Ai Investors Are Getting Nervous

Welcome back, everyone. Today on the Joseph Carlson Show, the tech rally showing signs of losing steam specifically for AI companies. We're seeing this now in the data. A lot of investors are getting a little bit nervous. In fact, they're selling out more than they're buying in. The market's been flat and even down a couple days now, even though interest rates are being lowered. So what do we make of this?

Well, we're going to be looking at some of the data and the reason that investors are now becoming nervous. Now, we also have a lot of other news to get to in this episode. For example, the Trump administration, the US government is now taking an equity stake in Intel of 10%. Is it a good idea for the government to be buying private companies? And what is the purpose of doing this in the 1st place? We'll be discussing. We also have Google stock now surging to all time highs.

This one seems to be on a winning streak and now that it's at all time highs, does that mean that it's expensive? We'll be looking at Google stock with a discounted cash flow analysis to try to determine whether or not this company's expensive. Now, we also have a lot of other news. There's Netflix with K Pop demons making it into the box office. This is bolstered Netflix's stock.

We have the CEO of Uber going on an interview and talking about the technology between Waymo and Tesla and his take on it. And we have our financial TikTok review. We have someone that says that he has the solution to the United States $37 trillion debt problem. He has it solved. In fact, he's willing to solve it himself. We'll be looking at his solution in this episode as well. So we have a ton to get to in

this episode. And we start things off today with the signs that we're seeing, the data that we're seeing that this tech rally is losing steam. Now as we look at the data here, I first just want to point out over the past year, not even just year to date, but in the past trailing year, if you haven't been making money, I think you've been doing something wrong. It's just you got to switch your strategy. If you're not making money, you should be making money,

especially in bull markets. You should be making a lot of money in bull markets and that's what these portfolios have done. For example, the passive income portfolio, my main one here, has made around $100,000 in gains in the past trailing year.

That's not additions, that's not me contributing money. That's in gains. And this year we've made around $50,000 in gains, so $100,000 over the trailing 12 months. Just year to date, it's around 50,000. Now, which companies are contributing so much over just the past year? Well, we have companies like Booking Holdings. This one's up huge over the past year. This is one of the best investments that I've made recently. Microsoft is another huge gainer, around a $40,000 gain on

that one. S&P Global has been great. MasterCard has been great in the Story Fund in just the past year. Netflix, which was already my largest position, grew bigger and bigger. Of the $84,000 in gains, around 60,000 of that is in the trailing one year. And then almost all my gains in Amazon are in the past year as well, $45,000 of gains, like 30,000 plus of that is in the trailing one year. Of course, Google, Microsoft, and S&P Global have helped out

as well. This tech rally has been really great for investors that have taken advantage of it, that have positioned their portfolios correctly. But now we see news that it could be coming to an end, or at least slowing down. The prospect of a lower core interest rates is boosting many parts of the market. Real estate firms, banks, manufacturers. But the outlook for Wall Street's most popular stocks, the Magnificent 7 tech giants that have led major index to

record highs is much less clear. The market leaders these mag seven companies have been buffeted recently by questions about the potential for artificial intelligence, concerns about their increasingly stretched valuations and competition from hitherto unloved parts of the market. So we have increasing competition. We have concerns in doubt about AI as well. In the coming days, the tech sector will face a key test when NVIDIA, the world's most valuable listed company, reports earnings.

What investors learn there could be key to further gains. So this week we have the big one in question, NVIDIA, and they're going to be reporting their earnings and giving guidance for next quarter. Now when NVIDIA gives guidance, that's the more important part because they can either guide higher or substantially higher, showing that there's still continued momentum and increase in exponential growth or they can guide down and say that growth is actually decelerating

a little bit. We're not going to be guiding up as much. You know, we're going to be cooling off for a period and that could cause the market great concern if that happens. We have investors getting ahead of this. One of them is Josh Boyer, 43. He said he's trimmed his exposure to make a cap tech stocks like NVIDIA, Microsoft and Meta by around 25% in recent

days. The Phoenix resident said that shares have grown expensive relative to the company's earnings and said that he is satisfied with the outside returns over the past several months. Quote, anytime I see them getting top heavy, I'm totally fine taking some money off the table, he said. So this is an investor, which I think is very reasonable. I don't think he's dumb for doing this. He's looking at these companies, Meta, Microsoft and NVIDIA.

