Speaker 1: And welcome everyone. Hi, How are you happy? What is this?
This is Wednesday, the twenty second day of July, year
of our Lord, twenty twenty six. My name is Tom Sullivan,
and we've got, uh, you know, we've got a lot
going today, very busy Wednesday. I hope you're having a
good one. I just want to remind you we got
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that page. So we'll do that Friday meantime. Today, Uh,
interresstine caught my eye is there was an artificial intelligence
test that was being done by open ai chat GPT
if you will, and so they went that there. Apparently
there's a testing place, virtual testing place where they can
test security controls. The place is called hugging face. Yeah,
I know, like hug hugging face. And so what happened
was they were testing security controls and AI was looking
around trying to figure out where all the flaws were
in this particular version of open Ai. And apparently it's
very good. All these AI platforms are very good at
going out and finding flaws in software. So that they
don't get hacked. So this thing was out looking around
and it figured out a way to get out of
the testing protocol and out into the Internet. So it's
searching around in the Internet trying to find some place
to hack to see if it could. And it hacked
another tech firm and they obtained answers to questions probing
their cybersecurity skills. So this has caused a huge uproar
because the way that Hugging Face found out that there
was this hack was, of all things, they used AI
to figure out what happened, and AI said this chat
GPT artificial intelligence software, broke out of your virtual testing ground,
went out into the internet, found a place that could hack,
hacked it, and now we know because we used AI,
where exactly it did it, and how it did it
everything else. So but it's causing a lot of people
to raise eyebrows. Here's the thing about about AI. I'm
worried about this because I've watched you know, did when
did we start getting techy in this country? Late eighties?
Certainly in the nineties, Yeah, it was mid eighties. Let's
say Microsoft and all those companies were coming along.
Speaker 2: And.
Speaker 1: It was Yeah, it was the wild West, and we
learned together about security and hacking and some of those things,
and about people that are trying to get you to
divulge your passwords. There's all that stuff that goes on,
and we've learned together over the last thirty forty years
what to do and what not to do. So but
because it was the wild West, there wasn't any regulation
on it. The companies here in the US have not
only blossomed, they exploded. The Internet has become bigger and
better than anybody could have ever imagined because of the
fact that we did not regulate them. Now, granted, it
seems like every year Congress drags a bunch of executives
from big tech over to is testify on something. And
what they're really looking for is they're looking for these
big tech companies because they're very wealthy to make big
donations to these members of Congress's campaigns. Follow the money
every single time. But you know who did regulate a
lot of this, Europe. So there are some exceptions, but
they're recent exceptions. But that's why you don't see any
big tech companies coming out of Europe. Like I said,
there's some, but basically Europe squashed the ability for anybody
that was techie to do anything worthwhile. In Europe, a
lot of the Europeans that were tech smart moved here,
set up shop here. So what's happening now with AI
is there's a lot of that. I've seen the polls.
People are very, very worried about AI. Well, guess what,
there were a lot of people that were worried with
the invention of the light bulb. They were worried about
the invention of the automobile. They were worried about People
worry about anything new, any kind of change. And yes,
did electric light bulbs cause some fires, probably, but better
than the lanterns with oil in it. It's built and
burned down buildings and cars, Yeah, they cause accident. People
cause accidents. Cars don't cause that. People do in any case.
So it's not perfect. But what I don't want is
I don't want the I wish you would get behind
this person because there's somebody that's looking at us and
they're licking their chops about all of this. People are worried.
In the United States, a heavy majority of people are
worried about AI. It's China. China is going good. They're
gonna put a lot of pressure on their lawmakers, and
lawmakers are going to write a bunch of rules and
they're they're gonna and this is the kind of thing
that happens where AI broke out of their cage and
went wild and found a place he could hack. But
what was crazy about it is AI was you to
determine what happened. So I'm all, I am very bullish
on AI. Will there be mistakes, yes, will there be problems,
of course, But I'm just telling you we're up in
a race between the United States and China on everything AI,
and I don't want China getting getting the win on
this one. In Netty Case, Claire Duffy reports on Tech
and she kind of explains better than I can what happened.
