1 00:00:03,500 --> 00:00:08,660 Ejaaz: Welcome back to the weekly AI roundup. It's been another huge week. 2 00:00:08,820 --> 00:00:12,640 Ejaaz: NVIDIA became the first company to cross $5 trillion in market value, 3 00:00:12,820 --> 00:00:17,700 Ejaaz: but they're closely followed behind by Apple and Microsoft to cross $4 trillion 4 00:00:17,700 --> 00:00:19,940 Ejaaz: in market cap value. Some big numbers being thrown around. 5 00:00:20,140 --> 00:00:23,500 Ejaaz: OpenAI had a pretty controversial week. They restructured their entire company, 6 00:00:23,660 --> 00:00:27,540 Ejaaz: but they also revealed their secret plans for AGI over the next 10 years. 7 00:00:27,860 --> 00:00:32,960 Ejaaz: Elon Musk decided to release an AI version of Wikipedia called Grokipedia, 8 00:00:33,480 --> 00:00:36,060 Ejaaz: powered by their flagship model Grok. We'll get into that. 9 00:00:36,320 --> 00:00:43,980 Ejaaz: And finally, there is a new humanoid robot available to you for the cheap price of $499 per month. 10 00:00:44,380 --> 00:00:47,240 Ejaaz: Josh, there's a lot to get through to today. 11 00:00:47,820 --> 00:00:53,480 Ejaaz: Starting off with all the open AI news, There's two main things to discuss here. 12 00:00:53,580 --> 00:00:54,380 Ejaaz: They made two big announcements. 13 00:00:54,640 --> 00:00:57,220 Ejaaz: One was their vision for the next 10 years on achieving AGI. 14 00:00:57,560 --> 00:01:01,640 Ejaaz: And the second thing was on the restructuring. Starting with the AGI side of 15 00:01:01,640 --> 00:01:06,420 Ejaaz: things, Sam Altman came on live stream with his chief scientist, 16 00:01:06,840 --> 00:01:10,260 Ejaaz: Jakub, to describe what the vision of OpenAI is. 17 00:01:10,360 --> 00:01:13,900 Ejaaz: And I think this is in response to a lot of people saying, Sam, 18 00:01:14,320 --> 00:01:16,140 Ejaaz: like, do you have your best intentions at heart? 19 00:01:16,200 --> 00:01:19,660 Ejaaz: You keep saying that, but then your actions are kind of producing products that 20 00:01:19,660 --> 00:01:24,840 Ejaaz: might seem kind of consumery and not really big thinking, are you still focused on AGI? 21 00:01:25,080 --> 00:01:28,380 Ejaaz: So this is kind of like clearing the plate here. And there's three main takeaways 22 00:01:28,380 --> 00:01:30,680 Ejaaz: that I got from this that I found interesting. 23 00:01:31,080 --> 00:01:35,440 Ejaaz: Number one, Sam has extended his deadline to achieving AGI. 24 00:01:35,660 --> 00:01:40,340 Ejaaz: He says he's going to achieve it within 10 years, and it's going to be a slower 25 00:01:40,340 --> 00:01:42,180 Ejaaz: transition than initially expected. 26 00:01:42,440 --> 00:01:48,020 Ejaaz: He describes it as achieving AGI gradually over a number of different years. 27 00:01:48,480 --> 00:01:52,820 Ejaaz: This is interesting to me because we're finally achieving a realistic timeline, 28 00:01:53,060 --> 00:01:57,320 Ejaaz: in my opinion, versus some kind of like hype headline where we're just kind 29 00:01:57,320 --> 00:01:58,860 Ejaaz: of like thinking it's going to arrive tomorrow. 30 00:01:59,940 --> 00:02:03,720 Ejaaz: Number two, he's started giving solid milestones on this. 31 00:02:03,860 --> 00:02:08,760 Ejaaz: He says in 2026, the deep learning that OpenAI is conducting internally will 32 00:02:08,760 --> 00:02:14,380 Ejaaz: result in an AGI level science model, which will perform kind of at the caliber 33 00:02:14,380 --> 00:02:16,200 Ejaaz: of an AI research intern. 34 00:02:16,500 --> 00:02:21,520 Ejaaz: And then he says two years later in 2028, they'll have an AI researcher level model. 35 00:02:21,640 --> 00:02:24,960 Ejaaz: So you go from intern to research grade performance, which is super cool. 36 00:02:25,260 --> 00:02:28,520 Ejaaz: And the final point that really interested me was around compute. 37 00:02:28,520 --> 00:02:34,860 Ejaaz: Josh, they've spent or committed around $1.4 trillion on data centers right 38 00:02:34,860 --> 00:02:39,360 Ejaaz: now, which is roughly the equivalent of 30 gigawatts. It's a huge amount of compute. 39 00:02:39,840 --> 00:02:45,280 Ejaaz: But what shocked me the most was he came out and said that his eventual plan 40 00:02:45,280 --> 00:02:49,920 Ejaaz: is to have a factory built every week that produces a gigawatt of power. 41 00:02:50,080 --> 00:02:53,700 Ejaaz: That's about $20 billion of compute per week. 42 00:02:53,820 --> 00:02:58,400 Ejaaz: All really huge numbers kind of took my breath away. Josh, what's your take? 43 00:02:59,380 --> 00:03:02,620 Josh: OpenAI is just doing what everyone kind of knows they were always going to do. 44 00:03:03,040 --> 00:03:06,180 Josh: They very quickly realized they can't be a non-for-profit. They are now becoming 45 00:03:06,180 --> 00:03:07,780 Josh: a for-profit organization. 46 00:03:08,000 --> 00:03:12,780 Josh: In fact, it's a public benefit corporation. So it's a PBC, not an LLC or a Z-Corp 47 00:03:12,780 --> 00:03:16,100 Josh: or anything, which means the intention is to be kind of aligned with public 48 00:03:16,100 --> 00:03:18,820 Josh: interest, but basically it just blows the cap off of everything. 49 00:03:19,040 --> 00:03:20,260 Josh: And this is a really big deal. 50 00:03:20,560 --> 00:03:23,660 Josh: EJ, you mentioned that, or you mentioned to me actually earlier, 51 00:03:23,800 --> 00:03:27,600 Josh: and this was news to me, that Sam Altman expressed interest in going public. 52 00:03:27,600 --> 00:03:32,200 Josh: I think there's a big opportunity here to talk about how much money can be made by. 53 00:03:32,920 --> 00:03:38,640 Josh: OpenAI going public and by kind of restructuring this. So the restructuring deal is interesting. 54 00:03:38,860 --> 00:03:42,760 Josh: Are we ready to talk about that? Can we go into this like crazy chaotic restructuring 55 00:03:42,760 --> 00:03:43,480 Josh: that's happening? Okay. 56 00:03:43,740 --> 00:03:48,500 Josh: This is fascinating to me. So on screen, there is a disastrous diagram with a bunch of arrows. 57 00:03:48,660 --> 00:03:51,140 Josh: A lot of it is kind of hand-waving, not important. The things that matter, 58 00:03:51,400 --> 00:03:54,220 Josh: Microsoft owns a large percentage of the nonprofit. 59 00:03:54,460 --> 00:03:56,920 Josh: The nonprofit quickly realized they needed to become a for-profit. 60 00:03:57,220 --> 00:04:00,060 Josh: They had a capped upside on the previous version, but now they do not. 61 00:04:00,060 --> 00:04:04,500 Josh: So Microsoft was limited previously to a 100x return on their investment. 62 00:04:04,880 --> 00:04:09,320 Josh: Now there is no return on the investment or no limit to the return on the investment. 63 00:04:09,500 --> 00:04:12,140 Josh: And this is interesting for a few things, Ejaz, because one, 64 00:04:12,360 --> 00:04:17,960 Josh: I am very resentful of OpenAI because they are very clearly the fastest growing AI company in the world. 65 00:04:18,020 --> 00:04:22,240 Josh: And I have no way to get exposure to them. That doesn't feel like it's aligned with the public. 66 00:04:22,460 --> 00:04:27,400 Josh: Sam Altman is taking all the money for himself. He's throwing it at GPUs and I get no upside. 67 00:04:27,600 --> 00:04:30,260 Josh: That doesn't feel right. this is open AI, you're a public benefit company. 68 00:04:30,460 --> 00:04:33,380 Josh: Why are you not benefiting me as a member of the public? 69 00:04:33,660 --> 00:04:38,600 Josh: Second to this is that Microsoft now seems to be the best way to get exposure 70 00:04:38,600 --> 00:04:40,400 Josh: because there is this like, 71 00:04:40,600 --> 00:04:43,440 Josh: there is this way of getting access to open AI when they IPO, 72 00:04:43,600 --> 00:04:47,500 Josh: but open AI and Microsoft are now, or Microsoft's not the biggest stakeholder 73 00:04:47,500 --> 00:04:53,860 Josh: in the open AI company at 27% versus the open AI non-for-profit, which is actually 26%. 74 00:04:53,860 --> 00:04:58,120 Josh: So the largest form of exposure is through Microsoft. They have uncapped profits 75 00:04:58,120 --> 00:05:01,400 Josh: and they are reporting earnings, I think, this week. 76 00:05:01,700 --> 00:05:06,200 Josh: So Microsoft might be the best way to get exposure to OpenAI currently, but... 77 00:05:07,380 --> 00:05:10,000 Josh: OpenAI as a whole has kind of disappointed me through this whole process because 78 00:05:10,000 --> 00:05:14,840 Josh: it's all been very hand wavy and not really aligned with, I think, 79 00:05:15,020 --> 00:05:18,240 Josh: the public intention that they stated, just because they've always been this 80 00:05:18,240 --> 00:05:21,600 Josh: big for profit entity disguised as a nonprofit. 