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TBPN is a live tech talk show hosted by John Coogan and Jordi Hays, streaming weekdays from 11–2 PT on X and YouTube, with full episodes posted to Spotify immediately after airing.
Described by The New York Times as “Silicon Valley’s newest obsession,” TBPN has interviewed Mark Zuckerberg, Sam Altman, Mark Cuban, and Satya Nadella. Diet TBPN delivers the best moments from each episode in under 30 minutes.
The big news this week, and I I'm sure what, you know, everyone will be focused on, is, of course, on the cover of The Wall Street Journal. That's the Trump Xi Jinping Summit that's happening in Beijing. Trump and Xi Jinping vie for wins at Summit. They're duking it out and Trump brought They both brought a big crew with them.
Speaker 2:A team.
Speaker 1:Yeah. Trump brought Geopolitics? A couple couple Team sport. Couple political people that we won't even care about, but the business leaders are what is particularly interesting. So we got Elon Musk from Tesla, Tim Cook from Apple, Jensen from Nvidia, Kelly Ortberg from Boeing, little flex there because Boeing has been able to maintain the lead in manufacturing large planes for a very long time.
Speaker 1:DJI has not been able to scale up and make a seven forty seven. What's going on over there? David Solomon from Goldman Sachs, Steven Schwarzman from Blackstone, Larry Fink from BlackRock, Jane Fraser from Citi, and Dina Powell McCormack from Meta. So we should read through the stakes of the Trump Xi Jinping Summit in the Wall Street Journal
Speaker 2:the Wall Street Let's the get more important stuff
Speaker 1:Yeah, please.
Speaker 2:Is do you think Jensen was always coming on the trip? Right? There's been some speculation. He got on he got on the plane in Alaska.
Speaker 1:Oh, yeah.
Speaker 2:Was that just the most convenient place for him to get on or was he a late addition?
Speaker 1:I don't know. Why would he have been been a late addition? I don't I don't know. It seems
Speaker 2:reporting earlier this week
Speaker 1:company in in America.
Speaker 2:I know. But but there have been statements made from what I saw that he wasn't going.
Speaker 3:I don't know. Yes. Well, so Trump had a truth social post Yeah. That said CNBC incorrectly reported that the great Jensen Huang of Nvidia was not invited. But then he corrected it.
Speaker 3:He said he didn't invite him
Speaker 1:personally. Don't know. These schedules move around. It's got to be really, really difficult if you're the leader of the biggest company in the world to move things around and commit to this.
Speaker 2:Don't But what's more important for Jensen and his objectives?
Speaker 1:No, of course, it's critical importance. But at the same time, there might have just been other moving pieces of like, okay, when can he go? Where will he arrive from? Where will he get picked up from? I don't know.
Speaker 1:These things always like shift. I I don't have a good thesis. I mean, other than the fact that like that is the company that has maybe the most tension between the trade deals with China. Like Apple obviously does a ton of business in China, but has been much less of a focus in the chip sanctions. And so having Jensen there is a little bit more of a discussion point.
Speaker 1:What do you think?
Speaker 3:I mean, I I think on China, like, the NVIDIA stuff seems like pretty fine now. But but but yeah. But Meta, I think, has like some conflict. Right? Because I mean, Manus yeah.
Speaker 3:Maybe it's like not that big of an acquisition
Speaker 1:Yeah.
Speaker 3:On like market cap wise. But
Speaker 1:Yeah. Yeah. They're blocking it. A lot of these things, you know, we always say in the in the context of Silicon Valley, it's like a $2,000,000,000 deal or a company that's doing 40,000,000,000 in revenue. And then you get over there, the stakes are, like, you know, dollars 1,000,000,000,000 oil market or like all the rare earths in the world.
Speaker 1:And it's your, you know, geopolitical conflict, which is obviously a much bigger deal. So there might be more reporting that comes out about Jensen's goals there, what actually happened, how he found his way onto Air Force One. But that was confirmed by Elon Musk. Right? He said that Elon, Jensen, and Trump were all on Air Force One together flying over.
