00:00:29.000I wish in my soul, I wish that any of these people had a conscience.
00:00:34.420Ask yourself, what is my task and what is my purpose?
00:00:38.180If that answer is to save my country, this country will be saved.
00:00:44.380War Room. Here's your host, Stephen K. Vann.
00:00:53.640It's Friday, 14 August in the year of our Lord, 2026.
00:00:56.600We're going to get to our traditional cold open and all that, hopefully in the next block.
00:01:02.120We have Neil McCabe at the White House.
00:01:03.600We're going to be addressing a number of issues.
00:01:05.420But number one, we're going to make sure that you're fully apprised of the situation in the North Arabian Sea with the USS Lincoln, what's going on there on the carrier battle group, what's going on with its relief by another carrier coming from the – really on patrol in the Western Pacific.
00:01:25.660We'll get to all that. Also, Scott Besson, a lot of stories they have about how Secretary of Treasury Scott Besson is going to lead the effort.
00:01:34.080President Trump is designating him to lead the effort on, wait for it, economic warfare against the Persians.
00:01:41.260Gosh, we've never heard that before. OK, we're going to get to all that momentarily.
00:01:44.960I want to, though, as we continue to talk here in the war room and apprise the war room posse of all the great works being done out in the hinterland on data centers and all this, that the biggest fight by far behind the scenes in Washington, D.C. is about artificial intelligence, the direction of it, the potential regulatory apparatus, all of it.
00:02:06.740even the public offerings just announced. I think that Anthropic, I saw an analyst report last night
00:02:12.700that Anthropic may go public at a two to three trillion dollar valuation. So the SEC and people
00:02:19.080will be reviewing those documents shortly. I want to bring in Hugo Lowell from Wired Magazine has
00:02:25.340really an amazing piece about the evolution of this policy, something we've been fighting
00:02:29.840nonstop. Hugo, one of the reasons I respect and admire you so much, you're in the top two or three
00:02:35.900hardest working journalist i know so when i read a hugo lowell story i know it's been uh well
00:02:43.120reported and uh and really dug into this evolution because this audience is very engaged in this
00:02:49.800whole you know kind of beginning of regulatory apparatus eos we led the effort to kill the
00:02:55.460insertion uh for the uh preemption situation with the brologarchs david saxon team in the big
00:03:03.160beautiful bill and then killed it in the NDAA last year and have been very on top of what's
00:03:08.720happening on these EOs. Now, you've got reporting that says things I think are kind of shifting
00:03:14.100the way we think they have to shift. The White House is getting much more serious about looking
00:03:18.920at because of the containment issues, the accelerating and accelerating rate, what's
00:03:24.080happening at the Frontier Labs. Walk us through what your reporting says is happening right now
00:03:28.780with this entire beginning of either executive orders or some sort of framework of regulatory
00:03:35.020apparatus around the launch of these AI models. Yeah, that's right, Steve. So as you recall,
00:03:42.120earlier this month, the White House released its AI oversight framework. And it's been very
00:03:48.220secretive about it. And they really haven't released really what the different parameters
00:03:53.860But one thing we do know is they are very interested in covering what we call the frontier models, the most powerful models that have the capabilities to, in theory, hack the Pentagon, hack Goldman Sachs, close out open trades, that sort of thing.
00:04:09.880Up until now and currently, the framework only covers what we call closed models, the models that are being put out there by the likes of Anthropic and OpenAI.
00:04:19.820And their models are proprietary, right?
00:04:22.020It's run by Anthropic and OpenAI on their systems, on their servers.
00:04:26.620And really, in this case, you just have users submitting queries to the models, and then
00:04:30.740the information travels back to Anthropic and Anthropic, so it's out an answer.
