THIS WEEK IN AI: Anthropic SpaceXAI Deal | Elon vs OpenAI Trial

Ejaaz: This is the most ridiculous turn of events. No one saw this coming. Ejaaz: Two of the biggest rivals in AI, SpaceX and Anthropic, are teaming up to take Ejaaz: down Sam Altman at OpenAI. Ejaaz: And the reason why this is so ridiculous is literally a month ago, Ejaaz: Elon was posting tweets like this. Ejaaz: Anthropic hates Western civilization. What else have we got? Ejaaz: We've got your AI hates white Asians, heterosexuals, and men.

Ejaaz: This is misanthropic and evil. all the way to today or yesterday where he announced Ejaaz: that I've reviewed Dario, I've spoken to the senior team at Anthropic, Ejaaz: and I have determined that they are in fact not evil. Ejaaz: And Claude, I quote, will probably be good. Ejaaz: This is a huge ton of events. They've signed a big deal where Anthropic is going Ejaaz: to buy $5 billion worth of SpaceX's GPUs, also known as Colossus One, Ejaaz: their first major data center.

Ejaaz: And in turn, they're going to double everyone's Claude restriction limits. Ejaaz: And Claude is finally going to catch up with OpenAI. Ejaaz: I am shocked that this partnership is happening, but it's great to see. Josh: You got to love a CEO that changes his mind. The guy who hated Anthropic, Josh: he spent a week with them and he was like, you know what? These guys aren't that bad.

Josh: What did he say here? He says, so long as they engage in critical self-examination, Josh: Claude will probably be good. Josh: He said, everyone I met was highly competent and cared a great deal about doing the right thing. Josh: No one set off my evil detector. So he went, he did some background checks and Josh: he said, yeah, we'll give you the entire Colossus One data center. I'm now your landlord.

Josh: That's a really funny turn of events. I think it's important to highlight the Josh: context of why this is so important for anyone who has been following along. Josh: Anthropocos had a really difficult time keeping up with their compute demands, Josh: mostly because they have grown so quickly. Josh: In fact, yesterday at Claude's coding event, we had a clip from Dario who was Josh: kind of doing just a general state of the union.

Josh: And he shared with the public that anthropic was off by a factor of eight in Josh: projecting their growth. So over the course of the year, they projected Josh: For about a 10x multiple on the amount of compute they would need. Josh: The reality is that this year alone, they are now guiding for 80 times what they were expecting. Josh: A full 8x multiple higher than what they were projecting. Josh: So therefore, they had a big problem. They couldn't serve the compute.

Josh: The quality of Opus was getting much worse. They needed compute. Josh: Where is the only large coherent cluster that's sitting dormant? Well, it's owned by XAI. Josh: It's owned by the SpaceX team, and they signed a deal to give them the entire thing. Josh: So the whole Colossus 1 cluster that XAI was using to train their early models is now run by Anthropic. Josh: And as a result, like you mentioned, DJAS, they doubled the rate limits.

Josh: And now Colossus 2, which is the new largest cluster, that's where SpaceX AI Josh: is going to be training their new data centers. Josh: Now you'll notice I said SpaceX AI and not XAI, because as of yesterday, Josh: XAI has been depreciated. It no longer exists.

Josh: SpaceX is kind of rolling everything up into one. And now they are working together Josh: right down the street anthropic is serving ai from one data center and spacex Josh: ai is serving data from the other and this is a pretty big change of heart in Josh: the ai race this is a big deal Ejaaz: There's so many stories wrapped into this one story both positive and perplexing Ejaaz: to me that like i don't know i'm just gonna uh mind dump on you for a bit josh

Ejaaz: and like let me know where where you think i end up okay so Ejaaz: Number one, SpaceX has been, or XAI, has been trailing behind the frontier labs, Ejaaz: right? They didn't have enough compute. Ejaaz: We haven't had a good pioneering grok release for like ages at this point, well over a year. Ejaaz: And so the idea was, okay, if you amass enough GPUs, you can create a better Ejaaz: model. But that hasn't been the case.