Speaker 1:I certainly wouldn't wanna get there. I would wanna arrive on the cool plane. Can we play the video? Trump arrives in Beijing with Elon Musk and Jensen in tow. I guess the rest of the business leaders came separately.
Speaker 1:Their arrival with those
Speaker 2:Can we get some?
Speaker 1:Your leaders or something? I don't know what they seem to be waving oh, flags. They're waving flags. That makes sense. Well, there they go walking down the red carpet.
Speaker 1:Air Force one is truly stately. There's it's so it's so disappointing that the economics of the airline industry didn't just get bigger and bigger. And so you find yourself very rarely on seven forty sevens unless you're flying across the world because they do have such a presence. And they're spacious inside. But we we we have been, you know, cramped down into the seven
Speaker 2:forty Are there videos? Pretty much everything. Where they give a proper tour of Air Force One or is it kind of locked down?
Speaker 1:I think they've done tours. I mean, there are several Air Force ones, I believe, that are on display at presidential libraries. And so, you can go and tour them. There might be one at the Smithsonian. I'm not exactly sure.
Speaker 1:But sure you can go walk around. Old ones Take note. I wouldn't be surprised if they keep the the current spec, like somewhat secretive. There we go. This is very grainy footage.
Speaker 1:It looks like Oh, maybe it's just the middle
Speaker 2:It reminds me of Dune.
Speaker 1:Dune. Myrakis. That's Taiwan though. Anyway, let's go through Jensen's pack list. He was having trouble thinking of what was he going to bring.
Speaker 1:Of course, he landed on just a ton of leather jackets. The back sneakers,
Speaker 2:I feel like, are pretty iconic.
Speaker 1:Yeah. Like, the uniform is really starting to compound where it used to just be the jacket. Soon, we will know the exact brand and specs of the of the pants as well as the shoes and the whole Jensen uniform will be out in full force.
Speaker 2:Yeah. The clothing industry doesn't want you to know this Yeah. But wearing just just getting a few pieces of clothes that you like and then wearing them until they fall apart incredibly underrated. Not that's Yep. What Jensen's doing but it's pretty funny.
Speaker 2:I I tend to wear almost the exact same thing
Speaker 1:Yep.
Speaker 2:Every day. And so sometimes people on the team will come in and be like, oh, we're matching today. Mhmm. Like every day you dress like this, you will match with me.
Speaker 1:Yeah. That's right. That's right. There's obviously a personal brand benefit to adopting a uniform. We've seen it with Jensen, Steve Jobs with the black turtleneck, Palmer Lucky with the with the Hawaiian shirt.
Speaker 1:Big news from Andrew Roll today. New round series. Are they running out of letters? Series h? H.
Speaker 1:Series h. 51, 61,000,000,000, something like that. Fantastic progress. You adopt the uniform, you become more iconic, you become more recognizable outside of your face and that builds your personal brand, your lore and it helps you sort of differentiate and stand out. Right?
Speaker 1:The flip side, the thing you got to watch out for is that if you are always dressed exactly the same and you never switch your wardrobe, clips of you saying something a decade ago can go viral. And if you're not if you're aging gracefully, it will look like you said them just yesterday. And that can be a big problem if, say, you're an AI CEO who, a decade ago, was reading some sci fi and thinking like, man, there's something to this Terminator thing. And then maybe in the past decade, you've done a lot of work. You've investigated the systems.
Speaker 1:You have a more informed position and opinion. Well, the old video of you still looks like you today. And so there might be something to leveling up the wardrobe and changing the wardrobe over time that actually creates more distance between, oh, well, clearly, that was
Speaker 2:This is an indirect way of saying you want Jensen to be in a leather sort of like, you know, sort of trench coat eventually, like flowing robes?
Speaker 1:Well, the easiest thing to do is go bald. That's what Jeff Bezos did. He was saying some crazy stuff back when he was building Amazon in the nineties and he's changed his opinion. Sure. It will be very evident from new clips that, oh, that's an old one because it's very it's very iconic, his older look.
Speaker 1:Now, his new look, he looks transformed. He looks very different.
Speaker 3:Well, I I don't think Jenth has to go bald, but he can do the the Bezos playbook, which is just get, like, get really jacked.
