The Philip DeFranco Show - Dave Chappelle Blamed Republicans & It Backfires

Starting point is 00:00:00 Dave Chabelle just called out Republicans for, in his words, weaponizing his transgender jokes. And that's just one of the things that's blown up today with this whole new NPR interview we did. Let's start with this trans jokes controversy, which was sparked by his Netflix special to closer, though definitely not limited to that. And in the special, among other things, he referenced J.K. Rowling, saying gender is a fact. And then added himself, I'm Team Turf. I agree. Gender is a fact. With that and other parts resulting in Netflix employees actually holding a walkout and protest. And the backlash was huge. But it became one of the defining moments of the culture war around comedy and transgender rights.

Starting point is 00:00:28 But then also being something Dave returned to in other specials and other places. But in this NPR interview, you had Dave saying the whole thing was just blown out of proportion. So much of that was a media phenomenon. What was happening in actual life versus how the media was reporting on my show. And I feel like the way they were put on that show was rage baiting to some degree. They almost reported on it as if I was doing something other than a comedy show. And then you had Chappelle going directly at the Republican Party. And I did resent that the Republican Party ran on transgender jokes.

Starting point is 00:01:03 You know, I felt like they were doing a weaponized version of what I was doing. I didn't, I didn't, it's not what I was doing. Chappelle then also told the story of being on Capitol Hill and saying, you know, he was taking photos with whoever asked, dozens of people without knowing their politics. And then, here comes Lauren Bobert. And she said, can I get a picture? And I'd already taken 40 pictures. I didn't want to say no for everybody.

Starting point is 00:01:24 But I didn't know the phrase I respectfully declined. So I just took the picture and then she posted a picture before I could even get from there to the show and says something to the effect of just two people that knew that is just too generous. She instantly like weaponized or politicizing. So I got to the arena and I lit her ass up for doing that. And that post from Bobert's actually still up and at the time you had a lot of people seeing Dave smiling with her and assuming that he'd gone mega. But at least based on what he's saying now, he's saying that was never his intent. And well, you've seen a decent amount of people celebrating him going after Republicans, though a lot of Republicans, not Lovin that. You also have people pushing back on Chappelle here saying that he's rewriting history, that he's kind of trying to manipulate the narrative. And then also with that arguing that he was already using Republican talking points in his material, so he shouldn't be surprised by the audience that followed. But then you also saw people defending Dave's argument saying that there is a difference between a comedian working through ideas on a stage and a political party that's turning those ideas into campaign messaging. But that also wasn't the only controversy that he addressed. There was also the backlash over performing at the Riyadh Comedy Festival in Saudi Arabia, where critics accused him and other comedians of turning a blind eye to human rights abuses for a paycheck.

Starting point is 00:02:27 The United States government does business with the Saudis. Netflix does business with the Saudis. Everyone, Saudis financed tons of movies. All these things. I know I see them financing boxing matches and all these things. And none of these things were an issue until I went there. Now, why is that? As soon as a black man can make money off the plantation,

Starting point is 00:02:48 they try to tell you that the money is dirty. Well, okay, I'll go home and spend the money with actual slave owners on it. Where is this clean money? Chappelle also argued that exporting comedy to audiences who can't always speak freely is actually one of the most positive things American culture can do. That must have felt incredibly cathartic if you can't say everything you want to say, but you see somebody model that behavior. Oh man, you're gonna want it. So if you think of all the violence and all the things we export to the Middle East, I think our culture is the best export we got. And again, you saw people split. Some saying that his defense, it makes sense. So you would others saying they felt like it was weird that he mentioned that he was a black man,

Starting point is 00:03:29 and he was trying to turn this into a situation about race because a lot of people were angry at other comedians regardless of their race. Others arguing that it's very weird that he's trying to act like a hero for bringing comedy somewhere when he's getting such a big paycheck. And actually on the note of gaining wealth from the Saudis, we then get to Trump. Ricka Chappelle was also asked about Trump, specifically the idea that some people find him funny. Maybe if he wasn't president, I think that was funny. Or maybe at times, I mean, I do think he, You know, that's wearing thin. There are funny things about him.