He's looking at the incredible erformance they've had, the valuation expansion overtime, and he's taking 25% off the table. Seems like very reasonable, I think even good portfolio management. And apparently he's not alone in this. There's a lot of people selling out of tech companies specifically, even though Jay Powell signaled that he's going to be lowering interest rates. So this seems counterintuitive, but a lot of people are choosing to do this.

The NASDAQ Composite performed far worse than the Dow Jones Industrial over the past week. Now, what you hear about online are still the people that are hyper bullish on these companies. They'll never give up no matter the valuation, no matter what the situation is like. But underneath the surface, there's a lot of people that are growing a little bit more cautious. The data suggests that many individual investors, often the most enthusiastic fans of the tech firms, have grown more

cautious. They were net sellers of the stock for the first time in two months during Tuesday's steep tech declines. It's according to JP Morgan report, Particularly for firms like Palantir, Google and Broadcom. Either way, the analysts now say that conditions are primed for a pullback. The NASDAQ has climbed some 41% from its April 8th low, lifting valuations for some of the biggest tech firms to sky high

valuation. At the same time of these sky high valuations with the NASDAQ companies, there's stubbornly high inflation readings and deepening cracks in the labor market. This has left investors jittery and many expected PAL to sound cautious about cutting rates in his Friday speech. Then on top of that, we have these added complications, I'd say added problems, where we had ChatGPT being talked up to be groundbreaking.

Sam Altman shared the Death Star and things to kind of hype this product and then it was released and it wasn't that groundbreaking. It was iteratively better. It was an improvement, but it was more like going from the iPhone 13 to the 14 instead of the iPhone 1 to the two. It was not that big of an iteration going to ChatGPT 5.

So we have what seems like a slow down in the development of AI. While all these companies in the QQQ are hitting their all time highs in valuation, we have more and more data pouring in to show that we could be nearing a peak here. Open AI Chief Executive Sam Altman just compared the bubble in AI today to the.com bubble. Now, he did that while running one of the biggest AI companies

in the world. So obviously he doesn't think that his company's in a bubble, but he's saying that many of these smaller tech companies are looking a little bit bubbly, they're looking a little bit overvalued, and we're getting to this tipping point here. We also have at the same time, Meta recently just freezing their AI hiring spree. So Mark Zuckerberg hit the gas pedal. He hired a bunch of people, and now he's saying no more, we

don't want any more AI talent. We're going to put an abrupt pause to that as well. And then at the same time, and again, this is all news, just in the past week, we also have at the same time a new MIT study saying that 95% of generative AI companies are failing. They may be generating AI, but they're not generating revenue. They're not making any money for

investors. That's another thing that's caused investors to become a little bit more cautious overall, as the kids say, there's been a vibe shift. Things have changed just over the past week, like they often do in the market. We have all this data of staggering valuations, lots of people that have made a lot of money in a short amount of time. There's people now looking to the future and concerned about Nvidia's earnings and whether or not they'll guide up and by how much.

We have concerns of devaluation. We have prominent people like Sam Altman talking about bubbles. We have different people now starting to take gains and take money off the table, all happening at the very same time now. I've been somewhat outspoken whenever the market gets a little bit feeling like it's expensive and when it gets feeling like it's cheap. I made a lot of videos about the Trump tariffs and the panic that happened in April. I made many.

You can go look at all of them. And in each one of them, I said I was buying the tariff dip. I was buying it aggressively, and I did. And even during that time period, I also posted constantly on X talking about how this is an opportunity. It looks like the walls are caving in. It looks like the world's caving in. No one's bullish at all. It seemed like the US was retreating from trading with anyone. We're becoming turtles. We were offending all of our partners.

It looked very grim for about a month, and then after a month everything changed. The vibe changed, the sentiment of investors changed, the market surged, and investors that bought that dip made a lot of money in a short amount of time. But now we find ourselves back on the other end of the spectrum here with the stocks going up so much in just a short amount of time, going up thirty, 4050% in many cases, it seems like it's now time to become a little bit more cautious.

