AI Adoption Trending Down for Large Companies, OpenAI Backs AI Animated Feature Film, China's Smart Glasses Domination | Avi Schiffmann, Sunny Madra, Scott Wu, Ara Kharazian, Zach Lloyd, Alex Cohen, Mati Staniszewski, Daniel Kao

29:04I also think because Friend actually has users, it's kind of the first AI hardware product really out there. You know, the other ones I don't think really started the category. They're only ever like weird, you know, weird use cases. Like no one was ever like truly using those products. And so I don't know. They never really got to take on it. Yeah, they're all like toys, you know. They're all just weird little relics. Yeah, I agree with you. Talk about the long-term economic model for AI companion businesses. Because I imagine that at a certain point, you might have a somewhat small audience of people that you're creating immense value for.

29:45And that always feels like an opportunity for price discrimination. I don't know about small. I don't know. How many people in the world are... How does it play out? I think subscription models that are just based on compute are kind of lame because your value prop is tied to something that you don't control. And like, what if, you know, Google drops the price of compute so much that like, can you really charge that much? So I've been trying to think of like a consistent value prop. And I think what we'll do is life insurance. You know, like we can store like a backup of your friend and like you can pay per month to be able to have that kind of like Apple care for your friend.

30:21I think that will be quite an interesting model, but you could only really do that with like a hardware based front because, you know, that obviously wouldn't work if it was just a website. So I think that'll be a pretty interesting model, honestly. Like imagine if you had a dog and you loved your dog. I think you would pay quite a lot of money to keep that dog, you know, alive forever if you could. And that's the benefit of this new species of it not being organic, right? It's artificial and it could live forever if you pay for it. Okay. Stay with the dog analogy. the dog market has crazy price discrimination people who love their dog can go all the way up to getting a diamond encrusted collar for their dog do you see a world where you do virtual goods and skins and I don't know what skins might not be the right analogy but something where like hey I love my friend I'm having a great time I'm going to get you something special it's a virtual good from the virtual store and it's, you know, zero marginal cost, but still like in the game world.

31:21I think it won't be virtual, but I think it will be physical. Like, you know, I guess you could call them cases, but it would kind of be like clothing for your friend. I think that would be quite popular. But I don't know. I think you'd also be buying it more so for your friend than for you. Or maybe the other way around. I mean, if you think about a dog, I guess people kind of dress up their dogs because of the reflection of their own personality. I do think like the personality and relationship that you have with your friend is kind of like your own status symbol and like it's just a reflection of you.

31:54And so like if you have a bad time with friend, it might it might not be the product. It might just be you. Yeah. Yeah. I'm just thinking about the the XAI on anything. It seems very clear that like you will be buying different clothing for that companion. Yeah. or maybe less clothing for that companion in the future. But that feels like something where whales, a lot of people on the timeline do not like that product. Like the initial reaction has been similar. Very, like a lot of pushback. And, but at the same time, if there are a few people that really like it and they're willing to spend a lot of money, that could have the dynamics of the free-to-play video game market.

32:35Yeah, but I think all of these companies are kind of doomed because once you go porn, you never go back. And they've kind of tainted the image of their companions as mostly just being these sex bots. What about the VHS tape? VHS tape. That started with porn, right? Isn't that the story? Yeah, it did, but it wasn't like a singular company maybe, I guess. Or something like Replica, right? They can't really reverse their image of it being this sex bot. And I think that's kind of an issue that app or web-based companions will have. but if you have something like friend oh great story um if you have something like friend then it's it's kind of a bit more of like this platonic companion that you could just kind of physically have and that's it and uh i don't know whatever we'll see what happens like it's very very clear that in in the prompt that you've written and the craft that you put into shaping the behavior of the friend like you did not go that direction and uh i think that should be applauded honestly Yeah, I mean, look, it vibrates.

33:35You can still try and fuck it if you want it, but I'll leave that up to my customers. Whoa. Anyway, thank you so much for popping on. Yeah, thanks, guys. Good to hear from you, Avi. See ya. Let me tell you about Figma.com. Think bigger, build faster. Figma helps design and development teams build great products together. You can think about it like your friend for design. Jordy, do you have some breaking news? What's going on? You said whoa. What's that? You said whoa. Oh, he was swearing. Oh, okay. Yeah, yeah, yeah. I was trying to find like this. Oh, yeah. Anyway, let's go back to OpenAI. They are developing an AI movie.

34:12So the startup is lending its tools and computing resources. Remember, Avi's making a film as well. Oh, yeah, he is, right? He's making a feature-length film. A motion picture. Oh, we should have gotten the update on that. Anyway, next time. So OpenAI is going to make a feature-length animated movie made largely with AI. And there's some interesting details in here about exactly where they're using AI and where they aren't. So Critters is about forest creatures that go on an adventure after their village is disrupted by a stranger. It's the brainchild of Chad Nelson, a creative specialist at OpenAI.

34:43Sounds like a Chad. Is he making this internally? Yeah. Crazy. Nelson started sketching out characters three years ago while trying to make a short film with what was then OpenAI's new Dolly image generation tool. Now he has teamed up with production companies in Los Angeles and London, aiming to debut a feature-length version of the film at Cannes Film Festival in May. And there has been an AI short film festival that happened in LA. I believe it was put on by Runway or one of the other AI image generator companies. But this is potentially like the first really serious effort in AI-generated feature-length films.

35:19So the team is attempting to make a movie in about nine months instead of the three years it would typically take, said James Richardson. co-founder of the London-based Vertigo Films. Vertigo is producing the film along with Native Foreign, a studio that specializes in using AI, along with traditional visual production tools. So Critters has a budget of less than$30 million, far less than what animated films typically cost. The production team plans to cast human actors for character voices. And that's particularly interesting. We're having the founder of Eleven Labs on the show later. And from my perspective, the question is like, where are we in the uncanny valley?

35:58Like clearly this is open AI either saying, hey, we just haven't done that much work on voice cloning and voice generation to really feel confident about that. Or they think that there's something about the human voice that's still clockable as AI more than the animated film. because the animated creature, you know, you're not comping it to a real human. And so if it looks a little funky, you chalk that up to the design of the character. Yeah. Just like when you watch. When I'm watching an animated film, I'm not obsessing over like, oh, that. That doesn't look real. Or that specific scene wasn't, you know, his leg looks slightly different than that other scene where he was running.

36:39Totally, totally. Yeah, if you watch the original Toy Story, which is pretty much the first big CGI film, And like there are tons of things where you're like, that texture does not look like leather. That texture does not look like cloth. Like that is clearly like pretty rough around the edges. But you're in a fantasy world. And so you just suspend disbelief the whole time. But the voices are very clearly human recorded. And so I think this is a place where they're betting on, hey, it's still worth it to cast human actors there and not go AI voices. They're also going to hire real artists to draw sketches that are fed into OpenAI's tools.

37:15So essentially, instead of needing to keyframe, and this is already a whole process. So they're going to do some traditional animation. There's going to be a lot of traditional stuff. But the sketches, and we can pull up this shot of what they sketched and then what OpenAI rendered. You can see that this is effectively like the artists are working at storyboard level. And then if you scroll down, you'll see what the final image looks like. look that looks like a photo real you know see hollywood level cgi photo real i mean it looks like photo real no i'm kidding it looks it looks at the level of like a what i would expect if they were like toy story 5 is coming out and this is what the character looks like i'd be like yeah okay like they the rendering looks good the shadows are in the right places for this fantastical character um so open ai can say what its tools do all day long but it's much more impactful if someone does it, says Chad Nelson.

38:08There's a much better case study. That's a much better case study than me building a demo. Entertainment companies, including Disney and Netflix, are experimenting with AI tools for a variety of production, UX and marketing work. But many have been wary of a wholesale embrace, in part because they fear upsetting actors and writers whose guilds have fought. Yeah, remember, I think it was last year when all the protests were happening in LA, the guilds were just fighting to just have a basically a total ban on AI. Yeah. Yeah. And, uh, I mean, it's a tough business. Like the CGI world, those businesses have never been very profitable.

38:46I remember there was this very controversial moment during Ang Lee's acceptance speech for, uh, life of pie where the VFX studio had created a fantastic photoreal rendering of a tiger that had jumped around on this boat the whole time. It's a beautiful movie, looks fantastic. But I believe he forgot to thank the VFX studio, the VFX team, and then the VFX company went out of business, even though they had won the Oscar. Like they'd done the best job possible. But the economics of the business were so rough because it's perfectly competitive and then basically all the Hollywood studios go out and they say, okay, the budget for this movie is$30 million.

39:34That's what we're going to sign up for. And then they just give them more and more revisions until they max out. And so it's very, very thin profit margins. And so a lot of the business has moved international. There aren't that many big VFX houses in the United States. And so it's all just a very complicated business. So Warner Brothers Discovery has actually filed a suit against Mid Journey and Disney and Comcast Universal also has sued Mid Journey for making copies of their copyrighted properties. The script for Critters was written by some of the members of the team that wrote Paddington in Peru.

40:07Interesting though, so making copies of their copyrighted properties, this maybe sounds like different than the Anthropik lawsuit with the writers where it was like Anthropik was using Libgen and not paying. In this case, this might be that Midjourney actually bought the videos but then made copies of them during the training process. But I don't know how much we should read into that. I mean, at least the Warner Brothers Discovery lawsuit just filed last week. So I imagine they haven't even gone through Discovery. No pun intended. If lawyers do lose their jobs to AI, they are certainly going to cash out on the way out.

40:47Yes, for sure. On these copyright lawsuits. The script for Critters was written by some members of the team that wrote Paddington in Peru. Again, interesting. Did you see Paddington? I saw Paddington in Peru. Really? It wasn't as good as the first or second Paddingtons. I would put the first Paddington. Is it an adult movie? No, it's a kid's movie. It's out with my son. It's fantastic. You made it sound like you didn't just watch it. You studied it. Oh, I have sat myself down and watched Paddington on multiple occasions. It's one of the greatest films of all time. Okay. Paddington is actually, I think it's at the top of the IMDB ratings.

41:23It's like one of the greatest movies of all time. No way. I'm so out of the loop. No, Paddington is incredible. I highly, highly recommend Paddington. It's a great movie. Anyway. I get on it. OpenAI is betting that if Critters is successful, it will show that AI can deliver content strong enough for the big screen and accelerate Hollywood's adoption of the technology. Nelson said OpenAI's tools can also lower the cost of entry, allowing more people to make creative content. Now, the question... I mean, on this note, what I've been saying is right now there's sort of a certain amount of budget every year provided by various groups to fund films.

41:59And if you just reduce the cost, even by 60%, 70%, it's like, well, we could potentially just get way, way, way more films, right? And potentially, it doesn't necessarily suck out the profits, too, in the industry, right? because it's just potentially a budget of$100 million that would have gone to one film, now it goes to three different groups that are each making their own film. So it could end up being a win. Yeah, I mean, I think the dynamic here is that it is extremely telling that they are still using humans to come up with a concept and come up with a script and do the voice acting. And it's not an attempt at one-shotting an entire film using AI from start to finish.

42:44The prompt is not make a movie for$30 million that makes more than$30 million. Like that is the prompt that you give a studio executive. Like when you go, that is the job of a real studio executive is just make money. Don't make mistakes. Don't make mistakes, right? And then they have to go out and find a script and they have to find an artist and they have to find a post-production house and distribution and marketing campaign. And they have to make a bunch of really great entrepreneurial decisions to actually return the capital that's invested. Now, with this, I see AI as being used as a tool, much like the original Pixar Render Man was used as a tool to create Toy Story.

43:26Or Cinema 4D or Houdini are used to generate hordes of battles during Game of Thrones, et cetera. And so this should wind up being just another option in the tool chest for - Goldrock is also saying, you know, you take that same budget and if less has to go into production, then you can put more into marketing and events surrounding it, activations, et cetera. I mean, I would imagine that the long-term effect of this should be something similar to what cloud computing did for startups. So before it was like raise$10 million and make sure that you have, not a data center, but like you have a closet with racks of servers because if you want to build a website, you need to buy a server.

44:12And then it became sign up for the free tier of AWS or Google. And so what wound up happening? Well, we got a lot more startups, but that didn't mean that everyone made money. There was a lot. There were a ton of failures, but we got a lot more shots on goal. And because the bar was lower, we got a very steep power law outcome, but we get more value overall. And I would imagine that that's what happens with movies is that anyone can create a movie. Doesn't mean that everyone's going to create a movie that makes money or is great or loved. There's going to be a lot of slop that people don't like at all.

44:45Just like, think about all the startups that are out there that don't do well. But they're able to actually start. When you watch a regular movie, I've done this a couple of times. I think you've done it quite a bit more. And it's bad. Yeah. It really is. You guys went to all this effort. Totally. All these months, shooting all this content to make a bad movie. And how many times is that because, oh, oh, the camera wasn't working or something or like, oh, no, it's usually the narrative delivery. Exactly. It's like it's the it's the art of bringing everything together. And that's something that I think is going to stick in human world for a long time.

45:22Yeah, because, yeah, I mean, there's a bunch of reasons of how complex it is, how hard it is to build reinforcement learning on top of it. But it's very hard to build this reinforcement learning environment around just make a profitable film. That takes years. It's a huge investment. It's very hard to reverse engineer. Anyway, let me tell you about Vanta. Automate compliance, manage risk, and prove trust continuously. Vanta's trust management platform takes the manual work out of your security and compliance process and replaces it with continuous automation, whether you're pursuing your first framework or managing a complex platform.

45:55And now would be a great time to talk about Fall, the generative media platform for developers. We've had Gorkum, the CEO, on the show multiple times. This company is growing at an absolutely ridiculous rate. It just crossed a$100 million run rate. I believe it was a week or two ago. And Fall works with a bunch of different companies, Adobe, Canva. What? Everyone wants this eagle sound effect. The eagle effect. Apparently that's for Turbo Puffer, but I think everyone... We can use it for everyone. It's just so good. But anyways, if you want to leverage all of these new image, video, audio models through a single API, you can go over to fall.ai and check it out.

46:39And happy to introduce you to the team if you're interested as well. But this company is an absolute monster, and we're pumped to be partnering with them. We're very excited. that's our latest sponsor of the show. They make it possible. Anyway, let's go through some timeline. Lululemon is now the worst performer of the S &P 500 year to date. I didn't even realize they were in the S &P 500. That is an accomplishment. They're in the league. The stock is down

47:1356%. Oh, the trade desk is down 55%. The trade desk was a company that people were really praising for just like elegant and like incredible. There was some narrative violation around the trade desk. I need to dig into that. But it was something like they hadn't raised any money or something like that was why they were so. Yeah. I mean, it's interesting that Nike. Gartner is down 50%. Gartner is in the trough. Gartner is in the trough. You created the hype cycle. Gartner. All right. Let's keep it together. What comes after the trough of disillusionment? The plateau of productivity. No, no. It's not the plateau of productivity.

47:57After the trough of disillusionment is the slope of enlightenment. Okay, okay, okay. And so don't worry. I'm just saying the slope of enlightenment. It's ahead. It's ahead of you. It's only up from here. It's only up from here. If the hype cycle holds true, it's only up from here. These are some crazy. It's interesting. I think Nike and Lululemon, you know, both Nike peaked in 2021. They obviously went heavy into e-commerce. And Lululemon, you know, I don't necessarily, they always had a pretty big e-com presence. But I think this is a case of just getting eaten alive by Aloe and Fori and all these sort of new entrants that are going after that same market of like kind of non-athlete sort of wellness, right?

