Jul-22-17-RESULT.TXT

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good afternoon welcome Milan I was going to take off my ties I don't had if I do that I came in with it but then I was like to tell this bit tired so then we'll both be more comfortable that's good well thanks appreciate your being here today 
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not when I'm with you it's difficult to know where to start what start just what drives you what what is it that when you wake up in the morning to see a problem and you want to solve it a good thing I took drives me is that I want to be able to think about the future and you feel good about that so. 
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you know what we can to I have a future baby be as good as possible to be inspired by what is likely to happen and look forward to the next day I'm so that's that's what really drives me is is is trying to figure out how to how to make sure that things are great and I'm going to be so and that's the 
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online principle behind the Tesla and SpaceX is that I think it's pretty important that we accelerate the transition to a sustainable generation and consumption of energy it's it's inevitable but it's it matters if we had if it happens sooner or later and then SpaceX is about helping make black multiplanetary and doing work 
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can to continue the the dream of Apollo and ultimately make pot Fusion to life becoming a multi planetary was talk more about that I think everyone very interested that when you say make you laugh multiplanetary that's exciting it isn't even there I think you have to take away for Americans in over liking about America is a nation of Explorer 
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people can't hear from other parts of the world that you know shows to give up the known in favor of the unknown so I think Exploration Lite States is a is a distillation of the human Spirit of exploration and so that's why it appeals to American so much you know you can see this when it said it was a shuttle tragedy and 7 people died 
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and that's that's terrible but you're a lot of people die all the time why do we care so much because it was the dream of exploration that was dying along with those people that's why no it I'm one of those and then probably like many of you remember exactly where you were when that that tragedy happened so you have 30 plus Governor's here today and we're very excited about your willingness to be with us 
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new hopefully heard me talk a little bit about my initiative which is being ahead of the curve what do you tell us as Governors what we what should we be thinking about in terms of innovation and in developing public policy for the future well it sure is important to get the rules right and and I took it in terms of 
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legislative and executive actions you know what sort of like if it's a professional sports or something if you could you don't have the rules right if there isn't then if it if the game is set up properly cuz I'm going to be a good game so it's real important to get the rules right I think it's worth noting that I think still 
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and I staged the rules are still better than anywhere else but the you know it's very easy to put something in place which is an inhibitor to innovation without realizing it so in terms of the regulatory environments It's always important to bear in mind that regulations are immortal 
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I bet they think they never die unless somebody actually goes and kills them and then they got a lot of memento so lot of times regulations can you put in place for all the right reasons for the number to goes back and gets rid of them afterwards when they were drilling to make sense that used to be a rule in the early days when people concerned about automobiles cuz that was pretty scary thing Shakira just gone wrong fight self and I remember what those things might do so 
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they're like rose where you have to a lot of States we have to carry a lantern in front of the automobile add like a hundred Paces ahead of the one reveal they have to be someone with a lantern on a pole okay but it's really got rid of that regulation that I did you know so so just regulations even if done correctly and 4 and I'm being right at the time it's always more to go back in 
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feathers periodically to make sure they still sensible and they still serving the greater good I think in terms of tax structure what what is what is economically Ascension what it is what is not economically incentive just make sure that the incentive structure is is correct I think I'm saying just totally common-sense things here but um if you can omits 101 what are you what have you and sent will happen so 
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if you sent one thing that thing will tend to have more than the other thing you said another thing that nothing will happen and so the Deacon ommix should favor Innovation and it doesn't pick me important to protect a small to medium-sized companies because it's would like credit card Tree in a forest like it's real hard for a new company to to grow when it's just a seed 
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or sapling these lot more protection than if it's giant Redwood or something like that so Albert very important to give support to small and small to medium-sized companies in The Innovation front and the other ones that that made it more than big companies and I think this point is almost big company biggest company anyway so I favor you know 
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small companies in Tesla relatively speaking what would your response be because there are critics out there with regard to incentives and that Tesla has been and I can speak from experience the beneficiary of of incentive so you can ahmic incentives when with regard to the to the gigafactory show what would you tell those those people I think you know the 
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were little overstated the case of the gigafactory it's a five billion dollar investment capital investment to get that a fact you're going and I don't actually know this into weather what weather I didn't know this until we did the press conference at actually that that that over 20 years the nevadan centers added up to 1.3 billion accident even know this but it 
