The Majority Report with Sam Seder - 2727 - School Vouchers Scam; The (Democratic) AI Lobby w/ Megan O'Matz, Jeff Hauser

Episode Date: September 9, 2026

Welcome to The Majority Report On today's program: Israeli news outlet, Haaretz, reports on Israel rejection of Hamas' offer to release the hostages the night of October 7, 2023. Joe Scarborough and Donny Deutsch get into screaming match on Morning Joe over Haaretz's revelations. Megan O'Matz, journalist at ProPublica, joins to discuss her piece on how private schools receive taxpayer-funded student vouchers with little accountability or oversight, despite often underperforming. Jeff Hauser, founder and Executive Director of the Revolving Door Project, on potential AI bailouts and the Democrats who may be too compromised to fight this. In the Fun Half: UK Foreign Secretary, Ed Miliband, is asked by a Sky News reporter if he stands by his claim that West Bank settlers are guilty of ethnic cleansing to which Miliband responds with, "yes, I do". In recently "unearthed" audio (a clip from a podcast) of Abdul El-Sayed in 2021 commenting on how the U.S.'s response to 9/11 resulted in the death of hundreds of thousands. NYC councilmember Vickie Paladino goes on an unhinged racist rant about Mayor Mamdani's participation in a 9/11 ceremony. Tucker Carlson and some pottery artist All that and more. On Sunday, October 4, Emma will be in Los Angeles doing a Bitchuation Room Live with Francesca Fiorentini at the Lodge Room. Get tickets here. To connect and organize with your local ICE rapid response team visit ICERRT.com The Congress switchboard number is [phone]. You can use this number to connect with either the U.S. Senate or the House of Representatives. Follow us on TikTok here: https://www.tiktok.com/@majorityreportfm Check us out on Twitch here: https://www.twitch.tv/themajorityreport Find our Rumble stream here: https://rumble.com/user/majorityreport Check out our alt YouTube channel here: https://www.youtube.com/majorityreportlive Gift a Majority Report subscription here: https://fans.fm/majority/gift Subscribe to the AM Quickie newsletter here: https://am-quickie.ghost.io/ Join the Majority Report Discord! https://majoritydiscord.com/ Get all your MR merch at our store: https://shop.majorityreportradio.com/ Get the free Majority Report App!: https://majority.fm/app Go to https://JustCoffee.coop and use coupon code majority to get 10% off your purchase Check out today's sponsors: FACTOR MEALS: Go to FactorMeals.com/majority50off and use code majority50off to get 50% off and 1 free breakfast item per box for 1 year, while supplies last until 10/31/2026. NUTRAFOL: Get $10 off your first month's subscription + free shipping at Nutrafol.com when you use promo code TMR10 SUNSET LAKE CBD: Head to SunsetLakeCBD.com and use coupon code LABORDAY26 to save 25% on Sunset Lake Farms CBD Oil Tinctures. This sale ends September 14th at midnight Eastern time. Follow the crew on X @SamSeder @EmmaVigeland @MattLech On Instagram: @MrBryanVokey Check out Matt's show, Left Reckoning, on YouTube, and subscribe on Patreon! https://www.patreon.com/leftreckoning Check out Matt Binder's YouTube channel: https://www.youtube.com/mattbinder Subscribe to Brandon's YouTube channel: https://ww.youtube.com/Th3Discourse Check out Ava Raiza's music here: https:/www.youtube.com/@avaraiza

You are listening to a free version of the Majority Report. Support this show at join the Majority Report.com and get an extra hour of content daily. It's Sam Cedar. It is Wednesday. September 9th, 2006. My name is Sam Cedar. This is the five-time award-winning majority report. We are broadcasting live steps from the industrially ravaged Gowanus Canal in the heart.

Heartland of America. Downtown Brooklyn, USA. On the program today, Megan O'Marts, reporter at ProPublica on her piece at quasi-public private schools, 100% of students

get tuition vouchers. Meanwhile, Jeff How, and then, sorry, we'll be talking to Jeff Houser, founder and executive director of the revolving door project on the potential AI bailout down the road, and what our Democratic leaders might be convinced by

family members to do about it. Meanwhile, oil hits $100 a barrel as Iran attacks U.S. base in Jordan, U.S. strikes Iranian oil tankers. This, as Donald Trump's personal oil investments surge by millions. U.S. now banning Canadian dairy products, alcoholic beverages, and motorcycles. Meanwhile, Trump will appear in tonight's opening of the Republican Midterm Convention, and he will appear in tomorrow's closing of the Republican Midterm Convention. If you're not familiar with a midterm convention, that's because until tonight, they didn't exist. Pappas and Sununu to face off. the New Hampshire Senate race following last night's primary.

Today is primary day in Rhode Island. If you're in Providence, not the second largest city in New England, which happens to be Worcester. But if you're in Providence, make sure you go out and vote for Morales. Anthropic researcher quits over AI development fears. and Israel Netanyahu re-election imperiled, one would hope,

as Harat's reporting confirms that not only did he get advance warning of a possible attack, Hamas offered all civilian hostages unconditionally freed on October 7th. Israel rejected the offer. D.C. Circuit Court says the IRS decision to share taxpayer info with Department of Homeland Security was illegal. Europe to buy Patriot missiles from the U.S. to shield Ukraine over the coming winter. The Secretary of the Smithsonian Institute to resign under pressure from Donald Trump. All this and more on today.

day's majority report welcome ladies and gentlemen Emma Vigland out today celebrating a hump day as the coiner of that phrase she's also celebrating the NFL's opening game probably yes indeed there's been a lot of talk of drafts around here in rotisseries or whatever it is and it's been

it's been a lot let's just put it that way and this is her apparently checked out of sports exactly she's like i haven't really been paying attention to sports very much i'm only involved in three drafts for three separate NFL leagues we get a lot to get to today the there is surprisingly

uh minimal uh coverage well i guess maybe not that surprising of the uh report by harretz which apparently was an excerpt from a book by two Heretz reporters, which outlined in exhaustive detail that Netanyahu was warned of an imminent massive attack by Hamas, directly warned by the president of UAE, but also, the security chief from Egypt. And that warning came from Sinwar, who was the Hamas leader,

who had been in negotiations with Israel for five years. And Israel had been basically stonewalling, and he sent a message, we are planning something that will be an earthquake. if we do not get moving on this on these talks. Netanyahu not only poo-poohed the warning, but did not share it with the supposedly with the other, with the national security apparatus. Also in that excerpt, it was made clear by multiple sources. some of whom were in direct who had direct contact with the Israelis and and provided the offer

that Hamas had offered all civilian hostages to be released unconditionally um on november 7th and to the extent that there was a condition it was only like me you know can we bring in a mediator for other negotiations and of course they wouldn't have been able to just simply release them without coordination from the Israelis, the Israelis refused. Remember how many times we were told by over and over again. If Hamas just released the hostages, this would all end. That was a lie. It was a lie from every day after November 7, 2020.

