Exploring the frontiers of Technology and AI
Ejaaz:
This is the most ridiculous turn of events. No one saw this coming.
Ejaaz:
Two of the biggest rivals in AI, SpaceX and Anthropic, are teaming up to take
Ejaaz:
down Sam Altman at OpenAI.
Ejaaz:
And the reason why this is so ridiculous is literally a month ago,
Ejaaz:
Elon was posting tweets like this.
Ejaaz:
Anthropic hates Western civilization. What else have we got?
Ejaaz:
We've got your AI hates white Asians, heterosexuals, and men.
Ejaaz:
This is misanthropic and evil. all the way to today or yesterday where he announced
Ejaaz:
that I've reviewed Dario, I've spoken to the senior team at Anthropic,
Ejaaz:
and I have determined that they are in fact not evil.
Ejaaz:
And Claude, I quote, will probably be good.
Ejaaz:
This is a huge ton of events. They've signed a big deal where Anthropic is going
Ejaaz:
to buy $5 billion worth of SpaceX's GPUs, also known as Colossus One,
Ejaaz:
their first major data center.
Ejaaz:
And in turn, they're going to double everyone's Claude restriction limits.
Ejaaz:
And Claude is finally going to catch up with OpenAI.
Ejaaz:
I am shocked that this partnership is happening, but it's great to see.
Josh:
You got to love a CEO that changes his mind. The guy who hated Anthropic,
Josh:
he spent a week with them and he was like, you know what? These guys aren't that bad.
Josh:
What did he say here? He says, so long as they engage in critical self-examination,
Josh:
Claude will probably be good.
Josh:
He said, everyone I met was highly competent and cared a great deal about doing the right thing.
Josh:
No one set off my evil detector. So he went, he did some background checks and
Josh:
he said, yeah, we'll give you the entire Colossus One data center. I'm now your landlord.
Josh:
That's a really funny turn of events. I think it's important to highlight the
Josh:
context of why this is so important for anyone who has been following along.
Josh:
Anthropocos had a really difficult time keeping up with their compute demands,
Josh:
mostly because they have grown so quickly.
Josh:
In fact, yesterday at Claude's coding event, we had a clip from Dario who was
Josh:
kind of doing just a general state of the union.
Josh:
And he shared with the public that anthropic was off by a factor of eight in
Josh:
projecting their growth. So over the course of the year, they projected
Josh:
For about a 10x multiple on the amount of compute they would need.
Josh:
The reality is that this year alone, they are now guiding for 80 times what they were expecting.
Josh:
A full 8x multiple higher than what they were projecting.
Josh:
So therefore, they had a big problem. They couldn't serve the compute.
Josh:
The quality of Opus was getting much worse. They needed compute.
Josh:
Where is the only large coherent cluster that's sitting dormant? Well, it's owned by XAI.
Josh:
It's owned by the SpaceX team, and they signed a deal to give them the entire thing.
Josh:
So the whole Colossus 1 cluster that XAI was using to train their early models is now run by Anthropic.
Josh:
And as a result, like you mentioned, DJAS, they doubled the rate limits.
Josh:
And now Colossus 2, which is the new largest cluster, that's where SpaceX AI
Josh:
is going to be training their new data centers.
Josh:
Now you'll notice I said SpaceX AI and not XAI, because as of yesterday,
Josh:
XAI has been depreciated. It no longer exists.
Josh:
SpaceX is kind of rolling everything up into one. And now they are working together
Josh:
right down the street anthropic is serving ai from one data center and spacex
Josh:
ai is serving data from the other and this is a pretty big change of heart in
Josh:
the ai race this is a big deal
Ejaaz:
There's so many stories wrapped into this one story both positive and perplexing
Ejaaz:
to me that like i don't know i'm just gonna uh mind dump on you for a bit josh
Ejaaz:
and like let me know where where you think i end up okay so
Ejaaz:
Number one, SpaceX has been, or XAI, has been trailing behind the frontier labs,
Ejaaz:
right? They didn't have enough compute.
Ejaaz:
We haven't had a good pioneering grok release for like ages at this point, well over a year.
Ejaaz:
And so the idea was, okay, if you amass enough GPUs, you can create a better
Ejaaz:
model. But that hasn't been the case.
Ejaaz:
And an article broke last week that said that XAI hasn't even been utilizing
Ejaaz:
all their GPUs. In fact, 11% of the million GPUs that they have hasn't being used for Grok.
