Slate Money – "The Hyundai ICE Raid" (September 13, 2025)

Main Theme:
This episode, hosted by Felix Salmon with guests Elizabeth Spiers and Emily Peck, dives deep into three major business news stories: the ICE raid on a Georgia Hyundai plant and its international fallout, the dramatic surge in Oracle stock fueled by AI data center contracts, and the unveiling (and critique) of JPMorgan’s new headquarters in Manhattan. The hosts explore the intersection of immigration, foreign investment, political tensions, energy and AI, corporate architecture, and the ripple effects through the US and global economies.

ICE Raid on Hyundai Georgia Plant

Summary of Event

• ICE (Immigration and Customs Enforcement) agents raided Hyundai’s billion-dollar plant in Georgia.
• Senior Hyundai managers (primarily Korean nationals) were arrested for alleged immigration violations.
• The event sparked a diplomatic crisis between the US and South Korea, involving both countries’ presidents.

Key Discussion Points

• Immediate Fallout and Diplomacy:

  • Korean officials were furious about the detainment of their nationals.
  • The US Secretary of State was involved; arrested workers were sent home on a chartered jet.
  • No deportations ultimately; all charges dropped.

• Tensions in US Policy:

  • Contradiction between attracting foreign investment and a hardline on immigration.
  • “[The] Republicans who want investment in the country and the Republicans who want an immigration crackdown are not necessarily the same Republicans.” — Felix Salmon (04:02)
  • State-level confusion: Georgia’s governor had championed the plant yet state police cooperated in the raid.

• Visa Challenges:

  • Unlike some other countries, South Korea lacks streamlined work visa agreements, making skilled migration for corporate projects difficult.
  • The ICE raid happened because ICE interpreted B1 visas maximally, deeming Korean workers as illegal.

• Workforce Realities:

  • Hyundai needed experts with proprietary knowledge and Korean language skills to run the plant—roles Americans can’t fill without proper training.
  • “If you are a Korean manager...you really don’t want to run the risk of all manner of run-ins with Trump goons.”—Felix (08:22)

• Economic Revitalization vs. Immigration Rhetoric:

  • These foreign-led factories bring jobs and economic action to rural America, often revitalizing local economies.
  • Debate over the necessity and impact of foreign managers vs. creating U.S. jobs at all organizational layers.

Memorable Moments

• “...ICE went into this factory in Georgia looking for undocumented immigrants from Spanish speaking countries and they just stumbled upon all these Korean workers.” — Emily Peck (04:29)
• “If Hyundai was an Australian company, none of this would have happened because Australia has a deal…” — Felix (06:40)
• “One of the interesting things...is...how Trump's immigration line is not something that he really has thought through in any meaningful capacity.” — Elizabeth Spiers (08:55)

Timestamps

• Context & summary: 01:52–12:04
• Expert/language workforce discussion: 10:05–12:04

Oracle Stock Surge & The AI Energy Economy

Summary of Event

• Oracle’s stock soared 35% in one day after announcing massive new contracts for AI data center infrastructure, most notably with OpenAI.
• Oracle’s Larry Ellison briefly became the richest man in the world.

Key Discussion Points

• AI Boom Drives Power Demand:

  • Oracle signed a $300 billion cloud contract with OpenAI, requiring 4.5 gigawatts—“two Hoover Dams worth”—of electricity.
  • “The amount of power...that just the OpenAI contract alone is going to require is like two Hoover dams worth.” — Felix Salmon (15:17)

• Is Oracle’s Business Really Special?

  • Hosts question whether Oracle’s ‘plug and play’ model (buying Nvidia chips, building data centers, plugging into the grid) truly deserves trillion-dollar valuations.
  • “Where is the moat?” — Felix Salmon (18:09)
  • Elizabeth points out that scale makes these operations challenging, legitimizing Oracle’s value.

• Cascade to the Broader Economy:

  • Discussion of Larry Ellison’s son (David) buying major Hollywood studios, potentially fueled by AI money.
  • The AI industry’s spending is “incestuous”—the money cycles among infrastructure and AI companies, little trickling to the consumer market.
  • Large AI losses are accepted as “R&D” investments, but the spending is more about hardware and electricity than traditional research.

• Societal & Financial Impact:

  • Surging demand for electricity is driving up consumer energy costs.
  • Oracle’s large debts to finance this expansion put its credit rating potentially at risk.

