White House Chronicle

News Analysis With a Sense of Humor

Postcard from A Coruña: A Summit in a Spanish City in Ascendency

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I am one of those who believes what Seneca, the ancient Roman writer and statesman, said, “Travel and change of place impart new vigor to the mind.”

I don’t know if the stoic Seneca said that before or after his exile to the island of Corsica by the emperor Claudius.

Anyway, earlier this summer, my husband and I had the opportunity to visit a city in the country where Seneca was born: Spain. Both the city and the purpose of our trip imparted a new vigor to our minds.

We were invited to participate in the Ecosystems 2030 (ES2030) summit, held in A Coruña, a port city on a promontory in the Galicia region of northwest Spain, from June 26-29. The summit is the creation of a man with a vigorous mind: Omar Hatamleh, the head of AI at the National Aeronautics and Space Administration and the executive chairman of ES2030.

The annual summits in Spain — where Hatamleh lived and studied — gather speakers and participants from a wide swathe of professions, connecting the unconnected and spurring ideas. His stated aim for summiteers is for them to ditch linear thinking and “to successfully embrace disruption, transform your organization, and thrive over the next decade.” Hatamleh has used the same formula — cross-industry innovation — for meetings he has organized at NASA.

The agenda for this year’s summit, the fourth of 10, was “Women in Leadership.” And the women who addressed the summit were wonder women from private and public entities including Pilar Manchon, Google; Aylin Uysal, Oracle; Rika Nakazawa, NTT; JoAnn Stonier, Mastercard; Maria Fernandez, Sony Music Entertainment; Deepti Pahwa, an innovation and leadership coach to C-suites and entrepreneurs; Nancy Namrouqa, Jordanian minister of state for legal affairs; and Jennifer Stumm, a concert violist and founder and director of Illumina, a Sao Paulo-based music collective, festival and social group “working for greater equity and goodwill in classical music by young musicians around the world without access to private instruction or mentorship.”

In formal addresses and in conversations at lunches, dinners and in hotel lounges, these women shared their thoughts about new ventures and innovation in the AI age, the future of AI governance, e-commerce, privacy and social media, and even board member leadership. Their talk was of how they are shaping new frontiers not how they shattered barriers in the private and public sectors —refreshing and inspiring.

The summit was a movable feast, convening mostly at the avant-garde Palexco Conference Center, which is located at the city’s port and has a roof that resembles the wings of a giant seabird, the mayor’s office in the neoclassical-style City Hall, built in the early 20th century, and the two-Michelin-starred Pepe Vieira Restaurante & Hotel.

The restaurant and hotel, part of the Relais & Chateaux group, is located “in the upper area of Raxo, the smallest municipality of the municipality of Poio, in Pontevedra,” according to directions on its website.

It was an experience getting to the restaurant, which is about an hour-and-a-half drive from A Coruña through a sea of Galician vineyards and villages where the backyard of every house had wine grape vines. No grape escape.

The website says, “For a better experience in finding ‘the last kitchen in the world,’ follow our instructions, since Google has already gotten lost several times along the way.” That is truth in advising.

Pepe Vieira is located on a terraced hill overlooking the Pontevedra estuary. It is surrounded by woods, au naturel landscaping and “biodynamic” vegetable gardens, enjoyed on the patio or inside the dining room which has huge, picture windows.

Chef Vieira prepares dishes, combining “ancestral local produce, rediscovered through research with historians, scientists and anthropologists” with ingredients from afar. He prepared a variety of small dishes for us, including hake with Albariño lees, tapioca pearls and sorrel oil. His decision to locate the restaurant far from city pollution and his combination of gastronomy and sustainable gardening earned him a Michelin Green Star.

A Coruña is far from the anti-tourism protests in Madrid and Barcelona. While it is one of the chief ports of northern Spain, the country’s second-largest fishing center and has a shipyard for building fishing vessels, it also has a significant real-estate market for vacation homes — and welcomes tourists.

Cruise ships stop there and disgorge passengers who visit the Old Town and the New Town; the city’s churches, from medieval to modern; and notable landmarks, including the Roman Tower of Hercules, an imposing, square-shaped lighthouse dating from the reign of Trajan (98-117 AD). A characteristic feature of the houses is their window balconies, glazed for the Atlantic gales, giving A Coruña the name “Crystal City.”

Spaniards from the south come to this Galician city in the summer for the cool wind and the surf. As with many cities on Spain’s Atlantic coast, A Coruña is a surfer spot — with a bronze statue of two surfer dudes riding the waves in a fountain on a seafront avenue.

