TBPN Live - Nvidia Earnings, Paramount Emerges Victorious, Block Layoffs | Diet TBPN

Episode Date: February 27, 2026

Diet TBPN delivers the best of today’s TBPN episode in 30 minutes. TBPN is a live tech talk show hosted by John Coogan and Jordi Hays, streaming weekdays 11–2 PT on X and YouTube, with each episode posted to podcast platforms right after.Described by The New York Times as “Silicon Valley’s newest obsession,” the show has recently featured Mark Zuckerberg, Sam Altman, Mark Cuban, and Satya Nadella.TBPN 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

First, we will tell you about Nvidia earnings. They crushed. Highly anticipated, as always, NVIDIA is permanently holding up the U.S. economy. It continues to hold up the U.S. economy, the global markets, but it's sold off, even though they blew out earnings, and it was a very good quarter. So earnings dropped yesterday after we got off the phone with Doug O'Loflin from Semi-Anlitz.

Semi-analyst did have some good breakdowns here. But the top line, revenue came in at 68.1. billion dollars up 73% year over year and 20% quarter on quarter and this beat consensus estimates by nearly 3% the stock price popped around 3% immediately but then sold out sold off 5% after at the market opened this this morning making it the stocks worst day since last April they're now just a tiny is the April deep sea $4.5 trillion company April was deep sea last April last April was deep seek yeah yeah that makes sense people were saying you're you won't need a whole

bunch of inviative chips because you'll be able to inference cheap commodity hardware and the models was climbing the app store charts in america totally organically yeah there was a lot of weird stuff going on weren't using a massive bot farm at all yeah i mean i guess i sort of steel man the deep seek story there was this interesting takeaway which was that even though the numbers were sort of misreported we had it we had it wrong i think it was january deep seek was january deep see was Liberation Day. Oh, Liberation Day tariffs, yeah, chip sanctions. But the deep seek lesson was you can distill models, you can get, you know, a certain level

of intelligence at a much lower cost and that is real, but the demand of the frontier is just incredible because people are like, oh, I have a strong opinion about 5.3 versus 4.6. Like people really care about being on that perfect leading edge for exactly what their use case is. You see this with people having favorite models, favorite flavors all over the place. And so the demand and the Jevins paradox really just powered right through. What do you have to say about it?

I was gonna say, like, I think when the deep secret moment happened, the narrative was not that they were distilling now. It was that they had built, like, they had trained a brand new model with very few resources. Yeah. There was no like sense that they were just like distilling them. There was rumors about it pretty quick.

There were rumors, but the main narrative was not that, yeah, yeah. Yeah, yeah. I think what I mean, what I mean about distilling is that like the, the truth, that came out over the new cycle was that distillation does get you somewhere near a particular frontier capability and allows you to reduce cost, but there is still another order of magnitude of demand for the next generation and the next level of the frontier, and we have yet to see

a plateau emerge for demand for whatever the next frontier is. The story of the last year is that there's very, very, very, very little demand for number three, there's some demand for number two, and there's an exceptional amount of demand for the most performant model for a specific task. So going back to our newsletter today, our earnings recap, after the earnings call, semi-analysis called the results staggering. I love it. Clean bill of health on gross margin, revenue, and the guide is firmly above byside bogies. Incredibly clean, really. They also pointed out what NVIDIA said about supply commitments with $21.4 billion of inventory on hand up from $19.8 billion. They have $95.2 billion of supply locked in with chip manufacturers, also stating,

we have strategically secured inventory and capacity to meet demand beyond the next several quarters. In other words, we're not running out of chips anytime soon. That's good news for NVIDIA. The second order effect that I think was interesting that Doug O'Loughlin flagged for us, was that even if TSM does scale up magically or they figure out how to build another fab, Arizona increases capacity, even if Nvidia has sharp elbows and is able to push out other demand and get all the long time they need to build all the accelerators that they need, soak up all the CPU demand, etc., etc., well then you can still wind up in a weird scenario where Nvidia has the chips, they're ready to sell them,