48:47And yeah, this tells me they just basically like took the market for athleisure and just divided it up amongst themselves. Yep. People are also dunking on them for not reading the room and kind of staying in that like Jaguar rebrand world and not pivoting fast enough to the new Sydney Sweeney American Eagle. style campaign of Americana. And so I think if they want to bring it back, there's one easy solution. They should hire Lulu. Do you start going direct? I think that's the move. Something there. They should also go to graphite.dev. Code review for the age of AI. Graphite helps teams on GitHub.

49:31Ship higher quality software faster. Update that website, Lulu Lemon. Get on Graphite. Well, you know, you remember Chip used to go direct, and that didn't go so well. Who's Chip? Chip Wilson, founder of Lululemon. Oh, I didn't know that. No. He had a really famous interview where people were saying, like, you know, Lululemon doesn't fit everyone. And he said, like, my clothes aren't for everyone, basically, implying that, like, he didn't make clothing for people that weren't fit. Oh, interesting. And then there was a backlash to that. And then they became kind of, you know, more inclusive. Is that the idea of like the cycle?

50:11Because now they're getting dragged, at least in the crazy X comments, about being like too inclusive or something like that. Not Sydney Sweeney, American Eagle coded enough. Anyway, that's, yeah, that's wild. Yeah, founder says brand is not for everybody. You know what's funny is that there's a fantastic video of the, it's not the founder of Lamborghini, but it's the head of sales of Lamborghini when the Lamborghini Countach came out in the 80s. And he's doing a TV interview and the interviewer says, who is this car for? Is this car for everyone? And he says, no, this car is not for everyone.

50:51This Lamborghini Countach is a V12, right? Isn't it a V12? I think so. And it's incredibly tight. Doug DeMuro, I think he can't drive it with his shoes. He has to take his shoes off because it doesn't fit. And it's this like insanely loud, insanely engaging, crazy experience. He says, this is for someone who has an extra car that travels behind them with their luggage. And he says some other wild stuff about like who the Lamborghini Countach buyer is. And so truly, I don't think that there's anything necessarily wrong with having a small market or defining the market and excluding people from the market like Lamborghini Countach, like the Countach.

51:34It's not for everyone. I think that's fine. I think that can make it more desirable. But you have to price accordingly and you have to actually deliver at that level. And so Lululemon might not have ever been the Countach of clothing. Yeah, it's different. This is before GLP-1s, right? This is Lululemon. Theoretically, would have a buyer that is buying the products to get fit and get healthy. And so for the founder to be like, you know, it's different too. I think they were a public company by that time already. Kind of an incredible story of the company overall. Anyway, good luck to them. Hopefully they build back.

52:12Hopefully they ride the hype cycle alongside Gartner into the plateau of productivity. Pretty funny. there's a video here of Putin's advisor, Kobiakov, went out on record and is saying the U.S. is going to shove debt into stable coins and to sort of try to wipe out the system. Russia is just accused of the U.S. of using crypto to wipe out its$35 trillion debt. And Rex says that's exactly what they're going to do. Yeah, they're going to socialize. Yeah, so good Alexander went pretty viral. I think it was on Friday or Saturday, going on this 20-minute rant talking about stablecoins and gambling and hyper-capitalism.

53:03And yet, obviously, the dollar is a way to export our debt. Yep. And stablecoins can potentially accelerate that. It's potentially a situation where it's sort of like net positive for the world. if people can access a more stable currency, they can participate in our inflationary... It's less positive than it is right now because it's basically like you've been getting global stability and open trade routes sort of for free without having to participate in that debt that pays for it. No, I mean, by nature of needing to transact and settle trade and dollars, you already were. Sure. Sure. Financing.

53:49Financing. Yeah. Yeah. But on the margin, more people will be transacting in dollars and therefore more people will be so will be socializing. And holding the dollar because it's, you know, I mean, and this is a question we've brought this up with with a number of people when talking about stable coins is at what point does, you know, foreign government just say like, no, we don't want stable. You know, we don't want our citizens to hold stables. Right. We want you to hold our our money. Yeah, it seems like a crazy, crazy move to be like, yeah, I'll just give up my own currency and dollarize. But we've been in the game of dollarizing for a while.

54:22We like dollarizing. It's not our first dollarization. Don't go dollar for dollar with us. Don't try it. This is interesting. Unitree Robotics is filing for an IPO at a$7 billion valuation. Annual revenue of$140 million, way, way less than you thought. Yeah. They have 65 % of the robot, 65 % of their revenue is from robot dogs. Let's give it up for robot dogs. And that's 70 % of the global market. Who's got the other 30 %? So 65%, they must be doing$100 million of robot dogs, and the total market of robot dogs globally must be like$130 million? I guess the dogs are barking, John. But that's like not a lot of robot dogs.

55:06I mean, still the main thing, this going out at$7 billion is not good for a certain paying 50x revenue. Well, I'm just saying. I know what you're saying. You know what I'm saying. But even so. There's people out there in the humanoid space that don't want comps out there. Yes, yes, yes. No comps, please. Keep the comps out of the market. Yes, yeah. But is this going to IPO? Is this going to IPO in America? That would be crazy, but who knows? So while he looks that up, 30 % is from the humanoid robot. 5 % is from the sales of sensors, actuators, and controllers. It's happening, says Nick. You'll love to see it.

55:53I love how you can take any news and make it seem like it's so over or so back. The IPO is going to be on a Chinese stock exchange. Well, if you want to trade on the American stock exchanges, like on American Patriot, go to public.com, investing for those who take it seriously. They got industry-leading yields. They're multi-asset investing in the trusted by millions. We hung out with the public team this morning. They made us a cake. It's very nice of them. He said, congrats for nothing. Get back to work. It was good. It was very funny. And it was revealed in this hilarious way of showing up to breakfast with this massive box that clearly has a cake in it.

56:39But he's like, I'm not going to tell you what's in here. And I'm like, that's obviously a cake, dude. But he's like, no, no, no. I've got to reveal it once you're all sitting down. So he's sitting down. And he opens it up. Congratulations. It is a cake. But then I was surprised because the joke on top is very funny. Yeah, the joke on top. I enjoyed that. Anyway, Elizabeth Holmes has been on an absolute tear. Poster in residence. Poster in prison. So Elizabeth Holmes posted some, what would I tell the 19-year-old girl who was getting ready to drop out of Stanford to build Theranos, doing some thought leadership posting.

57:12And Gonto says, since when are we taking advice from somebody who went to jail? There should be a community note in the post. And Elizabeth Holmes says, let's listen to a growth exec who has 8K followers. Brutal. Ray showed. And Rohit says, beginning to like Elizabeth Holmes. Very funny. I don't have a problem with taking advice from people who went to jail. They probably learned a lot. I believe in restorative justice, although she is still in jail. Yeah, I think this is going to be the new playbook of when a public figure turns the entire world against them. Wait. Hire a ghostwriter. And then hire a ghostwriter and start posting.

57:52Start posting for sure. But, I mean, you have to be huge. Elizabeth Holmes has a movie and a documentary and a book. Screlly. Screlly did this. Yeah, but Screlly didn't even get the treatment that Holmes did. I would say that Elizabeth Holmes is more of a household name than Screlly. I think, yeah, she is. But he's also, I mean, he's just so good on the mic. Yeah. He definitely got people. I actually, I DM'd Elizabeth Holmes, invited her on the show via a phone interview. Are we sure that it's actually her? No, we're not. It's probably her husband. Well, yeah. it's her handwriting every post maybe no yeah i mean reacting too quickly i mean there's probably a little bit of of her in here for sure uh but uh but i i do think it's mostly the uh the husband who's on the outside but i can't confirm that that's pure conspiracy theory um but uh uh we remember when we were talking about elizabeth holmes like months ago and i was saying like I'm ready to hear her out, but I want her to talk about biology specifically.

58:58I want her to, that is the path of redemption, is give me some banger takes about what's going on in GLP-1s, what's going on in mRNA, what's going on in DNA analysis and sequencing. Like, show me that you are truly generational on the cutting edge, because I feel like Martin Screlly's been doing that. He was like, I was at a hedge fund. I went to jail. now I'm coming out what am I giving you I'm giving you hedge fund like takes and my takes a lot of people agree that they're pretty good and so Screli has somewhat redeemed himself in the sense that like he might have done something wrong and wound up in prison and gotten out and and served his time but the key thing is is that like his initial claim of like I'm a finance guy is sort of continuing to ring true but none of Elizabeth Holmes posts thus far scream like wow really differentiated view in bio.

59:54Like there is alpha in understanding the bio world if I listen to her. Like yeah, she's in prison, but clearly she's a great biologist. Clearly she's a great scientist. She messed up on the finance side, defrauded investors, went to jail, but I need to listen to her because she understands where the puck is going in terms of biology or science. And I'm not seeing that yet, so I'm withholding my endorsement of her. Anyway, if you want to be on the cutting edge of science or data analysis, go to Julius. What analysis do you want to run? Chat with your data and get expert-level insights in seconds.

1:00:32They're loved by over 2 million users and trusted by individuals. In Business Insider this morning, looking like an absolute chat. The photos, they sent a great photographer. The aura farm, them. Really, really good. It worked. See it. So Dart says, I moved to a new place two years ago, high-risk area, job-related, not exactly by choice. So I made a bunch of these signs and put them up everywhere. Two years in, and my house has pretty much been the only one in the entire neighborhood that hasn't been broken into. And it says, protected by Palantir home security. That, of course, is fake, but, you know, he put it up there.

1:01:09I think this whole thing is just a funny post. I don't think that the average home intruder knows what Palantir is. But still, very funny post. I don't know. Maybe they're part of the retail army. Maybe. They're like, oh, for that reason, I'm not invading you. Maybe they're breaking that during it to buy more Palantir shares because they're so bullish. Oh, they're breaking into other houses, but then they see that as a sign of respect. Yeah. Say, I'm so long Palantir that I won't break into this house that's protecting my family. Yeah, they just believe in the company's... But that makes sense.

1:01:41Totally possible. Kylie Robinson hit the timeline. She fired back with a quote tweet, and she says, listening to this, LOL, I did not go into the review expecting to hate it. Also was aware I'm not the target audience for an always listening device. And she highlights, she puts us in the true zone. Highlights a part of the article. She says, I'll admit I'm not the target audience. I imagine the person who'd want a friend is someone who is likely not a journalist who may have more social occasions where they can support an always listening pendant. Mm-hmm. and uh anyways so i feel like journalists should be perfect for for for an always on listing device because every time you talk to them, they're like, do you mind if I record this?

1:02:22They're like, let me pull out my phone and record this. You should just have an always-on recording device is like the perfect device for the journalist. It's in fact like the new notebook for the journalist. Yeah, and you could just say, let me know if you ever want to go off the record. Exactly. By default, you're on the record and I'm recording. I think that long-term, we might see massive product market fit with Fred. They should do an enterprise product for journalists. Yeah. So the journalist gets it, wears it, and as soon as you interact with the journalist, you know that you're being recorded and everything you say is on the record.

1:03:00Speaking of journalists, Julia Hornstein has a little deep dive on Raul and some other young founders. They've long been icons, she says. She wrote about how because of AI hype and ease of vibe coding, teens and 20-somethings are flooding Silicon Valley to build startups instead of attending college or securing big tech jobs. Founders told me that they'd rather start a company than go to college because AI gives you a PhD in your pocket, as Jake Adler said. Love, Jake. Because of mass layoffs, Roy Lee thinks the worst thing someone who wants a stable future could do is work in big tech. Interesting.

1:03:36Roy Lee coming in with a hot take, as he's known to do. So college's dad says zero interest rates. He graduated from university in 2019. Marvin Von Hagen, 25. I feel like I was just texting with Marvin. Is that right? Marvin. I think I got to text him back. No, literally I do. Yeah, he texted me. He said, hey, we got an intro. He's releasing a short film. We got to play this. poke. We got to get him on the show. Anyway, 30 % of the Y Combinator batch were college students or new grads. So nice little trend piece with some beautiful, beautiful photography. So shout out to everyone that was featured in Silicon Valley's Youthquake in the age of AI.

1:04:26Founders aren't waiting to grow up, says Business Insider. Well, Manaitis says, basically everyone underestimates how big of a role office selection plays in the outcomes of companies and their cultures i recently had the chance to spend 24 hours at lego headquarters did you well did you enter and then stay the night did you not get the memo about the great locket you're not just supposed to be going and hanging out at the lego headquarters going going kid mode this is a dream come true for any child yeah but you know that's what they say about will you know but i'm just i'm He's still kind of hung up 24 hours at Lego headquarters.

1:05:02Did he enter at like 1 p.m.? It's bait. It's so good. It's the best. Bait. Bait. It's bait. But I do like, you can see they have that Lego on the actual side of the building. We have a fish. I feel like we had a fish at some point for bait. Yes. So Lego is a relatively - More Lego lore. Lego is a relatively strange company for the toy industry. Even at$10 billion in annualized revenue, the company has never taken a dollar of equity financing. is still family owned and controlled since 1932. The company is based in Billund, Denmark, a farm town of just 7 ,000. And where they're founded is still where they are.

1:05:39That's pretty remarkable. The company and the Christensen family, through their holding company, K-I-R-K-B-I, functionally own the town of Billund from the airport majority control to a large majority of the real estate and the hotel tourist infrastructure. this allows them to make remarkably long-term decisions like 24-hour visits for random american entrepreneurs let's pull an all-nighter together we're thinking long-term no this is maybe oh you want to pick my brain maybe let's think long-term lego the lego execs are participating in the great lock-in maybe said come visit but you gotta be locked in with us 24 hours yes pulling all nighter we gotta get more more info here you ever were you a big lego land kid growing up not a big lego land kid lego land i'm gonna date myself built uh like i remember when it was built and i remember when it like opened and i was like there on like one of the first days but only went like once or twice um but very cool support lego land big big into legos generally yeah huge huge stepping on them um yes one of the worst pains imagine um while some of this investment has been company related much of it has not been the family has been actively involved in turning a blighted racetrack into a new neighborhood and improving civic and school infrastructure.

1:06:56This kind of long-term investment in a place is only really possible with a large balance sheet and patient private control. This was a rare thing before the last 10 years, but many tech companies could now fit this mold. That's interesting. My prediction is we will see many more company towns emerge. So, I mean, this has kind of happened. I feel like Menlo Park is very nice and Cupertino is very nice And then a lot of that's just a benefit of, you know, Apple sets up a massive headquarters there. All the employees are wealthy. And so the town, the taxes, everything flows from that. Yeah, the California Forever Project could turn into this, right, if you get a single tenant in there that's doing, like, shipbuilding.

1:07:36Yeah, but you need a company to be the backbone of the flywheel. And that's certainly what's going on in Denmark. The results of this investment are clear. Even on a Saturday, many employees were walking, biking to the office with families in tow. The town felt vibrant with a mix of visitors, employees, and locals. So now we're finding out that he spent 24 hours there on a Saturday? So whether he'd get there Friday night and didn't leave until Saturday night? Or he slept there on Saturday night and woke up on Sunday and left? I'm so confused. So he says, it seems like a remarkably pleasant place to live and work that eliminates many of the tradeoffs of highly urban office settings.

1:08:17as we see the emergence of dozen late-stage privates with Fortress balance sheets. It's hard to imagine the company town not returning. I like it a lot. It's a good take. I would like to do a TV company town. I would love that. I would also love a Turbo Puffer company town. Play that sound. Search every byte. Serverless vector and full-text search. Built from first principles on object storage. Fast, 10x cheaper, and extremely scalable. Get started for free. Be like linear. Be like cursor. Head over to Turbo Puffer. It's time to puff. So, Scott Besson, he is... He's been on a roll. He's got a little bit of a penchant for curse words.

