WEBVTT - The Death of Hyperloop One

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<v Speaker 1>Welcome to tech Stuff, a production from iHeartRadio. Hey there,

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<v Speaker 1>and welcome to tech Stuff. I'm your host, Jonathan Strickland.

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<v Speaker 1>I'm an executive producer with iHeart Podcasts and How the

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<v Speaker 1>Tech Are Yet. So I've been doing several episodes on

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<v Speaker 1>big news stories of twenty twenty three, and I think

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<v Speaker 1>you could make a strong case that this shouldn't count

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<v Speaker 1>among them. But it is the conclusion of a pretty

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<v Speaker 1>darn dramatic journey in tech, a journey that, fittingly enough

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<v Speaker 1>is about transportation and how a blue sky concept turned

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<v Speaker 1>out to be perhaps a bit too far into the clouds.

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<v Speaker 1>So we are talking about the end of the company

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<v Speaker 1>Hyperloop one. First, let's turn back the clocks a whole

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<v Speaker 1>decade to the spring of twenty thirteen. That's when Elon

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<v Speaker 1>Musk published a blog post that gave to tech about

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<v Speaker 1>something he had been hinting about for a while since

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<v Speaker 1>late twenty twelve at least, which was a new concept

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<v Speaker 1>for mass transit that could work within or between cities.

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<v Speaker 1>It involved an enclosed tube within which aluminum pods would

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<v Speaker 1>zip about at incredible speeds up to eight hundred miles

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<v Speaker 1>per hour or nearly one two hundred and ninety kilometers

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<v Speaker 1>per hour, and that this would transform travel between cities

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<v Speaker 1>that were too far apart to easily drive between, but

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<v Speaker 1>perhaps too close together to take a flight from one

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<v Speaker 1>to the other. So how would this all work well.

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<v Speaker 1>For one thing, the idea was to pump out most

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<v Speaker 1>of the air that was inside the tube. This would

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<v Speaker 1>help reduce wind resistance significantly. The pods would use what

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<v Speaker 1>were called air bearings. That is, they would use a

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<v Speaker 1>cushion of air to hover inside the tube, kind of

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<v Speaker 1>like an air hockey table works and powerful electro magnets

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<v Speaker 1>would provide the propulsive force to push, slash pull the

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<v Speaker 1>pods down the track. Passengers would sit in the pods.

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<v Speaker 1>They would accelerate up to top speed at a rate

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<v Speaker 1>that you know wouldn't turn them into soup, and similarly,

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<v Speaker 1>they would decelerate at a rate that would be gentle

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<v Speaker 1>as they neared their destination. Actually, Musk had a couple

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<v Speaker 1>of different variations on this idea so early on, he

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<v Speaker 1>suggested that these pods would have a pair of compressor fans,

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<v Speaker 1>one on the front and one on the back, And

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<v Speaker 1>the idea is that the ones in the front would

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<v Speaker 1>take the air ahead of the pod and transfer them

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<v Speaker 1>to the fans that are in the back, so it

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<v Speaker 1>goes behind the pod so that the pod doesn't have

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<v Speaker 1>to actually push through the air. I have no idea

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<v Speaker 1>how that would have worked at speed, but that was

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<v Speaker 1>the concept Musk outlined. Anyway. Musk estimated that would cost

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<v Speaker 1>around six billion dollars to build a track between Los

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<v Speaker 1>Angeles and San Francisco, and that a trip on this

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<v Speaker 1>hyper loop would take about half an hour to go

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<v Speaker 1>between those cities. If you were to drive that route,

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<v Speaker 1>it would take you nearly six hours to do so.

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<v Speaker 1>Musk's idea seemed to target cities that were just the

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<v Speaker 1>right distance apart, so that the trip would take you know,

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<v Speaker 1>a lot less time than it would driving, but it

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<v Speaker 1>would make more sense to take the hyperloop than it

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<v Speaker 1>would to take a flight. Musk was essentially telling the world, Hey,

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<v Speaker 1>wouldn't it be cool if we could do this? And yes,

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<v Speaker 1>it would be cool if we could do that. It'd

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<v Speaker 1>be cool if we could do a lot of things.

