TBPN Live - Palmer Luckey, Brian Armstrong, & Brian Chesky LIVE | OpenAI Joins the Browser Race, AWS Outage Aftermath

Episode Date: October 21, 2025

(00:13) - OpenAI's Atlas Browser (12:53) - OpenAI Locks in Massive Chip Partnerships (27:33) - 𝕏 Timeline Reactions (57:02) - Palmer Luckey is an American entrepreneur and inventor best known as the founder of ModRetro and Anduril Industries, pioneering work that spans retro technology design and cutting-edge defense systems. (01:45:51) - Brian Armstrong, co-founder and CEO of Coinbase, discusses the company's recent acquisition of Echo, emphasizing its role in streamlining on-chain capital formation and enhancing economic freedom. He highlights the potential for integrating Echo's platform into Coinbase to facilitate efficient fundraising for entrepreneurs, aiming to democratize access to capital and support the growth of innovative projects. Armstrong also reflects on the challenges of traditional fundraising processes and envisions a future where on-chain solutions simplify and expedite capital raising for startups. (01:59:51) - Brian Chesky is an American entrepreneur and designer best known as the co-founder and CEO of Airbnb, where he transformed the way people travel and experience hospitality worldwide. (02:39:19) - 𝕏 Timeline Reactions (02:46:12) - Stuart Landesberg, an entrepreneur with over 15 years in technology, founded Seneca to address the outdated equipment used by firefighters, aiming to enhance their capabilities with modern technology. He discusses the development of autonomous suppression copters designed to rapidly respond to wildfires, carrying 500-pound payloads to contain fires before they escalate. Landesberg emphasizes that these drones are intended to support, not replace, firefighters by providing rapid aerial response in situations that are unsafe, inefficient, or impossible for human crews. (02:59:24) - Daniel Glassman, leading Samsung's new business development team across TV and mobile, discusses the integration of AI features into Samsung's 2025 smart TVs, including a dedicated AI button providing access to services like Perplexity and Copilot. He highlights the potential for communal AI experiences, such as planning trips or home renovations, directly from the TV screen, aiming to enhance user engagement and streamline interactions. Glassman also addresses the challenge of balancing feature expansion with user-friendly design, emphasizing the importance of creating frictionless experiences through intuitive interfaces like voice commands and dedicated remote buttons. (03:04:55) - Harrison Chase, co-founder and CEO of LangChain, discusses the company's evolution from an open-source project to a comprehensive agent engineering platform, highlighting the recent $125 million funding round at a $1.25 billion valuation. He emphasizes the importance of building reliable, mission-critical AI agents and introduces LangSmith, a platform designed to enhance agent development through improved debugging, evaluation, and deployment capabilities. Chase also addresses the challenges of agent reliability and the need for human-in-the-loop interactions to ensure effective AI applications. (03:19:56) - 𝕏 Timeline Reactions TBPN.com is made possible by: Ramp - https://ramp.comFigma - https://figma.comVanta - https://vanta.comLinear - https://linear.appEight Sleep - https://eightsleep.com/tbpnWander - https://wander.com/tbpnPublic - https://public.comAdQuick - https://adquick.comBezel - https://getbezel.com Numeral - https://www.numeralhq.comPolymarket - https://polymarket.comAttio - https://attio.com/tbpnFin - https://fin.ai/tbpnGraphite - https://graphite.devRestream - https://restream.ioProfound - https://tryprofound.comJulius AI - https://julius.aiturbopuffer - https://turbopuffer.comfal - https://fal.aiPrivy - https://www.privy.ioCognition - https://cognition.aiGemini - https://gemini.google.comFollow 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's Tuesday, October 21st, 2025. We are live from the TBPN Ultradome, the Temple of Technology, the Fortress of Finance. The capital of capital. There we go. It is going to be back. Massive news out of OpenAI. They launched their browser.

It had been rumored for weeks now, months now. The browser wars have been heating up. Perplexity has been in the game. Thought they were over. Dia browser. The browser company has since been acquired. since all of this was going down, OpenAI dropped a trailer announcing the browser, which is called Atlas.

By the way, the Atlassian browser company acquisition just closed today. Oh. Atlasian versus, so Atlassian owns a browser, and OpenAI's browser is called Atlas. They keep doing that. Wow. Remember they did that with Google IO? Oh, yeah. IEO.

IYO. Interesting. Taking shot. Well, I'd love to play the video from OpenAI announcing their browser, Atlas. Do we have that video? Let's play it. Here we go. I like the different sound cues.

This one. That sounds kind of like typing on an iPhone. I mean, it sounds exactly like. Is that what it sounds like? I think it's... Okay. It's funny. I like the sound cue in videos, but I turn it, I certainly turn the sound off on my actual phone,

so I don't actually hear it very regularly. So this is, you're on all trails, is that the website? So you're in Coursera and you're saying cheat on my homework. Wall Street Journal summarizes for me. Interestingly, the Wall Street Journal actually has AI summaries now in every article, just a couple bullet points. I don't go to them a lot, though. Interesting.

That looks like a Gmail. that is going to be a kind of a wild interaction. I feel like the war or the browser war is less significant than the war for like my actual email. Because every time I'm in Gmail, I'm getting all these different pop-ups from like Apple intelligence is saying like, do you want to rewrite this with Apple intelligence? And then Gemini's like, do you want to rewrite this with Gemini? And now open ass is going to be like, actually, we want to be the ones to rewrite your bullet points into paragraphs and vice versa. comments like, we will pay you $100 a month to use this. We will pay you to rewrite your bullet points.

So it does some online shopping. Tyler, were you successful in your prompt? Give me your review. You actually downloaded this thing? You're absolutely the right. Yeah. How would you describe Chattebti Atlas? Yeah, I mean, people are saying, you know, it's a new browser.

It's not just a browser. I think it's kind of a whole new way to really use the internet. Browse the web. To browse the web. To browse the web. But so the first thing I tried, I wanted to try to use the new agent mode. So you were successful. It's not a beta. You just were able to get it immediately. Yeah, you can download. So it's not like SORA where you needed like an invite code or anything.

Yeah, no. I think it's, right now it's only available to pro and plus users. And you have to log in with an open AI account? Yes. Okay. So it's just the same thing under the hood and maybe no different inference thing. We can get into that. But yeah, what was your experience? Yeah. So the first thing I tried was I just want to use the agent mode stuff. that's like, really what's new here. So I tried to buy a Unitary robot, and then it went...

So you open it up, new tab just gives you a prompt. You can type a URL or a prompt. You type a prompt. Yeah. And your prompt is by... I think I said... One Junitri, please. And the chat says it's Mac only.

Oh, interesting. How many of chat GPTs 800 million weekly actives you think are... It's not the weekly active, though. This is just for the paid users. And I bet a lot of the paid users are on Mac, disproportionately, for sure. And definitely pro users. Yeah. Name a pro user.

I don't know, but they're trying to go after Microsoft. You think they're going after the PC Master Race? The desktop, desktop. I mean, just a lot of people use PCs in the workplace. I don't know. Not that. Linux, yeah. You're trying to deny that people use PCs?

I mean, I wouldn't be surprised if the penetration, I mean, it's the same thing for like when you launch an app, you know, you always, like, SORA is iPhone only. And that's fine. iPhone Android is different than Mac PC for trying to build large-scale internet products. I don't know. I think it's pretty close. I think it's closer than you'd think. Anyway, Tyler, what else do you?

How successful were you? Yeah, so I think I said, go buy Unitary Robot. And then first thing it goes to is Amazon. Okay. It failed. Yeah, how did it fail? Yeah, so I think it was when it was trying to do customize. Like it loaded the page correctly,

but I was a little bit surprised why because people have said that it's been blocking a lot of the search. Yeah, but you would imagine that this is, since this is happening in a browser, the user agent is just like Chrome browser or Chromium or something like that.

And it looks and it feels like a normal user interaction. Yeah, it's puppeteered by AI. But in general, you're, like, if you're the web server, you're just seeing, oh, like Tyler, who sends in, you know, one Amazon get request to some web server.

page every once a while, just send in another one. This doesn't look suspicious. It's not like some deep research query where it's firing off like 50 queries really quickly. Yeah, that's true. Seems reasonable. Okay, so it loads. For some reason, for some reason, it didn't work. What do you mean it didn't work? Like, it's not available on Amazon? Or it said, so I think it was like during, you can press like customize and it just said error. Error. And then it went to a different site. Interesting. But then eventually, I mean, it went through the whole flow and got to the button where you do like confirm. But one cool thing they added was, uh, when you the agent, you can choose to either be logged in or logged out all your accounts.

Interesting. Yeah, it's a new browser, so you have to log into everything. You'd have to log into your Amazon, log into your Netflix or whatever. I think you can very easily port them over. Oh, from your previous Chrome. Oh, yeah, you can save all the cookies or something. Yeah. Interesting. But chat agrees with the majority, by the way.

Everyone says Enterprise runs on Windows and you're right about the PCs. I still disagree. But we'll see. You're right. Hey, just because I still didn't say you're right. I said chat thinks you're right. And, yeah, I disagree with you and chat now. Fight me.

Well, Carrey over. I think we can, like, the facts are the facts, and then we can disagree on whether or not it matters. Yeah. Okay. So does it matter? Will this be successful? Uh, so here's, here's what I believe. Yes.

I believe that ChatGPT, especially once it had some close to live search, was five to ten times better than Google search for a lot of searches. Yep. And my prediction is that Atlas, in its current form, might be 1.1 times better than Chrome. Yeah. And that will not be enough to get large-scale consumer adoption. Granted, I haven't used the product yet. Yep.

I need to get access to it after the show today and play around with it. Yeah. But it's very different creating a product that's 10 times better and competing in that market, competing in search, which was like the browser, basically a monopoly. Yep. And so, again, I'm not super bullish, but I think it's great that they're taking a big shot on goal, and it makes sense strategically. Well, if you're looking for a product that is 10 times,

is better. Go to ramp.com. Time is money save both. These are used corporate cards, bill payments accounting and a whole lot more all in one place. I agree with you. I think that like if I'm comparing like what the deep research experience of the GPT5 Pro experience is to a Google search, it's like you're searching for, you know, the story of like the history of the browser wars, let's say. And you might wind up on one web page that kind of put it together and then you might be on a Wikipedia page and you have a million tabs up and you're tabbing through them all. And GPT5 Pro just summarizes that all into a nice little dossier, and it's a great experience. I agree with you on the 5 to 10x better than the typical, like, open a million tabs.

Now, yeah, and historically, you could get what would have taken you navigating through a bunch of Reddit comments and kind of summarizing them in your head. You could get that in a quick block of text. Now, the question is on the browser, like how sticky is the actual browser? Because if browsers just aren't sticky at all, people will upgrade to something that's 10% better. But I have a feeling that they're pretty sticky. I feel like people feel like their bookmarks are locked up. All their logins are in one thing. But at the same time, I've been running this weird combo for years of Chrome on desktop,

Safari on mobile. And I feel like that's very, I guess it's somewhat common. Some people do it. But it doesn't really make sense because you'd think you'd want one unified browser across desktop and phone. And it's not like I'm not using

Mac products. I'm using a MacBook and an iPhone. And so you'd think I'd either use Safari on both or Chrome on both. But I've never been

a single browser. So I feel like getting me to install this and use it is not that difficult. I don't know. I feel like as long as it has most of the same features

and it's feature complete which I need pin tabs. I need to be able to hit Control T to open a new tab there's a few other features that are probably valuable but as long as it has those

I'd probably be down to try it and then if I tried it I'd probably stick around for a while but the question is like what's the activation energy for people because you need to convince them like hey let's cari had a good post earlier at 9 a.m. saying me my daily driver

in a peaceful corner of the internet safari power user Safari Power User. I wonder if I should switch to Safari on desktop. What do you use? Chrome desktop. I've gone back and forth from using Safari on mobile and Chrome on mobile. I think they're both fine. I just don't do a lot of web browsing on mobile. You don't? Like here or there, but like for... That's so funny. I feel like I'm always opening web pages on my phone. Yeah, opening them briefly, but oftentimes it's within another app. Yeah, and so that's why Safari is fine because if you open, especially if you're in the Safari web

you, like you open, if you open a link in X, and it's the Wall Street Journal, and you're logged in in Safari, that log in transfers, whereas if you're logged in Chrome, it doesn't transfer that I'm aware of. Or that was a big problem for a while. I do wonder, uh, the new liquid glass update to Safari is terrible. And I really don't like it. And I mean, liquid glass, we can all agree is just terrible. It's rough. Like the, uh, I've had my new phone. Yeah. For, a while now, and the only nice thing I have to say is that the camera is a little bit better, and everything else about the phone in totality, in my view, is worse. It feels cheap. It's getting dinged up constantly already. The software overall, every single time I'm a new place

in iOS. I'm like, oh, thank you. You made it worse. You made it different, and it's worse. Yeah. I mean, the fact that they went from, to open a new tab in Safari before Liquid Glass was just one click, I think. And now it went to two clicks, something like that. So every time I want to view the tabs, I have to click two buttons. And I'm like, this is just so frustrating. And I was using someone who had Google Chrome in Liquid Glass on a new iPhone. And the Google Chrome app on Liquid Glass still has the ability to just launch a new tab with one button, with one click. And I was like, this. is so refreshing. Maybe I should go back to this. But anyway, a whole bunch of news around Open AI. There was a massive long read. And first of all, let's say thank you to Sam Allman for constantly creating content. It really is, like the bull marketed and tech news. There's always something to talk about. There's always a Samma story. Well, today, Jim Kramer read the piece we're about to talk about. He said, Wall Street Journal's Open AI piece makes you realize Sam Altman must succeed, or he could be a real problem for an otherwise sterling industry.

Dot, dot, dot, dot. Yes. Well, OpenAI has been doing a stream. Let's hope they're using Restream.com. One live stream 30 plus destinations, multi-stream reach your audience, wherever they are. Let's look through the Wall Street Journal piece. There was one big scoop in here that I wanted to get to. I had a whole take on this.

My thesis, and we were sort of debating this, is that, Sam Altman is kind of becoming the preeminent deals guy of the modern tech era. He's done so many deals at such a huge scale for such a young company. He's a young founder, young CEO. He's only 40. And now, like, the deals are so big and they're coming so quickly that a lot of people are asking, like the timeline's wondering. People are nervous.

Is Sam just so good at deals that all the counterparties are actually making mistakes? by tying their fortunes to Open AI and Open AI's aggressive forecast. Like if Open AI doesn't deliver and Oracle does all the build out, but then Open AI doesn't have the revenue is Oracle in trouble. That's the narrative right now. And so we love to use the Fox and the Henhouse analogy around here. It's too funny to pass out. I could go out on a lemon say it might be our favorite analogy.

It's such a good one. We're big into animals here with the horse, the fox, the fox in the hen house. Yeah, that's our next sculpture. We have the horse. I need a henhouse, for sure, with a fox, inside, or looking, and I want that. But that is a pretty good analogy here. So, you know, if OpenAI ends up getting the Fox's share of value from deals with

Nvidia, AMD, Oracle, and SoftBank, like, I don't exactly feel bad for Jensen, Lisa Sue, Larry, and Mesa, because the primary job of a CEO is to defend the henhouse from Foxes. Like, that's your job if you're a CEO. So just saying, oh, Sam's a good deals guy, and he's, like, getting these people to do these crazy deals, like, that's not enough. Like, the other part, the counterparty needs to make good decision making here and not risk themselves. So the question is, like, why are these deals happening? I don't think Sam's gotten any foxier now that he's 40. He's going to be a silver fox.

But he's always been a great dealmaker, right? He's always been a great dealmaker. Back to the YC days, back to, you know, solve. logging jams with founders and VCs. There's so many, there's so many examples of this throughout his career. Even going back to his very first company where he got, he got looped, acquired when the company wasn't doing that well, was sort of one of the first aqua hires that turned out really well. He made out well financially out of that. But now everything has three, four, five extra zeros after it. And I think that the reason isn't just that he's become a better

dealmaker, it's that he actually has more leverage now. He has a lot more leverage. And so, When you have the breakout consumer product of a generational tech trend, you have a lot of leverage. Yes. And you've been saying this. And yeah, so I was saying to you off, off air, if you're running AMD or Nvidia or Oracle or any hyperscaler, you know, computing company and you have to go in front of shareholders and they're asking you, are we doing anything with Open AI, the company that's scaled to over a billion users? The thing that will be the next Google, the next Amazon, the next Microsoft. And if you have to go in front of them and say no, they're like, okay, what exactly do you do here? Yeah, why are you missing this? And so I think that that's a good framework, but what do all the hyperscalers have in common? They all have monopolies over whatever market they're in, whether that's search, whether that's online shopping, whether that's, you know, the enterprise software stack that Microsoft has been able to,

monopolize in many ways. And this is the teal monopoly thesis. And Sam Altman, you know, he's basically created a new aggregator. So ChatGPT has captured enough of the consumer market that they now control demand at a very high level. This is what Google's done. This is what Meta's done. And that affords them an incredible amount of leverage in every negotiation. And that's why meta has taken so much of the lion's share of the ad market and the DDC market is because they aggregate the demand. They aggregate all the users, all the eyeballs, and then they can point the value where they, where they need to, and so they can take a large cut. And Ben Thompson was actually road testing this theory that OpenAI could swap out the underlying model and still accrue

the vast majority of value. So hypothetically, you could have chatGPT, chat.com powered not by GPT5, but instead powered by Gemini or Claude, and still see positive user growth, monetization, because at the end of the day, most of the users aren't there for the model. They're there for the app, they're there for the ecosystem, they're there for the platform now. And so if OpenAI is potentially going to be successful in building monopoly of the consumer AI layer, what's the strategy for the supply chain? So Joel Spolsky in 2002 coined this phrase, commoditize your compliments. And so anything that complements your product, you want to be a commodity so that it can

bring more content onto the platform. This was the thesis behind meta open sourcing llama. If it's free to generate content, there will be more content on the platform, just like the Sony camera, you know, commoditize the video production, made more content for YouTube. And so that means that OpenAI needs to partner with multiple cloud partners, Microsoft Oracle, multiple data center builders. You've got Oracle, CoreWeave, Nscale, Crusoe, multiple GPU designers, Nvidia and AMD, multiple foundries, maybe. TSMC. Sam was saying TSM does not produce enough chips. Maybe Intel's coming into the picture. Samsung, there's a whole bunch of other options there. And so not every link in the supply chain can be fully commoditized, though,

because some of these, like, there are only so many GPU designers. And so if there's only two major players, AMD and Vindia, you need to balance them out so that they have similar margins and are in direct competition. Yeah, and the memory market historically was a commodity market, but the players like S.K. Heinex are now telling share, holders, like, we actually think that this new computing wave will make that no longer the case. Yeah, yeah. And so, so there's a little bit of this desire to create an anti-NVIDIA alliance right now. NVIDIA ramped full year revenue. In 2023, it was $27 billion. In 2024, $60 billion. And in 2025 is

$130 billion. So just a massive revenue ramp. But during that time, net profit margin went from 16% to 56%. Like insane profit growth. And so you have this company that's just printing cash. All of their partners are looking at them, whether they're Google with the CPU program, Amazon with Traneum,

Open AI, say AMT is pretty good. Sam's looking at that margin profile just being like Jensen, I'm so happy to be. Does it have to be 56%. Why can't it be 30%? That's what AWS makes. That's what Azure makes roughly. That's what GCP makes roughly.

everyone's doing 30% around here. You're doing 56% in your hen house. Yeah. The whole industry is losing money. And they're like, we're trying to find the one guy that's making money. Exactly. And they see Jensen.

She's absolutely printed. If only there were another plate that we could eat off of, and Jensen's just there with like the massive Thanksgiving dinner on his plate. And you're like, I'd like to eat off of that plate, actually. And so everyone's kind of incentivized to like work against the video. And that's kind of the evidence of the leverage that's happening right. now that was in this Wall Street Journal article by Berber Jin. And so the quote says,

as part of the deal, NVIDIA is also discussing, just discussing, guaranteeing some of the loans that Open AI plans to build, to take out, to build its own data centers. People familiar with the matter said, a move that could saddle the chip giant with billions of dollars in debt obligations if the startup can't pay for them. Papa Jensen's co-signing. Yeah, yeah, exactly. It's co-signing police. It's like, it's like co-signing a mortgage with your parents, basically. It's like, you know, I have 13 billion in revenue or whatever Open AI has, and they have 130 billion in revenue. It's high margin. We're losing money. They're making money. So let's put them on the loan docs and they'll back us up. And now, this can work out

great. If there's huge demand, it can be fine. But at the same time, it is a risk that otherwise, you'd probably just say, no, I'm good. I don't need to do that. Why would I sign for your loan? Well, the reason is because you have to stay in the game if you're NVIDIA. And so dual sourcing is nothing new. It's best practice, but we just haven't seen a push like this happens so fast before. Like exerting pressure deep into the supply chain is usually a hassle and something tech CEOs only do when they're backed against the wall. And single points of failures creep up really unexpectedly. I think about Apple in China. Like if you were in 2005 and your Apple, are you really thinking like how advanced, how far in the future would you have to be

thinking to be like, wow, I'm really indexed to China. I should start spinning up. India and Vietnam. Like that was not something that was top of mind for Steve Jobs and Tim Cook two decades ago. Now it seems obvious. Now it seems like why aren't you doing this? Why didn't you do this earlier? But, you know, but these things creep up on you. Open AI is just unique in that they're actually looking years out and saying, well, we want leverage at every single piece of the supply chain all the way down the stack right now. And we want to set up these deals so that we're there when it matters in 10 years, in five years, whenever. So we should get into the article a little bit because there's a couple things.