Photo Credit: Linda Gasparello

A Coruña has been discovered by the foodies, who have long flocked to San Sebastián, also on the Atlantic coast, close to the border with France. On the last night of Ecosystems 2030, the summiteers dined on some of the tastiest octopus in the city at Pulperia de Melide. The Galician dish of octopus sprinkled with paprika is a favorite of mine.

Seneca insisted on eating moderately, not indulging in luxuries or delicacies. He wrote,“Our aim is to live in accordance with nature, is it not?”

I don’t know if Seneca traveled to A Coruña, called Brigantium under the Romans. But I can imagine him being a happy stoic there.

What Might Happen If Google Is Broken Up

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Alphabet Inc.’s Google has few peers in the world of success. Founded on Sept. 4, 1998, it has a market capitalization of $1.98 trillion today.

It is global, envied, admired and relied upon as the premier search engine. It is also hated. According to Google (yes, I googled it), it has 92 percent of the search business. Its name has entered English as a noun (google) and a verb (to google).

It has also swallowed so much of world’s advertising that it has been one of the chief instruments in the humbling and partial destruction of advertising-supported media, from local newspapers to the great names of publishing and television. All of these are suffering and many have failed, especially local radio and newspapers.

Google was the brainchild of two Stanford graduate students, Larry Page and Sergey Brin. In its short history, it has changed the world.

When it arrived, it began to sweep away existing search engines simply because it was better, more flexible, amazingly easy to use, and it could produce an answer from a few words of inquiry.

Seven major search engines were fighting for market share back then: Yahoo, Alta Vista, Excite, Lycos, WebCrawler, Ask Jeeves and Netscape. A dozen others were in the market.

Since its initial success, Google — like Amazon, its giant tech compatriot — has grown beyond all imagination.

Google has continued its expansion by relentlessly buying other tech companies. According to its search engine, Google has bought 256 smaller high-tech companies.

The question is: Is this a good thing? Is Google’s strategy to find talent and great, new businesses, or to squelch potential rivals?

My guess is some of each. It has acquired a lot of talent through acquisition, but a lot of promising companies and their nascent products and services may never reach their potential under Google. They will be lost in the corporate weeds.

During its acquisition binge, Google has changed the nature of tech startups. When Google itself launched, it was a time when startup companies made people rich when they went public once they proved their mettle in the market. Now, there is a new financing dynamic for tech startups: Venture capitalists ask if Google will buy the startup. The public doesn’t get a chance for a killing. Innovators have become farm teams for the biggies.

Europe has been seething about Google for a long time, and there are moves to break up Google there. Here, things were quiescent until the Department of Justice and a bipartisan group of attorneys general brought a suit against the company for monopolizing the advertising market. If the U.S. efforts to bring Microsoft to heel are any guide, the case will drag on for years and finally die.

History doesn’t offer much guidance about what would happen if Google were broken up. The best example and biggest since the Standard Oil breakup in 1911 is AT&T in 1992. In both cases, the constituent parts grew faster than the parent. The AT&T breakup fostered the Baby Bells — some, like Verizon, have grown enormously. Standard Oil was the same: The parts were bigger than the sum had been.

When companies have merged with the government’s approval, the results have seldom been the corporate nirvana prophesied by those urging the merger, usually bankers and lawyers.

Case in point: the 1997 merger of McDonnell Douglas and Boeing. Overnight, the nation went from having two large airframe manufacturers to having just one, Boeing. The price of that is now in the headlines as Boeing, without domestic competition, has fallen into the slothful ways of a monopoly.

Antitrust action against Google has a few lessons to be learned from the past. Computer-related technology is just too dynamic; it moves too fast for the past to illustrate the future. That would have been true at any time in the past 20 years (the years of Google’s ascent), but it is more so now with the arrival of artificial intelligence.

If the Justice Department succeeds and Google breaks up after many years of litigation and possible legislation, it may be unrecognizable as the Google of today.

It is reasonable to speculate that Google, at the time of a breakup, may be many times its current size. Artificial intelligence is expected to bring a new surge of growth to the big tech companies, which may change search engines altogether.

Am I assuming that the mighty ship Google is too big to sink? It hasn’t been a leader to date in AI and is reportedly playing catch up.

Tech Conquers All, From Making a New Aristocracy to Making Taylor Swift

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I sometimes write about the propensity for technology to be imperial, to conquer and to force itself on the world whether the world wants it or not. With AI taking hold, I have to say, “You ain’t seen nothing yet.”

The wise people who write about international trade say that globalization is dead, killed off by nationalism and protectionism.

Well, you might not be able to get a Big Mac in Russia these days, but I bet they know who Taylor Swift is. Tom Friedman may be a well-read New York Times columnist, but his penetration is nothing compared to that of the influencers on TikTok or maybe even Heather Cox Richardson on Substack.

Then there is the money.

