💎 “Diamond Discount” — De Beers’ secret deal. OpenAI’s whispering office. Gyms vs Bars. +Middle Child Recession

0:28This is Nick. is imperfection. For our second story, OpenAI just launched the most powerful chatbot ever because it can say, uh-huh, uh-huh, yeah, uh-huh, yeah. And because of that, the future of your office is whispering. And our third and final story, gyms are replacing bars. 8 p.m. isn't for pregames, it's for Pilates. But it ain't just us. Say hello to the burnout economy. But yetis, before we hit that wonderful mix of stories. What a mix of stories. No one else is doing that mix. Love the mix, Jack. We're flipping open Hoarders' Almanac turning to week 328. Ah, things we're running out of in this economy.

1:04Jack and I have been keeping track for you. This week, we're running out of middle kids. Middlers like Jan Brady, Michael Bluth, Lisa Simpson, Kevin McAllister, if you will. Nope, Kevin McAllister is the youngest. Are you kidding? No, no, no. What about the one who, he's in his bed? He's a cousin, I think. Nice fact check. Nick, you almost just nailed the Mount Rushmore of fictional middle children. But besties, Malcolm in the middle, Well, he would be MIA today, wouldn't he, Jack? Because you need three kids to have a middle child. In the 1970s, the average family had three kids, but today, it's down to just two.

1:36With America's birth rate at all-time lows, so are the number of middle children. Yeah, we're in a middle children recession right now. But interestingly, the numbers suggest that middle-borns tend to be misfits. That's right. According to an MIT study, second-born boys are most likely to face discipline issues in school. Picture Prince Harry. Yeah. He was always up to no good. Yeah, because the oldest and the youngest, they're sucking up all the attention from the family. So the middle kid gets away with misbehavior. Zuck was a middle child. He got kicked out of Harvard. Because the oldest and the youngest, they suck up all the attention in the family.

2:07So the middle kid tends to get away with misbehavior and the parents don't even notice. But besties, there is a flip side to all this middle kid mayhem. Middle children, statistically speaking, are more open to risk, creativity, and innovation. Uh, the majority of American presidents, middle children. Mid-kids run the world. Yeah, literally. Abe Lincoln, middle kid. But in this economy, Nick, having a middle child, it's going to cost you some money. Babysitters, they're charging extra for each marginal kid. And do you know how expensive a third row vehicle is? It's like an extra 20 grand if there's a third row.

2:40Add it all up, Yetis and Middlers are now an endangered species. They're a disappearing asset. So Ron Weasley, we need you more than ever. Full disclosure. Yeah, Jack. This is Jack, and I'm a younger middle child. That's why we can't lose you. You're precious. I'm not Goldie Knox. I'm not right in the middle. Yeah. I'm the bottom middle. You're like in the middle, middle of the middle, Jack. Let's hit our three stories. 15 years before this song, two boys from the Northeast met in a dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best is the norm. Jack Nick, that's it.

3:13I don't even think they need to practice. 50%, that's a fat tip. T-Boy City on your at list. If you know, you know, because we ready to go. We can't wait no more. So just start the show.

3:27Start the show. First, a quick word from our sponsor.

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4:39Meet your match on ZipRecruiter. Monarch. Happy wedding season to all those who celebrate. Wedding season. That means you just liquidated your 401k to pay for that bridesmaid dress. Yeah, flights, hotel, and a gift. Your presents. It was not the only present. Good timing, though, because Monarch is the personal finance app that tracks everything. Your accounts, your investments, your savings goals, and your spending. We use Monarch to keep all our personal finances accounted for and in one place. We're excited that listeners of this show can get your first year of Monarch Core for half off. That's just 50 bucks with promo code TBY.

5:12The Weekly Spending Recap uses AI to categorize everything you spent organizing them into digestible buckets. Weekly emails are perfect, by the way, because checking finances daily, that's too much. Monthly, that's probably not enough. So Monarch helps you make sure you're on track for seven different destination weddings this summer. Because you don't want to go into debt if you don't even know the groom. Who's Henry? Besties, use code TBOI at monarch.com to get your first year of Monarch Core half off at just 50 bucks. For our first story De Beers is secretly slashing diamond prices right now But to beat lab-grown diamonds Natural stones have a surprise plan This is good An imperfect plan Now, Yadies, before we go any further Don't worry, your secret's safe with us You're gonna propose, aren't you?

