1 00:00:00,020 --> 00:00:03,940 Josh: Just last week, on March 19th, a fund called VCX was listed on the New York 2 00:00:03,940 --> 00:00:05,960 Josh: Stock Exchange at $31 per share. 3 00:00:06,140 --> 00:00:09,380 Josh: Less than a week later, just this morning, it hit $575. 4 00:00:09,800 --> 00:00:13,920 Josh: That is an 18 times gain in just five trading days. And the underlying portfolio, 5 00:00:13,980 --> 00:00:16,160 Josh: it's only worth about $19 per share. 6 00:00:16,340 --> 00:00:21,660 Josh: But those $19 include Anthropic, OpenAI, SpaceX, Databricks, Anduril. 7 00:00:21,800 --> 00:00:25,580 Josh: It's a 30 times premium on the actual asset. So we have to ask ourselves the 8 00:00:25,580 --> 00:00:28,300 Josh: question, has the market lost its mind or is it telling us something. 9 00:00:28,420 --> 00:00:31,420 Josh: Is this actually an opportunity? This story is pretty outrageous. 10 00:00:31,660 --> 00:00:36,940 Ejaaz: This is the most insane IPO or direct offering story ever. This fund, 11 00:00:37,040 --> 00:00:39,640 Ejaaz: Fundrise Innovation Fund, has a genius strategy. 12 00:00:39,860 --> 00:00:43,740 Ejaaz: So like you said, they own Anthropic, OpenAI, and a bunch of other top AI companies, 13 00:00:43,920 --> 00:00:48,800 Ejaaz: but their stock actually gives you access or exposure to these underlying companies. 14 00:00:48,900 --> 00:00:53,080 Ejaaz: So if we look at some of the percentages, Anthropic, they own 20% of the fund 15 00:00:53,080 --> 00:00:54,660 Ejaaz: is positioned in Anthropic. 16 00:00:55,040 --> 00:00:59,400 Ejaaz: 17.7% of the fund is positioned in Databricks, 10% in OpenAI, 17 00:00:59,900 --> 00:01:02,640 Ejaaz: 7% in Anduril, 5% in SpaceX. 18 00:01:02,660 --> 00:01:06,480 Ejaaz: Basically, all the big hitters that are private AI companies that are, 19 00:01:06,720 --> 00:01:10,920 Ejaaz: most of them actually presumed to IPO this year, they already own and give you 20 00:01:10,920 --> 00:01:13,220 Ejaaz: access to via their stock VCX. 21 00:01:13,340 --> 00:01:15,100 Ejaaz: And the trajectory has been insane. 22 00:01:15,300 --> 00:01:17,940 Ejaaz: Like you mentioned, they went public six days ago. 23 00:01:18,180 --> 00:01:23,000 Ejaaz: Within the first day, their stock price went from $19 to $125. dollars. 24 00:01:23,560 --> 00:01:28,820 Ejaaz: Four days later, it hit $350. And then just this morning, it hit $575, 25 00:01:28,820 --> 00:01:32,660 Ejaaz: which values them at $19 billion. Just insane. 26 00:01:32,840 --> 00:01:36,220 Josh: Yeah. And it's a testament to, I think, how much market demand there is for this stuff, right? 27 00:01:36,300 --> 00:01:39,460 Josh: Like when you think about your dream portfolio, all the stocks that you want 28 00:01:39,460 --> 00:01:41,180 Josh: to own, this is pretty much everything. 29 00:01:41,400 --> 00:01:43,960 Josh: It's the top AI labs. It is the top space company. 30 00:01:44,200 --> 00:01:47,100 Josh: All of them, like you said, are going public. And this chart is outrageous. 31 00:01:47,220 --> 00:01:48,880 Josh: I mean, Just this morning, it hit 575. 32 00:01:49,360 --> 00:01:54,120 Josh: It's cooled off now to only be 394. We have to ask the question, is this insane? 33 00:01:54,380 --> 00:01:58,360 Josh: Is this a testament to what's coming for the IPO market? I guess if people are 34 00:01:58,360 --> 00:02:01,780 Josh: interested, how can they participate in this? There's a lot of things we need to unpack here. 35 00:02:02,160 --> 00:02:04,520 Ejaaz: So before we actually tell you how to get access to this thing, 36 00:02:04,790 --> 00:02:07,810 Ejaaz: I want to break down their positions a bit more because I think their investment 37 00:02:07,810 --> 00:02:09,330 Ejaaz: strategy is pretty genius. 38 00:02:09,710 --> 00:02:13,230 Ejaaz: So if we look on the right side of the screen here, we have a sector breakdown. 