have taken Tesla private, and funding was secured, but he chose not to. Cathie Wood was one of the people who advised him not to take Tesla private.
Twitter, or X is a private company. Cathie explained how important freedom of speech is for people.
You can listen to the X Space.
A Collective Consciousness on X
Elon explained on the X Space that when information is shared on X, it is shared directly by experts themselves. This group mind, or collective consciousness, is reporting information into the system, consuming it, and giving their opinion in real-time. There is, Elon explains, noise in the system, which is devious from the truth. He said, “for any given crime there are 3 stories, the victim, the perpetrator and the truth.”
He said we can aspire to the truth and have the least amount of error. He hopes to get as many people as possible to share the most accurate information, and create the best scenario for the most accurate information to be shared.
Creators Are the Heart of X
Elon said that creators are being paid, and when they post interesting and accurate things they get that reward. Boring posts are not rewarded, since they generate fewer views.
Regarding bots on X, Elon said that you can raise the cost of bots and trolls in order to control them. Bots can be limited by an increased cost, but they will likely never disappear. Elon explained that the small monthly payment on X raises the cost of bots by 1000 or 10,000 orders of magnitude. He said it would be hard to have more bots when valid credit cards are required. Elon predicts that any given social network that does not implement this, will be swarmed by bots. Cathie explained that she experienced a bot takeover on Instagram.
X as a Financial Platform
Cathie asked if X will turn into a financial platform. Elon said he is waiting for final approvals to come through for money transmitter licenses. Since CA and NY are not yet approved, it is taking time to happen, although almost all states have approved licenses outside of NY or CA. He hopes all approvals will come through by at least mid-2024.
Public vs. Private Companies
Elon explained that when a company is public, it is a burden. He urges companies not to go public unless they have to.
Elon said that at SpaceX he can take more high risks because the company is private. At the end of a quarter, SpaceX does not have to worry about numbers. This allows more freedom for success. He said that at Tesla, he and the team go to great lengths to end each quarter with a high success rate. He said he has personally spent up to 6 New Year’s Eve’s at Tesla Delivery Centers himself.
Elon also said it was a good thing to give access to Tesla Stock to small private investors, although it takes more time to manage a public company than a private company.
Regarding Tesla, Elon said he does think it is good to have allies or investors, and it establishes a reality check on the valuation of the company. He says he can also provide stock to employees at Tesla, and this helps people gain liquidity. Elon wants to award employees stock, and this has helped people become millionaires. Tesla has likely created more millionaires than any other company. Cathie Wood agreed.
Bitcoin
Elon said he does not spend much time thinking about cryptocurrency. He said fiat currency is fine, as long as the money supply is predictable and provided the government does not debase the money supply. He says he thinks of it like an information system where you want to minimize noise. You want to minimize inflation. You want to have a quick transaction time. You want less fraud. He mentioned the ancient Sumerians and their money system.
The ancient Sumerian money system in a nutshell was based on the barter system, where goods and services were directly exchanged without the use of currency. However, as trade and commerce grew, a more sophisticated system was needed. The Sumerians eventually developed a system of weights and measures to standardize the value of goods, using silver and barley as the primary mediums of exchange.
Problems arose as the system was not very efficient, and it was difficult to determine the exact value of goods and services. This led to disputes and conflicts, which were often resolved through the intervention of the temple or the state. Despite these issues, the Sumerian money system laid the foundation for the development of more advanced monetary systems in the future.
Elon continued, explaining that the real economy is goods and services, not money. Growing productivity leads to prosperity.
Robotaxi
He thinks that productivity will be improved with robotics and AI. In a passenger car, you see very little use of the car. If you have a fully autonomous car, the cost is the same, but it can be used for about 1/3 of the hours in a week, so then you now have the same asset having 5 times the utility. He explained Tesla can upgrade the fleet, and overnight increase the asset value of the fleet.
“Once you take away the pain of driving, people will go more places,” explained Elon. He said people will watch movies, and be able to use their phones legally in the cars.
Tunnels
Elon said the solution to traffic is also tunnels. He hopes regulations will not bog down progress with the Boring Company.
Rules and Regulations
There needs to be, said Elon, a way to reduce regulations. California and New York have too many regulations. It can take you several months just get a permit to change the tiles in your bathroom in California. There needs to be a way, he said, to reduce regulations, although Texas and Florida are much better than most states. He explained that even China has a growth of rules and regulations.
“You can think of [excessive regulations and laws] like Gulliver’s Travels…
If the nation is Gulliver, it’s being tied down by one little regulatory string at a time. Eventually you have millions of strings and then the giant can’t move.
So I think there needs to be something where we delete rules, regulations, and laws. If all we do is add them, eventually we will be able to do nothing” - Elon Musk
Roanoke
Elon explained that if there had been social media during the time of Roanoke, then people may have stopped exploring.
Roanoke was a colony established by Sir Walter Raleigh in the late 16th century on Roanoke Island, off the coast of what is now North Carolina. The colony was intended to be the first permanent English settlement in the New World. However, the colonists faced many challenges, including a lack of food and supplies, conflicts with the native population, and harsh weather conditions.