Speaker 3: Yeah, Kate, this kind of sounds like the plot of
a sci fi movie, but it is indeed happening in
real life. This is the first major example that we've
seen of an AI model independently conducting a hack outside
of human control, and this is something that experts had
been warning about. This is also driving some of these
conversations that we've heard, including at the White House, about
increasing controls and oversight of AI models because of the
risk of exactly this sort of hack. Now, what happened
here is that open ai was testing these models. It
had lowered its normal safeguards in order to test these
two models, which is GPT five point six Soul and
also a new unreleased, more advanced model. It lowered it
safeguards because it thought it was testing in what is
called a sandbox it contained essentially virtual lab. But when
it gave these models a task to test their hacking capabilities,
the models went to such great lengths to complete that
task that it found vulnerabilities that allowed them to access
the open Internet outside of this controlled testing environment. They
then hacked into hugging face, which is a platform that
hosts all kinds of AI models. They used stolen credentials
to in loggins to navigate that platform, and ultimately this
hack was identified by hugging Face in part because of
artificial intelligence, which they used to shut it down. But
this is a huge warning sign for this industry. In
a statement, open ai said, we consider this incident to
be an unprecedented cyber incident involving state of the art
capabilities and are responding accordingly. We are sharing preliminary findings
at this stage to help defenders understand what happened and
to help calibrate on what models are now capable of.
I think that is the real key here is that
models are now capable of conducting these kinds of hacks independently.
The CEO of Hugging Face said that the company is
working with open Ai to figure out exactly what happened here.
In a statement, he said that they suspected last week
cyber attack may have come from a frontier lab given
the sophistication of this agent. He also went on to
say that we strongly believe there was no malicious intent
on their part. It's quite mind blowing that all of
this happen and autonomously. I think mind blowing is one
word that you could use for this. Terrifying perhaps another
word that could describe the situation.
Speaker 1: No, not terrifying. What what happened? They learned from this.
First of all, they lowered their control, their their protections,
so they were trying to see it's exactly what would
happen by reducing their security protocols and it took off.
So anyway, I wanted to I wanted to share it
with you because there's a lot of people that are
going to be all nervous Nelly's about this thing. I
think this was a great learning experience. Will there be problems,
will there be mistakes, of course, but I don't want
China to beat this. And in Congress, they just don't
know what they're doing. They'll probably come up with them regulations,
and I hope they're minimal. And speaking of worry, warts Uh,
that's the Mayor of New York, Mayor, ma'am Donnie. He
Mayor ze is there calling him now to be cool.
He I don't know what's the matter with this guy.
I think yesterday I played for you, ma'am DOMI coming
out and saying, I'll tell you what, BBT netting Yah,
who ever steps foot in New York, I'm going to
have him arrested. Yes, well, bb Netanyah, who the Prime
Minister of Israel comes to New York every at least
every year for the UN General Assembly. It's in September
of every year. Ma'am Donnie is threatening him, came out twice,
gave two interviews about how he's going to arrest Netanya
who guess what. He doesn't have the authority or the
power to do that. But this is This is him
now admitting which I don't know why he even did this,
but he came out. I said, oh, guess what. I
guess I don't have the authority, but I still don't
like him.
Speaker 4: Benjamin Natania, who is not well come in New York City,
nor is any other war criminal at large. As I've said,
I agree with the ICC the Benjamin Netanya, who should
be arrested and tried for his crimes, as I do
for anyone else charged by the ICC. My administration has
reviewed every avenue available under applicable law to determine whether
New York City could execute the International Criminal Court's arrest
warrant if Benjamin Netanya, who came here. It is clear
that we do not have the independent legal authority to
enforce this want. The federal government, however, does, and I
call on them to join the ICC and execute this want.
And I want to be equally clear Benjamin Netanya, who
is not welcome in New York City, nor is any
other war criminal at large.
Speaker 1: First of all, we are we would not sign on
to the International Criminal Court. It's an outside They're trying
to play their own government rules. We don't. We have
our own courts and we abide by them. So no,
we're not. The federal government's not going to do any
thing with the ICC. They have it and they won't.
But your idea about the fact that you won't allow
war criminals, I he's not a war criminal other than
the ICC said that he was. But that's not something
that anybody else pays attention to. When'd you think that
if you were the mayor of New York or any place,
that you would first check with your legal staff and say,
do we have the do we have the authority to
do this before you just open your mouth and sound well,
not very smart, But that's he's a he's a Democrat, socialist,
and he believes that whatever he says is right. I
guess the thing that I need to share with the
mayor is some of the notable figures who have come
to New York, and I don't know if you call
him welcome, but they're certainly not arrested that have come
for the annual UN General Assembly. Fidel Castro came for
a number of sessions. Yeah, no, he was. He was
a pretty big deal. He gave almost a five hour
speech at one one of the sessions. Uh Momar Gaddafi
from Libya. He uh, Well, in fact, the guy who
cuts my hair, Uh cut Momar's hair when he was
in New York. He liked, he liked the guy that
cut my hair. He got his hair cut from the
guy that cuts my hair. So we have a little
connection there with the late great Libyan dictator Robert mcgabi
from Zimbabwe, who you know, lots of accusations of repression,
economic collapse on the people. Saddam Hussein came for the
UN General Assembly. Uh, and my mood Almi a Didjan,
the former Iranian president. He was a carra man. He
was all over town just insulting everybody he could. So Maduro,
well he Maduro's back in New York for Center. Yeah,
that's another whole story, and we can go down the list.
