About this transcript: This is a full AI-generated transcript of The 11th Hour With Stephanie Ruhle 5/16/26 — MSNBC Breaking News Today May 16, 2026 from ME Sick, published May 17, 2026. The transcript contains 7,513 words with timestamps and was generated using Whisper AI.
"The Iran war nears a pivotal 60-day deadline. The law says Trump must make the case to Congress for continuing the conflict or end all military action. Then, what war in Iran is costing Americans at the pump? Gas prices spike again, surging to a national average of $4.30 a gallon, the highest we..."
[0:00] The Iran war nears a pivotal 60-day deadline.
[0:03] The law says Trump must make the case to Congress for continuing the conflict or end all military action.
[0:09] Then, what war in Iran is costing Americans at the pump?
[0:13] Gas prices spike again, surging to a national average of $4.30 a gallon, the highest we have seen in four years.
[0:21] Plus, the Supreme Court's ruling on the Voting Rights Act supercharges the race for new congressional maps
[0:26] as the 11th hour gets underway on this Thursday night.
[0:38] Good evening, once again. I am Stephanie Ruhle.
[0:41] And Trump's war in Iran has now lasted more than two months.
[0:44] And we are just one hour away from the deadline for the president to either end the conflict
[0:49] or officially request authorization from Congress under the War Powers Act.
[0:53] But Defense Secretary Pete Hegseth, well, he seems to think there is a loophole.
[0:58] Listen to what he told the Senate Armed Services Committee earlier today.
[1:01] On Iran, ultimately, I would defer to the White House and White House counsel on that.
[1:08] However, we are in a ceasefire right now, which our understanding means the 60-day clock pauses
[1:14] or stops in a ceasefire. So, you're not in. That's our understanding, just so you know.
[1:19] OK, well, I do not believe the statute would support that. I think the 60 days runs maybe tomorrow.
[1:24] And that's going to pose a really important legal question for the administration.
[1:32] We'll have to see whether that theory proves true.
[1:34] However, if hostilities were to resume, it would definitely change the calculus.
[1:39] And Axios is reporting that, according to two separate sources, military commanders were set
[1:43] to brief the president as soon as today on new plans for potential military actions in Iran.
[1:49] Those could include a wave of what they call short and powerful strikes to break the deadlock
[1:54] and peace talks, as well as an operation to completely take over the Strait of Hormuz.
[1:59] Meanwhile, the president is not publicly acknowledging the negotiations are even at an impasse.
[2:03] Nobody knows what the talks are, except myself and a couple of other people.
[2:11] They want to make a deal badly. We have a problem because nobody knows for sure who the leaders are.
[2:18] It's a little bit of a problem. We're not going to have a nuclear weapon in the hands of Iran.
[2:22] The gas will go down. As soon as the war's over, it'll drop like a rock.
[2:27] There's so much of it. It's all over the place, sitting all over the oceans of the world.
[2:31] So they don't even know who's in charge? I'm not sure if that's true, because Iran's
[2:38] supreme leader posted several messages on social media today, and he did not sound like someone
[2:44] who is desperate to make a deal.
[2:46] Quote, Iran will put an end to the hostile enemy's exploitation of the Strait of Hormuz.
[2:52] He then added that Iranians consider their scientific capacity, including nuclear and missile
[2:57] technologies to be national assets. With all of that, fears of escalation are causing chaos in
[3:02] the oil market. International Brett crude futures closed at over $110 a barrel after reaching a
[3:09] wartime high of $126 a barrel yesterday. You might say, what does that have to do with me? Well,
[3:15] it has to do with this. The average U.S. gas price is now $4.30 a gallon. That is 30 cents more than it
[3:22] was just one week ago. Now it's time to get smarter with the help of our leadoff panel this evening.
[3:27] And it's certainly going to be a good one, because Peter Baker is here, chief White House
[3:31] correspondent for The New York Times. Miles Taylor, former chief of staff for the Department of
[3:35] Homeland Security during the first Trump administration. And he is the founder of defiance.org.
[3:40] And Lieutenant General Mark Hertling, retired commander of the U.S. Army Europe. And I am super
[3:46] excited to announce he is our newest military analyst here at MSNOW. So, Mark, I officially
[3:53] welcome you to the MS family. I'm thrilled that you are here. So, here's your test. You're going to
[4:00] have the first question tonight. Let's see how you do. Could you walk us through the risks of potential
[4:05] options for these new military strikes? What Axios is reporting? Yeah, we've talked about this. And thank
[4:10] you, first of all, Stephanie. It's great to be part of the MSNOW team. But what I'll talk about a little
[4:16] bit is the dangers involved in any kind of escalations at this point. The military commanders,
[4:22] the CENTCOM commander, is giving briefings, allegedly, to the White House, to the chairman,
[4:27] the SECDEF, and the president on what the options might be. What I would suggest is they better be
[4:33] pretty good and they better be well thought out. Because if we're talking about putting forces
[4:38] anywhere along the Strait of Hormuz or capturing any or seizing any of the islands in the area,
[4:45] it's going to be rough going. A very tough situation along the coast. There is still
[4:51] unknowns like the mines in the water, the potential for additional drones and missile launches by Iran
[4:59] against targets in the area. And I would suggest that it could be a very difficult offensive operation
[5:06] if they're planning to do something like that. You opened up in the beginning of the program
[5:12] talking about the pause, the potential pause that would restart the clock. I'm not a lawyer either,
[5:18] but I don't think that lives up to the spirit of either the 60 or the 90-day rule regarding combat
[5:26] operations in a theater and how much time the president has to notify the Congress and the American
[5:32] people exactly what he's doing. The fact that we're debating what forces may do going into the area,
[5:39] what forces they are, and what their actions are going to be, gives an indication that, again,
[5:45] America's sons and daughters are going into harm's way. And we really don't know what the objective is
[5:50] and what they're trying to accomplish for the parents and the loved ones of those sons and daughters.