The other hostages were military prisoners. And people forget this. Hamas attacked two military bases in Israel. The festival wasn't even scheduled to be going on that day. It had been extended a week earlier. They attacked two military bases where at least some of those military prisoners or most of them came from. Here's how they handled it on MS now. Yes, or this was this morning, I guess.

Got into a little fighting match. there is a a desperation on one hand from Zionists who will hear nothing of anything of this sort

and then of other Zionists who want to make it clear that it's really Netanyahu's the problem ignoring the finance minister the prefect of the West Bank the national defense minister,

and frankly, all of public opinion polls in Israel. But here is Joe Scarbro and Donny Deutsch yelling at each other. That would mean that he said keep funding Hamas through Qatar after he'd gotten the warning from the UAE that, hey, a major attack is coming. I can't explain BB, but I just don't want us to

forget as we're close to three years October 7th that Hamas, to your point, slaughtered, raped, mutilated, 1200 200 Jews. Right. So back to me... Pause it for one second. Positive for one second. First off, there are what remains

unconfirmed reports of of rape. They want to continue on with that. It has been, the idea of systemic rape in that attack has been completely debunked. That's just the reality of it.

It's also interesting to me that when they use that 1,200 number and it was, you know, 1150 or somewhere in between, almost 300 of those were military personnel. It doesn't justify the killing of civilians. But it's important to know just because Deutsch can't even react three years later to the idea that Netanyahu poo-pooted away. And I don't know if there's still even internally in Israel an understanding as to why it took six hours to react what was going on there. This is, it's like, you know, traveling from the distance to Gaza from the furthest part away of Israel is like half the state of Maine.

Presumably they have military as helicopters. Go ahead. 1,200 Jews. Right. So back to my question, Donnie. I can't ask you. Back to my question, Donnie. It's not like Netanyahu didn't know he was going to do that because Hamas said,

I don't know. We're going to exterminate Jews and Netanyahu. I can only say that let's not forget that Hamas. Who is forgotten it? You are. Listen, who do I look like? Do I look stupid? Do I look stupid?

Look at me. Look at me in my eyes, Donnie. I'm looking at you eyes. And do you think that I'm going to be distracted by you saying what I'm said a million times? By the way, I'm not here to defend me, Nanyahu. I said a million. It's very easy to lose trash. Are terrorists.

Okay, let's not lose that fact. Okay, I'm not here to defend Bibi Nanyahu. Okay, hold on. We'll take judicial notice of what I've said a billion times. Hamas are terrorists. Now, can we talk about Netanyahu? No. You just not want to talk about that.

I want to say I'm not here to defend Bibi Netanyahu. I don't know what went down. We don't know. Does that not concern you? What I do know. If it happened in America, Pause for a second. I will say this.

What is fascinating to me is that someone can be sitting on the set of a news organization. Yeah. And when extensive reporting comes out, confirmed by multiple sources, about two different government officials that Warren Netanyahu comes out by Israeli press, Harat. Harat is not a fly-by-night journalism outfit. It's not some dude with a substack. All of a sudden, like, now we don't know. We have no way of knowing.

We have no way of knowing. How about you get off the news set and stop pretending that you know anything then? Like, what are you doing there? It's not shark tank. Just to underline your point, the Times of Israel in April of 2024. No doubt Netanyahu preventing hostage deal charges ex-spoken of families for him.

How do you explain Netanyahu's a sensible lack of effort to bring hostages home? The main reason is conflict of interest. He knows that the moment the hostage is released, Bezal Smoltrich and Idemar Ben-Gavir will leave the government. Like, this, this Arendt's report is vital, but it's also confirming stuff that's already in not only like the press, but the Israeli press. Yes. I don't know. Does that not concern you? That's the question.

If it happened in America, it would concern me. We asked questions about 9-11. Are you willing to ask questions about Netanyahu? I'm willing to answer questions. I'm willing to ask the questions. Is the strategy of giving them money a smart thing to keep them quiet, whatever his logic was? No. All I'm just saying is that we, in the discussions about BB, I don't want it to get lost on where the evil starts here.

Okay? I'm not defending BB Netanyo. I don't know. We don't know what went down there. And hopefully history will teach us. But again, Tony, you're... Pause for a second. History, apparently, he is completely neglected history when he talks about the evil starting on October 7th.

Completely ignoring, why was there millions of people in an open-air prison, 50% unemployment, where military personnel would say it's time to mow the lawn again or maybe they're getting too many calories. Apparently history is not going to, history offers him nothing. And incidentally, three years out is not enough history. This is literally an excerpt about a book, which is, I mean, excerpt of a book,

which is writing the history of that. day. It's literally history. Like what, like, oh, we need to wait 10 or 15 years from now. What a shill. I mean, even now, what a shill. Unbelievable. Put up the,

just some of the clips of that, of that, of those excerpts talking about how sort of, completely sort of taken aback. I guess the Qataris were here it is. Altani.

He's the Qatari. I just finished the conversation with the Hamas political leader. Ismail Hainiyah and his deputy, Khalil Hayeah, who only recently arrived in Doha, he briefed Barnea. I explicitly threaten them if all civilian hostages and not released immediately.

I think this is him basically saying, like, he wanted to take credit for their offer, which, fine, whatever. I will personally order their expulsion from Qatar. I'd like to inform you, Hamas is ready to release all civilians now, and we are prepared to immediate.

