TheorganizationformerlyknownasGoogle X, now X nottobeconfusedwithformerlyknownasTwitter X, twodifferentorganizations, butGoogle
X usedtobethesecretlabatGooglewheretheywouldattempttodowhatareknownasmoonshots, whichiscrazyoutlandishideasthatonly a companywiththeresourcesandbrainpowerofGooglecoulddo, wereyoutherefromtheverybeginning?
Andtheyaskedhimifhewanted a co-founder, heand I hadknowneachotherfor a longtimeandhadbeenlookingforanopportunitytoworktogether.
I wasrunning a hedgefundinSanFranciscoatthetime, andSebastiancameandaskedme, wouldyouliketocomedothisthing?
And I said, no, because I wasreallydedicatedtomyinvestors.
Andthenhecameandaskedmeagain.
Andso I wenttomyboardofdirectorsand I said, okay, I'm goingtosaynoagain, butbefore I do, I justwanttohearthatyou'reallasserious, butwhatwe'redoingis I am.
Andtheysaid, whatareyoucrazyAstro?
Godothat.
Wegotthiscovered.
Like, so I mademyCTOatthathedgefund, theCEO, and I cameandhelpedstartGoogle X.
Okay.
Sonow, nowlet's getintotherealnittygritty.
Thankyouforthat.
Buthere, let's getintotherealnittygrittybecause I thinkwhateverycompanywritesonitsfakevalueslistthat's writtenonthewall.
And I sayfakebecause, youknow, I knowexactlywhatyoumean.
It's just a listofstuffon a wall, buttheyallhaveinnovation, right?
Which I thinkisfunnybecauseeverycompanythinksthey'reinnovative, butmostcompaniesarenot.
Andevencompaniesthatsaywe, eventhecompaniesthatare, thataredrivingtoinnovation, theinnovationsthatthey'rethinkingofare, I think, fairtosay, evenifthey're a good, smallincomparisontothestuffthatyou'redoingoverat X andhavealwaysdonejustsothatpeopleunderstandsomeofthesizeofthethinkingthat's happeningthere.
Justto, justsowecancontextualizeit, give a coupleofthebrandsthathavespunoffthatpeoplemightknowthatcameoutof, thatcameoutofthisbrilliantlab.
Sure.
SosomeonesthatpeoplemaybefamiliarwithGooglebrain, whichstartedat X wasthe, arguablytheoriginalepicenterofwhatisnowthismoderndayexplosionofdeeplearning.
Westartedsomethingwhichinternallywascalledchauffeur a longtimeago.
Itwasourexplorationintoself-drivingcars.
Thatprojecthasgrownup.
It's graduatedfrom X.
It's now a standalonebusinessinsidethealphabetfamilycalledWaymo.
AndsoifyougotoSanFrancisco, nowyoucanget a ridefromWaymocarsandit's a transportationas a serviceexperience, there's justnoonesittinginthefrontseatandyoudon't evenneedtobewhitelisted, youjustdownloadtheapp, order a car.
Itappears, ittakesyouaround.
I thinkforlistenersofyourswho'vetrieditbefore, it's reallyexcitingforthefirstfourorfiveminutes.
Andthenit's boring.
Andthat's awesome.
I'vehadfriendswho'vetakenWaymo's inSanFranciscoand I waslike, what's itlikeasifit's thefirsttimeon a planeandthey'realllike, yeah, whatever.
Andsoifyou, Simonworkedat X andyoucomeupwiththeteleportationproposalandyouhavelike, Hey, I think I have a wayofmakingteleportationwork, andhere's thiscrazyidea.
Sowe'rewillingtogoontheseunlikelyjourneys, butthenwithequallyhighlevelsofhumility, knowingrightfromthebeginningthatit's probablynotgoingtoworkandbeingabletobesanguineenoughaboutit, thatwecanbeproudofgoingonthejourneyandthenproudofturningoffthejourneywhenitturnsoutit's nottherightjourneyinsteadofresistingthatrealityorgoingthrough a longgrievingprocesswhenitturnsoutnottobetherightthingtodo.
Andsoalloftheculturalworkat X isabouttryingtohelppeoplegetfromthissortofgambler's mentalityofinnovationoverintothiscardcountingmentalityofinnovation, wherewecanfeeltogetheras a community, supportingeachotherinthisprocesswherewearepassionateaboutbeingdispassionate.
And I assumethatitmakespeoplemuchmorecooperativethatyou'realltryingtohelpeachother, makeyourideasworkbecausenobody's goingtoberewardedbecauseyou'renotgamblers.