39 00:02:13,230 --> 00:02:16,810 Ejaaz: This is from their official website, which explains the reasoning behind why 40 00:02:16,810 --> 00:02:18,370 Ejaaz: they bought these particular companies. 41 00:02:18,750 --> 00:02:22,810 Ejaaz: 43% of the fund is invested in artificial intelligence. 42 00:02:22,990 --> 00:02:27,890 Ejaaz: So that's the actual model frontier AI labs. You can find that in Anthropic and OpenAI. 43 00:02:28,210 --> 00:02:33,270 Ejaaz: But then a bunch of their fund, 23% of the fund is invested in data infrastructure. 44 00:02:33,790 --> 00:02:37,030 Ejaaz: Now data is an extremely core part of AI. If you don't have good data, 45 00:02:37,090 --> 00:02:40,450 Ejaaz: and if you don't have a lot of good data, you can't really train good models. 46 00:02:40,590 --> 00:02:43,050 Ejaaz: You've got compute on one side and then data on the other side. 47 00:02:43,310 --> 00:02:46,490 Ejaaz: So their investment in Databricks is actually super smart in that way. 48 00:02:46,590 --> 00:02:48,710 Ejaaz: But then they also invested in aerospace. 49 00:02:49,050 --> 00:02:52,330 Ejaaz: And it's not like a small position either, like 5% of the fund is in aerospace. 50 00:02:52,670 --> 00:02:56,510 Ejaaz: So with a $650 million nav, that's like not insignificant. 51 00:02:56,990 --> 00:03:00,990 Ejaaz: And they're choosing SpaceX, which as we know, probably going to be IPO-ing 52 00:03:00,990 --> 00:03:05,150 Ejaaz: as soon as potentially the next couple of months and are launching data centers into space. 53 00:03:05,290 --> 00:03:09,350 Ejaaz: So they're also thinking forward as well as currently what the major AI labs 54 00:03:09,350 --> 00:03:13,230 Ejaaz: are. But then there's also some interesting investments in gaming. 55 00:03:13,510 --> 00:03:19,250 Ejaaz: I noticed that they have a 3.5% position in Epic Games, who just did mass layoffs 56 00:03:19,250 --> 00:03:20,870 Ejaaz: at their company just yesterday. 57 00:03:21,170 --> 00:03:24,610 Ejaaz: And although that's not really great news, typically when a company does layoffs, 58 00:03:24,610 --> 00:03:27,150 Ejaaz: it makes them leaner and boosts the valuation. 59 00:03:27,370 --> 00:03:31,070 Ejaaz: Epic Games is still a private company, but is one of the biggest gaming IPOs 60 00:03:31,070 --> 00:03:33,610 Ejaaz: that are presumed to go ahead this year. 61 00:03:33,730 --> 00:03:37,450 Ejaaz: So they've really picked and chosen their companies very strategically here. 62 00:03:37,570 --> 00:03:41,210 Josh: It's a good portfolio. And the price action reflects that. I think I need to 63 00:03:41,210 --> 00:03:44,250 Josh: instill some FOMO. Again, this is not financial advice. At this point, 64 00:03:44,310 --> 00:03:45,550 Josh: this is just outrageous to buy into. 65 00:03:45,790 --> 00:03:49,730 Josh: But it is fun to look at the day-by-day insanity so we can kind of evaluate 66 00:03:49,730 --> 00:03:52,190 Josh: how much interest there really is about this stuff. 67 00:03:52,190 --> 00:03:59,490 Josh: On the first day when it opened at i think it was 31 it closed at 125 so it 68 00:03:59,490 --> 00:04:02,410 Josh: was already up like 300 and then by day two, 69 00:04:02,870 --> 00:04:07,870 Josh: it was up to just about $200. By day three, $315. 70 00:04:08,470 --> 00:04:15,770 Josh: And then by day four, it hit $575. With the market cap surging well past, 71 00:04:16,010 --> 00:04:20,690 Josh: I think $15 billion for something that's worth just about $650 million. 72 00:04:21,030 --> 00:04:25,750 Josh: So you're trading these things at about 30 times what they're actually worth. 73 00:04:25,910 --> 00:04:30,630 Josh: You're essentially spending $575 for $19 worth of Anthropic and SpaceX and OpenAI. 