the hyperscalers want to buy them, the AI labs want to inference them, but there's just not enough energy. When does the chip bottlenecks shift to the energy bottleneck? That could be part of what is sort of worrying people, because you can see in the timeline, we have this chart, are you not entertained from Nathan? He's taking a screenshot from the Financial Times, and it is just one of the most incredible graphs I've ever seen. You have to wonder if there are any bottlenecks

that they will run into, TSM capacity is one, energy is another. I asked Doug about this, what is in? What does NVIDIA do if their customers do have an energy bottleneck? Yeah. I feel like they'll find a way to still ship the chips. I agree. And truthfully, as big of a story data centers are,

they're still consuming well under 1% of US electricity. And so there are chips to be moved around. There are new power plants to be brought online. We're actually talking to Doug Burner from Radiant about nuclear power today. And there are so many different ways to solve the energy bottleneck. But it is very real world.

It is very slow. And if there's a timing mismatch, you could see a little bit of a flatline that I think people might be worried about. So Jensen himself strongly pushed back against the SaaSpocalypse narrative yesterday, which is interesting because he doesn't necessarily have to. He could be out there saying, like, yes, all those SaaS CPU workloads, they're all going to be GPU workloads. And yeah, you should actually sell all your SaaS because the future is inferenced. Every app that you use, it's not going to be code that's running on a CPU. It's going to be inferenced on a GPU on demand. And so, you know, demand for Nvidia, should you be even higher?

Like, he doesn't really have that many bags with the SaaS companies necessarily. Of course, they'd be, you know, upset if he was talking trash. But he's not. He's defending them. But he buys a lot of software. Sure. Yeah, of course. He said, I think the markets got it wrong on the SaaSpocalypse.

This is Jensen Wong talking to CNBC's Becky Quick, pushing back on the fears that AI agents will cannibalize the enterprise software industry. Instead, he expects a broad swath of software firms to use agentic AI to develop their software and boost efficiency. In what he described as counterintuitive, Wong said that AI agents won't replace these software tools, but will use them instead. Why even waste the tokens building a calculator when you can just download the calculator SaaS or whatever? I don't know.

And this is certainly what we've seen with databases. Like certain databases have just skyrocketed. market in demand because they're the ones that the agents are pulling off the shelf. Invidia is such a big deal. It's not just on the cover of the business section. It's on the cover of the Wall Street Journal. Invidia results help soothe AI fears. The surge in profit comes as the AI's AI industry's appetite for chips continues to grow.

Data Center hardware, the chips and networking equipment that Nvidia sells to AI and cloud computing companies accounted for 91.4% of the quarter sales. terrible news for gamers. Like absolutely the worst numbers you could ever see if you're gamers. Maybe that's why they're launching a short attack. Teenage John would be punching a hole. I would be. Maybe the gamers have risen up and they are shorting Nvidia to try and get them to go back into gaming. Computing demand is growing exponentially. Chief Executive Jensen Wong said the agentic AI inflection point has arrived. With each passing quarter, the pressure grows on Nvidia, which at a market value of nearly $5 trillion is the world's largest publicly traded company.

It is no longer enough for Nvidia to produce good quarterly results. They have to produce perfect quarterly results, said Daniel Newman. How could they have done better? Instead of net income of $43 billion in the quarter, they could have put up $50 billion or $60 billion or $100 billion or $10 trillion, Quadrillion. I want to see a quadrillion, quadrillion dollar quarter, please, Jensen. Gavin Baker gave some thoughts ahead of Enviot. Shawnee who pulled some out.