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<v Speaker 1>But he was really hoping that someone else would jump

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<v Speaker 1>in and try and actually do it. He said he

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<v Speaker 1>couldn't really afford to take time away from his other companies,

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<v Speaker 1>those being Tesla and SpaceX, and then spend that time

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<v Speaker 1>on the hyperloop concept. Apparently, transforming transportation is not worthy

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<v Speaker 1>of distraction, but running Twitter into the ground is. Sorry.

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<v Speaker 1>I can only go so long while talking about Musk

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<v Speaker 1>before I start getting snarky. Anyway, while Musk would dip

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<v Speaker 1>his toe a little bit in the field, he went

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<v Speaker 1>so far to launch the Boring Company, which at least

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<v Speaker 1>initially sounded like it was meant to dig tunnels that

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<v Speaker 1>would house hyper loop tubes. The real push was to

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<v Speaker 1>inspire other people to embrace the concept of hyperloop and

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<v Speaker 1>try to make their own version. One person who Musk

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<v Speaker 1>spoke with actually before publishing that blog post was an

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<v Speaker 1>investor named Shervin Pishevar. The two had talked about the

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<v Speaker 1>idea privately, and Pishevar repeatedly encouraged Musk to go public

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<v Speaker 1>with his concept, and once that happened, Pishevar founded a

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<v Speaker 1>company initially called Hyperloop Technologies. This was in late twenty fourteen.

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<v Speaker 1>One person whom Bishevar reached out to was a former

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<v Speaker 1>engineer for SpaceX named Brogan Bam Brogen and no, that

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<v Speaker 1>was not the name his parents gave him, but he

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<v Speaker 1>changed it after getting married, when he and his wife

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<v Speaker 1>sort of merged their names together, and I think that's

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<v Speaker 1>kind of sweet anyway, While engineers got to work trying

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<v Speaker 1>to figure out how to turn this hyper loop idea

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<v Speaker 1>into a practical reality. Pishevar helped secure funding through various

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<v Speaker 1>investment rounds and he did okay with that. He raised

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<v Speaker 1>tens of millions of dollars in the process. But this

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<v Speaker 1>was a very very expensive endeavor, right, tens of millions

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<v Speaker 1>doesn't go that far when you're talking about designing and

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<v Speaker 1>then building out a prototype of something that would be

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<v Speaker 1>a brand new transportation infrastructure. Now, the first couple of

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<v Speaker 1>years at Hyperloop Technologies were fairly quiet. The company was

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<v Speaker 1>hiring engineers and building test facilities and prototypes that kind

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<v Speaker 1>of thing. They built a test or started to build

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<v Speaker 1>a test track out in Nevada. Eventually they would complete that.

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<v Speaker 1>In twenty sixteen, the company actually changed its name from

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<v Speaker 1>Hyperloop Technologies to hyper Loop One. It also migrated away

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<v Speaker 1>from the air bearings design that Musk wrote about in

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<v Speaker 1>his blog, and instead they looked to a magnetic levitation design.

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<v Speaker 1>So maglev trains have been a thing for a while,

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<v Speaker 1>and it kind of made sense to reduce the number

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<v Speaker 1>of brand new technologies that you were going to rely

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<v Speaker 1>upon and replace some of them with tested and proven ones. Like,

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<v Speaker 1>if you're using all new technologies all down the line

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<v Speaker 1>in your very complex system, something's not going to go right.

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<v Speaker 1>So if you look at other companies in the hyperloop space,

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<v Speaker 1>you'll also find that most of them deviate to some

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<v Speaker 1>degree from the original proposal. Some of them deviate wildly

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<v Speaker 1>from the original concept of hyperloop anyway. By early twenty sixteen,

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<v Speaker 1>Bambrogen had been named Chief Technology Officer or CTO, and

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<v Speaker 1>a guy named Rob Lloyd was the CEO. But drama

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<v Speaker 1>was right around the corner. And you can't really take

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<v Speaker 1>corners with a hyperloop design because you need these really

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<v Speaker 1>like long, graceful curves to be able to change direction. Anyway,

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<v Speaker 1>the summer of twenty sixteen would see a real shakeup

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<v Speaker 1>at Hyperloop one. Bambrogen suddenly left the company. Now, the

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<v Speaker 1>official statement from hyper Loop one was that Bambrogen had

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<v Speaker 1>decided to take a step back, but Bambrogen himself would

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<v Speaker 1>contradict that statement, and he did so through a lawsuit.