81 00:05:21,600 --> 00:05:25,780 Ejaaz: Yeah, I completely agree with a lot of the points you made. 82 00:05:25,960 --> 00:05:29,580 Ejaaz: And to just kind of give the listeners a bit of context here, 83 00:05:30,240 --> 00:05:33,520 Ejaaz: OpenAI founded in 2015 as a nonprofit. 84 00:05:33,700 --> 00:05:37,600 Ejaaz: It was set up as a nonprofit org with this ambitious vision of we are going 85 00:05:37,600 --> 00:05:40,520 Ejaaz: to achieve AGI and we are going to provide it to the people. 86 00:05:40,640 --> 00:05:43,500 Ejaaz: So everyone should have access to this super powerful technology. 87 00:05:43,500 --> 00:05:48,280 Ejaaz: Then four years later, in 2019, they decided, we kind of want to make a bit 88 00:05:48,280 --> 00:05:50,900 Ejaaz: of money from this and we need to raise a lot of capital. 89 00:05:51,160 --> 00:05:56,180 Ejaaz: So in 2019, they set up a for-profit structure, but it was owned by the non-profit. 90 00:05:56,320 --> 00:05:58,840 Ejaaz: So they could still get away with saying, hey, we're a non-profit. 91 00:05:59,040 --> 00:06:04,820 Ejaaz: But it was capped, as you said, Josh, to any investor for 100x, just 100x returns. 92 00:06:05,240 --> 00:06:07,720 Ejaaz: So a lot of feedback they've been getting and a lot of pressure they've been 93 00:06:07,720 --> 00:06:10,860 Ejaaz: getting from future investors or current investors recently is, 94 00:06:11,280 --> 00:06:13,420 Ejaaz: hey, we want to make more money on this deal. 95 00:06:13,500 --> 00:06:15,680 Ejaaz: It's unfair that we're investing billions in you. 96 00:06:16,100 --> 00:06:20,760 Ejaaz: Microsoft invested $13 billion and we want more upside than 100x. 97 00:06:21,160 --> 00:06:26,380 Ejaaz: So Sam went to the drawing board and was like, okay, we can create a new structure 98 00:06:26,380 --> 00:06:31,780 Ejaaz: called a public benefit corporation, which, as you said, now has uncapped gains. It's pretty crazy. 99 00:06:31,980 --> 00:06:36,060 Ejaaz: So now you can just make as much money as you can on a normal private company 100 00:06:36,060 --> 00:06:37,340 Ejaaz: that you were investing in. 101 00:06:37,500 --> 00:06:41,320 Ejaaz: And the biggest point around this is on this diagram here, you'll see if you 102 00:06:41,320 --> 00:06:47,580 Ejaaz: zoom in, if you squint, Microsoft, minority owner, they are now no longer a minority owner. 103 00:06:47,860 --> 00:06:50,460 Ejaaz: Like you said, they are the majority owner, which is just crazy. 104 00:06:50,600 --> 00:06:54,580 Ejaaz: But I'll tell you a few other reasons why Microsoft is a huge winner from all 105 00:06:54,580 --> 00:06:55,860 Ejaaz: of this. It's not just money. 106 00:06:55,980 --> 00:07:02,540 Ejaaz: It's not just the fact that their $13 billion stake is now worth $135 billion. What a crazy return. 107 00:07:03,770 --> 00:07:09,830 Ejaaz: But they still maintain exclusive access and rights to all of OpenAI's research 108 00:07:09,830 --> 00:07:14,110 Ejaaz: IP, which means that any kind of new model that they release, 109 00:07:14,870 --> 00:07:18,330 Ejaaz: Microsoft basically has the first say and exclusive access to provide it to 110 00:07:18,330 --> 00:07:21,970 Ejaaz: their partners, to their customers and any clients and enterprise clients that 111 00:07:21,970 --> 00:07:23,430 Ejaaz: they wanna bring in in the future. 112 00:07:23,990 --> 00:07:27,950 Ejaaz: Secondly, and this was a genius move, Josh, they set a standard. 113 00:07:28,230 --> 00:07:34,310 Ejaaz: They said, listen, OpenAI, We will relieve all our exclusive access and IP access 114 00:07:34,310 --> 00:07:36,630 Ejaaz: only once you've achieved AGI. 115 00:07:36,930 --> 00:07:40,150 Ejaaz: But of course, the obvious question is, what the hell is AGI? 116 00:07:40,230 --> 00:07:44,090 Ejaaz: How do you determine what AGI is? There's so much discussion around what the hell this thing is. 117 00:07:44,250 --> 00:07:49,550 Ejaaz: So they said, we'll leave it to an expert party of third-party analysts. 118 00:07:49,850 --> 00:07:54,650 Ejaaz: So it's a panel which is going to decide and determine OpenAI's fate going forward. 119 00:07:54,770 --> 00:07:58,750 Ejaaz: So the winner of all of this, this restructuring, this OpenAI vision announcement, 120 00:07:58,750 --> 00:08:01,790 Ejaaz: is actually Microsoft, and it's just crazy to see it. 121 00:08:02,350 --> 00:08:06,470 Josh: Okay, so how do you navigate this as a participant who wants to get wealthy off of AI? 122 00:08:06,690 --> 00:08:09,950 Josh: There is a few ways. I think for people who observe public markets, 123 00:08:10,110 --> 00:08:12,470 Josh: you'll know the fact that Apple is sitting at all-time high, 124 00:08:12,570 --> 00:08:15,210 Josh: Microsoft sitting at all-time high, Google, basically across the board, 125 00:08:15,330 --> 00:08:18,750 Josh: everyone is sitting at all-time highs, which I believe is high signal. 126 00:08:18,930 --> 00:08:21,230 Josh: Clearly, things are working. Clearly, a lot is being spent. Clearly, 127 00:08:21,530 --> 00:08:24,590 Josh: there is some sort of a bubble, but the end is not quite near. 128 00:08:25,130 --> 00:08:28,570 Josh: The big question that I have is like, come on, how do I get access to OpenAI 129 00:08:28,570 --> 00:08:31,650 Josh: if you don't, if you're not an accredited investor, if you can't figure out 130 00:08:31,650 --> 00:08:34,130 Josh: how to get private shares, the answer right now is just Microsoft. 131 00:08:34,790 --> 00:08:39,270 Josh: Nobody in the world owns more shares, not even OpenAI themselves, than Microsoft does. 132 00:08:39,570 --> 00:08:42,250 Josh: And Microsoft, like you said, EJS, they have access to their IP, 133 00:08:42,530 --> 00:08:46,050 Josh: they get access to a revenue share, they get access to actual equity within the company. 134 00:08:46,210 --> 00:08:49,550 Josh: And if you believe in the success of OpenAI at a scale that we do, 135 00:08:49,710 --> 00:08:53,570 Josh: which is many, many trillions of dollars of market cap, 27% of that is not to be laughed at. 136 00:08:53,870 --> 00:08:56,590 Josh: And I mean, Microsoft is a $4 trillion dollar company in the case that 137 00:08:56,590 --> 00:09:00,130 Josh: open ai makes it to that level that is another nearly 138 00:09:00,130 --> 00:09:03,590 Josh: trillion dollars in microsoft's pocket which 139 00:09:03,590 --> 00:09:06,390 Josh: is a really big deal so it is unfortunate that 140 00:09:06,390 --> 00:09:09,330 Josh: it gets diluted out through the form of having to buy the same 141 00:09:09,330 --> 00:09:12,490 Josh: company that makes microsoft office which is just like an abomination my 142 00:09:12,490 --> 00:09:16,130 Josh: personal opinion at least but um i think that is the way to kind of navigate 143 00:09:16,130 --> 00:09:20,410 Josh: this forward until we do get the eventual ipo from the open ai team like sam 144 00:09:20,410 --> 00:09:23,430 Josh: allman discussed so that's kind of how i'm thinking about navigating it is like 145 00:09:23,430 --> 00:09:28,190 Josh: i want access sam's being a little a little closed closed with that um but microsoft 146 00:09:28,190 --> 00:09:30,910 Josh: is probably your your path to success there that's. 147 00:09:30,910 --> 00:09:34,050 Ejaaz: So interesting i i read it kind of the uh in 148 00:09:34,050 --> 00:09:37,130 Ejaaz: a different way josh which is the gloves are now finally off 149 00:09:37,130 --> 00:09:41,610 Ejaaz: open ai doesn't have the constraint of having to lop as a non-profit organization 150 00:09:41,610 --> 00:09:45,910 Ejaaz: it's quite clearly a for-profit um the foundation owns equity stake in this 151 00:09:45,910 --> 00:09:50,910 Ejaaz: so i think sam will probably move quite quickly on an ipo because he needs so 152 00:09:50,910 --> 00:09:54,930 Ejaaz: much capital if he wants to get to a gigawatt factory per week, like he says. 153 00:09:55,470 --> 00:09:56,970 Josh: That's probably going to be the biggest IPO ever. 154 00:09:57,790 --> 00:10:00,910 Josh: Right. Like, I think right now, OpenAI and SpaceX are kind of neck and neck 155 00:10:00,910 --> 00:10:03,350 Josh: for most valuable private company in the world. 156 00:10:03,670 --> 00:10:05,350 Josh: And when that company goes public, 157 00:10:05,470 --> 00:10:08,710 Josh: my God, the amount of volume that is going to be traded on day one. 158 00:10:08,870 --> 00:10:09,450 Ejaaz: I'll be buying. 