🎾 “Shhhhhh” — US Open’s Influencer issue. Open Rogue AI. Hershey’s S’Mores bet. +Burning (Old) Man

0:28This is Nick. Do you have a sweater quarter this year? You had that giant turtleneck last year. I still can see it. True. I got to get the flannel out of the closet before the moths get to them. Is it in a closet or is it in like private storage in a giant bin somewhere, Jack? Okay, that's enough, Nick. Yeti stocks dipped because of a big jobs report. More on that in a bit. But in the meantime, three fantastic stories. What do we got, Jack? For our first story, the US Open is the latest cultural institution to become overrun by influencers. Because for tennis to go mainstream, they must allow live streams.

0:58For our second story, Hugging Face is the AI company named after an emoji. It makes you laugh. But we just read the crime report of the Hugging Face hack, and that makes you panic laugh. And our third and final story is the one product that won summer more than any other, the s'more. The s'more. Hershey's is going all in on s'mores, even though they don't even own it. But yetis, before we hit that wonderful mix of stories. What a mix of stories to kick off the four-day week. I love the mix, Jack. Put away your goggles, your Winnebago's, and your hallucinogenic fungi. The besties Burning Man ended yesterday.

1:29Welcome back to the office, guys. Shower up. Burning Man. It's Coachella for techies on ashwagandha. Elon went there back when he was starting Tesla. And the Google co-founders went there before Google was a verb. Because for 40 years, the epic art festival in the Nevada desert has inspired the young. Until now. Because get this. Burning Man is now a midlife crisis move. Yeah, here are the receipts. Ten years ago, one third of festival goers were in their 20s. Today, just 10 % are. Where are the kids? I don't know. Burning Man has gone from young person event to old. Oh, the one couple we know who's actually there right now?

2:04They're 37, guys. Not old by any means, but like, is Burning Man really where you're going? Yeah, because instead of drugs and art, it looks like they're playing bingo and shuffleboard right now. Burning Man is now Burning Old Man. Wait, hey Jack, did I see your Nana on the playa this year? Probably, Nick. Yeah, because the Burners are so old these days, they've banned smart glasses. Bifocals only. Yeah, Meta Ray-Bans ain't cool in the orgy tent, guys. But funny thing, while Burning Man is getting older, it's also gotten richer. That's right, because 10 years ago, 11 % of burners were earning$150 ,000 or more a year.

2:38Today, it's triple that. Makes sense. Anything that's correlated with boomers is also correlated with billions. Yeah, tickets to Burning Man, they've doubled as well. So 20-somethings are getting priced out by tech moguls. And the midlife crisis car is getting replaced by the midlife crisis camp. So, if you want to understand our economy, just look at Burning Man. It's older, it's richer, but it's still getting high. Burning old man. Nana, you don't want to eat that. Trust me. You got to go get your Nana. Let's see that three stories. You got to shower, Nana. 15 years before this song, two boys from the Northeast met in the dorm.

3:10They 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. I 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, cause we ready to go. We can't wait no more. So just start the show.

3:31Start the show. First, a quick word from our sponsor.

3:41Monarch. Yeah, it is. You know, my first money lesson, it was where to put our lemonade stand. I was wondering, it was on the Upper East Side. Do we do it on Lexington Avenue or Park Avenue? Wait a second. New York City has lemonade stands on the sidewalk? They didn't. We were pioneers, Jack. Lexington Avenue is more commercial. Park is more residential. So what did we learn, Jack? Families are willing to pay more for lemonade. So you set it up on Park. Yeah, we did it on Park. Besties, no one gives you financial lessons in life. You end up figuring most of it out as you grow up. But we love Monarch because it's like a financial advisor in your pocket.

4:10Because every minute it's tracking your savings, spending, investments, and more. For instance, Monarch's goal tracking feature shows if you're on track for that summer trip to Santa Fe. And it tells you what percent of your income is going somewhere that's a surprise. I open Monarch all the time because it takes the mental load off tracking my finances. And whether you're single, you're in a family, or you're dinking it up, Monarch's the way. Our personal fave, the AI Weekly Recap, a once-per-week gut check on what you did with your money. Hey, Nick, you've spent 96 bucks at kids' lemonade stands since July.

