Verdict with Ted Cruz - BONUS POD： The AI Cold War Has Begun—Can America Beat China without Beating America？

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00:03:10.300 You're listening to the 47 Morning Update with Ben Ferguson.

00:03:14.260 Good Tuesday morning.

00:03:15.260 Nice to have you with us on the 47 Morning Update.

00:03:17.660 And we've got a major in-depth story for you.

00:03:19.980 And it deals with AI data centers in America.

00:03:23.180 President Trump going all in,

00:03:25.180 calling those that are attacking AI nothing but those that are trying to push a hoax on America

00:03:31.700 so that China wins and controls AI.

00:03:35.200 Yeah, we're talking about the communists. 0.92

00:03:37.340 So what is behind this sick conspiracy? 0.57

00:03:40.000 That is the president's words.

00:03:41.840 I'm going to break it all down for you in just a moment.

00:03:44.540 Before we get to that, though, the midterm elections are heating up.

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00:05:22.420 It's the 47 Morning Update, and it starts right now.

00:05:26.040 Story number one.

00:05:27.240 We are in a war right now, and it is not a traditional war the way that we see with Ukraine and Russia, or even America and Iran. 0.52

00:05:36.540 We are talking about a technological war with communist China.

00:05:40.500 Now, it's not going to happen 10 years from now, not someday.

00:05:45.000 It is happening right now.

00:05:47.240 And it's a war over artificial intelligence.

00:05:50.580 It's literally a war over microchips.

00:05:52.740 It's a war over data centers.

00:05:55.260 And it's also a war over electricity.

00:05:58.560 And also, really, it's a war over computing power and who controls what comes out of all

00:06:06.020 of the things that I just listed.

00:06:08.300 Now, this is a war about the future and how people perceive this country, also China, and the rest of the world.

00:06:16.760 It's the most important technology of the 21st century.

00:06:20.880 And yeah, we're talking about AI.

00:06:23.560 Now, Donald Trump understands exactly what's happening right now.

00:06:27.120 And he's furious about the growing movement to put the brakes on American artificial intelligence.

00:06:34.020 Donald Trump lashed out on Monday as he should.

00:06:36.880 at what he called a sick conspiracy against AI data and data centers.

00:06:43.200 And then he gave America the line that should define this entire debate.

00:06:48.720 Whoever wins AI wins.

00:06:51.240 Donald Trump is right.

00:06:53.280 This is the new arms race, except instead of counting nuclear missiles,

00:06:58.520 you're counting GPUs.

00:07:00.560 Instead of asking who has more aircraft carriers,

00:07:03.220 we're asking who has more computing power,

00:07:06.160 who has the best chips, who has the biggest data centers, and who has enough electricity to power

00:07:13.160 them, who also has the best models, who has the best scientists, and who has the guts to keep

00:07:19.740 building instead of stopping. Because here's what absolutely drives me crazy about this debate.

00:07:26.640 China wants desperately to beat us. China understands that AI dominance means economic

00:07:33.640 dominance as well. It means military advantages. It means intelligence advantages. It means cyber

00:07:41.920 advantages. It means robotics, manufacturing, medicine, weapon systems, even outer space,

00:07:50.520 finance, scientific discovery, you name it. And China understands this better than all of us in

00:07:58.040 america right now and that is the reason why donald trump keeps sounding the alarm now there's a lot

00:08:05.080 of people saying in the u.s maybe we should be slowing down in fact many states have already

00:08:09.500 slammed on the brakes to ai data centers and my response is are you kidding me imagine saying

00:08:17.120 that during the space race hey the soviets are trying to get to the moon maybe america should

00:08:21.640 you know slow down imagine saying it during the nuclear arms race maybe we shouldn't develop this

00:08:27.100 technology so quickly. That would be insane. You don't win a race by stopping to make your

00:08:32.520 opponent feel comfortable. And here's where this story gets even more disturbing. We now have

00:08:38.320 documented evidence that China-linked actors have attempted to manipulate the American conversation