The Mossad director's response left Al-Tani confused. If they want to release the civilians, let them release them. Barney replied, we're not prepared to speak with Hamas. Now, understand. How do they release them in the middle of an invasion and bombing? This was Israel's way of saying, not interested.

Mashwari, who is another negotiator, I should say, like envoy from Gaza. He told me, on the first stage, they had no problem releasing all civilians without anything in return. I swear those were his exact words, all civilians without anything in return. They had only one condition. and they wanted us to bring in an agreed upon mediator as quickly as possible. That would have been the Qataris. So that negotiations could immediately begin over everything else, the release of soldiers and officers in exchange for Palestinian prisoners,

and then the issue of the blockade on Gaza. They had no intentions of this. All of the premise that we heard from defenders of Israel's genocide and genocidal campaign, against the Palestinians living in Gaza was predicated on the idea if they just would release the hostages all lie.

And meanwhile, these same people are going and talking attacking folks like Al-Sayyad for saying things like you know, we suffered on 9-11 but we passed that even greater suffering on to the rest of the world. It's just pretty empirically true.

In a moment, we're going to be talking to Megan O'Mart's reporter of ProPublica on the scam that public school vouchers are. And then we'll be talking to Jeff Hauser on the coming scam of AI. And who are some of its biggest advocates? You'll be surprised to learn that they are the children of some of, your not so favorite Democratic leaders. First, a couple of words from our sponsor. This is what I barely have to talk about. I think it just wind mad up.

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We'll put that in the podcast and YouTube description. Quick break. When we come back, Megan O. Martz. We are back. Sam Cedar on the majority report. Emma Viglin is out today. You want to welcome to the program, Megan O.Matt's reporter at ProPublica. Megan, welcome to the program.

Thank you. Thanks. It's nice to be here. So you've written a piece on private schools that are recipients of public school, I guess, systems vouchers. Just walk us through a little bit about just in general. And you specifically looked at Wisconsin. You're out of Milwaukee. but just broadly speaking, this is something that's a national phenomenon for the most part, not every state, but certainly many states provide these vouchers increasingly. A lot has been written about schools that are the people who are going to these schools in some instances were going anyways and just basically had their private schools subsidized,

but there's all sorts of problem with this system. Just give us a little broad overview of the program. Of course, just for some context, my colleagues and I at ProPublica have really been looking at this rapid growth in private schools, given all the additional public money through voucher-like programs that are being sent to the public schools. And what we did is we looked at 13 states and we found 1,500 new private schools opening in just the last five years or so. and they're really opening with very little accountability or transparency. We found one company that is advising churches that they could open new schools and calling them God's new gold mine. And we're finding this.

God's new gold mine. Yeah, yeah. But we're finding these schools in farms and barns and strip malls and co-working spaces and homes and just all kinds of places. Some states don't even really track what new private schools are opening. So once we started looking at these schools, we noticed that there is a subset of schools in which 100% of the children are using a voucher-like form of payment, public dollars, to pay all part of their tuition. So we started looking at these 100% schools, which basically are, for the most part,

funded like a public school, but they have far less of the accountability. and transparency requirements, and all that you would see with a public school. So in these so-called 100% schools where the entire budget, well, I should say, and you made it clear that the entire budget isn't always the case.

Sometimes they'll get grants. Sometimes they'll get investors. But a significant portion of the operating budget is a function of public money and almost a hundred, 100% of the students are there supplied with vouchers. Do we know, like, what percent, is this all like new schools? Like, do we know how many of these people are in that situation or these kids where they would

be going to private school anyways? It's just now the state is picking up the bill? And in this particular story, we didn't look at that. But yes, that has been widely reported that a lot of children that are already. in private school and have been for years are taking advantage of the voucher programs in Wisconsin. I found 39 schools that are these 100% schools. They're educating about 8,000 students and taking, I think it was, let me see, $87 million in vouchers. So again, that's the universe of those 100% schools are what I found that they're calling quasi-public schools. So where, like,

in terms of a ratio, 8,000 students, $87 million, where does that, how does that compare with the school system itself, with the public school systems? Gee, I can't really address that, right? Exactly. But I can tell you what we looked at was the issue regarding the differences in transparency and accountability. The private schools, they don't have to take all children. They don't have to take disabled children.

They don't have to be as transparent, certainly, as your public schools. I mean, with the public schools, I can go to a school board meeting. I can look on their websites. I can use their open records law. I can get information about contracts and so on. And really, with the private schools, they're not under any kind of obligation. So if you're a taxpayer and you're concerned about what children are learning in these private schools that your tax dollars are funding, it's just really so much harder to find out.

with these 100% schools that are getting the vouchers. Can you give us some examples of like just how wayward, some of the, like, you know, what's going on at these schools and how these public funds are being spent and in some of those disparities? Yes, we looked at one particular school in Milwaukee Atlas Preparatory Academy. And this is a school that has low test scores. It's graded, you know, one star out of five, fails to meet expectations. They have declining enrollment.

And basically, this is 100% school. All the children there are having their tuition paid through by vouchers. They're getting about $4 million over the last year. And we looked a little bit at the governance structure there because I was seeing that the board chairman had a dual role as also an administrator with this school and was getting paid about $150,000 a year, which is not something that you would see in the public school system. There's a separation and governance when you have basically a school board member, you know, they're there to serve as a check and balances on the administrators.

So in this case, again, what you saw, what I saw was a board chairman having a dual as administrator and also basically having a contract for accounting and consulting, which was another, I don't know, about $90,000 a year as well. And that is also something that would be prohibited in the public school system, at least here in Wisconsin. So when we talk about these voucher systems being gods, what was it, piggy bank or ATM? God's new gold mine.

God's new gold mine. How does that, what are they referring to in that instance? I mean, a lot of these schools are parochial in some fashion or set up for religious, by religious entities. But what, like, how, like, who's getting the gold? Well, certainly, many people want to have their child go to a faith-based school. They're choosing that option for that reason that they're being instructed in some kind of a faith-based curriculum. And so I think what this kind of,

this company and others may be advising churches, this is a way to educate students to be able to financially run a school, which can be expensive, of course, unique teachers and space and curriculum. And also, this is, you know, a way to help sustain faith-based schools. And Atlas has, gets $4.3 million. for 360 students. That seems a lot. Yes, again, that's what they're eligible for here in Wisconsin.