So here's my advice with anybody that's getting a little bit nervous about the valuations of the market or the fact that there may be a sell off now that we've gone up so much recently. My advice is that if you're going to look over your portfolio and look over your holdings and do analysis on them of what you really want to stay owning and what you're not so sure about, do that analysis now.

Don't wait. Don't wait till the market's down 10% and then you're concerned and then you look at your holdings and decide what you really want to own. The saying goes, if you're going to panic, panic early, sell your stocks early while you're getting great bids, while the valuations are high, while you've made a lot of money.

Don't wait till the offers go down where somebody knocks on your door and says, hey, I'm going to offer you $50 less than I was just a a week ago for the same stock. Don't wait until that happens. Look at your portfolios today and look at what you want to own today, what you're really going to stay invested in even if the market falls 1020 or 30%.

When I do that, I do continual analysis on My Portfolio and I make sure that the companies that I own are ones that I would still want to own even if they went down in price. Companies that I wouldn't become discouraged and sad and sell when they're 20 or 30% lower. O The type of companies that I like to own are incredibly high quality. They're ones that I know will eventually recover.

If you don't have that type of conviction in the holdings that you have, it's time to make adjustments and the time again to do that is before they drop in price. Now, I don't want to be mistaken here. I'm not saying to sell out of your high quality companies. I'm not selling most of my positions. The only one that I've really trimmed is Texas Roadhouse. That's the only company that I've really taken some gains in and I put that money right back into other compounding machines

that I own. So I did a small, small, but meaningful trade in My Portfolio. But overall, I'm keeping My Portfolio relatively the same. I'm invested in companies for the very long term. But at the same time, if we rewind to April when the market was down, when valuations were being crushed, when good companies were being sold off and investors were scared, that was a time to be different from the pack and be bold and

assertive and buy companies. And on the flip side of that, right now, I believe it's time to become a little bit more cautious, not quite as bold or assertive, but a little bit more conservative. Still hold great companies, watch them compound, but I think it's a great time to look at our portfolios and make sure we have what we really want to be owning. Now let's go to move on to some news. Now, the first story we jump into is one that was a little bit shocking when I first heard

it. the United States government, the actual

government of the United States bought a 10% equity stake in Intel. Now they didn't necessarily buy it because they didn't have to pay anything upfront, but there was a deal, there was an agreement.

And this agreement has led to the government taking a large stake in a very big company, something that we haven't really seen in the United States. And even though other countries have sovereign wealth funds, those in and of themselves, they operate a little bit differently than how this deal happened. Now, this deal, again, has lots of mechanics behind it, and we'll be looking at those mechanics in a bit in the

details. But I first want to go into the back story of how this deal even happened. What is the story leading up to the United States government, to the Trump administration brokering this deal where they now have a 10% equity stake in Intel stock? Libu Tan, this is the CEO of Intel was anxiously preparing for the biggest meeting of his life. Just five months into his tenure as chief executive of Intel, Tan was already fighting for his job.

A few days earlier, Donald Trump had demanded that he stepped down and his past ties of the Chinese military. So Trump is saying you need to get out of this big U.S. company because you have passed ties to the Chinese military. That in and of itself is very threatening from the president.

So when the president's tweeting out that an an individual CEO of a company needs to step down, like that company's going to be in a flurry, that's going to cause a massive panic, especially for one like Intel that is in desperate need of good leadership. They've already swapped out CEOs a couple times. The past CEOs have not done a great job with this company. Now, of course, this tweet or truth or whatever you want to call it, the demand sent Intel's

leadership into a panic. They immediately contacted the White House for a meeting, and Tom flew to Washington, huddling with his advisors for hours on Sunday, August 10th. His team reassured him that the president would hear him out because, quote, Trump loves meetings with CE OS, even those who he has publicly attacked, according to people with

knowledge of the conversations. The next day, Tom met with Trump, the Commerce Secretary Howard Lutnick and the Treasury Secretary Scott Besant in the Oval Office. He sought to convince the president that he wasn't a Chinese spy and that the US government has a long standing or long term interest in bolstering Intel, one of the only homegrown manufacturers of computer chips that power the modern economy. The CE OS arguments proved

persuasive. The president also took a liking to Tan, the Malaysian born, Singapore raised U.S. citizen who once considered a career as a professional baseball player and backed off in his demands for the CEO to be ousted.

