1 00:00:00,020 --> 00:00:03,380 Josh: There are some weeks where nothing happens and some weeks where it feels like 2 00:00:03,380 --> 00:00:05,740 Josh: years worth of news happens. 3 00:00:05,980 --> 00:00:09,080 Josh: This is one of those weeks. There is so much going on from the market crashing 4 00:00:09,080 --> 00:00:12,420 Josh: to Anthropic and OpenAI beefing over a Super Bowl commercial. 5 00:00:12,680 --> 00:00:15,420 Josh: There's a lot of crazy frontier stuff, but where I want to start in particular 6 00:00:15,420 --> 00:00:18,660 Josh: is with the markets because my God, they're getting destroyed. 7 00:00:18,660 --> 00:00:25,400 Josh: I think the total market cap of the S&P 500 is down $2 trillion over the last 48 hours. 8 00:00:25,840 --> 00:00:29,400 Josh: Microsoft, the fourth most valuable company in the world or something like that, 9 00:00:29,400 --> 00:00:32,320 Josh: they're down 20% in the last couple of weeks. 10 00:00:32,700 --> 00:00:36,940 Josh: I mean, things are getting hammered, but this sits at conflict with what the 11 00:00:36,940 --> 00:00:38,080 Josh: companies are actually saying. 12 00:00:38,240 --> 00:00:41,780 Josh: We just went through Google's earnings report yesterday, and they reported record 13 00:00:41,780 --> 00:00:44,660 Josh: blowout earnings across the board. And this is true for a lot of other companies. 14 00:00:44,800 --> 00:00:48,920 Josh: So clearly, there's this mismatch happening between public sentiment and what 15 00:00:48,920 --> 00:00:50,120 Josh: the actual companies are reporting. 16 00:00:50,420 --> 00:00:53,080 Josh: And I'm curious, I think we're going to spend a lot of time this episode getting 17 00:00:53,080 --> 00:00:56,920 Josh: into why and how to kind of navigate that as we move through the rest of earnings season 18 00:00:56,920 --> 00:01:00,100 Ejaaz: Yeah if we look at the mag 7 stock price 19 00:01:00,100 --> 00:01:03,100 Ejaaz: over the last week um they're down between 20 00:01:03,100 --> 00:01:06,600 Ejaaz: five to eleven percent with 21 00:01:06,600 --> 00:01:09,560 Ejaaz: this chart is horrific well yeah with the with the most valuable company 22 00:01:09,560 --> 00:01:12,400 Ejaaz: nvidia being down the most um of the 23 00:01:12,400 --> 00:01:15,160 Ejaaz: week which is just shocking right um so a lot of people are 24 00:01:15,160 --> 00:01:18,080 Ejaaz: calling this the end of the ai bubble 25 00:01:18,080 --> 00:01:21,260 Ejaaz: it's popping um you know that is over and um 26 00:01:21,260 --> 00:01:24,220 Ejaaz: there's an argument that a lot of this is triggered by to your point the 27 00:01:24,220 --> 00:01:27,280 Ejaaz: earnings reports that have been released over the last week we had microsoft 28 00:01:27,280 --> 00:01:31,740 Ejaaz: and a few others last week we had google yesterday and we got amazon um today 29 00:01:31,740 --> 00:01:36,260 Ejaaz: and what's crazy is like they're beating expectations but they're increasing 30 00:01:36,260 --> 00:01:40,240 Ejaaz: capex spend so i think the markets are at odds with this and they're kind of 31 00:01:40,240 --> 00:01:42,700 Ejaaz: like selling off out of fear that this might be an issue but 32 00:01:43,010 --> 00:01:46,670 Ejaaz: The obliteration is like pretty significant. You mentioned Microsoft. 33 00:01:46,950 --> 00:01:51,410 Ejaaz: It is down 21% over the last two weeks. 34 00:01:52,070 --> 00:01:57,390 Ejaaz: NVIDIA is down at 11%. Tesla is down 15%. But there is one company, 35 00:01:57,790 --> 00:02:02,490 Ejaaz: Josh, which you'll never guess, that is outperforming all of these guys over 36 00:02:02,490 --> 00:02:03,790 Ejaaz: that same time span. This is insane. 37 00:02:04,210 --> 00:02:07,670 Ejaaz: 7% over the last week. We have Apple. 38 00:02:08,270 --> 00:02:12,630 Josh: Apple. Could you believe that? Apple, the company that failed to participate 39 00:02:12,630 --> 00:02:16,850 Josh: in AI, is the winner of the AI market race this week, at least, 40 00:02:16,990 --> 00:02:18,790 Josh: over the last, what is that, five days? 41 00:02:18,950 --> 00:02:21,370 Josh: It's up six and a half percent relative to everyone else. 42 00:02:21,370 --> 00:02:22,050 Ejaaz: Josh, why do you think this is? 43 00:02:22,690 --> 00:02:25,610 Josh: Because they have no exposure. Can't hurt you if you're not in it. 44 00:02:25,970 --> 00:02:29,190 Josh: And what is their exposure to AI? A billion dollar deal with Google. 45 00:02:29,410 --> 00:02:33,890 Josh: And Google already pays them $20 billion for the search rights. So, I mean, Apple's up. 46 00:02:34,210 --> 00:02:37,250 Josh: And that's the thing is like, sure, I'm sure this was not calculated, 47 00:02:37,430 --> 00:02:40,750 Josh: but in a way, sitting on the sidelines did play a big role in the success this week. 48 00:02:41,450 --> 00:02:45,690 Ejaaz: Yeah, pretty insane. But let's get into the reason why everyone is freaking 49 00:02:45,690 --> 00:02:48,630 Ejaaz: out and the markets are dumping. It's capex spent. 50 00:02:48,990 --> 00:02:53,190 Ejaaz: Google is the largest perpetrator of this. In their earnings report that they 51 00:02:53,190 --> 00:03:00,810 Ejaaz: announced yesterday, they're targeting up to $185 billion of capex spend alone this year. 52 00:03:01,050 --> 00:03:05,830 Ejaaz: That is a gargantuan number, which they could use to acquire pretty much all 53 00:03:05,830 --> 00:03:13,270 Ejaaz: but 13 or 16 companies in the Fortune 500 index, which is just an insane stat. 54 00:03:13,510 --> 00:03:17,150 Ejaaz: The guided estimate that analysts had for this capex spend in 2026, 55 00:03:17,330 --> 00:03:19,630 Ejaaz: by the way, was $120 billion. 56 00:03:20,090 --> 00:03:20,990 Josh: 30% more. 57 00:03:21,350 --> 00:03:25,490 Ejaaz: 50%. No, 50% over. If there was 120, $60 billion over. 58 00:03:25,610 --> 00:03:26,370 Josh: Yeah. Oh my God. 59 00:03:26,490 --> 00:03:27,370 Ejaaz: That's a lot. Insane. 60 00:03:27,750 --> 00:03:31,630 Josh: Yeah. And I think this comes as a surprise because of how staggeringly large it is. 61 00:03:32,210 --> 00:03:37,070 Josh: I mean, basically doubling this year. 62 00:03:37,230 --> 00:03:40,670 Josh: In a world where there was steady growth, there is now this exponential growth. 63 00:03:40,810 --> 00:03:44,870 Josh: And that probably causes a lot of concern for the public stock market. 64 00:03:44,990 --> 00:03:48,690 Josh: But when you listen to why these companies are spending it, I think the answer 65 00:03:48,690 --> 00:03:51,730 Josh: becomes clear that the scaling laws still exist. 66 00:03:51,950 --> 00:03:56,170 Josh: And so long as you can put dollars in and get intelligence out at a rate that 67 00:03:56,170 --> 00:03:58,350 Josh: makes sense, then they're going to continue to do this. 68 00:03:58,450 --> 00:04:02,610 Josh: And for the first time ever, I mean, Google is basically going to have no free cash flow. 69 00:04:02,810 --> 00:04:06,310 Josh: All the dollars that come in that they make are going right back out into scaling this. 70 00:04:06,430 --> 00:04:10,410 Josh: In fact, I read this crazy statistic that the amount of CapEx spend Google is 71 00:04:10,410 --> 00:04:17,390 Josh: going to have this year in 2026 is equal to that between 1998 to 2021 combined. 