1 00:00:00,640 --> 00:00:03,840 Speaker 1: Michael, you don't have to lie to your friends, I mean, Goober's. 2 00:00:04,320 --> 00:00:06,080 Speaker 1: You don't really want to know how my day was 3 00:00:06,120 --> 00:00:08,520 Speaker 1: the other day that made me just really need to 4 00:00:08,920 --> 00:00:10,680 Speaker 1: kick back and relax and drink some wine. 5 00:00:11,000 --> 00:00:11,840 Speaker 2: Okay, maybe you do. 6 00:00:12,760 --> 00:00:15,720 Speaker 1: So we do this fantastic hockey tournament pond Hockey in 7 00:00:15,760 --> 00:00:19,960 Speaker 1: Georgetown on the Georgetown Lagoon, and thousands of people came 8 00:00:20,000 --> 00:00:22,080 Speaker 1: to drink and eat and play hockey and have fun. 9 00:00:22,160 --> 00:00:25,560 Speaker 1: And I just worked a little bit too hard, so thanks. 10 00:00:25,880 --> 00:00:33,240 Speaker 2: Anyways, she took a puck to the forehead. 11 00:00:35,440 --> 00:00:44,680 Speaker 3: After drinking five bottles of moonshine up in Georgetown. That's 12 00:00:44,680 --> 00:00:48,640 Speaker 3: what was going on. Let's talk about what happened in Colorado, 13 00:00:49,360 --> 00:00:53,800 Speaker 3: because I think it's one of the most clarifying economic 14 00:00:54,680 --> 00:00:58,720 Speaker 3: and political stories this date has produced in years, and 15 00:00:58,760 --> 00:01:01,600 Speaker 3: the people that are most responsible for it are the 16 00:01:01,600 --> 00:01:04,520 Speaker 3: ones that are least likely to admit it and weave 17 00:01:04,520 --> 00:01:07,360 Speaker 3: about the receipts because well, he was on air just 18 00:01:07,400 --> 00:01:10,720 Speaker 3: about an hour ago and putched around about it and 19 00:01:10,720 --> 00:01:14,240 Speaker 3: didn't really answer the question about Well, we'll get that 20 00:01:14,240 --> 00:01:16,919 Speaker 3: in just a minute now. If you don't know volunteer, 21 00:01:17,240 --> 00:01:22,200 Speaker 3: here's the quick version. Volunteer is an artificial intelligence and 22 00:01:22,319 --> 00:01:26,200 Speaker 3: data analytics company. It was found back in founded back 23 00:01:26,240 --> 00:01:28,959 Speaker 3: in two thousand and three by billionaire Peter Teal and 24 00:01:29,160 --> 00:01:33,160 Speaker 3: seat the current CEO Alex cart. The name comes from 25 00:01:33,160 --> 00:01:36,319 Speaker 3: the Lord of the Rings the seeing stones used to 26 00:01:36,360 --> 00:01:39,800 Speaker 3: gather intel and surveill enemies, which tells you something about 27 00:01:40,120 --> 00:01:44,960 Speaker 3: the founder's self awareness and their sense of mission. Volunteer 28 00:01:45,120 --> 00:01:51,800 Speaker 3: builds software platforms that take massive, complex data sets. They 29 00:01:51,840 --> 00:01:58,600 Speaker 3: apply artificial intelligence to help large organizations make incredibly high 30 00:01:58,600 --> 00:02:04,600 Speaker 3: stakes decisions in real time. Their biggest client the United 31 00:02:04,640 --> 00:02:11,600 Speaker 3: States government. That would include the Department of Defense, the Pentagon, Ice, 32 00:02:11,760 --> 00:02:17,440 Speaker 3: Immigrations and Customs Enforcement, the Treasury Department, the intelligence community. 33 00:02:18,520 --> 00:02:22,839 Speaker 3: These are the people that keep American soldiers alive, they 34 00:02:22,919 --> 00:02:29,000 Speaker 3: track terrorists, and yes, they enforce immigration law. Volunteer bills 35 00:02:29,000 --> 00:02:32,079 Speaker 3: the tools that make all of that possible, but at scale, 36 00:02:32,760 --> 00:02:35,360 Speaker 3: at scale that no one else has been able to replicate. 37 00:02:37,000 --> 00:02:45,400 Speaker 3: As of Tuesday, they are Colorado's former largest publicly traded company. 38 00:02:46,240 --> 00:02:51,600 Speaker 3: Three hundred and twelve billion dollars in market cap gone 39 00:02:51,880 --> 00:02:57,800 Speaker 3: gone In eight words on x formerly Twitter quote, we 40 00:02:57,960 --> 00:03:01,160 Speaker 3: have moved our headquarters to Miami, Florida. 41 00:03:01,440 --> 00:03:04,880 Speaker 2: Close quote that's it. That's it. 42 00:03:05,680 --> 00:03:08,800 Speaker 3: No press release, I want, I want. I'm only laughing 43 00:03:08,840 --> 00:03:12,359 Speaker 3: because if if I wanted to get out of Dodge, 44 00:03:12,840 --> 00:03:16,440 Speaker 3: particularly where Dodge wasn't treating me, well, that's exactly what 45 00:03:16,480 --> 00:03:20,639 Speaker 3: I would do too. No press release, no ceremony, no 46 00:03:20,760 --> 00:03:26,880 Speaker 3: farewell tour. Just a tweet and a simultaneous securities and 47 00:03:26,960 --> 00:03:31,480 Speaker 3: exchange commission and your report filing with a Miami address 48 00:03:31,520 --> 00:03:36,600 Speaker 3: and the sound of a door closing on Colorado's tech economy. 49 00:03:37,520 --> 00:03:40,080 Speaker 3: Governor Polis, whom you may or may not have heard 50 00:03:40,160 --> 00:03:45,160 Speaker 3: in the last hour, found out from the tweet, just 51 00:03:45,200 --> 00:03:49,080 Speaker 3: like everybody else. Now. Polus, to his credit, and I 52 00:03:49,120 --> 00:03:52,680 Speaker 3: say that, with great difficulty, didn't try to spend This 53 00:03:52,760 --> 00:03:55,800 Speaker 3: is good news, he said, and I think I'm quoting directly, 54 00:03:55,800 --> 00:03:57,840 Speaker 3: but well here in just a second, he says that 55 00:03:57,880 --> 00:04:00,400 Speaker 3: he was not notified. I don't know of what the 56 00:04:00,400 --> 00:04:03,760 Speaker 3: announcement means. And he expressed hope that it wouldn't affect 57 00:04:04,240 --> 00:04:07,280 Speaker 3: the somewhere between five and six hundred Colorados that are 58 00:04:07,280 --> 00:04:08,880 Speaker 3: currently employed by Pellanteer. 59 00:04:09,520 --> 00:04:10,480 Speaker 2: And he announced that he. 60 00:04:10,440 --> 00:04:14,600 Speaker 3: Had requested a meeting with companies company executives, and he 61 00:04:14,720 --> 00:04:16,440 Speaker 3: said something to this effect. 62 00:04:16,360 --> 00:04:18,600 Speaker 4: Well, you know, it's a somewhat mysterious. 