So basically the CEO here, he did the right thing, which is instead of having an online battle, this tit for tat back and forth between President Trump and the CEO, That's the route that you don't want to go. What you want to do with Trump, I, I just think with his personality is get on a plane and go meet him in person, give him a, a really solid handshake, talk about, you know, that you like what he's doing, you want to invest in the US, you know, that type of thing.

And that's exactly what he did. He talked about how they're one of the big U.S. companies. They have huge incentive to invest more into the US. And he got on Trump's good side. So now Trump is no longer wanting to oust him. He made friends with Trump by making a visit in person. Now, that's the story so far. But there's more to this. The truce came with a cost. In return for Trump's support, the administration proposed taking an equity stake in the

company. It decided to convert nearly $9 billion in grants promised to Intel as part of the 2022 CHIPS Act into a 10% equity stake in the company, an unusual arrangement that makes the government Intel's biggest shareholder. So they're saying this is under the CHIPS Act that we now have $9 billion to put into Intel to become the largest shareholder. Now, that's a bit of background of how this deal transpired, and you can see that this may raise

some concerns. Why did the US government decide to take equity out of Intel? What was the specific reasoning behind it? Was it just for the CEO to protect his job? Did he exchange job protection for selling part of Intel or letting this deal transpire? A lot of these questions remain, but we have a bit more detail on this from people like Kevin Hassett, who's part of the administration. He was part of this deal as

well. Let's go ahead and listen to him being questioned by Andrew Ross Sorkin and some of the responses he gives. In the past, the federal government has been giving money away lickety split to companies and the taxpayers have received nothing in return. And so now what's happening with with the Intel deal is the CHIPS act of money is come going out as planned. But instead of it just going out and disappearing into the ether, the US taxpayers are getting a little bit of equity.

I can really not see how anyone would think that's a bad thing, unless you thought that the government was then going to go

in and run the company. But but these are going to be shares that don't have voting rights the government's going to stay out of. It So the argument from the administration and people like Kevin Hassett is that the US government is done being the Piggy Bank for all these big companies and instead of just handing out money with asking for nothing in return, they're now going to take equity stakes in these companies that want this money.

That's what their argument is. But I think it's a rather weak argument. First of all, the history of the US government, when it hands out money to large corporations is almost always to get that money back through loans. That's what happened with the banks. Remember when the banks got bailed out by the US government, it looked really bad because the US government was giving them, it was giving them a get out of jail free card, which a lot of

people didn't like. But if you look at the details of those deals that the US government made with their infusement of money in those banks, all of them have paid back the government with interest. In fact, in terms of loans, those were great loans being paid back to the taxpayer. So there's many cases where the US government has lent out money to private companies or different companies that are really important, but they've gotten paid back and the taxpayer has been made whole.

And there's no reason why they couldn't do that in this situation as well. The problems with taking an equity stake in a company, the problems with the US government or the Trump administration making this investment is that now Trump is aligned with Intel. He has personal vested interest in Intel succeeding. Think about this.

If Trump buys a $9 billion stake with the taxpayer dollar in Intel, and then the stock price starts to trend downward and it goes down and down and down, and then there's news articles saying that Trump made a bad investment. He's losing taxpayer money in Intel stock. What can Trump do to try to bolster that investment? He could do executive orders or different laws to benefit them. He can make it so that they have more favorable treatment with

tariffs than other competitors. He could do a lot of things to bolster Intel stock to make his investment in the company look better because now he has his reputation attached specifically to that company. And it also extends further from there. Now that the US government is invested directly into Intel by owning a huge portion of the stock, being the biggest shareholder. It also shows competitors to Intel that the US government is

