Joe Lonsdale: American Optimist

What does political courage look like in action? What does it mean to stand up to special interests? And what are the fights we must take on — and win — to keep America free and prosperous? 

I recently interviewed Oklahoma Governor Kevin Stitt at the Cicero Institute's 2024 Courage Awards, where we recognized him and other bold leaders from across the country for taking on cronyism and corruption in the face of great opposition.  Stitt considers himself a businessman governor: he started Gateway Mortage with $1,000 and a computer before scaling it into a national company. He never sought public office before running for governor, and since he's taken charge, he's run it like a business: balancing budget shortfalls, streamlining permitting, and slashing regulations. More impressively, he's demonstrated real courage in standing up to powerful special interests, like the homelessness industrial complex, and others you might not expect, like the police union. 

Learn how he succeeded in getting real help to the homeless and mentally ill, and why he vetoed a pension increase for police officers. Stitt also explains how woke nonsense and cronyism manifest even in a deep red state — and how to fight it; why politics shouldn't be a career profession; and how he succeeded in passing one of the boldest school choice programs in the nation. Oklahoma has become one of the nation's fastest-growing states under his leadership, and you'll see why. 

00:00 Episode Intro

01:58 Entrepreneur to governor

05:29 Passing school choice

8:33 Taking on the homeless industrial complex

12:20 Vetoing police pension increase

15:45 Slashing regulations

19:05 Fixing the nursing shortfall / workforce readiness

22:13 Limiting the growth of government

For Episode 100, we have a special conversation with Elad Gil, one of Silicon Valley's great thinkers, builders, and investors. Elad has been involved with many of the leading technology companies of the past 20 years — and likely the next 20 years. Learn how he's backed dozens of unicorns, why he thinks AI is underhyped, and where he sees investment opportunities amid this new wave of disruption. 

An early leader at Google, Elad helped build the initial mobile team, before founding MixerLabs, which was acquired by Twitter in 2009. Elad stayed on as VP of Corporate Strategy and became a key "fixer" during Twitter's hypergrowth phase. Later, he co-founded Color Health, a genetic testing company specializing in cancer detection. Over the past decade, he's backed nearly 40 unicorns, including Airbnb, Coinbase, Figma, Instacart, and Stripe. He's also invested in Harvey, Mistral, Perplexity, Pika, and other leading AI startups. 

In this episode, Elad takes us behind the scenes of the early days of Google and Twitter, and how Silicon Valley culture has evolved. He explains his three categories of exceptional founders and how he positioned himself to become one of the top angel investors. We also dive deep into AI, from the trajectory of LLMs to frameworks for investing in the AI value stack. Finally, we discuss AI's impact on education and the most exciting possibilities for the decade ahead. 

00:00 Episode intro

01:16 Building Google’s mobile team

06:01 Early days at Twitter

11:37 Building Color Health

15:57 How he’s backed dozens of unicorns

21:52 How small clusters of talent change the world

25:20 Where are the young people in government?

27:25 Where are the young startup founders?

30:17 Why AI is underhyped

36:40 Will LLMs get exponentially better?

39:10 Investing in the AI value stack

41:33 AI and the future of education

The rich are getting richer, the poor are getting poorer. The wealthiest among us don't pay their fair share in taxes. The American Dream is disappearing... Are these claims true? What data are they based upon? And does it stand up to scrutiny?

This week, we analyze the debate over income inequality and mobility in America with economist and former U.S. Senator Phil Gramm. In his book, "The Myth of American Inequality" (winner of the 2024 Hayek Prize), Gramm lays out the oft-cited data for widening inequality and exposes where it falls short. According to the U.S. Census Bureau, the top 20% of earners possess 16.7 times the income of the bottom 20%. However, Gramm reveals that this data excludes nearly all government transfer payments to the poor, like food stamps, and fails to subtract the high taxes paid by top earners. Adjusting for these factors, inequality drops from 16.7X to 4X!

Gramm also points out that benefits to the poor have increased from $9,700 per household in 1967 (adjusted for inflation) to nearly $50,000 today. He argues that we suffer, not from extreme inequality, but from welfare-driven equality that encourages huge numbers of low-and-middle income Americans to drop out of the workforce.

Senator Phil Gramm served in Washington D.C. for 25 years, first as a Congressman and later as a three-term Senator from Texas. He's an economist by training who taught at Texas A&M before entering public service. His book is a must-read for understanding the inequality debate, the truth about the super-rich, and the state of the American Dream.

00:00 Episode intro

03:32 Is inequality extreme and growing?

10:45 Elon Musk and the super-rich

16:19 Is Warren Buffet cheating the government?

22:55 Industrial Revolution — setting the record straight

29:35 Do billionaires pay their fair share?