Ejaaz: And an article broke last week that said that XAI hasn't even been utilizing Ejaaz: all their GPUs. In fact, 11% of the million GPUs that they have hasn't being used for Grok. Ejaaz: And the idea here would be that Grok just isn't as in demand as some of these Ejaaz: other models like Claude and ChatGPT. Ejaaz: So now we see Elon pivoting to a NeoCloud to become an AI compute infrastructure provider.

Ejaaz: And this isn't the first time that he's done it. Literally two weeks ago, Ejaaz: he signed a deal with Cursor to do the exact same thing. Ejaaz: And that, by the way, was for Colossus 2. So although we're saying he's using Ejaaz: Colossus 2 to train Grok models, he's also sectioning off a portion of that Ejaaz: to allow Cursor to build their own coding model.

Ejaaz: Now, that's a bit of a different deal because the agreement that they've signed Ejaaz: is if Cursor builds a really good coding model, hey, could you like lend that Ejaaz: to XAI for Grok as well so we can pass it off as a code code competitor? Ejaaz: So that's a little more symbiotic between the two companies. Ejaaz: But for Anthropic, it's pretty clear. Anthropic pays $5 billion for Ejaaz: Elon gets to register that as revenue so that, you know, XAI makes a bunch of money.

Ejaaz: And for Anthropic, they get access to 300 megawatts of power this month. Ejaaz: That is a crazy amount of power to have online. And it's pretty clear from Dario's Ejaaz: words in that clip that we just showed, which is that Anthropic has been lagging behind on compute. Ejaaz: We finally have the answer as to why we don't have clawed midos. Ejaaz: In my opinion, it's not because it was too dangerous. Ejaaz: It's because they didn't have enough compute to serve it in the first place.

Ejaaz: And Living Proof is literally their biggest rival, OpenAI, which delivered 5.5 to everyone. Ejaaz: And it is called Mythos Little. So the story writes itself. Josh: Yeah, now Anthropic, they're basically serving compute from every single hyperscaler. Josh: They have a deal with AWS, with Google, with Microsoft, with NVIDIA, Josh: with FluidStack, and now SpaceX.

Josh: And SpaceX is the most exciting, the most noteworthy of these, Josh: because this seems like a pretty large pivot in their business model. Josh: Now they have Colossus 2, which is currently 500,000 coherent Blackwell chips in a single cluster.

Josh: That's the most powerful in the world so hopefully we start Josh: to see some amazing stuff coming out of this SpaceX AI team Josh: but more importantly when you look at the SpaceX business model Josh: that's performed so well it's very much a services industry they're taking Josh: satellites and they're blasting them into outer space and they have their own Josh: business built on top of it with Starlink but they are that service provider

Josh: and owning the rail has proved to be very lucrative as a business model now Josh: what SpaceX AI is doing currently is kind of the same thing but early stages Josh: where they have this infrastructure they're incredible at building data centers Josh: faster than everyone else. Josh: And now they're leasing it out to other people who need it. Josh: This applies further out with space as well.

Josh: Now, in the announcement that they spoke about, they very clearly mentioned space AI data centers. Josh: Anthropic is very excited about this. And it seems as if they're going to be Josh: working together as well for the space part of the deal.

Josh: So once that Starship 3 rocket comes online this year, once they start getting Josh: payload into space and they start launching satellites, Anthropic is going to Josh: have data centers on those rockets into outer space to help with their compute needs.

Josh: So not only is SpaceX AI currently sitting on the largest coherent cluster of Josh: GPUs with Colossus 2, but Josh: They now own all of the rails and the only way of getting compute into outer Josh: space for themselves, but also for every other company in the world who's going Josh: to need more data centers that are going to need to go out in outer space. Josh: It's a pretty amazing business they have. Ejaaz: I think this is a great move for Elon on Xair.

Ejaaz: And I'm in fact more bullish on Xair after they've made this announcement because Ejaaz: Elon is just doing what he does best. Ejaaz: He does a zero to one innovation and then he scales the crap out of that. Ejaaz: He did that with electric cars. He's doing that with humanoid robots, Ejaaz: and now he's going to do that, hopefully, with compute. Ejaaz: No one has built a data center as large and as powerful as he has in the time that he has.

