Magic School uses AI to help kids learn, not cheat | E2196

22 Oct 2025 · 58 min

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Podcast Summary: This Week in Startups - E2196

Episode Title: Magic School uses AI to help kids learn, not cheat Host: Jason Calacanis Guest: Adeel Khan, Founder & CEO of Magic School Guest: Eric Glyman, CEO of Ramp Air Date: [Insert Date]

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Overview In this episode, Jason Calacanis and his co-host Alex discuss the integration of AI in education with Adeel Khan, the founder of Magic School. The conversation explores the potential for AI to enhance teaching and learning experiences without detracting from fundamental educational values. Eric Glyman also joins the discussion to address important questions around employee vesting schedules.

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Key Discussions

  1. Magic School and AI in Education
  2. Concept and Functionality:
  3. Magic School operates as a co-pilot for teachers, helping them with lesson plans, individualized student support, and AI-driven feedback mechanisms.
  4. The AI tools are designed to enhance, not replace, the teacher's role, ensuring that educators remain at the center of learning.
  • AI Tools for Teachers:
  • Teachers can generate rubrics tailored to various student needs, addressing the diverse learning levels within classrooms.
  • The AI assists in creating differentiated materials, providing teachers with more time to focus on teaching rather than administrative tasks.
  • Student Engagement:
  • Students receive formative feedback on their work via an AI writing tool, enabling them to revise before submission rather than waiting weeks for grades.
  • The system promotes a proactive learning environment by keeping students engaged and informed about their academic progress.
  • Data Privacy and Ethical Use:
  • The episode touches on concerns about privacy and the implications of increased digital interaction in classrooms.
  • Adeel emphasizes the importance of responsible AI use, ensuring that it serves educational objectives without compromising student development.
  1. Vesting Schedules and Employee Equity
  2. Discussion with Eric Glyman:
  3. The conversation shifts to a viewer question regarding equity vesting schedules for employees, specifically in the context of a six-year vesting period.
  4. Jason and Eric discuss the industry standard of a four-year vesting period, highlighting the implications of longer vesting periods on employee retention and motivation.
  • Negotiation Tips:
  • Founders are encouraged to stick to standard vesting timelines to avoid unnecessary complications and maintain focus on product innovation.
  • High-performing employees might warrant parallel grants to incentivize long-term commitment without extending the vesting period excessively.
  1. Gamma Pitch Deck Competition
  2. Introduction of Kris Canete from On the Fly Energy:
  3. Kris pitches his innovative solution to energy storage using flywheel technology, addressing the fragility of the power grid, especially with increased demands from AI data centers.
  4. The company aims to create a sustainable and efficient energy storage system that can withstand spikes in electricity demand, particularly useful in regions with unstable grids.

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Key Takeaways

  • Magic School is leveraging AI to create a supportive educational environment that enhances teacher capabilities and provides timely feedback to students. The emphasis on ethical AI use is crucial in navigating the educational landscape.
  • Employee equity and vesting strategies should be crafted with industry standards in mind to promote a healthy workplace culture and retain talent effectively.
  • The Gamma Pitch Deck Competition showcases innovative startups like On the Fly Energy, which addresses critical issues in energy sustainability and resilience, emphasizing the need for evolving energy solutions in a rapidly changing technological landscape.

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Conclusion This episode of This Week in Startups highlights the transformative potential of AI in education while also addressing key considerations in startup management and innovative solutions to energy challenges. The discussions underline the importance of responsible tech adoption and the need for effective management practices in fostering successful startups.

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Transcript

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0:00Hey, everybody. Welcome back to Twist. This is Alex. And I know you're probably just coming back from the OpenAI browser stream. Don't worry, we're gonna get to that tomorrow. But today on The Speaking Startups, we are talking to founders. First up, Adil Khan. He's the founder and CEO at a startup called Magic School that wants to bring AI into the classroom responsibly. Think about things like helping teachers with their lesson plans, creating more individualized setups for children that might need it. And on the student side, AI literacy, and perhaps even getting early feedback on papers. It's a really cool idea.

0:36It's growing like a weed. And of course, yes, we do talk about privacy a little bit and the risks of increasingly digital classrooms and what that might do to our children's brains. But based on all the data I can see, AI is coming to school and Magic School wants to do it well. Then after that, we're gonna take a founder question. This is a chat back from when we had Eric Gleiman on the show, the CEO over at Ramp. You may have heard of it. And we thought it was a really fun one. Someone wrote in asking about how long it should be for an employee to vest their shares. Four years, six years, should it be different than what a CEO sees in their own pay package?

1:09Well, we dig into that and more. And then to wrap up today, perhaps our favorite ever on-screen pitch as part of our Gamma Pitch event. This is a company that I didn't see coming, that I hadn't even thought of as an idea, but I absolutely love. And I got to learn quite a lot about material science during the conversation. So sit back, enjoy. We have a three-part show for you today and each part is absolute gold. Have fun. This Week in Startups is brought to you You buy Gold Belly. Gold Belly ships America's most delicious, iconic foods nationwide. Get 20 % off your first order by using the promo code TWIST at checkout.

1:45Gusto. Check out the online payroll and benefits experts with software built specifically for small business and startups. Try Gusto today and get three months free at gusto.com slash twist. And Zite. Zite is the fastest way to build business software with AI. Build apps, forms, websites, and portals that connect to the tools you already use. Go to Zite.com slash twist and get 50 % off your first project.

2:19AI is absolutely everywhere. It's doing great in the realm of software engineering. It's taking a big chunk out of the legal market. It's showing up everywhere in the world of fintech. And one other place where AI has found an enormous footprint is in the world of education. Now, when ChatGPT came out, everyone became worried, what will we do if the students just use AI to write their assignments? Well, the picture is a bit more nuanced than that. And some people, especially entrepreneurs, are taking AI tools and bringing them to the classroom in an official context, offering tools and services for educators and students and administrators alike.

2:51And one of those companies, Magic School, seems to be doing quite well. It raised a$45 million Series B earlier this year, so I had to learn more. So please join me in welcoming to the program. it's Adil Khan, the co-founder and CEO of Magic School. Hey, Adil, how you doing? Alex, thanks so much for having me. My pleasure, man. I love talking about bringing AI to places where people might not expect it to go and also to kind of flip the narrative because I feel like AI in education has gotten a pretty bum rap so far. And so I like the idea of taking a tool that some people are worried about and turning it into good.

3:22So let's start there. What does Magic School offer to students and then teachers and then school districts? Let's kind of go up the chart here. So Magic School ends up being this teacher co-pilot. So it is AI for educators where they can use it for their daily tasks, like maybe building a rubric for a project they're bringing to their students, differentiating materials for students who are ahead of the curve and students who might need additional support, English language learners, students with special education plans who might be behind grade level in certain areas of academics. So it's their co-pilot for their daily work.

3:55And then they also can craft these AI experiences. These are all teacher-led. So they have to actually build the experience themselves and then launch them to their students. These range from things like a chat GPT for kids with guardrails and, you know, doesn't give them the answers, but helps guide them through. They're supportive to support them with their academics to more targeted personalized learning tools, like a writing feedback tool where students can submit essays that they've written on their own. And then get AI aligned feedback, feedback that's aligned to a rubric that the teacher is going to grade them on eventually.

