Archiv für den Monat Juni 2024

Who Gets to Build the Next DeLorean?

Decades after her dad’s iconic sports car time-traveled into movie history, Kat DeLorean wants to build a modern remake. There’s just one problem: Someone else owns the trademark on her name.

Video: Getty Images; Ángel Guerra

In the fall of 2020, bored and restless in Covid-restricted Spain, Ángel Guerra doodled a dream car. The automotive designer, then 38, wanted to make a tribute to his first four-wheeled love: the time-traveling DeLorean DMC-12 that rolled out of a cloud of steam in Back to the Future. The sketch that took shape on Guerra’s computer had all the iconic elements of the 1980s original—gull-wing doors, stainless-steel cladding, louver blades over the rear window, a rakish black side stripe—plus a few modern touches. Guerra smoothed out the folded-paper angles, widened the body, stretched the wheel arches to accommodate bigger rims and tires. After two weeks, he decided he liked this new DeLorean enough to stick it on Instagram.

The post blew up. Gearheads raved about the design. The music producer Swizz Beatz DM’d Guerra to ask how much it would cost to build. Guerra started to think that maybe his sketch should become a real car. He reached out to a Texas firm called DeLorean Motor Company, which years earlier had acquired the original DeLorean trademarks, but was gently rebuffed. The design seemed destined to live in cyberspace forever. Then, by some algorithmic magic, a different kind of DeLorean showed up on Guerra’s Instagram feed in the spring of 2022—a human DeLorean by the name of Kat. Her posts showcased her love for her puppy, hair dye, and above all her late father, John Z. DeLorean. Although the general public often remembers him as a high-flying CEO with fabulous hair and a surgically augmented chin who went down in a federal sting operation, Guerra chiefly thought of him as a brilliant engineer. He sent Kat a message with some kind words about her dad and a link to the design. Kat saw it and got stoked.

Kat DeLorean inside of the original DeLorean car

Kat DeLorean is a frequently stoked type of person. At the time, she had recently dyed her long hair in rainbow colors to, in her words, “create the rainbows in my heart on my head.” Yet for much of her life, her relationship to the DeLorean name had been an unhappy one. When people asked why she didn’t own a DMC-12, she would reply: “If there was an iconic representation of your entire life falling apart, would you park it in your driveway?” She would say, only half-jokingly, that the initials stood for “Destroy My Childhood.” A fortysomething cybersecurity professional, Kat lived in a ramshackle farmhouse in New Hampshire with her husband and a few kids. But when Guerra’s note arrived, she was undergoing a pandemic- and work-stress-induced reevaluation of her life’s purpose. She was dreaming up ways to reclaim her father’s legacy. She wanted to launch an engineering education program in his name.

One thing she insisted she didn’t want was to start a car company. It was a car company, after all, that had ruined her father. But then something happened that changed her mind. In April 2022, the Texas company that had given Guerra the cold shoulder announced it would soon reveal a new DeLorean. Kat kept her feelings about this to herself only briefly. First she drew attention to Guerra’s design, posting it on Instagram. (“A timeless classic given the treatment it deserves!”) Two days later, she made her feelings explicit: “@deloreanmotorcompany Is not John DeLorean’s Company,” she wrote. “He despised you.” Details about the new Texas DeLorean emerged a few days after that: Called the Alpha5, it would have four seats instead of two, would reportedly be built mostly from aluminum rather than stainless steel, and would be available in red. Like many DeLorean purists, Kat hated it.

DeLorean Motor Company Alpha5

As people kept messaging her about the pretty design they’d seen on her Instagram feed—some even offered to help build it—a new plan took shape. Kind of a crazy one. She started to think: Why not build one car and film the process of building it for the engineering students? Eventually that turned into: Why not make several and sell them to fund the engineering program? But then why not …

As Kat’s ideas tend to do, this one snowballed: an engineering program in every state, funded by cars; her mind could easily leap from there to notions of rebuilding the industrial Midwest and rejiggering American work culture in general, the ultimate realization of her oft-stated belief that “everyone should have the same opportunity to live their dream.” John DeLorean had plotted to return to the car market until the day he died. Now, she thought, shouldn’t she give the nerds what they wanted? Fine, she had zero experience running a car company, but she could find people for that, and anyway she’d spent, by her estimate, thousands of hours talking engine design with her dad. She described herself as having “gasoline in her veins.”

Which didn’t really change the fundamentals, including how difficult and outrageously expensive it is to bring a car to market, not to mention the itchy point that the “DeLorean” branding technically belonged to someone else. Never mind all that. Kat was a DeLorean—a name, for good or ill, associated with wild ambition.

John DeLorean

John Z. DeLorean was a suave, swashbuckling General Motors executive who dated young models and palled around with celebrities. He became automotive royalty in the mid-1960s, when he had the idea of sticking a bigger engine into an “old lady” car, thereby reinventing the Pontiac brand and launching the “muscle car” era. But DeLorean felt stifled at GM, and he dreamed of building what he called an “ethical car”: safe, reliable, affordable, and environmentally friendly. He left the company in 1973, the same year he married the supermodel Cristina Ferrare, his third wife. Two years later, he founded the DeLorean Motor Company. And two years after that, DeLorean and Ferrare, who shared an adopted 6-year-old son named Zach, welcomed their baby daughter Kathryn.

