Coming up on June 12th, we are going to have the world's first trillionaire (Elon Musk) after the SpaceX IPO

Coming up on June 12th, we are going to have the world's first trillionaire (Elon Musk) after the SpaceX IPO.

Looking at previous milestones, Bill Gates was the first to $100 billion ($185 billion in today's dollars) in April of 1999. Jeff Bezos was the first to $200 billion in August 2020.

Obviously, the first argument is how much money should sit with individuals as Elon would effectively join the G20 - the richest 20 countries of the world (in GDP) as an individual.

More interesting for me is the story (or system) behind this and what it means for the rest of the partner ecosystem.

How do more billionaires get formed in orbiting this opportunity? (excuse the space pun). How do more multi-millionaires form by rotating around each of these billionaires? And so on...

It is easy to dismiss Elon as a jerk - both in the Steve Jobs sense of management as well as many people's opinions on his foray into politics (DOGE) and acquiring Twitter.

As an analyst, in contrast, we think about algorithms, systems, methods, processes, workflows, and repeatable logic.

The Algorithm was the first book written by someone in Elon's close circle - the ex-President of Tesla about the "system" behind the story. What do we learn from this system? (both the good and the bad). How do we explain it to others?

Author Jon McNeill had already founded and sold six startups when Sheryl Sandberg introduced him to Elon Musk, who was looking for help at Tesla. McNeill was steeped in the lean principles that had made Toyota Motor Corporation a global powerhouse—principles focused on achieving efficiency and optimization by incrementally improving existing systems and processes.

What he learned from Elon at Tesla was its antithesis, an approach that required radical rethinking to explode the status quo, attack complexity, and set seemingly unrealistic goals.

--> Elon called this five-step framework “The Algorithm.”

Fun fact for our channel: - McNeil is also one of early funders/advisors of Cork alongside Datto legend Austin McChord and CEO Dan Candee. Cork is redefining how MSPs approach cybersecurity and financial promises to clients. I am also proud to be a company/board advisor.

Anyway, I don't normally recommend books - but grab this one and read it before June 12th to give you more context behind the scenes:

https://www.amazon.com/Algorithm-Hypergrowth-Formula-Transformed-Lululemon/dp/B0FFG5KFSK

AI won't replace you (in the short term). It will, however, be responsible for getting you fired

Calls being recorded for “quality purposes”, key loggers, mouse tracking, email metrics, badge monitoring, login attempts.

All surreptitious tactics to correlate and report on the productivity of employees.

What is missing? Context.

Every job is different. Top performers may execute their jobs differently when full context is understood.

—> So, what systems have almost perfected context in the past 12 months? LLMs.

That AI agent that sits on your shoulder, reads every email, watches every keystroke, listens to every conversation, analyzes every spreadsheet, records everyone else’s opinion of you.

That “copilot” that has been promised to make you superhuman is also reporting back (to who paid for that agent) the exact contribution you are making to the business.

How many hours are you actually working?

What measurable output comes from those hours?

How many meetings are you attending and not leading, taking away actions, and/or actually completing them?

How many jobs are not directly impacting revenue growth, cost control, client satisfaction, partner enablement, or product innovation?

Layoffs are hitting by the tens of thousands per company almost daily. These aren’t people who managers deem “low performers” (which was always subjective and unfair) but who AI reports aren’t providing an acceptable ROI (with surprising accuracy and getting better each day).

Case in point (in past 48 hours):

The situation at Meta has escalated rapidly as the company prepares for a massive workforce reduction (10% or 8,000 people) while simultaneously rolling out new, highly invasive tracking software.

The convergence of surveillance, imminent job cuts, and labor organizing marks a significant turning point in the technology industry internal culture (and soon to be all industries).

—> This isn’t AI replacing your job. It is AI causing your job loss.

One of the interesting (and unpredictable) side effects of AI may be the resurgence of unionized workforces.

Recruitment flyers are already in bathrooms in the U.S. 🇺🇸 and UK 🇬🇧 at Meta.

Unions first exploded on an international scale between 1877 and 1886 during the Great Upheaval. 

A second, even larger explosion occurred in the Great Depression (and the New Deal in the U.S.) during the 1930s.

Will AI trigger a massive third wave?

Demographics are a fascinating way of predicting future trends, opportunities, and threats.For example, we knew for the last 8 years that millennials would become the #1 buyer in the $6.07 trillion tech industry last year.

--> We also know that China will drop their population in half (1.41 billion to 633 million) by 2100 due to the disastrous One-Child Policy.

The average age is already 40.6 years old and they will be facing a similar economic fate as Japan because of demographics.

We are not only in the AI-race for the next 20 years, we are also in an immigration race as most of the world (minus Africa and some of the Middle East) are not at a 2.1 child replacement rate.

Far from it.

It would also behoove us (as global citizens) to encourage the economic and geopolitical development of Africa to handle the coming population boom.

--> Africa will double in population size by 2050 and the situation is a study in extreme contrast.

The continent is home to the world's most significant demographic "boom" while simultaneously navigating localized crises of violence, disease, and structural instability.

Africa’s population is "chronically young". Half of the citizens in sub-Saharan Africa are under 21 years old. About 12 million enter the labor market every year and only 3 million formal wage jobs are created annually.

This youth bulge can be a demographic dividend if educated and employed, but without opportunities, it becomes a primary driver of social instability and recruitment for extremist groups.

More challenges:

1. Over half of the low-income countries in the region are at high risk of debt distress, leaving little money for "human capital" (schools and hospitals).

2. Traditional foreign aid from the West (ie. USAID has cut upwards of 60% in past year) and China has been falling since the pandemic, forcing African nations to look toward "self-reliance" and diaspora philanthropy.

3. Severe droughts in East Africa have worsened food security, making children even more vulnerable to diseases they might otherwise survive.

--> Analysts tend to call demographics "destiny in slow motion."

Unlike economic forecasts or polling (which can shift with every tweet) demographic data is remarkably "sticky" because the people who will make up the workforce, the taxpayer base, and the buyer markets twenty years from now have, for the most part, already been born.