Speaker 1:Get really jacked.
Speaker 3:So as he gets more jacked, you'll just see, oh, yeah. There's I mean, he's looking like three twenty lean right there.
Speaker 1:There you
Speaker 3:go. Like, that must be pretty decent.
Speaker 1:$3.20. Jensen at $3.20 would be electric. Well, he's
Speaker 2:We have a video of the Air Force One Golden Palace.
Speaker 1:Okay.
Speaker 2:Pull it up.
Speaker 1:What is the Golden Palace?
Speaker 2:That's the
Speaker 1:Is that what they call the interior
Speaker 2:these The Air Force One that was gifted by Qatar.
Speaker 1:Okay. And that one is never going to be in use, but gonna go straight to the library, I think. Is that the idea? Or is it gonna get flown around? Well, let's let's watch the
Speaker 2:Presumably, it's gonna be used.
Speaker 1:Golden Palace. Really particular aesthetics here. It looks like a normal seven forty seven on the outside.
Speaker 2:Looks like a
Speaker 1:yacht. I feel like isn't there a big there's a big swing in in fuel efficiency based on the color of the plane. If you paint your plane black because you think it looks cool, it will attract more heat and you will burn a lot more fuel. And so most companies go with white. Spirit Airlines went yellow.
Speaker 1:I don't know if that had anything to do with their downfall. But you would think, is there a chance? Is there some weird economic logic where if you painted gold, the gold will reflect the sunlight and increase
Speaker 2:fuel Well, unfortunately, the exterior is not
Speaker 3:gonna Well, so you should wrap your plane in like a mirror like
Speaker 1:Yeah. Maybe. Surface. But, yeah, I don't know if that actually That
Speaker 3:would reflect the most.
Speaker 1:That would probably reflect the most. Right? Mirrored plane. There are some silver there are some silver bombers and and jets that are in service across The United States Air Force. I can't call upon it right
Speaker 2:now. This really is a sky yacht. Chessboard.
Speaker 1:You think anybody's played chess on there?
Speaker 3:I I Boardy chess.
Speaker 2:Yeah. The whole plane is actually used for Boardy chess, John.
Speaker 1:Boardy chess. AI is being put to good use visualizing Xi Jinping Donald Trump. Elon Musk and Tim Cook having a beer and, I guess, a cigarette as well in in China somewhere. And then look who pulled up if you scroll down. Jensen coming in from the back, looking pretty good.
Speaker 1:Looking pretty good. Maybe not three twenty lean, but he's certainly up there. Let's go through The Wall Street Journal's report and the what the editorial board had to say about the stakes of this summit. What what what's actually at stake. So The United States wants stability, but Chinese communist leader has larger ambitions, says The Wall Street Journal Journal's editorial board.
Speaker 1:President Trump visits visits Chinese president Xi Jinping in Beijing on Thursday, and the pre meeting US spin is a search for stability, in quotes. It's a nice idea as long as mister Trump doesn't think personal rapport can overcome mister Xi Jinping's anti American purposes, says The Wall Street Journal. The agenda ranges from trade to technology to Iran. On trade, the best outcome may be ratifying the status quo, a truce on tariffs with a promise from Beijing not to hold the world's rare earth supply hostage again. The markets, business leaders, no one wants chaos.
Speaker 1:Everyone can sort of work around a tariff plan if it's going
Speaker 2:to It is stay in really for long time. For Trump to be coming and being like, look, guys, all I'm asking for is a little stability. Yes. I just want stability. Yeah.
Speaker 2:I want calmness. Yes. I don't I don't want any conflict.
Speaker 1:Yes. Didn't he famously call himself a stable genius? That he stability has been part of his brand for a long time, at least the one that he projects. Mister Xi Jinping, on the others on the other hand, China's weak economy is an incentive for him to cooperate, and he'll hope to placate mister Trump with promises of buying more farm goods. We talked about this previously, more aircraft and other things.
