Limitless: An AI Podcast - THIS WEEK IN AI: SpaceX IPO TODAY, AI 1 Satellite, Claude Fable 5

Episode Date: June 12, 2026

This Week in AI, we discuss SpaceX as a possible buy ahead of a major IPO, focusing on its valuation, Starlink growth, and the company’s plans for space-based AI data centers. We also cover OpenAI’s reported data center deal and S-1 filing, Anthropic’s Fable 5 model, and Apple’s WWDC updates on Siri.------🌌 LIMITLESS HQ ⬇️NEWSLETTER:    https://limitlessft.substack.com/FOLLOW ON X:   https://x.com/LimitlessFTSPOTIFY:             https://open.spotify.com/show/5oV29YUL8AzzwXkxEXlRMQAPPLE:                 https://podcasts.apple.com/us/podcast/limitless-podcast/id1813210890RSS FEED:           https://limitlessft.substack.com/------TIMESTAMPS0:00 SpaceX IPO Frenzy3:19 AI Data Centers in Space8:38 Starlink’s Explosive Growth14:26 Hardware Scaling Advantage17:00 Valuing SpaceX’s Future22:09 OpenAI’s Gigawatt Gamble26:40 Fable 5 and Safety29:35 Siri’s Big Comeback33:18 Closing Thoughts and Reactions------RESOURCESJosh: https://x.com/JoshKaleEjaaz: https://x.com/cryptopunk7213------Not financial or tax advice. See our investment disclosures here:https://www.bankless.com/disclosures⁠

The question on everyone's minds, should you buy the SpaceX IPO? By the time you are hearing this, chances are SpaceX is about to go public, or they have just gone public at what is going to be the largest IPO in history, and it's not even close. I think we have very strong takes and opinions on where SpaceX goes. I find the question that everyone is asking me is, should I buy? Is this overvalued? It's going to be trading, I mean, right now, close to $2.1 trillion beforehand. That's an outrageous valuation. And I feel very confident that we have some pretty good takes that. are going to point in the direction of, actually, yeah, not only is it a good buy.

In fact, it's undervalued. And a lot of the news that we got this week from the S-1, from the new SpaceX releases, backs that up. So there's a lot of really strong prevailing wins, pushing SpaceX forward. And we are going to now address the question, should you buy SpaceX shares, should you get invested in the IPO? And more importantly, why? Yes, the answer is yes. But before we get into it, let's talk about the numbers of the IPO. very quickly. So they're raising $75 billion, which is three times larger than the largest IPO that

has happened so far. That was from Saudi Iranco back in 2019, and they raised just under $30 billion. This is roughly around $3.X that, but the demand for the $75 billion raise is already $4, as you're seeing on the screen. There's over $250 billion worth of demand, with one institution or a couple, multiple institutions offering up $10 billion chunks just to get in. involved here. Now, if you're looking at like the price per share roughly, SpaceX's S1 prospectus has put it at around $135 a share. Now, what's interesting about this is typically with an IPO prospectus, you provide a range. You provide a range and you try and find where the match is. SpaceX just went right to the high end of that range. It's $135 per share, which values it at

$1.75 trillion. But recent reports from Financial Times and Bloomberg says that this number is actually now close to $162 per share, which gives them a crazy $2.1 billion valuation. Now, the demand for this thing, Josh, is absolutely insane. They reserved, I think it was around 30% of the share allocation that they're IPOing with for the retail, for the regular average person. And that was distributed to the likes of financial institutions of banks like Charles Schwab as well as a broker such as Robin Hood. And the demand initially required you to have like something crazy, like half a million dollars in your bank account in some cases to get access to this thing. But they reduce that kind of like limit. But it is the most in-demand thing. SpaceX is the most in-demand company in general,

like whether it's just to buy the IPO or whether it's just to like work there. It is a crazy scene that we haven't seen before. Largest IPO raise ever. Yes. And it is also by far the most accessible IPO ever. We mentioned this in a previous episode, but 30% of the entire share float is being made available for the public, for retail as a part of this IPO. This is three to five times more than the average. And that means that a lot of people are able to participate. So there's a chance if you're watching this. You've actually been allocated IPO shares of SpaceX at the listing price. You don't have to pay that premium. We're going to see the market making happen today as you're watching this to see what it's actually going to launch at. But I suspect a lot of people watching this episode

are actually already shareholders and owners of SpaceX. And that's such a cool thing that everyone is able to participate. Now, in terms of the evaluations of SpaceX, why we believe this is undervalued, why we believe SpaceX is going to be such a remarkable company. There's a few pillars. The first is Starlink. It is internet and space from the sky. The second is manufacturing, their ability to manufacture starship and get payload to orbit at a very low cost per kilogram. And the third, which is one that I really want to talk about right now, is AI data centers in space.