159 00:10:10,970 --> 00:10:14,450 Josh: Shout out to the early employees who got stock in OpenAI. My gosh, 160 00:10:14,510 --> 00:10:17,110 Josh: you are about to buy very, very, very, very luxe houses. 161 00:10:17,630 --> 00:10:20,570 Josh: But I guess that's it for OpenAI. This is a really fun topic that I've been 162 00:10:20,570 --> 00:10:22,510 Josh: dying to talk about, which is human order robotics. 163 00:10:22,730 --> 00:10:26,590 Josh: I love human order robotics. And the first one has hit the market, 164 00:10:26,590 --> 00:10:28,190 Josh: or at least so they say. say. 165 00:10:28,570 --> 00:10:31,530 Josh: We're not entirely sure where this stands. Do you want to introduce everyone 166 00:10:31,530 --> 00:10:37,230 Josh: to the OneX Neo humanoid home robot? What the hell is it? What does it do? How does it work? 167 00:10:38,070 --> 00:10:41,290 Ejaaz: Yes. So if you remember on a previous episode, actually last week, 168 00:10:41,290 --> 00:10:45,490 Ejaaz: we spoke about the new figure humanoid robot where it can enter your home, 169 00:10:45,610 --> 00:10:48,290 Ejaaz: it could do a bunch of things, but it can also do a bunch of like other things 170 00:10:48,290 --> 00:10:50,530 Ejaaz: like manufacturing jobs, service jobs and all that kind of stuff. 171 00:10:50,870 --> 00:10:55,670 Ejaaz: This is the latest humanoid robot to come out of a company called OneX. 172 00:10:56,350 --> 00:11:00,690 Ejaaz: And my first impressions of it Josh can I can I can I be honest with you can I be honest I'd 173 00:11:00,690 --> 00:11:01,970 Josh: Love for you to be nothing but honest. 174 00:11:01,970 --> 00:11:05,770 Ejaaz: It looks like a grown-up Teletubby 175 00:11:06,290 --> 00:11:11,230 Ejaaz: I don't mean that in a demeaning way. Let me skip ahead to show you like a clip of this thing. 176 00:11:11,390 --> 00:11:16,190 Ejaaz: It's kind of like in this soft, it's wearing a soft suit. It's got a very pleasant 177 00:11:16,190 --> 00:11:19,150 Ejaaz: looking face. It's got these kind of like glow up ears. 178 00:11:19,290 --> 00:11:24,210 Ejaaz: It looks like an adult alien Teletubby, but it's comforting to be around. 179 00:11:24,610 --> 00:11:28,230 Ejaaz: And in terms of like what it can do, it's this humanoid robot that can live 180 00:11:28,230 --> 00:11:32,690 Ejaaz: in your home and it can do all the things you would kind of expect a houseware robot to do. 181 00:11:32,770 --> 00:11:36,170 Ejaaz: It can clean your dishes, it can put away the groceries, it can lift things. 182 00:11:36,310 --> 00:11:40,070 Ejaaz: I think it has like a lifting capacity of 55 pounds, which is pretty crazy for 183 00:11:40,070 --> 00:11:42,150 Ejaaz: something that weighs 60 pounds. 184 00:11:42,310 --> 00:11:46,270 Ejaaz: I don't know how those mechanics work. I'm not a physicist, but that is pretty insane to see. 185 00:11:46,650 --> 00:11:50,150 Ejaaz: And this video is like a really high production thing, Josh. 186 00:11:50,190 --> 00:11:53,230 Ejaaz: I don't know how much they invested in this, but if the robot that we eventually 187 00:11:53,230 --> 00:11:57,510 Ejaaz: get in our homes in 2026, for the people that are ordering this for 500 bucks 188 00:11:57,510 --> 00:12:01,970 Ejaaz: or buying it outright for $20,000, which is a hefty price tag, 189 00:12:02,230 --> 00:12:06,050 Ejaaz: if it gets anywhere near something like this, I think it's going to completely change the game. 190 00:12:06,190 --> 00:12:09,150 Ejaaz: I would personally get something like this in my home. Josh, 191 00:12:09,610 --> 00:12:12,930 Ejaaz: have you put down the payment on this? Absolutely. What are you doing here? 192 00:12:13,430 --> 00:12:17,910 Josh: No, not at all. Again, here's the tale of two wolves where I am a techno optimist 193 00:12:17,910 --> 00:12:19,830 Josh: who is rooted in reality. 194 00:12:20,010 --> 00:12:23,870 Josh: And I have been around long enough. I have seen enough of these videos that 195 00:12:23,870 --> 00:12:28,210 Josh: look very beautiful and lovely and very welcoming to have a humanoid robot. 196 00:12:28,310 --> 00:12:31,610 Josh: But EJ, how many people have humanoid robots in their house? A total of zero. 197 00:12:31,890 --> 00:12:35,210 Josh: It just doesn't exist. No one shipped them to market. A few things that are 198 00:12:35,210 --> 00:12:39,250 Josh: important to know about this robot. It is, like you mentioned, $20,000 or $500 a month. 199 00:12:39,370 --> 00:12:43,030 Josh: And it does the following. It is able to do basic tests like laundry, 200 00:12:43,750 --> 00:12:46,190 Josh: possibly the dishes, possibly vacuuming. 201 00:12:47,000 --> 00:12:51,560 Josh: We're not entirely sure. And the problem with that is that if it can't do the 202 00:12:51,560 --> 00:12:54,720 Josh: task, you have to use this thing. I believe they call it expert mode. 203 00:12:54,920 --> 00:12:59,480 Josh: Now, expert mode is the giant red flag waving in the sky for me because expert 204 00:12:59,480 --> 00:13:04,480 Josh: mode is the highest signal that this is not ready to enter the market. 205 00:13:05,220 --> 00:13:07,900 Josh: Expert mode means if it's not able to do the thing you want, 206 00:13:08,180 --> 00:13:12,880 Josh: you can schedule a time with the Neo team and someone from the headquarters 207 00:13:12,880 --> 00:13:17,080 Josh: or wherever they're based will get into this little VR suit and manually walk 208 00:13:17,080 --> 00:13:20,140 Josh: the robot through your home to do the task for you. 209 00:13:20,300 --> 00:13:24,120 Josh: So instead of having a maid come to your house, you get some tech engineer, 210 00:13:24,300 --> 00:13:28,720 Josh: put on some goggles, and he is walking through your personal space doing the 211 00:13:28,720 --> 00:13:32,460 Josh: task that you want to do, that you've scheduled ahead of time in order to make this happen. 212 00:13:32,540 --> 00:13:36,440 Josh: And I believe that is what part of that monthly $500 a month thing is, 213 00:13:36,480 --> 00:13:42,080 Josh: is you're actually, you're paying hours of labor for humans to do the emulated 214 00:13:42,080 --> 00:13:44,960 Josh: version inside of this humanoid robot. 215 00:13:45,080 --> 00:13:48,560 Josh: So that to me is a really big red flag. The second red flag that I want to serve 216 00:13:48,560 --> 00:13:51,920 Josh: before I'll pass back to you, AJ, is the fact that this is a pre-order. 217 00:13:52,060 --> 00:13:55,280 Josh: You're not buying a robot. You are buying the rights to a future robot. 218 00:13:55,600 --> 00:13:59,600 Josh: And there is no guarantees that this robot will ever exist at scale, 219 00:13:59,740 --> 00:14:02,620 Josh: nor will it exist to the extent that it's shown in this video. 220 00:14:02,800 --> 00:14:05,220 Josh: And it's one of those things, and we've seen this with It's like, 221 00:14:05,380 --> 00:14:09,240 Josh: show me, don't tell me. And I'm seeing a lot of these really lovely demos. 222 00:14:10,040 --> 00:14:13,240 Josh: But until this thing is actually produced and until this thing gets shipped 223 00:14:13,240 --> 00:14:17,380 Josh: and until it arrives at people's houses, I am going to be sitting here a little 224 00:14:17,380 --> 00:14:20,800 Josh: skeptical because a lot of the companies like... 225 00:14:21,290 --> 00:14:24,030 Josh: I'll use Tesla as an example. They have a proven track record of building really 226 00:14:24,030 --> 00:14:26,670 Josh: badass manufacturing, hardcore engineering stuff. 227 00:14:27,290 --> 00:14:30,810 Josh: These startups don't really have any track record of manufacturing hard things. 228 00:14:30,930 --> 00:14:34,010 Josh: And a humanoid robot is an incredibly difficult thing to manufacture. 229 00:14:34,190 --> 00:14:38,390 Josh: So when they say pre-orders and delivery in 2026, well, I assume the best case 230 00:14:38,390 --> 00:14:40,330 Josh: is like December 31st, 2026. 