74 00:04:30,810 --> 00:04:33,510 Josh: This is crazy. So why are people doing this? 75 00:04:33,770 --> 00:04:36,770 Josh: Like, what is the actual cause? I mean, at this point, you have to assume maybe 76 00:04:36,770 --> 00:04:41,210 Josh: it's just a penny stock GameStop situation where people want to just pump something. 77 00:04:41,350 --> 00:04:45,650 Josh: But there was some truth to this, right? It's like, there has been this IPO 78 00:04:45,650 --> 00:04:48,570 Josh: drought that we've had over the past few years where all of these companies 79 00:04:48,570 --> 00:04:50,150 Josh: are creating a tremendous amount of value. 80 00:04:50,330 --> 00:04:53,410 Josh: Every day we talk about three companies, right? It's like, we're talking about 81 00:04:53,410 --> 00:04:54,830 Josh: Anthropic, we're talking about OpenAI. 82 00:04:55,250 --> 00:04:58,550 Josh: Google is publicly traded, but SpaceX isn't. And a lot of the companies are 83 00:04:58,550 --> 00:05:00,130 Josh: creating all of this value. 84 00:05:00,330 --> 00:05:04,550 Josh: There's trillions of dollars sitting in private assets that the public doesn't have any access to. 85 00:05:04,750 --> 00:05:08,170 Josh: The only way you could do this generally is to go through a third-party vendor 86 00:05:08,170 --> 00:05:11,790 Josh: who sells these things called SPVs and you could buy shares within them. 87 00:05:11,890 --> 00:05:15,150 Josh: But it's not a real legitimate way of getting on the cap table, 88 00:05:15,510 --> 00:05:18,390 Josh: getting real shares. It's not great. So clearly people are desperate. 89 00:05:18,650 --> 00:05:23,130 Josh: This is the first real instrument that I've seen to find product market fit. 90 00:05:23,290 --> 00:05:27,170 Josh: There are a few others. I know ARK Invest has one that's not publicly traded. 91 00:05:27,350 --> 00:05:30,350 Josh: I know you could buy into it quarterly and you get your quarterly dividends 92 00:05:30,350 --> 00:05:35,130 Josh: but there are some experimentations just this very clearly is the biggest winner so far. 93 00:05:35,500 --> 00:05:40,380 Ejaaz: It's a mixture of extreme and maybe treacherous financial engineering, 94 00:05:40,380 --> 00:05:44,340 Ejaaz: as well as desperation for the retail market to get access to these companies. 95 00:05:44,660 --> 00:05:49,100 Ejaaz: It is no secret, like Anthropic, OpenAI, SpaceX, Anduril, all these companies 96 00:05:49,100 --> 00:05:52,080 Ejaaz: are massively drooled over by 97 00:05:52,080 --> 00:05:55,620 Ejaaz: the retail market, but no one can get access into any of these companies. 98 00:05:55,940 --> 00:05:59,680 Ejaaz: And the major issue with private market valuations is typically they would achieve 99 00:05:59,680 --> 00:06:04,720 Ejaaz: a reasonable valuation and then IPO and give retail access. but now private 100 00:06:04,720 --> 00:06:08,300 Ejaaz: valuations just keep going on and on and on. I mean, look at Uber, look at Stripe. 101 00:06:08,420 --> 00:06:11,680 Ejaaz: They have remained private for years now and their valuations are extortionate 102 00:06:11,680 --> 00:06:15,940 Ejaaz: and we don't know if they're ever gonna want to go public because they just 103 00:06:15,940 --> 00:06:18,140 Ejaaz: have so much cash to spend on their existing business. 104 00:06:18,300 --> 00:06:22,120 Ejaaz: So the incentive to give retail access isn't really there but the financial 105 00:06:22,120 --> 00:06:23,500 Ejaaz: engineering is kind of crazy. 106 00:06:23,720 --> 00:06:29,680 Ejaaz: So only 10% of their shares are publicly available for float to purchase right now. 107 00:06:29,820 --> 00:06:34,820 Ejaaz: So the market is actually pretty illiquid. for the investors in the fund that 108 00:06:34,820 --> 00:06:39,400 Ejaaz: purchase shares before the direct offering, they're kind of locked up right now. 109 00:06:39,480 --> 00:06:44,540 Ejaaz: But I see that the lockup is probably around six months, which actually isn't that long. 110 00:06:44,680 --> 00:06:46,960 Ejaaz: Typically, it's like a year and then like a cliff after that. 111 00:06:47,080 --> 00:06:53,220 Ejaaz: So you're going to have a lot of this shares or the float increase pretty drastically after six months. 