4:27areas of strength, areas of growth, instantly, instead of waiting two weeks for their teacher to grade it and give them feedback, they get formative feedback before they get their final grade. It's incredible. As a former English teacher, this would have been a godsend for me in my classroom. And then for districts, they end up picking up Magic School because they kind of want to make their own closed sandbox version of generative AI for their teachers and their district. So they can fuse their own district knowledge with RAG technology into the platform and make sure that it's aligned to their district's priorities and goals and not just a generic AI that their teachers might be picking up in different ways.

5:02So they get to kind of create their own ecosystem of Gen AI tools for their educators. So let's talk about the AI tools for teachers and helping them create rubrics and do some bits of grading or assessment and so forth. My immediate concern is, oh, Lord, the AI is going to be designing lesson plans. And you and I are both AI bulls, I believe. But I would say that the teachers that I grew up with were so experienced and so kind of in tune with students that they could certainly do a better job. So allay for me my concerns that feel very Luddite-ish now that I say them out loud. And maybe give me an example of a rubric that a teacher could put together with Magic School that would be better or more in-depth or more flexible for students than they could do on their own.

5:41Yeah, so that's a great question. So one of the ways that we think about this is that, you know, the teacher is still the center of the classroom. Our slogan is Teachers Are Magic, and it's a catchy slogan. I know, it's good. It is also kind of the ethos of the company. We think teachers need to be in control. AI should not be the one teaching students. For the example that you shared, a rubric, the tools are set up very similarly where the teacher is asked to give very specific input into the tool before the rubric is generated. They can do things like upload their standards that they're required to teach to their students from the state level.

6:12They can do things like give additional instructions or the text that the rubric would be associated toward or, you know, multiple things that rubric would be associated toward. And then they could also add whatever additional instructions they would like. And they could generate, they get the rubric, they can edit it in the platform. And then more importantly, where this becomes really powerful is when you can differentiate this rubric for several different audiences in your second time you said differentiate. My read of that is it means essentially creating variations of the same rubric for students that are at different levels of learning or preparedness.

6:46Is that correct? That's exactly right. And that is when I was a principal, our ninth grade classrooms, our English teachers would have students who were three grade levels behind in English. We had students in the classroom who were branded the country, just learning English for the first time in ninth grade. Then we had students who were well beyond their grade levels expectations. And the teacher as a single person is required to differentiate or meet all of their needs at once. This was kind of like an imagined thing that we asked our teachers to do, but really only the most veteran teachers who had versions of their materials that they had before they could spend maybe the next year doing it.

7:20Now you can do this in like the snap of a finger. So you take that rubric and then you differentiate it in Spanish. You make a version of it that better serves students who are behind grade level. You make a version of it that serves students who are above grade level. And now you have this incredibly differentiated assignment for all of those groups. reading, like meeting a very practical need of educators today. One of those things that causes burnout is these, you know, incredible expectations we hurl upon teachers and don't give them support to actually execute on them. That makes a lot of sense to me.

7:51And I think it explains why we need this because on one hand, if you imagine like the kind of classroom environment, there's like 12 kids in this fantasy land and teachers known them all throughout the, you know, I don't know, third through fifth grade or whatever. But in reality, classrooms are large, they're multilingual, they're spread out across the current capability curve. And so it makes a lot of sense to use tools to essentially take that one teacher and then accelerate them, expand their capabilities. I don't know what the correct word there is, but we do have a pretty large teacher shortage in this country.

8:20According to data that I found, this is from the Learning Policy Institute, there's at least 412 ,000 positions that are unfilled or filled by not fully certified by teachers in the US. So it's enormous. When teachers get their hands on Magic School, how long does it take for them to go from, okay, we have a new tool to being able to use it at a sufficient level of proficiency in the classroom to actually reduce their workload and then reduce the risk of burnout? So, you know, I think that the core of the product is that it's so easy to use and it's so familiar for teachers. One of the compliments I still take a lot of pride in that we get today is that this must have been created by somebody who worked in schools.

9:00Like, how is it possible that you really know my job this well? You know, there are AI tools for other professions you mentioned when you started, like there's a bridge for healthcare, there's Harvey for law. And we just assume that these professions are, you know, worthy of like specific AI tools, or there's a level of knowledge needed. And we don't necessarily as a society think about how technical a teacher's job is. And it is extremely technical. There are so many facets of what a teacher needs to do every day outside of the classroom teaching, including in the classroom teaching, things that go invisible to parents, they go invisible to the general society.

9:35But those were very intimate to me when I was a teacher and a principal and assistant principal. And we tried to build all those things into the platform. I love sending people little gifts, little gestures. You know, and if you're running a business, it's a great way to stay top of mind with your clients, your partners, your customers. So next time you're looking to impress people, consider Gold Belly. I think you've heard of Gold Belly. Where have you been? They deliver America's most delicious, iconic foods nationwide. I've read about these must-dried dishes from places all over the country that maybe, you know, you haven't visited or maybe you grew up there.

10:06Here at the office, we were at Stan's Donuts straight from Chicago. You know, those old-fashioned with the blueberries and the frosting. They got amazing reviews. People in the office went crazy. And just think, What are people going to think when you start sending some Maryland crab cakes or my favorite, Terry Black's barbecue? So next time you're looking to impress, I want you to go to Gold Belly. Red Farm has that Peking duck. They've got some of those great knishes from the Lower East Side that I'll send to people. Bagels from New York, you know, my hometown of Brooklyn. You can even get pizza too.

10:35We're going to give you 20 % off your first Gold Belly order. Oh, Magnolia Bakery. I forgot about that one. That's another one I love. Gold Belly ships America's most delicious, iconic foods nationwide. wide. Get 20 % off your first order by using the promo code TWIST at checkout. One of the things that's really interesting is that it's also solving that problem of like novice teachers in the classroom or under certified teachers in the classroom. We hear from schools and districts that sometimes the non-teachers who are in the building, the long-term subs, maybe the career and technical education teacher who's coming in to teach welding in a school to help students get living wage jobs if college isn't the path for them.

11:11Those folks didn't get trained as teachers And Gen AI can be an incredible way for them to learn how to build a lesson plan and build content associated with these subjects that don't necessarily get big dollars for curriculum. So Magic School ends up being this incredible solve for the practical challenges of schools and districts right now. And yeah, it's been incredible to see the impact and the spread of the product. I think that the ease of use speaks to how fast it's spread. There are over six and a half million users signed up for Magic School. There are three and a half million educators in the United States.

11:39And about half those users in that number are in the United States. So it's like a staggering number for distribution. I'll show the chart here. This is from, this is the chart that you shared on LinkedIn, but I pulled it up for everyone today. This is from a company called Burbio. This is a tracker of the percentage of school districts that have paid to an AI platform in the last 12 months. And what you can see here is that there's a company called School AI that has some market share. There's ChatGPT, OpenAI, which does quite well. And then in first place, there is Magic School. And I wanted to ask about this because when I think about AI tools that have reached the mainstream, I mean, clearly, ChatGPT with 800 million weekly active users has really crossed over into the normal conversation.

