OpenAI Offers USA 5% Equity, Anthropic and Samsung Plan Chip

0:00OpenAI is offering the United States a 5 % stake in a sovereign AI wealth fund and Bernie Sanders is pushing for a 50 % tax tax. Cursor's$60 billion SpaceX deal is putting their OpenAI and Anthropic relationship into question, as that's getting a little bit more tricky now that they've been purchased by one of their biggest competitors. Anthropic is currently in talks with Samsung to create a custom AI chip, and Meta is putting their smart glasses behind a MetaOne premium subscription. Will people pay? That is the question. Microsoft has just committed$2.5 billion to Frontier. This is a new AI deployment company.

0:35This is not new. We've seen the same thing from OpenAI and from Anthropic. If you want to use AI to grow and scale your business, I have a free school community called AI Hustle where we have over 400 members and we're all sharing how we're growing and scaling our business using AI tools. My friend Jamie McCauley and I, we post a video every single week on there where we break down how we're using it inside of our own businesses. We share revenue, we share metrics, we share numbers and all of the software we use along the way. If you want to get access to over 150 videos, we have a premium section for$20 a month, but you can get five videos for free and access to the school community and our weekly live streams by going to school.com slash AI hustle.

1:14I'll leave a link in the description to help you grow and scale your business using AI tools. OpenAI is offering to give the United States government and I think really kind of the entire United States, theoretically a 5 % equity stake. This is kind of the same as Alaska. They have an oil wealth division fund. This is parts of some earlier talks that the Trump administration was doing. And right now, this is also sitting right between some big public pressure campaigns we're seeing. We have Senator Bernie Sanders that is, you know, he has a competing plan. He says he would like 50%, a one-time tax on all of the leading AI firms where they just give 50%.

1:49And so I think OpenAI is like happy to offer 5 % when the Bernie Sanders 50 % is the other offer being proposed. Bernie Sanders' proposal would raise about$7 trillion through a one-time 50 % stock tax, which is 50 % of the company. And the proceeds and direct payments would go to healthcare and housing and other, you know, programs that Bernie Sanders deems fit. The Trump administration has separately approached Google and Meta about a very similar equity stake. I think neither of those companies has publicly said that they are going to sign any sort of agreement like that. And I think 70 % of Americans right now oppose AI data centers in the area.

2:2650 % more have concern rather than excitement about AI. So if you look at some of the polling that's going on inside of the country, there is a lot of negative sentiment that goes towards AI. And I think that's what OpenAI and maybe the Trump administration is trying to help. Bernie Sanders wants to just take 50 % of it. We'll see which of these two models plays out in the end. And Cursor was acquired for$60 billion by SpaceX. But, you know, famously, it's two biggest, I guess, suppliers or customers or however you want to call it are OpenAI and Anthropic, right? Cursor uses OpenAI and Anthropic to power their tools or they let developers do that.

3:01And so people are calling into question if this relationship can continue, right? If Cursor was purchased by SpaceX, which is going to have XAI and XAI code running things inside of Cursor, can they keep, you know, a good relationship with OpenAI and Anthropic? We've seen other companies that have grown and been bought out go through very similar challenging relationships. Scale AI was purchased or 50 % of it was purchased by Meta and their CEO was brought on to run Meta AI. And when that happened, some of their biggest customers were Google and OpenAI and both of those companies cut ties with them because of the competition.

3:33Cursor is already training their own next model on SpaceX infrastructure. They have 10 to 20 times more compute than they previously had because SpaceX gave it to them. So obviously Elon Musk is investing in building their own native capabilities. But the precedent for these coding tools specifically, I think, is stronger than just what happened to ScaleAI because WindSurf, another very famous coding tool, was purchased by OpenAI last year. And when that happened, Anthropic cut off their Claude access. So I think there's a lot of precedent. It's very possible that Cursor is going to get their OpenAI or Claude access cut off.