Starting point is 00:04:01 Like, if I were to talk about him, like it would be funny. But I think what he does is so consequential. Right, so essentially, Chappelle's saying, there is a line and humor requires some distance from consequences. This idea seeming to be when consequences are real, things like wars, constitutional crises,

Starting point is 00:04:18 people's lives being destroyed, the isn't he funny framing stops working. And then the final thing I'll say that has popped and spread from this interview so far is that NPR noted that Dave, He's been ending his shows by telling audiences to stay sane together and take care of each other. And you had him explaining why and clips that have been getting shared around. Information and the types of things we're hearing every day in the news and seeing around us,

Starting point is 00:04:38 it's almost like a psychological torture. What we're collectively going through. The amount of animosity we have for one another. It takes so much courage sometimes just to come see a show and they come. And we're together. And I feel like the exercise are doing that show. It's like people actively trying to stay sane together. Like, let's just stay at it.

Starting point is 00:05:02 Like, remember how good it feels will be together, take care of one another. Right, and then on the broader question of free speech and comedy, whether a stage should make room for every voice, even ones that you disagree with, you had Dave saying this. I don't silence your champions. In fact, I make space for your champions to have a voice. But I'm not your champion. And I am someone else's. You can't silence the team that you don't like what they're saying. But you do have the opportunity to go on after them, say your peace.

Starting point is 00:05:38 If I see these same people throughout my life, then clearly they're part of my community. And everyone's in it. There's, you know, trans stand-up comedians. There's every sexuality, every kind of identity. And we support one another. So you know, with all that, I gotta ask you, what are your thoughts here? What are your reactions, your opinions, all of that? I'd love to see it in the comments down below. Especially because depending on where you go on the internet, very different reactions. Because there are the Dave Chappelle defenders, but also he is pissed off people on the left people on the left on the left people on the left on the left on the left on the left saying what is trying to one, why is he going woke? Why is he throwing Republicans under the bus? Right, a number of them saying things like he's a coward or a hypocrite. And then on the left, while yes, you have people liking that he's taking a shot at Republicans. You have plenty of people saying that he's trying to one, either re-werell. right history, or two, he's being disingenuous. Are you seeing people say things like Dave Chappelle not understanding how his jokes against trans people contributed to our current political hellscape

Starting point is 00:06:30 illustrates how so many of y'all are dumber than you think? Another is saying that Chappelle was doing the same thing Republicans were doing at the time. Just instead of gaining power in office, he was making money hand over fist with more Netflix deals. But again, I really would love to know your thoughts here. But then, we're also seeing the political divide play out in schools because Turning Point USA now has nearly 3,400 high school chapters across the country, and Republican governors in at least eight states are actually partnering with them. You're not super familiar, Turning Point USA started on college campuses back in 2012 as a hub for students committed to conservative values. Harley Kirk built it into one of the most influential conservative organizations in the country, championing what he framed as free speech on campuses.

Starting point is 00:07:04 But critics, they saw it differently, arguing that TPSA was hostile toward the LGBTQ community, non-Christians and non-conservatives generally. Right now, TPP USA has expanded into high schools under the name Club America. And as mentioned, there are nearly 3,400 chapters, and they're growing. And you have Republican governors in Nebraska, Arkansas, Texas, Oklahoma, Montana, Florida, Tennessee. in Indiana, having formerly partnered with the organization. And a big thing for a lot of people is that the language surrounding the expansion is heavily religious. And if you're a chapter leader or you're part of a chapter and you are a believer in Christ and you are getting persecuted for your faith and your values, you're being persecuted because

Starting point is 00:07:39 you believe in Jesus Christ. Don't let anyone disenfranchise you because you're a young man, especially a young white male man. God has created you for a purpose and a reason far greater than you and I will ever know on this side of heaven. And these partnerships take this from, you know, a student club issue to a constitutional one. Governors like Sarah Huckabee Sanders, they're not just allowing these chapters to form. They are actively endorsing them. It's the exact type of civic engagement that we want to see at schools across our state.