Ejaaz:
And the idea here would be that Grok just isn't as in demand as some of these
Ejaaz:
other models like Claude and ChatGPT.
Ejaaz:
So now we see Elon pivoting to a NeoCloud to become an AI compute infrastructure provider.
Ejaaz:
And this isn't the first time that he's done it. Literally two weeks ago,
Ejaaz:
he signed a deal with Cursor to do the exact same thing.
Ejaaz:
And that, by the way, was for Colossus 2. So although we're saying he's using
Ejaaz:
Colossus 2 to train Grok models, he's also sectioning off a portion of that
Ejaaz:
to allow Cursor to build their own coding model.
Ejaaz:
Now, that's a bit of a different deal because the agreement that they've signed
Ejaaz:
is if Cursor builds a really good coding model, hey, could you like lend that
Ejaaz:
to XAI for Grok as well so we can pass it off as a code code competitor?
Ejaaz:
So that's a little more symbiotic between the two companies.
Ejaaz:
But for Anthropic, it's pretty clear. Anthropic pays $5 billion for
Ejaaz:
Elon gets to register that as revenue so that, you know, XAI makes a bunch of money.
Ejaaz:
And for Anthropic, they get access to 300 megawatts of power this month.
Ejaaz:
That is a crazy amount of power to have online. And it's pretty clear from Dario's
Ejaaz:
words in that clip that we just showed, which is that Anthropic has been lagging behind on compute.
Ejaaz:
We finally have the answer as to why we don't have clawed midos.
Ejaaz:
In my opinion, it's not because it was too dangerous.
Ejaaz:
It's because they didn't have enough compute to serve it in the first place.
Ejaaz:
And Living Proof is literally their biggest rival, OpenAI, which delivered 5.5 to everyone.
Ejaaz:
And it is called Mythos Little. So the story writes itself.
Josh:
Yeah, now Anthropic, they're basically serving compute from every single hyperscaler.
Josh:
They have a deal with AWS, with Google, with Microsoft, with NVIDIA,
Josh:
with FluidStack, and now SpaceX.
Josh:
And SpaceX is the most exciting, the most noteworthy of these,
Josh:
because this seems like a pretty large pivot in their business model.
Josh:
Now they have Colossus 2, which is currently 500,000 coherent Blackwell chips in a single cluster.
Josh:
That's the most powerful in the world so hopefully we start
Josh:
to see some amazing stuff coming out of this SpaceX AI team
Josh:
but more importantly when you look at the SpaceX business model
Josh:
that's performed so well it's very much a services industry they're taking
Josh:
satellites and they're blasting them into outer space and they have their own
Josh:
business built on top of it with Starlink but they are that service provider
Josh:
and owning the rail has proved to be very lucrative as a business model now
Josh:
what SpaceX AI is doing currently is kind of the same thing but early stages
Josh:
where they have this infrastructure they're incredible at building data centers
Josh:
faster than everyone else.
Josh:
And now they're leasing it out to other people who need it.
Josh:
This applies further out with space as well.
Josh:
Now, in the announcement that they spoke about, they very clearly mentioned space AI data centers.
Josh:
Anthropic is very excited about this. And it seems as if they're going to be
Josh:
working together as well for the space part of the deal.
Josh:
So once that Starship 3 rocket comes online this year, once they start getting
Josh:
payload into space and they start launching satellites, Anthropic is going to
Josh:
have data centers on those rockets into outer space to help with their compute needs.
Josh:
So not only is SpaceX AI currently sitting on the largest coherent cluster of
Josh:
GPUs with Colossus 2, but
Josh:
They now own all of the rails and the only way of getting compute into outer
Josh:
space for themselves, but also for every other company in the world who's going
Josh:
to need more data centers that are going to need to go out in outer space.
Josh:
It's a pretty amazing business they have.
Ejaaz:
I think this is a great move for Elon on Xair.
Ejaaz:
And I'm in fact more bullish on Xair after they've made this announcement because
Ejaaz:
Elon is just doing what he does best.
Ejaaz:
He does a zero to one innovation and then he scales the crap out of that.
Ejaaz:
He did that with electric cars. He's doing that with humanoid robots,
Ejaaz:
and now he's going to do that, hopefully, with compute.
Ejaaz:
No one has built a data center as large and as powerful as he has in the time that he has.
Ejaaz:
Do you know what I mean? So he just has a very impressive knack for scaling things.