Speaker 1:But mister Xi Jinping has made that promise before, and US farmers have never regained their lost market share in China. Rare Earth's ransom offer the Rare Earth's ransom offer may be more US advanced chip exports to China. Xi Jinping views artificial intelligence as a decisive theater in Beijing's competition with The United States, and he is trailing, though not by much, maybe six months by most people's estimates. The administration wants to talk with Beijing about AI guardrails and, by all means, keep the phone lines open. But don't expect much from AI arms control, and the best deterrent is US dominance on models and computing power.
Speaker 1:Beijing will be happy to make pronouncements about responsible stewardship and then pursue its own interests with little regard for norms or laws. Beijing is is engaging in, quote, industrial scale theft of American AI models. The Trump administration warned this year, and don't forget the Justice Department's indictment this year of a technology executive and associates allegedly running a sophisticated operation to divert high end chips to China. That was
Speaker 3:Super micro. Super micro.
Speaker 1:Yeah. They were doing the the the heater. What was it? The hair dryer?
Speaker 3:Hair dryer? Yeah. They're putting the fake shipping labels on
Speaker 1:fake shipping labels. Noticeably absent from this trip are the key leaders of the top AI labs. I mean, Elon Musk is there. Yes. And Jensen is there, obviously deeply involved in AI, as as are many of the other folks, Dina Powell McCormick at Meta.
Speaker 1:But you don't have Demis from Google. You don't have Sundar from Google, DeepMind. You don't have Dario from Anthropic or Sam Altman from OpenAI. And each one of those leaders has their own complicated relationships with the federal government and the Trump administration. So it's not shocking that they aren't there, but, it does feel like there's a little bit of a disconnect between the conversation that's happening in Silicon Valley and the conversation that's happening on the global geopolitical stage at the highest levels.
Speaker 1:And so if you were looking for answers to some of the biggest questions posed about how superintelligence will play out in the global stage, the AI 2027 scenario, the China wakes up scenario. You're going to have to keep waiting because that's not really what this is about. It's about maybe a little bit of semiconductor supply chain details and export restrictions, but not answering the big questions about what a U. S.-China relationship looks like in a post AGI world, a post ASI world, a post, you know, a fast takeoff scenario.
Speaker 2:OTP says, why is Meta there at all? Good question. All Meta platform products have been banned for quite a long time.
Speaker 1:Yeah.
Speaker 2:I don't think that will change. But they have this mannest thing. I think it might just be to show some friendliness Yeah. Some presence there. Again, I'd be shocked if there's any time between Xi and Trump that gets dedicated to Manus because like $2,000,000,000 is really air Small.
Speaker 2:When you look at all of these other issues.
Speaker 1:But But it is a big question for both economies. Not not only can American companies acquire Chinese companies that have relocated to Singapore and have sort of moved out. Like, how how strict will China be around maintaining talent and restricting exports of whole companies and technologies? There even like a single sentence on it from this talk will clearly resound throughout the industry. And so the Venus flytrap that Xi Jinping is setting for Mr.
Speaker 1:Trump is on Taiwan. Xi Jinping wants veto power over arms sales from The United States to Taiwan, and he is pressing for The United States to formally oppose Taiwanese independence as opposed to the current posture of not supporting it. Xi Jinping will argue the tweak is of no great consequence to Americans and stoke and stroke mister Trump's ego that he can bring peace to one more troubled region. Yet, that change would disrupt decades of US policy that, for all its delicate diplomatic wording, has held the peace. Taiwan is not the aggressor in the Taiwan Strait, a Xi Jinping fiction that opposing independence would indulge.
Speaker 1:Mister Trump might may not care about Taiwan's freedom or its example that a prosperous Chinese democracy is possible. But the president doesn't want a crisis on his watch, which would be an economic and geopolitical catastrophe. That's 100% accurate.
Speaker 2:He would never want an economic and geopolitical catastrophe No. On his watch.
Speaker 1:Xi Jinping will be looking to see if mister Trump suggests he won't defend Taiwan in the clutch. Trump's diplomacy is above all personal, and no one can predict what he'll do in the room. Japan and others in the region are watching with anxiety, a reminder that US support for Taipei is an interest that informs America's alliances around the world. One mistake would be not stop not stopping in Tokyo to advance Beijing in advance of Beijing as a signal of solidarity with Japan. Trump has said he'll bring up the case of political prisoner Jimmy Lai, but Xi Jinping won't move to release the 78 year old publisher who was convicted of bogus charges in Hong Kong unless he believes Trump's request is more than a token gesture.