Yeah, what else do you want to read from here? One, allegedly, when Jensen had heard that Sam was considering buying TPUs, that is when he, that's another point of leverage. They had been basically Sam and Jensen, high level had been working on some type of deal, wasn't really going anywhere. Jensen hears that, that Sam was considering TPUs. He calls Sam, and that's when this $100 billion investment, obviously, it's structured and in tranches, but that's when it got announced. So it was in reaction to, it was in reaction to this interest in TPUs. Obviously, Jensen wants everybody to, you know, stay.

And I don't think that's a headfick. Like, I don't think that's like, oh, hypothetically, we could run our system on TPUs. Like, I think that they could, they could do it. Like it doesn't seem like the Kuta lock-in. Yeah. It just does not seem that crazy because we saw this with inference max from semi-analysis like GPT-OSS runs on MD on AMD chips right now very efficiently on a token per dollar basis. And so you're like, what does it take to get GPTOSS or the frontier model running on TPUs?

Like I don't know, a year? And so a billion dollars. And so you pass. Absolutely. So, so Sam is straying a little bit. He's interested in other options. Jensen says, whoa, whoa, whoa, okay, we can figure something out here. Figures out this $100 billion investment.

Yep. Two weeks later, Sam announces a deal with AMD. Yep. And this is, obviously Jensen would have been incredibly frustrated by this for a number of reasons. His reaction, very presidential, was, I saw the deal. It's imaginative. It's unique and surprising, considering they were so excited about their next generation product. I'm surprised that they would give away 10% of the company before they even

built it. Anyhow, it's clever, I guess. So that is a very presidential way of saying he's incredibly frustrated in my view. So imaginative, unique, surprising, I'm surprised. It's clever, I guess. And so anyway, I mean, look, like Sam is doing what he needs to do. Jensen is doing what he needs to do, but they're playing, you know, a game of high-stakes chess with the global economy, as far as I'm looking. Yeah, high-stakes henhouse control in the farm, on the barnyard. It really is a barnyard. Because the fox goes in the henhouse and then the piggies are at the trough, and the trough is on the barn. It's all barns, and we're, you know, we're just riding by on our stallions. The world is a farm. The world is a farm. This is a great analogy. We need a, we need a

We need to flesh out farm theory fully. Yes, on the whiteboard for sure. We need to have the full farming mapped out. Before we move on, let me tell you about Privy, wallet infrastructure for every bank. Privy makes it easy to build on crypto rail, securely spin up white label wallets, sign transactions and integrate on-chain infrastructure

all through one simple API. I have one last thing on the Wall Street Journal article. If we can pull it back up and scroll down, Berber Jin is a journalist who writes very fact-based, heavily sourced articles. And it's not an op-ed. It's not his hot takes.

But if you look at the images that they chose, you can really understand what's going on here. Because the picture of Jensen that they picked for this article is insane, in my opinion. It's like him looking through this blurred glass and he's like, and he's like kind of touching his temple, like stressed. It's just like a crazy, crazy image.

But I don't know. Yeah, he looks kind of like he's, like, wiping a tear away from his eye. Exactly, exactly. And, I mean, all the images in here, like, even the SoftBank Open AI one, they picked, like, the darkest image possible to show Sam and Mossa just, like, completely in silhouette. It's very ominous. Like, there's a lot of editorial stuff.

This line from Lisa Sue asking Sam, can I call you an AI icon? Yeah, that's a fun. Open AI has truly been at the center of the universe. she went on to tell the crowd everyone listens to what sam altman has to say uh which is which is true yeah they picked a much cooler picture for lisa than jensen interesting yeah yeah yeah Lisa looks very heroic shot from a low angle very highly lit very uh very brightly lit smiling you know looking authoritative with her uh her Rolex of course but also her uh her microphone there uh she looks great and Jensen is looking a little bit stressed. But who knows, these things can flip back and

forth on the turn of a dime. But we are clearly in the deals guy era. Let's go to this Jeremy Gaffan post. But first, let me tell you about cognition. They're the makers of Devin, the AI software engineer. Crush your backlog with your personal AI engineering team. So Jeremy Gaffon, we've highlighted this before, but it's more relevant than ever. Jeremy says, we're firmly in the deals guy era, the deal guy era. You can raise venture to make deals. You can do foreign policy via deals, build frontier tech via deals. We're trading off stability for dynamism. It's unclear if it's long-term optimal, but it's certainly more fun. I couldn't agree more. And Wilmanitis quotes it and says, the modern deal guy has no permanent capital, no permanent loyalty, and no permanent location.

The modern deal guy is playing a repeated game. He doesn't care who he business. off. There's going to be another hand. The modern deal guy is much more a broker than a principal. He has an ecosystem around him that he identifies as his guys. Yeah, it used to be, used to just be able to be good at fundraising and that made you a good deals guy in tech. So yeah, I mean, it's interesting because like how much can you really learn from, from Sam? Because obviously it's a, like he is very good at deals, but he also wound up, you know, building an aggregator, building an incredibly dominant consumer product that gave him a lot of chips on the table and then he's very effective at playing the game on the table. But it would just be a very

different story if he was third in the market. And he was like, yeah, I got 8% I got 8% market share. And my apps are at number 25 instead of number one and number two. Anyway. So I posted right before we got on the show. I posted Atlas isn't just a web browser. It's an entirely new way to browse the web. How you do? And a number of people don't get the joke. Oh, no. And are saying, and are like quoting it and saying like, this was written by a chat GPT. Yeah, yeah, yeah. That's the, that's the whole joke. Someone else says, that's exactly what a browser does. I do have an interesting update on this. So chat GPT is famous for using m-dashes. You can actually go into your custom instructions and tell it to never use m-dash.

Dashes, remove all M dashes, just use commas or periods, if you don't like M dashes. It doesn't really work, but I think it, I think it might steer it a little bit in the right direction. The other thing is that we've been identifying that whole, it's not this, it's that, not a blank, but a blank syntax. I was wondering, like, what is that syntax? Apparently it's called antithetical parallelism or contrastive construction or correlative conjunction pairs.

And so that's what you want to avoid. because chat GPT has truly beaten that dead horse completely. And if you use antithetical parallelism, even just accidentally, everyone's going to be like, you use chat GPT. So you just have to remove antithetical parallelism from your vocabulary from your writing style, which is unfortunate,

but sometimes things get killed off. And so the meta of online writing has moved on. And so just don't use those. Because no matter how authentic your writing is, people will just assume that you use chat chpT. Will DePue says, enjoy the vague posting while at last, my friend. Soon all the AGI companies go public

and ruin and I's shit posts are also called security of violations. Martin Screlli says jail is not so bad. That's incredible. I hadn't thought about that. Yeah, apparently. Yeah, I mean, it's funny because opening eyes, somebody at Open AI legal is going to probably send this to Will,

his post to him and be like, hey, look, A lot of people are going to read into this, that I'm going to go public soon. I mean, I don't know. Something about the culture there is pretty awesome because they still haven't made Will delete the infinite jest post, which is just incredible. Because, like, I mean, posting that while SOAR is on the roadmap is one thing. You might just be like, hey, well, you might want to delete that. Like, we're going to do the infinite chess thing. But leaving it up is extremely bold.

So I like that from a corporate comms perspective. I think that's actually a bull case. Before we move on, let me tell you about figma.com. Think bigger, build faster. Figma helps design and development teams build great products together. Our next post comes from Jacob Rintamaki. This is genuine question. For VC firms invested in both frontier model labs

and coding application layer companies, how do you handle the discrepancy between the two? Since coding is number one on the roadmap of the labs versus other products which are more adjacent. What do you think? He's asking John Ludig, who did not reply, for how Founders Fund thinks about cognition plus Open AI, and then Thrive is also in Open AI and Cursor, right? And so there are a number of firms that are in the foundation model, which actively wants

to be encoding and then also the application layer. I mean, I think it's – I think it's – if you're a company, I don't think there's huge downside here. Like VCs tend to give immense support. for their winners. Yep. And I haven't, I haven't historically seen a lot of, you know, ultimately, I can see some potential upside, right, in helping sort of like manage some of these relationships, right?

And back channel, things like that. But not a whole, not a whole lot of downside. I think something similar might have happened with Palantir and Databricks, which had some same investors, actually. But there was this thesis of like, well, if Databricks is the database layer and they allow you to do AI on top of that, like what is Palantir's role? And they kind of wound up partnering. And Databricks does do some for deploy implementations. They do build some software, but Palantir's been much more focused on actual go into an organization, build a piece of enterprise software effectively that uses Palantir systems to speed things up, but then leave behind.

basically like an enterprise software system that lives within the organization, whereas most of the database companies are not really thinking about it that way. So I think that there might be more of a bifurcation between what the what the, what the, what the application, the coding application layer companies are doing, actually solving business problems, building software that then stays there and they act almost like, more like new McKinsey than like new coding application. And so they're kind of squeezing the market from both sides. And I would see Open AI as disruptive to the, I don't even know if it's like the AWSs of the world or something. But it's more like at the tool layer, swap it out whenever you want.

And at this side, you're more like partnering with an organization that's helping you. I think as venture investors want to become, want to invest in companies that become so successful that they launch products that ultimately compete in a bunch of different adjacent categories and ultimately compete with. a range of their portfolio companies like that is ultimately what success looks like yeah and i do think um yeah i mean something something i've been thinking about a lot is this dynamic between anthropic where all of their revenue comes from having the best coding model yeah which is very different than having a lot of revenue because you have a hit consumer product because you have to keep training the next model whereas otherwise your application layer companies that are using the API let's say they're a coding-based application company, they'll just switch to the next best model,

right? It's like very easy to switch out. And so I don't think the kind of competitive overlap between investing in, for example, like Anthropic and investing in, I just think it's like totally fair game for VCs to back both out of the same fund. Well, before we move on, let me tell you about Vanta, automate compliance, manage risk, improve trust. Continuously, Vanta's trust management platform takes the manual work out of your security and compliance process and replaces it with continuous automation. We were talking about VCs. We have a post from a VC here.

Mark and Driesen. He says, Pets.com is the go-to slur of the dot-com era. Let's see. Pets.com burned $182 million of total investor capital before going bust. Today, just U.S. online pet goods sales is $38 billion a year, $70 billion total market cap,

including portions of Amazon and Walmart. Lesson. Should have invested more in Pets.com. I mean, that's the takeaway here. Like, this was, in my view, that's my takeaway is, like, makes sense to take a really big swing at what became a $38 billion market. Yeah. Like, you know, I have no idea. I wonder if they were set up for success.

I mean, when did Chewy start? We had Ryan Cohen on from GameStop yesterday. If you haven't gone to listen to that, please give it a listen. 2011 2011 so and pets.com is probably over 10 years earlier yeah a lot of these ideas they just took they just took a decade they took the internet actually getting built they took stripe they took online payments getting built the friction was just so crazy that you know what are you underwriting if it's a hundred I mean how much do you think they built they burned in their last year at pets dot com probably 150 million of that was burned in the final year maybe 100 million of that and so you're not just saying 182 million and then you could have stuck around for an extra decade. It's like probably be spending $100 million a year for 10 years to get to a place where you're ready to actually ramp the business. Yeah, there were a bunch of examples of that.

MP3.com was basically Spotify. I didn't know this, but Amazon actually bought a 54% stake in Pets.com. No way. Early 99. 54%. Wow. That's a lot. I wonder how much they paid.

It was probably worth it. I wonder if they got some assets during bankruptcy, some customer lists. I wonder what the final accounting on the Pets.com. Well, Pets.com is now owned by Petsmart, which also owns Chewy. Oh, wait, they bought Chewy? I thought Chewy was public. I think they... Oh, they did like a take private or something?

I thought Chewy was one of the companies that got out and was doing well in the public markets. Yeah, but it was acquired. It was acquired, but maybe taken public later. Interesting. Oh, weird. Huh. Well, it's a 15.29 billion. dollar company on public.com. Investing for those that take it seriously. We got multi-asset

investing industry-leading yields and they're trusted by millions. AWS was down yesterday. We were fighting for our lives on this stream. We thank you for sticking it out with us. We had to do some in-person interviews, some phone interviews, but we had a fun time and we kept everything up. There's a little bit of a post-mortem. U.S. East is down from Syriac and it's what exactly is this image from? Is this like Rome falling? Is this the fall of Rome? This is very blackpilling. But services have been largely restored. The outage disrupted services from retailers to airline, social media apps, and financial services companies. Do we know what caused it yet? Wasn't it database migration or something? Some data, oh no, DNS configuration, I think,

was the root, something like that. The outage began around 3 a.m. Eastern time when Amazon made a technical update to a widely used AWS database service, DynamoDB, the update, which included an incorrect domain name service or DNS information for DynamoDB, kicked the database offline in Amazon's critically important Northern Virginia data centers with Dynamo BDB out in the region. Other AWS services began failing too. In total, 113AWS services were affected by the outage, 32 of which had been restored by 1030 a.m.

ET on Monday, not a bunch of stuff we use, not a bunch of vibe coding that Tyler had done. Yeah, all of the internal software that Tyler's built for the show fell down. It was down. Yeah. Really exposed to insane dependency. Yeah.

So we're taking it on-prem. Yeah, we've got to go on-prem for sure. This was my take yesterday. We're going back to sticks and stones. We're going back to pen and paper, baby. The computer revolution is over. AI is dead. We're going back to typewriters.

Did you know the story of James Hamilton? No. Who's that? This is this account, Tuxedo Sam. Okay, break this down for me. Well, you pull that up. I'll tell you about graphite, code review for the age of AI. Graphite helps teams on GitHub chip higher quality software faster.

If you're creating fault tolerance in your organization, you probably need graphite to review your pull requests. So Tuxedo Sam says, meet James Hamilton. He's Amazon's literal, very top engineer, the brain behind all the data centers. He lives in a custom yacht and does not give an F about any RTO. Wow. And then apparently he was behind, I don't know. Is this real?

There's a community note on this. So it claims that his yacht made landfall, and this is like in the AWS update. Fake news. But it was digitally altered. It was fake news. Moving on. We got some massive news from Brian Armstrong, who's coming on the stream in just maybe half an hour or an hour. This was making waves yesterday after we got off the show.

a hot topic. There is a podcast called Up Only that retired at one point. Yes. So I listened to this during the last crypto boom in like 2021, 2021, 2022 whenever he was going. And I found it hilarious. Kobe was very, very funny. And it was just a very interesting nuanced take. They were very much like self-aware of the hype, but then also like giving, you know, some advice, but not direct financial advice. I thought it was just a great show. I think a lot of people loved it. And they put up an NFT and it said if you if anyone buys this NFT for 25 million dollars we will produce another season of up only and so the holder of this this is the uh the image here uh the holder of this admission ticket can compel Kobe and ledger status into performing like monkeys

eight episodes of up only TV it does not convey any sponsorship right so this is not a sponsorship deal and we are allowed to call you idiots for buying it or ignore you completely with zero mentions of your existence during our eight episode season. We get to pick the guests, but if we like you, then we might ask you for some suggestions. And Brian Armstrong chimes in saying, the rumors are true. We bought the NFT up only TV is coming back. $25 million. Yes.

And of course. And so Kobe said, sir, do you fire whoever approved this? And Brian says, don't spend it all at once. And then, of course, today, Coinbase and Kobe announced that Coinbase is acquired. ECHO. Yes. Echo is an angelist-like platform for crypto, so they help groups of people invest in different projects. They paid $375 million, and so you can think of this as effectively a $400 million acquisition. But yeah, I thought it was wild. The announcement that they paid $25 million for eight podcast episodes was circulating group chats yesterday.

And didn't fully make sense. It felt like a really big price to pay for goodwill, right? Obviously, people wanted it to come back. It makes a lot. And then the pushback was like, you know, I saw a post somebody saying, imagine you're a Coinbase employee and you just got passed up for, you know, a promotion or your bonus wasn't as good as you were hoping. And then you see that the management team spent $25 million on an FT.

Obviously, it makes a lot more sense. And we have Brian Armstrong coming on to, talk about the deal in about an hour. We do. Quickly, let me check the polymarket on what price will Bitcoin hit in 2025. The chance that it hits $1 million is at 1%. Can you imagine if that happened? Let me be wild.

Consensus seems to be that it might hit 130, but it might trade down to 90. We will see. And there's a lot of activity there. Atlas would be a beautiful name for a baby browser. Yes. Atlas said, please, for the love of God, ask Chesky what his one rep max bench press is. This got 1.3,000 likes. And that will be our opening question.

That'll be our opening question. What is your one rep max? But the coin base thing was a real roller coaster because, yeah, it seemed like paying $3 million for a single episode, 25 for 8, that seems crazy. But I came around and I wind up loving it because if Coinbase, Coinbase is a huge company, $88 billion. dollar market cap. And I feel like in crypto, there's a lot of companies that the general world is just not that aware of. And a $400 million acquisition, that's incredible. But at the same time, there's a lot of big numbers getting thrown around. There's companies that are raising $100 million seed rounds. All Sam Altman's out there doing $100 billion deals. And so how do you actually

break through with the news of a $400 million acquisition if you just want to tell the broad community like we exist and we did this? Well, one way is to structure it such that a beloved founder podcast host is coming back and you're doing this funny thing in this NFT and even if it's all just structured in a normal acquisition and it's all part of the headline number and a license as yet best crypto podcast by far yeah I agree agrees I agree

and so I yeah I just I think that it's such a creative way to get a little bit more attention on an acquisition that would have been cool but it wouldn't have been like a it wouldn't have had a narrative to it where people were like, this is crazy. Oh, it actually all makes sense now. So it was a really good mission impossible rip off the mask. Coinbase isn't actually crazy. They're not actually paying $25 million just for a podcast there. And when I think about a founder coming into Coinbase,

you know, the typical thing is like resting, investing, like bringing back a podcast, letting them do eight episodes. That seems like a really, a really fun way to kind of welcome themselves to the Coinbase ecosystem. They can, you know, do a lot of cool stuff there. So I, T.J. Parker was highlighting one of the most iconic quotes from a tech CEO this century from Chesky said I was basically going room to room

just pouring out this stream of consciousness manifesto like Jack Kerouac writing on the road I basically said we're not just a vacation app we're going to MDash we're going to be a platform a community

what's funny is like I think of Airbnb as a community from like day one I think that it's actually like started as a community and then like maybe it became more of a platform but what does community what does community mean now uh community means like it's a place to meet people and like in the early days like in 2012 2013 when i was using Airbnb like i met my co-founders on Airbnb i met in yC because there was one listing for an Airbnb that was listed there was like we're going through yC and i was like i want to live with people that are going through yC

because they'll be on the same cadence of like staying up all night working basically and not not not going out whereas if you if you live with somebody who's like making six figures at google they're going to be like, let's go to the park on the weekend. Yeah, my pushback would be that maybe the last 10 times I've used Airbnb. It was to book a vacation rental. Yeah, yeah. And I didn't necessarily want to meet the host. That's what I mean about it.

I know some people are excited. But that being said, like my lovely aunt, she likes to book like a studio on a house when she's traveling in Europe on a bigger property and actually meet people. Also, once I was traveling and I was staying in an Airbnb in New York, and it was very clear that the owner of the house, like, wanted to meet me and wanted to, like, I wanted to, like, make friends. And in that, in that context, I was like, I don't, I don't, I don't know. Like, I'm here on a business trip now. I kind of don't want to make a new friend. You seem cool, but, like, I'm good. And so, like, the community thing is a little bit tricky

to massage. When it works, it can be amazing. Like, I'm literally still friends. with people that I met on Airbnb. Like, it very much was a community. But yes, over time, these things, these things evolved. Yeah. But, I mean, this was the start of the Airbnb 2.0 era, the question of, can you book more than just vacation homes on Airbnb? Is it a thing where you can go and get surf lessons or a dog walker?