12:20How did you grow so quickly selling to a famously difficult industry? Because selling to governments, selling to schools has always been, at least when I was learning about venture capital and startups, like a big red flag, don't even try. And yet you've generated enormous market share. So talk to me about distribution and sales. Yeah, as like a non-technology person, I learned down the line that I made a lot of mistakes that turned out to be the right decisions. I always think about like when I started the product, there was, I had no monetization plan. You know, we were more or less a team of volunteers who launched a product in the world.

12:52I wouldn't even necessarily call it a company at the time. But I figured, you know, I've been a consumer of technology my whole life. I figured if I can get people to use this thing, we'll figure out the business stuff later. So I started seeding it to my teacher friends, folks I'd met through my career. And it was almost purely organic. We didn't spend a marketing dollar until we got to, you know, nearly a million educators signed up for the platform. that's crazy man when you build something that people want like they will share it with others is that is that just teacher word of mouth like teachers saying look this is really helping me organize my lesson plans handle you know having lots and lots of kids and then it just kind of spreading across the nation yeah that's exactly wow i mean it turns out that um you know teachers who are you know wired to help right that's in their dna when they find something that's genuinely helpful they will tell the teacher next door um and we certainly caught a moment of generative ai I kind of come into the world and find a utility.

13:43But I think there was the ease of use of being really directed to their profession and knowing them really, really well. All of that in combination ended up in this extraordinary red trajectory. So speaking about the business side of this, I was curious who you sell to, because on one hand, I know it says, you know, free for teachers on the site. You also have stuff, you know, aimed at the district level. So are you selling to individual schools? Can a teacher buy more magic school capacity themselves or is it district only? Talk to me about the revenue side of things. Yeah, so it's very, very generous, free product for teachers.

14:11We have a plus version of the product that has a couple extra features, but it's not very heavily gated intentionally. We want teachers to get a lot of value out of the product, even if their district hasn't purchased it yet. And then our primary customer is the district. We want to sell directly to the district. And again, the reason why a district wants to join is similar to, you know, the easiest comp is like a ChatGPT, then ChatGPT Plus, then ChatGPT Enterprise. is they want data security and protection. They want single sign-on. They also want to be able to infuse their own knowledge into the platform.

14:43They want to create their own customized versions of our AI tools that are backed by their state standards, their district policies. So it's going to be different based on not only if you're in Louisiana, but if you're in the New Orleans school district or a different part of that state, just to pick an example. That's exactly right. So education is incredibly regional. So we have teams that are based more or less every state and region that understand like, hey, in this state, the district's priority is typically this. And they actually work directly with the customers to help customize the product to their needs.

15:17And usually they're heavily contextualized to that area. So right now in Florida, we're working directly with districts to build customized tools for the Florida state standards. And our employees are in the school districts working with their district technology leaders and academic leaders to make sure this tool is customized to their needs. In broader tech, this is considered like, you know, forward deployed engineers or, you know, we call them solutions architects at Magic School. And they are doing this work to really deeply customize the platform for the district. And, you know, one of the things I share with our team, especially on our customer experience side, is the next greatest thing that Magic School builds as a feature is actually the application of the current technology.

15:55Like if we can apply it really deeply and thoughtfully to the district's needs, then we can, you know, we can change the world. It's not about waiting for like the next shiny feature. It's about taking this incredible tech that we have and making it incredibly contextualized to the enterprise or the district. And underneath Magic School, you guys actually use a variety of AI models. You mentioned a couple of different providers on the site. Is the underlying technology still improving at a material rate to help you guys do more? Or is there already maybe enough capability inside of, you know, I don't know, OpenAI's 4.0 and Gemini 2.5 to accomplish everything you're currently working on?

16:32At the current moment, I would say that, yeah, the models are pretty extraordinary for the tests that we have them do right now. They do most everything exceptionally well. We use mostly Anthropics and OpenAI's models in the platform. Where I think they can still improve would be in, for us, things like guardrails for students. Yeah, like evaluations around text complexity, audio models. We partnered with 11 labs for some of our audio tooling in the platform. One thing that ends up being pretty challenging is when younger students are using like text to, or speech to text, they'll often, you know, pause or stutter or, you know, these things that normal language wouldn't adopt, adapt to.

17:12Wait, they're not typing? Students need to learn how to type. I have heard, I've heard from employers of recent graduates that they type like this and we're roughly the same age-ish. And like, I don't know, growing up, like we had to go to typing class. I sound like the world's oldest man, but bring back typing class. But you know, typing class is kind of like, I mean, AI is the new typing class, right? I know. As I was saying that, I'm like, but you use voice mode on ChatGPT when you're tired. I'm like, okay, fair enough. Yeah, yeah. What's your general philosophy about students using AI in the classroom?

17:47The college board says that the percentage of high school students who report using Gen AI for schoolwork rose from 79 to 84 % between January and May of this year. So it's gone from nearly everybody to nearly, nearly everybody. And again, I haven't been in K through 12 for half my life because time passes, but I can't imagine like my school handling it well in terms of how they approached changing maybe curriculum or expectations or so forth. So what do you think is the right amount of AI for students to use and interact with in the classroom? Because I know we want literacy, but we also don't want a lack of creative thinking.

18:21Yeah, well, I can, you know, quell your fears. Like schools have done an extraordinary job of really thinking deeply about how they want to implement AI. We have been so inspired by our partners and how helpful they've been in their implementation. So I'll give you my own opinion, but I think that a lot of districts will exist on a spectrum of how students should or shouldn't use AI. But for me, I think that there's real risk in cognitive offload to students early in their lives, and And it should probably be pretty limited as kids are really early and maybe vary for very specific use cases. And then as kids get older, I think it ends up being this still needs to be really thoughtfully guardrailed and like, you know, grade by grade scaffolded in a way that ends up ensuring that the students aren't getting too much support along the way.

19:07But I think it can be really, really powerful. The writing feedback tool I shared earlier ends up being this really powerful tool to grow students and their writing abilities. and they're still writing completely on their own, but just getting feedback right in time to revise and improve. So, you know, I'll capture this in a story of a student that I talked to recently who was in 10th grade. There's a friend of mine's daughter and we're talking. She knows I used to be a principal and she's asking me what I'm up to. And I say, you know, we're in this company called Magic School. She's like, oh, she had stopped me.

19:38She's like, oh, we use this in school. I was like, oh, amazing. Like, tell me about how you use it. But how tall did you feel in that moment? Oh, I felt 10, 12. 10 feet. Nothing gets more exciting when students say it, like they're excited about it. And so she tells me about it. Her history teacher uses the writing feedback tool. So she writes her essays and history, gets feedback on it. She very articulately explained to me why it was valuable and how useful it was to get the feedback, revise her essay, and why that was like a good use of AI. I wish I could like, you know, she could have been the best advertisement for magic school.