The same point hit on by Gavin and Citadel Securities. It's a good one. Gavin said the world is fundamentally short both watts and wafers, and it may take years to resolve these shortages. The shortage of watts and wafers may prevent an overbuild. Hyperscalers would overbuild if they could, but they simply cannot. My best guess is that we would need roughly 1,000x more compute for the unlikely hypothetical scenario described by Citrini to be remotely possible and the time it takes us to get

there will give humans time to adjust and maximize the many potential benefits of AI. Citadel said displacing white-collar work would require orders of magnitude more compute intensity than the current level utilization. Even if algorithms improve recursively, economic deployment remains bounded by physical capital, energy availability, regulatory approvals, and organizational change. And do you know what the title of Citadel's response was? No. The 2026 global intelligence crisis calling everyone idiots. We got to write an intelligence crisis report now.

This is a perfect response. Like very, very detailed. The interesting question about like, you know, replacing white color work versus like augmenting in new things is that the AI labs are obviously selling into enterprises. That's growing a lot. And the revenues are very real tens of billions of dollars. But when you look to the other startups that have put up really big ARR, It just, I'm trying to square like, Suno just announced that they're selling 300 million in ARR for AI music.

And that's a huge number. It's so big, but it doesn't feel like replacement work yet. It feels like it's just an additive new thing. Like there were just a lot of people that wanted to pay $10 a month for a cool app. Same thing. How many non-technical people had an idea for an app? How many people that weren't musicians had an idea for a song? Yeah.

It never could. That and then you see all this late. And then you see it with like Higgsfield 2 and all the viral loops and then not web flow. TPPN simulator. No, no, no. Loveables one where we're huge, huge growth. And it feels like yes, levelable is like going into enterprises and whatnot. But it feels like there's a lot of just like net new software developers, website builders that are joining that platform and building stuff.

And it feels very incremental. It does not feel very substitutional to me. And I'm wondering how much of the Suno story translates to the AI lab coding model story as well. And VINV stock is falling because it needed to clear an options wall of $200 a share. So given a lot of folks were long calls into the print and it didn't clear 200, brokers are selling stock to reverse some sold calls. It's that simple. This isn't fundamentals.

It's market mechanics, says Gordon Johnson. Samsung becomes. comes the first Korean company to reach a $1 trillion market cap over on companies market cap.com you can see they're saying at number 12 that's your homepage right yeah homepage yeah but Samsung passed Walmart I mean increasingly important in the AI era I don't think it's all the TVs there was some interesting stat about of the one trillion dollar companies isn't Samsung like the most highest margin, the lowest margin or something.

There was some post from yesterday we didn't get to, but there was a lot more context on that. Ram capital is sharing, says Patriot, and somebody says, I have open clause sending lowball offers on Zillow all day just to make boomers start panicking. And he says, can you give me an update on the Zillow campaign today? The Zillow update. Listings contacted today, 372. Average offer, 70% below asking. Positive responses, zero.

Negative response is 270. One response was violent, but I've reported it to the Tamapal Police Department. No response, 102. Would you like me to keep making offers? 70% below asking, just you're selling a million dollar property. Can you do 300K? Yeah. Let's bring in John Palmer.

Let's bring in John Palmer. He's live in the TVP and Ultradome. Coming in. You know him. With a D.C. Nice hat. John Palmer. You probably know.

John Palmer as being one inch shorter than you. Well he's the face of leg lengthening surgery right now, right? No they were saying I'm the Goldilocks technology brother. Some people were saying you're a little too tall. Oh okay. And Jordi tall on his own right, but maybe not quite tall enough. But short at this table. Yeah, so they wanted someone right in between. So I was contacted by your team and I love it. I love it. Well, I actually introduce yourself since for those who've been living on the newer data center. Yeah, sure. My name's John Palmer. I was a co-founder and CEO of a company called Partyed Out recently announced that we're going to be joining Stripe soon. So that was an awesome five-year journey. And also work on a company called Area Technology, which does

logo and graphic design for brands like yourself. Shout out to the new logo and graphics package. And yeah, that's... We are honored. Well, we wanted to do, we wanted to hang and do some timeline with you as a sign of great respect. Donald Trump spins the wheel of tariffs and replaces a 5% tariff on Belarusian wheat with a 22.4%. Tariff on Pakistani jet engines. All stocks lose $2D6. Substack newsletter publishes a story about DoorDash going badly. DoorDash down 862% global financial system teeters on the brink.