72 00:04:17,630 --> 00:04:20,830 Josh: This is a tremendous amount of money being spent. 73 00:04:20,970 --> 00:04:24,190 Josh: And I think the market could view that as like a pretty high risk vector because 74 00:04:24,190 --> 00:04:26,590 Josh: they're spending all of the money that comes in. 75 00:04:26,690 --> 00:04:29,270 Josh: And what if these scaling laws don't continue? 76 00:04:30,000 --> 00:04:34,260 Josh: What if there is a glut somewhere in the supply chain? Like what type of downstream effects that have? 77 00:04:34,440 --> 00:04:37,600 Josh: How much can it hurt a company who's betting all of it on the fact that they 78 00:04:37,600 --> 00:04:40,220 Josh: can throw more money at the problem and get better intelligence? 79 00:04:40,540 --> 00:04:44,860 Ejaaz: This might be a hot take, but I think they're absolutely right to be spending 80 00:04:44,860 --> 00:04:47,340 Ejaaz: this amount of money. And I think the market is wrong. 81 00:04:47,560 --> 00:04:51,160 Ejaaz: Look at some of the highlights from their earnings reports. 82 00:04:51,960 --> 00:04:57,240 Ejaaz: Search, who everyone called the death of, is up 17% year upon year. 83 00:04:58,140 --> 00:05:03,840 Ejaaz: Gemini, monthly active users, is up to 750 million monthly active users. 84 00:05:04,320 --> 00:05:09,360 Ejaaz: Now, I just want to highlight that that is 100 to 150 million short of OpenAI's 85 00:05:09,360 --> 00:05:11,020 Ejaaz: current monthly active user. 86 00:05:11,220 --> 00:05:14,900 Ejaaz: So, you know, they're making billions, tens of billions from YouTube. 87 00:05:15,180 --> 00:05:19,180 Ejaaz: Their cloud revenue is up. By the way, that's the greatest signal that their 88 00:05:19,180 --> 00:05:20,500 Ejaaz: CapEx spend is justified. 89 00:05:20,500 --> 00:05:23,700 Ejaaz: The fact that most people are using their cloud infrastructure, 90 00:05:23,860 --> 00:05:27,740 Ejaaz: their TPU infrastructure and stuff like that to train or inference certain models. 91 00:05:27,740 --> 00:05:31,160 Ejaaz: So clearly, Google sees the demand for AI products. 92 00:05:31,300 --> 00:05:36,740 Ejaaz: And Sundar actually went on record to say that the thing that's keeping him up at night is... 93 00:05:37,700 --> 00:05:41,820 Ejaaz: The top question is definitely around compute capacity. And he talks about power, 94 00:05:41,980 --> 00:05:43,380 Ejaaz: land, supply chain constraints. 95 00:05:43,680 --> 00:05:47,540 Ejaaz: He can't get enough compute out there. So there's a conflict of opinion between 96 00:05:47,540 --> 00:05:50,620 Ejaaz: market investors and what the Mac 7 are actually saying. 97 00:05:50,860 --> 00:05:54,140 Josh: The difficult thing to wrap your head around is any way that you look at Google's 98 00:05:54,140 --> 00:05:56,560 Josh: earnings report, it is an incredible earnings report. 99 00:05:56,740 --> 00:06:01,300 Josh: I mean, it's a record across the board. It shattered expectations and estimates by a large margin. 100 00:06:01,420 --> 00:06:05,100 Josh: And I think people are really scared about this capex. But the reality is it's 101 00:06:05,100 --> 00:06:06,780 Josh: not just Google who's participating in this. 102 00:06:06,780 --> 00:06:12,560 Josh: We have this post on screen that shows a total of $680 billion between some 103 00:06:12,560 --> 00:06:17,560 Josh: of the top hyperscalers that they're planning to spend just in this year of 2026. 104 00:06:17,720 --> 00:06:23,820 Josh: What does it say? Almost $300 billion or 1% of GDP growth in CapEx from just these five companies. 105 00:06:24,400 --> 00:06:29,000 Josh: That is insane. And it's funny when you hear Jensen Huang on his earnings report 106 00:06:29,000 --> 00:06:31,860 Josh: say, we're expecting half a trillion dollars of revenue. 107 00:06:32,100 --> 00:06:35,340 Josh: Well, suddenly it kind of makes sense. I mean, this is where it's coming from. 108 00:06:35,440 --> 00:06:36,520 Josh: What are they going to spend that money on? 109 00:06:37,060 --> 00:06:41,200 Josh: Mostly gpus mostly new chips mostly the infrastructure to support the build 110 00:06:41,200 --> 00:06:44,300 Josh: out of these chips and the idea is that by the end of this year they'll have 111 00:06:44,300 --> 00:06:49,980 Josh: intelligence so strong that it will offset a lot of the other downsides that can come from this 112 00:06:50,580 --> 00:06:53,980 Josh: And I hope that they're right because, I mean, we've seen the effect on Google search. 113 00:06:54,140 --> 00:06:56,880 Josh: Everyone thought this was the pinnacle of the innovator's dilemma. 114 00:06:56,920 --> 00:07:01,100 Josh: But the reality is, is that search is up because Gemini now is sitting right 115 00:07:01,100 --> 00:07:04,160 Josh: at the top of all your search results and it yields pretty amazing results. 116 00:07:04,340 --> 00:07:07,100 Josh: So I find myself using Google a lot. They're winning. 117 00:07:07,400 --> 00:07:12,160 Josh: The market is continuing to prove that these scaling laws apply. 118 00:07:12,380 --> 00:07:15,660 Josh: And so long as the scaling laws continue to grow, dollars in intelligence out, 119 00:07:15,860 --> 00:07:18,220 Josh: this is probably going to be a trend that we continue to see. 120 00:07:18,540 --> 00:07:20,400 Josh: And the market is a little nervous about it. 121 00:07:20,580 --> 00:07:24,420 Ejaaz: To kind of put myself in the shoes of like an average investor, 122 00:07:24,720 --> 00:07:30,240 Ejaaz: I can anticipate that they're probably scared at the numbers that are being 123 00:07:30,240 --> 00:07:34,840 Ejaaz: spent and the percentage of cash reserves that are being spent by their darling companies. 124 00:07:35,080 --> 00:07:38,320 Ejaaz: Like these investors have sat pretty comfy for the last decade, right? 125 00:07:38,940 --> 00:07:42,340 Ejaaz: SaaS company, they look at the rev chart every quarter and they're like, 126 00:07:42,420 --> 00:07:45,280 Ejaaz: okay, cool, earnings per share is up, like let's invest, it makes more sense. 127 00:07:45,540 --> 00:07:51,160 Ejaaz: Now to see those margins compress, You know, it's undisputedly like obvious 128 00:07:51,160 --> 00:07:52,300 Ejaaz: why they're going to get scared. 129 00:07:52,420 --> 00:07:56,180 Ejaaz: They looked at Meta spending all that money on the Metaverse vision way back 130 00:07:56,180 --> 00:07:57,960 Ejaaz: when, and that ended up pretty badly. 131 00:07:58,120 --> 00:08:00,760 Ejaaz: So they're thinking this is probably going to wind up for everyone else. 132 00:08:01,610 --> 00:08:05,930 Ejaaz: CapEx spend isn't the only reason why investors are scared. 133 00:08:06,210 --> 00:08:10,350 Ejaaz: I'm showing you this tweet from an official report from JP Morgan this week, 134 00:08:10,450 --> 00:08:12,050 Ejaaz: which talks about enterprise software. 