The original DeLorean Motor Company’s brief and turbulent history spanned Kat’s early childhood. She has few direct memories of the time her dad spent assembling a team of mavericks and dreamers enticed by the idea of building a whole car company from a blank sheet of paper. With a generous investment from the British government, DeLorean opted to put his factory outside Belfast, Northern Ireland. This was during the Troubles, when the idea of Catholics and Protestants working side-by-side seemed impossible. But, for a time, it worked. “There was a bog, then there was a factory, then there were jobs,” William Haddad, an executive for the company, recalled in a 1985 interview. “It was really exciting as hell.”

It also happened to be an era of inflation and soaring gas prices. An inexperienced workforce and frequent bomb scares further complicated production. Timelines slipped, production costs ballooned, demand collapsed, debt accrued. The company had to recall a couple thousand cars. DeLorean’s original vision, described by one classic car aficionado as a $12,000 “Corvette killer” featuring “unprecedented safety and efficiency attributes,” morphed into a $25,000 vehicle with few of those qualities. Then, in October 1982, with little Kat approaching her fifth birthday, came the world-famous denouement: John DeLorean caught on tape with an FBI informant in a room with nearly 60 pounds of cocaine. The informant had pitched the sale of the drugs as a way to raise enough money to save DeLorean’s struggling company.

Kat was 6 when her dad’s high-profile trial ended in an acquittal in the late summer of 1984, on the grounds of entrapment. Her dad’s company and career were destroyed; as he ruefully asked reporters outside the courtroom: “I don’t know, would you buy a used car from me?” Also destroyed was a kind of childhood idyll for Kat, who went very suddenly from living in an intact, wealthy, and famous New York City family—complete with an apartment on Fifth Avenue worth $30 million in today’s dollars—to being a child of bicoastal divorce. Within the year, her mother was remarried to a television executive, and Kat was mostly living in California. She was allowed 10 minutes a day on the phone with her dad back East, which she extended by enlisting his help with math homework.

Back to the Future came out a year after John’s acquittal. Although a studio official had pushed the filmmakers to use a Mustang for their time machine—Ford was willing to pay handsomely for the product placement—the screenwriter reportedly replied, “Doc Brown doesn’t drive a fucking Mustang.” The selection of the DMC-12 for the honor (cue Marty McFly: “Are you telling me that you built a time machine out of a DeLorean?”) prompted John to write a thank-you letter to the director and screenwriter, who he said had “all but immortalized” his car. Unlike Guerra, Kat has no recollection of seeing Back to the Future for the first time. “It just felt like the movies were always there, always a part of my life,” she told me.

As a teenager, Kat was allowed to choose which parent to live with, and she picked her dad. She spent her high school years on a farm in Bedminster, New Jersey. (The exact site that would later become the Trump National Golf Club Bedminster.) She rode dirt bikes around the vast property, did musical theater in private school, and sometimes endured cocaine jokes from her peers. Her best friend at the time taught Kat how to fix her own computer and inspired her habit of tinkering with the machines.

She modeled for a few years after high school but stayed geeky, spending her nights on hacking competitions. Then, in her early twenties, pregnant with her first child from a brief first marriage, she decided she didn’t want to raise her son in the world she’d known as the daughter of a supermodel. (These days she refers to “that world” of fabulous wealth from an almost mystified remove, as if the visit on the Schwarzeneggers’ private jet and the pajama party with Kourtney Kardashian had happened to someone else.) Instead, she took an IT internship at Countrywide Financial—later to be acquired by Bank of America—and started working her way up. She met a systems engineer named Jason Seymour at a company Christmas party and married him a little more than a month later at a drive-thru wedding chapel in Las Vegas. (Jason had wanted an Elvis impersonator to officiate, but he wasn’t available.) The following year, in 2005, her father died. John DeLorean had spent some of his final months attempting to trademark the name “DeLorean Automobile Company” through a company called Ephesians 6:12, which he’d set up with Kat and Zach as co-owners. (The name is a reference to a biblical verse about struggling “against the rulers of the darkness of this world, against spiritual wickedness in high places.”) But he passed away before application could be approved, so it was officially listed as “abandoned.”

John’s death devastated Kat. Although she remained fiercely proud of her father and kept attending car shows in her capacity as a DeLorean, she went professionally by her married name, Seymour, and maintained a separation between those two identities. But in the 2020s, as the DMC-12’s 40th anniversary approached, John’s name was popping up in documentaries and movies again, and Kat was not happy with some of the portrayals depicting him as a kind of narcissistic hustler. She became determined to get the positive story of John DeLorean out.

As a big “trust the universe” person, she believed it was meaningful that an actual angel (Guerra) had shown up in her life with a design. So through the summer and fall of 2022, Kat’s ambitions took the shape of a car. The model would be called JZD, her dad’s initials, and the company would pour the sales revenue into more education programs—expanding into underserved areas in the industrial Midwest where her dad made his career. She resisted even calling the venture a “car company”; she much preferred to say it was a “dream-empowerment company fueled by automobiles,” in the same way Girl Scouts is a youth-empowerment organization fueled in part by cookies.