Ejaaz: Do you know what I mean? So he just has a very impressive knack for scaling things. Ejaaz: I want to share this tweet, which I think summarizes this entire story with Ejaaz: a nice bow tie, which is, XAI is a middling frontier lab and an incredible world-class infra provider. Ejaaz: Anthropic is an incredible frontier lab and a middling infra provider. Ejaaz: They had to join forces in order to defeat OpenAI, which is both a good frontier lab with good infra.

Ejaaz: And that's very much how I see this playing out. Anthropic needed compute. Ejaaz: XAI has a lot of compute needed to sell it, so it works vice versa. Ejaaz: It's important to note that having Anthropic as one of your major customers Ejaaz: for compute is probably one of the biggest compliments you can get. Ejaaz: I just want to point out that Amazon, Google, and I believe Microsoft's 50% Ejaaz: of their compute backlog is purchased by Anthropic themselves.

Ejaaz: So Anthropic is trying to get their hands on all the compute that makes sense. Ejaaz: And this is just another partnership that enables that. So cool to see. Josh: Yeah, they're trying to play catch up and it seems as if they have this. Josh: It's funny. This was literally the only way they could have got it. Josh: This is the only compute cluster of this size available on earth for them. Josh: And they somehow managed to secure it.

Ejaaz: Well, actually, Josh, there is another company whose stock has been underperforming Ejaaz: for the last month, who also has the second biggest cluster or data center, Ejaaz: and might also do the same thing because their AI products aren't in demand. Josh: You guess? Oh, can I take a guess? Yeah.

Josh: Speaking of products that are not in demand, we have meta who has Josh: also spent a tremendous amount of money on ai and compute and has yes nothing Josh: to show for it or not much at least so is that who comes next is this the new Josh: type of business model did like spacex just start the new thing like hey if Josh: you suck at ai perhaps you can just like use our compute until we figure it Josh: out and you pay us a lot of money for that i

Ejaaz: I can do you one better um meta actually announced on their previous uh earnings Ejaaz: uh zuck in a note to to the public said, Ejaaz: we're making this massive bet because we can't afford to lose the compute race. Ejaaz: But in the event that our AI products aren't in as demand as we project, Ejaaz: we can just resell that compute to all the other AI labs that need it. Ejaaz: So he's preempted what Elon and Anthropic announced yesterday.

Ejaaz: So I think Meta's next and it might actually be bullish for the stock, to be honest. Josh: And this gets back to our bubble episode from yesterday, which if you haven't Josh: watched, I highly advise. Josh: But basically, so long as the demand is there for tokens and people are willing Josh: to pay for that, everything works. Josh: So as long as we can continue to build valuable tools, people will figure it out.

Josh: The tokens will get allocated and things will be good. Now, what I found interesting, Josh: most interesting about this Elon post is the fact that he said he spent last Josh: week with the Anthropic team because he had a very busy week, Josh: clearly, because he was doing other things as well, Josh: most notably the trial that he's currently involved in.

Josh: So he has been going to trial with Sam Altman, Josh: OpenAI against each other, debating whether or not it is Josh: okay for open ai to exist as a for-profit entity Josh: when it started off as a non-profit now thankfully as Josh: we always do with these court cases we get some good banter we get some Josh: good clips and we get some good intel in this case Josh: we have texts from mira marati which for those Josh: of you who are not familiar she is one of the co-founders of open ai who

Josh: has since left to start their own uh business called Josh: thinking machines but we have these texts that happened in real time as sam Josh: altman was getting fired from open ai if you'll remember this was what two years Josh: ago now uh sam was actually fired as ceo of open ai and completely kicked off Josh: the company shortly after they brought him back but these texts i read were Josh: so funny because it gives you an inside look

Josh: Exactly what was happening as the news was going down. So Sam Altman texts Mira. Josh: He says, can you indicate directionally good or bad? Josh: Satya and others are anxious as in Satya Nadella, CEO of Microsoft, Josh: who is the largest stakeholder of OpenAI. Josh: Mira replies, directionally, very bad. Sam goes, okay, can you wrap up soon? Josh: Lots of pressure from Microsoft for an update. Josh: And then Mira just goes, Sam, this is very bad.

Josh: And this is a series of a lot. Sam's like, can I come in?