We've talked about this a lot. What does this look like? How does it work? Well, earlier this week, we finally got an answer. And it comes in the form of a satellite named AI one. AI1 is the satellite that SpaceX is going to park on Starship, send into orbit, and actually put these things into space. And they're going to be training data centers.

They're going to beaming data back down to Earth. And now we finally have a rendering and we have some specs on what it's going to look like. In terms of power, there is a 150 kilowatt peak with 120 kilowatt average on each one of these satellites for reference. That's about 100 American homes worth of power per satellite. And then we're getting about 70 kilowatts per ton. So that's the efficiency part of the launch metrics where the more energy we can get per ton

the cheaper it costs. It's lowering those costs. We have compute slots that are interchangeable. And I think this is a really underrated part is the GPU modules that you're seeing on the screen on the animation we were just showing. They're actually hot swappable. So you could have Nvidia chips. You can have Google chips. You could have Amazon chips there. What they're going to test this with initially is going to be Nvidia's Vera Rubin platform. That's going to be on version one of these things. And in terms of the radiator, because clearly no one believes that SpaceX is capable of figuring out their more dynamics in space, given the fact that they have how many thousands of satellites currently operating in there, well, they figured it out. They said they're going to

have 110 square meter liquid radiator. And basically it's just gigantic sails that we're seeing on screen right now. To dissipate the heat into deep space, deep space is a huge place, even if you're in low earth orbits, geosynchronous orbit. And the wingspan of those will extend to about 70 meters wide, which is wider than a Boeing 747. So this is AI data centers in space. When we say that, this is what it looks like. This is how it's going to function. It's a really big deal. I want to shine a bit more light on this satellite because previously, like, Elon has just made bold claims saying that, you know, the valuation that we're raising SpaceX at now at a $2.1 trillion dollar valuation is primarily based on AI data centers in space. And then they kind of

signed a few deals recently with Google and Anthropics saying, yeah, they're going to be buying these data centers in space, but we still didn't know how. Now, we have the answer, and we have a bunch of the numbers and how it's built. Now, to be clear, what does this satellite look like? Picture a refrigerator that you have at home with 70 meter wings. This thing is 95% so big, basically. And that refrigerator is essentially a GPU server rack. It stores around 72 NvidiaGB300 GPUs, and the total compute power that it has is around 150 kilowatt. Now, immediately after announcing the satellite, Elon also stated that he's filed to launch one million of these data center racks, these satellites, these AL-1 satellites, into space.

If he is able to pull that off, the total compute power that will be orbiting in space will be around 120 gigawatts. That's around 3 to 4x of the total data centers that currently exist on the entire surface of Earth right now. So that is a hell of a lot of compute. but more so currently there's around 14,000 satellites in total existence across every single other company in low orbit space right now. So Elon is like aiming for like multiples more of that for this particular satellite. Now the wingspan is really important. You must be thinking like,

you know, 70 meters is absolutely ridiculous. Radiation. You need to disperse the heat. It's kind of like hard to do that in space. In fact, it's impossible to do that in space. You need some kind of like really ingenuous cooling mechanisms. That's what that wingspan is for. Yes, it is large, but Also, you're in space. You have all of that space to be able to do that. And the way that these satellites are designed is different to the ground data centers in the sense that they're going to be beaming lasers between each other to form an interconnected grid that they can transfer data between each other.