Whatyoudescribedisouraspirationalstate.
Theactualworkthat's goingonhere.
Andyou'vespenttimehereatthemoonshotfactory.
So, youknow, what I'm talkingaboutistryingtogetourwaystepbysteptowardsthataspirationbecauseyou'reright.
Anditsoundsgreat.
It's reallyhardforustodobecausethat's notwhattherestoftheworldhasencouragedustobelikesinceweweresixyearsold, therestoftheworld, if I say, I don't knowwhattheansweristoyourquestion, or I sayyourideaisbetterthanmine.
Sowhat I loveaboutthisis, I mean, so I knowthatwecallmoonshotsmoonshotsbecause, youknow, wealwayslike, wecouldput a manonthemoon, butwecan't dot, dot, dot.
Soletmegiveyouanexampleofsomethingthat I thinkis a learningthatwe'vehad.
That's verymuchintheculturehere.
Nowwecallitmoonshotcompost.
Sowetake a runatsomething.
A lotofpeoplearepassionateaboutit.
Uh, I'lluseanexample.
Wehave a moonshotnowforhelpingtheelectricgridsoftheworld, uh, moveintothe 21stcenturyin a varietyofwayssothatwecanhelpthemtotakecareofthegridsastheyareplannedforthegridsastheywanttobeinthefutureandoperatethegridsinrealtimeinwaysthatwillmakethemmuchgreenerandmoreresilient.
Wehaveallofthislearningandintellectualmomentumthatwecanalreadybuildon, eveniftheprojecthas a newname, we'rekindofstartingover.
Soagain, thisissomethingthateventhoughthere's theold, I don't knowifit's old, buteventhoughthere's theadage, youeithergetitrightoryoulearn a lesson, howmanyorganizationsareactuallypullingouttheolddatatobelike, allright, we'regoingtotrythisagain, let's spendsometimetogothroughsowedon't repeatthemistakes.
Youknow, a friendofminewhois a consultantsaysofherclients, theyneverhavethetimeormoneytodoitrightthefirsttime, buttheyalwayshavethetimeandmoneytodoitagain.
Right.
And I'm sogladyoubroughtupnevertimetodoitright, butalwaystimetodoitover.
Right.
Thatstuffgetsbroughtupat X allthetimebecausethat's whattheylearnintherestoftheworldandmeasuretwice, cutonceit's like a seamstresssaying.
Canyougivesomespecificguidanceashowyouactuallydodothatat a culturallevelfrom a leadershipstandpoint?
Howdoyouactuallygetpeopletoletgo?
Myexperienceisthatatfirstyouhavetogivethemsomeintellectualarchitecturethatgivesthem a boostwhiletheysortofgetintotheflowofthings.
Youcan't justsay, letitgo.
Thatdoesn't work.
Forgeteverythingyou'velearned.
Right.
Soanexample, which I knowyou'veheard, butmanyofyourlistenerswon't.
Formanyyears, I wasjustsaying, wehavetoworkonthehardestpartsoftheproblemfirst.
Yeah.
Anditjustwasclearlylikenotworkingforpeopleat X.
Andthen I wasat a WallStreetJournalliveconferenceandsomeoneaskedmeaboutjustlikeyou'redoing.
And I said, workonthehardestpartsoftheproblemfirst.
Andtheysaid, whatdoesthatmean?
I don't getit.
And I said, look, hyperbolically, ifyouweretryingtoteach a monkeytostandonthetopof a 10 footpedestalandreciteShakespeare, whatshouldyoudofirsttrainthemonkeyorbuildthepedestalinthatextremecircumstance?
I thinkwecouldallagree.
There's nopointbuildingthepedestalfirst.
Causeyou'veremoved 0% oftherisk.
Alloftheriskis, canyoutrainthemonkey?
Right.
Butwhenyouactuallylookinslightlymoresubtlecircumstancesallovertheworld, almostallthetime, everyone's buildingpedestalsbecausethenyoucanbehalfdone, youspent a coupleofyears, yougot a bonus, yougot a promotion.
Andifit's incremental, ifyoukindof, ifthereisn't a lotofriskandit's possibility, it's justhardwork.
There's now a wholebunchofworkandproductsbeingsoldthatareverymuchintheveinofGoogleglass.
So, youknow, wewerepressingit, butourjobistoarguablyourjobistobetherightamountstooearly, butinordertobetherightamountstooearly, wenotinfrequentlyhavetobetoo, tooearly.
Hastherebeen a projectthat I knowyour, yournatureistobelike, well, giveit a try, buthastherebeenonewhereyousortofsaid, giveit a try, butinyourhead, you'relike, yeah, no, likethisis, thisisactuallyoutlandishandwe'reforcedtoeatyourhat.