231 00:14:40,490 --> 00:14:42,670 Josh: I would be shocked if they deliver these at scale before that. 232 00:14:42,830 --> 00:14:45,250 Josh: But I'm wondering if you have if you have a different take on that. 233 00:14:45,550 --> 00:14:48,890 Ejaaz: Sadly, no, I am not going to pay the equivalent 234 00:14:48,890 --> 00:14:51,770 Ejaaz: of half a month's rent uh well 235 00:14:51,770 --> 00:14:54,770 Ejaaz: maybe not in new york but some in some other state um to 236 00:14:54,770 --> 00:14:57,710 Ejaaz: get some third party that is wearing a 237 00:14:57,710 --> 00:15:00,950 Ejaaz: metamorph suit and acting like a shitty uh version 238 00:15:00,950 --> 00:15:06,690 Ejaaz: of avatar um the movie to navigate my robot and clean my clothes i would rather 239 00:15:06,690 --> 00:15:10,390 Ejaaz: spend that money to get some actual house help to to come in and help me out 240 00:15:10,390 --> 00:15:14,750 Ejaaz: with all the things that we're seeing on this video so far okay i have one simple 241 00:15:14,750 --> 00:15:20,110 Ejaaz: rule if you are going to advertise a next generation humanoid robot that is autonomous, 242 00:15:20,530 --> 00:15:22,850 Ejaaz: it should be autonomous. 243 00:15:23,230 --> 00:15:26,470 Ejaaz: And don't sell me something that it needs to be teleoperated. 244 00:15:26,610 --> 00:15:30,210 Ejaaz: It makes sense in the case of something like self-driving cars. 245 00:15:30,350 --> 00:15:33,390 Ejaaz: Waymo, I know, has a tele operation thing. That makes sense because there's 246 00:15:33,390 --> 00:15:34,590 Ejaaz: a lot of safety and stuff involved. 247 00:15:34,690 --> 00:15:37,870 Ejaaz: But for something that is consumer-friendly, for something that is meant to 248 00:15:37,870 --> 00:15:42,090 Ejaaz: make my life a hell of a lot easier in my most private space ever at home, 249 00:15:42,310 --> 00:15:43,630 Ejaaz: it should be fully autonomous. 250 00:15:43,850 --> 00:15:46,870 Ejaaz: And let alone the home is like the most private place, right, Josh? 251 00:15:47,190 --> 00:15:51,130 Ejaaz: Like I have all my valuables here. I don't want some dude in a third world country, 252 00:15:51,350 --> 00:15:55,790 Ejaaz: sorry, navigating around my house and picking stuff up and putting it down. What if they break it? 253 00:15:55,890 --> 00:15:59,050 Ejaaz: What if they do something wrong? Who's liable for that? Do I get insurance with this thing? 254 00:15:59,250 --> 00:16:04,250 Ejaaz: I have no idea. And then tacking on a $20,000 price tag to buy this thing outright. 255 00:16:04,750 --> 00:16:08,690 Ejaaz: If you are buying this outright for $20,000, I'm going to go ahead and say that 256 00:16:08,690 --> 00:16:11,870 Ejaaz: you are kind of like an idiot at that extent. 257 00:16:12,030 --> 00:16:14,030 Ejaaz: Like, I do not advise doing this. 258 00:16:14,570 --> 00:16:18,990 Ejaaz: And then the second point you made, Josh, I think is the more prescient point, which is, 259 00:16:19,420 --> 00:16:23,400 Ejaaz: this thing hasn't been built yet. This hasn't been produced at scale. 260 00:16:23,600 --> 00:16:26,080 Ejaaz: This thing isn't going to come into your home. It's not even guaranteed to come 261 00:16:26,080 --> 00:16:28,660 Ejaaz: into your home until like sometime in 2026. 262 00:16:29,060 --> 00:16:32,080 Ejaaz: By that time, you're going to have other robot companies like Unitree, 263 00:16:32,400 --> 00:16:35,520 Ejaaz: like Figure, come out with their actual robot, which is being built and scaled. 264 00:16:35,700 --> 00:16:39,720 Ejaaz: I have no idea where 1X is as a manufacturing company. 265 00:16:39,860 --> 00:16:44,400 Ejaaz: You've mentioned several times actually on our show, Josh, that one of the bullish 266 00:16:44,400 --> 00:16:49,720 Ejaaz: cases on Tesla's Optimus robot is the fact that Elon is such a manufacturing nerd. 267 00:16:50,100 --> 00:16:55,120 Ejaaz: He's so good at scaling. And I just don't see this or want to trust this with a robot startup. 268 00:16:55,680 --> 00:16:58,800 Josh: Yeah, I don't want to call people dumb for spending $20,000 because if I had 269 00:16:58,800 --> 00:17:01,820 Josh: a disposable $20,000, I would certainly be an early adopter. 270 00:17:01,980 --> 00:17:03,540 Josh: Maybe we can refer to that. 271 00:17:03,760 --> 00:17:06,100 Josh: One of the weird edge case questions that I have is like, okay, 272 00:17:06,160 --> 00:17:09,360 Josh: you pay $500 a month, then what? Like, what if I don't want it anymore? 273 00:17:09,540 --> 00:17:12,040 Josh: Is there like a repo man that comes? Does the robot walk out of my house? 274 00:17:12,920 --> 00:17:16,160 Josh: How does that work? The teleoperation thing, it's a serious problem. 275 00:17:16,380 --> 00:17:18,960 Josh: Um, granted you can schedule it, but I imagine myself like, Oh, 276 00:17:19,000 --> 00:17:22,400 Josh: you walk out of the shower and here is like some, some dude from like wherever he's from. 277 00:17:22,560 --> 00:17:25,360 Josh: He's just like, like, hi, I'm just cleaning your windows. 278 00:17:25,580 --> 00:17:27,880 Josh: It's this really weird, like intimate distraction. 279 00:17:28,240 --> 00:17:34,360 Josh: Um, and I think the open-endedness of that expert mode relative to the set amounts 280 00:17:34,360 --> 00:17:39,440 Josh: of chores that the robot can do leaves a lot to be desired or just a lot of 281 00:17:39,440 --> 00:17:42,920 Josh: unknowns where if I do spend all this money, I don't actually know what it's capable of doing. 282 00:17:43,080 --> 00:17:45,680 Josh: They say it could do a few things, but there's a lot of edge cases. 283 00:17:45,680 --> 00:17:46,740 Josh: Everyone's houses are different. 284 00:17:46,920 --> 00:17:49,940 Josh: Just a little uncertain on this robot. But again, happy people pushing this 285 00:17:49,940 --> 00:17:53,000 Josh: forward. I think this is great progress. I love the vision. 286 00:17:53,320 --> 00:17:57,700 Josh: If the vision in the video becomes a reality, that is a life that I really am 287 00:17:57,700 --> 00:17:59,420 Josh: excited about. That is a reality that is awesome. 288 00:17:59,900 --> 00:18:02,560 Josh: So like shout out to the One X team for trying. They're pushing the ball forward. 289 00:18:02,720 --> 00:18:07,420 Josh: I am not going to knock it too hard because I just admire their effort in making 290 00:18:07,420 --> 00:18:09,580 Josh: this a reality. And like everything else, we'll see. 291 00:18:09,860 --> 00:18:12,080 Josh: Ship the first robot. Let's see how it performs in homes. 292 00:18:14,140 --> 00:18:15,720 Josh: Let's we'll see how it goes but this is, 293 00:18:16,340 --> 00:18:19,940 Josh: I guess that's it for the robot stuff. Now we get into the cyberspace, 294 00:18:20,100 --> 00:18:21,920 Josh: the world of Grok. Oh, hell yeah. 295 00:18:22,020 --> 00:18:25,380 Josh: And Grokopedia has launched this week, EJ. So why is this a big deal? 296 00:18:25,560 --> 00:18:32,520 Ejaaz: This is a huge deal for me because I grew up on Wikipedia and I used it to help 297 00:18:32,520 --> 00:18:35,780 Ejaaz: me research and write a bunch of essays at high school and at college. 298 00:18:36,320 --> 00:18:41,240 Ejaaz: I still used it up until a few days ago where I would like help me clarify something 299 00:18:41,240 --> 00:18:44,440 Ejaaz: about like learning about some archaic thing, which I wouldn't be able to find 300 00:18:44,440 --> 00:18:47,120 Ejaaz: anywhere. It is the internet's resource knowledge. 301 00:18:47,790 --> 00:18:50,870 Ejaaz: Millions of people use it every single day. 302 00:18:51,130 --> 00:18:57,710 Ejaaz: But there's one issue, which is I don't know whether this source of truth is actually the truth. 303 00:18:57,910 --> 00:19:02,170 Ejaaz: And it's been something that we've been increasingly faced in society as things 304 00:19:02,170 --> 00:19:05,650 Ejaaz: like social media become enveloped around the world, like everyone's making 305 00:19:05,650 --> 00:19:09,170 Ejaaz: TikToks, everyone's learning their news from TikTok, from tweets. 306 00:19:09,370 --> 00:19:13,690 Ejaaz: And so it becomes really murky in terms of like figuring out what that truth is. 307 00:19:13,910 --> 00:19:16,670 Ejaaz: So Elon came out a few months ago, and it's 308 00:19:16,670 --> 00:19:20,010 Ejaaz: crazy to say that this happened a few months ago and he said I think 309 00:19:20,010 --> 00:19:22,990 Ejaaz: AI will be the best source of truth and so 310 00:19:22,990 --> 00:19:26,430 Ejaaz: what I'm going to do as part of building out Grok which is xai's 311 00:19:26,430 --> 00:19:29,290 Ejaaz: flagship AI model is create an AI 312 00:19:29,290 --> 00:19:35,550 Ejaaz: version of Wikipedia so he built that and he probably aptly called it Grokipedia 313 00:19:35,550 --> 00:19:40,050 Ejaaz: so what we're seeing in front of us right now is a demo of Grokipedia looks 314 00:19:40,050 --> 00:19:44,390 Ejaaz: like a simple chat shewiti prompt bar except that you can search for everything 315 00:19:44,390 --> 00:19:46,630 Ejaaz: and anything that you typically would in Wikipedia. 