vested in this company. There could be the case where other competitors that wanted to do business in the United States, that wanted to build manufacturing plants here now view it as more unfavorable because they have a bigger competitor, which is a government backed Intel. So there's lots of 2nd and 3rd order effects to this. I think there's a lot of things that could be unexpected consequences, as well as the fact that I believe that this is

a massive slippery slope. Some people refer to the slippery slope argument as a logical fallacy. It is not. The slippery slope argument is real when the government steps its foot into one part of 1 industry, like it is taking a direct equity stake in a company

like this. If it becomes acceptable and normal, we could see a lot more of this going on, different excuses, different reasons for the government to be buying more and more private companies, which could transition this from less of a free market capitalist system where the government has vested interest in certain companies succeeding over their

competitors. And overall, my reaction to this deal is I'm very concerned that this will be a slippery slope situation that we're going to see more and more deal making, more and more of the government taking equity stakes and less of free market capitalism. I hope that's not the case. I hope that this is a complete one off situation that it's not

repeated on a broader scale, but we'll have to wait and see. Now moving on, we get to an AI company that continues to win. In fact, this is one that I talk about frequently, but it continues to surge up into all time highs. And this is a situation where even with Google, some investors could become potentially concerned that this stock is getting a little expensive because it's now at $210.00 per

share. And again, if we zoom out here, if we look at the chart over time, let's take a look at the price chart, we can go back five years or 10 years. This is an all time high for Google. So we did it. This one is a real winner. We are winning with Google stock. I'm really glad to see that Google stock is doing so well, not only because it's a big holding of mine, it's in both of my portfolios, but also because it's a company that many

investors own. I can see the analytics on Qualtrim. I can see which stocks are the most searched, which ones do people have in the most watch list, Which ones do people have in their portfolios. And Google is one of the most heavily owned and tracked stocks in the market by retail investors. And I love that it's doing so well. And I have reason to believe that Google's just going to keep doing better and better and better. We have here that Google's AI mode is expanding globally, and

it adds a new agentic feature. Users can now use the AI mode to find restaurant reservations, and in the future they'll be able to find local service appointments and event tickets. Users can request dinner reservations based on multiple preferences such as party size, date, time, location and preferred cuisine. AI Mode will then research or will search across different reservation platforms to find real time availability for restaurants that match the

inquiry. It then surfaces A curated list of options to choose from. This new capabilities rolling out to the premium users already and they have a little bit of a mock up of the user interface. So basically if you want to find a reservation at a restaurant, you're now able to do it directly through AI Mode and it will have a different interface that shows you it Just like this. They say that the AI Mode will now see search results as tailored to their individual preferences and interest.

For example, if someone searches I only have an hour, need a quick lunch spot. Any suggestions? AI mode will use their past conversations, along with places they've researched or clicked in the search of maps to offer more relevant suggestions. So if the AI mode infers that you like Italian food and places without outdoor seating, you'll get results suggesting options with those preferences.

So here's Google leveraging all the data that they already have, the maps, you know, they'll leverage your Gmail, they'll they'll probably leverage everything that they use in their ecosystem to better inform and better help out with suggestions with your searches. Now with Google, it seems like there's nothing that can stop this company at this point. It will continue to just compound, take more market share and dominate with its continual incredibly strong earnings

reports. Mark Mahaney also remains bullish on this company. It's still his top pick in large tech, and he says that Google is now in the lead in multiple categories. Google is running the race. It's in the leadership position or one of the leaders in AI. And I think a couple of months ago at 160 when the stock was down there, I think they were real fears that it was going to be left behind. But no, look, with Gemini, I think they've got one of the best large language models out

there. They've obviously got a wonderful distribution platform in Google, the most widely used Internet asset out there. And then we've also got coming up this week, almost certainly judge's decision in the antitrust monopoly case. We hope that it's going to be a clearing event. It's very hard to handicap the the outcome of the event. But at the end, if you look at all of the AI companies that are out there, this is the cheapest 1. I mean, it's AIDS at the direct

AI companies. This trades at 19 times earnings and I think there's still material upside. That's why we like the stock. He mentions that there's still a clearing event with the judge's ruling that's going to happen sometime this week. So that is imminent.