And so what, like, has there been public outcry about this? Or is it just like this is so opaque that people don't realize it. And how did this program get started in Wisconsin? Well, Milwaukee was one of the initial places. is where vouchers began in the country. So it's been a very, very long program here in Milwaukee. And I have to say that the folks at Atlas Preparatory Academy told me that they are working hard to bring up their test scores, that they do not overpay anyone, that they feel that

they follow their conflict of interest policies. Although when I ask for a copy, I, again, am not entitled to that. they did not give me that or their contract with this particular board chairman. So they are trying to, as they told us to do the right thing. Well, what, like, but what is the, what is the point of a private school that is performing just as poorly? I mean, from the perspective of the students or the, I guess, be the student's parents. Well, again, I think it's tragic in any school setting where we have a failing school.

We should not be failing any of our children because time is the essence for them. They can't wait around until, you know, we get it right. So the issue with the private schools is that, again, there isn't really the mechanisms for the state to step in, to be able to close the school down or put inside any kind of financial, sanctions or anything like that for a failing school, whereas there are certain, you know, actions that they can take for a failing public school, of which there certainly are failing public schools as well. There are remedial plans. And also, as I mentioned, these things are heavily debated in public school boards and public settings. And you have a lot of visibility

and input from taxpayers, which you just are not getting in this private setting where every student is receiving a voucher. And I think you asked about public perception, too. And I think that the way we framed this article in which we described this as 100% of the students, that that has resonated with our readers when you sort of show how so many children are getting these. Everyone is getting a voucher. And yet, their rules are far different.

And but I'm saying like, from the perspective of the students or the students, or the students' parents, what is the allure to these private schools? Is it yet they're religious? I mean, you know, Betsy DeVos, who was the Secretary of Education during the first Trump administration, once said in an interview, she sat down with, she and her husband, and this was well before she was named Secretary of Education, that she had no problem with public education. she just had a problem with public schools. And she was okay with the government collecting money to provide, to educate students,

but they wanted to flow out essentially to religious schools. And the idea was, we just want this pool of dumb money. Is that what, is it, is it the idea that people are looking for in Milwaukee, and maybe in particularly in terms of Atlas, Is they looking for a specific, like, religious education? Or is it that, is there, like, do we have a sense of what the racial makeup of these private schools are relative to the public schools that they leave behind? This particular school that I'm writing about is very diverse. In fact, they have a lot of English language learners in Milwaukee overall.

The population is heavily diverse population in Milwaukee. But as for why parents want to send their children to a whole variety of reasons, they may be unhappy with class size in the public schools. As you said, they're looking for a religious-based education. Many people may simply be looking for child care after school or before school. They may be simply, you know, have fallen out of favor with the public school. So there are a variety of reasons that people will look at. for a private school.

And certainly, yes, religion is part of it. But this has been a goal of the conservative movement for some time is to diminish or weaken the public schools. And you'll hear a lot now from public officials, especially on the right, talking about woke schools and public schools and being unhappy with what they're teaching and how they're teaching. And so you're seeing a lot of that.

But yes, there was a great desire to draw tax payer dollars to religious schools and other private schools. I mean, that's ultimately the irony, isn't it? Is that the conservative politicians and leaders are complaining that there's not enough input into the nature of these public schools when, in fact, these private schools have absolutely no accountability to any of the taxpayers from whom they get all of their funding or the vast majority of it? Right, and I wonder how long that will last because it really does seem unsustainable to say that

you don't have to test children in public, in private schools. Now, certainly in Wisconsin, they do require voucher students to be tested, though parents can opt out. So I think that measure, you should be, want to see how these schools are performing, right? I mean, that's just, again, when we talk about what children need, we need to be able to evaluate that. we need to be able to see whether the money is being spent properly or not. Again, here in Wisconsin, these private schools who accept voucher money have to submit audits to the state, and those are only public information. I obtained them for this Atlas Pupportory Academy through public records request to the state

and was able to get some confirmation about things. So, again, but that's not in every state that you would have that kind of visibility. and equally if you have a nonprofit private school, I'd say you're able to look at IRS tax records where there is some disclosure. But again, as a parent, you don't always know where to look for that information. Well, it's a bigger issue, as you say, I mean, well over a thousand new schools popping up funded by these vouchers. Megadomats, we will link to the piece at majority.fm.

Thanks so much for your time today. I really appreciate it. Thank you for talking to me. I appreciate it too. Take care. All right, folks. We're going to take quick break. When we come back, we're going to be talking to Jeff Hauser, founder and executive

director of the Revolving Door Project on the potential, maybe the inevitable AI bailouts that are coming. And who's sort of lining their ducks up in a row? to blunt any political blowback to such bailouts. We'll be right back after this. We are back, Sam Cedar on the majority report. Emma Viglin out today. I want to welcome back to the program.

Jeff Hauser, founder and executive director of the revolving door project. Jeff, welcome back to the show. A couple of things I wanted to talk to you about, all of which are related. You wrote a piece. It was in the prospect about about a month ago now on the concept of an AI bailout. Now, right now, nobody's talking about this because these, you know, aside from the fact that you've got researchers quitting, we're the one sort of in the news today, talking about the dangers associated.

with AI. But talk to me about the bailout. Walk me through how AI companies would need a bailout. Sure. So AI companies are issuing bonds at a furious rate, and they're doing so via the sketchiest of accounting mechanisms in order to fund the hypers, the buildout of the data centers. These data centers are incredibly expensive.

Navidia is producing all this revenue because people are buying their chips. And the chips that people are buying are not producing wealth right now. People are not buying AI services in any serious way, but they're investing at a scale that makes the railroad investments of the 19th century look penurious by comparison. So at some point in time, these companies are going to have to produce real profits or else they're going to be really down the road without a vehicle.

They're in real potential trouble. So I think that the business side of the world, investors have been contemplating whether or not we're in a bubble for quite a while. You have some prominent hedge fund type saying that they are, but it keeps on rolling. But at any point in time, that could stop. And the question is, what would happen if and when it does stop? You know, the idea of like how this thing craters,

I can't remember where I saw this, but it was somebody who was testifying at, I think, like a town hall about a data center that was going to be built there. And the guy was very savvy. And he says, what happens? And it hadn't really even occurred to me. But this is what we're witnessing right now is not a all of this expenditure to meet demand. We're looking at various companies who are investing to beat the other person to be basically, first in line as to whose product gets the most uptake.

