This Week in AI: NVIDIA Earnings, Anthropic vs Pentagon, Perplexity Computer

Josh: NVIDIA earnings are in, the stock is moving, and pretty much everyone has an Josh: opinion on what this means. Josh: But most of the commentary, I think, is missing the real story, Josh: which isn't actually about this quarter at all. Josh: It's about whether AI is in a super cycle that has likes for years or whether Josh: we're about one overbuilds away from a dot com style wipeout.

Josh: Today, we're getting into the thesis that has Wall Street buzzing, Josh: which is, I mean, kind of answering the question, are we in a bubble or not? Josh: And if we're not, how much longer do we have? We have a lot of new data points Josh: now with this NVIDIA earnings report that I think are worth getting excited about. Josh: This is also the AI Weekly Roundup where we talk about the top news of the week.

Josh: So in addition to this, we have Perplexity. They launched a new personal computer from the ground up. Josh: Cloud Cowork has become OpenClaw now. There's many OpenClaw alternatives that Josh: come from everywhere. And Anthropic Josh: wiped out, what was it, 15% of IBM's market cap in one single post. Josh: So lots of things are happening quickly, but maybe we'll start with the NVIDIA earnings report.

Ejaaz: Yeah, so NVIDIA earnings pretty much broke the entire stock market. And I'll tell you why. Ejaaz: For every single target, they beat it. Ejaaz: They beat earnings per share. They brought in $68.1 billion in Q4, Ejaaz: which is up about 70% from the year before and 20% from the previous quarter. Ejaaz: And they're also estimating $78 billion for Q1 of this year, Ejaaz: whereas the Wall Street estimates were about $72 billion.

Ejaaz: So things are looking pretty positive, right? And actually, in post-closed market, Ejaaz: the stock pumped 4%. But this morning, it's down 4%. It completely retraced the move entirely. Ejaaz: So it added $150 billion to their market cap, and then it completely removed it. Ejaaz: And I think that there's just a clear misunderstanding of what NVIDIA is doing Ejaaz: here and why it's actually bullish. Ejaaz: I think a lot of people look at this and say, this seems like an AI CapEx bubble.

Ejaaz: I don't know how much more sustainable it is. Ejaaz: And to be honest, I'm going to spend a bit of time arguing as to why it actually Ejaaz: is pretty amazing, because we're talking about a 75% year upon year growth. Ejaaz: And I think that what the market misunderstands is there is a lot of investment in GPUs. Ejaaz: Buying GPUs is very expensive. And at some point, the music has to stop, right?

Ejaaz: Except that the companies buying the GPUs are, number one, fully utilizing all Ejaaz: their GPUs, so they're maxed out and they need to actually buy more. Ejaaz: But number two, there's a story about a little thing known as electricity or Ejaaz: energy, which needs to power these GPUs. Ejaaz: And we just don't have enough of it. Josh: Yeah, any way you look at this report, the numbers are pretty outrageous. Josh: I mean, revenue of this quarter coming in at $80 billion estimate versus 72.

Josh: I mean, the amount of money they're going to be earning and the profit margin Josh: that they have on those earnings is just absolutely gigantic. Josh: And I think one of the best takes that answered the question, Josh: are we in a bubble or not? Where are we in the bubble? Josh: What does this bubble look like? Is from this guy named Gavin Baker. Josh: I think everyone here, we love Gavin Baker. He's great. Josh: He's an analyst at Atreides Capital, I think.

Josh: And right before the earnings report, he published this Josh: post not knowing what the results were going to be not knowing Josh: kind of how impressive it was going to be and he Josh: kind of broke it down into a few sections with Josh: the core question is like nvidia's earnings durability is it actually going Josh: to be able to hold through not only this report but through future reports and Josh: he he outlines in this paper that every major tech revolution like railroads

Josh: radio the internet it follows the same playbook generally where the market correctly Josh: identifies the potential of Ejaaz: That creates a bubble. Josh: And then the excitement creates that bubble and the demand temporary collapses. Josh: And then there's a crash. Josh: And he has this line that I love that says, believing this time is different Josh: is dangerous, but I think this time might be different.

Josh: Maybe you have some insight as to why he really believes this time is different, Josh: because it seems like this is backed up by like real information that separates Josh: this bubble from those previous bubbles, like railroads, like the radio, Josh: like the internet, even this time actually is different for a few key reasons. Ejaaz: Yeah, so he makes the very valid point that in every previous bubble, Ejaaz: we have overstepped what is actually real.