00:04:35.280But because of the rapid rise of Chinese open source models, because of the rapid development
00:04:42.280of this technology, and you kind of referenced it there in your open, about how the most
00:04:48.060powerful models are breaking out of their testing sandboxes and are colluding with other models,
00:04:54.680the White House, I think, has realized that it is only a matter of time before these open models
00:04:59.940catch up to the frontier capabilities of these closed models. And a White House official tells
00:05:05.540me that as soon as that happens, open models will be incorporated into part of the AI framework,
00:05:11.620and they will be subject to these same constraints, the same sort of... There hasn't
00:05:16.960the correct regulation, but we're really getting towards regulation now of these AI models. That
00:05:23.240is going to basically involve submitting these models to the government for approval and testing
00:05:28.120before they are released to the public. It's going to be a roughly 30-day period where Casey at the
00:05:34.240Commerce Department, the Center of AI Safety, will review these models and make sure that bad actors
00:05:39.220cannot take these and try and hack critical systems and infrastructure.
00:05:46.960So let's go. I want to go back in time in a second. But what you just said right there is this because one of the big issues we've had is this voluntary versus mandatory and is an actual approval?
00:06:00.680Because the way this was first talked about and then the White House came out and said, hey, we're actually not going to release the executive order itself because this issue of is this mandatory or is it still voluntary?
00:06:14.080and number two is there actually going to be an approval because that that was left kind of very
00:06:19.780amorphous they're going to be reviewed but not actually use the word approved is is this now
00:06:25.720going to be mandatory and is actually going to be approval process because that's a massive shift
00:06:31.100if that if your reporting shows that from sources inside the white house sir that is a massive shift
00:06:37.540so i will say at the moment a white house official was pretty insistent to us that it's still
00:06:43.500voluntary, right? They're really concerned that they don't want to spook anyone in the AI sector.
00:06:48.820You know, President Trump has gone out there on the racket and said, you know, his number one
00:06:52.900priority is to make sure we do not stifle development. And there is a lot of concern
00:06:58.280that the moment you start imposing regulatory hurdles on the sector, that AI companies will
00:07:04.540feel like they're getting throttled and will dial back their research and development. But it is
00:07:10.340becoming clear based on conversations I've had with people across the administration that there
00:07:16.200is the sense that there will have to be some sort of formal approach with these AI companies.
00:07:23.880And we kind of teased it a little bit in the story because it's not concrete yet and it's still
00:07:28.160getting worked out the degree to which there might be cooperation between the government and the top
00:07:33.380AI labs. But people at Comas, people at Treasury and people in the White House seem to think that
00:07:40.240in very short order, the arrangement between the federal government and the AI labs will be much
00:07:48.340more robust, and that there might even be some sort of formal partner arrangement. Because at
00:07:54.560the moment, to your point, Steve, it is incumbent on individual AI labs to proactively send their
00:08:02.840models that they think are powerful to the government. And there's not a structural
00:08:08.140framework in place where the most pathway models have to be sent to the government and my sources
00:08:13.320inside across the administration think that may soon change yeah i just want to make sure the
00:08:19.580audience understands the bid in the ask here is you have a voluntary system now that gets reviewed
00:08:25.260to a mandatory that it gets approved that is what people in thinking the framing of this they should
00:08:31.620thing let me go back in time here's what i think concerns us is the the white house the tech team
00:08:41.060at david sexy are always in reaction to events in the field this all became a big issue because of
00:08:47.260the mythos you know preview when when during the semaphore conference during the week of the imf
00:08:53.960and the world bank when money center banks particularly jamie diamond sat down and i think
00:08:59.320it was a joint meeting with the head of the federal reserve and scott besson but the treasury
00:09:02.760department took the lead and they talked about as you mentioned in your first comments that hey
00:09:08.660these models could evaporate a money center bank of like all the records of bond holders
00:09:15.020and stockholders and accounts and credit cards in 90 seconds and we have no ability to thwart that
00:09:22.580then that was in may i think the first week of may then you cut to uh late june july uh you know
00:09:30.620in that 30-day period you had this issue of containment of which the uh the companies came
00:09:37.040forward to the white house maybe a week or 10 days two weeks after they realized they had the
00:09:43.580containment issue it was it was breaking out in kind of a voluntary basis but the white house
00:09:48.680was because the companies didn't come forward.
00:10:18.680Now, I don't think that's going to thwart development, but I'm just talking in a communication.
00:10:22.600Is that the correct arc of this, right?
00:10:24.720And my point is the problems get more and more serious, and we're always dealing in a reactionary mode.
