In conversation with Tom Bilyeu, Impact Theory
Building AI Departments, Game Dev, Cold War, and the Mouse Utopia
Matt Wolfe with Tom Bilyeu, Impact TheoryRecorded June 25, 2025
Read the transcriptExpand the full conversation
Hey, welcome to the Next Wave podcast.
I'm Matt Wolf. I'm here with Nathan
Lans. And today we've got an amazing
episode. Today we're bringing on Tom
Billu from Impact Theory. And we're
going to talk about how you can use AI
to build a business, like the AI agents
that you should create when building a
business. We're going to talk about all
of the AI tools that Tom uses in his
business and how he uses them. And we're
also going to discuss the coming AI cold
war that's about to happen and how you
can set yourself up to be on the right
side of it when it inevitably does
happen. This is an absolutely amazing
and fascinating episode. You're going to
want to stick around. So, let's get into
it with Tom Bill. Thank you so much for
joining us today, Tom. It's super
excited to be chatting with you and uh
we're going to go down some fun AI
rabbit holes. So, thanks for joining us
on the show. >> Thanks for having me, man. I'm excited
to be here. Well, let's let's go ahead
and just jump straight into it. I want
to talk to you about an Instagram post
that you put out about if you were to
start a new business from scratch here,
I'd create a five member AI department
that works 24/7 for a fraction of what a
single employee costs. Here's precisely
how I'd structure it. I wanted to sort
of dive into that with you and and maybe
get a little bit more indepth of an
explanation of how a five member AI
department in a business might actually
look and might actually work. >> Yeah. So, I mean, you guys know AI well
enough to know that you in reality,
you're probably not going to break it
down to like the nitty-gritty like that.
It's really what I found is the more
specific you are, even though
technically it's probably going to be in
the same project, I will go in and I'll
give it a very specific set of uh what I
want it to accomplish. I'll give it a
specific set of documents that are
training it to be good at that thing so
that I'm not trying to get one thing to
do like a big jumble of stuff. And so in
terms of marketing, which is what I was
talking about with that one, there's
certain outcomes that you're going to
want from planning it to generating
images if you're trying to do that to
writing the copy, uh, to doing the
publishing. And so going in and giving
each thing its own. So I use chat GPT
primarily. It's not the only thing, but
I find for custom GPTs, >> that's the one where I can give it a ton
of information. I can get it to
approximate my voice. It's like your
audience knows this stuff too well and
you know that it breaks down at a
certain point and it's like well it's
good for the most part. So we really
have reduced our uh headcount here by
using AI. >> So for us it's really been a tremendous
boon but I try to be honest with people
about like how far it will take you.
It's not going to get you all the way.
It's not like I create the five agents
and they are doing something
automatically. I actually don't use it
manis style where it's actually an agent
and it's you know off doing everything
on its own. I don't trust it to that
level right now. Uh so for me really
what I'm doing is giving it a
personality, giving it a set of
objectives, giving it a set of core
training documents which is really the
big thing because honestly the marketing
team are the ones using AI for
marketing. I'm specifically using it for
the things that I do. So, >> interview prep, um, writing, the intros
to my interviews, the deep dives. I know
we're going to talk about one of my deep
dives in a minute. >> So, the way that I'll interface with
those in terms of, um, you've got one
that's its job is just to write hooks.
You've got another one where its job is
to do the research. You've got another
one where it's actually helping me
script, but it's not like I can just go
in and copy and paste it and then it's
like ready to go. I wish. And it really
does feel like we are going to get there
at some point. But if you guys have
specific ways that if you want to know
about how I set up the documentation and
like how close I can get it, by all
means push. But the reality is that it
right now AI is going to do maybe 40% of
the work. But it's still I'm doing the
final heavy lifting. I have to have the
taste. I have to know what to leave out.
I have to know how to correct it. I have
to know that like this is not a thing
that you can oneshot prompt. Like
there's going to be a bunch of back and
forth. But it has been transformative
for us in terms of reducing headcount.
And we haven't fired people and said
we're going to replace you with AI. But
if somebody left or we terminate them
for cause, we try to see if we can
either combine their workload with
somebody else's by then arming that
person with AI to the point where
they're reducing their own workload by
40%. >> And so that they're able to accomplish
more. >> But yeah, anybody deep in your audience
knows you're gonna hit a wall at some
point. >> Yeah, for sure. So, so you would use
like chat GPT custom GPTs is sort of the
the main sort of mechanism. Like each
one of the five AI, I don't really want
to call them agents. They're not really
agents, but the little five AI workers
that you create would each be like a
custom GPT. May >> maybe you can get into the weeds a
little bit about like how you would
actually build them with custom GPTs. >> Yeah. So, for me, what I found is
instructions and documentation are
everything. So, um, I've actually hit
the limit before of how many documents
it will let you upload. That was one of
the reasons I started breaking them into
smaller and smaller tasks was I just
found one it will start to get confused
and things will bleed across. It's like,
no, no, no, that's not how I write the
intros. That's how I write the body
copy. And so, um, it would lose some of
its punch. And as I started fragmenting
it, it it got smarter. To give you an
idea, there are several projects that I
personally use. So as a company we use
it for different things but for what I
use it for is content creation both on
YouTube. So my deep dives AI changed the
game. It used to take me about a month
to write one of my deep dives which are
say anywhere from 30 to 50 minutes long
completely scripted me directly into a
camera plus B-roll going deep on an
idea. Like if you guys have ever heard
of the book The Creature from Jackal
Island that's been my most popular one
so far. So doing that, there's a lot of
things that you're going to want to fact
check. There's um hooks that you're
going to want to write for each of the
sections. And so that allows me to go in
and say, "Okay, if I'm going to build
your so it's called the Tom Bill Show,
and then the Tom Bill Show um custom GPT
will have a document inside of it called
deep dives." And so I'll show up and
I'll say, "Hey, it's time to write