00:08:44.840 surrounding artificial intelligence and data center specifically. OpenAI disclosed a China-linked

00:08:52.280 influence operation it called data center bandwagon that's the exact name now the accounts

00:08:58.460 likely originating in china were then using this isn't a joke artificial intelligence to create

00:09:05.100 english language social media content criticizing american ai infrastructure some prompts were

00:09:12.560 written in simplified chinese but the content was designed to look american now think about how

00:09:19.080 unbelievable that is. China-linked operators were using American AI to create propaganda

00:09:26.240 attacking American AI infrastructure. Now, what were they saying in this propaganda and why was

00:09:33.180 it so effective? Let me just go through some of the highlights for you so you understand.

00:09:37.320 First off, they were telling Americans that your electricity bills are going to go up drastically

00:09:41.620 and that if your electricity bill has gone up in the last several years, it's all because of AI

00:09:47.120 data centers. By the way, the majority of Americans do not live anywhere close to an AI data center.

00:09:53.600 They also wanted you to understand this, that big tech is getting rich and they're doing it

00:09:58.180 off the backs of you and your grid. They then would tell you that the data centers are destroying

00:10:02.800 your communities. And then they would say your electrical grid is going to go down so you won't

00:10:07.160 have electricity. Now, take every legitimate concern surrounding this technology and then

00:10:12.260 pour gasoline on it and that is how modern information warfare works and china was using

00:10:18.240 ai to do exactly that you don't have to necessarily invent the disagreement you just find an existing

00:10:25.240 disagreement and make americans angrier at one another over it now i want to be crystal clear

00:10:30.520 about this if you don't want a giant data center next to your house that doesn't make you by the

00:10:36.320 way a Chinese agent. If you're concerned about your electricity bill, you're not working for 0.97

00:10:41.700 Beijing. Americans should absolutely demand transparency about electricity prices as well

00:10:47.520 as water usage or as well as tax incentives, as well as infrastructure questions. That, by the

00:10:53.400 way, is called democracy. But when a foreign adversary, China, secretly inserts itself into

00:11:00.280 that conversation while pretending to be Americans, and that's what they did, that's something entirely

00:11:05.620 different. And then X also came out and uncovered something else. And another enormous suspected

00:11:12.920 Chinese bot operation involving more than 200,000 different accounts online. A smaller group of

00:11:20.900 those accounts were posting content capable of manipulating the American debate over AI

00:11:25.960 infrastructure and energy. So now you got to ask yourself this question. Why does China care what

00:11:32.840 Americans think about American data centers? Like seriously, why? Well, let me answer that question

00:11:39.320 because China understands the equation. No electricity means no data centers. No data

00:11:46.200 center means fewer chips. Fewer chips means less computing power and less computing power means

00:11:53.300 slower AI and slower American AI means one thing. China wins. Yeah, that's what it means. 0.97

00:12:02.060 And if you want proof of just how enormous the economic consequences of slowing AI could

00:12:07.420 be, just look at what happened in the stock market yesterday.

00:12:11.760 The Wall Street Journal says AI chip stocks got absolutely hammered.

00:12:17.300 NVIDIA fell 3.4%.

00:12:19.460 This is NVIDIA we're talking about, one of the most important companies in the world.

00:12:24.900 The company manufacturing the chips had become the backbone of AI and the revolution.

00:12:30.200 Marvel, Intel, Micron, and SanDisk were also down around 6%.

00:12:36.140 Broadcom fell roughly 4.5%.

00:12:39.520 And this wasn't just happening in America.

00:12:42.780 ASML fell roughly 6%.

00:12:45.140 ASM International around 10%.

00:12:47.720 And BE Semiconductor more than 8%.

00:12:51.420 South Korea's SK Hynix dropped 6.4%.

00:12:56.100 Samsung, a brand we all know, fell more than 4%.

00:12:59.460 Japan's Kioxia dropped more than 6%.

00:13:03.580 SoftBank, one of OpenAI's biggest investors, also got crushed, falling roughly 11%.

00:13:11.400 And here's one of the most revealing numbers of all.