20:11You should have recorded that moment and just blasted. Nobody gets better. So she ends up, then I ask her, you know, tell me about your friends. You're in 10th grade. Like, you know, AI is kind of this big thing happening. What else are they doing with it? Like what's happening with AI? She's like, well, you know, some of my friends are using it to cheat. And I know that's like, you know, something I can do too. And it's like an easy shortcut sometimes. But, you know, I've chosen to use it like in a really limited way. Sometimes I use it like to, as a thought partner, I really like when magic school happens in my classroom, but.

20:43Launch is a fast growing organization. We've got more than a dozen employees working with me here in Austin and another dozen spread out all over the world. But there's so many moving parts when it comes to hiring and managing employees. There's the onboarding, of course, payroll. You got to pay them. And listen, I've got all these podcasts to do. I don't have time for payroll benefits, HR taxes, answering questions, nor do I want to hire a full-time person and then have them do five hours of work a week. No, I have the perfect partner, Gusto. They're the all-in-one payroll and benefit product that's built just for your small business.

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21:49That's my favorite price, folks. Go to gusto.com slash twist. That's Gusto, G-U-S-T-O.com slash twist. What an amazing service and a partner, great partner. You know, I don't want to give away my thinking too much. Like my brain's in this important development stage. and uh so i'm thinking about using it in a really limited way and trying to be creative but again like when i take my tests and i'm applying to college like i know my voice is going to matter and it's going to be proctored anyway so like you know i'm not going to have this edit tool with me when i'm doing those things proctored for folks who haven't been in this system for a long time is when you're essentially doing something by hand and people are watching you take the test you can't you can't cheat you can't have a lily or something up on your screen that's right so um and uh the first thought i had was like what a thoughtful young lady like how incredible it is that you have this much agency to decide how you're going to use AI.

22:35It gives me hope for the future, frankly. I hope everyone's like her. Same thought. And then the second thought that I had was she must have an incredible teacher who helped her understand the difference between good use and bad use. And again, shouldn't every child be able to have that articulate response, that thoughtful way of experiencing technology in the world? Yeah. So I think that captures the story of how I want the world to evolve and students to use AI is have tons of agency and use it for the right reasons and be careful around the risk as well. I bring it up because I was reading your guys' post from August 5th, 2025 called Magic Schools Commitment to Responsible AI Use in Schools.

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23:16And you have, I'll just pull it up so everyone can see it. You have a bit of a kind of like demo text. I think this is what a school district might say to children about how to use AI. And this 80-20 rule stood out to me. It says, let AI handle the initial 80 % of your draft and then add your final touches to the last 20%. Is that a standard rubric that schools use? Or is this just an example that I'm over-indexing on because I'm paranoid about people not being able to write in the future? Mind you, this is not the message for students. That is the message for teachers. Ah, lovely. Okay, good.

23:49So yes, yes. You should be fair to her. I would never say that to students. Like they need to be doing 100 % of the cognitive lifting. Okay. And so that message is when a teacher signs into the platform we let them know that, hey, Magic School can be this incredible augmentation to your work and help you feel really efficient. But be careful about offloading too much of your work to Magic School. Make sure that you're looking at every piece of material produced by the platform before you get in front of children because of the things we know. Like there can be bias, hallucinations. So still trust your expertise.

24:18But yeah, that rule would definitely not apply to students. And that's something that we're encouraging. Makes perfect sense. Just wanted to bring it up while I had you. So just to summarize, what Magic School has built is a series of tools to help educators not only differentiate their lessons to better fit each student, but also just to do more and also provide better, faster feedback to students with tools like the writing assessment. On the district-wide side, you can ingest your own information standards and so forth to create essentially a centralized AI tool to offer to schools. And on the student side, they get better education via more tailored lesson plans and so forth.

24:50Okay. This all sounds fantastic to me. I'm glad things are going so well for the business, but I am curious what's next because you've really touched on a lot of the places where I can see AI fitting into K-12 education in a positive sense. So I'm kind of curious to deal, like what do you want to build the next couple of years? Because one thing you said in your funding announcement was we're going to go build stuff. So I'm really kind of curious what the next year or two of a product looks like for Magic School. So one, like I mentioned before, I think one of the most important things we're going to do is forward deploy our solutions architects, engineers to districts and make this deeply, deeply integrated with their challenges that they're facing every day.

25:25So that's going to be a big focus. And that is not cheap. And then what does that actually look like in practice is kind of where the product will be going in the next couple of years. So one, we think that there is a huge opportunity to contextualize the use of both educators and students with a product. So if you think about like a unified knowledge graph for a student's experience with a product, That could include maybe their grade level, their categorization as a student who has, who needs a certain level of text complexity because there may be a special education designation or an ELL designation or a language learner.

26:04And then all of the tools in Magic School can very much directly support the student in their zone of proximal development. So they're not, you know, the material isn't below their grade level or so far above their grade level that it's inaccessible. But it hits that zone where it's stretching them and helping them grow in a way that is incredibly valuable to, you know, to the student. And it also ends up being really valuable to the teacher because no teacher can carry when they're looking at a student and building that relationship and having that connection. They also can't carry the student's last literacy test score.

26:42their last SAT score, all of the designations they have that can help them learn better. It's really hard to carry all that with you. So can AI be this partner for the educator that helps them understand the students in context of what they can learn, what they love, deeply contextualize to their world? And then on the educator side, Magic School needs to connect with their world more deeply too. If you had a real assistant teacher, you would first train them on your students, their needs, the systems that they worked with, like maybe LMSs. And then you can be more effective as a teacher. So Magic School is going to kind of get even deeper into all those places to be this truly personalized education system for students, as well as a teacher's system for teachers.

27:23If we're going to end up in a world in which there is an AI or an instance of an AI tool per student that knows them from, let's say, K through 12, we're going to need to have relatively robust memory and context tools because, I mean, I love my instance of GPT-5, but it's dumber than rocks and can't forget me telling you, I don't want emojis, please, roughly twice a day. And it just can't hold onto it. So I know we're not at a level yet when I can say, hi, I'm Alex, I'm in grade 11. And it knows that in grade eight, I had a remedial English class or whatever, but I can see us getting there. And then you would have essentially for each student a buddy for, really an assistant teacher for the student at that point, because the AI would know lots about them.

28:10It'd have the context. Yeah, it'd have incredible context and still be driven through the teacher, right? The teacher would still have to ensure that the AI was accountable to the student. This knowledge also ends up being super powerful for the teacher. Like I told you the way that the teacher is differentiating the platform or the materials they're creating through the platform currently, but how incredible would it be if it just auto differentiated for you with the knowledge of each of your class periods. And it did it in a way that was even more precise to the students in your classroom. So it ends up being a really great assistant for the teacher as well, because it has knowledge of all of the students in your class when it makes materials.

28:47That's fantastic. Huh. How far from that do you think we are in terms of bedrock AI capabilities and also Magic School's ability to take advantage of them and implement them and bring them to market? Our technology team would tell you. I think that we're I think we're pretty darn close. We're doing some really, really cool work. I expect that some of these bits of what we're talking about will be available as early as January. And I think that in the next year, it can feel like a wholly different world, especially for the districts that partner with us. They'll get kind of like the earliest like testing and access to these things.