[5:56] Miles, what is your understanding of the War Powers Act? Because we heard right there from
[6:00] Secretary Pete Hegseth, he's thinking or he claims that the ceasefire, pause that clock.
[6:05] Well, you know, this is the type of thing that's big constitutional law. In other words,
[6:11] you know, there's not a bureaucratic lawyer you can go to in the government that says,
[6:16] hey, can you just look at the text of the contract here and tell me if I'm in violation or not?
[6:21] You're going to have, over the course of the next 48 hours, legal scholars on the right come out and
[6:28] defend the administration's interpretation. But I also suspect you are going to see a lot of legal
[6:33] scholars, regardless of their ideological stripes, say, look, this is pretty clear when you're looking
[6:38] at the War Powers Act and how it relates back to the U.S. Constitution. And for all intents and
[6:44] purposes, they're about to go into the red zone outside of compliance with that. That is going to
[6:50] lead to demands to bring more of these officials back up to Capitol Hill. It's going to lead to
[6:55] frustration. But here's the other thing, is right now the administration is banking on the fact
[7:01] that Republicans will have their back, that Republicans will look the other way,
[7:05] let the administration violate the War Powers Act. But if the administration continues this fight,
[7:10] continues kinetic engagement in the conflict zone, if gas continues to surge and markets panic,
[7:17] which seems to be the direction that we are trending, that support could evaporate very,
[7:22] very quickly. Peter, what do you think happens tomorrow? Because of course, Democrats are going
[7:27] to call this theory wrong. But last week, when I interviewed Rand Paul and I asked him about the
[7:32] war, he said, wait, wait, wait, you know, come 60 days, everything's going to be so different.
[7:36] And we know that Republican Senator John Curtis of Utah, he wrote an op-ed saying that he would not
[7:41] support the operation past 60 days without congressional sign-off. Where do you think we're headed tomorrow?
[7:46] You know what? I think nothing happens tomorrow. I mean, the truth is that there is no teeth
[7:52] to this law. The War Powers Act has always been a complicated and controversial law since it was
[7:59] passed under the Nixon administration. Remember, the Congress passed it. Nixon vetoed it. He thought
[8:04] it was an abrogation on presidential power. Congress passed it over as vetoed. Every president since
[8:08] then, Republican and Democrat, has at some point or another not fully recognized the authority of
[8:15] this law. Sometimes they've gone along with the, you know, the attributes of looking like they were
[8:21] complying with it. But there's always been a constitutional argument about this law.
[8:25] And I would imagine that tomorrow comes and goes and nothing will happen, because there's nothing
[8:30] in the law that says what happens if the administration doesn't comply with it. Somebody would have to go
[8:35] to court. They'd have to prove standing. They'd have to get a court to decide. They wanted to get
[8:39] involved in what is really a political contest between the executive and the legislative branch.
[8:45] They're reluctant to do that kind of thing. And so I don't think that necessarily, you know,
[8:49] if some clock goes off tomorrow and ding, ding, ding, you know, the military has to come home.
[8:54] Now, the real power Congress has, if they want to do something about this, is through the power
[9:00] of the purse. I doubt very seriously they're willing to cut off funding for the war, especially,
[9:05] as Miles said, the Republicans are going to have President Trump's back. They still control Congress
[9:10] barely through very narrow majorities. And I don't think that you're going to see a will at this
[9:15] point to go as far as cutting off aid, which is the, or the cutting off funding, which is the only
[9:19] actual technique that the Congress has to enforce his will at this point.
[9:24] And, Peter, does the White House think that new strikes would actually bring Iran back to the
[9:28] negotiating table? Because despite what the president says, it doesn't sound that way on their side.
[9:35] Well, listen to what the president just said. He says they're desperate for a deal, but we don't know
[9:38] who they are. We don't know who we're talking about. We don't know who the leaders are. But whoever they are,
[9:42] they're desperate, you know? So, how do you know they're desperate if you don't know who they are?