And that is the sole mechanism that is required to train and inference models, which is the entire point around SpaceX. Now, it's important to understand when you're looking at the valuation, when you're looking at the price, you might be thinking, well, I don't know if this is overvalued. It kind of seems like overvalued, even though I like what you're. Elon is doing, you have to understand that the whole premise is you're getting three companies for one share. It's SpaceX, yes, to be the kind of like highway to space, but then you have like the payloads, which is like all these GPUs that they're going to be training on the sun's energy, becoming a Kardashev, type one civilization, which all sounds grand, but like we now have the numbers

and the mechanism to be able to pull that off. And then you have the model itself under XAI, and then you have the distribution through social media platform, through app stores and all that kind of stuff. And it's not like Elon is depending primarily on his own companies to service all this demand for GROC entirely. He's signed major deals in the last, I think, three weeks with Anthropic, Google and Cursor, which equates to around $56 billion per year. So the previous critics were like, I don't know if SpaceX is going to be profitable in general. Now we have the answer. Like all this money that's being come from essentially neocloud payments for Elon's existing Colossus 1, 2, and 3 data centers on Earth is paying for itself.

It's paying for this entire expedition. It's an absolute monster of a company. And now I want to talk about a second pillar because we've seen AI1 what that looks like, what data centers in space look like. We also have visual graphics of the new Starlink satellites. And we've been talking about these new Starlink satellites for a long time now. Version 2 and most recently version 3, which is going up on Starship. And the stats and analytics between these two, comparing them, is pretty remarkable.

The first generation of this, version 1.5 of Starlink, had 24 gigabits per second download. which pretty small. If we look at version 2 of the satellites, which are what's available today, that's what's going up in the Falcon 9 rockets, the smaller ones, those have about 96 gigabytes per second, and they're able to deploy about 27 of those per launch. So that gives you about a total per launch of 2,600 gigabets per second.

Now, when you look at version 3 satellites of Starlink, that's where the numbers get pretty silly. It's a 20 times multiple per launch on bandwidth relative, to version two. This is enabled with Starship. We talk about Starship all the time. They've been doing really successful test runs. They're going to continue that program. Once it starts becoming reusable, they're going to put these satellites on it. And it's going to deliver 61,000 gigabits per second to the internet. That is 60 satellites, that is a 20x multiple. That is how you get to a true worldwide web that exist in space. And when you think about what SpaceX is doing here, they're creating

a high bandwidth clone of the internet that exists here, except in space. What happens with the internet here, we actually run wires underground through the oceans to connect the world. If we have satellites, you remove a lot of the threat vectors, you remove a lot of the sensorability, you just, you create this truly open and accessible network that's not only available to anyone with infrastructure, but available to anyone with access to the sky. And building that and making that available to everyone is such a remarkable business. And we've seen that reflected in the Starlink subscriber numbers. We have a chart here that shows the Starlink growth. And it has been, the most perfect exponential chart, I think I've probably ever seen in my life. It is the Starlink

subscriber growth. As of when is this, May 23rd, it is now sitting at 12 million users. And you could see, they've been adding an exponential increment. I mean, the latest 2 million users were added only in the last 81 days. They're averaging 25,000 and climbing. Elon and the Starlink team, they just recently revealed on an interview that they published two days ago, the new version of these Starlink terminals, which are even smaller, even higher bandwidth, even more accessible in terms of price. And it's just this unbelievable service that it's going to be a no-brainer not to have. If you ever require internet anywhere that doesn't need fiber optics, you should be a Starlink subscriber. And that's what we're seeing in the growth. So it's really, it's an unbelievable

company. Starlink is one of those pillars that's just like, it's crazy what they're doing. And no one else can come close to this. We have Fluorjent, which huge fan of. I really hope they figure it out. But their rocket just exploded on the launch pad last week. And their whole program set back and they're the only ones that were close. Even if everything at Blue Origin worked as perfectly as they hoped for, they're still five years behind, at minimum, probably 10. This is a full decade lead they have. So there's essentially a monopoly on space that SpaceX owns. And as it becomes more in demand to send mass to orbit, there's only one company that can do it. And they can do it damn well. So this might be a crazy take, but Elon's superpower, actually it's not a crazy

this is obvious, is scaling hardware from zero to one better than anyone else on the entire world. He's done it with electric cars. He's doing it with robots and now he's doing it with space rockets. Now, there's another advantage that he has which translates directly from that, Starlink, right? So you just mentioned that. You can repurpose Starlink's production lines to make this new AI-1 satellites. In fact, arguably, it's easier. See, when you're creating these Starlink satellites, they have this like phased array antenna, which basically is meant to like speak to the dishes that are on Earth to kind of like communicate and beam this internet back down to Earth. That is a really tricky thing to produce, but a satellite itself is fairly easy. Now, with the AI1 satellite doesn't need this phased array antenna. In fact,