63 00:04:18,080 --> 00:04:20,320 Speaker 2: Company and this move is quite mysterious as well. 64 00:04:20,360 --> 00:04:22,479 Speaker 4: So I have reached out yesterday right after I heard it. 65 00:04:22,520 --> 00:04:24,880 Speaker 4: I said, let's get a you know, do a call 66 00:04:24,920 --> 00:04:26,760 Speaker 4: with the CEO if I know what's going on, and 67 00:04:26,839 --> 00:04:28,599 Speaker 4: I hope I get that scheduled the next few days. 68 00:04:28,640 --> 00:04:30,640 Speaker 4: I'm very interested. Does it affect any of the employees 69 00:04:30,680 --> 00:04:33,080 Speaker 4: in Colorado, doesn't affect their lease here all those kinds 70 00:04:33,080 --> 00:04:36,040 Speaker 4: of things, or is it just domicile of their headquarters. 71 00:04:36,080 --> 00:04:38,279 Speaker 2: We don't have any of that information yet, and. 72 00:04:38,400 --> 00:04:41,599 Speaker 4: They haven't reached out, so I'm hopeful that we'll be consuming 73 00:04:41,640 --> 00:04:43,039 Speaker 4: scheduled here in the next week. 74 00:04:44,839 --> 00:04:48,760 Speaker 3: And they haven't reached out. Noay, Sherlock, did you expect 75 00:04:48,760 --> 00:04:51,240 Speaker 3: them to call you? Why in the hell do you 76 00:04:51,279 --> 00:04:52,280 Speaker 3: would you expect that? 77 00:04:53,160 --> 00:04:57,160 Speaker 2: Why? I requested a meeting with a company executive. 78 00:04:57,279 --> 00:04:59,760 Speaker 3: Yeah, a meeting, A meeting with a company that has 79 00:04:59,800 --> 00:05:04,239 Speaker 3: all already filed their change of address. They went Peter Teal. 80 00:05:04,800 --> 00:05:06,200 Speaker 3: You know, I just happened to see at the post 81 00:05:06,240 --> 00:05:08,919 Speaker 3: office yesterday. Peter Deal was at the post office filling 82 00:05:08,960 --> 00:05:12,039 Speaker 3: out that ups forum, you know, change of address. He 83 00:05:12,240 --> 00:05:15,159 Speaker 3: was down there while I guess PARP was up in 84 00:05:15,400 --> 00:05:17,960 Speaker 3: DC filing the change of address with the Securities and 85 00:05:18,000 --> 00:05:20,599 Speaker 3: Exchange Commission. I just they forgot to go up to Boulder, 86 00:05:21,000 --> 00:05:23,000 Speaker 3: or think I got to go to the Governor's mansion. Governor, 87 00:05:23,040 --> 00:05:27,320 Speaker 3: with all due respect, what exactly is the agenda. 88 00:05:27,200 --> 00:05:29,200 Speaker 2: For that meeting that you're trying to get? 89 00:05:29,720 --> 00:05:32,480 Speaker 3: Are you going to ask them to unfile their annual report? 90 00:05:33,000 --> 00:05:35,680 Speaker 3: Are you going to say, hey, listen, we'll try to 91 00:05:35,720 --> 00:05:39,159 Speaker 3: do better, kind of like you know that Instagram account. 92 00:05:39,400 --> 00:05:41,960 Speaker 3: Do better, Denver, do better Colorado. That's what we're going 93 00:05:42,000 --> 00:05:45,440 Speaker 3: to try to do. Because here's what doing better would 94 00:05:45,520 --> 00:05:49,039 Speaker 3: actually require, and I think it's worth spelling it out. 95 00:05:50,080 --> 00:05:52,440 Speaker 3: Volunteer didn't just lead because the weather was bad. It's 96 00:05:52,480 --> 00:05:54,800 Speaker 3: been really windy lately, so Valenteer thought to themselves, Hey, 97 00:05:54,880 --> 00:05:55,880 Speaker 3: let's just let's get. 98 00:05:55,720 --> 00:05:56,440 Speaker 2: Out of Dodge. 99 00:05:56,800 --> 00:05:59,640 Speaker 3: Though, in a moment of almost poetic irony, their SEC 100 00:05:59,800 --> 00:06:06,080 Speaker 3: filing does note that Denver's wildfires, the draft, the heat waves, 101 00:06:06,600 --> 00:06:11,160 Speaker 3: air quality problems posed by post some operational risk. That's 102 00:06:11,200 --> 00:06:14,240 Speaker 3: in a legal document filed with the Securities and Exchange Commission. 103 00:06:15,720 --> 00:06:18,920 Speaker 3: They told the SEC that Colorado's business climate was well 104 00:06:19,000 --> 00:06:23,680 Speaker 3: bad for business but that's the footnote. I think the 105 00:06:23,680 --> 00:06:27,200 Speaker 3: headline is deeper than that, and I'm quite I'm quite 106 00:06:27,240 --> 00:06:31,039 Speaker 3: surprised that the government didn't bring it up. The Colorado 107 00:06:31,120 --> 00:06:38,040 Speaker 3: Artificial Intelligence Act, your Pollup Bureau, governor your minions, passed 108 00:06:38,040 --> 00:06:41,200 Speaker 3: the law requiring AI companies to comply with a sweeping 109 00:06:41,320 --> 00:06:46,279 Speaker 3: new regulatory regime about around what they call quote, high 110 00:06:46,400 --> 00:06:53,440 Speaker 3: risk AI systems. Businesses must protect against algorithmic discrimination and 111 00:06:53,520 --> 00:06:59,720 Speaker 3: notify consumers when AI influences decisions about employment, finance, or healthcare. 112 00:07:00,320 --> 00:07:05,520 Speaker 3: Now volunteer builds exactly the kind of AI systems that 113 00:07:05,600 --> 00:07:10,000 Speaker 3: this law was designed to scrutinize, and in their SEC 114 00:07:10,080 --> 00:07:14,120 Speaker 3: filing they said, in very plain English that compliance with 115 00:07:14,240 --> 00:07:21,480 Speaker 3: those obligations quote may be difficult, onerous, and costly, and 116 00:07:21,560 --> 00:07:25,400 Speaker 3: could adversely affect our business. I'm done here, let's go home. 117 00:07:26,720 --> 00:07:33,480 Speaker 3: I'm done anything else. Let me translate that from corporate 118 00:07:34,360 --> 00:07:38,560 Speaker 3: SEC legal speak into plain English. Colorado, you made it 119 00:07:38,560 --> 00:07:41,120 Speaker 3: more expensive and more legally risky to be an AI 120 00:07:41,240 --> 00:07:44,880 Speaker 3: company in Colorado, and the most prominent AI company in 121 00:07:44,920 --> 00:07:50,080 Speaker 3: Colorado responded by ceasing to be an AI company in Colorado. 122 00:07:50,360 --> 00:07:54,600 Speaker 3: This is not complicated, Governor, this is cause and effect. 