[9:46] It's a very curious situation here, obviously. Look, the Iranians obviously would like to end the
[9:53] war, but they're not going to do it on terms that President Trump wants them to do it on.
[9:57] The question is whether or not there are terms that would involve concessions by both sides that
[10:02] both sides could live with. It's really hard to see how that happens at this point. Both sides
[10:06] have political imperatives at home that make any kind of concessions unlikely. It's not like the
[10:14] president's going to accept something that would be along the lines of what President Obama did under
[10:17] the JCPOA. That was the nuclear deal he sealed in 2015, because, of course, President Trump said
[10:22] it was a terrible deal and then abrogated it. Well, any deal with the Iranians might look a little
[10:27] like that. Even if you've got better terms, you know, it's not likely to be that the Iranians simply
[10:32] say, OK, you're right, we're done with nuclear power altogether. We're never going to go after
[10:36] it again. And even if they did say that, who would trust them? What would be the mechanism that you
[10:40] would verify that in? The Trump administration hasn't even addressed that kind of an issue.
[10:44] So, the idea that there's a deal in the making seems very hard to imagine. At the same time,
[10:49] it's hard to imagine the president really wants to get back into the full strikes scenario,
[10:53] because right now this war has not gone well politically. Most of the American public is against it.
[10:58] Republicans are very nervous about it going into the midterms.
[11:01] They would like to find a way out of this if they can. The question is,
[11:04] is there a way out of it? General, the New York Times editorial board
[11:08] wrote the following, quote, The U.S. military was losing its edge. After Iran, now everyone knows
[11:14] it. Do you agree? Has this conflict exposed our weakness? I don't, Stephanie. I read that article.
[11:23] And truthfully, I just I agreed with some of it. There are some very good points in it.
[11:28] But the fact of the matter is the folks that write on the editorial board are reporting on what they see.
[11:33] I know what's going on in the military. I, in fact, today, talked to a commander
[11:38] who is training against drones someplace in Texas. And we're talking about a new revolution
[11:44] in warfare, an evolution. I'm sorry, I used the wrong word. It's an evolution
[11:48] in combat. And every generation has that. You know, Stephanie, I retired in 2013.
[11:54] And in the last 12, 13 years since I've been retired, there has been exponential changes on the
[12:01] battlefield, mostly driven by what's been going on in Iran. For a while, we were paying very much
[12:06] attention to that. For the last several months, we've kind of been pulled away from that.
[12:10] We could have learned a whole lot. It's sort of like watching the Germans conduct a blitzkrieg
[12:17] operation before World War Two. You would learn a lot from someone that's doing something
[12:22] evolutionary. We haven't seen that as much. But I got to tell you, in every war, there's changes
[12:28] like this. You have to adapt. The U.S. military is going after it. They could be a whole lot further
[12:34] along, as far as I'm concerned, if we had some more connections with the Ukrainians and some of the
[12:39] other agencies that are working these kind of concepts on the battlefield. But I believe we're
[12:45] doing just fine. And I think the New York Times editorial board overstated a problem. You always
[12:50] have those kind of folks talking about the next war and how we're not prepared for it. The military
[12:55] learns quickly and adapts. And that's why we're lucky to have you and your expertise. Miles, I want to get
[13:01] your take on something else Secretary Hegseth said today in his Senate hearing. Watch this.
[13:05] I believe we do have the support of the American people. And we have briefed regularly what this
[13:12] mission looks like and why it's critically important that we undertake it. And I would
[13:16] remind you and this group that we're two months in to an effort. And many congressional Democrats,
[13:22] as I pointed out, want to declare defeat two months in. Iraq took how many years? Afghanistan took
[13:28] how many years? And they were nebulous missions that people went along with. This is different.
[13:33] This is a defined mission set that we have had great success in pursuing against the
[13:38] determined enemy who seeks nuclear weapons. This is different. How is that going to sit with the
[13:45] scores of American people who say, I don't know why I'm in this war. And by the way, this war is forcing
[13:51] me to decide between filling my car with gas and filling my refrigerator. Stephanie, almost everything
[13:59] that Secretary Hegseth said in that sentence, those several sentences, was wrong. The American
[14:06] people are not behind this war. In fact, the war is already, according to polling today,
[14:13] more unpopular than Vietnam was, okay? A war that dragged on for years and slid in popularity. This
[14:19] has been going on for 60 days, and it's now more unpopular than Vietnam. Americans are not behind it.
[14:25] The objectives are not defined clearly. And the biggest admission of that, Stephanie,
[14:31] is reporting today from Axios that shows the administration is considering an array of
[14:37] different options, one of which reportedly is resuming conventional bombing to potentially
[14:44] strike infrastructure targets. Another reported option is to go try to send special forces to seize
[14:51] the fissile material that could be used to build nuclear weapons. And another approach is to seize
[14:56] more of the Strait of Hormuz and operate it. Those are three completely different strategic
[15:02] objectives. Those are not defined objectives. That is an administration slailing to find some way
[15:09] to claim victory so that it can then settle this war. This is what this really gets down to.