Starting point is 00:08:08 It's never too early to learn the values of faith and freedom that power our country. And if school administrators try to suppress students' freedom of speech, as we have seen in other states, Let me assure you that conservatives have just as much of a right to speak their mind as anyone else in the country and we will stand up for you. You have many critics saying this just crosses a line with one student, just putting it simply, saying we're a public school, where you shouldn't be a school or a state even that is telling people what they should believe it. Also, the ACLU of Arkansas says that Sanders support demonstrates differential treatment based on the content or viewpoint, which they argue is a First Amendment violation. And you would Nebraska's largest teachers union saying if a Democratic governor made similar moves backing a left leaning group, Republican leaders would be running to the press to talk about how awful that is. And so they're asking, how is this any different other than you benefit?

Starting point is 00:08:59 But with all this, you have turning point pushing back on that framing with the organization saying, the state of Arkansas is not forming our chapters. They're not doing our jobs or our students' jobs for us, nor are they saying other groups can't be formed. And they argue, governors are simply stating that students cannot be blocked from forming a Club America or a TPSA College chapter when students want to start one. And all that is, technically, TPSA's official mission focuses on what they say is fiscal responsibility, free markets, and limited government, not religion. So the language surrounding the organization is saturated with Christian messaging.

Starting point is 00:09:28 The state admission, the official thing, is secular enough to make the legal case complicated. And then also, there's another aspect at play. Some club America students say that they have faced genuine hostility. We faced opposition from teachers and students. They organized online and at school, trying to cancel the club, tearing down our posters, disrupting meetings, pressuring people to quit. Adults in the community amplified this position online. Ultimately, the police needed to become involved for my safety.

Starting point is 00:09:53 And yesterday it was reported that Erica Kirk dropped out of a UGA event with J.D. Vans due to safety threats. So also with that, you had some people skeptical or pushing back. Some saying that if there was a threat and the venue wasn't safe and so Erica Kirk didn't show up, then why would it be safe enough for the vice president? And while of course, I'd love to know your thoughts there, really with the rest of the story, once we're done, here's what I will say. Obviously, no one should be threatened for their political beliefs. That's not up for debate.

Starting point is 00:10:14 But that is a completely separate issue from whether state governments should be officially partnering with an organization that sounds like this at events. Charlie wasn't impactful because he was great. He was impactful because God is. And Charlie allowed him to use him and work through him. And each of us have that opportunity. We can take the lessons that he taught us and allow God to use us just as Charlie did. The same leaders who fought to restrict speech around sex education and LGBTQ issues and schools are now easing up when it comes to conservative clubs with heavy. religious overtones. And after Kirk's death, it was heavily covered. His critics, they've been

Starting point is 00:10:53 fired, investigated, they face retaliation. And so the free speech lane here, it only seems to run in one direction. For conservatives, they get governors back in their clubs, but everyone else, they get told they're grooming children if they mention that gay people exist. You know, here's how we'll close it is starting with the legal reality. There is probably nothing illegal about Club America existing in schools. Student clubs are protected, governors endorsing civic engagement. That's normal, and TPP USA's official mission is technically secular enough to dodge Establishment Clause's challenges, even if their rhetoric actually in action at events is just drenched in Christian theology. But the broader question, it goes beyond legality.

Starting point is 00:11:25 When a governor says it's never too early to learn the values of faith and freedom, she's not talking about all faiths. But when a speaker tells a room full of high schoolers not to be, quote, disenfranchised because you're a young white man, that's not civic engagement, that's identity politics dressed up as patriotism. When the same states banning books and restricting classroom discussions about race, gender, sexuality are actively partnering with a group whose event features speakers say you are being persecuted because you believe in Jesus Christ, the inconsistency is not subtle.

