Exploring the frontiers of Technology and AI
Josh:
Everyone needs to stop forgetting about Meta, the social media company turned
Josh:
AI company, because this week they have released quite a few new plans and options
Josh:
that I think are going to be interesting to someone.
Josh:
If you're watching this, chances are you will be affected by these new subscriptions.
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What we're going to do is not only share the new meta subscriptions,
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but also compare them to all the existing subscriptions that you can go and
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pay for, whether it be for social media platforms like X or through AI like
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Gemini, Claude, Anthropic.
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There is now a full spread of all the different types of subscriptions you could
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have to different models.
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And we're going to walk through them systematically, starting with Meta,
Josh:
who started on the social front this week, offering $4 plans for Instagram,
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Facebook, and WhatsApp.
Ejaaz:
Yeah, exactly. So Meta is getting into the subscription game,
Ejaaz:
which they're probably following in the lead of like Anthropik and OpenAIR.
Ejaaz:
They're seeing these annual recurring revenue numbers just kind of skyrocket.
Ejaaz:
And they're like, I want some of that as well.
Ejaaz:
Also, So like a bit of important context here, Meta's now spent around $30 billion
Ejaaz:
between AI CapEx GPUs and like acquiring talent and trying to build their own
Ejaaz:
AI products. But I mean, Josh, I think you share the same opinion.
Ejaaz:
Which of the meta AI products have you actually used. This is their kind of
Ejaaz:
like foray to try and get people to use it. So it comes in the form of a few
Ejaaz:
different subscriptions.
Ejaaz:
Now, the consumer ones look like Instagram Plus for not $4, but $3.99 a month.
Ejaaz:
You've got Facebook Plus at $3.99 a month, and you've got WhatsApp Plus at $2.99 a month.
Ejaaz:
Now, if you're wondering like why anyone would be using these kind of like individual
Ejaaz:
apps and individual subscriptions, it's because Instagram kind of caters towards
Ejaaz:
a content creator-focused type of platform.
Ejaaz:
Facebook Plus, a lot of enterprises and business run their business on there via ads.
Ejaaz:
The ad business for Meta alone is absolutely huge.
Ejaaz:
And they're actually growing at a faster rate than Google did at the equivalent
Ejaaz:
time that they existed in their lifecycle right now.
Ejaaz:
And then you've got WhatsApp as well, which handles a lot of customer support
Ejaaz:
for a lot of these enterprises. So you can think about one particular user,
Ejaaz:
not just subscribing to one of these subscriptions, but many.
Ejaaz:
And then collectively, there's this new enterprise plan. I think it's on the
Ejaaz:
MetaOne AI subscription plan, which we'll get into in a second,
Ejaaz:
which is kind of like this collective suite of access.
Ejaaz:
Now, the thing that jumped out to me the most here is
Ejaaz:
honestly, how cheap the accessibility is here.
Ejaaz:
If you are a content creator, the chances are it's a very competitive game and
Ejaaz:
you're not really earning as much money as like some of these like Fortune 500 companies.
Ejaaz:
Now, if you want to get access to some, maybe not frontier intelligence,
Ejaaz:
But a model that's good enough to do the thing that you're hyper-focused on,
Ejaaz:
such as advertising or creating content or using the right SEO-timed words,
Ejaaz:
meta is in the attention game.
Ejaaz:
That is what all their models have been trained on, using their own data.
Ejaaz:
They've been in this game for over a decade and they know how to capture people's attention.
Ejaaz:
That's very useful for the particular type of users that they're going after.
Ejaaz:
But I wonder how this compares directly to some of the other major frontier
Ejaaz:
labs like Google or Anthropic.
Josh:
Yeah, a helpful way of looking at Metis plans is there's three different types of them.
Josh:
One is the one that we just mentioned for $4 a month, you get access to Facebook
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and Instagram plus, which gives
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access to extra features like profile customization, super reactions,
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story insights, among other things this is still very new we're still figuring
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out what exactly this includes second to this sitting on top of it are their
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standard plus premium and max plans those are if you are an actual creator on
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the platform that gives you the verified badge if you see people with blue check marks
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not on a platform like X, they are paying for these plans.