[15:15] Right now, Donald Trump, he sees the news like anyone else. He sees that this war is a political and
[15:21] actual loser. They haven't obtained any major strategic objectives, and he just needs some
[15:29] kind of win. That is what is happening here. Those are the conversations being had with the president.
[15:35] Get me some kind of win so I can claim victory. But here's the problem. None of those options I just
[15:40] listed get them the victory that they said they were going to get. And every single one of those options,
[15:46] even if it's successful in getting the Iranians to the table, still probably results in an Iran
[15:52] that in certain ways is stronger than it was before. Maybe not their conventional military
[15:57] capabilities, but certainly the leverage they have over the international system is greater than it
[16:04] was when we went into this conflict. And that's going to be a hard calculus to upend in a matter of
[16:09] days or weeks. General, the Pentagon just bought a new kind of interceptor drone, which they have not
[16:16] used before from a company backed by two of Donald Trump's eldest sons, Don Jr. and Eric. Now,
[16:22] the boys definitely say they're private businessmen and the company says there's no conflicts of
[16:26] interest. But does this raise any concerns for you? It does, along with all the other conflicts
[16:33] of interest we've had with those in government who are buying up stocks and different weapons
[16:38] producers and different defense contractors. It's just it's a lot like what happened in Turkey
[16:45] with their reactor drones and the son of Erdogan buying into that company. We know the Turkish
[16:51] government is corrupt and that's what happened there. And to look past this, to know what's going
[16:57] on in terms of an evolution and have a real estate family starting to buy in defense contractor
[17:03] devices like drones, which are the most important thing that we have to update ourselves in, they know
[17:09] that's going to be a big contract. So, yeah, it causes me a great deal of pain because we know
[17:16] where some of the drones are going to be bought from. It's that company in and of itself.
[17:19] One more question to all of you, Miles. The DHS, the shutdown, is set to end after the House bill
[17:29] passes most of the agency, including the TSA. Why didn't they just do this sooner?
[17:34] Well, look, I mean, if I was going to give them the benefit of the doubt, which would be very,
[17:41] very generous, the mechanism that they're using to reach this deal, it's called budget reconciliation.
[17:46] It's kind of an underhanded mechanism, Stephanie. It's preserved for when the House passes a budget,
[17:52] the Senate passes a budget. They've got to put the two together, reach a compromise and send it back
[17:57] for a majority vote. This allows them to get around the filibuster. And so in normal times,
[18:03] you don't jump straight to reconciliation because it's a really underhanded tactic. So for a period
[18:09] of time, Republicans were trying to get Democratic votes. They thought they could pass this the
[18:15] normal way. Remember, Democrats were demanding primarily that the administration comply with the
[18:21] U.S. Constitution, not engage in warrantless searches, not break into homes, try to get agents
[18:27] to identify themselves and the reasons they're arresting people, some pretty foundational things.
[18:33] But those compromises fell apart because again and again, the president said, no,
[18:37] he did not want to cut a deal with Democrats. At points, Stephanie, Republican leaders grew
[18:42] actually very frustrated in the Senate because they thought they had a deal. And so now facing the
[18:47] prospect that the White House is not going to make any of the concessions Democrats want,
[18:53] Republicans have said, fine, let's move to budget reconciliation. Let's cut Democrats out of the
[18:58] process and we'll pass it this way. Unfortunately, what that means is there's really no end in sight
[19:04] to some of the measures that we have seen Trump's immigration authorities undertake,
[19:09] unless the administration unilaterally decides it's going to step back from some of those aggressive
[19:14] measures. And there's certainly been a pause in recent weeks in some of the more outlandish actions
[19:20] from those authorities. This seems like the kind of frustration the American people have when they
[19:26] say our government just doesn't work for them. All right, gentlemen, I know I say this often,
[19:30] but I truly enjoyed this segment with all three of you. You make us smarter every time you're here.
[19:35] In general, welcome aboard again. When we come back, the AI boom may be boosting our economic growth
[19:41] and investors are loving that. But how long can it offset the actual economic pain
[19:47] our economy is enduring from the Iran war? And later, Elon Musk, the savior? I'm going to put a big
[19:53] question mark, not an exclamation point at the end of that. How the world's richest man is trying to
[19:57] sell himself to a jury as a pioneer of AI safety. When I look at that guy, I think he is a beacon of
[20:04] safety. The 11th hour just getting underway on a Thursday night. Look at your clock. You know what time
[20:19] it is. Money, power, politics. Iran talks have effectively stalled. You know that. And the
[20:24] straight of four moves is still under blockade. But you would never know it if you were looking
[20:28] at today's market action. The Dow soared at nearly 800 points while the S&P
[20:34] had its first close above 7200 and its best month in six years. Man, this guest is going to have a hard
[20:41] time explaining this because I don't get it. A clear message that investors are way more excited
[20:46] about earnings than they're worried about oil prices, which also hit a four year high today.
[20:51] New data also shows that the economy grew by two percent in the first three months of the year.