112 00:06:53,340 --> 00:06:56,300 Ejaaz: So there is a lot of financial engineering that's going on here. 113 00:06:56,460 --> 00:07:00,020 Ejaaz: To your earlier point, there are some similar funds that have launched recently 114 00:07:00,020 --> 00:07:03,240 Ejaaz: that are similarly structured like this. 115 00:07:03,400 --> 00:07:06,840 Ejaaz: The most obvious one probably being Robinhood's Venture Fund One. 116 00:07:07,080 --> 00:07:11,600 Ejaaz: And if I look at that stock chart right now, I've got to pull it up. 117 00:07:12,020 --> 00:07:15,440 Ejaaz: It didn't fare well after the first month. 118 00:07:15,620 --> 00:07:19,880 Josh: No, it did horrible. And I think the reason why is because it's missing those crown jewels, right? 119 00:07:19,980 --> 00:07:23,220 Josh: When you look at the portfolio, what it's made of, it has boom aerospace, 120 00:07:23,240 --> 00:07:27,700 Josh: it has, I believe, Databricks in there. It has really impressive companies, but it's missing. 121 00:07:28,140 --> 00:07:30,960 Josh: The spacex it's missing the anthropic it's 122 00:07:30,960 --> 00:07:34,140 Josh: missing the open ai it doesn't have those companies 123 00:07:34,140 --> 00:07:37,160 Josh: that really everyone wants and it seems like the 124 00:07:37,160 --> 00:07:40,260 Josh: world really only wants these three things yeah and if you don't have that included 125 00:07:40,260 --> 00:07:43,740 Josh: you're not going to get reward for it and that's what happened with the robin 126 00:07:43,740 --> 00:07:47,680 Josh: hood fund now there is something that i do want to talk about briefly because 127 00:07:47,680 --> 00:07:53,440 Josh: anytime an asset goes up 18 times in five days you have to start asking the 128 00:07:53,440 --> 00:07:55,720 Josh: question how close are we to the top here. 129 00:07:56,140 --> 00:07:59,480 Josh: Like I know a lot of people listening to the show, they've been in the crypto world for a while. 130 00:07:59,660 --> 00:08:04,340 Josh: They've seen this happen many times. And we must ask the question to our Oracle 131 00:08:04,340 --> 00:08:07,180 Josh: here at Polymarket, what is the chance of a recession? 132 00:08:07,420 --> 00:08:13,260 Josh: Just out of curiosity, because generally this type of frothiness begins to happen towards the top. 133 00:08:13,480 --> 00:08:17,220 Josh: And thankfully, Polymarket is saying the chances are actually kind of low, 134 00:08:17,580 --> 00:08:22,620 Josh: 35%. Now, granted, these have come up over the last few weeks from 20% to 35%. 135 00:08:22,620 --> 00:08:24,400 Josh: So this is a 35% and climbing. 136 00:08:24,600 --> 00:08:28,380 Josh: But still, there's only a one in three chance, according to the very brilliant 137 00:08:28,380 --> 00:08:31,460 Josh: people at Polymarket, who are saying that we'll even have a recession. 138 00:08:31,620 --> 00:08:35,700 Josh: So that does make me feel good. I think it feels hard to imagine the AI bubble 139 00:08:35,700 --> 00:08:38,900 Josh: kind of exploding prior to these IPOs actually happening. 140 00:08:39,100 --> 00:08:41,700 Josh: This can get us into our next news of the day about SpaceX. Thank you, 141 00:08:41,800 --> 00:08:43,800 Josh: Polymarket, for sponsoring this section of the episode. 142 00:08:43,940 --> 00:08:47,780 Josh: But SpaceX, we just heard news from yesterday that their IPO is actually far 143 00:08:47,780 --> 00:08:50,020 Josh: closer than we think. They just filed... 144 00:08:50,550 --> 00:08:54,530 Josh: The rumors are that they are going to be filing officially as early as next week. 145 00:08:55,110 --> 00:08:58,450 Ejaaz: Yeah, exactly. So there's a bunch of rumors that broke out today. 