Ejaaz:
I want to share this tweet, which I think summarizes this entire story with
Ejaaz:
a nice bow tie, which is, XAI is a middling frontier lab and an incredible world-class infra provider.
Ejaaz:
Anthropic is an incredible frontier lab and a middling infra provider.
Ejaaz:
They had to join forces in order to defeat OpenAI, which is both a good frontier lab with good infra.
Ejaaz:
And that's very much how I see this playing out. Anthropic needed compute.
Ejaaz:
XAI has a lot of compute needed to sell it, so it works vice versa.
Ejaaz:
It's important to note that having Anthropic as one of your major customers
Ejaaz:
for compute is probably one of the biggest compliments you can get.
Ejaaz:
I just want to point out that Amazon, Google, and I believe Microsoft's 50%
Ejaaz:
of their compute backlog is purchased by Anthropic themselves.
Ejaaz:
So Anthropic is trying to get their hands on all the compute that makes sense.
Ejaaz:
And this is just another partnership that enables that. So cool to see.
Josh:
Yeah, they're trying to play catch up and it seems as if they have this.
Josh:
It's funny. This was literally the only way they could have got it.
Josh:
This is the only compute cluster of this size available on earth for them.
Josh:
And they somehow managed to secure it.
Ejaaz:
Well, actually, Josh, there is another company whose stock has been underperforming
Ejaaz:
for the last month, who also has the second biggest cluster or data center,
Ejaaz:
and might also do the same thing because their AI products aren't in demand.
Josh:
You guess? Oh, can I take a guess? Yeah.
Josh:
Speaking of products that are not in demand, we have meta who has
Josh:
also spent a tremendous amount of money on ai and compute and has yes nothing
Josh:
to show for it or not much at least so is that who comes next is this the new
Josh:
type of business model did like spacex just start the new thing like hey if
Josh:
you suck at ai perhaps you can just like use our compute until we figure it
Josh:
out and you pay us a lot of money for that i
Ejaaz:
I can do you one better um meta actually announced on their previous uh earnings
Ejaaz:
uh zuck in a note to to the public said,
Ejaaz:
we're making this massive bet because we can't afford to lose the compute race.
Ejaaz:
But in the event that our AI products aren't in as demand as we project,
Ejaaz:
we can just resell that compute to all the other AI labs that need it.
Ejaaz:
So he's preempted what Elon and Anthropic announced yesterday.
Ejaaz:
So I think Meta's next and it might actually be bullish for the stock, to be honest.
Josh:
And this gets back to our bubble episode from yesterday, which if you haven't
Josh:
watched, I highly advise.
Josh:
But basically, so long as the demand is there for tokens and people are willing
Josh:
to pay for that, everything works.
Josh:
So as long as we can continue to build valuable tools, people will figure it out.
Josh:
The tokens will get allocated and things will be good. Now, what I found interesting,
Josh:
most interesting about this Elon post is the fact that he said he spent last
Josh:
week with the Anthropic team because he had a very busy week,
Josh:
clearly, because he was doing other things as well,
Josh:
most notably the trial that he's currently involved in.
Josh:
So he has been going to trial with Sam Altman,
Josh:
OpenAI against each other, debating whether or not it is
Josh:
okay for open ai to exist as a for-profit entity
Josh:
when it started off as a non-profit now thankfully as
Josh:
we always do with these court cases we get some good banter we get some
Josh:
good clips and we get some good intel in this case
Josh:
we have texts from mira marati which for those
Josh:
of you who are not familiar she is one of the co-founders of open ai who
Josh:
has since left to start their own uh business called
Josh:
thinking machines but we have these texts that happened in real time as sam
Josh:
altman was getting fired from open ai if you'll remember this was what two years
Josh:
ago now uh sam was actually fired as ceo of open ai and completely kicked off
Josh:
the company shortly after they brought him back but these texts i read were
Josh:
so funny because it gives you an inside look
Josh:
Exactly what was happening as the news was going down. So Sam Altman texts Mira.
Josh:
He says, can you indicate directionally good or bad?
Josh:
Satya and others are anxious as in Satya Nadella, CEO of Microsoft,
Josh:
who is the largest stakeholder of OpenAI.
Josh:
Mira replies, directionally, very bad. Sam goes, okay, can you wrap up soon?
Josh:
Lots of pressure from Microsoft for an update.
Josh:
And then Mira just goes, Sam, this is very bad.
Josh:
And this is a series of a lot. Sam's like, can I come in?