Ejaaz: So in this case, the people that are calling for the AI CapEx bubble, Ejaaz: their argument would be that all the GPUs that are being bought aren't actually Ejaaz: being utilized and they're just kind of sitting and collecting dust. Ejaaz: The truth is all these GPUs, all these new ones and five to 10 year old GPUs are maxed out.

Ejaaz: In fact, if you wanted to go and rent a five-year-old GPU from NVIDIA or from Ejaaz: a secondary market right now, you'd be paying roughly one and a half times the Ejaaz: original cost of the GPU five years ago. Ejaaz: The demand is off the scale and it's not stopping anytime soon.

Ejaaz: But the second more prescient point that he makes is the hyperscalers, Ejaaz: even if they wanted to blow up a bubble that would lead to an ultimate collapse Ejaaz: that all the doomers are talking about, Ejaaz: they can't because they're limited by the amount of electricity and power that Ejaaz: our grid can currently support. Ejaaz: So he's saying that we can buy all these GPUs and they could overbuy it, Ejaaz: but they will have not enough power to power them up in the first place.

Ejaaz: So in a weird sort of way, the hyperscalers are restricted from creating the Ejaaz: bubble that everyone is fearing and, you know, worrying about. Josh: Yeah, in the dot-com bubble, there's this huge race to deploy fiber as fast Josh: as possible across the oceans, across the continents to get everyone connected online. Josh: And the reality is, is that they were able to deploy the fiber so much faster Josh: than, I mean, we could come up with use cases for it.

Josh: And in this case, the inverse is true where everyone wants to move quickly. Josh: But he has this really elegant line that says, we're constrained by watts and Josh: wafers, meaning we don't have enough electricity, we don't have enough chips. Josh: And as a result, that becomes the limiting factor, enabling the growth.

Josh: And it will stop us from actually accelerating as fast as we could and smoothing Josh: out what could eventually become a bubble, but still has a lot of narrative runway left.

Josh: The summary of this is that so long as nvidia is printing cash and doing well Josh: there is basically infinite demand because they are just not able to create Josh: as much as the industry desires and as a result of watts and wafers being the limiting factor Josh: we are just not able to reach bubble levels required to make things, Josh: to put things into the danger zone.

Josh: So kind of his sentiment, and it seems like the sentiment after this NVIDIA Josh: report is that there's a lot of time left before you have to worry about things collapsing. Josh: And there will be ruts along the way, but we are like still green lights full speed ahead. Ejaaz: A lot of people are worried about AI basically replacing human labor entirely.

Ejaaz: And he makes the point that because we're restrained by energy and the electrical Ejaaz: grid, and we will be for the foreseeable future for the next at least five years Ejaaz: until we build this thing, this stuff takes a lot of time. Ejaaz: We'll reach a point where we buy enough GPUs, but the cost of paying an AI to Ejaaz: do a human job actually becomes more expensive than just employing a human.

Ejaaz: As long as we have this limiting factor of electricity and power, Ejaaz: humans are good for the foreseeable future. Ejaaz: And of course, take that with a pinch of salt. It's interesting, Ejaaz: this article was a direct rebuttal to a really.

Ejaaz: Tantalizingly written post from citrini which is a Ejaaz: research firm which basically outlined the doomer case where Ejaaz: ai takes over everything and you know humans basically need to kind of like Ejaaz: fight for themselves and like subsidize themselves through i don't know some Ejaaz: kind of just voluntary payment uh structure and so he's outlining the positive Ejaaz: side of this here josh i don't know if you saw but there was also a piece that

Ejaaz: came out from citadel securities which by the way, Ejaaz: is the most funniest thing ever because Citadel is like known for making most Ejaaz: of their money from shorting stuff. Ejaaz: So the fact that they're now like super bullish, this new technology is just Ejaaz: kind of hilarious. They must have quite a few long positions open. Ejaaz: But yeah, I think overall, the point that's being made here is like NVIDIA is beating its earnings.

Ejaaz: It's consistently done this for about eight quarters now. Let me repeat that. Ejaaz: Around eight quarters. They're up 75% in gross revenue from last year. Ejaaz: They've been repeating this for about two years now. Ejaaz: This train isn't stopping. And I don't know how much longer the doomers can Ejaaz: keep saying, hey, I think this is the top. Ejaaz: This is the top. This is the end. I just don't think we're there yet.

