TBPN Live - Hill & Valley Gigastream, Apple's Next CEO, OpenAI's Non-Profit | Scott Nolan, Sarah Guo, Casey Handmer, Shaun Maguire, Delian Asparouhov, Zach Dell, Ryan Petersen, and Chase Lochmiller

Episode Date: March 24, 2026

Sign up for TBPN’s daily newsletter at TBPN.com(06:46) - Who Won The Great Peptide Debate (13:57) - Ternus Steps Into Apple Spotlight (34:12) - TBPN Featured in Fast Company (39:11) - OpenAI's Non-Profit to Spend $1B in 2026 (40:59) - 𝕏 Timeline Reactions (50:52) - Chase Lochmiller is the co-founder and CEO of Crusoe, an energy and computing company that uses stranded natural gas to power data centers and AI workloads. He focuses on aligning energy production with high-performance computing demand, turning wasted resources into infrastructure for machine learning and cloud services. (01:06:04) - Ryan Petersen is the founder and CEO of Flexport, a global logistics and freight forwarding company using software to modernize supply chains. He is known for his hands-on leadership style and for bringing transparency, data, and real-time visibility to international shipping and trade. (01:20:49) - 𝕏 Timeline Reactions (01:23:28) - Scott Nolan is the founder and CEO of General Matter, a company focused on advanced materials and next-generation industrial technologies. He previously was a partner at Founders Fund, where he invested in frontier sectors like aerospace, defense, and manufacturing, and continues to focus on building technically ambitious companies with long-term impact. (01:35:19) - Sarah Guo is the founder of Conviction, a venture firm focused on AI-native companies. She was previously a general partner at Greylock, where she led investments in companies like Figma, and is known for backing founders building across the AI stack—from infrastructure to applications. (01:48:41) - 𝕏 Timeline Reactions (01:55:39) - Casey Handmer is the co-founder and CEO of Terraform Industries, a company focused on producing low-cost synthetic fuels using renewable energy. A former physicist at NASA’s Jet Propulsion Laboratory, he writes extensively on energy, climate, and industrial systems, with an emphasis on scaling technologies that enable abundant clean energy. (02:04:42) - Shaun Maguire is a partner at Sequoia Capital focused on early-stage investments in AI, infrastructure, and frontier technologies. He previously founded Expanse, a cybersecurity company acquired by Palo Alto Networks, and is known for backing technically ambitious founders and writing about geopolitics, defense, and the future of software. (02:19:09) - 𝕏 Timeline Reactions (02:24:13) - Delian Asparouhov is a partner at Founders Fund focused on frontier technologies, including aerospace, defense, and advanced manufacturing. He previously co-founded Varda Space Industries, which builds space-based manufacturing infrastructure, and works closely with companies pushing the boundaries of hardware and national security tech. (02:36:44) - Zach Dell is the co-founder and CEO of Base Power, a company building distributed battery systems to stabilize the electrical grid and provide backup power to homes. He previously worked in venture capital at Thrive Capital and focuses on applying software and capital to modernize energy infrastructure. TBPN.com is made possible by:Ramp - https://Ramp.comAppLovin - https://axon.aiCisco - https://www.cisco.comCognition - https://cognition.aiConsole - https://console.comCrowdStrike - https://crowdstrike.comElevenLabs - https://elevenlabs.ioFigma - https://figma.comFin - https://fin.aiGemini - https://gemini.google.comGraphite - https://graphite.comGusto - https://gusto.com/tbpnKalshi - https://kalshi.comLabelbox - https://labelbox.comLambda - https://lambda.aiLinear - https://linear.appMongoDB - https://mongodb.comNYSE - https://nyse.comOkta - https://www.okta.comPhantom - https://phantom.com/cashPlaid - https://plaid.comPublic - https://public.comRailway - https://railway.comRestream - https://restream.ioSentry - https://sentry.ioShopify - https://shopify.com/tbpnTurbopuffer - https://turbopuffer.comVanta - https://vanta.comVibe - https://vibe.coFollow TBPN: https://TBPN.comhttps://x.com/tbpnhttps://open.spotify.com/show/2L6WMqY3GUPCGBD0dX6p00?si=674252d53acf4231https://podcasts.apple.com/us/podcast/technology-brothers/id1772360235https://www.youtube.com/@TBPNLive

You're watching TVPN. Today is Tuesday, March 24th. We are live from the TVPN Ultradome, the Temple of Technology, the Fortress of Finance. The capital of capital. Do you know how I got here today? I drove through the Hollywood Hills, drove through the San Fernando Valley,

because we're covering Hill and Valley today, but we're doing it from the TBPN Ultradem. We have a whole bunch of meetings. It doesn't like it. Anyway, what do you think about this, Jordi? Ramp.com. Time was money, save both. Easy use corporate cards.

Bill Pay, accounting and a whole lot more, all in one place. Now, we are covering Hill and Valley today. We are unfortunately unable to make it in person, so we will be covering it remotely, but we have an amazing setup there with a whole bunch of folks on the ground. So if you're watching this from D.C., go say hello to Tyler Cosgrove, live in person at Hill and Valley. Let's pull up the linear lineup. Linear, of course, is the system for modern software development. 70% of enterprise workspaces on linear are using agents.

We have Chase Lockmiller, Ryan Peterson, Scott Nolan, Sarah Guo, Sean McGuire, Delian Asperuhov, Zach Dell. We have an amazing lineup, and we're very excited to talk to all of them, starting at 1145 today. But first, we have to recap some things. There's been a whole bunch of news. First, we had the great peptide debate of 2026. Brandon Grell on our team wrote about this in the newsletter today, TBPN.com. You can go subscribe.

Who do you think won? I was talking to a lot of people. Very interesting, because you had scheduled this. I wasn't even really aware that there was a peptide debate going on. We'd talk to some other folks on the show about peptides and how there was a debate rating. And I was aware of the meme, like the Chinese peptides in Silicon Valley, all of that stuff. But I wasn't aware of like that the debate it was boiling to a particular point and that there were a lot of people that were discussing it. So it was great timing.

So thank you for organizing that. And thank you to our guests, Max and Martin, who took the time to come and talk to us. And I thought did a really good job of being simultaneously entertaining. and also very cordial. Like, they weren't actually going at each other's throats. They were scoring points, but I don't think that either of them crossed any lines. There was some discussion over, like, should we have done more fact-checking? I genuinely think that the chat is good for fact-checking.

Or the experts. Yeah, it's kind of like your view. But I don't know. Yeah, there was a bunch of people that made very fair points. Yeah. pointing out, you know, a study here or a patent here. Yeah. And, you know, I don't, I don't think we actually got, we don't think we, it would have

been great if we got to a conclusion yesterday. And it was like, yeah, this is all bad and it should all be banned or, you know, they're all good or, or figured it out. But that's where we started. We started like with like, yeah, everyone there agrees that, uh, GLP ones that are owned by pharmaceutical companies are probably net beneficial, blah, blah, blah. and then the really far out stuff that hasn't been studied that's made in, you know, a basement is probably risky.

And we actually had a good friend of the show, sum it up. Creatine cycle, Atlas, of course, said the peptide debate is as follows. Against. I would be worried about unknown unknowns. Pro. While there isn't much human data, the anecdotal evidence is pretty strong. Against. Antiquotes are not enough for me.

Pro, fair. It is for me. Against. Okay, fair. And I think that's a good, I think that's a good point. And truthfully, you know, people can make their own decisions here. I do think interjecting with a ton of fact checking during the debate would be disruptive. I'm not a fan of that.

I sort of just like having one person, like the guest, the debater, fact check the other person. Because if they know the fact and the other person who they're debating against drops something that's not factual, that's their opportunity to come in and say, that's not accurate. Throw that canister whatever Martin had. Throw it. Throw the flashbang. Throw the smoker in it.

But I do. So I like leaving some of the fact checking up to them and then just trying to re-center the debate as a moderator. But I don't know. Should we do more of these? Let us know. It seemed like a lot of people had a lot of fun with it and were entertained. It's hard to come up with, you know, if we were going to try and do this weekly.

It would be very hard to come up with like 52 really hot topics that everyone cares about. And there are two opposing experts who are willing to hash it out and be entertaining on a live show. Probably not going to happen all that much. But when the time is right, I think there's an opportunity for us to do another debate because it was a lot of fun. And it wasn't our first one. We've done the slob versus steel debate between Ev Randall and Daly and Asperuhoff, former colleagues, turn bitter rivals. And that was fun just because it was like the most insider. of insider topics around like, you know, rapper multiples and AI companies versus hard tech.

And we're going to be talking to Delian later today. But it was, that was really fun. That was very cordial. I think that one was less viral because there aren't that many people who are in the chair of, I need to, I need to decide how to. Health is so personal too. So it becomes hyper political. Hyper political.

How dare you try to ban something that I benefited from? Totally. Totally. And I totally, I totally see that side of it. But, but yeah. And there's, and there's, there's the other side, which is, there just aren't that many people that are in the seat of, how will I allocate capital between hard tech companies in the private markets and AI software companies and SaaS companies in the private markets? It's just a little bit more niche. But it was really fun.

And I hope we can do more there. Someone was saying we should do an accelerationist versus decelerationist, uh, uh, debilationalist. debate. I think Beth Jaisos was proposing that. I think that would be sort of interesting. I, I think I could maybe sit in the middle of that and, and have, have some interesting discussions there. Kind of like 60 miles per hour, stay under the speed limit. Yes. Yes. Yes. Yes. Well, on that, on that vector, I am an extreme accelerationist. Let's see what else Brandon Grell wrote in the newsletter today. So leading up to the debate yesterday, we had several guests on the show discussed peptides in February. Andrew Huberman came on and predicted that RETA, essentially a more aggressive of ZemPEC,

would become a trillion-dollar drug that same day. We had longevity entrepreneur, Brian Johnson, on the show. He encouraged people thinking about taking peptides to be cautious because we don't know what the negative effects of these drugs are. And last week, Maximus CEO Cameron Maximus, which I don't think is his real name. Is his last name Maximus? No. It's not.

It's not. It's, it's, it can't. But I mean, I'd like to think of him as Dr. Cameron. Maximus. That is his name on X. Oh, okay, okay. That makes sense. He argued that there's no real reason to be taking RETA, not FDA approved, only available on the gray market, when they could be taking, when people who are, you know, in the market or, or, you know, their doctor recommends something, they could be taking Tersepetide, which is essentially has the same benefits, can be bought legally, and it's FDA approved. So yesterday, Screlli argued, Martin Screlly argued that the current

peptide craze is more psychology driven than science driven and is essentially a passing fad among Silicon Valley elites who aren't really, what is that, who aren't among Silicon Valley elites who aren't really expert trusters. In his view, there is no rational reason to experiment with compounds like Reda when proven regulated drugs like Ozempic already exists. He thinks gray markets should be shut down entirely. And there was a big debate over how feasible is it to actually try and shut down the gray markets. Gray markets have existed in a whole bunch of other other categories. I'm very familiar with the gray market for illegal flavored vaporizers because they have been the bane of the legitimate industry, the nicotine industries. It's been

the bane of their existence. And so Martin argued that the FDA's rigorous approval process exists for a reason. Now, we had Max arguing the peptide bull case. He argued that he doesn't believe all peptides are safe and effective, but that a subset of them likely have real therapeutic value. He said that since people are already using peptides, a regulated white market would reduce harm compared to the current gray market. So lots to debate there. We'll let you make your own decisions. You can go listen to the full debate and you can see where you weigh in. Before we move on to our next story, Let me tell you about Shopify. Shopify is the commerce platform that grows with your business

and lets you sell in seconds online, in store, on mobile, on social, on marketplaces, and now with AI agents. And let's also tell you about vibe.com. Where D2C brands, B2B startups, and AI companies, advertise on streaming TV, pick channels, target audiences, and measure sales, just like on meta. And, man, not having Tyler Cosgrove in the TVP and Ultridome is it's a death now for our clapping during the ad read strategy.

We need to get some soundboard going. We need to show these supporters. sponsors some love because we're we're fighting two men down right now maybe three men down where we're we're on our last leg over here in the tbp and ultram anyway apple is in a completely different situation they have their heir apparent john turnus the nice guy uh potentially taking the reins maybe this year maybe next year it could happen any day now tim cook doesn't want to talk about retirement but john turnus is emerging as his most likely successor. This is from friend of the show, Mark German in Bloomberg, go subscribe.

And there's an interesting, this is an interesting profile of John Ternis from March 22nd, 2026, just two days ago. This was published, 5 p.m. Eastern. And it tells an interesting story of John Turneris. And I think German does a great job of going deeper than some of the other reporting that had like one quote from an employee that left Apple a decade ago. and was sort of vague, and that person doesn't have, like, any sort of profile, and it was very hard to read into who is John Turnus as a person. I think we're getting a clearer picture now. So thank you to Mark German for this reporting. So let's read through some of this, and then I want you to cosplay as John Turnus, and let me know, would you do things differently? Do you agree with his management style? Because this might be the management style of all of Apple soon if he takes the reins of CEO. We're basically regrading a live version of the Turner Simmonic. Yeah, we're getting into an armchair. And we're going to be quarterbacking. We're going to be armchair quarterbacking Apple. So during our all-hands meeting at Apple in January,

an employee asked about a spate of executive moves. The company's chief operating officer recently retired. The CFO and General Counsel took smaller roles as a way to prepare for their own retirements. And in a single week in December, its heads of artificial intelligence, user interfaces, and environmental initiatives all announced their departures.

While part of the Exodus was related to Apple, Apple's Inc. well-documented struggles in AI. It also reflected a logical transition at a company that turns 50 on April 1st. Wow, Apple was founded on April Fool's Day. That's amazing. That's a great date. Apple stock made everyone at the top of its org chart fabulously wealthy, and many are entering the stage of life that often inspires people to prioritize family spending some time, finally spending some time with their families instead of the next generation of iPhones. In his response to the employee's question, Tim Cook, the company's 65-year-old CEO, struck an atypical reflective tone.

He said, when people get to a certain age, some, he said, are going to retire, letting the word some hang out there in a way that suggested he wasn't talking about himself, drawing laughter from the audience. He's like, some people, they can't hang. But look at Warren Buffett, 65 to 95, most productive era of his career. Tim Cook, generational run starts now. I like the idea of Cook for the next 30 years. I'm still bullish Tim Cook. I mean, I love John Turnus.

But I think the 30-year run from Tim Cook going 65 to 95 would be particularly fun to watch. Tim Cook was going to retire. Then he started experimenting with some Chinese pep. Oh, you think that's what's going on? He's always looked good. Now he's like, I actually got another few decades in me. I hope so. He's like, actually, it's BBC 157, having a remarkable effect on me.

All right. So he said, the thing we have to do is to make sure that Apple moves on. He reaches the next level and the next level and the next level. Cook added. And he said he spends a lot of time thinking about who's in the room in five, 10, 15 years. I'm obsessed with this. This is Tim Cook at his best. This guy can't leave. He can't leave. He's firing me up here. I'm obsessed with it. been listening to Senra. Yes, it's amazing. So Cook, who's run Apple since taking over from co-founder Steve Jobs in 2011, probably doesn't expect to be in the room himself for another 15 years, but I do. I'm betting on him. While he's given no indication of an imminent transition, he's made

it clear he wants his heir to come from within the company so he can serve as a mentor. The central candidate is John Turnus, senior vice president for hardware engineering who oversees development of the devices that generate roughly 80% of Apple's revenue. At 50, Ternus is also younger than many of the company's other senior leaders, meaning he could be in the top job longer. Ternus has spent about half of his life at Apple, half of his life, generational run. He cut his teeth developing computer monitors, oversaw product design for the original iPad, and eventually took over development of the Mac, getting the top hardware engineering role in 2021. He's overseen an expensive. in Apple's product lineup, improving quality, and focusing on functional improvements around

battery life, performance, and connectivity. Earlier this month, when Apple held an event in New York to announce the MacBook Neo, a 599 laptop, it was Ternus, not Cook, who did the big reveal. A little foreshadowing there. A little trial run. The next day, Ternus also appeared on Good Morning America to talk up the device. The type of media appearance, Cook has generally done himself. Such public signs of confidence in Ternus have been accompanied by steady expansion of his portfolio. Last year, he took control of a secretive unit developing robots, including a tabletop device with a screen that swirls to focus on a speaker,

moving around the room. The smart lamp. Is this what it is? No, it's not a smart lamp. No, it's the iPad that on a swivel arm. Yeah, the iPad that follows you around so that you can ask you questions and FaceTime with your friends. I think there's a rumor that it can do kickflips, but. I'd be super into that.

I mean, if it has a motor, you've seen those robots that are on the bikes, and it's just a big battery pack with like a robotic arm that's attached to it. Have you seen this? Oh, this is amazing. Apple comes out with a smart iPad device that's just called a bicycle for the iPad. It's just a little bicycle. No, no, no. If you have a weight up here and you have a robotic arm that can hinge down, if you pull that up really quickly, you can actually do. jump up. And so there's these crazy videos of these robot bikes like jumping up onto tables and stuff.