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That includes lots of things noteworthy. It doesn't include the skipping of
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ads. No matter what, you cannot escape ads, it appears.
Josh:
And then third to this, we have Meta's AI plan. And Meta's AI plan is the one
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that we're going to sit on.
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We're going to spend some time on and we're going to start comparing to the
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other companies because it's starting pretty cheap.
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Meta's AI subscription service starts at $8 a month.
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What does that get you? We're not entirely sure just yet. It's
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called meta one plus and it will give you access to presumably the latest
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in meta's ai tools what those ai tools look like
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we're not entirely sure this is all very new and novel but the second thing
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is the 20 a month plan and that 20 a month plan is seeming to be the one that
Josh:
wants to compete head to head with the other companies like claude and chat
Josh:
gpt and gemini so how does it compare is what we're going to get into here i.
Ejaaz:
Think a good place to start is uh looking at their creative plans and pricing
Ejaaz:
that they have for their existing subscriptions.
Ejaaz:
Now, this isn't the latest subscriptions that we just spoke about,
Ejaaz:
but it kind of implies what the other kind of new subscription types will include.
Ejaaz:
Now, I've noticed that across Plus, Premium, and Max, you have this thing being
Ejaaz:
brandished right in front of you, which is protect your brand.
Ejaaz:
I think a lot of Meta's users who are business users who care about the kind
Ejaaz:
of social image and branding online across all their different platforms...
Ejaaz:
Get a lot of impersonators so this is something that like i
Ejaaz:
think ai is going to result in a proliferation of it's
Ejaaz:
just kind of like fake content people that copy your content copyright issues etc
Ejaaz:
this kind of like collectively protects you against
Ejaaz:
that i'm wondering how that actually works but it seems like there's some
Ejaaz:
form of like agent interaction uh whether they're human or digital and there's
Ejaaz:
also maximized discovery i think this is really where meta kind of like shines
Ejaaz:
compared to like the google ai models the anthropic ai models and open air themselves
Ejaaz:
um Meta really has been focused on the search engine optimization role of things.
Ejaaz:
Now, in a world of AI, you can think that the search engine kind of like evolves quite a bit.
Ejaaz:
Google's been speaking about this quite a bit, which is the AI model itself
Ejaaz:
or the AI agent ends up becoming the customer.
Ejaaz:
And you need to cater to an AI agent versus a human.
Ejaaz:
That SEO role looks very different. And Meta is trying to pioneer what that model looks like.
Ejaaz:
The first model that they released a few months ago, I believe, is MewSpark.
Ejaaz:
And it excels at this type of work. Whereas compared to like regular LLM work, it kind of sucks.
Ejaaz:
Now, I want to look at like a direct comparison between Google,
Ejaaz:
Meta and the other likes. And we have this really cool artifact here.
Josh:
Yes. So thank you, Claude, for creating this artifact. We are clearly paying
Josh:
for the Claude plan, or at least I am to say the least.
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But this is a really helpful table that compares the different types of offerings
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from all these companies. We have Meta, Google, Claude, ChatGPT and X slash Grok.
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The entry level pricing is something that is used by almost all companies except
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for Claude at $8 per month.
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You can get access to meta one google's ai plan chat gpt
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and x slash grok on x that gives you the blue check mark plus access to grok
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chat gpt gives you the go plan so you get ads inside of your offerings that
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when you type into your llm claude noteworthy doesn't do ads so they have no
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plan at this level google plus is ai supported and then the same with meta one
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now standard is the 20 a month.
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X is noteworthy and the fact that they don't have one they
Josh:
actually started $30 but among the others this is
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the point where i think a lot of people will pay the most attention because people
Josh:
are willing to pay $20 a month and in most cases it's very much worth it if
Josh:
you are using a chat gpt plan if you are using a cloud plan that's free you're
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currently on an old cheap model that doesn't really work nearly as well as the
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frontier models are and if you want to judge the progress of ai models,
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you really need to be on this $20 a month plan because it at least gives you
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access to the Frontier models as they're being released.