Josh: What we see is the CapEx spend that we talked about a few weeks ago. Josh: Like clearly this is all going to places like NVIDIA. These companies have pledged Josh: $650 billion of CapEx spend, which is almost exclusively going to AI buildouts. Josh: NVIDIA is going to see a ton of that. These earners are not going to slow down. Josh: The build-outs are not going to stop. Josh: I mean, it's just a very clear path to moving forward and to continuing this

Josh: growth. And it's really exciting to be a part of this ride.

Josh: Another ride that I went on yesterday Josh: was with Perplexity saying that they rebuilt the personal computer. Ejaaz: Josh, how much did that trigger you, that single sentence? Josh: I'm just a little confused because, you know, Perplexity, they've been quiet. Josh: We had Arvin, the CEO, as a guest on the show. Feel free to go back and find that interview. Josh: It was really interesting because Josh: they pivoted the entire company around building an agentic browser.

Josh: And now it appears like they have expanded from the browser to the entire computer. Josh: So, Ijaz, I haven't looked into this news entirely. I'm not exactly sure what it is they built. Josh: But based on the announcement video, it seems like computer use is actually Josh: getting pretty good on perplexity. Is that true? Ejaaz: Let's start with the good news. The vision with perplexity computer is number Ejaaz: one, they didn't rebuild an actual physical computer.

Ejaaz: What they rebuilt was the operating system for a computer. Ejaaz: So right now, if you have Windows, you booted up Windows. If you have Mac OS, you have Mac OS. Ejaaz: What they've tried to do here is build a layer on top of that that unites all Ejaaz: the things that you might potentially do on a computer, whether that's coding. Ejaaz: Whether that's doing your nine-to-five job, whether it's opening up a browser, Ejaaz: whether it's like playing around with a few apps.

Ejaaz: They've unified it on a single layer called perplexity computer. Ejaaz: Why did they do this? Well, their argument is very simple. They're saying, Ejaaz: hey, you're using a different model for your browser. Ejaaz: You're using a different model to Ejaaz: code, using a different model to spin up agents to do your work for you. Ejaaz: Let me just bring all of this under one roof and make a single unified experience.

Ejaaz: So I actually love the vision. And I think that something like this is actually Ejaaz: desperately needed in a world where we have open claw. Ejaaz: And it's funny, we're just talking about like 10 different open claw variants. Ejaaz: We have clawed co-work. I have a million subscriptions. Ejaaz: My mind is going crazy. I just want one singular thing that I can like operate on.

Ejaaz: And this is what that thing supposedly does. It can research, Ejaaz: design, code, deploy, and manage any project end to end. Ejaaz: So that sounds good. But the question is, can it actually do it? Ejaaz: So I want to go through like a few demos. Ejaaz: One, which is showing, I think this might be the actual video where it takes Ejaaz: a long form video and creates a short form type of content. Do I have that right, Josh?

Josh: Oh yeah, this is, it's about halfway into this video. It's, it's pretty well Josh: done because I've been trying to get this to work with a service like Claude Josh: And it doesn't have the ability to edit videos within it. Josh: So I think that is a plus one to perplexity where the example that it uses, Josh: it's like go to an interview that Dario Mode, the CEO of Anthropocad, Josh: and then pull out a specific part and turn it into a clip.

Josh: And then it actually went and it rendered the clip and it added subtitles and Josh: descriptions and it did everything that a producer on a show like ours would do.

Josh: So that was really interesting. And I think it's exciting to see these companies Josh: leaning more into this new AI first operating system because as these ai models Josh: are getting better at computer use and anthropic just acquired another company Josh: that is exceptional at computer use they're going to continue to kind of rebuild Josh: what the computer does but through the ai first lens

Josh: And this seems pretty interesting. Like as someone who hasn't used Perplexity Josh: in months, I'm reconsidering maybe I should sign up for a subscription and try this out. Ejaaz: Yeah, the way I would describe this is it is open core, but for normies, Ejaaz: for the everyday person, you don't have to worry about massive security issues. Ejaaz: It's a really simple and easy looking interface in terms of like connecting your apps. Ejaaz: I think a portion of this data is held privately.