Starting point is 00:11:52 Free speech is free speech, or at least it's supposed to be, and Club America has every right to exist. But the party that spent years screaming about indoctrination in schools is now partnering with an organization that opens its event with Christian theology, tells white boys, hey, you're being persecuted, you're a victim and has the explicit backing of eight Republican governors. So for me, the question isn't whether it's legal. The question is whether anyone on that side of the aisle would actually tolerate it for a second if the shoe were on the other Because you and I, we already know the answer to that. But then also, as we're talking about what our representatives are doing, we should talk about

Starting point is 00:12:22 how in Congress, lawmakers are trying to oust even more representatives after pressuring Eric Swalwell and Tony Gonzalez to resign earlier this week. Because it looks like they're going for yet another two for one, one Republican, one Democrat. First up, you've got the Ethics Committee investigation into Republican Cory Mills of Florida covering a staggering range of allegations. With that including sexual misconduct accusations that stemmed from two separate instances. Last year, DC Police investigated Mills for misdemeanor assault after his girlfriend accused him of attacking her in his home, though she later recanted. And then in October, a Florida judge issued a restraining order after a different

Starting point is 00:12:49 ex-girlfriend accused Mills of revenge porn, threatening to leak nude photos and to try to harm her future partners after she ended the relationship. But also, the misconduct allegations are just the beginning. Where the Office of Congressional Ethics found what they said was substantial reason to believe Mills misrepresented information on his financial disclosures, accepted campaign contributions beyond the legal limit, and illegally enriched himself from federal contracts. And the OCE report specifically noted that since 2024, 94 federal contracts have been awarded to companies owned by Mills. And that includes federal weapons contracts worth nearly a million dollars that went to a company that he had an ownership stake in.

Starting point is 00:13:19 But Mills, he's denied the claims and has refused to cooperate with the OCE investigation. And so in addition to the claims laid out in the OCE report, the ethics panel is also looking into whether Mills misused congressional resources leveraged his position to get special favors and improperly solicited or received gifts. So now with Gonzalez and Swalwell's exit, it's fresh in everyone's minds, there's a growing movement to add Mills to the list. So with that, you had AOC saying, I'm glad that Eric Swallow is leaving.

Starting point is 00:13:41 I'm glad that Tony Gonzalez is leaving. Frankly, I think Courtney Nelson should probably be on that list as well. It's not just Democrats supporting this move. You had Lauren Bobard, for example, telling reporters. We're gonna see what's going on. I mean, there was an ethics investigation. I mean, obviously, Republicans have been covering to, I don't know, protect people from, I don't know what.

Starting point is 00:14:02 Listen, if you have restraining orders because you're abusing women and that's true, Like, you have no business being here. I'm tired of protecting these people with horrible paths and who are really victimizing women. Right, that is Lauren Bobert saying that she is tired of protecting members of her own party. And when you take into account everything, Bobert, when she's the one calling for accountability, things have gotten pretty bad. But also, there's reportedly bipartisan support from both leadership and rank and file members to hold off on any action until the Ethics Committee finishes its investigation, which could take a walk.

Starting point is 00:14:33 But that note then brings us to the situation with a Democrat because it is more advanced and more clear cut. Right, because the ethics panel has already found Democratic Representative Sheila, Shearfulis, McCormick of Florida, guilty of 25 charges of violating House rules and ethical guidelines. And the core allegation is that she illegally misused $5 million in FEMA disaster funding to finance her own congressional campaign, which yeah, fucking yikes. And then on top of that, she's been criminally indicted by a federal grand jury over the same allegations. You've got the ethics panel scheduled to meet on April 21st to announce recommended sanctions, which could include expulsion. And House Speaker Mike Johnson, fresh off the heels of definitely not seeing whatever Trump just posted, said that he believes that there will be a consensus to expel her in the House. You know, one of the notable things here is that the accountability pushes is genuinely crossing party lines, at least I'll say in rhetoric. Where Democrats are calling for Mills to go are saying the same standard should apply to their own side.