Josh: And then Mira says, they don't want you to. And then Sam says, what Josh: do you want to make it better i'm still willing to just walk Josh: away if that helps if they are ramped up for crazy lawsuits against me Josh: then i'm not sure what it's just so funny to see into his mind as Josh: this is going on and you kind of just see the chain of thought of a ceo it's Josh: really funny he asked like can i come in and talk about a path forward with

Josh: them they're saying no they need more time and it's it's really funny and then Josh: the one line that has turned into a meme is mira mentioning the new ceo who Josh: they put in place and the new ceo was um she says Josh: This new guy is a random Twitch guy. And it turns out that random Twitch guy Josh: was Emmett Shear, who is the guy who turned Twitch into a billion dollar exit and very successful. Josh: And he turned it into his ex-header profile background.

Josh: And it was just, it's a very funny story seeing the inside look at what the Josh: communications looks like during a time as chaotic as this one. Ejaaz: They're just all human. That's the best part about these lawsuits is we just, Ejaaz: the public gets to gossip on all of their texts, which just get revealed. Ejaaz: Now, the other personal text that was revealed, especially over this week, Ejaaz: was Greg Brockman's diary.

Ejaaz: Now, we referenced this in a previous episode that we did literally last week Ejaaz: covering the first couple of days of the trial. A lot has happened since. Ejaaz: A few things, a few highlights that I want to point out. Number one, Ejaaz: this lady that you're looking at on the screen right now, her name is Siobhan Zilas. Ejaaz: And she is a partner to Elon. Ejaaz: They've had like four kids together, But she's also a genius. Ejaaz: She works at Neuralink, I believe.

Ejaaz: And she was brought on as a witness by the Musk team to basically testify that, Ejaaz: you know, in the early days, because she was involved in the whole OpenAI founding Ejaaz: and she did a bunch of work for Elon at that point. Ejaaz: She wanted to point out that, like, you know, they being Sam and Greg Brockman Ejaaz: had issues or intentions to make it a full profit eventually and to testify against Sam's nature.

Ejaaz: She was brought to the witness stand, as well as a host of other Musk team witness candidates. Ejaaz: Now, the other revealing thing was Greg Brockman's diary was exposed, Ejaaz: and he explicitly says in that diary or in his list of exchanges with Sam that Ejaaz: we should kind of be strategic about when we turn OpenAI into a for-profit. Ejaaz: I don't want to do it whilst Elon is involved or is a stakeholder.

Ejaaz: Otherwise, it would seem like we are ousting him. So literally the case that Ejaaz: Elon Musk's team is making is being proven in the words that Greg is saying. Ejaaz: Now, his response to that in court was... Ejaaz: I was just referring to it being when it turns into a billion dollars. Ejaaz: Not my $29 billion, sorry, not my $30 billion stake that I currently own in open air right now. Ejaaz: And Musk's team is basically saying, you own $30 billion worth of open air.

Ejaaz: How is this not a full profit? Like, how are you not somewhat incentivized to Ejaaz: cash this out and make more money or turn it into a full profit? Ejaaz: And his response was, I was just talking about making a billion dollars, Ejaaz: not the extra, you know, $29 billion to which Elon's team responded saying, Ejaaz: why don't you donate the $29 billion then? Ejaaz: Like, and we can settle this lawsuit up. And so there's a lot of like, Ejaaz: back and forth going on between them.

Ejaaz: Now, it's been very Elon centric in the news for this court case in particular, Ejaaz: because Elon's been the first to step up and produce his witnesses. Ejaaz: But next week is when the script officially flips and Sam takes the witness Ejaaz: stand as well as OpenAI's witnesses. Ejaaz: And we might see a similar case where they end up shooting themselves in the Ejaaz: foot similarly to how Elon has happened for the first week of the trial.

Josh: And what I'm really enjoying is how now they're available via audio. Josh: So you can actually tune in and listen. Josh: You can't watch the presentations, but you can listen to the testimonies. Josh: People have been doing it and kind of sharing the hot takes and the information from it.

Josh: It's very invasive in a way, but in the sense that you just mentioned earlier, Josh: where people are just human, like obviously Greg Brockman wants to make a billion Josh: dollars and sure you want the nonprofit, but he's just a human. Josh: Why would you not? And it's interesting to see these dynamics play out, Josh: particularly with Siobhan.