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<v Speaker 1>He was also joined by three other employees who brought

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<v Speaker 1>charges against the company. Bambrogen accused top executives of hyper

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<v Speaker 1>Loop one of engaging in financial shenanigans and abuse. He

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<v Speaker 1>was essentially saying people were funneling money away from the

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<v Speaker 1>company for their own personal benefit. He also said that

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<v Speaker 1>he had been threatened physically by leaders at the company,

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<v Speaker 1>and he accused his co founder Pishevar of leveraging hyper

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<v Speaker 1>Loop one to essentially promote himself. So Bambrogen was saying

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<v Speaker 1>that executive leadership was more concerned about using the company

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<v Speaker 1>to upgrade their personal status rather than, you know, build

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<v Speaker 1>a new kind of transportation. The company countersued Bambrogen and

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<v Speaker 1>accused him of plotting to take over the company. His

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<v Speaker 1>whole thing was that he was going to over throw

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<v Speaker 1>leadership and take over because he wasn't satisfied with where

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<v Speaker 1>the company was going. And it all got very melodramatic,

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<v Speaker 1>but the parties settled out of court in late twenty sixteen.

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<v Speaker 1>Bambrogen went on to found another company called a Rivo

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<v Speaker 1>or a revo if you prefer Riivo. Ultimately, that company

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<v Speaker 1>had trouble securing funds and it shut down in twenty eighteen.

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<v Speaker 1>But anyway, let's get back to the hyper loop story.

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<v Speaker 1>So we're going back to twenty seventeen now, because Bambrogen

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<v Speaker 1>has left. He files his lawsuit, the company counter suites.

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<v Speaker 1>They all settle out of court. And now in twenty seventeen,

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<v Speaker 1>that's when Richard Branson's company, Virgin made a significant investment

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<v Speaker 1>in hyper Loop one, essentially acquiring the company. So the

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<v Speaker 1>company rebranded itself again and now called itself Virgin hyper

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<v Speaker 1>Loop one. Later in twenty seventeen, the company lost its

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<v Speaker 1>other co founder, that of Shervin Pishevar, the investor who

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<v Speaker 1>was really the driving force behind the company being founded

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<v Speaker 1>in the first place. So why was that, Well, the

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<v Speaker 1>reason for his departure was that multiple women had stepped

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<v Speaker 1>forward and accused him of sexual misconduct. Those were charges

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<v Speaker 1>that he denied, and he claimed it was actually part

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<v Speaker 1>of a coordinated smear campaign. True or not. He stepped

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<v Speaker 1>down from the company, or was told to step down.

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<v Speaker 1>He maintains it was his decision. Others said that he

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<v Speaker 1>had no decision in the matter. The board of directors

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<v Speaker 1>told him to resign, and Branson essentially took over Virgin

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<v Speaker 1>Hyperloop one. Now, while all this was going on, the

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<v Speaker 1>engineers at the company were still just trying to develop

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<v Speaker 1>the technology and hoping that hyperloop would remain solid around them.

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<v Speaker 1>Virgin hyper Loop one built a test track in Nevada,

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<v Speaker 1>as I said, and ran multiple tests of maglev technology.

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<v Speaker 1>In fact, in twenty twenty, the company even conducted its

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<v Speaker 1>first and only test with human passengers inside a pod

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<v Speaker 1>before they had all been unmanned tests. The test track

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<v Speaker 1>wasn't nearly long enough to push the pod to the

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<v Speaker 1>insane speeds that Musk had envisioned, but it still got

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<v Speaker 1>up to around one hundred miles per hour or you know,

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<v Speaker 1>like one hundred and sixty kilometers per hour, so still

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<v Speaker 1>really fast, just not fast enough to cut a trip

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<v Speaker 1>from you know, Los Angeles to San Francisco to just

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<v Speaker 1>thirty minutes. The company changed names again in twenty twenty.