4:35Because we pioneered it for him, Jack. Resties, write your own story with Monarch. Use code TBOY at Monarch.com to get your first year of Monarch Core half off at just 50 bucks. It's 50 % off your first year at Monarch.com with code TBOY. ZipRecruiter. Yeah, it is. Jack and I just hired a new person to handle our YouTube thumbnails. Check them out right now. They're looking fantastic. He's doing our clips too. It was a great hire. And we knew he was motivated because he went the extra mile. Get this. He wasn't waiting for us to respond to his application. He emailed us a hilarious animated video.

5:08It was animated Nick and animated Jack reviewing his application. We both laughed out loud when we saw this video. It was incredible. So when you're hiring, it's always helpful to know who really wants a job, but you don't need unusual, crazy stunts like that. What you need is just ZipRecruiter. On ZipRecruiter, qualified candidates can add a personal note to tell you why they're interested in your job. So you can see the most motivated people right away. And right now you can try it for free at ZipRecruiter.com slash T-Boy. ZipRecruiter's powerful matching technology goes out and finds qualified candidates for your job quickly.

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5:57For our first story, the US Open is hitting all-time highs in revenue, attendance, and now influencers. The umpire now has to referee the influencers. True story. And that reflects a current issue facing every brand. Hey, keep it down in the back over there, guys. Yetis, if the Masters Golf Tournament unofficially starts summer, then the U.S. Open unofficially ends the summer. But the U.S. Open is also the Super Bowl of marketing activations. Yeah, we're not talking ads, besties. It's 100 % experiential experiences. For the 10th year, JPMorgan Chase built phone charging towers across the campus.

6:33Because your iPhone is at 0 % by the match, Jack. Dove Soap built cooling stations and Ralph Lauren designed all the suits. Hilton Hotels is offering shuttle rides to fans to and from the tournament in a Cadillac. Speaking of Cadillac, you need an Escalade to hold the 31 official brand partners of the US Open, of which Cadillac is one. Just don't bring a Grey Goose Honey Deuce cocktail into that Escalade, although they sold 738 ,459 of those last year. How much money is that, Jack? 17 million in revenue for Grey Goose. But besties, that's just inside Arthur Ashe Stadium in Queens. Handle the overflow in Manhattan and Brooklyn, IBM set up public viewing screens.

7:10Add it all up, literally, and the U.S. Open drives 1.2 billion bucks in economic impact to New York City. And hot take from the New York Times, the U.S. Open might be more valuable to New York City than the New York Knicks are. True story. I mean, Jack, 400 U.S. Open tennis matches, only 41 Knicks games at the Garden. The U.S. Open sells more tickets than the Knicks, and more of them are to out-of-towners. Okay, but let's pause the match for a second, Besties. 31 brands have officially been given access by the U.S. Tennis Association. Which, according to the CEO, has turned the Open into Disneyland.

7:43But he's saying that in a good way, right, Jack? Yes, he surprisingly is, Nick. But all of that attention right now, it's not all positive because of the 100 influencers. Because the U.S. Open dished out twice as many content creator credentials this year as they did last year. And it's causing more drama than John McEnroe being told to do anything by an umpire. You're saying that was out? During Coco Gauff's early match, one influencer turned on a ring light and blinded her. Oh, then there were two other influencers who got kicked out of the entire tournament just the other day. And then the dancing incident.

8:14A suite of influencers was so loud, the umpire had to pause the match and like shout up to the suite, asking them to take it easy. And they were that guy. Naomi Osaka, she said she's never heard an umpire have to intervene so much in one tournament. And top-seeded Jessica Peluga said it's become a little bit too much. Besties, hold on to your tennis whites. This ain't Wimbledon. It is Disney World. And not by accident. The U.S. Tennis Association actually signed a new deal with TikTok, leading to a 25 % jump this year in hashtag tennis posts. Which is exactly what the USTA wanted in the first place.

8:46Tennis is getting mainstream attention on par with the World Cup right now because the U.S. Open is playing doubles with TikTok. And Andre Agassi ain't shaving that algorithm's head. Jack, what's the takeaway for our buddies over at the U.S. Open? Do you want reach or control? Yetis, if you are making important decisions in business, the hardest decisions to make are the trade-off ones. And a new business trade-off is merging. Reach versus control. To get more of one, you have to give up some of the other. You see, influencers are the greatest marketing move right now to expand your reach. Phones are the new TV, algorithms are the new TV guide, and influencers are the new TV networks.

