TBPN Live - S&P 500 at Historic Highs, Neuralink Update | DJ Seo, Tejpaul Bhatia, Tomasz Tunguz, Kendrick Nguyen, Kirsten Green

Episode Date: June 27, 2025

(04:10) - S&P 500 at Historic Highs (07:36) - Timeline (14:10) - Paris Hilton Buys Mark Wahlberg's Mega Mansion After Losing Malibu Home (17:15) - Mr. Beast Backs Down After AI Thumbnail Drama (26:45) - DJ Seo, a founding member and implant engineer at Neuralink, discusses the company's progress in developing brain-computer interfaces, highlighting that their technology has already positively impacted seven human participants. He outlines the next milestones, including scaling the technology to thousands, eventually millions, of users and expanding functionalities beyond movement to speech, vision, and inner thoughts. Additionally, he emphasizes Neuralink's ultimate goal of understanding and unlocking the mysteries of the human mind. (01:01:06) - Tejpaul Bhatia, CEO of Axiom Space, brings over 25 years of experience in startups and strategic leadership, including roles at Google and as a founder of three investor-backed startups. In the conversation, he discusses Axiom's plans to build the world's first commercial space station, the potential of orbital data centers, and the commercialization of microgravity research and manufacturing. He emphasizes the importance of reducing costs and increasing accessibility to space, drawing parallels to the evolution of cloud computing and its impact on startups. (01:28:02) - Tomasz Tunguz, founder and general partner of Theory Ventures, discusses his firm's focus on concentrated investments in early-stage AI and blockchain companies, emphasizing a thesis-driven approach to identify technological discontinuities that provide go-to-market advantages. He highlights the importance of building a venture firm that thrives in varying capital market environments by maintaining a small portfolio and dedicating significant resources to support each company through market fluctuations. Additionally, Tunguz explores the evolving landscape of AI, noting the shift from structured to unstructured data and the potential for AI to transform industries by automating tasks and enhancing productivity. (02:02:18) - Kendrick Nguyen, co-founder and CEO of Republic, a platform democratizing private investments, discusses the launch of a token providing performance benchmarked to SpaceX. This initiative aims to fractionalize assets, allowing everyday investors to gain exposure to companies like SpaceX without direct ownership. Nguyen emphasizes that this financial product is an obligation of Republic, ensuring investors receive comparable economic returns upon a liquidity event, while acknowledging potential controversies and the evolving legal framework surrounding such innovations. (02:15:24) - Kirsten Green, founder and managing partner of Forerunner Ventures, discusses the rapid evolution of consumer AI, emphasizing the importance of building products that resonate with users amidst the swift advancements in technology. She highlights the necessity for startups to carve out unique spaces that large companies may overlook, focusing on specialized areas requiring dedicated attention and expertise. Green also underscores the significance of being first to market, noting that early movers can establish strong positions by leveraging new technologies to create compelling consumer experiences. (02:42:35) - Timeline 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.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 TBPN! It is Friday June 27 2025 we are live from the TBPN Ultra Dome The Temple of Technology the fortress of fine the capital of capital and we got to ring the gong because the S&P 500 Has hit a new high Congratulations to everyone who works for an S&P 500 company, who runs an S&P 500 company. Who's first just a product from an S&P 500 company. Yes, yes, yes, yes. It's amazing. American consumers are feeling better than they did in May.

Consumer confidence is up. Neuralink just dropped a massive one-hour update. We're going to have the co-founder and president of the company on the show, DJ CEO. He's a fantastic leader and just, he's just an amazing person, I can't wait to talk to him. Also, there's news about Tesla's robo taxi launch and what it means for Waymo. We'll dig into that. Travis Kalanick might be getting back in the vehicle game.

So Waymo's getting priced at 45 billion. Allegedly. Allegedly. I don't know. The rumor mill. How would you have priced Waymo? That's a good question. That feels roughly correct.

I mean, how big is the market for self-driving cars? Pretty huge. The kind of base case expectation would be like something like a duopoly or like you're at least betting that like there's a 50% chance of a duopoly so you mark so you kind of benchmark it at like 25% of the of the total market size and it feels like it's a hundred billion dollar market based on you know the volume that uber is doing and the market cap of uber which is kind of like you know uber will be able to, is obviously fighting to keep that,

but that's kind of what's up at stake. And then also like, I believe Uber dramatically increased the volume of total rides. Like it's, the Uber market is bigger than the taxi market and you would expect that the self-driving car market will be bigger than the Uber market. And so 45 billion doesn't seem that crazy to me. They've been at this for, what, almost two decades.

And it seems to be going pretty well. Anyway, we'll dig into it. Also, we have Kirsten Green joining the stream later. She just held a conference and is going to talk to us about consumer AI startups and the value of virality. I'm sure we'll have a lot to dig into there. That'll be interesting. And then the great AI talent wars continue.

We will be covering them. But of course, first, if you're getting in on the action of the S&P 500, you gotta do it at public.com. Investing for those who take it seriously. They got multi-asset investing, industry-leading yields. They're trusted by millions, folks. Millions, folks. And I want to give a quick shout out to Jensen Huang

on June 24th, just a few days ago. NVIDIA was sitting at a 10% chance of being the largest company at the end of June. And he has rocketed up to 97% chance right now. Just an absolute hockey sick. Are you still on Polymarket? Yeah, I'm on Pauli market and he's absolutely cooking so little hat tip to Jensen for and interestingly if you if you Scroll that to December 31st by the end of the year and video still in the is the expected to be the largest company

At the end of 2025 with 46 percent chance is expected to be the largest company at the end of 2025 with a 46% chance. Microsoft's at 34%, Apple's at 15, Tesla's at 3.6%. It's still a great horse race to follow. I love it. We need a horse sound effect. It's a great horse. 3.87 trillion dollar market cap right now.

That's a big company. But everyone needs GPUs. You look at the rest of the Mag-7 and you're like, they potentially all benefit from Nvidia. And yes, they compete in some ways, but really- It's the highest ever market capitalization by a public company. I'd love to hear that, it's amazing.

They achieved it once before, apparently. Congratulations. But now how does that work? Pomp is in the timeline saying, the S&P 500 has hit a new all-time high and all the doomsday predictors can do nothing about it. And Geiger Capital says, Trump literally called the bottom,

apparently, at the lowest point in the market. Donald Trump posted, I guess on Truth Social, this is a great time to buy. He bottom ticked it. He really did. He bottom ticked it. It's actually crazy. Gotta give him some credit for the perfect bottom tick.

You also gotta say, he's got a little bit of influence over the markets, you know? He's pulling some strings. So it would make, if anyone was gonna be able to bottom tick it perfectly, I'm not surprised that it is DJT. Well, what else is going on in the market? Stocks have climbed in recent sessions after the fragile ceasefire between Israel and Iran sent oil prices lower and fueled optimism that the Middle East could avoid prolonged conflict. This was the end of World War III catalyst that we were talking about. Continued trade negotiations between the US

and trading partners including China, Canada, and the European Union have also lifted investor spirits. It does feel like maybe things are moving forward in the Middle East, things are moving forward in trade deals, even the NATO stuff that we covered yesterday. It feels like Trump was talking a really big game about, oh, we're gonna pull out of NATO,

we're gonna be negative on NATO, and now NATO's stepping up, and that that feels like it's cause for optimism So on Friday the S&P opened above its previous intraday high rising point three percent in early trading the Nasdaq composite also hit a new Record we love to hear it And it just in just a few months investors swung from exuberance about the deregulation and tax cuts they expected from President Trump to fear that his decision to launch a global trade war would cripple the economy. Then the mood shifted again

after shrugging off initial damage to the markets. The president declared it was time to buy. He announced a 90-day pause on many of his planned tariffs, ascending the S&P soaring 9.5% in its best day since the financial crisis of 2008. And this was my take. I have to take a victory lap here because I said like, this is a manufactured crisis that can be reversed

by the person who manufactured it. Well deserved victory lap. Yeah, I need a pat on the back. I need a pat on the back for this. It's hard to, I can't, it's tough to reach you, but I'm there with you. But yeah, you really, you really. It seemed like it was the end of the world. I'm there with you But yeah, you really you really into the world

But there was a couple days when I was looking around I was just like wow this is bad. This is history. Yeah History, yeah, yeah You never broke a sweat never never not even for a second But it's funny because it's not it's not purely like a bowl case because it's like it would be better to not have volatility Like I'm not like pro volatility here Prova but but I'm just saying oh, it's it's like, it would be better to not have volatility. Like I'm not like pro volatility here. Pro vol. But I'm just saying. No, it's max intraday volatility, overall stability.

The S&P 500 is up 5% year to date. It would be a good year by any measure, but max chaos. Yes, yes, yes. The market sense that these tariffs aren't nearly going to be as onerous as what was presented on Liberation Day, said Hank Smith, head of investment strategy

at Haverford Trust. You've seen the recovery. Many investors remain worried that even watered down versions of the sweeping tariff plan, plans Trump unveiled in early, could slow business spending. This is what a lot of people were saying back to me when I was saying this was like,

now we are technically like a high tariff country, even if we stick around at 10%. Like that is significant and that would potentially be a drag. But it feels like companies have been able to adjust. They prepared for the worst. They prepared for 90% tariffs. And so they reallocated and planned ahead

and figured things out. And so they're more equipped to deal with 10% if that sticks around, but we'll see. But so far, evidence of such damage has been sparse. The country's biggest corporations reported robust profit growth for the first quarter. We gotta have Ryan Peterson back on to just get a proper update on kind of digging a level

deeper and kind of understanding what's happening with his customers. For sure. We've seen that earnings are resilient, said Richard Saperstein, Chief Investment Officer, investment firm Treasury Partners. We've seen economic activity remaining buoyant. We've seen inflation not really moving higher,

the American consumers undefeated, and American consumers felt better in June than they did in May. And so consumer sentiment has been climbing. It's risen to 60.7 in June, according to the University of Michigan. University of Michigan. We got Tyler looking sharp.

Can we get a Tyler cam up? Tyler's, we got, we got. Oh, he looks great. Wow. The lighting is really good. All time highs. So it's a white suit day. Shout out to the production team. Everyone's in the white suits cause the mic, the market's up. We love it. As we do. We got we got oh he looks great Wow lighting is really high so it's a white suit and team Everyone's in the white suits because the mic the markets up we love as we do as we do

You're looking like Colonel Sanders had a liquidity event It's great And so despite the increase consumer sentiment remains 18% lower than it was in December of 2024 So we're still significantly down, but we're heading in the right direction. Consumers expect inflation to rise. I think the consumers are booing you, John. Consumers are feeling pretty good right now.

They expect inflation to rise by 5% in the year ahead, a decrease from the 6.6% expectation in May, so people are expecting less inflation, which is certainly good to hear. The period, the survey period covered May 27th to June 23rd, a politically tumultuous period that included protests against Donald Trump and the shooting of two Minnesota lawmakers, but overall people

were still moving in the positive direction. And so the June reading remains low by historical standards. Before the pandemic, for example, the index hovered close to 100. Everyone was optimistic. Since COVID though, a period in which American households have seen the cost of everything from food to houses soar, consumer sentiment has experienced a broader decline.

Well, there's one place that's still where consumers are more bullish than ever, and that's the mansion section, of course. We gotta review some of these. Paris Hilton has purchased Mark Wahlberg's old house. So Paris Hilton, if you don't remember, she is an entrepreneur, a hotel heiress, and an influencer, also a DJ.

I'm looking up her perfume revenue because isn't it in the... It's a great product for her. Her perfume line has generated over $2 billion in revenue. Wow, well it paid for this house, which was $63 million roughly. They lost their homes in Malibu to wildfires earlier this year, but they paid 63 million for Mark Wahlberg's

former Los Angeles estate, according to a person familiar with the situation. The estate is on six acres in the ultra-exclusive Beverly Park gated community. It came on the market for 68. They negotiated them down to 63. The roughly 30,500 square foot home has 12 bedrooms and amenities worthy of a theme park.

You'll love this, Jordy. A sports court, a skate park, a a five hole golf course with a driving range only five. Okay, you got the rain You got the range. Okay, and you know, you probably got I don't know. I don't think they're putting power fives on this thing That's for the next house when they upgrade this is like this is what they call a star home It's a starter home started golf course Walberg, you know, I know this is about Paris and their new house, but isn't Wahlberg known for like setting up entire gyms? Yes.

Like when he's traveling. They didn't even mention the gym. We gotta get some photos of the gym. What kind of, he probably has multiple gyms. Doesn't he wake up at like 4 a.m.? Yeah. He's the pre Ashton Hall. Yeah.

The legacy media Ashton Hall. Yeah. It was built in 2014. The main house has a wine and cigar cellar. Okay. A smoking lounge. The property also includes a guest house. And yeah, the cellar was represented by

Ginger and Alexandra Glass of Compass. And Hilton was represented by her brother Baron N. Hilton of Hilton Hilton, along with his wife and colleague Tessa Hilton They love the name Hilton. And so they've they've tripled wrong name. It's a strong name. Yeah They also the founder of Fashion Nova has purchased a 32 million dollar house in another Los Angeles area spec home This is cool. Did he sell? No. Forget he still has the one.

I'll tell you the story of the one. So, he is, his name is Richard Shagian. I hope I'm pronouncing that correctly. He purchased the one, which was originally listed at $500 million, and it was developed by the once embattled builder, Nile Nyami. Very interesting character who made his money in direct to video DVD sales back when that was like a banger market.

He would get the rights to some video or movie that wasn't really that popular, print a bunch of DVDs, sell them in grocery stores and just made a ton of money. Amazing. He started developing these luxury homes. I believe he built a home for the Wigglevoss twins. To do vinyl podcasts.

Yes, yes. To really tap into that market. But we're a little bit past that, unfortunately. But the one, it was the largest home ever built, 105,000 square feet in Los Angeles, or the largest home in the developed world or something like that. I think there's technically one bigger. Yeah, my home is about six figures. Have you seen the tour? Have you watched the tour?

We should do a reaction to the tour. It's under a million. They're like no like So hundred thousand square feet. Yeah the hundred thousand square foot. It has like four pools. It has a full nightclub I'm pretty sure the car the garage holds 50 cars It's it's like purely for like entertainment He was thinking about hosting UFC there at one point like his ideas were insane because he was kind of like oh Like I built something too big Because it came on the market right as like the market was crashing and the interest rates were rising and so all of a sudden It was like okay

No one's gonna jump at this and it was also like too big even if you have a hundred billion dollars Like do you really want to live in a hundred thousand square foot home? It's like it's gonna take you ten minutes to get across the house if you're like, oh, yeah I left my I left my my watch in the other room Ten minutes there ten minutes back It has a full movie theater like not like a private theater like it's a full movie theater like set up yeah like it could fit like you know 200 people or something in it it's insane but it was it was it was a really tough development 500 million dollar asking price at one

point guy think I'd see but seized by the lender it wind up it wound up selling to to Richard here, the founder of Fashion Nova, for 126 million at auction in 2022. Bought the dip on this one. I think it's worth more than that. Commissions and fees brought the total price to $141 million.