00:13:14.720 Seidman's Energy fell more than 8%.

00:13:18.020 Now, why does an energy equipment company get hammered?

00:13:21.340 Because people are talking about slowing artificial intelligence.

00:13:25.340 That's the question we all should ask.

00:13:27.260 I'll explain it, because AI isn't just about software anymore.

00:13:31.840 AI is an industrial revolution.

00:13:34.420 You want artificial intelligence?

00:13:36.220 Then you need chips.

00:13:38.020 And if you want chips, you need semiconductor factories.

00:13:42.120 You want to operate millions of chips?

00:13:44.660 Then you need data centers.

00:13:46.460 And if you want data centers, you need enormous amounts of electricity.

00:13:50.320 You need natural gas.

00:13:52.380 You need nuclear power.

00:13:53.820 You need turbines.

00:13:54.920 You need transmission.

00:13:55.920 You need cooling.

00:13:57.260 You need construction.

00:13:59.380 You also need things like steel.

00:14:02.060 Then you need electricians.

00:14:03.700 Yeah, that would be human beings and engineers.

00:14:05.620 And you need American workers.

00:14:08.300 Now, this isn't some Silicon Valley toy.

00:14:11.540 This could become one of the biggest industrial buildouts

00:14:14.900 America's seen in generations, certainly since World War II.

00:14:19.300 And we're seriously discussing whether we should voluntarily slam on the brakes?

00:14:24.420 I would say no. 1.00

00:14:25.920 You need to build the damn data centers. 0.99

00:14:27.920 You need to build the power plants. 0.99

00:14:29.640 You need to build the semiconductor fabrications.

00:14:32.640 You need to build the transmission.

00:14:35.120 You need to build the nuclear reactors.

00:14:37.740 You need to produce more natural gas.

00:14:39.480 You need to train all these engineers, train the electricians, train the welders.

00:14:43.700 And then ultimately, what are we trying to do?

00:14:46.700 Build an infrastructure.

00:14:48.500 This is what you need to make America the undisputed AI superpower of the world.

00:14:54.380 because I can tell you who isn't going to apologize

00:14:57.600 for building their infrastructure

00:15:00.040 and that is communist China.

00:15:03.000 Beijing, they're not debating this.

00:15:06.000 They're not sitting around saying

00:15:07.500 we'd really like to dominate artificial intelligence

00:15:10.720 but we're worried somebody might complain

00:15:12.780 at the zoning meeting.

00:15:14.280 That's not how things work in China.

00:15:16.300 They're building and they're investing 0.95

00:15:18.360 and they're planning and they're stealing technology

00:15:21.460 when they can get away with it

00:15:22.780 and they're recruiting the scientists and they're developing the chips and they're building energy

00:15:27.360 infrastructure and they're trying to become technologically independent from the United

00:15:31.780 States of America. Meanwhile in America well we're all sitting here and we're saying no no let's

00:15:38.220 let's have a conversation and I'm fine with that but why would we tie our hands behind our own 0.92

00:15:43.740 backs and let China win? Now today's stock market reaction gives you a glimpse of what happens when

00:15:50.160 you slow down the wall street journal by the way reports that investors immediately started pricing

00:15:56.140 in the real possibility that slowing advanced ai development in america could eventually slow the

00:16:02.600 enormous capital spending boom surrounding artificial intelligence now the logic here by

00:16:08.740 the way is not complicated slower ai development that means potentially fewer data centers and

00:16:14.880 fewer memory chips are needed then you need less semiconductor equipment then you need less

00:16:19.220 electricity infrastructure then you need less construction meaning you need less American jobs

00:16:23.880 which means you have less investment now you step back and you look at this this would mean

00:16:31.080 American workers get hurt and worse than that you have less American technological power than we

00:16:37.560 otherwise would have had before now one analyst described today's market reaction is quote just a

00:16:44.060 small taste of what the end of the ai spending boom could look like a small taste that's their

00:16:51.120 quote and here's the point everybody needs to understand china doesn't necessarily have to

00:16:57.320 beat america america can beat itself and that's the biggest danger here china doesn't have to

00:17:03.880 invest or invent a better chip tomorrow if americans make it impossible to build the

00:17:09.620 facilities that use our chips right now. China, by the way, doesn't have to destroy NVIDIA if

00:17:15.320 American politicians regulate its customers into paralysis. China doesn't have to shut down our

00:17:22.200 data centers if America shuts down our data centers ourselves. You get the theme here, right?