And then there's all these questions about disintermediation. Yeah, haircut. There's a whole bunch of different things about Airbnb being like the IRL app. Obviously, Yelp has been kind of like sequestered and relegated. in the Google flow, Airbnb still has a big audience, but Ben Thompson's critique was always well, people just don't open the Airbnb app all that much. So most people, like, they don't really have DAUs. They have yearly active users, people that open it once a year and think, oh, I want to go to the mountains, let me book a vacation. Oh, I want to go to the beach,

let me book a beach house. It's not like, it's not like an app where people are opening it every day and saying, oh, like, I have some free time. Let me find an option on Airbnb. So this was like it's a big second act. And so I'm excited to talk to Brian Chesky about it. I'm also excited to tell you about Julius.a. What analysis do you want to run chat with your data and get expert level insights in seconds? Sorry, Jordy Pace.

Nathan Lambert shared a quote from Chesky said, we're relying a lot on Alibaba's Quinn model. It's very good. It's also fast and cheap. We use OpenAI's latest models, but we typically don't use them that much in production because they're faster and cheaper models. So we're going to ask them.

more about open source. Yeah. Well, there's also news in Anthropic world. Apparently, Anthropics spent $2.66 billion on Amazon Web Services in the first three quarters of 2025, around 100% of their estimated revenue. I thought their estimated revenue is way higher than that for the first three quarters. That seems off to me. I thought they were at a much.

They're scaling just so rapidly. I thought they were at like a $10 billion run rate or something. Do you know roughly where... I think they're going to get there by the end of the year. I thought they were going to be like around 12, but it was going to be next year. And is that ARR or like projected full year next year? That's like the projected next year. Oh, weird.

I felt like Anthropic was doing well north of 2.66 in the first nine months of... I had just heard that they had got at some point in the last six months, they had got to a $4 billion run rate. Yeah. And they were pacing to get... Yeah. To north of 10th. Well, I mean, obviously this is a referendum on inference costs. If inference costs fall and usage, model usage is still growing, the business looks great.

If inference gets more expensive for some reason, it's a dangerous place to be. But interesting to see new data points hit the timeline. So thank you. Yeah. And something, do you know this might be a dumb question, but is anthropological? How much are they leaning on AWS for training? So they use Traneum, but then they're also using Invidia. And basically every foundation model lab is using a ton of different, like, hyperscalers.

Like they have to go wherever the... And so this article is implying that Anthropic has basically zero percent margins, but it's possible that some of, like, they're paying to serve and run the models for customers, for API clients, but they're... also training. Sure, sure, sure. Yeah. So if, if two billion of this ABS bill was training Claude Six, like, and then that's going to make 20 billion in France, that's a wildly different thing. But, I mean, truly, like, no one is saying like, oh, bombshell, I thought these foundation model labs were crazy profitable. It's like, no. We know that they all have terrible. Jensen's the only one

make it money. Right now. That's not the question. The question is like, will they turn it around on what timeline. Will they turn it around? Will they use fall? Will they use the generative media platform for developers? The world's best generative image and video and audio models all in one place develop and fine-tuned models with serverless GPUs and on-demand clusters? Patrick Collison and Jeff over at Stripe, as well as Haley on their team, announced that you can now fundraise in Stripe Atlas. It's very cool. Stripe Atlas generates a significant amount. I forget the exact percentage but a meaningful, I think, double-digit percentage of all C-Corps created or created

with Strait Battlist. Now you can fundraise in the product. You can generate, send, sign, and track safes in a few clicks, according to Jeff. So very cool feature, you know, all the founders out there now, you're pretty much, oftentimes, by the time you're setting up the C-Corp, you're, like, actively trying to take money so it makes sense to.

Extremely Y-C-coded. Like, Stripe, one of the earliest YC companies, the safe came out of YC, and they're just like building more and more infrastructure for YC companies other than scales and taking a really long view because I'm sure some founder out there is going to raise a bunch of safes

and then wind up building a billion dollar company and doing a lot of paint money. I believe it's already happened multiple times. Oh wait, like the top performing Stripe Atlas company is like a banger? Oh, I wouldn't be surprised. They've made so many. That's true. It's been around for a while right now.

And yeah, I built this product at Party Round and it's very useful. It's not a great business, but it makes sense to, you know, tie it into the, to the Stripe ecosystem. Yeah, yeah. Do you think they're going to give this away for free? Is this all just, like, onboarding into the Stripe ecosystem, basically? Because then you already have your Stripe accounts set up.

I mean, they basically, Stripe Atlas is basically free. Yeah. Like, I think it's $3.99 to create a company. $3.99. Not $3.99. So, yeah, I would assume this is free. yeah that's pretty cheap which is great that's cool yeah they probably need to put some sort of value there just as a gate so people aren't just like spamming a sea corpse out if it was free

you just be like uh yeah codex set up 1,000 C corpse for me yeah uh that could get very very odd um well let me tell you about turbopuffer search every byte serverless vector in full tech search built from first principles and object storage fast 10x cheaper and extremely scalable Samo Berja, who we should have on the show at some time. At some point, I've had some good chats with him. He says, the world is changed, subtle and obvious. For the first time in living memory, the scope of live player action expands. We shall see a new Napoleonic era, both liberating and terrible, with an ending that is yet to be written.

Are you prepared? He has such a way with words. Do you know, Samo? Yeah, I mean, this is a great vague post. He should go work out opening eyes. he might be talking about opening eye he might be talking about the US government who knows

but he is of course yeah there's the framing of thinking of tech companies as nations right like I was talking to I was talking to a buddy over the weekend friend of the show

and we were talking about Andy Jassy and how a lot of people are pissed off that Andy Jassy for a number of reasons primarily kind of like in some ways like not being on it with it. No, no, no, not AWS. This is pre-AWS going offline,

but just kind of like not like fully missing AI, but not being like in the game as much as people would like. And he was just saying like, Andy Jasson, Jesse may as well be like a prime minister, right? Even if you don't like him, like he's still in office. Oh, totally, totally. And effectively as an unlimited term.

And so if you start thinking of Open AI, in the context of like a nation state and the nation state is saying like we're going to need trillions of dollars we're going to need a huge amount of energy and yes it's going to be distributed all over it's not that crazy for uh you know a country to be saying like we need to spend hundreds of billions of dollars on yeah on it's like a you know digital nation state i always have this question about it it still feels like the u.s government is at the top of the stack and the tech companies answer to the U.S. government, but I do wonder if there's some element of flipping that will happen at some point or has already happened. Like, did you know that Walmart spends more money than

the United Nations? Isn't that remarkable? I mean, that sounds like it makes sense, but doesn't the United Nations just kind of like host some conferences? No, no, no, they have some no, they have like UN peacekeeping troops. They have their forward deployed peacekeepers. They do a lot of stuff. It's the United Nations. They have massive buildings and like, you know, operations all over the world. Like, health developments, all sorts of stuff. It's not easy to prop up the day. It is the closest thing I think that we have to like a global government. Like it's who you answer to at the highest level potentially. I mean, obviously the U.S. is like much, much bigger than the U.N. And so we have this kind of flipped model. But anyway, we have our first guest of the show.

we have Palmer lucky in the restream waiting room. Let's bring him into the TBPN Ultram. Palmer, how are you doing? Welcome to the show. I'm here. He's here. With the power of technology, the magic. How are you doing?

What's going on? Doing really well, although the thing I've been complaining about lately is I was recently on Joe Rogan. Yes. And what you don't understand when you go on Joe Rogan is that it's like calling in a distributed denial of service attack on all your communications because your email, your voicemail, text messages, your Facebook messenger, your ex-D-Ms, everything becomes useless because you have so much incoming that even the important things, like Palmer, you need to go to your dentist appointment right now. Flooded by, bro, so sick on Rogan. How many float tank operators have reached out

said, we got to get you in. Let me think about this for a second. I haven't even caught up with everything, but at least three. Okay. Have you actually gone in a float tank? I mean, hearing that, hearing that the beginning of the interview and, and realizing that, that, uh, this guy you're listening to wants to do a float tank, but hasn't yet. And you're like, I've been waiting for this moment, my entire life. It's, it's funny too, because in, in talking about float tanks, we, we, Joe and I took a,

we took a break during the show. And review when we took that break, we actually went to go look at his float tank. Okay. And it was so funny because, you're right. I'm like one of the only people who is going on the show, knowing all about float tanks and the principle and the mechanism and the theory and the history, yet I've never actually managed to get into one. So it's a, it's a rare combination.

I think most people who haven't used float tanks don't really know much about them. Or care. Yeah. I've actually looked a lot into float tanks even beyond what we talked about on Rogan, going back to like my initial kind of push into this was in VR where I got into thinking about how do you how do you do like sensory management how do you make how do you forget the senses that are at conflict with the virtual reality you want to present flow tank is interesting but then also you know it's a sci-fi staple is to fill your lungs up with some kind of oxygen

bearing fluid and then go in your you know full fluid immersion pod so that you can achieve extremely high G forces during rapid acceleration. And what I've always wanted to do is build a dragster, like build a car that can accelerate so fast that it would kill somebody if they weren't in a full fluid immersion G-pod. And I think that if you could do that, it would be some kind of truly novel motorsports achievement where for the first time in any motorsport, the limit would truly be the ability of the person to survive it rather than the power of the machine that is involved. Wouldn't that be so cool, like, oh, don't floor it unless you've got your lungs full or it will kill you. Yeah, they talk about

supercars that don't have traction control being, you know, death machines, right? But this is the next level. But, you know, supercars that are accelerating over 1G, like that's crazy. I want to do an inverted fan car, basically a vacuum car that is accelerating at 80 or 90 Gs. Would you have to put like rockets on the back to or explosives or something? Like, how do you actually, how do you max it out? So my general opinion on these things is that there's an,

I'll know it when I see it element. If you're using rockets, you're not really a car. Look, look, I'm a huge fan. Like, the NHR, was the NHRA, right? I forget, whatever the sanctioning body was in the United States for drag races,

they allowed rocket dragsters up until I think the late 1980s. There's a great video of a dragster called Vanishing Point. And it was a rocket power. dragster that was the last one before they banned them. It was doing like 400 miles per hour in the trap. And its final run, there's a video on YouTube.

I'll have to send it to you guys. Although if you look up Vanishing Point Rocket Dragster on YouTube, you'll find it. Maybe you guys can cut it into the video later for people watching this, not live. But its final run, they ran in it true full throttle, went faster than everyone, and the camera pans up, and it blew out every single window in the control tower when it went.

And the rumor is that it went so fast, so fast and so hard that the pilot passed out during the acceleration and the parachute was actually pulled by a timer. I don't know if that's true, but it's a great story. So anyway, the point is rocket dragsters don't count. You have to do it with wheels. I'll know it when I see it. If it's rockets, it's not a car.

And there was a guy in the, I think the Air Force who set the record for most G's sustained by a person. And he used a rocket sled to do that. Basically, it was a rocket sled that accelerated and then very rapidly decelerated. And they couldn't, he thought it would be unethical to have anybody else volunteer. So it was a pretty senior Air Force researcher who did the test himself. And I think he like blew out all of his, all the veins in his eyes and his sinuses and he's bleeding from every hole on his head. But he survived and recovered.

And he proved that a human can survive over 50 Gs of relatively sustained force. 50 Gs. 50 G's over 50 Gs Wow But you're gonna have a very bad That's leadership That's that's leadership That's true leadership

If the float tank's gonna get added Potentially to your routine What other biohacks are you using Or a fan of? Or what else have you tried In sort of like the performance optimization Being on a mission I feel like being on the mission

Being on mission is an ultimate biohack Yeah I mean it really is I mean I've always been very straight edge right so no alcohol no caffeine no nicotine no drugs nothing i've recently started drinking since having a child and you know if we can get into that or not yeah but um i i i'm very much high on life i don't really want to use like mountain do have caffeine in it so it does and i will but like i generally will avoid mountain dew for that reason at least as a dependency

now sure i go to taco bell i'm getting that baha blast of course uh and now and now that I've had a kid and I drink, I can go to the Taco Bell canteena, of which there's only a hand. Are you familiar with a Taco Bell canteen? I'm not. No. I've, I've, I've, it's never been. It's a New York is there's one in SF, too? I think there's one in New York City. I don't think SF. As if nobody builds anything in SF. But there's that Taco Bell right on the beach in Pacifica. You know what I'm talking about? The Congo Cantina is this concept where it's like Taco Bell, but also they serve alcohol. So it's like a bar and a Taco Bell.

And there's one less than five minutes from my house in Newport Beach. And so I can now go get Baja blasted on my on my Baja blast, you know, wait, but I have to ask, what about fatherhood made you start? You have kids? Yeah, so we both have kids.

We actually pass the Palmer test. We have five between us. Well, then you should understand. Yes, I do. You should understand. Yeah. No, I understand it a little bit. But part of it's like, like alcohol for me,

I sleep terribly. Kids are also, you know, they make, they're very, oh, I see. No, alcohol knocks helps, it's different for everybody. It knocks me, it knocks me out. Oh, that's amazing. Yeah, maybe because I don't have a tolerance to it. But you asked about hacks. I've got one that I've been pondering that maybe we could talk about. Yeah, please. I'm, I'm really afraid that nicotine might be really, really good. You know, that you've probably seen this theory, right? Like, that like basically America smoked its way to being the dominant hyperpower. It kept people focused. It kept people fit.

It's an appetite suppressant. There's this really interesting health tradeoff theory that I'm not saying I buy into it fully yet. So for people who are watching and shouting and screaming, I don't buy into it fully yet. But I'm becoming more and more convinced that the health benefits of not smoking have not been properly traded against the health problems caused by the resulting eating, not just in terms of appetite suppressant, but also just people filling cravings and filling the need for ritual, ritualistic. Well, I would tell you out of experience with other things that are worse for you. I think the crazy version of this is we'd all be better off with lung cancer eventually, but fit until then. And it could be that smoking gets you

there. So I don't know, I'm trying to figure this one out. But nicotine is near the top of my list of potential biohacks. Sure. The other thing that it feels real is nicotine makes boring things. pretty enjoyable. And it turns out that to do anything significant in life, like, it's oftentimes very exciting early. Let's say you're working on a new product at Anderall. It's very exciting. You can make a 3D render, you know, internally, not for marketing materials. I know you guys don't do that. No render policy. No renders. But let's see you make a render internally, you're like, this is really exciting. And then it gets into the mud and you're like, okay, now we have to build this thing. And you're in the trenches of product development. And you get through many,

many, many, many boring hour of struggle. Yeah. Well, I'll tell you a lot of the people in the trenches, they are smoking. Yeah. The literal, the literal trenches also going back through war. Like, they were the, that was how people used to be in rations, of course. Well, I was going to bring that up. Yeah.

They didn't get rid of the, they didn't get rid of the cigarettes in MREs until pretty recently. I don't know what date it was, but it was not that long ago. Yeah. So that's the, and of course, there's other ways to have nicotine without how. having to have the health impact of actually smoking a tarry substance. And so that's where it becomes interesting. Like,

you probably couldn't convince me that smoking is literally better than, you know, the food. But it's like, you know, is, is, is vaping worse than being fat? I don't know.

I struggle, I struggle based on the evidence I've seen. Yeah. Yeah. Yeah. That's wild. Do you play video games before bed? You said that the alcohol helps you fall asleep.

But do you ever get locked in and you're like, or playing video games can't fall asleep? because of that? You know, I used to play games all night long. I mean, there was a time where I was spending maybe 14 hours a day on the computer, if I could. Same. You know, like, that's you, that's you.

Yeah. It's amazing. Wonderful. The best times. I love them. I want to go back. Gaming was it was a good chunk of that. But also, you know, running online communities and other things.

But the problem that I have now is I'm, the types of games I really like, especially multiplayer games. Sure. You kind of have to be on your game. And if you play late at night when you're all wrecked, you're not even competitive enough for it to be fun. And I'm not saying I need to win or I hate it. You know, I don't hate skill-based matchmaking that much. Yeah, yeah.

But you want to know that you're playing to at least the upper limit of your own potential. Yeah, yeah. And I find, so that that's been the struggle as I've gotten older. And I know, I know 33 doesn't sound that old. No. But there's a lot, there's a lot of things that are easier when you're 23 than when you are 33. And like, you're not supposed to talk. talk about that, particularly as an executive of a company in California. Hi, Department of

Justice. You're not supposed to acknowledge that perhaps it's possible, I'm not saying there are, it's possible that different age ranges have different strengths and weaknesses. Perhaps, possibly. But certainly nobody should ever make a hiring decision on that basis. That's right. That's right. Yeah, I imagine in some ways being probably easier, parenting could be easier for people in their early 20s, right, than their early 30s, just by... Oh, forget, what are you talking about? 20s? Look at this mainstream

NPC. No, no, no. Kids should be having kids when they're in their teens. That's when they're supposed to have them. You could argue that maybe there's a reason to stretch it out a little bit, but if we're just talking about physical ability

and depth of well of energy, you know, let's not be politically correct. Let's just admit you're supposed to be having kids to your 16, 17, 18, and be done by the time in your 20s so that you can have your kids working on the farm by the time you're in your 40s. I mean, I regret not having kids, even at the age of 33, I regret not having them earlier

because I'm like, geez, this would have been so much easier when I was younger. I've been with my wife since we were 15, though. So it's a lot easier for me. You know, would be like, oh, but Palmer, how do you know it's the right person? I'm like, geez, we should have just obviously had kids when we were 16.

It would have worked out just fine. Yeah, yeah, totally. the whole world, you feel like when you're younger, everything's as complicated as L-O-B, and it just gets more complicated every year and more busy every year. That's right. Take us through Mod Retro. Well, this gets also to like the startup thing I say all the time, and I'll take this this moment to push it, especially for anyone young who's listening, people think that

starting a company or taking a break from school is this very high-risk move when you're young. They say, oh, how do you find the bravery to do that? What I try to push on people is it will never get better. When you are 18 or 19, you have no family, you have no real job, you don't have a career yet per se, that's the best time to start a company. You're not giving anything up. All you have to lose is a bit of time. And all you need to do is better than you would have done otherwise on your resume. Like running a startup and failing it is probably going to look better on your resume than whatever you are going to be doing part time in school as a late teenager or early 20s. And so, yeah, the best time to start a company is when you're young, because you don't need any bravery to do it.

The people who start it later, where they have a family and a mortgage and... Yeah, once these people have acclimated to like a 250K base, it's like good luck, you know, building a... 100%. And also, once you have a family, you have a sort of fiduciary duty to your family to maximize their quality of life. There's no life hack that says that you're allowed to degrade the quality of your child's childhood because daddy wanted to have that grindset mindset, right? It's irresponsible at that point. Yeah, yeah, yeah, I couldn't imagine starting Oculus where I am today. Like, it would, it would just be, it would just be irresponsible. Yeah. Take us through Mod Retro. How much of,

everyone's familiar with the chromatic. We've talked a lot about a lot on the show. We unboxed one. We've had a lot of fun with them. How much of the roadmap is public now? Where's the company going? Where's the company now? Just kind of give us the general update. and then we'll dive into some stuff. Before I tell you where it's going, I'll go back to where it came from in the first place. A lot of people think that Mod Retro is this very recent thing for me. You know, the first product we launched,

the Mod Retro Chromatic, which was kind of the ultimate Game Boy, this kind of heirloom grade tribute to the Nintendo Game Boy and Game Boy Color, very high-end hardware, magnesium aluminum alloy shell, a lab-grown sapphire crystal screen lens rather than plastic or even glass. And the thing is, Mod Retro was actually the first company that I ever started, even before Oculus. So I started Mod Retro when I was about 15 years old. It was an online forum for people modifying game consoles, handhelds, portables, also home television consoles.

The main kind of thrust to the community was this hobby called Portableizing, which is taking home consoles and turning them into handhelds by combining them with modern technology like LCDs and modern, modern high energy density batteries. And I mean, that actually was a pretty big deal for a while. I know in the modern day, this doesn't mean much. But we were getting millions of unique viewers every single month because we were getting covered on the projects on this site. We had thousands of active members.

We were getting covered by Engadget and Gizmodo and Kotaku and, you know, the kind of the whole group of outlets that back then liked technology. They're now anti-tech, anti-tech media coverage. But back when tech news was about tech and not anti-tech, they were covering all of these things. And again, these days, millions of uniques, I mean, you can get that on TikTok with a good dance. But that really meant something in the mid-2000s on the internet.