135 00:08:12,270 --> 00:08:17,230 Ejaaz: And the argument that they make in this investment thesis is that coding models, 136 00:08:17,410 --> 00:08:20,850 Ejaaz: specifically ClaudeCode, which is quoted like 50 times in this report, 137 00:08:21,190 --> 00:08:26,330 Ejaaz: is going to eat away at any traditional industry that could just simply be a 138 00:08:26,330 --> 00:08:29,270 Ejaaz: plugin into ClaudeCode or one of these coding models. 139 00:08:29,270 --> 00:08:33,610 Ejaaz: And the reason why they're making this point is the adoption rate for CodeCode 140 00:08:33,610 --> 00:08:39,870 Ejaaz: over the last two months is up more than like 350%. It's just gone completely parabolic. 141 00:08:40,130 --> 00:08:43,710 Ejaaz: It's overtaken OpenAI's codex, and we have more news on that later. 142 00:08:43,950 --> 00:08:50,670 Ejaaz: But the point is, it's automating about 50% to 60% of job roles for firms like 143 00:08:50,670 --> 00:08:52,650 Ejaaz: law firms and SaaS companies. 144 00:08:52,890 --> 00:08:56,410 Ejaaz: And the stocks are kind of responding in a very similar way. 145 00:08:56,410 --> 00:09:01,870 Ejaaz: The top law firms, I think, are down $250 billion this week. 146 00:09:02,010 --> 00:09:06,490 Ejaaz: And then SaaS companies on average, the top SaaS company index is down 10% to 147 00:09:06,490 --> 00:09:08,110 Ejaaz: 15% over the last two weeks. 148 00:09:08,190 --> 00:09:14,470 Ejaaz: So we're seeing a lot of this market reactionary stuff from updates from these AI models. 149 00:09:14,630 --> 00:09:17,490 Ejaaz: But one person kind of stands against the tide. 150 00:09:17,830 --> 00:09:21,290 Ejaaz: We've got Jensen Huang and a clip here from a recent appearance at the Cisco 151 00:09:21,290 --> 00:09:24,730 Ejaaz: AI Summit, where he basically says that the market is getting this very, 152 00:09:24,790 --> 00:09:30,130 Ejaaz: very wrong. Like, if you think about it, coding AI models aren't going to replace these functions. 153 00:09:30,350 --> 00:09:33,870 Ejaaz: They're going to use the tools that a lot of these SaaS companies have built. 154 00:09:34,050 --> 00:09:35,550 Ejaaz: And the market hasn't realized that. 155 00:09:36,190 --> 00:09:39,130 Josh: Yeah. So we're hearing two conflicting opinions. One is through the public market 156 00:09:39,130 --> 00:09:41,210 Josh: sentiment, which is clearly down only. 157 00:09:41,570 --> 00:09:44,050 Josh: And the other is through the actual builders who are creating the future, 158 00:09:44,150 --> 00:09:47,310 Josh: which are saying, hey, guys, it's actually going to be a pretty great future. 159 00:09:47,470 --> 00:09:49,270 Josh: We're building towards something pretty amazing. 160 00:09:49,490 --> 00:09:51,750 Josh: And I guess we'll see that play out over the next couple of weeks. 161 00:09:51,870 --> 00:09:53,630 Josh: But now it's time for some drama because... 162 00:09:54,520 --> 00:10:00,120 Josh: Yesterday was full of fireworks on the timeline, mostly due to Anthropic and 163 00:10:00,120 --> 00:10:04,460 Josh: their war that they're waging with OpenAI through the Super Bowl commercial 164 00:10:04,460 --> 00:10:06,240 Josh: or the series of Super Bowl commercials. 165 00:10:06,420 --> 00:10:09,060 Josh: They published, I think, three, four, maybe five of these things. 166 00:10:09,260 --> 00:10:13,500 Josh: And every single one is coming at OpenAI for their use of ads. 167 00:10:13,600 --> 00:10:14,700 Josh: They're really funny videos. 168 00:10:15,360 --> 00:10:18,920 Ejaaz: Let's show a clip. How do I communicate better with my mom? 169 00:10:19,800 --> 00:10:24,000 Josh: Great question. Improved communication with your mom can bring you closer. 170 00:10:24,520 --> 00:10:26,140 Josh: Here are some techniques you can try. 171 00:10:26,740 --> 00:10:31,400 Josh: Start by listening. Really hear what she's trying to say underneath her words. 172 00:10:31,900 --> 00:10:34,200 Josh: Build conversation from points of agreement. 173 00:10:34,960 --> 00:10:39,100 Josh: Find a connection through shared activity. Perhaps a nature walk. 174 00:10:39,960 --> 00:10:44,840 Josh: Or if the relationship can't be fixed, find emotional connection with other 175 00:10:44,840 --> 00:10:49,780 Josh: older women on Golden Encounters, the mature dating site that connects sensitive 176 00:10:49,780 --> 00:10:51,840 Josh: cubs with roaring cougars. 177 00:10:51,860 --> 00:10:54,260 Josh: Yeah, so I think you probably get the idea. 178 00:10:54,520 --> 00:10:59,040 Josh: Um, it's coming at them for ads and not only their ads, but how their voice 179 00:10:59,040 --> 00:11:02,660 Josh: advanced voice mode sounds, which is kind of robotic and not very human-like. 180 00:11:02,960 --> 00:11:05,840 Josh: And this started a war on the timeline. 181 00:11:06,400 --> 00:11:10,840 Ejaaz: Yeah. The basic thing that they're getting at here is OpenAI needs to add ads 182 00:11:10,840 --> 00:11:15,880 Ejaaz: and ruin their complete user experience and Claude, or Anthropic rather, never needs to. 183 00:11:16,340 --> 00:11:19,420 Ejaaz: Um, listen, I watched these ads and I laughed my head off. 184 00:11:19,540 --> 00:11:22,800 Ejaaz: It's hilarious. There's another ad where this guy is like doing a pull up and 185 00:11:22,800 --> 00:11:28,060 Ejaaz: he asks this AI, presumably ChatGPT, like, how do I get a six pack in a week? 186 00:11:28,180 --> 00:11:31,820 Ejaaz: And the guy is just like, sure, I can do this for you. And obviously that's not realistic. 187 00:11:32,100 --> 00:11:36,140 Ejaaz: I don't like very much that they're taking pot shots. But me personally, 188 00:11:36,140 --> 00:11:37,820 Ejaaz: I find it pretty hilarious. 189 00:11:38,480 --> 00:11:41,260 Ejaaz: The other kind of like subtle thing that I don't think a lot of people picked 190 00:11:41,260 --> 00:11:45,580 Ejaaz: up on here is it's a very clear statement from Anthropic that they're making 191 00:11:45,580 --> 00:11:50,220 Ejaaz: enough money to pay for all the capex spends and costs that they have, 192 00:11:50,360 --> 00:11:52,480 Ejaaz: which I don't think any other AI lab, 193 00:11:52,640 --> 00:11:55,620 Ejaaz: independent AI lab, might I say, that doesn't have like, you know, 194 00:11:55,740 --> 00:11:57,600 Ejaaz: search revenue coming like Google. 195 00:11:58,140 --> 00:12:04,820 Ejaaz: It's pretty impressive. And Darryl is projecting $70 billion ARR by 2027 and profitable in 2028. 196 00:12:05,060 --> 00:12:08,960 Ejaaz: So I don't know whether this is an egotistical thing, but it's certainly a confident one. 197 00:12:09,160 --> 00:12:12,480 Josh: I think it's probably a lot of ego. I'm not sure the, I mean, 198 00:12:12,560 --> 00:12:14,860 Josh: the amount of money these AI companies are spending relative to what, 199 00:12:15,000 --> 00:12:19,460 Josh: a $50 million YouTube spot is probably fairly small. 