THIS WEEK IN AI: SpaceX IPO TODAY, AI 1 Satellite, Claude Fable 5

This Week in AI, we discuss SpaceX as a possible buy ahead of a major IPO, focusing on its valuation, Starlink growth, and the company’s plans for space-based AI data centers. 

We also cover OpenAI’s reported data center deal and S-1 filing, Anthropic’s Fable 5 model, and Apple’s WWDC updates on Siri.

------
🌌 LIMITLESS HQ ⬇️

NEWSLETTER:    https://limitlessft.substack.com/
FOLLOW ON X:   https://x.com/LimitlessFT
SPOTIFY:             https://open.spotify.com/show/5oV29YUL8AzzwXkxEXlRMQ
APPLE:                 https://podcasts.apple.com/us/podcast/limitless-podcast/id1813210890
RSS FEED:           https://limitlessft.substack.com/

------
TIMESTAMPS

0:00 SpaceX IPO Frenzy
3:19 AI Data Centers in Space
8:38 Starlink’s Explosive Growth
14:26 Hardware Scaling Advantage
17:00 Valuing SpaceX’s Future
22:09 OpenAI’s Gigawatt Gamble
26:40 Fable 5 and Safety
29:35 Siri’s Big Comeback
33:18 Closing Thoughts and Reactions

------
RESOURCES

Josh: https://x.com/JoshKale

Ejaaz: https://x.com/cryptopunk7213

------
Not financial or tax advice. See our investment disclosures here:
https://www.bankless.com/disclosures⁠

Creators and Guests

Host

Ejaaz Ahamadeen

Host

Josh Kale

What is Limitless: An AI Podcast?

Exploring the frontiers of Technology and AI

Josh:
The question on everyone's minds, should you buy the SpaceX IPO?

Josh:
By the time you are hearing this, chances are SpaceX is about to go public or

Josh:
they have just gone public at what is going to be the largest IPO in history.

Josh:
And it's not even close. I think we have very strong takes and opinions on where

Josh:
SpaceX goes. I find the question that everyone is asking me is,

Josh:
should I buy? Is this overvalued?

Josh:
It's going to be trading, I mean, right now, close to $2.1 trillion beforehand.

Josh:
That's an outrageous valuation.

Josh:
And I feel very confident that we have some pretty good takes that are going

Josh:
to point in the direction of

Josh:
actually yeah not only is it a good buy in fact it's undervalued and a lot of

Josh:
the news that we got this week from the s1 from the new spacex releases backs

Josh:
that up so there's a lot of really strong prevailing wins pushing spacex forward

Josh:
and we are going to now address the question should you buy spacex shares should

Josh:
you get invested in the ipo and more importantly why.

Ejaaz:
Yes, the answer is yes. But before

Ejaaz:
we get into it, let's talk about the numbers of the IPO very quickly.

Ejaaz:
So they're raising $75 billion, which is three times larger than the largest

Ejaaz:
IPO that has happened so far. That was from Saudi Aramco back in 2019,

Ejaaz:
and they raised just under $30 billion.

Ejaaz:
This is roughly around 3x that, but the demand for the $75 billion raise is

Ejaaz:
already 4x, as you're seeing on the screen.

Ejaaz:
There's over $250 billion worth of demand with one institution or a couple of

Ejaaz:
multiple institutions offering up $10 billion chunks just to get involved here.

Ejaaz:
Now, if you're looking at like the price per share, roughly,

Ejaaz:
SpaceX's S1 prospectus has put it at around $135 a share.

Ejaaz:
Now, what's interesting about this is typically with an IPO prospectus,

Ejaaz:
you provide a range, you provide a range and you try and find where the match is.

Ejaaz:
SpaceX just went right to the high end of that

Josh:
Range and said it's.

Ejaaz:
$135 per share, which values it at $1.75 trillion.

Ejaaz:
But recent reports from Financial Times and Bloomberg says that this number

Ejaaz:
is actually now close to $162 per share, which gives them a crazy $2.1 billion valuation.

Ejaaz:
Now, the demand for this thing, Josh, is absolutely insane.

Ejaaz:
They reserved, I think it was around 30% of the share allocation that they're

Ejaaz:
IPOing with for the retail, for the regular average person. And then that was

Ejaaz:
distributed to the likes of financial institutions and banks like Charles Schwab,

Ejaaz:
as well as brokers such as Robin Hood and

Ejaaz:
The demand initially required you to have like something crazy,

Ejaaz:
like half a million dollars in your bank account in some cases to get access to this thing.

Ejaaz:
But they reduced that kind of like limit. But it is the most in-demand thing.

Ejaaz:
SpaceX is the most in-demand company in general, like whether it's just to buy

Ejaaz:
the IPO or whether it's just to like work there. It is a crazy scene that we

Ejaaz:
haven't seen before. Largest IPO raise ever.

Josh:
Yes. And it is also by far the most accessible IPO ever. We mentioned this in

Josh:
a previous episode, but 30% of the entire share float is being made available

Josh:
for the public, for retail, as a part of this IPO.

Josh:
This is three to five times more than the average, and that means that a lot

Josh:
of people are able to participate. So there's a chance if you're watching this,

Josh:
you've actually been allocated IPO shares of SpaceX at the listing price.

Josh:
You don't have to pay that premium.

Josh:
We're going to see the market making happen today as you're watching this to

Josh:
see what it's actually going to launch at.

Josh:
But I suspect a lot of people watching

Josh:
this episode are actually already shareholders and owners of SpaceX.

Josh:
And that's such a cool thing that everyone is able to participate.