And we'll see whether or not the judge takes the extreme stance of forcing Google to sell off Chrome, which will lead to more uncertainty, more appeals, years long of Google having that way over their head or whether or not they come up with a better, less extreme remedy for the situation.

But either way, Mark Mahaney still believes that Google stock is undervalued and so do I. Now, when we get into a discussion question about valuation, it's important to note that even though a company has gone through really good performance, even though it's reaching all time highs, that does not mean that it's getting expensive or that it's overvalued. When we look at Google, we can just take a look at the DCF calculator.

Now this is a tool in Qualtrim where you can make some simple assumptions about a company, both their multiple and their growth rate. And from those two metrics alone, you can determine what your rate of return is going to be owning this company. If we look at Google, for example, the current PE ratio is 22. We have earnings per share growth of 19.4%. So fast earnings per share growth. And we can make a couple assumptions here.

For example, if we assume that the earnings per share growth is going to moderate over time over the next five years, it's going to grow at 15% that the appropriate earnings per share multiple is a 25. That would make it so that we have a 16 percent, 16 1/2 percent return per year every

year for the next 5 years. Now we also have our desired return based on these assumptions, the 25 multiple, the 15% earnings per share growth rate and a desired return of 15% per year, which I believe is a good benchmark that will likely beat out the S&P 500 in the QQQ. We could still buy Google up until $224 per share and get that 15% return. So right now we're getting a 16

1/2. We can continue to buy the stock until it's 224. And with these assumptions, we'll still outperform the market. Now, even if we moderate these assumptions, let's say that Google doesn't grow quite as fast, that the earnings per share growth rate goes to 13% and the multiple moderates at around 22. That still gives us a 12%

annualized return. That's a really strong return that's still likely to outperform the S&P 500, but it'll probably come in in line or a little bit above the QQQ. So even with more moderate, more conservative assumptions, we're still outperforming at this point. But I have no good argument, no reason to believe that Google deserves a 22 PE ratio. And that's why Google stock

today remains undervalued. Now Speaking of stocks that are doing well, we have Netflix. This company is up a little bit

today. It's outperforming market on the day. And we look at it this year, it's up big this year, 38% gains. It's leveled out around the 12112 fifty mark. So it's not at all time highs, but it's but it's been trading around this range. It's found a little bit of support around this range. But I believe there's a good chance for Netflix to gain the remainder of this year. And it remains one of my biggest positions.

When we look at the reason why one of the concerns of Netflix, in fact, I would say it's one of the only concerns about this company is total market share. The market share for Netflix is held roughly steady with slight gains year over year, but YouTube is far outpacing it and watch time and market share gain even though Netflix is growing. But Netflix is showing signs that it's getting a lot more engagement recently, especially with this new hit called K Pop Demon Hunters.

It's a very interesting movie. It's it's all singing, it's animated. It's mostly targeted towards kids. If you have kids, they're probably playing this one on repeat. The numbers of how much this movie has been seen is staggering. If we want to compare this to other huge movies on Netflix, we can take a look at the chart here. We have the dark line there. That's K Pop Demon Hunters, which had a very slow starting

week. You can see that it barely bumped up. It was beat by all these other premieres, but then it just seems like it it caught hold. All all the kids, all these people started watching it over and over again and it's just steadily surpassing every other movie with no end insight. Look at the growth of this. We have Carry On. We have Red Notice. We have Don't Look Up. These are huge movies. One of them has Leonardo DiCaprio, right?

These are big Netflix originals and all of them went up fast, but then they started to plateau. The one that continued up for the longest was Red Notice, big general action movie with a lot of big stars in it. In fact, I think it's almost a certainty at this point that K Pop Demon Hunters is going to crush all of these. Now, Netflix being the savvy company that they are, they actually bought this property from Sony. So Sony produced it. Netflix said, well, we'll take

that, we'll buy it from you. They used their massive distribution like they've done before, many times repeatedly to make it a massive hit, the number one hit. And now that they have it as a massive hit on their streaming service, they also just showed it in a very limited way in the box office over a weekend. K Pop Demon Hunters LED all films over the weekend with 16 to $18 million in ticket sales.