6:02We know you've been hiding that ring inside a box Inside a sock Inside that random drawer and no one ever checks. Happy almost engagement season to all those who secretly celebrate. Are you going to ask her on Labor Day? That's a good time to do it. Not too shabby. Well, the diamond industry, they've been historically controlled by Da Beers. Da Beers, a 138-year-old mining monopoly. Yeah, or Jack, how do you like to describe Da Beers? I love this. Da Beers is the closest thing we've ever had in real life to a James Bond villain syndicate. Now, they did coin the phrase, diamonds are forever. We should point that out.

6:37Yeah, they should be in the Advertising Hall of Fame, but they've controlled the global diamond market for 100 years with controversial tactics and duffel bags of cash. That's right. We're taking a life risk by even saying all this. But DeVere's sales are down by 2 billion bucks in the last year. And why is that, Jack? Lab-grown diamonds. Yeah, lab-grown diamonds. They're now 50 % of the ring market because they're 90 % cheaper. Last year, we covered a viral diamond that Walmart was selling. A two-carat engagement ring for$299. Yeah, it was the bling du jour, Jack. But Nick, I'm looking at Walmart right now.

7:11Hit me. That same URL is now selling a ring for$286. So cheaper than$299. And they've increased the carats from two to two and three quarters. My hands can't even carry that kind of a thing, Jack. Nick, when I was proposing to Alex, a three-carat diamond ring, that must have been like$30 ,000. And today, it's$286. We need a refund over here. This is insane. Besties, now Gen Z is driving a whole ring-a-sance, bling-a-sance out there. Young people who are proposing today have bigger rings than Nick and I were able to afford for cheaper prices. But besties, here's the news that no one's talking about.

7:50De Beers is secretly slashing the prices of their natural diamonds. Besties, if you got a buddy who's about to buy a ring, send him this ASAP before he gets down on one knee. Now to sprinkle on some context, De Beers has historically sold their diamonds at 50 % higher prices than the rest of the market. That's right. You pay a premium for the De Beers brand. But according to Business of Fashion Magazine, De Beers has been under pressure to increase sales and do so by lowering prices. But they don't want to lower prices publicly. So De Beers is lowering diamond prices in secret sales meetings with wholesalers.

8:22Literally, De Beers gets together with their big jewelry distributors and tells them, don't you tell anybody how much I'm selling you these diamonds for. Oh, and then they're distorting the prices more by selling in batches, making a per diamond price really hard to compute. Now, why are they doing this? Why, Jack? Publicly, De Beers keeps diamond prices the same high price, the highest they can possibly put out there. Ah, the De Beers premium. But behind closed diamond doors, they're desperately making half-off deals. Yeah, they're discounting like J.Crew. So this is no joke, besties. No joke at all.

8:51If you're about to propose, bring this story up with the jeweler that you're talking to right now in the Diamond District of New York. You can shop around 47th Street, make sure you're getting the market price, not the fake inflated diamond price. So there's actually three types of diamonds on the market right now. Yeah, let's add it all up, Jack. There's natural diamonds with this inflated De Beers price that they refuse to lower. That's a lot. There's natural diamonds with the real market price, which is lower. And then there's lab-grown diamonds for a really low price. But besties, this is what Jack and I find fascinating.

9:20Natural diamonds have one perfect advantage that lab-grown diamonds never will. Wouldn't call that advantage perfect, Nick. Jack, I think this is the plot of Uncut Gems 2. So what's the takeaway for all our buddies buying diamonds? The perfect plan is imperfection. Yetis. Back in the 1980s, De Beers realized that 80 % of their diamonds were not perfectly clear. Instead of selling those not perfectly clear diamonds at a discount, they marketed these cloudy, amber-ish, almost honey-ish diamonds as champagne diamonds. They turned what was considered a potential flaw into a virtue. And now De Beers is doing the same thing again.

9:58They're marketing those imperfect rocks with an amberish, warmish hue as desert diamonds. And those natural desert diamonds, they can't grow that type of diamond in a lab. Because the thing about lab-grown diamonds, they're all perfectly clear. So in some ways, they're all the same. But those desert stones with the natural blemishes, each one is really unique. They were historically considered imperfect because they weren't clear, but now they're perfect because they're unique. Taylor Swift, Doja Cat, Bad Bunny, they've all been buying up these desert diamonds lately. The diamond industry is borrowing the idea from distressed denim.