Whatever the company was, the New Hampshire farmhouse turned into its de facto headquarters. Kat and Jason took video meetings, recruited talent, and entertained wild ideas about what a new car “with DeLorean DNA” could do. (She joked: “Leave it to me to start a car company right when nepo babies are a thing.”) Could they source sustainable stainless steel for their first car by melting down old appliances? Could they use recycled computer chips to control it? Could they make virtual-reality manufacturing labs for their students, to assemble first a virtual car and then a real one? This was going to be a brand-new kind of car company—among the first ever founded by a woman and likely the first intended to be a not-for-profit.

With these big visions came big promises. In August 2022, Kat posted a screenshot from John’s final automotive business plan, which promised to “shake the automotive world” with a car that would kick off “an affair with man and machine at a price point that will be affordable.” She expressed an intent to follow these wishes with her own car company. The company’s name: DeLorean Next Generation.

DeLorean Next Generation JZD

The news spread, first with an item on Fox News and then in outlets all over the world. Jason was so high on enthusiasm for the new company, and pride in his wife’s ambition, that he dashed off a public promise on the DNG Motors Instagram account. “UNVEILED SEPTEMBER 13, 2023,” read an image of white text on a black background, with Jason’s caption: “DeLorean is back in the Motor City.” He’d just committed them to building a car for the Detroit Auto Show. When Kat saw the post, she flipped out.

Soon afterward, the DeLorean Motor Company in Texas sent Kat a cease-and-desist, demanding she stop using the DeLorean name for her planned car. She and Jason had their lawyer send a reply asserting their rights and expressing their willingness to litigate, and kept going.

DeLorean Motor Company sits in a squat building off a tangle of highways in suburban Houston—you drive past some shabby lots and fields, and then the 1980s spring up around a curve in the road, where a retro-looking DMC logo looms over a row of DMC-12s in the parking lot. You might even spot a JIGAWAT license plate there. Inside the garage/warehouse is an array of disembodied gull-wing doors that evoke a flock of injured birds. Old covers of Deloreans magazines stare out from frames in the showroom.

This is the realm of Stephen Wynne, a Liverpool-born mechanic who has devoted his life to DeLorean the car—to the point of driving his son Cameron to kindergarten in DMC-12s that appeared in Back to the Future. Wynne is less impressed with DeLorean the man, however. “I have more respect for the team that he put together,” he says. “All you hear about is John DeLorean and not the team, and that, to me, is not right.” John was, Wynne said, ahead of his time as an engineer. But: “He made the company, and he also, you know, killed the company in the end.”

It was Wynne who picked up the pieces, effectively securing a monopoly on the small, strange market for DeLorean parts. This was not a decision about preserving someone else’s legacy; it was about securing his own future. “It felt to me like, to control my destiny, going forward, it was to have control of the parts,” he told me in the shop as tools clanked against cars behind us. “If someone was going to get it, I wanted it to be me.” He founded the new DeLorean Motor Company in 1995.

Wynne considers the original buyers of the 1980s DeLorean to have been “entrepreneurial, outside-of-the-box-thinking type people,” with something a “little bit different about them”—less interested in owning a really fast sports car than a piece of cultural history. (The original DeLorean did 0 to 60 in about 10.5 seconds, something my used Hyundai can easily beat.) “We believe that there’s much more wealth in that market these days,” Wynne says.

Over the years, Wynne and team made various plans to serve this market of “modern nerds” with new cars built mostly from original parts. But federal regulators were slow to relax the rules that said these historic replicas had to meet current safety standards, so the revival of the DMC-12—with its lack of airbags, a third brake light, and antilock brakes, for instance—never happened. Still, the company did a thriving business in parts sales and car service. It also made a good buck from the DeLorean brand, which it alternately licensed for apparel, video games, and the like, or zealously protected via cease-and-desists and lawsuits.

Finally, Wynne got to talking with a Tesla alum named Joost de Vries, who’d been involved in previous efforts to electrify the DeLorean. The DeLorean brand, de Vries argued, was so universally beloved, and startup costs for electric vehicles were so much less than even 15 years earlier, that they could partner up to build a brand-new electric DeLorean. Together they formed a San Antonio–based spinoff of DeLorean Motor Company, called DeLorean Motors Reimagined, with the Wynne family as the largest shareholders and de Vries as CEO. (Wynne’s son, the former time-traveling kindergartner, is now the companies’ chief brand officer.) De Vries would lead the development of the car, and funding would come largely from private investors. The company incorporated in Texas in November 2021 (smack in between when Guerra posted his design in late 2020 and when Kat got involved in mid-2022). Wynne and de Vries hired Italdesign, the same firm that had drafted the original DMC-12, to design the Alpha5.

DeLorean Motors Reimagined hoped to build 88 cars to start (88 mph being the speed at which Doc Brown’s DeLorean traveled through time), then about 9,500. The car would be “low volume, high-end, very exclusive, weird, wild technology,” according to de Vries, an imposing, bald Dutchman with the hard-charging swagger of the Silicon Valley executive he once was. “DeLorean was always attainable luxury. My price tag is not going to be attainable luxury.”