Josh:
To Opus 4.7, to ChatGPT 5.5, and Gemini and soon Meta's new offerings.
Josh:
So if we're comparing these, the standard level, I'm not sure who would really
Josh:
want to pay $20 for Meta's offering when you can go and get ChatGPT premium,
Josh:
Claude premium, Google premium even at the same $20 price point. That's a bit difficult.
Josh:
Then these go up and really just the the higher tiers
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of this are more tokens so there's not a huge difference in
Josh:
terms of feature set it's mostly just the ability to use it
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more productively so as a starting point the 20 month plans are all very competitive
Josh:
except for the fact that two of these are frontier models and the others are
Josh:
not so if you're looking for frontier level intelligence top intelligence per
Josh:
token it's really cloud and chat gpt google has a lot of fun tools if that's
Josh:
where you like to spend your time.
Josh:
But aside from that, Meta and Grok's offerings leave a lot to be desired.
Ejaaz:
I'm kind of split on this, okay? So like on the one half, I agree with you.
Ejaaz:
On the other half, I'm like, I do think Meta is going after a different type of market.
Ejaaz:
Like when I look at like a $7.99 a month plan, I instantly think of OpenAI's ChatGPT Go plan.
Ejaaz:
Do you remember they launched that specifically just in India?
Ejaaz:
And I think it was like five bucks a month.
Ejaaz:
That resulted in adding, I think it was like tens of millions of new users over
Ejaaz:
the next couple of weeks since they launched it, right?
Ejaaz:
And I think that Metz is trying to do a similar thing here. They're going for
Ejaaz:
a very specific archetype of individual, which is like,
Ejaaz:
You're out in the content game. They understand that, like, you may not have
Ejaaz:
an abundance of money yet, but they want to kind of, like, lead you on that exponential.
Ejaaz:
And they know that they have search and discovery kind of, like,
Ejaaz:
nailed to the bone. And so they want to kind of, like, offer that or be the
Ejaaz:
first major AI provider for that.
Ejaaz:
Now, on the other hand of things, like, I can imagine as I see all these,
Ejaaz:
like, new models released from Anthropic and OpenAI, the next model release
Ejaaz:
means that the previous models released is, like, even cheaper.
Ejaaz:
In fact, the newer model releases end up being cheaper than the old model releases,
Ejaaz:
which is kind of antithetical because you like get a smarter model which
Ejaaz:
is kind of cheaper than the previous model so it's like bang for your
Ejaaz:
buck i also think that with more gpus and
Ejaaz:
semiconductors as that all scales you end up just getting uh
Ejaaz:
more tokens per watt i believe it's performance per watt it's just going to
Ejaaz:
end up kind of driving lower so i don't know about the staying power of meta
Ejaaz:
subscriptions here their models do need to improve pretty rapidly and this kind
Ejaaz:
of leads me on to like an overarching theme that i have on meta which is this
Ejaaz:
is actually like good news for Meta.
Ejaaz:
And this is desperately needed by Meta because they've blown around $30 billion
Ejaaz:
over the last 12 months, acquiring talent and investing in this AI thing with
Ejaaz:
nothing to show for it. They released a MuseSpark model.
Ejaaz:
It was kind of like whatever people have forgotten about it.
Ejaaz:
People aren't really kind of using it aside from people who actually use Meta's different platforms.
Ejaaz:
But this could technically or theoretically on paper result in kind of like a goldmine for them.
Ejaaz:
If you imagine like they can convert like 100 million users for like their $20
Ejaaz:
dollar a month plan, that is reasonable income coming in.
Ejaaz:
But I've also seen comments from Zuck earlier this week, which talks about if
Ejaaz:
this doesn't play out, this subscription thing,
Ejaaz:
if their AI models aren't used by a lot of people, they're willing to go down
Ejaaz:
the NeoCloud route, which is what Elon Musk has done recently,
Ejaaz:
and partner with major AI labs to rent out their compute and data classes,
Ejaaz:
which they've invested billions of dollars in.
