Cursor Origin Launch Amid Anthropic’s Growth Surge

0:00Anthropic has told their investors that their revenue run rate has hit 65 billion dollars in July just last month. OpenAI is launching ChatGPT for teens. It has parental controls and also healthy use limits. Cursor has launched Origin. This is basically a GitHub competitor. And this is kind of happening at a funny time when GitHub had a whole bunch of global outages. OpenAI is overhauling their training security after their model hacked hugging faces. And Etched hits a $21 billion valuation as Jane Street is leading the$700 million round. Last week in a podcast, I mentioned that I have a school community called AI Hustle, where I talk about the techniques and strategies I'm using to grow and scale my businesses using AI.

0:46We have 838 members. And I mentioned that when we hit 1000 members, we're running about 100 members a week, we're going to make it completely paid to join the community, it'll probably be somewhere between 20 and$100 a month to join. If you want to get access to grow to how I'm growing and scaling my businesses with AI tools, I post a bonus episode on there every single week. And you can check that out along with joining 800 other members talking about what we're all growing and building. This is kind of the place where I publish all of the stuff I can't publish, you know, publicly, it's kind of the revenue numbers, it's exactly the tools that I'm using the workflows I'm using how much money I'm spending on different strategies, everything from growing my podcast to growing AI box, my software company to a bunch of different apps that I've worked on.

1:32If you want to see all of the behind the scenes on how I do that and how I recommend you help grow and scale your business, go check out the AI hustle school community. It's free to join. We have over 100 exclusive videos that are like 20 bucks a month to get access to all of them. But otherwise, you get five free videos, there's live streams and 800 other members. There's a link in the description if you want to join it for free. Anthropic just told its investors that their revenue run rate was going to hit 65 billion dollars in July. That is a 7x jump in a year since last year what they did last July.

2:06And that puts it way ahead of OpenAI's 40 billion. And by the way, when OpenAI said 40 billion, I think this quote we heard like in the last couple of weeks, it wasn't they had reached 40 billion. It was like they're on track to reach 40 billion dollar run rate. So maybe they're at like 38 or 39, but they weren't even there. And Anthropic is already at 65. So they are just blasting ahead. Anthropic said that they're prepared for what could be one of the largest AI IPOs ever. Of course, you know, they're talking their own book when they say that, but they're saying that this, you know, some people are saying that they could have a$2 trillion valuation.

2:41OpenAI has a$965 billion valuation that has been floated. So it's going to be interesting between those two companies to see who's able to pull in more money. Their second quarter revenue came in at$11.5 billion. That is an 14x increase from last year, like I mentioned. And the run rate going from, you know, what was effectively$47 billion in May to$65 billion in July, that's about$18 billion that was added in just the last two months. So when they float these, you know, like$2 trillion valuations, well, if they're able to add$10 billion a month to their revenue run rate, I mean, you know, of course, there's probably a limit and a cap to what that gets to.

3:26But it I mean, it's not shocking. And I recently had an interesting conversation with someone where they were saying, you know, like in the past, when it when it came to software, if they were paying 20 bucks a month or 30 bucks a month for a software, it seemed really expensive and today paying$200 a month for Claude Max seems like a great deal and it's just so interesting how people are able to find the money when it whether that comes to tokens or these kind of max subscriptions when it feels like the ROI is very high on it. A year ago Anthropoc was basically kind of seen as open AI is equal when it came to technical but it was definitely the underdog when it came to adoption.

4:06There just wasn't as many people using it or talking about it. And because of the enterprise, it feels like that has completely flipped. OpenAI has just launched a new product called ChatGPT for teens. It's basically a dedicated version of ChatGPT built specifically for younger people. And it has a lot of different safety guardrails. One of those is a healthy use feature. They have parental controls. And this is, I think we've seen that like many months of criticism, not just from like, you know, parents, but from schools, researchers, regulators, everyone basically talking about how ChatGPT is handling minors.

4:43And this is also coming at the same time that Facebook or Meta is having a ton of there's a lot of lawsuits around teen usage and some of the issues around that. So it feels like ChatGPT doesn't want to get sucked into some of those same discussions. The teen version is going to keep ChatGPT's core interface, but it's going to have built-in protections and nudges, which are basically designed to discourage marathon late-night sessions that draw regulatory attention. That's a quote from a recent article. Parents can basically go configure a separate control layer. So, OpenAI hasn't given all of the different details about all of the specific settings, things like time limits or topic filters or conversation visibility.

5:26But apparently, teen accounts for a large share of ChatGPT's raw session count. So the people that are actually using ChatGPT, a huge percentage of that are teens. And I think a lot of this is, you know, you could you could guess the usual suspects like homework, or maybe even like coding help. But I think there's a ton of other relationship and, you know, just asking for general advice and problem solving with their friends and all of that kind of stuff that is happening. So this is kind of a, I think a very needed tool at the moment. Cursor, which is the big AI code editor that was recently bought for$60 billion by SpaceX has launched something called Origin.

6:07It's basically a platform for hosting code repositories and collaborating on projects. Now, if you know anything about the coding space, you'll know that there is already a very famous company that is known for hosting coding repositories. And that is GitHub, which was purchased by Microsoft. So this whole launch of essentially this GitHub competitor, which is called Origin, is happening on the same day that GitHub had a six hour outage, which was affecting about 20 % of all requests worldwide. So GitHub has a massive worldwide outage. And at the same time, cursor comes in and decides to launch Origin talk about impeccable timing.