you just need the laser projections to be able to communicate and talk with each other. I mentioned it earlier, like transferring data, training your model, inferencing the model. That is arguably easier to do. And so Elon already, it's not starting from scratch here. Normally he does zero to one. he's kind of starting from 0.5 to 1 to be able to pull this off. Now, in terms of timelines, I think he's aiming for the end of 2027 to have a full gigawatt worth of these AI-1 satellites out in space. So this is a very real thing. The timelines are, in my opinion, much shorter than we think, and he already has some of

the world's leading AI labs committed, at least in theory on paper, in contractually, to pay and purchase access to these things. Like you mentioned earlier, these AI-1 satellites are GPU interchangeable. It's not just built for Nvidia, although that's the primary kind of case right now. You can fit TPUs. You can fit Amazon Trainium in the future. He's meant to be the Talmad, the transporter for all these GPUs to be put out there to kind of absorb all of that Sun's energy and train whatever model.

He's kind of like agnostic when it comes to that. And I think that is one of the biggest bulk cases for SpaceX as I see it today. Yeah, think about how difficult it has been to build a data center. You need the, what is it, land power shell in order to get a data center stood up. And it is so remarkably difficult to get the approvals, to get the public sentiment to turn positive, to figure out where to source the energy from. It is this incredibly complicated process that's difficult and no one wants to deal with. And if you could just go over to Elon and say, yo, bro, I got a couple gigawatts that I need in orbit. Can you send them for me in the next few

months? That is such an easy outcome and one that I think everyone will want to use because why wouldn't you? And I want to circle back to the IPO and why I said earlier in the show that a SpaceX should be the most valuable company in the world. We barely even talked about XAI. We barely even talked about the other entities that exist underneath it. But the idea is that as AI continues to expand and continues to take up more of what we do on a day-to-day basis, it's very much accelerating in that world of bits that we talk about a lot. It's able to do ones and zeros very effectively and very efficiently. The difficult thing now, the bottleneck shifts to the physical world, this world of atoms where you have to actually

build things. You have to create the physical manifestation of this AI to allow it to be embodied or to give it enough energy and resources to train itself to become this AGI, the super intelligence. And when it comes to manufacturing, when it comes to real world engineering, there is really no better team in the world than SpaceX in terms of hardware engineering. And when I look at other engineering teams who are really good at creating physical objects in the real world, manufacturing factories, which are actually the product. And the factories produce these goods and services, but building the factory is the hard part. I also look at Tesla. And Tesla has done a remarkable job at building and manufacturing these objects at scale.

And what is Tesla now working on? They cut down their Model S and their X-line in exchange for Optimus, the humanoid robot. That humanoid robot is going to scale very quickly. That humanoid robot paired with GROC and XAI as the orchestrator is going to build this very autonomous capability of actually physically manufacturing things in the real world. SpaceX and Tesla are probably going to merge together. In the case that those two companies come together. There is no instance in which they do not become the most valuable company in the world so long as they deliver on the promise. And I think the way you look at these companies, the way you value these companies is you kind of like look at the roadmap and you say, are the products and

services that they offer in the future going to be significantly better than they are today? And if the answer is yes, then the idea is that the company should be significantly more valuable to match the added value that they're going to increase. I very strongly feel that way. We have Starship. We have optimists, the humanoid robots. If just those two things work and nothing else works, the amount of value that will be unlocked is unimaginable. It's really hard to fathom how large these companies can get. And we have this perceived limit of what a market cap of a company can be. NVIDIA is close to $6 trillion or something. But to imagine a company reaching $10, $20 trillion, $30 trillion, doesn't seem unreasonable when you think about the scope and scale of a company

like Tesla, of a company like SpaceX, merged together under the rule of Elon Musk. It's just this unbelievable opportunity that finally the public has access to. And that's why I am particularly excited to invest in the SpaceX IPO. I think for the longest time, the SpaceX Idea has been based on a lot of visionary ideas, kind of belief and this undying faith in Elon. But I do want to touch more on what the potential numbers might look like to make that multi-trenn dollar valuation

that you're talking about Josh, an actual reality. So there's two kind of like perspectives I want to share here. So like, number one, Hamid's over here kind of like shared his like, breakdown of what each of these satellites basically equate to. So if you launch one of these AI-1 satellites out into space right now, today, it's the equivalent of basically half a rack of GPUs that you currently find in a data center here on Earth. So it's around 120 to 150 kilowatts.