Sketches of the DeLorean Motor Company Alpha5

DeLorean Motors Reimagined went from founding to concept car within nine months. The company even bought a 15-second Super Bowl spot in February 2022, cryptically teasing the new car and setting off buzz in the automotive press. The Alpha5 premiered at the Pebble Beach auto show that August. It was only a concept, meant to show off design and technology, not a finished product that could operate on the road. But it was a real object that existed in the real world and was promised to be on sale to the public in 2024.

By that point, the JZD, Kat’s model, was still in the design phase, living for the most part in computers.

The steps to getting a new car from invention to production are standard, whether you’re General Motors, DeLorean Motors Reimagined, or DeLorean Next Generation. On average, the process takes about five years. You have to design and engineer the car; find suppliers for thousands of parts, from wheels to seats to instrument panels; get tools custom-made to stamp out your body panels; and find or build the facility and the workforce to put these things together. This is all before you can actually mass-produce something that resembles the original design.

So it is not at all unusual for a concept car to appear at an auto show and then for nothing resembling it to ever materialize on actual roads. A paint facility alone can set a company back hundreds of millions of dollars. This is in fact why the original DeLorean was stainless steel: John DeLorean couldn’t afford a paint plant. (His marketing genius, Kat says, was that “he made you all think it was intentional.”) John Z. DeLorean had his first prototype by 1976, within about a year of founding his company; the first DMC-12s went on sale in 1981.

Theoretically, then, it was possible to build a one-off JZD concept car—if not a production-ready prototype—in the 11 months Kat and Jason had between founding the company and the 2023 Detroit Auto Show. Kat projected confidence onstage at a Miami auto show in January 2023, while a digital rendering of the JZD zoomed along mountain roads on a screen behind her. But shortly after that appearance, she started getting stressed out about the timeline. Potential manufacturing partners were telling her it was wildly unrealistic. Even getting the doors to open and close the same way every time was its own feat of engineering, and Kat couldn’t tell them whether the car would run on gas, batteries, or both. (She wanted students to make that decision as part of an engineering challenge she had yet to set up.) Kat began to have visions of living the same arc of ambition and collapse that befell her father.

DeLorean Next Generation JZD

This was her preoccupation when she showed up on a warm March 2023 morning in Augusta, Georgia, as a special guest at a “DeLorean Day” event. Well before 8 am, she was stalking around the parking lot in a rainbow plaid skirt and a NERD (Northeast Region DeLorean Club) hoodie with Jason in tow, enthusing to fans about their cars, talking not just with her hands but sometimes with her feet. She literally jumped up and down after a green ’66 Pontiac GTO Tri-Power pulled onto the lot. She inspected the carburetors under the hood and declared that this model, in midnight blue, was her “ultimate dream car,” shout-laughing when the owner confessed to the absurd gas mileage—about 8 miles per gallon in the city—then apologizing, through laughter, for laughing.

By 8 am she was posted up behind a mic to discuss her father and her own plans. “My father was my best friend in the whole world,” she said. “In the summers, I sat and played gin rummy with him on the couch, to the point where there was a worn spot in each place where we sat—a big one and a little one.” She got teary-eyed during the Q&A period when a kid of maybe 10 told her of his plans to be a robotics engineer. He hoped, he said, to make cars that could turn into robots that could “help people and protect humans from like, anything bad that can happen.” She would later tell me that this moment and others like it in Augusta added up to a turning point for her—that “all of a sudden it was like, OK, whatever I have to do, whatever pain I have to go through, if it means building a car company, then I’m going to do it, because I want that moment every day for the rest of my life.”

And when a well-meaning questioner brought up the Alpha5, she spoke carefully through a tight smile. “That is being made by the company DeLorean Motor Company Texas, and they’re not affiliated at all with the family or the original car. And I think that’s about all I’m going to say about that one.”

When I asked Joost de Vries about Kat DeLorean’s efforts a few weeks later, he was less diplomatic. “There’s just something loose in her head,” he said. “Kat’s thing is illegal. And she’s being shut down.” He said in a later conversation that she would be “hammered with lawsuits” as soon as her car appeared at the Detroit Auto Show.

De Vries and I were in a bland tech office park in San Antonio, where he sat in his glass-walled office. He was well aware that the Alpha5 design was polarizing in the DeLorean community. (Some DeLorean forum users had groused that the model just looked like another Tesla with gull-wing doors; one called the whole effort “little more than slapping the name of a beloved car on an unrelated vehicle.”) He also knew the discouraging fate that had befallen many an EV brand before his. Other high-end EV companies such as Lucid, Rivian, and the failed-then-resurrected Fisker had burned through billions and missed production targets, and even market leader Tesla was then struggling to bring its hyped (stainless-steel) Cybertruck to market. DeLorean Motors Reimagined had hit supply-chain snags and cut its planned production run by more than half, to 4,000 cars. But de Vries had something most EV companies didn’t: a brand that much of the world already knew. “The only thing I need to do is put good product into an existing brand,” he said.

The question, of course, is whose brand “DeLorean” really is. Both companies insist on their own rights to use it. And each calls the other’s claim transparently illegitimate.