Josh: Siobhan is such a sweetheart. She, for people who don't know, she actually Josh: joined open ai in 2016 which i think was when Josh: it first got started as a general advisor later moved Josh: on to the board of directors then went over to neural Josh: link she was at tesla for a small stint of time she is Josh: the mother to a few of elon's children there's this whole lore and background Josh: she actually left the open ai board of directors when elon began xai because

Josh: the conflict of interest so she has become this kind of key feature in this Josh: early part and it's been interesting to see it play out we're going to continue Josh: to follow along next week we'll hopefully have some updates It's from the OpenAI side. Josh: And then the following week, I believe, we're getting close to a verdict.

Josh: So we're going to start to see Josh: things move quickly over the next few weeks as it relates to the trial. Ejaaz: Shifting gears slightly, Anthropic, aside from the partnership that they signed, Ejaaz: has had a pretty promising week of developments, product development specifically, Ejaaz: as is normal for Anthropic style.

Ejaaz: Finance, they released a big finance update where basically they are creating a Ejaaz: a bunch of ready-to-run agent templates for the most time-consuming work in financial services. Ejaaz: Now, if any of you listeners have worked or are working in the financial industry, Ejaaz: you'll know that there's a bunch of admin work.

Ejaaz: There's a bunch of memos you need to review, a bunch of financial modeling that Ejaaz: you need to do, a bunch of paperwork and administration that just takes up a Ejaaz: bunch of time and, in an ideal sense, could be automated, but still requires Ejaaz: a lot of human input and judgment. Ejaaz: Well, Claude, specifically Claude Co-Work and Claude Code has now become smart Ejaaz: enough to be able to assess and do this work for you.

Ejaaz: And they've released a bunch of templates, specifically AI agent workflows that Ejaaz: can do this for you. Now, it sounds kind of unsexy, right? Ejaaz: Claude Code and Claude specifically has been able to run Microsoft Excel, Ejaaz: PowerPoint, and Word pretty well now. Ejaaz: In fact, they've integrated directly into Microsoft Suite for all of those software Ejaaz: programs, but there hasn't been a combined package. Ejaaz: Usually when you get access to these things, you can be like,

Ejaaz: okay, this is cool, but I don't know what to prompt it. What do I say to this? Ejaaz: How do I connect it to my database and my company? Ejaaz: How do I make it do the thing that I want it to do? These templates basically solve that. Ejaaz: And it is once again, Anthropic step towards taking over many different sectors Ejaaz: that are adjacent to what they do. First, they started off with code. Ejaaz: Now they're focusing on enterprise, specifically financial services.

Ejaaz: Tomorrow, it could be law. Ejaaz: It's just a continuing trend of Anthropic doing this particular pattern taking over sectors. Josh: If you're in college right now and you're in finance and your goal is to make Josh: it to Wall Street, what are the kind of jobs and the skills that you're optimizing Josh: for, for that entry-level job, right?

Josh: You're building pitches, you're preparing for meetings, you're reviewing earnings, Josh: you're building out models, you're doing market research, you're kind of doing Josh: all of these basic tasks. Josh: Every single one of these has been turned into one of the financial templates. Josh: And I'm actually reading from the list of things that Claude has automated because

Josh: it sounds like a job description. And I think this is one of the really powerful Josh: things that when people are gonna see, they're going to say, Josh: oh my God, it's taking all the entry-level jobs.

Josh: But the reality is now that child who is in school, who is in college trying Josh: to be working Wall Street, be in finance, Josh: has these tools at his disposal to go and accelerate progress Josh: to do the next level of things what are the things that come after you Josh: do these market research reviews or the valuation reviews or Josh: whatever it is that's where i think people should spend a lot of their time and instead

Josh: of viewing this as this detriment to the entry-level class Josh: of wall street it's like think about how more powerful you can be you Josh: can just use all of these you have your own employees now so so think bigger Josh: build better and i think this anthropic update empowers people to do that and Josh: it's it's cool i i want to test it out i want to apply this to our episode that Josh: we talked about yesterday of the ai stack and have it kind of build out uh models

Josh: and valuations on what i should get an investment Ejaaz: Model we should see yeah for this.

