In this episode, Byrne Hobart joined Matjaž Leonardis in Austin for an Interintellect salon — a platform for 21st-century intellectual discourse—to discuss his new book Boom: Bubbles at the End of Stagnation, exploring how technological advancements, market paradoxes, and historical and modern financial bubbles — from the Manhattan Project to cryptocurrencies — reveal the complex dynamics between innovation, ideology, ambition, and hyper-financialization in a nonpolitical, high-quality conversation among leading and emerging thinkers.

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Highlights from the Episode:

• Two Types of Bubbles: Extrapolation bubbles predict transformative future changes unlike the past, while mean reversion bubbles project an intensified continuation of past trends.
• Financial Markets and Risk-Taking: Financial markets can both encourage and inhibit innovation.
• Talent Allocation: The sectors where talented individuals choose to work—shifting historically from government to the private sector to finance—profoundly shape the direction and nature of society’s major innovations and projects.
• Different Investment Approaches: George Soros - Identifies momentum and rides bubbles up, then exits when sentiment changes.
• Bubbles and Progress: Many transformative bubbles involve building multiple things in parallel that wouldn't make sense individually.

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LINKS:

Byrne’s writing: https://thediff.co

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This week, Byrne Hobart and Erik Torenberg explore how technological advancements, policy shifts like Trump's tariffs and U.S. industrial policy, the re-industrialization of America, the influence of institutions like Harvard, the evolving role of the U.S. dollar, and the rise of OpenAI are reshaping global markets, businesses, and the future of artificial intelligence.

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Highlights from the Episode:

• Trump's Tariffs and Economic Impact: The recent tariff implementation appeared more spontaneous than strategic compared to earlier Trump administration policies.
• US-China Trade Relations: Debate over which country has more leverage: China can maintain production without US customers in the short term, but faces demographic challenges long-term.
• Strategic Industrial Policy: Byrne suggests focusing on industries with national security implications (drones, rare earth processing) rather than attempting to rebuild entire sectors.
• OpenAI Developments: Discussion of OpenAI's potential open-source strategy and how it might reinforce rather than undermine their business model.
• White Collar Employment Futures: Byrne explores whether white-collar workers might experience a similar pattern to manufacturing workers as AI adoption increases.

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LINKS:

Byrne’s writing: https://thediff.co

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In this episode of The Riff, we are releasing a conversation Byrne Hobart had on the Bankless podcast about Byrne's book Bitcoin, exploring the provocative idea that speculative Bubbles—while sometimes destructive—can be powerful drivers of innovation, with examples from history and present-day trends like AI and crypto, ultimately highlighting the value of embracing risk to shape a transformative future.

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Highlights from the Episode:

• Bubbles as coordination mechanisms: Byrne argues that certain bubbles are actually productive forces that help coordinate massive resources toward ambitious technological goals that wouldn't otherwise be achieved.
• Technological clusters in time: Just as certain industries cluster geographically (finance in NY, film in LA), bubbles create "clusters in time" where talent and capital converge to build related technologies
• Bitcoin and Crypto Evolution: Byrne traces his early interactions with Bitcoin from skeptical commenter to eventual participant. Bitcoin's resilience after Silk Road shutdown demonstrated it had value beyond illegal markets.
• Great Stagnation and Risk Aversion: Modern society has become increasingly risk-averse, favoring safety, credentials, and incrementalism over bold innovation.
• Future Frontiers for Bubbles: From space exploration and Mars colonization to crypto, digital property rights, biotech, life extension, energy innovation, and the emerging frontier where AI and crypto intersect, we are still in the early stages of transformative breakthroughs.

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NetSuite

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LINKS:

Byrne’s writing: https://thediff.co

Bankless: https://www.bankless.com/podcast/why-bubbles-are-good-byrne-hobart

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This week, Byrne Hobart and Erik Torenberg discuss the transformative impact of technological change on global trade, AI’s disruption of senior roles, the debate over AI-generated art, and market dynamics—particularly in live entertainment ticketing—offering a wide-ranging and thought-provoking discussion.

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Highlights from the Episode:

• US-China Trade Relations: There's an interesting role reversal where China is now championing free trade while the US has become more protectionist.
• China's Economic Challenges: Demographics are a crucial factor affecting China's economy - an aging population creates financial imbalances.
• AI's Impact on Work Hierarchy: Contrary to common assumptions, AI might replace senior rather than junior roles. While AI isn't a perfect substitute for mentorship, it provides "synthetic wisdom" without requiring equity stakes.
• StubHub and Pricing Dynamics: Entertainment businesses operate as "stacks of monopolies" (artists, venues) monetizing layers of perfect competition.
• AI-Generated Art ("Ghibli-fication"): The massive popularity of Studio Ghibli-style AI image generation demonstrated unexpected demand for AI services.