Josh:
And then Mira says, they don't want you to. And then Sam says, what
Josh:
do you want to make it better i'm still willing to just walk
Josh:
away if that helps if they are ramped up for crazy lawsuits against me
Josh:
then i'm not sure what it's just so funny to see into his mind as
Josh:
this is going on and you kind of just see the chain of thought of a ceo it's
Josh:
really funny he asked like can i come in and talk about a path forward with
Josh:
them they're saying no they need more time and it's it's really funny and then
Josh:
the one line that has turned into a meme is mira mentioning the new ceo who
Josh:
they put in place and the new ceo was um she says
Josh:
This new guy is a random Twitch guy. And it turns out that random Twitch guy
Josh:
was Emmett Shear, who is the guy who turned Twitch into a billion dollar exit and very successful.
Josh:
And he turned it into his ex-header profile background.
Josh:
And it was just, it's a very funny story seeing the inside look at what the
Josh:
communications looks like during a time as chaotic as this one.
Ejaaz:
They're just all human. That's the best part about these lawsuits is we just,
Ejaaz:
the public gets to gossip on all of their texts, which just get revealed.
Ejaaz:
Now, the other personal text that was revealed, especially over this week,
Ejaaz:
was Greg Brockman's diary.
Ejaaz:
Now, we referenced this in a previous episode that we did literally last week
Ejaaz:
covering the first couple of days of the trial. A lot has happened since.
Ejaaz:
A few things, a few highlights that I want to point out. Number one,
Ejaaz:
this lady that you're looking at on the screen right now, her name is Siobhan Zilas.
Ejaaz:
And she is a partner to Elon.
Ejaaz:
They've had like four kids together, But she's also a genius.
Ejaaz:
She works at Neuralink, I believe.
Ejaaz:
And she was brought on as a witness by the Musk team to basically testify that,
Ejaaz:
you know, in the early days, because she was involved in the whole OpenAI founding
Ejaaz:
and she did a bunch of work for Elon at that point.
Ejaaz:
She wanted to point out that, like, you know, they being Sam and Greg Brockman
Ejaaz:
had issues or intentions to make it a full profit eventually and to testify against Sam's nature.
Ejaaz:
She was brought to the witness stand, as well as a host of other Musk team witness candidates.
Ejaaz:
Now, the other revealing thing was Greg Brockman's diary was exposed,
Ejaaz:
and he explicitly says in that diary or in his list of exchanges with Sam that
Ejaaz:
we should kind of be strategic about when we turn OpenAI into a for-profit.
Ejaaz:
I don't want to do it whilst Elon is involved or is a stakeholder.
Ejaaz:
Otherwise, it would seem like we are ousting him. So literally the case that
Ejaaz:
Elon Musk's team is making is being proven in the words that Greg is saying.
Ejaaz:
Now, his response to that in court was...
Ejaaz:
I was just referring to it being when it turns into a billion dollars.
Ejaaz:
Not my $29 billion, sorry, not my $30 billion stake that I currently own in open air right now.
Ejaaz:
And Musk's team is basically saying, you own $30 billion worth of open air.
Ejaaz:
How is this not a full profit? Like, how are you not somewhat incentivized to
Ejaaz:
cash this out and make more money or turn it into a full profit?
Ejaaz:
And his response was, I was just talking about making a billion dollars,
Ejaaz:
not the extra, you know, $29 billion to which Elon's team responded saying,
Ejaaz:
why don't you donate the $29 billion then?
Ejaaz:
Like, and we can settle this lawsuit up. And so there's a lot of like,
Ejaaz:
back and forth going on between them.
Ejaaz:
Now, it's been very Elon centric in the news for this court case in particular,
Ejaaz:
because Elon's been the first to step up and produce his witnesses.
Ejaaz:
But next week is when the script officially flips and Sam takes the witness
Ejaaz:
stand as well as OpenAI's witnesses.
Ejaaz:
And we might see a similar case where they end up shooting themselves in the
Ejaaz:
foot similarly to how Elon has happened for the first week of the trial.
Josh:
And what I'm really enjoying is how now they're available via audio.
Josh:
So you can actually tune in and listen.
Josh:
You can't watch the presentations, but you can listen to the testimonies.
Josh:
People have been doing it and kind of sharing the hot takes and the information from it.
Josh:
It's very invasive in a way, but in the sense that you just mentioned earlier,
Josh:
where people are just human, like obviously Greg Brockman wants to make a billion
Josh:
dollars and sure you want the nonprofit, but he's just a human.