Starting point is 00:15:15 So, for example, when AOC was asked if Shafilis McCormick should be expelled if she doesn't resign, she said, yes, if the ethics committee found her guilty, then I would vote in accordance with that. And that is significant, that is important because, you know, it's one thing to call for the other parties members to be expelled, but it's a whole other thing to say the same thing about your own. Especially because expulsions are extremely rare. It requires a two-thirds majority. Of course, it does happen. you had Congress expelling George Santos under similar circumstances, right? There was that devastating ethics report, but it was also combined with a federal indictment. So there is precedent there.

Starting point is 00:15:41 And then there's more we've got to dive into in just a minute, but first, let me thank a sponsor and say that did you know that today's sponsor, fast-growing trees, is America's largest online nursery with over 2 million happy customers? So whatever sad situation you've got going on in your yard right now, don't worry, like, there is help. Because it turns out picking the right plant, it is weirdly complicated. You've got climate, soil, sunlight, watering, and actual survival to think about. And fast-growing trees, they make that whole process,

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Starting point is 00:17:00 that could send energy prices spiring. even further, netting oil companies billions more on top of the profits that have already been staggering according to a new analysis. But let's start with the latest deployment of American service members to the region. Because that number is reportedly around 10,000, with that including 6,000 troops aboard the USS George H.W. Bush, which along with several warships escorting the carrier are expected to arrive on April 22nd. Then, another 4,200 Marines are expected to arrive near the end of the month. Instead, would bring the total number of troops in the region to around 60,000, while the total number of aircraft carriers deployed would be three, each with dozens

Starting point is 00:17:31 of fighter jets, a company, by several warships. And this continued buildup of American military forces in the region, it's meant to ramp up the pressure on Iran to agree to the White House's terms for a peace deal. But, you know, for that to work, of course, Iran has to actually believe that the U.S. would consider putting those troops to use. And while the Trump administration, they're reportedly considering the possibility of additional strikes or ground operations if the current ceasefire doesn't hold and a deal is in reach. Now, when it comes to ground operations, as we've talked about, the administrations discussed everything from going after Iran's uranium,

Starting point is 00:17:55 to seizing Kargai Island, to landing Marines on other key islands and coastal areas in order to reclaim the and having a greater presence in the region would also give the military more flexibility. And with that, you had a retired Navy Admiral who's now dean at the Center for Maritime Strategy telling the Washington Post, the more tools you have in your kit, the more diversity of options that you have. With them then calling the new forces arriving a reserve capacity in the event that things go sound. You've also had the White House Press Secretary Caroline Levitt saying in a statement that Trump has wisely kept all options on the table in the event that the Iranians will not forego their nuclear ambitions and make a deal that is acceptable to the United States.

Starting point is 00:18:25 But with that, Iran has long said that it is no intention of building a nuclear weapon. In fact, the country's previous Supreme Leader issued what's known as a fatwa against building one, and American intelligence assessments have consistently said that before the war began, Iran had been undecided over whether to pursue one. That is, unless its enrichment sites were attacked or its Supreme Leader was killed. But also, despite the fact that the US and Israel have now crossed both of those lines, the country's current leaders still seem willing at least to say that they won't build a bomb. They just say that they don't want to give up their civilian nuclear program, which they've used in the past to enrich uranium to levels beyond what it's needed for any civilian purpose.

Starting point is 00:18:55 But in any case, there. Talks between the two sides reportedly fell apart this weekend, and large part due to a Iran's rejection of the administration's demand that it's to spend all nuclear activity for 20 years. Because Iran, they're apparently only willing to agree to five right now. Though also, as we've talked about, any deal letting Iran get back to enrichment at some point in the future could be seen as a failure by Trump to live up to his promise to keep the country from ever being able to have a nuclear weapon. And it would make whatever deal he gets closer to the 2015 deal that was negotiated under Obama,

Starting point is 00:19:19 which he withdrew the United States from and repeatedly dismissed as one of the worst deals ever made. Right. And then after the news broke about his negotiating team's request for a 20-year suspension, and he told the New York Post that he wasn't happy with that offer, saying, I've been saying they can't have nuclear weapons, so I don't like the 20 years. I don't want them to feel like they have a win. Of course, as anyone who's kind of lived long enough to see, it's successful negotiating is often letting both sides feel like they got a win, at least in some way.