The exact fate of the Roanoke colonists is not known, as they mysteriously disappeared and their ultimate fate remains a mystery to this day. However, one theory is that they may have died of starvation. The colony was plagued by a lack of food and supplies, and the colonists were not well-prepared for the harsh conditions they faced. They may have also been unable to obtain food from the native population or through hunting and fishing due to conflicts or lack of knowledge of the local environment.
The lack of food and resources may have ultimately led to the deaths of the Roanoke colonists, though this is just one theory among many regarding their fate. The mystery of what happened to the Lost Colony of Roanoke continues to intrigue people to this day.
Roanoke was a colony established by Sir Walter Raleigh in the late 16th century on Roanoke Island, off the coast of what is now North Carolina. The colony was intended to be the first permanent English settlement in the New World. However, the colonists faced many challenges, including a lack of food and supplies, conflicts with the native population, and harsh weather conditions.
The exact fate of the Roanoke colonists is not known, as they mysteriously disappeared and their ultimate fate remains a mystery to this day. However, one theory is that they may have died of starvation. The colony was plagued by a lack of food and supplies, and the colonists were not well-prepared for the harsh conditions they faced. They may have also been unable to obtain food from the native population or through hunting and fishing due to conflicts or lack of knowledge of the local environment.
The lack of food and resources may have ultimately led to the deaths of the Roanoke colonists, though this is just one theory among many regarding their fate. The mystery of what happened to the Lost Colony of Roanoke continues to intrigue people to this day.
Artificial Intelligence
Elon explained that he helped to found OpenAI. Larry Page was not taking AI Safety seriously, so he had to leave OpenAI. He said he favors open source. For example, the X platform is all open-sourced. Nothing is hidden. He said there is very little code. He said closed source is not that far ahead of open source.
Grok
A goal for Grok is to be the funniest AI. Grok is great at roasting.
Elon thinks Grok will also be a truth improver. He hopes Grok will acknowledge error, and that people will tend towards Grok because it is aiming for maximum accuracy. Elon says because X is also aiming for accuracy, other platforms are also starting to aim for that.
Transformers and Diffusion
Tesla is the leader in real-world AI. To make FSD work, you need baby AGI in the car. Reality is messy and complicated. He said everything comes down to different layers of transformers and diffusion.
Elon said that transformers are transformational and are being widely used now. Diffusion is also very important. Elon said that memory has already been outsourced to computers. Our phones already record events better than humans can. A fundamental ratio is that of biological to digital. He said that we already have more digital than biological. Elon said that human compute is a flat line whereas digital compute is exponential. He explained that 99% of all compute will be digital over biological within one year. Elon said his own memory is terrible. Elon said that computers have not yet discovered fundamental physics and have not yet invented any useful technologies. Only humans have done these things.
Elon hopes that AI will one day be able to invent new technologies.
Elon: “Who should be president in 2032? Transformers or Diffusion?”
Stop Signs and NHTSA
Elon explained that the rule that Tesla cars should stop fully at stop signs is part of the law, but almost no humans do this. He said Tesla had to select the rare cases where humans actually do full stops, since almost no humans do this. This was one rare example where Tesla disagreed with NHTSA. The media paints Elon as a lawbreaking maverick. He said that 99.99% of the laws are abided by. He said that his companies are incredibly law-abiding. He looks forward to showing regulators that Tesla FSD is massively safer than a human driver.
Fermi Paradox
Elon also spoke about the famous Fermi Paradox. he said he may die in 40-50 years, and we should think of this time, today, as the first time the window is open to make people multi-planetary. We need to take advantage of this time to make life multi-planetary. We want the tiny candle of consciousness to be preserved, to not go out.
Elon mentioned the diagram on the Starlink router. It is a homing transfer diagram from Earth to Mars. He said, “Starlink is the means by which earth becomes multi-planetary.”
Cathie thanked Elon saying “the world will thank Elon Musk for years and years to come.”
How Would The Next Generation Be Inspired?
Elon said he thinks that anyone with a company providing goods and services is doing great. He said all people should try to be useful, even though it is very difficult to do this. “Really, just try to be useful, making goods and services that make lives better.” He also said that if you need encouragement to start a company, then don’t do it, the “probability of failure is too high then.”
Cathie Wood thanked Elon Musk for the X Space.
My Thoughts
Cathie Wood was a wonderful gracious and respectful host of the X Space. She allowed Elon Musk to talk and brought along very good questions. I hope everyone will listen to the interview and be inspired by Elon’s kind words. Some of the reassuring things I took away were:
1) A good feeling that to make a difference in the future, you do not have to be a massive success like Elon – he makes it clear how valuable it is to simply provide a service or a good. For example, as a Nurse, I am valuable to be providing a service to heal others and when you build something (like a Raptor at SpaceX, for example) you are also helping the future to be better.
2) Elon cares immensely about making humans multi-planetary. He is a visionary who knows how small the window is to make us multi-planetary. He is, therefore, serious about getting Starship to orbit, to Moon, and to Mars. This gives me peace of mind. It should, hopefully, also give millions of others hope.
WHAT'S UP đť•Ź by Gail Alfar 