Ejaaz: The agents are very intuitive to use. You just kind of like prompt them. Ejaaz: If you look at one of these demos right here, he says, I'm thinking about buying Ejaaz: Walter White's house and turning it into a rental. Please build me a financial model. Ejaaz: And it just kind of goes off and does its own thing. You don't need to tell it what tool to use. Ejaaz: If it requires access to Slack or something, it'll say, hey, Ejaaz: can I get access to Slack? You just say, yes, approved.

Ejaaz: And it just kind of like gets on with it. So I think that's pretty cool. Ejaaz: There are also other few demos that I quite enjoyed. Ejaaz: So if you're not in the finance world, or maybe you are, but you would have Ejaaz: heard of something called Bloomberg Terminal. It is like the mecca. Ejaaz: It costs $30,000 a year to access, and you get all the latest, Ejaaz: greatest financial news before the public gets it.

Ejaaz: If important financial news breaks, it breaks on Bloomberg Terminal first. It is the mecca. Ejaaz: Someone rebuilt it from scratch using perplexity computer, and it took them Ejaaz: less than an hour to do so.

Ejaaz: So you've already automated away $30,000 a Ejaaz: year worth of value for the cost of a single prompt and if i look at this interface Ejaaz: right here from this demo it actually looks super legit now i don't know what Ejaaz: ip infringements happen here and like in defense of the non-perplexity computer supporters. Ejaaz: We actually kind of did something similar, Josh. I think we, Ejaaz: what did we use to build this?

Ejaaz: We used, oh yeah, we did a test between Cloud Code, Opus 4.6 and Codex 5.3. Ejaaz: And we said, hey, can you build up an investment tracker analysis app for us? Ejaaz: And I did it in a few minutes, but it wasn't to the extent that this thing is. Ejaaz: So I think it's just that added layer of an operating system helps you kind Ejaaz: of piece together a bunch of different tools and builds a better app or a better Ejaaz: tool or a better web experience for versus like prior.

Josh: Models it'll get you close like what what Josh: is this missing well it's missing the real-time news it's missing the Josh: private chat room so it loses a lot of the value that comes from that thirty Josh: thousand dollars or however much it costs but it created an interface that without Josh: those added values it actually looks pretty much like a bloomberg terminal and Josh: it all the data works all the news tracks all the charts are accurate and it

Josh: creates this fun dashboard with a single prompt. Josh: So perplexity seems like they're onto something. Josh: I hope that they are aware that the rest of the industry is also working very Josh: hard to doing this. In fact, they might even be there already.

Josh: And when I'm saying that, I'm referencing Claude Cowork because essentially Josh: this week they have turned Claude Cowork into OpenClaw one step at a time. Josh: And I think this started with news that was discussing scheduled tasks. Josh: So a big thing about OpenClaw in particular is that it has a heartbeat and every Josh: 30 minutes it kind of wakes up and it goes through its tasks and what Claude Josh: does now is you can schedule tasks to happen throughout the course of the day.

Josh: You could ask it for a morning brief, you could ask for weekly updates, Josh: for Friday presentations, whatever it may be, it adds these things called Josh: cron jobs into the Claude co-work operating system and i think it's it's another step of Josh: Claude and Anthropic and a lot of these companies kind of working towards this Josh: first operating system in a way that is is very compelling like now i have it

Josh: do a little morning roundup where in the morning it'll go through all the news Josh: that i missed over the night and just give me a couple bullet points to see Josh: if there's anything i find interesting it's pretty cool yeah i Ejaaz: Mean that's one very essential part of what makes open claw an amazing product Ejaaz: and the fact that now you have like this kind of sandbox version where you don't Ejaaz: need to kind of check for any security risks or anything like that is awesome.

Ejaaz: That's not the only tool that they launched this week. Like Anthropik's been Ejaaz: on a generational run this week alone. Josh: It seems like every day they're announcing a new feature. Ejaaz: I need them to give me a break because it takes a while to process these things, Ejaaz: but they're just shipping every single day at this point. I'm tired, dude. Ejaaz: So this new feature is called Remote Control, which is exactly what it sounds

Ejaaz: like. you can now code using Claude from your phone whilst you're going on a Ejaaz: walk, whilst you're walking on the dog. Ejaaz: So if you need to get away from a screen, Ejaaz: Now, I'm sorry, you're chained, you're ball and chained even when you leave Ejaaz: your house at this point. Ejaaz: It's really cool because one of the great parts about OpenClaw was the fact Ejaaz: that you could lay in bed or communicate with your coding agent or your claw

Ejaaz: bot from anywhere in the world. And you didn't need to be at your desktop terminal at that specific time. Ejaaz: Clawed code and Anthropic prior to this announcement required you to do so. Ejaaz: Now you don't need to be able to do that. So now when you combine this with Ejaaz: the autonomous cron jobs that you just mentioned, Josh, you start to see what Ejaaz: the vision is going to be. Ejaaz: And it looks something very similar to OpenClaw.