316 00:19:46,930 --> 00:19:51,710 Ejaaz: And when you do so, you get this really neat little concise summary and intro 317 00:19:51,710 --> 00:19:55,390 Ejaaz: on whatever topic, one we're seeing on the screen is the Tesla Cybertruck. 318 00:19:55,750 --> 00:19:59,970 Ejaaz: And then it goes on to kind of dig into its early life, similar that you'd see 319 00:19:59,970 --> 00:20:05,070 Ejaaz: on Wikipedia, how it was originated, and its site sources, Josh, 320 00:20:05,250 --> 00:20:06,530 Ejaaz: throughout the entire thing. 321 00:20:06,750 --> 00:20:11,150 Ejaaz: That to me is the most important part because typically in Wikipedia, 322 00:20:11,490 --> 00:20:14,670 Ejaaz: they do this thing which is kind of hidden behind closed doors. 323 00:20:14,810 --> 00:20:21,490 Ejaaz: Where they restrict the number of sources you can use as legitimate sources for your articles. 324 00:20:21,710 --> 00:20:25,430 Ejaaz: And if you look at that list, and if you compare it to the black list, 325 00:20:25,610 --> 00:20:28,870 Ejaaz: which is the very, very long list of sources which you can't quote, 326 00:20:29,090 --> 00:20:34,070 Ejaaz: it starts limiting what can be factual and what can be opinionated. 327 00:20:34,070 --> 00:20:37,970 Ejaaz: And it starts skewing a lot of people's opinions as to what is the truth or what is not. 328 00:20:38,400 --> 00:20:42,620 Ejaaz: Grok, Grok, Grokpedia and Grok on the other hand is completely unbiased. 329 00:20:42,720 --> 00:20:46,660 Ejaaz: It pulls sources from anywhere and everywhere and it does its own analysis to 330 00:20:46,660 --> 00:20:49,260 Ejaaz: vindicate whether the source is legit or whether it's not. 331 00:20:49,400 --> 00:20:53,480 Ejaaz: It does this in real time and it processes hundreds of millions of articles, 332 00:20:53,920 --> 00:20:57,640 Ejaaz: sources, primary sources, secondary resources every single day. 333 00:20:57,900 --> 00:21:01,640 Ejaaz: So I'm super excited about this because I'm, it's going to be my new research 334 00:21:01,640 --> 00:21:03,320 Ejaaz: tool going forwards in terms of fact checking. 335 00:21:03,500 --> 00:21:06,700 Josh: The purpose of Grok is to seek truth. That's kind of their, their end goal. 336 00:21:06,780 --> 00:21:09,740 Josh: That's their stated goal. The same way that a lot of these other companies like 337 00:21:09,740 --> 00:21:11,140 Josh: OpenAI was to have open source AI. 338 00:21:11,500 --> 00:21:14,280 Josh: Grok's is just to seek truth. And I think with Grok5, they're really making 339 00:21:14,280 --> 00:21:18,300 Josh: an attempt to lean into that because a lot of these traditional models are trained 340 00:21:18,300 --> 00:21:21,660 Josh: on the data of the internet, which is highly opinionated and highly biased. 341 00:21:21,940 --> 00:21:25,800 Josh: And what the Grok team, the XAI team in particular is doing is they're figuring 342 00:21:25,800 --> 00:21:30,700 Josh: out ways to filter through the noise and find as close to source truth as they can. 343 00:21:30,820 --> 00:21:34,360 Josh: And we've kind of seen this work with on the X platform with community notes, 344 00:21:34,560 --> 00:21:38,360 Josh: how generally speaking, they are the closest thing we have to source truth because 345 00:21:38,360 --> 00:21:41,700 Josh: it takes all these opposing opinions and kind of aggregates them and comes to a conclusion. 346 00:21:42,780 --> 00:21:46,440 Josh: Grokipedia is showing us community notes at scale. And it's kind of, 347 00:21:46,600 --> 00:21:50,120 Josh: it's the training set that is going to be used on the next Grok model, 348 00:21:50,240 --> 00:21:53,220 Josh: which is Grok5, but they're kind of offering it to the public as a public good. 349 00:21:53,440 --> 00:21:56,080 Josh: And not only is it a public good, it's an interactive public good. 350 00:21:56,140 --> 00:22:00,960 Josh: So if you go to Grokipedia, you can actually suggest a new page to be generated 351 00:22:00,960 --> 00:22:02,540 Josh: because they're all AI generated. 352 00:22:02,860 --> 00:22:05,700 Josh: And Grok will take the liberty on itself to actually filter your request and 353 00:22:05,700 --> 00:22:07,180 Josh: see if it's worthy or if it's not. 354 00:22:07,360 --> 00:22:11,680 Josh: So if Grokipedia deems your request worthy enough, it will actually go and do 355 00:22:11,680 --> 00:22:15,140 Josh: all the work in order to generate a new Wikipedia page or a new Grokipedia page. 356 00:22:15,260 --> 00:22:19,940 Josh: And I think that kind of collaborative nature is fun, not only for Grok to get 357 00:22:19,940 --> 00:22:23,700 Josh: better training data, but for the public to kind of get their own way. 358 00:22:23,860 --> 00:22:28,140 Josh: And what's funny, Ejaz, is I've seen a lot of larger influencers on X posting 359 00:22:28,140 --> 00:22:31,860 Josh: their Grokipedia page with a thank you letter, because for so long their public 360 00:22:31,860 --> 00:22:34,880 Josh: perception has been skewed in a way that wasn't necessarily true. 361 00:22:35,200 --> 00:22:40,500 Josh: And Grokipedia allows that to change, where now there is a source of truth about the person. 362 00:22:40,740 --> 00:22:43,300 Josh: And when you see slander about someone online, you can check, 363 00:22:43,540 --> 00:22:47,740 Josh: you can reference check this and it at least is trying its best to be truthful. 364 00:22:47,880 --> 00:22:51,780 Josh: So that to me is why Grokopedia is, is this exciting new, important revolution 365 00:22:51,780 --> 00:22:55,580 Josh: in technology that we have as a public good. Thank you to the X team. Yeah. 366 00:22:56,240 --> 00:23:00,880 Ejaaz: Well, Josh, one of those people that posted a thank you about Grokipedia was 367 00:23:00,880 --> 00:23:05,200 Ejaaz: the founder of Wikipedia himself, Larry Sanger, one of the founders of Wikipedia. 368 00:23:06,020 --> 00:23:11,400 Ejaaz: And he goes in this tweet, OK, I finished reading my first long article about 369 00:23:11,400 --> 00:23:15,460 Ejaaz: Grokipedia, the one titled Larry Sanger. That's him. That's his name. 370 00:23:15,660 --> 00:23:20,440 Ejaaz: And he goes on to describe that for a version one for an AI based Wikipedia, 371 00:23:20,720 --> 00:23:24,360 Ejaaz: it's actually really good. and it got a lot of things correct. 372 00:23:24,360 --> 00:23:29,700 Ejaaz: Most importantly, the major things, which are the most controversial things about his biography. 373 00:23:29,860 --> 00:23:31,840 Ejaaz: And he goes on citing a few examples. 374 00:23:32,040 --> 00:23:37,720 Ejaaz: He does have a few criticisms, the one being that it gets a few minor mistakes 375 00:23:37,720 --> 00:23:41,400 Ejaaz: that kind of roll in to become a big problem throughout the article. 376 00:23:41,540 --> 00:23:44,940 Ejaaz: But again, he says, hats off to you, Elon, at the end. 377 00:23:45,300 --> 00:23:50,180 Ejaaz: For everyone, this is amazing. I'm looking forward to seeing 1.0 and 2.0 going forwards. 378 00:23:50,980 --> 00:23:55,320 Ejaaz: I think what a lot of people ended up doing when this product released, 379 00:23:55,480 --> 00:23:58,220 Ejaaz: Josh, was to test a few controversial topics. 380 00:23:58,660 --> 00:24:03,260 Ejaaz: Now, I don't want us to be politically affiliated at all on this podcast, 381 00:24:03,300 --> 00:24:08,920 Ejaaz: but just to give a few examples, there was a side-by-side comparison of RFK 382 00:24:08,920 --> 00:24:11,360 Ejaaz: Jr., which is a big political figure in the US. 383 00:24:11,360 --> 00:24:16,920 Ejaaz: And you notice that one is very explicitly unbiased and less opinionated versus 384 00:24:16,920 --> 00:24:20,600 Ejaaz: the other, Grok being the more unbiased version. 385 00:24:20,600 --> 00:24:27,540 Ejaaz: You've got a side-by-side comparison of Donald Trump, and we had a kind of 386 00:24:29,730 --> 00:24:33,910 Ejaaz: Unbiased adjudicator here in this, Josh, in this experiment where they gave Gemini 2.5. 387 00:24:34,150 --> 00:24:39,210 Ejaaz: I don't know why Gemini 2.5 is the unbiased AI model of choice, but apparently it is. 388 00:24:39,490 --> 00:24:43,830 Ejaaz: And it ended up deciding that Grok was in fact the more unbiased model. 