"You earn reputation, and then you give reputation. If lots of people follow you, and then you follow someone--then even though this [new person] does not have lots of followers," his tweet is deemed valuable because his followers are themselves followed widely...
It seems like pretty straightforward translation of PageRank with "following" as a form of link endorsement. In this vein, see also Daniel's TunkRank.
The interview goes on to mentions the use of geolocation in tweets as a next likely step. Amit also rightly points out that blogs and news organizations are important components of "real-time" search; it's not just tweets.
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