1:08:59I don't normally like curse words. I kind of like when he does it. Yeah, but it won Geiger Capital over. Geiger Capital says, I'd follow Scott Besson into war. And Scott Besson said, why the F are you talking to the president about me? F you, I'll punch you in your effing face. And Geiger Capital says, that's my treasury secretary. Anyway, just a funny quote. I don't know how that got into political. Try this line. If you have a co-worker, you heard them talking to management in a not-so-kind way about you, try this out. Try this out in the water cooler. Keep the president from talking about you.

1:09:43Keep ChatGPT talking about you. Go to Profound. Get your brand mentioned in ChatGPT. Reach millions of new consumers who are using AI to discover new products and brands. Be like MongoDB, Indeed, Mercury, Ramp, Zapier, Workable, U.S. Bank. And I saw a fun post in the timeline. Somebody asked, what's the best way to get your brand mentioned in ChatGPT? And the answer was Profound. And so clearly, Profound has been dogfooding. They're dogfooding. So preview of what might happen at Meta Connect. Jukan has a screenshot here from Semicon Sam. I was considering releasing it as a paid post, but after much thought, I decided to make it free.

1:10:24I hope you all enjoy my analysis on smart glasses, why smart glasses are already dominated by China, why even Apple and Meta have no choice but to cooperate. rate. So this article says, recently there was an article like this, Meta will unveil new smart glasses called Hypernova at its annual Connect event on September 17th and 18th. The prevailing view was that unlike the previously released Ray-Ban Metaglasses, the Hypernova coming this time would have a display and its price would be high above$1 ,400. However, contrary to expectations, according to a report by Mark Gurman, absolute dog, it will launch at$800.

1:11:02so uh german uh kind of runs through it um it's still higher than the meta ray bands that are 200 to 400 but uh should be a little should be still pricey but lower than people uh initially expected so the question trying to be answered by this substack article is why is that i wanted to find out the reason uh i i want to find the reason in competition with chinese manufacturers About a month ago, Alibaba released smart glasses called Quark Vision. But the price is 1 ,999 yuan, about 280 bucks. That's pretty cheap. Sorry, I'm not laughing at the price. I'm laughing at the name. Quark Vision. You ever want Quark?

1:11:42You ever want Quark Vision? It's time for Quark Vision. I don't know. Maybe it sounds better in Chinese. So from Meta's perspective, with China putting products out that cheaply, they might have thought, how can we manage to charge more than$1 ,400 and decided to set a lower price? I believe smart glasses will become a truly essential device. This writer is smart glasses pilled. I'm also optimistic about the growth in smart glasses generally, VR, AR. I think we're about to see the churn rates drop and the adoption rates increase. Let me give an example. Unlike smartphones, smart glasses are much more convenient to operate.

1:12:20You don't need to move your fingers. You can operate them through humanity's most concise action, your voice. For instance, if you're trying to use AI features like Gemini Live on a smartphone, you would have to open the camera app with your fingers, scan things yourself with AI glasses. Camera on the device is effectively seeing what I'm seeing. So there's the advantage that I don't have to issue instructions one by one. And so he lays out kind of a bull case for the smart glasses. This is the industry's classification of smart glasses by generation. Gen 1, which is the current generation, doesn't have a display.

1:12:55AI features are supported through a smartphone integration. Gen 2, which is next year, supposedly, will be equipped with a low resolution display. And then Gen 3 has a high end display, full color, 2K resolution, AI and spatial computing, like what we saw in the Apple Vision Pro. So starting from, so he says, that's why I believe the second generation is the point where we can start calling them smart glasses. From the second generation onward, displays provide visual information, allowing users to access much richer data through the glasses. To draw an analogy, up to the first generation, they were like PDAs, but starting from the second generation, they can be called smartphones.

1:13:33So very bullish on the growth here. And I think we can... Was there anything else in here that you wanted to run through? Yeah, I just thought the pricing information was interesting. they could try to run the same playbook of just selling the same playbook that they ran with like dji yeah right of just like selling below the actual cost to produce the devices to just try to get adoption yeah but um we'll see it is i haven't i haven't seen that much reporting on the bill of materials for the oculus quest 3 but i don't believe that they were selling it at a massive discount. I do think it was probably profitable on a per unit basis, but then they were just spending so much on R &D to actually build the next versions.

1:14:23It would be very interesting to see what happens if they released something at the level of Apple Vision Pro, but at the price point of the Quest 4 or something like that. I'm excited about the smart glasses, but I'm honestly more excited about just a an apple vision pro level image and screen being pulled into something with the quests ergonomics so there's some interesting um so basically brightness and power efficiency are the most important things uh when it comes to displays and the reason that apple's vision pro can crush it on brightness is because the field of view is actually blocked so there's no outside light coming in.

1:15:07And so they can deliver this, like, ultra-crisp image. And what Meta and Quark are doing is, like, you can just see the real world and see a display on it. Yep. So the sort of quality of the image will lag behind that just, like, ultra-high fidelity that you're getting with the Vision Pro. Yeah. But obviously it's an insanely real trade-off. Yeah. I mean, the physics of light state that, like, it's an additive process. So if you're outside and it's bright and you want to project a black cube into that world, that's basically impossible from a physics perspective. Because the bright light's going to shine through.

1:15:47You're adding light on top of it. And there's not really anything that you can do to make the black cube show up on the beach in Santa Monica if you're just walking around. So there are some serious headwinds there. That's why Palmer Luckey predicted that the end result of augmented reality would be reprojection, which is what the Apple Vision Pro does. Take a camera. Because then if you take a camera and you play that on the inside of the display, you can turn down the brightness all around the black cube. And then you can put the black cube over there and you can block out the light that's behind it.

1:16:17But occlusion with dark objects in augmented reality scenarios is basically physically impossible. I don't know. Seems very difficult. Anyway, whatever. If you're planning to launch an augmented reality headset, you've got to get on Linear. Linear is a purpose-built tool for planning and building products. Meet the system for model and software development, streamlined issues, projects, and product roadmaps. Jira Ticket says Houston is like if the AWS console. We've got a little shot of Tyler there. What's going on? Yeah. How are you doing, Tyler? What's new in your world? I was just clapping.

1:16:48I was just so excited about the Linear. Okay. Yeah. Give us an update. Good to see you, Tyler. What is burning up the timeline in your world? What was your favorite post from this weekend? Okay, let me find a really good one. I'll get back. Okay. In the meantime, let's talk about Houston, the city in Texas. Houston is like if the AWS console was a city, says Jira tickets. And Kathleen Turner says, dang, why? And Jira tickets says, I don't know. I've never been to Houston. Like, I don't even know what this means. I don't know why this wound up in the show or in the run of show. I think this wound up in the run of show like multiple times for some reason.

1:17:26Nice. But did you put it in? I put it in. I thought it was funny. Why? What appealed to you about this? Do you think it's an apt analogy? Have you ever used the AWS console? Do you know how confusing it is? Yes. Okay. Yes. So is that the take? It's just saying it's really confusing. It's not the best designed city. Okay. Yeah. I get that. It's also just funny. A lot of horsepower under the hood. It's a good post, sir. It's a good post. It's a good post. Shout out Jared Tickets. ASML. Yeah. This was cool. ASML decided to become a VC, according to Wasteland Capital, to boost European tech sovereignty and burn$1.5 billion in shareholder funds into withdrawal.

1:18:03Hey! We don't know that they burned it. They YOLO'd it in. Lithography bun plus third-tier LLM meat with the topping of EU bureaucrat Derrige's meat? I don't know that word. It's a word that I can't pronounce and you can't pronounce, meaning that it might be a new type of AI hamburger. Anyways, people are not - State control of economic matters. So people are not excited about ASML's investment. They did about three quarters of Mistral's$2 billion Series C. Mistral is getting valued at just north of Cognition, the latest round. And anyways, people are basically saying ASML was potentially worried about uh, about having, you know, being like, uh, too much of like a private company, you know, and just like focusing on generating profits and they have to like, you know, redistribute some of that wealth to the, to the broader, uh, to the broader market.

1:19:05Indeed. Uh, what did, uh, but anyways, it might be, I mean, if Mistral, uh, I think, uh, clearly, uh, it's France's national champion and effectively Europe, one of Europe's, um, champions. And, I'm sure they can figure out a way to create value and hopefully, hopefully ASML shareholders get a nice, nice return. Doug O 'Loughlin over Fabricated Knowledge said, this is very simple, national champion. Don't overthink it. There isn't a 4D chess move. This is checkers. So I actually don't know exactly what that, like what the interpretation of that thesis is. Like national champion just means like you must be supported at all costs, right?

1:19:48And so it doesn't necessarily matter if it pencils out on some DCF right now. It's like we need to continue to support that. We have the capital, so let's continue to support our national champion. Makes sense. You want to talk about EchoStar? Yeah, so SpaceX is buying EchoStar's AWS4 and HBlock Spectrum licenses for about$17 billion. That's a lot of dough. It's up to$8.5 billion in cash and$8.5 billion in SpaceX stock, which is crazy. The big takeaway, the deal allows SpaceX to expand its direct-to-device mobile services more independently beyond its existing T-Mobile partnership. I'm going to pull this up.

1:20:30EchoStar, so this is an industry that's heavily regulated. and you would think that in a more free market, SpaceX could just say, we're going to start building, we're going to just create this mobile internet service. Nope. And it doesn't work like that. But there are specific licenses. You don't want traffic on the same spectrum, same band of the spectrum. Yep. Shares of Echo Star rose as much as 26 % on Monday. to a record high of$84. Its bonds were the biggest gainers in the junk bond market. Yeah, apparently EchoStar was potentially veering towards bankruptcy. Like they hadn't been paying.

1:21:16Wait, wait. So what did EchoStar's stock do? Up 26%. Because now it's basically a SpaceX holdco. Because they have$8.5 billion in SpaceX stock. What's their market cap? So it should trade at like$10 trillion. Potentially. What's their market cap? $22 billion. Whoa. Wow. This is a treasury. We were just talking about this. So we were talking about this morning. There's all these crypto treasuries. Yep. And then you would think, like, why doesn't somebody create, like, the Elon, like, treasury company? Yep. And the reason for that is, like, if you start adding shares, then you become a registered investment advisor.

1:21:51And there's all this compliance. Much harder than just putting, like, digital assets or tokens in a company. These are just like, I have USD. I have Bitcoin. They're kind of the same thing. I'm putting my treasury wherever. And then MicroStrategy, now just strategy, wound up just having a ton of Bitcoin. And then it became this way to invest in Bitcoin just with a public ticker. But EchoStar will now be the most concentrated way to get allocation into SpaceX, right? That's so crazy. That is crazy. Basically, if you bought it Friday, basically the value of the business then was just like SpaceX plus the cash they got from this deal.

1:22:29Like the SpaceX stock. Yeah. So the company is sitting on this license and they just sold it, flipped it into SpaceX stock. Crazy. That is a very, I wonder if they. Ed Ludlow, the bigger takeaway is I think we got a SpaceX meme stock on our hands soon. This is crazy. Oh, you're saying this is your take. Well, yeah. So Ed Ludlow, his big takeaway, which I agree with, I think you are correct. The big takeaway is the deal allows SpaceX to expand its direct-to-device mobile services more independently beyond needing to partner with T-Mobile. They can go direct and cut out T-Mobile. Extremely bullish for SpaceX direct-to-device.

1:23:08Obviously, that's going to be a huge business. And they're really making a lot of inroads there with partnerships and now owning the actual license. But the other big takeaway is that now there is a company where, what, 25 % of their market cap is directly indexed to SpaceX. And it's just a public ticker. Like, that is a crazy development. A bunch of cash. They're also burning money. They lost$300 million last quarter. Well, hopefully they'll make it all back on Elon Co. Who knows? Anyway, numeral HQ. Yeah, the only other thing, let me, yeah, you go for this. Sales tax on autopilot. Spend less than five minutes per month on sales tax compliance while you're looking that up.

1:23:52Tyler, what do you find for me? All right, so I think my favorite post was Will Brown. Oh, yeah. He said he was at a family wedding in Spain. This is fantastic. And his uncle brought a printed out semi-analysis ClusterMax list of the, you know, the neoclouds. He was asking why Prime Intellect is at the bottom. hey made the list that's great at a family wedding in Spain uncle brought a print out of the semi-analysis cluster mass list and asked why we're underperforming explaining the difference between marketplaces and data centers and how we're not just selling compute we're also advancing RL infra I love it so one small problem with the meme stock potential of Echo stock.

1:24:39Break it down. They've got$29 billion of debt that they have been basically defaulting on. Maybe they'll be selling the SpaceX stock off slowly to pay for the debt. Honestly, just hold. Just hold. Just make the minimum payments on the interest and just hold on and just hope Elon gets to mark. Wait, so you're telling me that the narrative around this company is that it's a levered bet on SpaceX in the public markets the ticker that anyone can trade. And the company's already levered up. Yes, you can think of it. They don't even need to lever up further. They're already levered. Yeah, yeah, yeah.

1:25:18Wow. They are extremely levered. Extremely levered. Except, unfortunately, they didn't spend, they didn't raise that to buy SpaceX. They already had that. They already had it. Yeah, they didn't need to. They didn't even need to. Because they already had it. They don't need it. Oh, there are two steps ahead. Most people are like, I'm going to become a treasury company, then I'll lever up to buy more Bitcoin, and my company will act as like a 2x levered Bitcoin. Yeah. No, this company's already levered up. So basically,

1:25:47SpaceX just needs to be a$1.7 trillion company and then they'll be able to just pay off the debt. There we go. They'll be able to sell and pay off the debt. Seems doable. And then - Never bet against Elon. Bro, never bet against Elon. Come on. Anyway, Fin.ai, the number one AI agent for customer service, number one in performance meds, number one in competitive big ops, number one ranking on G2. There is so much more in the timeline. We are going to have guests joining us in 10 minutes, but let's run through some more stories. Oh, the other story, OpenAI projected its cash burn this year through 2029 will rise even higher than previously thought to a total of 115 billion.

1:26:31That's about 80 billion higher than the company previously expected. Andrew Cote says, now that's what I call a nonprofit. The numbers are big, but I'm so inured to big numbers at this point. I'm like, yeah, that seems fine. I don't know. That's my take is that that seems completely appropriate for the opportunity. You're building the next big, massive consumer company. Everyone loves it. You have strong product market fit. all your competitors are kind of bowing out more or less like the hyperscalers are bowing out i would say that they're bowing out of consumer yeah i don't know nano banana is ripping you know banana is ripping yeah aj uh aj uh mid midha at uh a16z is that his name uh he had a good post about this today uh talking about the revenge of the empire or something like that was that in here Where was it?

1:27:29Ajni. I have him in here somewhere. I got to get a better tab management situation going. Okay, here we go. Ajni Midha at Andreessen Horowitz says, The Empire Strikes Back and shows ChatGPT versus Gemini. ChatGPT interest over time on... Oh, well, I mean, you're going to trust Google on how Gemini is doing in search results? Also, there was other reporting that showed that agents that are crawling the web are totally throwing. Oh, interesting. No, I was completely kidding about Google cooking the results here. Obviously, they wouldn't do that. But Nano Banana launches and Gemini is definitely mooning.

1:28:15Again, I see them as two separate use cases. Like, when I think about the Nano Banana product, I don't see that as a direct competitor to GPT-5 and, like, the router to just, like, answer questions, do things for you. Like, Nano Banana is incredible. Gemini clearly has a huge advantage in video and image generation. That's why we're excited to partner with Fall because they are a vendor for that and will help you get set up with it. But most businesses don't necessarily care about. They're not looking to pick a single model. If you're a company like Canva, which uses fall, they're leveraging in multiple different models at any given point.

1:29:06So if I think about like what does Nano Banana mean? I feel like it is a it is an incredible product that will be baked into YouTube. You'll be able to generate thumbnails within the YouTube studio. There will be products that people use to generate imagery, and that will go out everywhere. If you're in an email and you need to generate imagery, it'll be baked into Gemini, into all the products. But this particular spike in the chart reads to me as if a Studio Ghibli moment, where it's like you get a ton of attention and people come in. But what is driving ChatGPT use right now? It's not Ghibli's.