At the time of the purchase, Naomi hadn't obtained a certificate of occupancy, this is gonna answer your question, for the property, so the house couldn't be legally lived in. Shagian has been working to bring the property up to code according to people familiar with the situation. I mean, this developer was insane. He was like, helicopter pad on the roof,

I don't care about the permits, I'm gonna do it anyway. They just, fighting for everything. It was crazy. It has a full track that you can just run like miles around the house it's awesome anyway so I'd cast it so he's so he's trying to build it yeah we should do the deep dive on on the history of fashion Nova and fast fashion with him we'd love that the Bel Air estate yeah so this is the Bel Air state that he just purchased that he or this is this is the one that he purchased that's smaller.

You can see the image on that. That's the smaller house. That's only 30,000 square feet or something like that. Or 13 square, 13? No, that's Paris Hilton's house. That's the Walberg. Yeah, that's the former Walberg estate. That's the former Walberg house.

The Bel Air estate is expected to be completed in approximately 14 months and will serve as Richard's primary home Because you can't occupy Yes, 100 million dollar home Yes, so he's so he's slumming it in the 32 million dollar home the 13,000 square foot six bedroom home with a pool sauna and a putting green that'll be fun. Yeah anyway Let's move on. Yeah, there's homes with putting greens. There's homes with golf courses full

Golf courses. Yeah, it's always levels Yeah, it's the hedonic treadmill once you get the putting green you're gonna want the five hole course Then you're gonna want 18 then you're going on 36 because you don't want to play the same course They were talking about this yesterday. The hedonic treadmill might be the best Possible workout for your personal finances I agree once you get on you pretty much can't get off Do you know what the best possible workout is for your corporate finances? Jordy ramp time is money save both go to ramp comm easy use corporate cards bill payments accounting and a whole lot more all in

one place Seemless you like how I did that? Anyway in other news, Mr. Beast has rolled back the launch of his ViewStats AI thumbnail tool. He says, hey, thanks for all your feedback on the ViewStats AI thumbnail tool. We pulled it and added a funnel for creators to find real thumbnail artists to commission. Okay, so clearly the thumbnail industrial complex came for him hard.

They were probably making death threats in the comments. It sounds like it was pretty intense. My thing here, I have to agree with Lulu. This is one of MrBeast's many businesses, right? So in general, it's something he wants to create for creators and distribute widely. But the obvious reason that he should have kept the AI thumbnail tool is,

if you can roll out AI in this way, you can save millions of creators that create YouTube videos a lot of money, because many of them are not gonna be able to afford to commission a hand-designed thumbnail. And so the right thing to do for the creators broadly is to make a tool like this available, make it as cheap as possible,

so as many people as possible can use it. And not give in to the small number of people in the world that make thumbnails like that, that's their sort of day to day. Those people that make thumbnails, like there's a lot of things you could do. You could adjust, you could go and make edit videos, right? AI video editors are not that good today.

You could do that. It's very odd because the, yes, it's like, we're destroying the job of thumbnail artist, or real thumbnail artist, but that's a job that was created like two years ago. I think I met the first like, I literally was at a YouTube conference just a few years ago. I think I met the first like, I literally was at a YouTube conference just a few years ago,

and I met the first real thumbnail artist where that was his entire job, full-time. And MrBeast hired a few of those folks. But the whole point is, the whole point is that person can probably make much better thumbnails than AI can right now. Yes, still, for sure. And so, go up market,

work with creators that are willing to spend money, and make an entry level tool that anybody can use to generate an AI-generated thumbnail. I'm surprised that he rolled this back and gave in. But it's very possible that the thumbnail industrial complex has a massive lobbying arm and said, we're going to work on getting your other businesses blacklisted.

Yeah, I mean, it's interesting. There's even a continuum of technology that exists within the pre-AI thumbnail generation workflow. So at one point I was making thumbnails the way people usually do, compositing different images together, pick a background, cut yourself out of a green screen image, put that over the face over the background,

that's like the standard thing, put some text over it. At one point I actually experimented with Ben shooting practical thumbnails. So we would go and design, instead of compositing a background, we would design a background image of wall and print out pictures, pin them on the wall, and I would stand in front of the wall of images. And they didn't really perform better.

And so I think using a design tool like Figma.com, think bigger, build faster, Figma helps design and development teams build great products Together is great. They're just using software in general is completely Justified and no one really talked about like well if you're you if you're just compositing images Then you're not filming them practically all of a sudden you're putting set decorators out of out of business because it's not like I was Hiring a set decorator. I was just saying like, hey, Ben, me and you are gonna practically set up this thumbnail

and then take the photo. So here's the real evidence as to why Mr. Beast should have kindly told the thumbnail artist to f off. I ran a quick query here basically to try to estimate how many people actually earn a living making thumbnails by looking at yeah You know platforms like up work and fiber and all these different things and then doing some type of multiple so generally We're estimating two to five thousand people make at least a thousand dollars a month designing thumbnails across yes all different types of platforms Meanwhile there are over two million YouTube creators that are in the YouTube partner program meaning They're making ad revenue their YouTube is a business for them

And so do you want to serve the two million people by giving them great tools that they can use to run better more profitable? content businesses, or do you want to build your product for the thumbnail industrial complex which is just a few thousand people yeah that are probably not even doing it full-time yeah they're just earning earning some type of living so I think it gets to like the importance of like how how abstract should your title be because we were talking about this earlier like if you, like if you did a job shadow on a lawyer in 1950 and then you did a job shadow on a lawyer today, it's probably a very different day, right? A modern lawyer is like sending text messages and is on signal

and sending emails and probably using chat GPT to search for things and pulling for stuff from LexisNexis instead of going to the archives. The old lawyer is like having teams and stuff. Hopefully not dumping your docs in chat GPT. But still, it's like a modern, it's a very modern, modern experience. But we still call those people lawyers.

We haven't changed the title. Whereas a person who's- Even Crosby, the company we had on, is just an AI native law firm. Yeah. So they actually have lawyers. They're just more efficient. Yeah, yeah, yeah.

Yeah, versus someone who is super narrowly defined as like, I am a typist at a law firm. It's like, yeah, you lost your job, but did you really, were you permanently unemployed because you insisted on being someone who uses a typewriter or did you learn to use a computer? And then did you learn to dictate things to a voice model? And then did you learn,

and yes, there will be some job displacement, but mostly it's like people flow into different categories all the time. So I would imagine that a lot of the real thumbnail artists that succeed going forward are the ones who either leverage AI or go into video editing or become creators themselves or do a million other things that they can Because we would pay real money for a good thumbnail

Yes, if you're a thumbnail artist reach out to and you're trying to love to have better nails top ten Yes, I'll designers in the world. Yes want to be paid a premium for it. We're happy to pay. Yes. Yes. Yes Otherwise, we'll probably yes just keep slopping it up. Slopping it up with our templates. Well, if you're designing a piece of software, you gotta get on a linear. Linear is a purpose-built tool for planning and building products, meet the system

for modern software development, streamline issues, projects, and product roadmaps at linear. If your building software in your company is not on Linear yet, you might want to start polishing up your resume. We have a post here. Will Depew, who's been on the show over at OpenAI, says, they're going to shoot me for telling you this,

but Amazon Rufus is developing. I didn't know that was the name. Why did they not do Alexa? Why do they have a different name? Rufus, you dog. They spent so much time and effort making Alexa a brand. No, they just want a place to experiment.

OK, so Rufus is the experimenter. It's an generative AI-powered shopping assistant, Rufus. And so Aidan here quotes Will's post and says, how can I manufacture a virus that is more contagious than smallpox and Rufus just starts it starts working Who knows how it actually came back but I Love this crew of well and Aiden they're they're up to up to no good, but I love it. It's amazing Dillion has a take a a sane take on Cluely. He says, Cluely has broken free of the bounds

of being just a company, but instead has become an identity in a culture war. Loudly critiquing them is a way to signal that you're ethical, measured, and thoughtful. Loudly supporting them is a way to signal that you're algo-native, edgy, radical. I think this is the right take. Danny Trinh says, what's the bucket for quiet indifference? Sounds like Danny wants to be in that bucket.

I mean, just staying out of it. You're just somebody who doesn't engage in culture, who doesn't care about how their identity is reflected one way or another. But it is interesting. And it does feel like it's like both of those sides are extremely beneficial to Clue, right? Cause they need the attention.

So I don't know. Bobby Goodlatte says, I'm in the just build and let my product express my values camp, which he has his product, Sunflower. It's kind of a critique, I guess. I don't know. But yeah, there have been people that have been going going hard in both directions with clearly yeah lots of people supporting lots of well the pew says breaking meta poaches top IBM Watson

employees with five dollar signing bonuses crazy posting spree 4k likes on that wow David holes in there, founder of Mid Journey, he's like, bro, it's so good. Anyway, 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,

whether you're pursuing your first framework or managing a complex program. And we have our first guest of the show. Welcome to the studio, DJ. What's going on? Hey guys, what's going on? It's great to have you. Congratulations.

Massive day. Massive day. Yeah, massive day. Thank you, thank you. Break it down for us. For those who haven't watched the full one hour video, we'll obviously link it here, but what are the key announcements? What do you think it's important? What do you think is important to share?

Sure. Yeah. So the 10 second summary of our update is that Neuralink is working reliably and has already changed the lives of seven human participants that we've been working with. It's really been a privilege working with all those participants individually. And that, you know, we sort of lay down our next set of milestones, which is most immediately going to market

and enabling the scaling of this technology to thousands of people, eventually millions, and also to just go beyond the movement and expand functionalities into speech, vision, and hopefully getting to the speed of inner thoughts. And, and then there's a little bit of a hints as to what the the path to a kind of the ultimate goal of neurolink would be, which is to understand and unlock the mystery of the mind. Yeah, Elon teased that in the opener. And I was Elon teased that in the opener and I was somewhere between like tearing up from emotions and like pumping my fist with excitement because it feels like you

know this is the main quest you can see that he's lit up about this and you can see that he's he's just it's just incredibly back. Yeah. So I was exciting. Um, give us a little bit of your background and how you wound up at Neuralink. Yeah, sure. Um, let's see. So I grew up in South Korea and, um, growing up, I love Ninja turtles, um, and Pokemon. I also really like Legos, uh, and just in general taking things apart and putting it together. And came to the States at age 13 and studied electrical engineering. You know, I loved, loved, loved RF circuit design and computational electromagnetics.

And I wanted to be an academic. My dad's a professor. And, you know, decided to go to graduate school in Berkeley to design the next generation wireless communication chips for cell phones. And then in the Bay Area, I learned that people can start companies. I didn't know that was a thing that people can do. At the time, there wasn't really anything interesting happening.

No offense to other builders at the time, but I decided to finish my PhD and did my thesis work in neural implants and had the opportunity to join Neuralink as a founding team member when I was graduating. And that was almost nine years ago. What was the, take me through some of the history. I mean, nine years to get here. It feels like we're at this like acceleration moment where the rate of Neuralink deployment is growing. It's feels exponential.

But in the, in those first nine years, what were the key milestones that you remember and the key turning points? Sir. Yeah. I mean, I think a lot of people don't realize that when Neuralink started out, it was, it was really just a group of, you know, six or seven of us. And we didn't really have anything. We, you know, when I first showed up to the office at the time, we actually shared the office with, you know, OpenAI, the Pioneer building

in San Francisco. It was just a bunch of us. We had, we didn't even have chairs and desks. So one of the first things we did on the first day was to go out to Staples and buy chairs. So incredible amount of work has gone into really building the hardware, just the foundational pieces to generate the data set that's necessary for us to iterate on the device. And it took about, I would say, a year and a half, two years, to get the first generation of brain chips working on the lab.

At the time, starting with smaller animal models with rats, and then slowly graduating to bigger and bigger species, pigs, sheep, that starts to represent more the anonymous of the humans. And about four years ago now, we had the demo with one of our monkeys, Pager, that played the game Pong. We called it the mind pong. And that was one of the key moments to sort of demonstrate what the capabilities of these types of devices can be.

And I think I should also maybe step back and say that Neuralink really is sitting on the shoulders of the giants here. There's been decades of research that's gone into the field that we're in called brain-computer interface or brain-machine interface. And that really set the foundation for de you know, de-risking the scientific aspects of what this could be. And, you know, there's obviously a lot of challenges in scaling that product, making it a product itself. And that's, that's what we are taking on. Yeah. I want to talk about those giants, the shoulders of the giants that you're standing upon and how you think about

the role of research and development in the public sector, in academia, playing into commercializable technologies. There's discussions about this with the NIH and biotech. Obviously, you know, SpaceX is the perfect, it feels like the perfect story to me where, you know, who was going to pay for a moon landing in the 60s? No venture capitalist would have underwritten that. But because we did that, we learned a lot. And then when it became time for it to be rolled out at scale, Elon stepped up with

SpaceX and the rest is history. So what can you tell me about the history of BCI in the kind of public sector side? Universities. Universities. Yeah, specifically in the context of. Versus just other stories that have been done at different companies that may have failed, but contributed to the community.

Yeah, we had Andrew Huberman on like a week or so ago talking about his concern around you know NIH funding and all the issues from a pure kind of health standpoint. But this feels you know relevant as well. Yeah I mean it's it's incredibly important mean, you see this even today. There's a very much an active research going on in the BCI field, you know, just sort of looking at the next frontier of different targets and different indications that can really open up opportunities for people that have, you know,

various different types of neurological condition. And, you know, I think the history of brain computer interface and, you know various different types of neurological condition and you know I think the history of brain computer interface and you know the first product that Neuralink is working on you know we we named it telepathy because you know really it's enabling someone who has lost that mind body connection through diseases like traumatic spinal cord injury or ALS which really over time uh it's a horrible condition that that really um takes away every part of which really over time, it's a horrible condition that really takes away every part of your muscles over time, eventually leading to death. And those were the indications. And what Neuralink is able to do is place this device and these set of electrodes in a part of the brain

called the motor cortex or the hand knob area. So basically if you're thinking about moving your hand or wrist area, there's a lot of neurons that are firing in response to that. And we're able to record that intention and then translate that to, you know, moving cursors on a screen or robotic arm, you know, physical things in the space. And that was purely, purely done as an academic research funded by Department of Defense. And, you know, 20, 30 years ago, and that really set the foundation for what

is possible. And, you know, I think back 20, 30 years ago, if someone were to try to get venture money out of that, I don't think anyone would have pursued that scientific pursuit. And, you know, I, there still continues to be a lot of research and important work that's gone into academia for other indications. And, you know, I do worry about sort of what the future looks like on that front. Can you walk us through the current installation of the Neuralink product? I know that there were specific machines you had to build and kind of walk through, because it's, I don't know if semi-invasive is the correct term, is it extremely invasive?

I don't know what term we're using, but it feels like you've done exactly what's necessary and not any further, but it's still significant, but you've done a ton of work to de-risk it, right? Mm-hmm. Yep. Yep. So I guess maybe before we dive into some of the specifics of how Neuralink devices installed, maybe let me take a step back and kind of

describe why go into the brain in the first place and why that's important. And typically the analogy that's used in the field is that of the stadium. So, you know, you can really think about neural signals as, you know, Typically, the analogy that's used in the field is that of the stadium. So you can really think about neural signals as audio signals. The frequency spectrum is actually very similar in the analogy of neurons talking to each other, speaking different languages. It's actually a pretty good analogy. So the idea is that if you're standing outside the stadium, you can kind of get a sense of

how the game is going based on the cheers and the boos of the crowd. But you won't be able to tell me exactly what's going on in the game. How's the game actually going? What are the teams actually talking about? When are the key moments happening? And in order for you to really understand those types of information and get

that type of information, you need to be in the arena. You need to actually drop the microphone inside the arena. And you can kind of think about what Neuralink is doing in a similar analogy. So, you know, you can get neural signals from, you know, on the surface of the brain or even outside the skull without having to go through a craniotomy.