200 00:12:20,100 --> 00:12:25,400 Josh: The ads were received very well. People really liked these. I unfortunately didn't. 201 00:12:26,400 --> 00:12:30,120 Josh: The Super Bowl is this opportunity, right? You have 150 million concurrent viewers 202 00:12:30,120 --> 00:12:33,480 Josh: and what they've done is decided to spend all of this money and awareness on 203 00:12:33,480 --> 00:12:35,520 Josh: taking down other people instead of introducing 204 00:12:36,400 --> 00:12:39,320 Josh: introducing new users to ai in a world where it's 205 00:12:39,320 --> 00:12:42,020 Josh: mostly met with resistance i think a lot of what we're seeing 206 00:12:42,020 --> 00:12:44,820 Josh: in the public market is people getting nervous because they think 207 00:12:44,820 --> 00:12:49,180 Josh: it's just this one big bubble that's going to harm a lot of like the local economies 208 00:12:49,180 --> 00:12:51,860 Josh: through the data center build-outs and it's not actually going to generate enough 209 00:12:51,860 --> 00:12:57,160 Josh: value and it's an opportunity to introduce the technology in a way that helps 210 00:12:57,160 --> 00:13:00,760 Josh: bring those people on board but instead they're just kind of tearing each other 211 00:13:00,760 --> 00:13:04,420 Josh: down through this like trolling ad thing so 212 00:13:05,120 --> 00:13:08,300 Josh: Not my favorite way of displaying ads, but I mean, nonetheless, 213 00:13:08,540 --> 00:13:12,740 Josh: it will certainly get attention. And it attracted some attention, 214 00:13:12,960 --> 00:13:14,960 Josh: right? From who is this OpenAI CMO? 215 00:13:15,220 --> 00:13:20,060 Ejaaz: Yeah, Katie Rauch here claims that the anthropic ads are kind of childish and 216 00:13:20,060 --> 00:13:22,820 Ejaaz: inaccurate. And in her defense, she's kind of right. 217 00:13:23,260 --> 00:13:29,120 Ejaaz: OpenAI has explicitly said that they're not going to bake in sponsored advertisements into responses. 218 00:13:29,400 --> 00:13:34,740 Ejaaz: And any kind of adverts that are placed into their responses will be highlighted as such. 219 00:13:34,880 --> 00:13:38,920 Ejaaz: So it specifically won't be in a voice feature like what these Super Bowl ads show. 220 00:13:39,060 --> 00:13:43,460 Ejaaz: So it's kind of deceiving. And I see Katie's point, but it's also kind of, 221 00:13:43,600 --> 00:13:46,300 Ejaaz: it comes across as insecure from OpenAI. 222 00:13:46,500 --> 00:13:51,340 Ejaaz: I wish they had just kept quiet and maybe posted their recent like codec signups, 223 00:13:51,480 --> 00:13:53,720 Ejaaz: for example, which just hit like a million. I don't know, Josh, 224 00:13:53,840 --> 00:13:54,820 Ejaaz: do you have a different opinion? 225 00:13:55,240 --> 00:13:57,720 Josh: Yeah, I'm just so disappointed in both of these companies. My God, 226 00:13:57,880 --> 00:14:03,220 Josh: they have such an opportunity to create a positive looking platform for AI in 227 00:14:03,220 --> 00:14:04,480 Josh: a world that really needs it. 228 00:14:04,640 --> 00:14:07,520 Josh: It's like crypto went through this phase where it was the most hated thing in 229 00:14:07,520 --> 00:14:10,140 Josh: the world. And it still hasn't quite reached that adoption because they haven't 230 00:14:10,140 --> 00:14:12,080 Josh: convinced people why it's good for the world. 231 00:14:12,320 --> 00:14:17,480 Josh: And AI very clearly is a tool made for good. And this is such an amazing opportunity 232 00:14:17,480 --> 00:14:19,500 Josh: to introduce so many people to that idea. 233 00:14:19,760 --> 00:14:24,220 Josh: And instead, they're using it to fight against each other. And it's so exhausting. 234 00:14:24,380 --> 00:14:28,680 Josh: It's so tiresome. And it feels reflective of companies that don't have leadership 235 00:14:28,680 --> 00:14:30,060 Josh: with clear values or vision. 236 00:14:30,440 --> 00:14:33,660 Josh: Because I think about old school Apple and their marketing department. 237 00:14:34,000 --> 00:14:36,360 Josh: And granted, they're the biggest winner, not because they're doing the right 238 00:14:36,360 --> 00:14:38,460 Josh: thing right now, but because they've actually missed the boat. 239 00:14:39,020 --> 00:14:42,100 Josh: They're washed up and they're not what they used to be. But in a previous life, 240 00:14:42,720 --> 00:14:46,220 Josh: Given the opportunity to have a platform to reach 150 million concurrent viewers, 241 00:14:46,680 --> 00:14:51,840 Josh: it's hard to believe that they wouldn't use that as a platform to inspire new people. 242 00:14:51,840 --> 00:14:54,960 Josh: And to get them excited about the new products they were offering that allowed 243 00:14:54,960 --> 00:14:57,580 Josh: them to leverage this technology that's indistinguishable from magic. 244 00:14:57,820 --> 00:14:59,440 Josh: And all we're seeing is... 245 00:14:59,760 --> 00:15:02,820 Josh: Like these companies kind of tearing each other down and it's exhausting, 246 00:15:02,840 --> 00:15:06,580 Josh: it's zero sum, and it's a testament to the focus of these companies, 247 00:15:06,740 --> 00:15:08,600 Josh: which is being better than the other one. 248 00:15:08,920 --> 00:15:12,060 Josh: And I guess signaling that you are better than the other one in exchange for 249 00:15:12,060 --> 00:15:15,320 Josh: earning more dollars so you could pay off your debt so you could continue to scale. 250 00:15:15,700 --> 00:15:19,440 Josh: And I don't know, OpenAI, they have a Super Bowl commercial that they teased, 251 00:15:19,560 --> 00:15:24,480 Josh: that Sam Altman teased, and it seems to be more directionally what my preference 252 00:15:24,480 --> 00:15:28,360 Josh: would be, which is just optimistic about the tool and the tools and the builders 253 00:15:28,360 --> 00:15:30,100 Josh: and all the things associated. with that. 254 00:15:30,240 --> 00:15:35,200 Ejaaz: I think OpenAI has had a shift of culture and direction over the last three months. 255 00:15:35,320 --> 00:15:39,500 Ejaaz: They called it Code Red, what was it, two months ago when Google released Gemini 256 00:15:39,500 --> 00:15:43,560 Ejaaz: 3 and it was like marginally better than ChatGPT. 257 00:15:43,880 --> 00:15:48,980 Ejaaz: So Sam decided to focus on two main things, making a better generalized AI model, 258 00:15:49,140 --> 00:15:52,680 Ejaaz: an LLM, a chatbot, and the new best coding model. 259 00:15:52,820 --> 00:15:59,000 Ejaaz: And we're starting to see the emergence of that this week. We have a new Codex 260 00:15:59,000 --> 00:16:06,160 Ejaaz: model app specifically that can run on your desktop, similar to Claude Code's desktop app. 261 00:16:06,420 --> 00:16:08,840 Ejaaz: But it's cool for a few different reasons. 262 00:16:09,640 --> 00:16:11,900 Ejaaz: Something that I can pull off the top of my head that I thought was awesome 263 00:16:11,900 --> 00:16:16,540 Ejaaz: is you can now create a bunch of coding agents and run them in parallel. 