Stephen Schwarzman: CEO and co-founder of Blackstone, one of the world's leading investment firms managing over $530 billion. A philanthropist and signer of the Giving Pledge who donated $350 million to launch MIT's College of Computing.
What this episode covers
Stephen Schwarzman joins Lex Fridman to discuss the philosophy behind going big in business, his pattern-recognition approach to spotting opportunities, and his skill at reading people by listening intensely to what they intend. He frames his philanthropy as launching new organizations to solve big problems rather than simply writing checks, using his $350M MIT gift as the model for advancing AI while addressing its ethics. The conversation explores China's competitiveness and education ambitions, America's need for a federal AI 'moonshot,' the dangers of social media and a politicized public discourse, and his advice for first-time entrepreneurs on not going it alone and protecting personal relationships.
Recommended on this episode
What It Takes
Stephen Schwarzman
“i recommend his recent book called what it takes that tells stories and lessons from his personal journey”— Lex Fridman
The guest's own work
What It Takes
Stephen Schwarzman
“one of the things i i believe in and put it in the the book what it takes”— guest
Also referenced (named, not recommended)
SimCity
Will Wright
“will wright creator of simcity and sims on game design carlos santana on guitar gary kasparov on chess”— Lex Fridman
The Sims
Will Wright
“will wright creator of simcity and sims on game design carlos santana on guitar gary kasparov on chess”— Lex Fridman
Big reveals from this episode
- Schwarzman describes his core edge as seeing 'a piece of white lint on a black dress' that everyone else ignores, then chasing why the discordant detail exists.
- He claims a competitive advantage in empathy: 'i don't think i'm so smart so good so it's not a problem for me.'
- He reframes philanthropy as starting new organizations like a business, not waking up to 'give large amounts of money away.'
- Internet inventors at the MIT launch event admitted 'i think i made a mistake,' which stunned him as a non-scientist.
- A top Chinese official told him every Chinese schoolchild will be taught computer science, versus an estimated 5% or less in the US.
- He defends giving advice to presidents of both parties, including Trump, despite heavy criticism for it.
- He debunks the lone-genius founder myth, noting Google, Microsoft, and Apple each began with two people.
Worth remembering
- Blackstone manages over $530 billion in assets; Schwarzman signed the Giving Pledge to give away most of his wealth.
- He donated $350 million to MIT in 2018 to help establish its new College of Computing.
- He analyzes losing football teams down to three causes: no great quarterback, coach, or general manager who can hire talent.
- His MIT gift was designed to double MIT's computer science faculty and create the first 'AI-enabled university.'
- He warns technology enables a 'tyranny of the minorities' where two or three people enforce their views on the world.
- He argues the US needs a moonshot-style federal mobilization for AI, hampered by trillion-dollar deficits and partisan gridlock.
- He advises young employees to go away with their spouse, no kids, at least every two months to protect the relationship.
- His book closes with the idea that since a small business is as hard as a big one, you should choose one with potential to be huge.