It's around half a rack. Now, today's data centers, let's say it's worth like one gigawatts worth of compute. That's the equivalent of 4,000 racks at around 250 kilowatts. So you would need to launch 8,000 of these AI-watt. satellites into space to be able to equate to one data set, one gigawatts worth of compute. And Elon is targeting that by the end of 2027, which is a lot sooner than most people would have expected. Now, there's a lot of costs that go in this.

The average launch costs, actually, you know, if you're being kind of like medium to kind of like conservative is around $10 billion, just for like the launch costs and not the materials at all. Now, Elon's whole idea is that he's going to bring these launch costs down pretty dramatically over the next three years. And at three years in, he's saying that it'll be more cost-effective than building a data center here on Earth. And so if we do napkin math with that in mind, right, three years from now, or maybe less three years from now, a Vera Rubin rack right now, which is like Nvidia's latest GPUs that they're rolling out, is worth around $8 million.

Now, if you coupled out with the launch costs at around 200k launch costs per rocket, which is what Elon's aiming for, we are going to hit at around 10,000. million to put a single Vera Rubin rack out in space. So $12 million on the ground, $10 million in space, you can see a world where the cost economics end up becoming favorable, especially if you're not just using Vero Rubin racks. You might be using cheaper Google, TPU racks or Avicentranium. So the idea is this is a big bet now. If you're purchasing this IPO, you aren't just in it for the near term. You're in it for this next three to honestly 10 year window where AI data centers in space become a much real thing, much more real.

thing. Yeah, and this is a roundup. So we're going to wrap this up in a second and get some more news. But the final point that I want to make is you mentioned the cost of reusability for Starship. If you look at the Falcon 9 rocket, there's two stages and only one of them is actually reusable. So there still is a higher cost. With Starship, 100% the rocket is reusable. And the actual cost to launch it in the case that 100% is reusable is just the cost of fuel. And the cost of fuel on a Starship rocket is actually cheaper than the cost of fuel on something like a Bowen 747. because 78% of it, I think, like almost 80%, it's just liquid oxygen. Liquid oxygen is like very abundant.

We breathe it all the time. It is just a liquefied form of oxygen with the remaining 22% being just liquid methane. And methane is like, it's the stuff you've like cook on your grill with. So this isn't very expensive. It's not crazy to think that they will need a lot of money to launch these things. And the idea is that that will bring the cost per kilogram down to sub $100. And that means if you are, you just if you want to go to space, depending on how many kilograms you are, you just divide that by 100 and you're on your way.

It's a cheap ticket. I'm going to lose some weight. Now, go on a diet so you can get a cheaper ticket to space. But I think that's kind of like the bulkies why I'm excited. I have to ask you, as we wrap up this section, before we get into the next one, which is going to be opening eye building this gigantic data center, is EJAS, are you going to be participating in the SpaceX IPO? Are you excited about it?

Are you going to buy some? What are your general thoughts? So if Robin Hood and my broker allows me to, which I've signaled in trust, absolutely. I will be as this goes live today. My thoughts in general are I wouldn't bet against Elon when it comes to hardware scaling. He's less proven on the software side of things. This is just me trying to be balanced here, but he has proven himself time and again on hardware scaling, and SpaceX is solving a hardware issue, one of the biggest hardware issues or challenges ever with AI data sensors in space. As everyone knows, I'm a big AI fat. So if he's able to pull this off,

more compute equals better models, better inference. He'll be able to serve agnosticly any AI company. It's an obvious buy for me. Yeah, I think I'm pretty aligned to me too. I have been, so I got lucky in the case that I had some private shares from about five years ago. So I have been a SpaceX holder. I plan to continue that going forward. I also requested some at IPO. I'm also just planning to continue to buy. Like, dude, I can get a 10 plus trillion dollar company for two trillion bucks. Sign me up. I think the people who are a little more time sensitive, who are looking to get a return sooner, that might be a bit iffy. I mean, $2.1 trillion is high. There's still a lot of variables that need to be worked out.