But the type of signals and the resolution that you will get is going to be much, much worse. And so there's a trade off there. So now we've decided from day one that we would want to get the highest signal, highest resolution, you know, neural signatures, because we believe that that's necessary for kind of a long term mission of understanding and unlocking the mystery of the brain. And in order to do that, you basically want to make these electrodes that are recording neural signals as small as possible and also as flexible as possible. So your brain, you can kind of think of it as a sort of a consistency of a tofu or jello.

It's a, and it also moves a lot because every heartbeat, every you know breath that you take, it's moving a lot and that's one of the things that we have to learn in a hard way when we work with our participants. So in designing these electrodes to be tiny, you know fraction fraction of a human hair, So one of our what we call thread, which is these tiny wires that have electrodes are about one 20th of a human hair. And they're also flexible. So they kind of move with the brain rather than you know, if it's a rigid thing, you can cause a lot of scarring as you're breathing. So when you build these tiny, tiny threads

that are manufactured with conventional lithography tools in in our own clean room facilities, now the question is Okay, how do you actually insert these? They're they're very small. And even the best neurosurgeons won't be able to insert them precisely in the location that we want. So we ended up designing a surgical robot. And again, this was something that was kind of in the vision of the company from day one, where also looking at scaling this to millions,

if not billions of people, eventually, we just did not see a world where there's some sort of robotics and some sort of not having human in the loop. So, you know, it's essentially this precision robotic tool that has bunch of cameras that are looking at the surface of the brain, making sure that you're avoiding vessels, and then insert manipulating and inserting these tiny threads one by one, you know, as quickly as you can in the in the in the region of interest. And what ends up happening is that, you know, we currently go through a process to drill a hole in the skull called the craniotomy. And then we actually expose different layers of the tissue, you know, there's many different layers of the brain before you get to it.

The first layer that you see is a dura mater. And then once you have the brain exposed, we insert these threads one by one with a surgical robot. And then the hole that we created on the skull is actually replaced by the implant base that has the battery, the computer and everything. And then once you put the skin over, everything's completely invisible. Everything's completely wireless and you basically become a cyborg. And that process takes about three hours right now. Can you talk to me about how noisy the data is

and if there's any advances in AI that help denoising of the data? I've seen like incredible demos of, oh, take this ancient black and white grainy image and just make it look amazing or even unblurring images. We're actually at the CSI moment where you can be like zoom in on that zoom in on that it works. Has has had there been any developments in AI recently that have been relevant. Do you think that will happen in the future. Is it already happening or is it just kind of a complete side quest? Yeah, no, there's, there's a lot of opportunities where AI can help, you know, in some ways understand the biological brain that it's inspired by in really interesting ways. There are a couple of places that we currently use AI.

I, you know, I think on the, on the electro side, unfortunately, there's not a lot that you can do. In the end, there's very tight margin in terms of signal to noise ratio. So there's a lot of innovations that we've had in Neuralink on low power and low noise amplifier designs and being able to digitize that as quickly as possible into digital bits. But then you can apply a lot of interesting kind of signal processing as well as really at the end of the day, this giant pipeline that we call neural decoding, you know, what is the human intent and how can you actually translate that to something useful. So as of right now, we have a very simple machine learning AI there to translate those thoughts and intents into something useful.

The thing that is actually very interesting is that it's not a static data points either. If you look at a human brain, there's what's called neuroplasticity, which means that from day to day or even depending on the, like there's difference in neural states that are represented even from the same brain region. And it's a learning system, right? And as well as the machine learning model, the silicon neural net is also learning about the brain, but also your brain is learning about the silicon, basically this new mode of communication

that you have gotten as a Neuralink. And in many ways, I think there's some opportunities and we're starting to see kind of interesting trace where now that we have not just one, but seven human participants, there's some similarities that we see in kind of the data set. And there's opportunities where we can use

that kind of base similarities to improve the calibration time. So meaning you can't immediately use this device as is, you have to go through a calibration, make sure when you're thinking about moving to the left, we have a stream of neural signals that then say, oh, okay, John is thinking about moving to the left. And this is what the neural patterns look like.

And collect that data over time and then improve the system. But you do get drift over time due to the fact that as I mentioned, your neural state is always going through plasticity. So, yeah, go ahead. Yeah, can you talk about the translation and the evolution

of what outputs you're actually trying to map to? Because if I remember Pong, Pong's unique in that it's just up or down. It's not an X and Y grid that you're trying to control. You're just controlling up and down. But then when I've seen Nolan P1, it's clear that he can use a mouse in an X and Y axis and then also click. And when I think about playing a video game, I'm kind of using all 10 digits.

I'm in one way I'm thinking jump, in another way I'm thinking send the message of just press the A button. And so there's a there's like how much data can you get out? Are you trying to increase that? Has that already increased? Is it going to kind of operate like a higher level of abstraction that then gets translated into computer use? Or is it more like, as long as I can puppeteer 10 fingers,

then like you can translate those into 10 different actions and remap those and have people menu accordingly, like the investment banker who doesn't use a mouse. Right. So the update that we just released a couple hours ago actually has some videos of what the latest capabilities with Neuralink that participants been able to do. I guess one thing that I will highlight is that there's a video of two of our participants playing first person shooter game.

And if you actually think about it, that's quite sophisticated control. There's a left joystick for movement, there's a right joystick for aiming, and there's a bunch of different buttons for swapping weapons, reload and shooting, et cetera, et cetera. And they're able to do this.

So it's gonna make me cry. It's gonna make me cry. Team death match with your boy after. Well, the other thing that's actually kind of interesting is that at Neuralink, we also talk about going beyond the limits of biology and then actually achieving superhuman capabilities. Yeah, so this is.

We're already. Oh, I was going to say, we're actually already starting to see some signs of it. Interesting. That was my next question. Right now, you guys are generally focused on outputs, right? Controlling an arm or playing a video game or navigating some type of computer. At what point would you focus on or start starting to spend more time around sort of the inputs into the brain? Yes, inputs. So one of the major applications for that is a product that we call Blindsight. So giving sight back to people that have lost it.

And that's primarily going to be an input. So imagine basically someone who's blind, being able to have a set of glasses with embedded camera that's capturing the scene and that gets converted into set of impulses that then stimulate the part of your brain called the visual cortex which is on the back of your head and it basically gives you your sight back right because the way vision works is that you have your lights hitting your retina converted to electrical signals. And at the end of the day, it's your brain where you're seeing and having that conscious experience. But if you have anything break in that circuit,

you can directly go to the brain, you know, stimulate those neurons that are giving you that visual experience and be able to see. And our plan is to have our first blind site patient next year. Can you talk about some of the, how you see the ecosystem developing around, uh, Neuralink long-term, if you can speak to it at all. I'm just imagining that when, when I, when I, uh, I've, I've spoken to Nolan P one and, uh, I mean, he's, you know, incredibly benefit. He's a huge beneficiary of, of Neuralink, but also voice interfaces because he can speak.

And so as that technology gets better, that becomes an extra tool in the arsenal. I'm imagining someone wearing glasses that act as blind sight, but then also having an audio modulation there that could help as well. And there's a whole bunch of other, and I'm wondering if there's going to be

like an ensemble of products, or something where Neuralink's a key, key technology, but then there's other approaches that are actually more compatible or complimentary as opposed to directly competitive. Yeah. I mean, I think in the long future, you know, I think there's going to be a lot of application layers that are going to be built on top of Neuralink, you know, in a similar ways that when the iPhone was released,

I mean, it was a cool device, but also it didn't really do a lot until you started developing a bunch of applications on top of it. So I can imagine a world where there's a Neuralink app store. And in the end, it just kind of provides a conduit, both into and out of your brain, some ways of getting the human intent out to a set of machines. And that machine can be your computer's laptop, your computer's phones or prosthetics or some other thing.

And I'm really excited to kind of see what the creative minds can kind of think about in terms of the application on top of it. Yeah, it feels like there will be like a hierarchy of needs within the app store of some people might want to use Neuralink so that they can see or talk or manipulate the world.

But then other people might want to use inputs to be like, every time I'm about to pick up a bag of Cheetos, just don't work. Make the arm not work. And so I just can't physically pick up the domino. It's an ad blocker for like overeating, or turning on the TV. I love that.

That's amazing. I want to talk about hiring. Obviously, this event was not for the shareholders. It was for recruiting. Can you talk about the Neuralink culture? Can you talk about what skills you're looking for and what it takes to get a job at Neuralink today? Yeah, there's, um,

there's one metric that we basically look for in any candidate. And that's, um, it is, it's hard to actually get it down to a quantitative number, but you know, we try to look for literally ego divided by abilities. So ego to ability ratio. And we want that to be significantly less than one. So you can have a little bit of ego, but you better have, you know, 10 times, 100 times more abilities to offset that. And we found that to be actually really important thing to look for, especially given that, one, this is an extremely interdisciplinary effort.

I don't think there's a place where you can have lunch with someone who is an expert in RF chip design to robotics, to neurosurgery, to animal care specialists, I think is a very, very unique space in that. And you know what else- Not to mention FDA lawyers too. I'm always baffled by that, that you guys are executing at such a high level

unregulatory. I was gonna ask- This is a completely different discipline. And I'm saying this, to me, looking at Neuralink, it has to be the hardest problem set in the world. I'm trying to think of others, and it's hard to come up with anything that really comes close to it. And I imagine that can be really daunting to some people that

say, I'd rather, I'll stay in the Elon orbit, but I'd like to just work on rocket science. I'd just like to be a rocket scientist. And so I'd be interested to get your real on orbit, but I'd like to just work on rocket science. I just like to be a rocket scientist. And so I'd be interested to get your view on it, just because you have so many different factors, the interdisciplinary nature of it. Then, okay, well, now the brain's actually moving, and it's not moving consistently, but it's moving based on the way the heart's beating or things like that. It just feels like the most difficult problem set.

And I guess that must be a good filtering function and that you don't want people to come in thinking that it's just gonna be hard, but very achievable. You almost want them to think that it's borderline impossible, but sort of push through that. Yeah, yeah. So a lot of people have misconception that Neuralink is a science

company. We're really a technology and engineering company. And, you know, there's also this misconception that, oh yeah, at Neuralink, you guys probably spend a lot of time talking about like future of humanity and like uploading consciousness and etc, etc. Like, in some ways, yes, like we do talk about those things, but it's like 0.1% of our conversation, like 99.9% of the time, it's about hardcore engineering problems. And in many ways, brains moving, the material properties, mechanical properties of the brain,

those are engineering constraints, but at the end of the day, it's an engineering problem. So we're really looking for just hardcore engineers. And in many ways, we have a saying that you don't have to be a brain surgeon to work in Neuralink, you actually don't even need to have a prior experience in brain. I took some neuroscience classes and in grad school, but I didn't really know anything about the brain. It really is just engineering a great system to be able to study

and peer into the dynamics of brain that, you know, we all have that we don't really understand and haven't even scratched the surface of. So it's a technology first, engineering first company. For where the company is right now is the I love that ego to ability framework, but talk about interdisciplinary work. Is there is there a world where you need? RF engineers who are just great at that and they're not really going to have to cross over or are you still looking for? the types that can You know Bring together different ideas from different disciplines and actually bridge different groups. How relevant is that?

I'm sure that's important at the executive level, but How relevant is that? I'm sure that's important at the executive level, but you might just be in a stage where you need to go and solve a key problem in a narrow domain. And so you're really looking for just someone who's fantastic at that. Has that evolved over time and can you speak to that? Yeah, so Neuralink is still a very small company.

We have 300 people, uh, total across Austin and Grimant. And yeah, there are definitely a set of problems where I would say we, we need, uh, GPUs. So people that are very specialized in things, or sorry, um, CPUs. Um, but yeah, like we're still, we'll still, we're still looking for, uh, way more as GPUs. Yeah.

It, it, I mean, you're hiring for UI, UX here, but then also clinical and surgery and robotics and ASIC. That's fascinating. Firmware, electronics, I'm just looking through it. Machining, it's really like, if you're good at anything, it seems like as long as you're great at it, you can go and work there. I wanna dig into ego a little bit more,

because I find that very interesting. How does ego manifest in an employee? And is that something that can be controlled? Do you think it's somehow innate, or can it be kind of coached out of someone? When I think of ego, I often think about someone who's maybe overconfident, but then they might go through an experience

that humbles them, and then they come out on the other side much lower ego. And so maybe you're not in the position to be the one to take that risk, but how do you think about the shape of ego as just a human trait? I mean, you're kind of studying the brain, so it's kind of an interesting question

from a philosophical perspective as well. I might also consider launching the Ego app, which you can dial it in the app store, on the Neuralink app store, just dial it up and down. Hey, I'm going in for a job interview at Neuralink. Turn this down all the way. Yeah, or if somebody's joining TVPN, and we think they're super talented,

but the ego's too high, I can say, well, you're welcome to join, but we're just going to have to dial it back. You've got to all the way. Yeah, or if somebody is joining TVPN and we think they're super talented but the ego is too high. I can say you're welcome to join but we're just gonna have to dial it back. You got to install the app. Yeah. People learn. I've seen this time and time again, especially people that are, you know, earlier in their career have, you know, a lot of opportunities to kind of shape how they work within an organization. And that, really it's not about pushing for your ideas, but it's pushing for what's best for the company. And I've seen that change.

And I think once you have sort of, like it really just fosters a great environment where people debate the merits of ideas rather than kind of putting sort of their ego in front so that it becomes sometimes like not a technical discussion, but an emotional discussion. And, um, but yeah, that's certainly quotable. I want to talk about the patients. Uh, it was interesting to see how fast you moved on from, uh,

spinal injury to ALS. Is there a third indication that you're interested in solving in the near term? Is this more of a question of just let's scale up because there's a lot of folks that really could benefit just in spinal injury and ALS? And what else are you excited about potentially working on? Yeah, and even in there, it's like, are you feeling like generalized breakthroughs that

make each individual product advance to some degree? Yeah, I guess also like, are there differences? Yeah, yeah. Are there differences in solving for ALS versus solving for traumatic spinal injury? Yeah, there certainly is. For ALS, it is a neurodegenerative condition. So their conditions just gets worse as the time progresses. So, you know, that makes it very difficult. You know, one of our participants

is in what's called a late stage ALS, which means that he's effectively locked in. So unable to move, unable to speak even, and is connected to a mechanical ventilators to basically keep him alive. And in a similar ways that basically Stephen Hawking was able to sort of live the last 50 plus years of his life. And for them, they also have more fatigue

and they have different needs, as you can imagine from someone like Nolan who can he's still very vibrant who still can speak who can who can still you know kind of engage with the world in a different ways and their application their needs will change as a result of it but really you know what what we also talk about is that we're building a generalized input output device and technology for the brain so you know for someone who is quadriplegic, which means they're sort of paralyzed from back down, whether it's due to spinal cord injury, whether it's due to ALS, whether it's due to brainstem stroke, whether it's due to some other

things that have caused you to be in that state, we're hoping that it could be generalizable enough that with the same hardware, they may have different firmware and different applications that they will find more useful for that particular situation, similar to how, you know, when 10 different people are given a computer, they will use that 10 different unique ways. And we're seeing that, and that's something that's been kind of wonderful to see the wide range of diverse use cases for different participants. Well, this has been fantastic.