And three, Nvidia announces earnings of $100 trillion, beating expectations by 1,000 X. Jensen Wong named New King of Earth while his stockholders to form the new permanent ruling class, Nvidia, down 3% on the news. Are you a day trader guy? No, no. Are you an investor? I am an investor.

How do you think about the markets? Are you a businessman? What's your strategy? I'm an investor. I'm a businessman. I don't know. I think my approach is like pretty smooth brain value investing. Like good fundamentals, I'll buy the stock and hold it for a long time. Definitely not doing a lot of, even intra-month trade. It's really like long-term long-term line. You're not like a one-man Jane Street. I'm not a one-man Jane Street. What about what about crypto? I feel like if you're working in crypto, even adjacent to crypto, there's just so much alpha from C-N-A. essentially like angel investment style opportunities from someone who's building

something that you just know it's going to be hyped and the token's going to moon but the issue is that it's like wildly distracting because as soon as you have enough money is that I think I think I I don't like doing a lot of like individual stock trading yeah because as soon then then my attention is gravitating towards this thing that's not actually productive yeah and so What do you think that's true? And I think, I mean, obviously, if you're trading like perps in crypto, like, you better stay on top of it because, like, there's a moment to exit. Or if you just hold it long term, you'll probably get liquidated at some point. So I just don't touch any of that. You're right, though, that there are, there are like, yeah, weird things in crypto where, like, someone you know or someone's doing a project and they air drop a token or something like this and you wake up a week later and it's worth like whatever, a month's worth your salary. So I think that's happened to everybody. because I've seen maybe 10,000 posts kind of blaming them entirely for crypto price action over the last couple months. Have you been able to find anything that is like definitive?

Obviously the lawsuit came out and they were like we were going back and forth on it because they pulled funds out of this liquidity pool right after. Actually, I don't even think they, I don't think they pulled funds. I actually think they sold into the pool, which is I guess the same thing. I don't know. But they did it five minutes after we were saying maybe yesterday or the day before that, okay, it's a public blockchain. It's not actually a smoking gun necessarily. I'm only as informed as you are in terms of the tweets.

I haven't verified anything. But yeah, my understanding is that Tara, Luna had a lot of money in this pool, and they had planned to pull 180-something million out of it. I guess the allegation is that. that Jane Street heard that this was coming before everyone else. That's like the material non-public information. And so then also pulled their money or sold it just minutes after Tara did it. You're right that it's public.

So I guess like, again, not a source of truth here. I'm like relaying secondhand with confidence information that I read on the timeline. This guy's built for podcast. But yeah, I guess you could say, hey, anyone could see that and they just reacted quickest. I guess what that would come down to is what are the internal ops on moving those funds like that? I would imagine that a fund like Jane Street with $85 million in this pool isn't just sitting in someone's like hot wallet, metamask, right? Yeah, at the same time, they could have, they could have like some type of protocol or actually software. A lot of this still feels like conspiracy theories that it feels very similar to the Robin Hood GameStop fiasco where there was like a lot of conspiracy theories about like Citadel purposely tanking markets and the bailing out hedge funds at various points.

And I always thought that was just like people looking for scapegoats and a whole bunch of market actors just playing hardball because that's the default structure. I don't know. Yeah, I mean, I'm not that comfortable like, yeah, speculate on this either because I'm just like, all right, I saw, you know, post in the timeline. Burger King is launching an AI chatbot that will assess workers' friendliness and will be trained to recognize certain words and phrases like, welcome to Burger King, please. And thank you. It's huge. The AI will be programmed into workers' headsets, according to the verge. I think Chick-Faulay got access to that technology like a decade early.