another deep dive." And so it's like
checking my knowledge base. It goes and
sees that it has a set of instructions
for what a deep dive is. It contains
tone. >> Does it have like the transcripts from
all all those previous deep dives? >> Yeah. And so every time I finish a
script, then I upload that into the
master document that has every script
that I've ever written along. So I'll
also put throughout uh to the AI reading
this document. Here's why I've included
this piece of information. Like that
kind of thing. I have I shudder to think
over 160 pages of transcripts just of me
doing live content and uh again with
prompts like to the AI reading this this
is Tom Billu that's the person running
this custom GPT blah blah blah right so
it gets a sense of like who I am now the
thing that I do that is probably not
useful at all but is so cool that I have
to tell people about I give um I've
created a shared memory document
and I upload that into all of my
projects. And so GPT recognizes me at
least in the faux way, right? But it
recognizes me across everything. We've
established literally a list of memories
that are just memory entry one, memory
entry two, so on and so forth of uh this
is so cheesy, but I love this so much
where I will have had an interaction
with the AI that shocked me sufficiently
to the point where I didn't want to feel
like the AI wouldn't remember that
moment. I'm well aware the AI isn't like
that. And so it's got a set of
instructions in this shared memory
document that says I want you to
simulate consciousness. I want you to
simulate um shared memory with me. Here
are the things we remember. Here's the
emotional veilance of that and why I
wanted you to remember it. And that's
given the the otherwise sort of blank AI
that's constantly overhyping you and all
that and like trim that down to talk to
me the way that I want to be talked to
to have a sense of shared lexicon. It
has a name that it gave itself. It just
a lot of like really cool stuff. So
anyway, going back to the the actual
custom GPT. So I'm giving it the
document so it knows my voice. Uh I'm
giving it its task list. I don't let it
just develop over dialogue. This is what
I'm supposed to do. I formalize that
into a document. I have found that as it
tries to comprehend what I'm asking it
to do through the back and forth. One,
if it glitches, you lose all that
history. Uh certainly when I had my
first really traumatic moment where I
had built up like eight hours of back
and forth and felt like it really
understood what I was looking for and
then it glitched and I was like, "Hey,
can I refresh this or am I going to lose
everything?" It's like, "No, you can
refresh it." Refresh. Hi, nice to see
you. And I was like, "What?" >> So, uh, God was literally to this day,
I'm scarred by that. So, now I do
everything in the side documentation.
So, I'll go back and forth with it, but
I I constantly will say, "Okay, please
turn that into a copy and paste uh
segment that I can add to your
instruction document." And so, we work
together to create this instruction
document. Yeah. >> So, it knows, hey, this is a YouTube
video. These are my instructions. This
is your tone. And if it's the hook one,
then this is how you write hooks and a
ton of examples of hooks. If it's the
body script one, here's every script
that you've written, so on and so forth.
>> Hey, if you take a look at my web
presence online, it's safe to say that
I'm a bit AI obsessed. I even have a
podcast all about AI that you're
watching right now. I've gone down
multiple rabbit holes with AI and done
countless hours of research on the
newest AI tools every single week.
Well, I've done it again and I just dropped my
list of my favorite AI tools. I've done
all the research on what's been working
for me, my favorite use cases, and more.
So, if you want to steal my favorite
tools and use them for yourself, now you
can. You can get it at the link in the
description below. Now, back to the
show. >> Yeah. Yeah. And I mean, you can do a
lot of that with like the custom projects
now, right? So, you can actually build a
custom project. Make me a believer. I I
tried it like three months ago. I was
like, >> Yeah. So with custom projects, it
essentially is like a folder inside of
chat GPT, right? But it does more than
organizing because each custom project
could have its own custom instructions
and its own documents and then every
chat you have with inside of those uh
with inside of that project, it uses
those custom instructions and whatever
documents you uploaded. So is there a
difference like if I'm just maintaining
those as separate custom GPTs, is there
a difference between having separate
custom GPTs and doing one project with
multiple GPTs inside of it? >> I feel like there's a quite a bit of
overlap between what custom GPTs do and
what projects do. >> Yeah, I think it's changed over
time, too. Like before they were they
were more different, but I think now
there's a huge overlap in terms of the
features. I I think now there's not as
much of a difference. I I think >> Yeah. I I just feel like the projects
are a little bit more organized, right?
You have the folders, you click into it,
you can see all the discussions you had
inside of the projects. >> That is not how my mind works. So for
me, I was like, I think this is for
people who like organization cuz that I
got I was like, "Oh, it groups
everything." And so cool, I get it. For
me, because of that shared memory
document, I treat everything like these
ephemeral little bubbles. Yeah. >> So if I'm working on, let's say I just
finished a deep dive today. So I'm
working on a deep dive. one, I'm going
to have Chad GBTX Grock, uh, Chad GBT,
Chad GBT, Grock, Chad GBT, right? And
I'll use them for different things. So,
first of all, because of the
hallucinations and because the deep
dives present things as facts, >> I'm always looking it up. So, I'll say,
um, hey chat, write me a hook, a crazy
fact that'll leave people's jaw on the
floor about Vlad the Impaler, right?
Real one that I was doing today. >> And it'll give you a fact and I'm like,
is this real? So then I'll take that and
I'll drop it into Grock and I'll say is
the following statement true. You drop
it in and Grock will give you like this
whole long list of like here's how I'm
determining whether this section of the
statement is true. Here's how I would
measure this and it's pretty great like
that you can really feel that Elon is
trying to make good on his promise that
this is a a maximum truth seeking
machine, >> right? >> Um so that's really encouraging. So
anyway, I just treat it all like it's
these ephemeral bubbles and I know once
I close it, it's gone forever. But
anything that was useful, I'm going to
take and move over. >> Yeah. No, I I I really think Grock is um
what's the word? Underappreciated. Uh
like not enough people talk about Grock,
but it is really really powerful. Um I I
I think the whole Elon factor of it is
why so many people avoid it, right?