146 00:08:58,610 --> 00:09:02,890 Ejaaz: And actually, just this morning, rumors broke out that Goldman Sachs might be 147 00:09:02,890 --> 00:09:04,550 Ejaaz: actually leading the entire IPO. 148 00:09:05,010 --> 00:09:10,570 Ejaaz: So once they file, it's pretty much confirmed that they're going to be IPO-ing relatively soon. 149 00:09:10,850 --> 00:09:14,810 Ejaaz: The rumored date is, I think, June or July of this year. 150 00:09:14,950 --> 00:09:19,450 Ejaaz: So happening pretty quickly. and they're going to be raising a staggering $75 151 00:09:19,450 --> 00:09:26,070 Ejaaz: billion and will value them at IPO at around $1.75 trillion. 152 00:09:27,390 --> 00:09:32,490 Ejaaz: Now, earlier Polymarket that we looked at, I believe had the odds of them going 153 00:09:32,490 --> 00:09:37,430 Ejaaz: above $2 trillion by the end of the day, pretty high, like 52%, 154 00:09:37,430 --> 00:09:39,030 Ejaaz: I believe, I was looking at it earlier. 155 00:09:39,290 --> 00:09:43,150 Ejaaz: So this is going to be one of the biggest IPOs of the year, but it begs the question, Josh, 156 00:09:43,720 --> 00:09:48,320 Ejaaz: What is that going to do to Fundrise's stock price, right? 157 00:09:48,500 --> 00:09:53,860 Ejaaz: Like if SpaceX does go public, I know they only own only 5% of their fund is actually in SpaceX. 158 00:09:54,140 --> 00:10:00,540 Ejaaz: But if people can get access to SpaceX publicly, why would they own Fundrise's stock? 159 00:10:00,740 --> 00:10:04,140 Ejaaz: Now, maybe it's because they still want to have exposure to Anthropic and OpenAI. 160 00:10:04,340 --> 00:10:07,520 Ejaaz: But the point is, as these companies IPO and Anthropic and OpenAI, 161 00:10:07,600 --> 00:10:12,820 Ejaaz: by the way, are rumored to also IPO this year, I don't see the value of their stock keeping up. 162 00:10:12,820 --> 00:10:16,180 Josh: Yeah, well, I can't see it keeping up even today. Like, I would be shocked if 163 00:10:16,180 --> 00:10:18,940 Josh: by the time we publish this episode, the price is still high. 164 00:10:19,220 --> 00:10:23,220 Josh: Because I mean, this is just an unbelievable premium. And I can't in good conscience 165 00:10:23,220 --> 00:10:25,440 Josh: recommend anybody go and buy the stock at this premium. 166 00:10:25,540 --> 00:10:25,800 Ejaaz: No. 167 00:10:25,940 --> 00:10:29,000 Josh: But it is, I think, more than anything, a testament to the demand. 168 00:10:29,220 --> 00:10:34,000 Josh: So when SpaceX does IPO, I mean, that $2 trillion number is outrageous. 169 00:10:34,360 --> 00:10:37,100 Josh: That would have been the most valuable company in the world not too long ago. 170 00:10:37,220 --> 00:10:39,200 Josh: And that's what they're going to launch at. 171 00:10:39,360 --> 00:10:42,420 Josh: So I think it's just a testament to how much demand there 172 00:10:42,420 --> 00:10:45,760 Josh: is for this new paradigm of company for the spacex 173 00:10:45,760 --> 00:10:49,020 Josh: for the open ai for the anthropic and how big of a deal it is going to be once 174 00:10:49,020 --> 00:10:52,980 Josh: they actually go public it's looking right now based on the general timelines 175 00:10:52,980 --> 00:10:56,920 Josh: that if they do file next week it's going to be an early june early to mid-june 176 00:10:56,920 --> 00:11:05,020 Josh: ipo for spacex yeah and i'm i'm putting my money on june 9th which is six slash nine. 177 00:11:05,300 --> 00:11:09,600 Josh: I think just mimetically speaking, very strong. But yeah, I think it's... 178 00:11:10,660 --> 00:11:15,720 Ejaaz: Yeah, actually so, right? What do you think is the over-under of Fundrise being 179 00:11:15,720 --> 00:11:17,420 Ejaaz: above its peak that it reached today? 