Yeah, yeah, yeah. Because there's a my pleasure. There's a thank you. There's a my pleasure every time. Yeah. Apparently, when McDonald's opened in Russia, there's a quote, after several days of training about customer service at McDonald's, a young Soviet teenager asked a McDonald's trainer a very serious question.

Why do we have to be so nice to the customers? After all, we have the hamburgers, and they don't. They need to be nice. to us if they want these hamburgers. Noah Smith is sharing the job postings for software engineers have picked up since vibe coding became a thing. They had been declining until the early part of last year, actually. Again, this is why, I mean, we've talked about this over and over and over. I feel like there's this like two different narratives being spread on Instagram. It's just like this like labor displacement

narrative going super, super, super, super hard. And then over here, it's, it's, It's just an entirely different world. Yeah, I mean... Tyler, how do you interpret the software engineering number? Have we talked about this yet? Yeah, I mean, so I think I broadly agree, like, so when Daria won on Dorcas, you had this take where it's like, you go from AI doing 90% of coding to 100%,

and then it goes from 90% of, like, all sweet tasks to 100%. And so when you're kind of in the interim period, engineers get super, super productive. But then there's a point where it's like actually, it's like instead of being super high leverage because the AI is doing 99%, now the AI is doing 100%. And it's actually like, it just kind of, kind of instantly goes to zero.

You should see a lot of like hiring because everyone wants like a vibe coder at the company. But then at some point, vibe coding becomes so easy that like you don't need any any like special talent to be able to do it. And then you just have the random person. I mean, even. Yeah.

So basically if you, if one day you're not sitting at your desk, you're like, you're kind of the vibe coder in the coal mine. Yeah. Canary. Oh, okay. Okay. Yeah, sure. There is a world where software engineering postings and jobs

are substitutive for other roles. Like you can have someone whose job is like a business analyst and every day they open Excel and crunch some numbers and then you could hire a software engineer to automate that task 10 years ago, 20 years ago, and a lot of companies did. And if vibe coding sort of eats into other things, you could see the rest of white,

it's like the white collar work could go away because the software engineers are doing it. And then the bigger question is like, you're sort of jumping ahead to like a full unemployment scenario where no one has a job, but in the world where there are like a few jobs, there, I keep thinking about this thing that Pavel Asperuhoff said, where if the software engineering jobs go away,

like get ready to compete with software engineers in every category, because they're going to learn financial analysis, they're going to learn to trade, they're going to learn to sell, they're going to learn all these things. Those people will still be employed. They'll just be in a different part of the economy. Avi Schiffman dropped user interview number three. We're not going to play the video because it's kind of sad,

but Gary Tan said, this is not the happy demo path. Apple or Google would never make this one of their launch videos. It's not what you will hear about in a TED Talk, but it's real. AI doesn't get tired, doesn't ghost. A lot to think about with this one. You know, Avey continues to find new ways to break through the noise, but in some ways, like, even though this video has been, feels somewhat dystopian, you know, this is someone who is struggling with mental health,

like actually gets in an accident in the video. it does feel like the most kind of real, raw experience of AI companionship in this form factor. Reflection on like, do you remember his interaction with Paul Graham? He was like, I'm building like a hardware device for AI. He put out like some very vague post about his plans. And everyone was like, this is impossible. Like Apple will crush you. They have the supply chain.

They have the distribution. They have brand. Like you will never win in this category. And Paul Graham told him, like, in order to win, you have to do things that Apple would never do and be counter positioned. Yeah, this type of messaging is certainly in line with, like, the anti-Apple. And the breaking news is that Warner Brothers says Paramount's new offer is superior. Netflix now has four days to respond. The Kalshi market is continuing to diverge.

