Stephen Schwarzman: Going Big in Business, Investing, and AI | Lex Fridman Podcast #96 | Summary and Q&A

TL;DR

Stephen Schwarzman discusses his involvement with AI and philanthropy, emphasizing the importance of thinking big and making a significant impact.

Key Insights

• 😃 Schwarzman believes in the power of thinking big and pursuing projects that have a substantial impact.
• ❓ Pattern recognition and keen observation are essential for identifying opportunities and innovating.
• 💱 Philanthropy can be a catalyst for positive change, addressing both societal and ethical concerns.
• 👨‍💼 Collaboration and the support of others are crucial for success, whether in business or philanthropy.
• 🏑 There is a need for a healthy and factual discourse about science and technology, particularly in the field of AI.
• 🇨🇳 The relationship between the US and China requires understanding and appreciation of each country's culture and values.
• 🔉 The media and social media have complex roles to play in shaping public discourse, requiring careful management and regulation.
• 👨‍🔬 The US needs to prioritize research and development in AI to maintain its position as a global leader.
• ❓ Entrepreneurship requires resilience and support, both professionally and personally.

Transcript

the following is a conversation with stephen schwartzman ceo and co-founder of blackstone one of the world's leading investment firms with over 530 billion dollars of assets under management he's one of the most successful business leaders in history i recommend his recent book called what it takes that tells stories and lessons from his personal j... Read More

Questions & Answers

Q: What is Stephen Schwarzman's stance on thinking big and taking on consequential projects?

Schwarzman believes in the power of pursuing large-scale projects that have a significant impact. He encourages individuals to think big and recruit others who share the same vision.

Q: How does Schwarzman view the relationship between going big and finding personal happiness?

Schwarzman believes that individuals should focus on doing what makes them happy, whether it's pursuing big and impactful projects or smaller, meaningful endeavors. The key is understanding one's objectives and talent.

Q: How does Schwarzman identify opportunities to go big and make an impact?

Schwarzman relies on pattern recognition and a keen sense of observation. He looks for discordant notes or unusual occurrences that don't fit traditional patterns, as these often lead to significant opportunities for innovation and change.

Q: How does Schwarzman approach philanthropy and AI?

Schwarzman sees philanthropy as an opportunity to address important societal issues and make a positive impact. His involvement in AI, such as his donation to MIT's College of Computing, aims to foster research and address ethical concerns surrounding the technology.

Q: What is Stephen Schwarzman's stance on thinking big and taking on consequential projects?

Schwarzman believes in the power of pursuing large-scale projects that have a significant impact. He encourages individuals to think big and recruit others who share the same vision.

More Insights

• Schwarzman believes in the power of thinking big and pursuing projects that have a substantial impact.

• Pattern recognition and keen observation are essential for identifying opportunities and innovating.

• Philanthropy can be a catalyst for positive change, addressing both societal and ethical concerns.

• Collaboration and the support of others are crucial for success, whether in business or philanthropy.

• There is a need for a healthy and factual discourse about science and technology, particularly in the field of AI.

• The relationship between the US and China requires understanding and appreciation of each country's culture and values.

• The media and social media have complex roles to play in shaping public discourse, requiring careful management and regulation.

• The US needs to prioritize research and development in AI to maintain its position as a global leader.

• Entrepreneurship requires resilience and support, both professionally and personally.

• Personal relationships and maintaining a work-life balance are important for long-term happiness and success.

Summary

In this conversation, Lex Friedman interviews Stephen Schwarzman, the CEO and co-founder of Blackstone, about various topics ranging from entrepreneurship and philanthropy to artificial intelligence (AI) and China. Schwarzman shares insights into his philosophy of going big and highlights the importance of identifying and addressing the biggest problems faced by individuals and society. He also discusses his involvement in philanthropy, particularly his contributions to MIT's new College of Computing, and emphasizes the need for global cooperation and ethical considerations in the development of AI. Schwarzman further provides his thoughts on Chinese culture and the complex dynamics of relationships in China. He concludes the conversation by discussing the need for the United States to invest in AI research and development to maintain leadership in this field.

Questions & Answers

Q: What idea do you believe in that many people disagree with you on?

Schwartzman believes that if you're going to do something, you should do something very consequential and unique, even if it requires operating at a large scale. This approach allows for a greater impact and the recruitment of talented individuals who want to be part of something significant. While some people prefer to focus on smaller endeavors, Schwartzman believes in pursuing big opportunities that can generate more resources and excitement among people.