33:40 Is the American Dream dying?

Founded in 1913, the Anti-Defamation League has played an important role in protecting the Jewish community and fighting for civil rights. But in recent years, many believe it has lurched too Left and promoted content that ends up harming Jews. I sat down with its CEO, Jonathan Greenblatt, to discuss what the ADL has gotten right and debate where it's gone wrong.

Jonathan started his career in President Clinton's administration before finding success as an entrepreneur and later returning to the Obama White House. We don't align on politics, but we have mutual respect and I visited him at the White House during Obama's tenure to discuss policy issues. Many of the ADL's core activities are noble: report illegal threats against Jews, push back aggressively on anti-Semitism, and provide legal assistance for Jewish students harmed or threatened on college campuses. But recently, many on the Center and Right have taken serious issue with some of the ADL's actions, including its pressure campaigns against social media platforms and embrace of progressive politics that may be making Jews more vulnerable.

In our candid discussion, I challenged Greenblatt on ADL's Left-wing stances and its promotion of critical race theory and Ta-Nehisi Coates' earlier work. I was encouraged to hear about the ADL's aggressive actions against Harvard, Penn, and other institutions after October 7; his agreement that oppressor vs oppressed frameworks foment hate against Jews; and his call for regime change in Iran, not appeasement.

I’d like to see the ADL stop demonizing many on the Right and promoting woke nonsense on their site, distracting from its core purpose of fighting the actual enemies of Jews. But Jonathan and I agree that the ADL is an organization with a storied history and a valuable role to continue to play, especially given the pressing need to combat antisemitism today.

00:00 Episode Intro

02:15 Jonathan's background

05:14 ADL's History

08:39 Lessons from October 7

15:33 Have things improved on college campuses?

17:20 Iran funding antisemitism in the US

20:20 Has ADL gone hard Left? Does ADL teach CRT?

24:00 Will ADL stop promoting Ta-Nehisi Coates?

28:36 How wokeness causes antisemitism

At 19 years old, Jimmy John Liautaud dropped out of college to start his own sandwich shop. He spent 10 years perfecting his first 10 stores, before franchising his model and scaling to nearly 3,000 Jimmy John's locations nationwide. Then the government almost destroyed it.

This week, we sit down with the billionaire sandwich king to discuss his remarkable journey, the impact of government policy, and the consequences of elections. We dive into the business model that made Jimmy John's a national success, and how the Department of Labor under President Obama changed the regulations, sued his stores, and eventually caused him to sell the business. He now encourages business leaders to stand up and speak out, and explains why he's backing President Trump in the upcoming election.

He shares a wealth of lessons learned, including the qualities he looks for in managers and how he can tell if a restaurant will succeed or fail by looking at the front door. Along with his personal success, he's also created hundreds of millionaires within the company, including many who started as sandwich makers, and he donates millions to wildlife preservation and scholarships for disadvantaged youth. Jimmy loves his country, his family, and his community; he's a true American success story and you'll see why.

00:00 Episode Intro01:40 The first Jimmy John's store05:05 How Jimmy scaled nationwide07:03 How government almost ruined his business13:17 Why every election matters18:39 Want to win? Nail the details21:10 Turning around failing stores23:59 Minimum wage & AI + robots29:49 Final advice for entrepreneurs

Roland Fryer is a profile in courage; the Harvard economist follows the data where it leads, no matter the outcome. He studied the impact of paying kids for positive behaviors. He demonstrated how charter school best practices can transform even the worst public schools. And most controversially, he conducted a comprehensive study of police use of force, finding that racial discrimination exists at low levels of force but not in shootings. His colleagues at Harvard pressured him to shelve the study; he received death threats. Learn why he didn't cave and why says he would do it again tomorrow. 

Roland is not only a leading public intellectual but also a builder. In 2020, he co-founded Sigma Squared, which uses data science and new AI tools to help employers find the best talent for the job, or as he says, supercharge meritocracy. His goal: bring HR into the AI age and take the hiring process from a well-educated guess to a precise science.

Roland's accomplishments are even more impressive considering his upbringing: his father went to prison and his mother walked out. Yet, he fell in love with economics and worked his way through college — including stints at McDonald's and Golden Corral —  to become the youngest tenured black professor in Harvard's history! Roland personifies American optimism, and you'll see why. 

Learn more about Roland's research and read his study on charter school best practices here.

The U.S. Navy dominated in World War II, not because we had the most advanced ships, but because our industrial capacity was unmatched. When we lost a ship in battle, we could instantly replace it with two or three new ones. Our enemies couldn't keep pace. But today, our shipbuilding is a shell of its former self. In 1943, we built over 18,000 ships. Last year, we built eight (and retired 12). China, on the other hand, is producing hundreds of ships and now boasts 250 times the U.S. shipbuilding capacity!