Josh:
Now, in terms of the valuations of SpaceX, why we believe this is undervalued,

Josh:
why we believe SpaceX is going to be such a remarkable company, there's a few pillars.

Josh:
The first is Starlink. It is internet and space from the sky.

Josh:
The second is manufacturing, their ability to manufacture Starship and get payload

Josh:
to orbit at a very low cost per kilogram.

Josh:
And the third, which is one that I really want to talk about right now,

Josh:
is AI data centers in space.

Josh:
We've talked about this a lot. what does this look like? How does it work?

Josh:
Well, earlier this week, we finally got an answer, and it comes in the form

Josh:
of a satellite named AI-1.

Josh:
AI-1 is the satellite that SpaceX is going to park on Starship,

Josh:
send into orbit and actually put these things into space. And they're going

Josh:
to be training data centers. They're going to be beaming data back down to earth.

Josh:
And now we finally have a rendering and we have some specs on what it's going to look like.

Josh:
In terms of power, there is 150 kilowatt peak with 120 kilowatt average on each

Josh:
one of these satellites for reference.

Josh:
That's about 100 American homes worth of power per satellite.

Josh:
And then we're getting about 70 kilowatts per ton. So that's the efficiency

Josh:
part of the launch metrics where,

Josh:
The more energy we can get per ton, the cheaper it costs. It's lowering those costs.

Josh:
We have compute slots that are interchangeable. And I think this is a really

Josh:
underrated part is the GPU modules that you're seeing on the screen on the animation

Josh:
we were just showing, they're actually hot swappable.

Josh:
So you could have NVIDIA chips, you can have Google chips, you could have Amazon chips there.

Josh:
What they're going to test this with initially is going to be NVIDIA's Vera

Josh:
Rubin platform. That's going to be on version one of these things.

Josh:
And in terms of the radiator because clearly no one believes that spacex is

Josh:
capable of figuring out thermodynamics in space given the fact that they have

Josh:
how many thousands of satellites currently operating in there well they figured

Josh:
it out they said they're going to have 110 square,

Josh:
meter liquid radiator and basically it's just gigantic sails that we're seeing on screen right now,

Josh:
to dissipate the heat into deep space deep space is a huge place even if you're

Josh:
in low earth orbits geosynchronous orbit and the wingspan of those will extend

Josh:
to about 70 meters wide which is wider than a Boeing 747.

Josh:
So this is AI data centers in space. When we say that, this is what it looks like.

Josh:
This is how it's going to function. It's a really big deal.

Ejaaz:
I want to shine a bit more light on this satellite because previously,

Ejaaz:
like Elon has just made bold claims saying that, you know, the valuation that

Ejaaz:
we're raising SpaceX at now at a $2.1 trillion valuation is primarily based

Ejaaz:
on AI data centers in space.

Ejaaz:
And then they kind of signed a few deals recently with Google and Anthropik

Ejaaz:
saying, yeah, they're going to be buying these data centers in space,

Ejaaz:
but we still didn't know how. Now we have the answer and we have a bunch of

Ejaaz:
the numbers and how it's built. Now, to be clear, what does this satellite look like?

Ejaaz:
Picture a refrigerator that you have at home with 70 meter wings.

Ejaaz:
This thing is 95% wing, basically.

Ejaaz:
And that refrigerator is essentially a GPU server rack.

Ejaaz:
It stores around 72 NVIDIA GB300 GPUs. And the total compute power that it has

Ejaaz:
is around 150 kilowatts. Now, immediately after announcing the satellite,

Ejaaz:
Elon also stated that he's filed to launch 1 million of these data center racks,

Ejaaz:
these satellites, these AR-1 satellites into space.

Ejaaz:
If he is able to pull that off, the total compute power that will be orbiting

Ejaaz:
in space will be around 120 gigawatts.

Ejaaz:
That's around 3 to 4x of the total data centers that currently exist on the

Ejaaz:
entire surface of Earth right now.

Ejaaz:
So that is a hell of a lot of compute, but more so currently there's around

Ejaaz:
14,000 satellites in total existence across every single other company in low orbit space right now.

Ejaaz:
So Elon is like aiming for like multiples more of that for this particular satellite.

Ejaaz:
Now, the wingspan is really important. You must be thinking like,

Ejaaz:
you know, 70 meters is absolutely ridiculous.

Ejaaz:
Radiation, you need to disperse the heat. It's kind of like hard to do that

Ejaaz:
in space. In fact, it's impossible to do that in space. So you need some kind

Ejaaz:
of like really ingenious cooling mechanisms. That's what that wingspan is for.

Ejaaz:
Yes, it is large, but also

Ejaaz:
You're in space. You have all of that space to be able to do that.

Ejaaz:
And the way that these satellites are designed is different to the ground data

Ejaaz:
centers in the sense that they're going to be beaming lasers between each other

Ejaaz:
to form an interconnected grid that they can transfer data between each other.

Ejaaz:
And that is the sole mechanism that is required to train and inference models,

Ejaaz:
which is the entire point around SpaceX.

Ejaaz:
Now, it's important to understand when you're looking at the valuation,

Ejaaz:
when you're looking at the price, you might be thinking, well,

Ejaaz:
I don't know if this is overvalued.

Ejaaz:
It kind of seems like overvalued, even though I like what Elon is doing,

Ejaaz:
you have to understand that the whole premise is you're getting three companies

Ejaaz:
for one share. It's SpaceX, yes, to be the kind of like highway to space.