Josh: Dude it's like we we don't need to be on wall street or pay hundreds of thousands Josh: of dollars to hire this entry-level job we just have the templates now on cloth Josh: and you just ask it questions you use their plugins and it will generate like Josh: pretty proficient research so i think it's it's very empowering i wonder Ejaaz: If we could hook that up to like a temporary bank account that we can spin up

Ejaaz: that can then just like invest in a bunch of stocks for us. That might be an episode in itself. Josh: I mean, again, your imagination is the only fixed variable here. Josh: It's like the only limitation. It could do basically anything you want. Ejaaz: I like that. Well, in order to pull all of this off, right, let's assume financial Ejaaz: services goes crazy and AI is applied to pretty much everything. Ejaaz: There's a trend. tokens are being consumed, Josh. We need more compute.

Ejaaz: And the one company that has all of the demand but not enough compute is, Ejaaz: like we mentioned earlier, Anthropic. Ejaaz: But it's had an inverse side effect, which is Ejaaz: Google is now the most valuable company in the world, more valuable than NVIDIA, right? Ejaaz: So we have a new king of the throne, I guess. Ejaaz: Anthropic signed a $200 billion deal with Google to get access to their compute Ejaaz: via Google Cloud and through their TPUs.

Ejaaz: Now, it's important to point out that this has spread over five years, Ejaaz: but it is a locked-in deal. Ejaaz: In fact, it makes up over 50 to actually 60% of Google's revenue backlog for Ejaaz: the next couple of years. Ejaaz: Now, what's important to point out here is Anthropic has already been a big Ejaaz: fan and customer of Google and it works both ways.

Ejaaz: Number one, Anthropic uses a bunch of Google's TPUs, which is their own version Ejaaz: of GPUs that competes directly with NVIDIA to train and serve Claude and it's Ejaaz: actually helped Claude improve massively. Ejaaz: Mythos was trained on Google's TPUs. Ejaaz: Now, the other side is Google is one of the biggest stakeholders and investors Ejaaz: in Anthropic themselves.

Ejaaz: In fact, I think they own roughly right now after this deal and after a few Ejaaz: other deals that happened over the past month, around 15 to 17% of Anthropic. Ejaaz: Now it's Google and Amazon combined staked, I think it's like 43% in total of Anthropic.

Ejaaz: So it's just insane. Anthropic is selling a lot of their stake to these competitors Ejaaz: or infrastructure providers, but there is now a symbiotic relationship where Ejaaz: Google is more inclined to serve up compute to Anthropic. Ejaaz: The one thing I couldn't get my head around, Josh, I guess is similar to the Ejaaz: SpaceX AI and Anthropic partnership is.

Ejaaz: If you're working at Google on the Gemini team, if you're Demis Sibis, Ejaaz: right, and you know you need compute to make Gemini a better model, Ejaaz: you must be thinking, could you please just give us that compute so we can train Ejaaz: the number one frontier model instead of Anthropic and Claude? Ejaaz: It seems like Google is just kind of like giving them over the reins at this point.

Josh: Well, what's the problem? It's like, is Gemini having an issue? Josh: Are they hitting a wall where they haven't quite figured out where to spend that compute on?

Josh: Because it's clear Gemini doesn't have nearly as much compute constraints Josh: in terms of serving up inference to users that anthropic does Josh: so i wonder if this is a hedge against Josh: deep mind of the google business like in Josh: terms of if you are the ceo of google and you have all of your chips on Josh: deep mind are you going to continue to bet 100 of Josh: your tpus that deep mind is going to be the one

Josh: to build this incredible ai or are you going to start hedging against Josh: that by offering your compute to others now there's a few reasons why they Josh: would offer their compute to others as that hedge but also just because they're having Josh: the xai problem where they have good models but Josh: they haven't quite matched the users with that compute and Josh: they they don't really need all those tpus so we Josh: could speculate for many reasons but i think the idea is that um

Josh: capitalism rocks man all the arbitrage is going down across all these companies Josh: if you have any dark gpus they get snapped up immediately and people are willing Josh: to pay a very large market price in order to do so so the market is efficient Josh: tpus are being bought and sold all over the place same with gpus and we're just Josh: going to continue generating these tokens at whatever the cost takes

Ejaaz: Oh my god you just reminded me of something. Did you see that crazy startup Ejaaz: announcement this week, Josh, where they're putting NVIDIA GPUs and attaching it to your home, Ejaaz: like to the outside wall, so that your home becomes its own siloed data center, Ejaaz: which then gets interconnected with a bunch of other homes in your neighborhood, Ejaaz: effectively, like turning a home neighborhood into a data center. Did you see this? Josh: Uh, no, but that sounds a little freaky.