1:29:43That's not why people are coming to it. The image generation is definitely used, but I would say it's probably less than like 10 % of queries, probably less than 2 % of queries, honestly. Just based on my personal use, most of the time I'm looking for a fact, I'm looking for a breakdown, I'm looking for some analysis, go search the web, put something together, and then every once in a while I go to it and I'm like, okay, now I need to do an image generation thing. And so I don't necessarily fully agree with this take that the empire is striking back. I mean, it is a strike. They're striking back.

1:30:13But has the empire won? We don't know. Good question. Anyway, question for you. Isaac says, I don't know anything about watches, but I'm looking for something respectable to wear on my wrist, something that a watch nerd might go nice at, but won't break the bank. Any recommendations? What you got, Jordy? What does not breaking the bank mean? Richard Mill? Yeah. Stay away from the FP Jorns and the Peace Uniques, because that's going to break the bank. But nice RM, a racing machine on the wrist. watch like a like an fp jorn that that could work too yeah you're gonna want to stay away from the graph diamond hallucination because that's up in the 55 million range but a paul newman daytona that's going to be something the watch nerds gonna go yeah uh fortunately this is good news in the watch world trump was invited to the rolex suite at the u.s open men's final and he got to hang out with the Rolex CEO, Jean-Frédéric Dufour.

1:31:13And the timeline is expecting some potential resolution or relief from the Swiss tariffs to come this week. Obviously, tariffs impacting at least secondary watch prices right away. They've been kind of up across the board. So good if you have a bunch of watches you want to sell bad if you're in the market. Well, if you're looking for a watch, go to getbezel.com. Your bezel concierge is available now to source you. Any watch on the planet, seriously, any watch. You can chat with the bezel concierge, and you can ask them that exact prompt. You can say, what's a watch that would make watch nerds say nice but not break the bank?

1:31:50They might recommend, I don't know, GMT Master, Batman, Rolex, something like that. That might be more reasonable. Anyway, Steve Jobs' office versus Tim Cook's office. I think this says a lot about why Apple feels different under Cook, says Sherman McCoy. But Sherman got put in the truth zone because that famous picture of Steve Jobs' office where it's all messy and Tim Cook's office is all nice and clean. Well, guess what? Let's see Tim Cook's home office. Yeah, let's see Tim Cook's home office. It could be ten times messier. Imagine he's just stacked up. He's just the biggest horror. Yeah, ten times the books.

1:32:26Just stacks of papers everywhere. So the picture on the left, it is Steve Jobs, but that's his home office. And Tim Cook is, of course, at the work office. But it's still probably something true there. Obviously, Tim Cook is the operations mastermind. Steve Jobs is more of the creative genius. We got an old email here. February 13, 2005, Sergey Brin sent an email to his executive management group. Read the subject line. Subject, irate call from Steve Jobs. And then he just types this out. clearly just like stream of consciousness. So I got a call from Steve Jobs today who is very agitated. It was about us recruiting from the Safari team.

1:33:11He was sure we were building a browser and we're trying to get the Safari team. He made various veiled threats too, though I'm not inclined to hold them against him too much, as he seemed beside himself, as Eric would say. So I just wanted to check what our status was in various respects and what we want to do about partners, friendly companies, and recruiting. On the browser I know and told him that we have Mozilla people working here. largely on Firefox. I did not mention we may release an enhanced version, but I am not sure we are going to yet. On recruiting, I've heard recently of one candidate out of Apple that had browser expertise, so I guess he would be on Safari.

1:33:45I mentioned this to Steve, and he told me he was cool with us hiring anyone who came to us but was angry about systematic solicitation. I don't know if there's some systematic Safari recruiting effort that we have. Anyhow, I told him we are not building a browser and that, to my knowledge, we were not systematically going after the Safari team in particular, and that we should talk about various opportunities. I also said I would follow up and check on our recruiting strategies with regard to Apple and Safari. He seems soothed. So please update me on what you know here and on what you think we should have as a policy.

1:34:16On another note, it seems silly to have both Firefox and Safari. Perhaps there is some unification strategy that we can get to these two to pursue. Combined, they certainly have enough market share to drive webmasters. And they would, in fact,

1:34:33the phrase in here systematic solicitation it's like that defines the modern tech era so perfectly like systematic so there was a time when ceos would call each other and be like hey if if my people come to you that's cool but just don't don't create a list of everyone who works for my company and then try and go poach all of them simultaneously in one weekend while we're on vacation don't call them personally text them don't have don't invite them to dinner invite them on your yacht offer them a hundred million dollars don't go wave surfing with them in lake tahoe if they don't accept a hundred offer 200 please don't do that there was but it is interesting i mean three and a half years later they launched google chrome wow so it is interesting in in this email yeah like you would think now given what we know about like platforms and operating systems and data, you would think that even at this point, Google was thinking we want to own the browser.

1:35:31But, you know, and obviously, I'm sure when he wrote this, he wasn't expecting it to one day be public. Yeah, we got to dig more into the browser wars. We were talking this weekend about perplexity. Are they over? I don't know. I think there's going to be another run at it for sure, and we're going to see some developments. Anyway, if you're trying to poach engineers from big tech, you know the best way to do it. Billboard on the 101. Go to adquick.com. Out-of-home advertising made easy and measurable. Say goodbye to the headaches of out-of-home advertising. Only Adquick combines technology, out-of-home expertise, and data to enable efficiency.

1:36:06And just find the billboards and just surround your enemies with recruiting messaging. Yeah, or pull an Avi Schiffman and buy 300 billboards. He said the largest. That cannot be true. That cannot be true. It could be true on a pure, it seems impossible, but on a pure volume basis, like just like volume of inventory in a single buy. Yeah, maybe for like a single creative or something, like a single image is the biggest. But like when Apple launched the new iPhone, they put billboards in every single city. And it's huge. And I see them everywhere. It definitely is. And movies. When movies come out, there's billboards everywhere.

1:36:44It's the most YOLO marketing move that potentially of the year. It caught my eye. And it made me think, I gotta buy one, we gotta demo it. We gotta make Tyler live with it for a week and see what happens to him in the guinea pig. The question is, could you use that money a lot more efficiently buying ads on Meta? It's a consumer product, it's probably easy to figure out who's the target buyer. You can get the halo effect of out-of-home advertising by buying strategic inventory. I do think that there is something special about having friend.com. So when you go to friend.com, you just see the pendant, and that's it.

1:37:28And then you scroll down, and you see this Apple-like experience. It says friend, and then you scroll down, and it has these questions. And so if it was tryfriend.ai, and you put that on a billboard, I don't think that converts nearly as well as friend.com. The domain is the one thing that I think in the fullness, because if the company doesn't work in two years, we can just wind the company down. And you have to look at the domain as like, does it increase your probability of success? I think for something like this, like an always-on listening device, it's already people aren't going to trust it.

1:38:04So domains can deliver trust. And then does it just increase conversion rate of people just caring enough to, not to mention just like seeing, it's a great domain for out-of-home advertising, period. Yeah, no, no, I truly think it unlocks out-of-home advertising in a completely different way that try friend.ai would just convert way less than friend.com, I want to know what's on that website. I'm just going to type in friend.com and then I'm on the flow. So I'm actually surprisingly bullish on a big, big campaign, a big out-of-home campaign for friend.com. Good luck to them. Well, we have our first guest of the show.

1:38:44We have Sonny from Grok. Infrastructure for inference. Purpose built for speed, quality, cost, and scale. Welcome to the show. Thank you for joining the show today. How are you doing? Welcome to the stream. I'm doing good, guys. I'm actually at the All In Summit. Oh, no way. Yeah, exactly. So I'm just in a green room here. So excited to be on with you guys. Did you already talk? Or is that coming up? No, no, no. I'm not talking. I'm just kind of like... Oh, but still in the green room. Still in the green room. Okay. I had to get a favor so I could come on with you guys. Nice. I appreciate it. Yeah.

1:39:17Take us through the last week. I believe you were at the dinner. What was the vibe like? Just walk us through your experience. Yeah. I mean, really special. Like, look, first things first, I would say, you know, when you think about the president, what he's really done is he understands that he needs to enable technologists. to basically do their thing. And I would, you know, summarize it in the following ways. One, you know, he brought everyone in and said, look, if you have some kind of issue, there's a team of people that you can work with, including David Sachs or just himself to get things unblocked, right?

1:39:56And there's many issues that companies deal with, whether, you know, comes to export control or, you know, tariffs that are being put on or fines that are being put on our companies. And so he's really making himself available to help our companies, you know, broadly. I think he's also understood that, you know, AI and technology is the forefront of where many of, you know, the innovations for the country will happen, including huge infrastructure projects, right? And so you heard that when the press came in and when they're asking, you know, the questions, how much each company is spending, you know, looking at, you know, trillions of dollars of spend, which has downstream impact in manufacturing, construction, and other places.

1:40:31And so, you know, that's something he's excited about. And I think lastly, we really want America to win, and he wants America to win. And so he's basically saying, look, I've got your back. I'm supporting you here, and I'm basically putting this on the forefront. So that's the high level. I would say the experience, just diving into it, was really special. It started with a small gathering on the Rose Garden Club outside. It was raining. We were supposed to have a dinner there, but it got moved. and then a bunch of us got you know all of us I got moved into the Roosevelt room which is connected into the into the the Oval Office and then you know he took his time basically meeting with each one of us quickly getting everybody gathered together and just kind of understanding concerns that folks had and you know basically us getting an experience in Oval Office we all got a challenge coin we got a pen which is really cool like a little you know a memento a very special memento.

1:41:29And then we all went to the East Wing for a dinner and a private conversation followed by a little bit of the press came in, which you guys would have seen the videos and then conversation afterwards. And he really took the time to address everybody that was at the table and make sure that if anybody had a concern, they had a chance to surface it there. What was top of mind for you specifically? I think like, look, the American AI stack, that's really important. That's something that was published at the AI Action Summit, a couple, basically middle of July. And so what we're really focused on is basically making sure that we help the government understand what that stack looks like.

1:42:11And so, I don't know if your producers can pull it up, but we published something a few weeks ago, maybe two weeks ago now, that basically is our version of the stack. And we think it's been positively received by the government and the administration. in terms of framework. We're not saying this is everything. We're not saying it's comprehensive. We're not saying it can't change. But really, the Department of Commerce today is out there trying to understand what it should look like. And this is one view of the stack. And really, what does that mean? Let's kind of double click into that. The stack is important because if the US is going to keep export controls so that we can control highly sensitive technology getting into the wrong hands, you need to look at it from a stack perspective.

1:42:56A chip alone is not something enough that you should basically put a control on. So you got to look at all the pieces. And on the flip side, if you are going to be a partner of the US and you're going to want to buy US assets, you want to make sure that you have the whole list of things. Because if you don't have all the pieces, you're going to end up with paperweights, really heavy and expensive ones. So you need to have pieces along. And that's what we sort of took a stab at when we put that out there. Speaking of the AI stack, can you help me understand at a more precise level how you're positioning the company or at least telling the story around the company in terms of where you fit in the stack?

1:43:34Because we saw last week OpenAI is doing a deal for custom silicon with Broadcom and then semi-analysis came out with this article saying that basically Anthropic and AWS and Tranium are like super tightly co-designed now. Google, obviously with the TPU. And then, and then I was, I was chatting with some open AI people. They're like, you know, we actually talked to NVIDIA pretty closely. Like we're like, like, I don't know if co-design is the right word, but like we give input and, you know, the next generation of NVIDIA GPUs will be very capable of running ChatGPT. And so how do you position where you fit into the American AI stack?

1:44:19Do you guys mind if I pull up a quick screen share? Yeah, you can, but we are live. So anything you share will be shared. So do not share your private key to those crypto holdings you got. There you go. Thank you. That was smooth. Yeah, yeah, yeah. So the way to think about your question exactly - And could you zoom in a little bit? Is that possible? Or maybe we can on our side? Yeah, maybe you have to do it on your side. I don't know if I can. I can try. You know, really where that's called out at the bottom is, so just to answer your question first, and I'll try to zoom in without showing my touch screen.

1:44:53I think we can pull it up on our side. Yeah. So really at the bottom there, which is, you know, this is infrastructure and the bottom is compute. So in the compute bucket right at the bottom here, you see NVIDIA, Grok, AMD, Qualcomm, Broadcom. Like I said, this is not comprehensive. You know, Broadcom is helping companies like Google and OpenAI and others make their chips, right? And so the idea, you know, to answer your question is that the models come higher up, But you should be able to look at the stack and say, if you picked a piece from each one of these different categories that we've highlighted, you can have an end-to-end AI solution to either train a model, to either inference a model, or to build an application on top of it.

1:45:33So those are the three things that this stack should enable. And you may not need all the pieces depending on what you're doing. If you're trying to train a model, clearly you don't need databases. But these are all the pieces that you need to basically be able to do something in AI. Got it. Fascinating. Yeah, this, this, thank you for putting this together. This document is massive, and deserves its own like deep dive. We'll have to dig in deeper. Yeah, we can do another one if you guys ever want to. Yeah, of course. What's the update on the projects in Europe? And then what do you guys have cooking stateside?

1:46:11Yeah, you know, we've launched close to 14 different data centers this year, including one that we've announced publicly. Yeah, there we go. Mad decent there.

1:46:24Yeah, we've launched 14 this year and we're continuing to expand our footprint. Europe is really fascinating. You guys saw the announcement with ASML and their investment into Mistral. So it looks like they're waking up and starting to basically put resources behind these things. So I think that's great. You know, our focus primarily in that region of the world is centered around a data center and arrangement that we have in Saudi Arabia. And so that's in partnership with Humane slash Ramco Digital, where it's the largest inference cluster in the Middle East, and we believe all the way into Europe.

1:47:02And so we serve, you know, sort of most of Asia, Europe, and the Middle East from that data center. And our goal right now, what we're cooking up is just an expansion of that, right? So we're working to expand that cluster, add more capabilities and basically more capacity to that cluster because it's been well received and well consumed. Very cool. I know you have a hard out, so we'll let you go. But last question for me on that Mistral ASML deal, it kind of jumped out to me because it feels like they're almost like jumping a layer of the stack. I typically think about ASML sells to TSMC, which sells to NVIDIA and some other folks, and then the application layer and the foundation model labs sit on top of that.

1:47:43So you're kind of a couple steps away. Do you have any insight into what they were thinking? A lot of people were just saying, hey, it's a national champion. They want to support, and they're willing to kind of go outside the typical business that they do to make an investment. And or maybe they just see it in purely financial terms. But it seems like if it was purely financial, they would have there's a bunch of other things that they could invest in. You know, they're not a hedge fund. Yeah. Right. Yeah. Yeah. No, totally. I think the points you talked about are valid. I would add one thing to it, which is if you actually go back and listen to the launch of XAI, what Elon talks about is like, you know, companies and his companies primarily using AI to better themselves.

1:48:25Right. And I think if you're someone like ASML, if you want a close partner, doing that with Mastral is quite smart. Right. How can they improve the tools that they make so that we can get better chips, better stuff in that layer of the stack? And so I would say that's something that is getting underappreciated today. But more and more companies are doing that. Right. Getting more advanced AI so that they can basically do that. And from their perspective, they'll never be able to do that on their own. to your point, they're too far down. So the partnership there, maybe we'll get better machines, maybe we'll get better power consumption from those things, maybe we'll get, you know, better lithography from them.