And this guy said, like, they're going to, there's, they're, they're building so much more capacity than we're going to even need. It's just that they all want to be, we're going to have all these massive data centers that are going to be empty, like, like a shopping ball that, you know, you know, too many Walmarts or whatever it was, Kmart closes or whatever, you know, toys are us. collapses all over the place. So there's a real opportunity, I should say, or maybe that's the wrong word, for all of these leveraged bonds to be just sort of sitting there. And who are investing in these bonds? Like pension accounts? Like how deep does this go into our system? Sure. So there are

a handful of companies who are competing to be at the frontier competing to produce the best AI. And the hypothesis is that this is a race, that there will be a known end point when we achieve AGI or ASI, which is basically supercomputers that then improve themselves and people become redundant. So I think there's a lot of technical arguments that that is not even the right metaphor, and it's not meaningful. But that's where your open AI, your anthropic, Google, and to a lesser extent, Musk's companies are competing in the U.S. The Chinese have an entirely different approach, one that overall makes more economic sense to me, which is to be slightly behind the bleeding edge on technology, but to not waste so much energy and to be a lot cheaper to produce.

Because basically, like, on a lot of things, do you, if you produce the right answer a little bit more slowly, or can do slightly less sophisticated stuff, but at one-tenth of the truth, choice, one-tenth the cost, is that a better bet? But these, initially, your Microsoft and to the sense to which they're doing this, and especially Google, we're financing their investments out of current profits. And Amazon, which is producing the cloud capacity, in many cases competing to build the data centers, even if not the AI models, they were doing out of current profits, but they're now building so much they can't do it out of current profits. So they are borrowing money. They're borrowing from pension funds, as you said. They're

borrowing from the Gulf states through entities like the Japanese soft bank, which is really essentially a front vehicle for golf money. And they're just investing. At this point, they're getting money from everywhere they can get it because we're talking more than a half trillion dollars a year, potentially moving close to a trillion dollars. Again, to win a rate. To win a rate, where either there is a race and only one of these companies will succeed, or it's not really a race, and in the end, the Chinese models are going to prove out to be more economically worthwhile, in which case all of these entities are going to be superfluous. But if you're investing a trillion dollars here and a trillion dollars there, at some point you need real revenue in order to make good

on your bonds to meet your payment requirements. And there's not yet a plan to suggest that these companies can do so. And Open AI's finances, seem deeply sketchy. And they are circularly involved with companies like Navidia, where they all invest in each other and back each other up. And if Open AI were to be a domino that fell, I think a lot of creditors would start asking a lot of tough questions of a lot of the other players in the space. And I think the answers could be very frightening. Where will the political pressure be to, I mean, obviously, like, where were the political pressure come from? from for a bailout.

Like who who specifically will be the, the most sympathetic, I guess, or crucial from the perspective of our government or ostensibly, ostensibly those people, you know, behind the veil of other people wanting to be made good. You know, we know how this works, right? Like, we're going to put the most sympathetic people out there, but it's really the people standing behind them who just took a bet and thought they were going to get 40 percent returns. Now they lose their money because they risk it. But what will be the narrative to push for bailout? I think that we're going to hear a lot of economic nationalism, which is

ironic because no people could care less about their fellow Americans than the tech oligarchs. But we're going to hear, and these are all people who try to get like New Zealand citizenship, which, you know, no offense to New Zealand, but I don't think Peter Thiel is a New Zealand citizen. for good reasons. I think that they are going to say this is a matter of like America. Like we just can't lose the being at the front edge of this industry. China is going to kick our butts. We can't allow that to happen.

So I think we're just going to hear about China nationalism. These are the companies that represent our country in all the competitions that matter in the future. So I think that's the argument. Patriotism is the last resort. of some of the griftiest rich people in the history of the world. And so what would that bailout look like? Sort of, I mean, what was the SoFi Bank? We saw what that looked like.

What would the bailout look like? Sure. So I mean, so SVB, the Silicon Valley Bank, bailout in early 20203. That's what it was, the SVB. The Republican Project has long argued that that was one of the biggest mistakes that the Biden administration made. And we said so at the time, and it's only to become. more clear over time. But Silicon Valley Bank, signature bank, and one other bank who's name escapes me right now,

but they were big into crypto, and they were also run very badly, and they had the interest rates and monetary policy kind of turned against them, and their economic model collapsed. And you had one of the big Silicon Valley entities had $3 billion in a bank, and most like middle class Americans, you don't have to be rich to be aware that there's a thing called FDIC insurance and that there's a, you can put a certain amount of money in a bank and it's guaranteed. But beyond that, it's kind of on you. There's a risk. If the bank goes, you go. Any of us, if we have $3 billion, you'd think you might become familiar with a law that suggests that you can only have $250,000 in a bank safely.

Well, I would just say the reason why you would put that $3 billion in one bank, is because they then will give you all sorts of sweetheart deals associated with that. They will give you, they'll give you, I mean, I don't know if you're worried about a mortgage, but they will give you, you know, 0% mortgage. They will give you, you know, 0.01% loans at that point out against that money. That's the reason why you would do that. if you got $3 billion, you can afford to hire somebody to say, hey, put my money in a hundred banks across the country.

So I'm federally insured across the way. But the reason why you put all that money in there is because you get perks from the bank that allow you to accrue more money. And Silicon Valley Bank, as the name suggested, was located in the valley and had deep and incestuous ties with venture capital companies. And venture capital companies were suggesting to the tech industry that they should put their money into Silicon Valley Bank. And there were favors going back and forth, which is what happens in a highly overly

concentrated economy where the rich people just have a favors economy that is kind of opaque from economic rationality, but makes a lot of sense to the players themselves. So, yeah, these people went nuts. Mark Andreessen, Peter Thiel, David Sachs. They went nuts. They called in every favor in Washington, and over a weekend, the Biden administration decided to bail these banks out. And the return was that the cryptocurrency then industry spent nine figures buying elections in

2024. Crypto could have been over with as a political phenomenon in this country. They would have had the San Bank been freed scandals fall of 2022, and key banks and key entities bankrupted in early 2023, we could have been done with the crypto industry. And instead, they destroyed Sherrod Brown in Ohio. And they've, you know, obviously gone into a very lucrative partnership with the Trump family. But the crypto industry and a lot of the AI people who were associated with crypto as well, these people would have had a lot less power.