Ejaaz:
But then you have like the payloads, which is like all these GPUs that they're

Ejaaz:
going to be training on the sun's energy, becoming a Kardashev type one civilization,

Ejaaz:
which all sounds grand, but like

Ejaaz:
we now have the numbers and the mechanism to be able to pull that off.

Ejaaz:
And then you have the model itself under XAI. And then you have the distribution

Ejaaz:
through social media platform, through app stores and all that kind of stuff.

Ejaaz:
And it's not like Elon is depending primarily on his own companies to service

Ejaaz:
all this demand for Grok entirely.

Ejaaz:
He's signed major deals in the last, I think, three weeks with Anthropic,

Ejaaz:
Google, and Cursor, which equates to around $56 billion per year.

Ejaaz:
So the previous critics were like, I don't know if SpaceX is going to be profitable in general.

Ejaaz:
Now we have the answer, like all this money that's been coming from essentially

Ejaaz:
neocloud payments for Elon's existing colossus one two and three data centers

Ejaaz:
on earth is paying for itself it's paying for this entire expedition

Josh:
Oh it's an absolute monster of a company and now i want to talk about a second

Josh:
pillar because we've seen ai1 what that looks like what data centers in space

Josh:
look like we also have visual graphics of

Josh:
the new startling satellites and we've been talking about these new startling

Josh:
satellites for a long time now version two and most recently version three which

Josh:
is going up on starship and the

Josh:
stats and analytics between these two comparing them is pretty remarkable the

Josh:
the first generation of this, version 1.5 of Starlink, had 24 gigabits per second download, which,

Josh:
pretty small. If we look at version two of the satellites, which are what's

Josh:
available today, that's what's going up in the Falcon 9 rockets,

Josh:
the smaller ones, those have about 96 gigabytes per second, and they're able

Josh:
to deploy about 27 of those per launch.

Josh:
So that gives you about a total per launch of 2,600 gigabits per second.

Josh:
Now, when you look at version three satellites of Starlink, that's where the

Josh:
numbers get pretty silly.

Josh:
It's a 20 times multiple per launch on bandwidth relative to version two this

Josh:
is enabled with starship we talk about starship all the time.

Josh:
They've been doing really successful test runs they're going to continue that

Josh:
program once it starts becoming reusable they're going to put these satellites on it

Josh:
and it's going to deliver 61 000 gigabits per second to the internet that is

Josh:
60 satellites that is a 20x multiple that is how you get to a true worldwide

Josh:
web that exists in space and when you think about what spacex is doing here

Josh:
they're creating a high bandwidth clone of the internet that exists here except

Josh:
in space What happens with the internet here?

Josh:
We actually run wires underground through the oceans to connect the world.

Josh:
If we have satellites, you remove a lot of the threat vectors,

Josh:
you remove a lot of the sensorability, you create this truly open and accessible

Josh:
network that's not only available to anyone with infrastructure,

Josh:
but available to anyone with access to the sky.

Josh:
And building that and making that available to everyone is such a remarkable

Josh:
business. And we've seen that reflected in the Starlink subscriber numbers.

Josh:
We have a chart here that shows the Starlink growth.

Josh:
And it has been the most perfect exponential chart I think I've probably ever

Josh:
seen in my life. And it is the Starlink subscriber growth.

Josh:
As of when is this? May 23rd.

Josh:
It is now sitting at 12 million users. And you could see they've been adding

Josh:
an exponential increment. I mean, the latest 2 million users were added only

Josh:
in the last 81 days. They're averaging 25,000 and climbing.

Josh:
So Elon and the Starlink team, they just recently revealed on an interview that

Josh:
they published a few days ago, the new version of these Starlink terminals,

Josh:
which are even smaller, even higher bandwidth, even more accessible in terms of price.

Josh:
And it's just this unbelievable service that it's going to be a no brainer not

Josh:
to have. If you ever require Internet anywhere that doesn't need fiber optics,

Josh:
you should be a Starlink subscriber. And that's what we're seeing in the growth.

Josh:
So it's really it's an unbelievable company.

Josh:
Starlink is one of those pillars that's just like it's it's crazy what they're

Josh:
doing and no one else can come close to this we

Josh:
we have blue origin which huge fan of i really hope they figure it out but their

Josh:
rocket just exploded on the launch pad last week and their whole program set

Josh:
back and they're the only ones that were close

Josh:
even if everything at blue origin worked as perfectly as they hoped for they're

Josh:
still five years behind at minimum probably 10 this is a full decade lead they

Josh:
have so there's essentially a monopoly on space that spacex owns

Josh:
and as it becomes more on demand to send mass to orbit, there's only one company

Josh:
that can do it. And they can do it damn well.

Ejaaz:
So this might be a crazy take, but Elon's superpower

Ejaaz:
actually it's not a crazy day this is obvious is scaling hardware from zero

Ejaaz:
to one better than anyone else on the entire world he's done it with electric

Ejaaz:
cars he's doing it with robots and now he's doing it with space rockets now

Ejaaz:
there's another advantage that he has which translates directly from that

Ejaaz:
Starlink right so you just mentioned that um you can repurpose starlink's production

Ejaaz:
lines to make this new ai1 satellites in fact arguably it's easier see with

Ejaaz:
when you're creating these SOLID-X satellites, they have this phased

Ejaaz:
Array antenna, which basically is meant to speak to the dishes that are on Earth

Ejaaz:
to communicate and beam this internet back down to Earth.

Ejaaz:
That is a really tricky thing to produce, but a satellite itself is fairly easy.

Ejaaz:
Now, with the AI-1 satellite, it doesn't need this phased array antenna.