1:49:01So that would be something that, that I would, you know, if I was building a business outside of, you know, Grok today, that's something I would focus on is, how can I really not just use this for the high level use cases we've seen, but really have it, you know, find new materials for me, look at, you know, different aspects of physics. And those are really hard problems that you need to be very closely embedded with a model maker, like a foundational model maker, if you really want to pull those off. Fascinating. Well, we will continue to monitor the situation as always, and thank you so much for hopping on.

1:49:32Enjoy the rest of the conference. And we will talk to you soon. Have a great rest of your day. Thanks for having me, guys. Cheers. Let me tell you about Adio, customer relationship magic. Adio is the AI native CRM that builds, scales, and grows your company to the next level. You can get started for free with Adio. next up we have cognition one thing one thing i wanted to highlight quickly because we didn't get to it earlier t-mobile at &t and verizon all dropped pretty meaningfully on the echo star news yeah that makes sense because elon's basically going around t-mobile won't need to go through them uh because they'll own their own piece of the spectrum t-mobile's market cap um 20 billion Close.

1:50:16How much? $273 billion. $273 billion? Wow. Beast. Okay. How much space do the stock they own? So Verizon. How much space do the stock they own? Yeah, good question. No, Verizon is$182 billion. I didn't realize T-Mobile was bigger than Verizon. AT &T is$206 billion, and Verizon is bigger than all of them. Wow, it's almost like owning a monopoly is valuable. Yeah. Seriously, once you get those licenses, it just prints. Yeah, so it's so crazy that EchoStar was on the verge of bankruptcy, not making debt payments, and they're just like, yola. And they weren't even leveraging the spectrum that they had.

1:50:55No. It's crazy. Fascinating. You got a post from FIO. I'd rather talk about this Andrew McCallop story. So Project Bob has launched. You can go to dashboard.projectbob.xyz. Christian Kyle says, this is easily the coolest thing happening in the world today. hobbyist launching an autonomous drone ship hoping to circumnavigate the globe. Andrew, of course, works at Varda Industries on manufacturing in space, but in his free time, he tried to replicate the LK-99 superconductor. I was there on the night that he tried to get the rocks to float. It was very, very interesting. He's just a fantastic scientist and builder, and I guess in his free time, he went and built a boat that drives itself, talks to Starlink and a few other networks and wired it all up and who knows maybe uh maybe it turns into a to a business that's the nature of of launching side projects if you're really good at them eventually people say like well i'd like to buy some sir and maybe uh maybe the dod will come to him or the dow as they're called i'm so i'm so excited for the the drone era of exploration right just being able to send something off and and follow it along live virtually is so cool i always like i i want andrew to take this and properly send Antarctica, apparently, and just see how thrilling would it be to have nothing for days and weeks and months on end, and then somebody just comes up on the video and just takes it out.

1:52:27What are they doing down there? Anyway, we have our next guest, Scott Wu, Cognition, joining the stream. Welcome to the stream. How are you doing, Scott? How's it going? It's good. Good to see you again. It's been a little bit. Great to see you. I think I recognize that sweatshirt. Is that a Founders Fund sweatshirt? It is the Founders Fund sweatshirt. It is the Founders Fund sweatshirt. It felt like the right thing to do today. You know, we interviewed Alex Karp last week, and he referred to it as the Founders Fund because back in the day, it was actually called the Founders Fund, and they dropped the the, which I think is funny.

1:52:59Anyway, we're not talking about Founders Fund. We're talking about your company. Give us the news. What's the latest? Yeah. So we just closed a big fundraise led by Founders Fund, actually. So we kind of are talking about Founders Fund. Of course. We closed a raise at a$10.2 billion valuation. Let's go. Super grateful for all the support that we've had. Congratulations. Yeah, busy month and a half for us since the Windsurf news. I mean, it's been a crazy couple months for Code and for us, especially getting to see the two products mesh together has been a lot of fun. Yeah. Where is the growth coming from?

1:53:41I remember seeing a presentation at Microsoft Build, and they were talking about the value that Devin can bring to replatforming. And that was super concrete for me because I can just imagine having an enterprise application written in.NET and wanting to move it to Python, and that being a lot of work to write the test suite and move everything over, and just being able to unleash a ton of AI agents and coding agents seemed like incredible value and an incredibly high leverage use of technology. Is that a big piece of the business? What else is changing? What else is growing in the last year? Yeah, I think that's right.

1:54:19A big part of what we do is I kind of describe it as going and taking on engineering toil. And so that includes all these replatforms and migrations that folks have to do. That includes version upgrades, testing, documentation, issue triaging, all these various things. And the reality is that that's a lot of what takes up time for software engineers today. I don't think it's anyone's favorite thing to do, but it is a lot of the time for people. And so that's often what we see. And we've been working with a pretty big range of companies all the way from the smallest startups all the way to some of the biggest enterprises in the world.

1:54:54Yeah, because Devin is in GA. So any startup can sign up for it, correct? But then obviously you have a very talented team that goes and sells into very large enterprises as well. Yeah, what's it been? Yeah, WindSurf was known for their GTM team. What's it been like just like bolting on or really integrating a team like that? You guys, yeah, I'm sure it's really added a lot of firepower. It's been incredible, honestly. I mean, even I think just the two products themselves, because, you know, as we were saying last time, like a lot of the there's kind of these two categories of product experiences that devs are using today.

1:55:34Right. There's the IDEs and the agents. And even just being able to have both and kind of serve that all in one solution with Windsurf and Devin has been amazing for us. And so we've seen a bunch of I mean, Windsurf and Devin were both already each individually growing. But in the last month and a half, it's grown even faster. I want to go into a little bit of a debunk-a-thon, hit you with some data points, and you can give me a lot more context. So the first one that we saw, this is all from extremely reliable sources, usually random screenshots that I see on X. But one was that when a developer uses an AI coding tool, they generate twice as much code, but 10 times as many security vulnerabilities.

1:56:18Do you have anything to add? Does that sound right? Does that sound wildly off? What can we do to stop creating security vulnerabilities? Yeah, there's a lot of studies out there. Studies have different sample sizes and they have different ways that they measure these things. For us, with a lot of the projects that we deliver, because if somebody is doing a whole replatform or something, that is a concrete project that you're setting up a team to do and kind of accounting for how many hours you need to do. with the enterprise customers that we work with, we typically see speedups of around eight to 15 X in terms of how long it takes.

1:56:53Yeah, so basically they're doing in one hour of an engineer's time using Devon what would typically take eight hours without Devon. Wow. And I think that the main thing that you really have to call out here is like, it really depends on the use case, right? And so I think for a lot of these kind of like repetitive, tedious things that frankly, the engineers don't want to do anyway, like that's where tools like Devon work really, really, really well. You know, Devin is not necessarily, you know, you could use Devin to try and kind of like be the ideator with you or something like that. But it's obviously it's not today what we've optimized Devin for.

1:57:24And so that's that's perhaps what folks are seeing in some of these different coding products. Yeah. And then on the security vulnerability side, do you need a, you know, OK, you have Devin, but do you need like Bill, like a different agent that just is watching for security? In traditional software development, you might have, like, yeah, there's this great developer that can just churn out code really fast. But then we got the guy over here, the gal over here that really knows what is secure and what's not and where the flags are. And you have pen testers. Like, is that a different product? Is that just a different layer of what you're training for?

1:58:02Or have you kind of built Devin in a way that you don't inject security vulnerabilities? Yeah, it's a good question. So I think with security, I think the main thing I would just call out here is like, this is a problem that all engineering orgs have already had to think about and deal with. You know, it's not necessarily new in the age of AI that you have to think about developers introducing security vulnerabilities, right? And yeah, you know, to your point, we have a lot of these processes in place for that, right? Which is, you know, the first one probably is just code review itself, right?

1:58:30I mean, people, you know, typically you don't allow people to just merge their code straight to master or something like that. And similarly, you want to have similar processes in place for your AI agents. I think there will be specific kind of like security-based agents, but I kind of imagine it draws on a lot of the same code-based intelligence and just like understanding what these functions are meant for or how these are meant to be used, which is kind of a shared intelligence. And so maybe we release our own kind of like security theme to Devon that specifically does this like security review or something like that.

1:59:04Are you seeing companies change their hiring practices at all after implementing Devon and starting to get value out of it? Have we just been curious to learn how companies are actually adapting as they sort of ramp up AI coding tools? Yeah, it's a great question. It depends a lot on the space of company because obviously all companies are competing with the others in their space. And that's what ultimately comes down to this. But honestly, I think what we've seen actually looks like folks taking more and more projects in-house. And so a lot of things that folks typically would have outsourced to a team of contractors or handed off to a system integrator or something like that, they're actually just doing in-house with Devon.

1:59:50And they're able to do that faster. One of our biggest customers actually is a bank in Latin America that started using us around the start of this year for some of these refactors and migrations and so on. and then just got to the point where their team was seeing a lot more effectiveness using the tool, and then they 10x their contract within the last eight or nine months. And if anything, they're growing headcount. They're not shrinking headcount. Every single one of their – if every engineer is worth way more, then obviously you want more engineers. You want to add more engineers, yeah. Okay, let's continue the debunk-a-thon.

2:00:23We saw some data from the census that showed that AI is cooked. It's done. It's over. It's over. It dropped. The actual data point was for firms polled by the census that they have over 250 employees. The level of AI adoption, quote unquote, had dropped from 14 to 12 percent. A little dip in the chart. Of course, people are joking about this, memeing about this, you know, saying it's all over. But also joking that, of course, this is just one data point. And to me, it seemed extremely low to think that only 10 % of businesses are even using AI since AI is kind of everywhere now and everyone uses AI and all sorts of things.

2:01:07Anyway, what is your take on like what's going on in that data point or in that stat specifically? And what other kind of context can you add for us? Yeah, I think I saw this. This is the one that's going around Twitter where it says like in July and August, there is like a tiny, you know, everyone was freaking about. Yeah. So, same, you know, I don't really, I haven't looked into the methodology of how they figured out that number. It's kind of interesting because, I mean, for us, obviously, like a lot of our work is with big enterprises, you know, specifically working on these massive code bases and July and August have been our biggest months ever, you know, by far.

2:01:39So that's, that's, that's, that's the data. But, but I feel like the high level thing, which I would just call out is, you know, I think there's still a kind of like. like collective, like, I don't know what, And there's like a collective refusal to see reality, which is, if I were to say it, is basically we have AI that passes the Turing test. We have AI that gets an IMO gold medal. We have AI that does all these crazy things, which 10 years ago we would have pretty clearly called AGI. And it doesn't mean that you do all of this work for free as a result. There's obviously still a ton that you have to do to teach the specific capabilities and to make the right product experiences and to get actual businesses out there in the world going and using these things.

2:02:26But I just think the story, you know, the things that we're asking the AI to do are not harder than getting an IMO gold medal. And so there's a lot of work to do. You know, I don't want to diminish it. Like, it's going to be years and years, you know, of taking all of the techniques that we now have and figuring out how to build the right experiences and get them out to everyone. But I really don't think – also, I love that every time I come, I'm just the crazy AI bull, you know. That's great. But, like, you know, I think it seems very clear that AI will do more and more of this work over time.

2:03:03And in software engineering, I think you see this especially, which is, if anything, I think the best coders are the ones whose flows have changed the most dramatically. And you just think about how many engineers there are out there that still have to learn these tools and have to get on these things. I don't think we are due for a slowdown any time too soon. Yeah. The methodology of the census data was a little bit odd to me. Basically, they called up individual proprietors, business owners, and they said, are you using AI? and they defined AI as predictive analytics, data analytics, image processing, voice recognition, machine learning, natural language.

2:03:42So a bunch of people said, no, we're not doing data. We're not doing data analysis, which was very odd. Only 10 % of people said yes to this question. I feel like it should be like 100 % because if you're using Stripe, there's machine learning under the hood for fraud detection. If you're using Gmail, Gemini is right there. There's going to be autocomplete on your phone is using data analysis. Anyway, my real question is one of the lowest hanging fruits that I see in the software that I interact with is in government websites, basically. I imagine that the census could benefit from having Devon run around, write better polling software.

2:04:21Is there anything on the horizon where you might be working with the government? Is that something where you need to get ITAR compliance or something before you go in there? Is it on the roadmap? What do you think in terms of improving the software that our government serves to us? Yeah, no, I think it's a great point. And as you say, I think there's a lot of work to do. And it's a great example of the kind of like, you know, the messy problems, which I think it is very clear will be solved over the next couple of years. You know, there's no reason that the government shouldn't be using tools like these to go and build their websites better and faster.

2:04:51And everyone knows, you know, how many bugs there are, how many simple things that could just be fixed, you know, if there were an AI software engineer are available to go and do this. It's funny because I think Windsurf actually, funnily enough, was ahead of us on getting things moving with FedRAMP and getting certified and all these things. But it's one thing that we're working on as well. That's very exciting. Are you thinking at all about other acquisitions over the next couple of years? You've got a big balance sheet at this point. Yeah. I mean, the last one went pretty well.

2:05:27I think for us, it's obviously really valuable to have this capital for a few different reasons. You know, with model training, I think with hiring great talent, with expanding go-to-market and so on. You know, is it possible that part of that will also, you know, go towards, you know, buying other companies? Of course, it's possible. There are not any plans at the moment, but yeah. Yeah. In terms of your position in the stack, I see you as sort of like a initially like a enterprise level application layer company that then is now going down with Winsurf into more of a B2B context, not full consumer, but more broad usage.

2:06:09but famously model agnostic, not training foundation models, not working down the stack. And we're seeing the foundation model companies do deals with Broadcom to co-develop chips and what Elon's doing with Samsung. And there's a lot of these data points. Are there any other places where you want to at least have better relationships with other layers of the stack? Is any of that important? Or is it really just like you have your slice and you're just going to go and run at that for the foreseeable future? Yeah, it's a really good question. I mean, I think in terms of relationships, for sure. I mean, we work very closely with the foundation labs, for example.

2:06:48You know, we have lots of things going on in terms of how we do compute or even kind of like partners that we work with on distribution. Right. Which I think are great. I would say, you know, I think the for us, it's we we obviously I think it's very important for us to just have a lot of humility about where we're coming from and what we're doing. You know, we're obviously, you know, a very new entrant to the space and and, you know, are only like 0.1 percent of the way there. And I think, you know, for us to be able to meaningfully succeed is going to require a lot of focus. And so I think from that perspective, you know, I think the like, you know, we know what is the area that we really kind of want to own.

2:07:27And that's basically, you know, everything between the, you know, that goes from taking the model, the base model itself, and then doing the right kind of capabilities work and building that into a product experience that, you know, real engineers can use every day. And I think we will stay quite narrow kind of within that focus ourselves. So you're saying job's not finished. I mean, it's barely even started, honestly, I think. And I think obviously there's, I think, a vision of the future where, as we said, where software engineering is just as easy as telling your computer what to do. And I think the world of software engineering has already changed in some meaningful ways over the last two, three years because of all these AI coding tools.

2:08:13But I think we've got another like 10, 20 generations of product experiences as a community to build and unlock until we get to that full future. Important question. Was this latest round of financing negotiated with Founders Fund over poker or chess? Unfortunately, it was funny. Actually, we were on the weekend that we did the Windsurf deal. Obviously, it was a pretty substantial commitment from us in terms of Windsurf. And so we explicitly needed board approval, but also wanted to give our investors an update and kind of hear what they thought and so on. And so we were on with the Founders Fund team with Napoleon and Peter and getting their thoughts on what they thought makes sense.

2:08:59And I mean, first of all, they were really supportive of us doing the deal. And they thought, you know, the partnership made a lot of sense for a lot of the same reasons that we did. But they also, you know, were very clear of like, hey, like I know this is going to be, you know, a big thing for you guys on the balance sheet and for you guys as a company. And, you know, we want to be clear that we stand ready to support you in the next thing if this is the deal that you want to do. And honestly, that's a lot of what gave us the confidence to be able to go ahead with it and close the whole deal, you know, in the 48 hours or 72 hours or whatever it ended up being.