00:17:28.740 China doesn't have to defeat America energy infrastructure if we refuse to build enough

00:17:33.240 energy for us to win or even compete in essence all Beijing really has to do is keep moving while

00:17:40.060 America stops moving and that's why this debate matters now I'm unapologetically pro-American AI

00:17:48.880 because I know what happens if China wins they control AI they control how our kids use it 0.64

00:17:55.400 they control what data comes out they control everything I want the world's best artificial 0.70

00:18:01.820 intelligence developed in the united states of america and i want american companies leading it

00:18:06.700 i want american workers building it i want american universities producing the scientists

00:18:11.860 i want american semiconductor companies making those chips and i want american energy powering

00:18:17.760 these data centers and i want american values involved in all of it not chinese communist

00:18:24.340 party values shaping the technological architecture the rest of the world literally will be using 24

00:18:31.620 seven that's what i don't want so what is china doing now well they're saying we just need america 0.85

00:18:39.400 to slow down so that we can dominate ai and that's the part the slowdown crowd never well

00:18:45.860 understands or has to adequately answer the question look let's be clear china isn't shutting

00:18:53.540 down its research laboratories because we decide advanced ai is well you know quote unquote too

00:18:59.960 dangerous. The technology is here. It's going to be here. The race, and this is a AI arms race,

00:19:06.280 has already started. It will not end. America, we have basically two choices. We either lead

00:19:13.920 on AI or we surrender. Now, should we have safeguards? Yes. Should companies be accountable

00:19:21.700 if they break American law? Of course. And should communities make sure a trillion dollar technology

00:19:27.520 company isn't forcing grandma's electricity bill through the roof absolutely should companies pay

00:19:34.040 their fair share for infrastructure yes and should we protect america's electrical grid that's already

00:19:40.080 by the way gotten way too old and is way too vulnerable of course but there's enormous

00:19:45.400 difference between smart rules and strangling an american industry before we've even won the race

00:19:53.400 And here's another part of this that drives me also crazy.

00:19:57.000 There are a lot of people talking about data centers as though they're just giant warehouses making billionaires richer.

00:20:03.140 That couldn't be further from the truth.

00:20:05.900 Those buildings are becoming part of America's national security infrastructure right now.

00:20:11.500 20 years ago, people talked about oil refineries and pipelines as, quote, strategic infrastructure.

00:20:17.460 Today, computing capabilities and capacity that belongs in the same conversation.

00:20:23.400 Because being able to compute is literally power.

00:20:27.160 And the country controlling the most advanced computing power is going to possess advantages

00:20:31.280 that we, by the way, as human beings, may not fully understand yet.

00:20:35.680 Imagine AI accelerating the development of new weapons or new medicines or new cures

00:20:40.940 for diseases, new materials, maybe even cyber defenses, cyber attacks, drone technology,

00:20:48.040 autonomous military systems intelligence analysis satellite technology nuclear research

00:20:54.360 now answer me one question do you want those breakthroughs happening first in houston or

00:21:00.680 austin or silicon valley or phoenix or pittsburgh or new york or do you want that happening in

00:21:06.200 beijing or shanghai i know the answer for me is i want it happening in america every time

00:21:12.360 And that's why the China-linked influence operation should be a giant flashing red warning.

00:21:20.340 I'm not saying China created American opposition to AI.

00:21:23.560 It didn't.

00:21:24.440 I'm not saying every AI critic is somehow helping communist China.