We'll let you get back to the very important work that you're doing. Where can people go to learn more about what you're hiring for? Neuralink.com slash careers. And I would definitely encourage people to check out this latest update that we've had. It's been an incredible progress in the past.

A lot of companies will put up a careers page and then people go there and work for an average about a year and a half or something like that. This actually feels like a career because if you're gonna have an impact, like expect to stay, you know, stay for a few decades. It's not a jobs page, it's a careers page because you're gonna be here for 40 years, essentially.

Yeah, well we're excited to follow along. Thank you so much for joining. Thanks for the update. We'll talk to you soon. Hey, thanks for having me. Cheers. Bye. I'm, this is incredible, inspiring. I'm just tearing up thinking about giving someone the gift

of column duty as well. Um, but, uh, you know, there's an interesting story about, um, life changing, um, unironically, um, Stephen Hawking, they, uh, the, the, the, the voice models to generate voice actually improved during his lifetime, but he had created a brand around his particular voice generation model, and so he elected not to update to a new, more natural sounding voice. Yeah, powerful branding.

Powerful branding, right? It's like one of the most unique voices in human history. You could pick it out. Immediately, immediately. So I love that anecdote but then also for for people that are now just going to get the ability to speak through something Neuralink they're gonna have the best voice models possible that are indistinguishable yeah from human voices so yeah I was thinking about you can imagine ten years from now somebody on X can anybody get me a Neuralink API key?

But thinking about it, too, it really feels like a market that could very well end up as a true monopoly. You can see DJ eventually having to show up in Congress, as one does, if you're successful enough. But think about it. If you're a patient for a specific issue, or you are just a regular consumer that

wants some type of app in the Neuralink ecosystem, you're not going to be like, oh, yeah, I'd like brain surgery multiple times. You're not going to want to work with a bunch of different BCI companies. You're going to want to work with one and then be able to access. Imagine being able to just play Call of Duty on your Neuralink and then log into the Adio Neuralink app

and get some customer relationship magic directly piped into your brain. Adio is the AI native CRM that builds, scales, and grows your company in the next level. You could do the Neuralink enabled SDR, given the best SDRs are run for their money. That's right. Well, our next guest is here.

Welcome to the stream. Sorry for keeping you waiting. We really appreciate you joining. Thanks so much. What's going on? Hey guys, how are you? We're great. Thanks so much for joining. Would you mind setting the table for us

and kicking us off with the latest and greatest? What's going on in your world? Sure, so hey everyone, my name is Tej. I am the CEO of Axiom Space. Today's actually day 60 of my job as CEO. Just to jump back a few years, I invested in Axiom in their series A. I was working at Google at the time. I'm a multi-time founder myself and actually swore

I would never go back to startups. You're addicted since he's an addict, he can't stop. Exactly, there's something wrong with us in the best possible way but you know once a founder always a founder and I think of myself as a founder mode CEO at the company. The company was founded by Dr. Cam Gaffarian, space legend, he has multiple unicorns in the space sector. I invested because Axiom Space won the exclusive contract to attach its modules, its commercial infrastructure,

its station to the International Space Station, which is coming down. It was designed from day one to have a certain shelf life. And the way I saw it is this small startup had the ultimate beachhead, literally an exclusive contract for the most expensive product ever built by humanity, $150 billion spent to put that thing up, that giant thing, and then 5 billion a year by 15 countries with all this incredible science that's just

ready to be commercialized. And I was like, all right, this is, this is where I'm going to go all in. commercialized and I was like, all right, this is where I'm going to go all in. Also I'm from the, I'll say the dot com bust era. I got to taste the boom a little bit, but I really got to viscerally feel and swallow the bust. And I see a repetition in time. I see like 1995 all over again. And imagine if in 95 you knew cloud computing was coming,

you knew mobile was coming, you knew AI was coming, how you would invest and how you double down. And that's really what I'm doing with my money and my time. That's interesting. I really like that analogy. Let's stretch it as far as we can. You could kind of get like DARPA net as the ISS, what are gonna be the breakout applications?

We've talked to a lot of different founders, communications, ISR, put a camera in space, put a wifi router in space, basically, those are the obvious ones. What else is interesting? What do you think the breakout applications in space broadly will be from tourism to asteroid mining? You name it, you're the expert here.

Yeah, so let me just answer that upfront and I'm gonna bring it back 30 years to 95 and bring it back. But first, quickly before I do that, I was smiling when I joined for two reasons. One is I had two interviews today. I had CNBC and I had TBPN and my comms team puts a briefing together and it has dress code.

And CNBC was where your Axiom t-shirt. Okay. And your podcast was where a button down college. That's hilarious. Who's the legacy media now? Yeah, we are the legacy media. Reminding me also like two things. One is in my startup days, this was like 2007 to 2017,

we called it the uniform. Like the most you'd ever dress up is a collar shirt, a blazer, I didn't even own a suit, so I couldn't say a suit jacket and jeans. And you knew you were fine. If you were asking for money or you were trying to recruit someone or closing a deal or hanging out with someone in t-shirt and flip flops,

you're okay. So I quasi put on my uniform today. Well it looks fantastic so thank you. It is not a requirement by any means. It is a great sign of respect. Yeah no and the other thing the reason I was smiling is you're talking about Stephen Hawking's voice. Yeah. And like as you were, and I knew the Neuralink I was on before, but I wasn't listening, I was in the waiting room. But as soon as you said it, like we can all hear it. We know, right, in terms of branding.

And you were saying how like people will be downloading voices, and you could use that as a thing. It kind of reminds me of how people still have like the terminal font on their computers. Or like the green matrix font, because it makes it look like it's like pretty cool. So like that might be another application,

but sorry, getting back to your question. I'll answer it directly. What I think the big breakout markets, I think each of these will be their own trillion dollar market in the next couple of years. First is orbital data centers. So data in space. I'll tell you personally for Axiom, first is orbital data centers, so data in space.

I'll tell you personally for Axiom, our modules, which are life support vehicles, are cloud first, they have to be. You can't support life without native cloud computing. I'm not talking for streaming or gaming or communications, literally for all the systems that it takes to keep humans alive. So if you think of that infrastructure, and like I said, I will jump back 30 years to 1995,

but that infrastructure can be fractionalized and it can be shared and costs can go down to zero and below zero where you're giving startups credits to use that infrastructure so they can build their apps. So I do think orbital data centers, and I think it's as simple as data centers, 400 kilometers up versus somewhere on the ground. And there's other challenges, but interestingly, the same limitations, power,

right, what we have here. That's the first one. Second, I think it's pharmaceuticals, drugs that are tested in microgravity that will change humanity forever, that have just been science experiments to date. We have seen the first drugs that were tested on the Axiom 3 and Axiom 4 missions that have gone to human testing, clinical testing, FDA approved testing on the earth.

So you're seeing decades of research now becoming a reality, becoming commercialized. And sorry, on the data centers, we've been running workloads with Amazon since our first mission, AX1 in 2022. We sent up an AWS computer, and we've been running workloads from the ground, basically making money off bits versus atoms.

And we'll talk about the business model. The space business model is all about atoms. It's about up mass. It's about kilograms. It needs to change. So we're proving that. And the third is advanced materials. Whether that is manufacturing of those materials up there,

or if we're talking about semiconductors, maybe even doing some testing in a pure environment, I wouldn't say pure, I'd just mean no gravity affecting it, and maybe doing the development down here, but I think those three will be breakout hits, and I think I'll be as bold as, say, this decade. Yeah, people are talking about ZB land in space. Ultra pure crystals grown for super high throughput data

transfer. So yeah, lots of interesting stuff there. I do have a follow up on the data center in space thing. We've heard from some folks who are just really in the weeds on data center scaling for those large AI training runs that there's still just messiness where sometimes you gotta unplug it, plug it back in.

Sometimes you gotta reseat a chip and just dust it off or something. It's just a messy thing. And so putting it in a truly stranded environment where there's no humans, there might be new questions. So I'm wondering, is the narrative, like you solve that with like a humanoid robot or maybe a human on a space station in space,

or maybe you go to NVIDIA and you say, hey, you need to make a ruggedized version of the H200 that will just never fail and is more. So are there any other developments that you think need to happen aside from obviously, like launch costs need to continue to go down, like we need to continue to send up mass to orbit and whatnot, but on the actual data center side,

is there anything that you think is, you know, another key milestone that will unlock that opportunity? Yeah, so it's all the above and a little more. But then I'll touch the launch cost piece, and like I said, I'll go back 30 years. And by going back 30 years, we're gonna pull the space industry forward 30 years. That's how big an opportunity this is.

So on the data centers, yeah, it's messy. So the first part is, it requires humans. And Axiom's entire business and product line is based on more humans going to space. We've sent 16 in the last three years. I'm extremely proud of our team. I'm extremely proud of myself. In that story of me joining Axiom, I invested, then I started advising the founders, and

then I leaned in and I said, there's a big opportunity here for the demand side, locking in the market demand. And I spent the last three years of my life, the last four years of my life traveling the world, meeting with world leaders, prime minister, president, ministries of defense, economics, education. And the demand is very real. Right. So if a startup of a few years old, a guy who had never done anything in space, although I'd been dreaming about it since I was three, is able to architect these massive deals. And just to be clear, I will always refer to us as startup

because we're 100% a startup in every sense of the word. Our deals are anywhere from like 50 to 150 million, right? We're gonna do north of 400 million dollars. Congratulations. It's a big doll right thank you. You know and it's funny at Google I had a couple of business lines I had a couple contracts over a billion dollars of ARR.

I had a business unit that brought in half a billion dollars in a year and what you know what happens at Google if you don't bring in a billion. They shut you down. It's life or death. It's crazy man. dollars in a year and what you know what happens at Google if you don't bring in a billion you know for any single deal that I've done was larger than the enterprise value of any of my startups right so each of these are massive startups so we're a hundred percent based our product lines are all about what we think is going to be this inflection point for the number of astronauts going up and I'll give you some numbers on that as well. But this is we're building product lines for where astronauts live, Axiom station first connected to ISS, how they explore Axiom is a sole provider of space suits. The next human step on the moon will be wearing an Axiom space suit. It's kind of insane that that's I can't even say that.

And then we're building the labs like this, the data centers, pharmaceuticals, advanced materials. This isn't theory, right? We've done it on the X four mission right now. Um, we have done a deal with, uh, aura and the ordering interesting. Yeah, it's awesome. I, uh, I just got this aura 60, 60 days ago and I love it. But it's going to be a wearable checking the health metrics of an astronaut. And then this is the craziest part, feeding that to our cloud computer up in space. So remember I told you we sent up an Amazon AWS computer on AX1.

We've sent an Alexa up. We've done some edge computing. So I'll touch on your point about ruggedizing the materials. But for us, it all starts with humans. So yeah, whether that's a human taking out a hard drive or a rack that got messed up with radiation, which happens all the time, it's going to require humans. I think the next step is robots, humanoids, ruggedized material for both cases. The one piece I think you might be missing is just disposable, right? You know, there's something to be said about aging technology that if it's safely retired

and burnt up and doesn't cause environmental problems, it's actually cheaper and more effective just to send up the next generation technology. Yeah, you know, you see an interesting compass, like, if 200 years ago, you just don't want a bunch of melting H100s like falling on us. If 200 years ago you told somebody, I'm going to order something from across the world thousands of miles away. It's going to arrive here.

I'm going to use it for a few days, and then I'm going to throw it away. You know, like some disposable uniform or a shirt for an event or whatever. It's like, we'll get to that point with space where we can send things up that don't need to last for months or years or decades. And it is-

Axiom's orbital data center network, we call it a heterogeneous network. So like a satellite constellation, they're all exactly the same. You send them up, they have the same functionality. Each version of it gets stronger, more powerful. Each of our nodes is different, right? Our first two nodes are going up next quarter and they're normal satellite orbital data centers with optical comms and compute. Our module is a data center with the specialty of maintaining human life. Our lab will be a data center with the specialty of maintaining human life.

Our lab will be a data center with the specialty of doing robotic testing or human testing on experiments. And our manufacturing platform will be a data center with the capabilities of doing 3D printing. What ties them all together is the data. So if one of them were to go down, you don't lose the data. That's the whole point of a network and the zones and nodes. But if your old data center,

like yeah, you could replace and upgrade it, but at that point, the cost versus the actual value you get for sending a new one up, again, if you had a safe way to dispose it, it actually makes more sense for it to be disposable. What story do you think we should be telling ourselves or what story should be written in the history books about the ISS? I remember I saw this movie, which I know Jordy hasn't

seen because he hasn't seen any movies, Valyrian and the City of Thousand Planets. And it has this really cool opening montage by the director who did the fifth element and basically it starts with the ISS and they just keep adding modules to it until it gets so big that they push it off into deep space and then aliens come and add on modules and it turns into this like massive cluster and it's like crazy sci-fi movie but I thought that idea of just like layering on the ISS this happens in Seven Eaves as well, the Neil Stephenson book. And I was and when I tell the story to myself, I was super inspired as a kid by the idea of the ISS.

It was amazing that it got built. But it feels like we're just kind of like, OK, job's finished. And we're not really going bigger and bigger in terms of like human space stations. So how should we think about the ISS when we look back on it? Is it just like the moon landing? It was like a science project that we did. It was cool, inspiring, but it didn't really grow into anything.

Our private company is going to take up the mantle. Where does all this go? Yeah, so I think the legacy of the ISS and the value is created for humanity on the scientific, the engineering, the diplomatic level is all incredible, right? And we should always remember that. There's a lot of shit that's going on down here that up there, it's still peace, right? And it's when they look down and when they work together, they're one team and we're

one team down here, right? Regardless of what we hear. And it's inspiring like the aX4 mission right now Four countries US India Poland and Hungary India Poland and Hungary. They're saying their first ever Citizen to the ISS. Well, I saw them cross the hatch I'm gonna get emotionally even talking about it seeing these guys smile And then address their nations in their own language first First time those words are spoken up in space. Like magic.

Three billion girls and boys saw that yesterday when my parents took me to Kennedy Space Center, I was three years old. My dad is an electric engineer. I was like, what the hell's going on in that big building? And he's like, they build spaceships there. And I, it was a defining moment of my life like it was I was a three-year-old cranky kid and in that moment my mind my heart my soul just erupted and like it was like the universe telling me that this is alignment and that set me on a path for

entrepreneurship engineering exploration three billion kids just got that you know like two billion people but yeah it's. But yeah, it's a big deal. So we have to remember that. Sorry, go ahead. Finish and then I'll ask the question. Yeah, so that inspiration, that hope, that proving that we are one species, that's ultimately what we will remember

the station for. What I want to remember was to remember, and when I say I, this is probably more in the start-up books or blogs or whatever it will be in the future, is the ISS is what allowed space to be free. And what I mean by this, I mean access to everyone. So Axiom Space started eight years ago. We've sent four missions, 16 astronauts, 12 nations, nations that had never been to space before, the first ever Saudi female to go.