It's very fun. So he, uh, Ternus has taken a bigger role in Apple's product marketing, sometimes personally editing copy for the website and even product event materials. And he has become central to the company's work to make its devices more environmentally sustainable. Ternus has also assumed oversight of the hardware and software design teams making him a key liaison between Apple's vaunted design organization and senior management, meaning he's already one of the most influential people in the company's history. Current and former executives who've worked closely with Ternus, most of whom requested anonymity, say he has made a mark on Apple's hardware portfolio reversing a trend of declining product

quality as the company prioritized thinness and sleekness overperformance. Quote, he is a very meticulous engineer and a judicious executive, says Tony Blevins, the company's chief procurement officer until 2022, who described Ternis as a very meticulous as an outstanding and obvious choice to succeed cook. So this is sort of the other side of the turn of story from that random quote that went into the Wall Street Journal that I was sort of like, I don't know if this person is like, it doesn't feel like they were operating on like the more recent

run that he's been on. Like yeah, he's been there for 25 years. If you go back a decade like it could be a completely different executive. So anyway, he's a car, he's a car racing enthusiast. He's a cycling enthusiast. I assume cycling means performance and housing drugs? Yeah, Cycles?

Trend. Trestoster? No. He is a bicyclist and a car racing enthusiast. Turnus is known to take his colleagues to upstate Washington for off-road rally car racing. Let's go. Excellent choice, Tim. Cook, I see why you picked him. His love of motorsports notwithstanding.

Turnus like Cook is risk-averse and reluctant to, as one person close to him puts it, upset the apple cart. Good pun. As one long time executive says, if you think Tim Cook is doing a good job, then you'll think John Ternis is doing a good job too. That also feels like an underhanded. It's maybe a dig.

I have been a staunch defender of Tim Cook. Did well on the supply chain, did well on the tariffs, did well negotiating, all sorts of tough things. Wound up with a great partnership with Gemini. Like, wound up in, It always looks bad as you're, like, investigating one feature on a one month timeline, but when you zoom out over a decade, incredible amount of value created, incredible performance, and very few weaknesses in the business, from my perspective.

But you can take the other side of that because I know you're frustrated by every app that they release lately. But who knows? Not just the apps. Not just the operating system itself. Also, I mean, the new material is rough. Like, I drop this phone a lot and it's very scratched. Whereas the old one, I think was titanium and really like held up well. Also the blue.

This is what German was saying. He was saying that like with this new material, I think it's aluminum now. I went back to aluminum. Getting the paint to actually stick on is much harder than the titanium, which couldn't have been as rich. They never could have done that bright orange phone on the titanium. But the way they like... You should just take jam paper to yours and turn it into silver like mine. Yeah, maybe like the Casey Nystad style on the raybans.

know what he does where he spray paints them white and then like scratches off the the whites. Oh, it's really, really cool design. He's very popular for this. All right. Let's maybe skip forward to talk about kind of the, the debate that's been raging internally about some of his recent decision making. Okay. Before we do this, I'm going to tell you about Crowdstrike.

Your business is AI. Their business is securing. CrowdStrike secures AI and stops breaches. And I'm also going to talk to you about Finn.A.I. The number one AI agent for customer service. If you want AI to handle your customer support, go to fin.a.I. So, despite his reputation for personable management, so he's known as a very nice manager, nice guy.

He's the nice guy at Apple. Ternus has, at times, broken with that style in ways that raised eyebrows internally. Late in the lead-up to the release of the Vision Pro headset, my favorite Apple device ever, unironically. For instance, engineers uncovered a flaw that threatened one of the devices marquees. features, which is odd because this is not one of the marquey features for me. But it's the ability to

stream... Well, you're not the average user, John. You use your device. I'm a power user. I'm a power user. What? Well, no, the average user doesn't use that. Yeah, yeah. I'm like five standard deviations above on the usage. So the ability to stream ultra low latency audio from the headset to AirPods. This apparently was a capability central to Apple's pitch of a seamless experience for immersive video and gaming. And this is real thing. So you just bought this, this $3,500 device, $3,500 face computer. And $3,500 was the headline price. And they're telling you, and they're telling you to, when I bought one, it was close to five grand, because I upgraded the storage and there were taxes and stuff. And I think I threw in a case. And so, like, I was up in the high

for something. I took it back. But, I thought you still had one. I got a new one. I got a new one later, later, but I took like two years off. I'm a fake fan, fair weather fan. They did one good Red Bull video, and I was like, I got to get back in this. Okay, I just think it's so funny that they shipped this, you know, a three to $5,000, you know, computer for your head that's super heavy, and they're like, and you're going to need to grab some airplanes. Yeah, yeah.

Well, you're not. That's the thing you're not, because the audio quality that comes out of the actual strap on the headset is fantastic. It sounds great. But other people can hear it. Kind of. Like, barely. Like, you can turn the volume down and it's so close.

It's like the headphones are like right here. If you turn the volume down a lot and keep it really quiet, the other people can't hear. Pretty much. Unless you are truly in like a library context, in any normal scenario, the speaker, although it is exposed and if someone to put their ear up next to yours, they could hear what you were listening to, it's just not loud enough for anyone to hear it. So I never really use the AirPods link. to the headphones because, or the headset, because it's just like a separate thing.

It's just extra stuff to put on. Anyway, it was clearly important to Apple. Apple's always prideed itself on device integration, hardware integration. And they are great at that. Like, you put in the AirPods and you switch over to a YouTube video on your MacBook, and it just plays right there. You switch over to your phone. You take a call.

It switches right back. Like the connectivity with their Bluetooth strategy and their, you know, their wireless strategy has always been fantastic, but apparently it wasn't going well with the development of the Vision Pro headset. So the ability to stream ultra-low latency audio from the headset to AirPods, this was a capability central to Apple's pitch of a seamless experience for immersive video and gaming. The problem stemmed from a missing wireless frequency in the then-newest AirPods Pro. The only practical fix was to ship a revised version of the earbuds, which the company did

at the end of 2023. So normally the AirPods Pro 1, AirPod Pro 1, AirPod Pro 2, AirPod Pro 3, like a normal revision cycle. But that year they had to do like a half step. And it was like AirPod Pro 2.5. And all it, like they only updated this one little frequency thing in the wireless connection. And so it was sort of, it was sort of a weird move probably cost them some extra money to do. It was a mistake that was, you know, caused by a particular hardware engineer on this team. So when they launched the Apple Vision Pro in February of 2024,

that meant that anyone who wanted this feature, they just paid $3,500, they had to spend another $250 on new AirPods that added the ultra-low latency support and not much else. So it wasn't like, oh, you also got translation or some AI feature or better audio quality or better noise canceling. It was like the exact same thing that you had, you just have to pay an extra $250 for this. And so this was a debacle, and the debacle reverberated through multiple teams.

including hardware, software, testing, and the Vision Pro group. People involved, said Ternus alienated some people on staff by focusing initially on finding out whom to blame. Who did it? In the aftermath, a senior AirPods executive was reassigned. And I'm laughing because I, so I asked Jordy this morning, I said, okay, I gave him, like, the overall broad strokes of what happened. and what was your first recommendation for...

Shut down both product lines. Shut down. Shut down both product lines. Just shut down both entirely. And then I would have focused on coming out with a pair of wired headsets made of wood using horse hair for the actual connectivity. Yeah, yeah.

And then... No wires at all. Yeah, and then sort of like with a leather... Certainly no plastics, no macroplastics or microplastics. Yeah, probably creating. some like, uh, towel, like some type of like, uh, tallow to make, to make them more comfortable. You don't want the wood. Yeah.

Splinters in your ears. Like a beef. So you, so you, so you lubricate your ear canal with beef tallow. Just go back to basics. Just messaging. Yeah. Yeah. Cave man.

Yeah. That's what you'd like. So that's where I would have started. That's where you would have started. Okay. But then I, then I went to Jordan. I said, I said, okay. But like, assuming that it, it, Ternus, you know, had the mandate of,

Apple, like you got to ship this product. It's got to be good. You have to continue this product line. You can't pivot to beef tallow and sandalwood ear pods. What would you do? The other thing is like a touch grass product. So basically, you know, say, hey, we're shutting down the vision pro, but we're just going to sell you a little patch of grass. Okay. So if you want to be immersed in something, you can just go to your desk and maybe they can become like a, like a tour guide, a vacation guide. So if you want to go see a beautiful vista, you can just go see it in person. That would be more of your idea. But I was trying to get at, I was trying to get at what should Ternus have done?

Should he have been, should he have gone softer? Because it appears that he reassigned a senior AirPods executive. Yeah. And so, and so this issue comes down to, from my understanding, this senior executive who is responsible for, it was the AirPods. right? Yeah. He did not process that the Apple Vision Pro was coming out and they were selling against this feature. And Apple, yeah, and Apple, the thing that I think they still do really well to this day, even though, you know, almost all their other software on the iPhone is a total disaster.

Yeah. Is connectivity between the devices and syncing them and things like that. So they still do that well. Yeah. And so to come out with this and in just a blatant sort of unforced error didn't, didn't communicate properly with the other teams, creating Apple products, for the AirPods, which are just designed to sync perfectly with all the other. It would be like if one of the cameras was blurry or something like that. It's like, well, the iPhone, like, yeah, it's not, it's not, you know, dominating AI crazy features yet, but like everyone counts on the iPhone for having a good set of cameras. Like, they're always good. And so if you mess up something that is, is the basis

of the strategy. That is risky. And there's been this debate over, you know, is he, is he a nice guy or is he too hard? Ternus looks at mistakes as systemic problems that could be solved with better leadership instead of by putting the onus on the engineer. Someone said who worked for him and this person adds, Ternus is a nice guy. And I think it is the nice guy thing to just reassign someone instead of like this super cut through a culture. It also is sort of a throwback. This is what Ben Thompson was talking about today. It's a throwback to the Steve Jobs era. Like Steve Jobs would have said, hey, I demanded this. Like, you made a mistake. Like, heads must roll. And that was a bit of the company culture, at least in the lore. And who knows how true that is, but this doesn't seem like

it goes too far into like ruthless business behavior. But that's sort of where the discussion is around Ternis. Is he pure, nice guy? Does he have a harder edge? I don't know. At a certain point, the buck has to stop with someone. Yeah, the fact that this executive just got reassigned, they weren't, like, effectively terminated, to me, shows that Apple, like, what would, what would Steve have done? What if they got reassigned to assembling iPhones by hand? The first American, you're going to make the first American iPhone. It's been done.

It won't be the first, because we did it here first. By Apple. Anyway, let's move on. So anyways, I'm, I think Ternis didn't go hard enough. Didn't go hard enough. Yeah. Yeah. Should have got after him personally.

Should I said, you caused... 50 million of damages? AirPods is a $20 billion business. And we had to give people refunds and create a new product line for this. The AirPods 2.5. You owe us $200 million and we're coming after your 401k. No, do not do that. That is far too, that is far too aggressive.

And Turner didn't do that, you know? He reassigned the person, put a new leader in place to make sure that mistakes don't like that don't happen like that. This is the nature of running a big company that's high stakes like like like Apple. And overall this profile, it still continues to give me confidence in Ternus. And honestly, Tim Cook. Really quickly, let me tell you about the New York Stock Exchange. Want to change the world? Raise capital at the New York Stock Exchange. Friendly IPO. Inbound. And let me also tell you about TurboPuffer, serverless vector and full-tech search built from first principles and object storage, fast,

10x cheaper and extremely scalable. So there is a whole bunch of other news. We're in fast company. On the cover. On the cover. It's hard to see, but that is John. No, it's not. This is Steve Huffman, who came on our show last week.

We had a very fun conversation with him. But we were featured in the world's 50 most innovative companies, the definitive guide to the future of business. We're up there with 2B, Google, Walmart, B-YD. These are some big companies. Ramp got a nod and TBPN got a nod right next to Ramp. And they sent us a very nice letter and we are sitting here with a nice little mural of a bunch of our guests. Who do we get?

We got Brian Armeskong, Evan Spiegel. Tell me who we got beat out. We were the number two media company. We were the number two most innovative media company. We got beat out by a CDN. Matthew Prince over at Cloudflare. Smoked us. Smoked us.

We didn't stand a chance. Just look at the scale of Cloudflare. They distribute so much media. That's what it's a content delivery network. They deliver content. We try and deliver content. We deliver three hours a day. They deliver probably billions of hours a second.

I can't even imagine the scale of that business. It's everywhere. But Matthew Prince is a very innovative leader. And I completely agree with the ranking that he should be. But we're coming for you next year, Matthew. It's on. It's on. But this is a fun, fun article.

We gave them some quotes. Producers at CNBC wake up in the morning to look at the public markets in order to plan the day's lineup. John Coogan and Jordy Hayes, co-hosts at TBPN, a daily talk show devoted to the business of technology, wake up and look at what's trending on X. That's true. And then they gab.

That's us. Quote, says Hayes, we cover something like 50 to 100 topics. Rapid fire. 55 days a week in bespoke suits, the duo riff on the news for three interrupted hours, accompanied by a revolving cast

of venture investors, startup founders, and the occasional single-name elite like Zuck. on good days the live stream draws more than 130,000 simultaneous viewers, millions more watch the highlighted clips and listen to the podcast, we basically leverage the algorithms.

How Hayes says of TBPN's programming strategy, love them or hate them, they do a really good job of sorting what people are interested in. Anyway, you can go check it out. They did say it was a cool moment. That's fun. As a boy, I subscribed to the print edition of Fast Company

and always looked forward to getting it in the physical mailbox. at home and reading through it. Unwell, Alex Cooper's network is 23. So how, she must be media. She must be higher than us. What's the category, though? Oh, I don't know. Because if Cloudflare is a media

company, then Unwell might be. It might be a CDN. Who knows? Let's see. Unwell was ranked. Oh, Unwell is in the advertising and marketing category, but not media news. Cloudflare is media news, and we are

second behind Cloud That is interesting. I would I would say unwell beat us fair and square. All I have to say is in the words of the Canadian Olympic team, John, silver shines just as bright. We've been on a bit of a silver tear lately. We're the second highest ranked technology show on Spotify. Thank you to everyone who's been subscribing and leaving us five-star reviews over there. And yeah, thank you to team Canada for pioneering. Making it a little bit more pioneering cope as a strategy, as a marketing strategy. Walmart's in here. Data bricks is in here. Adidas is in here. Of course, ramp is in here. 50 plus business. Ramp is in the lemonade category. Yes, definitely. It actually does look like the lemon category because the accompanying image has some like yellow circles. But that's not ramp related. This is of course related to McKenzie Bezos, who's been donating money for funding American colleges and universities. So very, very fun. Sundar Pachai got a nice photo spread is doing done a ton of good stuff at Google

and but it leads with Sundar Pachai. Maddic was number three most innovative company and consumer electronics. Yeah. There's some other good stuff. This is innovative too.

Lists inside of lists. Oh yeah? There's lists inside of lists. Oh wait. Oh, the category. Based on the sub-category rank. Yeah. Unitary robotics is at 39.

I'm really disappointed that we couldn't beat unitary. But I love that IMAX beat Unitry. American Excellence right there. We're going to do it. Diplo's Run Club is at 50. The Onion, we beat the Onion. That's crazy.

I love the Onion. The onion was foundational to me. Anyway, lots of fun in the Fast Company. And the Fast Company rankings. Thank you to the Fast Company team. Let me tell you about Console. Console builds AI agents that ought to meet 70% of ITHR and finance support, giving employees instant resolution for access requests and password resets.

And let me also tell you about public.com investing for those to take it seriously, stocks, options, bonds, crypto, treasuries, and more with great customer service. I love those sound effects. Thank you. OpenAI's new nonprofit foundation announces plans to spend one billion this year and has appointed OpenAI co-founder, Wajek. Am I saying that correctly? Wage. Wage. Wage. And Jacob of Co-efficient giving to leadership position still searching for an executive director. Sam says AI will help discover new science such as cures for diseases, which is perhaps the most important way to increase quality of life long term. AI will also present new threats to society that we have to address. No company can sufficiently mitigate these on their own. We will need a society-wide response to things like novel biothreats, a massive and fast change to the economy, extremely capable models causing complex emergent effects across society and more.

So it's great that this has gotten set up. I can imagine just how much has gone into it. I would love to see them. I mean, they have a lot of money here. They're going to be donating a lot of money. I think it's going to be the best funded nonprofit in the history of humanity. That's very exciting. I would love just a little carve out for developing, like, consumer apps or consumer technology.