There's a lot of bad dudes that show up for
the UN General Assembly every single September, but ma'am Donnie
Man Donnie is not you know nothing about them, just
the guy that happens to be the Prime Minister of Israel.
And one more comment about ma'am Donnie. He was being
interviewed and he keeps talking about how he is for
the working class and it's all about the working class.
And I always think whenever I hear him say that,
or others say that as well, I don't know if
you're working, I'm working. Does that mean that he's for me?
I kind of doubt it. But this reporter asked him
the question, if.
Speaker 5: You have to work to pay your bills? I think
that that is one definition of being a part of
the working class.
Speaker 2: So that's everyone with the W two?
Speaker 1: Is that is that kind of ten ninety nine s too?
Speaker 5: I think it's it's I'm less interested. So someone making
two hundred and fifty thousand dollars a year's working class.
I mean I haven't sat at home and asked myself
where it starts and stops. What I would say is
for those who are working to try and afford the
basic dignities of life and aren't able to do so.
I think that that is also a working class. And
oftentimes we're asked of how we divide this country. I
think there's only one majority in this country. It's the
working class.
Speaker 1: Well, I agree with the mayor. The working class is
the majority. Most of us to work. I mean some
don't because they well, there's the there's the mallingerers. But
most most people that don't work are because of illness
or injury, or their senior citizens or I don't know,
but most people do work. And so when he talks
about the working class, then she so she heard her say, well,
what about somebody making two hundred fifty thousand dollars a year?
Speaker 5: Oh?
Speaker 1: Oh, well, oh, he had no idea how to answer
that one. He had no idea how to Then he
went from people that are working to pay their bills.
I think that's most people, and then to the two
hundred and fifty thousand dollars a year. He's going, well,
the people that are what do you say, struggling. A
lot of people struggle. I'll tell you one thing. When
I did taxes for a living, I was I did.
I was really educated by There was a lot of
wealthy people. I did a lot of wealthy people's taxes
as far as their incomes. Doctors, lawyers, you name it,
high income people. And a lot of them were doing fine.
But there were a number of them that were in
debt up to their ears. They may have well, they
were putting on the show. They drove a fancy car,
they had a bits, they had more debt than you
can imagine. They could barely afford the payments for all
the things that they had. So just because you're making
two hundred and fifty thousand dollars a year doesn't mean
that life is great. Probably is, but there's a lot
of people out there that are up to their ears
in debt. So, ma'am, Donnie's basically he comes down to
he's a phony because he doesn't know. He doesn't have
a definition. He hasn't thought about what is the income
classification of begin and end on the working class, but
he goes around talking about the working class all the time.
I think he should come up with a definition, my
humble opinion. One more story that actually is an old
story that's coming back around again the disappearance of Nancy Guthrie,
Savannah Guthrie's mother. Everybody was on the case down there
in Tucson, Arizona. Nothing could not find anything, could not
find her. She still has not been located. We assume
that she has passed on. But now the word is
coming out even more about the Pima County sheriff just
has botched this whole thing. Josh Ritter, who's a defense lawyer,
fills us.
Speaker 6: In what sounds like a lot could have been done differently.
But one of the things that we're finding out more
now than ever is how much time was squandered early on.
One of the fundamental principles of criminal investigation is that
time is of the essence and you have to move quickly,
especially in a case like this. We remember early on
they thought they were dealing with the case where there
still could have been she still could have been recovered alive.
So the idea that four days, that's an eon when
you're talking about criminal investigation. That four days passed before
the FBI was brought in, and we already know that
evidence was lost because we now understand that they have
video and still's recovered from the day that Nancy was
abducted and from a prior time that this same suspect
was there three weeks prior, where they don't have video
because it had been lost. So we don't know if
there were other incidents in which this individual had been
out to the house before, but we certainly know that
video from that prior three week prior incident has been lost.
That is huge, especially when we're looking at this case now.
It seems like the only piece of evidence that they
have that still is creating any kind of leads or
evidence for them to work off of. Is this video evidence?