The Computer Age has spawned a new class of ultra-rich, dwarfing the rich of the past, like the Rockefellers, the Carnegies and the Rothschilds. Names like Bezos, Gates, Zuckerberg and Musk will dominate the age.

The descendants of the great internet-based companies will form a new aristocracy with money so abundant that they can influence our lives culturally and politically.

Culture will be shaped by them via what they sponsor. The rich have always sponsored the arts, but now there will be so much money, dwarfing what Carnegie, Getty, Guggenheim and their millions wrought.

If a multibillionaire wants to weigh in politically with big money, both political parties and individual politicians will tailor their offerings to get some of that campaign cash. That is occurring now. But in the future, it will be occurring even more.

One could reasonably argue that the political class has already sold out to its backers. It isn’t the kind of government a candidate will provide so much as how much that worthy candidate raised to get elected.

I suspect we are only beginning to understand the effects of money in politics and how it may reshape the future. 

The people creating innovative technologies today have little idea where their inventions will take them. Did the guys who launched Uber in San Francisco ever think it would go nationwide, let alone sweep the world and wipe out many taxi fleets? One would have believed every county or region would have its own rideshare operator. But no. Uber went global, thanks to the controlling computer technology.

One of the realities of computer-based technology is that it picks winners and losers early on — and winners win bigger than anything seen before. Losers fade away, as they did after the first tranche of tech upheaval: the dot-com bubble.

Computer tech favors monopoly, and the monopoly in each market segment wins.

With AI coming into daily use and likely to command the way we live and work after a few decades, the companies that provide that service today — and will come to control it — will potentially dwarf the existing tech mega-giants. In theory, an AI company can employ AI to consolidate its authority in the field and vanquish competition.

If that happens, a single company will have greater wealth and greater social and political power than any aspirant for global domination ever has had.

The backstory to why early bots are error-riddled and why we get hilarious “hallucinations” is that the companies — the big techies — are so aware of the stakes that they are rushing to market their products before they have perfected them. They calculate that it is better to achieve some market penetration with an inferior product than to wait for the perfected one when a rival has become the bot of choice and technological world conquest is at hand. Never let the perfect get in the way of market share.

Consider the evolution of Google. When it perfected its search engine, it was one of a handful of search engines (remember Jeeves?). But it grabbed market share, and the rest is history. Microsoft’s Bing can do everything that Google does, but it has a third of the users. Google got the reputation and was first past the post.

Where does Taylor Swift fit in? Is she the greatest singer about the travails of love? Almost certainly not, but social media loved her.

Tech loved Taylor, and she is the brightest star ever seen in the firmament of tech-influenced culture — the equivalent in entertainment of world conquest. It is the future.i

Tech Giants Want In on Electricity, Google Has a Foothold

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During the desperate days of the energy crisis in the 1970s, it looked as though the shortage was permanent and we would have to change the way we lived, worked and played to accommodate it.

In the end, it was technology that solved the crisis.

For fossil fuels, 3D seismic, horizontal drilling and fracking were used. For electricity, it was wind and solar, and better technology for making electricity with gas — a swing from burning it under boilers to burning it in aero-derivative turbines, essentially airplane engines on the ground.

A new energy shortage — this time confined to electricity — is in the making. There are a lot of people who think that, magically, the big tech companies, headed by Alphabet’s Google, will jump in and use their tech muscle to solve the crisis.

The fact is that the tech giants, including Google, Amazon, Microsoft, Apple and Meta, are highly interested in electricity because they depend on supplies for their voracious data centers. According to many experts, the electricity demand will increase exponentially as AI takes hold.

The tech giants are aware of this and have been busy as collaborators and innovators in the electric space. They want to ensure an adequate electricity supply and insist it is green and carbon-free.

Google has been a player in the energy field with its Nest Renew service. This year, it stepped up its participation by merging with OhmConnect to form Renew Home. It is what its CEO, Ben Brown, and others call a virtual power plant (VPP). These are favored by environmentalists and utilities.

A VPP collects or saves energy from the system without requiring additional generation. It can be hooking up solar panels and domestic batteries or plugging in and reversing the flow from an electric vehicle at night.

For Renew Home, the emphasis is definitely the home, Brown said in an interview.

For cash or other incentives (like rebates), participants cut their home consumption, managed by a smart meter so that air conditioning can be put up a few notches, washing machines are turned off, and an EV can be reversed to feed the grid.

Brown said that at present, Renew Home controls about 3 gigawatts of residential energy use —  a gigawatt is sometimes described as enough electricity to power San Francisco — and plans to expand that to 50 GW by 2030. All of it is already in the system and doesn’t require new lines, power plants or infrastructure.