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because when I mean it up over 20 years and made it sound like Nevada was writing us a 1.3 billion dollar check and I'm still waiting for that track something to get lost in the mail I don't know so video this is the way the press works of course so if not if you divide 1.3 billion 
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20 okay then it's it's like okay Tesla's on average receipt receives servitax willed it does it's risky sales and use tax abatement is good what amounts to sew Tails gets like on the order we get on the road 50 260 million of sales and use tax abatement divide 20 years and 
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as a 5 billion dollar Capital cost just get going and then would have to generate about a hundred billion dollars over that period of time to get to achieve a 1.3 billion dollar tax benefit so essentially it's it's a little over 1% over that period of time and that's great okay but it's not you know it's it's not like it's it's not the way it was characterized in the Press 
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everybody because it's put in the proper context that sounds like okay well that's neat you know that's about a 5.5% helpful on setting up the factory and about 1% helpful of the next one you'll actually sounds pretty reasonable and yeah so that that was those helpful but they're alive other factors as well and we actually had slightly bigger and send packages 
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Frank's Mother's Day star offered hobby we factored in how quickly could we get the gigafactory in operation what were the risks associated with the progress what would the other orbit Logistics costs over time of transferring battery packs and power trains to a vehicle Factory in California and in all of those 
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this way together is what is let us to make the decision if ever Nevada and I working with with with your team was great I was very forward-leaning and McAllister just like making sure you feel really welcome you know within within a state so that's sort of what would like to make the decision for the gigafactory 
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and then we have another Factory in in in New York doing solar panels will sue exits will be the biggest solar panel producer in North America when it's done and we expect us to establish probably at least two or three more gigafactories and the US in the next several years as well as a couple overseas 
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the overall objective of Tesla is is really what what set of actions can we take to accelerate the Advent of sustainable production and consumption of energy and I'll take this or do it the way I would have searched the historic good of Tesla is in terms of of how a what that how many years of acceleration was it you know and if we can accelerate the same point energy by 
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I would consider that to be a great success even if it was only five years that would still be pretty good Gladys the that's the stats overarching optimization so you've talked about interplanetary travel and sustainable energy and the vehicles a little bit what what would you want things to look like in 5 to 10 years associated with with energy and with autonomous vehicle 
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electric vehicles well I think things are going to be where they going to grow exponentially so this big difference between 5 and 10 years and I'm at my guesses there probably in 10 years more than a half of new vehicle 
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what is Electric in the United States and try to spoil the going to be head of that cuz China's been super pro UV are they love people know this but what are China's environmental policies are way ahead of us like their mandate for Newell energy farts is the u.s. I think this semester under the impression that China is either dragging their feet over or somehow behind the US and Times of sustainable energy promotion but 
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but they're by far the most aggressive on Earth that's crazy every night affect the Coalition of Chinese car manufacturers Just wrote the Chinese government's beg for them to slow down the Mandate because it's like too much that they need to make 8% electric vehicles I think like next year or Interiors or something this is like the can't physically do it subtitles and by far the most aggressive on electric vehicles and solar 
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so but that's a common misperception that they're not was one Google search way to figure this out by this really first-rate pretty easy so Heather and ten ten ten years man fighting yeah that's what half of old production I think we'll be Bev I think almost all cars produced will be autonomous in 10 years almost all it will be around to find one that is not in 10 years 
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that's going to be a huge transformation now think about my though is that new vehicle production is only about 5% the size of the vehicle Fleet to think about how long does a car truck last and they last 15 to 20 years so before they finally scrapped so new vehicle production is only roughly what attack most 1/4 
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of the fleet size even when you vehicle production say switches which is over to electric or two autonomous that still means the backyard of the fleet on the road does not it'll take another 5 to 10 years before that becomes majority majority of the fleet it comes Eevee or autonomous but if you take 20 years a womanly 
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things are electric of autonomous overwhelmingly fully autonomous fully autonomous so no one will have to touch the steering wheel if there is one there will not be a steering wheel 20 years it will be like having a horse people have horses which is cool but it sucks so having a regular car will be like having a horse is that what you say 
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it will be for that I put that have if you know you know an autonomous cars like people have horses I see unusual to use that as a motor transport yes let's talk about the energy peace and rooftop solar and Storage yeah so this will appreciate that the Earth is almost entirely solar power today 
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in the sense that the sun is the only thing that keeps us from being at roughly the temperature of cosmic background radiation which is 3 degrees above absolute zero to one person would be a frozen dark ice bolt and the amount of energy that reaches from the Sun is tremendous it's it's it's the 99 cent plus of all energy that Earth has Dennis 