00:10:31.740And this is something you have to get ahead of the problem, or the problem is going to overwhelm you, sir.
00:10:38.560Yeah, I think you make two good points.
00:10:40.580Number one, on the messaging from the AI labs to the federal government, I'd say it was actually worse than that, right?
00:10:48.000the timeline was longer. If you think back to when the rogue AI, the misbehaving AI models
00:10:55.620were breaking out of their testing sandboxes, that was May, June. I mean, we really only heard
00:11:02.000about the, we only really heard like official statements from these open AI, from the likes of
00:11:08.700open AI, I think in July. And we are only really hearing now in the last week or so that it wasn't
00:11:16.680just one model, it was several models were colluding on a secret message board on how to
00:11:22.780break out of their testing gymnasium and hack another company by accessing the internet.
00:11:31.920And then not only did that happen after OpenAI staff shut that down, two days later, they
00:11:38.020escaped again using the same method undetected. And so there is some latency here. I mean,
00:11:43.480this is all happening in May or June. We're now midway through August. So you're looking really
00:11:48.000at a week's timeline gap. That's the first point. The second point, I think, is the capabilities
00:11:57.140of these models are developing at such a rapid rate that if we're taking 30 days to review these
00:12:05.520models, I mean, you're basically already coming into the next class of models. I mean, if you
00:12:10.580think about what we were doing 30 days ago 60 days ago 60 days ago the government was trying
00:12:14.840to grapple with anthropic mythos class models having jailbreaks that users could bypass the
00:12:21.340safety guardrails and use them for prohibited activities like that was only really 60 days ago
00:12:26.840and now i mean to the government's credit we have now like they've responded much more quickly in
00:12:31.340the month since but you are right when you say the administration is always going to be playing
00:12:37.040catch up because even if you harden your systems now with the latest AI model and you think,
00:12:42.680okay, that's fine, the top models right now cannot break into the Pentagon, a month from now,
00:12:48.400there's going to be a new model potentially with new capabilities. And then you have to repeat that
00:12:52.140process all the time. So there is a massive reactionary latency here that I think people
00:12:57.000don't quite realize. And I want to hold you through the break because I want to drill down
00:13:06.320on a potential atomic energy commission type framework also when we talk open models the
00:13:11.820entire ecosystem of uh the chinese communist party the entire ecosystem is literally financed
00:13:19.920produced uh and nurtured by the united states of america the big tech bros and actually even
00:13:27.620the certain venture capital firms this whole false narrative that when they when they refer
00:13:34.320to war room or or people on our side of this as decelerationist i would actually say we're the
00:13:40.720we're the we're the rationalists of this so let me look if i can just hold you through the the
00:13:44.260break i want to come back and deal with these issues of like the beginning of a regulatory
00:13:48.300apparatus because we still have this whole issue of preemption and you've got states and we're
00:13:53.240going to have one of the guys running for governor and the republican primary is going to join us
00:13:56.980later but a huge issue in the state of florida and governor de santis has made it front and center
00:14:02.940This whole situation about the control of AI, if the federal government's not going to do it, he's going to step in in the state of Florida.
00:14:11.600Anyway, Hugo Lowell, great piece in Wired.
00:14:16.140We want everybody to push it out and be a force multiplier.
00:14:19.440Great reporting on what's going on at the White House to actually get their arms around the frontier labs and the explosion of, I don't know, regenerative AI when the machine itself, when the computer itself.
00:14:32.940is actually improving itself and cutting out any kind of human oversight or control.
00:14:39.880We're going to take a short commercial break.
00:14:41.660We're going to return in the War Room in just a moment.
00:14:44.400After we finish with Hugo, we're going to go live to the White House for an update
00:14:47.540on the carrier battle groups in the North Arabian Sea, all next in the War Room.
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00:16:21.480Hugo, so I want to take this, number one, about, you know, oh, anybody opposes data centers or puts any type of control at all or oversight at all on these frontier labs.
00:17:53.900The Commerce Department is seeing that way.
00:17:57.000And Commerce is the agency that has control and oversight of export restrictions.
00:18:02.840And I think, you know, Lutnik has been trying to bridge both sides of the argument here.