Or at least foundational technology that could be spun out. Yeah. I would like this. I mean, they've had so much success. spinning things out. It's funded the nonprofit so effectively. Why not keep it going? Yeah. Why change horses in the middle of a stream? If it ain't broke, don't fix it, right? So I'd like to see a little bit there. And then also some some high-for-easy trading, probably, because you've got to do something with a balance sheet. So why not, why not get some Jane Street folks in there

and start eking out fractions of a penny on every trade? In other news, Andrew Bosworth, has been on. Drew Bosworth is taking over supervision of the company's efforts to become AI native. That's exciting. He's going to be overseeing META's AI for Work initiative that was previously led by another exec. He has been with... Trusted General. Yeah, he's been there for so long.

Yeah, this is AI for Work is their internal initiatives. These are going to be, I think, like internal products that help the company operate more efficiently. And of course, this, you know, signals a shift, a deprioritization of the Metaverse, which has been obviously, you know, in the works in different ways for quite a while. But I love Boz. I think he's a great fit to lead this internally. In other news, Ares and Apollo cap private credit fund withdrawals as Exodus grows. This is in the news like every day now. We've been sort of nibbling at the edges of this story because it's intriguing.

I mean, a lot of people aren't familiar with these names because they're, of course, private or they invest in private credit. But it's, you know, increasingly more and more. Yeah, it's a big enough story. If you have any personal exposure to private credit, you probably are thinking, hey, I'd like to reduce some of that. Yeah, totally. So two of the biggest names in private credit, Aries Management and Apollo Global, blocked investors from getting even half of the money they wanted out of their funds, a sign of the mounting strain on the $1.8 trillion market, the $10 billion ARI strategic income fund, limited withdraws

to 5% of shares after clients sought to redeem 11.6. So that's not a total, like, run. Some of this has been framed like people are trying to withdraw 50%. They're trying to withdraw 11.6, and Aries limited that to five. There's 15.1 billion business development company Apollo Debt Solutions, which said it was imposing the same cap after request to pull 11.2 percent. So very similar numbers. The redemption requests, larger on a percentage basis than those earlier this month at Blackstone

and Black Rock, suggests that investors are growing anxious about a liquidity squeeze in the illiquid private credit market. The world's largest alternative asset managers, which for years have fueled the private credit boom, are suddenly grappling with investors skittish about the industry's lending practices and exposure to businesses vulnerable to artificial intelligence. It was very interesting talking to the CEO of B&Y yesterday, where I asked a pretty broad question about private credit exposure and risks, and he gave a little bit of backstory. in history, which was helpful, but sort of agreed with the Jamie Diamond take that, you know, when a lot of people are talking about cockroaches and jitters, that there's probably where there's

smoke, there's fire was how I interpreted his answer. Money managers are handling the surge of negative sentiment in a variety of ways. Funds from Blue Al Capital move to sell assets and Blackstone injected employee cash to help meet redemption requests. For the most part, however, managers have limited redemptions and emphasize the benefits of doing so. At one point Tuesday, the latest wave of investor jitters wiped out 10 billion of market cap from the likes of Ares, Apollo and rivals Blackstone and KKR, as shares of all four asset managers fell more than 2%. At the same time, inflows into the asset class have slowed. Weakening demand and more investors looking to cash out could constrain liquidity further for the fund, making it harder to underwrite new loans. Limiting redemptions could also increase negative sentiment investment in non-traded business. development companies was down around 43% last month compared to the year prior.

Areas for its part emphasized that only a small portion of shareholders sought to redeem. Notably, the majority of repurchase requests were made by a limited number of family offices and smaller institutions in select geographies that represent less than 1% of our over 200,000 shareholders. What do you think they mean by select geographies? Is that the Middle East that they're trying to like sort of gesture towards that There's more liquidity demands amongst wealthy families and family offices in the Middle East. And so it might be more of a geopolitical issue than, I don't know.

Select geography just feels like choice language deliberately meant to point the finger or the arrow somewhere, but it's unclear. I don't know. I wonder if we will see more reporting from what the sovereign wealth funds are doing, what the family offices in the Middle East are doing because certainly there's new requirements and money needs to flow all over the place. The firm expects the granted redemptions to amount to roughly 524.5 million. Aries said that the fund had around $5 billion in undrawn capacity, including debt facilities, repayments from existing investors, inflows, and a performing liquid credit sleeve. Some money managers are already indicating that they're ready for the strain to continue

Apollo Debt Solutions and ARI Strategic Income Fund both said they will offer withdrawals of up to 5% of shares again next quarter. Anyway, let me tell you about Figma. Agents meet the canvas. Your AI agents can now create and modify your Figma files with design system context. It's in beta starting today. Go check it out. And let me also tell you about Restream. One live stream, 30 plus destinations. If you want to multistream, go to Restream.com. So, Dreamer. What's going on? joining Meta superintelligence labs. David Singleton shared, excited to announce that his co-founders and the entire team over at Dreamer are joining Meta.

The last few months have been extraordinary. We built Dreamer, put the beta in the world just a month ago, and saw Magic come to life for real people. Since then, thousands of people have used Dreamer to build personal intelligence software with our sidekick in the world's newest and most popular programming language, English.

They're building and sharing agents to manage email calendar, to do's create learning tools for their kids, learn new languages, plan trips with friends, become better cooks, help them with work, achieve their health goals, or simply to creatively express themselves. All sorts of surprising and unique personal needs. These agents are as unique as the people building them because they're built exactly the way each person wants them to meet.

We've captured some of our favorites, and let's go over here. They, yeah, people are building timers, receipt, scanner, citation assistant. This is great if you're using ChatGBTD to do your homework. You can build a little citation assistant. People are building personal financial apps. Yeah, I'm curious, again, with any of these sort of meta-MSL acquisitions, you know, you have to wonder, is this, can you read into their product direction at all with the acquisition?

Are they, is meta going to be making, is meta-AI going to have? the ability to make your own agents, that is still to be seen. But congratulations to the whole team. Well, let me tell you about 11 labs. Build intelligent, real-time conversational agents, reimagine human technology with 11 labs. And let me also tell you about Vanta. Automate Compliance and Security Vantage is the leading AI trust management platform.

So, I mean, I think with that, most people will think, like, Aquahire rolled into Manus, rolled into other products. At the same time, there is an interesting, like, diffusion in consumer question that's going on that I think might be a little bit underrated, just the question of what will adoption and retention be like when you don't have to buy a MacBook or a Mac Mini, when you don't have to, you know, get any API keys at all versus it's an app on your phone versus it's in chat GPT or it's in Instagram. Like, bundling those things together, actually. You know, we never really got firm data on how much Lama's being used. I really want to build an agent that can predict which videos, funny videos that I would send to you. Yes. Just have it do it automatically.

Because I think our feeds are pretty synced up right now, where sometimes John will send me a video. Yep. And then 10 minutes later, I'll send him the same video, but I didn't see that he sent it. Then you look at it. And then we can both log off forever. Well, let's go over to the Chinese billionaire who says America's EV market is doomed without him. Not a problem because we're building V8s and V12s over here, baby, we're going back. We're going back.

No. This is serious. Bad timing for all of this. Bad timing for our desires to get the Tesla Roadster to have a naturally aspirated V12. Well, maybe good timing. Given energy prices. Yeah. Yeah, that's rough.

Anyway, Robin Zang of Cattle, C-A-T-L, can't build a factory in America, but Tesla, Ford, and GM rely on its technology. Inside a headquarters that's shaped like a giant battery cell, you've got to give it to them. That's design. That's what we need to be seeing from our tech leaders. Apple did it well with the UFO campus.

I want to see more headquarters that are shaped like the product that you sell. The billionaire who runs the world's largest battery company is confident that Americans will come calling eventually. We will return to the story later in the show. But without further ado, we have Chase Lockmiller from Crusoe in the mainstream waiting room. Chase, how are you doing? What's up, guys? How are you doing?

We're doing great. How is Helen Valley, you're the first person that we've talked to today. Give us a read on what's happening on the ground. How are you feeling? You know, it's great. It's great to see the partnership between Silicon Valley and D.C. really come together. I think you can really feel that there's a very pro-business climate here and a lot of

members of the administration here, helping support a lot of the big technology initiatives across everything from AI to defense tech to other software businesses. So I think it's very good vibes here. How are you introducing Crusoe when you meet new folks in Capitol Hill today? I mean, there's the company has been. How many years have you been working on this? It's been a number of years, correct? Yeah, so the company's about eight years old.

Okay. Overnight success. There we go. Overnight success. But, yes, how are you introduced to the company? Yeah. It's, you know, I really introduced the company as a vertically integrated AI infrastructure business where, you know, we focus on both the physical aspects of bringing AI infrastructure to life, land, power, data center, development, design, engineering, and

deployment of large-scale clusters of GPUs, as well as the software aspects of bringing AI to life between orchestration of workloads across large clusters of GPUs, management of GPU clusters with self-healing aspects like our auto-clusters product, and our managed Kubernetes product, as well as serving applications as they scale with things like our Cruceau-Managed inference product where we can serve and host models and really give the key AI applications the tokens they need. We've been talking a ton about bottlenecks. You outline sort of like four or five pieces of the stack there.

It feels like the managed Kubernetes cluster, the software development, maybe that's getting easier with AI. It feels like we have a lot of land. Is our energy and chips the real bottleneck for you these days? What are you seeing in terms of things that need to be unblocked, things that the industry needs to be focused on going forward over the next few years?

I think data center capacity writ large is absolutely a bottleneck. And with that broad bottleneck, I think there's a lot of underlying aspects, whether it's the power to energize the data center, the people to build the facility. So like labor is a major constraint. And I think there's an incredible blue-collar workforce opportunities across the entire ecosystem to help build this infrastructure of intelligence for the future. You know, I think chips are not a bottleneck today necessarily, but, you know, energized chips are. So, you know, again, it comes back to this, you know, power and data centers really being the critical bottlenecks.

Is there something that equates to a 10x engineer in electricians? Is there a 10x electrician? And are there recruiters that can help you find those people? Or is it a whole new game? So there are definitely like, you know, like anything, there's like dispersion amongst performance for, you know, folks like electricians. But I would say the impact of it is different than, you know, in engineering. Like, you know, with a 10x engineer, you know, sometimes it's like that's the difference between actually being able to build a product and not being able to build a product. Sure.

I think with a, you know, the, call it a 2x engineer or 2x electrician or something like that. You know, it's the difference between like this thing taking, you know, 40 hours and it taking 30 hours or something like that. So it's less of a, you know, game changing aspect versus like it just may take more time. Do you have thoughts on what we as a society, as a tech industry, as a country can do to, reskill, upskill, towards this like higher-end blue-collar work? Do there need to be new training programs? Do more taxpayer funds need to flow into retraining programs? Like, I've seen some policy proposals kicked around.

They all seem exciting. But is there anything that sticks out to you as particularly beneficial over the next few years? Absolutely. This is something that, you know, I'm personally spending quite a bit of time on is, like, how do we, you know, re-skill the labor force to, you know, prepare them for this, you know, incredible opportunity that's, you know, underway in sort of the big AI data center buildout? I think, you know, look, there's existing trade school programs, and there are, a lot of them are older.

They're, you know, sort of, you know, these very legacy training programs. And it's great. We need people to go through them. But I think there are certainly incredible opportunities to innovate across that trade school training program. I think like, you know, looking at a model like Alpha School and what they were able to do in terms of accelerating personalized education journeys and development journeys to, you know, have really high performing students in sort of, you know, the core K through 12 metrics. I think applying that same sense of like AI-driven teaching, assisted, you know, assisted teaching

and curriculums, I think, can be a huge unlock to, you know, get the folks we need here. And as well as I think, like, you know, we're exploring ways to have, you know, and naturally, I think a lot of trades sort of work this way, but we're exploring ways to basically have, you know, apprenticeship programs where there's a lot of on-the-job training and, you know, there's huge projects that these folks can be a part of and really learn by doing. And, you know, I think there's ways we can sort of guarantee jobs, you know, when they graduate, and, you know, things like what Lambda school did for coding. I think, you know, there's an opportunity similar here in the blue collar trades.

And then the final piece is like, I think in the K through 12 education programs, we've gotten away from a lot of the, you know, working with your hands programs, like things like auto shop and wood shop and, you know, where people are building things with their hands and being taught that in, you know, high school or whatever it is. Center shop class. Data center shop class. That's a rack these servers. That's great.

Unironically, that would be like a valuable class. Sorry, George, you have a question? Yeah, so with the conflict in the Middle East impacting energy markets, capital markets,

what are you paying most attention to? What is Crusoe doing to kind of mitigate any of that impact? Obviously, it's very unknown, how long it'll last right now, but I'm sure it's, you know, extremely top of mind. Yeah, this has actually been pretty amazing because, you know, while oil markets have, you know, reacted quite a bit, and you've seen oil prices go up and gas on prices as a result going up

quite a bit, natural gas really hasn't. And that's largely because of the energy independence that's been achieved here in the United States through, you know, investments from, you know, the energy, energy innovators and private sector, as well as support from the Trump administration to be a more energy independent nation. And so what you saw in the natural gas market was that there was initially a big spike up in the price of gas, natural gas, and then it came right back down to basically where it was before the conflict started. And, you know, I think that speaks volumes to, you know, the investments, the administration's

made and the private sector's made in terms of career. creating that energy independence for America, and it's insulated folks like us from massive price fluctuations in one of the key operating expenses for these data centers, which is the cost of power. Interesting. Talk to us about the rate payer protection pledge. Yeah. Before we go any further, I'm just curious, like, you know, with so much of global production

and supply being taken offline, how long can you realize? expect prices in the U.S. to stay stable? Is there some dynamic? Well, I mean, that's my point is like natural gas is inherently more regionally price driven. Like, it's more affected by regional supply demand aspects. Like, the global price market really is only impacted if you, if you're entirely reliant on LNG. And so, you know, markets like, you know, Japan are more, you know, LNG driven. But like domestically, here in the U.S., like the main spot market people are focused on is Henry Hub. And that's because, like, we're producing a lot of natural gas and we're consuming

that natural gas, which is different than the oil markets where we might be fracking, but then we are dependent. We need to, we're not necessarily refining it and consuming it locally. Do I have that correct? There's a couple of different dynamics there. The U.S. is a net exporter of natural gas via LNG. but the difference between gas and oil is that with gas, the LNG process where you're actually liquefying the gas, that is a huge expense.

So it basically upticks sort of the overall cost of that gas versus oil. You don't have that same challenge, right? So if oil, if there's a shortage, even if we produce all the oil we need here in the United States to serve American consumers, were more impacted by the global market because we could basically export that oil and it's not a huge cost uplift. If the price is so much higher to sell oil in Europe or whatever, you just put it on a barge

and centered across the ocean. Okay, but with natural gas, you have to liquefy it, that's a big cost increase and so it kind of evens out, normalizes. Exactly. So we're, you know, because of the amount of production of natural gas and the natural gas resources we have here in the United States, we've been pretty insulated against some of these, you know, conflict-driven commodity price action.

Okay. Last question. We'll let you get back to Hill and Valley Conference. Ratepayer protection program. This feels like what Crusoe was built to do, and your experience has been generating power on site, going back to, you know, flared natural gas. But walk me through how you've processed the actual roll out of that pledge, how fees. it is, how realistic is it for all the different market participants to adhere to it, because it is just a pledge, it doesn't feel like it's a law yet, at least. But how have you been interpreting it and how optimistic are you that it will have the intended effects? Look, I think it's a wonderful trend.

You know, I think the technology industry as a whole, the last thing we want to do is drive up the cost of power for grandma, right? That's like not at all, you know, the intent. of the technology industry and sort of the investments that are being made by AI. So I think we have some of the most well-capitalized businesses in the history of business that are making huge investments in the future of AI infrastructure, and they're willing to make those investments across the data centers, the chips, as well as the power.

And to me, this is a generational opportunity for society at large to basically upgrade generation infrastructure, upgrade transmission infrastructure, upgrade the grid, to be able to support far more capacity than we have in the past. And the rate payer protection pledge basically, I think, helps create a platform for companies to be investing in the energy to power these AI factories. And this has been sort of the Crusoe philosophy all along. I think the trend is going to be a new term that I've been using

is this term called Across the Meter. and people maybe heard behind the meter power where you have like power gen on site behind the meter the notion of across the meter is that you have both a generation resource that can be a gas power plant, it could be a wind farm, it could be a solar farm, it could be a battery, you know, a large cluster batteries.

You have a load, which is a data center, and then you have a point of interconnection. And, you know, the load can basically consume all of the power that's generated on site. that it needs. Any shortfalls can be pulled in and be firmed up by the grid interconnection.

And then any excess power that you have from the on-site generation can actually be supplied back to the grid. And so you get this like, you bi-directional aspect of the grid interconnection point, and that's really why it's called across the meter.

But, you know, this, why this is beneficial is, you know, the investment AI data centers ultimately leads to energy abundance because you actually have all this on-site generation where you're not using a lot of it some portion of the time. And that excess energy can be supplied to the grid and actually drive down the cost for local repair. So that's kind of the future and the vision that we're really building towards. Yeah, I'm extremely excited about it.