How can the U.S. Navy maintain deterrence? One answer is autonomous surface vehicles (ASVs) and harnessing new possibilities in AI to field and simultaneously coordinate hundreds or thousands of unmanned vessels. That's why Dino Mavrookas and his team are building Saronic Technologies — the leading ASV manufacturer. Saronic is the only company engineering the hardware, software, and AI to create modular platforms that can be produced economically at scale. They currently offer three classes of vehicles that can be fitted with various sensors and weapons (including the possibility of torpedoes!).

Dino believes the push into unmanned, attritable systems is our generation's space race. He served 11 years as a Navy SEAL with eight combat tours before working as a private equity technology investor. He partnered with 8VC through its Build program to launch Saronic in 2022, and it has quickly become one of the fastest-growing defense technology companies. Saronic recently closed a $175 million Series B, making it the newest defense unicorn. Its advisors include former admirals and other naval leaders, and did we mention it's being built right here in Austin, Texas!

Wilbur Ross is one of the great turnaround artists in modern finance. Dubbed the "King of Bankruptcy," he restructured over $400 billion of assets, saving companies — and jobs — in distressed industries like steel, coal, and textiles. In 2016, he went to Washington as U.S. Commerce Secretary to take on a similar mission and defend American companies and workers in high-stakes trade negotiations, particularly with China.

We were privileged to host Wilbur for a conversation about his storied career and new book: “Risks and Returns: Creating Success in Business and Life."  We began with his investment philosophy and how he reshaped Wall Street, including his close relationship with Mike Milken and the inception of leveraged buyouts.  Wilbur also recalls going head-to-head with Donald Trump during the bankruptcy negotiations for the Taj Mahal Casino in Atlantic City, and explains how that interaction led him to become one of the first Wall Street leaders to support Trump's candidacy for president. 

Next, we dive into his tenure as Commerce Secretary and the ongoing debates over U.S. trade policy. He shares his favorite Trump story — an early interaction with Chinese President Xi Jinping — as well as the accomplishments he's most proud of, like regulatory relief, and what he wishes the administration had done differently: act faster and more boldly! Wilbur is a patriot and leader we can all learn from, and hope you'll check out his new book. 

He predicted Vladimir Putin would attack Ukraine months before it happened. Now he believes similar signals foreshadow China invading Taiwan. What similarities does he see? When and how would a Chinese incursion unfold? And what can the U.S. do to deter this conflict?This week, we're joined by Dmitri Alperovitch, co-founder of web security giant CrowdStrike, who departed the firm several years ago to focus on the intersection of technology, national security, and global competition as the Chairman of the Silverado Policy Accelerator. He's the author of an important new book: "World on the Brink: How America Can Beat China in the Race for the Twenty-First Century."

We begin with Dmitri's entrepreneurial journey, from building a multi-billion dollar cyber security firm to lessons learned on the front lines of Chinese and Russian cyber attacks. Next, we discuss Dmitri's new book, his Cold War II thesis, and the comparative strengths and weaknesses between China and the U.S. He lays out Putin's rationale for attacking Ukraine and the similarities he sees with Xi Jinping and Taiwan — and even predicts the date China might invade! Finally, he explains the four key technologies where the U.S. must remain ahead of China to prevent a Cold War from turning hot.

Electronic shields are iconic elements of Star Trek, Star Wars, and other great American sci-fi. Once a fantasy, we are now building versions of these in real life! And they're a vital solution to a new type of threat confounding our legacy defense industry.

This real-life force field alternative is called directed high-power microwave (HPM), and it's an answer to drone swarms and the proliferation of autonomous, attritable threats. Founded out of 8VC Build in 2018, Epirus is building the world's most advanced HPM systems, capable of disabling hordes of drones and other electronic devices up to miles away — and it only costs pennies to fire! This week, we talk with Epirus CEO Andy Lowery about the science behind HPM and why the Army, Navy, Marines, Air Force, and Space Force are all pursuing Epirus' technology.

We begin with the changing nature of warfare and why harnessing — and defending against — autonomous, attributable systems is essential for any future conflict. Next, we dive into HPM technology and its myriad applications, from taking out drones, missiles, boats, and other vehicles to defending satellites in space. We also discuss the rise of "neo-primes" like SpaceX, Palantir, and Anduril and a new model for getting the best technology into the hands of our warfighters as quickly as possible. Finally, we discuss the importance of fusing Silicon Valley's AI and big data expertise with the U.S. defense-industrial base's advanced hardware experience in order to maintain our technological advantages over China and other adversaries.

Learn more about Epirus’ approach to electronic warfare, and follow Epirus on Social: YouTube, LinkedIn, X