Ejaaz:
In fact, you just need the laser projections to be able to communicate and talk

Ejaaz:
with each other. I mentioned it earlier, like transferring data,

Ejaaz:
training your model, inferencing the model, that is arguably easier to do.

Ejaaz:
And so Elon already is not starting from scratch here. Normally, he does zero to one.

Ejaaz:
He's kind of starting from 0.5 to one to be able to pull this off.

Ejaaz:
Now, in terms of timelines, I think he's aiming for the end of 2027 to have

Ejaaz:
a full gigawatt worth of these AI-1 satellites out in space.

Ejaaz:
So this is a very real thing. The timelines are, in my opinion,

Ejaaz:
much shorter than we think.

Ejaaz:
And he already has some of the world's leading AI labs committed,

Ejaaz:
at least in theory on paper and contractually, to pay and purchase access to

Ejaaz:
these things. Like you mentioned earlier, these AI-1 satellites are GPU interchangeable.

Ejaaz:
It's not just built for NVIDIA, although that's the primary kind of case right now.

Ejaaz:
You can fit TPUs, you can fit Amazon Tranium in the future.

Ejaaz:
He's meant to be the tall man, the transporter for all these GPUs to be put

Ejaaz:
out there to kind of absorb all of that sun's energy and train whatever model.

Ejaaz:
He's kind of like agnostic when it comes to that. And I think That is one of

Ejaaz:
the biggest bull cases for SpaceX as I see it today.

Josh:
Yeah, think about how difficult it has been to build a data center.

Josh:
You need the, what is it, land power shell in order to get a data center set up.

Josh:
And it is so remarkably difficult to get the approvals, to get the public sentiment

Josh:
to turn positive, to figure out where to source the energy from.

Josh:
It is this incredibly complicated process that's difficult and no one wants to deal with.

Josh:
And if you could just go over to Elon and say, yo, bro, I got a couple gigawatts

Josh:
that I need in orbit. Can you send them for me in the next few months?

Josh:
That is such an easy outcome and one that i think everyone will want to to use

Josh:
because why wouldn't you and

Josh:
i want to circle back to the ipo and why i said earlier in the show that

Josh:
a spacex should be the most valuable company in the world we we barely even

Josh:
talked about xai and we barely even talked about the other entities that exist

Josh:
underneath it but the idea is that as as ai continues to expand and continues to take up

Josh:
more of what we do on a day-to-day basis it's very much accelerating in that

Josh:
world of bits that we talk about

Josh:
a lot it's able to do ones and zeros very effectively and very efficiently

Josh:
the difficult thing now the bottleneck shifts to the physical world this world

Josh:
of atoms where you have to actually build things you have to create the physical manifestation of.

Josh:
This ai to to allow it to be embodied or to give it enough energy and resources

Josh:
to train itself to become this agi the super intelligence and when it comes

Josh:
to manufacturing when it comes to real world engineering

Josh:
there is really no better team in the world than spacex in terms of hardware

Josh:
engineering and when i look at other engineering teams who are really good at

Josh:
creating physical objects in the real world manufacturing factories which are

Josh:
actually the product and the factories produce these goods and services but

Josh:
building the factory is the hard part

Josh:
i also look at tesla and tesla has done a remarkable job at building and manufacturing

Josh:
these objects at scale and what is tesla now working on they cut down their model s and their x line.

Josh:
In exchange for Optimus, the humanoid robot, that humanoid robot is going to scale very quickly.

Josh:
That humanoid robot paired with Grok and XAI as the orchestrator is going to

Josh:
build this like very autonomous capability of actually physically manufacturing

Josh:
things in the real world.

Josh:
SpaceX and Tesla are probably going to merge together.

Josh:
In the case that those two companies come together, there is no instance in

Josh:
which they do not become the most valuable company in the world so long as they deliver on the promise.

Josh:
And I think the way you look at these companies, the way you validate these

Josh:
companies is you kind of like look at the roadmap and you say,

Josh:
are the products and services that they offer in the future going to be significantly

Josh:
better than they are today?

Josh:
And if the answer is yes, then the idea is that the company should be significantly

Josh:
more valuable to match the added value that they're going to increase.

Josh:
I very strongly feel that way. We have Starship. We have Optimus, the humanoid robots.

Josh:
If just those two things work and nothing else works, the amount of value that

Josh:
will be unlocked is unimaginable. It's really hard to fathom how large these

Josh:
companies can get. And we have this perceived limit of what a market cap of a company can be.

Josh:
NVIDIA is close to $6 trillion or something. But to imagine a company reaching

Josh:
$10, $20 trillion, $30 trillion doesn't seem unreasonable when you think about

Josh:
the scope and scale of a company like Tesla, of a company like SpaceX merged

Josh:
together under the rule of Elon Musk.

Josh:
It's just this unbelievable opportunity that finally the public has access to.

Josh:
And that's why I am particularly excited to invest in the SpaceX IPO.

Ejaaz:
I think for the longest time, the SpaceX IPO has been based on a lot of visionary

Ejaaz:
ideas, kind of belief and this undying faith in Elon.

Ejaaz:
But I do want to touch more on like what the potential numbers might look like

Ejaaz:
to make that multi-trillion dollar valuation that you're talking about,

Ejaaz:
Josh, an actual reality.

Ejaaz:
So there's two kind of perspectives I want to share here.

Ejaaz:
So number one, Hamid over here

Ejaaz:
shared his breakdown of what each of these satellites basically equate to.

Ejaaz:
So if you launch one of these AI-1 satellites out into space right now,

Ejaaz:
today, it's the equivalent of basically half a rack of GPUs that you currently

Ejaaz:
find in a data center here on Earth. So it's around 120 to 150 kilowatts, it's around half a rack.

