Pivot Podcast Summary: DOGE’s Chaos Strategy, X’s New Valuation, and Guest Co-Host Katie Drummond
Release Date: February 21, 2025
Hosts: Kara Swisher (New York Magazine) and Scott Galloway (NYU Professor)
Guest Co-Host: Katie Drummond (Global Editorial Director, Wired)
Introduction: Katie Drummond Joins Pivot
In this episode of Pivot, hosts Kara Swisher and Scott Galloway are joined by Katie Drummond, the Global Editorial Director of Wired. Katie brings her extensive experience in tech journalism to discuss the tumultuous intersection of technology, politics, and business in the current U.S. administration.
Wired’s Aggressive Coverage of the Trump Administration and DOGE
Katie Drummond delves into how Wired strategically enhanced its political coverage under her leadership. She shares that upon taking her role in September 2023, she immediately prioritized building a robust politics team to navigate the critical 2024 election year.
“We have to interrogate power structures within the tech industry. That is what I'm interested in doing.” [04:03]
Katie explains that Wired adopted an iterative reporting approach, allowing the newsroom to publish confirmed pieces as stories developed, particularly focusing on the influence of Elon Musk and President Trump.
“We just ran at that story like we ran at that story.” [07:46]
Scott Galloway commends this approach, highlighting the necessity of forcefulness in journalism when tackling significant stories.
“You cannot build businesses on threats. I mean, you can't, but you can actually.” [47:43]
DOGE’s Chaos Strategy: Elon Musk’s Involvement in Federal Agencies
A significant portion of the discussion centers around DOGE, an entity allegedly orchestrating chaos within federal agencies. Katie reveals that DOGE operatives, some with backgrounds in companies like SpaceX and Palantir, are infiltrating various governmental departments without proper vetting.
“These are people with legitimate qualifications. Right. I'm not talking about 19 year olds.” [35:32]
Katie criticizes the recruitment process, noting the lack of thorough background checks and the use of online forums for onboarding.
“It’s this sort of like reckless disregard for any standards in terms of who you're bringing in.” [26:28]
Legal Battles and Privacy Concerns
The episode highlights ongoing lawsuits challenging DOGE's access to sensitive government data, citing violations of the Privacy Act.
“They are trying to avoid any legal scenario where he needs to stop down what he is working on.” [12:54]
Katie expresses concerns about the legal niceties and the potential for inconsistent rulings, complicating efforts to halt DOGE's operations.
“It's an existential question for the country.” [16:48]
Elon Musk and Trump: A Symbiotic Relationship
Katie discusses the intricate relationship between Elon Musk and President Trump, suggesting that while Musk exerts significant influence, Trump remains largely unaware of the depth of Musk’s maneuvers within federal agencies.
“It really feels like Doge is always two or three steps ahead, and the actual White House... is catching up.” [41:29]
Scott adds that the administration appears to be struggling to keep pace with Musk's strategies, indicating a disconnect.
“He likes the story that he's able to tell.” [42:22]
Impact on Companies and the Tech Industry
The conversation shifts to the broader impact on companies like SpaceX and X (formerly Twitter). Katie notes that Musk’s interference has led to instability within these organizations, with personnel being pulled into governmental roles that compromise their operational integrity.
“They’re there to carry out Elon’s asks... which is a terrifying proposition, honestly.” [37:59]
X’s New Valuation and Advertiser Pressures
Scott and Katie analyze X’s current valuation of $44 billion, despite significant operational challenges and a decline in user engagement. They discuss the pressure exerted on advertisers, with reports of threats and legal actions to force continued investment.
“It’s a classic story of corruption, that it's just a kind of thing like that.” [48:33]
Katie underscores the ethical concerns, portraying X as a platform reduced to serving the whims of its owner rather than fostering genuine user engagement.
“If you extrapolate that... this is what is happening to our country.” [48:33]
Audience Engagement: Questions and Polls
The hosts address audience questions, including the viability of China agreeing to the sale of TikTok under the Trump administration. Katie responds with skepticism, emphasizing the dubious legality and underlying motives.
“What’s in it for Beijing is the big question mark I have...” [56:46]
Predictions: A Hope for Change
In the prediction segment, Katie offers a 1% chance that Elon Musk might pivot towards a more progressive stance, distancing himself from his current alignment with far-right ideologies.
“Something will happen and he will pivot back to a more progressive, more left-leaning, Dem centric ideology...” [60:26]
Personal Reflections and Safety Concerns
Kara and Scott inquire about the personal impact of Katie’s reporting, especially amidst threats from powerful figures like Elon Musk. Katie expresses concern for her team’s safety but remains steadfast in her commitment to accurate journalism.
“I worry about them. I worry about myself and my family to a degree.” [63:24]
Katie reassures listeners of the integrity and solidity of their reporting, despite external pressures.
“We stand by the reporting. It is rock solid.” [64:19]
Conclusion: The Path Forward
Kara and Scott commend Katie and the Wired team for their courageous and thorough reporting. They emphasize the importance of maintaining journalistic integrity in the face of escalating challenges posed by influential tech leaders entwined with political power.
“Keep going, keep going for big balls.” [64:23]
The episode wraps up with a reflection on the current state of tech-politics relationships and the critical role of media in holding power to account.
Notable Quotes:
- “We just ran at that story like we ran at that story.” – Katie Drummond [07:46]
- “It really feels like Doge is always two or three steps ahead, and the actual White House... is catching up.” – Katie Drummond [41:29]
- “It’s a classic story of corruption, that it's just a kind of thing like that.” – Scott Galloway [48:33]
- “We stand by the reporting. It is rock solid.” – Katie Drummond [64:19]
Key Takeaways:
- Wired’s proactive and aggressive journalism under Katie Drummond has significantly influenced the coverage of the Trump administration and DOGE.
- DOGE’s infiltration of federal agencies, driven by Elon Musk’s strategies, poses significant legal and ethical challenges.
- The symbiotic yet strained relationship between Elon Musk and President Trump underscores the complexities of tech influence in politics.
- X’s declining user base and mismanagement reflect broader issues of accountability and ethical leadership in tech companies.
- The tech industry shows minimal resistance to politicization, raising concerns about long-term implications for governance and corporate integrity.
- Audience engagement highlights ongoing concerns about international tech relations, particularly with China.
For those interested in the intricate dynamics between technology, politics, and media, this episode of Pivot offers a comprehensive and engaging exploration of the current landscape, bolstered by Katie Drummond’s insightful contributions.