Ep 134: Inside the White House and the AI Race with OSTP Director Michael Kratsios - Joe Lonsdale: American Optimist Recap

Podcast: Joe Lonsdale: American Optimist

Published: 2025-11-26

Duration: 18 min

Summary

In this episode, Michael Kratsios emphasizes the urgency for the U.S. to lead in artificial intelligence to ensure economic and national security. He discusses the regulatory environment necessary for innovation and the necessity of a coordinated government approach to technology policy.

What Happened

Joe Lonsdale welcomes Michael Kratsios, the Director of the White House Office of Science and Technology Policy and Senior Advisor to the President, to discuss the critical state of artificial intelligence in America. Kratsios highlights the competitive landscape, noting that the top open-source AI models are currently dominated by China. He raises concerns about the implications for American workers, suggesting that while AI will disrupt existing jobs, it will also create new opportunities that are yet to be defined.

Discussing his background, Kratsios shares insights from his time working with Peter Thiel, where he observed the impact of regulation on technology investments. He believes that the government needs to create a regulatory framework that allows innovative technologies, particularly AI, to thrive. Kratsios emphasizes the role of the Office of Science and Technology as a hub for coordinating tech policy across various government agencies, highlighting the complexity of enabling technologies like drones, which require consensus across multiple federal bodies to operate effectively.

Kratsios outlines the administration's AI action plan, stressing the importance of leading in innovation and research and development. He articulates that winning the AI race is crucial for both economic growth and national security, noting that the U.S. must fund critical developments that will lead to future breakthroughs. The conversation sheds light on the administration's strategic approach to ensure that America remains at the forefront of AI technology, ultimately aiming for a prosperous future for American workers.

Key Insights

Key Questions Answered

Why is the U.S. AI race important for national security?

Michael Kratsios emphasizes that winning the AI race is critical for both economic and national security. He highlights that AI is currently the administration's number one tech priority, indicating the high stakes involved in leading this technological frontier.

What regulatory changes are needed for AI technologies?

Kratios discusses the need for a regulatory structure that allows AI applications to thrive. He believes that the government must do a better job of accelerating technologies out into the world to ensure that innovation is not stifled by regulation.

How does Kratsios view the role of the OSTP?

Kratios describes the OSTP as a hub within the federal government that coordinates technology policy across various agencies. He notes that technology policy in the U.S. is unique due to its spread across multiple departments, making OSTP's coordination crucial for effective implementation.

What is the significance of 'technologies born in captivity'?

Kratios explains the distinction between technologies that are 'born in captivity,' like drones, which require regulatory approval to operate, versus those that are 'born free,' like the internet. This distinction helps frame discussions around where regulation is necessary and where it may hinder innovation.

What are the implications of AI for American workers?

Kratios asserts that while AI will disrupt existing jobs, it will also create new jobs that we cannot yet envision. He underscores the importance of leading in AI to ensure that these technological advancements benefit American workers in the long run.