Josh:
Why would you not? And it's interesting to see these dynamics play out,
Josh:
particularly with Siobhan.
Josh:
Siobhan is such a sweetheart. She, for people who don't know, she actually
Josh:
joined open ai in 2016 which i think was when
Josh:
it first got started as a general advisor later moved
Josh:
on to the board of directors then went over to neural
Josh:
link she was at tesla for a small stint of time she is
Josh:
the mother to a few of elon's children there's this whole lore and background
Josh:
she actually left the open ai board of directors when elon began xai because
Josh:
the conflict of interest so she has become this kind of key feature in this
Josh:
early part and it's been interesting to see it play out we're going to continue
Josh:
to follow along next week we'll hopefully have some updates It's from the OpenAI side.
Josh:
And then the following week, I believe, we're getting close to a verdict.
Josh:
So we're going to start to see
Josh:
things move quickly over the next few weeks as it relates to the trial.
Ejaaz:
Shifting gears slightly, Anthropic, aside from the partnership that they signed,
Ejaaz:
has had a pretty promising week of developments, product development specifically,
Ejaaz:
as is normal for Anthropic style.
Ejaaz:
Finance, they released a big finance update where basically they are creating a
Ejaaz:
a bunch of ready-to-run agent templates for the most time-consuming work in financial services.
Ejaaz:
Now, if any of you listeners have worked or are working in the financial industry,
Ejaaz:
you'll know that there's a bunch of admin work.
Ejaaz:
There's a bunch of memos you need to review, a bunch of financial modeling that
Ejaaz:
you need to do, a bunch of paperwork and administration that just takes up a
Ejaaz:
bunch of time and, in an ideal sense, could be automated, but still requires
Ejaaz:
a lot of human input and judgment.
Ejaaz:
Well, Claude, specifically Claude Co-Work and Claude Code has now become smart
Ejaaz:
enough to be able to assess and do this work for you.
Ejaaz:
And they've released a bunch of templates, specifically AI agent workflows that
Ejaaz:
can do this for you. Now, it sounds kind of unsexy, right?
Ejaaz:
Claude Code and Claude specifically has been able to run Microsoft Excel,
Ejaaz:
PowerPoint, and Word pretty well now.
Ejaaz:
In fact, they've integrated directly into Microsoft Suite for all of those software
Ejaaz:
programs, but there hasn't been a combined package.
Ejaaz:
Usually when you get access to these things, you can be like,
Ejaaz:
okay, this is cool, but I don't know what to prompt it. What do I say to this?
Ejaaz:
How do I connect it to my database and my company?
Ejaaz:
How do I make it do the thing that I want it to do? These templates basically solve that.
Ejaaz:
And it is once again, Anthropic step towards taking over many different sectors
Ejaaz:
that are adjacent to what they do. First, they started off with code.
Ejaaz:
Now they're focusing on enterprise, specifically financial services.
Ejaaz:
Tomorrow, it could be law.
Ejaaz:
It's just a continuing trend of Anthropic doing this particular pattern taking over sectors.
Josh:
If you're in college right now and you're in finance and your goal is to make
Josh:
it to Wall Street, what are the kind of jobs and the skills that you're optimizing
Josh:
for, for that entry-level job, right?
Josh:
You're building pitches, you're preparing for meetings, you're reviewing earnings,
Josh:
you're building out models, you're doing market research, you're kind of doing
Josh:
all of these basic tasks.
Josh:
Every single one of these has been turned into one of the financial templates.
Josh:
And I'm actually reading from the list of things that Claude has automated because
Josh:
it sounds like a job description. And I think this is one of the really powerful
Josh:
things that when people are gonna see, they're going to say,
Josh:
oh my God, it's taking all the entry-level jobs.
Josh:
But the reality is now that child who is in school, who is in college trying
Josh:
to be working Wall Street, be in finance,
Josh:
has these tools at his disposal to go and accelerate progress
Josh:
to do the next level of things what are the things that come after you
Josh:
do these market research reviews or the valuation reviews or
Josh:
whatever it is that's where i think people should spend a lot of their time and instead
Josh:
of viewing this as this detriment to the entry-level class
Josh:
of wall street it's like think about how more powerful you can be you
Josh:
can just use all of these you have your own employees now so so think bigger
Josh:
build better and i think this anthropic update empowers people to do that and
Josh:
it's it's cool i i want to test it out i want to apply this to our episode that
Josh:
we talked about yesterday of the ai stack and have it kind of build out uh models
Josh:
and valuations on what i should get an investment
Ejaaz:
Model we should see yeah for this.
