E132: AI Managers, US vs China Analysis, and AI Art w/ Byrne Hobart

Today on Upstream, we’re sharing an episode of The Riff (originally aired on April 1, 2025). Erik Torenberg and Byrne Hobart explore the shifting dynamics of global trade between China and the US, the potential for AI to replace senior rather than junior roles in the workplace, and the economic structure of live entertainment markets like StubHub.

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RECOMMENDED PODCASTS: 

🎙️Investor and writer of the popular newsletter The Diff, Byrne Hobart, and co-host Erik Torenberg discuss today’s major inflection points in technology, business, and markets – and help listeners build a diversified portfolio of trends and ideas for the future. 

Apple: https://podcasts.apple.com/us/podcast/the-riff-with-byrne-hobart-and-erik-torenberg/id1716646486 

Spotify: https://open.spotify.com/show/6rANlV54GCARLgMOtpkzKt 

YouTube: https://www.youtube.com/@TheRiffPodcast

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LINKS:

Byrne’s writing: https://thediff.co

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X / TWITTER:

@byrnehobart

@eriktorenberg

@turpentinemedia

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HIGHLIGHTS FROM THE EPISODE:

• US-China Trade Relations: There's an interesting role reversal where China is now championing free trade while the US has become more protectionist.
• China's Economic Challenges: Demographics are a crucial factor affecting China's economy - an aging population creates financial imbalances.
• AI's Impact on Work Hierarchy: Contrary to common assumptions, AI might replace senior rather than junior roles. While AI isn't a perfect substitute for mentorship, it provides "synthetic wisdom" without requiring equity stakes.
• StubHub and Pricing Dynamics: Entertainment businesses operate as "stacks of monopolies" (artists, venues) monetizing layers of perfect competition.
• AI-Generated Art ("Ghibli-fication"): The massive popularity of Studio Ghibli-style AI image generation demonstrated unexpected demand for AI services.