When we started tracking this, Netflix was up at 50%. Paramount at 40%. Now, Paramount is starting to run away with it. They're at 62%. And Netflix is down at 33. Will they sweeten their offer? We don't know. But Netflix has four days to respond. More breaking news. More breaking news. What else? Square is cutting from 10,000 to 6,000 employees of 40% reduction. Let's head over to Jack. He says, we're making blocks smaller today. Here's my note to the company. So he says, today we're making one of the hardest decisions in the history of our company. We're reducing our organization by nearly half from over 10,000 people to just under 6,000. That means 4,000 of you are being asked to leave or entering into consultation.

I'll be straight about what's happening. First off, if you're one of the people affected, you'll receive your salary for 20 weeks plus one week per year of 10-year, equity vested through the end of May, six months of health care, corporate devices, and 5,000 to put toward whatever you need to help in this transition. We're not making this decision because we're in trouble. Our business is strong. Gross profit continues to grow. We continue to serve more customers, and profitability is improving, but something is

change, we're already seeing that intelligence tools we're creating and using paired with smaller and flatter teams are enabling a new way of working which fundamentally changes what it means to build and run a company, and that's accelerating rapidly. I had two options cut gradually over months or years as this shift plays out or be honest about where we are and act on it now. I choose the latter. Repeated rounds of cuts are destructive to morale to focus and to trust that customers and shareholders place in our ability to lead. This feels a little bit more real. Like what Citrini was sort of predicting a little bit. Yeah. Yeah. And it feels more real than some of these other cuts where they do like an 8% riff and then say, oh, we're getting, but going down by nearly half.

Also, I mean, Block has been mostly spared the SaaSpocalypse. I mean, over the last one month, the stock's down 17%. Over the last six months is down 30%. It's not, it's not, you know, down 50, 60%. Yeah, but still it's trading at like one, like somewhere around. It's way off peak. The peak stock price was $263 now. It's at $54. And so there's certainly a question about how they build back. I mean, it's 4,000 people, which is a huge number. I ran a deep research report to try to find because it's certainly not the largest layoff ever, but it is the largest layoff as a percentage of the overall workforce in S&P 500 history. Wait, how is that possible? So the second largest layoff in S&P 500 history was a conicou Phillips at 22 and a half percent.

Avron at 17.5%. Intel did 15% in 2024. GM did 15% in 2018. Meta 13. I guess the Twitter restructuring doesn't count because it was delisted before that happened. So Twitter went from 7,500 to 1,500. I think you're right. It might not have been in the S&P 500 at the time. Yeah, it wasn't. Well, there's some reactions. Will Slaughter. Bamabon says in three years from December 2019 to December 2020, block more than than tripled its headcount from 3,900 to 12,500, unwinding less than half. An insane COVID overhiring binge has much more to do with Jack Dorsey's managerial incompetence than whether AI is going to take your job. And so people are immediately jumping to, is this AI, is this not? The stock's up 25% on the news. So the investors certainly think it's the right move to make, the right hard thing to

do. The other interesting thing is that Block, if I'm correct, did a fairly large, merger with afterpay. And I don't know how much overlap in the employee base there was, but it's not uncommon when a merger of those two sizes, $10 billion. I think an afterpay merger was in the tens of billions. It was 13.9 billion. It was an all-stock deal. It was originally announced at $29 billion. Afterpay had around 1,500 employees. And so there's a few different things this go. Dan Primack says it's stunning in its candor, and if you're one of those spared, how could you not be wondering how long until AI comes for your job, too? If CEOs get comfortable that this is okay, let alone if they believe shareholders will be rewarded for it, could set off

a stunning layoff wave. The obvious pushback totally over at Salana's making it. He said, didn't Jack have 10,000 people running this website when only 75 were needed even before AI? So Again, it doesn't really matter whether or not a company is actually getting tremendous efficiency from AI. Every CEO is going to do this. And we've said over and over and over, I'm surprised more CEOs haven't done the Eon thing. Salesforce has 76,000 people at the company, right? It's basically a city. Yeah, it's really, really sad.