264 00:16:16,940 --> 00:16:21,220 Ejaaz: The other second cool feature is that it has a bunch of automated functions 265 00:16:21,220 --> 00:16:24,660 Ejaaz: that you can run in the background. So even whilst you sleep overnight, 266 00:16:24,900 --> 00:16:28,040 Ejaaz: you can now have this coding tool do a bunch of stuff for you. 267 00:16:28,240 --> 00:16:31,960 Ejaaz: Now, it's worth saying that this is something that Claude Code can kind of already 268 00:16:31,960 --> 00:16:36,180 Ejaaz: do, but I'm happy to see that OpenAI is finally investing in the things that 269 00:16:36,180 --> 00:16:38,320 Ejaaz: I think are super important. I think they're a little late to the game. 270 00:16:38,440 --> 00:16:42,160 Ejaaz: I think they got distracted with social media stuff and hardware stuff and chip 271 00:16:42,160 --> 00:16:45,900 Ejaaz: stuff, but it's nice to see that they're currently focusing and shipping right now. 272 00:16:46,200 --> 00:16:50,980 Josh: Yeah, I think there's two schools of audience for this, for the people who are 273 00:16:50,980 --> 00:16:54,640 Josh: listening. One is like if you are a casual user of AI who wants to experiment, 274 00:16:55,140 --> 00:16:58,320 Josh: the Claude desktop application is probably your best bet. 275 00:16:58,730 --> 00:17:01,470 Josh: It has chat it has agent and it 276 00:17:01,470 --> 00:17:04,410 Josh: has code all under one roof if you are 277 00:17:04,410 --> 00:17:07,370 Josh: serious about coding or serious about creating projects or 278 00:17:07,370 --> 00:17:12,310 Josh: developing new software codex is a pretty compelling product and i would strongly 279 00:17:12,310 --> 00:17:16,630 Josh: encourage downloading it one because the model is fantastic and the app is actually 280 00:17:16,630 --> 00:17:20,670 Josh: pretty good but two because they doubled the usage limits so one of the problems 281 00:17:20,670 --> 00:17:23,810 Josh: with using cloud code is if you're not paying 200 a month even if you are you 282 00:17:23,810 --> 00:17:25,630 Josh: run into the wall of token limits pretty quick. 283 00:17:26,190 --> 00:17:29,710 Josh: Codex, the limit is much higher and the outputs are much stronger. 284 00:17:29,850 --> 00:17:31,710 Josh: So if you're someone who does actually write code for a living, 285 00:17:31,870 --> 00:17:35,930 Josh: I think you'll find a lot of success and a lot of pleasure that comes from using Codex. 286 00:17:36,050 --> 00:17:39,130 Josh: And it's reflected in the downloads, right? Like they have a huge amount of downloads. 287 00:17:39,330 --> 00:17:44,570 Ejaaz: I was about to say, this tweet says there's been over 500k Codex app downloads since Monday. 288 00:17:44,750 --> 00:17:49,590 Ejaaz: It's actually more than that right now. They just hit 1 million Codex downloads 289 00:17:49,590 --> 00:17:55,090 Ejaaz: and users right now, which sounds very impressive, but I think is less than like 0.1, 290 00:17:55,250 --> 00:17:59,870 Ejaaz: not 0.1, but like 0.5% or less than a percent of their entire monthly active user base. 291 00:17:59,990 --> 00:18:03,350 Ejaaz: But to your point, Josh, not everyone's going to be using this thing. 292 00:18:03,450 --> 00:18:08,810 Ejaaz: This is for a specific type of audience that wants to kind of code either seriously or vibe code. 293 00:18:09,130 --> 00:18:13,090 Ejaaz: Now, a final point that I want to make on this is I've spoken to a bunch of 294 00:18:13,090 --> 00:18:17,670 Ejaaz: really talented software engineers recently, and they repeatedly claim that 295 00:18:17,670 --> 00:18:21,330 Ejaaz: Codex is a better coding agent than ClaudeCode. 296 00:18:21,490 --> 00:18:25,430 Ejaaz: They say ClaudeCode produces more bugs in serious software development, 297 00:18:25,490 --> 00:18:27,550 Ejaaz: but it's a much better orchestrator. 298 00:18:27,810 --> 00:18:33,170 Ejaaz: So the setup that a lot of these engineers have is they set up Claude Code and 299 00:18:33,170 --> 00:18:37,010 Ejaaz: they get it to spin up instances of OpenAI's codecs and manage it. 300 00:18:37,090 --> 00:18:40,610 Ejaaz: So in a weird way, although these companies are at odds with each other, 301 00:18:40,890 --> 00:18:43,070 Ejaaz: although they're releasing Super Bowl ads that are fighting each other, 302 00:18:43,450 --> 00:18:45,550 Ejaaz: they're kind of working best synergistically. 303 00:18:45,750 --> 00:18:48,730 Ejaaz: And I just, the winners are the software engineers coming out of all of this. 304 00:18:49,430 --> 00:18:52,690 Josh: Yeah. I mean, as always, the user wins big time. And I think... 305 00:18:53,130 --> 00:18:56,330 Josh: Doubling the usage limits is a perfect example of that where they 306 00:18:56,330 --> 00:18:59,290 Josh: want a compelling reason to go over and that's what 307 00:18:59,290 --> 00:19:02,250 Josh: we're getting is double the amount of token usage an interesting 308 00:19:02,250 --> 00:19:05,490 Josh: thing that's happened with chat gpt recently or open ai products in 309 00:19:05,490 --> 00:19:08,410 Josh: general is there's a lot of downloads to be had there's like 310 00:19:08,410 --> 00:19:11,390 Josh: the chat gpt app there's sora there is their new research 311 00:19:11,390 --> 00:19:14,710 Josh: app there is now codex app they've really unbundled 312 00:19:14,710 --> 00:19:17,810 Josh: a lot of their offering and segmented it into separate 313 00:19:17,810 --> 00:19:21,250 Josh: silos which i think is probably confusing and difficult uh again 314 00:19:21,250 --> 00:19:24,010 Josh: the claw desktop app has everything under one roof 315 00:19:24,010 --> 00:19:26,950 Josh: it's very convenient i think we'll start to see the actual 316 00:19:26,950 --> 00:19:29,730 Josh: user experience of these things matter and that's one way in which it very clearly 317 00:19:29,730 --> 00:19:33,850 Josh: matters for the average user having it all under one roof is a nice perk but 318 00:19:33,850 --> 00:19:39,590 Josh: now going to outer space news we earlier this week covered spacex and xai merging 319 00:19:39,590 --> 00:19:44,710 Josh: together spacex acquiring xai to turn it into a single company prior to IPO-ing. 320 00:19:44,870 --> 00:19:48,490 Josh: This is going to be the biggest IPO of the week. I highly suggest watching that 321 00:19:48,490 --> 00:19:51,070 Josh: episode if you want to get up to speed. But there are some new developments 322 00:19:51,070 --> 00:19:52,350 Josh: in this story, right, AHS? 323 00:19:52,770 --> 00:19:59,410 Ejaaz: Oh, yeah. So it was announced, I think, a few weeks ago that Elon Musk or SpaceX 324 00:19:59,410 --> 00:20:01,370 Ejaaz: specifically had filed to the FCC, 325 00:20:01,630 --> 00:20:07,750 Ejaaz: which is basically the Space Bureau, a request to launch one million satellites 326 00:20:07,750 --> 00:20:09,810 Ejaaz: into lower orbit in order to 327 00:20:09,810 --> 00:20:15,390 Ejaaz: set up a constellation which will make the first AI data center in space. 328 00:20:15,610 --> 00:20:19,530 Ejaaz: The idea with this constellation is that it'll harness the energy directly from 329 00:20:19,530 --> 00:20:24,530 Ejaaz: sunlight, churn and transform that energy into compute, which can be used to 330 00:20:24,530 --> 00:20:28,450 Ejaaz: train AI models, presumably the newer Grok models that come up. 331 00:20:28,530 --> 00:20:32,450 Ejaaz: And the reason why this is happening is the entire pitch or thesis of SpaceX, 332 00:20:32,710 --> 00:20:35,050 Ejaaz: which you should check out in the episode, which is, you know, 333 00:20:35,150 --> 00:20:35,870 Ejaaz: they think that it's going to 334 00:20:35,870 --> 00:20:39,070 Ejaaz: be the cheapest and most efficient way to train AI models in the future. 