389 00:24:43,970 --> 00:24:48,070 Ejaaz: But there's also a bunch of really cool features that you can do in this as well, Josh. 390 00:24:48,370 --> 00:24:51,910 Ejaaz: You mentioned that you can like submit to Grok an article that you want to get 391 00:24:51,910 --> 00:24:53,530 Ejaaz: generated and have it instantly done. 392 00:24:53,710 --> 00:24:58,170 Ejaaz: You can also fix mistakes in Grok as well. You can kind of highlight a request 393 00:24:58,170 --> 00:25:00,970 Ejaaz: or highlight a thing that you think is wrong, submit it to Grok, 394 00:25:01,070 --> 00:25:03,030 Ejaaz: and it analyzes it in the back end. 395 00:25:03,130 --> 00:25:05,690 Ejaaz: The coolest part about this is you're not reliant on a bunch of 396 00:25:06,400 --> 00:25:09,420 Ejaaz: specific moderators, human moderators that go to bed at night, 397 00:25:09,540 --> 00:25:12,100 Ejaaz: that are awake at different times to get back to you. 398 00:25:12,220 --> 00:25:14,800 Ejaaz: This is just done by an AI all in real time. 399 00:25:15,080 --> 00:25:17,700 Ejaaz: If there's something that you don't understand, you can also just highlight 400 00:25:17,700 --> 00:25:22,540 Ejaaz: it similar to how you would do on your iPhone and click like search and it brings 401 00:25:22,540 --> 00:25:24,820 Ejaaz: you the Grokipedia page of that thing. 402 00:25:25,160 --> 00:25:29,180 Ejaaz: So overall, I think this is a net improvement in what Wikipedia was. 403 00:25:29,360 --> 00:25:30,680 Ejaaz: Do I think it's the best thing? 404 00:25:31,000 --> 00:25:34,560 Ejaaz: No, but I think it's going to get a lot better over time. And I'm super excited 405 00:25:34,560 --> 00:25:37,160 Ejaaz: about this. This thing is open source. Anyone can access it. 406 00:25:37,580 --> 00:25:41,340 Josh: Super cool. Bullish on Grokipedia. And it's actually not the only open source 407 00:25:41,340 --> 00:25:44,240 Josh: public good that we are getting in this week's episode. 408 00:25:44,340 --> 00:25:49,100 Josh: There's a second one that goes by a very weird convoluted name of X402. 409 00:25:49,380 --> 00:25:54,680 Josh: And I want to just briefly outline X402, give you like the 10 second little elevator pitch. 410 00:25:54,820 --> 00:25:59,660 Josh: You can imagine X402, this kind of, it turns the web into a giant vending machine. 411 00:25:59,660 --> 00:26:01,940 Josh: So you just like picture the internet as a vending machine. 412 00:26:02,040 --> 00:26:04,780 Josh: You can walk up to it and you could try to like grab something off of the shelf, 413 00:26:04,940 --> 00:26:07,280 Josh: whether it be a file or a video or a song. 414 00:26:07,600 --> 00:26:11,900 Josh: And if it costs money, the website will say, 402, pay this tiny amount. 415 00:26:12,120 --> 00:26:16,220 Josh: And you could pay it instantly. It's a very tiny amount. Like we're talking fractions of pennies. 416 00:26:16,540 --> 00:26:19,900 Josh: You could pay instantly using crypto stable coins like USDC. 417 00:26:20,220 --> 00:26:24,400 Josh: And then boom, you get the thing. And the amazing perk of this is you don't 418 00:26:24,400 --> 00:26:26,000 Josh: need an account. You don't need a password. 419 00:26:26,200 --> 00:26:29,040 Josh: You just pay for the thing you want and you walk away. Just like a vending machine. 420 00:26:29,160 --> 00:26:30,040 Josh: You want to watch a new video. 421 00:26:30,260 --> 00:26:33,180 Josh: Oh, here's like, give me 10 cents or 10%, one 422 00:26:33,180 --> 00:26:35,860 Josh: tenth of a penny and you get access to this video and you can take it off 423 00:26:35,860 --> 00:26:39,100 Josh: the wall and x402 it's just this open platform kind 424 00:26:39,100 --> 00:26:42,640 Josh: of like http in fact they use part of the http protocol for 425 00:26:42,640 --> 00:26:45,920 Josh: this um that allows the internet to implement this across 426 00:26:45,920 --> 00:26:48,900 Josh: the board so anyone who wants to integrate it 427 00:26:48,900 --> 00:26:51,760 Josh: can integrate it you can kind of imagine i think a lot of people are familiar 428 00:26:51,760 --> 00:26:54,760 Josh: with linux how it's just open source if you want to integrate you can that's 429 00:26:54,760 --> 00:26:59,400 Josh: what 402 is and it's this really awesome thing that allows ai agents in particular 430 00:26:59,400 --> 00:27:03,720 Josh: to start engaging with the internet without needing an account without needing 431 00:27:03,720 --> 00:27:06,180 Josh: a password, without needing to prove that they are humans. 432 00:27:06,620 --> 00:27:09,980 Josh: So you have this big explainer up. Do you want to add anything to that explanation? 433 00:27:10,660 --> 00:27:16,560 Ejaaz: No, I think you did a great job. What I will add is, I love the vending machine example. 434 00:27:16,940 --> 00:27:22,040 Ejaaz: But yeah, to emphasize, this is a new web standard. So you don't have to go 435 00:27:22,040 --> 00:27:25,100 Ejaaz: through a middleman like Stripe or PayPal. 436 00:27:25,420 --> 00:27:29,160 Ejaaz: This is something that you can spin up and integrate into your website or app 437 00:27:29,160 --> 00:27:34,940 Ejaaz: today, right now. And what's cool about this is it unlocks a bunch of really cool use cases. 438 00:27:35,140 --> 00:27:41,820 Ejaaz: So in the previous world, before X402, you would need to set up a PayPal account, 439 00:27:41,980 --> 00:27:47,560 Ejaaz: you would need to set up a checkout system, or enable subscriptions via your own API. 440 00:27:47,840 --> 00:27:51,360 Ejaaz: So if someone wanted to get access to your product, you would query your API, 441 00:27:51,540 --> 00:27:52,980 Ejaaz: and you could either offer them two options. 442 00:27:53,380 --> 00:27:56,020 Ejaaz: Here's all the information in the product that you want for free, 443 00:27:56,060 --> 00:27:58,720 Ejaaz: or you need to subscribe to my thing, which is kind of like, 444 00:27:58,860 --> 00:28:02,000 Ejaaz: think of like a newsletter or a news media corporation in today's world. 445 00:28:02,180 --> 00:28:04,960 Ejaaz: You've got to pay a subscription to get access to the Financial Times, for example. 446 00:28:05,920 --> 00:28:10,500 Ejaaz: Now, you can go to the same app and website and just pay per use, 447 00:28:10,520 --> 00:28:12,080 Ejaaz: which is the coolest part for me. 448 00:28:12,220 --> 00:28:15,600 Ejaaz: Like, Josh, do you know the number of times that I've gone to read an article 449 00:28:15,600 --> 00:28:18,400 Ejaaz: on tech or whatever, and I've just been paywalled? 450 00:28:18,540 --> 00:28:23,660 Ejaaz: I would love to be able to pay like 50 cents or whatever the amount is one time 451 00:28:23,660 --> 00:28:28,500 Ejaaz: and get access to it instantaneously a protocol like this allows you to do it 452 00:28:28,500 --> 00:28:32,240 Ejaaz: and any human can get access to it but the second part is something that you 453 00:28:32,240 --> 00:28:33,880 Ejaaz: mentioned josh ai agents 454 00:28:34,480 --> 00:28:39,360 Ejaaz: I'm firmly of the belief that the future way of digital commerce is not going 455 00:28:39,360 --> 00:28:41,260 Ejaaz: to be via humans or facilitated by humans. 456 00:28:41,380 --> 00:28:44,020 Ejaaz: It's all going to be done digitally through agents. 457 00:28:44,220 --> 00:28:49,080 Ejaaz: You need a standard like this, an open protocol that facilitates payments in 458 00:28:49,080 --> 00:28:53,240 Ejaaz: a matter of microseconds to exist for that world to exist. 459 00:28:53,480 --> 00:28:56,020 Ejaaz: So this is a major, major evolution. 460 00:28:56,300 --> 00:28:59,900 Ejaaz: People probably won't be as excited about this until they start using the product 461 00:28:59,900 --> 00:29:03,000 Ejaaz: themselves. They probably won't have any idea that it's happening in the back end. 462 00:29:03,200 --> 00:29:07,340 Ejaaz: But as a former and current crypto nerd, this is super cool. 463 00:29:08,020 --> 00:29:11,140 Josh: Yeah, well, here's why people should be excited about it because initially it sounds horrific. 464 00:29:11,460 --> 00:29:14,780 Josh: I'm like, wait, I don't want to pay to read an article or to watch a video. 465 00:29:15,060 --> 00:29:18,580 Josh: And that seems like a terrible, terrible, terrible user experience. 466 00:29:18,700 --> 00:29:21,080 Josh: But the alternative has actually been much worse. 467 00:29:21,240 --> 00:29:23,560 Josh: It is the advertising model that gets in the way. 468 00:29:23,720 --> 00:29:26,960 Josh: It's the subscription model that costs $30 a month just to read a couple of articles. 469 00:29:27,340 --> 00:29:33,540 Josh: And what this does is it kind of offloads a lot of the financial burden of a 470 00:29:33,540 --> 00:29:36,460 Josh: company onto like an open source platform. 