123 00:07:55,040 --> 00:07:58,320 Speaker 3: This is a policy producing exactly the result any first 124 00:07:58,400 --> 00:08:02,280 Speaker 3: year economic student would have wed, except apparently the people 125 00:08:02,280 --> 00:08:04,960 Speaker 3: who wrote the policy and the governor who signed the bill. 126 00:08:05,000 --> 00:08:06,560 Speaker 3: But wait, wait, hang on. 127 00:08:08,280 --> 00:08:10,560 Speaker 2: The A law. The AI law. 128 00:08:11,920 --> 00:08:16,320 Speaker 3: Doesn't truly fully explain it either, because the problems started 129 00:08:16,440 --> 00:08:20,160 Speaker 3: long before that bill was signed. Since Pallanteer moved to 130 00:08:20,200 --> 00:08:23,920 Speaker 3: Denver from Silicon Valley back in twenty twenty, the company 131 00:08:23,920 --> 00:08:28,200 Speaker 3: has been subjected to a sustained organized campaign of protest. 132 00:08:28,760 --> 00:08:32,800 Speaker 3: Protesters marched on their downtown headquarters last June. They rallied 133 00:08:32,800 --> 00:08:36,640 Speaker 3: outside their Cherry Creek offices in January. Their protests targeted 134 00:08:36,679 --> 00:08:40,760 Speaker 3: Pallateer's contracts with ICE, which by the way, amount to 135 00:08:40,760 --> 00:08:45,480 Speaker 3: tools that give immigration enforcement near real time visibility into 136 00:08:45,559 --> 00:08:51,120 Speaker 3: deportation operations. And the companies work with the Israeli defense forces. 137 00:08:51,559 --> 00:08:54,800 Speaker 3: Oh no, they worked with the Jews. Uh oh, they 138 00:08:54,840 --> 00:08:59,000 Speaker 3: worked with the Jews. The idea of so the activists 139 00:08:59,040 --> 00:09:01,240 Speaker 3: in the stupid stuf who won a volunteer to walk 140 00:09:01,280 --> 00:09:03,840 Speaker 3: away from those contracts, and Pollateer didn't do it. So 141 00:09:03,960 --> 00:09:06,560 Speaker 3: the protesters just kept coming, in coming and coming and coming. 142 00:09:06,679 --> 00:09:09,600 Speaker 3: Now here's the part the activists need to hear because 143 00:09:09,600 --> 00:09:11,560 Speaker 3: they're celebrating this week like they've won something. 144 00:09:12,360 --> 00:09:14,439 Speaker 2: They didn't. They didn't win anything. 145 00:09:15,120 --> 00:09:19,000 Speaker 3: Volunteer's US government revenue grew fifty five percent last year 146 00:09:19,040 --> 00:09:22,120 Speaker 3: to one point eight five billion dollars. Their most recent 147 00:09:22,320 --> 00:09:25,360 Speaker 3: quarterly revenue hit one point four to one billion. That's 148 00:09:25,440 --> 00:09:28,840 Speaker 3: up seventy percent year over year. Their twenty twenty six 149 00:09:28,920 --> 00:09:34,040 Speaker 3: revenue target is seven point two billion dollars. The CEO 150 00:09:34,720 --> 00:09:38,360 Speaker 3: Alextart wrote to share sharehold Kart this week wrote to 151 00:09:38,400 --> 00:09:42,360 Speaker 3: shareholders that this growth was a cosmic reward for their work. 152 00:09:42,960 --> 00:09:45,880 Speaker 3: So the stock picked up when the move was announced. 153 00:09:46,480 --> 00:09:49,760 Speaker 3: But the process didn't stop Pollunteer from doing a single 154 00:09:49,840 --> 00:09:54,520 Speaker 3: thing the protesters objected to. They didn't cancel a single 155 00:09:54,559 --> 00:09:58,839 Speaker 3: ice contract, they didn't abandon a single Defense Department engagement. 156 00:09:59,320 --> 00:10:02,680 Speaker 3: All those pro test accomplished. The only tangible measure out 157 00:10:02,720 --> 00:10:06,520 Speaker 3: measurable outcome was making them for an uncomfortable place for 158 00:10:07,240 --> 00:10:10,320 Speaker 3: headquarters for a company that was never going to change 159 00:10:10,360 --> 00:10:15,120 Speaker 3: its mission. So Volunteer found a more comfortable place and 160 00:10:15,320 --> 00:10:17,640 Speaker 3: five hundred collars radeals are now wondering if their jobs 161 00:10:17,640 --> 00:10:18,120 Speaker 3: are going to go. 162 00:10:18,120 --> 00:10:19,760 Speaker 2: With it or not. I don't know whether they are 163 00:10:19,800 --> 00:10:21,559 Speaker 2: or not. I don't know. 164 00:10:22,760 --> 00:10:26,960 Speaker 3: This is the entirety of what progressive protest policies and 165 00:10:27,160 --> 00:10:31,640 Speaker 3: progressive politics produced here, not accountability, not change, not justice, 166 00:10:31,679 --> 00:10:34,000 Speaker 3: however they wanted to find it, just an empty office 167 00:10:34,000 --> 00:10:37,480 Speaker 3: down in Cherry Creek, a depleted tax base, and a 168 00:10:37,520 --> 00:10:41,720 Speaker 3: new Miami address and an SEC Finally, and Miami, Florida, 169 00:10:41,720 --> 00:10:44,400 Speaker 3: the state has no income tax, by the way, that 170 00:10:44,480 --> 00:10:47,800 Speaker 3: has been aggressively courting exactly this kind of company that 171 00:10:47,880 --> 00:10:50,680 Speaker 3: has built a political and cultural environment where a defense 172 00:10:50,760 --> 00:10:54,040 Speaker 3: contractor can do its work without being treated like a 173 00:10:54,160 --> 00:10:55,280 Speaker 3: stupid war criminal. 174 00:10:55,880 --> 00:10:56,760 Speaker 2: Miami's thrilled. 175 00:10:57,880 --> 00:11:02,240 Speaker 3: The former mayor posted four exclamation points on X. That's 176 00:11:02,280 --> 00:11:05,520 Speaker 3: a man who knows that he just won something real 177 00:11:05,600 --> 00:11:11,440 Speaker 3: and something big. Peter Thiel, Volunteer's chairman. He's had a 178 00:11:11,480 --> 00:11:15,200 Speaker 3: Miami mansion since I think twenty nineteen, twenty twenty or so. 179 00:11:15,760 --> 00:11:18,800 Speaker 3: His venture capital firms had a Miami office since twenty 180 00:11:18,840 --> 00:11:21,880 Speaker 3: twenty one. He moved his voter registration to Florida in 181 00:11:21,920 --> 00:11:25,760 Speaker 3: twenty twenty four. His investment firm opened a man Miami 182 00:11:25,800 --> 00:11:28,920 Speaker 3: office in late last year. The man who's been voting 183 00:11:28,920 --> 00:11:31,840 Speaker 3: with his feet for years and now the company headquarters 184 00:11:31,880 --> 00:11:34,520 Speaker 3: just caught up with him. But here's the broader context 185 00:11:34,559 --> 00:11:37,960 Speaker 3: that gives the story. I think some real weight volunteer's 186 00:11:38,000 --> 00:11:42,320 Speaker 3: not alone. Elon Musk moves Space X and X to Texas. 