[20:55] That's good news. It is thanks largely due to spending and artificial intelligence. But here's
[21:01] the bad news. It is a huge blow to consumers because inflation jumped in a big way too. My dear friend,
[21:07] John Insana. John, can you believe it? Tonight is the night I make his big introduction and I call him
[21:15] John Insana. My dearest friend who I just want to say I'm thrilled every single time he's here.
[21:21] I've wanted this behind the scenes for such a long time because as you know, I truly care about
[21:26] covering the economy and it's not so easy to do when you don't work in a business network. But now,
[21:31] my dearest friend, my partner in crime, Ron Insana is now an MSNOW contributor. I'm thrilled about it.
[21:39] And he's also a publisher of The Message of the Markets on Substack. I can't believe I just did that.
[21:43] But I'm going to get my other guest name right. Neil Irwin, not Er, Neil Wynn. He is chief economic
[21:48] correspondent for Axios. Welcome aboard. I can't believe I just did that. In fact, before the show,
[21:53] I'm like, we should cut when I introduce Ron for social media because this is going to be a great
[21:57] moment for us. And then I ruined it. Stacey, thank you so much. You're welcome. You know,
[22:01] luckily that is my sister's name. Can you please explain these markets? Sure. I mean, look,
[22:06] we had very strong earnings from Google's parent alphabet. We had a positive response to Amazon's
[22:11] numbers. We had, as you said, the economic data that showed the economy still expanding at a
[22:15] reasonable clip. Although, again, Heather Long, an economist, points out that about one and a half
[22:19] percentage points of that 2% growth came from AI infrastructure build out and consumer spending
[22:25] slowed down as inflation accelerated. So we also had jobless claims, by the way, dropped to the lowest
[22:30] level since 1969. So the job market doesn't look quite as bad as we thought, at least by this measure.
[22:36] And so the market took solace in that. And again, as you said, looking past the war in Iran
[22:43] and the oil price increase and focusing on the build out of AI and its promise.
[22:47] Irvin Nealwynn, tell us, if the Iran war continues, if the strait remains locked,
[22:54] what is going to have a bigger impact on the economy? AI or high gas prices?
[23:00] For the U.S., AI seems to be dominant. Look, what we have happening now with oil prices is
[23:05] the biggest direct effects are not in the U.S. They're in Asia. They're in Europe that rely more
[23:10] on imported Middle Eastern oil. In the U.S., we are a net oil exporter. Look, higher energy prices,
[23:17] higher gas prices, they hurt. They hit people. These are what we're seeing so far is not the kind
[23:22] of destructive prices we saw in 2008, even 2022. And the AI build out in terms of GDP and markets is
[23:30] huge. It's massive. The thing is, you can't eat GDP. So for ordinary Americans trying to pay their
[23:36] bills, you know, get to the grocery store, GDP growth doesn't really matter as much as wage
[23:41] growth and inflation. And that's where the pinch really hits. Did someone say in our ear that he
[23:47] could eat GDP? I mean, you can't eat GDP. You're in trouble, Ron, because this is your first time
[23:51] you're here as a contributor. And right now, Neil gave a better answer than you did. So here we go.
[23:56] We're going down this road again. You know, I like to. It seems obviously like everyone is betting on
[24:01] AI for good reason. But what would things look like if it doesn't live up to the hype?
[24:06] Well, just this year alone, there's $700 billion worth of spending going into artificial intelligence
[24:11] infrastructure, which is an enormous, unprecedented build out for technology. So if this were not to
[24:19] live up to its promise, what you would see down the road, and it's not immediate, Steph,
[24:22] you know that at some juncture, if an open AI, an Anthropic, a Google, a Microsoft doesn't derive
[24:29] enough revenue and profitability from this, Amazon eating through its free cash flow, by the way,
[24:34] at this point in time, to fund a lot of this stuff, you'd see reduced profitability. You'd probably see
[24:39] some companies run into trouble. And the stock market would then react to that major disappointment
[24:43] of AI not living up to the hype and the promise that's being told to us today.
[24:48] Neil, let's be fuddy-duddies and talk about the national debt, which now exceeds 100% of the GDP.
[24:56] Donald Trump definitively ran on reducing this number, yet here we are halfway through his second
[25:01] term and our national debt is close to breaking an 80-year record. I remember seeing Scott Besson
[25:08] before Trump won at an event practically foaming at the mouth, saying he was desperate to support Donald
[25:16] Trump. He wanted to be part of the administration for this specific reason, our crippling debt.
[25:21] Now here we are.
[25:23] Yeah, look, 100% debt to GDP. The number itself doesn't matter. It's not that there's some magic
[25:28] threshold that trips some crisis. But it does tell you where we're going. And what matters is that
[25:34] it's not getting any better. It's on an upward path. We're running deficits of 67% of GDP a year.
[25:40] We're growing only at 2% to 3% a year, if we're lucky. And so that's not a good equation. And that
[25:45] is, you know, the old line is if something can't go on forever, it won't. That's where we are with
[25:49] U.S. deficits and debt.