And we actually started working on projects like what the ultimate Game Boy would be back then. There was a project that I did in 2008 called the PGB, the Power Game Boy. Power Game Boy was the ultimate Game Boy. It was Game Boy Advance. It was Game Boy Advance SP hardware transplanted into an original Game Boy shell, but with an upgraded screen, upgraded controls, motion controls, an FM radio transmitter so you could broadcast the sound to your car so you could be playing and didn't have to tether in and could have all that sound if you're doing LSDJ or some other chiptune software. And that actually won the 2008 Portable Palooza. So I'm very proud of the power Game Boy. I was also the first person to ever backlight a Game Boy Pocket. No way. The first person

to ever LED backlight, an original Game Boy. So I mean, I am an OG to the max when it comes to this type of stuff. That was the original like parental control was I just remember being a kid and being like, if I turn the lights on to play Game Boy, my parents are going to see the light under the They're going to come take my game boy. So I was like trying to, it was probably training my eyesight to try to, yeah, yeah. No, no, you're just, you're maybe hurting your eyesight, but training your brain. Now you can see signal from the noise. You give you an ultimate night.

And you're your, you're Batman yourself. Right. Exactly. They're molded by it, raised by it. Yeah. But, um, so what, what happened is I started on this project all the way back then of what the ultimate game boy would look like. I kept working on at Oculus.

Yeah. I kept working on it post Oculus. And then after about eight or nine years of not making any progress because I was just, I made some progress. We had some prototypes and stuff. I finally said, you know what? I need to get more serious about paying someone else to do my hobby because I'm not going to be able to get this done on my own.

And so I ended up hiring a few people from my past life and getting together with a bunch of people who believed in this kind of vision of building these tributes to what technology used to be, the best parts of what gaming used to be, and building a company around that. And we ended up pulling together the chromatic, all the pieces and loose ends from 10 years of hacking and modding and turned it into a real product. Walk me through the roadmap, the M64 is coming out. That's right. Do you have other ideas or ways you define, like, what sticks out?

Obviously, the Game Boy is iconic. The N64 is iconic. but how do like how broad are you thinking like like what what reaches is it just games is it just games from the 90s 2000s we did the game boy because it's the most important handheld console ever yeah it redefined the idea of gaming what it was how you did it how it fit into your life how you could build games that you didn't sit down and be tethered to something but instead could be a thing that you would share with friends bring to play meet new people playing them.

I mean, that was really, really a wild idea at the time. And there's a lot of good in that. But I think that as the games industry has financialized and gotten much bigger, there's a lot of things that have gotten lost. I think that the need to make more and more money has taken things away from, I think, what were actually great product decisions

in the 80s and 90s. When people were just trying to make great games and great consoles, They weren't trying to figure out how to, you know, bump up their daily active users. They weren't trying to build live services. They weren't trying to build, you know, passive recurring revenue models that they relied on a variety of modern marketing concepts to juice people and get them locked in. Yeah, what do you like in the modern gaming landscape? That's why I'd say just generally, hardware-wise, I want to go into hardware that was like similar turning points.

Yeah, yeah. So the M-64 is an obvious one. You know, that was the beginning of 3D gaming basically for everybody. You can say, but Palmer, there were people who are playing. you have 3D games on their PCs. Yes, but in terms of mainstream access, totally. I mean, that changed everything.

Totally. I'm interested in going to all these points where there's things that we can learn and releasing basically the best version of that combined with modern technology that makes it more useful. So things like, what would a modern Sony Walkman look like? What was good about the Walkman experience

versus modern streaming and kind of the digital morass that we've gotten into, the algorithmic feed? Nobody's doing mixtapes anymore. Listening to music is not a conscious activity. It's not a curated activity. It's being a receptacle for a machine. People talk about just having AI slot fed to them without realizing that the modern music industry has kind of been pioneering this for a long time.

It's just the AI is behind the curtain. The computers are behind the curtain. And the algorithmic recommendation engine is behind the curtain. Do you feel like there's some green shoots in the modern gaming economy? I'm thinking like, yes, there's a lot of, you know, mobile games that are hyper-optimized. and there's a lot of games that have gone free to play with all the micro payments and stuff. But then you do have folks like the team behind Last of Us

where it's just a story and you don't really get sucked into any crazy micro payments and it feels like there's an artist behind it. But are there other areas of the modern game industry that are sticking out to you as like positives? There certainly are. And there's lots of modern indie games that are I think doing a lot of it's like you look at like,

you look at like Silk Song and a lot of the fantastic. But where you're not seeing this, I think is on the hardware side. Sure. You're still living in an ecosystem. So let's say that you want to play a game that was built with these values. All right.

So you're going to turn on your console. You're going to try to play it. Oh, there's a critical security update. Time for you to do your critical security update. Okay. Now you need to also update your console. All right, you're updating your console. Nope, that wiped out all the cookies.

It's time for you to log in again. You're going to log in. It wants you to do two-factor authentication because fraud has become such a problem that you now to do that. Oh, shit. Where's my phone? Let me see.

I don't have my authentic. It's one of those terrible things where it adds so much friction. And that's before you then get railroaded into a big giant UI of advertisements that are auto playing the moment. The idea of being able to get permission to upgrade your skins, basically. I didn't just be like, I'm going to take this. Yeah, and just turn it on. And it plays. And it's great.

That is, yeah, yeah, yeah, yeah. Modern games can't do that because of the platforms that they're on. Yeah, yeah. I was comping, like, what it takes to play, actually on the, one of the newer quests, I had, I realized I had seven different passwords, Instagram, Facebook, meta, I had all these different passwords, I had codes to different pieces to buy games and stuff, versus I went and pulled up an old N64 where you turn the button, and it just says, golden eye. And it's just like amazing. And I was saying that, like, that seems like an own goal. It seems like modern video game

designers should at least know that you will see lower churn if you pre-install one great game and when the first time they unbox it on Christmas, you turn it on and it's beat saber or whatever the piece of software or hardware that you're selling, like have it come with something great. Like, why don't people do that? Are they just stupid or is like something more complex? This is, it is complex. I mean, so you've got to remember like, so first of all, there's a lot of people in the games industry who didn't necessarily get into it purely because they want to build great games or to drink Starbucks and not Mountain Dew. Yep, you've heard my quote, right? And you have a lot of these people who, it's a lily pad,

it's a way to make a check, or it's a way to affect social change in the world through some larger companies budget. And so that's, that, that, that is part of the problem, but you're also at odds often. So, like, you just talked about this specific idea of having a bundle title. So I've been on the other side of the negotiating table inside of, you know, inside of meta, formerly Facebook and, you know, formerly Oculus. What's going to happen is you're going to say, hey, this is going to be a great experience. And then you have someone who says,

ah, but if we have a bundled title, then that gets rid of the revenue opportunity to have another company pay us to be the bundled title. And also our developers are going to be really upset because we're going to be competing with them. And so, for example, your holiday day one installs, they're mostly going to be of this new game. People are going to be less likely to do day one buys

of all of these other games if there's a game that you can already play. You say, well, what should, we have to have something pre-installed, and then you have these conversations, well, it can't be a full game. It needs to be a thing that shows off the hardware, be like a fun little bite experience,

but we then need to have people go into it. And here's another thing. They say, if you have literally nothing, that means they have to download something. And the time where there's going to be the most impetus for them to put in their payment details is going to be that day one. So you don't want to do anything that degrades.

You get the payment details, because the moment you get their payment details, every purchase after that is an easy click. It's an easy dopamine hit. you don't have to go through all of the pain. And so it's one of those things where you have all of these intervariant money-driven things, and you have the platform holders so tightly intertwined

with much of the content. This is the problem when the hardware owners end up owning all of these studios. I mean, this is probably me getting a little too business political, but in the early days of Oculus, we were very clear with developers to our business relations. We are not Nintendo. We are not going to compete with you.

and basically destroy your sales by preferentially treating our own developers better, our own studios. So we made things, but we really said our goal is to enable second and third party titles, to fund lots of other people. And we funded dozens of developers.

As you become Nintendo, you make it harder for those third parties to exist. And the first party has their own goals that are not necessarily aligned with what you're talking about, which is turn on the game and play it and have a good time. They have other plans for you. is the answer just out-compete them i imagine that the libertarian and you is not saying we need

to regulate this uh so what's the answer of course no um i think it's a combination of reminding people what they've lost like what they had and how good it was yeah it's about reminding and showing off for the first time to a new generation how things used to be i mean one of things i love about chromatic and m64 is people you know show like we were just at the Portland Retro Gaming Expo, and a lot of the people coming by and have the most funds were kids whose parents brought them over like, oh, check out this game. Like, this is the Mario Kart I used to play. And you can, you can, you can show these people, I think a lot about how things used to be, how it used to work, and I think you can prove that people still want that. There's people who don't believe any of this.

Like, you'll talk of people say, well, that's not what people want from games anymore. They want live service games. They want games that are continuously updating with fresh new content. And like they say this, I think, because their internal people have to convince themselves that it's true because otherwise their business model of being a $100 billion company doesn't pan out. And you contrast that with like the number, you know how many people made the Game Boy? It was 12 people. I mean, it's just it's, you'll contrast that with like the 60,000 people you have in some of these.

So look, I don't think it's regulation. I think it's reminding people, showing people. And then at some point, someone needs to take the best of, technology, and they need to take these lessons from the past when people were trying to make things great without necessarily being concerned about the microfinancials. And they need to build probably a new platform that it learns for the, you combines the best of all of these things, which is kind of the idea behind Mod Retro. You want to combine the best of the modern and the best of the retro. And I think at some point, somebody's going to do that.

Who knows? Maybe you'll see something like Sega reenters the console war and kicks everybody's but maybe it'll maybe it'll maybe it'll maybe it'll be in television maybe colico vision's going to come back uh but at some point it'll happen yeah do you expect mod retro to continuously make decisions that sort of limit the tam and that's you know not going down the path of hyper financialization and and you know trying to create this open ecosystem i just i doubt you guys had any investors that that passed on mod retro but i imagine some of them would say you you know, the NPCVC that thinks it's contrarian to have kids in your 20s would say, like, okay, I want to invest, but like, how do you think about the Tam, right?

Like, how do you address that? Because I can see the obvious path of just selling a lot of really great hardware and building out, you know, millions of people in the world that just love the hardware, buy the hardware, and you have a fantastic business, but maybe it's not an Anderral-scale opportunity, and you're probably totally okay with that. I think the opportunity actually is huge. I think that the entire modern electronics industry is in a sort of prisoner's dilemma where nobody can stop doing these things that nobody wants to be doing because the first

person to do it can't really do it alone. I mean, I think that's why your phone is full of crapware. That's why you buy a laptop and it's preloaded with all of this stuff. The companies know just how much consumers hate it, but they're all in this competing for each penny, competing for each dollar race against each other with largely undifferenters. offerings. And so they have to play that game. If you can hugely differentiate and if you can expense a consumer that it really is a differentiated thing, I actually think that you can end up where the tam is, look, here's what'll actually happen. I think the tam for doing things right is bigger

than the tam for things to do things wrong. The only problem is that the moment you prove that that's true, everyone is going to follow in your footsteps and become your competitors in this new post-Prisner's Dilemma world. That's probably the form of success that I would be happy with. It's not let's do everything ourselves and nobody's going to follow us. Realistically, the moment you see success,

everybody copies what you're doing. Changing the world is outcome people need to be okay with, even if they don't own the whole market. Would Mod Retro ever make an M1 grand? M1 Grand. I don't think so. I think it's going to stick to consumer

Electronics, like technology products. Would you ever make a consumer electronics product that was created before you were born? Oh yeah, for sure. For sure. I mean, we're working on a cassette tape player right now. Okay, yeah. So, like, that's one example. Like, what would, what would the ultimate Sony Walkman look like?

Like, if you were making something today with those principles in mind, what would it look like today? How would it work? And there's a lot of things. And I'm not even talking about the complex. things like algorithmic music feeds, just basic things. It is, it was so easy to stop and start music or adjust the volume or know that it was playing in the first place. You know, like you have that haptic mechanical, like you can literally feel the, feel the wheels

turning. A walkman on your shoulder, you know, on an arm band is a much better experience than using your phone to play music. And I understand why we're using one and not the other. And I'm not saying that the cassette tape part is the part that made it good, but there's a lot of other parts that were good that I think are worth learning from. Another one is, like, an example would be modern televisions.

I know I'm a libertarian, and I'm not supposed to like regulation. But I sometimes flirt with the idea that smart TVs should be illegal. I hate smart TVs so much. They're so bad. And see, you're clapping because everyone agrees. Everyone agrees. This is the danger

of being a libertarian. You realize you can just adopt populist pro-state positions, and you can get voters. It's like, oh, we're libertarian, except for this thing that you hate. We're going to regulate that. You can be trusted with total control. I would trust you. Exactly. You're not like the other ones.

Like smart TVs create a lot of these same bad incentives where you have the hardware manufacturer, not just trying to build a good TV, a good screen, good visual technology. They're now dipping their toe into, well, I actually need to be a services company. I need to be a software platform company. I need to run an app store. And it's a prisoner's dilemma. If you don't do those things, and if you don't introduce advertising into your TV feeds, and if you don't have, you know, a lock screen that's showing ads on your TV,

how could you compete with the people who are who charge, you know, just a few, a few dollars less? But I think that there's, I think that there's value in saying, like, hey, like, one of things Mod Retro is looking at doing is doing a modern CRT display. And part of the value there is building something that is actually has all those cool attributes of a CRT, especially when you're working with retro computer systems and retro consoles that were designing the art around the particular technicalities of how a CRT works, in terms of having very high motion clarity, very, very good color gamut, relying on the persistence of the phosphors to enable certain visual effects, a certain blending that happens on certain

things, doing display interlacing techniques. But ignoring all that, there's also just the fact that a TV that you can plug something into and it just shows what you plugged into it, is an incredibly novel idea. And I think bringing it back, reminding people of that, like, I wouldn't be surprised to see Mod Retro make a totally modern technology display that is just a TV that doesn't fuck you. Like, that's it. I think, I mean, just think, just the, my biggest critique of all these smart TVs is how quickly the software degrades. Like, it wasn't good in the beginning. And then quickly, there's like a small lag every time you push a button. And imagine a TV that was just super snappy and just had the three apps that you actually want to use.

And I'm sure you can go back and use, go back and use even like a flip phone from the early 2000s. The UIs were literally orders of magnitude faster and snappier than the UIs of these modern smart TVs. Like you can buy a TV with eight gigabytes of RAM and a three gigahertz processor. And somehow, you're right, it still manages to have that lag. You know what? We're at a stage in the technology cycle where people make things that are different, but not necessarily better. There's this pressure to do things that are new and different. Horizontal movement. Yeah, yeah. And my biggest critique is the new iOS liquid glass. It's like, congratulations, you made it different. I don't believe you made it better.

Yeah. What do you think, do you think there's a world where the next turn of VR kind of displaces TVs? We talked to James Cameron about this, and it seemed like he'd kind of seen the, next iteration maybe and was kind of excited about the idea of being able to watch a 3D iMacs movie at home and from my experience with the apple vision pro the screen's getting better and better meta's working on this stuff like we've talked to the big screen team it feels like we might finally be at a point where we're thinking about replacing the home theater the way to think about VR headsets is not as a replacement for a TV but as a replacement for a home theater So, and the reason that's important is it's not just a TV, a screen, it's a controlled

environment optimized for watching that content. The thing I've always liked about VR is you can have all this cool new VR content, but it can potentially also simulate any previous form of any previous media experience before. So like an example I've given when people said, well, you know, what about like an e-book, you know, an e-book reader on VR, you know, are we really going to use that? And the point I make this is, well, look, if you make this good enough, it's not just the book, right? The experience of reading a book is also your environment, your surroundings. People

will go places just to sit down and read a book in the right environment. Simulating that is interesting. So the same thing goes for music, right? It's not that you're not trying to simulate a speaker. You're trying to simulate, you know, a listening room. And I feel like that, that's where things are going. I think that's why James Cameron is excited because you spend a lot of money to control a viewing experience when you're doing it physically, right? Like I'm building walls. I'm soundproofing a room. I'm painting the whole thing, Matt Black. So there's new reflections on my screen. By the way, I've done that. I have a basement home theater that I made myself. And it's the walls are painted matte black and the ceiling is painted

black black. And I have custom matte black carpet that's mostly black except for a few of my favorite galaxies printed on it from NASA imagery. Because I wanted to have some space carpet. Nothing's cooler than space carpet. But like that was really expensive to do all that. And I think VR is going to actually surpass that experience in short order. The technological path to VR displays being better than 99% of people's home viewing environments is a single digit year problem. It's not decades. It's within 10 years, certainly. Yeah. What's in the critical path? You've said that you liked pulling the battery out. Are there other things that you're pulling out if you're building the next version of consumer like VRS home theater? What are the

design considerations? I mean, I mean, where do I even, where do I even begin? Second screen on the outside. You'd have, you'd definitely have that if you want to be in the home theater, right? No. I hear that was a Tim Cook special,

but I can't, I can't confirm it. I don't work at Apple. But you need to relentlessly focus on the experience of the user of the device. You can't have features that are not adding to that. Like you don't,

if your job is to try and make VR cool, which is largely what Apple was trying to do with the first generation vision pro, you might do things like have a screen on the outside. And like if you're trying to make it cool and acceptable. But at some point, you need to optimize towards the experience of it all. And luckily, in the long run, maybe even the medium run, these things are going to look like sunglasses, not like ski goggles.

And so that's really where this is all going. I think if you and me had James Cameron right here to grill, I don't think he would say, I think the future looks like a bunch of people wearing ski goggles. I think you'd say the glasses you wear to already like navigate and communicate that you're wearing all day, will also simultaneously be the best home theater device you've ever seen. We're going to get there sooner rather than later. Yeah. Let's talk about Arabor. There's been some press hits lately. The press seems entirely fixated on Palmer Lucky's Crypto Bank. And obviously that is not the full story, nor is it the most, I think, exciting thing about it from anybody

that's been in the tech industry that live through the SVB collapse. And so I wanted to hear it directly from you. Well, you know, it's a little early to start talking about you. We just got our conditional approval, which is fantastic. We're still waiting on FDIC. Yep, we're still waiting on full approval. So it's a little early for me to really get into, you know, going out and marketing the bank.

Yeah, but why? But, but, but, but, but, what you're getting into. Yeah, no, I get it. Like the, I think there's this natural inclination for people to look at this and say, Oh, it's like what SVB was. It's catering to the same customers. That must mean that they're going to be this really high risk bank that does all these high risk things. In reality, it's literally a reaction to that.

It is an opposite. The reason that we got this approval is because we went in saying we're going to have the most conservative loan to deposit ratios of any bank in history. We are going to do this extremely novel service of taking money from people, holding it for them, and then allowing them to have it back. like we're going to be offering these services that banks used to offer. You can't get the service I just described in any bank. If you go and you say I want you to just like hold on to my assets but I don't want you to loan against them. Like that's

not what a bank is. What are you talking about? And of course, like I'm not saying that all assets should be held that way. But when you're a business in the business of making your business grow, you don't care nearly as much about getting an extra half a percent on your deposits as you might about truly minimizing

the risk that you're not going to have access to any of your capital. I mean, if SV would not have been bailed out by the government in in in a like it wasn't just like the government's obligations they were bailing up they were bailing out well beyond fdic limits if they wouldn't have done that it probably would have wiped out half the tech industry in one fell swoop that's crazy how can the tech industry have become so subservient to the banking industry to the finance bros that not only can we not survive without them but in working with them we sign our own death warrants, right? Like, we can't see what the risk is. We can't control what it is. And there's

literally no other option. So that it is, I agree. It's, it's annoying to see everyone talk about how Arabour is this new bank in the vein of SVB that's going to be taking on higher risk, you know, higher risk bets. It's literally the opposite. It's, it's do what SVB didn't for the people that SVB was otherwise successful in working with. So think like national security companies, hard tech, deep tech, biotech, these companies that just need to make sure they have someone who understands how their business works. And SVB did do a good job at that. But then also is going to make sure their money is actually there when they go to get it. That was the part that SVB screwed up. Yeah. How, how, uh, I guess I'll end with one bit here, which is maybe worth

noting, you know, I'm not, I'm not even, I'm not working on Aribor in an operational day-to-day capacity. Sure. I, like, I'm a board member. I, I, I founded it because I wanted this to exist, you got to remember that the tech, sorry, the finance industry is full of people who love finance for the sake of finance, right? They're truly, they're truly in love with all the levers and the machines and how it works. That's right. And in addition, they probably like what it enables. They like free flow of capital. They love the ability to leverage things. Like, I get that. Similarly, I'm a VR guy. I love VR for the sake of VR. I love what VR can do. I love that it can be a home theater. I love that it can be a

classroom. I love that it can be a time machine, but I also strictly love it for the sake of the technology itself, that you're presenting an artificial view to your peripheral nervous system that is sufficiently advanced as to convince a body that has developed for millions of years to discern what is and isn't real. That's incredible. I love it. I would love it from a tech perspective, even if it were useless from an everyday perspective. And I would say, that is not how I am with finance. I don't love finance for the sake of finance. I'm not a finance bro. I want something like Airborne to exist because of and for the sake of my love for all of these other technologies. If something doesn't exist, a safe, reliable banking partner for people like me

who care about tech for the sake of tech and what tech can do, if something like that doesn't exist, people are going to have a hard time. So it's a little weird. It's one of the few finance companies that started by somebody who wants it to be in service. of all the other true interests they have rather than the culmination of their own personal interests. I guarantee J.P. Morgan, Goldman Sachs, these firms were not started by people who said, you know, I don't really care about banking, but I do want to make this technology work. Yeah, yeah, I know that makes a lot of sense. Speaking of other articles, there's this interesting article in Business Insider from six years ago. The U.S. Army wants mixed reality headsets that

detect enemy fire, translate language, and see in the dark and roll, the startup, founded by Oculus Palmer Lucky, Oculus is Palmer Lucky, is on it. This was a six-year project. What is the full story here? What was the genesis of this article? And then how did the product come together? Well, the thing that's so interesting, and I think there's a quote you should dig in there for it.