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what does the energy we need to use to run civilization which two asses big butt compared to the amount of energy that reaches us from the Sun is Tiny so if it's very easy for like actually doesn't take much to if you if you wanted to power the entire you how to say to a solar panels it would take my fairly small corner of Nevada Texas Utah anywhere the only need about a hundred MI 
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100 miles of solar panels to United States and then the the batteries you need to store that energy to make sure you have 24/7 power is 1 mile by 1 mile the one Once by mouth that's where this is what 100 miles 100 miles looks like 
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Square on the US map and then there's a little pixel inside there and that's the size of the battery pack that you need to support that real tiny so will you talked about 20 years from now none of us will some people still be using horses or or or easier but it's so rare so what will the energy piece look like what will there be transmission lines will there be a need yeah I think the 
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so this use of energy is roughly divided into three areas are there more less equal high level is about a third of energy is used for transportation reverse X about a third is used for electricity about 1/3 is used for heating so if you want to have a tan off of the trustee production 
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Courtney or something on the order of 10% depending upon how you counted is renewable maybe 15% not today so that means that there's a massive amount of solar that would need to be produced and connected in order to 3:40 sustainable because school is sustainable means you're tackling transport non-renewable electricity generation and Heating 
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that means it will need to be a combination of utility-scale solar and rooftops kids solar combined with wind geothermal Hydro probably some nuclear for a while in order to transition to a sustainable situation which means really for the most part massive massive growth in solar and it's going to report to have rooftop solar in 
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neighborhoods because otherwise you going to Bill need to be massive you transmission lines built I feel do not like having transmission lines go through the neighborhood I really don't like that guy great so you want to have some look like energy production combined with utility it says rooftop solar utility solar and 
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that's really going to be the solution from physic standpoint that I can't see any other way to really do it I feel talked a lot about fusion and alack fit the sun is a giant Fusion reactor in the sky and its really reliable comes up everyday so if it doesn't we got bigger problems somebody asked me to ask you this week we talked about Workforce today but they asked me are robots going to take our jobs everybody 
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jobs in the future or how how much do you see artificial intelligence coming into the the workplace on wolfus way I think on the artificial intelligence front you know I have exposure to the very most cutting-edge and I think people should be really concerned about it I keeps not sounding wheel on Bell but you until 
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people see like robots to go down the street killing people like they don't know how to react you know cuz it seems to ethereal and I think we should be really concerned about Ai and I think we should yeah this is a rare case where I think we need to be proactive and regulation instead of reactive because I didn't by the time we are reactive in AI regulation it's too late I don't know anything 
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regulations a setup is that a whole bunch of bad things happen does public outcry the and then after many years a regulatory agency set up to regulate the industry was a bunch of opposition from companies who don't like being told what to do by regulators and it takes forever back in the past has been bad but not something 
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represented a you know fundamental risk to the existence of civilization is a fundamental risk to the existence of human civilization it away that car accidents airplane crashes faulty drugs bad food where it we're not there not that they were harmful to end to set of individuals Within 
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of course but they were not harmful to society as a whole is a fundamental existential risk for human civilization and I don't think people fully appreciate that no it's not it's not fun being regulated it's not you know you're pretty awesome but I you're in the car business we are we get regulated by Department of Transport by EPA and a bunch of others 
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and this rate for agencies in every country in the in space we get regulated by fa and but you know if you're a selfish person hey you want to join you get rid of the FAA and just like take a chance on me facture is not cutting Corners an aircraft because you know profits were down that quarter I was like hell no 
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that sounds horrible so you know I think even people are pretty extreme me like libertarian free-market there be like yeah I was probably somebody keeping an eye on the aircraft companies making sure they both a good act and good cars not going to think so yeah I think this does a role for Regulators that's important and I'm a gangsta over-regulation for sure but I think 
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get on that with a i front of damn. So they'll certainly be a lot of job disruption because what's going to happen is robots will be able to do everything better than us I'm quitting want me to all of us in a yeah what's your exactly what to do about this 
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it's like this is really like the scariest problem to me I'll tell you and I'm yeah so I really think we need to go regulation here just because you're ensuring the public good is so he's a good companies that are racing that the kind of have to race to build a or there going to be made uncompetitive in or like they're see if your competitor is racings 