Now, keep in mind, they made this much money, $18 million in box office sales without even going into AMC. So AMC did not do this limited screening. I think this just shows the ability for Netflix to pull a rabbit out of their hat. Every single year, every quarter, there's some big phenomenon that comes completely out of left field with this one. It's literally a movie about this K pop superstar trio who doubled as demon hunters.

Now the members of this trio, they're like the good guys in it and they must protect their fans and faced their biggest enemy yet, a rival boy band made-up of demons in disguise. And that right there, of course, is the biggest movie of the year, one that's going to have the most watch time almost by far. And it's one that nobody could have predicted. Now moving on, we get to an interview with Dara, the CEO of Uber. He goes ahead and he shares his thoughts on the safety concerns

and the technology currently. I think in the near term is

going to be very difficult and Elon would tell me I'm wrong and never bet against him. But it's my instinct that in the near term it's going to be very difficult to build a camera only product that has superhuman levels of safety. And again, now at some point will it be possible?

Quite possibly, yes. But if you can have instrumentation that includes cameras and Lidar and the cost of LIDAR, you know, solid-state Lidar now is 405 hundred bucks, why not include LIDAR as well in order to achieve superhuman safety? So possible, yeah, it will be possible. I don't know when, but is the possible the better product? I'm not sure I would.

I All of our partners that we're working with now are using a combination of camera, radar and LIDAR and you know, I personally think that's, that's the right solution. Dara clearly believes that the better route to go here is with Lidar. He even addresses the argument that it's not scalable or it's too expensive by saying that solid-state LIDAR is now about 500 bucks, so why not add it when it is proven to show superhuman levels of safety. And in fact, you have more data to work with.

You have multi model data, you have Lidar, radar and camera, which if you synthesize that data together, it creates a more clear data set. Even the people that have worked on the robotaxi at Tesla said that there is a margin between the data set that you get. In fact, when Tesla decided to remove the sensors out of their vehicles, that's when they started to have the phantom breaking issue where the car will randomly break if it sees a shadow wrong and interprets it

as an object. That's a problem that still happens to this day. So I think it's going to be more challenging for Tesla. We'll see if they do it over time, but Uber is probably OK either way. Now finally, we get to the most important segment of the day,

which is the financial TikTok reaction. This individual here has a plan of solving America's debt. We have $37 trillion in debt. We're gaining like another trillion dollars every every year. It's just an incredible amount of debt. So I'm happy to see that this this individual is is he's going to solve it. He has a plan to solve it. Let's go ahead and listen to his plan. No, America is $1 trillion in debt, but I know how we could solve this. Let me take the debt, bro.

Someone has to do it. Someone has to step up and be a freaking trillion dollars in debt. And I'm not afraid to be that guy, All right? I'll be the one that's freaking in a trillion dollars of debt because you know what I'm saying? Who's that he? He, this is his plan. He's going to, he's going to take the debt for us. That's really kind. I think he's really, you know, that's a lot of debt. Some people complain about having like twenty, $30,000 of debt.

They might have a mortgage payment or a car loan. Imagine having $37 trillion of debt. That'd be so tough. Like imagine those interest payments. You have to pay $700 billion in interest per year. That's a lot. I think that would that would weigh down on me. Like I even with a higher income than average, I still think I'd have trouble paying off $37 trillion of debt. So that's really kind of him to to take this on. I think he continues on here explaining how he's willing to

be this sacrificial lamb. Then in debt too. Who's the one that's going to pay this debt? This debt doesn't even really exist. Let me be the one to have this debt bro 'cause then I could say I'm a trillion dollars in debt. I'm a trillionaire, you know what I'm saying? That would make me a real trillionaire. He may have a a misunderstanding of what it means to be a trillionaire. He also mentions that he doesn't believe the debt is even real.

That's the point that we've gotten into in society. The debt's so much. It's not even a real number. Like we're you know, who even owns this debt? Who do we have to pay back with it? Is it even real? But either way, in TikTok, we only get the finest and this is another example. He's willing to take on all the step for us and solve this problem once and for all. And for that, I commend him. Now that's going to be it for this episode. Hope you enjoyed seeing the next one.