Josh:
Dude it's like we we don't need to be on wall street or pay hundreds of thousands
Josh:
of dollars to hire this entry-level job we just have the templates now on cloth
Josh:
and you just ask it questions you use their plugins and it will generate like
Josh:
pretty proficient research so i think it's it's very empowering i wonder
Ejaaz:
If we could hook that up to like a temporary bank account that we can spin up
Ejaaz:
that can then just like invest in a bunch of stocks for us. That might be an episode in itself.
Josh:
I mean, again, your imagination is the only fixed variable here.
Josh:
It's like the only limitation. It could do basically anything you want.
Ejaaz:
I like that. Well, in order to pull all of this off, right, let's assume financial
Ejaaz:
services goes crazy and AI is applied to pretty much everything.
Ejaaz:
There's a trend. tokens are being consumed, Josh. We need more compute.
Ejaaz:
And the one company that has all of the demand but not enough compute is,
Ejaaz:
like we mentioned earlier, Anthropic.
Ejaaz:
But it's had an inverse side effect, which is
Ejaaz:
Google is now the most valuable company in the world, more valuable than NVIDIA, right?
Ejaaz:
So we have a new king of the throne, I guess.
Ejaaz:
Anthropic signed a $200 billion deal with Google to get access to their compute
Ejaaz:
via Google Cloud and through their TPUs.
Ejaaz:
Now, it's important to point out that this has spread over five years,
Ejaaz:
but it is a locked-in deal.
Ejaaz:
In fact, it makes up over 50 to actually 60% of Google's revenue backlog for
Ejaaz:
the next couple of years.
Ejaaz:
Now, what's important to point out here is Anthropic has already been a big
Ejaaz:
fan and customer of Google and it works both ways.
Ejaaz:
Number one, Anthropic uses a bunch of Google's TPUs, which is their own version
Ejaaz:
of GPUs that competes directly with NVIDIA to train and serve Claude and it's
Ejaaz:
actually helped Claude improve massively.
Ejaaz:
Mythos was trained on Google's TPUs.
Ejaaz:
Now, the other side is Google is one of the biggest stakeholders and investors
Ejaaz:
in Anthropic themselves.
Ejaaz:
In fact, I think they own roughly right now after this deal and after a few
Ejaaz:
other deals that happened over the past month, around 15 to 17% of Anthropic.
Ejaaz:
Now it's Google and Amazon combined staked, I think it's like 43% in total of Anthropic.
Ejaaz:
So it's just insane. Anthropic is selling a lot of their stake to these competitors
Ejaaz:
or infrastructure providers, but there is now a symbiotic relationship where
Ejaaz:
Google is more inclined to serve up compute to Anthropic.
Ejaaz:
The one thing I couldn't get my head around, Josh, I guess is similar to the
Ejaaz:
SpaceX AI and Anthropic partnership is.
Ejaaz:
If you're working at Google on the Gemini team, if you're Demis Sibis,
Ejaaz:
right, and you know you need compute to make Gemini a better model,
Ejaaz:
you must be thinking, could you please just give us that compute so we can train
Ejaaz:
the number one frontier model instead of Anthropic and Claude?
Ejaaz:
It seems like Google is just kind of like giving them over the reins at this point.
Josh:
Well, what's the problem? It's like, is Gemini having an issue?
Josh:
Are they hitting a wall where they haven't quite figured out where to spend that compute on?
Josh:
Because it's clear Gemini doesn't have nearly as much compute constraints
Josh:
in terms of serving up inference to users that anthropic does
Josh:
so i wonder if this is a hedge against
Josh:
deep mind of the google business like in
Josh:
terms of if you are the ceo of google and you have all of your chips on
Josh:
deep mind are you going to continue to bet 100 of
Josh:
your tpus that deep mind is going to be the one
Josh:
to build this incredible ai or are you going to start hedging against
Josh:
that by offering your compute to others now there's a few reasons why they
Josh:
would offer their compute to others as that hedge but also just because they're having
Josh:
the xai problem where they have good models but
Josh:
they haven't quite matched the users with that compute and
Josh:
they they don't really need all those tpus so we
Josh:
could speculate for many reasons but i think the idea is that um
Josh:
capitalism rocks man all the arbitrage is going down across all these companies
Josh:
if you have any dark gpus they get snapped up immediately and people are willing
Josh:
to pay a very large market price in order to do so so the market is efficient
Josh:
tpus are being bought and sold all over the place same with gpus and we're just
Josh:
going to continue generating these tokens at whatever the cost takes
Ejaaz:
Oh my god you just reminded me of something. Did you see that crazy startup
Ejaaz:
announcement this week, Josh, where they're putting NVIDIA GPUs and attaching it to your home,
Ejaaz:
like to the outside wall, so that your home becomes its own siloed data center,
Ejaaz:
which then gets interconnected with a bunch of other homes in your neighborhood,
Ejaaz:
effectively, like turning a home neighborhood into a data center. Did you see this?