180 00:11:17,740 --> 00:11:20,840 Ejaaz: 575 bucks by the time SpaceX IPOs? 181 00:11:21,140 --> 00:11:25,720 Josh: Oh, 0%. This thing is worth $19. I mean, that's what this is worth. 182 00:11:25,780 --> 00:11:28,160 Josh: It's worth $19. It's not worth $575. 183 00:11:28,740 --> 00:11:32,540 Josh: Everything on top of it is just hype and craziness and insanity. 184 00:11:33,070 --> 00:11:35,930 Josh: Sure, there does deserve to be a premium on this, right? It's because you get 185 00:11:35,930 --> 00:11:38,490 Josh: private access to, or you get public access to private shares, 186 00:11:38,530 --> 00:11:41,710 Josh: but that premium should not be 30 times. I mean, that's just crazy. 187 00:11:42,090 --> 00:11:45,350 Josh: Particularly because, I mean, the fund, what, has 5% SpaceX allocation? 188 00:11:45,550 --> 00:11:49,550 Josh: So as we begin to wrap up this episode, I think if you're not buying this crazy 189 00:11:49,550 --> 00:11:53,890 Josh: premium priced asset, how can you actually responsibly get exposure to these companies? 190 00:11:54,110 --> 00:11:56,810 Josh: And there are a few answers that are pretty interesting. The first one being Google. 191 00:11:57,030 --> 00:11:59,510 Josh: We always talk about Google on the show. We love Google here. 192 00:11:59,630 --> 00:12:04,970 Josh: And Google is actually a majority shareholder of SpaceX. They own a ton of shares for a public company. 193 00:12:05,270 --> 00:12:08,170 Ejaaz: Yeah, I think they own around between 7% to 10%, which is nuts. 194 00:12:08,350 --> 00:12:11,590 Ejaaz: But also Amazon is the other company, right? They own about, 195 00:12:11,970 --> 00:12:15,590 Ejaaz: I believe, 17% or actually 22% of Anthropic. 196 00:12:15,950 --> 00:12:21,330 Ejaaz: So these are publicly traded companies, arguably more robust and stable than 197 00:12:21,330 --> 00:12:23,850 Ejaaz: Fundrise's latest IPO or DPO. 198 00:12:24,090 --> 00:12:26,410 Ejaaz: So it might make more sense to own 199 00:12:26,410 --> 00:12:30,290 Ejaaz: these companies to get exposure to the potential biggest IPOs this year. 200 00:12:30,570 --> 00:12:33,910 Josh: Yeah, I mean, Fundrise, the fund has 20% exposure to Anthropic, 201 00:12:34,310 --> 00:12:38,590 Josh: Amazon has just about the same amount, except they own the actual equity on 202 00:12:38,590 --> 00:12:40,390 Josh: the cap table in a meaningful way. 203 00:12:40,650 --> 00:12:45,210 Ejaaz: Wait, wait, wait. There's an important distinction here. Fundraiser's fund has 204 00:12:45,210 --> 00:12:51,570 Ejaaz: 20% of the fund positioned in Anthropic, but Amazon owns 20%. 205 00:12:51,570 --> 00:12:56,650 Ejaaz: Actually owns 20%. They're very, very different things. Much bigger position in Amazon. Yeah. 206 00:12:56,950 --> 00:12:59,570 Josh: Yes. And I think Amazon is a really interesting company too, 207 00:12:59,590 --> 00:13:03,770 Josh: as we head into IPO season, because they stand to benefit from all of the headwinds 208 00:13:03,770 --> 00:13:06,910 Josh: of this on the robotics front, where we see humanoid robots. 209 00:13:06,990 --> 00:13:08,170 Josh: What is their primary use case right now? 210 00:13:08,290 --> 00:13:11,350 Josh: Working factory, sorting packages. We see the like, 211 00:13:11,940 --> 00:13:15,300 Josh: All of the Anthropic annual run rate doubling every couple of months. 212 00:13:15,300 --> 00:13:17,000 Josh: They're making a tremendous amount of revenue. 213 00:13:17,120 --> 00:13:20,380 Josh: They'll start to get close to what Amazon is doing if they continue to grow at this rate. 214 00:13:20,700 --> 00:13:27,860 Ejaaz: Well, there's also Amazon's AWS business, which inferences most of the AI queries that are sent. 215 00:13:28,040 --> 00:13:30,840 Ejaaz: Like all of Claude's stuff gets sent to AWS servers. 