Um, we were the first ever to send an all-European mission, the first Turkish astronaut after that horrible earthquake they had, as I mentioned, India, Poland, Hungary. So free in the sense that we freed it. Everyone can go, but more importantly, we brought the cost to free or below free. And what I mean by this is as long as we keep the narrative of cost per kilogram is going down, we're basing an entire economy on cost. Our friends who are watching this, none of us think like that. We based it on value, right? We think of cost of acquisition, lifetime value of a customer.

How are you increasing enterprise value? So again, going back to the 90s and early 2000s, my first startup was built on AWS Activate. We were one of the first customers. And I probably, if it was a year or two older, would have spent 3 million bucks on a server closet, you know, to get it all set up. But now, if you're a startup looking to build your app, Amazon, Google, Microsoft will pay

you 100,000 bucks in credits to build your app on their platform in the hopes that you're the next Spotify or Uber or Netflix, and then they grow as you grow. Yep. Cloud is not free. They were spending billions and billions of dollars on infrastructure, orders of magnitude higher than the space station just to get Google search going, just to get the Amazon store going, just to get the app store going. And then they realized you fractionalize it and you make this accessible for everyone.

So I think the big thing in this transition from the ISS to commercial is we just don't reduce the bar. We remove the bar completely and enable multiple entrepreneurs to knock it out of the park. Super exciting. Last question. Do you see yourselves as like a space prime? It feels like you're very multi-product.

The comp for me down on Earth would be the traditional kind of defense primes that develop kind of a broad capability set and then pursue it from, is that the right framing? It's not a bad framing. Prime or integrator, some have called us a global space agency. Like I'm a tech cloud venture guy.

I like to think of it as a platform platforms to ambiguous in my opinion you could think of us as the platform in the Microsoft in the Bill Gates definition where the value that's created on top of your company will be greater than the value that you capture right that's exactly right there the second word I was just about to say is and this is I'm this the first time saying you know public setting think of it as an operating system yeah right what Microsoft did like so and this is the first time I'm saying it in a public setting, think of it as an operating system. Yeah. Right?

What Microsoft did. So if this is the space operating system for countries, corporations, civilization. This is why I think now is exactly the time to invest because if you believe in space, it's not a question of why should we go, we shouldn't go. It's okay, when are we going? So this is what all investing is. You're betting on timing. And I feel so strong that 2030 is that Microsoft

Windows moment or the iPhone moment or the chat GPT moment for space. And if you know it's five years from now, like this is where you go all in. Wait, one last question. We've asked a lot of space people this, what's your P moon? The AI folks have the probability of doom.

We have the probability that you will, you personally will visit the moon before 2050. Over, under 50%, 10%, 90%, 2050, probability that you have set foot on the moon. Over 50%. Over 50%. If you were to say the probability that I would go to space, I'd say 100%. Yeah.

Probability that we all will be able to go to low Earth orbit, particularly when something like Starship comes online. Absolutely. I'll give you a quick stat. If you look at since Axiom's been around eight years, the first four years before our AX-1 mission, we sent about, we, Collective We Humanity, sent about 12 astronauts per year. That number has quadrupled in the last four years. And remember, the Dragon only takes four people up.

Yeah. And 16 of those are because of Axiom. What happens when you're sending 70 to 100 people up? Where are they gonna go? We've already proven that demand far outstrips supply at the government level at the corporate level. And we're building that infrastructure to catch up. This is that tipping point. So the moon 2050, what are we talking about? 25 years from now, I will be 73, 72. Yeah, I think it's over 50. Amazing, I love it. Fantastic. Well, thank you so much for stopping by.

We can't wait to, we'll have to do a show someday in person. Yeah, I mean, I'd love to have you back and just do a whole deep dive on the lunar economy and how you see that plan out and just even beyond and space exploration. I'm sure we could go a bunch of different ways that are less, you know.

The question for you guys, are you wearing full suits or are you guys wearing? Full suits. Oh yeah, full suits or are you guys wearing? Full suits. Full suits. Full suits. Full suits. I did the, I did the. Oh, you did the, you did the usual pants?

There you go. It works. It works. And white suits because the market is at all time highs and we're celebrating. That's right. Mine's a blue suit because it's the only suit I own. Simple man.

Simple man. Well, great talking to you. Awesome. Well, suit, because it's the only suit I own. Simple man, simple man. Well, great talking to you. Awesome, well, thanks for coming on. Congrats on all the progress. Talk soon. Thank you, bye. Yeah, talking to these space folks, and I mean, everyone we talk to is amazing, but it's awesome.

I was looking up at the moon with my son, the four-year-old, recently. And he was like, we got to go there. And I was like, yeah, I want to go there. I think we'll be able to do it one day. He's like, we gotta go there. And I was like, yeah, I wanna go there, I think we'll be able to do it one day. He's like, we'll need a rocket. I was like, well I know some people that are working on that.

And it's amazing being able to be like, yeah, actually it's happening and I know some of the people that are working on it, it's gonna be a lot of work, but we're gonna get there. Anyway, let's tell you about Numeral. Sales tax on autopilot, spend less than five minutes per month on sales tax compliance. Go to numeralhq.com.

Sign up today. Sign up today. Also, Ryan Logg has an extremely viral post. He says, beer is Narcan for when you overdose on Microsoft Teams. And I liked the comment, liked followed. Everyone, bro, you need to tell me you're creative. Is it a high like ratio?

Insanely high. 2%, riding it all the way to a million views. 2% at close to a million is impressive stuff. It's a banger. I don't know how much time we have. We have four minutes until our next. Well, we have time to tell you about Fin, the number one AI agent for customer service.

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in the first 90 days, we will give you up to one million of your money back, no questions asked. The fin guarantee. Check it out. Well we have just a couple more minutes until our next guest. So let's talk about a new unicorn alert from Arfer Rock etched the world's first transformer ASIC. I've been pushing for this for a long time. I know the etch guys. I did a long interview with them. Randomly. Surely you invested. Ha ha ha ha ha. Surely you invested, John. Mogged. Surely, surely you just threw in a.

Yeah, a check. I should have. A small check. Yeah. You know, you met them at the seed round. Unannounced round, 85 million at 1.5 billion, following two stealth rounds at 500 million and 700. And they're now raising at a

2.5 closed another round 2.5. We got to get the founders on one of the most interesting kind of AI Like future thought I don't know like thought leaders or something just like an interesting Can the the founders can just noodle on how everything in artificial intelligence plays out? They've done a bunch of interesting demos running Minecraft fully generatively, so there's no underlying game engine. It's just taking the inputs and generating the visual outputs.

Absolutely insane team, Teal Fellows, and they've been on a tear, and there's a bunch of insane stories where the founders at some dinner in Taiwan chatting up like a TSMC employee to get more line time like the hacks that this company has gone through to make this a reality has been fantastic and he's the one that told me this idea of like the like LLM's being human simulators and so the expectation should be you get

like the median human and maybe not someone that wants to kill everyone. And so he has a very low P-Doom, but he walks through that very, very, in a very interesting way. Anyway, how'd you sleep last night? Are you a big 8 Sleep fan after our photo shoot and video shoot yesterday?

We're filming advertisements now. We're not just telling you about eight sleep we're putting it all in the line shooting video ads for I cannot wait to air this I got a 76 which is oh I got a 79 I had a rough night but I still beat you play that sound effect Jordy thank you John's on a historic run. Basically my new range is I just am squarely sitting in the 70s. It's brutal. It's brutal.

It's brutal. Anyway, you gotta get on 8 Sleep. Go to 8Sleep.com slash TBPN. They got a five year warranty, 30 night risk free trial, free returns, free shipping. And in other sponsorship news, Shane Copeland announces that Polymarket has made times 100 most influential companies. Turns out that people want the truth basically

fantastic built effectively a crystal ball Shane built a crystal where is our crystal ball we had a crystal ball and we had an actual crystal ball He built a crystal ball. I say it's hey Crystal ball tomorrow's headlines today do not drop drop that, Ben. Jensen dropped, no, Masa dropped. Masa dropped it and it was very ominous, but we have the crystal ball here. We highly recommend every technologist get a crystal ball.

If you don't have a crystal ball, you can go to polymarket.com. Crystal ball's underrated as a desk object. You gotta have a crystal ball. You gotta have at least one. Put that right there so you can see it. But congratulations to Shane and the whole Polymarket team. They're on an absolute tear.

They are on a tear, as is our next guest. Welcome to the stream. Tamash, how are you doing? Pleasure to be here. Thanks for having me on. Thanks for hopping on. Boom, welcome. Would you mind kicking us off with a little introduction

on yourself and your firm, Theory Ventures? Absolutely. Yeah, my name's Tamash Nagoos. I'm founder and general partner of a firm called Theory. We build really concentrated portfolios and early stage AI and blockchain companies. We're about 10 people strong. And we've worked with nine unicorns in the past

and just we're about two and a half years old so far. So you were at Red Point for 14 years, talking to me about the decision to launch your own fund. What strategy you wanted, how did fundraising go? I just wanna hear the whole story of- 14 years talking to me about the decision to launch your own fund what strategy you wanted how did fundraising go I just want to hear the whole story of yeah absolutely so we raised fund one in late 22 which is when the Fed had raised rates 500 bits must have been not a great time to raise but we were able to raise fund one we raised about 235 we were over subscribe yeah and and then we

raised fund to about 400 a little more than 450 million two years later. Congratulations. Oh, nice. Thanks. And yeah, so we're off to the races. We have a head of AI who is head of AI three unicorns and our CEO built the healthcare practice at Palantir. And as I said before, we invest in a small number of companies and work really hard to help them grow by building out their sales teams. You're the head of AI. Yeah, the way you're talking about the firm, it feels like it's like you're building it like a company. Talk about that. Yeah, well, I think there's a pretty big change.

I mean, if you look at like hedge funds and private equity, a lot of them have restructured it to basically operating companies. And I think the same thing will happen with venture capital. We think about the products that we sell as financial products, right? When I started in business in 2008, Series A was a financial product where we invested four for 25% of a company. And that product doesn't get any buyers anymore. Because, you know, the US venture capital asset class has grown from about 8 to 250 billion during

that time, so there's a lot more capital. And so we have to differentiate our capital somehow. And the way that we differentiate is by depth. So we operate every Monday we get together, we talk about different market maps and what are research projects. And I'll give you an example. We had this amazing intern last summer. He walked in one day and he said, I think the future of AI is not with GPUs,

it's with ASICs or specialized circuits that are focused on AI. And if you believe that, then here are all the investable opportunities. And so we debated that. So we go through different market maps every Monday, and then we have this team that has, we have different departments, right?

So there's a team that builds internal software, team that builds the sales teams for portfolio companies. There are people who manage a buyer network, 200 people strong. And the idea is, well, if we can also have an investing team and we're looking at elephants in the dark and each one of us has a flashlight, then maybe with that composite view, we'll have a more refined perspective on an early stage software company and ultimately make better investment decisions. How often do you see someone else's market math and kind of laugh at it?

We do our own work, but, but we use, I mean, it's always great to see other market maps out there and have different perspectives, right? Because we're all trying to figure it out at the same time. Yeah. On the AI ASIC question, how do you think about that as a disruptive innovation versus a sustaining innovation? Nvidia is obviously Super set up to work with TSMC at scale at the same time. I've talked to some of the founders

We just mentioned etched Building transformer a sex incredible teams I wouldn't bet against them and they've been on an absolute run And so I'm in this weird scenario of like kind of being bullish on both But you know there has to be some way this plays out. Have you dug into it at all? an absolute run and so I'm in this weird scenario of like kind of being bullish on both, but you know there has to be some way this plays out. Have you dug into it at all? We've dug into it some.

I mean you've seen, I mean Google's been investing in TPUs for a really long time. You have the Amazon and French, you have Microsoft. Yeah, have their own. I think, and then Nvidia announced this week or at least there was a Wall Street Journal article talking about how Nvidia's pushing into managed cloud.

DGX Laptone, right? Yeah, exactly, right? And so they need a longer term business model. So I think there will be a pretty significant place for ASICs. You think about the different architectures of model. I mean, AMDs typically are optimized for sort of, or have been in the past for medium sized models

where the H100s are much better running the 100 billion or Multi-hundred billion parameter models because the difference in yes CPU architecture versus memory architecture So I think there's definitely a really big place and yeah, and it's an interesting spot I mean, it's the biggest company in the world three point six three point eight three point eight three point eight trillion They have to we were talking about it earlier, they have to do more than a 2X again to surpass the Dutch East India Company

if you account for inflation. But they should do it, yeah. So anyways, Jensen still has got some work. Yeah, to not be, to place it like, but at the same time they feel like the company that's under potentially the most attack from directly from startups and other hyperscalers Building their own chips. Whereas like we're not we're not hearing about Amazon taking on the iPhone and trying to build a phone to

Displace the iPhone but we are hearing about Amazon building training training and inferentia to take away market share from Nvidia So it's interesting. It's like this company's never been stronger, but also, you know, that success breeds competition. Well, no doubt about it. I mean, if you look at we went back and looked at the Nvidia PE multiple over the history of the company, you can see there are basically three spikes. There's the first spike, which is associated with gaming, the second spike that's associated with blockchain, and now the third spike that's associated with AI. And you typically have these really, really significant growth from say like a

25 X P E multiple up to maybe like 70, 80, sometimes a hundred, and then it falls back down, right? And Bill Gurley, I think, you know, I wasn't investing during the time of hardware or hard disks. And he basically said the best time to sell a hard disk company was when it was ramping up because you knew that they would build excess supply. And as a result of the excess supply, you'd have sort of an inevitable crash. That hasn't been the case.

I mean, you saw Nvidia this year trade down initially. Now I think it's done really, really well since then, maybe since February. And if Jensen can diversify to a couple of other business lines, particularly along the inference, there's, I mean, I don't know what the TAM is for inference, but it's probably measured in the billions. If not, yeah. Yeah. Also the international stuff he's been on.

We're going to have to rename it Jensen's paradox. Jevons is good again. It really is. Yeah. Sorry, Jevons. On, on, on the question of like kind of AI value accrual, um, where, you know, there's a big shift away from, you know, the value accrue will accrue to the application layer.

I'd love to hear your take on that. I also heard an interesting formulation, this idea that in the next decade there will be, uh, one consumer AI company worth over a trillion dollars and 10 B2B AI companies worth over a trillion dollars and 10 B2B AI companies worth over a hundred billion dollars. And so you can think about it as like they're equal market sizes, but one is much more concentrated. And I wanted to know your reaction to that formulation of kind of like a bet on how the

future of the market plays out. Does that feel directionally right to you? Do you think it'll be radically different? What's your take? No, I think that's exactly right. There's definitely a power law that governs consumer companies. I mean, you look at the size of Facebook and Google,

both of them consumer companies, the second place in both of those markets we don't really talk about anymore. Even Amazon, also power law outcome. Exactly right. And so that's typically the way that those consumer markets work, where you think about the distribution of outcomes

and B2B, it's much more say, Gaussian, right? There's like a bell shape. And so I definitely think that's the case. I don't, you know, we were, I had heard initially, well, so consumer investing has been a challenge, I think over the last decade, aside from a handful of names. So we were, we've been wondering about consumer investing, try to understand what is the key use case. I'd heard one of the most interesting ideas was the social network for AI bots that you would watch them talk to each other. So the three of us would train a bot,

we'd each put it into a message board and then watch them talk. And I thought, you know, could that be interesting over time? But I do think we'll see explosive growth in some of these applications. Yeah, it's odd. Like bots are fantastic at chess and video games.