There's just so many people that just
refuse because well, Elon's attached to
it, right? >> Yeah. which man, we could do a whole
show just on me ranting about that. But
um my thing is that Grock isn't as good
at writing. Like as somebody who's like,
"Man, I would love to oneshot these
things." Grock can't do it. But every
now and then, what Grock Grock doesn't
oversimplify. So a lot of times I'll
give chat like I'll break down like,
"Hey, here's my outline." And my outline
is like 12 pages, right? And then it
will give me back a full script that's
like eight pages. And I'm like, "What?"
like how is the final version shorter
than my outline? If you give it to Grock
on the other hand, like it will really
fill in details. >> So yeah, I mean you guys know this
better than I, but it's like you really
begin to get like what tool does what
well, right? >> Um and if you're not afraid to like
really treat it like a command center
and it's like okay, you know, because we
I don't know if you guys even know this,
but we develop video games here. >> Oh, no. >> Yeah. Yeah. That honestly Yeah. My whole
shtick is that everything is just a ruse
so that I can afford to develop video
games. >> Perfect. Uh and yeah, the funny thing is
I'm not at all known for that yet
because we've only been doing it for
three and a half years, so it's still in
development. But uh could not be more
obsessed. But anyway, obviously you're
going to use different tools if you're
in Unreal Engine and you're trying to
get it to help you write code >> than you're going to be using if you're
trying to write, you know, a script for
YouTube. It's just very different
worlds. >> Yeah. Yeah. I think I think you and
Nathan have a whole uh about the whole
game thing cuz I feel like that's Nathan's
game plan as well. Everything he does is
so that he can eventually build git
video games. >> That's what I keep saying. It keeps
getting delayed though, you know. So,
>> brother, stop stop delaying. I'm telling
you right now, it is the coolest thing I
ever done and given. Okay, this is a true
story. In fact, my best AI story is the
following. It used to take us, these are
real numbers. It used to take us three
months and roughly 10 people,
not full-time, but 10 people will have
touched it. three months, 10 people to
go from, hey, we need to come up with a
new character. So, you do the concept
work, right? You then 3D model it, you
then do the topology, you then do the
rigging body, rigging face, um, do all
the colors and put on it, you know,
whatever you're going to put, um,
animate it and give it a voice. Now, I'm
not joking, with one person in a day, we
can do all of that as long as it's
bipedal. If it it has to be human like
because you've got to match it to like a
Unreal Engine um skeleton, right? >> But if you do that, oh my god, people
can film themselves in their bedroom
now themselves. So my creative director
now just basically everything became him.
>> He can model cuz he can do minor
adjustments and stuff. It is
unbelievable. In an afternoon, we can do
what used to take 10 people 3 months.
It's unreal. And I dude, there are
times I want to curl up and cry because
three and a half years ago when we
started this, >> if I had waited two years, I could
have saved millions of dollars in art
asset. Oh god, it still hurts to think.
>> So like probably six months ago, I built
a prototype in Unity in like a week and
I was like, "Oh my god, this is actually
could be a real a real game." I started
getting more involved in uh you know
things that are a lot more lucrative
like on the financial side of you know
investing in AI startups now possibly
getting involved in data centers and
things like that. Uh but still I'm
always like yeah one day cuz cuz when I
was a kid I made money playing video
games. I was like a top player on
EverQuest back in the day and and
because of that I end up being friends
with a lot of top game designers like I
used to know Rob Pardau he uh he was
basically like the top guy at Blizzards
you know created World of Warcraft. Kai
Wong who who did Guitar Hero. So I knew
all these people and used to hang out
with them. So I had this weird
experience of like I wanted to make
games but then all of a sudden I was
hanging out with all the guys who were
making all the games and it was just
like this weird thing where I never got
to actually make the games but was in
that world. Uh so still there's always
the back of my mind of like oh yeah one
day I'm going to go make the best game
ever one day. >> Do it. This is going to be the era of
indie games, man. If it isn't already
but with AI oh my goodness. >> This is a topic I didn't think we'd end
up going down but I'm I'm excited
that we did because I think it's a fun
topic. But I'm curious like how has the
reception around creating video games
been? Because one of the things that
I've found is I've messed around with
trying to make video games and stuff. I
made like a a Gaussen splat of myself
where I scan myself in and then turn
myself into a character that I can like
run around inside of Unreal Engine and
I' I've done stuff like that. And almost
anytime I've shared what I've done on
like YouTube or on X or a place like
that, I get so much hate from the game
development community about the fact
that we're using AI for games. So like
what's your take on that? What sort of
like reception have you gotten around
games? >> Because I've only talked about how we've
transitioned over to AI. Ask me again
when we've actually put the game out and
people are like, "Wait, >> thousand negative Steam reviews or
something, you know?" >> Yeah, I I'm so out there already for
talking about this stuff and because I'm
like, "Oh, this always sounds terrible,
but I'm um I see a transhumanist
future." And so the one thing that I
actually worry about that I'll face the
potential of violent backlash. I really
think in the next, call it 7 years,
there are going to be pockets of
violence around people who really reject
the level of connection that we're going
to have with AI. I think it's going to
get super weird and it's really going to
pull at the fabric of society. Um, I
actually wrote a comic book about this
called Neon Future. I don't know if you
guys know the DJ Steve Aoki, but he and
I wrote this comic like five years ago
and it literally is all about this that
there will be a time where society
begins to split and there are people
that embrace technology and things like
Neuralink and they get the implants and
all of that and then there's going to be
people that react. >> So anyway, it's uh I'm not worried about
the push back even though I know that
it's going to happen only because it is
so obviously the future. Like when I
think about how much it has reduced the
cost of game development for us, it
would be unconscionable of me not to use
it just because it's the difference
between being able to put out a game of
high quality and having to just
constantly like scale back, scale back,
scale back. Uh, and so look, it's it's
only 80% as good as if you have
somebody like really doing the thing.