Stephen Wynne registered and enforced trademarks on “DeLorean” and “DeLorean Motor Company” in the 2000s, as John’s trademarks were canceled or abandoned, and he has renewed and protected them ever since. Furthermore, in a 2015 settlement with John DeLorean’s estate, a woman named Sally Baldwin DeLorean, acting as John’s widow, acknowledged “the worldwide rights of DMC to use, register, and enforce any of the DeLorean Marks for any and all goods and services” related to cars, clothes, and “promotional items”—for which DMC paid her an undisclosed sum. So, yes, it is Kat’s name. But it’s someone else’s trademark, and it’s one she has never tried publicly to contest until now.

Kat’s argument includes that seemingly simple but possibly irrelevant part—it’s her name—but also a convoluted part. She doesn’t believe John actually ever married Sally. Nor do several people I spoke to from John’s orbit at the time, including his son, Zach, none of whom can recall John mentioning a marriage to her. Kat told me she searched for and never found a marriage certificate. Nor did a private detective she hired. (Sally Baldwin DeLorean’s lawyer did not return requests for comment, and attempts to reach her directly via listed phone numbers were unsuccessful.) John’s will names his son as executor. Zach, balking at the prospect of attorney’s fees, never actually filed the will. Kat contends that Sally’s settlement with the DeLorean Motor Company is illegitimate, as she was never in a position to act on behalf of the estate in the first place. What should have happened, Kat thinks, is for the US Patent and Trademark Office to reach out to her and Zach, as co-owners of Ephesians 6:12, about her dad’s pending application.

Then there is the question of infringement, a key standard for which is “likelihood of causing confusion.” Kat’s DeLorean Next Generation is not using the exact same set of words as Wynne’s DeLorean Motor Company, but it is fair to say, based on the Alpha5 question that Kat got in Augusta—and on a well-meaning Reddit commenter who’d tried to buy Kat’s car only to accidentally reserve an Alpha5—that some members of the public are indeed confused. Yet each side accuses the other of doing the confusing.

Both sides have told me a lawsuit is inevitable. No jury decision is guaranteed—determining “likelihood of confusion” itself involves a (confusing!) 13-factor test. But New Jersey trademark attorney Richard Catalina, who is not affiliated with either party, told me that the “stronger legal arguments” belong to the Texas company. “Trademark rights only accrue with use. If you’re not using the mark, you can lose your rights to it,” Catalina said.

“I just learned the. Craziest. Thing,” Kat told me on the phone last summer. She’d recently come across the 1985 interview with William Haddad, the executive who’d found it “exciting as hell” how much good DeLorean Motor Company had achieved in Northern Ireland. Haddad had been crushed by the company’s collapse, and now, in 1985, called it a “scam” and John himself a thief. (John had always denied this and was never convicted of financial misdeeds.) But Haddad was wistful about John’s squandered ambition to locate factories where they could do the most social good. “If only he had done it … Can you imagine it?” Haddad mused in the interview.

Kat knew the Northern Ireland story well already, but Haddad had put John’s goal and his downfall in terms that suddenly clicked for her. She and Jason had been so caught up in the crazy timeline they’d set for themselves that they were risking following precisely her dad’s path—letting one car distract them from their bigger goal of supporting young engineers. “If my car company fails, that’s OK,” Kat said. Her goal had always been to create an education program for students who have “dreams that have been robbed from them,” she said. “And if I can’t do that with this car, then it’s not worth the car.”

One thing was obvious: They were moving too fast. Kat decided she would not unveil the prototype of the JZD until her father’s 100th birthday, in 2025. In the meantime, they would have students build a clay model for Detroit—not a full-size one, as automakers typically do during development, but one about the size of a shoebox—and debut it not at the Auto Show but concurrently at the Detroit Historical Society. Later on, they’d enlist students to help build a prototype of their Model JZD on top of a Corvette C8 platform, picking participants through an online contest in which students described their dreams. After that would come a separate line of cars under something called Project 42, involving a hand build of 42 customized cars. These would have a sales price of probably over a million dollars each (which would also include driving outfits and a motorcycle to go with each car). They’d use the proceeds to fund the education program. So if the Alpha5 was going to be “unattainable luxury” and its likely market rich tech bros, then these custom cars would be yet less attainable and probably serve a market of billionaires.

DeLorean Motor Company Alpha5
DeLorean Next Generation JZD

It’s been two years since DMC Texas and Kat DeLorean both announced their new car projects. Neither has sued the other yet, and both are cagey about plans to do so. Joost de Vries stepped down from the helm of DeLorean Motors Reimagined last October, for reasons the company won’t disclose. A lawsuit against de Vries and other DeLorean Motors Reimagined executives, in which de Vries’ former employer Karma Automotive accused him and others of stealing the EV maker’s intellectual property, was dismissed after a reported out-of-court settlement. Timelines have slipped enough now that Cameron Wynne won’t specify exactly when the Alpha5 will be on sale—he says sometime in 2025. For Kat’s venture, meanwhile, Ángel Guerra continues to revise the design. The car will not be stainless.

DeLorean fans have been burned many times by promises of the next car, and given the delays in both projects, skepticism about both potential new ones pervades DeLorean-related internet forums. (Indeed, as this story went to press in April, a San Antonio paper reported that DeLorean Reimagined had shut down its headquarters; a DMC executive told me the company was just moving locations.) Both companies continue to promise big things. Promises, after all, are part of the DeLorean legacy too.