2:09:31And so we're good for our 400 million. It's really been amazing. I can't I can't shout them out enough. You know, Napoleon and Peter and the whole team that we've gone to work with have have been great to us. That's fantastic. Tell us the story of the deal that was negotiated over. was it poker? How did that come together? Yeah, so it's a funny one. In retrospect, so it didn't actually happen. But basically, when we were doing the Series A, one of the very early rounds of the company, it was me and Napoleon. And I was here, and he was there, or something like that. And I think at some point, it was clear that the deal was going to get done, but it was just kind of like going through some of the more minor terms and making sure we were on the same page of everything.

2:10:17And we kind of put, you know, what if we just had a nice heads up match to go and settle this and decide whose terms we're going to take we we did not do that it's probably probably for the better that we didn't do that but but but yeah yeah oh yeah but the story lives on as something that almost happened or was at least like joked about which is fantastic uh that is great well thank you so much for taking the time jordy do you have anything else no congrats i know you got a busy day so we'll let you get back to it just try to appreciate try to try to have another reason to come on before the end of the year at least a couple you know it's the great lock-in but there's gonna be plenty more stuff to debunk uh yeah there's gonna be tons of data points that people read into way too much and we will be giving you a call i was gonna say i look forward to coming on again and being the idiot optimist that just you know everyone else is giving their rational arguments about this is gonna work this is not gonna work and i'm just here saying everything's bullish but yeah i mean if you want one more we can talk about inference costs i mean people are saying that oh inference costs aren't falling you got to use the latest and greatest model and your gross margins are going to be terrible forever.

2:11:19Debunk that one for me. Sure. No, I mean, I think there's, so I think there's two separate questions there. You know, one is the question of, is the business going to be defensible? You know, are you going to be able to offer something that, that, you know, you're competing with your competitors on something that is not just purely a race to the bottom, right? And then The second thing is, is the cost value tradeoff for the customers going to actually make sense? I think the second one is just very obviously true because as these tools, if the tradeoff is doing more and more and speeding up labor, making every accountant faster and making every lawyer faster and so on.

2:11:59I mean, at some point, it's pretty obvious that the machines are cheaper, that cheap enough that making every lawyer three times faster is just obviously a no brainer. right i think on the the point of the first one you know obviously it's a great point and and i think that's it's different for every different company you know i think a lot of the businesses in the application layer need to think a lot about you know what is their special sauce and what is their differentiation um but i think the answer for for most probably of what that comes to is a combination of one is just really really focusing on specific use cases and delivering solutions that are that are you know really kind of custom solutions for the problem that they're specifically solving.

2:12:36And then two is, you know, I think there is like a real kind of, I'll call it like a personalization effect that I think we're seeing more and more. You know, there's chat GPT memory, for example. Obviously, Devin has its own whole knowledge system where, you know, as the tool just understands the customer and their own business and their trade-offs and everything much, much better, that itself is obviously something that just makes the product, you know, more and more powerful just for them and is the kind of thing that would command that value. So I, I think it's, you know, from a perspective of is AI, you know, are we going to have monster intelligent AI that's just so smart, but we just, you know, we just turn the machines off because they're too expensive.

2:13:16You know, I don't think we'll have that future. I think there's a very reasonable question about, you know, where that value capture comes in. And I think that's why all these businesses are thinking about, you know, what is this one thing that I'm going to do really, really well that's going to make my business durable? It's fantastic. Well, thank you so much for taking the time to hop on on a busy day. good to hear that the job's not finished. I love unfinished jobs. I hate when the job's done. I hate when the job's done. Give our best to the team. We will talk to you soon. Will do. Thanks for having me.

2:13:46See you. Bye. How'd you sleep last night, Jordy? I had. You had a terrible night, right? I had a brutal night, but not because of my eight sleep. No, I got an 82. I'm sleeping pretty good. I think I get the sound effect. I managed to pull a 75. That's not bad. Eight sleep is working overtime for you. It was like, we got to get this guy some sleep. There's kids everywhere. The three-year-old is up. The one-year-old is throwing up. We got to adapt to AI coming in to help you sleep better. Anyway, go to AIDSleep.com. Get a pod five. Five-year warranty. 30-night risk-free trial. Free returns. Free shipping.

2:14:22And we will bring in our next guest, Ara Karazian from ramp.com. Time is money. Save both. Easy to use. Corporate card. Bill pay. Accounting. And a whole lot more. Good to see you, Ara. How you doing? Great to see you. Thanks for having me again. Thanks for hopping on. So much data-driven chaos in the timeline. Yeah, I want to talk about 996, but first let's start with this data that it's completely over and no businesses are going to be using AI. Because if you look at the trend line, we went from 12 % to 10%. If you track that out on the line, it's going to be 0%. No, not that one. It might be negative 50 % of businesses using AI.

2:15:04You're talking about the AI adoption data from census. I am talking about the census AI adoption data. The folks that brought you the Department of Motor Vehicles. Yes, yes, yes. The real experts. What was your reading? I've been thinking about the census AI adoption data for a long time because we have our own measurement of it with ramp data. That's ramp.com slash data slash AI index. Yep. What I don't like about the census measurement and why I think it might be underestimating AI adoption is that the question that they have written is not the right way to measure AI adoption. Essentially, the way the census measures it is they ask businesses, do you use AI to produce goods and services?

2:15:42And that makes sense because they wrote the question back in like 2023 when we weren't really sure what AI was going to look like. But AI to produce goods and services, that's, first of all, that's econ speak, right? That's how economists talk to each other. but well yeah and even if somebody technically like in my view if somebody provides any type of services to somebody and they use ai call transcription like someone on their team is like recording calls and like transcribing with ai that to me like qualifies as i literally had in 2013 i was running a consumer package goods company our business was making protein shakes That was the physical good that we produced.

2:16:20But we also would transcribe all of our calls. And so were we using AI to produce goods and services? I would have said, absolutely. We're using linear regression. We're projecting out our financials. We're doing all sorts of stuff that fits in the bucket. But yes, to your point, it's not - You're a forward-thinking business leader. Sure. And that makes sense. But most people reading that think, oh, am I literally using AI to produce widgets on my factory floor? Yep, yep. It's the kind of question that doesn't really capture the way that AI in the past three or four years of its development has more or less, has mostly been adopted by businesses for back office tasks.

2:16:58Yep. And when you look at that 10%, I think most people would say, yeah, for most businesses, that's pretty low. Forget tech forward businesses just in general. Yeah. So the overall number of like 10 % of American businesses using AI, that seemed ridiculously low to me because just consumer LLMs like ChatGPT are like 50 % adoption amongst American adults. And so it just doesn't math with me that someone would be, that four out of five Americans would be using ChatGPT and then walk into work and be like, nah, I'm not going to use AI for my job. But what I'm more interested in is like, why do we think that there's a peak and then a fall off at all?

2:17:39My theory was like maybe these big companies are getting sold on you got to use AI to produce goods and services. They try and roll out some zombie change management strategy where they're going to be doing AI. I remember the Klarna CEO like did this big thing. Was like, I'm going to use AI for everything. And then he ended up saying, I take it back. Yeah. People are pretty good. Yeah. So did you ever read on that at all? Well, there's a few things. One, the sample sizes for these surveys are actually pretty small. They run these surveys every two weeks. And like most government survey collection, particularly if it's run every two weeks, you're going to get some mixed differences in who responds.

2:18:17So that's part of it. I think some of it just might be some noise in the data set, because it did come back up in the most recent read. It wasn't that much of a decline in the first place. You could write it off as noisy data. The second thing is that it's not unreasonable to think that the fact that this was conducted in the summer might mean that even at the businesses who responded to the survey, the person who responded to that survey at that business might be different. Yep, totally. This is another reason why I really don't like business surveys is that they try to capture what a business is thinking, which is a large, complex organization.

2:18:50But they require one person at that business to answer the question. Easy for you to say you've got tens of thousands of businesses and their actual purchasing behavior. So let's flip it over. What is the data actually saying about the level of AI adoption in the business world? When we look at ramp spend data, AI adoption is up. AI adoption is now about 45 % of businesses in the U.S. It varies by sector. So adoption is much higher in tech and finance. About 70 % of tech firms on our platform adopted AI in some paid form. I still think that's probably pretty low. We're not capturing free usage or capturing employee usage on their own personal accounts.

2:19:28But then even in restaurants, for example, we see 20 % adoption of AI. And I think that's likely... And what does that mean in the restaurant context? It's like they pay... That could be they're paying for ChatGPT's pro plan or they're using a call... Marketing materials, like developing like a... I mean, I've seen menus that have AI-generated images. That's not my favorite example. But a much better example is designing a Facebook ad that uses an AI-generated image or copy that really speeds up a lot of the work that a restaurant owner otherwise has to do. I mean, these restaurants and firms often have really small staffs.

2:20:05And so I've talked to some restaurant owners who use Ramp, for example, and talked to them about how they use AI. And for them, for the most part, it does automate a lot of the sort of not just back office work, but a lot of the work that lets them get back to work of doing the restaurant work that they want to do. OK, so let's flip it over to the nine nine six phenomenon. There's been some spicy quotes on the timeline talking about how nine nine six working on Saturday is super trendy. Everyone's doing it. What does the data say? So does everyone know what nine nine six is in the audience? I don't think our...

2:20:41I think everyone knows, but break it down for us anyway. 996 is associated with Chinese working culture, though I believe it's actually illegal in China now, though I think it's still often practiced. And it means work 9 a.m. to 9 p.m. six days a week. Yeah. And then it kind of seems like it's caught fire in Silicon Valley in tech culture in this whole wellness-oriented, run fast, lift heavy, marry early, work 9 a.m. to 9 p.m., six days a week, and just focus on your business. Most of the stories have been vibes-based. It's just people in the startup world talking about what they're doing. It's true.

2:21:23It's actually happening. It shows up in the right day. The question is, how will you know a founder works 996? They'll tell you. They'll tell you. Yeah, but I mean, a lot of people were wondering, is this a LARP? Is this something where, yeah, Saturday is for working. It's for posting about how you're working. But you're saying that the data actually suggests that there is business activity happening on Saturdays in startups at an increased rate. Well, in the one specific way we looked at it, in this one we looked at who's employee cards. So we're not necessarily just looking at founders. We're looking at people at the company who are more or less expensing business meals or like late time meals on Saturdays or like DoorDash takeout, other things like that.

2:22:10A lot of the criticism that I've gotten today on the timeline has been like, oh, you can't tell if maybe some people are saying it's fraud. It must be these people who are using their business cards. Like, sure. I want you to read my post because in my post, I found it. It's just SF. Oh, yeah. This isn't happening in New York. Interesting. It's happening in Austin. Interesting. It's not happening in Miami. This is just an SF thing. And it's also really new. This wasn't happening last year. Wow. It perfectly coincides with when people started talking about the 996 cultural movement. Fascinating.

2:22:43Unless you want to argue that, oh, frauds this whole thing. I mean, it really proves there's no such thing as a free lunch because in these cases, the employees are getting a free lunch, but they had to work on Saturday to get it. Yeah, it's one of the worst ways to do fraud. It's like, here's my$20 Chinese food. Yeah, yeah, yeah. Yeah. Okay, so let's think about going deeper in this analysis. How else could we unpack this? One way I'm thinking is, well, meals make a ton of sense. If you're working late, you expense a meal. But also, there's just the normal business activity that, like, you might sign up for for a new marketing software on a Tuesday, you might also sign up for it on Saturday.

2:23:27If you're doing that on Saturday, that's probably even less likely to be fraudulent because why are you putting your credit card down with our latest sponsor, Turbo Puffer? Because if you're signing up for a database tool and you're putting your credit card down, now maybe they run the credit cards at a different time, who knows, but I'm wondering if there's a layer to the onion that you could pull back there. Are there any other data points that you think you'd be looking at in the next few weeks that might help you crystallize this and really, really steal up your position for the haters? So the point you're making is really good because there's someone else who a really interesting reply I got was someone who works, I guess, in credit risk.

2:24:11And one of the big signals they had about whether or not an application for their, I guess, finance software product was fraudulent was whether or not the application was submitted on a weekend. And they started looking into all of the ones that they got on weekends, and most of them were false positives, at least the ones from SF. Totally anecdotal information. Oh, from SF. Oh, because it's fraud everywhere else, but in SF it's the grind. I mean, this is really bad for everyone but SF because it shows that the great lock-in is really only happening in San Francisco. It's local. It's a local phenomenon.

2:24:45It's not actually people in New York. Oh, great lock-in, great lock-in. Okay, so going forward, yeah, we got to look at if business software purchases are up in San Francisco on the weekend. I also want to know if it's going to spread, if we're going to have some memetic contagion, and we're going to see the great lock-in potentially spread to New York. That would be likely for me. I want to know Miami, Austin, LA. Might need to get a little bit colder in New York. Potentially, potentially. Anyway. New York got a little bit close to it, but not maybe a quarter of the effect size. Wow. Huge. And it was only after 8 p.m.

2:25:20It wasn't like in our chart for SF, it really is starting at about 9 a.m., 10 a.m. Wow. What about timing? You said this is a new phenomenon in San Francisco. If you scroll back the timeline, when do you start seeing a takeoff of this 996 culture in San Francisco? Over the last six months. Six months. it's that recent wow yeah that's fair we don't see this we don't see this in 2024 really at all that's crazy i feel like 2024 was definitely a year where people were were working but i guess it just picked up a whole new whole new gear that was before the current capital wars began yeah when we had this idea i really didn't expect to see anything because when you it's pretty rare to see these kinds of spend shifts in any demographic yeah especially like when i looked that it nationally was completely unmoved because most people don't really change something as worn in as their eating habits that often, even, you know, tech employees or workers.

2:26:22So I really, I really didn't expect to see anything. And the only time you would expect to see something like this is a pre to post pandemic trend. 2019 to 2021, a bunch of public and private data set started to show shifts in where and when people were eating, right? A really classic one from the pandemic era was movement from outside the city center. So, you know, people were spending much less time downtowns and then suburbs start seeing a lot more activity. That was a really popular one during the pandemic period. But after the pandemic, you really stopped seeing this kind of shifting. Most people kind of set in their ways and things were back to normal.

2:26:59So the fact that we saw this only saw it in SF and that it was so recent is pretty rare and shocking. Right. Last question for me on the 996 question. Part of it is not just the six, not just Saturday, but the nine to nine. Are you also seeing or do you think it's worthwhile to look into what's happening from 5 p.m. to 9 p.m.? Because that's also the hallmark of the 99 is that it's not like nine to five, six days a week. It's nine to nine. And so you should expect more employees expensing food late night on a Tuesday, on a Wednesday, on a Thursday, on a Friday because they're working longer hours.

2:27:43And so is there a way that we can measure the weekday hours worked by San Francisco employees? Yeah, one of the really great data sets for this would probably be GitHub commits. Oh, GitHub commits. Yeah, we got to call up. We had the CEO of GitHub on. we should ask him to pull something. And of course, there's a public data set, but I think that's mostly for open source projects. And I don't know if the, I know that there's like a heat map of when people commit, but it's only by day. I don't think it's by time. So the data would probably be internal, but I don't know. I mean, it's a Redmond, Washington company.