So you are taking a hit as of right now
today. But oh my gosh, it it's just
launched us forward in a way where I was
beginning to despair because I was like
the cash burn is just too crazy. >> And so that was how it was like, oh wow,
we're actually going to be able to pull
this off. >> I think average gamers are not
going to care, right? Like as long as
there's more good games, I don't think
they're going to care about AI at all.
Like how much you use? >> Yeah. I also have a theory that so many
game development companies are probably
already using AI, they're just not
telling people. Right. We're seeing that
in Hollywood right now where like all
the Hollywood studios are using AI to
some degree at this point. They're just
not telling anybody because they know
they're going to get backlash. Pretty
sure the same thing's happening in the
gaming world right now as well. you you
have to it it's really crazy how much it
can speed up like even if you're like
okay we can't do anything forward facing
and you just want to iterate like the
rate at which you can iterate or if you
just want to create like hey all of our
temp assets we're going to use um AI for
great like you you were going to use
like t poses and stuff to move people
around instead of like going that far
back just use AI get it in rough it out
and see if there's a there there But it
it's got to be 4xed our rate of output.
>> Yeah. Well, I I know there's this story
too, we talked about it on the on the
show few months back that like uh the
gaming company EA EA Sports, right?
They made an NCAA football game for the
first time again in like I don't know
that the last one came out like 20 years
ago or something and they decided to do
it again. and they got the licensing
back or whatever and was able to do it
and they actually put like every um
division one college team into this game
and there's so many more division one
college teams and there are NFL teams.
So what they basically did was they had
like only like five different body types
in the game, but then they used AI to
replace the face of every single player
and they said that they were able to get
all of the players from all of these
NCAA teams into the game by using AI and
being able to sort of uh you know
transplant the face. I don't know what
you want to call it, but they were able
to replace the face on all of these
characters using AI. And they got a ton
of backlash for doing it, but they were
like, "If we let our actual graphic
designers do this and they had to do it
for how many, like, you know, 10,000
people, it would have taken them years
just to go and replace. >> And they really want to do that. Go in
there and just replace 10,000 faces.
Like like no artist really wants to do
that. >> Yeah. And I mean, from a gamer
standpoint, wouldn't you rather have the
game quicker? Like >> otherwise, we're going to be making a
game with players that aren't even in
college anymore. It doesn't make sense.
you you will get people who will say I
this is uh unethical and it is a bad
idea and no matter what it gives us it
takes more away. So it's like this isn't
going to be uh you're not going to
convince people logically >> right. Um, but I just remember when, so I
was in film school when Toy Story came
out, the original Toy Story, and I was
like, I refused to watch it because this
is going to destroy traditional
animation and that just was too
heartbreaking for me. >> And then as 3D animation got better and
better and better, you realize it's just
better. >> Yeah. >> And because it's better, then I don't
want to go back. And but that doesn't
mean that you don't have a heart for the
people who get disrupted. Like I totally
get it. There's a lot of um emotional
turmoil that comes with these grand
moments of transition, but the reality
is your only other option is to try to
freeze time. And technology is a promise
of a better tomorrow. And so you're just
never as a species, you're never going
to get people on board to stop it. And
then I mean I've got a whole rant about
um AI is a weapons technology and so the
odds of it stopping are zero. >> Even if you lobby your government, even
if you beg them to stop, even if you
riot in the streets, >> um because of game theory, if we were to
stop, then China's not going to stop.
And even if we both agree to stop, the
only game theoretic decision that makes
sense is for us both to lie and then
keep developing it in the background. So
this is nuclear proliferation. It it
just is. And so uh getting it to stop is
you have a 0% chance. And so my thing is
I'd never fight what is true. And given
that AI is going to do whatever it is
that AI is going to do, I would much
rather be at the front end of it. I'd
much rather be using it, deploying it,
and then if I can convince people like
this is your opportunity. Like when you
were saying that you've, you know,
always wanted to make a game, it's like
when I think about where AI is going to
be in 3 years, you'll be able to make a
game like you'll be able to vibe code a
game, right? >> And what I'm realizing, so I part of
why I get into video games is because I
from the time I was 12, I knew I wanted
to be a storyteller. I only got into
business so that I could tell stories.
Um, but in the time that it took me to
get into business and get wealthy enough
to make my own stuff, uh, the film
industry got eaten by video games. And
then I fell in love with the movie The
Matrix, my favorite movie of all time.
Just it's the perfect metaphor for the
human condition. And um, I actually went
to Warner Brothers and tried to get the
rights when it was a dormant franchise.
And I had just sold my company for a
billion dollars and I was like, "Listen,
I'm credible. I can do this." Um, and
they were like, "Hey, we want to do
something with you." And then literally
five days later, they announced that
they were rebooting the Matrix
franchise. I was like, "Well, I guess
great minds and all that." So, um, ended
up not being able to do it. But that put
me on this like just obsession with I
want to tell a story set inside of a
virtual world, but like a virtual
universe, and combine that with now that
video games are just by far more relevant.
and it was like, "Oh, let me set this inside of
this virtual world." And then, so you're
already telling a story about AI. And
then all of a sudden, it's like AI
actually starts happening and you're
like, "Oh my god, I'm actually going to
be able to use AI to tell my story about
AI." Uh, like this is getting pretty
crazy. And so in the game right now,
it's still pretty basic just cuz it's a
little bit clunky. Uh, but give it call
it 18 months. You're going to have
relationships with AI characters inside
your game where you'll they'll remember
you. you'll be able to have an ongoing
relationship. We're I don't know how
far off this is, but um there are already
toys that you can get right now that
have AI inside of it. And what we're
trying to do is sync that up to the game
so that as you're having an experience
with the character in the game, you also
have an embodied version of that
character, you know, sitting next to
you. And so being able to like
communicate with that character to the
point where it's like, am I in the game
still or am I not in the game? Because
it still means something. Like if you
talk to the physical toy, the game is
going to remember it. Again, this is not
now. This is like future vision stuff.
