Frontier AI labs like Anthropic pose an existential threat mainly to 'paperwork'/IP-based businesses (software, banking, accounting, compliance) — not to physical, asset-based businesses like Nike or Walmart, since a model can't manufacture shoes or build a physical supply chain.

36:57What does Nike have to fear from Anthropic? I mean, it's Anthropic is not going to go and make shoes. They're not going to like build a shoe brand. They don't have the, you know, expertise to go approach athletes to do sponsorships. like what what exactly is like anthropic threat threat to Nike or the threat to Nike's IP? Uh and then you once you start thinking about that you start okay what

37:22about Freeport McMoran largest copper gold miner in the world where is the threat um you know what about let's say Lindy which does um all of the materials gases that you use for chemical production what is anthropic threat there to their IP and once you go down that kind of route you kind of like discard all of the physical businesses, right? Like Walmart is not going to be disrupted by

37:52anthropic, right? You get all of the physical businesses out of the way and what you're left with is the pure IP businesses, right? Software, software production, um maybe pharma, maybe pharma, I'm not I'm not so sure. the paperwork businesses, banking, paperwork compliance businesses, um accounting, tax, uh compliance, regulatory, all of these things which are paperwork businesses, right? Those are all of the businesses where, uh you have IP or relationships

38:27built up over years where if you have an anthropic go in and they read through your entire workflow and processing, they can basically absorb all of that into the model. So that is where I think the risk is. So when Alex Karp is talking about this, he's really talking about, you know, he's really creating this aspect of fear and risk, but it's only going to affect a a a a portion of

38:49the economy. And unfortunately, that portion is the portion that has been growing dramatically in the last like 30 or 40 years. The paperwork, white collar, um, you know, type of professions have grown dramatically. The physical, the physical stuff has not grown a lot. physical buildout in the US has not grown that much in the last 30 40 years. Um so I think that's really the perspective that he's coming coming