Source: https://www.wired.com/story/delorean-showdown/

The Woman who showed President Biden ChatGPT

and Helped Set the Course for AI

Arati Prabhakar has the ear of the US president and a massive mission: help manage AI, revive the semiconductor industry, and pull off a cancer moonshot.

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one day in March 2023, Arati Prabhakar brought a laptop into the Oval Office and showed the future to Joe Biden. Six months later, the president issued a sweeping executive order that set a regulatory course for AI.

This all happened because ChatGPT had stunned the world. In an instant it became very, very obvious that the United States needed to speed up its efforts to regulate the AI industry—and adopt policies to take advantage of it. While the potential benefits were unlimited (Social Security customer service that works!), so were the potential downsides, like floods of disinformation or even, in the view of some, human extinction. Someone had to demonstrate that to the president.

The job fell to Prabhakar, because she is the director of the White House Office of Science and Technology Policy and holds cabinet status as the president’s chief science and technology adviser; she’d already been methodically educating top officials about the transformative power of AI. But she also has the experience and bureaucratic savvy to make an impact with the most powerful person in the world.

Born in India and raised in Texas, Prabhakar has a PhD in applied physics from Caltech and previously ran two US agencies: the National Institute of Standards and Technology and the Department of Defense’s Advanced Research Projects Agency. She also spent 15 years in Silicon Valley as a venture capitalist, including as president of Interval Research, Paul Allen’s legendary tech incubator, and has served as vice president or chief technology officer at several companies.

Prabhakar assumed her current job in October 2022—just in time to have AI dominate the agenda—and helped to push out that 20,000-word executive order, which mandates safety standards, boosts innovation, promotes AI in government and education, and even tries to mitigate job losses. She replaced biologist Eric Lander, who had resigned after an investigation concluded that he ran a toxic workplace. Prabhakar is the first person of color and first woman to be appointed director of the office.

We spoke at the kitchen table of Prabhakar’s Silicon Valley condo—a simply decorated space that, if my recollection is correct, is very unlike the OSTP offices in the ghostly, intimidating Eisenhower Executive Office Building in DC. Happily, the California vibes prevailed, and our conversation felt very unintimidating—even at ease. We talked about how Bruce Springsteen figured into Biden’s first ChatGPT demo, her hopes for a semiconductor renaissance in the US, and why Biden’s war on cancer is different from every other president’s war on cancer. I also asked her about the status of the unfilled role of chief technology officer for the nation—a single person, ideally kind of geeky, whose entire job revolves around the technology issues driving the 21st century.

Steven Levy: Why did you sign up for this job?

Arati Prabhakar: Because President Biden asked. He sees science and technology as enabling us to do big things, which is exactly how I think about their purpose.

What kinds of big things?

The mission of OSTP is to advance the entire science and technology ecosystem. We have a system that follows a set of priorities. We spend an enormous amount on R&D in health. But both public and corporate funding are largely focused on pharmaceuticals and medical devices, and very little on prevention or clinical care practices—the things that could change health as opposed to dealing with disease. We also have to meet the climate crisis. For technologies like clean energy, we don’t do a great job of getting things out of research and turning them into impact for Americans. It’s the unfinished business of this country.

It’s almost predestined that you’d be in this job. As soon as you got your physics degree at Caltech, you went to DC and got enmeshed in policy.

Yeah, I left the track I was supposed to be on. My family came here from India when I was 3, and I was raised in a household where my mom started sentences with, “When you get your PhD and become an academic …” It wasn’t a joke. Caltech, especially when I finished my degree in 1984, was extremely ivory tower, a place of worship for science. I learned a tremendous amount, but I also learned that my joy did not come from being in a lab at 2 in the morning and having that eureka moment. Just on a lark, I came to Washington for, quote-unquote, one year on a congressional fellowship. The big change was in 1986, when I went to Darpa as a young program manager. The mission of the organization was to use science and technology to change the arc of the future. I had found my home.

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How did you wind up at Darpa?

I had written a study on microelectronics R&D. We were just starting to figure out that the semiconductor industry wasn’t always going to be dominated by the US. We worked on a bunch of stuff that didn’t pan out but also laid the groundwork for things that did. I was there for seven years, left for 19, and came back as director. Two decades later the portfolio was quite different, as it should be. I got to christen the first self-driving ship that could leave a port and navigate across open oceans without a single sailor on board. The other classic Darpa thing is to figure out what might be the foundation for new capabilities. I ended up starting a Biological Technologies Office. One of the many things that came out of that was the rapid development and distribution of mRNA vaccines, which never would have happened without the Darpa investment.

One difference today is that tech giants are doing a lot of their own R&D, though not necessarily for the big leaps Darpa was built for.

Every developed economy has this pattern. First there’s public investment in R&D. That’s part of how you germinate new industries and boost your economy. As those industries grow, so does their investment in R&D, and that ends up being dominant. There was a time when it was sort of 50-50 public-private. Now it’s much more private investment. For Darpa, of course, the mission is breakthrough technologies and capabilities for national security.

Are you worried about that shift?