Ejaaz:
So I think Zuck is being pressured quite a lot by shareholders at this point.
Ejaaz:
He's being forced to kind of show some kind of revenue, he fired or laid off
Ejaaz:
8,000 plus people over the last seven days.
Ejaaz:
And that was like one of like, I think five cuts in the last couple of months.
Ejaaz:
So Meta's like backed into a corner right now and they need to kind of like
Ejaaz:
show the goods or they need to pivot pretty aggressively.
Josh:
You mentioned the word neocloud, which is funny because I have some neocloud news.
Josh:
This is, again, if you're listening to this, this is a Friday roundup.
Josh:
We're covering all the news. So we're going to speed run this.
Josh:
It's a very busy morning at Limitless HQ.
Josh:
So we're going to try to get through these as quick as we can,
Josh:
starting with the StarCloud news, which I found to be really interesting.
Josh:
Elon and SpaceX have a new partner. They are working with, it's funny enough,
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Gavin Baker here is in the photo. We just recorded an episode with him yesterday about his portfolio.
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Clearly he is bullish on space. And the announcement is that StarCloud
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is building star cloud three that is going to
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be launching on the new spacex starship this is
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starship version three this is the test flight that they just had last week that
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we covered and the idea is that that three-ton
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spacecraft is designed to fit inside of the pes dispenser inside of starship
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the ceo philip johnson claims that star cloud three would be the first orbital
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data center that's actually cost competitive with terrestrial at about five
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cents per kilowatt if commercial costs land near $500 per kilogram.
Josh:
So again, this is fully contingent on Starship being able to get it up into orbit.
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The idea is that commercial access should open up around 2028-2029 given the
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amount of time that it's going to take to get Starship online and then start launching these,
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aircraft in space but it's a really cool announcement where we have an actual,
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client for SpaceX that is going to be launching serious payloads into space
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and fully pursuing the AI data centers in orbit plan.
Josh:
It's going to take a little while but this is where we build the foundation
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this is where companies are starting to plan these launches for the next couple of years.
Ejaaz:
We have another SpaceX AI alliance member Josh you know over the last couple
Ejaaz:
of weeks you've got Elon partnering with Anthropic twice you've got them partnering
Ejaaz:
pretty aggressively with cursor,
Ejaaz:
which is going to result in a $60 billion acquisition 30 days after the IPO,
Ejaaz:
which is expected to be sometime next month.
Ejaaz:
And now you've got this partnership with StarCloud. Now, what I love about this
Ejaaz:
is if you think of SpaceX owning the highway or the toll booth into space,
Ejaaz:
they're going to need the goods to be putting out into space, right?
Ejaaz:
So they've got Anthropik to kind of tentatively agree to say like,
Ejaaz:
yeah, we're going to actually use some of your space AI data centers,
Ejaaz:
but also you need the goods to get out there.
Ejaaz:
Now, Elon Musk is investing a ton of money over the next five years into something
Ejaaz:
called the TerraFab, which will end up becoming the largest chip fab in America
Ejaaz:
if it plays out how he plans it to.
Ejaaz:
And there's an interesting statistic from that goal, which is 70% of the chips
Ejaaz:
that are produced are going to be radiation hardened and sent out into space.
Ejaaz:
So he's very much like committing his entire focus and goal into this.
Ejaaz:
That's why the SpaceX IPO is valued at expectedly a $2 trillion valuation.
Ejaaz:
But he needs the goods to be able to do that now I'm looking at this tweet up here
Ejaaz:
Saying that StarCloud recently, or is in the process of raising $200 million
Ejaaz:
at a $2 billion valuation, that is cheap.
Ejaaz:
If StarCloud can actually put out radiation-hardened GPUs, which, by the way, they have.
Ejaaz:
There's currently, I think it's like a stack of like H100s that are currently
Ejaaz:
orbiting space that are training and inferencing on it, as Gavin mentioned in the previous tweet.
Ejaaz:
What's stopping Elon from acquiring them and now having the actual goods to
Ejaaz:
be able to do that? Obviously, he's still relying on NVIDIA.