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and you don't they will crush you so then you like we don't request so you know I guess we need to boil it to that's we need The Regulators come in and say hey guys you want me to relieve you know just pause and make sure this is safe and like when when it's cool and working a bit and Regulators convinced that a safe proceed then you can go but otherwise slow down 
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Virginia Regulators to do that for all the teams in the game you know otherwise I sure will be saying like hey why you developing a i faster because your competitor is like okay we better do that then I said that's like there's like some at 12% of jobs or transport transport will be one of the first things to go fully autonomous but when I say everything 
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like the robots will be able to do everything Bark Bar nothing let's move back to rolling out the model three this year right and how many orders would it what is that going to look like so it's going well and that front we got two more I think I could for somebody orders a model 3 today they'd only get it probably late next year we just actually 
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Water Production made the first production year last week and I think that is not well appreciated about so many cars and any kind of new technologies how hard it is to do the main facturing is vastly harder to the main faction by factor of a hundred like a hundred then to make the to make that car to make one or something what was May 5th 
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60 people we can make a prototype of practically anything in 6 months I'm now to manufacture that thing we need 5,000 people to spend you know three years and that's considered really fast so manufacturing does this kind of Esco where it's excruciating Lee slow at first and then it grows exponentially and then I would people tend to extrapolate on the straight-line so if it's real slow first 
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I was real slow look at that and then we going to make five cars a week forever like nope Kobe 10 cars a week then 20 cars a week then you know 40 cars week and then 5,000 cars a week eventually just goes crazy fast I so we're hoping to get to you know something hair like 5,000 cars week by the NBA well I'm I want to give an opportunity for some of the governors to ask questions and perhaps some audience questions 
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I was told that you'd be willing to that to do that right so Governor is any questions for free locked governor Scott thank you very much we in Vermont Ave Apartment with Tesla in in terms of a power pack in the inner homes $15 a day you can rent this for 15 years and it will carry power as a backup generation device for 12 hours and it's been really really interesting from my perspective but I'm curious 
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vehicles in and where we're going in the future how far in the future do the cars themselves become the charging device like the the roof and decklid sand hood or does or do the batteries get so efficient that you don't need that and then you just power up for a week or something like that where we going in the future with battery storage yeah I think the future is it's there just the three legs to the stool the electric car 
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does a stationary battery pack and solar power with those three things you can have a completely sustainable energy future I told this was needed on the stove on the seller front like said it's going to be a combination of rooftop solar and utility-scale solar you need both because of the universe man Fleck TriCity and then you know where things that's that's been messing up till now is having rooftop solar that looks good and isn't it 
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that's that's where we got those two solo glass roof that were developing and we're doing it a different styles so that it matches the Aesthetics of take that house or original style that's actually pretty important and the conventional 5-panel solos will before for flat roofs and for commercial will be the way of the way to go 
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Fayette and putting solar panels on the on the card sale not that not that helpful Because the actual sister the car is not not very much and I cars very often indoors and so it's the least efficient place to put solar is on the car just wondering about maybe have wrap of some sort as it is that make any sense in the future like a rap of solar around either a building made of a solar panel or wrath of a of a vehicle actually be 
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the solar panel of being the components of the vehicle itself I don't think so I'll scrap that idea it's just way better to put it on the roof for sure I really thought about this I really and I push my team about like some way we could do it on the car I mean technically if you have like some sort of Transformer like thing which will pop out of the trunk like 
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like you're not go hardtop convertible and just like like ratchet solar panels over the whole set of the car extending like this for the entire say square footage of a parking space provided you're in the Sun that would be enough to generate about 20 or 30 miles a day of electricity but that is for sure the expensive difficult way to do it Governor Burger Soto 
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maybe we should but he learned tank thanks for being here with your background and payment systems you understand the important role of security and transactions now that you've gotten Securities a huge concern like cybersecurity yes and you're in the vehicle's your building our incredibly complex software systems in the car is really a rolling piece of software laptop on the way also would share with us a little bit about your thoughts on cyber security and how you how you how how 
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contact us you talk about protecting society when rolling Fleet of I think one of the biggest risks for autonomous vehicles is somebody achieving a fleet-wide hack you know in principle if if somebody was able to hack say all of the autonomous Tesla's they could say I was just as a prank like I say likes animal to Rhode Island 
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I'll be the end of Tesla super sure that that white hack is basically impossible and that if people are in the car that they have override Authority on waiver the car is doing so if the car is doing something wacky you can press a button that no amount of software can override that will ensure that the 