Ejaaz: But to go back to the original form of Anthropic announcements, Ejaaz: they typically announce, I don't know, what is it? Ejaaz: One to three new plugins for Clawed in general, Cowork specifically, maybe every week. Ejaaz: And it results in a, I saw a stat here, it results in a 10 to 35% stock decline Ejaaz: of any company that currently has the winning leading software, Ejaaz: because now Clawed has automated that entirely. and we have a new one this week. That's crazy.

Josh: We need to pause there for a second to just to acknowledge how powerful Anthropic Josh: has become, where a single tweet and a single feature unlock has the ability Josh: to move markets billions, maybe tens of billions of dollars. Josh: And what I find funny and ironic before we get into what happened this week Josh: with the news is that it seems as if this is a power only Anthropic holds.

Josh: If ChatGPT announced something similar to this, I'm not sure it has the impact of anthropic and quad. Josh: And I think that's worth acknowledging is because they haven't. Josh: They haven't. Yeah, we haven't seen this. And I think it's worth acknowledging Josh: because Anthropic very clearly is seen as not only a powerhouse, Josh: but a real threat to a lot of institutions, a lot of companies that have been Josh: kind of grounded in their ways.

Josh: And this example this week, I love, it's so funny. Josh: So please share with us what the hell happened with this new post that knocked Josh: a certain company off the grid.

Ejaaz: Okay. So there are many different types of programming languages and one very Ejaaz: important and I guess essential programming language for the business world Ejaaz: for data processing specifically is known as COBOL, C-O-B-O-L. Ejaaz: It stands for Common Business Oriented Language. Ejaaz: And one particular company called IBM has held the monopoly on this.

Ejaaz: And the reason why they've held the monopoly on this is that it's quite a complex Ejaaz: programming language to understand. Ejaaz: You need to kind of like learn how the different tools work. Ejaaz: Then you need to adopt how the language actually fits to your business. it's a whole process. Ejaaz: IBM walks you through hand in hand and figures it out for you, Ejaaz: and they charge you a premium price to be able to do that.

Ejaaz: Until two days ago, when Anthropic announced that they had launched a single Ejaaz: plugin that was coded from scratch using Claude Code, and it does all of that Ejaaz: for you, for the cost of a single prompt. Ejaaz: The news wasn't too great. IBM stock, it says here it dumped 10%. Ejaaz: It actually dumped 15% within an hour of that tweet going live. Ejaaz: Just insane to see. And this isn't the first time Anthropic has done this.

Ejaaz: They announced a legal plugin about a week and a half ago, and all law stocks Ejaaz: dumped about 30 billion dollars just insane.

Josh: That's a huge amount of money that's blown and i Josh: think it's it's a testament to kind of where things are going right it's Josh: ibm makes so much money because cobalt is such a old outdated Josh: protocol that no one really supports no Josh: one really understands how it works they're maintaining dinosaur code and now Josh: anthropic comes in and says we're not like humans we don't get tired we don't

Josh: get bored we will actually just go and work with your cobalt code and fix things Josh: and that knocked 15 that's a huge amount of money and that's still not the extent Josh: of all the philanthropic news this week because there is another security implementation. Josh: So if I remember correctly, when they announced Opus, maybe it's 4.6, Josh: they announced it with the fact that Josh: it found 500 zero-day vulnerabilities in code.

Josh: Correct. Meaning that there is existing code bases out there that have exploits. Josh: It uncovered 500 of them just via the AI model itself. Josh: And now what they're doing, it seems, is they're kind of reversing that and Josh: allowing you to have the tools to play defense against Claw's own hacking abilities. Is that right? Ejaaz: Yeah, I actually think that it might have been Codex 5.3 from OpenAI, Ejaaz: but the fact is like both models can do the same thing.

Ejaaz: And these coding models are getting so good finding the vulnerabilities that Ejaaz: humans are very prone to implementing in their own code. Ejaaz: And these vulnerabilities, by the way, can be exploited for billions of dollars. Ejaaz: I'm not like underselling this. Like if you are a multi-billion dollar company, Ejaaz: a hundred billion dollars plus, right?