187 00:11:42,600 --> 00:11:46,480 Speaker 3: Ken Griffin moved Citadel to Miami. A pray of California 188 00:11:46,600 --> 00:11:50,160 Speaker 3: tech billionaires are buying Florida mansions as California floats the 189 00:11:50,200 --> 00:11:53,000 Speaker 3: idea of five percent wealth tax on residents worth over 190 00:11:53,040 --> 00:11:57,160 Speaker 3: a billion dollars. There is a migration underway, not of 191 00:11:57,280 --> 00:12:01,920 Speaker 3: ordinary people following job opportunities. There is a migration of capital, 192 00:12:02,200 --> 00:12:06,439 Speaker 3: a migration of talent, a migration of corporate headquarters following 193 00:12:06,480 --> 00:12:13,559 Speaker 3: something more fundamental, political and regulatory environments that treat business 194 00:12:13,960 --> 00:12:18,719 Speaker 3: as an asset rather than a liability. Let me just 195 00:12:18,800 --> 00:12:22,400 Speaker 3: can't let me just let me become a note in 196 00:12:22,480 --> 00:12:26,000 Speaker 3: my remarks in my notes, m make an asterisk in 197 00:12:26,040 --> 00:12:33,040 Speaker 3: my note. I heard the exchange between Ross and the 198 00:12:33,080 --> 00:12:37,200 Speaker 3: governor about the housing bill, that they're going to give 199 00:12:37,400 --> 00:12:41,640 Speaker 3: preferential treatment to school districts, or to nonprofits, or to 200 00:12:41,679 --> 00:12:44,160 Speaker 3: whatever it might be, so that they can they can 201 00:12:44,480 --> 00:12:48,280 Speaker 3: reduce the regulatory burden so that they can build more 202 00:12:48,320 --> 00:12:52,200 Speaker 3: affordable housing. And Ross asked, the right question, Well, that 203 00:12:52,280 --> 00:12:54,960 Speaker 3: seems to me to be a little unfair. Why aren't 204 00:12:55,000 --> 00:12:59,520 Speaker 3: you doing if you recognize that there is a heavy 205 00:12:59,640 --> 00:13:05,920 Speaker 3: regular Tory burden toward housing construction or building houses, then 206 00:13:06,080 --> 00:13:08,480 Speaker 3: why the hell aren't you doing it for everybody? Why 207 00:13:08,480 --> 00:13:10,480 Speaker 3: are you just doing it for the select few you're picking. 208 00:13:11,080 --> 00:13:13,280 Speaker 3: I'm putting words in Cross's mouth. I don't mean to 209 00:13:13,320 --> 00:13:17,520 Speaker 3: do that, but I'm saying you're picking governor, You're picking 210 00:13:17,520 --> 00:13:20,040 Speaker 3: winners and losers here, you and your menus of politic 211 00:13:20,040 --> 00:13:25,400 Speaker 3: bureau picking winners and losers. Just another example of what 212 00:13:25,440 --> 00:13:27,520 Speaker 3: I mean about this is the broader context of what's 213 00:13:27,559 --> 00:13:30,280 Speaker 3: going on in this state. Colorado used to be, in 214 00:13:30,480 --> 00:13:34,480 Speaker 3: CEO Alex Carp's own words from twenty twenty two quote, 215 00:13:34,679 --> 00:13:39,400 Speaker 3: a very sane and pleasant place compared to California. That 216 00:13:39,559 --> 00:13:42,400 Speaker 3: was the pitch, that was when they came here in 217 00:13:42,400 --> 00:13:46,600 Speaker 3: the first place. They left California's progressive, regulatory and cultural 218 00:13:46,720 --> 00:13:52,320 Speaker 3: environment for Colorado's supposedly pragmatic, moderate one, and in six 219 00:13:52,400 --> 00:13:56,520 Speaker 3: years Colorado managed to to recreate enough of what Pollunteer 220 00:13:56,640 --> 00:14:03,559 Speaker 3: fled that Pallanteer fled again. When are we gonna wake up? 221 00:14:04,120 --> 00:14:07,960 Speaker 3: We can joke about you know the Californication of Colorado. Oh, 222 00:14:08,040 --> 00:14:13,240 Speaker 3: that's that's old history. That's ancient history. We is California, kids, 223 00:14:13,400 --> 00:14:17,040 Speaker 3: We is California. And in six years Colorado managed to 224 00:14:17,200 --> 00:14:22,600 Speaker 3: recreate enough of what volunteer fled that they looked around 225 00:14:22,640 --> 00:14:25,960 Speaker 3: and said, where where are we are We still in California? 226 00:14:26,640 --> 00:14:29,320 Speaker 3: Why don't we look elsewhere? And Peter raised his hand. 227 00:14:30,000 --> 00:14:31,600 Speaker 3: I can just see you in alex in the meeting. 228 00:14:31,960 --> 00:14:33,920 Speaker 3: Peter raised his hand and said, well, you know what, 229 00:14:35,320 --> 00:14:37,640 Speaker 3: just kind of where I live. There's no income tax, 230 00:14:37,760 --> 00:14:40,680 Speaker 3: and they kind of want business and they don't put 231 00:14:40,760 --> 00:14:43,000 Speaker 3: up with a bunch of protesters. You know, you can 232 00:14:43,040 --> 00:14:44,440 Speaker 3: go protest all you want to, as long as you 233 00:14:44,480 --> 00:14:47,080 Speaker 3: do it legally, and we don't really care if you 234 00:14:47,120 --> 00:14:52,800 Speaker 3: have contracts with all the evil intel community. The Denver 235 00:14:52,840 --> 00:14:55,200 Speaker 3: Metro Chamber of Commerce was at least honest about what 236 00:14:55,240 --> 00:14:58,720 Speaker 3: this means in a way that the governor is, you know, 237 00:14:58,800 --> 00:15:03,240 Speaker 3: with his with is self imposed political constraints, simply could 238 00:15:03,280 --> 00:15:07,480 Speaker 3: not be their president said this move and others note 239 00:15:07,480 --> 00:15:11,000 Speaker 3: that word others. Along with Colorado's continued decline in the 240 00:15:11,040 --> 00:15:15,600 Speaker 3: economic competitiveness rankings, should serve as a wake up call 241 00:15:15,680 --> 00:15:19,800 Speaker 3: to policy makers that if we want a strong, robust economy, 242 00:15:20,040 --> 00:15:24,680 Speaker 3: we need to lower costs, stabilize our politics, and make 243 00:15:24,720 --> 00:15:28,120 Speaker 3: it easier for businesses of all shapes and sizes to 244 00:15:28,280 --> 00:15:35,640 Speaker 3: be successful. Here continued decline in economic competitiveness rankings. That's 245 00:15:35,680 --> 00:15:38,280 Speaker 3: the Chamber of Commerce speaking. That's not some right wing 246 00:15:38,440 --> 00:15:42,480 Speaker 3: think tank. That's the organization whose entire reason for existence 247 00:15:43,080 --> 00:15:46,160 Speaker 3: is ostensibly to make Denver a good place for business. 