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<v Speaker 1>It dropped the one from its name and it became

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<v Speaker 1>Virgin hyper Loop. And no, it would not be the

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<v Speaker 1>last time that the company would change names. Okay, we've

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<v Speaker 1>got some more drama to get through before we get

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<v Speaker 1>to that. I'm gonna reduce the drama here by taking

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<v Speaker 1>a break to thank our sponsors. Okay, we're back. We

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<v Speaker 1>just left off in twenty twenty with Virgin hyper Loop

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<v Speaker 1>one becoming Virgin hyper loop, and things went a little

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<v Speaker 1>quiet after that. You know, there was still work being

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<v Speaker 1>done at the company. There were still plans for tests,

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<v Speaker 1>there were still plans to deploy hyperop transportation around the

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<v Speaker 1>world in the future. In early twenty twenty two, the

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<v Speaker 1>company announced a major change in its focus. Rather than

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<v Speaker 1>building out a transportation system meant for human passengers, the

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<v Speaker 1>company said the new goal was to build a way

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<v Speaker 1>to transport cargo. Now, this was a pretty big blow

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<v Speaker 1>to the kind of utopian view of what hyper loop

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<v Speaker 1>was meant to be, but representatives of the company said

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<v Speaker 1>the change was due to how the pandemic affected travel,

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<v Speaker 1>as well as how it highlighted bottlenecks in the supply chain,

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<v Speaker 1>and arguably this move was an effort to address a

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<v Speaker 1>real world need. The supply chain was, without question a

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<v Speaker 1>delicate thing, and as we learned through the pandemic, a

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<v Speaker 1>small disruption in the supply chain could ripple out and

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<v Speaker 1>escalate into huge problems. Also, moving stuff around carries way

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<v Speaker 1>less risk than moving people around. With people, you have

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<v Speaker 1>all these troublesome regulations that you have to work within.

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<v Speaker 1>Just so you know, folks, don't get reduced to goo

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<v Speaker 1>as you try to get them from point A to

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<v Speaker 1>point B. Ideally, you don't want your cargo to become

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<v Speaker 1>goo either, but if it does, it's way less of

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<v Speaker 1>a headache than if you were moving people around. A

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<v Speaker 1>change in focus to cargo was seen as something that

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<v Speaker 1>would ease engineering and regulatory challenges and make the hyper

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<v Speaker 1>loop a more practical and potentially realizable goal. Late in

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<v Speaker 1>twenty twenty two, Virgin removed its branding from the company

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<v Speaker 1>and once again it became hyper Loop one and Branson

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<v Speaker 1>pretty much you got out of Hyperlop one at this point.

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<v Speaker 1>So if you're keeping track, here's how the name of

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<v Speaker 1>the company changed. It started as Hyperloop Technologies, then hyper

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<v Speaker 1>Loop one, then Virgin hyper Loop one, then Virgin hyper Loop,

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<v Speaker 1>then back to hyper Loop one. That's five names in

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<v Speaker 1>ten years, which kind of reminds me of how I

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<v Speaker 1>was hired in two thousand and seven, and I've had

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<v Speaker 1>five or six different corporate overlords while technically I was

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<v Speaker 1>still holding the same job, or at least I was

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<v Speaker 1>still on the same career. There's a ship of theseus

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<v Speaker 1>kind of thing going on here. Anyway, a few years ago,

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<v Speaker 1>the folks at Hyperloop one projected that there'd be working

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<v Speaker 1>hyperloops by twenty twenty or so. Obviously that didn't happen.

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<v Speaker 1>It didn't happen from hyper Loop one, it didn't happen

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<v Speaker 1>from any of the other dozen or so companies that

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<v Speaker 1>are trying to make the hyper loop idea work. And

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<v Speaker 1>since twenty twenty one, pretty much all the top brass

0:14:00.000 --> 0:14:03.360
<v Speaker 1>at hyper Loop one left the company. Like, by the

0:14:03.480 --> 0:14:05.960
<v Speaker 1>end of twenty twenty one, you didn't have anyone there

0:14:06.000 --> 0:14:10.680
<v Speaker 1>at the company who was a founder or original executive.

0:14:10.720 --> 0:14:14.440
<v Speaker 1>They had all left. The folks leading Hyperloop one by

0:14:14.440 --> 0:14:16.560
<v Speaker 1>the end of twenty twenty two were just not the

0:14:16.559 --> 0:14:19.480
<v Speaker 1>same people who founded or led the company in previous years.