29:27We have really incredible partnerships with the foundation models who are really excited to support us. It ends up being discounted. Do they subsidize? You guys at all, do they offer a discounted access to their APIs because you're actually trying to help kids? Because if I was OpenAI and you guys were using my model, I would try to find some way to shave off a couple of basis points just because you're trying to help kids. You hear that OpenAI? We could use it as Cal. Sam, we've met a whole one time for seven seconds. That makes best friends. Come on. There you go. Yeah, no, we do not. But we have a very sustainable business model that allows us to do this work and great funding.

30:01So it's been, we don't feel like these things are outside of our capabilities. And while they don't give us free tokens, they do end up being incredible supporters of us. Like Anthropic has a beneficial deployments team that supports us. OpenAI has an education team that supports us. So we feel really close to the model providers and they've been incredible partners. All right. All right. One last question to deal before I let you go. The U.S. is one small slice of the world. And I think we're all kind of seeing, you know, peak college student and that's going to trickle backwards into K through 12.

30:31So we're not heading towards, you know, opening tons of new schools in the U.S., I don't think. Which makes me curious when you're going to take this abroad and which markets are going to be the most most second for the product. I mean, I immediately think of similar-ish schools in perhaps Europe, maybe. But what does the world look like to you? So we will absolutely take the step to the world. We have a massive amount of usage internationally without any marketing or direct sales. We do get inbound customers and partners from international schools and places all over the world. One, I mean, it is also kind of the staggering number of U.S.

31:03adoption. We'll find countries when we look at our data sometimes and like the UAE, we have reason to believe like 80 % of educators in the UAE are using Magic School. the UAE is not the largest nation in the world, but 80 % of any nation. That's insane. With no direct marketing, no presence there whatsoever. And that's why the$45 million Series B was led by Valor Equity Partners and Bain, Adobe, Atreides, and Smash all kicked in cash because everyone loves low-cac. Yeah, it is one of those incredible things. People ask us sometimes, like, how do you acquire so many folks? Well, we have this incredible product and legion of educators who want to support each other.

31:40And that ends up being a really big superpower. All right, I deal. Well, I'm not only now less concerned about the state of K through 12, I'm actually more bullish about it. So Godspeed to you and the team. And whatever you do put out in January, send me an email. We'll have you back on to talk about it because it sounds like you have quite a lot cooking. Thanks for coming on. Lots of good stuff coming. Thanks so much for having me, Alex. Your startup needs custom software, but building your own secure production-ready apps is hard, right? And not every founder has the expertise or time to get started.

32:08Well, now you don't have to. Just use Zite, Z-I-T-E. Make whatever you need from idea to a working app in just minutes. Easily. All on your own. Plus, you can fill it in with forums, apps, databases, and other automations that you need as part of your product. So many of the no-code and vibe coding tools are just flashy demos, where they work on legacy systems that take so much time and effort to learn, let alone master. But Zyte is both easy to use and powerful enough to build out the apps you want. And it quickly connects all the other tools you're already using. For example, earlier this month, they added the ability to bulk create and update records.

32:43So it's easier and faster than ever to design data-heavy apps that are constantly syncing between systems. That's the kind of attention to detail that sets Zyte apart. Start using the number one AI-powered business software generator on the market. I'm going to give you 50 % off your first project. Go to Zite.com slash twist to get started. That's Zite.com slash twist for 50 % off your first project. We like to do founder questions here. We have two good founder questions. Let's do it. Thanks for having me, Jason. I really appreciate it. Okay. So number six, we got a founder question I think is pretty interesting.

33:15Yeah. So one person was asking about how long employee shares should take to vest. They were looking at an offer from a company in the hardware realm, and they were offered 0.023 % of the company over a six-year period. And so the question is, is that a standard term that employees should be willing to accept, or is that something you might want to have only for founders that are raising venture capital money? Your take? Six is definitely abnormal. I would say market standard is a four-year vest is fairly typical. There are companies that diverge from it. Like I think probably the most, you know, the extremes on one end, you'd see six or you could see like even I think like the stripes of the world have every year you get an extra tranche of RSUs that vest over a 12 month period, which is a one year kind of vest.

33:59And every year they kind of re-underwrite where you are. But they're kind of a public company. It's a little bit different. They're essentially offering the Google RSU. It's a good point. If you were going to come to a brand name company, they can extract a longer vesting period because the shares are worth more, right? I mean, that makes logical sense. It's not as speculative as an earlier stage company, to your point, Alex. What I would say ultimately is in some sense, a six-year can be good, right? If you believe the value of the shares are going to multiply, presumably if that stock is going up two, four, 10 times, what you're going to be vesting into in the six-year is going to be worth a heck of a lot more.

34:36And so you may be willing to elongate it. But I think to like any negotiation, you need to look and say like, do I believe in this? And is this enough? You know, if you look at the total value of the compensation over the next year, cash, stock, in-kind benefits, does it meet your bar or not? And so while I'd say it's unusual, sometimes it would make sense to take that kind of an offer. But if I were friends with this person, I would say, like, it should meet this level for you. And hopefully you believe, you know, in this company enough that you're willing to wait for six years and want to be there for this period of time to see where this goes.

35:07Six years is a long time. Jason, do you recommend the company is going through the launch accelerator, offer employees four or six year investing schedules? This is one of these like quirky things where founders who are a unique species in the world, I certainly was when I was starting companies, you want to reinvent everything. So you look at a vesting schedule, you look at shares, you look at the convertible note, and you're like, oh, I can innovate on this. And I would do stuff like that. And I would like over negotiate like totally meaningless things early in my career. And, you know, at some point, I think Ruloff said, you know, my best advice over at Sequoia is the best advice, just keep everything standard.

35:43So then when people ask you to do weird things on the other side, you can say, I prefer standard and everything I do is standard. So if you're not Elon or Coulson brothers or somebody like really unique in the world, maybe keep it simple and focus on the product innovation in your product, not in the legal documents. A great example of this would be Bezos at Amazon. He went with this like five, 15, 40, 40, I think is what it was where you first year you get 5%, next year you get 15 % of your equity grant and it's backloaded. What this does is lets the company, if they really value their shares, say, you know what, we assume some number of people aren't going to make it to year three when really the magic happens and you tip over from being a drag on the company where we're investing in you to you're actually providing massive value for the company because you've learned how to be an executive here.

36:30You've got executive training, but you're Bezos. You can get away with that. And also it's a bit of a test because if somebody argues that on the other side, Eric, you would be like, okay, why does this person want it? The biggest tell I ever did was like one time in my career, somebody told me it was standard to give people like six months severance or three months severance. And I did it. And like I gave them three months severance. And literally the person became a disaster six months in. And I was like, oh, my God, they're working for their severance package. And so then I just told everybody, you know, in startups, you don't get like a there's no such thing as severance in a startup.

36:58If you do a riff or a layoff, sure, you can give people severance. But I'm talking about like if you leave and you're or you're fired, you don't get severance. I mean, that's like for Tommy Mottola at Sony or like some, you know, I don't know, Barry Diller at Columbia Pictures or something. Like that's something a major executive can extract. So anyway, it's a really interesting question. I would keep it standard just so that you can focus on other things. What I do like, I don't know if you've done this, Eric, with like high performers, but somebody's a high performer. You just layer on a parallel grant.