Speaker 1:The US wants China's help on Iran and it would be an improvement if China at least stopped actively helping the enemy. Retired Navy Rear Admiral Mark Montgomery suggested last week that mister Trump should ask Xi Jinping directly if he's helping Iran with intelligence. And the Wall Street Journal goes on to say, the larger context for the summit is that the CCP continues to be the main financier and industrial base for the world's bad actors from Russia to Iran to and North Korea. The first Trump administration understood China as a strategic adversary, military, economic, and ideological. The second Trump admin is searching for detent.
Speaker 1:The and mister Trump is the chief dove. This has some merit if America spends the interlude diversifying its rare earth supply chain and passing a $1,500,000,000,000 defense budget to rearm, says the Wall Journal editorial board.
Speaker 2:Anyway Yeah. No. A lot of people are speculating that there's already been significant deals that have been made and that this whole thing is ceremonial. Because if if you bring if you make this, you know, huge trip and you bring all these leaders of industry Mhmm. And then you don't come away with some significant progress, like, just feels like a even bigger out.
Speaker 1:In somewhat related news, Anthropic has granted Mythos access to three major Japanese banks. Japan's three mega banks are set to gain access to Claude Mythos, the powerful artificial intelligence model developed by US startup Anthropic as soon as the May. The banks MUFG Bank, Sumitomo, Mitsui Banking Corp, and Mizuho Bank were likely informed of the move by The US Treasury Secretary Scott Besson in a meeting in Japan on Tuesday. This will mark the first time that a company from the East Asian nation has been granted access to Mythos. The AI model, can discover and exploit software security flaw laws far faster than earlier tech, had been restricted to just 50 or so corporates and organizations worldwide, including US firms, US banks, and U.
Speaker 1:K. Government organizations. So this isn't the first international expansion since The U. K. Did have access, now Japan does.
Speaker 1:Japanese Prime Minister Sane Takichi had instructed cabinet members to ramp up efforts to find cybersecurity weaknesses in Japan's infrastructure and minimize risks posed by cutting edge AI models like Mythos. Access to Mythos was likely mentioned in her meeting with Besant on Tuesday. And so Chris McGuire says, Tonight, the Secretary of the Treasury is personally vetting and approving each company that gets access to the most advanced U. S. AI model because the risks of the model being misused to hurt U.
Speaker 1:S. National security are so high. Also tonight, Jensen Huang is flying on Air Force One with President Trump to Beijing to sell China the AI chips it will use to develop its own mythos level AI model as soon as possible. The administration's AI policy remains inconsistent and incoherent. It is impossible to justify these two approaches simultaneously.
Speaker 1:And yeah, I'm still sympathetic to the export control take. At the same time, I feel like there's a larger negotiation that's going on, so I can sort of see both sides. But the interesting question that I've been noodling on that I haven't fully gotten to the bottom of is, Dario has said that open source community China is maybe six months behind Mythos, and that seems to fall in line with the progress that we're seeing from all the American labs. And so the interesting question is what would the mythos moment look like in China? Because in America, there was a showdown with the Department of War and Dario going back and forth and Emile Michael.
Speaker 1:And there was threat of a supply chain designation, which it doesn't feel like ever really went anywhere because the business is still cooking and it's available on all the hyperscaler clouds and the model's being granted to Japan. And so it feels like the administration has backed off of that. But it was a really tense moment, and it did call into question all debates around what rules and what authority should rest with the private sector versus versus the government. And America handled it in sort of a democratic way loosely, sort of evaluating the technology, having the option to sort of nationalize, and there's this bigger discussion around that. But in China, we've seen many times where tech companies have gotten really big and it feels like the CCP is applying pressure to the CEOs.
Speaker 1:And High Flyer is the company behind DeepSeek is in a very unique position where the founder has an immense amount of control. And, you know, no matter what he's two thinking
Speaker 2:billion of his own money Any art in a really low dilution round.