Ejaaz:
He has a good partnership with them. But I just I'm extremely bullish about
Ejaaz:
this, and I like that he's choosing to kind of partner with different firms
Ejaaz:
versus trying to build everything himself.
Ejaaz:
But moving on, there is another company that is raising a pretty decent valuation
Ejaaz:
right now, Cognition, which is the, I believe they started Devin,
Ejaaz:
yeah, two years ago, which was the OG AI agent.
Ejaaz:
They raised over a billion dollars at $26 billion valuation.
Ejaaz:
Now, the coolest part about these guys is everyone thought that they were completely
Ejaaz:
cooked after Anthropic and OpenClaw kind of like launched their like autonomous agents.
Ejaaz:
But what I liked about Cognition is they have a lot of staying power.
Ejaaz:
And we've spoken about on previous episodes that there's this company called Cursor.
Ejaaz:
And everyone blamed them for being like kind of like, or criticized them for
Ejaaz:
being like a rapper, a thin rapper around an AI model.
Ejaaz:
But what ended up being the case was they had this sort of agent harness,
Ejaaz:
this agent mode, which kind of like orchestrates how models work.
Ejaaz:
Uses the right models, uses the right prompts, and it's an incredibly valuable
Ejaaz:
mode when it comes to training a model.
Ejaaz:
Cognition is probably second in the ranking of having or owning this particular type of mode.
Ejaaz:
And Josh, I know you wrote an entire essay about this recently.
Josh:
I'm a big fan of harnesses. I really like harnesses. If you haven't subscribed
Josh:
to a newsletter, I would highly recommend.
Josh:
I released an entire essay about harnesses earlier this week.
Josh:
It's basically all of the peripherals required to turn the brain of an LLM into
Josh:
a full body, into something fully capable of doing agentic tasks that are long-running.
Josh:
One thing I found funny from this announcement was the idea that Cognition uses
Josh:
now 90% of their own code.
Josh:
And if they're valued at a $26 billion valuation, clearly there's a lot of value
Josh:
there. So this is a continuation of the wrapper wars.
Josh:
We now kind of have very clear winners on who's winning the LLM wars,
Josh:
the large language models that sit on the frontier, how you package them,
Josh:
how you add a harness for them will be the differentiator.
Josh:
We saw Cursor with a $60 billion deal with SpaceX. Now we have Cognition raising another big round.
Josh:
The current war, that new frontier, is being fought on the wrapper level with the harnesses.
Josh:
Cognition's the new eccentric in that. I'm pretty bullish, pretty excited on Cognition.
Ejaaz:
Josh, on your bingo card for this week, did you expect the Pope to sign a partnership
Ejaaz:
with the Major Frontier AI Lab?
Josh:
A partnership? Tell me about this partnership. What do you mean partnership?
Ejaaz:
Okay, so listen, we don't typically get into the swing of reviewing biblical
Ejaaz:
architecture here on this show, but we are going to today.
Josh:
Who got the mandate of heaven?
Ejaaz:
Yeah, yeah, exactly. So Pope Leo kind of blew the newsroom wide open this week,
Ejaaz:
releasing his Magnifica Humanitas of His Holiness, Pope Leo,
Ejaaz:
on safeguarding the human person in the time of artificial intelligence.
Ejaaz:
Now, my initial reaction to this is,
Ejaaz:
I actually kind of love it because kind of like the religious pious leaders
Ejaaz:
don't tend to kind of like technology a lot or get involved with it much.
Ejaaz:
The fact that he's written, I believe this is like a 50 page plus script on
Ejaaz:
his kind of like thoughts of how this plays out,
Ejaaz:
how AI is going to evolve, how it kind of equates to like ethical use and religious
Ejaaz:
scripts. He gets into a whole thing.
Ejaaz:
Like there's this thing I was reading earlier on where it's like between two
Ejaaz:
biblical images and talks about the construction of the Tower of Babel and these
Ejaaz:
two scenes within the Bible.