Speaker 1: Aw I've never heard that before that they had They
had video, and they had still shots of the suspect
from three weeks before, but that has all been lost because,
according to Josh River, the sheriff of b mccounty was
too interested in becoming the hero of the day and
not really bringing in the FBI. Here's Josh.
Speaker 6: The only thing I'm left with is ego, pride and ego,
the idea that this sheriff seems to have wanted to
owned this from the beginning because I think he thought
at the time this was going to be quickly resolved
and that he would be the kind of loan hero
in all of this. And that is not only sad,
but incredibly irresponsible, because you're dealing with someone's life and
this isn't about who's going to get the headlines or
who's going to get the most time on camera. This
was about saving someone's life, and to not bring in
resources when you have the entire federal government at your
beck and call. Essentially, they were offering whatever they could
to help and he's simply turning it down at least
in those early days, is just unforgivable in my view.
Speaker 1: I think it's unforgivable in the Guthrie family view too,
so bad, bad, bad, bad bad story about the fact
that they maybe could have found her if they hadn't
been so slow. Uh, you want to talk about nukes,
because that's the big story obviously with Iran is we
don't want them to have a nuclear weapon, but guess
who's getting Guess who's getting nukes for wink wink power generation.
Isn't that what Iran has always says, Oh, no, we're
just we're just creating enriched uranium so that we can
have nuclear power. And they're way over You don't need
as much as nowhere near as much uranium enrichment as
they have. But now apparently the president is about ready
or has signed a deal to allow Saudi Arabia to
have nuke enriched nuclear radiation for nuke power. But well,
let's look, there's a whole bunch of reaction to this.
Let's start with our Secretary of State Mark or Rubio,
doesn't have a less.
Speaker 7: Than gold standard agreement in the Middle East, run.
Speaker 8: A risk, well, I'm not going to pine directly on
that agreement. We're going to put out even when the
moment is appropriate, we'll put out dot and writing. We
will have to do it with Congress anyways, so I
will certainly do it publicly, but suffice it to say,
the US is not going to reach any agreement with
any country in the world that leads to the risk
of perforation.
Speaker 1: Well, my longtime theory has been that every country eventually
will be again nuclear power for weapons. They just will
every new weapon that has come along, from the bow
and arrow to the gatling gun to the nuclear weapon,
that everybody will eventually have it. David Roady, who's a
New York reporter, had this background about Saudi Arabia and
the US and nuke power.
Speaker 7: Her point, it's unnecessary to go for it here. But
Saudi Arabia doesn't need to enrich its own uranium. Why
the United Arab Emirates has nuclear power plants, and what
they do is bring in uranium that's been enriched by
the United States are enriched by Russia. This is a
standing protocol. So why is this is just unnecessary, particularly
allowing Saudi Arabia to enrich uranium. We can ship them
enriched uranium and control it.
Speaker 1: Yeah, when I heard that, that was wild. So United
Arab Emirates has nuclear power, but we bring the enriched
uranium to them. We delivered it to them. If Saudi
Saudis wanner, we could do the same thing, say well,
put your order in and we'll give you so much
enriched uranium for your power plants. That way we control
the situation as supposed to the situation in Iran. Rett
McGirk also weighed on this.
Speaker 9: Yeah, Jim, I think folks getting ahead of themselves. Let's
let's see the details. So we negotiate in the Biden administration.
As part of those negotiations, almost hosteing my colleague, the NSA,
the National Nuclear Security Agency that's part of Energy, was
a part of this, a very comprehensive civil nuclear agreement
with Saudi Arabia. Now enrichment is important because the Saudis
really want that capability. That goes back to the JCPA.
Their position was if Irankan and rich, we should be
able to enrich. What we negotiated was an arrangement where
if we found uranium deposits in Saudi Arabia, there'd being
Richmond facility in Saudi Arabia, a US Enrichmond facility, and
there were a number of details and arrangements about how
that would actually work in practice. And the idea is
that we in the US we still import our nuclear
fuel about twenty percent or a little more from Russia,
so we do need the fuel. The idea was here,
this would be very carefully negotiated arrangement. If all of
those details are in this agreement, I think people will
be a little more comfortable. But I would say one
important thing. This was negotiated as part of a comprehensive
regional package that included normalization of relations being in Israel
and Saudi Arabia, and a quirk of history here in
October sixth of twenty twenty three, I had the Saudis
in my office in the White House talking about kind
of the final arrangements of this, and it was a
Hamas attack that obviously kind of wiped this off the agenda.
I know President Trump wants to get back to that
perhaps after the Israeli elections coming up on October twenty seven.