It's a quote from Brian Schimp. Yeah, that's right. He says, the real moonshot for us is this idea. You want to have every soldier, every operator, be able to have total awareness of what's going on. They know everything they need to know to do their job. and all of this is available to them in a millisecond and just the most critical information that they need.

I mean, you could take that quote, and it's practically word for word what the Army is saying about soldier-born mission command. I mean, it could be the press release for Eagle Eye, which we just started showing off publicly at AUSA. I mean, it's interesting because a lot of people think that this move into announcing our augmented reality efforts is this new thing that we pivoted into

rather than the culmination of eight years of platform building, building the software that you need, building the data integration techniques you need, the radio relay and meshing systems that you need, there's so much you have to do to accomplish this dream of a soldier-born heads-up display that shows you where the baddies are, where your buddies are, does your ballistics compensation and calculations. I mean, like, it takes so much work.

And we've been working on this since the beginning of the company. And so I think that article is interesting because it's, this was, you know, six, seven years ago. And people are asking, what are you guys going to do? We said, oh, we're going to build combat heads of displays to integrate data from all these sources and put it right in the soldiers field of view so that's available in a millisecond. And when people, when we said that back then, people were kind of giving us side eye and they were like, okay, one, that sounds crazy. Two, the army just gave like, put to put this in context. That was like six months after Microsoft had won the IVAS contract. They're like, well, that's what Microsoft's doing.

Why would you be working on that? And even then, it's because we had a vision for what it needed to be. It was somewhat divergent from what the Army or Microsoft was doing. And so we kept investing. We kept building. And I mean, who would have bet that eight years later, that Microsoft contract, that $22 billion contract vehicle for the architecture of the Army's AR future would move over to Anderil, that we would be launching something like Eagle Eye and that it would be an extremely, you know that when we took over. SBMC from Microsoft that we integrated our UI and features that we've been building on Lattice in less than two weeks.

Like we literally, like we did in two weeks what the Army had been working on for years because we've been building this backend for it and kind of preparing for the day where this might happen. So it feels very much like a culmination of destiny, a bet that paid off. I've been definitely talking to my investors and reminding them that they told us that this was a moonshot that probably was not going to pan out. Like, you know, I mean, try, try telling someone, I think Microsoft is going to transfer their $22 billion contract to us at some point.

It's just like, they're just like, Palmer, like, that's magical thinking. Like, it's not, like, it's a type, literally I've been told Palmer, that's the type of thing you think when you just miss the boat and you just can't bear to a minute. Yeah, they're like, you're just coping. It's cope. It's pure cope. I say, well, let's give it up for a culmination of death. destiny. Yeah, a culmination of destiny. I'm always a fan of people achieving, achieving their destiny. I haven't gotten to mine yet, although, you know, I won't, I won't do this. You know,

I think, I think you guys might have even asked me about this at one point. I, I have this, I have this, I have this goatee that I've been growing ever since I was fired. And, you know, that was like, I'm coming up on nine years ago now. And I've told people who asked about it, that I can't shave it until certain conditions are met, until I achieve certain goals in my life. And I've just been cryptic about it and never said why. I don't plan on changing that. But I will let you know I have achieved those life goals.

I have achieved my destiny to end that I set for myself eight years ago. Wait, so does that mean you're just keeping the go-tie because you like it? Is that what you mean? So, well, I said I'm not going to shave it until these conditions occur. And there were people who believed that those conditions will never occur. We'll have to talk about it another time. Sure. But it's not that I must shave it.

It's that I now can shave it. That's right. I tweeted about it a few years ago and I said, look, I'm not going to tell you what's going on in my personal life yet here. But suffice to say, when the beard comes off, shit's about to. go down we need it we need a we need a we'll get a beard tracker on the website that people get well we have uh brian armstrong uh joining the show thank you so much palmer for joining that was a fantastic conversation uh we'd love to get you back we'll talk to you soon how you guys doing good to see you palmer yep uh we'll see you later palmer have a good one awesome thanks for coming on cheers

live long and prosper live long and prosper that was correct Brian welcome to the show Brian. As you can see, I've already achieved all my life goals. Yes, yes, no hair whatsoever. None left. You look fantastic. Welcome back to the show. Thank you so much. How's your 24 hours been? Yes. You guys have been dominating the timeline. This acquisition of Echo out there, you know, Kobe's just such a legend. He's an OG in crypto. He's been giving us good advice for a long time, whether we wanted it or not. He was, he was right. every time he put out some stuff. So I, every time I'd call him, I'd, you know, I'd DM'd him on X a while back and was like,

man, you keep lighting us up on X, but you're right every time. And he always had good suggestions. So I was trying to court him for a while to see if we'd get him in the company. Fantastic. I mean, I went on this little emotional roller coaster. Maybe it's just because I'm a little bit of an outsider. But when the story broke that you'd purchase the NFT, everyone, you know, I was seeing, oh, this is so much to spend on a podcast.

this is so ridiculous. And I was kind of falling into that trap. And then when the acquisition happened, it felt like a brilliant way to kind of actually draw more attention and even just share a little bit more of like the roadmap of what's happening here. They're obviously connected, but talk to me about like how you decided to parcel out the information and why. Yeah, well, I wish I could take credit for that. But we actually have some really great people on our team that are, let's say, a little more internet native. And, you know, in the, a little D-Gen, and we've been, you know, we've been hiring some folks that really are following this. So, yeah, they actually came up with the idea of, like, let's bring his

podcast back. That would be, that would be awesome. It had a cult following. I think everybody loved it, the up-only podcast. So really, as part of this deal, we decided to have some fun with that. And the real news, of course, we're acquiring the company. But if we can get this podcast back up and running, I think that would be really fun at the same time. So, yeah, And then I just, the broader story is just like, we're really excited about capital raising coming on chain. I mean, that can make the whole process more efficient, more fair, more transparent. Every entrepreneur who I know finds the fundraising process to be pretty onerous, right? It usually takes like two to three months where everything else that you're focused on has to stop.

You go do tons of pitch meetings. You get told no 19 out of 20 times. You get punched in the gut over and over with these smart people telling you that your idea sucks. And then if you're lucky, you manage to get this thing over the finish line, and it's always a very tenuous process with tons of legal fees. And so, yeah, we really think that capital formation can be just much more efficient on chain. And Echo is leading this space. You know, they've helped over, I think, maybe two or three hundred projects now, raise money over $200 million. And so it's not just going to be like token sales, like I think other startups. What keyword did I hit for that?

$200 million. We got to ring the gong. Yeah, get that gong going for the Echo team. I love it. Yeah, and I guess like dive into that a bit further. My understanding is like they're a platform, but they have, there's some editorial approach there, right? For now, it's not any company coming on Echo and spinning up, or is it, it's community-led?

Is that it? It's like they have to have... Yeah. Yeah, the idea is you can raise from your community, and they are curating it a bit, right? Because I think if it's totally open-ended, you could have an adverse selection problem. But, yeah, they're bringing on really high-quality projects.

And you can imagine that, you know, Coinbase has about half a trillion dollars in custody from our retail and institutional customers. These people want access to great assets and investments. So Coinbase is really building a network effect here. If we can have great builders come in who want to raise money, and connect them with investors who have the money, you know, we're the perfect platform to help accelerate this

and give Echo even more distribution. So first, when they come in, they're going to keep Echo standalone, just make sure it continues to operate and do great. But over time, you can imagine us integrating this tokenization, fundraising platform into Coinbase and really distributing it to all of our customers. Is there, can you walk me through some of the more, like, life cycle of a modern crypto startup?

Like, imagining if I incorporate, raise money on Echo, But then is there a world where I'm in an ecosystem of like Coinbase B2B products or I'm building on top of base or I'm custodying my treasury with you? Like how many how many different products can I pull off the shelf if I'm building a crypto startup in 2025? Yeah, that's exactly right. I mean, you're pitching the vision better than I could. But yeah, let's say that it's the full life cycle. You know, you're two kids with a lap drop in a dream or whatever. You want to start something.

you can go in there and open a coin-based account for your startup. Maybe we even help you incorporate on-chain at some point with like a Dow or these kind of things. And then you need to raise your first bit of capital, like a seed round, you know, press the raise money button and put your pitch deck together, make a video. Like we'll distribute it to some of our early or some of our customers that are interested in these kind of assets. We help you raise money. Now you've got kind of a business bank account equivalent open where, the funds just arrive instantly with USDC from people all over the world. You don't have to be tracking down these like wire transfers and lawyers and all over the world.

We just kind of, you know, it's all raised on chain and a smart contract. So your capital arrives immediately. Now you can actually start to generate revenue as well as you're building your product. Like crypto payments are another button click away. Maybe financing is involved there. And eventually someday you're going to want to go public, right? and have your company be traded by every retail customer out there, we can help you do that on chain as well. So you can imagine this whole lifecycle coming on chain. And I think the goal is

this will just increase economic freedom. It'll increase the number of companies who go raise capital and get started out there in the world. Yeah. What is the process for the private markets coming on chain? Like it seems like there's now enough momentum, right? Echo is one. version of this. Did, you know, on-chain companies raising on-chain, that makes sense. But how do we get to the point where companies that maybe aren't crypto-native are able to utilize these rails and then particularly, you know, tokenize their equity and make use of, you know, crypto's full potential? Yeah. So it's starting with token sales, more crypto companies. But you're right. We're eventually going to get this, I think, to be every company just raising money. This

way if it's more efficient. They shouldn't really even have to care if it's crypto underneath. They're just, you know, they're raising dollars or with stable coins, whatever that they want to actually raise. So, you know, there are currently some exemptions which allow this to happen under the SEC, both for crowdfunding or, you know, having accredited investors raise it. But we're actually, we're spending quite a lot of time with the SEC to try to get the next generation of this working that would allow retail to participate under certain conditions. you know, the accredited investor rules are there for a good reason. They want to protect people the unaccredited investors, but it also prohibits people who are not already wealthy from

participating in these kinds of upside. So in many ways, the accredited investor rules are kind of unfair. We're hoping that we can find the right balance of consumer protection and also making these available to retail. And yeah, it'll level the playing field, democratized access is what crypto is good at. Do you, do you, has this happened yet for a kind of to go, effectively go public on chain? Do you expect to see that in the near future? There's so much capital on chain that would love to invest in, you know, that loves to invest in all types of different opportunities, but do you see that? Is that not just dropping a token? Like, do you not think of Ethereum as the first company? Yeah, in some ways, but I'm talking about like a company

that, let's say, you know, we had Figma IPO this year. Sure. They could put, they could leave an allocation, like an on-chain allocation. Yeah, interesting. And so some would go through traditional brokerages, and I just feel like you'd be getting the first calls for serious companies that wanted to explore something like that. Yeah. So there's been lots of precursors to this, you know, the whole ICO craze and everything. It just showed the amount of demand for this or like the Ethereum launch or anything, right? But there's no, there hasn't been anybody who's done it yet with like a traditional IPO, like you said, with an allocation in the on-chain category. And actually when Coinbase went public in 2021, I really wanted to do this. We spent a

bunch of time with the lawyers trying to figure it out. And unfortunately, like, the SEC at that time was not the kind of, it wasn't ready. Let's put it that way. And so now we have an SEC that's much more engaged and willing to innovate on this frontier. And they really want the U.S. to be the crypto capital of the world. So I think that we will see, hopefully, in the next two, three years, the first company go public on chain, you know, and could be in parallel with a traditional IPO. But over time, I think you'll eventually see like a marquee blue chip company go public entirely on chain. And that's where, that's the direction this is heading. You know, crypto is eating financial services and hopefully Coinbase can be the primary account for people

in that new economy. How much are stable coins an important piece of this narrative? I imagine that even crypto founders who are super bullish on crypto are still not in the world where they say, I want 100% of my raise to be denominated in Bitcoin or Ethereum because I have a funny story from from 2021. I built a company called Party Round back in the day. And we had a fundraising software that some variety Web 2, Web 3 companies were using. And we had a big Web 3 company fundraise with our product. And we had the functionality to raise in stable coins. And they say, we actually don't want to offer this because it's really kind of complicated to try to custody, like, they weren't set up to, like, custody the USDC. And so they were like,

no, we'll just use Fiat Rails. Because, I mean, the variety, the techs obviously come a long way since then. But, yeah, but I'm wondering, like, are, our modern crypto companies thinking 10% in crypto or Bitcoin and Eath or something like that? Or are there companies that are like 50-50? Or are they like, I want to use crypto rails, but it's got to be all unstable coins. Is it all over the place, like, what's the current mood around, like, just if you're building a startup and you want to build a product and you need to pay, you know, employees at the same amount, basically, every, every month. Like, yeah, how do people think about that? I think most companies are going to raise using stable coins, just because it's stable to

price the terms in that. But then right away, they're going to want to keep a percentage of their, yeah, treasury in something that's more inflation resistant like Bitcoin. You know, we're, We're seeing even large public companies like Coinbase and, you know, others use Bitcoin on their balance sheet. Sure. So it's becoming more acceptable to have Bitcoin and the Treasury as part of Treasury management. It's almost becoming like a best practice if you want to hedge against inflation.

Yeah. But just to actually get investment terms done, yeah, that's probably going to happen in USDC with people just clicking a button to sign the terms, agree to the safe, and then the money is instantly transferred as part of that. yeah yeah no that makes it less sense um uh we're having brian shesky on in just a few minutes uh i don't think we ever got your uh take on founder mode like you've been through uh so i i feel like you're in the in like the best example of like a founder who's been at the helm through so many cycles uh how have you distilled your philosophy your operating philosophy on like keeping the team aligned uh keeping focus agility uh keeping new

ideas flowing through the entire Coinbase journey. Yeah, well, you know, I actually started my career at Airbnb, and I got a chance to work with Brian and Joe and Nate. And so, you know, I've been a big fan of Airbnb and everything I learned there before going on to Coinbase. But yeah, I'm a big fan of Founder Mode as well. I think Brian struck a chord with that when he put it out. I mean, I'll tell you, one of the things actually we adopted from his founder mode talk and

subsequent content that came out is like we're now doing product events twice a year where we go out and just package up everything we've been building and communicate it to the world. That's just one small example. But I think the core message of it is like don't apologize for running the company how you want to run it. And so there's definitely times every week where I have to jump down into the weeds and be like, look, we're we're not hitting the bar here. Like let's level it up. Let's go in this direction. And so you're constantly as a founder sort of making those edits in the room, editing people's thinking, editing who's in charge of that team, editing the roadmap to get it all moving in the direction you want. So, yeah, sometimes micromanagement

is underrated and necessary. It's okay to be a dictator. By Kobe DM as well. If he DMs you something, you got to bring it to the team. Well, I think we have Brian Chesky joining just now. Thank you, Brian Armstrong, for hopping on the stream. Hey, look, it's your old boss. It's your old boss. Hey, Brian. Hey. strong black t-shirt game today i like yeah yeah looking good guys you both look fantastic uh thank you so much for hopping on this yeah congratulations to uh the coinbase and the echo teams yeah awesome moment all right thanks guys bye here's and brian chesky from air bn b here we're joining the show how are you doing right uh we're doing great great how you doing uh congratulations on all the progress

we've been uh hoping to get you on the stream this year we're really excited to sync up we have to kick it off with the most important question this is what literally thousands of people asked us to ask you this question we want to know your one rep max what's your bench press oh for for bench press yes i don't bench anymore what about all time best plates three plates three plates three 15 um i was better at deadlift i deadlifted uh i think 595 whoa so like which i think is six plates six times now i do like squats i thank you very much i do uh three 15 for a seven that's a 10 or 12? There you go.

Fantastic. Yeah, we were reviewing some of the more recent shifts in your strategy at Airbnb. I would love for you to give us just an update on this idea of Airbnb as a community, Airbnb as a platform. We were actually debating this earlier. I met my co-founders in my first company on Airbnb. Wow. That's how I needed a place to stay.

They were doing YC. I said, this will be a perfect fit. I want to build a company. we wound up putting the companies together. And I thought that Airbnb was actually a community on day one. And so when you say you want Airbnb to a community, is that a return or is that an evolution? Is that an act two or is that a return to act one? How are you thinking about community building?

Yeah, it's a great question. It's kind of both. I mean, I think Airbnb started very much as a community because people lived with each other. It was mostly bedrooms. Yeah. And so in that sense, it was implicitly a community. and everyone left reviews for one another. Now, as we've grown, more and more people have traveled with families and groups,

and they've rented an entire homes. And there's still a community. I mean, a lot of people, two out of three people who book an Airbnb leave a review. That's not true of most platforms. So people contribute. But I think that we can go so much further. So I think it's a little bit of returning to our roots, but then taking those roots and then taking a giant stuff forward.

And so I'll give you a couple examples. We launched earlier this year experiences. And one of the things we noticed was one of the biggest things we want to do with experiences is meet other people. So we basically allow you now to opt in. You can publish on a guest book. So when people book an experience, they can see who else is going. You can then stay in touch with people after. You can message them because a lot of people were like staying in touch, but they would have to exchange WhatsApp numbers. It's really laborious. You can't communicate with everyone. So these are just small things. But we're going to be doing so

much more. I mean, ultimately, you know, Airbnb is mostly a marketplace right now. And I would love it to be first and foremost a community. And it means that the atomic unit of Airbnb goes from a listing, a home, to a person. In other words, the most important asset we have are all the people, not all the inventory. That is a really, really big shift. And we've made a lot of investments in our community. For example, we have 200 million verified identities. There's only 100 million, 180 million passports in circulation, US passports. So we've done a lot around profile, having more of an I own-clide identity system, building out. There are really no social networks anymore.

There's no profiles in the internet, maybe other than LinkedIn. And so we think there's a real opportunity to build something like a social network in the real world where you can travel and live anywhere and you can get a home, you can get a service, you can get experiences, you can meet people, you can discover interesting communities. And it could go even beyond travel because we're starting to see people using Airbnb in their own cities, especially for service experiences. And why are we doing this? Because I like to ask entrepreneurs, like, why do you deserve to exist?

And the best generic answer I've ever answered is, because if I don't do it, no one else will. And I kind of think the thing that we're working on, that I'm not saying no one else will, but the thing that's unique to us is the idea that we have a community, and I think it's a superpower, but we could do a lot more with it. Because we're built on trust, and people deal with one of the most intimate things they can do, share their home with one another. So I feel like if we build the system of trust, we can do a lot more with it. I was reading an article about run clubs, and they've become really popular, and they were kind of branding, at least in the thing that I was reading is like a modern dating service or something.

And I'm wondering, like, how quickly does community building turn in? Does everybody become a dating app at some point? Like, am I crazy for thinking that people will meet each other on this app? I think they will. I think it'll be more like a college party vibe. So less of one-to-one matchmaking and more like a cut. What makes a college party unique? you kind of trust everyone because they went to the same college. It's not like a bar. So there's a filter. And so people's guards are a little down. At a bar,

people are a little bit guards are up. Or like a dinner party. And at a dinner party, you don't go to a college party necessarily just to meet people and hook up. Just like you don't go to a dinner party to hook up. You go to make friends, but sometimes you will meet someone that you can start dating. And so it's more like we're going to create a trusted environment for people to meet.

There's no subtext of dating or anything like that. But of course, And so that's kind of how we think of it. We're not going to do like a matchmaking service. Yeah, but it makes sense. If you go to a city and you want to do an activity and you go with a bunch of other people, you're going to make friends,

you're going to make business partners, but you're also maybe going to, you know, become romantically interested in someone. Yeah, all the above. That's the nature of these things. Jordy. What's it like transitioning? And I'm sure you consult with founders

that are maybe five, 10 years, you know, behind in the journey. But what's it like transitioning from the venture world in terms of like this sort of very mild It's very milestone-based. You're going from Series A to B to C. It's very clear to IPO. And then you're public and you're just out in the ocean, right?