Q: What are the benefits and costs of going big?

Going big makes it easier to succeed because it provides more opportunities and resources to work with. If you focus on a small endeavor and you're wrong, you have limited options to recover. Going big allows for a concentration of human resources and the ability to attract talented individuals who are excited about working on impactful projects. Financial resources also tend to be more abundant for larger endeavors, creating a virtuous cycle of attracting more talent.

Q: How do you identify opportunities to go big?

Schwartzman describes the process as pattern recognition, where he looks for patterns and changes happening in the world. This can involve observing unusual things that people are saying or focusing on discordant notes that don't fit the traditional patterns. By paying attention to these discrepancies, Schwartzman can gain insights into potential opportunities and potential obstacles. He emphasizes the importance of having a large dataset and being able to recognize patterns that others may overlook.

Q: How do you listen and hear interesting things from people?

Schwartzman values active and attentive listening, paying close attention to what people are saying as well as their intentions. He believes that most people inadvertently give themselves away through their facial expressions, voice, and other nonverbal cues. By observing these signals and actively engaging in conversation, Schwartzman is able to gather valuable information and insights. He believes that intense listening and observation can unveil what people truly think and want, even if they don't explicitly express it.

Q: How do you identify the biggest problem bothering someone and come up with a solution?

Schwartzman suggests putting yourself in the other person's shoes and trying to understand their daily life and the challenges they face. By considering their perspective and looking for unresolved issues, it becomes possible to identify their biggest problems. Schwartzman gives an example of talking with the President of the United States about a significant issue and suggesting multiple interesting solutions. The key is to be genuinely invested in resolving the problem and building trust with the person facing it.

Q: What is the process of launching something new in philanthropy?

Schwartzman approaches philanthropy by looking for opportunities to address big issues and create new organizations or initiatives. Just like in business, he focuses on innovation and finding new ways to make a positive impact on society. The process involves marshaling financial resources, human resources, and developing a compelling vision. At the end of the process, when the vision is clear, someone typically asks for financial support to help make it a reality. Schwartzman sees philanthropy as an extension of his desire to solve significant problems and improve society.

Q: What is your hope for the impact of the College of Computing at MIT?

Schwartzman hopes that the College of Computing will have a transformative impact on both scientific advancement and AI ethics. He believes that it can act as a global convener, facilitating coordination and communication among universities, companies, governments, and the media. By addressing the challenges of AI in a comprehensive and ethical manner, the College can serve as an example for the research community and help establish a more competitive US position in AI. The goal is to ensure that AI technology is not only a force for good but also managed responsibly.

Q: How can we promote healthy discourse about science and AI through media and social media?

Schwartzman acknowledges the challenge of controlling social media and the spread of false information. He believes that social media has become a tool for enforcing minority views onto society, often manufactured and harmful. However, he does not present a clear solution to this problem. Schwartzman mentions that the internet and social media have unintended consequences and calls for caution in AI development and regulation. He emphasizes the need for cooperation among research universities, companies, governments, and the media to ensure a balanced and knowledgeable approach to AI.

Q: What lessons can Americans learn about Chinese culture and mindset?

Schwartzman highlights the energetic and competitive nature of Chinese people as a result of their large population. He emphasizes the importance of relationships in Chinese society and describes a complex web of personal connections that influence many aspects of life. Changing established relationships and making major changes is challenging due to the lack of a functional legal system. Schwartzman believes that Americans should understand the dynamic nature of China and the significance of relationships in decision-making processes.

Q: How can America establish leadership in AI research and development compared to China?

Schwartzman suggests that the federal government needs to be actively involved and provide significant resources for AI research and development. He mentions the importance of a moonshot-style mobilization that involves cooperation across academia, industry, and government. Despite political challenges and budgetary constraints, Schwartzman believes that individual members of Congress understand the need to invest in AI. He calls for a united effort to ensure that the United States remains at the forefront of AI advancements and maintains its competitive edge.

Summary & Key Takeaways

• Stephen Schwarzman, CEO of Blackstone, shares his journey as a successful business leader and philanthropist.

• He emphasizes the importance of thinking big and pursuing projects that have a substantial impact.

• Schwarzman discusses his involvement with AI, including his donation to MIT's College of Computing to promote AI research.