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you can you can control a vehicle can I cut the link to the servers so that's that's pretty funny mental with in the car we actually have even even if somebody gains access to the car there are multiple subsystems within the car that that that also have specialized encryption so the powertrain free sample has specialized encryption is so you know so you would gain access to the car that can I can access the powertrain or to the braking system 
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and I'm hey but it is my top talking sound from a security standpoint that tells as making sure that fleet-wide hack or any vehicle specific hack can occur the same with cell phones you know it's kind of crazy today or that we live quite comfortably in in a world that George Orwell would have thought the super crazy like 
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wait we all carry a phone with a with with a microphone like returned on really at any time without our knowledge with a GPS that those are position and a camera and what kind of all about personal information what do the willingly and it's kind of wild thing but that's the case Testify the phone 
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like Apple and Google kind of have the same challenge of making sure that cannot be a fleet-wide hack or system-wide hack of phones or a specific accident that's a top concern yeah we're coming to become bigger and bigger concern they think Tesla's I know what to have faith here but chances are pretty good at software confed to the other car companies 
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and so do I think it's going to be a bit like an even bigger challenge for for the other car companies to ensure security thank you got to do that thank you Governor I miss my skank you for speaking to other Governors today it's an honor to have you here what question I had we saw when gasoline prices went to three and a half dollars a gallon there was a big jump in interest in hybrid vehicles 
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and you saw those Vehicles become very much in demand and then as gasoline prices have fallen you seen a reversal of that and I'm wondering to what extent are you have a concern about the future of electric vehicles in the face of those very low prices he speak to the well that kind of set the slope of the curve so 
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there's no question on mind whatsoever that all transport with the erotic exception of rockets will go fully electric everything find Planes Trains and reveals will Trent like trains are ready electric shift and better question what the time frame is and the economic and social structure drives that time frame 
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that's really what it amounts to yeah this best in the big challenges that doesn't unpriced externality in the cost of fossil fuels so I'm price externality is the but the probably waited harmed of changing the chemical constituency of the atmosphere 
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oceans is it since it is not captured in the price of gasoline it does not drive the right Behavior it'll be like if Tussing our garbage was just free and you know there was no you just do as much as you want then like trees full of garbage so Aruba regulator 
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what about things like sulfur emissions and actress oxide emissions that can think of something like a good on that front was CO2 it's tough because there's so many vested interests on the sore fossil-fuel side and sometimes I feel like those guys feel like kind of hard done by cuz you know wasn't obvious like when they were creating their oil and gas companies that it would be bad for the environment and I work really hard to create those companies and then they feel 
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well now they're being kind of attacked on moral grounds when they originally start those well companies out or pull them up on you on bad moral grounds that it is true that we cannot instantaneously changed to a sustainable situation but then those guys also fight pretty hard to slow down a change and that's really what I think is morally wrong Philippine Governor Bevin and then Governor Hutchinson then we'll take it 
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Governor Hickenlooper and then we'll take some audience questions every Babbitt thank you for being here short version of the question then slightly longer the short version is do you ever feel pressure by others expectations of you and your endeavors in light of the progress you've made this far is the short version and more specifically when you look just a Tesla alone and you look at a company with a 54 billion dollar 
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relation in seemingly by typical marcha Market metrics no justifiable reason for that when you feel a concern ever that your intellect in your intellectual curiosity and your Ingenuity cannot be matched by those that are trying to commercialize it is that ever affect how you think or decisions that you make 
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what is it is actually a find a quite tough when they're very high expectations I try to actually tap down those expectations as you know three possible in fact I going to record several times as saying that the stock price is higher than we have any right to deserve and that's for sure true based on you know where we are today and have been in the past so the 
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class officer reflects light of optimism about where it says will be in the future and now that the thing that makes that they're quite a difficult emotional hardship for me is is that you know those expectations sometimes get out of control and I like I just wanted people and some like trying real hard to meet those expectations but pretty total order 
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and lot of times real Knox really not fun I have to say all that last one I missing hi so yeah and I don't ever sell any stock unless I have to for for taxes so you're not to publicly I'm not going to like take money off table if you know love you lots of anger Down When I'm Gone 
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so I'll be glad to do it but yeah I mean it's how I really wouldn't recommend anyone start a car company really wonder icon it's not a recipe for happiness and freedom thanks Kevin Governor Hutchinson ASA Hutchinson from Arkansas thank you for your Frank observation 