Starting point is 00:19:41 No one's ever fully happy. But that's also an especially big ask with Trump, and with that you had a former secretary of the U.S. Army who now heads the nuclear threat initiative explaining. A big challenge for the administration is that for the Iranians, their nuclear program has been so central to their cause for so many years. It's part of the whole regime identity, a source of national pride, and it's been held up as one of the reasons why the public has to endure economic privations.

Starting point is 00:20:01 And then with that, she added the concern she has had since the latest war began is that the administration's pressure will convince the Iranians of the necessity to rush for a bomb. But then with all this, and maybe despite all of that, Trump on Fox Business said that he thought that the war in Iran is very close to over, and then added, If I pulled up stakes right now, it would take them 20 years to rebuild that country, and we're not finished. We'll see what happens. I think they want to make a deal very badly. Trump also re-empt his threats to perpetrate what experts say would just be war crimes with attacks on Iranian civilian infrastructure. We could take out every one of their bridges in one hour. We could take out every one of their power plants, electric power plants, in one hour. You know, the main way that the U.S. is applying pressure right now actually appears to be Trump's blockade on the Strait of Hormuz.

Starting point is 00:20:45 You had U.S. Central Command saying yesterday that more than 10,000 U.S. sailors, Marines, and airmen, along with over a dozen warships and dozens of aircraft are involved in the blockade, and then also claiming that American forces had already confronted six merchant best. departing in Iranian port and forced them to turn back. And notably with that, according to officials, none of those six encounters required the use of force. And they clarified that the blockade only applies to ships that were in an Iranian port or pulled into one

Starting point is 00:21:05 after 10 a.m. Eastern time on Monday. Which explains why two ships that had been in Iranian ports before then were allowed to pass after the blockade went into effect. You also had one official explaining to the Washington Post that American naval forces enforcing the blockade are hanging around Iranian ports or in the Strait of Hormuz itself, instead saying, Our Net is the Gulf of Oman.

Starting point is 00:21:21 There's one way in and one way out. We've got the whole thing on lockdown. And then later last, last night, you had sent Com's commander saying in a statement that the blockade has been fully implemented and adding an estimated 90% of Iran's economy is fueled by international trade by sea. And claiming that in less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea. But also, at the same time, more than a dozen ships without links to Iran,

Starting point is 00:21:44 move through the trade on Monday and Tuesday, according to a maritime tracking company. But also now, you have Iran threatening to clamp down on trade again, not just in the Strait of Hormuz, but elsewhere. Where with the head at Joint Military Command that overseeds the Revolutionary Guard Corps in the army, claiming that if the blockade creates insecurity for Iran's commercial and oil vessels, they will consider it a prelude to violating the ceasefire and adding. Iran's powerful armed forces will not allow any exports or imports to continue in the Persian Gulf, the Sea of Oman, and the Red Sea. And while that sounds so alarming to most people,

Starting point is 00:22:10 there are also some who are rubbing their hands together and looking their lips. I'm talking about the people who make money when oil prices go up. And I especially wanted to hit on that because of a new analysis from The Guardian that's really put into perspective just how much money we're talking about. Reportedly, the world's top 100 oil and gas companies banked more than $30 million every hour in unearned profit in the first month of the U.S. Israeli War in Iran. And if the price for a barrel of oil continues to average around $100, they will collectively make an extra $234 billion by the end of the year.