216 00:13:31,440 --> 00:13:34,000 Ejaaz: OpenAI is structured to deal with them, which they're launching soon. 217 00:13:34,240 --> 00:13:37,360 Ejaaz: All of like Google stuff also kind of routes through them as well. 218 00:13:37,360 --> 00:13:44,000 Ejaaz: So they're just a beast and people are valuing them as a retail e-commerce platform, 219 00:13:44,200 --> 00:13:46,300 Ejaaz: which is still the most ridiculous thing ever. 220 00:13:46,700 --> 00:13:52,340 Ejaaz: Look at Amazon's next quarterly earnings. I'll bet you now that AWS revenue is through the roof. 221 00:13:52,780 --> 00:13:55,540 Josh: And crazy breakthrough that we might have to talk about. We'll definitely be 222 00:13:55,540 --> 00:13:56,800 Josh: talking about on the roundup tomorrow. 223 00:13:57,160 --> 00:14:00,780 Josh: But Google just released this unbelievable paper that shows how they're able 224 00:14:00,780 --> 00:14:05,240 Josh: to compress these models, use what, six to eight times less memory and still 225 00:14:05,240 --> 00:14:06,700 Josh: get the same output with no loss. 226 00:14:06,840 --> 00:14:11,020 Ejaaz: But also 8x faster. So you could have the same number of GPUs, 227 00:14:11,160 --> 00:14:15,760 Ejaaz: but run a Frontier model eight times as fast just because they wiped out memory. It's just insane. 228 00:14:15,900 --> 00:14:19,440 Josh: So now Amazon Web Services, because far more powerful, I mean, 229 00:14:19,520 --> 00:14:23,440 Josh: GCP becomes more powerful with Google. everyone is just becoming far more powerful. 230 00:14:23,660 --> 00:14:26,900 Josh: And what's interesting about Google and Amazon is they both have their specific 231 00:14:26,900 --> 00:14:32,180 Josh: TPUs or accelerated GPUs that they're using that are kind of out of the NVIDIA sphere. 232 00:14:32,360 --> 00:14:36,100 Josh: So there's a lot of bullish catalysts that are coming. 233 00:14:36,400 --> 00:14:39,800 Josh: As we wrap up, maybe we could talk about just a few ways that you can actually 234 00:14:39,800 --> 00:14:42,740 Josh: get exposure to these companies, because I've spent a lot of time trying to 235 00:14:42,740 --> 00:14:44,160 Josh: acquire shares. There's really three. 236 00:14:44,300 --> 00:14:48,920 Josh: You go to a company like Forge Global or Hive, or there's a few others, 237 00:14:49,000 --> 00:14:50,180 Josh: and this is by no means an endorsement. 238 00:14:50,180 --> 00:14:53,160 Josh: I i haven't used them but they offer these spvs you 239 00:14:53,160 --> 00:14:56,040 Josh: can go in a lot of times the minimum investment size is like 25 50 240 00:14:56,040 --> 00:14:59,740 Josh: 000 you can try to get access to these shares at a premium but there's pretty 241 00:14:59,740 --> 00:15:03,660 Josh: high fees it's not the best way of going about it the second way is you can 242 00:15:03,660 --> 00:15:08,880 Josh: just buy into these funds like vgx from fundrise and they give you public exposure 243 00:15:08,880 --> 00:15:12,360 Josh: i know arc invest has a fund that's very similar where it's not publicly traded 244 00:15:12,360 --> 00:15:14,320 Josh: on a daily basis but you can collect quarterly dividends, 245 00:15:14,770 --> 00:15:17,690 Josh: And then the third way is just getting exposure through the publicly traded 246 00:15:17,690 --> 00:15:20,130 Josh: companies that have exposure, like Google, like Amazon. 