248 00:15:46,320 --> 00:15:50,000 Speaker 3: And they are telling you publicly that Colorado's in the 249 00:15:50,040 --> 00:15:54,840 Speaker 3: wrong trajectory. So you know if and when, and I 250 00:15:54,880 --> 00:15:57,280 Speaker 3: do emphasize if and when police ever. 251 00:15:57,160 --> 00:15:59,680 Speaker 2: Gets that meeting. If he gets that meeting, and I. 252 00:15:59,640 --> 00:16:01,880 Speaker 3: Give it a about even odds, the Palenteer even calls 253 00:16:01,960 --> 00:16:04,280 Speaker 3: him back. I mean, why would you? Why would you? 254 00:16:04,560 --> 00:16:07,560 Speaker 3: Here's what he should ask, not can we get you 255 00:16:07,600 --> 00:16:10,120 Speaker 3: to come back? Because you know what that ship is sailed, 256 00:16:10,400 --> 00:16:13,960 Speaker 3: it's actually docked and unloaded its cargo and adventure Florida. 257 00:16:14,520 --> 00:16:18,360 Speaker 3: The question the governor should ask is what would have 258 00:16:18,560 --> 00:16:23,120 Speaker 3: to be different for you to stay? And then if 259 00:16:23,200 --> 00:16:26,200 Speaker 3: Polus has any political courage whatsoever, which is a separate 260 00:16:26,280 --> 00:16:30,320 Speaker 3: question entirely, he should go do those things so that 261 00:16:30,440 --> 00:16:33,440 Speaker 3: the next three hundred billion dollar company that considers Colorado 262 00:16:33,720 --> 00:16:36,880 Speaker 3: doesn't make the same calculation the Palanteer just made. The 263 00:16:37,040 --> 00:16:42,400 Speaker 3: verdictier is not complicated. Colorado created a regulatory and a 264 00:16:42,440 --> 00:16:46,520 Speaker 3: cultural environment hostile to a defense and intel tech company, 265 00:16:46,680 --> 00:16:47,720 Speaker 3: and the company left. 266 00:16:48,080 --> 00:16:48,200 Speaker 4: Now. 267 00:16:48,200 --> 00:16:50,400 Speaker 2: I don't know about the jobs yet, but the. 268 00:16:50,360 --> 00:16:53,600 Speaker 3: Tax revenue, the corporate pestige, the talent ecosystem, all of 269 00:16:53,640 --> 00:16:56,000 Speaker 3: it is now asset of the state of Florida. Congratulations 270 00:16:56,040 --> 00:17:00,840 Speaker 3: Ron Desantus, Congratulations may Or, Congratulations Florida. Oh, by the way, 271 00:17:01,000 --> 00:17:04,040 Speaker 3: I'm sure the protesters are still protesting outside an office 272 00:17:04,040 --> 00:17:06,880 Speaker 3: that no longer houses the company that they're protesting. Yeah, 273 00:17:06,880 --> 00:17:11,760 Speaker 3: they're that stupid, and Polis is waiting for a phone 274 00:17:11,800 --> 00:17:15,160 Speaker 3: call that, if I had to guess, may never come. 275 00:17:16,200 --> 00:17:23,320 Speaker 3: Colorado got exactly what his policies asked for Florida, they 276 00:17:23,400 --> 00:17:28,480 Speaker 3: got everything else. Now when we get back, because I 277 00:17:28,600 --> 00:17:32,239 Speaker 3: threw it out there, the Colorado Artificial Intelligence Act, what 278 00:17:32,280 --> 00:17:36,680 Speaker 3: it is, what it does, and why Talenteer credited that 279 00:17:37,160 --> 00:17:38,359 Speaker 3: in an SEC filing. 280 00:17:38,960 --> 00:17:42,280 Speaker 2: Hey, Michael, did you just hear that last story? So 281 00:17:42,400 --> 00:17:46,880 Speaker 2: now we're starting to lose businesses to Florida. Isn't that amazing? 282 00:17:49,400 --> 00:17:49,600 Speaker 4: Wait? 283 00:17:49,760 --> 00:17:52,040 Speaker 2: When was that left. It was left prior to the 284 00:17:52,080 --> 00:17:55,280 Speaker 2: start of the show. Okay, okay, okay, all right, all right, 285 00:17:55,400 --> 00:17:58,440 Speaker 2: so she's not behind, she's right there with us. 286 00:17:58,600 --> 00:18:02,479 Speaker 3: I want to say, oh overslept like Ryan, what was that? 287 00:18:05,320 --> 00:18:06,119 Speaker 2: Woo. 288 00:18:07,400 --> 00:18:10,520 Speaker 3: Let's go to the cardif the Colorado Artificial Intelligence Act, 289 00:18:10,560 --> 00:18:15,040 Speaker 3: what it is, what it does, and why vallunteer sided 290 00:18:15,080 --> 00:18:19,000 Speaker 3: it in their SEC filing. On May seventeen, twenty twenty four, 291 00:18:19,680 --> 00:18:21,760 Speaker 3: Paul As signed into law Senate Bill twenty four too 292 00:18:21,800 --> 00:18:23,280 Speaker 3: oh five five, known. 293 00:18:23,160 --> 00:18:25,680 Speaker 2: As the Colorado Artificial Intelligence Act. 294 00:18:25,880 --> 00:18:28,679 Speaker 3: It made Colorado the second state to an act a 295 00:18:28,880 --> 00:18:33,960 Speaker 3: major AI so called consumer protection law. They marketed as 296 00:18:34,080 --> 00:18:38,120 Speaker 3: his history a groundbreaking national model. Yeah, if you want 297 00:18:38,160 --> 00:18:40,959 Speaker 3: to drive businesses that do AI out of your state, well, 298 00:18:41,000 --> 00:18:43,399 Speaker 3: they're right about one of those things. It was indeed historic. 299 00:18:43,480 --> 00:18:47,760 Speaker 3: It was historically bad for business. Now the law formally 300 00:18:47,760 --> 00:18:53,280 Speaker 3: titled You'll Love This an Act. Concern concerning consumer protections 301 00:18:53,320 --> 00:18:58,440 Speaker 3: for interactions with artificial intelligence has most often been compared 302 00:18:58,480 --> 00:19:01,800 Speaker 3: to the European Union's a I Act, although it is 303 00:19:02,000 --> 00:19:06,199 Speaker 3: less stringent and more narrowly drawn. The comparisons to the 304 00:19:06,240 --> 00:19:10,399 Speaker 3: EU Act is not a compliment. If you're talking about 305 00:19:10,400 --> 00:19:16,040 Speaker 3: free market circles free market markets. The EUAI Act is 306 00:19:16,040 --> 00:19:18,639 Speaker 3: widely considered one of the most aggressive compliance have a 307 00:19:18,760 --> 00:19:24,320 Speaker 3: TechEd regulatory frameworks ever enacted by a supposedly democratic government. 308 00:19:25,200 --> 00:19:28,000 Speaker 3: Here's what the law actually does in really plain terms, 309 00:19:28,400 --> 00:19:32,560 Speaker 3: trying to make this plain as day. Here's who it targets. 