“We are hooking up millions of customers,” he said, adding that Renew Home is cooperating with 100 utilities.

Fortunately, peak demand and the ability to save on home consumption coincide between 5 p.m. and 9 p.m.

There is no question that more electricity will be needed as the nation electrifies its transportation and its manufacturing — and especially as AI takes hold across the board.

Todd Snitchler, president of the Electric Power Supply Association, told the annual meeting of the U.S. Energy Association that a web search using ChatGPT uses nine times as much power as a routine Google search.

Google and the other four tech giants are in the electric supply space, but not in the way people expect. Renew Home is an example; although Google’s name isn’t directly connected, it is the driving force behind Renew Home.

Sidewalk Infrastructure Partners (SIP) has invested $100 million in Renew Home. Brown is a former Google executive, and Jonathan Winer is a co-CEO and cofounder of SIP.

As Jim Robb, the president of the North American Electric Reliability Corp., the congressionally mandated, not-for-profit supply watchdog, said recently on the TV show “White House Chronicle,” the expectation that Google will go out and build power plants is silly as they would face the same hurdles that electric utilities already face.

But Google is keenly interested in power supply, as are the other tech behemoths. The Economist reports they are talking to utilities and plant operators about partnering on new capacity.

Also, they are showing an interest in small modular reactors and are working with entrepreneurial power providers on building capacity, with the tech company taking the risk. Microsoft has signed a power-purchase agreement with Helion Energy, a fusion power developer.

Big tech is on the move in the electric space. It may even pull nuclear across the finish line.

Let’s Honor the ‘Thing’ of the Year

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By Llewellyn King

Many publications, following the lead of Time, name a “Person of the Year.” This year, Time chose German Chancellor Angela Merkel.

According to Time, the criteria to be chosen is “the person or persons who most affected the news and our lives, for good or ill, and embodied what was important about the year.”

So at this year’s end, I think it is time for those who make those choices to add a co-equal category: things. Things change everything. They have throughout history, but with increasing rapidity in the last 150 years. And they do it more dramatically now than ever before.

The magazine’s first “Person of the Year” (actually, back then it was “Man of the Year”) was Charles Lindbergh in 1927. He was hailed for his first solo flight across the Atlantic Ocean on May 20-21 that year.

Huge and brave as Lindbergh’s flight was, it was the airplane not the man, that changed aviation.

People change the way we live, but so do things. We now talk about the “Internet of Things,” where our home and work machines are all connected to the Internet. With this connectivity, a farmer will plow his fields from the local diner; and Jeff Bezos, Amazon’s founder and CEO, will have his drones ring the doorbell when they deposit parcels.

The unfolding political year will have much sound and fury. Candidates will promise that if elected, they will change the country for the better. Yet technology might change us more. Ergo, we should have a “Thing of the Year.”

I hereby declare the Internet as the “Thing of 2015.”

Why now? Because this was the first year we stopped being aghast at the changes the Internet is bringing about and simply accepted them as a reality — just as 100 years ago, the automobile went from being a novelty to being part of the fabric of life.

This Christmas was the “Internet Christmas.” We bought more from Web retailers than ever before, and did not marvel at it. It is just “the way we live now.”

For holiday greetings, the Internet began to beat out traditional cards sent in the mail. E-mailing your greetings is less labor intensive, and easier to personalize. Next year, expect more e-cards. If I worked at Hallmark, I would be pushing for additional electronic products before cards become another quaint piece of Americana on display at the Smithsonian, like rotary dial telephones.

I have not welcomed the Internet over the years. I like things the way they were. But this year was seminal for me: I decided the Internet, even the “Internet of Things,” was OK.

Particularly, I like the way the Internet reaches out to the sick, the shut-ins, the truly lonely and the homesick. I can send Christmas greetings to family and friends in Austria, England, South Africa and Vietnam, as I have, from a little device balanced on my lap. Wow!

Yes, with the Internet, you and I can fly across the Atlantic faster than Lindbergh could gun his throttle.

Here are some things that might change your life more than any political figure in the year ahead:

1. A prototype of a driverless car may zoom down a test track.

2. Home 3D printing will spread — so if you break something, you can make a new one.

3. All your appliances and gadgets will start speaking to each other: Using your cell phone, you will be able to defrost a steak in your home refrigerator while you are at work; or you will be able to get a diagnosis by taking a selfie of your inflamed eye.

4. Your electricity may be generated on the roof of your house, and a robot may make your bed.

5. A whole new generation of rockets will offer space rides,

6. New materials, only one-atom-thick, may enable you to fold up your television set and put it in your pocket.

Forget the politicians. Better ask the “things” what is in store; they are starting to talk to each other, and I do not want to be left out of the society of things. — For InsideSources