10:29Yeah, Jack, like how people will always pay more for a pair of ripped jeans. The imperfection is actually perfect in the consumer's eyes. And that could save De Beers. For our second story, OpenAI launched an AI that does something only humans can do, speak and listen at the same time. GPT Voice gives a sneak peek into the future of office life. Whispering everywhere. Whispering everywhere. Yeti's free year now. OpenAI has been overall in itself soup to nuts to copy and zuck its rival, Anthropic. Last week, they finished their Control Cloud Control Paste project by launching their Super app. Ah, OpenAI's chatbot, coding product, and web browser all now in one application.

11:16But they also launched something last week that Anthropic actually doesn't have. What is that? ChatGPT Voice. ChatGPT Voice. They built directly into the ChatGPT app. It's a super app, Nick. Super app. And it's a conversational voice AI. And the most important word that this voice AI knows is uh-huh. Uh-huh. We'll explain what we mean in a second. But it's uh-huh. The OpenAI demo gives you a taste of this new product, where three grandmas are talking to chat on their phones. Let's push play, Nick. I need to know if it's going to rain this afternoon. Checking barn and the weather. I'm not seeing any current advisory for sixth season mission right now.

11:51Okay, great. So I'll be on time. How about the rain? Goodness. No rain expected today in San Francisco. Yeah. Okay. And how are my dates? Besties, notice the crosstalk there, the hmms, the yeahs, a little bit of the uh-uhs. Uh-huh. Uh-huh. Yeah. Uh-huh. Yeah. Yeah. See, those small words are actually a big deal. Because those little words are things you say when you're actively listening to someone. Right. a human ability to both talk and listen at the same time. This, you say it when you want the person to know that you're listening. That's a breakthrough in AI. But how is all of this breakthrough uh-huhs possible, Jack?

12:25Well, the new LLM OpenAI launched. It features a duplex. They basically gave the AI a second brain. A duplex. This LLM, this large language model, is called GPT Live because it feels like a real live person is in the room with you. Real live people can talk and listen at the same time. Like a duplex, it's like there's two floors of your brain. And what's the result, Jack? It's the closest AI has gotten so far to something that feels like a human being. Exactly, because talking and listening is a better way to communicate than typing and reading. It's just faster and more natural for us. But talking and listening at the same time?

12:59That was a feat that humans had over computers. But not anymore. So now you can interrupt ChatGPT if they're like answering a question and going in the wrong direction. And chat GPT can now interrupt you, just like an argument with your mother. So basically, this is the Siri that we've always been promised, like a true human-like assistant that can be helpful. But Jack, as we told the besties on Friday, there is no money in consumer AI like this. Yeah, so this voice application, it's really for workers ultimately, not Williams. Correction, Jack, it's for whispering workers because of our takeaway.

13:32So Jack, what's the takeaway for all our buddies with this new conversational AI? Are you voice-pilled? If you are, you've quit typing and you only talk now. Yetis, years ago, a Stanford study found that speech input was three times faster than typing on your smartphone. That same study found that we make 20 % fewer errors when we dictate instead of type. Okay, three times faster, 20 % fewer errors. Jack, why are most office workers typing these days when you hear that? We don't think they will be for long because voice AI, Super Siri, and that little talk to type button on your iPhone keyboard, each is training us on the magic of dictation.

14:09People are seeing the light, pledging to only type when they must. They have been voice pilled. And once you're voice pilled, you're constantly talking to your computer and your phone, but you're doing it quietly to respect office etiquette. So now some people are installing desktop wands with microphones so the mic is positioned right by their face at work. It's a brand new type of office electronic accessory that you're going to start seeing more of. As the journal found, workspaces are starting to look like high-end call centers with everyone just chit-chatting and whispering. Incessant buzz of people whispering into their phones and computers because that's how they're doing their work now.

14:43They're not typing anymore. So Yeti's OpenAI's new voice feature is a peek into the future of the office. And what does it sound like, Jack? It sounds like whispering. Jack, let's hit the break and we'll see the Yetis after the commercial. Now, a quick word from our sponsor. NetSuite. Yeah, these NetSuite is the corporate control panel for business. Has been since 1998. They probably use this on Star Wars. This pre.com software suite though, it remains the market leader. But Nick, what is next? I got no idea, Jack. You tell me what's next. Well, they say every day your business is late for AI.

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17:00It's Walmart built for your business. Sign up for a free Walmart business account today at business.walmart.com. For our third and final story, gyms are replacing bars as the place to hang out on a Saturday night, And it's all because of the burnout economy. Yeah, it's a funny thing. Molly and I were grabbing dinner at ABC 19th Street in the Flatiron District the other night. And we noticed a line outside the nearby Equinox, Jack. A line to get into the gym. I mean, Jack, you pull up to any Pilates studio in Soho these days, looks less like a gym, more like a members club. The smoothie bar is packed.