Ejaaz:
And the main takeaway that I got from this entire thing is he's trying to be
Ejaaz:
extremely thoughtful and careful about how these models are developed because
Ejaaz:
he knows about the power of influence that these models will have on kids,
Ejaaz:
young adults, and everyone across every single age in the future.
Ejaaz:
And so he knows that it's gonna guide a lot of education and learning about
Ejaaz:
religious scripts and all these kinds of things. And so he wants to make sure
Ejaaz:
that it's developed in the right way.
Ejaaz:
Now, one of the biggest call to actions that he has out of this entire document
Ejaaz:
and the preceding hearing or talk or discussion that they had after this was,
Ejaaz:
He wants there to be governance instilled into this.
Ejaaz:
Now, the governance, he suggests, comes from two particular parties,
Ejaaz:
one being the national government that runs the entire country,
Ejaaz:
respective country where it's operating in,
Ejaaz:
the model it's operating in, as well as the church or religious groups involved
Ejaaz:
so that they can kind of mold the personality and ethics of this.
Ejaaz:
Now, when I kind of like speak about this, I think of one particular AI lab,
Ejaaz:
which is Anthropic, who have been speaking to religious leaders independently
Ejaaz:
of their own accord over the last, I believe, couple of months.
Ejaaz:
And the Pope actually calls that Anthropic saying like, we would like to walk
Ejaaz:
together. So I thought that was a pretty interesting update.
Josh:
That's fun. It's nice when there's more awareness being raised around the idea.
Josh:
It's like this will bring a lot of new eyes to the world of AI.
Josh:
It will start a conversation that is going to need to happen.
Josh:
It is going to bring awareness in a way that is constructive,
Josh:
not damaging, hopefully. And I think it's just, it's a fun...
Josh:
Cool thing and it's a testament to how large ai has
Josh:
gotten where this is now sitting at a global scale and it is top of
Josh:
mind and i like the idea that all of these people are going to be working together
Josh:
to figure out the best way to navigate forward as a society and that that's
Josh:
pretty exciting so glad i'm glad the pope's getting on board and uh hopefully
Josh:
a lot of people who you know respect and trust him will take ai a little bit
Josh:
more seriously and start considering this conversation and.
Ejaaz:
Then next on the docket we have two more topics we're going to breeze through
Josh:
It All right, bang them out.
Ejaaz:
Josh, something that you and I complain about a lot is when a new model releases,
Ejaaz:
you have these fancy benchmarks, right?
Ejaaz:
But we don't know what that means. And often these benchmarks are maxed out
Ejaaz:
or gamified and doesn't actually tell us or portray what the model can actually do.
Ejaaz:
So let's say a model is super good at coding and then a software engineer actually
Ejaaz:
uses it for their specific work. It's actually not good enough.
Ejaaz:
Now, what a bunch of people ended up doing was they developed this new benchmark
Ejaaz:
called DeepSWE, and it focuses on agentic AI engineering specifically.
Ejaaz:
So when you spin up multiple instances of Claude or ChatGPT,
Ejaaz:
for instance, to do a bunch of your coding work in parallel, how good is it actually?
Ejaaz:
Now, the typical benchmark, and this is, by the way, like the holy Bible, to use a pun here,
Ejaaz:
of the holy grail of benchmarks, which is software engineering verified,
Ejaaz:
which is what every AI lab kind of like shows off when they release a new model.
Ejaaz:
Currently, Claude and ChatGPT
Ejaaz:
at the top of this, but it's tested against pre-approved solutions and answers
Ejaaz:
against a particular problem. So the model already knows the answer.
Ejaaz:
And so it's not really authentic or genuine.
Ejaaz:
What this benchmark ends up doing is providing not only new problems of which
Ejaaz:
the models have no idea what the answer is, they're not given the answers beforehand,
Ejaaz:
but also real long horizon tasks that go for between 7 to 12 hours.
Ejaaz:
And so they're put to the test. And we have a new ranking over here.
Ejaaz:
GPT 5.5 and GPT 5.4, their predecessor model is number one and two of this new benchmark.