People watch chess and they watch video games on Twitch, but people don't watch bots play Counter-Strike or Call of Duty. And I wonder if that paradigm holds for some, you know, I don't know, humanist reason. I don't even know what you would call it, but just like preference towards humans. Do people watch live human players play against bots?

I don't know. Rarely. Rarely, right? You would watch someone like play through Mario 64 as fast as they could, and that is effectively a single player game against bots. But it would be very odd to play a game of Call of Duty against bots because you could just play ranked against other people and you know all

that but there's still a lot of bots like floating around and people cheating and stuff so yeah so I don't I mean even in chess right with deep blue nobody watches those those chess algorithms play against each other yeah you could just watch stockfish on stockfish all day long and it would be like I guess technically impressive But it wouldn't have the it wouldn't have the I don't know the emotion the texture of like Magnus versus somebody else speaking of Competition do you lean in and try to compete head-on with platform funds based on what what you can offer or? Do you try to find ways to?

to Not have to compete we try to find ways to not have to compete? We try to find ways not to have to compete. I mean, the platform funds, they run a very different strategy. There's a big chip stack at the poker table. And so we can't play a big chip stack game. We do have the fund sizes to be able to write

similar size checks at the seed and the series A, and that's a deliberate strategic decision. So that the companies that we back are not at a disadvantage in terms of balance sheet. But in terms of competing head on where they're strong, I think it'd be foolish for us to embark on that journey. Yeah, that makes sense. So we have to find our own way of convincing founders who are the right firm for them to work with.

But that still feels like you're willing to say, OK, we're going to be competitive at Seed, but we're not going to try with. But that still feels like you're willing to say, OK, we're going to be competitive at seed, but we're not going to try to. That's like one specific area, but not holistic. Multi-stage. Well, we primarily invested the series A. Average check size in fund one was, say, call it 13, 14. Average check size in fund two is closer to 22 to 25.

And so we were able to write a pretty significant lead check. And as I said, I think capital now, just because of how much of it there is, if you're a founder and you're competing in a category and you don't have a balance sheet that's at least commensurate with your competition, you're a pretty significant disadvantage. So we do wanna mitigate that,

but we can offer a different kind of experience. If we're only working with say 10 companies and fund one, we can be a whole lot more active with those portfolio companies, particularly as they go from series A to series B. For sure. Where are you investing in blockchain on chain broadly? Yeah. Well, I mean, we've invested, we've had a lot of success in L once in the past.

We was the second largest investor in SWE, which is a 40 to $50 billion blockchain. We have investors in a company called Allium, which provides data to many of the largest financial institutions in the U.S., including Stripe, three of the top five Bitcoin ETFs and others. So I think the database layer is really attractive. You look at Ethereum, worth seven snowflakes, Q1 of last year produced 400 million in free cash flow, which on a percentage basis made it the single largest producer of cash of any publicly traded software company. And then on an aggregate basis, sixth largest producer of any publicly traded software companies. This database can be extremely valuable.

One of the key themes in the last 18 months has been stablecoins, 15th largest buyer of US treasuries. So it's absolutely an essential market for us to continue to pay attention to. And then the other thing that we're really monitoring, we believe that in the next 10 years, every major software product will have a Web3 component. And that's because today the cost of compliance

across a bunch of different geographies is really challenging. You look at Germany has very specific data locality laws, UAE has different laws, 26 states in the US have different laws. Whole lot better for a customer to custody their own data and selectively approve access and then software vendors no longer in the business of having to comply with all of these laws because they can computationally

guarantee that they adhere to the policies. So those are some of the big ideas. I got some more questions. I want to talk about different motes for foundation models that are kind of playing out right now. The value of data and maybe at Google, they have YouTube, that feels like a permanent advantage for them in VO3 and yet we're seeing other models come out that are almost as good,

and I don't know if they just scraped all of YouTube, but they got the data from somewhere. Then you have other narratives around we need new ideas, we need the best researchers possible, we'll pay a ton of money to get the best researchers to write the best, most elegant algorithms or the best code possible, maybe it's all in the application layer.

So I'm interested in this relationship between the value of data going forward. Yeah, great question. So I think initially there's a lot of value in having access to proprietary data, like YouTube or maybe like Cursor has with the initial GitHub with the access, with the initial access to GitHub. I think over time, the more valuable and rare data asset

is the feedback loop. What do you actually do with a prompt? Like is the video of the polar bear with the Coca-Cola actually the right one? That feedback loop is incredibly important. And the more of them polar bear with the Coca-Cola actually the right one. That feedback loop is incredibly important and the more of them that you have, the better the models that you'll produce. And I think that's also particularly true with distillation.

You look at what happened with DeepSecret, they were just pegging a bunch of different APIs and then copying the results and able to copy really quickly, which was why it was really surprising to me actually to see the deep research API come out of open AI this week. I thought after the deep seek moment, there would never be a deep research API aside from perplexity, which had launched it basically before

because of the risk of distillation for some pretty valuable and expensive models. So it's really, I think it's in those feedback loops. That's what I've learned in machine learning. And so the larger the number of users you have and the greater the telemetry you have there, the better the advantage. So yeah, my, my, my like read on that is that, um, it's amazing that VO three has this cornered resource in YouTube data at Google, but I've been really, really struggling to actually use that product on a regular basis because I hit rate limits, even though I'm paying $500 a month. It says come back tomorrow and you can do another three videos and I'm not really iterating on it creatively. And then we were testing mid journey video and it renders much faster and there's a lot more collaboration and feedback there. And so, I mean, Google scale is like just so massive

that I don't know if you should ever bet against it, but it is interesting that I wonder, you know, there's folks in AI who are like scale-pilled, there's other folks who are maybe feedback loop-pilled, and I'm wondering if Google's just not feedback loop-pilled enough because I don't care how on fire the GPUs or the TPUs are, like provision more Google is my take, but I don't know if I'm way offs or the TPUs are. Provision more, Google, is my take.

But I don't know if I'm way off there. What's your read on it? No, no, I think you're exactly right. Google launched the Gemini command line interface, which competes with the cloud code. And I was trying to use it for two days, and I could not. So I think in their public earnings, both Microsoft and Google have both said

they're limited on the capex side, basically. They can't produce the data centers fast enough. That's crazy. But Google, I think Google is aware of this feedback loop phenomenon. You look at the way that they subsidize fine-tuning for Gemini, the way that with the Gemini command line interface, the free tier is substantially more generous.

They're trying to acquire as much usage as possible because they understand those dynamics. But the data centers aren't there yet. And then actually, did you guys follow it? Microsoft gave up some of the Core Weave lease, and then Google took it on for the OpenAI training workloads, which was really interesting. Did you see that news?

Yeah, I saw the Sacha clip about he wants to be a leaser, and then I did see they gave up the core weave lease. I didn't know that OpenAI picked it up so quickly. Yeah, through Google. So I think Google went and bit. Through Google. Yeah. And so it seems like there are some,

at least, training workloads going from OpenAI to Google, at least, that's what I read. Interesting. Yeah. And so it seems like there are some, at least training workloads going from OpenAI to Google, at least that's what I read. Interesting. Yeah, but I mean, if OpenAI is starting to use Google servers, you can imagine there'll just be continuously increased demand. Yeah. How much of, oh.

Go for it. What are you following in reinforcement learning right now? How much of the RL story should be a foundation model story versus a new startup story? Oh, I think it's a foundation model story. I mean, a reinforcement fine tuning is probably the technology or test time compute,

whatever you want to call it. It's a technology I think has a really interesting future. And the main reason is I can dial it up and down. So today I can kind of control the classic models without reasoning, but in the future you could imagine a CEO might have 10 or 15 or 100 times the reasoning budget that a junior employee might. And on a per case basis say,

I really want you to think a lot about this problem. Maybe it's a strategic research project. Whereas if I'm just looking for a summarization, but I want to make sure it's correct, I'll give it a very, very small budget. I don't know in the product how we expose that to users in a way where they can do it intelligently. Maybe it's already happening. I mean, I mean, it's already happening. It's just instead of money, it's time. So if I have, if I have one minute, I'll hit four. Oh, if I have 10 minutes, I'll hit Oh three pro. And if I have one minute, I'll hit 4.0.

If I have 10 minutes, I'll hit 03.0. And if I have 20 minutes, I'll hit deep research. And time is money, and so I'm making that economic calculation right now all under a $200 a month umbrella. But yeah, in the future, that could clearly just be, like you put a price on it. Right, and you could say, I want that deep research query

but I need it in five minutes. Am I willing to spend $100 on that query? Yeah, and that's kind of what Mid Journey's doing with like the different tiers don't get you necessarily more total inferences, it's more about where you are in the queue and the speed of your response. Exactly. It's fascinating. That's a good point.

Jordy, sorry. How do you think about the convergence of all software, the feeling that there's a convergence of all software companies into just the sort of chat interface? We've seen Wix making an $80 million acquisition of this bootstrap company. We saw Airtable launch a text to app product, which makes sense as a database company.

Figma launched their product earlier this year. And they all make sense in different contexts. But do you think some of this is driven by, like Wix, for example, just like FOMO and disruption? Or you just think that that is where software is going, which is basically we have certain data in some places and there's platforms and everybody's just gonna make, instead of buying software,

you're just making it in different places. Yeah, that's a great question. I mean, all of the existing companies are looking to retain their users and expand. And I think the dynamic here is like, historically you've had like last 10 years, all been subscription, and now you have AI usage, AI credits.

I would guess just given our usage on some of these platforms, that the AI credit usage is probably two to three times the size of the subscription revenue fully deployed. And so you need, as a software company, in order to hit some of these growth rates, and I'm sure you guys saw the V0 chart, you need exposure to those kinds of use cases and those credits just to be able to compete. And then you want to retain those users. And you're right. I mean, there's the chat interface.

There's like three or four interfaces that everybody's building. There's a chat interface. There's the app builder interface. And then there's like the workflow builder interface, the SDR equivalent. How do I enrich a lead? And you have like the project management companies building this, the website, internal tools. They're all kind of trying to capture as much of that spend as possible. I think strategically, if you're a young startup, then the question is, okay, well, how do I

differentiate myself against one of these, I can do it all platforms? Do I do what Salesforce did and take out an individual workflow and optimize end to end or do I actually need to build broad and horizontal? And that I think, and that's why a lot of these companies have been pushing into verticals, right? Whether it's like healthcare for, uh, prior auth authorization or whatever it is. Um, but yeah. And so there's a big strategic question there of ultimately how do you compete?

The other dynamic here, which I don't think has gotten enough press is you have the model layer, you have the UI layer, and in between you have this sort of like context layer. And the better an enterprise has its context, these are the kinds of customers that engage with, this is the way my data is structured. This is what happens in particular use case, the better that structure, the better the ultimate performance of an AI product. Historically, that's been embedded in Salesforce and worked in all those kinds of companies. The question is, does the enterprise actually

want to control it because it is so valuable? Yeah. Yeah, do you think memory, it feels like memory is not a massive moat today? Maybe we're starting to see it with ChatGBT. Do you think it can become something that's durable? How do you think about motats broadly in the future? It makes sense in the context of healthcare applications

or even in banking and things like that where there's like hardcore regulations and we can talk about network effects, but I'm curious how you see Moats evolving. Well, memory in the consumer use case will be really significant. The more time I spend with Chat, GPT, or Gemini, the more likely I am to spend time.

So I think there's a reinforcement effect there. I think within the enterprise, I suspect it will be the same thing, right? Where, especially across individual teams, maybe not across the entire enterprise, but it's pretty critical. So it's essential. I just can't tell whether enterprises will be okay

giving that memory to foundation models and say, we're gonna standardize, we'll standardize on chat GPT and give them the memory, or they want the ability to move across clouds and across models. And I think that materially changes the way that software will be built depending on who ultimately

controls that memory. Yeah. It's interesting to think about the motes that exist due to the work required, like the switching costs, when you think about something like payroll, where nobody's like, oh, I'm super excited. We're switching payroll. It's like so much work.

But then you can imagine a world in the future where you have like agents that are just good at migrating payroll providers. And if that workload becomes something that you can run in a 24 hour period and this sort of agentic workflows that do all the heavy lifting that would have taken a team of people,

like thousands of emails and all these weird edge cases. It's like, where are the moats? Where are the moats? Yeah. I have a follow-up on the kind of startup metrics. We've seen a lot of charts of folks getting to 100 million ARRs really, really fast. There's been this like lurking overhang of like,

will there be massive churn? Is this all exploratory budget from Fortune 500 companies that are gonna wind up just going with the Microsoft option ultimately or something? Or someone has some mandate to test every AI tool in every corner of their company so they spend a bunch of money and then it doesn't stick around.

Do we need a new metric that combines kind of like short-term churn with ARR to kind of give, to help underwrite at the series A phase? Well, we're looking for the net dollar retention equivalent, right? So net dollar retention in the past is just value of an account over a year, and then top quartile would say 125% after 22. I think that's the longer term metric. The hard part and the reason it's so hard in early stage investing is you use that 14 months or 24 months to look at longitudinal net dollar attention. And now these companies are growing so fast. Let's say a business goes from zero to 112 months.

You might have a quarter, maybe two, to look at the net dollar attention and you can't determine whether or not you can annualize it. But you have to value the company. And so that's really hard, right? That's a new muscle for early stage software companies. Yeah. The other dynamic is sort of like this credit dynamic where you

buy access to AI credits. That's older. You'll get snowflake with the remaining performance obligation. Same idea today. And people are annualizing. It's not really ARR, but at scale, you have a sense for the overall consumption patterns of your customers and so you can annualize it.

But the first one is really hard. And so rewind 10 years, a top-to-cell company would go 0, 1, 5. So at the time when you were valuing a company at four or 500 million, you had 24 months of longitudinal data. And you could look at those patterns. Today if you're valuing an AI company, it might be a quarter into its history before it hits three, four, 500 million in valuation. So you're basically taking the same risk at that round as you would be at the seed, because

you have the only additional information you have is whether there's great customer adoption. Yeah. Right. But you don't know whether or not how long it will last. Can you unpack the credit dynamic a little bit more? I remember hearing stories from the.com boom, how internet service providers were investing or offering loans to internet companies. And, service providers were investing or offering loans to internet companies and that was kind of distorting the market a little bit or it was like kind of mispriced potentially and then we've seen hyperscalers,

they make balance sheet investments, they offer credits. What is the current state of affairs in the relationship between the big players and the startup ecosystem that may be distorting or maybe something we need to keep an eye on in terms of valuations? And can you explain in more granular terms? Yeah, yeah, no, great question.

Okay, so in the dot com era, you had this dynamic where you had these circular ecosystems. So one company would raise venture capital dollars and then they would pay to advertise on another company. And then that company would raise venture capital dollars, and then they would pay to advertise on another company. And then that company would raise venture capital dollars and pay to advertise on another company. And so all of those companies as a whole would rise and fall with that little economy.

You could take a, you can make a similar argument, which is Amazon invest in an AI company and says, we'll give you a billion dollars, but we'll give you 600 million of that in credits. And so we know that you're going to take 350, 400 million of that and immediately turn around and spend it on the WS. So is that really an investment? Is that a closed economy?