Ejaaz: It was the craziest suggestion ever. Ejaaz: And like NVIDIA's investing into this startup, just to point that out. Ejaaz: But someone pointed out, which was like, if I see this outside of your home, Ejaaz: I'm probably going to rob you, right? Ejaaz: It's the biggest advertising to just to say like, hey, I have all this money, I can afford these GPUs. Ejaaz: I come anyway, like to talk about your capitalist comment, I was like, Ejaaz: we might be going too far at this point.

Josh: Oh, well, I'll do you one better quickly, which is this is a plan loosely for Josh: the Tesla network of autonomous vehicles. Josh: As they roll out AI5, AI6 chips in these cars, they're going to essentially Josh: have supercomputers that are connected to the internet. Josh: And what better use of idle driving Josh: time than to turn them into a mega cluster. So the idea is out there.

Josh: I'm sure someone is going to capitalize it. And I'm very excited for whatever Josh: the first person who does that and what it looks like. Josh: Because man, that'd be pretty cool. I mean, you run some GPUs in your house, Josh: you get paid for it. You maybe get free electricity, whatever it is. I don't know.

Josh: And then another great business model, which seems like it's not going to work, Josh: is Eleven Labs, who somehow manages to continue to surprise and delight everyone in the market. Josh: 11 Labs, for those who aren't familiar, you could think of them as the audio AI company. Josh: They are the flagship AI company when it comes to anything that enters your Josh: ears, whether it be voices, whether it be music, anything that you hear,

Josh: 11 Labs has specialized in it. And now they're not the only ones. Josh: Google has an audio model that makes music really well. There's a few other Josh: companies that are trying, but for some reason, 11 Labs is doing it the best. Josh: And it's thanks to their CEO, Matty, who had an announcement of $500 million Josh: of ARR this year. This is a huge announcement from the team.

Ejaaz: Yeah, super impressive. One thing that 11 Labs has done well is they've, Ejaaz: manage to maintain and build a really cool, attractive image on the outside. Ejaaz: So many celebrities are partnered or invested in 11 Labs, the main one being Matthew McConaughey.

Ejaaz: We've got Jamie Foxx joining us around, Eva Longoria. So that helps with your Ejaaz: distribution mode of making 11 Labs cool and appealing to the people that they're Ejaaz: eventually going to be replicating or replacing, right? Ejaaz: Like there's a whole fear in Hollywood that it's like, you know, Ejaaz: AI is going to replace us, it's not authentic.

Ejaaz: But if you can kind of license your IP, your voice, your character in a way Ejaaz: that you can control, such as with 11 labs, you can end up, you know, Ejaaz: making a bunch of money and 500 million AR kind of like plays into that. Ejaaz: So a massively successful model. Ejaaz: But there is another story that I saw today. Ejaaz: Well, rather, not a story, Josh, but a clip. Have you ever seen a robot, right? Ejaaz: Crack an egg before with such precision? I'll do you one better.

Ejaaz: Have you ever seen a robot carefully take a pipette and Ejaaz: pipette the right amount of stuff into a petri dish or have you ever seen it Ejaaz: solve a rubik's cube or have you ever seen it what is it doing here is this Ejaaz: like blending and making a shake anyway the point i'm saying is this new startup Ejaaz: announcement from genesis ai has created a new generalized robotics model that Ejaaz: can be applied to any kind of robotic machinery.