2:28:22So I don't know if they're going to put something out, publish it that says that San Francisco is outworking Redmond, you know, That might be a little controversial for Microsoft to do. Anyway, thank you so much for hopping on. Anything else to share? Are we good? Thanks, guys, for having me. Subscribe to my sub stack, econlab.substack.com. econlab.substack.com. Let's go. Call to action. Thank you so much for hopping on the stream. We'll talk to you later. Thanks, R. Have a great rest of your day. Cheers. Bye. Next up, we got Zach from Warp coming in. before we bring them in let's tell you about Wander find your happy place book a Wander with inspiring views hotel graded meetings dreamy beds top tier cleaning and 24-7 concierge service that reminds me I actually need to book a Wander myself it's a vacation home but better writing it down in my notes oh yeah yeah okay well we have our next guest maybe yes okay great let's bring them in there we go there we go second time hey how you doing I love this.

2:29:29This is Warp Country. Warp Country. I don't understand why I'm wearing a Warp-themed cowboy hat, but maybe I'll explain. What's new in your world? So I've been filming a Western, basically. You can see me doing a product demo on a horse. Very cute. Because, you know, why not? We just did a major launch called Code Country. Code Country. The theme is all about coding on Warp, and we decided it'd be fun to do it uh with a little bit of like hey let's let's show how warp can help you wrangle your agents so that is why you're wearing a cowboy hat zach i'm pissed off because i was with john last friday uh before we literally before we got to the office and we saw these fine hats and you remember when i was pitching you on doing hat as a merch for a company that we work with and i was the the tagline for the campaign was like i was gonna i was gonna pitch this to vanta yeah you say like this is vanta country america's vanta country but i guess you beat us to it uh and you did it very well so so uh thank you it's a great concept um you need to you need to create things that that people will remember you by and i don't think people are going to forget the three of us sitting here with these hats on just talking about code country Yeah.

2:30:50Okay. Explain to me what it means to wrangle agents. I feel like I've used agents pretty reliably. Like I just, this weekend I need a new breakfast place. I kicked off ChatGPT agent mode. It went off and hunted around. I got some weird ones I posted that. I asked for a table that was circular, and it found me a used wooden spool that's used to wrap coils around. And it's actually, for like$50, probably the best circular round big table you can get. So it was thinking outside the box. It was great. And then I've also used Cloud Code. Obviously, I think of that as agentic. We've talked to other folks in the show.

2:31:33But I saw this interesting dashboard on X where someone had some visualization of all the different agents that they'd spawned out. Like, what does the frontier of using multi-agents look like? Frontier. What does the frontier look like? Yes. Frontier look like these days, around these parts. The situation is such, if you look at pro developers using agents in their daily workflow, they kind of produce stuff that's not shippable a lot of the time. They produce security. Hey, you can't argue. They do produce security vulnerabilities. You know, it's like, yeah, you can ship. If you're not careful, you can ship security holes.

2:32:18You get to a point where developers on your team don't even know what they're coding. it's really a mess to vibe code in production right now. And the thing that we've been focusing on is like, how do you get a tighter feedback loop where you can see what an agent is doing? You can review its work as it goes. You can make sure that people on your team who are building with agents are like, you know, comprehending what they're doing, that they're code reviewing the agent's code in the app. And so this is a real, a real problem. If you look at the Stack Overflow, latest Stack Overflow survey, like number one problem that developers have developing with agents is like they produce hard to debug code that they don't understand.

2:32:58And so you can end up wasting a bunch of time. So, yeah, we're just trying to help people keep their agents, you know, steer them as we talk, as we say. I want to do this whole thing. Yeah. So what do you think about these here? vibe code cleanup specialists. People that are making a living now going around on LinkedIn and cleaning up old vibe coding projects. You got to bring a sheriff into town sometimes to clean up some messy code.

2:33:34That to me is like a symptom of something gone wrong with the tooling. If you're getting to a point where you need like a janitor or whatever to come in, clean up your code. You want to get the engineers on your team to be able to produce shit that actually goes out to production. I guess my other take on this Bob Code cleanup specialist that we're seeing pop up is like, I don't know, there's a world where there's the type of person, like the ideas guy, who's like, I have an idea for an app and I want someone to build it for me. Then there's the type of person like you, Jordy, who you have an idea, but then you're a Figma expert and you're going to work on design and you're going to turn over something that's really communicative in terms of the interaction design.

2:34:17Then there's one layer further now with Figma Make and other VibeCoding solutions where you could actually turn over a full prototype that's pretty functional, but it's not really going to scale. And so maybe the VibeCode cleanup specialist is just saying like, hey, I'm a really talented engineer. I am truly an engineer. I know computer science, but I'm willing to work with it. I work well with the type of people that express themselves and what they want to build as vibe code. And maybe that's an interesting pattern as opposed to the software engineer who likes to work with somebody who turns over a PSD file or Figma file.

2:34:56I think if you look at it like that, it makes a lot more sense to me. It's like, what's the new version of Mox or PRD? It's like this working app, but it's not a shippable app because it's like, you know, the agents kind of can't do it yet. It's also where you run into problems is like these things are amazing for the zero to one use case. They're less good for the like, I'm working at some big company that has millions of lines of code and I want to add a feature to it. And so for that, you really, you know, it's like, it needs to go, you can start with like the vibe coded prototype, but you're going to need someone to get in there who actually stands behind what they're sending up to their teammate to review.

2:35:37Yep. Yep. I hate to get personal partner, but can you talk revenue? I think you guys have a pretty extreme revenue ramp. Yeah, we're doing awesome. So we're, uh, we're adding millionaire RR every like seven, eight days, something like that. which is you don't see numbers like that around these parts very often certainly not like it's you know we're not not it's not a ghost town and it's uh it's a little bit of a gold rush yeah but it's pretty exciting times like it's it's super fun the vision that we have of like building uh you know a development tool which is for the ground up for like how do you go all the way from prompt to production that isn't like your run-of-the-mill IDE or like the 20th just like text-based CLI app but is a unique tool built to get you know pro code out is really resonating it's super exciting fun time to be working on it well thank you so much for taking the time to stop by the old tbpn saloon the saloon yeah we'll talk to you soon have a great rest of your day Great to catch up, Zach.

2:36:51Thanks a lot for having us. See you. That was fun. Code country. Another Cohen coming into the studio, breaking down. Big fundraise. Very exciting. I'm excited for this one. Legendary poster. One of the greatest to ever do it. Very excited to have him on the show. Andrew Reed's in the chat. What about that? What's happening? We need to give Andrew Reed more content. We put these on not for you. although you are from texas but for the uh warp the ceo of warp but we'll leave them on because they're fun i thought you guys put them on for me i was gonna ask that that was my first question uh no no but but uh but but yeah do you ever wear a cowboy hat around the office i do not i have boots there you go there you go boots boots or boots are strong uh what's happening it's great to great to finally have you on the show thank you guys for having me i needed something newsworthy enough to make it on here.

2:37:50So I had to raise a round just to get on the show. Well, I think you've been on many times via your post. We have reacted to many of your posts. Long time, long time guests. But what, yeah, give it, give us a whole kind of bet. I mean, since it's your first time on the show in person, give it, give us kind of quick history of the company and the news. A quick history is we got started last April after a team of us had been at Carbon Health for three and a half years. Left in January, started the company in April, raised around, got to work. And then fast forward, 16 months later, we just closed our Series A and it's been a fun time.

2:38:29So, congratulations. Wow, look at that. I thought you walked away. You're like, fuck this, I'm out. We got a gong. We got a gong. Congratulations. How are you positioning the company right now? Yeah, yeah. The main thing that I'm trying to understand And from like your journey, like makes total sense, like being deep in the weeds and understanding what, you know, from your time at Carbon, it feels like this category, like so many. I'm sure you're getting sick of like refreshing like TechCrunch and seeing another like voice AI company that is going after the market broadly. But like how is the what's the shape of the market?

2:39:08How is it evolving? Like where you got it? What is what is your GTM look like and all that good stuff? Yeah, I mean, here's my general take on the space is like you've got a group of us who are specifically focused on healthcare AI, or like, you know, whatever voice SMS conversational AI for healthcare, you kind of have to be specialized on it in order to make it work. And I think that's why, you know, we saw Sierra just raise at 10 billion, you've got all the call center companies with their own flavor of like, we're no longer shitty IVRs, we like have a conversational AI now. one. So problem is that as you like start to hear about how their implementations are going, you start to hear how they go from like cross different verticals.

2:39:48They're just not doing that good of a job at it because they don't understand sort of the nuanced, crazy stuff that happens in these healthcare clinics. And so we, we literally have to like almost go on site with customers and understand their workflows, their appointment triaging reasons, like how you actually get a patient to the right place and then read and write back into their systems of record, which many of them, you know, unlike, again, I'll use Sierra as the example, but like, unlike Sierra being able to just integrate with Shopify, who has great APIs to go do like, hey, what's my tracking number?

2:40:19What's your return policy? Can you check the status of my order? We have way harder to work with systems of record. And I think a lot of folks just don't want to go put in the work or understand how to go make those things happen. And so I think you'll see companies like us be a lot more successful in getting these practices live. I think you'll see some of the larger companies maybe win some deals and then go spend nine months building custom software to go make it work. And then I think you'll see most people pivot out of healthcare over the next couple of years because just because it's conversational and generative and open AI exists doesn't make the work any easier to do right now.

2:40:50And that's kind of like the return to the way the industry has always been. I feel like whenever you dig into healthcare, it's like, oh, well, they're not using the standard SaaS product for, you know, it's like the whole genre of vertical SaaS, like is the textbook example where maybe they're using different ERP, different payroll, different help desk software, different CRM. Like they've always had their own little area carved out. And I don't know how much of that is just like HIPAA compliance, but it's like, it's certainly a unique thing. What's the gold standard now? Like what are you guys trying to deliver on the product side because i i saw a screenshot you shared of sierra on there uh you were you're throwing a little state on the day of their on the day of their launch it was an exchange where you're just like can you find me some green shorts and they were like well we have lots of clothes like why don't you look around yeah that's pretty funny um but like what are you guys trying to deliver and what do you what do you think best in class is right now and do the models even need to get better for you to deliver on your vision or are they are they good enough that it's just more about like deep integration and workflows?

2:41:58Yeah, I think that there's a lot of tension in someone like a Sierra who's got a very almost deterministic style chat bot. And that's been around forever. I mean, what they're doing is not new. They're just saying, hey, it uses generative AI versus what you used to do, which is keyword matching and then sharing some response that you had queued up that was approved by the customer and the chat experience. And then on the whole other side, you have an experience like chat, GBT or cloud, which is purely generative, very, very general purpose, anyone can chat with it. And you can really get it to do whatever you want it to do with them, you know, as long as their guardrails don't pick it up.

2:42:30And somewhere in the middle is a conversational experience where you call in and you say, Hey, I'm having this, this issue, I have this, I need an appointment, like, here's my symptoms. And the agent has a defined scope of work, but it still needs to follow somewhat of a deterministic path to get you to the outcome, right. So in order to schedule, I have to look up your account, verify who you are, find the location that you're looking for, find available slots, find available providers, and then ultimately book the appointment and write that back to the practice management system. So there is a workflow or a step that has like steps that have to happen in some sort of order.

2:43:04To do that right end to end is very complex. A year ago, even when we got started, you really couldn't do scheduling end to end unless you were building what was a phone tree of like, you're in this step right now, choose one of these three options. Now you're in this step shoes. And that's not what I think anyone wants to be the gold standard for an experience when you call into your provider. And we've always been fully conversational from day one. And I think over the summer, we've made a bunch of breakthroughs on like how we build a whole suite of agents that work together to get the job done.

2:43:33And so for example, if you're calling into one of our practices now, and you say, hey, I'm making an appointment for, I'll use like med spa as an example for Botox, there is a Botox agent that all it knows how to do is schedule Botox, but it's still conversational. And then if you're like, hey, I actually need to switch to a laser hair removal appointment, then it switches to the laser hair agent. The patient never sees anything, but in the background, we're doing a bunch of multi-agent switching, and that's the only way to make these things work and still be generative. And they still have failure rates, like 5 % to 10 % of cases.

2:44:02It doesn't work as expected. You can imagine all the dumb shit that patients say. It's like completely random. And you can't plan for all of those scenarios, but you just have to get, this is why I don't think AI doctors will be a thing anytime soon because that margin of error will always exist. And it's like, they don't want to take liability or responsibility for that. We can get away with a little bit more margin of error because we're doing administrative functions, but that's the experience we want it to be. As you call in, you know that it's AI, but you're having a conversation with it.

2:44:31Just like if you were talking to Chad CPT's voice model and it can do the job end to end, even if it's scoped to a limited set of jobs. Yeah. How much of how you build this is like develop an RL environment to actually post train a model to interact with all the back office and administrative systems versus kind of like create your own deterministic SaaS layer that then your agents are kind of interacting with or are just kind of like function calls within deterministic like business logic? It's very much the latter. It's like we've got this app layer where it understands an ontology of a practice, services, locations, providers.

2:45:17All of those have their own specific context, right? There is different protocol if you're scheduling one appointment versus the other. Maybe you're like three steps into a triaging workflow now. And then they do have tool calls where they get to say like, I need to create an appointment. I need to find available slots. I need to create the patient account. All of those tool calls have their own business logic and agents that they interact with on their own. It's all very constrained. So you kind of have like 70 % as prompt engineering, 30 % as code in the background to be like, hey, that's not the phone number the patient's calling in from.

2:45:47You can't look up that patient, right? Because there's security factors to consider. So definitely a lot more of the latter than it is like any sort of RL environment where where like you don't really, the conversations don't change that much. So we rely on the foundational models to handle a lot of the edge scenarios where someone's trying to go off rail and say something that's not in scope of the agent. That makes a ton of sense. Thank you. Last question. Do you guys internally view yourselves as building vertical software with the end user experiencing the product as an agent? Because I feel like there's been a lot of companies come out over the last year that saying like we're building AI agents for XYZ.

2:46:32And then if you actually drill down into like, okay, what are you doing? And like, what is the experience of one of your customers? It's like SaaS, right? And that's like, it can be AI enabled. To be clear, we're extremely bullish about that. Yeah, I'm super bullish about it. But the way that you're describing this and the companies that I think are sort of doing good work broadly or like it's not like you're trying to sell that you're just completely reinventing like an entire business model it's more like we're building really valuable software and automated workflows for companies and the end result is that the patient is the patient or the user will have a great experience sell the solution not the technology yeah and i feel like that's right one of the first companies not you know who knows but maybe one of the first companies kind of embrace the new stance you don't have a dot ai domain for example no uh i i don't think the practices really give a shit that it's ai versus some other system yeah they uh they care like we all i've said this i said a few things from day one but like one is that there is inherent product market fit in what we're doing as long as we can make the agents work as expected and so if i can schedule appointments reliably if i can refill prescriptions if i can do all those things and the front desk doesn't have to do it or the call center doesn't have to do it.

2:47:51Like everyone will buy that if it's cheaper, faster, better, you know, whatever you name it. The second is that, yeah, they just like don't care that it's AI. They think it's interesting. What's nice is like every group has an AI strategy. They don't know what that means yet. And so, but they know they want to like partner with a company to go do that. And so we treat, it is all partnerships right now because it's so early, but we're definitely building vertical services, I would say, like that use software to make it really efficient and you don't have to go hire people now to go do the work in most cases.

2:48:23But yeah, it doesn't matter that if it were, if it were, I suppose, an IVR that got like a phone tree that was able to do the same thing, like someone would buy that too, they would just get replaced by the thing that's better and has higher conversion, better patient experience longer term. And so, yeah, that's really the philosophy. And then longer term we are going deeper into the stack in terms of the software that we will offer to the clinics to also help them do their jobs better when it's not the ai doing the job and so we look at it as like right now we're doing very specific bespoke services for the group like answering calls and scheduling or doing outbound campaigns and texting a bunch of patients saying hey you're overdue for your annual wellness visit or your vaccines or whatever it is and then having a conversation And again, getting them scheduled longer term, you can imagine like we build more of the software that sits again on top of their practice management system.