Ejaaz:
Now, today's data centers, let's say it's worth like one gigawatts worth of compute.

Ejaaz:
That's the equivalent of 4,000 racks at around 250 kilowatts.

Ejaaz:
So you would need to launch 8,000 of these AI-1 satellites into space to be

Ejaaz:
able to equate to one data center, one gigawatts worth of compute.

Ejaaz:
And Elon is targeting that by the end of 2027, which is a lot sooner than most...

Ejaaz:
People would have expected. Now, there's a lot of costs that go in this.

Ejaaz:
The average launch costs, actually, you know, if you're being kind of like medium

Ejaaz:
to kind of like conservative is around $10 billion just for like the launch

Ejaaz:
costs and not the materials at all.

Ejaaz:
Now, Elon's whole idea is that he's going to bring these launch costs down pretty

Ejaaz:
dramatically over the next three years.

Ejaaz:
And at three years in, he's saying that it'll be more cost effective than building

Ejaaz:
a data center here on Earth.

Ejaaz:
And so if we do napkin math with that in mind, right, three years from now,

Ejaaz:
or maybe less than three years from now, a Vera Rubin rack right now,

Ejaaz:
which is like NVIDIA's latest GPUs that they're rolling out,

Ejaaz:
is worth around $8 million.

Ejaaz:
Now, if you couple that with the launch costs at around 200k launch cost per

Ejaaz:
rocket, which is what Elon's aiming for, we are going to hit at around $10 million

Ejaaz:
to put a single Vera Rubin rack out in space.

Ejaaz:
So $12 million on the ground, $10 million in space.

Ejaaz:
You can see a world where the cost economics end up becoming favorable,

Ejaaz:
especially if you're not just using Vero Rubin racks, you might be using cheaper

Ejaaz:
Google TPU racks or Amazon Tranium.

Ejaaz:
So the idea is this is a big bet. Now, if you're purchasing this IPO,

Ejaaz:
you aren't just in it for the near term, you're in it for this next three to

Ejaaz:
honestly 10 year window, where

Ejaaz:
AI data centers in space become a much real thing, much more real thing.

Josh:
Yeah, and this is a roundup. So we're going to wrap this up in a second,

Josh:
get some more news. But the final point that I want to make is you mentioned

Josh:
the cost of reusability for Starship.

Josh:
If you look at the Falcon 9 rocket, there's two stages, and only one of them

Josh:
is actually reusable, so there still is a higher cost.

Josh:
With Starship, 100% of the rocket is reusable, and the actual cost to launch

Josh:
it in the case that 100% is reusable is just the cost of fuel.

Josh:
And the cost of fuel on a Starship rocket is actually cheaper than the cost

Josh:
of fuel on something like a Boeing 747. Because...

Josh:
78% of it, I think, like almost 80% is just liquid oxygen. Liquid oxygen is

Josh:
like very abundant. We breathe it all the time.

Josh:
It is just a liquefied form of oxygen with the remaining 22% being just liquid methane.

Josh:
And methane is like, it's the stuff you like cook on your grill with.

Josh:
So this isn't very expensive. It's not crazy to think that they will need a

Josh:
lot of money to launch these things. And the idea is that that will bring the

Josh:
cost per kilogram down to sub $100.

Josh:
And that means if you are, it does, if you want to go to space,

Josh:
depending on how many kilograms you are, you just divide that by 100 and you're on your way.

Ejaaz:
It's a cheap ticket weight so i'm meant to lose some weight now

Josh:
So yeah go on a diet so you can get a cheaper ticket to space but that's i think

Josh:
that's kind of like the bulkiest why i'm excited i have to ask you as we wrap

Josh:
up this section before we get into the next one

Josh:
which is going to be open ai building this like gigantic data center is are

Josh:
you going to be participating in the spacex ipo are you excited about it are

Josh:
you going to buy some what are your general thoughts.

Ejaaz:
So if robin hood and my broker allows me to which i've signaled interest.

Ejaaz:
Absolutely, I will be as this goes live today.

Ejaaz:
My thoughts in general are I wouldn't bet against Elon when it comes to hardware

Ejaaz:
scaling. He's less proven on the software side of things.

Ejaaz:
This is just me trying to be balanced here, but he has proven himself time and

Ejaaz:
again on hardware scaling.

Ejaaz:
And SpaceX is solving a hardware issue, one of the biggest hardware issues or

Ejaaz:
challenges ever with AI data centers in space.

Ejaaz:
As everyone knows, I'm a big AI fan. So if he's able to pull this off.

Ejaaz:
More compute equals better models, better inference.

Ejaaz:
He'll be able to serve agnostically any AI company. It's an obvious buy for me.

Josh:
Yeah, I think I'm pretty aligned. Me too. I have been so I got lucky in the

Josh:
case that I had some private shares from about five years ago.

Josh:
So I have been a SpaceX holder. I continue. I plan to continue that going forward.

Josh:
I also requested some at IPO.

Josh:
I'm also just planning to continue to buy like, dude, I can get a 10 plus trillion

Josh:
dollar company for 2 trillion bucks.

Josh:
Sign me up. I think the people who are a little more time sensitive,

Josh:
who are looking to get a return sooner, that might be a bit iffy.

Josh:
I mean, $2.1 trillion is high. There's still a lot of variables that need to be worked out.

Josh:
There's a chance that this thing goes public, shoots up, and then falls for a little while.

Josh:
I don't know. We're not traders. But I think as long-term investors,

Josh:
as someone with a low time preference, SpaceX at $2 trillion, two thumbs up for me.