4:06But this one seems a little bit trickier because Cursor really is just synonymous with coding in the industry. I mean, outside of Cloud Code and maybe Codex, like this is the biggest coding tool that exists out there. I would be, you know, shocked if it, you know, if they really did cut it off, because that would be a ton of users that no longer would be, you know, essentially giving free money to OpenAI Anthropic, especially because Cursor has signed up with a lot of enterprise contracts. And actually one really funny turn of events in all of this is that OpenAI's startup fund, they were actually an early investor in Cursor, and they're going to convert their stake into SpaceX stock.

4:38So with all of this acquisition that's going on, Elon Musk and Sam Altman, who both have a lot of beef, OpenAI is going to get a direct financial stake into Cursor's success and also XAI, even though Codex is a direct competitor. So that's kind of funny. So there is a big move happening with Anthropik right now. They're in talks with Samsung to create a custom AI chip. They're joining OpenAI, Google, Amazon, all of them that are trying to basically reduce the reliance on NVIDIA as NVIDIA is, you know, making record sales. Right now, doing all of this is both kind of targeted at costs and supply constraints.

5:13When you make this custom silicone, it's in, you know, when these labs are creating it themselves, it's going to let them optimize their own architectures. And also, they can negotiate leverage against any sort of dominant supplier, right? So NVIDIA has been very dominant for a long time. and in fact when you're trying to go and get gpus or whatnot from nvidia they have a certain amount that they'll allocate to different companies but they're trying to spread it out because the demand is just so high so this is not great because if someone like open ai anthropic google they only can get a maximum amount from nvidia so if they can build their own not only does that uh kind of ease that constraint that supply constraint but also you know maybe they have some better negotiating power look we can build our own for x you know price if you would be able to bring the price of yours down.

5:57So I think it's kind of a long-term play for negotiating power with NVIDIA as well. OpenAI also just unveiled their own custom chip. It's called Jalapeno. They did this last week. They're building that with Broadcom and they're claiming that it's going to offer better performance per watt than any of the other competitors. And I think when you're, you know, when you're building this custom for your software or hardware stack, it's, you know, it makes a lot of sense that they're able to achieve those kinds of efficiencies. So I think Anthropik has seen this and trying to do the same thing. Samsung already manufactures NVIDIA's chips, and they do that for their AI training.

6:28And they're also building a joint AI chip factory in South Korea with NVIDIA right now. So, you know, I think they're kind of at the center of the supply chain. Samsung's working with NVIDIA. So it's kind of a no-brainer for Anthropik to go there as a partner to build out this chip. Anthropik's project, though, is definitely in the early stages. These chips are not quick. They take a very long time to build. and the purpose, the server role, the performance targets, none of that have actually been finalized. So I think you can kind of imagine this is going to be a multi-year development timeline.

6:56I mean, I've been hearing, you know, rumors of OpenAI working on this stuff for many years and it seems like Anthropic is just getting there and realizing this is something that they need to do. In other news, Meta is putting their smart glass features behind a premium subscription. It's kind of interesting, right? Facebook has kind of always been known as the free forever. They just monetize through ads, but they're starting to spin out these new products and they're trying to do a premium subscription models. So if you want to get all of the latest features with their smart glasses, you're going to have to pay a subscription.

7:27That's starting with conversation focus, which is basically going to enhance voice clarity and noisy settings. So I've heard this kind of pitched as like, if you're in a noisy train station and there's a ton of people talking, if you're, if you're talking to someone, their voice is going to get isolated and amplified by the speakers in your headset. so you can actually hear them better. All you have to do is look in their direction and you'll be able to hear, you know, the sound of their voice louder than all of the noisy surroundings. But what's interesting, they do give you some free. They give you three hours a month for free and they give you 15 hours for$10 a month of Meta 1 Premium.