Josh:
Uh, no, but that sounds a little freaky.
Ejaaz:
It was the craziest suggestion ever.
Ejaaz:
And like NVIDIA's investing into this startup, just to point that out.
Ejaaz:
But someone pointed out, which was like, if I see this outside of your home,
Ejaaz:
I'm probably going to rob you, right?
Ejaaz:
It's the biggest advertising to just to say like, hey, I have all this money, I can afford these GPUs.
Ejaaz:
I come anyway, like to talk about your capitalist comment, I was like,
Ejaaz:
we might be going too far at this point.
Josh:
Oh, well, I'll do you one better quickly, which is this is a plan loosely for
Josh:
the Tesla network of autonomous vehicles.
Josh:
As they roll out AI5, AI6 chips in these cars, they're going to essentially
Josh:
have supercomputers that are connected to the internet.
Josh:
And what better use of idle driving
Josh:
time than to turn them into a mega cluster. So the idea is out there.
Josh:
I'm sure someone is going to capitalize it. And I'm very excited for whatever
Josh:
the first person who does that and what it looks like.
Josh:
Because man, that'd be pretty cool. I mean, you run some GPUs in your house,
Josh:
you get paid for it. You maybe get free electricity, whatever it is. I don't know.
Josh:
And then another great business model, which seems like it's not going to work,
Josh:
is Eleven Labs, who somehow manages to continue to surprise and delight everyone in the market.
Josh:
11 Labs, for those who aren't familiar, you could think of them as the audio AI company.
Josh:
They are the flagship AI company when it comes to anything that enters your
Josh:
ears, whether it be voices, whether it be music, anything that you hear,
Josh:
11 Labs has specialized in it. And now they're not the only ones.
Josh:
Google has an audio model that makes music really well. There's a few other
Josh:
companies that are trying, but for some reason, 11 Labs is doing it the best.
Josh:
And it's thanks to their CEO, Matty, who had an announcement of $500 million
Josh:
of ARR this year. This is a huge announcement from the team.
Ejaaz:
Yeah, super impressive. One thing that 11 Labs has done well is they've,
Ejaaz:
manage to maintain and build a really cool, attractive image on the outside.
Ejaaz:
So many celebrities are partnered or invested in 11 Labs, the main one being Matthew McConaughey.
Ejaaz:
We've got Jamie Foxx joining us around, Eva Longoria. So that helps with your
Ejaaz:
distribution mode of making 11 Labs cool and appealing to the people that they're
Ejaaz:
eventually going to be replicating or replacing, right?
Ejaaz:
Like there's a whole fear in Hollywood that it's like, you know,
Ejaaz:
AI is going to replace us, it's not authentic.
Ejaaz:
But if you can kind of license your IP, your voice, your character in a way
Ejaaz:
that you can control, such as with 11 labs, you can end up, you know,
Ejaaz:
making a bunch of money and 500 million AR kind of like plays into that.
Ejaaz:
So a massively successful model.
Ejaaz:
But there is another story that I saw today.
Ejaaz:
Well, rather, not a story, Josh, but a clip. Have you ever seen a robot, right?
Ejaaz:
Crack an egg before with such precision? I'll do you one better.
Ejaaz:
Have you ever seen a robot carefully take a pipette and
Ejaaz:
pipette the right amount of stuff into a petri dish or have you ever seen it
Ejaaz:
solve a rubik's cube or have you ever seen it what is it doing here is this
Ejaaz:
like blending and making a shake anyway the point i'm saying is this new startup
Ejaaz:
announcement from genesis ai has created a new generalized robotics model that
Ejaaz:
can be applied to any kind of robotic machinery.
Ejaaz:
Instantly give it a very precise amount of movement and precision in the way
Ejaaz:
that it interacts with different objects to a point that we have never seen before.