There's a chance that this thing goes public, shoots up, and then falls for a little while. I don't know. We're not traders. But I think as long-term investors as someone with a low-time preference, SpaceX at $2 trillion, two thumbs up for me. Let's keep the train going. Anyways, we probably should move on. This is around it. This is Friday. We got to fill the people in on what's going on. EJ's there's some news from OpenAI about a new gigawatt data center. We're back on Earth, by the way. We're talking about data centers. on Earth. What's the deal with this new Open AI news? Yeah. So it's, we're not, we're out of the world of single digit gigawatts now, Josh. We're in double

digits. Run it up expeditiously. Open AI has basically signed a major deal for a 10 gigawatt data center. For context here, the largest gigawatt data center, which is what Elon's building with Colossus 3, is aimed to be around 1.5 to 2 gigawatts worth of data centers for a single site to own. 10 gigawatts of compute, you need roughly around $500 billion. Now, obviously, Open AI, they have an IPO yet. They might be pretty soon. They don't have that kind of money. So they're being backstopped by their best friend's soft bank and of course, Nvidia. Jensen Huang is stepping up to backstop this entire data center campus in Ohio. It's going to be an absolute gargantuan beast of a site. And it kind of follows in the trend of Sam Altman and Open AI specifically,

who have been incredibly aggressive about acquiring as much compute as they can to serve their models. Now, if you compare them to Anthropic, you might notice sometimes when you're using cloud models, the performance gets a little degraded or you might get limited or you might hit your limits really quickly. That's because Anthropic has, you know,

fairly been conservative with computer and that's given them advantages in other areas. Open Air has been the opposite, and that's why it's always kind of like relatively free and flexible to use as much of your rate limit at Open Air as you can, which has led to arguably a better developer experience a better coding experience, a better LLM experience in general. And Sam is doubling down on that bet.

He believes in the future the demand for AI is going to outstrip the amount of available compute supply that he has currently on Earth. He is kind of not on good terms of the Elon, you could say. They recently just got out of the court case. So he's probably not going to be using data centers in space anytime soon. So he's trying to secure as much ground space as he can on this new site. Now, what worries me a little about this is just the pure amount of money

that you need. Now, obviously, this is going to be done in phases. 10 gigawatts of computer is going to take absolute years to spin up. But it's an important bit of news that I think kind of lays into this next headline. Josh, I don't know if you saw this, but Open AI is confidentially filed for an S-1. They are going to be IPOing relatively soon. Open AI is copying SpaceX with data centers. They're copying SpaceX with IPOs.

It doesn't want to work with Elon. All right, I'm getting the trend. Yeah, but it seems like this is actually official now. I hope they can build that data center. That would be amazing. But we do have an official filing of a confidential S-Elon one. And there was also a leaked all hands news report that I read that said, Sam is kind of using this as an option. There is the option to go public soon, but depending on how their model progress goes

over the next few months, they will then make that determination. His perspective is that the world will meaningfully change in the sense that they do get kind of like this runaway, a GI, self-fulfilling loop type thing. And he wants to be a private company in the case that does happen sooner rather than later. this is some pretty big grand visions that they're dealing with. So we'll see, but now they do have the option. They have confidentially filed. Someone out there is reading through this and probably having a field day, understand the internals of how this company actually works.

So that's pretty exciting news. Yeah, and there was another bit of news that Okina and I reportedly is looking to slash the cost or prices to their subscriptions, which is kind of a change in the directional trend that was seen from Anthropic. Google actually this week cut their prices as well. I think we're starting to reach a point where all these AI models, as good as they are, are starting to become more commoditized. They kind of all do the same things. The leap between the prior version and the current version isn't as large as it used to be, like, say, a year back.

And Open Air is taking the first step to being competitive towards Anthropic and Google. So Google slash the access to their AI studio to about $20 a month for their cheapest thing. I think Open Air is planning to do the same. And I'm guessing like Anthropic and OpenA are going to get into some kind of a bidding world. Open AI kind of like taking its time to go public, as Sam suggested in that leaked memo, is very interesting to me because you see Anthropic and SpaceX kind of like racing to raise as much capital as they can. And if Sam wants to pay for a $500 billion data center, he kind of like, I'm confused why he's going to get the money from. Maybe he's just going to keep borrowing privately. But it's just a unique case where Open AI is kind of breaking away from the pact.