Josh:
Let's keep the train going. Anyways, we probably should move on.

Josh:
This is a roundup. This is Friday. We got to fill the people in on what's going on.

Josh:
EJ, there's some news from OpenAI about a new gigawatt data center.

Josh:
We're back on Earth, by the way. We're talking about data centers on Earth.

Josh:
What's the deal with this new OpenAI news?

Ejaaz:
Yeah, so we're out of the world of single-digit gigawatts now,

Ejaaz:
Josh. We're in double digits.

Josh:
Run it up expeditiously.

Ejaaz:
OpenAI has basically signed a major deal for a 10-gigawatt data center.

Ejaaz:
For context here, the largest gigawatt data center, which is what Elon's building

Ejaaz:
with Colossus 3, is aiming to be around 1.5 to 2 gigawatts worth of data centers.

Ejaaz:
For a single site to own 10 gigawatts of compute, you need roughly around $500 billion.

Ejaaz:
Now, obviously, OpenAI, they haven't IPO'd yet. They might be pretty soon.

Ejaaz:
They don't have that kind of money. So they're being backstopped by their best

Ejaaz:
friend, SoftBank, and of course, NVIDIA.

Ejaaz:
Jensen Huang is stepping up to backstop this entire data center campus in Ohio.

Ejaaz:
It's going to be an absolute gargantuan beast of a site.

Ejaaz:
And it kind of follows in the trend of

Ejaaz:
Sam Altman and OpenAI specifically, who have been incredibly aggressive about

Ejaaz:
acquiring as much compute as they can to serve their models.

Ejaaz:
Now, if you compare them to Anthropic, you might notice sometimes when you're

Ejaaz:
using clawed models, the performance gets a little degraded,

Ejaaz:
or you might get limited, or you might hit your limits really quickly.

Ejaaz:
That's because Anthropic has fairly been conservative with compute,

Ejaaz:
and that's given them advantages in other areas.

Ejaaz:
OpenAI has been the opposite, and that's why it's always kind of like relatively

Ejaaz:
free and flexible to use as much of your rate limit at OpenAI as you can,

Ejaaz:
which has led to arguably a better developer experience, a better coding experience,

Ejaaz:
a better LLM experience in general.

Ejaaz:
And Sam is doubling down on that bet. He believes in the future,

Ejaaz:
the demand for AI is going to outstrip the amount of available compute supply

Ejaaz:
that he has currently on Earth.

Ejaaz:
He is kind of not on good terms of the alarm, you could say.

Ejaaz:
They recently just got out of a court case.

Ejaaz:
So he's probably not going to be using data centers in space anytime soon.

Ejaaz:
So he's trying to secure as much ground space as he can on this new site.

Ejaaz:
Now, what worries me a little about this is just the pure amount of money that

Ejaaz:
you need. Now, obviously, this is going to be done in phases.

Ejaaz:
10 gigawatts of computers is going to take absolute years to spin up.

Ejaaz:
But it's an important bit of news that I think kind of lays into this next headline.

Ejaaz:
Josh, I don't know if you saw this, but OpenAI has confidentially filed for

Ejaaz:
an S1. They are going to be IPO-ing relatively soon.

Josh:
OpenAI is copying SpaceX with data centers. They're copying SpaceX with IPOs.

Josh:
It doesn't work with Elon. All right, I'm getting the trend.

Josh:
Yeah, but it seems like this is actually official now.

Josh:
I hope they can build that data center. That would be amazing.

Josh:
But we do have a official filing of a confidential S1.

Josh:
And there was also a leaked all hands news report that I read that said Sam

Josh:
is kind of using this as an option.

Josh:
There is the option to go public soon. But depending on how their model progress

Josh:
goes over the next few months, they will then make that determination.

Josh:
His perspective is that the world will meaningfully change in the sense that

Josh:
they do get kind of like this runaway AGI self-fulfilling loop type thing.

Josh:
And he wants to be a private company in the case that that does happen sooner

Josh:
rather than later. This is some pretty...

Josh:
Big grand visions that they're dealing with so we'll see but now they do have

Josh:
the option they have confidentially filed someone out there is reading through

Josh:
this and probably having a field day understand the internals of how this company

Josh:
actually works so that's pretty exciting news.

Ejaaz:
Yeah and there was another bit of news that uh open ai reportedly is looking

Ejaaz:
to slash the cost or prices to their subscriptions which is kind of a change

Ejaaz:
in the directional trend that we've seen from anthropic um

Ejaaz:
google actually this week cut their prices as well i think we're starting to see,

Ejaaz:
we're starting to reach a point where all these AI models, as good as they are,

Ejaaz:
are starting to become more commoditized.

Ejaaz:
They kind of all do the same things. The leap between the prior version and

Ejaaz:
the current version isn't as large as it used to be, like, say, a year back.

Ejaaz:
And OpenAI is taking the first step to being competitive towards Anthropic and

Ejaaz:
Google. So Google slashed their access to their AI studio to about $20 a month

Ejaaz:
for their cheapest thing. I think OpenAI is planning to do the same.

Ejaaz:
And I'm guessing, like, Anthropic and OpenAI are going to get into some kind of a bidding war.

Ejaaz:
OpenAI kind of like taking its time to go public, as Sam suggested in that leaked

Ejaaz:
memo, is very interesting to me because you see Anthropik and SpaceX kind of

Ejaaz:
like racing to raise as much capital as they can.

Ejaaz:
And if Sam wants to pay for a $500 billion data center, he kind of like,

Ejaaz:
I'm confused where he's going to get the money from. Maybe he's just going to

Ejaaz:
keep borrowing privately.