8:01I'm not sure if you turn this on or if it automatically detects and tells you when it runs out. I mean, it's basically usage-based AI like every other platform. It's just interesting how they're going to try to make this seamless and if they're going to just, you know, all of a sudden, and you're halfway through a conversation, everything's being perfectly amplified, and then it cuts out, right? So, I mean, and I don't know, like, how many conversations, if you're having more than 15 hours of conversations in noisy train stations, or maybe on, like, a noisy job site, it'll be interesting to see where this gets rolled out.

8:26This is definitely a big monetization play. It's not kind of a cost recovery one. The feature runs entirely on device, so there's no server cost to meta. So they're just trying to generate revenue from this. I think this shows that AI hardware is going to get a lot of value value that they can extract after their users already have the glasses, which means they can basically sell their glasses at a loss, assuming they have, you know, this conversation focus and probably a bunch of other AI features they'll roll out in the future, especially if it can be computed on device, they're not incurring any extra cost for it, you just pay for it.

8:58And honestly, kind of reminds me of Tesla and their self driving how like the technology is already in the Tesla cars. And if you just pay for it, then all of a sudden it's enabled. Meta's new$299 Meta brand glasses are sold at break even. So they're really trying to grow their adoption. You know, previously, it was about$100 more if you wanted the meta Ray-Bans, but now they're just selling them by themselves. And there is a very razor thin model of, you know, monetization on this. And then basically, the hardware gets cost and they're trying to get the reoccurring software subscriptions to drive all of the revenue.

9:34And they're not the only people doing this because Google is also launching a competing smart glasses this year. They're partnering with Samsung to do that and Warby Parker and Gentle Monster. Google's own inference efficiency gains, I think are going to let them bundle a lot more features than meta is. And they're not going to have as much of aggressive tiering, I don't think. But they're not the only ones doing this. Apple is also having a bunch of their AI features behind a paywall and Google has other ones. Google specifically with their pixel video boost, it's going to require a specific Google one tier on their pixel devices.

10:05And Gemini Live is also behind the Gemini premium. And if you even like with iOS 27 for Apple, they have a bunch of photo editing that is locked in higher iCloud plus plan. So if you want some of the better features, you're going to have to also pay for that. Microsoft is launching a new AI deployment company called Frontier. They're putting$2.5 billion into this. It's going to be its very own unit and they're going to have about 6 ,000 engineers that are going to be going to be directly embedded into different companies. And they're trying to basically deploy AI systems end to end. So this is something that we've seen open AI also spin out like separate companies and get investors in these separate deployment companies.

10:44Anthropic has also done this and they're partnering with a bunch of big players. So it's interesting. It feels like the next step for these labs is they're trying to get more sales and more users in companies. It's to just basically get these engineers and they're, you know, sending them in there for at cost or free or charging them something. And they're going to go and implement all of the Microsoft or all of the opening eye or all of the anthropic systems inside of that company and try to get their usage up as high as possible. There is a huge development deployment race right now with AWS, they announced a rival$1 billion venture just two days earlier.

11:17And I think both of these companies are betting that enterprises need hands on implementation help. So it's not just about, you know, hey, go sign up for open AI and let your team use it. It's like, look, we're gonna give you these engineers that are going to go and actually implement this for you. Just to put that into context, though, with their 6 ,000 engineers, Frontier is about six times larger than Palantir's entire FDE organization when they first IPO'd, and it's about double AWS's announced commitment. So, I mean, this is a huge move for them. They have a bunch of early partners, including the London Stock Exchange Group, Unilever, Lando Lakes, and Accenture.

11:50They have a mix of some of the big data-heavy supply chain, system integrator customers. I mean, Microsoft's massive, so this is not a shocker in any way. But their existing Azure and Microsoft 365 relationships, I think, give them a lot of embedded engineers already inside of most of the Fortune 500 companies. This is a big structural advantage they have over AWS, which is going to have to build this from the ground up. So, yeah, Microsoft has kind of a leg in this from everything they've been doing with Azure. If you guys want to get access to the top 80 different AI models for just$8 a month, go check out AIbox.ai.

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