310 00:19:33,119 --> 00:19:36,240 Speaker 3: The law applies to two categories of actors, developers and 311 00:19:36,280 --> 00:19:41,439 Speaker 3: deployers of what it calls high risk AI systems. So 312 00:19:41,560 --> 00:19:45,480 Speaker 3: a high risk AI system is defined as any system that, 313 00:19:45,560 --> 00:19:49,720 Speaker 3: when deployed, makes or is a substantial factor in making 314 00:19:49,760 --> 00:19:55,240 Speaker 3: a consequential decision, one that has a material legal or 315 00:19:55,520 --> 00:20:00,480 Speaker 3: similarly significant effect on the provision or denial of education, employment, 316 00:20:00,760 --> 00:20:05,040 Speaker 3: financial services, housing, healthcare, or even legal services. So stop 317 00:20:05,119 --> 00:20:10,080 Speaker 3: right there, because that definition is doing an enormous amount 318 00:20:10,119 --> 00:20:14,359 Speaker 3: of work that you may not think about. Pallaunteer's core product, 319 00:20:14,560 --> 00:20:19,320 Speaker 3: Gotham is used by law enforcement and the intelligence agencies 320 00:20:19,720 --> 00:20:23,600 Speaker 3: to make exactly those kinds of decisions, which individuals are 321 00:20:23,600 --> 00:20:26,560 Speaker 3: we going to investigate, who gets flagged for deportation, what 322 00:20:26,760 --> 00:20:31,720 Speaker 3: threat assessments get elevated. Those are consequential decisions with material 323 00:20:31,800 --> 00:20:35,639 Speaker 3: legal effects on real people. So Pallanteer is, by the 324 00:20:35,760 --> 00:20:40,679 Speaker 3: very plain language of the law, almost textbook high risk AI. 325 00:20:41,720 --> 00:20:44,880 Speaker 3: But what does the law actually require. Let's go through 326 00:20:45,160 --> 00:20:48,800 Speaker 3: the obligations, because this is where you really understand why 327 00:20:48,840 --> 00:20:51,080 Speaker 3: a three hundred and twelve billion dollar company said enough 328 00:20:51,119 --> 00:20:57,960 Speaker 3: is enough for developers, which obviously pallaentteer is a developer 329 00:20:58,000 --> 00:21:02,119 Speaker 3: of a high risk AI system required to use reasonable care. 330 00:21:03,359 --> 00:21:07,159 Speaker 3: That is a legal term of art. That drives me 331 00:21:07,240 --> 00:21:13,760 Speaker 3: crazy because reasonable care is always either up to a 332 00:21:13,840 --> 00:21:17,399 Speaker 3: court or up to a jury. There are some you know, 333 00:21:17,640 --> 00:21:21,560 Speaker 3: general bookmarks or standards by which you would judge what 334 00:21:21,640 --> 00:21:25,399 Speaker 3: reasonable care is. But these AI companies are required to 335 00:21:25,520 --> 00:21:30,320 Speaker 3: use reasonable care to protect consumers from known or reasonably 336 00:21:30,400 --> 00:21:36,800 Speaker 3: foreseeable risks of algorithmic discrimination stemming from the intended and 337 00:21:36,960 --> 00:21:42,120 Speaker 3: contracted uses of a high high risk AI system. Now, 338 00:21:42,200 --> 00:21:47,080 Speaker 3: an algorithmic discrimination gets defined very broadly. It means any 339 00:21:47,080 --> 00:21:50,600 Speaker 3: condition in which the use of an AI system results 340 00:21:50,600 --> 00:21:55,320 Speaker 3: in unlawful differential treatment or an impact that disfavors an 341 00:21:55,440 --> 00:21:59,119 Speaker 3: individual or group on the basis of their actual or 342 00:21:59,160 --> 00:22:03,840 Speaker 3: perceived age, color, disability, ethnicity, genetic information, limited proficiency in 343 00:22:03,880 --> 00:22:07,600 Speaker 3: the English language, national origin, race, religion, reproductive health, sect 344 00:22:07,680 --> 00:22:12,520 Speaker 3: veteran status or other protected clarification. They'll read that carefully. 345 00:22:13,400 --> 00:22:20,359 Speaker 3: Pallaenteer's ICE tools are specifically designed to identify people based, 346 00:22:20,400 --> 00:22:25,080 Speaker 3: among other things, immigration status. Well, that is naturally going 347 00:22:25,119 --> 00:22:29,879 Speaker 3: to correlate with national origin and limited English proficiency, but 348 00:22:30,080 --> 00:22:34,280 Speaker 3: this law makes both of those protected categories. Every time 349 00:22:34,400 --> 00:22:40,720 Speaker 3: pallateers AI helped ICE identify a deportation target, that would, 350 00:22:40,760 --> 00:22:45,880 Speaker 3: at least in my opinion, potentially exposed pallunteer to an 351 00:22:45,960 --> 00:22:51,119 Speaker 3: algorithmic discrimination claim under Colorado's equal production laws. Not the constitution, 352 00:22:51,880 --> 00:22:55,800 Speaker 3: but there's statutory laws about treating everybody equally. Now, that 353 00:22:55,920 --> 00:22:59,480 Speaker 3: is not a theoretical risk. That is a lawsuit just 354 00:22:59,560 --> 00:23:03,840 Speaker 3: waiting to be filed by any illegal alien's plainness attorney 355 00:23:04,000 --> 00:23:07,080 Speaker 3: with a pulse and I don't know a grudge because 356 00:23:07,080 --> 00:23:11,280 Speaker 3: they got they got detected. And then there are all 357 00:23:11,359 --> 00:23:16,119 Speaker 3: these documentation and disclosure requirements. It's truly a burden. Developers 358 00:23:16,200 --> 00:23:22,200 Speaker 3: must make available to other developers extensive documentation, including harmful 359 00:23:22,280 --> 00:23:25,879 Speaker 3: or inappropriate uses of the high high risk AI system 360 00:23:26,320 --> 00:23:29,160 Speaker 3: some reason, the types of data used to train the system, 361 00:23:29,640 --> 00:23:33,480 Speaker 3: reasonably foreseeable limitations of the system, and all the risk 362 00:23:33,560 --> 00:23:37,240 Speaker 3: mitigation measures that they take, but they must also publish 363 00:23:37,320 --> 00:23:40,720 Speaker 3: information on their website about the types of high risk 364 00:23:40,800 --> 00:23:44,080 Speaker 3: AI systems they develop and how they manage risks of 365 00:23:44,200 --> 00:23:46,200 Speaker 3: so called algorithmic discrimination. 