[25:52] Ron, I got a new topic.
[25:53] Yeah.
[25:54] Because I want you to explain this to our audience. Today the president signed an executive order
[25:58] that expands retirement account access, right, 401ks for workers that don't have employer-sponsored
[26:04] plans, right? They don't work at a big company. What do we need to know? Because on some level,
[26:09] is this good for the American people or is it good for the money managers of the world that provide
[26:17] those accounts?
[26:17] Yeah, both. I mean, look, I think there are somewhere in the neighborhood of 56 to 60 million people who do
[26:21] not have access to that. Now, the thresholds for putting $2,000 a year away are pretty low. I mean,
[26:26] the income caps are around $30,000, $35,000 for a married couple, $20,000 for a single individual.
[26:33] So it's hard to save $2,000 a year and have a government match.
[26:36] I was going to say, people in that income bracket aren't contributing to a 401k.
[26:39] It's good that the availability is there and they should put away as much as they possibly can.
[26:43] This is also, by the way, an extension of a Biden-era program that was started in 2022
[26:47] that it's being linked to. So this is not brand new. This is an extension of a program that's already
[26:53] on the books that was supposed to start in 2027 anyway. So it does expand the field a little bit.
[26:58] But again, for those people in that income bracket, it's not the easiest thing to do,
[27:02] particularly given persistent inflation, high gasoline prices, food care, food cost, child care,
[27:08] and health care. Yeah.
[27:09] All right, Neil, before we go, I have to ask you about Live Golf.
[27:13] Saudi Arabia is officially pulling funding from its Upstart League, a league that just a few years ago
[27:18] seem to have an unlimited budget and desire to sort of infiltrate U.S. golf, leaving their star
[27:25] players in the lurch. What's your take? Look, if something's a vanity project, not based in kind
[27:32] of real economics of demand from end consumers, it's vulnerable when things turn rough. And the
[27:38] Saudi government and Saudi investment fund is in a difficult situation right now with the Iran war.
[27:44] It's understandable. They might want to cut back on things. That's the risk you take if you sign
[27:49] on to somebody else's vanity project. And that seems to be what's happened here for some of these
[27:52] golfers who are part of that. Sorry, boys. Neil, thank you. Ron, bad news. Now that you're signed
[27:58] on to work with us. I have to stay. We're going to make you stay. Double duty for Ron tonight. When we
[28:02] come back, Elon Musk paints himself as a guardian of AI safety in his trial against OpenAI. One of the
[28:09] reporters who is in the courtroom today joins us after the break. Pollution is holding on for a
[28:23] hero. And apparently that hero is Elon Musk, at least according to his attorneys in the OpenAI trial.
[28:29] The SpaceX founder has been portraying himself as a pioneer of AI safety. It is an issue Musk has
[28:36] discussed in the past, even warning of potential human extinction if the technology falls into the
[28:41] wrong hands. But when the trial judge told Musk's attorneys not to discuss catastrophe and extinction,
[28:47] it resulted in a fiery exchange before the judge finally said, quote,
[28:52] I suspect that there are a number of people who do not want to put the future of humanity in Mr.
[28:57] Musk's hands, but we're not going to get into that. Joining me now, Paresh Duvet, senior writer for
[29:03] Wired and Ron and Sana still here. Okay, Paresh, you were in the courtroom. That's a treat. That is a
[29:10] courtroom I would love to be sitting in. That was a fiery exchange. Walk us through it. Your biggest
[29:15] takeaways. What was it like in there? I mean, a courtroom equalizes everybody.
[29:21] Well, honestly, the edge came off a little bit today. The last two days,
[29:25] Musk and Altman both spent a lot of time in the courtroom. Today, they probably spent more time
[29:32] away from the courtroom than they did in the courtroom. So it was definitely a different vibe.
[29:37] And it was Musk's last bit of testimony or expected to be his last bit of testimony. So he was
[29:43] trying to make a case to the jury. It was his last stand in some ways. And he kept repeating this
[29:48] phrase that Musk and Greg Brockman, Open AI as president and Open AI in general, are trying to
[29:54] steal a charity and that's not okay. And he kept using this phrase, steal a charity. And that's
[30:00] really the message he was trying to deliver. And then it got, you know, a little bit less tense
[30:06] after Musk was off the stand. Okay, but here's what's hard for me to understand with the whole
[30:11] stealing a charity. Elon Musk is arguing that Open AI, a company that he helped launch,
[30:16] abandoned its principles when it became a for-profit company. I would buy that except for the fact
[30:22] that Elon Musk now has his own AI company that is also for-profit. And part of the discussion in the
[30:29] trial was involving emails that went back and forth between Altman and his top executive
[30:35] and Mr. Musk. And Mr. Musk asking for 55% of Open AI and possibly taking it public at some juncture
[30:42] in the future. So it seems like there's some dissembling going on, which is a difficult thing
[30:46] and a dangerous thing to do on the stand, as one might surmise. But we don't really know what his
[30:52] true motivations are here because originally, at least the Altman team is arguing that he wanted it to
[30:57] be public, that he wanted control of it. And the reason he left was they were not going to give him
[31:01] control. Okay, but if Elon Musk succeeds and Open AI is forced to unwind its move to become a
[31:07] for-profit company, could that not have massive consequences, not just for Open AI, but for the
[31:13] industry? And then in turn, the market? I don't know if I want to say the economy, but it's almost
[31:20] in a too-big-to-fail scenario. Well, they've pledged to spend over a trillion dollars.