Starting point is 00:22:37 And those profits, they come as ordinary people are paying more and more just to fill up their tanks and power their homes. And in fact, all of this, it's led to dozens of countries cutting fuel taxes to help struggling consumers, meaning that these governments are also now raising less money for public services. And this has actually led to the finance ministers of Germany, Spain, Italy, Portugal, and Austria to ask the European Commission to implement a new windfall tax on energy profits, writing in a joint letter. It would make it possible to finance temporary relief, especially for consumers and curb rising inflation

Starting point is 00:23:01 without placing additional burdens on public budgets and adding. It would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public. There also with this, you have others arguing that everything that we're seeing right now, it's clear evidence of the need to move away from oil and gas and to invest in renewables. Are you the head of investigations at Global Witness, which was involved in the analysis, saying, Moments of global crisis continue to translate into bumper profits for oil majors while ordinary people pay the price. Until governments kick their fossil fuel addiction, all of our spending power will be held hostage to the whims of strongmen.

Starting point is 00:23:30 And actually on the subject of strong men, I'll point out one in particular, Vladimir Putin. Right, because among the companies that may make the most money at all this, three are from Russia. And they reportedly stand to make an estimated $23.9 billion in Iran-related war profits by the end of the year. And that's as Russia already earned $840 million a day from oil exports in March. That's 50% more than in February. But then, to get back to the U.S. war with Iran, there are reports of progress and talks between the two sides, which are currently being facilitated by Pakistani, Egyptian, and Turkish mediators. And you had one U.S. official telling Axios that Trump's negotiating team continued making calls and exchanging draft proposals with Iranians and mediators yesterday.

Starting point is 00:24:03 And you had another claiming, we want to make a deal and parts of their government want to make a deal. Now the trick is to get the whole of government over there to make the deal. And with that, a new round of direct in-person talks are expected to take place at some point before the ceasefire expires, but it's not yet clear exactly when. And these talks would likely only land some kind of framework. work agreement at best, which would then require an extension of the ceasefire so a more long-lasting deal could be made. And then also, speaking of ceasefires, we're now surprisingly seeing reports that Israel is considering a short-term ceasefire in Lebanon. Or with the country's high-level security cabinet reportedly set to discuss the possibility when it meets tonight. This, of course, is coming

Starting point is 00:24:34 after the two sides met for historic talks in Washington, D.C. yesterday. And so for now, we're going to have to wait to see if anything comes from either of these separate, but connected negotiations. And then there's more that we've got to dive into in just a minute, but first let me thank a sponsor and say, you know, I get asked a lot about Z-biotics pre-alcohol and if it actually works and yeah, it really does. Because I love using today's sponsor Zbiotics pre-alcohol probiotic because it genuinely helps with those rough necks mornings. This isn't one of those, you know, drink more water and manifest wellness type fixes. Zbiotics pre-alcohol is the world's first genetically engineered probiotic designed by PhD scientists to save you after a crazy night out.

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Starting point is 00:26:47 The company best known for making wool sneakers for tech bros is now pivoting to artificial intelligence. Right, Allbirds, which was once valued at over $4 billion, but then dropped 99%. They just announced that they're rebranding as New Bird AI, and they're getting into the GPU leasing business. And while you might be confused or even scoff at that news, the stock price jumped 330% when that news came out.

Starting point is 00:27:07 And also as part of the pivot, they're asking shareholders to vote to remove the company's environmental conservation mission from its charter. And so you have a shoe company that said that it existed to save the planet, and it's now stripping that purpose from its founding documents so that it can lease computer chips. And it's why you're seeing some people saying, you know, this is the AI bubble all in one story. But so if you don't know, Allbirds have started back in 2015 by Tim Brown, who's a former pro player and Joey Zwillinger, who came from a background in renewable materials. And the idea was to just build a shoe company around sustainability, replacing synthetic materials with things like Marino Wool. And the first product, which you've probably seen, if you've ever seen a picture of a tech bro, was their wool runner.

Starting point is 00:27:36 And it took off immediately, especially with the California Silicon Valley crowd. It had this comfort meet sustainability pitch, though, some of the first. Some people said it was just virtue signaling. And they also, they weren't just e-com DTC. They opened stores, they built a whole brand. They went public in 2021 at a valuation above $4 billion. Then things took a turn. They went from a darling to a loser, the market moved on.

