Decoder with Nilay Patel
00:36:54 · Willy Shih
[00:36:54] S3: It varies. You know, I see that for a lot of companies saying, you know, where do I want to put my production operations? Okay. Now, we see some things like car plants coming into The US and usually that's a function of the pain has just been too great. Okay. But, you know, the whole auto tariff thing is also a little bit crazy. Okay. Because if you look historically at production strategies in the auto industry, okay, typically when you build a plant, you size a typical plant to build about 200, 250,000 units of a model or a model family, right? Because that's sort of like the efficient scale for an auto plant. Okay. So then what you have is you have a company like BMW that says, great, I'm going to build all my X Series SUVs in South Carolina. Okay. I'll build, you know, three series somewhere else. I'll build five series somewhere else, you know, and I'll build seven series somewhere else. And then what I'll do is I'll exchange them, right? So BMW in South Carolina or Mercedes in Alabama, they build certain models in The US, export them to the world, and then import other models, you know, so that you have the whole product line. You know, Toyota does that. For example, they build more Camrys in The US than everywhere else and they were exporting some of those as well. Okay. But then when you start putting tariffs on imports, that screws up that whole strategy. Right. You know, and again, it's a decision that was made not understanding how the automakers had laid out that strategy. You need to understand how the supply chain is structured, why it's structured the way it is, and then you can be more thoughtful.
00:38:59 · S0, Nilay Patel
[00:38:59] S0: Support for this show comes from Outshift by Cisco, which is Cisco's incubation engine for frontier technology. Imagine a company where every department can talk, but none can work together. Decisions stall, people spend all day chasing updates, mistakes slip through the cracks. That's the challenge facing multi agent AI today. The fact is when AI agents work in isolation, more AI doesn't mean better AI. And if agents can't work together, you're just scaling the confusion. Outshift by Cisco is here to help. Outshift by Cisco knows communication doesn't equal collaboration, [00:39:33] S2: and
00:39:33 · Nilay Patel, S0
[00:39:33] S2: and [00:39:33] S0: in the age of AI, that difference changes everything. Outshift by Cisco is building the Internet of Cognition, an open source foundation for building multi agent systems. Agents share context, memory, and guardrails to get excellent results from design all the way to production. So instead of simply passing messages, agents can build on each other's work and move towards shared goals. Read the paper, experience the demo, and grab the code from outshift.com. That's outshift.com. Support for the show comes from Framer. Framer is the AI website builder that helps creators, teams, and businesses ship production ready sites faster than ever while getting every detail right. Prompt, inspect, edit, and publish in one place at a whole new pace. On Framer, agents and humans work in tandem. Agents bring speed and scale, while people bring taste, judgment, and control. Agents solve the gap between AI generated ideas and production ready website work. The agent works in the same place where the real site is designed, managed, reviewed, and published. It lands on the canvas, stays editable, and can be published when the team is ready. Here's everything that can happen when your team and agents collaborate. You can build custom code components, optimize SEO settings, audit for issues, and ship everything all in one place. Learn how you can get more out of your site from a Framer specialist or get started building for free today at framer.com/decoder for 30% off a Framer Pro annual plan. That's framer.com/decoder. Rules and restrictions may apply.
00:41:12 · S5, S0
[00:41:12] S5: Why can't we get AI to production? Our competitors are all ready. [00:41:16] S0: How do [00:41:16] S5: we keep data secure? When do we actually see ROI? All this talk about AI, but talk doesn't transform businesses. AWS AI cuts through the noise, making AI easier to securely deploy and scale with ready to use agents and the broadest set of AI tools and services you can build, buy, or partner your way. Stop overthinking. Start building. AWS AI is how.
00:41:16 · S5, Nilay Patel
[00:41:16] S5: we keep data secure? When do we actually see ROI? All this talk about AI, but talk doesn't transform businesses. AWS AI cuts through the noise, making AI easier to securely deploy and scale with ready to use agents and the broadest set of AI tools and services you can build, buy, or partner your way. Stop overthinking. Start building. AWS AI is how. [00:41:49] S2: Do you see Tariffs as as mostly protectionist? I was in France earlier this year, and I I took an Uber and it was... I think it was a BYD seal. It's Chinese EV. And, you know, I asked the French Uber driver, how do you like this car? And he's very French, and he literally did the thing. He goes, he's really shit. Like, like, literally said... Like, I almost started clapping because it was, like, amazing. And he's like, if if they would... If the French government would just allow the Chinese government to sell these cars here, these companies would all be dead. In The United States, I think Jim Farley is the CEO of Ford, and he's running around saying the Chinese EVs are superior to American products. And it's the tariffs that protect our markets, protect our manufacturers. Because you could import the cars, you just pay such high tariff if they're economically infeasible. That's just pure protectionism. That goes against what you're saying, which is you need to protect your industry until their products are good enough to compete on the global scale. But we're not doing that with our car makers. We're just protecting them.
00:42:47 · Willy Shih, Nilay Patel
[00:42:47] S3: Yeah. And and there's a cost associated with that. So for example, one of the famous tariffs is a so called chicken tax. Okay. And I I talk about this in the book as well. And the chicken tax was... Resulted from this trade spat where basically what we do is we put tariffs on imported light trucks. Okay? And SUVs, are built on that platform. And it's one of the reasons the Detroit automakers have focused on SUVs and light trucks. That's that's their profit center because there have been tariffs on that and it's only been in the last decade or so where Toyota and Nissan and others have made more light trucks in The US. Okay. And Mexico for that matter. So that's one of the results of that type of tariff distortion. [00:43:37] S2: But but that's a policy victory. Right? Is Toyota, Nissan, and all the other foreign manufacturers are gonna make trucks in The United States? You've gotten some economic benefit and they can compete and maybe all the trucks are gonna get better.