And I'm wondering if these financial decisions actually end up paying off. Yeah, we'll see. We got to cover Fable next because it just released this week. you've been using it for a few days. I've been using it for a little while. It's a pretty amazing model. I've been using it for a lot of fun, extracurricular stuff I've found. Like, I created the Minecraft clone to play around with it. I've been building kind of games in 3D spaces and I found it to be really fun. It genuinely feels like this novel model architecture that I've been enjoying with. EJA, over the first few days that you've been using this,

what are your initial thoughts, opinions, kind of like after the dust settles? How do you feel about the new model, Fable 5? I think it is less sycophantic than opus 4.8. I'm not going to lie. When 4.8 came out, I use it primarily as my main model, but it was way more agreeable than 4.7. We're now back with Fable 5, and that might sound like it's got nothing to do with intelligence. To me, it is. It factors in the personality of the model, and I'm able to work with it longer over certain tasks.

It just understands what I want to do. The second thing I've noticed is I've been working on a couple of personal projects that, involve a lot of code and research, I can just one prompt, Fable 5, and it is able to just work continuously for up to an hour. Now, I know software engineers listening to this are like, I let my thing run for five to six hours or maybe even overnight, but for me, for the average person, it is becoming incrementably more valuable for a model that understands what you want, that doesn't come to you for every kind of like challenge it hits and just kind of like figures it out for himself. And I think this kind of trend of models doing

longer horizon toss way better than the average human is a subtle trend that is going to be increasingly valuable for corporate workers at enterprises as well as personal people that are like starting their own businesses or want to spend up multiple of these agencies instead of hiring an employee. I just think it's a wonderfully intelligent model and I'm excited to see further iterations of this mythos grade kind of type of model be released. But there was some pushback, right? Josh, like there was some policies that came out that were basically like, hey, like you get access to this public version of METOS 5, but it's going to be heavily safeguarded. Now, one of the biggest criticisms that they faced was if you ask it questions like,

hey, I'm trying to train my agent to become more efficient and use less tokens, it'll take that as some kind of an inclination that you're trying to learn how Claude Fable 5 is built and Anthropic installs these anti-distillation maneuvers, basically rediverting you back to the old model, Opus 4.8, but in this case, it would give you degraded quality intentionally because it thinks you're trying to steal its blueprints. Anthropics now walk that back because previously they were going to tell you when they were going to do it. And now they are telling you. They reversed that decision as of yesterday, basically saying, hey, we'll be up front with you when we're going to intentionally degrade the quality of your answer because we think

you're trying to like copy a lot of weights, which is a very political maneuver and it's nice as you see that they backtracked on that. There you have. So there's the update on Fable and the final topic of the week. We filmed an entire episode about Fable and Also this final topic, WWDC. So if you have not watched either of those, I highly recommend going to check them out. Pretty amazing episodes. We had a really strong week of fun topics to talk about this week. But I do want to trace over WWDC, particularly around Siri AI, which seems to actually

be as good as they said it would be. And we have to cover this because that comes as a surprise. This is not the Apple of the past. This is the Apple that promises things and doesn't always deliver. So the people have had to download the beta, actually fact check, try it for themselves. And the initial reviews have been spectacular. It seems like it actually works better than what they demoed in real time on stage. It actually works faster.

It understands context. It works very well on people's phones. And this is available through the developer program that Apple offers through their iOS developer membership. It seems like we're actually going to have a pretty powerful Siri experience. We're going to have on-device AI that is actually contextually aware of everything that lives on your phone and off of it. And they actually addressed something that I found really interesting.

Maybe you saw, maybe you didn't EGIS, about their removal. of Siri from Europe and from China in the sense that they will not budge on the privacy thing. They will offload some of the compute to cloud in the sense that or in the case that it can't run locally on your device. It's a little too challenging for that. And when they do, it's done so entirely privately. Europe doesn't want this to happen. So therefore Apple's like, no, no, no, we're not giving you the back door. We don't even have the back door. We are just not going to push it there. And I really admire the like standing strong on the stance of being private of running everything on device.