2:49:14But that helps the actual clinic teams do their jobs more efficiently as well. It's just deeply integrated with the AI component. Fantastic. Thank you so much for taking the time. Great to have you on. Join anytime. Great questions. Thank you, guys. We'll talk to you soon. Text me whenever. Cheers. We will. Later. See you. up next we have 11 labs coming in the studio he's in the stream waiting room but not for much longer let's bring him from 11 labs welcome to the show how you doing hey john hey jordy thanks for having me on how do you say your name because i almost greeted you with ahoy matey it's mati stanischewski although i had the same problem with jordi so i was texting people is it hordi or is it jordi hordi i like hordi we're gonna have spanish roots there that is fantastic oh yeah yeah if you went hardcore spanish it might be horti horti horti yeah anyway uh let's jump right into it give us the news what's the latest in your world the latest is today 11 Labs is launching a tender offer of 100 million dollars where we buy early stage employees and investors at a 6.6 billion valuation which is double thank you guys this is amazing this is amazing and so no so happy to to be able to to offer that to all the believers from the early days and you know we are building we're building the company for the generation so i'm hoping to align everybody on that belt for that journey.

2:50:50So somebody came to you, they wanted to give you$100 million. You said, I don't need it in the business. How did this come about? Because somewhat non-traditional for a company to launch a tender... You could potentially hire one more AI scientist for$100 million. Well, yeah. A lot of companies would maybe say, let's raise a couple hundred million and we'll do some secondary as well. But what kind of... What kind of... Yeah, what put you in the position to just focus on a secondary transaction in this round? Yeah, two things. One, we are growing very healthily as a business. We got to$200 million in ARR over the last weeks.

2:51:31Congrats. Thank you. Thank you. It has been a kind of an interesting journey where we launched the product. So we started the company in 2022, launched the first product beginning of 2023. It took us 20 months to get to 100 million in revenue, which is at a time super quick. Now there are some even quicker transitions. Then took us 10 months to get to 200 million in revenue, which is where we are today. And hopefully we'll get to 300 million by end of the year in five months. So 20, 10, five months. So we are growing very quickly and we are doing that in a healthy manner. We have money in the bank to invest in GPUs, in international expansion.

2:52:10so we don't really need much more capital in the bank. And then the second piece is we had a combination of acquisition attempts over last month. And, of course, as someone who came back to Palantir,

2:52:29before 11 Labs, I was at Palantir. My co-founder was at Google, Piotr, and we had a very different setup. Palantir at the time was private. It was almost 15 years private. The equity wasn't very liquid. And with Piaud, we want to make it very different now as you think about the 11 Labs. So offer frequent liquidity to employees. If we continue running in a healthy manner, we are having the capital already to deploy. We want to make sure that the employees can think about this next five, 10 years. So that's where that early liquidity is really helpful. And you're right. We had amazing partners with Sequoia, Iconic joining in, keen to lead the round and invest more in the business.

2:53:11And we, of course, love working with them. So I wanted to give them more at the table as well. Give us a breakdown of where all the revenue is coming from. Obviously, I can think of millions of use cases, and I've seen different companies leveraging 11 Labs. But where are the pockets where most of the growth is coming from? yeah so at 11 apps we have two key parts of our business one is a creative platform side of the business and now the second one is our agents platform most of people will have known us from that creative side that's something that has a account when we started a company that's of course voiceovers for movies dubbing of movies to other languages narrations for audiobooks creating music bringing music into the fold.

2:53:56And here, that's over now a few million monthly active users that will come through the platform and create incredible content. And then a second point, and here we've seen an incredible adoption over the last two years where enterprises like Cisco, Twill, Epic Games, bringing the experiences into Fortnite are building just incredibly new voice agencies. And here, you can think about call centers, customer support, personal agents, media. And across the business, roughly, we are approaching 50-50 between the two. So on one side is self-serve, the creators are half of the revenue, and then enterprises are the additional half.

2:54:44But that kind of other side is going quicker, where we've seen... Sorry to interrupt. So are you competing with the Sierras, the Finns, the Decagons, or drilling down into that enterprise business? It's also, it sounds like, yeah, I imagine like if somebody is creating like a video game, they're leveraging voice agents as well. But could you say a little bit more? Of course. So kind of we, on one side, we power a lot of the companies a lot of the companies you mentioned are our clients um decagon maven uh are some of the example places we work directly so a good example is perplexity who will use voice as part of the interaction to to use perplexity um another is epic games where they've effectively deployed darth vader experience in fortnite so every player could interact with Darth Vader life for the first time.

2:55:39Let's give it up for Darth Vader. As a Star Wars fan, I can do nothing, nothing less. Yeah, that's incredible. And then, of course, so many across other use cases. Chess.com works with us where you can have personalized learning experiences when you play chess. And then other companies like Cisco Twilio where they use it for both internal use cases but also bring it to their clients. In those cases, it's similar to what you mentioned, Jordi, at the beginning where we power their work internally, but also for their clients. So today we power a lot of clients across and then also work directly with some of the holistic voice operations.

2:56:18Okay, help me understand a little bit more about where the business fits in. I feel like you've trained actual models. You're a foundation model company in many ways. and then you're also an inference seller and you have clients that effectively buy tokens from you. They buy MP3s or WAV files probably, but you're doing the inference for them. So you're kind of full stack in this AI world. And then also, I just feel like it's been awesome to see you go on this run because there were probably a lot of haters. I feel like I saw some haters being like, they're going to get steamrolled by the other labs and you have it.

2:57:03And you, so what are the sources of defensibility? Uh, and, and why, like, yeah, yeah. Why do you just keep, why do the haters keep being wrong? Yeah. I mean, it is, it is, it is, uh, it's, it's been an, it's been an amazing, amazing run. And it's such a unique position that I think was, it was contrarian. It was overlooked early on and people didn't see what you saw. And so kind of walk me through a little bit of like the structure of the business and and where the defensibility is coming from yeah two answers there i think the first piece is um so across 11 labs we we we started a company with my co-founder piotre piotre is uh a an incredible uh researcher to assemble who we think are some of the best researchers in the world in audio uh say we we combined a kind of the the foundational research build the horizontal infrastructure and then have vertical applications on top of that.

2:57:55And I think the main reason that we've been able to stay ahead is clear focus on voice. We always build the models in voice. We build applications around voice. And that's something that on both sides, on the product side and the research side, many of the companies just aren't doing. And whether it was text to speech initially and bringing more emotional model, then creating a speech to text model that was heavily beating OpenAI, Google and others on benchmarks. and now the full orchestration across those models and finally bringing music into the fold. And I think a combination of just raw, incredible research talent that is now at 11 Labs, missionary focus of building those models and then being able to deploy them in production quicker has been helpful on that side.

2:58:42And then on the other side, we really care about building the best voice application. So spend a lot of time with our, both on creator side, but also on the enterprise side, and build backwards from there. So that's the first answer. But the second answer, I recently got to meet Jensen Huang from NVIDIA in the UK. And, of course, I came over. I wanted to say hi and said that. And then he responded that, oh, I was an early 11 Labs user and still am. But from the day you launched, I thought that all the voice models will commoditize. But one thing I didn't appreciate is that the true voice experience takes an artist and you guys all are artists.

2:59:29And that is partly true where I think there's so much nuance across voice. You need to create such a distinct experience when it comes to different voices, different languages, different dialects. So Jensen's take that a lot of our engineers, a lot of our company is being effectively crafting those artistic experiences is true. And yeah, we will probably be now NVIDIA clients for life too. This is a great take. It's very similar to why we saw that news that Meta has a partnership with Midjourney. Meta has all the money in the world. They have a ton of scientists. But maybe they don't have the artist that is David Holes at Midjourney who just brings taste to those images.

3:00:12And so they got to pay him, which I love to see. I want your reaction to speaking of that. Where are we in the uncanny valley of voice generation? There was news today in the Wall Street Journal that OpenAI is making a full-length feature animated film. And in this article, they said the production, they're investing$30 million in this. It'll be a full feature-length film. They're trying to do it in nine months, which seems totally doable in the age of AI, honestly. But they said the production team plans to cast human actors for character voices and hire artists to draw sketches. And I saw that and I just thought, like, I've been under the assumption that voice was solved.

3:00:57Even if OpenAI doesn't have the frontier model, you know, if this is a demo of AI broadly, they should be able to figure this out. Why do you think that they're going with human voices here? And do you think there's something that's, you know, on the frontier? Give me your timelines for when we might see 11 Labs technology in a Hollywood film. I think, first of all, I think you can create an amazing experience already and happily we did. So maybe there's a model or skill help where we can work with OpenAI and help them out on that side. But they have amazing researchers. I think they are going to craft those experiences too.

3:01:41I think that Epic Games example is a great way of showing that it's possible. In that case, we worked with recreating, working with the estate, the voice of James Earl Jones, and it did sound exactly like Darth Vader. And players were almost amazed at how is it possible where you have dynamically generated script, effectively a live NPC in the game for the first time. um similarly in our case we worked um we worked with a legends of of the past like richard famous getting his voice where you can really immerse yourself in the story but also with with people like ariana huffington or first lady melania trump on creating their audiobooks and the whole delivery of that experience is is is as good as real thing and the crazy thing it also allows you to do things you could never do before.

3:02:33You can bring those content pieces into other languages and still hear that voice. I think Hollywood is a trickier piece where it might take a slightly longer time aligning the likeness component of how you work with the people, how they get compensated, and how you bring those experiences on screen. We do hope that the first dubbed movies will get into production next year, where you have even better things than what was previously possible. You get that original expression available in dubbed movies. And in 2027, hopefully the first Hollywood movie hits on the screens in English too. That'd be very cool.

3:03:12Thank you so much for joining the stream. Congrats. Congrats to the whole team. Fantastic progress all over the place. Just, yeah, remarkable to see. I love that take about the artistry that goes into crafting these super differentiated high tier models. It's wonderful to see. You love to see it. Thank you so much. I'm also so proud and happy of our mighty team of artists across in spirit. So thanks so much for having me on, guys. Yeah, have a great day. The whole team. We'll talk to you soon. Cheers. Bye. Thanks. Up next, we have Dan from Truck Smarter. It's time. This is a restream waiting room.

3:03:53It's time to truck. People were saying, are we going to truck dumber? No, we're going to truck smarter. And we will welcome Dan out of the restaurant. He's in founder mode. Dan, how you doing? What's going on? Good to see you. Good. What's going on, guys? Good to see you. We're trucking. We're locked in. The great lock-in has begun. Many financings have been announced. We hear you have some news to share with us. Why don't you introduce yourself, the company, and then the news? Yeah, it's been an absolutely packed day for fundraising. So I appreciate you guys getting us in. I'm happy to bring the party to Freight.

3:04:26Thank you. My name is Dan, co-founder and CEO of Truck Smarter. We're super excited to announce our fundraising and the launch of our AI product dispatch as well. What was the fundraise? Give me the details. What happened? Yeah, so we just raised from Associum Ventures, which is backed by Cox Enterprises, and then backed by all of our familiar friends, Founders Fund, Thrive Capital, A16Z, BCV, to continue building the absolute best tools for chunky companies. And how much did you raise? $16 million. Congratulations. There we go. Fantastic. There we go. Warm up on that one. Give us a quick history of the company.

3:05:08When did you start trucking smarter? So we started in 2021. We first started by building a load truck. Overnight success. For folks that are not familiar, a lot of trucking companies today, so there's, what, almost a million truck drivers out there, 95 % of them. 95 % of these trucking companies own less than five trucks. And the way they find jobs is very similar to you going on Craigslist to buy something. Yep. Right? So all this information is everywhere. The information is not entirely verified. The people are not even verified. You're kind of just scraping the barrel constantly, spending hours every single day.

3:05:44But that's kind of been the very core of our company. We started by building a load board that helped them find those jobs in a more efficient way. And then we started layering on a ton of financial services, getting them paid, getting them access to credit. If you think about it, these are the small businesses that just do not get access to a lot of these things. And because we're at the very beginning of their revenue journey, we can just see all this information. And then obviously now with AI this year, there's just a tremendous opportunity to just make finding a job so much more efficient.

3:06:14And that's kind of what we've been heads down on for the last six months. There's a poster behind you. Load boards should be free. Explain to us how exactly does the industry work? You have to pay to find a trucking job. How does that work? It is absolutely crazy, right? So if you think about it, for you to access this Craigslist type of thing, you got to probably pay anywhere from$50 to$250,$300 a month. at the very beginning of our company. We made it extremely clear. So we can't really go back from here. We said load boards should be free. We built software that kind of connected all the disparate pieces of information into a single place, gave it all away for free.

3:06:54And that's kind of the engine for our entire business. We continue to grow tremendously from that. And that's where we continue to layer on all these different services. What's the kind of competitive dynamic in the market? Like, are you going to force everyone to go free? It seems really obvious to like, if there's a barrier to getting a customer, drop that to zero and then figure out how to monetize the customer somewhere else. I'm surprised no one's done this before. So congrats on the innovation. But it seems like the competitive dynamic will be like people will try and fast follow you. So is it just a race to build more financial products, better products behind the scenes?

3:07:29Like what's the long term? Or is it just like you got to get big, you got to get all the data on there? You got to get big, right? So I think for us, right, it's a race to layer on additional services. A lot of the existing companies, there's a lot of big load boards out there. They've been around for 50, 60 years. So you think about Craigslist. A lot of people have tried to verticalize all the various categories of Craigslist. They've done so in a very real way, but Craigslist is still a monster. They still do hundreds of millions of dollars of revenue. So there's still a lot of this pattern with a lot of the existing companies.

3:07:58But for us, we're just able to layer on all these other things that just makes our platform continue to be more attractive. Have you done what the truck podcast? This is a funny, have you done it? Yes. Yes. Yeah. I've done this podcast randomly. They were talking about nicotine pouches and the guy wanted to have me on. It was really fun. Uh, it's actually a very, extremely well run show. Um, but, but, uh, in that vein, like I imagine you can't go on every week, you got to reach truckers. Uh, what's working on the growth side. Yeah. So I think for us, right. We're the number one load board on the platform on the market today, right?

3:08:32You search load board, you search for your load board, we're number one or number two. That's the strategy, right? Making it free just makes it incredibly easy for anybody to access. And as a result, you're getting all the people that are coming into the market, right? So there's SEO play. Are you doing any like brand building, high top of funnel, you know, awareness with truckers or their specific campaigns, it's so hard because the truckers aren't in all one place by definition, right? They're all over the country. So it's not like you can buy one billboard and you're good. How do you reach people and actually create brand awareness?

3:09:08Yeah, I think for us, it's kind of continuing to solve that number one acute pain point, which is finding a job. And that's kind of what we've been focused on from day one. And as a result, I think we just have one of the best growth engines that can reach these trucking companies because almost certainly every trucking company has probably downloaded a load board and there's a very high chance that it's ours. And then as a result, we kind of have that information to just continue to offer them more services. Yep. Fantastic. Congratulations. This is fantastic. We will, we'll talk to you soon. We'll let you get back to your day.

3:09:41Have a great day. Load board should be free. Appreciate it, guys. Thanks, guys. We'll see you. Well, on that note, I've got to get on with London. Yeah, it is past. It's 2.20. Well, we keep doing these three and a half hour streams. We keep saying we're going to do two and a half. We always go long. We're addicted. Tyler, any other breaking news tearing up the timeline? Anything you got for me? No crazy news. No crazy news? I don't know. OK, that's good. Well, we will see you tomorrow. We will be live from Wicom and your demo day. Tune in. We're going to have a lot of fun there. And then on Wednesday, we'll be in New York City.

3:10:16So we are going on a little bit of a world tour, a little bit of an American tour this week. And we will see you tomorrow. Have a great day. Can't wait. Goodbye. Have a great evening.