00:21:27.800 They're not. 0.63

00:21:28.780 I'm saying China has an obvious strategic interest in exploiting our nervousness, our divisions, and making sure that America slows down. 0.80

00:21:39.140 that is what they're trying to do with their bots and their misinformation campaigns and we have the 0.93

00:21:45.200 evidence that these china-linked actors have already started to do exactly that in online

00:21:50.680 debates surrounding american ai infrastructure so when you see anonymous accounts suddenly telling

00:21:56.420 you that building the infrastructure necessary for ai dominance is some terrible national

00:22:01.640 catastrophe you have every right to ask this question number one who's behind that account 0.59

00:22:07.480 or that opinion.

00:22:09.180 I'm going to say that again.

00:22:10.180 Who's behind it?

00:22:11.920 Then the second question should be, okay, who's amplifying it?

00:22:16.860 And who benefits if America stops building?

00:22:20.020 Because I'll tell you one country that benefits enormously more than any other country out

00:22:24.280 there, that is literally communist China.

00:22:26.440 So this is an AI cold war. 0.82

00:22:29.320 And we better start treating it that way.

00:22:31.540 We've spent decades making the mistake of becoming dependent on China for manufacturing.

00:22:36.400 And we know how that ended during COVID.

00:22:39.080 We watched American factories leave, shut down.

00:22:42.520 We watched supply chains move overseas.

00:22:44.760 And we know what happened again during COVID.

00:22:47.580 We watched China dominate industries that America once led, 0.70

00:22:51.920 where now we don't even know how to do it anymore.

00:22:54.280 We can't make that same mistake with AI.

00:22:57.560 America, it's time that not only we invest in technology to drive this revolution,

00:23:02.840 but we have to make sure it stays in America.

00:23:06.360 We've got to make sure American engineers are designing those chips,

00:23:09.440 that American investors are the ones that are investing in these jobs.

00:23:14.560 We have to make sure we unleash American energy to protect this infrastructure.

00:23:19.380 We've got to build the data centers.

00:23:21.060 We've got to build the chips.

00:23:22.160 We've got to build the grid.

00:23:23.260 We've got to build all of it. 0.95

00:23:24.780 Because while we're having this debate, China is already moving forward.

00:23:30.340 Let's also be clear.

00:23:32.120 America invented AI, and China is now trying to win it.

00:23:36.460 And Donald Trump, by the way, his warning couldn't be clearer.

00:23:40.160 Whoever wins, AI wins.

00:23:43.580 He's right.

00:23:44.740 China knows it.

00:23:45.700 Wall Street knows it.

00:23:46.600 Silicon Valley knows it.

00:23:47.800 And America better figure it out very quickly because there is no trophy for second place in this AI Cold War race.

00:23:57.080 There's no participation ribbon waiting for us.

00:24:00.140 There is economic power. This is military power. This is national security. This is literally the future. And if you don't build it here, it's going to China. If you don't power here, it's going to China. If you don't invent it here, it's going to China. If you don't protect it here, China will own it. And that's why Donald Trump said we must win.

00:24:21.360 Thank you for listening to the 47 Morning Update with Ben Ferguson.

00:24:25.940 Please make sure you hit subscribe wherever you're listening to this podcast right now.

00:24:31.240 And for more in-depth news, also subscribe to the Ben Ferguson podcast,

00:24:35.680 and we will see you back here tomorrow.

00:24:39.640 Hey, I'm Mike Yam.

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00:26:09.520 iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. I'm Brett Coleman. And I'm

00:26:15.700 Trevor Sikama. If you love football and want to understand what's really happening on the field,

00:26:20.620 check out our show, NFL Pro. Every week, we break down the biggest plays, trends, and matchups using

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00:26:45.700 hey it's bobby bones join me and former nfl quarterback matt castle every wednesday on our

00:26:53.020 podcast lots to say with me bobby bones and matt castle you're in training camp and the rookie

00:26:58.960 quarterback has one good throwing session in front of the media suddenly everybody online says he

00:27:03.680 should start over you week one how do you handle this you just go back out to practice the next

00:27:07.960 day and wait for him to mess up listen to lots to say with bobby bones and matt castle on the

00:27:12.540 iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

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