And it's just sort of this endless sea of opportunity and paths and journeys. But I'm curious, like, what mental shift was required to move into the public markets, especially now that you're, you know, five years in. Yeah, I mean, this is – this might be surprising to say, but I felt like it was harder to be a late-stage private company than a public company. Because the late-stage private company, you have all the disadvantage of being public. Like your financials are, like, well-audited. There's beat reporters covering you.

When you're of large scale, we found a lot of things leaking to the public market. So we were marked to market. So we kind of have a lot of the disadvantage of being public, where there's always a sense when you're a private company, you get really big, like you're hiding something or there's more to the story. And so there's this insatiable desire when you're a private company, for people to quote, get to the truth, get to the bottom of it. And once you go public, everything is disclosed through the S1, the document you have to file the SEC.

And then I think people just assume like there's so much more transparency. I think it's harder and easier. It's a little less milestone base. I mean, you literally like, I used to pay a really close attention to our valuation every round we did. And you owe everything you do it as a private company. It's often to get to the next fundraising. And that can be helpful, but you can also make a lot of tradeoffs. Like I think we made, just to our prior test topic, I think we made some tradeoffs around human connection and community probably a period of time in the name of growth.

And I think most companies, you live and die by that next round and that round being an up round, not a down round and making sure you have enough money. And we were one of the most profitable companies in tech. We raised not a lot of money relative to our valuation. By the time we in public, we had cumulently burned, I think, $0 a cash or very little free cash flow. and yet we were still pretty beholden to it. Now, once you're public, it's almost like it's so omnipresent that you almost just, it becomes part of the background. Your valuation changes every second of every day, of every business hour.

And once you're public, you realize you're going to have a stock price the rest of your life. Even if you're not CEO anymore, you're going to live and die by it. So somehow I was able to just put it out of my mind a little bit more. The quarterly earnings is kind of like instead of every year, you have to explain yourself, you explain yourself every three months. But, you know, I think you have to develop, like, thick skin. And I think the public markets teach you that you cannot, like, your valuation isn't your value. Do you know what I mean by that? Like, if you associate your value of your valuation, then your self-esteem and the morale, the company's going to go up and down.

And I think, you know, Jeff Bezos told me really early on, this is more of a press thing, but he said, and this is when Airbnb was on magazine covers, when they had magazines and, you know, 10 years ago and we were gone covers and he said beware today's poster boy is tomorrow's pinata and things are never as good as they seem they're never as bad as they seem and I think you have to have that like don't get too high when your stock price is up you know when we in public we pop from like we were marked at 18 billion dollars five months six months later we went 100 billion and I'm like we weren't as good bad as when we were 18 billion we're probably not as good as 100 billion and today our stock price has been pretty flat we're probably a lot better in people

giving us credit for. So you just got to, like, not focus on that. And an easier said than done. But the more you can drown that out, the more you can focus on what really, really matters, which is creating a great product and eventually be rewarded for it. Yeah. A lot of times when we talk to public company CEOs, they'll tell us that one of the benefits is that you have a public currency for M&A.

How are you thinking about M&A? Airbnb doesn't feel like, you know, Salesforce type company where you're just going to buy up a bunch of B2B SaaS companies every couple weeks. How are you thinking about other additions to the Airbnb ecosystem? What have you done? What have you looked at? What's your philosophy to that? Our philosophy is to be extremely discerning around M&A.

The reason why is we've taken an approach to run Airbnb that's kind of similar to Apple in this early days where we are one app, one brand, and we're a functional organization. And we have one customer, right? So that means that it's hard to take a really large company. company and bolted on because we have a functional organization for those watching. I assume you know a functional organization, but there's like an engineering department, a market department. We don't have a division. We don't have division. So it doesn't preclude us from doing M&A if it's a really great opportunity. But for us to buy a big business, it just has to be

extraordinarily compelling. Now, we're still looking at acquisitions. And I do think, you know, we do billions of dollars to stock buybacks. We generate a lot of free cash flow. We generate four to five billion of free cash flow every year. I think, you know, we're good stock to own. Thank you. Congratulations. I'd like to think that, you know, this is a good stock to own and that there's a huge amount of upside given our multiple right now, which is not super high. So we're very much looking at it. We're also especially interested in smaller companies because they integrate much more easily with Airbnb. And of course, we're definitely looking at like talent acquisitions as well, especially companies related to AI. That'd be really interesting

to us. Yeah, Jordan. On running on a quarterly cadence, there's, uh, been some talk this year and maybe interest from the admin to move to a sort of bi-annual reporting requirements as a public company CEO, what do you think the impacts would be to your business and what are some of the sort of more broad impacts that you would expect out of a move like that? Because it's easy for the podcast class or people on X to talk about why it would be good or why it would be bad, but I'm curious from your view. yeah it's a great great question um i think it would probably be from the company perspective marginally better i don't think it would be a complete life change or game change like we don't

spend we spend we spend a decent amount of time preparing for earnings um you know you want to show respect to investors and be prepared at the same time if i was an investor i'd want to know that air may be managed what was mostly focused on growing the company and making the company more valuable. So, you know, I try to spend a decent amount of time on earnings, and I do think some CEO spent a lot of time of earnings, and insofar they spend a lot of time of earnings, it's probably best for shareholders in the long run. Even though they want more information more frequently, I think there's probably just more upside in management being a little less distracted and being more heads down. And not much changes of course of three months.

I mean, that's the other thing I've noticed is so little changes every three months that you end up getting asked questions around like foreign exchange, like currency. The more frequent the meetings, the more tactical the conversations often are. And I wonder if a positive outcome would be less management distraction, but also the topics would be bigger, more strategic and actually more fundamental. I mean, we get asked a lot of really good questions, but we got asked a lot of things because they're trying to predict what's going to happen next three months. And so the more frequent you have to report, the more tactical the tradies are. And so the smaller the topics are. Yeah, so a great, a great CEO. You're thinking, how can we be a more valuable company a year

from now, five years from now? How do we... There's a slight misalignment in timelines between the frequency of the reporting, the questions to get asked, and how I think about the business. Like, I'm not thinking about, like, the impacts that much of tariffs or, like, whether the currency exchange between Europe and the U.S. dollar, like these are not things that you can optimize that well anyway. And I don't think these are things that should determine what you should buy or stock and hold it or sell it. I think it's much bigger, more fundamental things. And so I think that would be, but I think on balance probably good. I can imagine people that trade on information want it more frequently, but I do think there's a cost to it. And so

probably on net balance, it's probably good to go to every six months. But make no mistake, it's not a huge problem for me. Like, if it's every three months, we're fine. How do you think about the long-term opportunity in categories that previously struggled with disintermediation? Airbnb hasn't had that problem, but as I think about new products, whether, I mean, we actually went through this whole era of like Airbnb for dog walkers, Airbnb for house cleaners.

And the problem with those platforms was that there's a lot of disintermediation. Yeah, you meet someone on the platform and then you say, hey, I'll pay you cash the next time you come by. Do you see any long-term solution to those with, you know, just building a better payments platform, review platform, or do you want to stay out of markets that are, that have a risk of disintermediation? That's a really, really good question. And because historically we're a travel business, supply and demand are different cities, and there's not a lot of repeat business. So there's a very low risk of disderemediation. And because the transaction is fairly high risk to both parties, like, you know, you don't want to get scammed and you want to have recourse. You want to have customer service.

Every reservation has $3 million of damage protection that is voided if you go outside the reservation. So in our case, historically, because we're a global network effect, it's a high, high consideration purchase with a lot of protections. We haven't had this problem. But we are now facing this because we just launched services. Now, travel services, like we have, you can get a chef for your area. Airbnb, you got a big kitchen, why not have a chef come over? We're starting to now see people booking chefs in their own city. And so if you get a chef and you love them, you might order them again. So we are now entering this. And it's really local recurring services where it's a risk

of disdemeanation. And the more it's local reoccurring services that are commodity, where the differentiation is not big. Like a chef, you might want the same chef, but you might want a different cuisine and so you might go to a different chef and so you know you might not use the regular um my view on this is we should do what's best for the customer not what's best for our business model in the end and if it means that we need to have a lower commission for repeat business or it means we have a different business model i think that's okay you know we are absolutely looking at loyalty programs things like that that could create incentives but i do think that you know you got to align your incentives we never want to have a commission structure where you have

an incentive to go off the platform. So if it's a recurring business, we should not do taking 15%. Maybe we don't take anything. Maybe take a release low percentage point, a low take rate, but maybe you also accrue some loyalty points, something like that. Yeah, you turn, you start building, you know, business in a box, right? Or starts something more like. The other way you can do it is membership, right? You can pay, have a paid subscription service where you just get access and then within that closed garden, you know, you can do whatever transactions you want. So I think it's just a matter of start with a customer work. backwards to business model. And I think there's a number of different business models here.

But I do not think a 15% take rate on recurring business model, a recurring service work. So the margins would probably be lower because you're not providing as much value, unless you're providing a lot of other protections. Yeah. Where do you think AI is overhyped and where do you think it's underhyped? That's a great question. I try to try to answer this without without you know pissing off any friends I might piss some people off right now I don't think I will okay here's here's my instinct Chachipit launched three years ago more than three this time

three years ago people were not talking about AI right October 2022 people were talking about Elon Musk buying Twitter like that was what people were talking about a little earlier people talking about crypto and people were not talking about AI and people that were like this is five or ten years away. And then Chachapiti launched late in November, 2022, and in the last few years, that's all anyone's talking about. There's an old saying people overestimate what they can do in a year and underestimate we can do in 10 years. I think that's true of AI. I think that people are wildly overestimating what AI will do to society in the next two, three, four years and they're probably wildly underestimating the impact of society in 10 or 15 years. I think it's

going to be slow and then all of a sudden. And so three years later, after the launch of Chat JubyT, daily life is not that much different for the average person. The top three apps in the App Store AI apps, Chatubit, Gemini, and SORA. Apps 4 through 50, including ours, or most of them, are not AI native apps. Most of us have some AI in it. We have an AI customer service agent. We think it's really great, but we're not an AI app yet. And so I think the real question is, when does AI change daily life for the average person? And the answer to that question is when do the top 50 apps, when do all those consumer apps become essentially AI apps,

AI native apps. Think of AI intelligence as like a gold rush. And in this case, the gold is intelligence. And so you have companies that are mining gold, those would be like the large language model companies like OpenAI, Anthropic, Google. And then you've got a whole bunch of companies that are basically creating picks and shovels, enterprise. There are very few companies using AI in the consumer space at scale.

In fact, I'm on the board of Y Combinator. Almost all the startups we are seeing are enterprise. There are not a lot of companies doing consumer. There's a couple of reasons why. Number one, I think some people are nervous about Chachapiti killing their startup. I think they're too worried. I think companies are too worried. I keep telling people, and I told this to Sam Altman, one of my best friends, that no one company can run the entire economy.

First of all, governments won't allow that. But second of all, it's just too much bureaucracy. in a company to do that. And there's a reason that when Apple created the iPhone, they didn't make every app in the app store. Because can you imagine how big of a bureaucracy that would have had to be for Apple to build Airbnb and Uber and Instacart and Instagram and blah, blah, blah, blah, blah.

So there's going to be a whole series of companies, but they're going to take time. My prediction is that in the next three to five years, not in the next year, you're going to see a huge boom in the consumer space of AI. And to me, the entire economy is going to be built around the consumer adoption. You know, enterprise supports consumer. And I do think enterprise is being adopted quickly.

Tools are becoming more efficient. But I do think the big question is, when does it reach the consumer's day-to-day life? And looking at our timeline of development, I'm going to assume we're a little bit faster than the average company because we're really focused on this. And we're still like, it's going to take a few more years for us to really transform the company to become an AI company. eventually we want to be every bit an AI company as the truly AI native companies, because I think every tech company is going to be an AI company or they're going to cease to exist at some point. So the question is, how long does shift take? It's not a year. It's longer than that. So you told Sam Altman, he can't control the entire economy. Did he say, I'm going to try

anyway? No, he acknowledged that. You know how this topic came up? It came up with the dev day, where they had essentially those SDKs. Yeah, yeah, the GBT's. And we were debating like, well, what would that be? And my very strong opinion was he said like, what's the role of apps in the world of chat GBT? And I said, I don't know how much different it is than the app store.

It might be a little bit different. But I don't think that every app is just a mere data layer. And by the way, I think what you need to do, unless you want to build everything yourself. And again, I think you have a whole different set of problems you try to build it in yourself is you need a really robust SDK. You're really robust SDK. The thing they launched was a first version, but it wasn't a very robust SDK.

We have, you know, we have a community. You have to have an account. You have to be a member of the community. There's a lot of things that precluded us from being able to have a really good integration with the current SDK as it is. But I think Chachibouti could be an incredible platform. Yeah. If there's a really robust SDK, just like I think, you know, like we can still have

app on the app store. Yeah. What kind of conversations do you think management teams are having around integrating with LLMs? We've seen OpenAI announce partnerships with Etsy, you know, Marketplace, Walmart, notably not Amazon yet or eBay. I'm sure those conversations are happening. But from your view, running, you know, scaled marketplace business, what kind of conversations

and kind of concerns or questions do you think these other players? have starting to integrate around agentic commerce around yeah agentic commerce and specifically integrating with opening eye when opening eyes ambitions are obviously incredibly bold and and they do want to own as much of the user experience I think as they can yeah I totally understand why a company want to do that I think that I think most these companies are thinking of this as an experiment at this stage I don't think that most these companies think that the amount of traffic or the business are going to get is meaningful yet so this is really about

learning and deciding whether you want to participate or not. I think a lot of companies are going to have to ask themselves, do you want to be a destination or are you going to be, or are you going to allow Chachapit be the destination or a large language model to be the destination? And I guess I have a unique view on this. I'm not an AI maximalist insofar that I feel like a few companies are going to own the entire internet. Here's why. Number one, the models that ChatGPT has that are in ChatGPT are available to everyone via an API. And if you don't use her model, you can use open source models that are three or six months behind. And for most things, a consumer cannot discern the difference between a frontier model

and a model three to six months behind it. Like if you need to have a travel concierge is playing your trip, I think a model like three, four months behind, I don't think you'll notice the difference for the average person because the queries aren't complex enough. So, imagine as a thought experiment, we replaced the name. I know this is not a perfect analogy. It's a little bit flawed in some ways. But imagine we replaced AI with electricity. And it was like 100 years ago when three companies had electricity and no other company

had electricity. Suddenly, these electric companies would have a huge advantage. But we have this mental model as if these companies are the only ones with electricity. Every company is going to have the access to all the same models. unless companies start limiting their models only to their applications. But then other competing models would then get more widely adopted because they will have an API so you have to make a choice. Do you want to limit your model or do you want to be like AWS?

And AWS, Amazon.com, does not get much of an advantage that they're part of the same company as AWS. They make a point about this, by the way. And so I think you're going to see a huge change. where on the one hand, we all have to decide how to participate with platforms at ChatGBTDBT. And I think if they build a really great SDK and we can still own the customer relationship, there's probably not a huge problem. It has to just be integrated correctly.

At the same time, you have to remember, we're also going to have nearly as good AI, right, via the fact that even if we don't produce our own models, there will be an entire economy that will allow those models to be accessible via API. There may be some advantages of the companies that build apps within. And so I think we, then it goes to the mental model. Do you want to go to one destination that then is like a macro agent that connects to all other agents? Or do you use different apps and those become different agents? So now we're starting to debate these mental models.

And there's a tradeoff. The tradeoff is the advantage going just to chat TBT is now one agent can kind of cross-pollinate and organize everything. But then if the SDK is limited, it will be not as powerful as going to, direct to the app, that is an AI app that can go really, really deep and do your job really well. And so this is the balance. And where do I think this lands? Where I think it goes is I think Chatsubit has to build an SDK that's really robust and it will be just a channel. That's my guess, but we'll see. And I might be wrong. But just remember that like all these companies are going eventually have access to AOT.

And so we're going through this whole electrification, so to speak, period over the next three years of putting the latest models into our apps. And for us to do that, we have to basically rebuild the apps from the ground up. Yeah. To go back to Airbnb a little bit, I'd love your take on where culture is going in the era of online and offline content. There's this weird tension where everyone's brain-rotted on TikTok watching five-second videos, but the Taylor Swift Era's tour

is the biggest concert and everyone's talking about it or the sphere in Las Vegas is this place where people go to visit run clubs are really popular. Yeah, the other thing, there's some quote. I don't know who to attribute it to,

but like when an American has like a free week, they want to immediately go on vacation and experience somewhere new and that feels really enduring. And so I feel like you're in a unique position to kind of comment on like the runaway brain,

brain rotification of American culture versus like touching grass, basically. Yeah, I think it's a great question. And when I came to Silicon Valley, there was this thing called social networking. And social networking was literally, as you can recall, 20 years ago, a way to connect with your friends. Basically, people I cared about shared stuff they cared about. And social networking may be the most popular product of all time that was invented and then uninvented. It was literally

uninvented. Because around 2012, it became social media. And the moment it became social media, your friends became your followers. You stopped connecting. You started performing. And social media is now becoming not social. Because pretty soon the feed became algorithmic,

not your followers. And now with SORA, the content is going to continually become AI. And so pretty soon, the name social media is not even the appropriate name. I'm not sure I'd call Sora social media. I don't know how social it is right now. It's really AI media, if it's anything. And I think AI media is going to be where this goes. And I think the problem with it, well, maybe it's a

problem, maybe it's not, but the name artificial intelligence, AI, the key word, I think is the first word, not the second word, artificial. And I think what's going to happen is more and more what's on a screen will be artificial. Not to say it's bad, but it'll be like a fantasy land. And increasingly, I like to say you want to ride a trend or ride the opposite trend. And so if we're basically creating this fantasy digital realm that is highly artificial, I think in reaction to that, people want what's real. And the way you're noticing this, you look at Gen Alpha, you know, really young people, they're actually some of them adopting social media less.

They're starting to see some of the adoption of social media go down. And there's an enumeration with the 80s. Kids born after the 80s are obsessed with the 80s now, a bygone era that they weren't a part of. before technology took over people's lives, right? There's like this nostalgia, and we see it because we do these like pop-up experiences that's based on nostalgic, and like young people are obsessed with them, especially eras before them, and concerts are more popular than ever.

People now, Americans go to Europe on vacation more than ever. Like, how many of your friends do you know that go to Europe for vacation? And 10, 20 years ago, they weren't doing that. So people are looking to get away and have experiences. And so when AI automates everything or more and more things, I don't think AI is going to change how we go on vacation, the physical aspect of it that much. It might change how we book it, how we connect. But we want to be one of the companies that are getting people off their phone. If this was 20 years ago and you were like time traveling to today, you would remark how the world looks almost identical than 20 years ago physically, except now people are looking at these pieces of glass all day long.

What is in this piece of glass? And they're just in this vortex. And I think increasingly, I think you're going to see a little bit of a reaction against that. This is not an anti-phone like rant. This is not an anti-AI thing. It's just about the fact that we need to have a balance. Do you ever notice that devices and screens aren't usually in your dreams? There's something about the digital realm that doesn't quite stick in your memory the way physical experiences do.

And I think increasingly, if AI frees up more of more of our time, and hopefully that time can be spent in the real world having meaningful experiences with people we care about. And to me, that's what life is really going to be about. And I want to be a part of that. I want to be a part of getting people off their phones into the real world, meeting people, making the real feel smaller, having cool services, having cool experiences. And most these jobs that we're going to produce or like workforce is not going to be automated by AI anytime soon. I don't think you want a robot massaging you or pouring you wine. And so I, just think there's AI is going to lead to this acceleration of really AI media which I think is

going to push a lot of people also into the physical world just as you're saying. I think people will slowly wake up that that Airbnb is an AI bet but not because you guys are going to use all the different forms of digital intelligence but people are people are going to increasingly just want to log off. Last question if we have time. How do you see the the role of the designer evolving with various Gen A.I. Tools, it feels, in my personal experience, the value of great designers is actually just going up. I want more of their time. I think they're commanding even higher and higher premiums. But I'm curious what your view is. I think I would agree with you. You know, it's funny. Just a quick story. When I started in Silicon Valley, I remember I pitched

an investor. And one of the investors, I give him credit for being brutally honest. Because the end a presentation, he said, I like everything but you and your idea. That's what he said. And I was, I wouldn't, I didn't think that was an insult so I got home and I thought, well, what else is there? But he basically said, he was basically implying two things that didn't seem like, they seem reasonable. Strangers won't live in each other's homes. Okay, that, that seemed like a reasonable conclusion. And designers don't start tech companies. And it seemed plausible. And there weren't really a lot of role models. The closest thing to a role model I had was Steve Jobs. I don't know if people thought him as designer. I kind of did. But then, you know, when he passed, there weren't really

a lot of other iconic founders that came from that kind of world. And I view design as a huge differentiator. And in a world where, you know, software programming is a language and AI is really good at language. And English to Spanish, English to a software language. I think the role of designer is going to be really important. And also, I think everyone's going to be a designer, whether they want to call themselves designers or not. Engineers, marketers, other people are essentially making design decisions. So then the question is, well, what is design? I don't think design is how something looks. It's fundamentally how something works. Design is an assembly. And I think the role of a designer is similar to the role of an architect of a building.