Speaker 1:Yeah. And I'm pretty sure he's a solo founder who, like, owns probably, like, majority control, at least majority voting control, if not majority economic control. And that's wildly different than Anthropic, where Dario had, like, 15 cofounders, tons of dilution from from different funding rounds. And we had talked about the SPV thing yesterday. Like, there are lots of people on the cap table.
Speaker 1:Like, Anthropic is going the way of like a typical American company, where there are lots of different stakeholders. They might be a public company soon, which means the government has more oversight as the SEC controls a lot of what they will do. And so you're in this odd scenario where you could have a similar level of technology deployed in China from a very closely held private company that is up against a much more aggressive, government. If DeepSeek is able to catch up, you know, there's some there's some, some evidence that, like, China's on a slightly shallower growth trajectory. But still, you know, if you take Dario's claim of six months, even if you extend that to a year, like, something is going to happen there where China is going to have their own mythos moment.
Speaker 1:And what that looks like and what we learn about it, I think is going to be dramatic and interesting. And also, it's just odd that there's this backdrop of all this stuff that's happening in AI in America. And then there's going to be talks over like, You guys want to buy more apples. Tyler, do you have any any thoughts on on this? Am I directionally correct on the timeline or, you know,
Speaker 3:this Yeah. I mean, it this concept
Speaker 1:seems like something's gonna happen.
Speaker 3:There's the graph that shows that open source is increasingly getting, like, further and further away from Yeah. From tier models. But, yeah, I don't know. It's just, like, so hard to tell, like, what's actually going on in China. Like, what Yeah.
Speaker 3:Like, what what happens when the CCP starts to to have, you know, more control over a company? Like, what does it actually look like
Speaker 1:Yeah.
Speaker 3:In in instantiation?
Speaker 1:Can they continue to be pro competition if they need to consolidate all of the black wells that are coming into the country into one data center, this network together, that can actually train a mythos level model? Right. That's that's that's a big question. SpaceX SpaceX.
Speaker 2:Google are in talks to launch data centers Yeah. In orbit. Deal between the two tech titans would give a boost to SpaceX business ahead of a historic public listing. Google is in talks for a rocket launch deal as the search giant expands its own efforts to put orbital data centers in space. Launch deal would put the two companies in partnership as they gear up to compete on orbital data centers, an unproven technology that SpaceX CEO Elon Musk has said is the next frontier for his rocket company.
Speaker 2:Google is also in discussions about a potential deal with other rocket launch companies. They got to at least have a stocking horse.
Speaker 1:How are we not talking about blimp data centers yet?
Speaker 2:I know.
Speaker 1:Sergey Brin has a blimp company. You know, Bezos has a rocket launch company. So there's a very logical line from AWS to space data centers through Blue Origin. But we got to put some GPUs on the blimps. We got to start mass manufacturing the blimps.
Speaker 1:This could be the thing. I mean, no no there's no nimbyism in the middle of the Pacific Ocean if there's just a bunch of blimp data centers floating around in a circle.
Speaker 3:Well, I think if you're already in the ocean, you should go down as well, you know, Atlantis mapping.
Speaker 1:Cooling.
Speaker 3:Yeah. Like, I feel like none of the ocean guys Yeah. That are working on ocean robotics are thinking about, like, putting ocean at the bottom of the ocean.
Speaker 1:Yeah. I mean, it feels easier than than than space data center. Insurance, the space is free. The land is free. You don't run into the regulatory stuff.
Speaker 1:Energy, a little bit tricky down there. Geothermal? Geothermal, maybe. I don't know.
Speaker 2:No. There's there's oil and natural gas reserves on the in the on the
Speaker 1:sea floor. Oxygen there? Because how do you burn the oil in the natural gas on water?
Speaker 2:Big
Speaker 1:Diving bell. Tube. Yeah. Scuba scuba tanks or something.
Speaker 2:Anyway Vacuative technology has been at the center of SpaceX's pitch to investors ahead of its planned IPO this summer Mhmm. Which is anticipated to be the largest IPO of all time. Last year, Google announced its own plans to launch prototype satellites by 2027 as part of a moonshot initiative called Project Suncatcher. It's working with another company Planet It's cool name. To build those satellites, tiny racks of machines and have them in satellites, test them out and then start scaling from there.