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about the exploration you know I look at the Spirit of invention and the spirit of exploration which is really the Hallmark of America what is your comment on NASA its Mission I was in Congress I supported NASA but I always feel like it's floundering does not have the support of the American people that's needed what what's your comment on NASA its Mission and what advice would you give us 
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sure I'm wipers why you say I'm a big fan of NASA if I one point my password was I love NASA which way that was my password and yeah I think the that's downstairs a lot of good things for which people before it doesn't get enough credit and let the public I guess doesn't 
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know that much about like 11 most members apart like they're not really into hard science but you know it's like not is not the thing they're tuning in for most the time I live Hard science you know better popular so but this great things in terms of the telescopes like the Hubble and the James Webb and the unit of Rovers on Mars and the 
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the proposed to the outer solar system the world like really great things but you get the public excited you got to get people in the picture it just it's just a hundred times different if there are people in the picture and you know if there's some criticism of NASA's like it's like important remember people in the picture you want to get the public support and 
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should talk to scientists about that so like where's the science in that like you're not getting it it's like that's not why people giving you money it's not that little bit of the reason but like the serious scientists are like people just make things more expensive like why we have people like okay why do we have people at all but anywhere sometimes the scientists of the ones who just don't understand 
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I like so you got to have something that's going to fire up the you know fire people up and get them really excited and like I can get for you had a serious goal of having a base on the moon and sending people to Mars and said okay this is we're going to be out tomorrow how we going to do this okay we got to change the way Contracting a Stein what you can't do these like cost-plus contracts Cost Plus sole-source contract 
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because then you sent instructions all messed up so soon as you don't have any competition well okay there's no statue urgency goes away and soon as you make some me a cost-plus contract you resetting the contractor to maximize the cost of the program because I get a percentage so they never want that gravy train to end and they want to make it an enzyme cost maximizers and then you have good people engaging cost maximization because you just gave them incentive to do 
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and told him to get punished if they don't it's actually that's what happens so critically important that we changed the Contracting structure to be a competitive commercial bed make sure that their or thier always to at least two entities that that are competing to serve NASA and that the contracts on Milestone based with concrete Milestones PowerPoint presentations do not count everything works in Powerpoint 
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black exotic teleportation device Loki on my PowerPoint presentation so Milestone base competitive social contracts with with competitors and then and then you better be prepared to fire one of those competitors if they're not if they're not cutting it and we compete the rest of the remainder that contract at by the way now actually already done this and they did it with the commercial with the commercial cargo transportation to the space station 
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that was a case where NASA you know the NASA actually thought it would work or not work but didn't have the budget to do anything else so they're like they're going to try it is better to commercial Milestone base Contracting and it worked great and they're watered it to two companies to SpaceX and a company called Kistler SpaceX managed to meet the Milestones Kistler did not so then they now 
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my computer the remainder of the contract to opal sciences and then oral Sciences got across the finish line so no NASA's got to suppliers for taking Carter to the space station and it's great situation same thing for commercial crew to the space station NASA competed that in the commercial crew case it's SpaceX and Boeing Advance also good situation so now like I can tell you like this basic 
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like we're going to do this before buying that's for sure and then like available according to do this before SpaceX that's good that's a good forcing function to get things done but that I can't tell you how important that Contracting structure is that as night and day there's way too much in in government which is where the soul Source cost-plus contract that that Justin 
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sit down economics 101 whatever you sent that will happen I didn't do ocean be surprised it's like you just said okay if that company manages to find some excuse to double the cost of the contract they going to get double the profit because they getting a percentage so they can do they can do exactly that and it will so they're not going to say no to requirements so the gomeral Congress Center appointments 90% of them can make a lot of sense and 10% I'll talk to me 
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a double the price of the of the project for those 10% of cockamamie requirements in a cost-plus contract the contract will always say yes you could be a future for you in Government Contracting at the state level if I do suspect every time you say publicly that the stock price is higher than we have any right to belief 
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face going to get you probably get some calls from investors suggesting the Navy you don't say that so frequently yeah that's true I want to go back and just because I think I wrote this down that you said that artificial intelligence is the fundamental existential risk facing civilization die get that. In my opinion it is the biggest risk that we face as a civilization is artificial intelligence 