It seems like Apple has a grand slam, and it comes maybe a couple of years later than everyone would like, but this is something I am stoked to get, and I think the downstream implications of this are probably pretty big. There's a lot of casual users of something like ChatGBT, who pay $20 a month to have an LLM that they basically use as a Google Plus Plus. This now substitutes and subsidizes a lot of that all for free, running local inference on device.

So very excited, very bullish about Apple in general. You know, it was funny. I was reading the release article for Siri AI, and typically at the footnote, you'll see, you know, these regions are excluded. It'll just be a minor bullet point in tiny, you know, writing. For Europe, they had an entire A4 page,

basically saying, this is Europe's fault. Europe government is the reason that we can't release our product, and we are not budging because we just think, frankly, that this is ridiculous. It was a larger piece than the China bit, which just came in as like a paragraph. Obviously, China's, like, going to want access. I think everyone expects the China one.

Exactly. But for Europe, there have been sort of anti-AI and anti-privacy for quite a while now, and it has resulted in slowed down releases of the latest AI products and features in that region, which is just kind of like sad to see, especially, like, you know, that's where I'm from. And it's annoying that, like, I can't talk to my friends about the latest features because they have to wait, like, months to a year to get access to the exact same thing. That being said, a lot of the haters for Apple, which included me, which was me a year or go was like, I don't think Apple's going to be able to catch up. We have been proven absolutely

wrong. And I want to make that very clear on camera right now. Apple has a distinct advantage, which is they own the entire consumer hardware ecosystem, 3.5 billion devices. And now they have the hardware, the chips, to run some of the best frontier models on your phone. They may not be as large as on topics. They may not be as large as open AIs, but they're trained on your data. And you can do something that none of these other AI labs can do, which is ask Siri to basically find that text that where your mom told you to do the thing and you forgot what it was or, you know, bring back that memory of like when you were hanging out with your best friend doing blah, blah, blah. It has full context, grounded context on your entire thing. And that is a feature we haven't

seen and one that I'm personally super excited to use. So that is all the news for today folks. Josh, any final thoughts? You're caught up. No, that's everything. The vibes have been crazy high this week. The news has been insane. Lots of things that, like, I think we're probably personally excited about have been released. We got WWDC. We got A, new frontier AI model, and we got the biggest IPO in history all in one week. It's crazy. We also got the Knicks up yesterday. Please, let's not forget. For the New Yorkers. EJ's and I, both in New York, both big Knicks fans, huge. Hopefully the day after you're watching this, they win the championship. That'd be pretty amazing. Given the vibes this week, I suspect

that's likely. That feels probable just on a vibes-based opinion. But yeah, very excited about all the things that are happening. Very excited that you have made it here to the end of the episode and are still listening. So thank you so much for all the support. As always, if you enjoy this, as always, also, don't forget to share it with a friend. Anyone who you think might be interested, anyone who asks you, should I buy the SpaceX IPO? Maybe send in this video and say, not only should you buy it, you should set, I'm not, I can't go that far. Don't make your own. This is not financial advice. Actually, if you disagree with us, if you disagree with us, we actually want to hear from you. Like, we have been combing through the numbers. We've been combing through the projections

and we're like, this kind of makes a lot of sense to us. But if you're adamant that way, wrong, let us know in the comments. We're hearing. We're going to hear you. We're going to see you. We're going to respond to you. So we want to hear from you whether you hate our opinion or you love it. Like, tell us where we're wrong. Tell us where we're right. Yeah, and I'm also going to disagree with you. So I'm ready to go to war in the comments section. Bring it on. Tell me why SpaceX is the most valuable company in the world. Come on. But yeah, that's it. Thank you guys always so much for watching. Have an amazing weekend. Enjoy the weekend. Hopefully, by the time you're watching this, SpaceX is going up only. That'd be great. If not, I'm sure we'll hear about it. Long

The thesis is long term. Yes, we're long term. This is a low time preference show, man. I'm here for a long time, not a good time. Or a good time and a long time, I guess. But it doesn't matter the timelines that it happens on. But yes, thank you all so much for watching. Have an amazing weekend.

And we'll see you next week for another set of episodes on Limitless. See you. See you guys.