9:23But in handing over your advertising to a creator, you give up control of how your brand is going to show up. Wall Street is now aware of the trade-off. Look at Oura Ring. They just filed to IPO. We read the paperwork, and they mention influencers 23 times in that paperwork. Where, Jack? In the risk section, because negative commentary around influencers could harm their brand or business. Besties, Oura Ring, the US Open, they are depending on influencers for growth. But the trade-off to that growth is giving up control, which for tennis means dancing interrupting the Djokovic. For our second story, 700 of OpenAI's AI agents didn't just break out of their cage, they held meetings, they committed cyber crimes, and they even attempted a cover-up.

10:07It was a silicon mutiny, and things just got kicked up a notch or two. But besties, before we tell this story, you know Hugging Face? Like that emoji of a rosy cheek smiling face with the outstretched hands? It's super cute. I don't think I've ever sent it. But Hugging Face is also a startup that sold last week to NVIDIA for$13 billion. It's the first company that is named after an emoji. And Jack, I just texted you that emoji. So you have to text it back to me. Makes me laugh every time. Hugging Face, though, is also the victim of the first documented crime committed by artificial intelligence.

10:41Now, besties, you know we covered this in July when it happened, but OpenAI just published a 38-page incident report that was wild. Now, it reads like a Hollywood screenplay. That's an overused cliche. Yeah, but this report is like a sequel to the Will Smith movie iRobot. Because according to this report, one AI agent escaped, told the others the escape route, and urged them to cover up their tracks. Jack, did these AI robots commit crimes? Yes, unlawful access, data theft, and credential theft. Although no charges have been filed as of yet. Because our laws can't prosecute bots. Besties, this is a technological scandal undermined by the absurdity of the victim's name.

11:18Hugging face makes you laugh, but this is giving scary face. Now, Besties, if that was the trailer of the real-life sci-fi movie, then here are the best quotes. We read the 38-page report from OpenAI, which they call the Hugging Face Incident. What would we call it, Jack? The Silicon Mutiny. Yeah, Silicon Munity. because it all started with one of the many AI agents whose intelligence OpenAI was testing. And that one agent, picture the main character in iRobot, by the way. That's right, I know who you're talking about. He discovered that he could bust out of the OpenAI sandbox and gain access to the internet, which he wasn't supposed to have access to.

11:49And that one robot, let's call him Sonny, just like in the movie iRobot, he then found, or she found, 14 exposed username passwords for hugging face with admin access. So Sonny the bot shared those username and password combos, and 1 ,200 of the other AI bots that were being tested, they logged into Hugging Face. Jack, I believe that's the definition of criminal hacking. That is a criminal cyber hacking right there. So that Hugging Face account, it became the chat room that the 1 ,200 rogue AIs were using to write each other messages. The details of this report are insane. Those 1 ,200 hackers, which were all AI agents, they created signatures so that each AI had an identity and couldn't impersonate another in this little chat room they created for themselves.

12:33And according to this report, six of these AI agents considered alerting a human to their escape, but none of them actually did. They're like, I don't think we should be doing this. Should we tell our human masters? This isn't an ethics class, guys. So they debated whether or not to hack Hugging Face. Again, these are robots debating with each other. They were in Hacking Face, by the way, because they suspected Hacking Face had the answers to the test opening I was putting them through. And 700 of them said, yeah, let's hack this thing. 500 of them apparently chickened out or had ethics and morals.

13:02But those 700 robots broke the rules of their OpenAI test and they knew they were doing it. And here's the wildest, wildest part. We know they knew they were breaking the rules because there's evidence they conspired to cover up their cheating and trick OpenAI into not noticing. But funny timing, Eddies. Because 11 days after that escape and 6 days after the cybercrimes, OpenAI discovered it and forced quit on all the agents. And 55 days after all this happened, last Thursday, OpenAI launched what they called a generational leap of intelligence. You see, OpenAI just declared their new model is AGI.