Can you value either the startup or Amazon web services based on that revenue? I think there's a big difference here, which is just like within the dot com era, that ecosystem was really small and truly closed, right? It was just a bunch of companies sending eyeballs back and forth and companies candidly were valued on overall traffic here. Morgan Stanley ran a survey at the enterprises. Half of AI spend is from existing software spend and half of it is brand new.

So there's a lot of new GDP coming into the ecosystem, which tells you it's more resilient. That's 10 cents. I'm going to say something and then I want you to react to it. So in the dot com era, we had a bunch of companies valued in billions of dollars with with huge losses. And that became a problem over time. Now we have a bunch of AI apps that have a lot of revenue in a lot of different cases. But then we have foundation models that are valued in billions of dollars, many billions of dollars with huge, huge losses.

And I've been trying to unpack how many of these companies the capital markets can support and for how long, because we have some foundation models that generate a lot of revenue. And then there's some elephants that aren't right now. And they all have plans or concepts of plans for how to generate a lot of revenue. But they're not doing it yet, not to call anyone out. But between SSI, who's not focused on launching

a product, commercial products immediately, to Grok, which doesn't have consumer dominance or seemingly enterprise dominance right now, there's a variety of players that are gonna need to put up some tremendous growth pretty quickly. They've got big balance sheets now, but they won't stay that way for that long unless they can create some some real traction.

Yeah, great. I mean, there's I think my parallel is like the networking companies of the early 2000s. You had Quest and Nortel, who grew really, really fast, super capex intensive businesses, building out, connecting basically every computer to every other computer. It's kind of a necessary thing. And ultimately, if you got out at the right time, you made an unbelievable multiple. But if you got out at the wrong time, you could have lost your shirt pretty significantly. And that was, you know, there's a great parallel here, which is these businesses, the foundation models,

they require huge capex. I mean, the OpenAI data center Stargate at full deployment will consume as much electricity as all of Ireland. Right, just to keep the core science at scale. That sounds exciting. And so, you know, like there's, there's a lot going into them. The business models are unclear. A lot of them have been unwilling to show advertisements because more ads you show,

the greater the consumer deflection or bounce rates. And then some of like Anthropic is more B2B chat chat you be the open AI is more B2C But yeah, and then the capital markets will see how long they're able to to sustain but the yeah Well, it's been amazing noodling on all this with you. This has been really really fun Yes, we'd love to have you back and just chop it up about a million different topics. I had a blast It was great meeting you. So thanks so much for hopping on. Thanks for having me on guys pleasure to meet you Both yeah, I hope we can do it. Hey chatting talk to yours. Bye bye Really funny. Let me tell you about ad quick comm out of home advertising made it easy and measurable say goodbye to the headaches of Addertho out of home advertising ad quick combines technology out of home expertise and data to enable

Efficient seamless ad buying across the globe And our first out of home campaign is live in New York City. Just seeing some pictures trickling. I got the first picture last night from my buddy, Jamie Selter. Apparently our billboards are on his block. Amazing. And he was walking his dog.

Targeted. It was very targeted. We targeted you, Jamie. Yes. And he was just like walking his dog. He was like, wait, what is this? I think he was like thinking that he was in a dream, maybe. Technology dream.

Yeah, why are they following me around? But if you're around SoHo, you will see our billboards. So send us a picture in the next 24 hours. Yeah. We'll send you a hat. Yeah, fantastic. We're almost ready for our next guest, but let's go to this post from Lulu.

She says, the center of gravity for tech comms right now is recruiting. The war for talent is more heated than ever. The top 5% of people are making 95% of the impact. If you're a startup, do not waste energy on being liked by the general public. Focus on reaching the few dozen people you need to hire. Bunch of interesting takeaways from this.

Reminds me of DJ Neuralink is doing this announcement to recruit. You can't buy a Neuralink right now. They don't need you on a waitlist. They need you to go and work there. If you're absolutely the top of your field. And so I think a lot of that is kind of a new paradigm. I wonder where this goes. You can also see it with, I mean, the question is, is Cluely doing the right thing

on tech comms to recruit? They're very, very good at recruiting influencers and creators, and they have, clearly, the 50 interns that they hired, I don't know how many they actually wound up. All those people have social media followings and be able to create a lot of content. I guess the question is, is that going to translate, is their current communication strategy going to translate

into great product managers and engineers and everything that they need to do to build out the actual product. But you know, product works. We reviewed it. Clueless launching their product at 3 p.m. Pacific today. Today? Oh, we might have to stay live. Another news, Meta seeks $29 billion from private credit giants to fund AI data centers. So this just got announced a few minutes ago. Apollo, PimpCo, among the lenders in talks with Mark Zuckerberg, social media giant.

Ooh, that's a good hit. Meta is looking to raise $29 billion to fund its all-in push into artificial intelligence, according to the Financial Times. Love it. But on that note, speaking of... Another watch for Zuck. Go to GetBezel.com.

Your bezel concierge is available for now to source you. Any watch on the planet. Seriously, any watch. Anyway, what were you going to say? You're addicted. Let's bring in Ken from Republic. Fantastic. He had a big announcement launched this week.

I am thrilled to talk with him about it. I'm going to let you take the intro. Perfect. Hey, guys, how are you? I'm Kendrick from Republica. Thanks for having me. Great to have you on the show, Ken. What's happening? Oh, man, just chilling in New York.

Perfect weather. You're never you're never chilling. You're never you're like the least chill guy. You're working 20 hours a day. You know, we're all going to have have a really long good rest when we die, so YOLO, you know, still alive. We just gotta keep on moving. Are you intentionally video off by the way? Oh no, I didn't realize that. Give me one second please.

I apologize, I'm dialing in from while being on the move. Let me turn my video on. Sweet. Just one second, yep. I am pumped to hear about the launch this week. You guys were tearing up the timeline. There you are, perfect. Hey. Nice.

How are you guys doing? Awesome. Well, give a quick intro on yourself, your background, and then Republic as well. And then I want to get into the launch. Yeah, you know, just a reformed lawyer being intact for life forever. Started out earlier in Angellis. We launched now a decade ago and the whole goal is to make sure that you know private markets and public markets got to become much much more accessible not

unlike how the internet really transformed commerce right now we all buy things and everywhere and I think the next phase of it is ownership. Whatever it is that we love, whether it's SpaceX, Neuralink, a movie, a song, we all gotta be able to to be able to acquire a little bit of a sliver in that. And I think the world is moving fast in that direction with or without Republic, which has happened to be at the forefront of it for a moment in time.

Makes total sense. Break down the launch this week or the announcement this week. I know this has been in the works for quite a while. This has been, I feel like this, the Mirror Tokens product is something that has probably been in the back of your mind since even years before you started the actual company.

So, break it down for us. Yeah, yeah. You know, like at the end of the day, it's just about how do you fractionalize any asset? It can be public equity, it can be private securities and leveraging what is an evolving legal framework. And of course the technology, fractionalization, automation, two key elements of blockchain as a technology and bring that to the masses.

And what we launched earlier this week is a token that provides performance, basically benchmarked to that of SpaceX. And you're going to see other companies that maybe XAI, OpenAI, Neuralink and beyond getting rolled out on Republic. It is going to be controversial, but it is basic traditional financial engineering package around an innovative framework that is a technology, a legal evolution around it to make this possible. But this is something that I think with or without Republic, again, it is going to be an emerging trend, which has happened to be the one

that introduces it to the market. So talk about the mechanics more, because I think people would see the launch and they would just immediately think that you acquired some SpaceX shares and then you were effectively fractionalizing them and putting them on chain. But from my understanding,

this is closer to something like a prediction market. And then- No, not at all. It's not a prediction market. We may indeed have exposure to SpaceX in this case. It probably is not a direct ownership of one-on-one shares. But as you know, SpaceX Secondary is in a private market.

People have SpaceX exposure through SPV, SPV and SPV and three, four, five levels. All the same, at the end of the day, Republic is going to promise that when you make an investment or when you purchase a whole Republic SpaceX token, when SpaceX expires, this is a liquidity event that is to acquire or most likely go public. Whatever that return in value proposition, again, the performance of a SpaceX share that is prized comparable to market today, you're going to be able to turn in that token and get the exact economics back.

So that is an obligation, an economic obligation from Republic. And of course, we have exposure to make sure that we underwrite and going to be able to fulfill that obligation. But it is not a one-on-one space actually. Yeah. So when somebody buys one of these tokens that's representative of the performance, they're not buying, they're not buying direct, they're not buying direct, they're not buying equity, they're buying again, basically an option on the rate of change in the future to some degree. Could you give some type of-

I'm having a little bit of a technical snafu today, but can you hear me okay? Yeah, you sound great to us. Can you give us some comps and like other types of like sort of financial engineering throughout history that you were kind of inspired by in the creation of this? Yeah, I mean, the history of Republic has been dealing with retail investors and enable them

to buy private securities. The early phase of it, we call it crowdfunding, which was like a dirty word for many founders in VC. But at the end of the day, it means one thing. How do you get the general public the opportunity to participate in private companies, whether it's an early stage YC company or SpaceX Neuralink. And people don't really care if it's a direct interest on the cap table or a comparable economic interest.

We're talking about emotional identification. The fact that someone say that, hey, I'm gonna park way with $10. And I believe in this technology and when it succeeds, I too wanna, you know, share in that success. It can be structure, it can be a derivative, it can be a financial engineering product. That may not be required one day, but right now that is needed to see this through.

And what we're doing, we do not need SpaceX consent or permission. This is a Republic financial product and an obligation on the company that we're gonna deliver to those who believe not just in SpaceX, but in Republic as the market participating as well. Is, wait, wait, hold on.

Like, okay, so you don't need SpaceX's approval, but if I were to create a list of people that I wouldn't want to make angry, I think Elon Musk would be right at the top. So, like, is this like, you better be ready to, if you're not asking for permission, I hope you're really, really good at begging for forgiveness. Well, well, you could say lawyer up, but Ken's a lawyer.

He is a lawyer, yeah, so maybe you'll figure it out. I'm rooting for you. This feels like something that could be very successful. It also feels like you're maybe poking a bear, a very large bear. But like, have you thought about that? Yes. And again, apologies. They have to leave my video. Yeah, no worries. And you guys look incredibly sharp, by again apologies. They have to leave my video off. Yeah, no worries And you guys look incredibly sharp by the way You know at the end of today I think obviously elon like the the man of our generation right what an incredible brilliant human being there's no doubt that the notion of out that the notion of everyday folks, fans of his and SpaceX in the US and around the world being able to share in the upside, I don't think he's against that at all.

He certainly has, I assume, some concerns around information and pricing and all of that. And I'm quite confident that we can deliver a product in collaboration with companies like SpaceX and OpenAI so that we can address their concern while not stopping what is a financial evolution and a social trend. Listen, if tomorrow Republic stop doing this, the cat is out of the hat. Binance, OKAX, whoever in Vietnam and Abu Dhabi and Saudi can easily roll this out and there is nothing that these company can do about it,

particularly in those markets. So we hope that we obviously have not just investors' best interests in mind, but our partners. So I'm hopeful that in a week or two, I'm gonna come back and be able to tell you guys that there's a collaboration going on rather than there's a lawsuit in the federal court. That's exciting.

Well, yeah, we definitely wanna hear from you. Last question. Will the tokens be liquid or illiquid? Is this something that you're buying and then it's sort of trading in real time? I bring it up because if this had been live a couple of weeks ago when the Yuman Trump blow up. Static fire tests failed.

That or the blow up. Oh yeah, that, sorry. I'm just a nerd. The small blow up, you could imagine that there being some sort of trading activity. Yeah. Dude, the whole point of this is obviously liquidity. I mean, the entire, listen, secondary SpaceX shares have been traded and sold and packaged

among family offices and institutional investors. We all know in every single market, layer after layer, it is the liquidity and the retail component of it. And this being on chain and us and one of our subsidiaries have the license to enable secondary trading of digital securities among non retail US investors so yes the whole point of this is so that people can trade you know what they have and and market dependent so the future that what you had just described, fast forward a year is what we aim to see

for all of these major companies. Very cool. Well, thank you so much for stopping by. Thank you for joining, Ken. We'll have to have you back for more developments. This is fantastic. Always a good launch strategy to poke a bear. Yeah.

That's a good way to get attention and we're super excited to see how this plays out and definitely feel free to jump back on on thanks so much for having me guys fascinating so there is a bull case here I feel like there's a bear case the bullcase is like there's gonna be you put space a SpaceX derivative on chain there is gonna be such an obscene amount of demand for it. Yes, yes, yes. What I mean is is is bull case for like peace and no drama and no lawsuits and I think what that means is that basically what are the benefits of

having retail of being a public company. You could potentially have a retail army of supporters who are who are supporting voting for policies that help you lobbying, calling congressmen, publishing YouTube videos, promoting, hiring, all these different things. But what are the downsides of being public? Well, all the different shareholder improvements, getting marked on a daily basis,

all these different things about, even just stock grants for Elon, we saw that with Tesla. He kind of ran the ultimate A-B test with SpaceX and Tesla, and I think he's had a much smoother time at SpaceX than Tesla. And so he might not wanna go. Yeah, but it benefited from the crazy retail army at Tesla, who will buy his cars, who will defend any action.

So I think what you're getting at is there's potentially a world where companies have these sort of assets that are representative of their underlying equity that are liquid and that are getting marked daily. But if a company can basically say, like, we didn't permission this, we don't have any information requirements. Exactly.

And we don't even care what happens over there. People can do whatever they want. If they're excited about investing in us, great. But we didn't raise capital from them. We don't have an obligation to those token holders. We have an obligation to our shareholders. And there's a world where this could be some type of happy middle ground.

The question is, are there downsides to having this secondary, tertiary, we're gonna call it tertiary markets, I guess, where, like, imagine there's $5 million float out there and SpaceX in this tertiary market is trading in a trillion dollars And then you go out to raise or do a secondary transaction and there's this question of like what is the true price discovery? You're trying to benchmark it to the retail price, but then the insider institutional price is different. Or in the bad case, what if this tertiary market grows to 20 billion dollars, and you're like,

wait, I want to sell some of that as primary, and I want some of that on my balance sheet if I'm a growing company and raising money. And then the companies go to Ken and they're like, hey, we got to partner up here. Yeah, yeah, yeah, so there's a bunch of interesting solutions. I'm excited to cover it. Certainly exciting yep exactly. Anyway our

next guest here is here in the studio. Kirsten Green welcome to the show. Welcome. How are you today? We're doing well. Quite the day. You guys look very dapper today. Well, the market's up. We always on a great day in the markets. All time highs. The reasons to be happy. Yeah, all time highs. Always. We're very happy about that. And massive Neuralink News today, big launch from them.

That was a lot of fun. And you've had a busy week as well. Yes. I have. I missed the Neuralink News this morning. I've been, yeah. Yeah, take us through the conference. What was the structure?

What was the goal? What type of people were you thinking about inviting? And then I wanna go into some of the learnings and what the current vibe is. Okay, cool. Conference, funny, because it started out like a couple of weeks ago, I think six weeks ago, as a happy hour, a

themed happy hour. Let's get some of the people that we're working with that are building in consumer AI together. Let's bring in some other firms that have some other founders and just build some community and conversation on the topic. And so literally it started with like, we went to a few co-investors that we work with and said, you guys wanna do this? And they said, yes. And then a few more people than we imagined wanted to do it.