17:35The bass is bopping. There's even a bouncer, literally. Yeah, and then Jack, in walk 40, 20-somethings and matching aloe sets for the 8 p.m. reformer class. Eight hours later, it's Saturday morning, and the same scene is emerging outside the 6 a.m. class. Speaking of scenes, Jack, could you set the scene for what we were doing 10 years ago in this situation? 10 years ago, this age group, which was Nick and me, would be pounding PBR Tallboys. But now you're sipping PB protein smoothies out of designer water bottles at the same spots. The world has changed. We used to spend discretionary income going out.

18:07Gen Z does the same working out. But the through line here, for both, it's a social activity. Yes, Yetis, we've covered the liquor lull, the beer bust. Americans under 40, we're ghosting alcohol. But we have not talked about where that money is going, and it appears the bar tab is now for bar class. According to Mintel, 30 % of Gen Z consumers are spending more on gym memberships this year than last year. And crucially, you're spending more time at the gym, especially in the evenings. Now, of course, meeting people at the gym isn't anything new. There's a great Seinfeld episode about Elaine hitting on JFK Jr.

18:39at the gym. Yeah, you ask your buddy Timmy to come, spot you on the bench press so you can be your new best friend. What's new is the timing and intention of social interactions at the gym. Exactly. The gym is now the post-6 p.m. social activity. The group sauna session has replaced happy hour. And spinning with co-workers has replaced drinking with them. More bluntly, the new competition for bars isn't nightclubs, it's gyms. Now, besties, another way to think about this, millennials made athleisure socially acceptable to wear during the day. But Gen Z has embraced that leisure at night. Oh, and the boutique studios out there charging 45 bucks for a stretch class, they're catching on.

19:15You're$45 for a stretch class? These glutes, Jack, I'll pay it any day. You literally just need a table and you can stretch. Or a floor. I don't think you've been stretched. I don't think you've been stretched. Well, one Pilates studio over in London is doing nightlife at their studio. Private parties, corporate challenges, bachelorette specials. You can book the studio from 7 p.m. to close for$2 ,000. I mean, the$45 stretch, Jack, it's cheaper than two martinis. Nick, I've never been stretched. But let's hope that that changes soon. And I got a big butt. So Jack, what's the takeaway for our buddies replacing bars with gyms?

19:48It's the burnout economy. Yeti's, everyone's maxing these days. From screen maxing to protein maxing to token maxing. The very fact that maxing is now a ubiquitous meme says it all. You see, hustle culture has created a hangover. And now we're redirecting money to cope with it. Sleep tourism is trending. Vacations specifically to pay down your sleep debt Supplements are surging Dropping more money on functional powders and pills And now people are going to bed early on Friday night So they can be up at 6 a.m. for a fitness class Oh, and it's not just you besties The word recovery, it is the top trending term in health and wellness right now When Friday night arrives, you're not looking to party You're looking for self-care But you also want it to be social That$50 8 p.m.

20:27yoga with your roommate, your boyfriend And your three buddies from work last Saturday night It's a reaction to the burnout economy Jack, could you whip up the takeaways for us over there to kick off the week? De Beers is desperate not to drop prices of their natural diamonds, but they're doing so in secret. In the face of lab-grown diamonds, what was once imperfection is now perfect. For our second story, OpenAI's new Voice AI can talk and listen at the same time. Uh-huh. Mm-hmm, Jack. Huh? Yeah. It's a sign of what the future of The Office sounds like. It sounds like whispering. Nick, I said no more whispering.

21:00Heebie-jeebies. Uh-huh. And finally, bars are now competing with gyms for nightlife. Gen Z has swapped the bar tab for bar class. It's all a response to the burnout economy. But besties, this pod's not over yet. Here's what else you need to know today. First, tonight is baseball's home run derby in Philadelphia, but it's happening on Netflix. This is Netflix's first year having MLB rights, but they only do very not regular games. Yeah, Netflix had the opening day for the Yankees versus Giants. Now they got the home run derby, and in August, they're getting a Field of Dreams game played in an Iowa cornfield.

21:33Netflix's strategy will do sports, but only special games. And second, remember that housing bill we covered two weeks ago on this show? Well, guess what? It became law on Friday. It became law without the president's signature, like we predicted, as he neither vetoed nor signed it. And it's the biggest housing bill that's been passed by Congress in 35 years. The goal? Build millions of more homes to end rentflation once and for all. And finally, the scandal rocking the Ivy League? Smoking gun evidence of widespread AI cheating. One Brown professor published a report about two exams he gave to his students.