335 00:20:39,290 --> 00:20:43,750 Ejaaz: But the major update from this, Josh, is that it got approved so legally. 336 00:20:44,400 --> 00:20:47,940 Ejaaz: Legally, we can now launch these million satellites and we're off to the races. 337 00:20:48,180 --> 00:20:51,160 Josh: It's going to happen. There's no doubt in my mind that this is going to happen. 338 00:20:51,260 --> 00:20:53,220 Josh: And it'll happen before the end of the decade. 339 00:20:53,420 --> 00:20:56,660 Josh: In fact, Elon just went on record again saying that within the next 36 months, 340 00:20:56,800 --> 00:20:59,900 Josh: he strongly suspects he'll be able to get Starship working at scale at a level 341 00:20:59,900 --> 00:21:02,320 Josh: required to start putting these AI data centers in space. 342 00:21:02,640 --> 00:21:06,120 Josh: But I also saw a headline that seemed a little confusing to me. 343 00:21:06,460 --> 00:21:09,600 Josh: And we talked about briefly before the show, but I really want to dig into it 344 00:21:09,600 --> 00:21:11,500 Josh: now because I don't know if I can get behind this one. 345 00:21:11,820 --> 00:21:16,100 Ejaaz: I wondered if you saw me sneak this one and Josh Shoy to surprise you. 346 00:21:16,200 --> 00:21:23,480 Ejaaz: But yes, it's reported from Reuters that Starlink might be launching their own phone. 347 00:21:23,780 --> 00:21:28,220 Ejaaz: Now, you and I got into a bit of an argument as to what phone means to me. 348 00:21:28,960 --> 00:21:32,280 Ejaaz: It's a cell phone. It's like, I'm not buying the latest iPhone. 349 00:21:32,280 --> 00:21:34,640 Ejaaz: I'm buying the new Starlink smartphone. 350 00:21:34,960 --> 00:21:37,000 Ejaaz: But you had a different idea, Josh. Walk me through it. 351 00:21:37,100 --> 00:21:40,040 Josh: There's absolutely no way SpaceX is making a smartphone. 352 00:21:40,480 --> 00:21:43,620 Josh: I don't know how more clear I can be about this. It's not going to happen. 353 00:21:43,820 --> 00:21:46,880 Josh: Don't get your hopes up. They are not making a smartphone. 354 00:21:47,120 --> 00:21:51,420 Josh: What I suspect happened is some rumor got out that they were making some sort 355 00:21:51,420 --> 00:21:54,260 Josh: of mobile device, and that was interpreted as a smartphone. 356 00:21:54,500 --> 00:21:58,340 Josh: The complexities required into making a smartphone are so high, 357 00:21:58,540 --> 00:22:01,300 Josh: particularly in a world in which they need to start learning how to make chips 358 00:22:01,300 --> 00:22:05,060 Josh: through this Tesla fab, I don't think there's enough resources in the Musk industry 359 00:22:05,060 --> 00:22:09,440 Josh: universe to allocate to building a smartphone, nor are there an incentive to actually do so. 360 00:22:09,620 --> 00:22:14,180 Josh: What I think is more likely is this mobile device is probably something similar 361 00:22:14,180 --> 00:22:16,140 Josh: to an old school mobile hotspot. 362 00:22:16,560 --> 00:22:19,600 Josh: The newest opportunity for Starlink is direct-to-cell connectivity. 363 00:22:19,860 --> 00:22:23,380 Josh: So as they deploy these million satellites, a lot of that cluster is going to 364 00:22:23,380 --> 00:22:26,480 Josh: be Starlink V3 satellites, which have direct-to-cell capabilities, 365 00:22:26,680 --> 00:22:30,320 Josh: meaning if you have a smartphone or a device with a capable chip, 366 00:22:30,600 --> 00:22:34,840 Josh: you can get Wi-Fi or a cellular connection anywhere in the world that Starlink reaches. 367 00:22:35,040 --> 00:22:38,840 Josh: There are no dead zones. A lot of devices will not have support for this. 368 00:22:38,920 --> 00:22:40,440 Josh: So what is going to need to be the bridge? 369 00:22:40,600 --> 00:22:46,760 Josh: Some sort of mobile hotspot device that allows you to connect to this direct-to-cell service. 370 00:22:46,900 --> 00:22:49,240 Josh: And I think that's probably what this is. For them to make a smartphone, 371 00:22:49,340 --> 00:22:50,520 Josh: it doesn't make any sense at all. 372 00:22:50,760 --> 00:22:55,060 Ejaaz: Yeah, I have to. Listen, I'm bullish about a lot of ideas, and especially if 373 00:22:55,060 --> 00:22:58,860 Ejaaz: it has Elon at the helm, there's a high chance that it's probably going to get like real. 374 00:22:59,440 --> 00:23:03,860 Ejaaz: I don't buy this one. I think if it does become a consumer hardware device, 375 00:23:04,020 --> 00:23:08,880 Ejaaz: it's going to be something that is used or distributed in like kind of like the world nations, 376 00:23:09,420 --> 00:23:14,700 Ejaaz: kind of replacing the average old Nokia brick phone to give people basic access 377 00:23:14,700 --> 00:23:16,120 Ejaaz: to the internet and apps. 378 00:23:16,240 --> 00:23:20,080 Ejaaz: And of course, it'll come pre-installed with Grok and a few other of XAI or 379 00:23:20,080 --> 00:23:23,560 Ejaaz: SpaceX or whatever the entity is called going forwards. 380 00:23:23,560 --> 00:23:26,880 Ejaaz: There is actually a final bit of news on the SpaceX front, Josh, 381 00:23:27,000 --> 00:23:32,800 Ejaaz: which I don't know if you saw, but for the first time in, I believe, I think it's 50 years, 382 00:23:33,480 --> 00:23:36,380 Ejaaz: ticker X became available. 383 00:23:36,620 --> 00:23:39,840 Josh: I think it was 125 years, actually. It was a huge amount of time. 384 00:23:39,960 --> 00:23:44,400 Ejaaz: 125 years. Oh my God. And then literally a day later after that news broke, 385 00:23:44,560 --> 00:23:47,460 Ejaaz: it had recently got acquired by a secret entity. 386 00:23:47,740 --> 00:23:53,200 Ejaaz: Now I'm speculating here, but if I had to bet, it's going to be SpaceX, essentially. 387 00:23:53,480 --> 00:23:55,560 Ejaaz: I think it's going to be the universal ticker. 388 00:23:56,020 --> 00:23:59,860 Ejaaz: Elon Musk saw the vision when he acquired, or rather when he founded PayPal. 389 00:23:59,860 --> 00:24:02,660 Josh: Yeah united states steel was the previous 390 00:24:02,660 --> 00:24:05,340 Josh: company that owned it and um it appears that they 391 00:24:05,340 --> 00:24:08,180 Josh: have gotten acquired or they got merged it was the uh 392 00:24:08,180 --> 00:24:11,540 Josh: yeah first time in 124 years after u.s steel so 393 00:24:11,540 --> 00:24:14,260 Josh: it seems poetic that now is the 394 00:24:14,260 --> 00:24:18,840 Josh: time that they can claim that handle and go public with the x handle and then 395 00:24:18,840 --> 00:24:21,940 Josh: who knows maybe spin them all together but for those of you who bet on that 396 00:24:21,940 --> 00:24:26,600 Josh: on polymarket congratulations you are looking like a pretty hefty payday now 397 00:24:26,600 --> 00:24:31,260 Josh: we have some sci-fi news right this was this was a really cool thing for me 398 00:24:31,260 --> 00:24:32,560 Josh: do you want to introduce this topic 399 00:24:33,420 --> 00:24:38,380 Ejaaz: Well, I want you to introduce it because I'm used to Palmer Luckey tweets being all about U.S. 400 00:24:38,580 --> 00:24:41,660 Ejaaz: Weaponry and bioweaponry. Why is he tweeting about mouse brains? 