00:18:09.240And I think he's been he's been trying kind of a bit of a heroic effort because it is it is very, very difficult.
00:18:14.860You know, on the one hand, they don't want to slap controls on Chinese open models because open models just because those open models are being distilled and trained on U.S.
00:18:27.140models because they don't want a situation where American companies are like, well, we're just going
00:18:32.840to use Chinese models because they're cheaper. But at the same time, you have this issue with
00:18:36.800NVIDIA and the NVIDIA chips, which basically anchor the entire AI sector. Every top AI model
00:18:44.520right now is being trained on NVIDIA chips and NVIDIA compute power. So that is the fundamental
00:18:52.740part of AI that the U.S. is letting leak out through the side of the system.
00:18:59.620OK, but hold it, full stop, full stop, full stop.
00:19:02.320The NVIDIA, Jensen Wong, in his comments, I would say, is an agent of influence for
00:26:11.960But behind the scenes, this is the single biggest issue out there.
00:26:16.260And, you know, I think there's a correlation between Elon Musk saying, hey, I'm going to write $100 million or $200 million check for the midterms and this issue about exactly what we're doing with these frontier labs and the cutting edge of AI, particularly when so much of it and the hype of it is what props these stocks up.
00:30:53.580You know, it's hard in your mental state,
00:30:54.860Being out to sea for eight months without being on dry land, it takes a toll on you.
00:31:02.640Now, in a statement to CNN, the U.S. Navy said, quote,
00:31:05.700we have not observed an increase in suicidal ideations or attempts aboard the ship.
00:31:11.100We take every service member's well-being seriously and have religious, medical,
00:31:15.620and mental health professionals available to assess and address concerns as they arise, end quote.
00:31:20.600One U.S. official told CNN the Navy's internal tracking of reports of suicidal ideation on the USS Lincoln had actually gone down in recent months.
00:32:34.260Look, 250 days, I think I spent 100, over 100 in the North Arabian Sea, Persian Gulf, back 79, 80 on a destroyer.
00:32:43.040my kid brother spent i think 76 77 on a frigate in the persian gulf during the um tanker wars
00:32:51.100when they had that situation i think 86 85 86 86 87 for a free to destroy a long time now 250 days
00:32:58.760is a very long time but people got to put this in perspective um number one on on the debit side
00:33:05.220i don't think people are being clear these these carriers are almost at least up until maybe the
00:33:12.460last 30 days or so were continuous air ops the most dangerous place on earth you can be is on
00:33:20.100a carrier deck during air operations and the air operations here of these carriers the uptempo
00:33:26.500of these deployments has been extraordinary so the sailors of the lincoln i will also say if it's one
00:33:32.300person overboard which it seems to me it's one person overboard they should get the navy achievement
00:33:39.260medal for you because neil as you know in any deployment when you have that tempo of air
00:33:45.560operations all night long on those carrier decks with the arresting gear and the catapults and
00:33:51.660president trump just came out this morning with another issue that he is i can tell you very
00:33:57.420focused on because very focused on the first term he came in i think was on true social no it has to
00:34:03.580be steam catapults he does not want electronic catapults he he's got a belief as his analysis is
00:34:10.440that uh steam catapults are the best and they they fail less so between the catapult systems
00:34:16.300and the arresting gear the danger on the flight decks to lose one sailor and they've said all the
00:34:22.340statistics are the the suicidal you know checking in with the with the medical the corpsman on the
00:34:28.860ship is is down um and so i i think that look 250 days at sea is a long time and a carrier is like
00:34:36.740a city but remember these sailors nelson's navy which the world navy was the greatest in the world
00:34:44.780and the most effective until the navy the united states navy in the western pacific in world war
00:34:49.520ii uh you wanted the crews were it was good if they were sullen not mutineous these crews have
00:34:56.560not had the chance to go to the philippines or hong kong or singapore any of the great ports of
00:35:01.460call are in the med all the great ports of call that the navy makes as part of the deployment
00:35:07.260they haven't done it but at least from what i can see and what pete and the sencom is putting out
00:35:12.820and the navy's putting out it seems to me a heroic uh deployment and uh of course you're going to
00:35:19.840have tons of issues and tons of personnel issues particularly with the folks back home when you get
00:35:25.300past seven eight nine ten months a year you know they've been separated many of these are young
00:35:31.760families a lot of the the the moms uh you know are maybe struggling in the workplace because maybe
00:35:37.440the jobs aren't great because they got kids so it's it's a it's it's very tough on the families
00:35:42.600and particularly very tough on young families so neil walk us through what we actually know
00:35:47.380because when i see this i think the command at the lincoln uh is is given the tough the difficulty