0:14:19.880 --> 0:14:22.600
<v Speaker 1>It's really hard for any company to hold itself together

0:14:22.960 --> 0:14:27.000
<v Speaker 1>with that kind of massive shift in leadership. And keep

0:14:27.040 --> 0:14:29.080
<v Speaker 1>in mind, this was a startup that still was just

0:14:29.280 --> 0:14:34.160
<v Speaker 1>closing in on being a decade old. Ultimately, hyper Loop

0:14:34.200 --> 0:14:36.400
<v Speaker 1>one was not able to hold it together. The company

0:14:36.480 --> 0:14:39.480
<v Speaker 1>is now shutting down and its intellectual property will go

0:14:39.560 --> 0:14:42.280
<v Speaker 1>to its largest investor, which is a company out of

0:14:42.320 --> 0:14:48.239
<v Speaker 1>Dubai called DP World. The hyperloop company that was arguably

0:14:48.280 --> 0:14:51.600
<v Speaker 1>both the most famous and the most likely to achieve

0:14:51.680 --> 0:14:55.880
<v Speaker 1>Musk's vision has now called it quits. There are still

0:14:55.920 --> 0:14:59.680
<v Speaker 1>other hyper loop related companies out there that are still

0:14:59.680 --> 0:15:03.120
<v Speaker 1>working on these challenges. A couple of them have actually

0:15:03.320 --> 0:15:07.000
<v Speaker 1>drifted away from really anything resembling a hyper loop and

0:15:07.040 --> 0:15:11.680
<v Speaker 1>gone with more conventional forms of transportation, things like maglev

0:15:11.720 --> 0:15:14.720
<v Speaker 1>trains that aren't traveling in any sort of tunnel or

0:15:14.760 --> 0:15:18.560
<v Speaker 1>tube or anything like that. And you could make a

0:15:18.720 --> 0:15:21.720
<v Speaker 1>decent argument to say that it's too early to call

0:15:22.040 --> 0:15:25.840
<v Speaker 1>hyperloop well and truly dead, but it sure as heck

0:15:26.000 --> 0:15:30.440
<v Speaker 1>isn't doing great. Even Elon Musk has moved on. The

0:15:30.480 --> 0:15:33.320
<v Speaker 1>boring company is in the process of creating a network

0:15:33.320 --> 0:15:37.040
<v Speaker 1>of tunnels under Las Vegas, Nevada. But rather than using

0:15:37.200 --> 0:15:41.920
<v Speaker 1>pods to risk folks around, or even sleds that would

0:15:42.000 --> 0:15:44.840
<v Speaker 1>risk people who are sitting in their cars parked on

0:15:44.880 --> 0:15:47.840
<v Speaker 1>those sleds around, because that was an alternative, they said, well,

0:15:47.840 --> 0:15:50.200
<v Speaker 1>maybe we don't need to build the pods. Maybe we

0:15:50.360 --> 0:15:54.040
<v Speaker 1>just build sleds that can levitate above the surface of

0:15:54.080 --> 0:15:56.960
<v Speaker 1>the tube and people just sit in their cars, they'll

0:15:57.000 --> 0:15:59.840
<v Speaker 1>park on a little sled and get taken to wherever

0:15:59.840 --> 0:16:02.440
<v Speaker 1>they need to be, and that'll cut their transportation time.

0:16:02.880 --> 0:16:07.040
<v Speaker 1>That's not happening either. Instead, the tunnels that Musk is

0:16:07.120 --> 0:16:10.200
<v Speaker 1>digging under Las Vegas, it's really just a network of

0:16:10.320 --> 0:16:13.840
<v Speaker 1>underground roads and Tesla vehicles are just going to drive

0:16:13.880 --> 0:16:18.640
<v Speaker 1>around on those. This is not reinventing transportation. It's just

0:16:18.680 --> 0:16:22.480
<v Speaker 1>building more roads. And it definitely isn't mass transit because

0:16:22.480 --> 0:16:24.640
<v Speaker 1>the Tesla can only hold a few folks at a time.

0:16:25.000 --> 0:16:27.480
<v Speaker 1>A lot of people have argued that the Las Vegas

0:16:27.520 --> 0:16:30.320
<v Speaker 1>project is just a huge waste of time and resources,

0:16:30.720 --> 0:16:35.480
<v Speaker 1>that it's not actually addressing challenges in transportation. It's just gonna,

0:16:36.160 --> 0:16:39.880
<v Speaker 1>you know, make things worse because you're just adding more congestion.