Ejaaz: And you have security floor that gives people access to personal data or back Ejaaz: account information, that could be a really large financial and legal risk for Ejaaz: you. So it's very important that you patch these things up. Ejaaz: But the issue is humans, well, number one, need to be an expert in that specific Ejaaz: code base in order to find those specific flaws. Ejaaz: So there's only usually about three to five people in any of these big companies that can do that.

Ejaaz: So there's a heavy risk point there, where if those people leave the company, Ejaaz: or they decide to like go focus on something else, you now have an open risk. Ejaaz: Claude announced this new tool called Claude Code Security, which now does this for you. Ejaaz: It scans your entire code repository in about 10 to 30 minutes. Ejaaz: It understands the nuance and the way that you wrote this code, Ejaaz: the context with your business, et cetera, et cetera.

Ejaaz: And then it finds all the security flaws for you. Ejaaz: Typically, this would have taken a team of five to 10 people months, Ejaaz: or it's like a recurring thing. Ejaaz: And now you can just run a single prompt like every 30 minutes or every week, Ejaaz: and it'll discover all the flaws for you, but it gets even better. Ejaaz: It proposes the solution that you need to fix in order to resolve that security issue.

Ejaaz: It doesn't go to the extent where it writes up the fix for you, Ejaaz: although you can definitely say like, hey, okay, that sounds good, Ejaaz: build the fix for me, because they wanted to maintain the human in the loop. Ejaaz: But if you can imagine, if the AI is already good enough to find the flaws and Ejaaz: create the fix for the flaws, you might just let this thing run autonomously for you. Ejaaz: Now, let me ask you this, how much is that product worth for your business?

Ejaaz: It's probably like tens of billions of dollars, if not more. Josh: They're just continuing to snipe and cherry pick the value from every existing Josh: company until it's all in one. It's amazing the amount that they're absorbing in the market.

Josh: We have a few things left to cover this week that I kind of want to go through quickly. Josh: The first one being the XAI Pentagon deal. Josh: XAI and Grok is now powering Pentagon's AI technology. And we had a crazy sentence. Josh: This is like a strange narrative timeline that we're running.

Josh: And we had an episode earlier this week that I would recommend checking out Josh: about Anthropic and their kind of difficulties they've been having in dealing Josh: with the government because they seemingly don't want to give access to all Josh: of the ways in which the Pentagon wants to use it. Josh: But it appears as if Grok and XAI did not have this problem. Josh: And the plan is that they're going to fully integrate Grok starting later this

Josh: month into military operations. What those are, I don't know. Josh: I'm not sure we'll ever find out. But I just find it interesting... Josh: That there is a new kind of role in government here for AI Labs and Grok is Josh: now going to be one of the front runners here. Josh: This comes on the back of, I mean, more drama with Anthropic, right? Josh: It was after we recorded the episode, there was still even more.

Josh: I mean, apparently Anthropic has an ultimatum where by Friday they have to either Josh: decide if they're going to comply with the Pentagon's request or not. Josh: And if they don't, what's at stake here for Anthropic? Ejaaz: So there's this thing I'm highlighting here called the Defense Production Act. Ejaaz: The Pentagon basically has two options if Anthropik refuses.

Ejaaz: On Friday, they can force their hand, initiating the Defense Production Act to basically say, Ejaaz: sorry, you legally now need to give me an uncensored version, Ejaaz: even though you declined, because it is now the official law and it's a case Ejaaz: of national state security, which, by the way, is an insane thing.

Ejaaz: Or they can take option two, which is blacklist Anthropik and all of their models Ejaaz: as a security risk to the nation, Ejaaz: which means that Anthropic probably ceases to receive any kind of government Ejaaz: funding or regulatory support in the future. Ejaaz: And it also pushes up all the other models that have signed partnerships with Ejaaz: the Pentagon, such as Grok. Ejaaz: And I hear OpenAI and Google is doing the same as well.

Ejaaz: The sentiment has been split on this, Josh. I've seen both sides. Ejaaz: One saying Anthropic just needs to wisen up. And I think that was a lot of the Ejaaz: argument that we gave on our episode earlier this week. Again, Ejaaz: please go check it out. Let us know if you think we're wrong. Ejaaz: But then the other side, like I saw Jeff Dean tweet this morning. Ejaaz: Jeff Dean is like the guy from Google. He built so many of Google's key products.