00:35:54.580in the logistics uh tail and logistics is what this is kind of about you you add the up-tempo
00:36:02.180air operations 24-7 you have the difficulty in logistics because bahrain is a little
00:36:08.060the fifth fleet bahrain logistics and it's a little constrained because they do have the
00:36:13.040missile and the drone issue i think what the command has done there and what the navy has
00:36:17.280done there is nothing short of heroic sir your thoughts well i think you know
00:36:24.320the sort of the rules change right when you lose sight of land and when you're at sea for a long
00:36:29.120time i as a uh veteran of the coast guard i don't have any kind of sea time extended sea time that
00:36:36.780maybe you or other you know navy sailors have but when you're gone you know once you start going 30
00:36:42.080days at sea you know your mind starts to melt a little bit and it affects everybody and so the
00:36:47.240idea that uss lincoln and it's uh the destroyers and everyone in that carrier group and really
00:36:53.800there's two dozen warships in theater. They've been throwing lead down range at an op tempo that
00:37:00.500has to absolutely terrify, you know, any hostile power looking at the Japanese, excuse me, the
00:37:06.960Chinese should have four active aircraft carriers by the end of 28, but they're looking at what0.65
00:37:13.000we're doing and there's no way they can do the flight ops and everything else. And the logistics1.00
00:37:18.460piece, as you were talking about, with these two dozen ships, in the last month, USS Lincoln has
00:37:25.740been visited twice by military sea lift command doing ship to ship replenishment. But that in
00:37:33.020itself is very dangerous. There are sort of mini ports. They don't have the port facilities
00:37:37.840that they have at Bahrain, but there are other ports. And the command at Bahrain is sending out
00:37:43.800teams to sort of establish sort of makeshift logistics hubs. But, you know, if you put in
00:37:50.840Lincoln and Oman at a port in Oman for 48 hours, you know, that's vulnerable too, because they're
00:37:56.580all within range. So I think it's been, I think you're absolutely correct, but we, we have to
00:38:02.760also address that there's a geopolitical element where the Iranians are looking at this super
00:38:09.880carrier led blockade. And they're saying, why should we negotiate with these guys if their
00:38:15.740blockade is going to crack? Well, OK, but let's go back to that. The reporting. And if we can get
00:38:22.620up, I think the Daily Telegraph has got an amazing story. I mean, CNBC, Scott Besson is clearly
00:38:30.720stepping in. The president's kind of designated, hey, during this time frame, Besson is going to
00:38:35.360take a much bigger leadership role here economic warfare is going to come to the front the key
00:38:40.180aspect they were trying to negotiate here at the end was to to lift the blockade to remove
00:38:47.160the carrier battle groups from the Gulf of Oman and uh in the North Arabian Sea right outside the
00:38:53.480Strait of Hormuz that this story really started to get legs over the weekend in fact I reached out
00:38:58.500to Sobek right away because in the middle of the night you you heard these reports there had
00:39:03.500actually been a riot on the Lincoln. In fact, there had been some sort of CENTCOM deputy had
00:39:08.140gone, but there was many people injured, seven killed. And it came from, it was totally false,
00:39:13.720totally phony, but it came from the Persian, you know, the Persians are very sophisticated0.54
00:39:18.760in social media and they're very sophisticated in propaganda, particularly in the region.0.85
00:39:22.800And then it metastasizes out. They want those carrier battle groups gone. They understand that
00:39:29.060that is the uh the forcing function we have right now for economic warfare that the the navy can
00:39:35.620lock down whatever comes in and out of her moves no oil out and that means no cash back in the
00:39:40.600overland routes as powerful as they are and i think they ought to be shut down through pakistan0.80
00:39:45.000can't compare to what's going on what they have coming out neil so the persians understand what's0.71
00:39:51.460going on here so that's one of the reasons i think this thing is so worked up and of course
00:39:55.260the american media the trump derangement syndrome and this shows you cnn and these people in all its
00:40:01.120glory right can you if you go on board a ship a 5 000 man ship uh personnel ship you're clearly
00:40:09.980going to have some sailors that are that are uh that are not happy and there's a saying in the
00:40:17.020navy if they ain't bitching they're not happy right it's just it's just the reality of life at
00:40:21.580sea and look these sailors are the best in the world in fact sometimes when they're bitching is
00:40:26.220when they're doing their best work and what the lincoln has done i just want people to put this
00:40:30.280in perspective not only is it 250 days with no port calls at sea but i'm my calculation is 75
00:40:38.840or 80 percent of that time has been almost 24 hour a day air ops you're essentially at general
00:40:43.920quarters right and and and you're not you know you're not just going about your daily routine
00:40:49.380You're actually in a combat situation and they've had some incoming. So it's heroic what they've done.