And it feels like just the perfect thing at the right time where a lot of Americans are asking for an answer. And this is like the first step in the right direction. Yeah, if that can be done at scale, the people are like, hey, I actually like these AI videos after all. They're driving my rates down. Well, thank you so much for taking the time to join us. Have a fantastic remainder of Hill and Valley, and we'll see you soon, Chase. Thanks, guys. Appreciate you soon.

Goodbye. Let me tell you about graphite. com. Code review for the age of AI. Graphite helps teams on GitHub ship higher quality software faster. And let me tell you about Lambda. Lambda is the superintelligence cloud building AI supercomputers for training inference that scale from one GPU to hundreds of thousands. Sabrina Halper says easy tell at Hill and Valley.

Briefcase is equals Hill. Backpack equals Valley. What is the third option? What is the third option? Remova. It's briefcase. Not briefcase. The full luggage.

Did you bring your full luggage with you? How do you stand out? backpack. What about trunks? We got to bring trunks back. Yes, yes, have a porter with you that brings your trunk with you. Four porters. Four porters. Is it like Louis Vuitton that's known for doing this huge trunks? Yeah. Yeah, we got to do that. Anyway, our next guest is Ryan Peterson from Flexport. He is now in the stream waiting room. So we'll bring him in the TV panel drum. Ryan, how are you doing? Oh, look at this setup. You guys got for me. You look like you look like president material. You look presidential.

That's my president. This is my president. Ryan, great to see you. How are you doing? What's you? I'm great, man. I'm back in my, people don't know.

This is my hometown. I'm in Washington, D.C. I didn't know this was your hometown. I am. Yeah, I'm son of a government economist. Really? No way. There you go.

Born to be president, forced to handle global logistics for fast-growing companies. Okay, well, I mean, the first question that everyone's got to be asking you is, is like how are, how is the geopolitical conflict affecting your business? Because a lot of the flexport stuff that happens, I imagine is across the Pacific, across the Atlantic. You're not moving crude oil, but is it affecting you?

What are the knock on effects? Have you been processing the last couple weeks? How you're holding up? We got to print out a picture of Ryan with his face on Ben Affleck, you know, smoking cigarette, because I feel like you should just put that up in the office. Like every day, every day, Ryan checks the news. I run a SaaS company, you know, the 99% dollar retention. And you're like, whatever happened on the front page of the journal affects me.

But take me through it. And like a month and a half ago, I told my comp team, hey, guys, I'm going to take a break. I'm not going to do any press. I just want to lock you in on AI. I'm just going to be going to apply AI everywhere in our business. And then since then we had the tariffs get overturned. And now this straight of horro moves and I've been asked to do press like, more than in my whole life ever combined almost.

But the impact on container shipping, which is what a lot of people think about Flexport is relatively negligible. Like prices have gone up. But other than that, it's not that big of a deal. The reality is that Strait of Armuz and the Persian Gulf is a cul-de-sac. It's really not that important that you go in there for container shipping. It's a huge deal for oil. Of course.

So the price increases due to fuel costs? fuel costs and like people get away with what they can get away with and logistics so some of it is just like you know disruption let's raise the prices sure sure um the bigger impact is actually on the air freight market okay where the middle eastern airlines own an up about 18% of the world's air cargo capacity

so air freight prices have doubled and we're a big air freight provider too so that's been helping companies navigate that especially air freight Asia to Europe is really disrupting. A lot of that would fly into Dubai and kind of get planes with refuel, get trans-shipped, and then sent on. So we've actually built like a new product that's actually working really well where we ship cargo via ocean from Asia to Los Angeles. And then hot shot truck it to LAX and put it on a plane to Europe. Which is very strange, but apparently it saves people a lot of money in time versus air freight direct from Asia.

What does hotshot mean? It's like it's this concept where the truck doesn't make any stops. It just goes directly to it. Okay, I love it. I might have made that up. I know. It sounds good to me. Talk to me about the tool you rolled out for tariff refunds.

Was that the first AI-driven product? I mean, I imagine you've been using AI for years, but was that the first like, wow, okay, we built something new very, very quickly moment for you? because I know you've been doing a ton of investing in AI tooling, AI software development, all sorts of things. And I want to get into that, but I want to focus on the tariff tool first. Yeah, well, we've been, there's a ton of stuff that we do with AI that's a lot, not all of its customer facing. In fact, most of it's just automating work and making ourselves cheaper and more reliable. But the tariff refining calculator, not that much AI, actually.

What we do is basically just take your data from the government. Whenever you import something, you have a record that sits with Customs and Border Protection and their technology. system. It's not a very easy to use system. They'll give it to you as a CSV file. And then we clean that CSV file and give you a report showing exactly what you're owed. It's not rocket science, but we were able to

build it really quickly. Thanks a AI. So we launched it. I think it came out. The tariffs were announced on a Friday. We launched this on Monday. I was very proud of it because Monday, we worked all weekend and Monday morning at 7 a.m. I was on CNBC

talking about our new tariff refund calculator. which is pretty showing you, I think, how the modern world is going to look like. You've got to be really good at responding to what's happening in your industry. And if you're that fast, you know, I don't, I think it'll be a long time before our competitors have anything comparable. Are Flexport employees allowed to buy tariff refunds?

I don't know if our employees are, but Flexport is. We will be announcing, no, I can't announce it right now, but we will be announcing a program to buy people's refunds at a discount and get them cash up front. Yeah, makes sense for businesses. So that's something we're actively working on. It's a very hot market right now. I think we can build something unique because, you know, the secondary market for this is very

interesting. It was trading in the 20 cents on the dollar range, 20, 25 cents. And then the day of the Supreme Court ruling, it went to 50 cents. And it's now in the 60s and even I'm hearing some trades in the 70s if your claim is big enough, 70 cents on the dollar to get paid now. But I think those guys are going to run into real problems because they have an agency problem. Like if you're a hedge fund, you bought someone's tariff refund, how hard is that guy going to work to actually go get the refund when push comes to shove? Like, you're going to have to file paperwork and the government's going to reject your claim and then you've got to file more paperwork.

Oh, because the original owner of the refund still has to go fight for it, but they've already sold it. So they're not incentivized to go work. Whereas it's not like you're trading the claim and the hedge fund can go fight it. because I feel like the hedge fund would be very motivated to get that claim, but they don't have the right to it. Ultimately, it's the original importer that still has to go get the claim. And so we're going to be there to hold the hand and make sure we actually go get the claim. So I think we're uniquely positioned to help with that.

That's very exciting. Create the trust across the market. So, yeah, we're going to try to launch that soon. Okay. We're very active right now. Yeah. Talk to me about the other AI initiatives. Yeah.

What's your approach? Is it to just tell every employee? buy as many AI products as you can do a million demos or is it more like focus on I'm joking there that sounds like something you would never do but is it more like you know you have like an internal team that's like focused on like shipping experiments is it I'm assuming it's like more more internal tools because flexport customers don't necessarily care what's happening they just want the they want things fast and cheap and all that stuff yeah We have a, yeah, we're in an incredible moment.

I've declared Code Red a few months ago around AI because what we saw, we built this product in for AI audit of customs back in October. We launched it in October of last year. And basically what we do, we are at customs brokers. We help people clear customs. So we built this. And as a customs brokerage, you have to review, we review about 5% of all customs entries a second time with a human compliance team.

And our error rate in that process was 1.8%. It doesn't mean that we violated customs law 1.8% of the time, just to clarify, it's like, oh, maybe we didn't declare like some free trade agreement that it was eligible for, etc. Those types of things. So we then built in October, we launched this AI auditor. So now we audit 100% of entries before we transmit it to the government. And then by November, we started to see the data.

we had gotten our error rate down to 0.2%. So it's 10 times better than the humans are. That's crazy. And that was like the first giant wake-up call. You're like, oh, my God. And there's a lot of work at our company that looks like a customs audit. Totally. You're like wrangling unstructured data, doing some reasoning about it.

Yeah. Submitting, you know, moving documents around, submitting data to a government or some other party. So we, by early Q1, as you're like, oh, it's code red. Like, we have to be the company that takes AI and automates and does everything with AI and with AI agents in particular in this industry. And we have massive, like, if we don't do it, it's only because of ourselves. Like, I'm paranoid as hell that we're like a boomer company that can't get this done because we've got a lot of people who don't have these skill set and, like, a lot of people who are set in their ways. And so I've been just, like, leading from the front on this. We've got small teams that are kind of really cracked and building stuff and some proofs of concept where the AI agents can do most of the work that people do.

And we're telling everyone at Flexport, like, yo, this is the new reality of our business. And if you're not at the head of the curve and learning how to use AI, how to automate work, how to make yourself more productive, yeah, like, let's just live in reality. Everybody's jobs at risk, including mine. Like, if I'm not able to lead from the front and be the best at this, then someone, someone's, you know, else needs to be the CEO of the company. Yeah, someone's going to build the AI AI native, truly AI native flex port. You're not going to let it be anyone else.

Totally. I think it'll be us, but there's a chance that it's not, right? And like, we either become the most valuable company in the world or we're worthless. Like, it's crazy, crazy fork in the road trust. One tip, instead of doing, we're trying to push companies instead of doing Code Reds, like Madden do Code Red to do

a Baja blast instead. So you declare a Baja blast when you get back to the office? Yes. Yeah. Okay. It's just like a little bit more like positive messaging. No, no, no, no. It's okay to declare code red, but every code red must be followed by a Baja blast.

Okay. Once things are really turning and you're Baja blasted and just rolling out AI feature after AI feature, you need to declare Baja blast and then everyone doubles down and goes even harder on everything. But at least you know that you're operating from an even stronger position of strength. That's the goal. Yeah. Well, I'll tell you, I talk to you, I've been texting one of my jobs here is to go.

learn, like, who's the best at this? And it's very interesting. There's not that much consensus. I've texted probably 10, like, CEOs have kind of like really well-established tech companies that they don't look like flex-ported, but they have profiles where there's some manual labor and processes and compliance and things like this. And there's a lot of figuring it out right now. And everybody's, the CEOs are super energized and leading from the front. But I don't think there's yet a playbook for how to come in and use AI agents to do most of the work in a company. But the companies that figure this out are going to run through the economy. And I think you're going to be able to, whole industries are going to get replaced by companies that are good at this or the companies that are in the industry have to be the ones doing that.

And that's our, if we don't do it, I really think the company could be worthless in a few years. It's kind of a crazy moment. You have so many assets and so much, so much experience. Like, it's definitely your fight to win. Are you updating your timelines on more self-driving technology or automation in the physical world based on, what you're seeing with Waymo, what you're seeing with GPT models getting better and better. Like, it just feels like AI.

Flexboard mask driver. Yeah, are you going to the moon? We are, we are, we are very close to that space. So we operate five sort of mega fulfillment centers, five million square feet of fulfillment. And they're pretty manual operations right now. I've been a robot skeptic in, in these buildings. I just think our,

our teams in those buildings are not that expensive and they're pretty good. Like if you someone, I mean, I'm on the record saying, like, if you have a humanoid robot that has the IQ of a, you know, AGI of a human and it's only 20 bucks an hour, like, I'll hire a thousand of them in each of my buildings. And that's kind of what we've done. That said, we, it sort of messes with the aura of the company. If we've got AI, everything, automated everything, and then the cargo shows up at this, you know, building full of workers picking items manually and putting away. So there's some argument there. We, we, we, we, we, we We've been spending a lot of time with their robotics, fulfillments companies that have pitches here. It seems kind of commodified. The ROI pitches are pretty good, like maybe too good. I'm a skeptic. And we'll probably be investing in that space.

We'll be a consumer of it. I don't really see how's building the robots. I think they're very competitive market. So that makes sense. And I think the main question is like how do these, how do the robot companies actually price this? Are they going to basically lease them to you like on some type of hourly rate based on runtime? Are they going to ask you to actually shell out like 20, 30, 40, 50 grand for these things?

And then you have to be running the math on, okay, does like how quickly is this thing going to depreciate? You know, how often am I going to have to replace all these motors? And I'm sure there's a bunch of different things they can do to mitigate that. Yeah. And I don't think the humanoid form factor is right for fulfillment centers anyways. I mean, you just want wheels and conveyor belts. But that's like the number one demo that at least one humanoid company is doing. I don't get it.

I mean, you just, you don't need the feet. Like, you just need the arm and then wheels to bring you the objects to the arm. If you have feet, you can ride a hoverboard around. You just add the wheels and, you know, $200. $200 Tmu hoverboard gets it done. No, I don't know. I know that. That's a good idea.

I mean, there are a lot of companies working out a lot of different. The hoverboards, by the way. They just disappeared. Yeah. It came and went so fast. You can't commute on them if there's any cracks in the street. You'll fall on your face. It's not good.

You need to be in a warehouse basically. That's the only use case. Were you a hoverboard user, John? We had a hoverboard. Do you know Rob? He actually injured himself on one. It was very dramatic at the office. Rob from Soilet.

Yes. And then we had a band issued on hoverboards in the office because we were like, I don't know if our workplace. If you have a photo of Rob on a. I think I do. I'll send you one. You text me that, please, yes. Yeah, yeah, yeah. It was a dramatic day where we were like, I don't know if our insurance policy covers this.

It's mostly for like carpal tunnel because there's a lot of people on keyboards. Not many people on hoverboards. And so we'll stick to the keyboards. Anyway, have a fantastic time in D.C. Ryan, we hope to see you soon. Have a great day. Thank you. Thanks for having me on.

Goodbye. See you guys. Cheers. Let me tell you about cognition. They're the makers of Devon, the AI software engineer. Crush your backlog with your personal AI engineering team. And let me also tell you about ACTA. Octa helps you assign every AI agent a trust identity so you get the power of AI without the risk.

Secure every agent. Secure any agent with ACTA. Our next guest is Scott Nolan from General Matter. We will be bringing him in just a minute. We can go back to the timeline. There was a very important post in here that we need to see. A gentleman got a tattoo that we need to investigate. So someone got a 2026 Louis Vuitton glasses as a tattoo.

And we will have to pull up this video because a lot of people have been wondering what tattoo they should get as a first tattoo. And Louis Vuitton glasses looks great. It looks great. And I like the monogram across the forehead too. This is ad space that has previously been unconsidered. No one's thought about this before. NASA administrator Jared Isaacman announced a $20 billion plan to build a permanent U.S. base on the moon. We can move on from the Louis Vuitton glasses.

Thank you. Over the next seven years, NASA is canceling plans to deploy a space station into lunar orbit. The quote here is NASA is committed to achieving the near impossible once again to return to the moon before the end of President Trump's term, build a moon base, establish. and enduring presence and do the other things needed to ensure American leadership. Did he say anything about making it a state? Not yet, but there are some very interesting, the moon is sort of up for grabs. Whoever lands there first, whenever you land, you kick up a bunch of dust, and you, by default, in international space law, you sort of claim like a number of miles in every direction that

you land. And so you can sort of just rush the moon. This is a controversial strategy. Let's see how it plays out for us. No, no, no. So you can't claim the moon, according to space law, which is sort of flimsy. But you can't just say, hey, we plan on the flag as ours, or we claim this part of the territory. But when you land, by law, I can't just land on top of you because I would just destroy whatever you built.

And so if I build up a bunch of stuff, then I sort of claimed it. And so there is a new space race afoot. But we will come back to that story later. because we have Scott Nolan, who is the founder and CEO of General Matter in the Reistram, Wittland. Let's bring Scott in. How are you doing? Good. Thank you, thank you guys.

Thanks for having me. Good to see you. Thanks so much for taking the time on such a busy day. How is Hillen Valley going for you? Hellen Valley's great. It seems like everyone's here. Great discussions. Great event. What is the latest and greatest from General Matter?

Can you get us up to speed on the development? Every time we talk to you. Yeah, is the job finished? Yeah, is the job finished? Not yet. No, it's going to be a few years. As you guys know, we're aiming for, production before the end of the decade, but it's, there's a lot of work to do to get there.

The latest updates on our end are really January. We got a contract from the DOE. I think we've talked about that in the past. Yeah. That's $900 million to build our capacity in Paducah, Kentucky. A week ago, we actually announced a new deal with Ex-Im Bank working together towards financing of offtake in Japan and Korea. So that's going to be our first international markets and moving into there to provide

enrich uranium to our allies so that they don't have to depend on our adversaries. So step one is really domestic production for needs at home and then overseas. It's the latest update. Double click on off take for me. What exactly is happening? Because I know the uranium's in the ground. It gets refined. Eventually it goes into a nuclear reactor. There's a couple other steps. That's right. Yeah. Yeah, we should we should give the overall update again. But the big picture is every reactor that you hear about needs fuel. Yeah. And it needs one of two types of fuel, either low and rich or higher and rich fuel to 20%. And to make fuel, there's five steps.