Oh, constantly.
God, silly.
Letmetellyouaboutone, uh, that I'm reallyexcitedaboutnow.
And I rememberjustbeinglike, no, okay.
Wenowhavesomethingthat's graduatedfrom X it's ontheoutside.
Thatis a substantiallycheaperwaytopullCO2 outoftheatmospherethanotherpeoplehavefiguredouthowtodo.
It's theworld's largestsnowglobe.
Theteamhasfiguredout a wayto, onverysmallpiecesofsand, basicallyamorphoussilica, puttheselittlechemicalfingerscalledmeansthataredesignedtohangontothesand.
AndtograbCO2 moleculesoutoftheairatonetemperatureat a coldertemperatureandthatat a highertemperature, theyletgoofit.
Andthenthetrickispartofwhyit's soexpensivetograbCO2 fromtheairisthatyouhavetogetituptoalmost a boilingpoint, like 90 degrees
Celsiusbeforeitwillletgo.
Theteamdesigned a waytogetitdowntoabout 45 degreesCelsius.
Soallof a suddenthesinglebiggestcostjustevaporated.
Imaginenow, sixyearsago, somebodywhowas a geniusengineer, butmaybenot a geniuscommunicatortryingtodescribemakingtheworld's largestsnowglobeandhowthiswasgoingtosolveclimatechangewhenthatwasdescribedinthebeginning, I wasdeeply, deeplydubious.
Andherewearesixyearslater.
It's a super, it's oneofthethingswe'remostproudabout.
AreonlycompanieslikeGoogleabletodothisbecause, youknow, there's a lotoffailure, whichmeansthere's a lotofwaste, whichmeansyouneed a lotofmoney.
Youknow, howisthismethodologyormentalitytransferableto a startupor a lesserresourcedorganization?
Likemy, mylittlecompany, I don't think I couldaffordtodothisorcould I?
Well, I mean, I don't knowthatyoucouldaffordtodoitatthescalethatwe'redoingit, butifyousaidtoyourteam, I wouldliketo, whateveritis, I'd liketohave 10 timesasmanypodcastlisteners a yearfromnow.
I want, insteadofhavingoneideaabouthowwe'regoingtodothat, we'regoingtospend a monthcomingupwith a hundredcrazyideas.
I guaranteeyou, youwouldmakemoreprogressonbuildingyourlistenershipforyourpodcastdoingthatthanifyoupickedsomeideaandjusthopedyouwererightfromthebeginningandpushedreallyhardfor 12 months.
Sothatisexactlytheprocessthatwe'redoing.
Youdorealizethatoneexample, youhavescrewed a lotofpeople's headsrightnow.
You'vescrewedwith a lotofpeople's headsrightnowbecausewe'reallrethinkinghowwedothisstuff.
Like I thinkweallembarrassinglytakebetsandit's becausewe'reafraidoflosingandyou'renotsayingyou'regoingtolose.
I thinkthatGoogle's lettingusdothisbecausethey'reinspiredandtheyunderstandthatwe'recreatingvaluedisproportionately, whichiswhythey'restillgivingusmoneytodothis.
You'reputtingthemon a potonthetopofanexistingtelephonepole, electricitypole, whateveritis.
You'reputtingontopof a building, whatever, topof a building, like a place, andyoumeasureout 20 kilometers.
Youstick a receivingoneinanotheronethatrelays.
Andbeforeyouknowit, a villagewithnoconnectivitythatdoesn't requirethehugeamountsofmoneycouldtogodigfiberoranythinglikethatisnowfullyconnectedtotheinternet.
Yeah.
I mean, oneofmyfavoriteexamplesisinAfrica, there's, there's a huge, a cityononesideoftheCongoriver.
Andnow I thinkthatwehavelikefourorfivepairsoftheseboxesacrosstheriver.
There's a lotoftrafficgoing, likethere's a lotofopportunitylikethatintheworld.
Thisstuffisinteresting.
OhmyGod.
I mean, sothestuffthatyou'resayingmakessomuchsenseandthere's somuchlogic, whyaren't allcompaniesdoinginnovationlikethisandwhyarewestillgambling?
And I don't, I don't buyintocauseyouknow, that's howpeoplearetaughttodoitbecausewewilladapt, youknow, companies, especially, youknow, whorishcompanies, ifthere's a moreefficientwaytogetsomethingoutofitandextractsomething, they'lldoit, right.