366 00:23:46,520 --> 00:23:47,679 Speaker 2: Now, think about what that. 367 00:23:47,600 --> 00:23:55,080 Speaker 3: Means for the intelligence community. Pallunteer's Gotham platform is used 368 00:23:55,080 --> 00:23:58,440 Speaker 3: by the United States military and the intelligence community. So 369 00:23:58,480 --> 00:24:06,160 Speaker 3: the data sources, it's training methodologies, it's no limitations. Going 370 00:24:06,200 --> 00:24:11,159 Speaker 3: back to my time in the intel community, those are 371 00:24:11,200 --> 00:24:15,240 Speaker 3: in many cases classified. So Colorado law was demanding that 372 00:24:15,280 --> 00:24:20,679 Speaker 3: a national security contractor published sensitive operational details on a 373 00:24:20,760 --> 00:24:24,679 Speaker 3: public website. The law included a carve out for trade 374 00:24:24,720 --> 00:24:29,639 Speaker 3: secrets and security risks, but that carve out requires case 375 00:24:29,920 --> 00:24:36,520 Speaker 3: by case legal justification, which means lawyers, which means costs, 376 00:24:36,960 --> 00:24:43,320 Speaker 3: which means risks. And most lawyers hired to mitigate risk 377 00:24:43,800 --> 00:24:47,080 Speaker 3: are going to tighten everything down as tightly as they can, 378 00:24:47,160 --> 00:24:50,320 Speaker 3: which I would do too, but then that's going to 379 00:24:50,359 --> 00:24:54,840 Speaker 3: subject you to lawsuits because oh, you tighten screws too tight. 380 00:24:54,920 --> 00:24:57,639 Speaker 3: And then the developers they have to maintain all the 381 00:24:57,680 --> 00:25:00,800 Speaker 3: impact assessments, all the associated records for at least three 382 00:25:00,880 --> 00:25:04,600 Speaker 3: years following the final deployment of an high risk AI system, 383 00:25:05,280 --> 00:25:07,080 Speaker 3: and the Colorado Attorney. 384 00:25:06,680 --> 00:25:09,480 Speaker 2: General, according to the law, may. 385 00:25:09,359 --> 00:25:14,280 Speaker 3: Require the developer provides such impact assessments within ninety days 386 00:25:14,320 --> 00:25:18,440 Speaker 3: of a request. So the Attorney General, a politically appointed 387 00:25:18,520 --> 00:25:20,840 Speaker 3: or elected official whoever you know, however happens to be 388 00:25:20,880 --> 00:25:25,479 Speaker 3: in any particular situation, but let's be direct, is not 389 00:25:25,520 --> 00:25:28,160 Speaker 3: going to be friendly to a defense contract or doing 390 00:25:28,160 --> 00:25:31,320 Speaker 3: immigration enforcement work in a blue state. So the Attorney 391 00:25:31,400 --> 00:25:35,399 Speaker 3: General wiser would have the power to demand pallanteer's internal 392 00:25:35,480 --> 00:25:40,399 Speaker 3: AI impact assessments on demand within ninety days. That's an 393 00:25:40,640 --> 00:25:44,600 Speaker 3: enormous amount of leverage to hand over to a hostile 394 00:25:44,760 --> 00:25:48,920 Speaker 3: regulator because he needs the votes of all those protesters 395 00:25:49,040 --> 00:25:54,119 Speaker 3: to become the next governor. Oh, I think back to 396 00:25:55,160 --> 00:25:59,440 Speaker 3: even call me. I put a request in. Yeah, you're 397 00:25:59,440 --> 00:26:02,840 Speaker 3: a day lately dollar short governor. Then there's the annual 398 00:26:02,880 --> 00:26:06,040 Speaker 3: impact assessment. Under this law, we'll get to that and 399 00:26:06,400 --> 00:26:07,720 Speaker 3: I got time. Let me get through some of this. 400 00:26:08,320 --> 00:26:12,959 Speaker 3: Developers must perform what's called an impact assessment, and that 401 00:26:13,000 --> 00:26:16,640 Speaker 3: has to be reevaluated at least every year, and then 402 00:26:16,920 --> 00:26:20,360 Speaker 3: also within ninety days if you make any substantial modification 403 00:26:20,920 --> 00:26:25,640 Speaker 3: to the platform. So the assessment must include the system's purpose, 404 00:26:26,160 --> 00:26:30,320 Speaker 3: the intended use cases, all the known or foreseeable risks 405 00:26:30,320 --> 00:26:34,280 Speaker 3: of algorithmic discrimination, all the known limitations, all the data 406 00:26:34,280 --> 00:26:38,360 Speaker 3: inputs and outputs, and the performance metrics. So if you're 407 00:26:38,359 --> 00:26:43,240 Speaker 3: a palenteer that is constantly updating and modifying its platforms, 408 00:26:43,280 --> 00:26:48,000 Speaker 3: that's what you know. Every AI platform is constantly upgrading, 409 00:26:48,320 --> 00:26:55,639 Speaker 3: constantly changing. So that's a near perpetual compliance obligation. Every update, 410 00:26:56,240 --> 00:26:59,560 Speaker 3: I wouldn't even use the word significant. Every update triggers 411 00:26:59,560 --> 00:27:04,159 Speaker 3: a new nine day assessment clock. And the enforcement mechanism. 412 00:27:04,560 --> 00:27:10,359 Speaker 3: A violation of this Colorado Act constitutes an unfair or 413 00:27:10,359 --> 00:27:16,200 Speaker 3: deceptive trade practice under the Colorado Consumer Protection Act. What's 414 00:27:16,240 --> 00:27:22,040 Speaker 3: the translation of that? Every alleged violation is a separate 415 00:27:22,080 --> 00:27:27,800 Speaker 3: consumer protection lawsuit. So Colorado's Attorney General can bring enforcement 416 00:27:27,840 --> 00:27:32,920 Speaker 3: actions private plainness, in my opinion, have standing under this statute. 417 00:27:33,160 --> 00:27:39,199 Speaker 3: So the financial exposure is open ended. And here's the twist. 418 00:27:40,160 --> 00:27:43,159 Speaker 3: Paul assigned the law, then he watched to blow up 419 00:27:43,160 --> 00:27:47,440 Speaker 3: in his face. And here's where it gets almost Shakespearean 420 00:27:47,640 --> 00:27:52,480 Speaker 3: in its irony. Colorado's AI law has faced multiple setbacks. 421 00:27:52,520 --> 00:27:55,600 Speaker 3: Lawmakers passed a special session bill on Lugust twenty six 422 00:27:55,880 --> 00:27:59,439 Speaker 3: to delay the law's effective date five months to June 423 00:27:59,480 --> 00:28:03,680 Speaker 3: thirty of this year, allowing more time for the y'all 424 00:28:03,680 --> 00:28:07,199 Speaker 3: who's of the polit bureau to consider revisions to the 425 00:28:07,240 --> 00:28:11,280 Speaker 3: existing law. So here's the sequence of events, and we'll 426 00:28:11,280 --> 00:28:12,639 Speaker 3: walk through those sequences next. 427 00:28:12,920 --> 00:28:18,200 Speaker 5: Mike, my nephew from Kansas City, said he thought Colorado 428 00:28:18,320 --> 00:28:22,440 Speaker 5: was a purple state. I told him I saw nothing 429 00:28:22,520 --> 00:28:28,120 Speaker 5: but blue. But am I just being pessimistic? Is their 430 00:28:28,440 --> 00:28:33,120 Speaker 5: hope out there? Yeah, I'm not seeing it. 431 00:28:36,080 --> 00:28:36,639 Speaker 2: I'm not going to. 432 00:28:36,640 --> 00:28:39,120 Speaker 3: Say there's not hope because I've always believed there is 433 00:28:39,240 --> 00:28:41,400 Speaker 3: hope that I'm also realistic. 