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NetSuite

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---

LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg explore Donald Trump Jr.'s financial leverage of the Trump brand, Dustin Moskovitz's shift toward AI existential risks, Elon Musk's strategic decisions with Twitter, potential U.S. recessions, political party shifts, China's AI policy, and the broader impact of these developments on Wall Street and Main Street.

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Highlights from the Episode:

• Political Brand Leveraging & Business: Byrne discussed how Donald Trump Jr. is leveraging the Trump brand, noting this follows a pattern where relatives of politicians often engage in business dealings that trade on political connections.
• High-Stakes Career Choices: They analyzed Dustin Moskovitz's departure from Asana, suggesting it may be motivated by existential AI concerns.
• Existential Risk Perspectives: Byrne distinguished between "hot apocalypse" scenarios (like nuclear war) and "cold apocalypse" scenarios where societal function gradually deteriorates.
• Twitter/X and Elon Musk: They discussed how Musk has managed to technically restore Twitter's valuation through financial engineering and leveraging connections between his companies.
• Economic Policy and Tariffs: Extensive discussion of Trump's tariff strategy as a negotiation tactic rather than a permanent policy.
• Recession Concerns: Byrne explained how markets anticipate economic changes before they appear in employment data, creating apparent disconnects between Wall Street and Main Street indicators.

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SPONSORS:

NetSuite

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---

LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg explore the effects of technological change on media and society, covering topics such as the AI debate, blogging's social impact, AI's influence on search and data, the changing news industry, foreign aid cuts, and the rise of new tech elites.

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Highlights from the Episode:

• AI and Written Content: The comparison is made to how society adapted to blogging, which was initially viewed as disruptive but was eventually incorporated into mainstream media ecosystems.
• Media Evolution and Business Models: "Real news" remains the least lucrative part of the news business due to high fixed costs and difficult monetization.
• On The Washington Post's Strategy: Byrne suggests Bezos might be positioning the Post to serve an underserved audience: center-right libertarians who want economic growth while avoiding both progressive politics and Trumpism.
• Tech Elites and Government: Tech and government used to be more closely intertwined (semiconductor industry, Apollo program) but have diverged.
• Foreign Aid and USAID: Argument that programs like PEPFAR (HIV/AIDS relief) have been highly effective in terms of lives saved per dollar.

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SPONSORS:

NetSuite

More than 41,000 businesses have already upgraded to NetSuite by Oracle, the #1 cloud financial system bringing accounting, financial management, inventory, HR, into ONE proven platform. Download the CFO's Guide to AI and Machine learning: https://netsuite.com/102

---

LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg examine why Warren Buffett's Berkshire Hathaway can't be successfully replicated today, analyze Bill Gates's public versus private persona, and consider how economic growth manifests as "premium mediocre" options like Chipotle.

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Highlights from the Episode:

• Berkshire Hathaway's Unrepeatable Success: Buffett's empire evolved through historical accidents and unique market conditions that no longer exist—trying to copy it today misses what made it special.
• The Real Berkshire Advantage: While most focus on Buffett's acquisition strategy, Berkshire's true uniqueness is its fee structure—Buffett aligned his incentives by getting rich alongside shareholders, not from carried interest.
• Gates's Dual Persona: Bill Gates cultivated a humble public image despite being famously combative at Microsoft, demonstrating how business leaders craft public personas that may differ from their actual management styles.
• The Problem with Reverse-Engineering: Attempting to copy successful models often fails because you're copying what worked in past conditions rather than the underlying strategic thinking.
• Premium Mediocre Future: If AI drives 10% GDP growth, we might just get more "Chipotle-fication"—consistently good but not exceptional products available to everyone, rather than technological utopia.

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SPONSORS:

NetSuite

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---

LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg discuss technological inflection points and examine how legal frameworks mask continued globalization despite apparent retrenchment, explores US-China dynamics, analyzes AI industry structure and emerging models, and considers Uber's strategic positioning against autonomous vehicles.