It's workingonourselvesandpracticing a setofhabitsthatarereallyeasytopracticing a setofhabitsthatarereallyeasytodescribe, butareveryhardtopracticebecausethey'renotwhat's encouragedintherestoftheworld.
Andit's whatwespendourenergyon.
And I thinkmostpeoplearen't yetreadytoputinthatlevelofculturalengineering.
Andittakes a levelofsortofpassionandplayingthelonggame, believinginpeople, believingthebestinthem.
Um, there's a bitof a trustfallinwhatwe'retalkingabout.
Itmakessense, but I thinkthere's a leveloflikedispassionnecessaryandbeliefintheprocessnecessarywhenyou'recardcountingthatforpeoplewhoaren't reallybelievingintheprocess, I, I'm gladthatyou're a believer, butyouhavetoreallybelievebeforeyoustartpracticingit, I'm goingtobeinterestedover a beersometimetoaskyouwhetheryoutriedthehundredcrazyideasthatyouwinnoweddowntooneidea.
Yousaiditwas a greatideaanditwascrackingeveryone's brainopen.
I'm goingtoaskyounexttimeover a beer, whetheryouactuallydidit.
It's harderthanitsounds, eventhoughit's right.
Fair, fairbet.
Whataresomeoftheculturalthingsthatyoudoat X thatworkthatotherpeoplecouldeasily, easilyimplementthatstarttomove a cultureinthatdirection, movingfromgamblertocarcounterthatyou'velearnedovertheyearsthatyou'velearnedovertheyears?
I thinkit's actually a hugenumberofsmallthings.
And I'llgiveyouanexampleortwo, butitstarts, ifyouunderstandtheprocess, whichwejustdescribed, thenyouneedtosend a tonofsignalstoyourpeople.
Thisiswhatwecareabout.
So, forexample, ifyoucomeintoourlobby, youwon't seefinishedversionsofallourproducts. Youwillseeinprocessversions, beatenupversionswheretheygotbeatupanddirty, thejankyearlyonesinthefield.
Andwhen I firstmethim, youknow, manypeoplecomeupwiththeoriesabouthowtheworldworks. ButKarscameupwiththetruth.
Andthat's oncein 100 years.
Andso, ofcourse, I'm like, I couldn't waittositdownwithhim.
Andthefirstquestion, thepoorguy, like I barelysaidhello.
Thefirstquestion I askhimis, howdidyoucomeupwithit?
Like, howdidyoucomeupwith a truthlikeFiniteandInfiniteGames?
Andhewassayingbackinthe 70s, therewerealloftheseintellectualsalonsthatthattheywouldbringtogether, youknow, a mathematician, a philosopher, youknow, a financeguy, youknow, whatever.
Andeventheprisoner's dilemmaisaboutis a winlossscenario.
Falsely, I mightadd, and I thinkwhatissomagicalabout X andyouandyourleadershipandyourcultureandwhatyou'redoingisyou'reoneoftheveryfeworganizationsthathasfullystakeditsflagonplaying, knowingthatthecreativity, thecooperation, thejoy, thefun, thegettingtoleave, joiniswaymorepowerfulthanincentivizingpeopleonwinorloss, thatitisthejankyversiononthewaythatyoucanlaughatandsay, I rememberthatiswhatit's about.
Someonerecentlysaid a term I kindoflikehesaid, thenonstupidsuspensionofdisbelief. Andsowhatwehavetodointheearlydaysofourproject, it's veryhardtogetatit. But I thinkit's likeyouneedrigoranddirectionalitytoitorit's justrandom. Butyouneedtohaveitbesothattheplayisguidedtocauseefficiency, notsomuchthatitturnsbackinto a grimgrindingofthegearsbecauseyou'renotgoingtogetradicalinnovationoutofthat.
Like, I likeworkingtherebecauseit's fun, say, veryfewpeopleintheworld.
And I thinkifyoucanmakefunintegratedintotheprocess, whatyouendupwithisisinnovation. Andjusttoput a finalpinonit, asrichasGoogleis, you'reactuallynotthrowinghugeamountsofmoneytosmallnumbersofproblems.
Gordianknot. Youknowthestoryofthat, I think, forallthenerdsouthere, I describeitverybriefly.
TherewasAlexandertheGreatashewassortofheadingintotherestofAsia, whichheultimatelytookover a lotofAsia.
Hestoppedinwhat I thinkismoderndaySyria.
Andtherewas a templeandtherewas a verycomplexknotthathadbeentiedinfrontofthetemple. Andtherewas a legendthatwhoeverfiguredouthowuntiedthisknotwouldtakeovertherestofAsia.