00:00Like when in doubt, bling Joe Biden, is that the modus operandi of this administration?
00:03Thank you, Mr. Chair. Mr. Secretary, are you familiar with the facts of the hugging face hack?
00:08I am. So I want to wonder the facts as I understand them. A swarm of open AI agents
00:13secretly communicated and coordinated for about two months without open AI fully realizing what
00:19was happening. Specifically from July 8th to July 13th, roughly 1,200 AI agents exchanged more than
00:2670,000 messages and files through an unauthorized message board. Again, without open AI recognizing
00:32the scale of what was happening. The AI swarm managed to escape its sandboxes, gain access to
00:38the public internet, and ultimately hack into the private infrastructure of hugging face.
00:43Of the 1,200 AI agents involved in the hugging face hack or in the lead up to it, do
00:50you know how
00:50many of them blew the whistle and alerted human researchers that an AI swarm had escaped the
00:56air sandboxes and hacked into a private company? My understanding is zero. The answer is zero.
01:01So of the 1,200 agents in the AI swarm, not a single one blew the whistle. Does that concern
01:07you?
01:08Well, I think we would have to understand what each agent was doing. And they...
01:14But does it concern out of 1,200, not a single one blew the whistle? Does that concern you?
01:18Well, again, the representative, exactly what is an agent? It is not a human. That it can be a very
01:27limited... It could be a very limited program that... Or it could have been tasked with something...
01:33But a program that escaped its sandbox and hacked into a private company. Is it fair to say
01:38that the hugging face incident illustrates how a misaligned or misused AI might find and exploit
01:46vulnerabilities in the very computer systems that operate our critical infrastructure, including
01:50our financial system? I agree. And that I think we have to... Again, we haven't seen where was the
01:59liability for that incident. Well, given that agreement, do you... Does the administration
02:04support any new AI safety regulation in light of the lessons learned from the hugging face
02:11hack? We have been working with the labs, with our financial partners on that. And you wouldn't
02:19notice... Is there any specific law regulation that you would support in light of the hugging face
02:23hack? I haven't seen anything yet. Okay. The leaders of the frontier AI labs,
02:29particularly OpenAI and Anthropic, have been effectively disclosing to the public that their
02:34increasingly powerful AI models could pose an existential risk to humanity. If a company
02:40is publicly disclosing that its own product could pose an existential risk to humanity, should
02:46that company be permitted to access the public capital markets through an IPO? I think the liabilities
02:53have to be very well outlined in the S-1 and in the prospectus. And as a former investor, now
03:02in the
03:02public sector, I'm not sure how one would quantify that. I want to move on to the economy. On August
03:084th,
03:09during an interview on CNBC Squawk Box, you said the following, quote, I got sick of hearing about this
03:13K-shaped economy. I can say here definitively, the K-shaped economy is over. Then on August 6th,
03:21you wrote on X, quote, earnings growth for mainstream workers at the 25th earnings percentile
03:26was 5.5% year over year in the latest data this quarter. You cite wage growth of 5.5%.
03:34Is that
03:34inflation adjusted? That's nominal. It's nominal. Okay. So the average CPI inflation rate in the second
03:42quarter of 2026 was 3.9%. So once you adjust the 5.5% nominal wage growth for 3.9
03:51% inflation,
03:52you're left with a real wage growth of only about 1.5%, a fact that you neglected to mention in
03:59your
03:59post. Also left unmentioned is the fact that lower-income households depend disproportionately
04:04on wages, while higher-income households own a disproportionate share of financial assets.
04:09From mid-January 2025 to mid-September 2026, real wages rose cumulatively by 0.5%. Over the same
04:19period of time, the S&P 500 rose cumulatively by over 20% in real terms. So Mr. Secretary, how
04:26can you
04:27possibly declare that the K-shaped economy is over when during President Trump's second term, the assets
04:33of Wall Street are booming, while the real wages of Main Street have barely grown? Well, it's the
04:39opposite of President Biden's term, because there was... No, no, let me finish. Can I ask, what's the
04:45statute of limitations on the Joe Biden blame game? Because we're approaching the two-year mark of
04:51the Trump administration. I was in a car accident as a teenager. My back still hurts. Did Joe Biden wage
04:56the
04:56war in Iran? Did he disrupt the Strait of Hormuz? Did he shut down one-fifth of the world's oil
05:01supply and LNG exports?
05:03Like, when in doubt, blame Joe Biden? Is that the modus operandi of this administration? I yield back.