37:25So like, you're like this person's killer. Like year two, you're like giving you another four year grant. So now you have them for six. Yeah. You know, you have just overlapping ones. And then it gets really costly to leave if you're that employee because you got double grants. You've done Eric. That happened to be my last job, Jason. They layered on extra merit comp on top of my salary. And I was like, well, I guess I'm never leaving. But sometimes people do leave. And a question that I wanted to ask today, Jason, is what happens when a co-founder exits a company? Well, before we get to that one, I want to ask Eric if he's done the layered grants.

37:55First of all, yes. And I agree with your advice. I think innovating on the business model, what makes you different, really good idea. In general, I think what you and Rulof and everyone is saying is right. Keeping it easier just reduces friction to people getting to say yes. And frankly, too, there are some people in your business that like they are not twice as valuable or four times as valuable. They will be 50 times as valuable. And once you find it, like hold on, invest and spend against it. Because frankly, one, you should do the right thing for people who are just care at the level and can have the impact.

38:28But second, it's just very clearly good business. And so that's where I think you should hold the equity to invest in those situations.

38:38We have a friend from the Gamma Pitch Competition. I'm really excited to bring up Chris Canetti. He's the founder and CEO of a company called On The Fly Energy. And Jason, I was initially skeptical until I realized what they're building. And then I became an enormous fan. Please, everyone, welcome to the show. It's Chris. Chris, hey, how you doing? Good. How are you? Welcome to the show, Chris. Chris, why don't you go ahead and put on your presentation here, Powered by Gama. Great way to do AI presentations that look really sharp and crisp. We'll have you pitch us here, and we'll give you a little feedback.

39:10Hi, guys. I'm Chris Gennady, founder of On the Fly Energy, and I'm here to tackle one of today's toughest emerging challenges. We take electricity for granted until the lights go out. Our grid is fragile, and a split-second fault can knock out critical infrastructure, and AI data centers are making this worse. GPUs swing from 0 to 100 % in milliseconds, destabilizing the entire system. The data solutions all fall short. Batteries are expensive, degrade, and can burn. Diesel generators are slow and maintenance heavy. Take, for example, last summer in Virginia, a lightning arrestor failed, forcing 60 data centers offline in an instant, nearly triggering a cascading blackout.

39:42Industry and AI alike need resilient energy storage, and that's the gap that on-the-fly energy fills. Here's our solution. The rotor seed is a 10-kilowatt-hour modular flywheel that installs like a backup battery, charging, storing, and releasing energy. Rotor seeds stack into rotor pods and scale into the rotor farm, capable of delivering megawatt hours of distributed protection for everything from a single server to the local electric grid. On the fly energy is built for America's backbone, where uptime is non-negotiable. Rotor seed delivers instant, fire-safe backup and conditioning for sectors that matter most with over two decades of life, and it's built in America to strengthen energy independence.

40:13Now, we're targeting over a$100 billion energy market, consisting of over 100 ,000 U.S. facilities, from AI data centers to manufacturing hubs. All where batteries fail, diesels lag and uptime is priceless, leading to capture just one-tenth of a percent to get to$100 million in market share. On-the-fly energy wins where it counts. There's no fire risk, no degradation, no 30-second lag or upkeep like diesels, and scalable beyond capacitors for real long-duration protection. It's simply a better spin on backup power. The rotary seed units are offered as a monthly subscription and collect revenue on demand shifting and energy delivery.

40:42Additionally, we plan on offering utility support and active AI energy optimization, all with a straightforward upgrade path that grows with the customer's business. Now, what makes this model powerful isn't just lease storage. It's the network functioning as a virtual power plant to help regulate the grid. We don't compete with the utilities. We help power them. Paths to market. So far, we've built our proof of concept to validate the core physics design and functionality. In early 26, we'll conduct MVP trials at beta sites. In 27, we plan a small commercial launch targeting telecom and small data centers.

41:09And in 28, we expand into large AI data centers and full grid scale storage capacity. I'm Chris Connetti, the hands-on founder of On the Fly Energy, Inc. And for nearly a decade, I've built automated manufacturing solutions at companies like Tesla and other startups. I still run a small machine shop out of my garage, and my teammate Justin Osborne brings deep electrical controls expertise. Together, we're building on-the-fly energy with AS9100-level standards and automation from day one because engineering, quality, and manufacturing scale. On-the-fly energy, we're tackling a$100 billion market with hardware that outlasts batteries, outpaces diesel, delivers protection where America needs it most.

41:41The grid's future doesn't burn, it spins. Thank you. All right. I'm a little confused as to what the physical product is. I understand the problem. Yep. People need extra energy. I understand there's a flywheel involved and there's like a cutout of it. What is this physical product that you're making? Yeah. So the physical product is essentially a battery energy storage system, but with a kinetic energy storage rather than chemical. So we're storing rather than lithium batteries, we're storing in kinetic energy form. Explain what that means to somebody who's not an expert in this. You're basically putting batteries into data centers, but they're different types of batteries?

42:20Essentially. So rather than a lithium battery, which stores energy in chemical form, we're storing energy in kinetic form, which is a flywheel that spins. And so you take that excess energy and you put it into the form of inertia and you spin a disk around really fast. And then you can pull power from that or buffer power into it, whichever way you need to level out these spikes that the AI dinosaurs eat. So, Chris, a question about that, because there's always going to be some friction in stored momentum. So how much if I had this wheel, which it appears to be spinning very quickly in my data center, just waiting for me, how much energy do I have to put into it to keep it at max kinetic energy potential?

43:00So depending on the size of the system that you're using, we see about a 95 % return currently from the power that you put in to the power that you get back out. And that's in our... Sounds very good to me. That is pretty good. Okay. So 95 % of the energy that I put in, I get to take out. And because it's a spinning... Is it iron? What's the actual thing that's spinning made? It's a carbon fiber composite. That sounds light. Wouldn't you want something to be heavy and kind of... It is light. But so where you wind up storing, because the way that energy stores in kinetic energy is it's a to the power math equation so that every RPM that you can gain is actually a significantly larger amount of energy that you can store.

43:38So if you can spin faster and not have the material weakness that, say, steel or something heavy would have, you can actually store significantly more than you could in just a heavier mass. And how big is this rotor seed, the 10 kilowatt hour module that you're describing? If I went to put it in my hands. Yeah, so the current version that we have is basically an 18-inch diameter by an 18-inch long length, and that makes the 10-kilowatt-hour base unit. That's not very big. It's not very big. Does it vibrate? It does not vibrate. It is on magnetic bearings. So you can stack these. You can stack these into something, say, like an ISO shipping container or another form factor like that that's easy to distribute if needed.