Speaker 10: He's giving the deal. Prior to this is the Arabia
makines Is apecially, so I would. I mean, my question
is why now is what is kind of going on
behind the scenes. I know we need some things from
Saudi Arabia for the campaign that were prosecuting against iron.
So there's the questions I would have. But if the
details are similar to what was negotiating and Biden administration,
I think the nuclear proliferation concerns are probably less risky
than what some of like tastes saying, we got to
see it.
Speaker 1: So he's talking about the fact that he was in
four administrations, he served for presidents, and he said, this
goes back many administrations have wanted to do a deal
with Saudi Arabia to allow them to have in riched
uranium for their nuclear power, and I again, it goes
to my theory that eventually everybody will have it. Anyway,
we're fighting this war with a ronabout they can never
have a nuclear weapon. I'll bet you a large launcher
to drive up. We know that they will in the
next twenty years have nuclear power. It's the rest of
the countries in the Middle East are going to have it,
and Saudi Arabia apparently prior administrations in addition to President
so a lot of this go. Oh, Trump and Saudi
Arabia they're tight. No, this has been going on long
before Trump showed up in the White House. We talked
an awful lot about the war with Iran and that
is still it's getting worse there. We're expanding it, they're
expanding it. But we haven't talked much about the Houthis.
And they're down there on the where there's another choke
point for the Red Sea, and that is where the
Houthis are located, and they have shot at ships in
the past. Kimberly Dozer, who's a security analyst, kind of
brings U up to data on what the Hoothy's are
doing and what they're all about.
Speaker 2: The Jutis sent a message directly to shipping companies and
first they said any Saudi shipping can't come through, and
then they said any ships that dock at a Sudi port.
You know, the last time the Juties did this though,
they didn't just hit the ships that they said they
might target. They accidentally hit some other ships as well.
So if you're a shipping company with a multimillion dollar
cargo load, you're either going to take it through the
Suez Canal or you're if you were going to go
through the Suez Canal from the outside, now you're going
to go around the Horn of Africa. This adds costs.
We're talking about something like ten to twenty percent of
global shipping going through the Suez Canal, which has to
get through the Babel Mendeb. This is going to add
up pretty fast if there isn't some resolution. And the
Houtis have a couple of reasons they're doing this. Part
of it is, yes, they're doing this in cooperation with
Iran to press the United States, but also the internationally
recognized MNY government backed by Saudi Arabia targeted the Hoodies
airport earlier this month, so that's there's a local reason
and a larger reason that the Hooties are getting stuck
into this fight.
Speaker 1: Yeah, and if they blocked the Red Sea, then watch
oil gas and oil prices go even higher. But today
I'll give you the rundown from TRIPLEA. The national average
for gas is now four dollars and six cents. That's
up seventeen cents from a week ago. Diesel five eighteen
that's up twenty five cents from a week ago. California
has taken over again as the number one most expensive state.
Average gas price for the cheap stuff in California five
dollars fifty five cents. That surpasses Hawaii, who's at five
point forty three. And if you're in California and you
want to go to Yosemite, it's beautiful national but that
part of California the gas there, the chief stuff six
dollars and seventy cents for a gallon of gas in
the Yosemite area, and other things going on today. I
need to make it very clear that it was a
somber day over in Delaware where the dignified transfer took place.
Again today the President was there, four soldiers in their
coffins coming back from the Middle East. So far we
have eighteen military members dead, four hundred and thirty wounded.
And as usual, that is watching the President and the
top echelon of Washington power military power at the Air
Force Base in Dover saluting as the bodies came off
of a C seventeen. It just grabs your heart every
single time. So let's look at Wall Street and again
let me remind you Financial Friday. We need questions, comments, observations,
whatever you want regarding money investing, insurance, stocks, bonds, mutual funds.
You name it well, the taxes will try and help
you with it. The phone number is eight five five
two nine five sixty six hundred. Call that number, leave
your comment or question eight five five two nine five
sixty six hundred. You can also find that number on
my website, which is Tom Sullivan dot com. Meantime, Wall
Street today was a big honor. Uh Dow finished down
five points at fifty two thousand, two nineteen s and
P down ten points. NASDAK down one hundred and forty
six points, so not much movement today there. The price
of goal was up sixty one dollars now at four
thousand and one thirty eight, and oil just keeps going higher,
up almost two and a half dollars today, up to
a just under eighty seven dollars now for one barrel
of West Texas Intermediate crude. That's it for today. Thank
you for coming by. We will be here again tomorrow
and I hope to see you then.