We would have never seen anything like Doge. Probably wouldn't have seen J.D. Vance on the Trump ticket. Maybe not even seen a Trump presidency had we allowed some. Silicon Valley and some of this bubble stuff to burst if we had allowed their banks to go under, which is what the marketplace was telling us should have been the result. And so that's what I fear is going to happen here is that there will be investments by the federal government that will prevent these companies that's too big to fail, a la 2008. There will be stakes taken, but there will not be voting rights that will go to the government

in any way that would mean, oh, so when Democrats get over, we can make sure that AI will happen safely and will not destabilize the workplace or will reduce the environmental harms and ensure unionized workforces, I'm sure the bailout under, you know, a Trump presidency would not look like any sort of idyllic buyout. It would just be something to make sure that our oligarchs stay super rich. And I think that would be terrible. And I think the political consequences would be dangerous for Democrats. Why? Because when Bush bailed out the bank, in 2008, but with the backing of Pelosi and Obama, it ended up hurting Democrats when Biden bailed out. I think in general, Democrats have to be stridently against bailouts in order to be the political

party that they can be. And whenever they're just like Ersatz Democrats, and they're not really FDR Democrats, and they're instead Bill Clinton Democrats, it ends up furthering the power of the political right, because at least they do fascism right, they do oligarchy right. So that's why we were urging Democrats to commit in advance that if and when the AI industry comes screaming for a bailout, you'd be prepared to say no. Now, Jeff, you have this bleak outlook of how the Democrats are going to be going to respond. But we have Chuck Schumer. We have Kristen Gillibrand, fighters for these principles.

like what what like why would you ever be even remotely cynical about either one of these two stalwarts um carrying the like what possible reason who could possibly convince them to support like for instance an AI bailout who like in Chuck Schumer's circle I can't imagine there's anybody there who would say this is what you should do dad Exactly. So Open AI, speaking of Bill Clinton, they have Bill Clinton's disaster communications expert, Chris Lehane, is the politics czar for Open AI after having masterminded the crypto resurgence of recent years. And Chris Lehane had the bright idea that, hey, why don't we hire Jessica Schumer, the daughter of Chuck Schumer as a way to like, like, deepen our ties to Chuck Schumer, the leader of the Democrats in the Senate. We also just did a report about Biden revolvers. There are a lot of tons of figures from the Biden administration who've been hired by Open AI, Anthropic, and other AI companies. The AI industry, so Jessica Schumer, the daughter of Chuck Schumer, that's particularly pernicious.

And it also goes to the fact that Senate Democrats have been slow to be as skeptical of the AI industry as they should be, especially given the tumult around data centers and the sort of all pops on all houses left, right, and center anger at the data centers. And you wonder why Democrats have been slow to be adequately angry about data centers. It might be that Chuck Schumer is so closely tied into the AI industry. But this is like a broader problem where the AI industry is hiring tons of Democrats, even as they are lining the pockets of Trump and his inner circle. So they are playing it both ways. That's insurance. That's smart politics in a two-party system. And it's the reason why people are cynical about politics. To be fair, Schumer's daughter,

she's worked in this area. Like, wasn't she also the top lobbyist for Amazon at one point? I mean, does he have multiple daughters? Or has she literally been the top lobbyist for Amazon and for like Facebook? Yeah, so he has two daughters. Oh, okay. I'm sorry. I'm getting confused. I'm getting confused.

Jessica, who now works for Open AI, was a leading figure in, or arguably the leading figure in New York State for Amazon. This was, they got their butt kicked on Amazon HQ2, where a. and Mike Generis and others pushed back on the subsidies that New York State was prepared to give to Amazon to build a headquarters in Queens. Turns out also Amazon is not finishing the efforts they started in Virginia, Northern Virginia, that the ones who supposedly won the Amazon contract that turned out to be worthless. So she did six years there. Her sister works at Mehta. So yeah, so now we've got you have a meta official and a former Amazon who's now Open AI. And I think that that reflects the fact that open A's politics are even more important right now than Amazon.

And so they're going to pay even more money for the top most connected political princelings out there. Amazon's kind of on glide path right now in terms of public policy, which is not a good state of being, but Open AI. is the one that is potentially facing a bubble bursting and has all sorts of issues with, you know, hugging face and AI security and cybersecurity. They need to really bulk up on politics. And so I think that's why ultimately OpenAI made a more compelling offer than Amazon. Is there, has there been any indication at all that Chuck Schumer is sort of almost

irrationally supportive of these entities? which are, at the very least, cynically looked upon by his constituency. If not, there's some outright hostility towards these entities. I would say he's more been absent from the discourse than like a leading pro-AI figure. I've actually, in some extent, I think Hakeem Jeffries in terms of speaking of a centrality of New York Democrats, and I'm originally from New York myself. But New York Democrats really kind of dominate the party right now. And you might think that moving from California to New York would be problematic for Silicon Valley,

but that's not proven true. Hakeep Jeffries has chosen a panel of people to lead the AI efforts and thinking within the Democratic Party in the House. And he chose people like Josh Gottheimer to be running that effort. Josh Gottheimer is who used to work at Microsoft with his mentor, Mark Penn. So this is kind of, you know, Mark Penn, Chris Lane. It turns out all my like political knowledge from the 90s is unfortunately, sadly remaining relevant in the 2020s.

But it's still all pro-corporate. And I would just say that mostly what's happened is that local grassroots communities have been way ahead of the curve of the National Democratic Party on AI. My colleagues wrote a piece more than a year ago in the prospect about how AI, Democrat should become the AI skeptics political party. It was pretty clear to us then. It's not like that was the first time we thought of it or anyone had thought of it. And it's taking a year for it to maybe sort of become the case.