It's really get it out of the ground, mine it, turn it into a gas, enrich it, turn it back into a solid, and then make your fuel pellets. That middle step is one that the U.S. used to be the world leader in, 86% of worldwide production, and now we're less than 1%. Yeah. And so we're trying to bring that back, doing that in Kentucky, all clean sheet, engineering, just focus on cost and scalability. So that's what we're doing. The offtake is we have this, you know, capacity to sell and to enrich. And so utilities work with us. You know, they'll contract with us for us to take their uranium and enrich it to the level

they needed to operate in a reactor. Okay. Yeah, that makes sense. Has the, is the, do you think the rate payer protection plan or a pledge is going to be overall bullish for the nuclear industry? I imagine that as we move towards more behind the meter, energy production, people should be thinking more nuclear, but is that how the energy market will play out

in the United States? I think it's a genius move, so we were talking about concepts like this even before that announcement where you started to see things where communities were starting to get concerned about data centers coming to their community, driving up electricity prices. It's this, you know, when you're talking about how much you're spending in a data center,

why not just produce a little bit more energy production capacity? Maybe produce 110% of what you need. what you need. And internally, we nickname that, bring your own energy. And so I think that's the way that you get data centers to be not just neutral, but highly beneficial to the communities that they're in, reduce rates for everybody. I don't think it's just rate payer protection. I think it's rate payer reduction. And so that's how we should be getting to cheaper rates on the meter and how we should actually build out the grid again. So I think that's a genius move. I think nuclear should be a big part of it. I think enrichment's going to be the bottleneck to scaling that, which is why we're trying

to solve enrichment. turning uranium into energy. At some point we start talking about new reactor development. We talked to Doug Bernauer from Radian. We've talked to Isaiah from Valar. Is there another side of the industry that's waking up? Are we going to be seeing new things from the Westing houses of the world, these old companies that maybe the capital markets are more receptive to, regulations more receptive to, and they have a unique product that can actually generate a megawatt, hundreds of megawatts. I don't know how big the biggest Westinghouse reactors are, but the criticism has not been

for a while, they don't work. It's been, they take too long or they're too expensive, and maybe something's changing in the economy or the energy landscape. Yeah, I think it's, you know, just like people talk about all the above energy, I think I think it's all the above reactors. So micro reactors might work in one area, but a gigawatt scale like AP 1000 reactor is going to work on the grid. And so that side of things has always been about how do we do faster, more affordable, more predictable construction projects for those gigawatt scale reactors. Everything else is about how do we build it in a factory.

How do we bring down the cost of the reactor? And so the world really is divided into those two camps either, hey, we're committed to it being a construction project, let's do that better. And there's companies working on doing that better. And then there's all the reactor companies that are focused on either like one megawatt, 10 to 50 megawatt, a little bit bigger than that for data centers and tiling those together. So I think there's a lot of people with different strategies and all of them can make sense for their own and markets. Curious to ask, how do nuclear energy providers respond to, you know, geopolitical events the last week where you have, you know, fluctuating energy prices in, you know, the LNG markets. Is it possible for nuclear energy providers in, let's say, China, to see rising fuel costs and react to that? Or are we more talking about they just are kind of steadily providing energy as they always do.

And it's less of a sector that can be kind of responsive to changes in global fuel costs. Yeah, I think it's just on the nuclear side, it's just extremely stable, more of the same. I think you see the volatility in the fossil fuel markets. in it. I think that, if anything, is probably viewed as a tailwind for nuclear where, hey, nuclear is going to be here. You know, you buy a reactor, you buy a few years of inventory on fuel, which can easily be stored, and you're going to have predictability in your energy costs. And for the really big reactors, the fuel cost is not a major cost. So they haven't worried about it as much. Really on their mind is how do we get diversification and a stable supply base. On the advanced reactor side, the fuel cost is actually pretty meaningful. And so that's why we're really focused on not just scalability and relax. but also cost structure.

So the nuclear in general, I think the more volatility there is in the fossil fuel space, the more the more obvious it is that that needs to be a huge part of the grid. And then the fuel for nuclear is, you know, we're trying to produce more of it and we're bringing the cost down so that the advanced reactor companies can at some point potentially beat fossil fuels as, you know, on a cost basis, not just on a safety and, you know, low-carbon basis. And remind me about the actual mining landscape. Is this a scenario where America has enough deposits of uranium and other fuels that were purely limited on refining capabilities and manufacturing capabilities? Or is there a world where America actually runs out of the raw material?

No, it's really a limit on enrichment and on reactor construction. Now, on mining, the U.S. doesn't have as good of deposits as like a Canada or Australia, they're not as ore rich. And so the price of which it makes sense to do mining in the U.S. is a little bit higher than it would be in Canada. But it's still coming online at these prices. And we see producers in, you know, Texas, Wyoming coming back online, bringing new mines online. You have still mining operations happening in Utah, Colorado. And even those foreign countries are very geopolitically stable. They're allied countries.

So a lot less, a lot less long-term risk. Yeah, I mean, you've been working in the nuclear industry for a number of years now since before Christopher Nolan's Oppenheimer movie. Was that movie educational? Did it make your job easier or was the net effect like more fear around nuclear in your opinion? I thought maybe neither. Okay. When I went, when I went to go see the movie, I was hoping it would be more inspirational in some way, get into more of the tech, like, make it about about the work that they had to do. You know, it's more of a character study in a lot of ways. Totally.

And so, yeah, I think it was neutral. I think the one scene from the movie that was relevant was, if you remember when he's in the, I think in a classroom or in a setting like that, and he's filling up the bowls with marbles. Yeah. The big bowl of marbles was uranium enrichment. So we explain that to people. You know, we're making the marbles that go in, you know, into the nuclear reactors. Yeah. Not into anything they were doing.

There's not nearly enough marbles in the bowl right now. Well, thank you so much for taking the time to come chat with us. Have a fantastic rest of your time at Hillen Valley, and we'll see you soon. Say hi to everyone. We'll do. Have a good life. Goodbye. Let me tell you about Gusto, the unified platform for payroll benefits and HR, built to evolve with small and medium-sized businesses.

And let me also tell you about Gemini 3.1 Pro. Gemini 3.1 Pro is here with a more cable to baseline. It's great for super complex tasks like visualizing difficult concepts, synthesizing data into a single view, or bringing creative projects to life. I have a challenge. Hit me. I want to teach you an Australian accent. And here's how you do it. You say this out loud exactly as it's written.

Have you been to spice lightly? Have you been to spice lightly? Have you been to spice lightly? Really? You have to read this because the words are being like a pentokely. Even if you're in the middle of your office. Spice like cinnamon lightly as opposed to heavily. But when.

you say, have you been to spice lightly? Have you been to spice lightly? It's like an optical illusion for your mouth, I suppose. Anyway, there's plenty of other news while we wait for our next guest to join. Let's see what else is in the news. Have you heard, speaking of manufacturing, can we pull up this video of this gentleman who runs a bowling alley? Because this is a fascinating case study in the American manufacturing and industrial capabilities. Listen to this video, Jordy.

I don't think you've seen this. People always ask me, what's the hardest part about owning a bowling now? It's not managing a bar or even the crazy property taxes on a building this bit. It's actually these machines. These are Brunswick's A2 pin-sutters. Built in the 1960s. These people are running here for almost a decade. Each machine has over 2,000 moving parts.

That's the problem. Just like anything their age, they start breaking down. And while the parts are becoming hard to find, the mechanics who grew up servicing these are even more ramp, which is why we're starting to see more and more houses convert to the string pin machine. But just like any industry, innovation is often met with skepticism. Oh.

This is crazy, so they're going to potentially switch to pin setters that have strings, which bowlers don't like, because of pins don't fly. Now, don't give you a row. These are much more fun to bowl on. The crash and the free fall, We don't know how to make bowling machines. We actually don't know how to make bowling machines in this country anymore. This is the only American dynamism category I care about.

Yeah, move over. General matters. Sorry, hypersonics. Sorry, Hypersox. Yeah, sorry, Andrewall. This needs to come. We need the bowling company of America. Okay, that's the only, only category that I approve of a new name.

Yes. In that style. But it does, it does tell a very interesting story because these niche, long-tail manufacturing organizations are very difficult. There's a whole bunch of bespoke gears and switches and electronics and all sorts of different machinery in there that's been difficult to make. And it is

a victim of the de-industrialization process that we've been suffering through for the last few decades. But it was just interesting to see it in like a viral Instagram reel. Anyway, we have our next guest, Sarah Guo, from conviction in the Restroom Waiting. Let's bring her into the TV in Ultradel. Sarah, how are you doing?

Welcome to the show. I'm great. Hey, guys. What's happening? Great to see you. We like the hot drop. We like bringing you in just as soon as you're ready. But great to see you.

How is your Hill and Valley going? It's amazing. It is much bigger than it's been in prior years, but there's a lot of work to be done. And it's a great group that they've assembled here. Does everyone understand what a NeoLab is? You introduced me to this during our Christmas episode, which you had a fantastic costume. for. Very serious person.

It was amazing. We're all very serious people. But have Neo Labs as a concept gone mainstream? I don't know that everybody here is paying attention to that, but the impact of the capability improvement from the labs and lots of other projects in AI, I think Washington's definitely paying attention to. And what specifically? I mean, we talked previously about some of the admins work on, you know,

protecting children and giving parental controls. But what are the other areas? There's obviously the rate payer protection pledge. There's energy. What are the other conversations around AI that might actually ripple down to a startup founder, somebody in your portfolio, a NeoLab, or even a lab lead? Yeah, I think one of the areas that has come to the fore

is this idea that we need to have more industrial capacity in the United States to manufacture things. from munitions to chips to parts for robots. And there are a lot of different strategic areas that America is given up in the supply chain. In order to reclaim them, the path has to be automation, right? Just in terms of cost of labor.

And I think there's growing recognition amongst both people in the administration, policymakers, and private companies working on it now. And what's at the top of the list? There's zoning requirements, funding bills, tax incentives. There's so many levers that you can pull. What are people actually excited about?

I think one of the basic blockers is just going to be the ability to build faster in areas that have been traditionally very regulated. And that could be generation. It could be transmission lines. A lot of it is about energy, actually. But some of it is about labor. Let's talk about that too. Brad from OpenAI was pointing out that the bottlenecks to increased AI capacity in the United States are very real world. And then they're very human, like their labor center.

and the ability to unblock, let's say, more electricians or more folks standing up data centers or more power generation is actually something that Washington has control over. So it's something we have to work on together. Yeah, we were talking to Chase at Crusoe about this, about retraining, upskilling. And I'm wondering, like, do you see that as a venture scale opportunity if somebody came to you and said, I want to build a trade school? I want to agree. 55 electricians, 55 plumbers.

Yeah, or even just like a venture. a website, an app, an online course. I don't even know the shape of it, but is that a startup opportunity, or is that something that, like, we firmly need to put back on the university system or the trade schools or the government? Personally, I want somebody who built a startup previously to go work for the government to do something like that. Bring the speed.

Yeah, what do you think? I think it's all of the above. It's funny you should ask. I didn't plant this question, but I am, in fact, a long-time investor in a company called Uplimit that focuses on reskilling. And they work with lots of great companies on skilling for the AI age as well, mostly digital today versus the trades.

But I think it has to be a combination of these things. And I would say, even if reskilling is something we should clearly do and make a huge investment in from both the private and the private front, it's not enough, right? When you think about the demand in this race where, as Congressman Molinar said, like we cannot lose because it represents the future productivity of the global economy.

It is happening very quickly, right? And so even if we invest in upskilling, which we should do with startups, with universities, with government programs, we need like 10 times as many electricians like next year, right, if you just think about the capacity growth. And so there's some very real limits to how quickly you can move capability in humans. And so I think we need to go to. automation for parts of this. Yeah. Jordy.

I'm curious if you've picked up on the Hill's information diet, like how are they learned? Hopefully they're, you know, watching every episode of No Pryors, you know, indulging into Dwar cash. But like, where are they getting there? Where are they getting their information? Obviously the event is a great place to kind of like understand these different categories. But like where, like what, what narratives are they tracking and who is most influential? from a audio, you know, kind of an information standpoint.

Well, I hope they're listening to TV piano all the time as well. That would educate them. I think the one of the things that is always going to be clear is in order to take the risks that you need to, in terms of understanding what's going on at the frontier and listening to different audiences that are not always going to be super open, nor is every one of the narratives of these different audiences supported by the mainstream media, you have to go talk to the people, right? And the thing I'm really encouraged by with something like Hillen Valley or with, you know, I've been in D.C. like four times over the last six months, which is more than five years ago by far. But you also see like the ecosystem

coming here. And increasingly, like we see lawmakers come visit us when they're out in the Bay Area. And so I think a lot of it is in person. I think that's like excellent in terms of education. How have you been talking to founders in your portfolio, founders you work with about the SaaSpocalypse, if they're in tech, but they're not a foundation lab, a Neo lab, and they're watching maybe the dinosaur that they were eating one bite at a time, the multiples is compressing over there, and they're sort of thinking about their strategy, how AI-native they should be, what they should do, how they should think about their evaluation, what what type of conversations are you having around that?

One of the most useful things a board member can do is provide market context and, like, actually sound the red alarm once in a very long while, right? And so here, I think if people have not dramatically changed their strategy, according to what's happening in the market with capability in software over the last three or four years, like the vast majority of them have a real problem, right? So I would like to think that the companies that we work with know that, and a lot of really smart founders and CEOs know that. But one thing, when distinction I would draw is I don't think the entire world collapses into a few labs. I think the world is very big in terms of capabilities we need to go work on from getting people, their, you know, prescription drug treatments with companies like Leight in Health to work in AI or contact center like Harvey and Sierra.

it is not clear at all to me that that is in the pathway of the research work that the labs want to do and the largely productivity and code-focused products that they've built. Yeah. How are you thinking about actual deployment of just like AI tools being AI first if you're sort of a growth stage CEO, five or 10 years into your journey? and you need to go and sort of revitalize the company. Are you more of a fan of, you know, crack, like labs-type team that has the authority to go and rewrite systems and vibe code tools and try and speed things up

within the legacy structure, or is it sort of the all-hands meeting and everyone is going to be onboarding to AI tools today or they're going to get left behind? How do you think about the trade-off between, like, verticalization versus horizontalization

within a company? I think there's probably like three elements you need to really upgrade a software company for the AIH, right? You need, first of all, the urgency, which is if you were a enterprise software company in the last decade before ChatsyPT and you had kind of won your market in terms of adoption or lighthouse customers at, let's say, scale of more than $100 million on run rate, you felt pretty good about the future, right, barring. limits to your market size at some point.

I think everything has become much more challenging for workflow software companies. And here's where the willingness to back founder-led companies, and you see founders coming back in and getting much more active about this at technology companies of all scales, where they have the moral authority and the urgency to say, we need to operate very differently. And so I think that's element one.

The second point is what you said, which is given it's a general capability, then you actually want every, You know, great companies, it's not just like one function is good. Like, often you are good at everything, right? You are good at finance and GNA. You are great at sales and marketing. You are great at building product.

You, you know, are really smart about strategy. And so I think in every dimension of the company, maybe it's the all hands you describe them, maybe it's hackathon, maybe it's just like allowing for internal use and experimentation and making that a norm. But you need everybody to do it. And then I think the third piece is like, how do you create this compounding motion where you get a huge part of the business to be. driven by AI such that you can make these very, you know, kind of innovators dilemma decisions

about where to invest and even how to price. Maybe that is a labs team. Maybe it is a founder with the moral authority to do things like Simon at Notion. Maybe it's an acquisition if the company is lacking the talent. But I do think you have to do all three of these things at once. Chat, GPT moment in robotics. Has it already happened with Waymo? Or do you think it'll look like something else. Do you think it can look like that, given that physical AI can't just be instantly distributed through every iPhone? How are you thinking about physical AI broadly and kind of break out moments? I think we will see it in the next two years. And Waymo and Robotaxies, these are absolutely the first version of autonomous robotics that most people will see, but it's a very large physical

world and we still don't like I think the in certain communities in you know big cities in California the acceptance speed consumers are hilarious right they're like I am never going to get in a waymo that looks unsafe and then the second time they sit in the waymo they're like oh you know maybe I'll like pull up my phone because I'm already distracted right and the third time you get in the waymo you're like I can't believe that this thing doesn't go any faster and like it went to this point in my driveway instead of right here. And so I do think we're going to have that transition very quickly, and it's a huge opportunity the way the 900 million users are now on chat GPT or more.

But I think we're going to see it in different functional areas, right? And so I sit on the board of a company called Sunday Robotics. You guys have met Tony. And so whether it's them or somebody else, we're going to see them. I think we're going to see robots in the home. And that'll be the first time people believe that it's possible. for a robot to do general work, as well as in manufacturing and industrial environments as well.