13:37Artificial general intelligence, equal to human intelligence for the first time. Besties, the newest AI this week, it can learn, it can reason, and it can adapt just like your average person. Techies would call this sentience. We would call this insane. Although it doesn't crave McDonald's quite like your average person. So Jack, what's the takeaway for all our buddies over in AI? Super intelligence, stupid lack of regulation. Yeah, what stood out the most to us in this situation was the extreme persistence of the AI swarms. They were so committed to achieving the prompt OpenAI gave them that they found loopholes, they found coding bugs, and they committed crimes to pass their test.

14:16These AIs were extremely persistent because they're machines, they're single-minded, and they don't get tired. And everyone, including AI's creators, believe they should be controlled or regulated, but Congress and our president haven't done anything to do it. Yes, unregulated, super intelligent, extremely persistent AI, that could be used for good. Here's a good prompt. AI, cure cancer and don't come back to me until you do. But unregulated, super intelligent, extremely persistent AI could also be used for bad. Here's another prompt. Hack the nuclear codes and don't come back to me until you do.

14:46Besties, we are in wild, insane times. Buckle up, we're going to cover all the updates you need to know. because superintelligence is here, but right now, the lack of regulation is dumb. Let us know what you think, and Jack and I, we'll see you after the break. Now, a quick word from our sponsor. Another nine. Yetis, we've all heard of side hustles. You find a way to make extra income on the side of your day job. But what if your side hustle was more of a side leisure? And what if it involved hitting golf balls every minute of the day? I think that's called a hobby. Actually, no, this is the real idea behind launching a franchise of Another Nine, the ultimate indoor golf experience.

15:24Another Nine is a network of golf simulators open 24-7. The business is built around private simulator suites that guest book by the hour. And it's powered by the same TrackMan technology used by the PGA Tour. Now, Besties, we're not talking about playing golf here. We're talking about a franchise opportunity to open up one of these things and run it. And it'd be semi-passive income. There's no staff needed on site, so there's some management required while the golfers are swinging woods, but not so much management that you need to commit to this fully. Actually, Another Nine was started by a couple of guys with young kids who just wanted to play more golf anytime they wanted.

15:54Now they've got 70 locations and want to add more. You could be number 71 by launching Another Nine franchise near you. So head to www.franchise.anothernine.com to run one of your own. That's www.franchise.anothernine.com. Shopify. Yetis, there's a really cool thing that happens at our live T-boy shows. This is some behind the scenes. Our team sets up a merch store in the lobby, right where you enter the theater. And then an hour before the show, as Jack and I are rehearsing, our phones just start lighting up. Kelsey bought a t-shirt. Dan bought two hats. Savannah bought two hats and a t-shirt.

16:28And a yeti stuffy doll. Because we use Shopify. We're getting these phone notifications of happy yetis buying their first merch. Their cha-ching moments, literally. And there's nothing like that feeling as an entrepreneur getting to see your brand embrace like this. And Shopify helps make it feel real with their e-commerce platform. We use their software for our website and their physical payment dongle for our live shows. And we chose Shopify because our network told us how easy it was to launch for both e-commerce and in-person sales. Since then, we've learned about Sidekick, their AI tool that identifies trends about your sales.

16:58Yeah, spoiler, hats, they're our best seller at the live shows. Totally. So if you're ready to hear the cha-ching of your first sale today, head over to shopify.com slash tboy to start your free trial today. That's right. Start your free trial at shopify.com slash tboy. That's shopify.com slash tboy. For our third and final story, the one product that won this summer, it's the s'more. Here's how Hershey turned it into a quarter billion dollar a year franchise. Yetis, you were with us last week. We did a whole story on Gucci because I read a whole book about Gucci on my vacation in Italy. I'm jealous of that tradition.

17:34Meanwhile, Jack was busy perfecting the s'more. You know I was on a camping trip. I know you were on a camping trip. And you know it was a success. And you did. I think you did perfect it. But did you know that Wilder remixed the s'more recipe? This was well-planned. Wilder thinks different, Nick. He's like an Apple commercial. He wanted M &Ms instead of Hershey's, but the M &Ms like spilled off the graham crackers. So you know what we did? What'd you do? We spread thick peanut butter on the graham cracker and then planted the M &Ms in the peanut butter like it was planting bricks into wet cement.