We're seeing Josh Shapiro is done a 180 this summer, which I think is a sign of where a smart political figure sees the world. But I don't think, I mean, Shapiro is kind of like a generation younger. version of Schumer and Schumer has lost his fastball and it's kind of on the side of this. And insurance company, I mean, sorry, Open AI is buying insurance by buying his daughter. But I think the party is moving against AI, but slower than they should. And I blame Schumer for the party being so slow. I mean, Bernie Sanders is older than Schumer and it's obviously been way ahead of the curve

on this. Bernie Sanders came out. We spoke actually to one of the authors of the paper that inspired his sovereign tax idea on AI. And I think he's also coming out on a bill calling for a moratorium in the development of AI while, you know, we figure out a mechanism in which to, you know, deal with it. And I should say there was, I don't know if I have that thread. we can put this thread up. I mean, just, you know, it's not just a question of like the bailout, but also there are a lot of implications in terms of AI. And this is, you know, I've been skeptical as to the rate in which this is going, but this hugging face thing is distressing that the

this would have gone so awry. And, you know, I think my response to, that's not, it. It's my response to some of these talks about AI taking over is that it's a, you know, sort of a quasi-marketing ploy to make it seem more powerful

and more functional than it is. But where is that thread? Brian, do you have that thread? No. But just on that point, Sam, I think that my organization's approach to AI is a both-and, is to take all sorts of concerns about AI seriously.

And that means the data centers are raising people's utility prices and they're being pursued by a non-disclosure agreement with overmatched local governments. You can be very concerned about that and also be concerned about cybersecurity in an era of AI and potentially quantum computing. You can also be very concerned about the potential implications for the labor market. You can be concerned about the intellectual property that is being stolen. I mean, Open AI was bragging about a mathematical challenge that they solved, where they apparently did it by basically doing one extra step off of a Columbia mathematician's work

who had basically almost solved the problem but put his solve into Open AI. And then Open AI is like, oh, this guy's close to something. let's take credit for his work. So I think you can be concerned about all of these different things and you don't have to pick and choose. And I think in terms of the safety issues, you don't have to believe that the most ultimate Doomer Terminator movie paper

that we're all going to be turned into slaves making paper clips. You don't have to believe the worst scenario to think that some very bad scenarios are plausible and that the AI industry is run by people who don't really understand what they're really. models are doing. Because they essentially, they build the large language models literally are based off of being large.

There is scale. And then there are connections that are being made that are not transparent, which also has all sorts of complicated legal implications down the line in terms of attributing harm and negligence and blame that I'm very, very worried about. But there's a huge safety concerns because they don't understand the product that they are wasting upon us. I will say, I'm a little bit jaded.

This show I know has been scraped. 11,000 plus of our YouTube videos have been used by, I think, four or five different they were foundations when they scraped them. They were not-for-profits when they scraped them. And then they, the not-for-profits

provided the information to the for-profit entities. But this is from Jacob Coxon, who tweeted this, I guess, yesterday. I resigned from Anthropic today. I spent the last three years doing pre-training research at both open AI and anthropic. Neither company is acting responsibly.

They're racing straight to self-improving superintelligence and gambling with our lives. Do not underestimate the power of this technology. They'll soon be superhuman systems that can hack anything. Revolutionize any field overnight and acquire real. power resources, the people building AI earnestly believe that it could kill us by the end of the decade. This is not a marketing stunt. If anything, many executives and senior researchers were couched their phrasing in the press to sound sensible, but I hear the same people express fear, no other human activity poses a level of danger. And the common response, if they truly believe this,

why are they still building it? He says, at open AI, they may not have deeply internalized the civilizational stakes at Anthropic. The stakes are well understood, but they are locked in a race to get there first. They believe no one else will act responsibly. It's just the delusion is amazing. So they have to do it themselves. I'm still old enough to remember when Google's slogan was, do no evil. Accepting this race and entering the end game is a hubristic gamble that should not be launched

from a private company slack. And then he goes on to encourage other lab researchers to quit. But it's quite clear that we as a society have not even come close or as a political entity have come close to sort of like contemplating this stuff in any way. Neither on a like, should we be compensated for providing all the material for this level. Like, you know, like the extraction of wealth, frankly, from a water. swath of people, content creators, writers, musicians, et cetera, authors, et cetera, et cetera,

journalists. And then what it's going to do to all sorts of like to just any entity on the web. I mean, if, you know, this Google AI shit is already like probably diminishing clicks and all that stuff. And then just, you know, the potential fears down the road. At the very least,

You know, we can sit here and say that, you know, they hired Schumer's daughter because of access. But we can't say that about Kristen Gillibrand's kid, right? I mean, this guy, tell us about, about this guy, you've got to be so proud as a parent of a 21-year-old. My kid hasn't graduated yet, but I am so psyched at the idea that she's going to be able to step into a situation. to manage $22 million or whatever it is. This is great. Future's looking great. So Joel Brand's son is that,

was at Stanford and was set to graduate this summer from undergrad. We're not talking about from, you know, a graduate school. Oh, wait, he hasn't graduated yet. Oh, no, he just, you know. He's not graduated. Yeah. At this process was going on. I mean, come on, Jeff.

He's been a graduate now for almost five months. And he had this. business idea, which is, well, in crypto, you can make these complicated derivative trades 24-7. There are perpetual contracts. Why don't we try to do that with things in the real economy, not just crypto? Why don't we take crypto ideas and crypto volatility and bring it into the real economy? And he valued his company at $300 million and sold 10% of it for 30,000. million dollars. So now he has $30 million of working capital in order to bring his dream of making our economy even more like the gambling of associated with the crypto industry. And it could not

possibly be the case that the Silicon Valley investors put the $30 million into his company because his mom is crypto industry's top Democrat in the Senate. The clarity act is being negotiated right now, and she is the chair of the Democratic Senatorial Campaign Committee at this moment, and a potential Senate Democratic leader down the line. That could not possibly have anything to do with why they identified this kid as he was in the process of graduating from undergrad, as somebody for whom $30 million should be given on the assumption that this plan is going to work. Is that not a common thing? Because I've been sort of banking on this as my kid gets ready to graduate in the coming May,

is that not a common thing that someone in as an undergrad walks out of, walks off the graduation stage and their company is, people accept a $300 million valuation for a company and buy 10% of it for 30 million. Is that not common? Well, I think it's really up to you, Sam, to justify that kind of level of drift. I mean, I will say, the more powerful the majority report becomes as a program, the more valuable your kid becomes as a potential hire.