It’s not a competition! Absolutely there’s been a huge shift. That private tech companies are building the leading edge LLMs today has huge implications. It’s a tremendous American advantage, but it has implications for how the technology is developed and used. We have to make sure we get what we need for public purposes.

Is the US government investing enough to make that happen?

I don’t think we are. We need to increase the funding. One component of the AI executive order is a National AI Research Resource. Researchers don’t have the access to data and computation that companies have. An initiative that Congress is considering, that the administration is very supportive of, would place something like $3 billion of resources with the National Science Foundation.

That’s a tiny percentage of the funds going into a company like OpenAI.

It costs a lot to build these leading-edge models. The question is, how do we have governance of advanced AI and how do we make sure we can use it for public purposes? The government has got to do more. We need help from Congress. But we also have to chart a different kind of relationship with industry than we’ve had in the past.

What might that look like?

Look at semiconductor manufacturing and the CHIPS Act.

We’ll get to that later. First let’s talk about the president. How deep is his understanding of things like AI?

Some of the most fun I’ve gotten on the job was working with the president and helping him understand where the technology is, like when we got to do the chatbot demonstrations for the president in the Oval Office.

What was that like?

Using a laptop with ChatGPT, we picked a topic that was of particular interest. The president had just been at a ceremony where he gave Bruce Springsteen the National Medal of Arts. He had joked about how Springsteen was from New Jersey, just across the river from his state, Delaware, and then he made reference to a lawsuit between those two states. I had never heard of it. We thought it would be fun to make use of this legal case. For the first prompt, we asked ChatGPT to explain the case to a first grader. Immediately these words start coming out like, “OK, kiddo, let me tell you, if you had a fight with someone …” Then we asked the bot to write a legal brief for a Supreme Court case. And out comes this very formal legal analysis. Then we wrote a song in the style of Bruce Springsteen about the case. We also did image demonstrations. We generated one of his dog Commander sitting behind the Resolute desk in the Oval Office.

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So what was the president’s reaction?

He was like, “Wow, I can’t believe it could do that.” It wasn’t the first time he was aware of AI, but it gave him direct experience. It allowed us to dive into what was really going on. It seems like a crazy magical thing, but you need to get under the hood and understand that these models are computer systems that people train on data and then use to make startlingly good statistical predictions.

There are a ton of issues covered in the executive order. Which are the ones that you sense engaged the president most after he saw the demo?

The main thing that changed in that period was his sense of urgency. The task that he put out for all of us was to manage the risks so that we can see the benefits. We deliberately took the approach of dealing with a broad set of categories. That’s why you saw an extremely broad, bulky, large executive order. The risks to the integrity of information from deception and fraud, risks to safety and security, risks to civil rights and civil liberties, discrimination and privacy issues, and then risks to workers and the economy and IP—they’re all going to manifest in different ways for different people over different timelines. Sometimes we have laws that already address those risks—turns out it’s illegal to commit fraud! But other things, like the IP questions, don’t have clean answers.

There are a lot of provisions in the order that must meet set deadlines. How are you doing on those?

They are being met. We just rolled out all the 90-day milestones that were met. One part of the order I’m really getting a kick out of is the AI Council, which includes cabinet secretaries and heads of various regulatory agencies. When they come together, it’s not like most senior meetings where all the work has been done. These are meetings with rich discussion, where people engage with enthusiasm, because they know that we’ve got to get AI right.

There’s a fear that the technology will be concentrated among a few big companies. Microsoft essentially subsumed one leading startup, Inflection. Are you concerned about this centralization?

Competition is absolutely part of this discussion. The executive order talks specifically about that. One of the many dimensions of this issue is the extent to which power will reside only with those who are able to build these massive models.

The order calls for AI technology to embody equity and not include biases. A lot of people in DC are devoted to fighting diversity mandates. Others are uncomfortable with the government determining what constitutes bias. How does the government legally and morally put its finger on the scale?

Here’s what we’re doing. The president signed the executive order at the end of October. A couple of days later, the Office of Management and Budget came out with a memo—a draft of guidance about how all of government will use AI. Now we’re in the deep, wonky part, but this is where the rubber meets the road. It’s that guidance that will build in processes to make sure that when the government uses AI tools it’s not embedding bias.

That’s the strategy? You won’t mandate rules for the private sector but will impose them on the government, and because the government is such a big customer, companies will adopt them for everyone?

That can be helpful for setting a way that things work broadly. But there are also laws and regulations in place that ban discrimination in employment and lending decisions. So you can feel free to use AI, but it doesn’t get you off the hook.

Have you read Marc Andreessen’s techno-optimist manifesto?

No. I’ve heard of it.

There’s a line in there that basically says that if you’re slowing down the progress of AI, you are the equivalent of a murderer, because going forward without restraints will save lives.

That’s such an oversimplified view of the world. All of human history tells us that powerful technologies get used for good and for ill. The reason I love what I’ve gotten to do across four or five decades now is because I see over and over again that after a lot of work we end up making forward progress. That doesn’t happen automatically because of some cool new technology. It happens because of a lot of very human choices about how we use it, how we don’t use it, how we make sure people have access to it, and how we manage the downsides.

“I’m trying to figure out if you’re going to write a bunch of nice research papers, or you’re gonna move the needle on cancer.”