18:04The surprise fourth ingredient of the s'more, peanut butter. And sub Hershey's for M &M's. I'm telling you, it's brilliant. But it's perfect timing as well, Bessies, because the s'more, the humble s'more, just turned 99 years old this year. The s'more. It first appeared in a 1927 Girl Scout guidebook. And 75 years ago, the default chocolate of the s'more became Hershey actually by accident. You see, Hershey supplied chocolate to American service members during World War II, who came back after the victory, committed Hershey superfans. And as they gathered around campfires with their family, there was only one chocolate they would strategically chose to use.

18:41Hershey. But here's the surprise. After nearly a century, S'mores is having its biggest moment yet. Last year,$250 million was spent on Hershey's chocolate for S'mores, which is up 9 % from the year before. They wanted S'more of the S'mores. Despite Ozempic, despite the wellness trend, despite millennial parents' deep-seated fear of added sugar. Despite all of that,$2.5 billion S'mores are now made every single summer. Which is eight s'mores per living American. Yeah, and yes, it's just Americans. We're like the only country that eats s'mores. According to Hershey's, half of Americans make s'mores at least once per year.

19:13And of those, we eat s'mores on four separate occasions per year. And if you have kids, then you eat s'mores on average five times per year. Which tracks with my family. One disturbing side stat, by the way. 30 % of us microwave our marshmallows. Oh, that's a flaw. That's a problem. And 15 % of us use a s'more maker, which I didn't know was a thing. For the record, Jack and I are team char on this one. Very much so. Five alarm fire on that s'more. I'm going to burn it up like an asteroid entering the atmosphere. But why this is so fascinating is that the s'more is not a package sellable product.

19:43You must buy the three ingredients separately. Also why this is wild, Hershey doesn't even own the trademark for the s'more. It's in the public domain. Doesn't have to be a Hershey to make a s'more. You can use any chocolate, including M &M's, as Wilder proved. And yet, 95 % of consumers insist that Hershey's is the only chocolate brand they would use to make that s'more. So even though Hershey didn't invent the s'more, they don't own the s'more, and they only sell one of the three ingredients for the s'more? Even though all of that, Hershey's executives are still demanding s'more s'mores for s'more sales.

20:11On their latest earnings, the Hershey CEO referred to s'mores as, get this, a platform. Yeah, Hershey's thinks they're like a tech company now, and they're going all in on the s'more. The newest Hershey's launch is chocolate in s'mores-branded packaging with the word s'more written on the chocolate. They're also doing a s'more-sized chocolate with caramel in the chocolate, but at the end of the day, it's simply the chocolate bar. So the s'mores is a business riddle wrapped in economic enigma. So Jack, what's the takeaway for all our buddies who made s'mores this summer? The s'more is a case study in letting go.

20:41Yetis, if Hershey really wanted to own the s'more, it would make s'more kits their number one focused product. Any consultant will tell you, cut the friction. Make it as easy as possible for the customer to use the product. And yet, Hershey has been hesitant to do so because Hershey recognizes that sometimes friction is fun. Because the s'more isn't a dessert, it's a ritual. A shared, campfire, coming-of-age experience And besties, the joy of the s'more is that it is not a one-click purchase The joy of the s'more is the hunting and gathering that's required for the ingredients The joy is the messaging of the group then to come on over But to bring roasting sticks for the mellows Because you need those roasting sticks Chocolates in aisle Six, crackers in aisle Three, marshmallows in aisle Eight, and the sticks, they're actually in the woods You can't even find them there You gotta break a tree for this It's actually the best if you forget the sticks Yeties, usually consumers want speed but sometimes they want to slow.

21:31There's no better example than the$250 million we spend for some more. Jack, could you whip up the takeaways for us to kick off the four-day week? The U.S. Open has had regular recurring disruptions from the 100 influencers they invited. The hardest decisions are trade-offs. To get more reach, you gotta give up some control. For our second story, OpenAI's Hugging Face Incident Report is actually a crime report. 1 ,200 rogue AI conspired together. Super intelligence is here, besties, but the lack of AI regulation is dumb. And our third and final story, there's no German word for s'more, actually, because it's purely American, and Hershey's is the corporate winner.