Speaker 1:Mhmm.
Speaker 2:Says Sundar, there's no doubt to me that a decade or so away we'll be viewing it as a more normal way to build data centers. A little bit of an interesting timeline there.
Speaker 1:It sounds like I
Speaker 2:thought There's we were no saying doubt to me Ten days. A decade or so away, we'll be viewing it as a more normal way. Yeah. A decade or so away.
Speaker 1:He's being a little cautious in his language Yeah. In his timelines. But
Speaker 2:was an early investor in SpaceX and now
Speaker 1:it's printing.
Speaker 2:Percent of the company. Yeah. Not bad. The other the other funny dynamic from SpaceX is Yeah. Deal making Mhmm.
Speaker 2:Recently is given that the OpenAI startup fund was an early investor in, I believe, Cursor's seed round
Speaker 1:True.
Speaker 2:An $8,000,000 round. OpenAI, at least the startup fund, will have some meaningful exposure to SpaceX.
Speaker 1:Yeah. SpaceX, an OpenAI backed company. That's the way people will introduce it. OpenAI backed SpaceXiPN.
Speaker 2:Yeah. Thought it was it was quite interesting having that happen while the whole trial was
Speaker 1:going Everyone owns everything. Everyone has diversified into every every company at this point, basically. We can flip over to the other financial news that's making headlines on the cover of The Wall Street Journal. Inflation accelerated 3.8% last month. Not good news.
Speaker 1:Joe Wiesenthal has a couple posts, but one is just man. And he says the headline, US April producer prices rose 6% year over year. The estimate was 4.8%. So obviously, the closure of the Strait Of Hormuz is having an effect. We were talking about Diet Cokes.
Speaker 1:You would think that the caffeine doesn't come from The Middle East, the The delicious caramel flavor or whatever else they put in this does not come from The Middle East. But aluminum, actually, there are smelters in The Middle East. Aluminum is in shorter supply because of the closure of the Strait Of Hormuz. And so Diet Coke is rapidly going out of stock. And so you need to load up if you are prepared.
Speaker 2:How many you got four or five pallets?
Speaker 1:I not actually gotten any. I'm not stockpiling Diet Coke yet. Who knows? Maybe prices go up. That's what inflation represents.
Speaker 1:And Wall Street is getting more anxious about it. So we can read through this. Surging energy prices have pushed investors' inflation expectations to multiyear highs. Tuesday's hot readout on consumer prices is intensifying Wall Street's anxiety about inflation. Even before the latest release of the consumer price index, inflation expectations had been climbing, a potential trouble spot in the market where stocks have largely shrugged off The US Iran conflict and the resulting energy shock.
Speaker 1:And so investors bet on inflation by buying and selling both ordinary US Treasuries and those that hedge the risk of inflation called TIPS, Treasury Inflation Protected Securities. The gaps between the yields of those two types of bonds known as the breakeven rate recently hit the highest level since October 2022, according to Federal Reserve data suggesting that investors expect annual inflation to average around 2.7% over the next five years. Now that's not entirely doom and gloom, but the risk here is that the AI boom, the GDP numbers are sort of concentrated in AI, CapEx and data centers. It's not evenly distributed. The real economy is only growing at 0.1%, while the real economy is suffering from 2.7% inflation over the next five years.
Speaker 1:That's a recipe for stagflation, stagnation plus inflation, a very rough thing for any economy to go through and something that, the market and the economy and the politicians should be focused on.
Speaker 2:In some ways, you know, who who knows how how history will view Powell, but like he landed he landed the plane.
Speaker 1:He did.
Speaker 2:And then, you know, we get war in The Middle East. And and now Kevin Worsch, in some ways, looks like he'll have just as tough of a job. Potentially. Potentially.
Speaker 1:So leave us five stars on Apple Podcast and Spotify. Sign up for the newsletter at tbpn.com, and we will see you tomorrow at 11:11AM Pacific sharp.
Speaker 2:We love you. Goodbye. Goodbye.