And engineers are the ones building the building, but I think the architect is going to be one of the most important roles. And by the way, an engineer can design. I'm not saying they're only designers doing this. In fact, I think the AI tools will allow more people to be designers because you won't need to be a craft person. You just need taste. And I think more people can learn taste than can get through the craft. And this allows engineers, designers, and everyone to be designer. Now, some people will be better designers and there really is going to be an expertise around design. But it's going to be about taste. It's going to be about intuition. And intuition is not this like just gut feel thing, like a vibe. I think intuition is based on your

expertise. And one of the things I learned about great design is great design is simple. And simple isn't about removing something. Simple is about distilling understanding something so deeply. You can distill it to its essence. And so I think great design is about making the complex simple, about caring about every detail, about having taste. Taste means having a sense of culture and history and where the world is going. And it's really about systems-oriented thinking. This sounds a lot like the skill sets you need in the age of AI. And so if we believe that, then yes, I do believe that like suddenly more people can be

designers because it's going to be much easier to build things in the age of AI. So I'm very, very bullish. And I thought when Apple rose that would lead to the creation of all these designers as founders and designers being Elved in Silicon Valley, it kind of, it kind of did for a moment and then it kind of subsided, I am very optimistic that generative AI is going to, like, you know, really lift design in the world and make it one day equal to engineering. I think that, I don't think that's a crazy thing one day. Last question for me. We started with a bodybuilding question. What was it like being a bodybuilder at RISD? Were you a fish out of water?

It feels like, you know, bodybuilder, I expect like, you know, SEC school or something. But was that a weird experience or was that just like normal? It was weird. And I was a weirdo at college. I'll be honest to you. The way I got into bodybuilding was I was an ice hockey player growing up, but I was very skinny. I was 100 pounds freshman year of high school. And I went to a sports academy, like a prep school for ice hockey, and I was way too small. And my junior, my senior high school, I was 125 pounds, and I broke my leg playing ice hockey. I had to do physical therapy.

And I was kind of like an overachiever. And I decided I was going to start bodybuilding. And I got really, really into it, kind of obsessively into it. And I remember my friends were teaching. teasing me about how skinny I was. I said, I'm going to be one of the most muscular teenagers in the country. And I got into bodybuilding. And I loved it. And the reason I loved it, and I ended competing nationally as a bodybuilder. And I loved bodybuilding. And it was before anyone in tech was like working out or anything. Like it was kind of weird back then. Now a lot of tech

founders have trainers and are really into longevity. Creatine what? Yeah, exactly. No one knew what that was back then. People thought creteam were steroids. Like they couldn't discern the difference between the two. And I learned a couple of lessons from bodybuilding, too, that I bring to Airbnb. The first lesson I learned is you can change your body, you can change your life. And I was a kid, my parents are social workers, and I didn't grow up in an environment where you thought you could change your life. I kind of grew up in an environment where a lot of kids didn't leave their hometown. And so to be a tech founder, to kind of design the life you want to live, that didn't seem like anything that someone told me growing up. I think we take it for granted,

but a lot of kids watching probably come from hometowns where that doesn't seem possible. If you can change your body, you can change your life. And it's almost the most tangible thing to change is your body. The second thing I learned from bodybuilding is you can't get in shape in one day. Like there's no one workout. I think that gets you into shape. It's consistency over time. It's true of tech.

Maybe you can have a flash of an idea, but you're not going to build a company in a day. And it's better to just be consistent, even if you have some bad days. And so you build your body one repetition at a time and you build your company one day. day at a time. So these are some of the things I learned. But at RISD, I was totally a fish out of water because, you know, you have to eat a lot of protein. So I would walk around campus with like half a dozen hard boiled eggs, chicken breast. I'd pull them out at very weird times. I would keep sometimes like a steak and a Ziploc bag in my pocket and I whip it out. You'll appreciate it. People thought it was pretty weird. But that dedication I just didn't really care. And I'm glad I did it now

than I'm 44 because it keeps you, keeps you feeling young. You'll appreciate my, I got quite into weightlifting in college. My hack was I would go to the school cafeteria, all you can eat, and they would let you bring, like, sandwiches out. That was the one thing they allowed. And so I would take a sandwich and I'd make a hamburger puck of peanut butter, and I would bring two, between breakfast and lunch, I'd have two peanut butter sandwiches that were just like a full puck, and then do the same thing between.

lunch and dinner. And then for dinner, I'd have two more. So I'd be having. Bullking. It's bulking. I know all those stories. Waking up in the middle of night to chug egg whites, all those kind of things. At my cafeteria, you had this meal card. And if you don't use your meal card credit, you lose it. And a lot of the women wouldn't eat as much. And they would basically have all this meal credit. They would lose them in the year. And so I made friends with them, and they would give me their meal credit. And that was how I got my protein. That's amazing. Do you follow the sport today? Are you a Sam Sulek fan, a Chris Bumstead fan, or are you too busy with Airbnb?

I'm pretty busy. I follow it a little bit. I like the classic bodybuilding more than the open class. It's just gotten kind of out of control, in my opinion. I got the honor to meet Arnold Schwarzenegger and trained with him at Gold Gym Venice. That was kind of like a dream of mine. That was really cool. But I don't follow the sport too much anymore.

But my trainer was a former Mr. Olympia competitor. Oh, no way. Very cool. Well, thank you so much for hopping on the stream. This is a lot of fun. You guys. Lessons on bodybuilding, company building, life. Yeah, we covered everything.

We'll talk to you soon. Have a great rest of your day. Great hanging. Goodbye. Before our next guest hops on, let me tell you about Google AI Studio, the fastest way from prompt to production with Gemini. You can chat with models, vibe code, monitor usage, and more. And let me also tell you about profound.

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has risen. SAS has risen. Of course, the first company I looked up, Salesforce, up 3.5% today. Let's go. Let's go up for the chief mauging officer. Money off. Back in the game. Yeah, yeah, for a while, you've been, you've been like the AGI Bear,

AI SAS bowl, where you've been like, it's all SaaS, it's all SAS. Every time I get a pitch for AI agents, and it's like, It's sad. And you've been dropping it like a hot take, but you're not a doomer about it and you're not like, it's nothing. You're like, it's the best. It's actually the best. It's a bunch of opportunity for entrepreneurs. There's a bunch of opportunity for business efficiencies. I'm happy. I'm happy about it as long as you're focusing on what matters. Proper enterprise workflow. It's a bad day to be a manual workflow. That's for sure. That's for sure. Did you see this picture? It looks like somebody found. uh them filming the open a i is this real or is this just someone dressed up as ilia so this is chichipt 21 says this movie's going to be sick and it looks like looks like joseph gordon levitt oh you think so he's supposedly playing ilia right yeah maybe oh it does look like him he's playing ilia that it would make sense that they would film in san francisco yeah yeah this is going to be a wild movie i can't believe they're making a movie so soon it feels like it feels like the uh the facebook

story kind of marinated for, I mean, I guess what, Facebook came out in 2005, yeah, it might be sloppy. Facebook came out in 2005 or 2004, I think they actually launched, and then the movie came out in, what, 2011? 2010, yeah. So, Facebook was, you know, had five years to simmer. It feels like, I mean, I guess opening has been around longer, but really the narrative started with ChachyPT. Anyway, wild, wild, going to be a good movie. Hopefully it pumps some people up. We'll see. It's probably going to be a brutal hippies. I wonder if we're going to see any releases of who's playing Roon. I would love to know who's playing Roon.

If they don't, if they don't include Roon. They should, yeah, they should just do it. He should be the animated character the whole time. You know how like in Who Framed Roger Rabbit? You know, you haven't seen this? You haven't seen it? Who Frame Roger Rabbit? Who Frame Roger Rabbit is one of the first movies that was shot with film,

but then they animated characters, cartoon characters, over the film. And so the cartoon characters interact with the real humans. And they, like, interact with each other in this funny, interesting way. It's the whole premise of the story is that, like, the cartoon characters broke out of their cartoon and, like, exist in the real world,

something like that. And so I would love to see Roon played by an animated character throughout the whole film. That would be pretty wacky. Should we go to Apple? David Sun says, A supreme shape rotator can only rotate shapes, but a supreme word cell can rotate shape rotators.

Yes, this is a quote of Mark Andreessen saying, IQ experts work for mid- IQ generalists. What means? Yeah, I don't know if it's fair to go. Steve Jobs, a mid-IQ generalist. But, yeah, Rune said this as well. The world is run by smart generalists, smart generalists. There are no experts. What's this launch video from Apple? Let's pull it up before. They probably planned it on linear, a purpose-built tool for planning and building products. Meet the system for modern software development. Streamline issues, projects, and product roadmaps. and if you're buying an iPhone, they better pay their tax on numeralhq.com. Sales tax on autopilot. Spend less than five minutes per month on sales tax compliance.

Okay, let's pull up this video from Tim Cook. And then we have our next guest already in the re-stream waiting room. We'll bring in Stewart. Every story you love. Very simple. They're launching a browser. They already have a browser.

They're launching adult content. You see that? You see that? You can type whatever you want. They're not going to delete it if you go there. They're all in. Just a flicker on a screen. Who,

Apple intelligence is coming to pages. This is, What do you see? This is Jane Goodall. Is this a new Mac? MacBook Pro? Is that where we're getting? I don't know. It seems just like a pro Apple creativity vibe real. People were saying it's kind of like a return to the roots, more like anti-AI. Great ideas start here. It's just like... It's a Mac ad.

It's a Mac ad. But was that even a Mac? That looked like a iPad to me. Was that a Mac? I don't know. It was a Macbook. But it's, but it hits extremely emotionally because that ad is voiced by Jane Goodall who passed away on October 1st of this year. She was, of course, the British primatologist. She studied monkeys. She studied chimpanzees. A very noble, noble cause.

Does she own a board ape? I don't know if she ever got into the board aid game. I'll have to figure that out. Jane Goodall would have loved. Extremely disrespectful to her legacy. Let me tell you. How is that disrespectful? Because she's one of the most revered science and the most valuable aides in the world.

And you're trying to drag her down into the D-Gen mud. You're tarishing her legacy journey. It's on-chain art. Stop. Before we bring in our next guest, let me tell you about fin.a.I, the number one AI agent for customer service, number one in performance, Benzmarks, number one in competitive bakeups, number one ranking on G2. And before, before, before we bring in. The new MacBook Pro is available starting tomorrow.

Yes. I'm going to buy one. Mac, M5, which is almost as fast as an M3 Pro and almost as fast as an M1 Ultra. It has this weird, like, thing. Oh, it's not better than... It is the best MacBook you can buy right now, I think. Okay. I'm not sure.

But there's some, like, plateauing going on in the M world. We'll have to dig into it. Anyway, we have Stuart Lansberg from Seneca in the Restream waiting room. Let's bring in Stewart. Welcome to the stream. How are you doing? Welcome. Doing great.

Thanks for having me. Great to have you on. join us. We're, we're both excited for this one. Yes. We, uh, we, we hate fire and we love water. We, uh, I live in Malibu. John lives in Pasadena. The beginning of this year was super chaotic. Fortunately, our homes didn't burn down. Yes. Um, but we had a crazy start to the year. And we're looking, uh, and excited to see more companies working in the space. That's great to meet. Yeah, I would love to keep for you to kick off with an introduction on yourself and the company and, uh, and then we can get into the news. Sure.

Well, thanks for having me, and sorry for you and for all the folks who live in Southern California about what happened earlier this year. I think, you know, it's a story we've heard too many times in California, and that's a big part of why I'm here and why Seneca exists. I've spent the last decade and a half as an entrepreneur and doing other things in technology, but over the last few years, it's become, I think, increasingly apparent that building physical things that can solve real-world problems. We need more entrepreneurs like doing this kind of stuff and maybe fewer people

building, I don't know, the things that are fast to generate financial returns. Infinite jets. Exactly. The slot machine, the trough. Yes. Where are you on the farm? You're helping put out the fires on the farm, right? We're big into farming analogies.

Anyway, give us the news, what happened? So started this company, started working on it about a year and a half ago, doing research, doing ride-alongs with fire agencies, and was amazed at the quality of individuals that we have in the fire service, and amazed that most of these people are doing their jobs. And remember, these are people who literally run into burning buildings. They're doing their job with technology that is, in many cases, from the 60s and 70s, right? It's for people who lost... Before that, when did we invent the hose? Probably hundreds of years ago. We invented buckets and hoses, and that's still, you know, key to the fight.

Yeah. Yeah, it's amazing. And so you look at what we give to the warfighter, right? The other people who we rely on to keep our communities safe. And then you realize that aerial attack, which is so necessary, right? And you saw in the Palisades and in Paradise, right, you couldn't get aircraft up in the air, how bad that was. is still largely using manned helicopters on platforms from the 60s and 70s that cost tens of millions of dollars.

And we all know what's possible in autonomous aviation. So you put those two together, and it became really clear there was an opportunity to solve one of the biggest problems in fire, which is how do you get to the fire before it becomes too big. So put together a good team announced yesterday that we raised $60 million in starting. Appreciate the gone. Congratulations. Thank you for that moment.

Raymond Thompson. Caffeinated capitals. Thank you gentlemen. Let's, I want to get into the specifics of the early product and kind of how you're thinking about, obviously wildfires are a big problem. You can't solve everything to do with them, but, you know, why drone-based system and kind of where is the early focus? So when I first looked at the problem, I assumed that we would go structure by structure.

But when you talk to folks who are really deep, two things become clear. The first is almost no structure is safe if you have a fire like the Palisage, right? The flame lengths are too long. It's just too dangerous. The second thing is the holy grail of fire is really how do you get to fires before they become big? And a lot of times these fires start in places where it's like windy roads. They're not near a fire station. They're up in the wild land.

And so the only way to get there is through the air. And so then you say, okay, well, what we did, we built a fire. model and said, what's a 5% risk fire? How quickly would you need to get there? How much suppression payload would you need to carry? And do the physics work? And once we got convinced the physics worked, we're like, do the economics work? And the answer in both questions is absolutely. So we fly small fleets of autonomous suppression copters, as we call them. And they carry about 500 pounds per trip. They sort of can go round and round and round, load and refill from an engine. And the goal is to, a lot of use cases, but the best is to stop an incident before

it becomes something like the Palisades. Yeah, I don't know if you know the story of the Anderil firefighting tank. Are you familiar with this? One of the first projects they worked on was an autonomous tank that would fight fires. And apparently they ran into a ton of pushback from firefighting communities that said, this is job displacement. We're worried about that. How have you frame this technology as like fitting in and augmenting the firefighter as opposed to replacing them? So I think Andrew does better than anyone understand that the job is not to replace the warfighter, but to give them superpowers, and I'll use their market copy.

Our specific philosophy statement is to build advanced technology to support firefighters in situations that were previously unsafe, inefficient, or impossible, right? And so we think about all the utility lines out there. It is literally impossible today to be able to get to those quickly. And so you need technology to do that. You talk to firefighters today like, okay, there's a start on the ridge. You're joking about like buckets and, but literally they're hiking up in the heat with backpacks that have like a couple of gallons of water and an ethics.

They're this tool called a Pulaski. It's like half-ax, half shovel. And so we're not trying to prevent those guys from getting up there. We're just trying to make sure that if you've got an aircraft, that you can take off instantly. By the time those folks get there, hopefully there's something that's under control enough

that they'll be able to do their jobs. Are you guys focused on detection at all? Because, I mean, when I think about like Malibu specifically, it's the area that I've obviously spent more time thinking about than any other area with wildfire risk. It's like you have homes basically around PCH

and then you have all this wildland up in the mountains that nobody's around. So, like, theoretically, a fire could start or, you know, could start on an electrical due to an electrical line falling. But how do you actually, like, how does the discovery of fire happen so that you guys can bring the response? There's a lot of good work that's gone on in detection. There's satellite-based detection.

There's sensors. There's cameras. There's people with cell phones. So the detection problem, it's not. not solved, but it's getting there. The big challenge is that it can take in 30 minutes to 60, 120, sometimes it takes days to get to a fire if it's really inaccessible. And at that point, it can be too late. So we're really trying to fill that gap between, okay, detection is a problem that we sort of know how to solve. Fast response is something where there's only one solution,

there is no solution today. And that's really where we exist to stop. And I will say, you know, a situation like Palisades, the difference in getting there from like, you know, one minute to 20 minutes. Fire growth is exponential, right? It could be 100x. Yeah. How do you think about making the drones fireproof? I remember watching videos of like those huge,

they look like 747s like dumping like tons of fire retardant. And it feels like they actually don't really need to fly through smoke, but do you need to harden the system or can you kind of use off-the-shelf componentry? Well, there's a fire truck pulling in right behind you. That's it. Now you know it's real background. That's a great background. You time this up perfectly.

But yeah, just hardening for heat, smoke, is that relevant? Or can you just fly above it and it's not a problem? So, yes, it's relevant. Number one and number two, if you go out and test on the field with firefighters, you can see it in this video, you've got to be really careful, right? If you put a helicopter above a fire, you're going to put a lot more air on the fire. And anyone who's ever blown on a campfire, no more air does to a fire. So if you want to build a drone-based system, we built a proprietary, got to be super

lightweight because you're flying with it, super high pressure pump, like a water cannon that sprays foam, and we spray it out of the rotor wide. So it can go 40, 50 feet from the air and hits the fire with pretty good precision. So anyway, that's like one of the core design elements. You end up having to deal with smoke and obstacle avoidance, and it turns out that some of the like IR stuff and it can get tricky. But in practice, you know, hopefully if you're doing your job, you're in and out relatively quickly. Yeah. What about, what about, uh, wind, wind conditions? I'm sure you've tested it in a range of, you know, different conditions. That was the big problem with

the Palisades fire. Was there was so much wind all that week. It was crazy. Wind is, is going to make any fire hard when it comes to aerial response. Just always, like, should start by acknowledging that. Yeah. That said, the risk profile, when you've got a $30 million helicopter with two firefighter pilots in it versus a couple hundred thousand dollar piece of hardware that's autonomous. I mean, they're not on the same level, right? So where you have to have a 99.99% chance of success in one mission, you know, could you take a risk in higher winds with a robot?

Absolutely. Sure. It's the first thing. The second thing I'd say, if you look at our aircraft, right, a lot of drones are sort of agnostic about front and back. The whole thing is meant to be super aerodynamic. We have about 100 acres in Sonoma. That's our test range.

And when we fly up there, wind blows 30, wind blows 40. Sometimes wind blows more than that. Aircraft dead stable in the air. Doesn't mean that we're going to recommend it for 40, 50 mile an hour winds. But we absolutely think hard about this is valuable a lot of the times, but it's most valuable when literally nothing else will do the job. Yeah. Okay, last crazy sci-fi idea for me because I've spent a bunch of time thinking about this.

