Governor Gavin Newsom of California joins Andrew Ross Sorkin at DealBook to discuss the future of the Democratic Party, his confrontational approach to Trump, and California's role in national politics. Newsom has emerged as one of Trump's most vocal critics, often mirroring the president's own social media language style.

The conversation covers California's economic dominance in AI and technology, with the state housing 32 of the top 50 market cap AI companies and 18% of global R&D investment. Newsom addresses criticism of his state while defending its $4.1 trillion economy and growing Fortune 500 presence.

Newsom discusses his political future, including speculation about a 2028 presidential run, while announcing his upcoming book Young Man in a Hurry set for February 23rd publication. He emphasizes his background as a small business entrepreneur who built 23 businesses with about 1,000 employees.

Democratic Party's Strategic Transformation After Electoral Losses

"We're finally back on our toes, not our back heels. We're finally on the offense" - Newsom describes the party as finally fighting back after appearing weak and out of touch

Newsom identifies key factors in Democratic losses including inflation, interest rates, incumbency issues, Israeli politics, immigration, and the border, calling for a "page 28 analysis" of what happened

"We have to be more culturally normal, we have to be a little less judgmental" and develop a compelling economic vision where people feel included

"If we don't democratize our economy, we're not going to save democracy" - citing that 10% of people own two-thirds of wealth as unsustainable

California's Economic Dominance and Tech Leadership

California houses 32 of the top 50 market cap AI companies and commands 18% of the world's R&D investment, compared to Germany's 21% and China's 22%

The state's economy grew from 6th to 4th largest globally at $4.1 trillion annually, with Fortune 500 companies increasing from 40 to 58 over two decades

Tesla moved its world R&D headquarters back to Silicon Valley at HP Enterprise's old headquarters, adding 10,000 jobs since Elon Musk's departure

Venture capital investment reached $106 billion this year with 68% reinvested back into California, supporting the "finest system of higher education in the world"

Confrontational Trump Strategy and Election Concerns

Newsom adopted Trump's rhetoric style, calling him "seriously demented" and "Piggy" to "put a mirror to what the hell's going on in this country"

"There is normalization of decency, and it was becoming socialized normalized" - defending his inflammatory social media posts as necessary wake-up calls

"You will not have a free and fair election as we know them today in 2026 if Speaker Jeffries is not sworn in" - warning of competitive authoritarianism

Trump federalized 4,000 National Guard and sent 700 active duty Marines to Los Angeles during recent elections, with forces still federalized

Silicon Valley's Political Shift and Corporate Relationships

Newsom acknowledges tech leaders like David Sacks moved toward Trump but suggests "watch that space" regarding potential self-dealing conflicts

"There's nothing equivalent about what's going on in the United States right now as it relates to crony capitalism and self dealing, period full stop"

Tim Cook's ability to call for tariff exemptions represents "crony capitalism" unavailable to small businesses in California

Mary Barra "worked behind our back" with Republicans to gut California's emissions leadership dating back to Ronald Reagan's 1967 tailpipe regulations

2028 Presidential Speculation and Future Leadership

Politico called Newsom "the 2028 front runner" despite years of being "counted out" - "most of my life I have been that guy"

"I'd be lying" if he said he hadn't thought about running for president, but focuses on "meeting this moment" rather than future speculation

Newsom's upcoming book Young Man in a Hurry (February 23rd) aims to "demystify" perceptions versus reality about his entrepreneurial background

Built 23 businesses with about 1,000 employees starting with $175,000 from 13 investors, emphasizing his "passion for entrepreneurialism and free enterprise"