[31:23] A trillion with a T. Did you hear that? AI infrastructure. Now, as a not-for-profit
[31:29] or non-profit, you can still earn money and finance that. But one of the things that's
[31:34] interesting is Open AI projected that by 2030, it would earn a billion dollars in advertising.
[31:39] I'm sorry, $100 billion in advertising. And so the whole model gets called into question. Can
[31:45] they then finance this build-out of AI infrastructure that they are committed to,
[31:49] that other companies are investing in with them over time? That would be a big disappointment
[31:54] if they were not to make good on the promises that they've offered out so far.
[31:57] Paresh, the trial is continuing on Monday. I'm guessing you're going to be there. What are you
[32:01] watching for? Well, Greg Brockman is one of the folks that's expected to testify.
[32:08] You know, there's a diary entry that's very sensitive that could come up. There's also a lot of
[32:15] questions to be asked about, you know, what was that founding agreement? Elon Musk was repeatedly
[32:23] asked by Open AI's lawyers today about, did he attach any conditions to his roughly $38 million
[32:30] in donations to Open AI? And it's clear he didn't attach any stipulations, no terms and conditions.
[32:39] They were free to use the money. There was no restrictions on them restructuring or veering
[32:45] towards the direction that they have. And that's tough for Musk's argument with the jury that there
[32:51] was this charitable trust that existed that was breached. And, you know, they're going to be
[32:56] leaning on Greg and some of the things that he wrote back in 2015, 2016, to potentially show that
[33:04] there was this agreement that the path forward was to stay a nonprofit, to be open source and not to
[33:13] be like Google, which is what Open AI has turned out to be. And explain this diary entry. We're not
[33:19] talking about a 16-year-old dear diary. I hope Brad asks me to prom. What is this? No, this is Greg
[33:26] Brockman sort of leaving notes to himself about, you know, the relationship with Elon and the goals of
[33:35] Open AI. Does it surprise you, Ron, that this would go to trial? Does it surprise you that these two men,
[33:42] I mean, the world knows that they hate one another, that they would be doing this?
[33:46] Well, yeah. I mean, Elon Musk is about to become a trillionaire this year. He's got his own, as you
[33:50] said, point out, his own AI company. SpaceX is going public shortly. He's got a lot on his plate,
[33:57] including trying to get people to Mars. So I don't know what they're quibbling over,
[34:01] except maybe the philosophical dispute as to whether or not Open AI should be a, you know,
[34:06] nonprofit company that is an open source firm that shares its information, not only credibly,
[34:13] but safely with the rest of the world. That was one of Musk's arguments, is to keep this stuff safe
[34:17] and out of the wrong hands. Now, everybody's doing it. So we're kind of past the point of no return.
[34:22] I'm not quite sure, including Elon Musk. I'm not quite sure what the complaint is exactly.
[34:26] And, Parash, why do you think they're doing this? Again, Elon Musk on track to become a
[34:31] trillionaire. Clearly, his plate is full, yet they want to air all their dirty laundry,
[34:35] as well as some embarrassing stuff. Like, usually, giant public figures before you get to trial,
[34:41] before you get to discovery are like, let me just put this thing away. I don't need it. I don't want
[34:45] it. They're different. Yeah. I mean, one of the things that came up today was this video
[34:51] of Elon Musk's deposition in this trial. And there's a moment where he's kind of stretching awkwardly,
[34:57] really frustrated with the line of questioning. You know, you didn't get to see it at home because
[35:04] this trial isn't broadcast. But I mean, that's like an awkward moment. And I'm sure OpenAI may
[35:09] have tried to deliberately play that. You know, they're trying to embarrass Elon just as much as
[35:15] Elon is trying to embarrass Altman. But I think that's part of it. I mean, there's egos at play
[35:20] here. That is significant. But I think Elon just wants to send a message, and he has the resources to do it.
[35:27] My goodness. All right, gentlemen, thank you. We are not in the courtroom, but we are certainly
[35:31] interested. When we come back, seriously, stay up for this one. If you need to go get a drink,
[35:36] go to the bathroom, fine. Don't go to bed. You want to see this. How the Supreme Court's latest
[35:40] ruling on voting rights could fuel an era of endless redistricting wars. The race to the bottom
[35:46] is only getting hotter. Joyce Vance is going to break it down. Please care about this. Tonight,
[35:59] we need to talk about gerrymandering, which is just a fancy word for when politicians pick their voters
[36:04] instead of voters picking their representatives. Almost immediately after the Supreme Court gutted
[36:10] part of the Voting Rights Act yesterday, Republican-led states started talking about redrawing
[36:15] their own voting maps. Early voting for Louisiana House primaries was set to begin this weekend,
[36:20] but now state leaders are going to push that back so they can draw more Republican-friendly maps.