So I get like a small discount on my fire insurance because I have good fire sprinklers in my home, like a modern system. And the home that I own previously before I owned it burned to the ground because a single tiny ember had like flown and gotten caught in the roof in this one area. and nobody was around, so the house burned down, even though there wasn't like a wildfire in the neighborhood. And so I was thinking at some point, and I'm sure you've thought about this, I'm curious how you think about it, you could just have a drone-based system

that effectively had a fire extinguisher attached to it that would just monitor your property if there were wildfire conditions. Why or why not is that a terrible idea? D to C instead of B2B. Yeah, where like I would go to Seneca and be like, okay, I want to buy one of your drones and park it on my roof,

so that if there's a fire and I have to evacuate it, it will monitor the property. We're hiring on the sales team. Do you want? I love it. In another life. Yeah, one of the really big challenges, everyone understands, right? 90% of structure loss is ember-driven,

which are for those who don't know, it's like a little spark that's floating in the wind from house to house, basically. And aerial suppression is the best way to get those because they often hit the roof, also an obvious common. But you're really limited in terms of, of air resources. The Seneca systems are made to be stationed remotely. So if you're part of a community that's in a high-risk area and you say, hey, I want to think about how do I defend

my community? We're not meant to defend house by house, right? That's the wrong way to do it. If your neighbor's house is ripping, you know, it's going to be hard for even the best systems in the world to keep your home safe. But if you can protect the whole community, that has real promise. And so the systems are built to be able to be up in the air. It's relatively easy with an IR camera to spot like a tiny start on the gutter and the roof, whatever, right, gets caught in these little mesh pockets or on the side of a deck. It's really easy to spot those. And then, you know, Class A foam is not exactly, which is what we shoot. It's not exactly what's in a fire extinguisher. Sure. But it rhymes. So absolutely, we think about structured defense,

just like all the firefighters do, right? This is a core part of how we make sure that we wildfires, you know, don't prevent us from living in the American West, right? We have to have to be able to protect our communities from fire. Well, thank you for everything that you're doing. Congratulations. I'm so glad. So happy that you're building this company. Yeah, this is amazing. I think we probably talked about this exact idea back in January. And I'm really glad to building it. Good luck. And we'll talk to you soon. Have a great rest of your day. Great to meet you. Thank you, gentlemen. Be well. We have our next guest in the Restream Rating Room while we bring him in. Let me tell you about

Adio, custom relationship magic. Adio is the AI Native CRM that builds scales and grows your company to the next level. We have Daniel Glassman from Samsung. Imagine putting Adio the CRM on your TV, on your Samsung Smart TV. That would be beautiful. That would be a beautiful. How are you doing? What's going on? Welcome to this show. Thanks for having me. Please kick us off with an introduction on yourself and the news today. Would love to get the update. Yeah, Dan Glassman. I lead a new business development team at Samsung cross-device, both TV and mobile. So working across AI, gaming, are a host of other different initiatives. And today we had an exciting announcement. We announced that Perplexity is now live on Samsung TVs. Hit the gong.

Congratulations. How does that work? I feel like, yeah, I feel like Perplexity. I got to type a bunch. But here's my, here's my thesis on why this makes sense. A lot of people want to have hardware, AI hardware devices. Oh, yeah, that's right. You guys are sitting there. You've got TVs and millions of homes. Why not integrate it so that people, I imagine, is the workflow, you can just ask a question to your remote effectively and it'll bring up whatever you want on the screen. You nailed it.

You nailed it. Yeah. So we have a new 2025 devices. So our freshest lineup, we have a new AI button, hit the AI button. And there's an AI home. We have a first party agent. We have perplexity. We have co-pilot.

And really, I think they're on a host of endemic use cases, right? Like what to watch tonight, I think like cavemen and cave women were arguing over what to put on the wall in their cave. And we face that same issue. And I think search has been broken for so long on TV. And so this is maybe one step to help improve search. Yeah, I mean, just the other day, I went to Chat Chupit, actually. And I asked, like, what are the latest, what are the best documentaries? in the last 10 years, maybe true crime, maybe business focused, but I don't want anything that's

too depressing and I wanted to have over 70% on Metacritic and this and I had like seven different filters and it wound up pulling up like 20 different options. And that's something that is just so natural for an AI system for an LLM. And why not just have that all baked into one system. So yeah, excited. That's really cool. Yeah, absolutely. And I think there are also a lot of orthogonal use case is non-media, right? Like, I'm constantly on the couch trading my phone back with my wife around home renovations or trips we're planning. And so being able to query and saying, like, I want a trip an hour away and have that come out on the TV with hotels and options and then take action. I think it really goes from this one-to-one use case of querying a mobile

agent to more of a communal, let's call it, like couch-adjacent AI experience, which, you know, is phones down, which I think is really neat. Yeah. How do you think about, oh, sorry. Yeah, I was just going to say, how are you thinking about partnering with other companies at the AI application layer? Yeah, so we launched perplexity. We also have co-pilot integrated into our TVs as well. I think we want to bring users' choice. We have our own companion, first party, Samsung developed. People have affinities to various different agents, and we want them to be able to translate those affinities to the, to the TV. and they all have, you know, their own strengths as well.

Awesome. How are you thinking about the trade-off around features, which people want every feature individually sounds awesome, adds a bunch of value versus like product bloat and just adding so much that it becomes overwhelming and surfacing the right product at the right time? That feels like a really big challenge, but how is the trade-off?

How do you think about that internally? Yeah, that's a great point. I mean, we've seen this as we've kind of expanded the aperture of use cases on the TV. So, you know, 10 years ago, we launched art mode on the TVs and art store on frame TVs. We're trying to redefine the black screen on your wall. And then we launched cloud gaming with Xbox and GFN and Amazon Luna. So console list cloud gaming. And like each step there, we've had to figure out how do we create like the fastest path to engagement? And it's a work in progress, how you balance choice and feature

overload with getting people into really frictionless experiences. So I think it's a work in progress. Having a button on your remote is helpful just to get right in there and then to be able to query directly with voice. But yeah, we're working on. Yeah, I was about to say I have a Samsung frame TV. I have a PS5 plugged into it and I open up the frame TV and it was like, do you want to play the game that you had in mind on your PS5 but cloud stream it? And I was like, I know I don't have an account. So yeah, having an AI button that's just like actually just switch the source to PS5 because I know I have the game installed already. Like I can speak more naturally and that makes a ton of sense.

Well, congratulations on the partnership. Thank you so much for stopping by the show. It's great to meet you. We'll talk to you soon. Thanks, guys. Appreciate it. Have a great rest of your day. Jordy, get ready to play the biggest sound cue you've ever hit because I got a

99 on my 8th sleep last night. 99. Eight hours, 19 minutes. It's incredible. That's 100% on quality. 98! Oh, we're on a roll. We're on a roll.

I don't know if we've ever gotten that close to both getting 100. That is fantastic. Go to 8Sleep.com, by the way. Yeah, after the AWS outage, back in the game. Yeah, yeah. Back in the game. It was just training your body to work harder, to sleep harder. It was great.

Anyway, we have our next guest in the Restream Waiting Room. Harrison from Langchain, let's bring him into the TBP and Ultron. Harrison, how are you doing? Welcome. I'm doing well. Thank you guys for having me. Excited to be here. Thanks so much for hopping on the show.

would love to get a brief update on where the company is. I think most people are familiar loosely, but I'd love for you to just break it down for us, and then we can go into the news today. Yeah, absolutely. So we started as like, so companies laying chain, we started as an open source project about three years ago,

almost like this Friday is the three-year birthday, so we'll do something fun for that. And then started as a company a few months after that, right in the whole hype of the whole, you know, Chad GPT, gen AI cycle, and have evolved from an open source package into a whole company. We have Python and TypeScript packages and a platform now that's used by a number of sponsors here, including Fanta and Finn.

I saw the commercial for them earlier. Thank you. And yeah, we've grown up into a company. Awesome. And give us the news today. I want to ring the gong. Get that gong ready. Yeah, we're excited to announce a funding round of $125 million at a $1.25 billion valuation.

amazing let's get into the specifics of like what kind of the core product focus today and and how companies are yeah i'm super interested in in comparing uh how your approach is working relative to there are like no code agent builders there's all these different building blocks then then if you go to yc you can kind of get an agent that's pre-built about anything for as a SaaS product so walk me through some of the customer use cases, like, how are people actually getting value out of Langchain? And how have they evolved the way they work with Langchain? Yeah. So, okay, so core thesis, we think Al-LMs are great. We think they're going to transform what applications look like. We think they're way more interesting when you connect them to data and

APIs and build these systems around them. And that's what we in the whole industry call agents now. And we think it's quite hard to build these agents. I think, you know, there was Carpathy did a great interview the other week where he talked about the decade of agents and how we're not super close to AGI. And I think that's totally true, and I think it's quite hard to build these agents. And so we've really focused on going almost down the stack and providing more low-level tooling to build these like mission-critical, reliable agents. So comparing to some of like the no-code solutions, which I would argue are mostly used for like internal productivity things, we're much more focused on like external facing or mission-critical things. So there's a lot of, I mean, Finn's a great example of a customer support bot, like it's external facing. You're going to have an engineering team building it.

The interesting thing we've seen is that we, again, we're primarily like a pro code platform. Yeah. But a lot of the evals, a lot of the debugging, a lot of the prompting happens from product managers and designers and subject matter experts. And so that's really where Langsmith, which is the platform we're building kind of comes in to bring all those worlds together. Lang Smith. What does your token consumption look like? I imagine that I should think about you as like a SaaS company with great margins and stuff. You don't have to go into exact details, but it seems like you're not in the token reselling business, the buy from the token factory, resell intelligence. It feels like you're building more of like the proper shovel for the gold rush. Yeah, that's exactly right. Some fun news. One of the things we announced today is an agent in our product. So it's actually the kind of agent in the product. And basically what it does is it will look through all of your agent's logs.

Basically, one of the things that we saw is that people will put, you put these chat boxes in front of people, and they ask anything under the sun. You have no idea how folks are using it. And so people want, in a big part of making these agents work better is understanding how people are using it and then bringing in the right tools, bringing in the right data for those use cases that people are trying to actually use it for. And so those types of insights typically done by humans, we now have an agent in the product that will help with that. But yes, generally our token consumption is very low. Yeah.

What are you seeing, what's coming down the pipeline on the consumer side? Obviously, engineers are using coding agents. You have agents like deep research that are search focused. But what's exciting to you on that front? Yeah. So you mentioned kind of. I'm coming from the framework of like the decade of agents and that like what we were sort of maybe promised last year that that people said would get delivered this year is maybe just taking a little bit longer. So one of the one of the areas that I'm most interested in is this idea of what we call deep agents and basically built upon the idea of deep research, Claude, Manis, all of these general purpose agents that that do run for an extended period of time and are actually

there are quite simple algorithms under the hood, but there's a lot of like prompt engineering and context engineering that goes in. And so deep agents is kind of like this agent harness that will help power a lot of these more longer running things. And so to answer your question, I do think things like deep research, we see everyone building some version of deep research. Like it's just such a good kind of like product fit. Not only because the agents, especially for some of the search things, they're good at it. But in terms of the UI, ux i think it's a quite natural fit because basically it runs for an extended period of time but it creates like this first draft of something and if you think about AI in general it's always struggled with like

the last mile problem like it's easy to get to 80 percent 85 percent and so if you can if you can come up with like products where AI will do still a sizable amount of work but you have a human in the loop when it gets to the end and it can reveal it and it's basically creating what we call like a first draft I think those types of products are really well suited to be kind of like the next gen of what we see come out. Yeah. With the raise, I imagine growth has been fantastic. Institutional venture partners, they're not ripping checks on a whim. But what's been the secret to growth? Has it just been a bunch of great customers that have been scaling up consumption and their lank chain bill is going up? And so you're making more money. Have you been moving up market to the Fortune 500?

have you been just onboarding tons and tons of new companies, maybe a combination. But how should I understand the way the shape of the business is changing? Yeah, it's a combination. I mean, everyone's doing stuff with Gen A.I. You know, we have Gen A.I native companies that are big customers. We have big enterprises that are big customers. Everyone's doing stuff there. I'd say, you know, of our revenue about like 30 to 40 percent,

comes from our self-serve to maybe give some kind of idea there of just the split. So it's a pretty even split. Like I think we, and so we see everyone kind of doing things. I'd say in the past, it has been a lot of the consumer-facing companies, there's kind of this interesting dichotomy of use cases. So consumer-facing use cases are like really high volume, but they're generally like shorter interactions because latency is still really high. Yeah.

It matters a lot. And so we see like a lot of. our usage coming from these consumer-facing companies. But then on the other end, you have these more B-to-B companies where the agentic workflows are just much more valuable. Like, they're doing way more work. And so there's maybe like fewer of them, but the ROI that they're providing is like much higher. And so the way that we charge is basically usage-based. And so a lot of it comes more from the consumer side of things. But we see that there's a ton of value on the B-2-B side as well. How are you thinking about the open-source strategy? What are your role-model

companies there. I'm always fascinated by this. I know the story of Red Hat Linux a little bit, GitLab. There's a bunch of other data bricks. And it feels like open sources, sometimes just like a tool that people pull off the shelf as like marketing. Other times it's like the company would not exist without the open source community. How do you see that playing a role in evolving over the next couple of years? It's a huge part of our company and what we do. The way that we think about things in terms of the life cycle of building agents is there's like a build phase. And then there's like test, run, and manage. And everything in the build phase, we try to do into the open source.

And so this is line chain and langraph. And so I think, like, Versel and Databricks are two of the companies that I kind of think are good analogies there. And, yeah, we want to build the platform for Asian engineering, just like for sales building kind of like the platform for front end engineering. Yeah. But so, like, pitch me if I'm using the open source, the open source repo. I'm happy. I'm scaling. And you know that I'm running this.

at scale and you'd love for me to be a customer. Are you just saying like the downtime will be less or you'll get extra enterprise features or you'll have some sort of forward deployed engineer that can come and jump in, do a sprint for a little bit and help me level up? Like what's the shape of partnering with you if I'm already big and scaled on the open source repo? Yeah. So it kind of goes in the story of build, test, run, manage and we've kind of built out our product suite in that order. So people get it started building. Like, that's where they enter in. And so when they come to us on the commercial side, it's mostly for the testing phase. So the biggest blocker that we see that that people run into is that their agents just aren't

reliable enough. Like it's hard, it's really hard to get them working well. Yeah. And so we have like best in class debugging and evaluation solutions that work with or without our open source. Actually, that's one decision we made early on is like the test run manage is going to be separate from the open source. Got it. Kind of like sell you can run more than to do. just next JS. So, so that like testing and evaluation and debugging is the first thing that people typically come for. Then we have the run phase. And so this is really running agents at scale. We, we didn't do like deployment for lane chain in the early days because to be honest, a lot of things that people were building in, you know, March of 2023 were like really simple

compared to what they are now. And so there just wasn't that much new infrastructure that was needed. As we started going into like longer running and more stateful agents, like that's really what our runtime is aimed at. And then the managed aspect of it is something that we're just starting to do more of. This is where like our insights agent comes in. So now you have like millions of traces going into your agent. How do you manage that at scale? And so our product development has kind of followed this, you know, this, this life cycle. I think we try to, I think we try to stay pretty grounded in like where the industry is and what's needed at the time. Do you think reliability will always be one of the key challenges to agents? I think like making, like, making

them reliably good. Yeah. It's like right because right now it's like okay it's like 80% success rate for enterprise agents for a lot of use cases isn't good enough and then it's hard to get it to 95 and then it's probably even harder to get it to 99 and then the last 1% and depending on the use case the reliability maybe matters more or less but it feels like the the age of the age of agents will kick off when we have, like, highly valuable, reliable agents in, you know, multiple categories. But I'm wondering if it will just be kind of like a perpetual challenge because of the nature of LLMs and constantly being in the business of predicting the next token. I think reliability is definitely the number one blocker that we see people focused on.

Today, we did a survey about a year ago and like twice the amount of people said that they were worried about reliability compared to like cost or latency. And, yeah, I mean, I think one of the taglines we use on our website is the platform for building reliable agents. Like, we think it's by far the biggest blocker out there. I think, you know, as an industry, we're learning, like, techniques and practices to get better at it. The models are improving as well. That helps. I do think it will continue to be a challenge.

And I do think that the best agents that we see out there innovate a lot on UI, UX, to help overcome some of those reliability issues and put the human more in the loop. Like cursor, for example, I would say, like, there. superpower in my mind like they've just nailed the ux of how you interact with these models and what it's like and and i think a lot of the ambient coding agents are taken off because the ux is is is great because it creates this first draft and so that first draft like paradigm goes hand in hand with this reliable reliability thing so we're approaching it from different carpathy had a great take on this he was like yeah like you can get a self-driving car to 99% accuracy and it's like you'll only crash every hundred miles like 99 of the miles will be safe

and then the last miles, you get into a crash. And so he was saying that, like, it's not just going for 80 to 90 to 95%. It's like you need to add a nine. So it's 99.9.9.9. He really did the meme. I was wondering about the Carpathie. You mentioned it earlier. You clearly watched Carpathie on Dorcas. What was your reaction to the vibe shift around AGI timelines? There's one world where you're like, oh, like maybe the froth in the market will cool off.

Maybe it'll be harder fundraise, something like that is one point. possible reaction. Another one is like breathing a sigh of relief and that like I'm going to have a job for a long time because I'm building something that's really durable and useful. Like, how did you process that? Or did it update you at all? Maybe you were already thinking all the same things. I think I probably have a boring answer here, which is like somewhere in the middle. I mean, I think one of the first things Carpathie said in the first five minutes was that like, right now he's really focused on like what these LLMs and agents can do for us and how they can be applied and that's what we really focused on as well like how can we take these at all

lines and do things and i'm personally not in aGI maximalist i still think these the allums and agents will transform what applications look like and i think i don't know i think that's like a reasonable middle ground to to kind of like take um so i i don't know if uh i don't know if that interview updated a lot of my beliefs on things i think one of the memes on on on Twitter recently has been the idea of that we're in a bubble with a lot of this AI stuff. And I think, again, like for that, I have kind of like a middle take as well. Like I think, you know, we're probably in a bubble in the sense that there's a lot of interest and a lot of hype here.

But I think there also will be a ton of value created. And I think both those things can be true at the same time. And we obviously aim to be one of the companies that creates a lot of that value. Well, it looks like you're well on the way. Congratulations. And thanks so much for hopping on the show. Yeah, great to meet you. Come back on again soon.

We'll talk to you soon. Thanks for having me. Let me tell you about adquick.com. Out-of-home advertising made easy and measurable. Say goodbye to the headaches of out-of-home advertising. Only ad-quick combines technology, out-of-home expertise, and data to enable efficient, seamless ad buying across the globe. I would love to see a Langchane campaign on the 101. Let's make it happen.

Back to the timeline, Warren Buffett missed out on $50 billion in profits by selling Apple too early. Barron's calculated that he sold $650 million. $650 million shares at an estimated price of $185. Now, they're at $263. His cost basis was an estimated $34, one of the greatest trades. I think he might have made more money than any investment manager ever with that trade. And it was sort of a narrative violation because he's often bought, you know, these low PE ratio stocks and not stayed out of technology and just generally stayed out of technology.

Of course, Apple kind of violated them both, but it was a fantastic success. Crazy because I remember when the trade war hit the tariffs, Liberation Day. Everyone was like, oh, Buffett is a genius, right? He looked so smart for selling when he did. And then, of course, ripped back up because nothing ever happened. Nothing ever happens. Roblox is in trouble. The attorney general has said it has become a breeding ground.

for predators to gain access to our kids. Yeah. I'm very interested to see where this goes. We've talked to some folks at Roblox. A very cool piece of software. I've always said that, yes, whenever you have like kids online with chat rooms, there's risk of this stuff happening.

But hopefully AI should be able to do even better filtering. Previously, you filtered for keywords. You know, if somebody's saying a certain keyword, that might be a flag for an ad. for an administrator to go in. And with LLMs, you should be even better equipped to screen messages, just like Elon said GROC is going to read every post now to decide where it goes in the algorithm. Roblox should be running every single message, I think, no matter what the cost, it's worth paying

to go through an LLM and say, is this indecent? Is this a problem? Let's flag this to a moderator. They also probably need to hire a lot of human beings, because we've seen the conclusion. current numbers of users on Roblox, it's what, 50 million people? Like, you need a huge, huge task force to, you know, control that. You need moderators. It's not all public, so you can't have a community notes system. You can have some sort of, you know, tattletale system, I suppose. But when, when the stakes are this high.

X chat calling Buffett, paper hands. Paper hands, yes. Well, Jacob Rintamaki is having fun on the timeline. He says, excited to do more writing, introducing agents and Demons. Our first place is on AI goulash. The gems one finds an AI slop. And just asking ChatGPT-5, is this something? Cursor for serial killers. Stab, stab, stab.

Well, you can go check out the latest substack AI goulash at Agents and Demons.A.I. And that's Damans with a DAE. And on that note, we'll see you tomorrow. On that note, head over to getbezzle.com. Your bezel concierge is available. Now to source you any watch on the planet. Seriously, any watch.

And Wander also dropped an update video. You can go find it on Kyle Tibbitt's X account. So much exciting stuff coming at Wander. We've been happy to partner with them. And you can, of course, find your happy place. And you can book a Wander with inspiring views, Hotel Grey Menny's Dreamy Beds, top tier cleaning, and 24-7 concierge service.

It's a vacation home, but better. Thank you for watching. Great fun day. We had ambitious goals for the year, but I wouldn't have predicted that we would get Brian Armstrong, Brian Chesky, and Palmer Lucky. Palmer on the very same show. Yeah. We definitely, in early, it'd be cool to interview a billionaire on this show, let alone three in one day. Remarkable. Absolutely remarkable day. Well, thank you to everyone in the chat. Thank you to everyone who's listening and supporting us. We can't wait for tomorrow. We will see you tomorrow. Have a great evening. Goodbye.