That's very cool. Another sort of prediction, Ben Thompson called ChatGPT or Open AI, like the accidental consumer company. They were very much like a Neo Lab in the sense they were just doing research and then they just wound up with the consumer product. Do you think it's possible that we'll see another consumer application emerge from a Neo Lab or something like it? Yeah, I'm betting on it.

And so I absolutely think that the chat box, the ability to interact with information in sort of mostly a single turn, but sometimes a conversational way, where, yes, you increasingly add data sources actively is one way that consumers will interact with AI, obviously. But the open claw was this very interesting phenomenon where it was a combination of a bunch of really interesting ideas that still hasn't penetrated the mainstream consumer, even though tech audiences are very excited about it. And so I think that's just, you know, one signal of what's to come when you have long-running agents with some idea of memory and persistence and ability to do things on people's behalf.

and we'll see other examples of this as well. Yeah. Jordy, anything else? Yeah, this is great. Enjoy the rest of Hill and Valley. Thank you so much for taking the time to come back with that with us. Great to see you. Good to see you guys.

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Let's pull up this video from Elliot Potter. Okay. It says we've raised $27 million for this moment. Starting today, your agents get an iPhone and can talk like a friend. Texting is the universal interface. Millions of people text every day. But until now, developers have been restricted from building on the most powerful channel to ever exist. Link is a single API for iMessage, RCS, SMS, voice, and even FaceTime, and find mine.

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That's us. President Mark. That's the Germanator. And that's the move forward. First, we learned to... click. You've got mail. All right, so here we are.

One of the first YouTube video at the zoo. We learned to tap. A revolutionary product, the Mac, the iPod, and now the iPhone. For decades, we've been trapped speaking the language of the machine. Until today. The era of the user interface is over. And finally, technology is a conversation. Link is a single unified API for building conversational experiences.

We give you direct access to iMess, RCS, SMS, and voice. I'm very interested in how long this will work, how happy Apple is about this. This feels like something Apple wants control over. They love the walls around their garden. And a lot of companies that have done this have kind of gone up against the folks in Puritino. Got cooked. They got cooked.

Sometimes. I don't know. Of course, I mean, there is a way that they do a deal with Apple and Apple loves it. There's been some back and forth on the timeline because potentially this post was paid to promote, to be promoted. And we were not paid, by the way, to react to that. But Shiel Monot, friend of the show, received a DM asking if he would comment or quote tweet. Beer chined in and said, are any comments on this post real?

Because he is fighting a fight against a sort of astro-turfed content where startup launch videos will go to a number of people. This is like an old playbook. You send something to your friends. Say, hey, I launched today. Like, we'd love you to show me some love. And that's fine, I think, according to X's terms of terms and conditions. But I believe that you cannot pay someone to comment.

engage, retweet, or like your post without disclosing that. And so, uh, Nikita has been very quick to roll out. And that's just the law. That is the law that you can't pay someone to like your post, I imagine. I don't know. Oh, I was talking about just in general, if somebody pays you to promote something. Yes. Yes. Person promoting it has to disclose. Yeah. I know that from FTC rules, like I can't, I can't tell you like, oh, app loving. Like, do you know, maybe they're a sponsor. Maybe they're not. Profitable advertising made easy with that. Exxon.a.a.a. Get access to over one billion daily active users and grow your business today. Like, I have to tell you that TBPN is powered by App Loved. We're sponsored by App Loven. We put

App Loven all over our gong. App Loven's on the ticker. You know what's going on here. It's a promoted post. It's a sponsored. It's a sponsored integration. They're an advertising partner of ours. We love them. But we can't just secretly be doing that. And there's been a lot of that on X and there's been a lot of fear around what that would mean for the X ecosystem. every time you saw a viral post, you were like, oh, this was amplified artificially, uh,

without disclosure. And so, Nikita Beer rolled out the, you know, paid promotes, paid, paid post tag. I'm still a little vague about it because like,

if I do mention ramp in an essay and I post about it, but they didn't pay me to include them and I'm picking them off the shelf, but I pick them because they sponsor the show. Like, do I need to disclose the whole thing as a paid promotion or can I not mention ramp data? But if, but if you're mentioning someone in an essay, I don't know.

is not. Yeah, or like if I talk about rampata set. Yeah. So it's all a little bit iffy. I mean, hopefully people see our disclosures and know that, you know, we have a number of advertising partners

and we're very transparent about this. But there certainly is a push to be even more transparent, which I think is a great for. John, we have some breaking news from the New York Post. What's this? Squirrels are vaping e-cigarettes

after mistaking fruity aromas for food. And let's, let's pull this up, We need to, clearly. This is so important. You have a video? How do you even find this? Just pull up this picture. Here we go.

Squirrel was caught. This is hard-hitting reporting. This is the story you need to know about. Oh, this is so sad. Very sad. This is devastating. Yeah. We got to keep these off the streets.

Did you know that the way that illegal vapor products like probably those that are pictured in that image of the squirrel vaping. The way that the illicit market is measured is actually through trash surveys. So companies and regulatory bodies will pay surveyors to go out, pick up bags of trash in, let's say, Manhattan, and dig through them and say out of how many legal products did they find, and then how many illegal products did they find? because the people who buy illicit, you know, not FDA approved vapor products might use them, they throw them away at the same rate as a legal product.

No one's like, oh, I bought this at a corner store. It doesn't have FDA approval, so I better squirrel it away, no pun intended. I need to, I'll just throw it away like any other product. And so they will survey through the trash and figure out that, wait, for every jewel that we saw, we saw three puff bars, which are not approved or something like that. And then they will know the ratio. Anyway, without further ado, we have Sean McGuire. No, Casey Hammer.

Oh, Casey Hammer's here. Surprise guest. Oh, fantastic, surprise guest. Sorry, Casey. Great to see you. How you doing? Very well. Definitely not Phil McGuire.

Sean McGuire is coming on in about 10 minutes. Thank you so much for joining. This is such a treat. This is even a surprise to me. Anyway, for those who don't know, reintroduce yourself for everyone. Hi, my name's Casey, and I'm the founder and CEO. of Terraform Industries, a long-time fan of the show. Long-time fan of you.

Thank you for the tour of your amazing castle. Of our all-time favorite guests. I don't want to docks your location. But Casey has like the coolest office I've ever seen. It's amazing. How is progress going? Have you outgrown that facility? How many, like, what are you building and how many of them have you built?

We are bursting at the seams, which is a lot of fun. Yeah, yeah. And we've got machinery through all the parking lots. She'll come and visit again sometime. I would love to. Bring the camera. We'll do it. We'll do a candid walkthrough. That'd be amazing. Yes, a lot of progress. It's really exciting, actually, getting to stand up our own in-house manufacturing machinery.

Really, like, having to decide to we spend half a million dollars on buying this machine from somewhere or just get an internal or two to, like, build one and learn how to do it from scratch. And almost always, it's better to, like, let the American engineer, like, kind of learn how to do it. And then we own that information forever. It's super cool. Yeah, yeah, yeah. We were watching a video of a man who owns a bowling alley and was lamenting. the fact that his machines are from the 60s and he can't figure out to fix them and the parts aren't available anymore. But I think with a little elbow grieves, he'll be able to keep those working for another 50 years. Remind us the actual product rollout strategy, the thesis and the actual value prop of your company. Yeah, so Terraform Industries makes synthetic fuel from sunlight and air.

So we're making methane and natural gas. And we're also making methanol now, which is a precursor to liquid hydrocarbons. So these are all in the news recently. And it turns out that historically, if you didn't have any underground, you have to depend on getting them from somewhere else and really hope that the US Navy stood between there and here

to make sure that the fuel got there safely. So for my fellow Australians still at home in Australia, kind of staring at a monitoring the situation type website with about 30 days of fuel left for the whole country. But that's not the case. You can actually, with modern technology, you can synthesize as much synthetic fuel as you could possibly want using nothing but sunlight and air. And that's what we're working on.

And so obviously there's like a pretty sizable R&D effort because this capacity does not exist at scale in America yet. Where are you in the research and development cycle versus deployment cycle versus testing, scaling? How are you thinking about the next few years of the business? Yeah, that's a great question. So technology has actually been around in one form or another. for more than a century. But the real challenge is innovating on cost because America's frack has got really good at making oil and gas quite cheap, which is great for all of us. But if we want to participate in that market, we've got a maximum on price. As far as participation goes, we've been hard at work

for more than four years now on R&D. And we've really basically managed to solve all the major technical problems. We're right now in the process of building and integrating full-scale system on our test site in Burbank. And actually, this is our breaking news here on TBPN as far as the wide world's concerned, we're broken ground on the test side in the desert as well. So we'll be... That's great news. Yeah, so what they tell you about permitting in California is mostly true, but it is, you can prevail and get through, which we're able to do, with help of our

friends and partners over at Kern County Permitting, which is super helpful of them. Really appreciate it. It's very, very exciting. We get to go out in the desert and kind of do the vision quest and actually build this thing and have real, honest to God, synthetic methane and methanol in our hands from sunlight, not, you know, kind of the whole process end to end. It's a really exciting thing. It's amazing. Yeah, I wanted, in a perfect world, you could clone yourself and have one version of you just posting about energy and energy markets and then the other version of you

building your business. But since we have you here, how, you know, give us an update on current kind of LNG shortages globally, how you think the market will kind of react. and evolved to so much supply coming offline. You mentioned Australia, but is everything priced in yet? Is it not priced in? What are you watching? It's really hard to say. Australia's actually a net LNG exporter,

but for the liquid products, they're obviously importers. And Australia, like New Zealand and California and a lot of the rest of the world, has really neglected the necessity of having onshore refining capability. So you're able to take in wide variety of different crude products from a wide variety of different exporters and then process that into usable fuels to keep your economy working. And it's been very hard to justify maintaining those capabilities with the environmental problems they cause and overwhelming cost in some cases.

When, you know, you can just buy it from Singapore or somewhere and just hope that, you know, your term in office is not the term in office when the wheels come off. And we're kind of seeing, you know, this foundation has become more shaky in recent years. It's very frustrating to me because I'm someone who understands the sheer necessity of energy sovereignty for, you know, well-being of people in particularly in the developed parts of the world and the Western world, where, you know, every man will. and child consumes an average of about 11 gallons, sorry, 11 barrels of oil per person per year. It's really important. And unfortunately, this has happened so suddenly, it's very difficult to adapt but that quickly.

You'll probably hear the newspapers and TV and so on saying, oh, it's going to take years and years and years to rebuild this refinery capacity. I don't believe that's actually true. I think if you wanted to do it quickly as possible, you could actually do it in months, not years. We know this because the Nazis are able to kind of build coal to fuel refinery processes. in the midst of horrific bombardment in the Second World War,

which is almost 80 years ago. So it is possible to do. But it requires a kind of different focus, different approach to, you know, permitting and construction that is really kind of a muscle that the West has largely lost in the last few years. Really going to have to find it again, I think. Interesting.

I love that tour of your office. There was something interesting about your company culture. You had something pinned to the wall or a poll. Can you talk a little bit about the company? You might have to be more specific. We do have a sign on the wall that says we do this not because it's easy, but because we thought it was easy. Didn't you have like $100 bills? Oh yeah, yeah, yeah.

Explain that. Yeah. Okay. So, I mean, from the perspective of a business owner and operator, we have, you know, basically fixed costs, and then we have variable costs. And the fixed costs are things like, you know, payroll and rent and all the rest. And then the variable costs are, you know, when my engineer spent a lot of money buying a machine. which I actually like, because the end of the day, we're trying to maximize output per input. And the fixed costs, by you zero output, they're just all costs.

And so I have this ability to kind of increase people's salary on a kind of biweekly basis, much the same way that the new core, the steel, American steel company does, by agreeing to a series of milestones in advance, and then if we hit them, which we do about a third of the time, basically the person who hit them gets to hand out the fake money to everyone, we write on it what it was for, and then the cash lands in your account, and you go and spend it and feel good about yourself. But then the money you stick up by your computer

and it reminds you that even though we're kind of in this interminable brine to try and make this technology work, and sometimes you have weeks and even months of really banging your head against the wall. In the past, you were able to succeed kind of doing almost impossible things on impossible timelines and budgets and you can do it again and you will do it again. It's really important to kind of internalize that, you know, you just got to keep on grinding away and tell you solve the problem mentality.

Yeah, I love it. It's such a great visual representation of progress. Well, congratulations of the progress. I would love to come by and see the latest and greatest at the HQ. And have a great rest of your Hill and Valley. On the new site as well. We'll talk to you soon. Yeah, see you soon.

Have a good one. Goodbye. Let me tell you about MongoDB. What's the only thing faster than the AI market, your business on MongoDB? Don't just build AI. Own the data platform that powers it. We have some news out of Cooper Tino. We've been deep dive in Apple today.

Apple shipped ads. Apple Maps. Let's hit the gong for some of that. There we go. I'm sure people love it. I'm sure no one's upset about this. No. This is from Mark German. Of course, the Germanator. Apple is launching ads in Apple Maps in search this summer in major advertising expansion. It'll be announced as early as this month. They have been pushing this. Siri ads would go really hard. Unfortunately, I can't help you about that with that, but I can tell you about my pillow. It's just ads. It just can't do anything except it'll take a shot at it.

It's for if you're not. I think we have Sean McGuire in the Restream waiting room. Let's bring him in. If he's ready to go, let's bring in Sean McGuire. Sean, how are you doing? What's on, team? How are we doing? What's going on?

Great to see you. You look great. I believe the first time we met in person was two years ago at Hill and Valley, right? I think that's correct. This is the only location where I'll look as dapper as you gentlemen. Yes, I put on a tie just for you. Oh, yeah. It's a good day.

Just for me. How is Hill and Valley this year? What's changed? What are the focal topics? What are you focused on? It's bigger. Bigger and better. Okay.

Jacob, Delian, Christian, deserve a lot of credit. They built something that definitely exceeded my wildest expectations for them. I'm proud of them. They crushed it. And I've got to say, you just had kids. Casey Handmeron. Yeah. Casey is a galaxy brain.

Yeah. We did our peach deets together. You guys were at Caltech together, right? Not just at Caltech. I mean, his now wife was my housemate for a couple years. So anyway, he's a smart dude. He taught me a lot. Yeah.

It's also a little eccentric. He loves doing night hikes, like literally when full moon. So he used to go hike up mountains with him. It's on brunties, man. I buy that. Makes sense. He's like, there's actually no rules that say you can't hike at night. Yeah.

Yeah, that was a, it was. It was a good indoctrination for me and thinking out of the box. Yeah, wait, aren't you a surfer? No. You're not a surfer? I grew up in a town where everyone surfed, but I was a computer nerd.

So yes, I can surf. Okay. But, like, I can probably serve better than you guys. Whoa, shot's fired. I don't know about that. But I'm horrible compared to kids. Now we have to serve. Now we have to serve.

We have to serve. I cannot surf. I can't serve. I take a lot of, but I think you're not. is very serious. But Nikes-Rugan's also like 6-5 and the big news is coming out today. Six-eight. Six-eight. Let's keep

straight. But who's counting? Okay, I want to get into mass drivers. And Elon, we watched his presentation on Saturday. I'm sure you did as well. Walk us through how you processed it. You came out with an essay that you said you edited for the first time. So yeah, walk us through your reaction and then how you've been processing the general response. Yeah, well, on the editing essay, which is obviously not the point.

I started my UC college admissions essays that had an electronic deadline two hours before they were due. And single shot, shipped it. My mom was standing over my shoulder losing her minds. We talked about yesterday. It was pretty funny. That's amazing. Look, master drive on the moon, I know it sounds crazy, but I think it's kind of the inevitable

evolution or the inevitable next step. It's not the final state, but it's the next step. And if you have, like, if you have Starship and if you have Optimus with those two things, like if you have a lot of those things, I think build, that's basically having humans, like synthetic humans you could put anywhere, the moon is a place. place. There's a lot of, you know, raw materials there. And so if you can build a fab on Earth and the supply chain, you can build it on the moon with Optimus. And so, I mean, look, I think we're about to have both Starship and Optimus. So I think the Master Have on the Moon is kind of inevitable

just due to economics. Yeah. And I think it, I saw your amazing question, John, around when it will happen. Yeah. I can't tell you. Like, I would guess not within 15 years, but I think it will happen within 25. Yeah, yeah. That's sort of where I got. And I think it's, it's almost uncharacteristic in Silicon Valley for founders to actually think in decades and propose anything more than 10 years out. Everyone's like, think in decades, thinking decades, think in decades. But no one actually says, this is what I'm going to do in 20 years. No, not like that. No, not like that. No, no, no. It's true. That's too ambitious. Yeah, and I think, I don't know, I came away from being like, being like, yeah, it is crazy. Yeah, it is decades away. But what better North Star to have than

something that is actually life's work level mission that can go on that's not just the same thing. That's not just the next iteration of what you've already built and you've done successfully. It's something completely net new that will take an incredible force of will. And so I don't know. It is interesting to me, like how much can that philosophy scale to other founders? I imagine that if a series B founder came into your office and said, okay, I'm laying out this like 40 year timeline, you might be like, okay, like let's focus on just keeping the company alive for the next two years. But maybe we need more of that. I don't know. How do you think about it in terms of like just the founder psyche where we are in this like, in this like weird moment of like AI doing everything? Who knows what the next few years will look like that? How do you think about this scaling to just like the founders that you work with broadly? As you guys know, I jump around a lot. It's just going back to the mass driver. Sure.

