He's talking about whether we're in a simulation (the premise of the Matrix series) or not.
Elon Musk has speculated that we are very likely in a computer simulation and not the original Earth. However, some scientists have said that with current projected technology, it would take more matter than we have in the universe to build a computer that could simulate the universe. Obviously we may discover some technology that vastly improves our computing capabilities, but it would have to be immense for us to stimulate the universe. This casts doubt on the theory that we are living in a simulation.