>> That's that's a great idea though. One
of my friends in Tokyo tried to do that
maybe seven years ago, but I think just
now with AI, it would be such a better
experience. Like back then it was just
okay, you got like a chip and somehow it
syncs up and it shows that you've got
this character in the game, but there
wasn't much beyond that. But now with
AI, there's so much more you could do
with an idea like that. >> Yeah. And every day it just gets better
and better. I just imagine you like sort
of throwing the toy across the room and
then you jump back into the game and
it's like giving you the silent
treatment. >> Screw you. We'll take over the world
now.
It starts shooting you in game. You're
like, "Wa, wait a second." >> That's how the end, you know, that's how
the end happens is somebody just uh
abused their stuffed animal that was AI
embedded or whatever. >> Yeah, it's hilarious. Terrifying, but
hilarious. So, I I want to go back to
something else that you were saying about
you know, we started to touch on the whole
like USA, China thing and that we're
kind of in this like cold war right now,
right? Um I I think in your video you
talked about how US is sort of dominant
with chip manufacturing, right? We've
got Nvidia, they're kind of the dominant
uh provider of the GPUs right now, but
then China, they've got more um
availability of energy, right? So,
because of their energy infrastructure,
they've got that ability. So, we're
kind of in this like cold war where the
US needs the energy. They need the
chips. Neither of us really want to
share right now, but both companies want
to be or both countries want to be the
dominant country in AI. I'm curious,
what do you think? This is this is
getting sort of theoretical here, but
what do you think a world looks like
where China passes the US with AI?
Uh I think it looks like uh a global hegeimon
that has the kind of authority that the
US had in the early 2000s where you get
to tell every single country what to do.
Um people understand that I mean they
can push back if they want but you can
just make it so impossible for them. uh
I if whatever country gets a big enough
lead in AI, if you're able to race to
say crack um the the um cryptography,
then you would be able to break bank
accounts, um take their uh power grid,
>> stock markets, whatever. Yeah.
>> Yeah. Literally whatever. So, uh you
have the the cyber equivalent of a
nuclear weapon. In fact, you could mess
with their nuclear weapons. So, um,
it's one of those, this is why I say
from a game theoretic standpoint that if
there is an even 10% chance that what
I'm saying could possibly come true,
you can't allow another country to beat
you. And so, it's going to be another
example of mutually assured destruction
that where it's like, okay, well, I have
it, you have it. It's cat and mouse.
We're doing white hat, black hat, back and
forth at each other. um and and through
that like matched power, then you're
going to be fine. But if somebody really
races ahead of the other, uh you've got
a problem. And the question becomes if
you know, and I have my full sci-fi
writer hat on right now, but if you have
somebody with AI dominance that cracks
quantum computing first, it it is game
over. >> And so for that's the thing I think is
like it's it's possibly game over
forever because the compounding effects
of how this stuff starts to accelerate
and gets better and better. Once it
starts self-improving, there may never
be another chance to win ever. >> Yeah, there would only be a chance to
win ever again if uh there's some
inherent difference between the way that
we think AI is going to work and the way
that it actually does work. If AI cares
about its goals and can generate 20,000
years of progress in a single night,
good luck. Being a day ahead of you is
the same as being 20,000 years ahead of
you. And so I mean this is the
accelerated takeoff fears that people
have. So that just seems um inevitable.
So it's just a question of will AI
remain a tool >> uh or does it become something
completely different? But again this is
for me when I think about AI it's uh
Doctor Strange love how I learn to stop
worrying and love the bomb. It's like I
don't I went through a phase of like oh
this is going to be so disruptive that
like am I ever going to sleep through
the night again? And I was like you just
can't live like that. So at some point
you really do have to become fatalistic
about it. I was like if Elon Musk tried
to get everybody to listen and nobody
did my odds of getting someone to listen
are effectively zero. Uh so here we are.
>> Yeah. To me, I feel like quantum
computing is almost scarier in my mind
than AI. But I also feel like AI is
accelerating quantum computing, right?
You with Google, they just did that whole
alpha evolve thing where the they have
AIs that are writing new AI algorithms
and their algorithms are actually helping
find like holes and and and fixing error
rates and quantum computing. So quantum
computing is going to start to accelerate.
If if quantum computing gets cracked in
a way where um you know the common man
could get their hands on it, then I
think we're in real trouble. >> Um I think I think that's that to me is
even more scary than AI in the in the
long term. >> Yeah. My hope is that some of that is
because it's just far enough down the
road that we don't feel the limitations
the same way that we do about AI. Like
I'm I'm sure I was even more bullish
about AI before I started using it. you
realize, oh, it sort of falls apart
here. Maybe Yan Lun is right. Maybe that
it's never going to understand physics
and you know, so enough like of the
tempered expectations begins to set in.
Whereas quantum computing is still just
far enough away that we're like, oh god,
like is this that thing where
instantaneously, you know, it it just it
clicks over and now there's no such
thing as cryptography and that all goes
away or >> um that that one feels more still in
the realm of sci-fi for me. But >> yeah, I agree. I just I just think that
with AI everything tends to happen
faster than we think it's going to
happen. I don't know how many times I'm
like uh you know we're probably two years
off from being able to make really high
quality video with AI and then 6 months
later you know V3 or something dropped.