Ejaaz:
But it's just a unique case where OpenAI is kind of breaking away from the pact.

Ejaaz:
And I'm wondering if these financial decisions actually end up paying off.

Josh:
Yeah, we'll see. We got to cover Fable next because it just released this week.

Josh:
You've been using it for a few days. I've been using it for a little while.

Josh:
It's a pretty amazing model. I've been using it for a lot of fun extracurricular

Josh:
stuff I found. Like I created the Minecraft clone to play around with it.

Josh:
I've been building kind of games in 3D spaces and I found it to be really fun.

Josh:
It genuinely feels like this novel model architecture that I've been enjoying

Josh:
playing with. Ejaz, over the first few days that you've been using this,

Josh:
what are your initial thoughts, opinions, kind of like after the dust settles, how do you feel about,

Josh:
the new model fable 5.

Ejaaz:
Um i think it is less sycophantic than opus 4.8 i'm not gonna lie i

Ejaaz:
when 4.8 came out i use it primarily as my main model but like it was way more agreeable than 4.7

Ejaaz:
we're now back with fable 5 and that might sound like it's got nothing to do

Ejaaz:
with intelligence to me it is it factors in the personality of the model and

Ejaaz:
i'm able to like work with it longer over certain tasks it just understands what i want to do

Ejaaz:
the second thing i've noticed is i've been working on a couple of personal projects

Ejaaz:
that involve a lot of code and research.

Ejaaz:
I can just one-prompt Fable 5, and it is able to just work continuously for up to an hour.

Ejaaz:
Now, I know software engineers listening to this are like, I let my thing run

Ejaaz:
for five to six hours or maybe even overnight.

Ejaaz:
But for me, for the average person, it is becoming incrementally more valuable

Ejaaz:
for a model that understands what you want, that doesn't come to you for every

Ejaaz:
kind of challenge it hits, and just kind of figures it out for himself.

Ejaaz:
And I think this kind of trend of models doing longer horizon tasks way better than the average human

Ejaaz:
is a subtle trend that is going to be increasingly valuable for corporate workers

Ejaaz:
at enterprises, as well as personal people that are like starting their own

Ejaaz:
businesses or want to spin up multiple of these agents instead of hiring an employee.

Ejaaz:
I just think it's a wonderfully intelligent model. And I'm excited to see further

Ejaaz:
iterations of this mythos grade kind of type of model be released.

Ejaaz:
But there was some pushback, right, Josh, like there were some policies that

Ejaaz:
came out that were basically like, hey, like, You get access to this public

Ejaaz:
version of Mythos 5, but it's going to be heavily safeguarded.

Ejaaz:
Now, one of the biggest criticisms that they faced was if you ask it questions

Ejaaz:
like, hey, I'm trying to train my agent to become more efficient and use less

Ejaaz:
tokens, it'll take that as some kind of an inclination that you're trying to

Ejaaz:
learn how Claude Fable 5 is built.

Ejaaz:
And Anthropic installs these anti-distillation maneuvers, basically rediverting

Ejaaz:
you back to the old model, Opus 4.8.

Ejaaz:
But in this case, it would give you degraded quality intentionally because it

Ejaaz:
thinks you're trying to like steal its blueprints.

Ejaaz:
Anthropik has now walked that back because previously they weren't going to

Ejaaz:
tell you when they were going to do it.

Ejaaz:
And now they are telling you. They reversed that decision as of yesterday,

Ejaaz:
basically saying, hey, we'll be up front with you when we're going to intentionally

Ejaaz:
degrade the quality of your answer because we think you're trying to like copy

Ejaaz:
our model weights, which is a very political maneuver.

Ejaaz:
And it's nice to see that they backtracked on that.

Josh:
There you have it. So there's the update on Fable and the final topic of the week.

Josh:
We filmed an entire episode about Fable and also this final topic, WWDC.

Josh:
So if you have not watched either of those, I highly recommend going to check

Josh:
them out. Pretty amazing episodes. We had a really strong week of fun topics

Josh:
to talk about this week, but I do want to trace over WWDC, particularly around

Josh:
Siri AI, which seems to actually be as good as they said it would be.

Josh:
And we have to cover this because that comes as a surprise. This is not the Apple of the past.

Josh:
This is the Apple that promises things and doesn't always deliver so the people

Josh:
have had to download the beta actually fact check try it for themselves and

Josh:
the initial reviews have been spectacular

Josh:
it seems like it actually works better than what they demoed in real time on

Josh:
stage it actually works faster it understands context it works very well on

Josh:
people's phones and this is available through the developer program that apple

Josh:
offers through their ios developer membership

Josh:
it seems like we're actually going to have a pretty powerful siri experience

Josh:
we're going to have on-device ai that is actually.

Josh:
Contextually aware of everything that lives on your phone and off of it.

Josh:
And they actually addressed something that I found really interesting.

Josh:
Maybe you saw, maybe you didn't about their removal of Siri from Europe and

Josh:
from China in the sense that they will not budge on the privacy thing.

Josh:
They will offload some of the compute to cloud in the sense that,

Josh:
or in the case that it can't run locally on your device, it's a little too challenging for that.

Josh:
And when they do, it's done so entirely privately.

Josh:
Europe doesn't want this to happen. So therefore Apple's like,

Josh:
no, no, no, we're not giving you the backdoor. We don't even have the backdoor.

Josh:
We are just not going to push it there. And I really admire the like standing

Josh:
strong on the stance of being private of running everything on device.