247 00:15:20,350 --> 00:15:24,350 Josh: That's probably it. And then we just hope that all these companies will go public 248 00:15:24,350 --> 00:15:26,530 Josh: and create true alignment, because that's not fair. 249 00:15:26,810 --> 00:15:29,450 Josh: Anthropic wants to align everyone, but what about the financial alignment, 250 00:15:29,550 --> 00:15:31,950 Josh: dude? They're just raking in all the cash and not giving any to us. 251 00:15:32,270 --> 00:15:36,470 Ejaaz: There actually is a fourth option, in my opinion, which is you can just wait 252 00:15:36,470 --> 00:15:38,510 Ejaaz: for these companies to IPO. 253 00:15:39,010 --> 00:15:43,230 Ejaaz: I do think a lot of them can IPO this year and relatively soon. 254 00:15:43,230 --> 00:15:46,630 Ejaaz: We've got SpaceX that might IPO in early to mid-June. 255 00:15:47,130 --> 00:15:52,770 Ejaaz: And then Anthropic and OpenAI are kind of racing together right now to IPO by the end of the year. 256 00:15:53,290 --> 00:15:58,190 Ejaaz: OpenAI yesterday announced that they shut down Sora and are condensing and rediverting 257 00:15:58,190 --> 00:16:02,950 Ejaaz: compute and team resources to build the best coding and chatbot LLM. 258 00:16:03,330 --> 00:16:05,630 Ejaaz: This isn't insignificant. The 259 00:16:05,630 --> 00:16:07,950 Ejaaz: reason why they're doing this is they're prepping themselves for an IPO. 260 00:16:08,090 --> 00:16:13,350 Ejaaz: Anthropic's doing the same thing. They're on track for, I believe $80 to $100 billion ARR this year. 261 00:16:13,510 --> 00:16:17,110 Ejaaz: So all the numbers look great, and they want to go public as soon as they can. So 262 00:16:17,440 --> 00:16:22,720 Ejaaz: Maybe the best strategy is also to wait. You can see where the public values these companies. 263 00:16:22,900 --> 00:16:25,660 Ejaaz: You can buy it maybe not on the first day, but second day, third day or fourth day. 264 00:16:25,900 --> 00:16:29,180 Ejaaz: But also these companies could shoot up. So if you do see a good opportunity 265 00:16:29,180 --> 00:16:33,100 Ejaaz: to get access to, you know, the SPVs or through Fundrise, as Josh just mentioned, 266 00:16:33,820 --> 00:16:35,960 Ejaaz: just be aware of the risks before you do so. 267 00:16:36,140 --> 00:16:38,780 Josh: And I think that wraps up the episode today. I mean, it's just a crazy story 268 00:16:38,780 --> 00:16:41,680 Josh: that's happening right now with this fund of going 18x. 269 00:16:41,940 --> 00:16:46,080 Josh: It's just a testament to how crazy the rest of this year is about to get with 270 00:16:46,080 --> 00:16:47,160 Josh: all these companies going public. 271 00:16:47,440 --> 00:16:51,460 Josh: Um, I am not participating. EJS, do you have any interest in participating in this? 272 00:16:51,780 --> 00:16:56,280 Ejaaz: I will not be. No, hang on. Let's, uh, let's do one final check. 273 00:16:56,380 --> 00:17:00,880 Ejaaz: And Josh, we are at 422, close to 420. It's up 35%. 274 00:17:00,880 --> 00:17:03,860 Josh: So by the time this episode goes live, is it higher or lower? What are we thinking? 275 00:17:04,220 --> 00:17:09,240 Ejaaz: Okay. Uh, I think it's higher because I think the hype will catch on for a couple more days. 276 00:17:09,460 --> 00:17:13,560 Josh: That's my bad. Okay. Well, I, I cannot advise anyone touch this with anything 277 00:17:13,560 --> 00:17:14,860 Josh: more than a hundred foot pole, 278 00:17:14,860 --> 00:17:17,640 Josh: but that is the episode today just 279 00:17:17,640 --> 00:17:20,480 Josh: a fascinating story i thought it was really fun to just check in share 280 00:17:20,480 --> 00:17:23,340 Josh: this like crazy news catalyst that's going on how to get exposure 281 00:17:23,340 --> 00:17:26,080 Josh: if you are really curious and what the likelihood is that we're in 282 00:17:26,080 --> 00:17:29,660 Josh: a bubble which is lower than i think most people expect so all good things happening 283 00:17:29,660 --> 00:17:32,360 Josh: here if you enjoyed this episode please don't forget to share it with your friends 284 00:17:32,360 --> 00:17:36,580 Josh: um comment on youtube give us a five-star rating subscribe to our sub stack 285 00:17:36,580 --> 00:17:39,880 Josh: where we publish newsletters twice a week they're very helpful very informative 286 00:17:39,880 --> 00:17:44,180 Josh: and yeah thank you so much for watching and we'll see you guys in the next episode see you guys.