471 00:29:36,640 --> 00:29:39,600 Josh: So if you don't want to, if you wanted to go read that article, 472 00:29:39,740 --> 00:29:42,320 Josh: EJ, you wouldn't need to pay $20 a month to the New York Times. 473 00:29:42,480 --> 00:29:46,420 Josh: You could just pay a couple cents for that specific article and get a chance 474 00:29:46,420 --> 00:29:48,280 Josh: to get the content that you want and move on with it. 475 00:29:48,520 --> 00:29:53,220 Josh: And I imagine that the net of this probably equals out to be lesser. 476 00:29:54,030 --> 00:29:58,130 Josh: Than what it would be in the traditional sense of things. So that hurts a lot 477 00:29:58,130 --> 00:30:01,650 Josh: of traditional companies where if you are making a killing off of $20 a month 478 00:30:01,650 --> 00:30:05,530 Josh: for people to read five articles, this is probably going to be a little scary. 479 00:30:05,570 --> 00:30:07,990 Josh: But for the rest of the open internet that wants to lean into this, 480 00:30:08,090 --> 00:30:11,850 Josh: that wants to have the AI agents do things on our behalf, if I could give my 481 00:30:11,850 --> 00:30:17,090 Josh: agent a wallet with $100 in it and say, here's your budget for the next couple 482 00:30:17,090 --> 00:30:19,270 Josh: of months, go get me all of the information you need, 483 00:30:19,510 --> 00:30:21,910 Josh: track down all the sources you need to aggregate that for me, 484 00:30:21,970 --> 00:30:23,910 Josh: that is like a huge, huge unlock. 485 00:30:24,030 --> 00:30:26,690 Josh: And most importantly, you just don't need an account or anything. 486 00:30:26,810 --> 00:30:30,430 Josh: It just lowers the friction to use the internet. So this, by all means, great progress. 487 00:30:30,650 --> 00:30:33,470 Josh: Big fan of X402 and just excited to see what comes from it. Normally, 488 00:30:33,490 --> 00:30:38,190 Josh: when we get these protocols, the amount of innovation that happens as a second 489 00:30:38,190 --> 00:30:39,470 Josh: order effect of it is just massive. 490 00:30:39,650 --> 00:30:44,070 Josh: So this has a real chance at really shaping the way the internet looks and how 491 00:30:44,070 --> 00:30:45,970 Josh: we engage with it over the next couple of years. 492 00:30:46,270 --> 00:30:53,630 Ejaaz: Okay, going on to our final topic and arguably the most controversial on the docket this week. 493 00:30:54,510 --> 00:30:59,630 Ejaaz: We want to put data centers out in space. This is something we mentioned last 494 00:30:59,630 --> 00:31:04,370 Ejaaz: week where a company called StarCloud is planning on building an AI compute 495 00:31:04,370 --> 00:31:07,170 Ejaaz: data center and launching it into space. 496 00:31:07,310 --> 00:31:10,450 Ejaaz: Apparently, this is going to make it a hell of a lot more efficient. 497 00:31:10,830 --> 00:31:15,830 Ejaaz: Apparently, beaming compute down onto Earth is way more environmentally friendly 498 00:31:15,830 --> 00:31:17,030 Ejaaz: because it's out in space. 499 00:31:17,190 --> 00:31:19,550 Ejaaz: There's nothing around it. It can just emanate heat, right? 500 00:31:20,050 --> 00:31:22,870 Ejaaz: But Josh, I know you have a lot of strong opinions on this. 501 00:31:23,390 --> 00:31:27,670 Ejaaz: I have this tweet lined up to give an update as to what exactly they're doing 502 00:31:27,670 --> 00:31:28,810 Ejaaz: and how they're achieving it. 503 00:31:28,930 --> 00:31:33,070 Ejaaz: And I have to say, and by the way, this tweet thread was produced by an AI model, 504 00:31:33,170 --> 00:31:34,610 Ejaaz: Perplexity, so shout out to them. 505 00:31:35,230 --> 00:31:38,310 Ejaaz: They give a very compelling case, Josh. There's a few things. 506 00:31:38,450 --> 00:31:41,150 Ejaaz: They talk about the fact that these satellites are probably, 507 00:31:41,350 --> 00:31:45,670 Ejaaz: this hardware is probably not going to be as heavy as people are claiming it to be. 508 00:31:45,750 --> 00:31:50,330 Ejaaz: So it actually makes it kind of efficient or cost worthy enough to launch some 509 00:31:50,330 --> 00:31:51,710 Ejaaz: of these things in space. 510 00:31:52,150 --> 00:31:56,230 Ejaaz: It's going to be the first ever AI model that is going to be launched and trained 511 00:31:56,230 --> 00:31:58,910 Ejaaz: and fine-tuned out in space. That's another one. 512 00:31:59,230 --> 00:32:02,430 Ejaaz: And also they talk about the biggest criticism that they've faced, 513 00:32:02,430 --> 00:32:07,710 Ejaaz: which is around how these data centers in space are gonna emanate heat. 514 00:32:07,950 --> 00:32:12,290 Ejaaz: There is no way to do that in space. Space is a vacuum. 515 00:32:12,550 --> 00:32:16,390 Ejaaz: And they talk about this neat little convection layer that they're gonna like 516 00:32:16,390 --> 00:32:21,230 Ejaaz: kind of film the entire or cover the entire data center with. 517 00:32:21,410 --> 00:32:24,250 Ejaaz: I don't know if that's true. That's kind of like the theory around it. 518 00:32:24,390 --> 00:32:27,590 Ejaaz: But most importantly, the economics are pretty insane. 519 00:32:27,790 --> 00:32:32,990 Ejaaz: On Earth, they claim that it's gonna cost you around $167 million to set up 520 00:32:32,990 --> 00:32:35,630 Ejaaz: the same kind of thing that they're trying to do in space. 521 00:32:35,750 --> 00:32:39,290 Ejaaz: But in orbit, it's only going to cost them $8.2 million. 522 00:32:39,830 --> 00:32:43,810 Ejaaz: Josh, to any kind of businessman looking at these figures, that is an investable 523 00:32:43,810 --> 00:32:46,270 Ejaaz: worthy company. Tell me why I'm wrong. 524 00:32:46,920 --> 00:32:49,160 Josh: This is outrageous. I can't believe we're talking about this. 525 00:32:49,880 --> 00:32:53,660 Josh: See, this is proof that you can't really trust AI agents, really. 526 00:32:54,180 --> 00:32:58,820 Josh: So the cost structure here is pretty outrageous. So like $167 million versus $8.2 million. 527 00:32:59,220 --> 00:33:02,940 Josh: Clearly, there's something wrong there because the cost per kilogram to orbit 528 00:33:02,940 --> 00:33:07,380 Josh: at the moment is $2,000 to $10,000 per kilogram. 529 00:33:08,060 --> 00:33:14,740 Josh: Five or 40 megawatts is an astronomical amount of infrastructure required, 530 00:33:14,740 --> 00:33:21,460 Josh: particularly because in order to cool a five megawatt data center in space, 531 00:33:21,600 --> 00:33:22,620 Josh: because there is no atmosphere, 532 00:33:22,860 --> 00:33:28,620 Josh: it requires 16 square kilometers of radiators and heat dissipation. 533 00:33:28,740 --> 00:33:35,640 Josh: And if you want a 40 megawatt data center up there, that is a very gigantic 534 00:33:35,640 --> 00:33:40,040 Josh: piece of space junk that is not really proven in technology. 535 00:33:40,040 --> 00:33:43,100 Josh: There's a lot of things like shielding that is really difficult because there 536 00:33:43,100 --> 00:33:46,860 Josh: is a lot more solar flare energy. If a single bit gets flipped in any of these 537 00:33:46,860 --> 00:33:48,760 Josh: training runs, it's very difficult to recover. 538 00:33:48,840 --> 00:33:51,780 Josh: You have to do the whole thing over again. So radiation is a problem. 539 00:33:52,220 --> 00:33:56,720 Josh: The cooling is a problem. The cost, I think they must be assuming that the cost 540 00:33:56,720 --> 00:34:01,260 Josh: per kilogram to orbit is like starship final form when it gets down to like 541 00:34:01,260 --> 00:34:02,760 Josh: 10 to 30 kilograms per orbit. 542 00:34:02,980 --> 00:34:06,700 Josh: The reality is it costs several orders of magnitude more to do that today. 543 00:34:06,800 --> 00:34:12,080 Josh: And what this isn't taking into account either is the decreasing cost of electricity over time. 544 00:34:12,800 --> 00:34:17,280 Josh: Since the early 1900s industrial era in the United States, we have not really 545 00:34:17,280 --> 00:34:18,920 Josh: needed to produce that much more energy. 546 00:34:19,360 --> 00:34:22,020 Josh: Like our energy has been kind of gradual, but it's never gone up the exponential 547 00:34:22,020 --> 00:34:23,340 Josh: curve in the same way technology did. 548 00:34:23,990 --> 00:34:27,210 Josh: We are very much at the exponential curve right now where that is changing. 549 00:34:27,530 --> 00:34:31,890 Josh: And I think to assume that energy costs are going to remain this high is fairly 550 00:34:31,890 --> 00:34:36,170 Josh: outrageous because clearly the goal is to get energy costs as close to zero as possible. 