---

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Highlights from the Episode:

• Globalization isn't truly reversing, but adapting through legal structures that help bypass trade barriers (like routing Chinese goods through Vietnam)
• China's economic model succeeded in early growth stages but faces challenges with an over-leveraged real estate sector and declining population
• Taiwan remains in a surprisingly stable but tense relationship with China despite rhetoric suggesting imminent conflict
• The AI industry is evolving beyond simple model providers/applications into specialized layers with different data access advantages
• Financial engineering works well for known variables but struggles with pure research funding due to fundamental uncertainty
• Uber faces an existential challenge from autonomous vehicles that initially complement their marketplace but could eventually replace it

--

SPONSORS:

NetSuite

More than 41,000 businesses have already upgraded to NetSuite by Oracle, the #1 cloud financial system bringing accounting, financial management, inventory, HR, into ONE proven platform. Download the CFO's Guide to AI and Machine learning: https://netsuite.com/102

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

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This week, Byrne Hobart and Erik Torenberg discuss the transformative impact of technological advancements, particularly OpenAI's research, Elon Musk’s $97 billion offer to acquire its controlling nonprofit, and the implications for business, jobs, regulation, and Musk's strategies with X and Doja.

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Highlights from the Episode:

• Musk made a $97.4 billion offer to buy the nonprofit that controls OpenAI.
• Byrne highlighted that while AI research may be slightly lower quality, it's much faster and valuable for quick, preliminary research.
• Companies like Apple, Google, and Microsoft have significant advantages in developing AI agents due to their access to user data.
• Byrne argues that traditional justifications for sovereign wealth funds (currency management, resource wealth management) don't apply to the US.
• Discussion of how X/Twitter has changed under Musk's leadership.

--

SPONSORS:

NetSuite

More than 41,000 businesses have already upgraded to NetSuite by Oracle, the #1 cloud financial system bringing accounting, financial management, inventory, HR, into ONE proven platform. Download the CFO's Guide to AI and Machine learning: https://netsuite.com/102

---

LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg explore the impact of technological advancements on markets and businesses, covering topics like global trade tariffs, political populism, AI's evolving role, open-source vs. proprietary models, stock market trends, and Meta’s investments in the metaverse and AR.

---

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Highlights from the Episode:

• Trump's tariff approach (particularly the proposed 25% on Canadian goods) makes sense as a negotiating bluff but is problematic as long-term strategy.
• Unlike the US dollar system, China's currency has limited international circulation, affecting their global economic influence.
• The market reaction to DeepSeek's developments affected both direct AI companies and adjacent sectors.
• Meta's transition to being more capital-intensive (through AI investments) may actually strengthen their competitive position.
• Companies like Meta have incentives to commoditize some AI capabilities while maintaining proprietary advantages in others.

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SPONSORS:

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LINKS:

Byrne’s writing: https://thediff.co

---

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This week, Byrne Hobart and Erik Torenberg discuss the major disruptions in tech and business driven by AI advancements, examining reactions to DeepSeek's announcements, stock impacts on companies like Nvidia, volatility in AI investments, Meta's Threads, Elon Musk’s influence on X, the role of tech in a politically charged landscape, and how governments could shape industrial strategies to support national champions.

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Highlights from the Episode:

• The announcement of DeepSeek's AI model caused significant market reactions, particularly affecting NVIDIA and other AI-related stocks.
• Hedge funds' risk management practices, which typically involve reducing exposure across related positions during increased volatility, can amplify market reactions and trigger cascading effects across multiple sectors.
• While DeepSeek demonstrates impressive optimization with limited resources, US companies maintain advantages in hardware and talent depth, positioning them to catch up with increased investment in AI infrastructure.
• Discussion of Threads vs. X (formerly Twitter) highlighted the importance of network effects.
• The $100B-500B AI infrastructure project announcement signals a long-term commitment to AI development, with its massive scale potentially deterring competitors and resembling SoftBank's strategy of over-funding to dominate markets.

--

SPONSORS:

Notion

📝Notion offers powerful workflow and automation templates, perfect for streamlining processes and laying the groundwork for AI-driven automation. With Notion AI, you can search across thousands of documents from various platforms, generating highly relevant analysis and content tailored just for you - try it for free at https://notion.com/upstreampod

Vanta: Vanta simplifies security and compliance for businesses of all sizes. Automate compliance across 35+ frameworks like SOC 2 and ISO 27001, streamline security workflows, and complete questionnaires up to 5x faster. Trusted by over 9,000 companies, Vanta helps you manage risk and prove security in real time. Get $1,000 off at https://vanta.com/revolution

---

LINKS:

Byrne’s writing: https://thediff.co

---

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https://twitter.com/TurpentineMedia (Turpentine)