Memorable Quotes

• “...it seems very incestuous, the AI bubble.” — Emily Peck (22:10)
• “The tail is wagging the dog here.” — Felix Salmon (22:07)
• “...this is just buying electricity to a large degree. And you’re like, that’s not what I always used to think of as R&D expenditure.” — Felix Salmon (22:38)

Timestamps

• Oracle news introduction: 15:17–16:25
• AI/electricity discussion: 16:25–20:00
• TikTok limbo & tech bubble commentary: 20:46–23:51

The New JPMorgan Headquarters

Summary of Event

• JP Morgan unveiled a 60-story, 2.5 million square foot new headquarters at 270 Park Avenue, near Grand Central.
• The building is polarizing, with Felix deeply critical and Emily enthusiastic.

Key Discussion Points

• Building Features & Culture:

  • 19 restaurants (curated by Danny Meyer), luxury amenities, advanced gym (membership fee for staff rationing), high ceilings.
  • Jamie Dimon leads the push to return employees to office life, seeing the flagship headquarters as a competitive asset.

• Architecture and Environmental Concerns:

  • Felix derides its aesthetics and notes the environmental irony: In demolishing the previous LEED Platinum skyscraper (designed by a woman, recently retrofitted for sustainability), JPMorgan replaced it with a denser steel structure—95,000 tons, adding to the carbon footprint despite “green” energy marketing.
  • “They’re making a bunch of green claims for this building...which is all kind of meaningless.” — Felix (33:43)

• Corporate Hubris & Market Timing:

  • Emily recites the “curse” of companies building palatial headquarters prior to downfall (Enron, Bear Stearns, Lehman, etc.).
  • “When a company builds a splashy new headquarters...that's time to short the stock. That is a sign of hubris and everything’s about to come crashing down.” — Emily Peck (36:37)
  • Debate over if flashy new buildings are always derided at first but become beloved, with Felix disagreeing.

• Real Estate Market Dynamics:

  • Only "Class A" (top-tier) office buildings are thriving in the post-2020 market. Older “state of the art” buildings become obsolete quickly and face regulatory/higher emissions costs.

Memorable Moments

• “I think this is the worst new building in New York, if not the world.” — Felix Salmon (29:14)
• “It's a perfect housing for an investment bank.” — Elizabeth Spiers, on the casino-like design (29:52)

Timestamps

• JP Morgan HQ intro/critique: 29:04–31:42
• Environmental/greenwashing discussion: 32:24–34:06
• Hubris of new HQs: 36:02–38:23

Numbers Round

Highlights

• Emily’s number: 9.9% — US poverty rate for adults 65+, misleadingly elevated due to how census measures income (does not account for 401k or IRA withdrawals). (42:31–43:35)
• Elizabeth’s number: $3,600 — Price of a leather workout bag from Alo Yoga, which are trending due to celebrity influence and include “embedded intention crystals.” (44:35–45:58)
• Felix’s number: 63% — Portion of Japanese 18–26-year-olds who haven’t had a drink in six months, suggesting a radical generational shift in habits. (46:33–47:16)

Notable Quotes

• “You can’t really expect that this isn’t volatility as in what goes up must go down. It’s more volatility as in what goes up is like to go up even further.” — Felix Salmon, on electricity prices (24:11)
• “That all of our kids can be brain rotted by AI slop.” — Elizabeth Spiers, on the downstream effects of the AI economy (24:46)
• “It's crystals all the way down.” — Felix Salmon, on the luxury bag trend (46:33)

Timestamps for Important Segments

• ICE raid discussion: 01:52–13:03
• Oracle/AI energy discussion: 15:17–24:54
• JPMorgan Headquarters discussion: 29:04–41:01
• Numbers Round and pop culture: 42:26–47:16

Tone and Closing

The conversation is candid, irreverent, and sardonic, with a strong undercurrent of skepticism about business, tech, and politics. The hosts mix sharp economic analysis with humor and cultural allusions, making complex topics engaging and relatable.

For Slate Plus Subscribers:
Bonus segment teased: "Zuckerberg vs. Zuckerberg: The Defining Lawsuit of Our Age."

Summary crafted for those who want an in-depth yet lively overview of this week’s business and finance headlines and context.