44:18So as long as they're not moving, there's no pushback from the wheels motion itself. So, okay, that's pretty awesome. What does it cost to build one of these? Right now, the prototype that we're at right now is sub 10K. And I'd like to be significantly lower than that, looking at what the business model is going to wind up being for ROI potentially being in the one to two years. Okay. And then for a 10 kilowatt hour battery, what does that cost today? So a 10 kilowatt hour battery can cost you anywhere from$10 ,000. If you get it really cheap and you're doing, you know, getting a little scrappy and you're buying 18, 650 cells off of eBay, you can do it for probably a couple thousand dollars and if you do it the uh legitimate way and say you're buying like a fesla powerball that's pretty close to a similar uh energy density you're probably in the 10 to 15 000 okay so this is interesting i i asked producer claude to explain to me like a 10 year old because you know i just still not getting it i mean i was getting it but it's like spinning a top you have this thing that you start spinning like a top so you put some energy into it it spins you don't need to keep adding energy to it it keeps the spinning going through magnets etc yep then when you need it it slows down and slowly lets that energy back out so they use this in space and on roller coasters and buses this is the other use case for this technology yeah so the original the original bit of this technology it did exist in buses, I believe, before the trolleys in SF existed, is by understanding that there were large mass spinning flywheels that existed.

45:55Wow. So this is like you're bringing back an old energy source with new modern materials. So genius. So I think like as an idea, it's extraordinary because people need more energy and they need more backup energy. So data centers have a ton of money to spend. So that's the best place to go right now. And there's cheap energy available when you want to fill these up, right? At certain times during the day. So you can do that arbitrage. You can fill them when energy is cheap, correct? Exactly. You can fill them when energy is cheap. And then you can also do this little bit where you're getting to condition these AI power loads that like to spike and then drop loads.

46:36Every time someone wants to generate their image, the AI data center goes up, that usage on the grid goes up. And the grid was really built for a pretty continuous load system. So we can kind of do this as the energy arbitrage with the virtual power plants, and then you can also condition the power that's going into the building. So let's say the AI data center's load is actually all over the place, but you can basically make it so that this is the buffer zone between the AI data center and the grid. So the grid sees the constant. We saw this, Jason, with base power and Zach Dell. Oh, yeah, sorry.

47:09No, no, go ahead, finish it. Oh, I was going to say, we just had base power on, Chris, a couple of shows ago, and he was discussing how they were putting batteries in front of houses in the grid and how that would also dampen the spikiness of the overall grid that we lived with. And being that I'm in California, I can't do kind of the same model that they were doing. California's energy grid is a little different than ERCOT. So we're targeting - ERCOT being Texas's. Yes, being Texas's. Which is completely deregulated and you can add and take energy out in a much more fluid way. Yes, they're much more free.

47:43Much more free. So I guess, would this also work for air conditioning in places where it's very hot? So you go Mexico City, Dallas, Houston, Austin, Phoenix, all those kind of places where you have really 100 days of 100 degrees or hotter. You have these things attached to buildings. at night they fill up and then during the day instead of hitting the grid when i think it's a 5x price difference yep you could power all the air conditioning you can do exactly that and something that if you weren't what there's a model like that or you can do something that's following what's the duck curve is basically we get a lot of solar cheap energy right when solar is peak and there's really not a whole lot of residential load at that point and you get a tail end of the duck that curves up that is a high demand peak right when solar and generally solar starts to taper off.

48:40You can kind of play that arbitrage game where you're going what makes the most sense to charge up? Do you charge up at night when the base load is steady and the peak is really low? Do you charge up when solar is really cheap in the middle of the day and there's not a high demand and you store that for a few hours and you can dissipate that when everyone's coming home and turning on their AC? and then across the industry there's uses for this all over the place one of the one of the other sectors that i'm looking at but we're not focusing on that because we're focusing on the ai data centers are starting trying to get ourselves into it you look at um all these ev fast charge systems that are being installed places it takes 12 to 24 months to get these uh utility and permits set up to be able to do these fast chargers and some of them don't have the support to be able to to do 250, 350 or 500 kilowatt chargers.

49:29So you can do kind of this portion where even a kinetic energy storage system or just a battery energy storage system sits between the grid and this fast charger. And your technical site could only have a 100 kilowatt hour hookup, but you could have multiple 150 or 250 kilowatt hour chargers because you can charge this and level out that peak. You're basically doing the same thing that you're doing with the data centers, trying to make this a level energy draw for a longer period. And then when you get a load, say, a vehicle showing up and wanting to fast charge, that's your spike, but you're buffering it with the battery energy storage so that the grid doesn't see it.

50:04And if you... That's the duck curve. And here's the duck curve, as you can see. Yep. You know, in the morning, 9 a.m., then it goes 12, 3, and 6, the energy usage can go down. And you're like, wait, why is it going down? Well, people return home, solar stops working, and you peak - Right at the worst time. At the worst time. So the sun goes down, everybody returns home, Alex. They decide to do a load of laundry. Maybe they put the air conditioner up, or I guess they could also put their heat on. Sure. And it looks like a duck. And that's - It's a brilliant technology, but also it just goes to show how complicated the power question is between baseload power, variable power sources, and storage.

50:50But between exowatt storing industrial heat, base power doing batteries at the house, and hydro storage doing compressed air energy storage, and now we have on-the-fly energy using flywheels, Jason, I'm actually a little bit optimistic right now. You know, here's the thing. We talked a little bit earlier about truth and the search for truth and how, you know, generative AI during this weekend protests or anything, you know, during the debate over the southern border. People can use data sources that aren't true to try to manipulate and or fight for their position or their tribe, whatever it is.

51:28And with energy, one of the interesting things is the data is the data, Chris, right? There's a price of energy that you cannot fake. Yep. And it's well metered and it's reported at most places, easily accessible literally with ercott you can pull up ercott's data in real time alex because it's a real-time exchange of energy so when you know i'm interviewing chris wright and we're talking about you know the the administration's love of clean beautiful coal and you know solar is intermittent and then elon is saying well look solar is the best thing in the world because you You can just build it and it's cheap and clean and it's free.

52:09And then other people are like, well, what about geothermal? Or you have a new technology or a new approach like base power or here, what Chris is doing. You can just start to pull together reality by just looking at the data. Chris, it's become very political and very sharp elbowed. What's your take on overall if our country needs to invest a massive amount of money in energy? And you were in charge. I make you the energy secretary. How would you think long term? And when I say long term, you know, 10, 20, 30 years for America. And let's say you have a trillion dollars you're going to deploy over those 30 years.

52:55Just on a percentage basis, where would you, you know, hey, get us the short term energy. get us the midterm, get us the longterm? How would you advise doing it? Obviously you have your own book and that's a portion of it, but just broad strokes, what should we be doing with energy? I'm sure you think about this all the time. I do think about it all the time. And kind of the broad strokes, the way I see it is kind of like you mentioned. So short term, we need a solution right now. Whatever that looks like, whether that be natural gas, peak or power plants, I don't believe that coal is the solution.

53:24Maybe we're looking at other other forms there's uh all these solar wind renewable things and if you can have a way to store it that's kind of where on the fly energy is falling in you get to get to uh play on that game but then on the broad stroke as we're going america needs energy independence and how do we get there we really need to be self-reliant and if that means we can generate all of our energy as we need it and store it i mean that's the biggest thing if we can have renewables and be able to take out the downside of renewables that is production fluctuation and unpredictability depending on where it's at and being able to store that and being able to redistribute that across the grid to where you need it.