I'll just say one thing that I think people don't understand about it. I was trying to make this point. I didn't make it very clearly. I think the single hardest thing we're about to have done, which is Starship and Optimus. Yeah. I think that what you actually build on the moon is not very hard. Like the mass driver itself is not very hard. Building fabs and the entire supply chain to do that is a lot of work, but we've done it on Earth.

And so it's like, I think that we're about to having all the raw ingredients put together. And then it's just going to take a lot of time and effort to do it. But I think people are probably overestimating how much future difficulty is required and underestimating how much past difficulty we've already kind of surpassed. So anyway, sorry, just had to make that point. In terms of where we are, I wrote a hardware manifesto about three and a half years ago that I sent internally at Sequoia. and I sent it probably to like 100 people in Silicon Valley, you know, around then, but I never posted it publicly because it felt like there was too much alpha in it.

And kind of the point. It was kind of like a personal thing. You know, it was like trying to make money for my firm and my friends. Sure. Anyways, the core argument I made was a few things, but like I was trying to argue that in the case of Sequoia, 50-year-old firm at the time, now, 54 years old. For the first 25 years of the firm, we made almost all over money in hardware.

For the last 25 years, we made almost all over money in software. I was trying to argue that I think the next 25 years we're going to make our money in hardware again. Something like AI is unbelievable, one of the biggest revolutions ever. Literally in this essay, I said that I think a lot of the money in AI

will be made at the hardware layer. And as we enter kind of a world, where digital intelligence as abundance before physical intelligence. Like my personal forecast is, I think the abundance of digital intelligence is about 10 years ahead of physical intelligence, not in terms of like the state of the art

of what it can do, but in terms of the full rollout, like the total deployment, or as Dario would say, the diffusion rate. Sure. And so I think there's like this 10-year moment where hardware's not commodit, modified at all and software kind of will be.

And a couple of the other points I made, one is that if you just think logically, every software revolution is preceded by a hardware revolution. Like to have the iOS app store that enabled Uber and DoorDash and all these great companies, you needed to have the iPhone. The iPhone took 20 years of, you know, you needed Qualcomm, you needed Broadcom, you needed fiber layouts, you needed four. G, you needed, you know, CPU's getting smaller and, you know, battery, touch screen, you need battery density getting better, et cetera. This is true for any software revolution.

Literally by definition is preceded by a hardware revolution. And this AI revolution, like, we're seeing what it can do from the software layer, but it's still limited by hardware. I think that's, like, at least 10 more years. And then when you go beyond that, like, I think we're, you're. kind of next point is I think we're entering like a phase transition where the hardware we were doing for a long time was kind of all following Moore's Law. It was all like the branching out of this decision in the mid-1950s to go all in on the silicon supply chain. And that has created magic. There's still a couple orders of magnitude of juice to squeeze.

But, you know, we hit fundamental physics law like limits, denard scaling, things like that. that I think this tech tree is kind of branching into humanoid robots, into silicon photonics, into orbital data centers, you know, all these new hardware areas where there's going to be 20 plus years of progress we get to make. And there's going to be, you know, just incredible businesses built on the back of this. And a lot of dumpster fires. Yeah. Are you seeing hardware companies pivot into AI?

We've talked to Blake Scholl. boom about moving into, I think, natural gas turbine production. And I'm wondering about some of your other space investments that might say, hey, maybe we want to get into the data center boom in space. Like, where else are you seeing energy reallocate towards other products into being more aligned with the AI boom? I like pushing people's buttons. And, you know, I remember the good old days when crypto and AI were friends.

and I'll just remind you guys that a lot of these, you know, incredibly groundbreaking AI data center companies, like Crusoe, I know you had Chase on the show earlier today. You know, or Cool Weaver. There's like both of those were Bitcoin miners in the early days. Yep. And pivoted into AI. But I actually view this differently.

I think that like AI and crypto have a shared history. And I'm not going to, I've articulated that. online before I'm not going to go into that whole thing. But I think that, yeah, we will see anyone that was an energy company is becoming an AI company. But I think that's naturally. I think that it's natural.

I think that it's not like a hard pivot. I would frame it the other way that AI is becoming an energy industry. I think that in Silicon Valley, it's almost this Copernican principle where people used to believe that the world revolved around the sun. sorry, it revolves around the Earth

and then, you know, realize that it revolves around the sun, at least our solar system. I think that there's a Silicon Valley parallel where people think that all of technology, all of industry revolves around Silicon Valley, but it's actually kind of the opposite. Silicon Valley is Earth, and there's these much bigger forces, you know,

and bodies, which includes energy and, you know, chemicals industry, these giant supply chains, semiconductor industry, which has been around for a very long time. It was pretty advanced, and people in Silicon Valley forgot about it, even though, you know, we played a big role in building it. You know, producing mirrors for the lithography machines. That's something that you're never going to see talked about in Silicon Valley until now. Yeah, or making chemicals, you know, to make ultra-pure, you know, wafers.

Yeah. And anyways, I just, I don't like the language of, other industries pivoting into AI. I actually think it's the opposite. I think it's like Silicon Valley is waking up from its toddlerhood and realizing that there were these giant industries that we underestimated. And they're actually really freaking good at what they do.

And we can all benefit by working together. And so I just, it's a different twist on how you even ask the question. But yes, there are many industries merging together. And hardware is coming back just to the, the root of every, the way you think about every business in the Valley. Last question for me, prediction around a chat GPT-esque moment for robotics. Do you think we're on a two-year timeline, one year, five-year, where do you sit? So I actually think we're going to see this moment in video, like an AI video before we see it in

robotics. My forecast, like I may be wrong. It's just me forecasting. I think that within the next 12 months, we're going to see. the chat GPT moment for AI video. I think that right now we're almost in like the GPT3 era where for the people that are really insiders, they know that the models have gotten really good,

but they haven't quite been packaged in that form factor that just breaks out in the consumer psyche massively and just have this extreme deployment. So I think I would say chat GPT video moment in the next 12 months. And then the robotics moment I think will be a little bit longer than that. It's 100% coming,

but my guess would be it's three years. Personally, this is my own personal forecast. Yeah, yeah. No, I like it. I think that's about right. And let me just say that like almost in the definition of the question is it's like a consumer perspective,

I think that things like optimists will be doing very useful things inside factories, but that's not the chat GPT moment. That's not like when the public, It's like, oh, wow, this thing is changing my life. I want to use this thing. It's ubiquitous. I think that's probably a few years behind, like, useful things in private.

Yeah, that makes sense. Very cool. Well, thank you so much for taking the time. Have a great rest of the time at Hill and Valley, and we will talk to you soon. Say hi to everyone. Thank you, see you, Sean. See you soon. Goodbye.

Let me tell you about Phantom Cash, fund your wallet without exchanges or minimum, and spend with the Phantom card. Brett Adcock is excited to introduce Hark. A new AI lab building the most advanced personal intelligence in the world. He says we've been in stealth for eight months assembling one of the greatest AI and hardware teams on the planet. I want to explain why I started Hark and what we're focused on. Since I've spent the last three years working on the hardest AI challenge imaginable, giving AI a humanoid body. On the digital side, I've been using all the existing LLM chatbots.

and I have to say, they feel incredibly dumb to me. AGI in the limit should feel like a sci-fi movie. It should be able to listen and talk. It should have persistent memory and be highly personalized. It should see and touch the world, but we're far from this today. We're crafting a new interface to AGI, intelligence that lets you offload your mental workload into a system that begins to think like you, and sometimes, John, ahead of you. We started Hark with one goal. Build the world's most advanced personal intelligence,

paired with NextGen hardware designed to serve as a universal interface between humans and machines. Did they launch a model? Like, can you actually, oh, you can request access? Because I imagine that there's really no getting away from benchmarking and people, you know, digging into the model, understanding if it's distilled from something or trained on something. And then also just like the VALS. vibe and the smell and like how people actually interact with the bot and chat with it and interact with it and put it to use and see if they get value from it will be interesting to see

where yeah on my side i'm very excited about robots and uh i i i think it's interesting to you know i don't think the job's finished on the on the robot side he says i've spent the last three years working on the hardest say i challenge imaginable giving AI humanoid body But job is certainly not finished. So we'll see Brett is certainly ambitious. And so wants to get in the arena with everyone else. There's a lot of labs. Every other giga, Gagga, Chad.

You'll just have to beat against Demis Osama. Mark Zuckerberg. Yeah. Sam Alper. Dario Amade. Yeah, this was in the news today. Like Amazon launched a new AI thing. And getting into, yeah.

Yeah, it's so interesting. Like, is this primarily going to be a hardware device that's, like, you know, attached to some sort of harness that uses other models? It's also interesting that it's not vertically integrated. Like, they were already training AI models. You know, Brett uses the end-to-end, you know, neural network. Like, he clearly has GPUs that train models at figure. Yeah, like it would be, it would be cool.

It'd be cool. Like, yeah, I struggle to see why it should be a second company. because I would assume, I'm sure they can work together, but if he's building a hardware device, could that not be like the brain of your figure? And maybe he's thinking like, okay, what happens if you've got figure and they're awesome? But then you've got to go fly somewhere

and you don't want to get a second plane ticket for your humanoid next to you should be able to just bring the brain. But again, it's hard to be super, hard to be super, hard to be super, hard to be super, hard to be super bullish on this. at least personally, but I'm excited to see what they work on. Are you bullish on Fruit Love Island?

Sean McGuire was talking about video generation. There's an AI-powered TikTok account that produces a show called Fruit Love Island and the series is already the fastest growing ever gaining 3 million followers in nine days since launching on March 13th. It has videos hitting tens of millions of views

within hours in a rapidly growing fandom. People are not happy with this. There's a bunch of community notes. They just say it's AI slop. I think that's the point. It is, you know, slop, but people are clearly watching it, and the TikTok algorithm loves it.

They call it AI Cinema, which it will, of course, be hotly debated. Udi Werthheimer says, the most expensive mistake you'll ever make is ignoring this. In 2026, you can create new intellectual property from your basement and reach hundreds of millions of fans in a week. I don't know that it's exactly there.

This is people that might be morbidly curious. They might also be, you know, they might be true fans. There might be fans who aren't subscribed, but watch every video. That's the nature of TikTok. Instead, you choose to be fake geopolitic expert on X. It's very dramatically worded. The Apple's App Store is also drowning in AI Slop. What does that happen?

According to Shirish, people are treating the App Store like a media. and blog spitting out apps one after another, all with zero users and zero revenue. Apple reviews that used to take hours and now stretching into weeks and even months. More than half a million apps were submitted just last year highest in over. Well, we have Delian Asperuhov in the Restream Waiter Room. Let's bring him into the TV pin Eldredom. Delian, how are you doing? Congratulations on this year's Hill and Valley.

Give us the update. How are things going? You know, I think somehow best one yet. Sorry to miss you boys on this one. he got to miss out on my childhood, you know, basically, wet dream. I got to be on stage with Jared Isaacman. I know. So, sorry.

Yes. Yes. So we had him on the show. Electric. Thank you for making the introduction. One of the best moments on TBPN to date. But what was the focus of your conversation with Jared Isaacman? I think what was exciting was today was the day that Jared decided to unveil, I believe

was called the ignition set of policies, where it's probably the broadest change to the basically space policies in the United States in the past. 20 years, in particular about a set of different projects. One, how to basically win the lunar space race. I think even on, you know, sort of prior TVBN appearances, I've talked about how I would love to see NASA go from basically landing, you know, lander once every, you know, sort of year, to instead like once every quarter, once every month,

and send robots out, you know, ahead of the humans to go establish that infrastructure. Today, Jared literally announced that that's basically the official policy. They literally, starting in 2027, want to be landing robots on the moon every month. And yeah, it's going to be experimentation on paving, and like, you know, energy and communications and things like that, and, like, you know,

maybe even trying to use the regolith to, like, form some structures. But, like, that type of testing is what's going to get us to the point that when the humans are there, they already have, you know, a bunch of experiments that have, you know, sort of gone well. Yeah. The second was around, he is calling it the SR One,

or SR Freedom Mission, where they're going to build the first nuclear-powered spaceship to basically go from Earth to Mars. And then when it gets to Mars, they're basically going to open up the reentry vehicle and fly four helicopters out on Mars and land them, which is just like the coolest sci-fi thing ever. And then the third area is basically igniting the lower orbit economy, obviously with my Varda

I had on. It's super exciting to see Administrator Isaacman, you know, sort of prioritizing that. It's something that obviously people have talked about for a long time, but I think we're finally getting to ignite it. And then lastly, I think of this is sort of like round one of my, you know, sort of future NASA administrator interview. So I think I passed. But my goal is Jared is the youngest administrator ever confirmed.

I've got 10 years to make sure that I, you know, beat him and take that record away. That would be amazing. Yeah, the experimentation on the moon seems super important because NASA's great at doing science and the un-economical things. And if we can go get some data on what makes sense on the moon, then industry can flow. Elon put out this presentation about a mass driver on the moon. I think you've been talking about this for a while. And it feels like this is years away, but anything we can do to de-risk that to understand, is that the thing that we should be doing with Starship and Optimus, then there will be more excitement. But I want to know from your

perspective, there is a new, like, crazy thing going on in space, the mass driver on the moon. Does that make your job easier at Varda? Because you're like just doing biopharmaceuticals in space now? Yeah. It does make it a lot easier in that if you think about what it takes to like make a drug in space. Yeah. There's for sure some super complicated ingredients that we kind of have to bring from the ground. There's a lot that we do up there, though, that requires, like, water just to, like, flush out the bioreactor after each run. Right now, we just bring the water from Earth. As you can imagine, bringing water from Earth up on a rocket into a satellite, pretty damn expensive. Mining water on the surface of the moon, sending that for free via, like, a, you know, mass driver

directly to our station in lower orbit. That's a heck of a lot cheaper. And so I get really excited by some of these, like, lunar things in that it's not a place where you can do microgravity manufacturing, because there is gravity on the moon, so it kind of destroys the whole point. but there's a bunch of these like, you know, sort of simpler precursor things. Like, you know, the area that I think will take a long time is like, we're not going to be making, I think, like, solar panels or chips, you know, anytime seen on the moon. Like, that stuff's pretty complicated.

But, like, basic metal structures, water, you know, propellant, things like that. That'll actually, I think, like, happen relatively near term. Like, I don't think it'd be crazy to imagine that in, like, 2027, there's going to be, like, a rover that has a little, like, ice melting operation that then, like, turns that ice potentially into, like, you know, liquid hydrogen that a future starship might use for fuel, right? That is actually like doable literally next year, which by the way, is like an insane thing to say. Yeah, it's like 15 year old telling you it's like literally actually possible to make like hydrogen fuel on the moon.

Yeah. With like what we are currently doing today, that is not sci-fi. Yeah. Yeah, that's crazy. Talk to me about like the, the, I think it was really fun investigating the mass driver. Is it 15 years? Is it 10? Is it 20?

Whatever. But it's just cool to hear someone 500, maybe. Who knows? But it's just cool to see an entrepreneur that everyone knows actually think in decades. And I'm wondering about, first off, like, do you think about Varda on those terms? Do you think about, like, what will you be doing in 20 years? And then sort of in the advice for founders, VC hat, like, there are risks to coming out there on a ledge and standing on stage and saying, I'm going to do this in 20 years. And everyone's like, yeah, it's sci-fi.

He's just trying to pump or whatever. Talk to me about how you process thinking really long-term and then actually sharing that with your investors, your community, your customers, the world. world, et cetera. I say the thing that I'm proud about, Ad Varda, is like, we have had the exact same vision from day one. We've basically hit the exact timeline that we always both promised, like, investors, our employee base, our customers, which has just been this like step-by-step iteration.

You weren't aggressive enough. Yeah, Travis would say you weren't aggressive enough. We had not sleeping that much. Yeah, yeah, yeah. Anyway, so you've been on track. Yeah, like our 20-year vision was always we want to create the, like, first industrial outposts in lowerth orbit. the reason being that we believe that it's going to be the invisible hand that lifts humanity off the

surface of the planet, not just bigger rockets and exploration budgets. But we've taken a very pragmatic step-by-step approach, which isn't like, let's go launch the industrial station from day one. It's like, go do these sort of like, you know, proof point missions, start to get revenue flowing through the system, get pharmaceutical customers on board. I'm super excited to say, can't announce the name today. But within the next week, we are going to be announcing that Varda now has a publicly traded pharmaceutical client where we're going to be regularly producing drugs for them in space.

and they're like a tens of billions, you know, massive, you know, sort of corporation. Let's bang the dollar. Congratulations. Preemptive gone. Whoa. Bang, bang, bang. I mean, and I see that as like, that's the starting life. You know what I mean?