Josh:
It seems like Apple has a grand slam and it comes maybe a couple of years later

Josh:
than everyone would like.

Josh:
But this is something I am stoked to get. And I think the downstream implications

Josh:
of this are probably pretty big.

Josh:
There's a lot of casual users of something like ChatGPT who pay $20 a month

Josh:
to have an LLM that they basically use as Google Plus Plus, this now substitutes

Josh:
and subsidizes a lot of that all for free,

Josh:
running local inference on device. So very excited, very bullish about Apple in general.

Ejaaz:
You know, it was funny. I was reading the release article for Siri AI,

Ejaaz:
and typically at the footnote, you'll see, you know, these regions are excluded.

Ejaaz:
It'll just be a minor bullet point in tiny, you know, writing.

Ejaaz:
For Europe, they had an entire A4 page basically saying this is Europe's fault.

Ejaaz:
Europe government is the reason that we can't release our product,

Ejaaz:
and we are not budging because we just think, frankly, that this is ridiculous.

Ejaaz:
It was a larger piece than the China bit, which just came in as like a paragraph.

Ejaaz:
Obviously, China is like going to want access.

Josh:
I think everyone expects the China one.

Ejaaz:
Exactly. But for Europe, they've been sort of anti-AI and anti-privacy for quite a while now.

Ejaaz:
And it has resulted in slowed down releases of the latest AI products and features

Ejaaz:
in that region, which is just kind of like sad to see, especially like,

Ejaaz:
you know, that's where I'm from.

Ejaaz:
And it's annoying that like, I can't talk to my friends about the latest features

Ejaaz:
because they have to wait like months to a year to get access to the exact same thing.

Ejaaz:
That being said, a lot of the haters for Apple, which included me,

Ejaaz:
which was me a year ago, was like, I don't think Apple's gonna be able to catch up.

Ejaaz:
We have been proven absolutely wrong. And I wanna make that very clear on camera right now.

Ejaaz:
Apple has a distinct advantage, which is they own the entire consumer hardware

Ejaaz:
ecosystem, 3.5 billion devices.

Ejaaz:
And now they have the hardware, the chips, to run some of the best frontier

Ejaaz:
models on your phone. They may not be as large as Anthropics.

Ejaaz:
They may not be as large as OpenAIs.

Ejaaz:
But they're trained on your data. And you can do something that none of these

Ejaaz:
other AI labs can do, which is ask Siri to basically find that text that your

Ejaaz:
mom told you to do the thing and you forgot what it was, or,

Ejaaz:
you know, bring back that memory of like when you were hanging out with your

Ejaaz:
best friend, doing blah, blah, blah.

Ejaaz:
It has full context, grounded context on your entire thing.

Ejaaz:
And that is a feature we haven't seen and one that I'm personally super excited to use. So...

Ejaaz:
That is all the news for today, folks. Josh, any final thoughts?

Josh:
You're caught up. No, that's everything. The vibes have been crazy high this

Josh:
week. The news has been insane.

Josh:
Lots of things that I think we're probably personally excited about have been released. We got WWDC.

Josh:
We got a new Frontier AI model. And we got the biggest IPO in history all in one week.

Ejaaz:
It's crazy.

Josh:
It's like there are weeks where- We also got.

Ejaaz:
The Knicks dub yesterday. Please, let's not forget.

Josh:
For the New Yorkers. Ejaz and I are both in New York, both big Knicks fans.

Josh:
Huge. hopefully the day after you're watching this they win the championship

Josh:
that'd be pretty amazing given the vibes this week i suspect that's that's likely

Josh:
that feels probable just on a vibes based opinion

Josh:
um but yeah very excited about all the things that are happening very excited

Josh:
that you have made it here to the end of the episode and are still listening

Josh:
so thank you so much for all the support as always

Josh:
if you enjoy this as always also don't forget to share it with a friend anyone

Josh:
who you think might be interested anyone who asks you should i buy the spacex

Josh:
ipo maybe send in this video and say,

Josh:
not only should you buy it, you should set, I'm not, I can't go that far.

Josh:
Don't make your own. This is not financial advice.

Ejaaz:
Actually, if you disagree with us, if you disagree with us, we actually want

Ejaaz:
to hear from you. Like we have been combing through the numbers.

Ejaaz:
We've been combing through the projections and we're like, this kind of makes a lot of sense to us.

Ejaaz:
But if you're adamant that we're wrong, let us know in the comments.

Ejaaz:
We're hearing, we're going to hear you. We're going to see you.

Ejaaz:
We're going to respond to you. So we want to hear from you, whether you hate

Ejaaz:
our opinion or you love it. Like tell us where we're wrong. Tell us where we're right.

Josh:
Yeah, and I'm also going to disagree with you. So I'm ready to go to war in

Josh:
the comment section. Bring it on, baby.

Josh:
Tell me why SpaceX isn't the most valuable company in the world.

Josh:
Come on. But yeah, that's it. Thank you guys always so much for watching.

Josh:
Have an amazing weekend.

Josh:
Enjoy the weekend. Hopefully, by the time you're watching this,

Josh:
SpaceX is going up only. That'd be great.

Josh:
If not, I'm sure we'll hear about it.

Ejaaz:
Long term. The thesis is long term, Josh.

Josh:
Yes, we're long term. This is a low time preference show, man.

Josh:
I'm here for a long time, not a good time. Or a good time and a long time,

Josh:
I guess. But it doesn't matter the timelines that it happens on.

Josh:
But yes, thank you all so much for watching.

Josh:
Have an amazing weekend and we'll see you next week for another set of episodes on Limitless.

Ejaaz:
See you. See you guys.