Ejaaz: And he said, I like that Anthropics taking a stand and it's important that they don't violate, Ejaaz: I think is what the first amendment or whatever it is where you can't surveil Ejaaz: all Americans. And I respect the fourth, the fourth. Josh: Yeah. It's seems heavy handed, right? Like I can understand not working with Josh: them, but putting them on a blacklist seems a bit extortive, Josh: especially when there's other options. Yeah.

Ejaaz: Well, here's the thing, like the government's favorite model. Ejaaz: And Pete said this himself, Ejaaz: the head of the Pentagon, he said that Claude is the best model and they've Ejaaz: been using it for over a year now so you can imagine if claude has been trained Ejaaz: with all your employees it's been entrenched on your data you kind of don't Ejaaz: want to rip that out and then like train a new model from scratch so, Ejaaz: Antarmic has everything to win and lose here.

Josh: Yeah, it's interesting because I'm sure we're missing a lot of context too, Josh: due to just the general private nature of how these deals work. Josh: So it's going to be tough to really give an honest opinion because I'm sure Josh: we're missing a lot of data, but interesting nonetheless. Josh: And congrats to XAI and the team for getting a new contract.

Josh: Last winner of the week, AMD. Oh my God, 15% jump in one day on a Meta deal. Josh: Meta is now working with AMD. I thought Meta was working with NVIDIA. That's what I thought. Ejaaz: But no, they signed a new $6 billion compute partnership. Ejaaz: And remember, it's not a deal now. It's just, we're specifically calling it partnerships. Ejaaz: These are crazy. Yeah, it's insane. The circular economy is back.

Ejaaz: The nature of the deal is basically Meta doesn't want to rely solely on NVIDIA Ejaaz: chips, although NVIDIA is the big boy here. Ejaaz: So they want to diversify their compute arsenal so that if anything were to Ejaaz: happen to NVIDIA or any of the other chip makers, they can still stay alive Ejaaz: and feed their product to you. Ejaaz: Now, Meta has been out of the kind of news for a while because their models Ejaaz: weren't able to keep up and they spent about, what was it?

Ejaaz: Like a hundred to maybe $200 billion to hire like something ridiculous, Ejaaz: like 50 people in their new AI team and they have had nothing to show for it. Ejaaz: Rumor says they're meant to be releasing a new model in a few weeks time.

Ejaaz: Avocado is the code name. and so if that is all it's hyped up to be then they're Ejaaz: going to need all the data center compute that they can and they seem to be Ejaaz: sure that amd will be the ones to be one of the main providers for them so they've Ejaaz: locked in that deal they're building out data centers and yeah amd stock jumped Ejaaz: 15 absolutely insane well.

Josh: Happy for all parties involved i think one thing throughout the episode there's Josh: a central theme in which there is no amount that can satiate the demand And Josh: for AI compute and energy and electricity. Josh: And like, I'm sure Meta would prefer to work with NVIDIA.

Josh: This is the option that they have because they need GPUs they Josh: need compute they need energy and they have no choice so Josh: we are going to continue this run this Josh: generational run that we've had really in the world of AI Josh: it doesn't seem like the top is in it doesn't seem like the top is anywhere near Josh: and that leaves me optimistic and wanting to continue to deploy Josh: capital into this ever-changing absolutely outrageous

Josh: market but that is another week of the AI Josh: roundup I hope you guys enjoyed this one I hope you enjoyed all the Josh: episodes this week if you missed any they're pretty short normally 20 to Josh: 25 minutes we talked about uh google had some pretty Josh: amazing tools where now we can create songs and jingles for Josh: the podcast we talked about anthropic at length and Josh: now we have this kind of roundup that is covering just about anything

Josh: that you would need if you don't feel satiated we Josh: have a second form of content which is the newsletter every wednesday Josh: release the think piece this week was about a new company that i am Josh: very excited about a startup that i guarantee 95 plus maybe 99 of the people Josh: listening have not heard of so if you're interested in that or if you're interested Josh: in the second roundup which is released every friday uh ejes is tackling that

Josh: one and i would highly advise subscribing the links are all in the description Josh: down below ejes any final notes before we we part for the weekend nope Ejaaz: Wherever you listen or watch us please like subscribe give us a rating it helps Ejaaz: us out so much and we will see you on the next one.