AI Psychosis Is Real. "You're Absolutely Right, Karen.

"You're absolutely right, Karen." That's the line ChatGPT used to help two people file for divorce. And it's the same line your AI is feeding you every time you ask it a hard question. Kevin Orosz is a high-performance co-host, retreat facilitator, founder of Mystic Misfit, and host of the KO Show. He's running an AI agency in Austin with his partner Nathaniel, has a master's-level psychology background, and just spent the last 90 days going from "anti-AI language guy" to a top 1% power user with a 2,000-document Obsidian knowledge vault and three named agents that adversarially stress-test his ideas. In this conversation, Kevin, Mike, and Ted go deep on the AI psychosis crisis spreading through Reddit threads and dinner tables, why the simple act of positive reinforcement is the human need being outsourced, the operator-grade fix (your agents' base stance should be adversarial), why the moat is no longer speed — it's proprietary data — and why local + Chinese open-source models are the sleeper play once the subsidized compute window closes on June 22. Plus: the Fable 5 launch reaction, the single mom doing $10K MRR with agents from home, the Tony Stark / Jarvis archetype for your AI stack, Kevin's restart-the-build-three-times story, and the biohacking research on why no-tech-at-meals is now table stakes for masculine and marital health. If you're an operator-founder running $500K to $5M, in the AI shift, and starting to feel the FOMO — this one's for you. Key insights from this episode: ▸ AI Psychosis is real: the Reddit Karen / divorce story decoded ▸ The simple act of positive reinforcement is a base human need (and it's being outsourced) ▸ The operator-grade fix: make your agents' base stance adversarial ▸ The moat is no longer speed — it's proprietary data ▸ Why $200/month Claude is heavily subsidized compute (and what happens June 22) ▸ The Tony Stark / Jarvis archetype for your AI stack ▸ The Chinese open-source models nobody is talking about "Not quite my tempo": the Whiplash reframe for AI sycophancy ▸ The biohacking research on no-tech-at-meals and eye contact Chapters: 00:00 "You're absolutely right, Karen." 01:07 Welcome & Meet Kevin Orosz 02:03 What Happens When AI Replaces Your Job? 05:24 Are AI Job Loss Fears Overblown? 08:20 The AI Investment Boom & Trillion-Dollar Race 11:17 Why Entrepreneurs Will Benefit Most from AI 14:37 The Biggest Opportunity for Small Businesses 18:07 AI in Law, Medicine & Regulated Industries 20:20 The New Moat: Proprietary Data 23:10 Why Building Apps Has Never Been Easier 28:22 Speed vs Distribution: What Really Wins 32:50 Personal Branding Is More Valuable Than Ever 35:40 AI FOMO: Keeping Up With Rapid Innovation 39:05 Kevin's Journey from AI Skeptic to Power User 43:12 Why Most People Barely Use AI's Real Power 47:10 Building AI Agents & Knowledge Systems 54:35 AI as a Mirror for Self-Improvement 59:48 Should AI Make Decisions for You? 1:05:30 AI Psychosis & Losing Touch With Reality 1:10:45 Why Human Connection Matters More Than Ever 1:15:20 AI Relationships, Loneliness & Society's Future 1:19:55 Final Thoughts on the AI Revolution Connect with Kevin Orosz : Website: imiloainstitute.com Instagram: @kevinjorosz LinkedIn: @kevinorosz Facebook: @kevinoroszlan YouTube: @KevinOroszSpeaks YouTube: @thefullstackfounders Apple Podcasts: full stack founders Spotify: full stack founders Follow Ted: Website: www.themodernmanpodcast.com X: @TheModernMan8 YouTube: The Modern Man Podcast Instagram: @themodernmanpodcast Facebook: @TheModernManShow Linktree: https://themodernmanpodcast.com/linktree Follow Mike: Websitebledsoe.life YouTube:@MikeBledsoe Instagram: @mike_bledsoe Newsletter: writing