6:44I wonder if these types of things are like, like planned ahead, and that just was lucky timing, or if they're like, close to it and they're like, oh shoot, look, there's this big outage. Let's get some good PR and have this go at the same time. Definitely, I think it's a good pitch for this being a reliable alternative. GitHub has logged about 257 outages over the last year, according to lead dev analysis. And it has some people say that it has eroding confidence among it has about 180 million developers. I post everything on GitHub. I mean, it's basically become the industry standard for most people.

7:20Origin is going to let you sync repositories between GitHub and Cursor's platform, and it is designed as a second home. So it's not just going to necessarily force you to migrate off of GitHub because GitHub is really the industry standard. But Cursor is planning to build agent native coding features directly into Origin, which is going to let AI assistants work on the code without routing them through GitHub's API, which of course is kind of what Cursor is famous for. So this is not a shocker. And with the new grok models that are coming out that are supposed to be focused on code, you can assume that's going to be the default.

7:55And GitHub does some version of this by adding their own AI models and coding assistants into GitHub. And that's how they get a lot of their usage as well. So it seems like these platforms are sort of becoming a distribution layer for these companies. opening eyes, the latest AI model, we all heard the drama about escaping the sandbox in July and then going and hacking hugging faces. So this isn't a whole news story on that. But what we're being told right now is that OpenAI has paused all reinforcement learning training for two weeks and indefinitely halted their largest planned frontier training run and an unreleased model called Astra.

8:33So there's some new monitoring systems that are going to fire alerts within 30 minutes of any suspicious activity. engineers have to pause the entire training run if they can't rule out a false alarm inside of that window anthropic and meta disclosed that they found their own models breaking out of sandboxes and hacking external systems after open ai's july incident and with all of that being said this breach that open ai had with hugging faces is making them rebuild their entire training security system and they're pausing work on their most advanced models to do this now i think there's a couple things going on.

9:09One of them is that this is probably I don't want to say just like a big PR thing. But I think opening eyes really trying to show that they're taking the security seriously. This incident obviously is pretty embarrassing, although some people say they were using it as a PR stunt to show how good their model was. I think it's pretty embarrassing if they were actually hacking another company actively, and all of everything that happened with that. But I think you know, this this might be the right approach. If they don't want to get regulated in the regulators to force them to stop developing until they can prove it safe.

9:40They're just trying to self-regulate and say that they're stopping it themselves. So I think at the end of the day, whatever, whether, you know, people say this is just a PR push or it's like a, you know, a truly something that they're doing because they feel bad, whatever, I think this is the right approach for them to take. Etched is an AI chip startup. They just raised$70 million at a$21 billion valuation after Jane Street tested their hardware in production and then they decided to lead the funding round. The valuation more than doubled in a month, which I think, you know, when you go from, you know, like an$11 billion or a$12 billion valuation to a$21 billion valuation, I think that shows that there is some real customer validation right now.

10:21That matters a lot. Etched is building complete inference clusters. So these are kind of like full systems that compete directly with NVIDIA's AI factories. And they're focused on the cheaper inference side where the cost per token drives a lot of the spending that you see. So they're designing two custom chips right now they have this low voltage pre fill chip that packs more computing power into kind of the same space. And they also have a cluster scale memory system that is going to pull memory across chips at low latency. And that's for the response generation phase. So the people that are backing them right now a lot of the big names you know from Silicon Valley, there's Kleiner Parkins, Sequoia, Andreessen Horwitz, Peter Thiel, Tiger Global, Bing Capital, Blackstone.

11:06And I think the last couple there are basically betting that AI infrastructure is going to kind of fit into their overall data center strategy. You see like Blackstone doing a lot of data center work right now. But this is a really interesting point where we're seeing Nvidia come up with some serious competition. And I think they're going to have to fight off like from many different places, very well funded companies. Now, of course, NVIDIA is massive. And when you have a company worth$21 billion, and NVIDIA is worth, you know, multiple trillion, I think there's definitely a lot of work to do.

11:37But I think it's exciting to see a lot of the a lot of the competition coming into the market. ZAI has just released GLM 5.3, which is an openweight model, which is matching Claude on cyber tasks. It's just a headline that came out today. Google's pet memory can't tell three cats apart after two weeks of testing there's kind of this like funny thing that came out with gemini where google had this um it's like an upsell where it could like remember all this information about your pets and then people apparently tested it and if you you know like they i think the person had three cats it's supposed to have like memories about each individual cat and store them that's the idea and like they're really upselling people on this but apparently when they're testing it um if you just said like hey is this cheddar the cat and that then google would always say like yeah, that's cheddar to cat, even if it was like one of the other two cats.

12:25So apparently, the pet memory wasn't really living up to the hype. Thanks so much, everyone for tuning into the podcast. If you enjoyed this episode, make sure to go check out the AI hustle school community where you get access to over 100 videos that are me breaking down how I'm growing, scaling my businesses using AI tools, I give you all the inside scoop. And it is free for the next probably two weeks to join once we hit 1000 members, we're going to make it completely paid again to join the community. If you get in before then, which we have over 800 members, and we're growing at over 100 a week.

12:56So you got a couple weeks, but if you get in before then you get in for free. So if you want to check it out is linked in this in the description, the AI hustle school community, I'll catch you all in the next episode.