How are you encouraging the use of AI in government?

Right now AI is being used in government in more modest ways. Veterans Affairs is using it to get feedback from veterans to improve their services. The Social Security Administration is using it to accelerate the processing of disability claims.

Those are older programs. What’s next? Government bureaucrats spend a lot of time drafting documents. Will AI be part of that process?

That’s one place where you can see generative AI being used. Like in a corporation, we have to sort out how to use it responsibly, to make sure that sensitive data aren’t being leaked, and also that it’s not embedding bias. One of the things I’m really excited about in the executive order is an AI talent surge, saying to people who are experts in AI, “If you want to move the world, this is a great time to bring your skills to the government.” We published that on AI.gov.

How far along are you in that process?

We’re in the matchmaking process. We have great people coming in.

OK, let’s turn to the CHIPS Act, which is the Biden administration’s centerpiece for reviving the semiconductor industry in the US. The legislation provides more than $50 billion to grow the US-based chip industry, but it was designed to spur even more private investment, right?

That story starts decades ago with US dominance in semiconductor manufacturing. Over a few decades the industry got globalized, then it got very dangerously concentrated in one geopolitically fragile part of the world. A year and a half ago the president got Congress to act on a bipartisan basis, and we are crafting a completely different way to work with the semiconductor industry in the US.

Different in what sense?

It won’t work if the government goes off and builds its own fabs. So our partnership is one where companies decide what products are the right ones to build and where we will build them, and government incentives come on the basis of that. It’s the first time the US has done that with this industry, but it’s how it was done elsewhere around the world.

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Some people say it’s a fantasy to think we can return to the day when the US had a significant share of chip and electronics manufacturing. Obviously, you feel differently.

We’re not trying to turn the clock back to the 1980s and saying, “Bring everything to the US.” Our strategy is to make sure that we have the robustness we need for the US and to make sure we’re meeting our national security needs.

The biggest grant recipient was Intel, which got $8 billion. Its CEO, Pat Gelsinger, said that the CHIPS Act wasn’t enough to make the US competitive, and we’d need a CHIPS 2. Is he right?

I don’t think anyone knows the answer yet. There’s so many factors. The job right now is to build the fabs.

As the former head of Darpa, you were part of the military establishment. How do you view the sentiment among employees of some companies, like Google, that they should not take on military contracts?

It’s great for people in companies to be asking hard questions about how their work is used. I respect that. My personal view is that our national security is essential for all of us. Here in Silicon Valley, we completely take for granted that you get up every morning and try to build and fund businesses. That doesn’t happen by accident. It’s shaped by the work that we do in national security.

Your office is spearheading what the president calls a Cancer Moonshot. It seems every president in my lifetime had some project to cure cancer. I remember President Nixon talking about a war on cancer. Why should we believe this one?

We’ve made real progress. The president and the first lady set two goals. One is to cut the age-adjusted cancer death rate in half over 25 years. The other is to change the experience of people going through cancer. We’ve come to understand that cancer is a very complex disease with many different aspects. American health outcomes are not acceptable for the most wealthy country in the world. When I spoke to Danielle Carnival, who leads the Cancer Moonshot for us—she worked for the vice president in the Obama administration—I said to her, “I’m trying to figure out if you’re going to write a bunch of nice research papers or you’re gonna move the needle on cancer.” She talked about new therapies but also critically important work to expand access to early screening, because if you catch some of them early, it changes the whole story. When I heard that I said, “Good, we’re actually going to move the needle.”

Don’t you think there’s a hostility to science in much of the population?

People are more skeptical about everything. I do think that there has been a shift that is specific to some hot-button issues, like climate and vaccines or other infectious disease measures. Scientists want to explain more, but they should be humble. I don’t think it’s very effective to treat science as a religion. In year two of the pandemic, people kept saying that the guidance keeps changing, and all I could think was, “Of course the guidance is changing, our understanding is changing.” The moment called for a little humility from the research community rather than saying, “We’re the know-it-alls.”

Is it awkward to be in charge of science policy at a time when many people don’t believe in empiricism?

I don’t think it’s as extreme as that. People have always made choices not just based on hard facts but also on the factors in their lives and the network of thought that they are enmeshed in. We have to accept that people are complex.

Part of your job is to hire and oversee the nation’s chief technology officer. But we don’t have one. Why not?

That had already been a long endeavor when I came on board. That’s been a huge challenge. It’s very difficult to recruit, because those working in tech almost always have financial entanglements.

I find it hard to believe that in a country full of great talent there isn’t someone qualified for that job who doesn’t own stock or can’t get rid of their holdings. Is this just a low priority for you?

We spent a lot of time working on that and haven’t succeeded.

Are we going to go through the whole term without a CTO?

I have no predictions. I’ve got nothing more than that.

There are only a few months left in the current term of this administration. President Biden has given your role cabinet status. Have science and technology found their appropriate influence in government?

Yes, I see it very clearly. Look at some of the biggest changes—for example, the first really meaningful advances on climate, deploying solutions at a scale that the climate actually notices. I see these changes in every area and I’m delighted.

Source: https://www.wired.com/story/arati-prabhakar-ostp-biden-science-tech-adviser/