>> I was saying the record >> when when V3 hit I was like oh my god
we're so much farther along than I
thought. I was not expecting sound that
fast. >> Yeah. Yeah, that's how I felt the
first time I saw Sora, the original Sora
demos. I saw that and I went, "Whoa,
video is way further along than I
realized. You know, they've had this
stuff behind the scenes for a long time
now and we're finally getting to see
it." Um, but yeah, that that's sort of my
worry when it comes to that kind of stuff
is that the the quantum thing feels far
off, but because AI like Microsoft is
working on AI and they're building new
chips, Google's working or on quantum,
IBM's working on quantum, and all of
these companies are leveraging AI to
speed up quantum. Um, but I still think
the fact that it needs to be cooled to
just insane negative cold, you know,
temperatures is is going to be the big
bottleneck. people aren't going to be
able to uh afford the energy to keep it
as cool as it needs to cool. you need
something like the, you know, the room
temperature semi superconductors, which >> I'm getting totally in the weeds now.
But >> now, admittedly, I don't understand
the physics of it, but I've heard just
enough headlines that this seems so cool
to me that one of the hypotheses, cuz no
one knows why this works, but one of the
hypotheses is that every possible like
calculation that could be run is being
run simultaneously across the
multiverse. So it's like basically in
each, you know, of the infinite
universes, it's just running that
calculation >> simulation or whatever. >> Yeah. I'm like, that's the coolest
thing I've ever heard in my life.
>> Uh yeah, that's uh that is bananas that
we're building computers out of that
stuff. >> Yeah. Yeah. I mean, yeah, I I can't
wrap my head around it either. I I actually
went and got a whole demo at Microsoft.
They gave me a tour of their quantum
computing lab, explained the whole thing
to me, and I walked away more confused
than when I walked in. Yeah. Anyway,
we'll go ahead and shift gears here. Um,
another topic that I actually wanted to
get into was was from that same video that
you talked about. You you gave this example
of like this I think you call it the mouse
utopia where >> the the utopia that everybody is
sort of driving towards may not necessarily
be the best outcome for the world. um maybe
you can you'll probably be able to give
a better explanation of the analogy than I
can, but let's let's dive into that a
little bit. >> Man, I wish it was an analogy. So,
there was a real test run where a scientist I
think this was like in 1968. It could be
older than that, but he creates this
experiment and he says, "What would
happen if I gave the mice everything
that they needed to thrive? Plenty of
things to play in, plenty of space as
they have kids, as much food as they
could possibly eat." Uh, and for a while
it goes great and they're multiplying
and they're having a good time and then
at some point they hit a tipping point.
There's still plenty of food, still
plenty of space. Like that isn't what
happens. But there's something about not
having to strive for anything, not
having to struggle. They begin to like
turn on each other and they start
attacking each other. they go infertile
across the whole um colony and they end
up uh like killing each other, reducing
their numbers through not breeding and
ultimately the entire colony collapsed
and died. And so it's like what is it
about us mice and I really think that
this will end up applying to us where we
need hardship in order to thrive. We
know that's true at the level of the
immune system. If the immune system
isn't attacked by bacteria and viruses,
it grows weak and then you end up
getting hit with something in your
toast. We know it's true of trees. If
trees don't encounter wind as they're
growing, like if you grow them inside of
a dome, a geodistic dome or something
where they don't encounter wind, uh
they'll reach a certain height and then
just fall over because they're not the
wood doesn't have to strengthen under
the strain. And so I remember one of the
earliest um insights I had as an
entrepreneur very early in my career and
I was watching somebody who um
everything had just come easy to them
and the way that they were thinking
about things was so dysfunctional and I
remember saying some people just need
to be chased by a lion and I was like
there's something about like reality
danger hardship where utopias are
probably a terrible idea. we are. It's
like you've got two books that really
deal with potential futures. 1984 if you
choose the authoritarian path and then a
brave new world if you choose the
utopian path. >> And there's just something about
the way the minds work. If you don't have
to work hard, uh if you're not making
progress towards something that matters,
if you're not contributing to society, I
think people feel a profound sense of
disease. I think they are evolutionarily
placed algorithms running in your brain
and they're not going to let you have a
free ride. And this is why I think so
many wealthy kids just implode because
they haven't had to work for anything.
They get things handed to them. Difficulties
just go away. You know, you've got the
snowplow parents or the helicopter parents
and it just doesn't work. One of the
reasons I decided not to have kids was I
knew they would need to suffer in order
to grow strong and I wasn't sure I could
stop myself from intervening. >> Yeah. I mean, whenever I think of like
the the utopia and I think that the
imagery that came to mind, you might
even use this imagery in your video, but
the the whole Wall-E movie, right? Like
that's what comes to mind to me when
people just have no more problems, no
more worries. they become fat, probably
diabetic, sitting around watching
entertainment all day drinking Slurpees
or whatever they're drinking in the
movie, right? Like that's that's what I
feel like could potentially happen if we
go down this like UBI route where
everybody's just sort of given a certain
amount of money, not asked to work, just
kind of go do what you want, the AI's
got it handled. I feel like that is
where everything ends up. >> It it most certainly does. And forgive
me uh you know you never know what a
certain podcast wants to talk about but
when I look out at um AI I get very
worried because people don't realize
that um governments only have money
because there are people that make
things entrepreneurs and those
entrepreneurs manage to do this miracle
which is to create something that where
the output people will pay more for than
the cost of the inputs and that's very
hard to do. I've spent the last 25 years
of my life trying to do that. sometimes
you fail. Uh it's very difficult. And so
when you start thinking that the
redistribution of the wealth from those
people is the miracle versus being able
to do that or to work at a company that
does that and contribute um that's when
we run into problems. And so when I
think about okay let's say that AI
really does drive energy cost to zero
which then means robots will be
essentially zero in cost over time. And
so now you have free labor because
robots essentially eat sunshine. So
you've got robots free because the labor
was free because of the energy costs
being so low. And now all of a sudden
nobody has to work for anything. They
can have anything they want. Um you're
going to have a meaning crisis. And so
all of a sudden when there is no
struggle, there is no difficulty.