Starting point is 00:27:54 You had bigger brands starting to copy their playbook. And the cost of finding new customers, it just kept going up and up. And the revenue, it plunged over three years, dropping from $298 million in 2022 to $152 million by 2025. Again, the stock price dropped more than 99% from its IPO high. Right, it made my YOLO investment into Pelotone, during the pandemic look like maybe not the worst decision. So with that collapse, you saw their

Starting point is 00:28:16 stores closing back in February and last month, Allbirds actually sold their brand, intellectual property and remaining assets to American Exchange Group for $39 million. Which yeah, is just a crazy fall from a company again that was worth more than $4 billion. Now we're seeing that shell, that corpse of a company, becoming an AI company. But there's new Allbirds announcing that it's pivoting to quote, AI compute infrastructure with a plan to become a fully integrated GPU as a service and AI Native cloud solutions provider. And they're planning to raise $50 million in convertible debt though, they haven't said who's putting up that money. Regardless of who it's with, the deal is expected to close in Q2 of 2026. And so with that, the company plans to rename itself

Starting point is 00:28:49 New Bird AI. Right, as far as people who still had their money in this worthless shoe company, they woke up this morning and the stock price quadrupled, all seemingly because a press release came out with the word AI in it. And if that part wasn't telling enough, the whole destruction of the mission charter, that tells another part of the story. Or because All Birds was incorporated as a public benefit corporation focused on environmental conservation. It was literally part of the legal DNA of the business. But you've got shareholders being asked to vote on May 18th to remove all references to environmental conservation from the charter. With the SEC filing saying the anticipated electronics infrastructure business would be less focused on the public benefit of environmental conservation.

Starting point is 00:29:21 Which less focused is, yeah, sure, one way to put it. And you know, if any of this, it feels familiar, yeah, it should. There is now a long history of struggling companies pivoting to whatever Wall Street's excited about at that specific moment. Right during the Bitcoin boom, you had random companies just slapping blockchain onto their name or announced some kind of vague crypto initiative and the stock would just spike overnight. I mean, Long Island Ice-T renamed itself Long Blockchain Corp in 2017. The stock price tripled. And so now we're seeing this Allbirds parallel. It's doing the same thing with AI. A company with no experience in computing infrastructure, no existing hardware, no technical team that's been at least disclosed and no track record in the space. They're telling

Starting point is 00:29:53 investors, hey, we're going into one of the most capital-intensive, technically complex industries on the planet. And the stock price jumped 330% because people in the market heard what they wanted to hear. So ultimately, I wanted to talk about this because this isn't a story about shoes or really even about AI. It is a story about what happens when a market gets just so overheated over whatever the buzzword is, with it right now being AI. A publicly traded company, albeit pretty much a dead publicly traded company, essentially just got body snatched. But also, don't get a twist. It could work. 50 million dollars in funding, it sounds like a lot until you consider that that specific market is huge. InVIDIA has a market cap approaching $5 trillion. And their plan,

Starting point is 00:30:28 which is essentially to buy hardware and rent it out, that actually it might work. Because GPUed man, it is real in the market for compute leasing. It is growing. But it's also wild that vehicle that they're using to do this is essentially what it was 100% against. But for now, that is where we are. And in the meantime, I'd love to know your thoughts, opinions, reactions, and actually, whether it's to this or anything else in today's show that stood out to you. But then, my friends, you beautiful bastards, is the end of your Wednesday, Philip DeFranco's show.

Starting point is 00:30:52 Though, it is not the end of the fun. Let's be honest, though, today's show wasn't, never, none of these shows are ever fun. They're informative. But also, if you want something informative and cathartic, but also fun, you should definitely check out today's brand new episode of crashing out that dropped. And if you've never watched the podcast, just give the first 90 seconds of today's show a swing. I'm not going to even give you a trailer at the end of today's show. You just need to experience it.

Starting point is 00:31:13 So click or tap, I got links in the description as well. But no matter what you do, thank you for watching. I love yo faces and I'll see you right back here tomorrow.

The Philip DeFranco Show - Dave Chappelle Blamed Republicans & It Backfires

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