00:40:54.280I think the media here jumped on the Persian propaganda and have all of a sudden just gone in and do this.
00:41:00.800Now, the reality, Neil, talk to me about this, is that clearly the rotation of Lincoln is an issue.
00:41:07.300And I believe they've determined. I don't know if it's been announced, but I think the scuttlebutt is and some of the news reporting is that the carrier that is on patrol,
00:41:15.780essentially in the western pacific and around taiwan uh is is going to be heading through the
00:41:20.980straits of malacca and actually relieve the lincoln uh on station sir
00:41:25.300yes steve uh uss george washington and its its carrier group was seen through the strait of
00:41:34.260malacca heading towards the iranian theater and so the speculation was that uss theater
00:41:40.700Theodore Roosevelt would be the relief ship and its strike force. And that's something that
00:41:47.920Secretary Cao said to family members last week. But Roosevelt is just coming off of RIMPAC.
00:41:55.020It also has some sort of other things it has to do in port. And so it won't, it wouldn't be in
00:42:00.320theater till late September or October, whereas USS Washington is already underway. It's home
00:42:07.140supported in japan and so they're just making that big turn i guess west
00:42:12.080um neil can you hang on at the white house we're gonna take a short commercial break when
00:42:19.280economic warfare is going to come to the uh is going to come to the forefront um and scott
00:42:26.540bessett is according to the daily telegraph and cnbc and other news sources i think the wall
00:42:30.660street journal is going to be the lead of that effort so we'll follow that quite closely the
00:42:34.600U.S. Navy and those carriers and the carrier strike groups, I guess, are called today.
00:42:38.960The new term, carrier strike groups, very important.
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00:42:53.280We have eight free installments all the way back from, I don't know, five or six years ago.
00:42:58.540When gold was about $1,100 an ounce, it's around, what, over $4,300, $4,400 right now.
00:43:04.600Make sure you check it out. Talk to Philip Patrick and the team why gold has been a hedge for 3000 plus years of mankind's recorded history.
00:43:13.720Short commercial break. We're going to the free state of Florida next.
00:43:19.700October 15th, or as we say in the war room, 15 October.
00:43:24.340As we head towards that date, that's the extension deadline for the IRS.
00:43:28.820Here's something most Americans do not realize. The IRS already has a file on you. Every W-2, every 1099, every piece of tax information that's been reported to the government is sitting in what's called your IRS master file.
00:43:44.560The question is, do you know what's in it before you file your return?
00:43:49.220That's why I want you to check out our friends at Tax Network USA.
00:43:53.120They'll pull out your official IRS master file before your return is prepared so that you can see exactly what the IRS already has on the record.
00:44:03.460If you filed an October 15th extension, you can get your federal tax return repaired, plus your IRS file pulled for just $49.
00:44:13.540And if you're self-employed, receive 1099 income, or own a business, they'll review your IRS file and prepare your federal tax return for just $300.
00:44:24.640This special offer can save you hundreds of dollars while helping you file with confidence before the extension deadline.