Ejaaz: Instantly give it a very precise amount of movement and precision in the way Ejaaz: that it interacts with different objects to a point that we have never seen before. Ejaaz: I think robotics is finally reaching escape velocity. We've seen a bunch of Ejaaz: announcements from the likes of Figure and Unitree, which, you know, Ejaaz: the robot's doing cool things, but it's mainly at a manufacturing process level, Ejaaz: like they work in factories.

Ejaaz: This is the first time where I'm like, oh, the robot looks pretty human and Ejaaz: I might have it in my home. It's just pretty cool.

Josh: Yeah okay so we're going to speed around the rest of these because a few Josh: interesting news topics that are left one is a new round that Josh: is led by peter teal for a company named panthalassa Josh: i think i'm saying that right um 140 million dollar Josh: round led by peter teal and their entire basis of this Josh: company is to build planetary scale energy in the middle of the ocean so basically Josh: they have these you could think of a compute cluster a data center that we have

Josh: kind of like in texas or that we have in tennessee what they're doing is they're Josh: taking that data center they're making a float and then they're driving it off Josh: into the middle of the ocean to function independently. Josh: So you can unlock the ocean as a planetary scale resource and Josh: This is pretty mind-blowing when we think about how AI is going to scale.

Josh: I mean, we are very familiar now with the AI data centers in space conversation, Josh: but the AI in the ocean seems pretty noteworthy, pretty interesting. Ejaaz: And finally, we have some, I guess, AI-adjacent news, but not really.

Ejaaz: We were just blown away by this, and we had to call it out. Ejaaz: Guys, the next coronavirus apparently is around the corner, and it's appropriately named Hantavirus. Ejaaz: There's a luxury cruise trip right now where it has an outbreak, Ejaaz: very reminiscent of coronavirus. I'm getting PTSD. Ejaaz: And nearly 150 people are still on board with no symptoms, but they are some Ejaaz: seriously ill passengers. Josh, what's going on here?

Josh: Dude, I woke up this morning. This was my entire feed online. Josh: I'm like, what is going on? Is the world ending? Josh: And when we recorded our episode yesterday on the threats to the AI bubble, Josh: this was not baked into the equation. So we're just sharing this just to bake Josh: it in. This is highly speculative. Josh: According to Polymarket, there's only a 9% chance this turns into a pandemic.

Josh: But it is like it's funny and not funny Josh: but like it is scary to see the kind of rerun of Josh: this traumatic event that happened but in a different flavor in this different Josh: context and i just wanted to just highlight as another thing to you know keep Josh: your eyes on everything's fine for now but people in at least three u.s states Josh: are reportedly being monitored for possible exposure and like a people have

Josh: died and things are happening so just you know want to make sure everyone's aware everyone's okay Josh: things are going to be fine. According to Polymarket, the odds are low. Josh: They're still in our favor. Josh: The up-only pump is going to continue, but this should be hedged into your models at least. Josh: Add this to your LLMs. Tell them, hey, create this as a parameter when you're Josh: evaluating risk going forward.

Ejaaz: Yes, yes. Well, there you have it, folks. You are officially caught up by the Ejaaz: end of the week of everything that's been happening in AI. Ejaaz: Everything from the drama in the courtroom to the latest partnerships between Ejaaz: the rivals that are to kill the other rival, all the way to breaking virus news.

Ejaaz: You can get everything here at Limitless. Ejaaz: We released a bunch of episodes this week, which jumped into the depths of why Ejaaz: all the semiconductor stocks are pumping massively. Ejaaz: We covered OpenAI's new phone that's releasing as early as 2027. Ejaaz: And we compared the motherlode of all AI models, GPT 5.5 versus Claude, Ejaaz: Opus 4.7, which one's the best. We did a breakdown. We did a bunch of demos.

Ejaaz: We may or may not have recreated Mario, definitely go check out all those episodes. Ejaaz: If you are listening to us on whatever platform you're on, YouTube, Ejaaz: Spotify, or Apple, please leave us a review, give us a rating. Ejaaz: It helps us out massively. Ejaaz: Josh, any final parting thoughts? Josh: Thank you so much for watching. If you made it this far, you're a real one. Josh: I very much appreciate all the support of getting caught up. Go enjoy your weekend.

Josh: Have a great time touching grass because you're all caught up. Josh: Thank you so much for watching and we will see you guys next week. Ejaaz: See you guys.