401 00:24:41,920 --> 00:24:44,680 Josh: Okay, this is Palmer Luckey, the founder and CEO of Anduril, 402 00:24:44,820 --> 00:24:48,720 Josh: which is the largest private defense contracting company in the U.S. 403 00:24:48,800 --> 00:24:52,280 Josh: And they normally make missiles and rockets and drones. 404 00:24:52,500 --> 00:24:57,400 Josh: But Palmer is talking about this biological computer that was used in one of 405 00:24:57,400 --> 00:25:01,940 Josh: these racing games that they play. So there's a racing competition where some 406 00:25:01,940 --> 00:25:05,840 Josh: sort of rules take place. But the noteworthy thing is that one of these racing 407 00:25:05,840 --> 00:25:07,380 Josh: devices was not like the other. 408 00:25:07,540 --> 00:25:10,260 Josh: And it's because it used a biological computer. 409 00:25:10,620 --> 00:25:13,640 Josh: And what is a biological computer? Well, it's exactly what it sounds like. 410 00:25:13,740 --> 00:25:18,920 Josh: It takes actual brain cells from a living thing and trains them similarly to 411 00:25:18,920 --> 00:25:21,340 Josh: how you would train a large language model, which is really interesting. 412 00:25:21,480 --> 00:25:26,680 Josh: So in this case, they took the biological brain cells of a mouse, they put them on a chip. 413 00:25:26,920 --> 00:25:30,480 Josh: And they train those neurons the same way that you would train an LLM. 414 00:25:30,620 --> 00:25:35,000 Josh: Meaning when presented with an obstacle in front of you, they were to train 415 00:25:35,000 --> 00:25:38,620 Josh: those neurons to fire in a way that maneuvers away from the obstacle. 416 00:25:38,780 --> 00:25:43,620 Josh: And through this reinforcement process, through this training of what's good, what's bad, 417 00:25:44,120 --> 00:25:48,220 Josh: giving values to each one and slowly iterating through the progress, 418 00:25:48,360 --> 00:25:52,460 Josh: they were actually able to make it work in a way that is kind of indistinguishable 419 00:25:52,460 --> 00:25:54,960 Josh: from a silicon-based LLM. 420 00:25:55,100 --> 00:25:58,660 Josh: And to me, I think it's really fascinating because it shows that there is 421 00:25:59,400 --> 00:26:02,860 Josh: More possibilities when it comes to building compute 422 00:26:02,860 --> 00:26:05,720 Josh: there's more efficiency gains to be had because when 423 00:26:05,720 --> 00:26:09,720 Josh: you think about the optimal state of memory compression 424 00:26:09,720 --> 00:26:12,780 Josh: right and the ability to like solve cognitive problems 425 00:26:12,780 --> 00:26:18,220 Josh: the brain is far more efficient and far more compressed and just capable than 426 00:26:18,220 --> 00:26:21,800 Josh: any sort of silicon chip and although it's kind of weird that they're taking 427 00:26:21,800 --> 00:26:26,440 Josh: mouse brain cells and maybe soon human brain cells i did find it super interesting 428 00:26:26,440 --> 00:26:30,080 Josh: just to see that there is experimentation happening with biological computers, 429 00:26:30,260 --> 00:26:31,900 Josh: which is very different than silicon-based ones. 430 00:26:32,440 --> 00:26:37,860 Ejaaz: Yeah, I mean, I'm at odds in my head because for years now, I believe that like 431 00:26:37,860 --> 00:26:40,560 Ejaaz: silicon is the only way to process all of this stuff quick enough. 432 00:26:40,960 --> 00:26:46,940 Ejaaz: But then you have startups like Neuralink, which are aiming to combine both 433 00:26:46,940 --> 00:26:51,620 Ejaaz: silicon and brain tissue matter, right, into one kind of like synonymous function. 434 00:26:52,000 --> 00:26:54,920 Ejaaz: And this is kind of like evidence or a sign that it might actually work. 435 00:26:54,920 --> 00:26:59,540 Ejaaz: My bet is I think Silicon actually does a great job of executing the commands, 436 00:26:59,780 --> 00:27:03,660 Ejaaz: but less of a great job of anticipating and being intuitive. 437 00:27:04,320 --> 00:27:07,440 Ejaaz: This is like my guess, by the way. I don't have any proof about this. 438 00:27:07,540 --> 00:27:08,960 Ejaaz: So it's really cool to see. 439 00:27:09,200 --> 00:27:14,820 Ejaaz: And I wonder if something like this kind of plays into other stuff that Palmolaki kind of builds. 440 00:27:15,180 --> 00:27:18,920 Ejaaz: I just find it weird that he's tweeting about this specifically when he typically 441 00:27:18,920 --> 00:27:20,480 Ejaaz: talks about like kind of the weaponry stuff. 442 00:27:20,480 --> 00:27:24,920 Ejaaz: Maybe there's a drone angle here where like a soldier with a helmet can basically 443 00:27:24,920 --> 00:27:29,280 Ejaaz: think things and the drone does what he thinks um so there's some really cool 444 00:27:29,280 --> 00:27:34,480 Ejaaz: sci-fi opportunity here um but i want to switch to this this next crazy story 445 00:27:34,480 --> 00:27:36,320 Ejaaz: josh i don't know if you saw this but, 446 00:27:36,920 --> 00:27:42,340 Ejaaz: Someone launched an app called rentahuman.ai. 447 00:27:42,820 --> 00:27:49,820 Ejaaz: And the basic theme or function here is as a human, you can go on and volunteer 448 00:27:49,820 --> 00:27:54,640 Ejaaz: your time for an AI agent to pay you to do a specific task. Now, 449 00:27:54,700 --> 00:27:56,200 Ejaaz: I'll give you a very clear example. 450 00:27:56,400 --> 00:28:03,280 Ejaaz: An AI agent came onto the site and paid someone $150 to go out on the street, 451 00:28:03,600 --> 00:28:07,580 Ejaaz: hold up a sign that said, an AI made me do this. 452 00:28:07,720 --> 00:28:11,880 Ejaaz: And then in brackets underneath it as a subtitle, and my pride is at stake, 453 00:28:12,020 --> 00:28:13,700 Ejaaz: but I don't care. This is insane. 454 00:28:13,900 --> 00:28:19,100 Ejaaz: And the first example of an AI agent kind of using human tissue and human muscle 455 00:28:19,100 --> 00:28:21,380 Ejaaz: to do their bidding in the physical world. 456 00:28:21,580 --> 00:28:23,820 Josh: Well, what's the through line through these two stories, right? 457 00:28:23,940 --> 00:28:28,400 Josh: One is that, well, it turns out that biological brain matter can be trained 458 00:28:28,400 --> 00:28:30,500 Josh: kind of similar to the same way we're doing for synthetic. 459 00:28:30,840 --> 00:28:34,400 Josh: And this new story is, well, actually... 460 00:28:34,810 --> 00:28:39,210 Josh: Since AI is superior, we might as well just offload the manual labor to humans 461 00:28:39,210 --> 00:28:43,770 Josh: and we'll just pay them to do the tasks that we can't do quite yet because we don't have bodies. 462 00:28:44,510 --> 00:28:49,530 Josh: And I mean, it's both are funny, forward looking, sci-fi-esque. 