54:04That's kind of the solution that I see. So if you could do other renewable options being wind, solar, and then kind of base load with nuclear power, you'd be able to cover that entire grid and be able to be essentially entirely interdependent as a country. Okay. I have a question about scale here because in your your deck that we went through uh which by the way very nice appreciate that uh it looks like a small device 18 inches by 18 inches spins inside of it very very cool why not make a really big one like i mean huge like uh why can't we make one of these at a city scale for example so the physics of it get really limiting so kind of what has advanced in the last 50 years from the heavyweight flywheels um is really a materials question and where we've come is these composite high-tech aerospace materials.

54:53And what you're getting is a higher strength option here so that you can spin it faster and faster. And one of the limiting stresses here is basically how fast the surface of that rotor is actually spinning. So the larger diameter you make this, the faster the surface speed actually winds up going. And because that higher surface speed is there, there's something called hoop stress. And I'm hoping Claude will hop in here and give you a little definition. that hoop stress is basically a function of the tensile strength material that you're making it out of on the outside diameter. And it's basically what's trying to burst this thing.

55:27It's basically why, like a hot dog, when you cook a hot dog, why a hot dog splits down the seam and doesn't split in half the other way. So what if we put a large iron rod, like an old wheel, around the edge of the... I'm kidding with you. But my question is, why do we have to make this in small units? Why can't we just make large ones? Well, we can make large units, yeah. You can make significantly larger ones that are, uh, power density actually works out kind of similar, but you'd get other, uh, scale factors where you'd have lower, lower, uh, number of components that go into it. Okay. Well, I'll, I'll, I'll just say, I like the small ones.

55:59I like the big ones. And I think, you know, AI data centers is a great place to start because it'll attract investor attention. There's a lot of money there, but also like I want one for my house. Cause this sounds awesome. Like the first prototypes. Yeah. Chris, what's the story here with funding? I mean, I'm not an investor in this company. I feel like this is like a, going to be, if you figure this out and it actually works, you've raised a lot of money so far. You're funding it yourself. You were at Tesla previously. I'm funding it myself right now. Really? Yeah. That's my kind of founder.

56:26What's going on here? Maybe I can, can I, you got to, can you save a slice for JCal? I might want to get in. I will save a slice. I'll put a little sticky note right on the, uh, the cap deck for you. I'm not saying like I have to have the whole pie. Like if you order a giant pie, I'm just, you can even cut me a half a slice is better than no slice. I love what you're doing. This is great. Uh, let's stay in touch. And thanks to our friends at Gamma for making great pitch software and then helping us find great founders like Chris and great startups. Really well done. You can build amazing presentations in just minutes using Gamma.

57:01And they hosted this incredible pitch competition, which Chris, I don't know, you might be the leading, you might, you might wind up taking this down and winning. Hey, I'd love to hear that. Oh, okay. Maybe I'm intrigued. All right, Chris, great job. And we'll talk soon. Let me know when you're in Texas. Thank you, guys. Yeah, come on. We'll do. Let's get some, I'm going to take you out for some barbecue and try and weasel my way onto that cat table. Great, great job, Chris. I'll drop Chris off. And if you're feeling inspired, head to gamma.app, A-P-P, G-A-M-M-A.app. So you can start working on your idea and you can change the world like Chris is doing.

57:40And maybe we'll see you on a future episode of This Week in Startups. Well done.

From the publisher

Are AI tools in the classroom just time-savers, or can they have genuine educational value?In a must-watch TWiST 500 interview, Alex chats with Magic School founder (and former principal) Adeel Khan about how AI tools can make teachers more effective, and keep students inspired, without just doing all the work for them. He talks about turning an AI chatbot into a true assistant teacher, that keeps the lessons balanced yet challenging, and particularly empowers classroom novices and non-professionals.THEN… is 6 years too long for employees to wait to vest? Is this just another founder trying to reinvent EVERYTHING, just because they can’t resist? Ramp CEO Eric Glyman joins Jason and Alex to answer pressing founder questions from viewersPLUS there’s a new entrant in our Gamma Pitch Deck competition, and it’s so compelling, Jason can’t wait to invest! Kris Canete of On the Fly Energy tells us about America’s fragile power grid and his elegant solution: flywheel energy storage!Timestamps:0:00 - Welcome to TWiST!02:59 - Former principal Adeel Khan of TWiST 500's Magic School AI tells us why “teachers are magic”09:41 - Goldbelly ships America’s most delicious, iconic foods nationwide! Get 20% off your first order by going to Goldbelly.com and using the promo code TWiST at checkout.10:50 - How AI tools can particularly help out classroom novices and non-pros who are just getting started20:57 - Check out the online payroll and benefits experts with software built specifically for small business and startups. Try Gusto today and get three months FREE at Gusto.com/twist.26:58 - How Magic School stays ahead of shifting standards across different states and regions32:57 - Zite is the fastest way to build *business software* with AI. Build apps, forms, websites and portals that connect to the tools you already use. Go to *zite.com/twist* to get started.33:30 - Why the best feedback Adeel ever got came from a teenager36:30 - Making AI a true assistant teacher, that keeps lessons balanced yet challenging38:38 - Is a 6-year vesting schedule too aggressive? Eric Glyman responds.41:00 - When even ambitious founders should sometimes just accept a standard deal.57:33 - What IS flywheel energy storage?01:00:00 - Why Jason loves the Fly Energy Gamma pitch and wants to invest right now.01:34:13 - Gamma Outro*Subscribe to the TWiST500 newsletter: [https://ticker.thisweekinstartups.com](https://ticker.thisweekinstartups.com/)Check out the TWIST500: [https://www.twist500.com](https://twist500.com)Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp*Follow Lon:X: https://x.com/lons*Follow Alex:X: https://x.com/alexLinkedIn: [⁠  / alexwilhelm  ](  / alexwilhelm  )*Follow Jason:X:   / jason  LinkedIn: [  / jasoncalacanis  ](  / jasoncalacanis  )Great TWIST interviews: [Will Guidara,](   • Lessons in Unreasonable Hospitality with W...  ) [Eoghan McCabe](   • Great Builders & Success First with Interc...  ), [Steve Huffman](https://podcasts.apple.com/us/podcast..., [Brian Chesky](https://podcasts.apple.com/ca/podcast..., [Bob Moesta,](   • Decoding Customer Insights, Trust, and the...  ) [Aaron Levie](https://podcasts.apple.com/ca/podcast..., [Sophia Amoruso](https://podcasts.apple.com/ca/podcast..., [Reid Hoffman](https://podcasts.apple.com/ca/podcast..., [Frank Slootman](https://podcasts.apple.com/ca/podcast..., [Billy McFarland](https://podcasts.apple.com/ca/podcast...)*Check out Jason’s suite of newsletters: https://substack.com/@calacanis*Follow TWiST:Twitter:   / twistartups  YouTube:    / thisweekin  Instagram: [  / thisweekinstartups  ](  / thisweekinstartups  )TikTok:   / thisweekinstartups  Substack: [https://twistartups.substack.com](

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