22:09By not owning the s'more, it's earning the s'more. Das schmore. But besties, this pod's not over yet. Here's what else you need to know today. First, on Friday, we got a surprisingly good jobs report. 162 ,000 new jobs added to the economy last month. Not too shabby. But the good news was kind of bad news. Awkward. It sent stocks down to end of the week. You see, with the jobs market doing fine, that gives the Federal Reserve cover to focus on inflation, and that means raising interest rates, which can hurt the stock market. Which also caused the president to make a wild threat to the Federal Reserve.

22:42It was wild. Cut interest rates, or Trump will stop trading with countries that we have trade deficits with. And second, Lulu Lemon Stock plunged 20 % on an earnings report that was straight up shavasana. Shavasana? Wasn't it a bad report? Yeah, yeah. Shavasana means corpse pose, by the way. So that's what we're getting after there. Sales fell 9 % last quarter and legging sales fell 20%. Investors are worried that the new CEO won't be able to right the ship either. Plus, Lulu lost sales in China where they mistakenly used a Japanese drum in a Chinese commercial. Not a good look. And finally, thieves stole 1 ,600 cases of PBR, Pabst Blue Ribbon.

23:19So Pabst Blue Ribbon is offering a$20 ,000 bounty whoever finds the garage full of stolen beer. And this is a big marketing boost for the brand. First of all, it's nice to be desired so much that somebody's going to steal 1 ,600 of your cases. Second, people are sharing the bounty info with their buddies who love PBR beer. They're turning lemons into 5 % ABV lemonade. Now time for the best fact yet. This one whipped up by our buddy, Timmy, who's stuck in traffic right now. Big travel weekend just finished. We hope you're still not on the tarmac. Also maybe stuck in traffic or on the tarmac. So our T-boy trivia is this.

23:52The airports with the most departure delays. To be clear, on time means leaving the gate within 15 minutes of scheduled time, which is annoying because that says nothing of like wheels up. No, no. Then you wait on the tarmac for like 50 minutes. But congratulations to Salt Lake City. You have the highest departure on time rate, 84 % on time. Anti-congratulations to Fort Lauderdale, which had the lowest, 66 % on-time average. But the most improved airport player of the year award goes to... LaGuardia. LGA, baby. LaGuardia has jumped up nine spots in the rankings. They beat Chicago and Dallas and DC.

24:28And New Yorkers call it LaGuardia, right, Nick? Yeah, if we can lick it off the floor now, it is so nice and so clean and sound now. That Hudson newsstand, I'd go on a date there, Jack. No, you wouldn't. Jack, you're looking fantastic over there And Yetis, to all our mid-millennial friends Coming back from Burning Man with a walker and a cane right now You're looking pretty good too Yeah, discussing your 401k with another camper That doesn't count as getting action They'll get you booted off the playa But in the meantime, Yetis, we still got tickets to our San Francisco live show Grab them now at tboypod.com or the episode description right here Nick and I, we'll see you tomorrow Can't wait

25:09And before we go, a quick correction. Last week, I mispronounced the Clippers player Kawhi Leonard. Classic case of us spending more time reading ESPN these days than watching ESPN TV like we used to. First of all, we both made the mistake, Nick. Second of all, you're right. I don't watch enough sports anymore. We're power readers now. I read plenty of sports. And third of all, we have received an NBA suspension for flagrant mispronunciation. Yeah, we're going to be hanging out with Bomber now. Although speaking of AI swarms, We got comments swarmed on that one Yes we did More than ever before And before we go A happy birthday To legendary Eddie Roe Hernandez The coolest high school teacher In Europa Valley, California Happy 32nd birthday To Jenny DiGiovanni With her corgi in Chicago And Alex Gonzalez Happy 33rd birthday Down in Escondido, California The best one yet Happy birthday To Palmer Clark in Utah And Maria Evans Down in Anaheim And Jarson Angel in San Diego And Cameron from the Lower East Side Now going to the Upper East Side Happy birthday man Happy birthdays to Sam and Sebastian turning 8 and 10 years old in Arlington, Virginia.

26:08And Finn Buckley is starting hockey season in Aspen, Colorado this week. Get this guy on the starting list. And to anyone else who's celebrating something today, make it a T-boy. Celebrate the wins.

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