Ejaaz:
You've got Claude Opus 4.7 just behind on 54% and Sonnet 4.6 as well.
Ejaaz:
Gemini 3.5 Flash, even though it is their latest model, comes out at a pretty poor 28%.
Josh:
Yikes. I do like the idea of more benchmarks. I think benchmarks are fun. They are important.
Josh:
They are oftentimes games. So if we can come up with ways in which we could
Josh:
organically test these,
Josh:
if you ask me the way that i choose to
Josh:
do my benchmarks it's purely vibes based i'll get
Josh:
in i'll do the day-to-day task you could very much feel a model
Josh:
if you use it every day you could feel where it's better feel where it's worse i find
Josh:
that they're oftentimes spiky in the sense that they're very very
Josh:
good at specific things and oftentimes a lot weaker than others and that
Josh:
kind of spike complex changes over time as these
Josh:
new models get released but i'm glad we have a more formal way
Josh:
of doing this greater than vibes and greater than the
Josh:
things that have been gamed recently now last thing on the agenda is
Josh:
snowflake stock um the headline i'm seeing is snowflake stock jumps 30 percent
Josh:
in a day this was after the earnings report that just came out this week and
Josh:
for those that don't know snowflake is a cloud compute providing platform and
Josh:
clearly they've done something right because uh wow this is a lot of revenue in one day.
Ejaaz:
Yeah, so to give a bit of context here,
Ejaaz:
there's something, there's a phenomenon happening called the SaaS-pocalypse,
Ejaaz:
software-as-a-service apocalypse, where basically as Claude and ChatGPT end
Ejaaz:
up upgrading their own models,
Ejaaz:
they become able to replace a bunch of subscription software tools and services
Ejaaz:
because they could just vibe code it or rebuild it from scratch.
Ejaaz:
And this has led to a massive decline. I'm talking tens to hundreds of billions
Ejaaz:
of dollars lost in the stock market for all these different SaaS products.
Ejaaz:
I remember a time where Anthropic would release a plugin update for,
Ejaaz:
let's say, a security review tool, and all the cybersecurity stocks were absolutely done, right?
Ejaaz:
And so the point here is the trend has been kind of not only broken, but inverted.
Ejaaz:
Snowflake, which is a major SaaS provider for a lot of enterprise companies,
Ejaaz:
not only had their stock jump up 35%, but it's because they defined a moat that
Ejaaz:
sat on top of Claude and ChatGPT.
Ejaaz:
Now, in previous episodes, we've spoken about Anthropic and OpenAI signing what's
Ejaaz:
known as a joint venture with some major private equity firms.
Ejaaz:
And the intention of this is to place their own engineers, they're known as
Ejaaz:
forward-deployed engineers, into Fortune 100 companies so that they can kind
Ejaaz:
of like design and architect-specific workflows, so AI-agentic workflows,
Ejaaz:
using Core or using ChatGPT.
Ejaaz:
Now, the only reason why they would be doing that is because their own generalized
Ejaaz:
LLM isn't good enough. And so you need someone to kind of like guide this kind of orchestration.
Ejaaz:
Snowflake is basically arguing in their latest quarterly earnings that they already have that data.
Ejaaz:
They already have that design and they're doing it themselves using a mixture of Claude and ChatGPT.
Ejaaz:
And that's why the stock jumped up massively. It just shows that not only are
Ejaaz:
SaaS companies here to stay, but they also might be having or creating a defensible moat.
Josh:
I feel like we need a dartboard that we can start throwing darts at to pick
Josh:
the companies that are going to go up 30% because every week it seems like there
Josh:
is 10 new ones that are going absolutely nuclear.
Josh:
But that wraps up the episode today. Thank you all so much for watching.
Josh:
If you have made it through all of our previous episodes this week,
Josh:
you are now fully caught up.
Josh:
You can go touch grass, enjoy your weekend, have an amazing time.
Josh:
And we will be back as always with a new episode starting bright and early next week.
Josh:
Thank you guys so much for watching. Have an amazing weekend and we'll see you next time.