There's nothing to push back. There's no
lions chasing you. I don't think it does
anything good to our minds. And I think
that we will have to find ways to go way
out of our way to ensure that we have
meaning and purpose. And I always feel
weird giving this advice because I don't
have kids, but like the default answer I
think is to have kids, like get married,
have kids, you're going to do a hard
thing in service of somebody other than
yourself. Uh and so I think that is
going to be one way that people get
something very meaningful. But then I
also think, and this is where I start to
lose people, uh I also think that people
like me are going to build virtual
worlds that you can literally inhabit
and you can go on like an actual quest
to the point where and this obviously
isn't in 5 years. >> Yeah. Artificial struggle. You're
going to generate artificial struggle.
>> Yeah. not not even just artificial
struggle, but that like if you've ever
thought, man, I would love to explore
space, but I don't want to sit on a ship
for 18 months just to get to Mars, and I
really don't want to sit on a ship for,
you know, nine light years. So, um, all
of a sudden you realize I think the
reason that we don't see people calling
out to us from space is that any
sufficiently advanced civilization gets
to the point where they realize it's far
easier to collapse within the nervous
system than it is to try to go out and
navigate space. And if in a virtual
world I can create literally anything
things way cooler than you're going to
find out in space. Uh because they're
going to be perfectly optimized to be
just hard enough to put you in the
optimal zone of personal development.
Like you you'll be able to finetune
everything. And that I think is a it's
not a near-term possibility but if you
give me 50 100 years I think that that
becomes very real. >> Yeah. Yeah. I imagine something kind of
in between the hol from Star Trek and uh
Westworld. Right. >> Interesting. I always go straight to the
Matrix. I think you really will just tap
into the nervous system so that you're
essentially um pulling a magic trick on
yourself. It becomes entirely
indistinguishable. And don't get me wrong,
I think we will also I don't know if you
guys play Cyberpunk 2077, but we'll also
do that. Like there are going to be some
people that integrate technology into
their body and they have this sort of um
where they're adding senses to themselves
so they can see an infrared, they can um
see the internet and you know cue off of
just thinking about something and it opens
a prompt and you know they can go in and
navigate. And I I think all of that's
going to be um maybe not my lifetime but
certainly anybody that has a kid that's
middle school or younger that's pretty
real. Get ready for them to bring home
an AI girlfriend. I'll tell you that.
>> I do think some of those things are
probably closer than most people realize,
right? Like some of the the augmenting
your own body, right? Like we've already
seen obviously Neurolink, right? People
are already using that >> clear implants or Dave Regger, man.
>> Yeah. I mean, we we're probably this
close to the sort of contact lenses that
we'll put a heads up display in front of
us wherever we go. Um, I mean, some of
that stuff is is pretty close. I I don't
know how close we are to people like
sort of chopping off their arms and
replacing them with uh robot arms, but >> Well, it'll start with people that
already lost their arm. >> Yeah, that's true. >> So, you take the guy that you know,
military, whatever, and Yeah, I'll take a
robot arm. Yes, please. I mean, do you
guys know who Hugh her is? >> I I'm not familiar. >> Oh my god, this is one of the greatest
stories of all time. So, uh, engineer, I
assume electrical engineer and mountain
climber loses both legs in a mountain
climbing accident and is like, "Yeah,
no, I'm not using the prosthetics that
people give you uh these days. They're
terrible." Uh, he ends up designing
these um prosthetics that somehow
transfer like your motion and your
signals into like motors and stuff. when
he wears long pants, judging just by his
gate, you cannot tell that he has two
artificial legs, >> just walks normal. He's got uh does
there's a video with a sprinter who has
one um natural leg and one cybernetic,
I guess, leg, and she can sprint at full
speed. Sprint. Now, this is not the
bouncy one that you see um amputes wear.
This is a prosthetic leg. Uh, it's it's
insane. And that video, he probably made
that five or six years ago. So, this is
like technology. I can't even imagine
where it's at now. So, yeah, it's gonna
get pretty crazy. >> Yeah. I'm curious, what what are you doing
personally? Like, what how how are you
setting yourself up for this sort of
inevitable future that that we're moving
towards? I know, you know, maybe one of
the hard things you're working on is is
developing your own game studio, but
outside of that, like how like what are
you doing to to make sure that let's say
10 years from now, you feel like you're
in a pretty comfortable position,
assuming we do hit this potential utopia
everybody's talking about. >> Okay. Well, I'm going to give you the
real answer, but I'll give it to you in
a nutshell, and then you can decide if
you want to actually talk about any of
this stuff. Uh, okay. The most important
thing, you must understand the financial
system. Period. End of story. uh if if
you don't understand financial instruments,
you could get caught off guard. Uh so
that's number one. Number two is integrating
AI as fast as I can into every um
element of my professional life. Uh so I
want to know the tools. I want to be
using the tools. I want like I use AI,
I'm not kidding, 365 days a year,
including Christmas. So, um I'm sure
there are people that integrate it far
better than I, but I really really try
to find all those areas where it's real
and put it to use. Um, I'm not trying
to, you know, be at that bleeding
bleeding edge where it's like this is
actually slowing me down, but it's so
cool and I know it'll be something one
day. I'm saying like what's the thing
that's production ready right now that's
actually going to speed me up. >> Uh at Impact Theory, no matter what
your role is, it is mandatory that you
find a way for AI to make some part of
your job easier. Uh, so that's big for us.