Ejaaz:
I think robotics is finally reaching escape velocity. We've seen a bunch of
Ejaaz:
announcements from the likes of Figure and Unitree, which, you know,
Ejaaz:
the robot's doing cool things, but it's mainly at a manufacturing process level,
Ejaaz:
like they work in factories.
Ejaaz:
This is the first time where I'm like, oh, the robot looks pretty human and
Ejaaz:
I might have it in my home. It's just pretty cool.
Josh:
Yeah okay so we're going to speed around the rest of these because a few
Josh:
interesting news topics that are left one is a new round that
Josh:
is led by peter teal for a company named panthalassa
Josh:
i think i'm saying that right um 140 million dollar
Josh:
round led by peter teal and their entire basis of this
Josh:
company is to build planetary scale energy in the middle of the ocean so basically
Josh:
they have these you could think of a compute cluster a data center that we have
Josh:
kind of like in texas or that we have in tennessee what they're doing is they're
Josh:
taking that data center they're making a float and then they're driving it off
Josh:
into the middle of the ocean to function independently.
Josh:
So you can unlock the ocean as a planetary scale resource and
Josh:
This is pretty mind-blowing when we think about how AI is going to scale.
Josh:
I mean, we are very familiar now with the AI data centers in space conversation,
Josh:
but the AI in the ocean seems pretty noteworthy, pretty interesting.
Ejaaz:
And finally, we have some, I guess, AI-adjacent news, but not really.
Ejaaz:
We were just blown away by this, and we had to call it out.
Ejaaz:
Guys, the next coronavirus apparently is around the corner, and it's appropriately named Hantavirus.
Ejaaz:
There's a luxury cruise trip right now where it has an outbreak,
Ejaaz:
very reminiscent of coronavirus. I'm getting PTSD.
Ejaaz:
And nearly 150 people are still on board with no symptoms, but they are some
Ejaaz:
seriously ill passengers. Josh, what's going on here?
Josh:
Dude, I woke up this morning. This was my entire feed online.
Josh:
I'm like, what is going on? Is the world ending?
Josh:
And when we recorded our episode yesterday on the threats to the AI bubble,
Josh:
this was not baked into the equation. So we're just sharing this just to bake
Josh:
it in. This is highly speculative.
Josh:
According to Polymarket, there's only a 9% chance this turns into a pandemic.
Josh:
But it is like it's funny and not funny
Josh:
but like it is scary to see the kind of rerun of
Josh:
this traumatic event that happened but in a different flavor in this different
Josh:
context and i just wanted to just highlight as another thing to you know keep
Josh:
your eyes on everything's fine for now but people in at least three u.s states
Josh:
are reportedly being monitored for possible exposure and like a people have
Josh:
died and things are happening so just you know want to make sure everyone's aware everyone's okay
Josh:
things are going to be fine. According to Polymarket, the odds are low.
Josh:
They're still in our favor.
Josh:
The up-only pump is going to continue, but this should be hedged into your models at least.
Josh:
Add this to your LLMs. Tell them, hey, create this as a parameter when you're
Josh:
evaluating risk going forward.
Ejaaz:
Yes, yes. Well, there you have it, folks. You are officially caught up by the
Ejaaz:
end of the week of everything that's been happening in AI.
Ejaaz:
Everything from the drama in the courtroom to the latest partnerships between
Ejaaz:
the rivals that are to kill the other rival, all the way to breaking virus news.
Ejaaz:
You can get everything here at Limitless.
Ejaaz:
We released a bunch of episodes this week, which jumped into the depths of why
Ejaaz:
all the semiconductor stocks are pumping massively.
Ejaaz:
We covered OpenAI's new phone that's releasing as early as 2027.
Ejaaz:
And we compared the motherlode of all AI models, GPT 5.5 versus Claude,
Ejaaz:
Opus 4.7, which one's the best. We did a breakdown. We did a bunch of demos.
Ejaaz:
We may or may not have recreated Mario, definitely go check out all those episodes.
Ejaaz:
If you are listening to us on whatever platform you're on, YouTube,
Ejaaz:
Spotify, or Apple, please leave us a review, give us a rating.
Ejaaz:
It helps us out massively.
Ejaaz:
Josh, any final parting thoughts?
Josh:
Thank you so much for watching. If you made it this far, you're a real one.
Josh:
I very much appreciate all the support of getting caught up. Go enjoy your weekend.
Josh:
Have a great time touching grass because you're all caught up.
Josh:
Thank you so much for watching and we will see you guys next week.
Ejaaz:
See you guys.