0:16:39.960 --> 0:16:42.760
<v Speaker 1>It's just as happening under the city as opposed to

0:16:42.760 --> 0:16:45.120
<v Speaker 1>on city streets. But it's not going to make any

0:16:45.120 --> 0:16:48.960
<v Speaker 1>meaningful difference in the day to day experience that people

0:16:49.000 --> 0:16:52.040
<v Speaker 1>have while they're traveling through Las Vegas. And I think

0:16:52.040 --> 0:16:56.560
<v Speaker 1>there's some valid criticisms there because this really isn't anything

0:16:56.760 --> 0:17:01.040
<v Speaker 1>like the original vision that was pitched back in twenty thirteen.

0:17:01.680 --> 0:17:03.880
<v Speaker 1>So it seems like Musk himself has given up on

0:17:03.960 --> 0:17:07.399
<v Speaker 1>the dream. A lot of people have said that the

0:17:07.600 --> 0:17:11.640
<v Speaker 1>engineering challenges are far too great for us to meet

0:17:11.720 --> 0:17:16.399
<v Speaker 1>in a way that is financially practical, and that any

0:17:16.920 --> 0:17:20.040
<v Speaker 1>real effort to build one of these things, even if

0:17:20.080 --> 0:17:24.600
<v Speaker 1>it worked as designed, would be so prohibitively expensive that

0:17:24.680 --> 0:17:28.760
<v Speaker 1>doesn't make sense. Others have argued that it's inherently unsafe.

0:17:29.040 --> 0:17:33.040
<v Speaker 1>That if you have this enclosed tube structure and anything

0:17:33.119 --> 0:17:35.600
<v Speaker 1>happens to the tube. Let's say that there's some seismic

0:17:35.640 --> 0:17:40.800
<v Speaker 1>activity that shifts elevation along part of the route, what

0:17:41.040 --> 0:17:44.359
<v Speaker 1>happens to pods traveling at eight hundred miles per hour

0:17:44.800 --> 0:17:47.919
<v Speaker 1>down those tubes. That is a pretty scary thing to

0:17:47.920 --> 0:17:50.800
<v Speaker 1>think about. So a lot of folks have said that

0:17:50.880 --> 0:17:54.800
<v Speaker 1>this idea was never really doable, at least not in

0:17:54.840 --> 0:17:57.719
<v Speaker 1>the original concept, and that once you start to whittle

0:17:57.800 --> 0:18:00.200
<v Speaker 1>things away so that you can make it more practical, well,

0:18:01.080 --> 0:18:03.239
<v Speaker 1>the question remains, well, why are you doing this at all?

0:18:03.320 --> 0:18:06.880
<v Speaker 1>Why not just build a regular maglev train, something that

0:18:06.920 --> 0:18:09.920
<v Speaker 1>exists in lots of places around the world, And it's

0:18:09.960 --> 0:18:11.959
<v Speaker 1>hard to come up with an answer to that that

0:18:12.440 --> 0:18:16.160
<v Speaker 1>doesn't seem hokey. Anyway, I thought it was worth exploring

0:18:16.200 --> 0:18:18.879
<v Speaker 1>this story of this particular company just a bit. I

0:18:18.920 --> 0:18:21.840
<v Speaker 1>didn't have Hyperloop one biting the dust on my twenty

0:18:21.920 --> 0:18:24.840
<v Speaker 1>twenty three Bingo card. But then again, to be honest,

0:18:25.160 --> 0:18:27.280
<v Speaker 1>the reason for that is I haven't really thought about

0:18:27.320 --> 0:18:30.880
<v Speaker 1>the company in more than a year, so maybe that's

0:18:31.160 --> 0:18:35.119
<v Speaker 1>a good indicator as to why it called it quits

0:18:35.160 --> 0:18:39.679
<v Speaker 1>this year. Anyway, I thought that merited an episode of

0:18:39.720 --> 0:18:43.440
<v Speaker 1>its own. I hope you are all well, and I'll

0:18:43.440 --> 0:18:53.120
<v Speaker 1>talk to you again really soon. Tech Stuff is an

0:18:53.119 --> 0:18:58.240
<v Speaker 1>iHeartRadio production. For more podcasts from iHeartRadio, visit the iHeartRadio

0:18:58.359 --> 0:19:01.919
<v Speaker 1>app Apple Podcasts, wherever you listen to your favorite shows.