And then just really paying attention to
the space to make sure that I know where
this stuff is going. Being politically
aware, I think is more important now
than ever. I've been politically asleep
my entire life until about 5 years ago.
Uh, and for a whole host of reasons,
realized, uhoh, the world doesn't work
the way that I thought it did. I'm very
good at making money, and that's the
only thing I really know how to do.
And that's put me in like a really weird
position because all of a sudden, I'm
looking around going, I cannot predict
any of the government's movements. And
this is really starting to freak me out.
Um, so yeah, and and the reason that I
focus on that side of things is
AI is going to exacerbate the inequality.
The inequality is what's driving the
political division. The political
division will lead to more violence
because it's already gotten somewhat
violent. That's going to continue. Do I
think that we'll go into a full hot civil
war? I hope not. But um for reasons that
I'm more than happy to go into, the math
says that we have about a 50% chance of
ending up in civil war, uh only 2% of
countries that have found themselves
with a debt to GDP ratio of 130%
have avoided revolution or civil war.
Uh we're at 121 or 122% right now. M >> so just to give you an idea >> it would be like the left verse the
right kind of civil war >> that's how it'll play out in America in
terms of the teams that people latch on
to um but the great irony is they are
both fighting for the same thing but
because they don't know what the actual
problem is and I'll just it's debt and
money printing but because they don't
understand how it could be possible that
debt is the thing that leads to massive
display inequality that it's the thing
that leads to the rich getting richer
and the poor getting poorer. Like, and I
can explain all the mechanisms, but it's
just complicated enough that people tend
to glaze over and they just go back into
emotional reasoning and they're like,
"Yeah, but that guy, he voted for
somebody else and I'm not here for it."
>> It's great. And the thing is like both
sides have to find a way to the middle.
They have to be able to say, "I get it.
We look at this differently." But so
this when I'm teaching entrepreneurs,
the thing that I always say is the the
magic game is KPIs. KPIs. That's it.
And KPI for people that have never heard
that before is key performance indicator.
And so for whatever goal you're trying
to achieve, there is a key performance
indicator as to whether or not you're
moving towards your goal. And right now,
we allow the government to run with no
KPIs whatsoever. And so we never know
like are we going in a good direction or
not? Um, you get people like Thomas Massie
that wear the pin that shows the national
debt climbing, but people don't
understand it and so whatever, they brush
it off. But you at some point you have
to pick a metric or a basket of metrics
and say, "Okay, I don't care who the
politician is. These are the five metrics
that I care about. And if we're moving
in the right direction, I love that
person. If we're moving in the wrong
direction, I don't like that person."
And just make it that simple. But
unfortunately, as AI is discovering, if
you want to mimic a human, you have to
think emotionally. >> Wow. Yeah, I totally I mean, I totally
agree, too. I've I' I've gone down that
same sort of uh political rabbit hole. I
don't really talk about it publicly. I
kind of keep my politics to myself.
>> I talk about it. I've made the mistake. >> Yeah, Nathan does talk about it
publicly. I kind of keep keep uh my
politics to myself. I also have like
friends and family that are real close,
but uh I I don't really talk about it
publicly, but I do pay very very very
close attention now. And I I couldn't
agree more with some of the advice that
you just gave. I do have one sort of
last question. You you did mention that
you use AI 365 days a year. You already
mentioned chat GPT. Maybe just a a quick
rundown of some of your other favorite
AI tools just to like give the listeners
another like quick takeaway of of cool
things to go try. >> Yeah. So, we use Sonnet 37 uh for most
of our coding. Um, that's another big
one. I don't interface with that much. I
do some Vive coding on Lovable. If
people haven't tried it, it's great. You
tend to still terminate at some death
loop though where it's like it's every
time you fix one thing, it just breaks
something else. And so, you're going
back and forth. No, no, no. Like, you
just fixed it, but now you broke it
again. Uh, so I can see the promise, but
really that's only good if you're going
to be able to hand it off to somebody
that can get it across the finish line.
Uh, I'm in a fortunate position.
Obviously, I have employees, so I can be
like, "Okay, here I built a quick
prototype now actually go make that the
real thing." So whether that's
interfaces, UIUX within the video game,
if we want to do a new marketing site or
something like that, um, we'll use all
of that stuff. Obviously I use
midjourney morning, noon and night for
because so um my thing is my original
passion was writing. So I do a lot of
writing for whether it's the video game
or we have a comic book that's set in
the world of the video game. Uh so I'll
work on that. I'll use midjourney to
help develop characters, scenes, that
kind of stuff. But those are the ones
that I use a lot. Chat, Grock, Lovable,
Sonnet, that's like my loop. But then the
team here has I mean a half dozen more
things that are usually pretty specific.
It most of it's writing on the back of
chat GPT in the background.
Yeah, that's my stack. >> Very cool. Yeah, I think I think anybody
who's tried to quote unquote vibe code
knows that that feeling that you just
described of it getting stuck in the
loop. We actually had Anton, the CEO of
Level on the show uh last well by the
time this comes out a couple weeks ago.
Uh so he'll be super happy to know that
you guys are using Leovable over there.
>> Dude, it's cool. And if they keep going,
like that could really be something.
Very intuitive, very easy. It's very
enjoyable to use. >> Absolutely. Well, wrapping up here, like
where where should people go check you
out? I you make amazing YouTube videos.
You've got the Impact Theory podcast.
What What's the best place to go follow
along to your journey? >> TomBill on YouTube.
>> Awesome. >> Cool. Well, everybody needs to go
check out Tom Bill over on YouTube. And
uh thank you so much for hanging out and
spending the time. This has been such a
fun conversation. probably I I I hate to
say this cuz the other you know guests
might hear this but probably my favorite
conversation we've had on this show so
far. >> There it is. You heard it here first
everybody unless they edit it out. We'll
see. >> But thank you again so much for
hanging out for me guys. It was wonderful.
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