434 00:28:41,880 --> 00:28:43,720 Speaker 2: And what has. 435 00:28:43,720 --> 00:28:49,600 Speaker 3: Taken Polis, Gill and Striker visa the the blueprint to 436 00:28:49,760 --> 00:28:53,400 Speaker 3: turn this state solidly blue. It is not purple by 437 00:28:53,400 --> 00:28:57,480 Speaker 3: any stretch of the imagination. Is going to take as long, 438 00:28:58,560 --> 00:29:00,640 Speaker 3: maybe a little less, but that's it depends on how 439 00:29:00,680 --> 00:29:05,160 Speaker 3: bad things get. But to reverse the blueprint, and again, 440 00:29:05,880 --> 00:29:10,040 Speaker 3: Colorado is in the condition it is today because of 441 00:29:10,120 --> 00:29:16,920 Speaker 3: Tim Gill, Pat Striker and Jared Polis. They got exactly 442 00:29:16,960 --> 00:29:20,000 Speaker 3: what they wanted. And then for Polish to come on 443 00:29:20,600 --> 00:29:24,840 Speaker 3: to the program that precedes me and to say, well, 444 00:29:24,880 --> 00:29:26,800 Speaker 3: you know, I was as surprised as everybody else, and 445 00:29:27,040 --> 00:29:30,320 Speaker 3: I put in a phone call, really got what do 446 00:29:30,360 --> 00:29:34,440 Speaker 3: you expect to hear? I hope, I hope I know 447 00:29:34,520 --> 00:29:39,520 Speaker 3: Peter to I hope Peter gives you an earful although 448 00:29:39,520 --> 00:29:42,160 Speaker 3: it will make any difference, because this is exactly what 449 00:29:42,240 --> 00:29:46,720 Speaker 3: you want. Let's go back to this sequence. Polis signed 450 00:29:46,720 --> 00:29:50,000 Speaker 3: the law into effect of May twenty twenty four, and 451 00:29:50,200 --> 00:29:54,560 Speaker 3: the business community in this state erupted. The compliance requirements 452 00:29:54,560 --> 00:29:58,720 Speaker 3: were so broad, so burdensome, and so legally uncertain that 453 00:29:58,920 --> 00:30:02,400 Speaker 3: even Polis himse started to have second thoughts. So they 454 00:30:02,480 --> 00:30:05,560 Speaker 3: kicked the effective date from February one to June thirtieth 455 00:30:05,560 --> 00:30:07,280 Speaker 3: this year, trying to buy time to try. 456 00:30:07,120 --> 00:30:07,560 Speaker 2: To fix it. 457 00:30:07,760 --> 00:30:12,000 Speaker 3: But the damage was done because the existence of the law, 458 00:30:12,400 --> 00:30:15,040 Speaker 3: the uncertainty about what the final version might look like, 459 00:30:15,080 --> 00:30:17,640 Speaker 3: because we still don't even really know that, and the 460 00:30:17,680 --> 00:30:20,600 Speaker 3: knowledge that Colorado's Attorney General would have enforcement authority over 461 00:30:20,640 --> 00:30:25,760 Speaker 3: AI companies. That's baked into Palenteer's calculations. You don't have 462 00:30:25,760 --> 00:30:27,560 Speaker 3: to wait for a law to take effect to decide 463 00:30:27,560 --> 00:30:29,200 Speaker 3: that you don't want to be subject to that law. 464 00:30:30,120 --> 00:30:33,200 Speaker 3: It had been signed, the direction was set, the regulatory 465 00:30:33,280 --> 00:30:37,360 Speaker 3: environment had been established, and Pallenteer, which employs very good lawyers, 466 00:30:37,560 --> 00:30:41,440 Speaker 3: which files very detailed SEC disclosures, and which takes legal 467 00:30:41,520 --> 00:30:46,280 Speaker 3: risk very seriously, made a rational business decision that they 468 00:30:46,320 --> 00:30:49,360 Speaker 3: did not want to be the test case for Colorado's 469 00:30:49,400 --> 00:30:54,160 Speaker 3: AI enforcement regime. So Signaria and then Polis, who signed 470 00:30:54,200 --> 00:30:58,280 Speaker 3: the law, expressed surprise and disappointment at the largest AI 471 00:30:58,320 --> 00:31:01,240 Speaker 3: company in Colorado chose to lead Colorado rather than comply 472 00:31:01,360 --> 00:31:06,440 Speaker 3: with the AI law that he signed. What a disingenuous jerk, 473 00:31:06,520 --> 00:31:09,480 Speaker 3: But Jared Polis is this is. 474 00:31:09,400 --> 00:31:12,600 Speaker 2: A special, really special. 475 00:31:12,120 --> 00:31:16,240 Speaker 3: Kind of political cognitive dissonance. The man lit the building 476 00:31:16,280 --> 00:31:22,480 Speaker 3: on fire, then he acts on air what happened. I 477 00:31:22,560 --> 00:31:25,000 Speaker 3: think I put in a phone call to see what happened. 478 00:31:25,760 --> 00:31:31,720 Speaker 3: You can't, foolish governor, We know exactly what happened. Most 479 00:31:31,760 --> 00:31:36,240 Speaker 3: companies hit by this law are deployers. They buy AI 480 00:31:36,440 --> 00:31:38,960 Speaker 3: tools from someone else and they use them in their 481 00:31:39,080 --> 00:31:42,800 Speaker 3: HR decisions, They use them in loan approvals. They can 482 00:31:42,880 --> 00:31:47,480 Speaker 3: largely comply by documenting their processes, auditing for disparate impact, 483 00:31:47,760 --> 00:31:50,960 Speaker 3: and then adjust their models. Hey, yeah, it's annoying, it's 484 00:31:51,040 --> 00:31:55,840 Speaker 3: very expensive, but it is manageable. Pallenteers different for three reasons, 485 00:31:55,920 --> 00:32:00,560 Speaker 3: very different reasons. First, they are both developer and deployer. Second, 486 00:32:00,600 --> 00:32:03,840 Speaker 3: their consequential decisions involved national security. 487 00:32:04,440 --> 00:32:06,160 Speaker 2: We should have been proud to have them here. 488 00:32:06,880 --> 00:32:12,120 Speaker 3: And third, this so called algorithmic discrimination framework is almost 489 00:32:12,360 --> 00:32:17,840 Speaker 3: purpose built to attack their immigrations and customs enforcement work. 490 00:32:18,880 --> 00:32:21,280 Speaker 2: It's not a bug, it's not. 491 00:32:21,240 --> 00:32:24,520 Speaker 3: A bug in the law. For the people who wrote it, 492 00:32:24,520 --> 00:32:27,960 Speaker 3: it was a feature. But for Pallanteer it was an 493 00:32:28,080 --> 00:32:32,240 Speaker 3: existential legal exposure, and they said, we're out of here.