Jared Sleeper, who has a fantastic episode on, odd lots about the sasspocalypse. He says, first of many sad days, as painful as it is, Jacks did focus service by being decisive. Of course, really sad day. These employees will be able to quickly go and hit the job market, which probably gives them somewhat of an advantage over future layoffs like this. If you're not a software engineer, there should be a wake-up call

to what has happened in the past few months with AI engineering tools. Everything has changed. Now we get to watch. as companies learn how to either use these tools in earnest or slowly fall behind, says Dustin Curtis. I'm very interested to learn the shape of the layoffs. Do they lean more software focused or less software focused? This is certainly just one company, one example, but interesting to see how this matches with the Citadel rebuttal of the Satrini piece. A lot of people are seeing this as like vindication of the Satrini piece.

Hey, Kim, says every media person, please read this before writing your narratives. tomorrow. Jack Dorsey is Jack Dorsey. Do not extrapolate. Do not pass Go. Responding to Will. Will Slaughter's post. Yeah. Square for Context did around 24 billion in total revenue in 2025. They've been trading at around 30, even though the business is profitable and growing. And so had certainly been beat up, but very sad day. Gavin Baker had a post that Kyle Harrison highlighted. He said the fact that Twitter is running well with headcount down significantly really matters, whether they admitted or not everyone in SV admires Elon.

A lot of venture-funded CEOs are sending emails like this, inspired by Elon and taking drastic actions, margins are going up. Apology says this is the first AI cut and it will send shockwaves. Remember, Jack is one of the greatest founders of all time. He created this platform that we're all on and has been early to many technological shifts. and block is doing very well as a business. So for him to cut 40% headcount, and this way is a signal to everyone in tech, get good now, become indispensable, work nights and weekends, learn the AIA tools and raise your game, where you might not make the cut as an employee or as a company. I know that sucks, but capitalism is natural selection. The market is unforgiving because you are

the market. After all, it's not like you're buying some random gallon of milk from the store. You're always buying the best product at the best price. So 2 for apps, your customers are always installing the best piece of code they can get. And because AI is going to create new winners, if you aren't the best in your market, someone may become better with AI. To be clear, Block's severance is generous by any measure, 20 weeks of pay, six months of health insurance and invested equity. All of that goes far beyond any typical package. Jack did his level best to cushion the disruption that laid off are a temporary, unfortunate class as opposed to a permanent underclass. But had he not leaned into the AI transition, he might have had to lay off more people slowly and over time,

as faster competitors went after his market share. How would they do that? Sure, AI is not a panacea by any means, but the closer you are to software engineering, the more aggressively you need to embrace agentic workflows. The AII companies are already doing that in places like Stripe, Shopify, Coinbase, and now Block are pushing hard on this area.

There will be overcorrection, but the fundamental technical innovation is real, and you need to either disrupt yourself or get disrupted. I think that's generally good advice. A16C says every tech company can fire at least have their people, but most can probably do 80%. Blackmail, thanks.

Yeah. How much do you think Satrini paid square to do this life? Yes. To validate. How deep does it go? Yeah, A Lab's taking a victory lab. After being mocked for the last four days. FedSpeak says, on one hand, Jack is a notoriously bad business operator,

and on the other hand, it's over. Yeah, the pushback on Bologi saying Jack is one of the greatest founders ever is simply that, yes, he is one of the greatest founders ever. And I don't think anyone would say that he is the best operator. Sure. And that's okay, right? But sometimes being the best founder means making the super hard decision and having the foresight to get ahead.

It would be a very weird situation if only Jack Dorsey founded companies. Take him said, same dude bought Jay-Z's title, not the greatest operator. Yeah, take him's white-pelling. He's always white-pelling. I enjoy him. We have some affairs to attend to, and we will not be live tomorrow, but we will return on Monday. And I can't wait. Mark your calendars 11 a.m. Pacific on Monday.

We love you. Goodbye. Goodbye.