Exactly. Well, or yes, exactly. Like, I mean, if you want an inside track to getting on the show, my daughter's got like a, my daughter happens. Art projects. My daughter has quite a posh mark page. Maybe it might make some sense to buy a couple of, of use shoes or something. Well, Jeff, I appreciate your updating us on all of this. Is there anything hopeful, you can say? I do think that the pushback on data centers is really kind of amazing. People have found each other in an environment in which there's a lot of distrust in which, as you mentioned, the search engines have been further corrupted by AI.

and there's just so much pollution out there, and there's so many advantages that the AI industry in big tech has. Despite that, people across the country have found each other in these left-right alliances against big tech. And so it can still happen that people can do grassroots democracy. So hopefully they can scale that up faster than the hypers. Indeed. Jeff Hauser, founder, executive director,

of the revolving door project. We will link to the pieces that we discussed today and to the revolving door project. Really appreciate your time. My pleasure. Thanks for having me. Thanks. All right, folks. That's it for the free portion of the program today. We will head into the fun half and you can join us there by becoming a member. Join the majority report.com. if you want the inside scoop as to what's going up on that poshmark page well maybe you maybe we're going to set up a new you can I think we still have the Sam Cedar tier of the Sam Cedar tier of membership

I can check for you yeah I think that's a thousand dollars a month we should up that to $100,000 a month and then you will get the inside scoop on what's going to be on my daughter's the poshmark page before anybody else or depop, whatever it is. Join the Majority Report.com. The second somebody buys in at that, we get subpoenaed by Anna Polina Luna. Folks, I've been meaning to do this for a while, but you've got to check this out.

The F. Billionaires book by Jim DeBardt. you can buy this. This has got to be available. Where, uh, do we know exactly where it's available? You can find it, uh, for sure at, uh, well, fuck billionaires dot store, uh, www. Uh, fuck billionaires dot store. Uh, or at Jim D. Partolo.

dot com. Um, the, the graphics are amazing. amazing. Some people make a little cameo in the book. These are but and some of your other favorites. Mike Figuero is in this from the Humanist Report. A guy named Matt Binder, bin, I couldn't make it out. Matt Binder is in this. I don't want to ruin the story. I got a specific note not to do that.

But the graphics are amazing. Great book. So check it out right there. There's your... Wait, let me get his name in there too. So this way we can do a little bit of that. There we go. If you're a comic or a graphic novel person

and a consumer of this content, you'd probably be interested. Yes, indeed. So check it out. Also, um, just coffee. dot co-op, fair trade coffee, hot chocolate.

Use the coupon code majority, get 10% off, just coffee.comop. And of course, the AM Quicky. You get an email in your news in your email box every morning at 9 a.m. Two great writers. Corey Pine, Whitney Wimbish. Did I say Courtney yesterday?

Somebody said, like I combined the two? I don't know. How many times we need to talk to people? about Sam's pronunciations. Yes. No pronunciation, please, please. Even if I combine two names. It's only going to get worse.

You get it. I'm getting old. It's only going to get worse. It's not going to get better. And check out our Discord, Majority Discord.com. Matt, what's happening in the Matt Lechion Media University? Yeah, we had a show for Left Reckoning, Etienne Roses, a socialist down in Texas, joined us to talk about Elon Musk. basically taking over Brownsville, colonizing Texas,

because it turns out that's the real thing being colonized by these guys is not Mars or Venus, all that stuff is Hocom, but like our actual country that we live in. They just take that over and have their politicians give them whatever they want over the heads of the actual citizen, so it really fits in with this data center thing. And talked about Ken Paxton's horrible fashion that even the president of the United States can't stop emphasizing.

So check that out. Patreon.com. Just Left Ricken, we'll have a Sunday show for supporters of us at patreon.com. So, left record. Folks, see you in the fun half. Left is best. Jamie and I may have a disagreement. Yeah, you can't just say whatever you want about people just because you're rich.

I have an absolute right to mock them on YouTube. He's up their buggy whipping like he's the boss. I am not your employer. You know, I'm tired of the negativity. I'm sorry. I didn't mean to upset you. You're nervous. You're a little bit upset.

You're riled up. Yeah. Maybe you should rethink your development. defense of that, you fucking idiots. We're just going to get rid of you. All right. But dude. Dude.

Dude. Dude. Dude. You want to smoke this joint? Yes. Do you feel like you are a dinosaur? It's a good shit. Exactly.

I'm happy now. It's a win, win, win. Hell yeah. Now listen to me. Two, three, four, five times. Eight, four, seven, nine, six, five. 501, 457, 2, 38, 56, 27, 1 half, 58s, 3.9 billion. Wow.

He's the ultimate math, third. Don't you see? Why don't you got a real job instead of stealing vitriol and hatred you left Wienlembaw? Everybody's taking their dumb juice today. Come on, Sammy. Dance, dance, dance. Grand Paul, I had my first post-coital scene with a, oh, what, I'm hoping to add more moves to my repertoire.

All I have is the dip and the swirl. Fine, we can double dip. Yes, this is a perfect moment. No. Wait, what? You make under a million dollars a year. You're scum. You're not paying you.

Excuse me? Fuck you. You fucking liberal elite. I think you belong in jail. Thank you for saying that, Sam. You're a horrible, despicable person. All right, going to take a quick break. I'll take a moment to talk to some of the libertarians out there. Take whatever vehicle you want.

To drive to the library. What you're talking about is jibber jabs. Classic. I'm feeling more chill already. Donald Trump can kiss all of our asses. Hey, Sam. Hey, Andy. You guys ready to do some evil?

Hitler was such an idiot. You think I might be a Nazis. Agreed. No. Death to America. Two. Yes. Wow.

Wow, that's weird. No way. Unbelievable. This guy's got a really good hook. Throw our hands on. Wow. But, Sam, I've got to get off. No worries.

I want to just flesh this out a little bit. I mean, look, it's a free speech issue if you don't like me. Hey, hey, hey, hey, shut up. Thank you for calling into the majority report. Sam will be with you shortly.