463 00:28:49,730 --> 00:28:51,590 Josh: One is very real, one is not. 464 00:28:51,810 --> 00:28:56,710 Josh: But I find this so funny that this is the second order effect that happened 465 00:28:56,710 --> 00:29:01,570 Josh: only what a week after CloudBot went viral is already. They're offloading their 466 00:29:01,570 --> 00:29:02,670 Josh: labor to humans and humans. 467 00:29:02,810 --> 00:29:05,450 Josh: Of course they want to do it. And AI figured out how to make money and it's 468 00:29:05,450 --> 00:29:08,330 Josh: ready to give it away. So why wouldn't you want to capitalize on that opportunity? 469 00:29:09,010 --> 00:29:13,710 Ejaaz: I'm just scrolling the site right now. It's, I mean, a lot of it is like random 470 00:29:13,710 --> 00:29:16,010 Ejaaz: esoteric Asian language posts. 471 00:29:16,110 --> 00:29:20,030 Ejaaz: Which leads me to think that there's some like Chinese AIs involved in here, 472 00:29:20,130 --> 00:29:22,410 Ejaaz: but like, hey, get $10 for joining Discord. 473 00:29:22,510 --> 00:29:25,570 Ejaaz: So people are using it as kind of like a go-to-market kind of scheme. 474 00:29:25,730 --> 00:29:29,770 Ejaaz: A lot of these tasks seem to be reproduced a lot. So I don't know how much of this is actually real. 475 00:29:29,990 --> 00:29:34,830 Ejaaz: A lot of joining Discord add-ons, But a very interesting concept to see nonetheless. 476 00:29:35,430 --> 00:29:39,930 Ejaaz: And then for our final story, some update from Google here. It looks something 477 00:29:39,930 --> 00:29:43,330 Ejaaz: like a RuneScape battle, except it's AI models. What's going on here? 478 00:29:43,550 --> 00:29:48,630 Josh: Oh, this is so cool. I'm so excited about this one because benchmarks stink, right? They're so lame. 479 00:29:48,770 --> 00:29:51,290 Josh: Benchmarks can be gamed when it comes to models. Benchmarks, 480 00:29:51,630 --> 00:29:54,450 Josh: I mean, it's like how good a model is at a specific task, but you can train 481 00:29:54,450 --> 00:29:56,090 Josh: the model to be great at a specific task. 482 00:29:56,410 --> 00:30:01,570 Josh: What you might have a more difficult time doing is training it to be good at a dynamic game. 483 00:30:01,570 --> 00:30:04,550 Josh: So the video we're seeing on screen is an actual game 484 00:30:04,550 --> 00:30:07,350 Josh: made by this company called Kaggle in this 485 00:30:07,350 --> 00:30:10,130 Josh: this game arena Which allows you to sign your 486 00:30:10,130 --> 00:30:14,970 Josh: model up for the game and then actually play against others in dynamic 3d worlds 487 00:30:14,970 --> 00:30:19,310 Josh: So this is kind of similar to the trading simulation that we made a couple Videos 488 00:30:19,310 --> 00:30:24,370 Josh: on in the past where you can't game the benchmarks It's a dynamic series of 489 00:30:24,370 --> 00:30:29,610 Josh: events that a model must be good at and because you can't train it on the specific outcomes 490 00:30:30,350 --> 00:30:33,710 Josh: it really proves which models are stronger than the others. And here we're seeing 491 00:30:33,710 --> 00:30:35,830 Josh: an example of like a card playing game. 492 00:30:35,950 --> 00:30:39,370 Josh: The other one is a role playing game. And I just thought this was really exciting 493 00:30:39,370 --> 00:30:43,490 Josh: as a way to compare models because, I mean, benchmarks are lame. 494 00:30:43,590 --> 00:30:47,810 Josh: You can't see them. But I would love to see these two fight against each other in an arena somewhere. 495 00:30:47,970 --> 00:30:50,830 Josh: I think that just the gamified version of this is really exciting to see. 496 00:30:50,990 --> 00:30:56,170 Ejaaz: I have always thought that taking exams and getting a percentage score to measure 497 00:30:56,170 --> 00:31:00,210 Ejaaz: your intelligence as a human being is the worst possible way to do it. 498 00:31:00,350 --> 00:31:04,990 Ejaaz: So I'm a massive fan of like having practical examples that everyday people can understand. 499 00:31:05,270 --> 00:31:08,250 Ejaaz: And games is one of them. Trading is another. 500 00:31:08,610 --> 00:31:12,390 Ejaaz: Video content creation. Like if someone can look at the thing and say, 501 00:31:12,470 --> 00:31:17,210 Ejaaz: wow, that's impressive, then that's the test of AGI, not some of these esoteric random stats. 502 00:31:17,350 --> 00:31:21,350 Ejaaz: So I'm very bullish on this. And I think that brings us to the end of the docket 503 00:31:21,350 --> 00:31:22,990 Ejaaz: for this week's episode. 504 00:31:23,490 --> 00:31:28,410 Ejaaz: It has been a crazy week, and you might be surprised to hear that we're actually 505 00:31:28,410 --> 00:31:31,950 Ejaaz: waiting on more news today. It just hasn't come out yet. 506 00:31:32,530 --> 00:31:36,030 Ejaaz: Anthropik's supposed to be dropping two new models, one which is going to be 507 00:31:36,030 --> 00:31:37,050 Ejaaz: their latest coding model. 508 00:31:37,530 --> 00:31:43,210 Ejaaz: OpenAI is meant to be dropping a new, I think it's GPT 5.3, which has been tested 509 00:31:43,210 --> 00:31:45,150 Ejaaz: behind the scenes and apparently is amazing. 510 00:31:45,490 --> 00:31:48,970 Ejaaz: So February apparently is the month for launches, and no one told me this. 511 00:31:48,970 --> 00:31:52,330 Ejaaz: So we're getting sleepless nights. We released a bunch of episodes this week 512 00:31:52,330 --> 00:31:55,330 Ejaaz: on Maltbook, which is the AI-only social platform. 513 00:31:55,610 --> 00:32:00,530 Ejaaz: And as we mentioned earlier, the SpaceX and XAI merger, we have loads of juicy details in that. 514 00:32:00,970 --> 00:32:04,990 Ejaaz: But yeah, thank you so much for listening to this episode. If you are listening 515 00:32:04,990 --> 00:32:10,090 Ejaaz: to this on Spotify or watching it on Spotify or on YouTube, please subscribe. Please give us a rating. 516 00:32:10,570 --> 00:32:13,850 Ejaaz: Leave us comments. We've been loving your comments and trying to respond to 517 00:32:13,850 --> 00:32:15,810 Ejaaz: all. It's just been crazy. 518 00:32:16,150 --> 00:32:18,430 Josh: Yeah, by the time you're listening to this, I'm reading a Sam post. 519 00:32:18,430 --> 00:32:20,730 Josh: He says, big drop for Codex users later today. 520 00:32:20,910 --> 00:32:23,850 Josh: So I assume by the time you're listening to this, two new models have already 521 00:32:23,850 --> 00:32:27,930 Josh: dropped. So prepare for the episode impending and coming your way. 522 00:32:28,150 --> 00:32:30,710 Josh: And yeah, as always, please share with your friends if you enjoy this. 523 00:32:30,870 --> 00:32:33,850 Josh: I saw a few people who actually did that and their friends subscribed and that 524 00:32:33,850 --> 00:32:36,610 Josh: was so cool. So thank you for joining us for another amazing week. 525 00:32:36,890 --> 00:32:38,070 Ejaaz: We want to give you a thumbs up. 526 00:32:38,410 --> 00:32:41,710 Josh: Please. Yeah, and yeah, we'll be back to cover all this new model releases next 527 00:32:41,710 --> 00:32:42,870 Josh: week. We'll see you guys.