551 00:34:36,410 --> 00:34:40,970 Josh: There is no change to this trend. And this whole thing kind of seems outrageous. 552 00:34:40,970 --> 00:34:44,470 Josh: Now, granted, I love the idea that they are experimenting, that they want to 553 00:34:44,470 --> 00:34:48,590 Josh: try to make these fun outer space orbits. But it just seems kind of hand-wavy. 554 00:34:48,770 --> 00:34:52,870 Josh: One of their bragging points is, oh, this is 100 times more compute power than 555 00:34:52,870 --> 00:34:54,810 Josh: the largest GPU that's ever been in space. 556 00:34:54,950 --> 00:34:58,370 Josh: And that's because we don't ship GPUs to space. Like this is just the first 557 00:34:58,370 --> 00:35:00,050 Josh: big one we've ever shipped. And it's one of them. 558 00:35:00,210 --> 00:35:04,710 Josh: And real data centers now need millions of these coherently operating together. 559 00:35:04,910 --> 00:35:08,270 Josh: So to me, it's like, it's a fun science experiment, but I wouldn't take this 560 00:35:08,270 --> 00:35:11,830 Josh: very seriously because there are lots of long time scales and technology breakthroughs 561 00:35:11,830 --> 00:35:14,950 Josh: required in order to make that number realistic. 562 00:35:16,080 --> 00:35:21,980 Ejaaz: All right. Okay. Listen, Josh, all very valid points, but I have one more comment to make. 563 00:35:22,780 --> 00:35:27,520 Ejaaz: You criticize the fact that this company is suggesting to build out like, what is it? 564 00:35:27,580 --> 00:35:31,600 Ejaaz: A 14 kilometer satellite or data infrastructure to actually build it. 565 00:35:31,600 --> 00:35:32,820 Josh: That's just the physics of what it takes to cool it. 566 00:35:33,420 --> 00:35:38,960 Ejaaz: Right. Okay. To cool this, right? Isn't the whole point of space that there's a lot of space? 567 00:35:39,220 --> 00:35:42,700 Ejaaz: Why can't they just launch whatever the hell they want? We have infinite space 568 00:35:42,700 --> 00:35:44,580 Ejaaz: in this thing? Why can't they just do that? 569 00:35:44,900 --> 00:35:48,720 Josh: It turns out like space isn't super infinite and particularly on low earth orbit. 570 00:35:48,860 --> 00:35:51,680 Josh: I imagine there's going to be a large battle for low earth orbit. 571 00:35:51,840 --> 00:35:55,500 Josh: Why low earth orbit? Well, it is low earth. It's close to earth. 572 00:35:55,740 --> 00:35:59,220 Josh: And because of a thing called latency, we want these things, 573 00:35:59,360 --> 00:36:00,960 Josh: we want to be able to communicate with these things faster. 574 00:36:01,140 --> 00:36:04,620 Josh: And unfortunately, the speed of light does have a cap and things cannot, 575 00:36:04,820 --> 00:36:07,520 Josh: we haven't figured out how to make things travel any faster than the speed of light. 576 00:36:07,620 --> 00:36:11,500 Josh: So if your data center is further away, it takes much longer to communicate 577 00:36:11,500 --> 00:36:13,300 Josh: back with Earth. And that becomes a problem. 578 00:36:13,920 --> 00:36:19,460 Josh: What I prefer is instead of putting these like giant 16 square kilometer like 579 00:36:19,460 --> 00:36:24,940 Josh: pieces of things into this precious space, space in space, well, 580 00:36:25,140 --> 00:36:29,100 Josh: wouldn't it be cool to just throw like a lot more of these Starlink V3 satellites 581 00:36:29,100 --> 00:36:31,600 Josh: down there so they can beam direct to cell service back to us? 582 00:36:32,040 --> 00:36:35,960 Josh: I think there's a lot more practical utility of that low Earth orbit versus 583 00:36:35,960 --> 00:36:39,500 Josh: throwing these like gigantic things that require a lot of space. 584 00:36:39,660 --> 00:36:42,420 Josh: You just, if you saw, we talked about the SpaceX launch last week. 585 00:36:42,880 --> 00:36:45,180 Josh: Those satellites are very small. They don't take up a lot of space, 586 00:36:45,260 --> 00:36:46,180 Josh: but they are very high impact. 587 00:36:46,700 --> 00:36:52,180 Josh: These on the other hand are gigantic. And yeah, it doesn't strike me as very 588 00:36:52,180 --> 00:36:56,320 Josh: exciting as a lucrative way of using our limited real estate up there. 589 00:36:57,080 --> 00:37:01,940 Ejaaz: Yeah, I appreciate the boldness of the idea. This team did come out of Y Combinator, 590 00:37:02,000 --> 00:37:07,500 Ejaaz: so I'm presuming that it is quite fitting to the batch and cohort that they're graduating from. 591 00:37:07,580 --> 00:37:12,840 Ejaaz: Y Combinator always launches pretty loony ideas, which end up sometimes becoming world-changing. 592 00:37:13,040 --> 00:37:17,260 Ejaaz: But we are yet to see whether StarCloud will prove their thesis of launching 593 00:37:18,120 --> 00:37:20,960 Ejaaz: Jensen Huang's NVIDIA GPUs into space. 594 00:37:21,440 --> 00:37:27,920 Ejaaz: Speaking of Jensen Huang, $5 trillion market cap. It is an absolute crazy week. 595 00:37:28,080 --> 00:37:31,960 Ejaaz: It is earnings week this week, guys. Stock market is at all-time highs. 596 00:37:32,320 --> 00:37:36,020 Ejaaz: We mentioned Microsoft and Apple. Apple, super randomly, coming out of nowhere. 597 00:37:36,140 --> 00:37:40,420 Ejaaz: I thought AI had beholden them. I thought they had completely skipped the entire phase. 598 00:37:40,780 --> 00:37:43,700 Ejaaz: Somehow they surpassed a $4 trillion market cap. Maybe they're underpriced. 599 00:37:43,800 --> 00:37:46,440 Ejaaz: We'll talk about more of that potentially next week. 600 00:37:46,640 --> 00:37:48,840 Ejaaz: But that is all that we have on our docket today. 601 00:37:49,080 --> 00:37:53,180 Ejaaz: I just want to say from me personally, thank you so much for the support all 602 00:37:53,180 --> 00:37:57,280 Ejaaz: of you guys have shown us. So far, we had like one of our most viewed videos 603 00:37:57,280 --> 00:37:59,960 Ejaaz: ever last week. And we're having an amazing week this time. 604 00:38:00,140 --> 00:38:02,580 Ejaaz: All the comments and feedback that you guys are giving, all the likes, 605 00:38:02,680 --> 00:38:06,500 Ejaaz: all the subscriptions, all the ratings that you're giving us on RSS, 606 00:38:06,680 --> 00:38:10,400 Ejaaz: Spotify, Apple Music, wherever you're listening to this is hugely, hugely appreciated. 607 00:38:10,520 --> 00:38:12,860 Ejaaz: If you haven't done any of that already, that's okay. 608 00:38:13,040 --> 00:38:15,320 Ejaaz: Please do it now. It takes a few seconds. 609 00:38:16,080 --> 00:38:18,080 Ejaaz: And Josh, do you have anything else that you want to share? 610 00:38:18,610 --> 00:38:21,450 Josh: Oh, I have to remind you, we've had a big week in the world of YouTube, 611 00:38:21,450 --> 00:38:23,850 Josh: which is awesome. There's been a lot of new people joining and subscribing. 612 00:38:24,150 --> 00:38:27,350 Josh: Just a reminder that there is an audio version of this available on Spotify 613 00:38:27,350 --> 00:38:30,950 Josh: where you can also watch the video as well as just audio only on RSS feeds, 614 00:38:31,030 --> 00:38:34,410 Josh: basically anywhere where you get podcasts. Spotify is my favorite way to watch the show. 615 00:38:35,390 --> 00:38:38,530 Josh: Sometimes I'll rewatch our episodes and I'll go on my Spotify and it's nice 616 00:38:38,530 --> 00:38:43,050 Josh: because it's a pocket player that does audio, but it also has video built right in. 617 00:38:43,170 --> 00:38:45,770 Josh: So if I'm on the treadmill and I want to watch, I could just watch it 618 00:38:45,770 --> 00:38:48,550 Josh: on my phone or if I just like lock my phone because unless you 619 00:38:48,550 --> 00:38:51,310 Josh: have youtube premium you can't lock your phone and still listen it still 620 00:38:51,310 --> 00:38:54,590 Josh: plays in the background so spotify is my preferred way of watching but yeah just thank 621 00:38:54,590 --> 00:38:57,230 Josh: you all so much for the support and for sharing with your friends and just being 622 00:38:57,230 --> 00:39:01,790 Josh: here for every episode as we travel along the journey and reach all-time highs 623 00:39:01,790 --> 00:39:05,590 Josh: across the board particularly in stocks this week so big earnings season coming 624 00:39:05,590 --> 00:39:08,310 Josh: up i'm sure we'll get into some of that next week but that's been another great 625 00:39:08,310 --> 00:39:11,870 Josh: week on limitless and thank you all for watching as always we'll see you guys next week.