[36:25] And now there's already talk of new maps in the state of Georgia, too. Speaker Mike Johnson
[36:30] is all in for this. In fact, he thinks states should get it done before the midterms. Surprise,
[36:36] surprise. Meanwhile, House Minority Leader Hakeem Jeffries is already looking at more potential
[36:40] Democratic gerrymandering targets in response. All of this makes me say, yuck. Former U.S. Attorney
[36:46] Joyce Vance, who spent 25 years as a federal prosecutor, joins us. Joyce, this is so distressing.
[36:53] With this decision, has the Supreme Court sent us into this awful cycle of constant gerrymandering
[36:59] wars, which I'm going to just say is like the worst of us?
[37:04] It's such a race to the bottom, but the Supreme Court gave Republicans this path forward,
[37:10] and Republicans seized the moment. Florida didn't wait a single day to vote, right? In Florida,
[37:16] the legislature seized Clay by the horns and voted yesterday that they would take advantage of the
[37:24] partisan advantage that it offered them in the upcoming elections. And the reality stuff is we're
[37:31] now going to have states where Black voters are 30, 40 percent of the electorate. And there are,
[37:37] of course, white Democrats like me in deep Southern states who would add to their, you know,
[37:42] to the sort of majorities that they might hope to pull in some districts. But now they'll be limited
[37:48] in many states to one. Some states are even saying no Black opportunity districts because they will
[37:54] spread out and thin the Black vote across the state to make it theoretically impossible for them to
[38:00] elect any candidates of their choice. Choice, this is only going to increase polarization in the
[38:06] country. Do you think that's going to inspire voters to get out and vote more? Are they going to stay
[38:12] home because they feel like these races are decided for them with these new maps?
[38:17] Well, I think you've asked exactly the right question. Something that voters need to keep in
[38:22] mind is that no one would try this hard to take their vote away from them unless the person doing
[38:28] the taking understood how powerful it was. And turnout is always the key to every election. That's,
[38:35] you know, that's one of the truisms of these operations. The reality is in this election,
[38:41] the razor thin sort of voting majorities that these new maps will leave in some districts
[38:48] could be overtaken if there's enough turnout. So if Trump angers voters, if voters are heavily
[38:56] motivated to go to the polls, if they vote in unprecedented numbers, it's possible to overcome
[39:03] these gerrymanders. Interestingly enough, there was a similar situation in Hungary where the former
[39:10] leader Orban had managed to gerrymander in some parts of that country. Massive turnout takes away
[39:17] the advantage that gerrymandering creates. After the Supreme Court decision, how hard is it going to
[39:23] be for anybody to challenge voting maps in court? Right. So it becomes virtually impossible because
[39:31] Justice Alito, in his majority opinion, the court splits along partisan lines. It's a 6-3 decision.
[39:38] And he says that the court will not permit the use of racial considerations to draw electoral maps.
[39:47] That, of course, is nonsense, right? Because we're talking about remediating historical discrimination
[39:53] against Black voters. But now the court has said that can't be considered in any way. It used to be that
[40:02] you could use discriminatory impact in these Section 2 of the Voting Rights Act cases to invalidate maps.
[40:10] But now the only thing that lawyers will be able to do is to prove intent, racially discriminatory
[40:17] intent, which is very difficult to prove. It sometimes happens. It's not ordinary. And even where the lawyers
[40:24] can show that, there will be other hurdles they would still have to clear, making it functionally impossible
[40:30] to win these cases. New topic. Just before we go, I don't have a ton of time left, but I just want to
[40:36] hit this. My colleague, Carol Lenning, is reporting that the Seashells case for the 86-47 case against
[40:44] James Comey has been around for a while. It has been on the back burner at the DOJ. But once Pam Bondi
[40:49] was fired and Todd Blanch was in charge, he decided he needed to win Trump's approval to get the permanent
[40:55] gig. This case is helping him gain steam. What's your reaction?
[41:01] Carol's reporting is always dead on the money. It's apparent to everyone who's watching DOJ that
[41:07] Todd Blanch is auditioning for the nomination to be the permanent attorney general. And we know that
[41:13] Jim Comey has been living rent-free in Donald Trump's head for all of these years. No better way for
[41:20] Todd Blanch to try to score the nomination than to indict Jim Comey in this particular moment.
[41:28] Aye, aye, aye. Well, we'll be watching. Again, Jim Comey's wife must be like, seriously, dude,
[41:33] you might be right, but read a book on the beach instead. Nobody needs this.
[41:37] Thank you so much, Joyce. We'll be right back.
[41:40] Thanks, Steph.