22:05There was a take-home midterm exam and an in-person final exam. Okay, get this. The average score on the take-home exam was 96%. Wow. Professor must have like said, I should have made the test harder. Pretty good, pretty smart kids. Okay, but the average score on the in-person was a historic low 48%. The takeaway here, if students have access to electronics, they will use them to let AI do the work. Let AI write the essays. and let AI decide which of these four multiple choice questions is correct. It's always C. Now time for the best fact yet. This one, some T-Boy trivia sent in by Rene Aroliga from lovely Raleigh, North Carolina.

22:45What is the one lake in the Americas that has sharks in it? What is the only well-documented freshwater lake in the Americas with sharks? I would give you a beat to drop your answer in the comments. You know, we should have done earmuffs. We should have. For people who have like shark nightmares. It is a trigger warning. Because I swim in lakes all the time. Like, I'm upset already by this. You used to swim in lakes all the time, Jack. So what's the answer, Jack? What do we got for the T-Boy Trivia? Lake Nicaragua in Nicaragua. That's right. The large freshwater lake of Nicaragua is home to bull sharks, the only shark species able to survive in both the saltwater and the freshwater.

23:20Yetis, you're looking fantastic over there. To the middle children, you're also all looking fantastic over there. You guys don't hear it enough, Jack. You guys don't hear it enough. Dude, we hear it plenty. We hear it plenty. We're good We're good

23:37I don't know what to say I didn't expect like Family therapy To be discussed On the podcast It sounds like you need A good stretch right now Besties if you haven't yet Drop down to give us Five stars We love reading your reviews And that helps us Grow the show Nick I'm gonna be with you Next week I expect a full Group stretch with you And I'm not paying 45 bucks for it I'll show you what You've been missing out on Oh and drop this In your group chat Because that helps the pod Nick and I We'll see you tomorrow Can't wait.

24:06And before we go, happy birthday to Laura Lynn Shue, turning three years old in Irvine, California, listening to T-Boy since she was in her mom's belly. And alles gute zum Geburtstag to Anastasia Alina in Düsseldorf, Deutschland. Ja, and Kayana Say in Lake Worth, Florida, has got the best 21st birthday yet. Happy birthday to Arnaldo Ventura in El Paso, Texas, listening with his son Nico right now. And Lean Al-Ismail has got a birthday and a new job in Riyadh, Saudi Arabia. Congratulations. Happy birthday to Matt Clark, the Wharton man of Richmond, Virginia. And Eric Osario has got a belated birthday in St.

24:41Pete's, Florida. And happy birthday to Kelsey Black, the legendary Yeti of Austin, Texas, a.k.a. Pflugerville's Finest. Hope you got a great book to celebrate, KSC. And Cole Bryan proposed to his girlfriend three years ago today. Congratulations on the extra anniversary. Wait, we're doing proposerversaries now? You know, it was kind of a theme on the show with the diamonds. It felt right. And finally, a big congratulations to Mike Muni, a former member of the T-Boy team who has graduated to work at a Hollywood studio. Congratulations, Mike. We're pumped for you. And to anyone else celebrating something today, make it a T-Boy.

25:12Celebrate the wins.

25:16This is Jack on Stock and Netflix. Bureau Premium Non-Alcoholic Beer. All right, yeah, he's a little behind the scenes here. Before our New York City live show back in April, Jack and I went sober. For two weeks. True story. Couldn't risk getting sick. I didn't want to be groggy. I couldn't afford a hangover. It was New York, baby. Okay, but Jack, celebrating the wins is what we do. And so for our live shows, we crack open something special. So we drank Biro. The premium non-alcoholic beer brand co-founded by Tom Holland. Yeah, I actually first saw it at my grocery store. Delicious tastes like a celebration.

25:49Feels fantastic and looks legit. More on the looks in a sec. And if it's good enough for the actor who played Spider-Man, it's good enough for us. You see, it pairs well with a pickleball game, a profitable earnings report, or with the best podcast. So, Yetis, if you want to celebrate the wins with all the taste of a premium lager or IPA, but none of the alcohol, there's no better choice than Bureau. Okay, pause the pod. Did we mention the can is straight up gold? This thing will stand out at every one of your next parties. Trust us, we've done it. Only beer we know that actually upgrades the scene like a promotion.

26:21So, Bastis, if there's a win you're celebrating every day, Bureau is the non-alcoholic brew brand you gotta bring. So use code T-Boy for 20 % off your first order at bureaubrewing.com.