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what would you advise we should how should we be addressing something that's it says such a large landscape and yet I was he so important I think that the one of those are coming is to ensure the public good if that an end to that dangerous to the public are addressed so that's the regulatory thing I think the first order of business would be to try to learn as much as possible you know to understand 
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nature of the issues to look closely at the progress that is being made and the remarkable achievements of artificial intelligence we last year I go which is a quite a difficult game to beat that people thought would never be beaten with a flat computer that that the computer would be the never beat the best human player or that it was 20 years away and last year 
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alphago which was done by Deep Mind which is a Google subsidiary absolutely crushed the world's best player an out not but now I can Crush I can play at the top 50 simultaneously a questionable so just like that Pacer progress is remarkable and 
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and is it Again Seymour more coming out I grew up attics you going to see robots that can learn to walk from from nothing you know within hours like way faster than any biological being but the thing that's most dangerous is when is the hottest kind of rap 
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bear arms around because it's not a physical thing is kind of a deep intelligence in the network he said what harm could a deep intelligence the network do so well I can start a war by grade by during fake news and spoofing email accounts and fake press releases and just buy internet for letting information the pen is mightier than the sword so 
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as example I want to be outside I do not think this actually occurred this is purely a hypothetical that I dig my grave here but you know that click that though there's that second Malaysian airliner that was shot down on the ukrainian-russian border and that really Amplified tensions between Russia and 
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can you enter massaway well if you had an AI that was where the goal was to maximize the value of a portfolio of stocks one of the ways to maximize value would be to go long on defense short on consumer Star War and then how could I do that will later hack into the Malaysian Airlines 
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right routing server around over Warzone then send an anonymous tip that an enemy aircraft is flying overhead right now go to Governor Ducey and then we'll have after Governor Ducey we'll finish our gubernatorial questions and then two questions and we quick questions are one audience question and will be done work for running short 
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Governor Ducey I really enjoyed your comments today and as someone who's spent a lot of time in his administration trying to reduce and eliminate regulations I was surprised by your suggestion to bring regulations before we know exactly what we're dealing with with AI or not I've heard the example used if I were to come up with a colorless odorless tasteless gas that was explosive people would say well you have to ban that 
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then we have no natural gas so you've given some of these examples of how I can be an existential threat but I still don't understand as policymakers what type of regulations Beyond slow down which typically policymakers don't get in in front of entrepreneurs are innovators well I think the first order of business would be to gain Insight right now the government does not even have insight 
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and I entered the right order bansuri to stand upright before agency initial goal gain insight into status of AI activity make sure if the situation is understood once it is then put regulations in place to ensure Public Safety set and for sure the companies doing a I will 
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not mine will squawk and say hey this is really going to stifle Innovation blah blah it's going to move to China it won't and it won't because like it's like has like I had Boeing move to China nope bowling aircraft here same one on cars and so it's the notion that if you're used to establish regulatory GM that companies will just remove two countries with 
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with lower regulatory, is false on the face of it because none of them do LMS it's really overbearing but that's not what I'm talking about here just talking about yeah I make sure that there is where pneus at the gum level I think once there is awareness it will be extremely afraid has a survey one audience question 
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I'll take the first hand that came up right here Dixieline in afraid with axios early on in this Administration you had argued previously that it was best to engage in better to be in the room than not be in the room by then when the president decided to pull out of Paris you said that was kind of the last Ron you were going to drop off what drove you to that and if you were still speaking to him today what 
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did you say to the president well I thought it was worth doing that trying hard to it's worth it was worth trying I got a lot of flack from from multiple friends for even trying when I some guy ran are Billboards and like attacking radian like full page ads in the New York Times and whatnot just repeat just 
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being on the panel and an ear and every and every meeting I was like just trying to make the arguments in favor of sustainability and snow sometimes other issues like we need to make sure that our immigration laws are not unkind or unreasonable and you know to do my best and I think if your cases I did actually make some progress which gave me some encouragement to continue 
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I bet then I just really think that the Paris Accord man at I'm if I sat on the council's then I'd be essentially saying that that wasn't important but it was super important because I think the country needs to keep his word and you know that that's it's not even a binding agreement so we can always like slow it down y'all going up there be job losses 
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we can see if there are job losses before we exit the agreement and maybe they want the job losses maybe drop games but yeah there's just no way I could stay on after that so you know did my best if you would please join me in thanking Elon for be able to relax I love you 
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