Like when you talk about like a 20-year-long vision, it's like, it's been five and a half years to get this point. The whole point of starting Varda was that we would actually go make space drugs for drug developers. We're finally there. We've got the first handful of those. But like, we still have a long ways to go. There are plenty of software companies to get five and a half years in.

They've literally basically built the entire product. that's basically given they're coasting on it for the rest of their lives. We literally have just gotten to the starting line. We have made our V-0.5 of the product. We've laid out to all of our, you know, sort of employees and customers and investors, what V1 through V20 look like. And we know what they look like. It's just you can't just skip to V-20.

You have to go, you know, one step along the way. Next version, yeah, right now we've got these like satellites with pods, by the way, five feet to the side of me. We've got actually a flown reentry vehicle here at Hill Valley. It's pretty cool. Love it. Next version is going to look like, you know, sort of mini space planes, bigger bioreactors. Cool.

Very cool. Did we... A state actor took you offline. Sorry about that. We're back. We're back. I was worried there. But yeah, Helmand Valley Forum from 2009. We're going to have a full like space plane here with bioreactors on board. I can't wait.

Jordi. Amazing. Sorry. I was cutting you off. What is the... What else should people be tracking in space? Everyone's interested in space data centers. Everyone's interested in, you know, manufacturing stuff in space.

Is there like a next next thing that you're starting to hear rumblings of, either in the academic community or in the early state startup? seen some stuff about like put solar panels up there, beam down the energy. It feels like it's pretty useful. If you have the energy up there, just do stuff up there. But what else are you interested in in exploring or at least like hearing a pitch for? I think one macro trend that I point out and then I'll describe some pitches. The macro trend is like, look, when you look at the like market caps of all space companies before today that were like publicly traded, you're talking about maybe like, you know, 15, 20, 25 billion like total. Yeah. SpaceX is about to go out at anywhere from

like a one to two trillion dollar valuation, just the amount of capital flows that are about to happen that are both people obviously buying into SpaceX, folks that are rotating from their space exposition to potentially next gen sort of application areas that they're interested in. This entire field is just going to have a like huge amount of attention, you know, basically brought to it. And so, yeah, we're definitely paying attention to the next application areas. I like to think of space in some ways, like a highway where it's like, you know, when you first only had a handful of cars there, everybody kind of had to bring their own gas tank.

Once you got thousands of cars up there, well, now, of a sudden you can start to invest into a gas station, right? And start to have supply chains around it. Heck, even like, you know, there's people starting to think about not just beaming solar power down to the earth, but also beaming solar power to other satellites. And so you start trying to think about, like, what do power utilities look like. You have folks like Bridget Menler and Northwood that are thinking about, okay, Starlink provides internet to everybody on the ground.

But like at Varda, we don't have internet on our satellite. We get to talk to it like for, you know, 15, 30 minutes once every three and a half hours. Bridgett Menler is hopefully going to make it so that I have 24-7 internet basically in space and can talk to my satellite whenever. And so I think we think about these things as sort of like, there's like layers of infrastructure and as you build up each layer, reusable rockets, space factories, gas stations, ground stations,

now you start to get to do the application layers on top of those. And so I look forward to, I think one day you'll see founders fund lead around in a lunar ice mining operation. I don't think, you know, we're quite ready for that in terms of all the infrastructure. But like, I also don't think that's like 10 years away.

Like I would bet that in the next five years, we lead a like 10 plus million dollar financing round into a lunar ice mining operation. I can't wait for it. There's also a satellite bus company. that you invested in, how are they doing? Endurosat, the CEOs, you know, sort of here, they're rocking and rolling. They, like, continue to somehow be profitable, ebidav positive, you know, north of 2x revenue

growth, you know, sort of year over year. Which, by the way, there's, like, literally no other space company that's at their scale, you know, sort of doing that. And so, yeah, he's deeply impressive. He's got this, like, huge 250,000 square foot facility in Bulgaria, obviously out of all places. But it is, like, the most modern. It looks like Samson and Electronics Manufacturing line. And he's literally pumping out, like, satellites left and right.

So they're rocking and rolling. That's amazing. Well, congratulations on another successful Hillland Valley. Thank you so much for taking the time to come chat with us. Thank you for putting on a suit. Yes. You look fantastic. It's a great set.

A very bipartisan suit. You know, we love Republicans. We love Democrats. Do you have one red shoe, one blue shoe or something? No, no. I just stick to all green today. All green, okay. Money, money, baby.

I love green. Green is our signature color. Well, thank you so much. Have a great rest of your day. We'll talk to you soon. Goodbye. Talk to soon, boys. Bye.

Let me tell you about Cisco. Unlock critical infrastructure for the AI era. You can unlock seamless real-time experiences a new value with Cisco. Let me also tell you about Railway. Railway is the all-in-one intelligent cloud provider. Use your favorite agent to deploy web apps, servers, databases, and more, while Railway automatically takes care of scaling, monitoring, and security. Our last guest is Zach Dell from Base Power.

We're very excited to talk to him. I believe he's getting set up, so we will bring him in in just a few minutes, but stay with us. Stay tuned. And because we're breaking news is that SORA from the SORA account, we are saying goodbye to SORA. To everyone who created with SORA shared it and built community around it. Thank you. What you made what you made with SORA mattered.

And we know this news is disappointing. We'll share more soon, including timelines for the app and API and details on preserving your work, the SOR team. I think this makes sense. Just roll. It's an amazing creative tool. Roll that functionality into the app that already has about a billion people using it. Yep. It was a very cool experiment.

Bill Peebles and the team. Congrats. Crushed it. Broke the internet, but the tool will live on. So I think it makes a lot of sense. This red lighting is really getting dramatic. Red alert.

I like it. The production team's been working overtime, so thank you to everyone there. Well, back to the debate about AI-powered video, somewhat sore-related. Kyle Harrison said, people will call this the future of media, referring to the AI Love Island.

But that inclination needs to be aggressively disagreed with. Content creators will fill the market. Don't push to stop creation from trending towards slop. Push to lift the global conscious to be hungry for more than slop. And Olivia Moore from Andrews and Horowitz pushes back, says going to respectfully disagree with Kyle on this one. There's a lot of AI slop out there, but this series has consistent characters, a coherent and entertaining narrative and real creative production. In my opinion, you could argue that the human love island is more slop than this. So there's a debate over which is sloppier. The AI Love Island under the Real Love Island, we'll let you be the judge.

But we have Zach Dale from Face Power in the Restream Writers and let's bring him into the TV and Eltrum. Zach, how are you doing? I'm great. Okay, you're, you're, you are certainly running. You're running. You're running. I mean, you're looking presidential. So you're running?

I can neither confirm nor deny any allegations. But, you know, I'm a patriot and I'm glad to be here in our nation's capital. Yes, for those who will learn about your presidential campaign in a number of years, In the meantime, tell us what you're doing to bide your time before you take the national stage. I'm the co-founder and CEO of base power, and we are a vertically integrated technology company working to provide more affordable and reliable power to the country. So we build power plants out of batteries and software, and we do it in the deregulated competitive markets in Texas and soon in other parts of the country and also in the regulated markets for utilities.

Okay. And what's the shape of the business? because I'm familiar with, you know, energy products, battery storage that can go on a single family home. And then obviously there's a massive data center boom and people need gigawatts and gigawatts of electricity stored. Is one the focus? Are you doing both? How is it evolving? It's a great question. So our product today is electricity for homeowners. So you sign up with base when we sell you power. We install a battery on your home that serves the grid when the grid's up and running. And when the grid goes out, you get that battery to back up your home.

So you get all the benefits of home backup without the high up front cost of a home battery or a home generator. And then we're able to save you on the order of 10 to 15% on your electricity bill. Now, we also build battery deployments or distributed power plants in the regulated utility parts of the market. So in those parts of the market, we're actually not your utility. We build a power plant for the utility. So we say, hey, utility, you'd like a power plant, 10 megawatts, 20 megawatts, 100 megawatts. we'll go build that power plant for you faster and cheaper than you could otherwise build

a gas plant or a coal plant or a utility scale battery plant and then we'll give you the keys to that power plant. Now, the interesting thing is we can actually use this capacity to accelerate the AI infrastructure build-out. So we can deploy batteries around data centers,

discharge those batteries in peak hours when data centers are pulling power, offset the load of the data center, and add headroom to the system so we can deploy more compute on the existing system. And how should I think about the path to like the gigawatt scale? You know, you see these numbers around every AI company.

I imagine, I mean, it's a young company you've growing very fast. But how are you thinking about getting to, you know, data center scale? It feels like an entirely new challenge compared to home power. But maybe I just have the scale wrong. Well, we've been thinking in gigawatts since day one. So we'll deploy a gigawatt hour of storage this. year. We're actually starting production on Monday at our factory in Austin. We'd love to have you guys come by and see it up close and personal. It'll be capable of four gigawatt hours a year. We have a

second factory coming behind it, which will be much larger, and we'll be ready to talk publicly about that soon. But we'll be deploying gigawatt hours of storage on the grid in Texas and beyond this year and in the next couple of years. And yeah, Jordi. Last time we talked off air, I asked you, why is now still early at base power? You gave an amazing answer. I wanted to ask you live so everyone else could hear it. Well, you know, we are in the middle of a paradigm shift in the energy industry. And the last 50 years of energy have really been defined by coal and natural gas. And we believe the next 50 years are going to be defined by solar and storage. And the existing companies in the space are not necessarily technology focus, engineering lead, or are

R&D-driven. And we are exactly that, right? So we are the modern technology company oriented around this new paradigm. And we think the opportunity is to become the largest energy technology company in the world built on this new paradigm of solar and storage, built around the strategy of engineering-led technology-driven and R&D focus. So we're going to deploy hundreds of gigawatts, hopefully, over the next couple of years in Texas, in the U.S., across the globe in other countries as well. It's a really exciting time to be at the company, and it's really exciting time to be building in power. What does the supply chain look like today, in the future? Where are your supply chain bottlenecks? We talk about chips all the time in AI, but I imagine that

there's a whole process. We've talked to, you know, about a number of Tesla and Amazon. They're buying mines. They're buying refinery equipment. Like, it's a really deep supply chain until you can actually deliver a battery pack. Where does all that? this go and where the key bottlenecks that we need to be thinking about as we scale battery production in America? You just have to vertically integrate to control costs and control the inputs. So that's why we're building our first factory in Austin and we'll have a second factory coming right behind that.

So we can control as many of the inputs as possible. So producing these products is very difficult and you need all kinds of different inputs. And the bill of materials is very long, right? you get the different products from different parts of the market, different parts of the economy. And the more you can control it yourself, the better. The more you can have security over that supply chain, you can drive those costs down. So there's not any one piece that's particularly constrained where, oh, we can't get memory or certain things that you're seeing show up in the compute supply chain crunch.

We feel pretty good about a supply chain. We spent the last three years building out our supply chain, building relationships with suppliers, because we have this vertically integrated strategy from day one. What do you think about the, like, the best case scenario for a decade or two decades, just in the battery industry broadly? Like, I remember when the iPhone came out and it was like, wow, like, this thing can run all day long. It's been 20 years.

It still has about one-day battery. I know that that's, we're doing more with it. We're you drawing more energy. But is there some sort of breakthrough that's maybe deeper in the, you? the academic literature that you think could unlock like the one week long iPhone battery or something. I don't even know if we demand that because we just charge them every night. But like, is there something that we can do to get on like a Moore's Law type of curve for battery storage capacity or is it purely just production cost for the current energy densities?

Yeah. So there's definitely good work being done in the battery chemistry part of the scientific literature and there's, you know, interesting new chemistries coming out that I think will. be longer duration and more efficient, lower cost to develop better in different ways. The reality is LFP technology, which is kind of emerged as the dominant technology lithium ion phosphate, is really performant. And the reality is the cost to deploy a battery is mostly not the cell. It's kind of everything above the cell.

It's the pack and the power electronics and the deployments and the customer acquisition and the maintenance and all the things around it. And so to drive down the landed cost of power, to delete. deliver low-cost capacity quickly, which is our mission at the company, why we exist and what we think it will take to win in this industry. You have to do everything well, right? You have to do, you have to build the brand. You have to have the deployments. You have to be able to do manufacturing, logistics, warehousing. You need to be able to understand the policy implications. You have to build the software to interface with the wholesale market. So you really have to build this

vertically integrated company to drive costs down at the system level. And I don't think it's going to be, you know, a whiz-bang breakthrough in new physics that's going to break open the industry. It's going to be a company that comes in and innovates on all different parts of the stack and wins kind of at the system level. If you do that, will you be able to supply electric batteries to cars? We're not really focused on the auto value chain today. We think that's pretty well served. Why is that?

Is there something fundamentally different about, because I imagine you just take a battery pack that's on the side of the house and strap some wheels to it and you're good to go. But it's obviously more complicated. But like, help me understand, like, is that just like more competitive because there's more suppliers or it's more deeply integrated would require different machinery to actually produce the batteries of certain size? Our mission as a company is to make energy affordable and reliable, increase energy abundance in the country and eventually across the globe for humanity.

And building cars doesn't really further that mission. So that's not really where we're focused. Yeah, that makes sense. A lot of talk around energy costs and data centers. There's obviously a bunch of data centers in Texas. Are any of the markets that base powers in dealing with any of these dynamics? What are you seeing? What are you seeing actually on the ground?

Yeah. I mean, there's a massive data center buildout, basically anywhere where there is fiber, power, and land. And, you know, Dallas has emerged as, I think, the second largest data center destination behind Northern Virginia in the country. That's obviously a core market of ours, and we are working with data center developers in the state and also in other states outside of Texas on solutions whereby we can accelerate interconnection of AI data centers by deploying distributed batteries around those data centers. So massive AI build out, you know, there are tons of people, I'm sure, who've come on the show who are, you know, no more and are more well-versed,

in the data infrastructure build out than I am. But if I was a betting man, I would say I'm quite long compute. And I think the compute wave that's coming is not a wave. It's a tsunami. And it's going to not slow down anytime soon. What's the shape of your workforce? What are you hiring for? How much of it is blue collar, white collar, some sort of hybrid?

What does base power look like in a few years? Yeah. Yeah, we're hiring software engineers, electrical engineers, mechanical engineers. mechanical engineers, folks, you know, in accounting, in finance, in business operations, you know, deal guys, idea guys, you know, everything. We got room for you guys. Looking for people who can communicate, creatives. You know, we're building a vertically integrated technology company, and we genuinely believe

it can be one of the largest companies in the world. And to do that, we're going to have, you know, a really compelling consumer brand, a manufacturing organization, a design engineering organization, a deployment organization. So, yes, we're hiring tons of electricians. We're hiring warehouse technicians. It's going to take a village. And it's really one of the most fun parts of the job. I love it.

I think one of the best teams in technology, and it's a lot of fun to work with them. Yeah. I can't wait to visit. Yeah. You'll be our first stop. Building a company in Texas. That's my last question. It's an incredibly good place to build.

Texas is very pro-business. And I note to all you founders out there on the coast, come on down to Texas. We'd love to have you. I picked up a lot of interesting neighbors in the last couple of weeks and months. And we hope more people will come down and come build with us in Austin. Fantastic. Well, have a great rest of Hill and Valley. And we will talk to you soon.

Great to see you. Thanks, guys. Always a pleasure. Goodbye. Cheers. Bye. Well, that concludes our Helen Valley coverage for today. I got a great pose from Gary Tan.

We can cap the show off with. He says, I guess the amazing thing that my haters don't understand. is you have no idea how much I eat your hate for breakfast. I am uniquely a person who is driven by all the energy you give me in particular. Love it. Love it. Prime agent says, I like funny G-stack Barry, Gary better than Eminem, Gary. This is fantastic. And congrats to Gary Tan on another YC demo day, which happened today.

We're going to be recapping it with him and some other folks from YC over the coming days in reviewing the companies that come out of that batch. I saw some news from some folks who were writing checks and investing in some companies. There's a lot of exciting stuff coming out of YC Demo Day, 2026. And we'll end the show

with a note from Naval. He says, A lot of software is about to get a lot better right before it becomes unnecessary. Interesting. What does he mean by this? Who knows? Who knows?

But it's provocative. We'll let you figure it out. Well, thank you for tuning in. Leave us five stars sign up for our newsletter at tbpfin.com and we will see you tomorrow at 11 a.m. sharp Pacific time. Throw some flashbangs. We love you. Get ready.

Tomorrow. Goodbye.