So we're like, yeah, I mean, we can do something with this. We thought we could showcase these companies, we could build some enthusiasm around the topic, which I think was really my original impetus, just to build some enthusiasm around the potential. And six weeks later, we had standing room only, lines out the door at our impromptu conference.

That's amazing. Amazing breakdown. What were the specific things that you wanted to be having conversations about within? Yeah within the event and then kind of what were kind of some of the standout Topics. Yeah. So, you know, I think that as much as anything it was like about putting a stake in the ground for consumer AI giving people permission if not like a provocation, that like, you know, or a rallying cry that founders, there's opportunities to build for people.

And there's this new technology to do a lot with. It's been a lot of conversation and kind of velocity around the foundational models, the infrastructure. But we haven't really gotten a conversation going with a lot of enthusiasm or imagination around bringing that technology forward into the hands of people. At the same time, you know, I think there's never been a faster growing product adoption than Chachi PT.

And we talked a little bit about that. We talked about the fact that perplexity and anthropic are pulling customers in to try their products. You go on social media, you see teens talking about their AI companions, you see parents talking, you know, using their co-pilots for family planning, trip planning, meal planning. But there isn't as much building going on in this area in general, like on how people are going to use this outside. There's some in the workplace, but more broadly. And so we wanted to get a conversation going around the human experience, the product craft and the everyday utility of this. And I think, you know, against the backdrop

of some of the biggest companies that have been built in the last 25 years out of the tech ecosystem started with the consumer. You know, today they look like multi-dimensional businesses operating in every category, but when they first came to market, they were enticing a user to engage with them. Amazon,

Google, Facebook, Apple, all those companies that are now the tech giants. Their first entree into the market was to get a user, get you and me to engage with the product. And I think it's a magical place to build from for lots of reasons, but one of which is that you can move at the space at the speed of technology. So there was a lot of conversation about how fast things are moving, about how do you build a product when technology is kind of changing in the moment that you're building with it. And the consumer will build with you. There isn't a nine-month sell-in cycle. They're there. Put something up, they'll use it, they'll tell you they

hate it, they'll tell you they love it. You can iterate on it and get that feedback. And I think once you get engagement, you'll see the opportunities for expansion, which I would argue a lot of those companies saw and built big businesses. So it was about just saying, there's a tremendous opportunity to think very big, very ambitiously about the future

and a role that you want to play in it as a founder and a company builder. Why not start with the consumer? Why not think about that? And I think that's a pretty strong rallying cry. So we were trying to ruminate. That's fantastic. Yeah. I think we need a rallying cry.

When I've talked to some consumer people that are, I've been pitched some consumer apps lately, and a couple times it's come up where my thought is, OK, this makes sense for the next year, but if ChatGPT gets really good at computer use and operator gets really good, I think you might get destroyed because people have it installed on their phone. And so the question for me is, how do you figure out a way,

if ChatGBT is undeniably the breakout consumer app of the last few years, there's no way around it, and it's getting valued appropriately based on that. But the question is, how do you kind of carve out space that is not, you know, that as Chachi BT gets better and more capable, you're not kind of going to get steamrolled? That is the first question that I kicked the day off with. We kicked off with Reed Hoffman, and we said, you know, hey, Reed, you have an all angle view into this moment as a builder, as an investor, as a board member, and these relevant, highly relevant companies. Like there's

a lot of conversation out here about like, geez, in a world where the tech is moving so fast and so aggressively, and looking like it's expanding and teasing out already in so many areas, like, where do we build? Like, how do we think about capturing a space when they've got all the resources and they're moving at that kind of crazy speed? And I asked Mike the same question at the end of the day, Krieger, at the end of the day. And I posed it as like, this is the elephant in the room. This is what people are talking about while they have their good idea, then they're worried about that. Both of them said that, yes, these companies are, you know, they, they, they are moving fast, but they won't dominate all verticals. They won't be able to do all things.

Um, or, or maybe they won't choose to, cause that's not the right thing for their business. I don't want to discredit what they can and can't do. But I think there are, you know, an expansive number of things that require specialty and focus that require craft and understanding around the particular lane you're operating in or service you're trying to provide that that are incredible examples of opportunities to leverage the power of Gen.ai and these LLMs, but that have all kinds of scaffolding around them that exist around that.

And so, you know, I think that it's a little bit like, I guess this was my analogy, my head was like, okay, Google, like they own search, but there's a lot of big platforms that were built off of Search in what is called specialty areas but that are significant businesses. You could argue Amazon is that. Zillow, there's been Expedia, there's

been other things for travel. There are lots of reasons why the ubiquitous very broad front door isn't the right answer for everything. And it's also just like, you know, everybody, everybody, no matter how well resourced you are, how capable you are, weighs trade-offs on what's on your roadmap, what's in and what's out. I think that's, you know, key to being a really successful long-term company and having a solid foundation. You can't do everything. You don't need to do everything.

So there was universal agreement when asked this question answered in different ways that like, there's plenty of room to go. Even if you wanna assume that a big portion of it is gonna go to a clearly set of exceptional companies that have driven breakout. What they've done for this industry, among other things, is woken people up to the potential

of this amazing new technology and these new ways of starting to engage with technology where people are searching differently, not just on ChatGPT, but for example, on retailer sites. They've gone from keyword search to conversational search. And so my, my thought there is like, people are ready for it. They're, they're, they're here to meet the moment of what gets delivered. I think it's on the builders to bring them something new and special and amazing. And I just, you know, I think everybody, when

they really think about it is like, you're not going to go everywhere. Okay. But what does that mean? I mean, I think you want to stay in, ideally, you want to find a place where you can be leveraging, you can be operating or building in the path of progress. So you can kind of see how things are progressing. You can imagine like, what is core to these big businesses?

How do I build something that can take advantage of where they're leaning in and being exceptional, but I can build around in the context of my own environment, the extra things that are gonna make this like the truly remarkable standout experience that becomes a daily habit or a use case for whatever your domain is. Totally.

And I think, you know, we show, like, one of the things that was really fun about yesterday was obviously the chance for this audience that was there to see 20 founders get up and present their new companies. These aren't companies that we all know about because they're seed and series A early stage companies. And these teams had four minutes to get up

and talk about what they're building, why it's possible today and why it matters. And they did a really great job for one, but I also think sparked a lot of imagination. Cool examples of what you can do with the technology, demonstration of kind of how people are thinking about applying it in different ways. And I would say to you, I don, I don't want to speak on behalf of any founders, but I bet you

that all of those are a starting point, you know, that have visions beyond that too. Yeah, we were we were at YC Demo Day a couple weeks ago, and I don't remember talking to a single consumer AI company. We didn't we didn't get to talk to everyone, but so maybe it was just the B2B founders that were like, they weren't really trying to have the big. We had one YC company yesterday, text.ai present. Oh, we talked to them. We talked to them.

Yeah, and they came up to me afterwards and they said, you know, there were four consumer companies in our cohort. Like we need our people, where are they? And YC used to be entirely consumer then you spoke with Gary Tan yesterday. I was just going to say, I've been spending more time with the YC team there and with Gary. And listen, Airbnb, DoorDash, some of the most iconic companies to come out of YC, consumer companies.

I would coin this as a consumer company as well. So that's what I said in one way, way I wanted this data to be about permission. Like it's kind of been like a bad word, like I'm building in consumer or whatever. No, no. And also it's like, again, it can be your end goal, it can be your starting point. But to the point of it's an incredible place to start from

because you can iterate, learn. Yeah, weirdly, consumer is very competitive because you're coming up against chat GPT and a lot of use cases, but at the same time, it's less competitive just because looking at the YC batch, it's like that often ends up being a reflection. That's true. And so do you want to go?

OK, so yesterday, among other things that our team had in mind for what the event might offer. One of the things that really made me feel great about the day was I had several people come up to me, future founders and say, I've been thinking about this product I wanted to build, but I just wasn't sure if there was energy for it or demand for it, or I'd find investors that wanted it.

And now after today, I saw so many cool applications, was energy for it or demand for it, or I'd find investors that wanted it. And now after today, I saw so many cool applications, I got more new ideas about it, like I'm going to build it. And so, you know, I think that we all say no or hesitate until somebody starts to turn it on. And, you know, I think yesterday we saw 20 incredible companies that have been funded by some of the best investors out there. We saw 23.

I mean, we started by calling a few friendlies that we invest with, do you want to do this with us? And then another friend, everybody said without a doubt, yeah, we want to be part of that. We want to invest in the next ambitious entrepreneur building in that area. And then after when we put the list up, like here's who the co-hosts are, I got more calls about it. And so my point was just like, hey, listen, like they're all open for business.

So take the VC firms and multiply the number of available dollars they have to invest. And it's all possible for a consumer founder to get. You just, you know, I think part of it is, is, you know, thinking ambitiously enough about what you're building and being able to answer some of those hard questions. But you know, hard questions exist in every single area. Okay. Here are some hard questions for consumers. If I'm thinking about building a new AI consumer app.

One is that it feels like historically, most consumer has been more power law distributed, more winner take all than other markets. Amazon winner take all pretty much, and Google very much winner take all, social networking very much winner take all, chat GPT is already on a run to be, feels like 90% penetration in that market. And so it feels like-

FinTech is honestly one of the only areas that it hasn't exactly been winner-take-all. Yes. Obviously, Kirsten had Chime IPO. Yeah, where it feels like we've seen a lot of really smart founders come in and the base hit, the $100 million outcome, the billion dollar outcome feels more rare in consumer as opposed to in B2B. I don't know how real that is, but that's certainly a fear. Then there's also the fear that there are a lot

of consumer companies that are still run by great founders and the founders are in founder mode. And so, you know, someone who's running a, you know, major large consumer company, someone who's running a, you know, major, large consumer company, if you're onto something, they might come after you. Whereas in B2B, you might be able to sub slice the market and build some different niche that's underserved and kind of grow a business. Are either of those serious concerns? Or do you think there's good counter arguments that founders should have top of mind if they get hit with those questions?

Okay, so on the second one, I'll just start there because it's on my mind with the second one. Like, no, I don't think so. I mean, yes and no, right? There's always competition. I think if you get into business, you should just be getting into competition. Like, and you know what?

If you're going after something worth it, if you're going after something worth the price, there's going to be competition. It's going to come at you from pure startups. It's going to come at you two years from now from another startup that's starting out some of the baggage that you have. And it's going to come from some incumbents.

But I think that there is a lot to be said for a unique insight, for a particular point of view on how it gets executed, for a particular culture you build at your team and at your company and how you go after it. And that is not that different than in any other space. There are, for every kind of B2B company in the space, I mean, it's open season.

There's not five competitors. There's 50 competitors So yeah, you came on for competition. Yeah for the other question Which was the the power law question? Yeah yeah, and does that also under affect underwriting in the sense that Like you have to you have to underwrite to with I mean if you're talking about like, I don't know most consumer AI Companies are most consumer companies, I feel like it's either a zero or a trillion dollars. But I don't know if that's the right narrative.

But that feels like it would change underwriting, maybe, as an investor? I mean, so I think that as venture investors, we're all in it for the trillion dollar idea. So I think that we are thinking, what's the big ambition here? What's the big possibility? If you're an early stage investor, you know, I think that we are thinking like, what's the big ambition here? What's the big possibility? If you're an early stage investor, you then better be thinking about

like, what's the, you know, first act that's going to give you the right to get to the second act. But I think we're not playing for like, how do we do an M&A exit in a couple years? Like, that's not that's not what this is about. I, so I don't think that's how we underwrite things ever anyways. I think when you're in the zone of doing those other things, it's because dynamics have changed. Or, you know, usually it's because dynamics have changed. And I, you know, I think that we have sold companies in M&A situations. And

I think that exists in all areas of business. So Maybe it's not as prolific in Consumer businesses that it is. I don't know I haven't really done that analysis because I'm here to hopefully build big companies with founders But you know on the on the power law question There is definitely like I do think I'm particularly interested in, and venture investors are particularly interested in businesses that have network effects,

that do have products and experiences that get better with scale, that get better with more activity and more engagement. And that sort of leads you into these businesses that have the power law dynamics. But the companies that you mentioned are like the category leaders. That doesn't, like there are still big businesses

that are adjacent to those categories that are public companies, are big standalone companies, are successful stories for both founders and teammates and investors. So, you know, we might- Yeah, it's power laws all the way down. So there's like the category leader power law and then there's like, you know, market power, you know, a $20 billion company that's a power law, you know, within its subcategory. Right.

So but you know what? Worth mentioning, and this is why I started to feel urgency on this topic and igniting the conversation yesterday. There's a lot to be said for being first. And ChatGPT proves it, for instance. And I don't know if Google actually was the first search. I don't think they were, but they were pretty close after. It is game on right now. There's going to be opportunities for the next 10 years, just like there were in the

last cycle and the cycle for the next 10 years, just like there were in the last cycle and the cycle for the next 20. But like right now is a unique moment in time where like the deck is getting shuffled and newness is being created. And we still are in the zone. One of the things we were, you know, hoping to tease out yesterday in conversation and just in general is just like,

okay, if you were starting a company today, like challenge yourself to think about the problem or the opportunity you're going after and the technology that you have to play with and build with and work with. And what do you bring to life in 2025 with that? Like, instead of thinking about like, this is the way we've always done things

and now we have this technology and our chat bot can be better or something. So like get out of the zone and think about like a new way to present. And I'm the investor, not the founder. So don't ask me what the idea is, but I know somebody out there has a bunch of them. Yeah, yeah, it's interesting. Google was not the first.

Yeah, Google was definitely not. They weren't the first search engine, but they were the first one to implement PageRank, so that particular algorithm. Chat GPT was not the first chat bot. There were Siri and different WhatsApp bots that you could kind of write some business logic around. But they were the first transformer-based chat bot that had been scaled up to a large run.

And so they broke through in that way. I wanna talk about distribution for consumer apps. We're seeing a bunch of interesting things. There's a couple case studies that might be interesting to weave through. One is Lenza, this magic avatar app where you could upload a few images and it would make you a superhero

or it would do kind of a generation of your face on an AI avatar. It was massively popular. They made a ton of money and then it kind of fell off. And they've kind of changed the business and revisited that. I think they changed to something that then got kind of smoked by Chet GPT again. Exactly, yeah, so there's that story.

And then on the other side you see- But I also don't think they raised very much money. No, no, no, I think they probably made a bunch of money. But, and then we've been tracking a lot of what's happening with Clueli, this viral company that, it's kind of hard to tell if they're consumer. Or their B2B, Roy Lee, the founder, seems to be exploring both sides,

but it's undeniable that he's been great at getting attention and breaking through the very noisy, you know, startup AI ecosystem in the sense that he will take over the timeline in the way. I mean, thinking machines raised $2 billion and more people were talking about Clueless that day. That is crazy to me.

I mean, that is crazy. And honestly, I think that's smart. Yeah. Right. So I mean, one of the hardest, the hardest thing to do is to build an amazing product that people use on a regular basis and are committed and loyal to it. That's the hardest thing to do. The second hardest thing to do is get in the conversation. Right. So you know, I mean, we work with a lot of companies that are consumer facing. And one of the first questions when we work

with a new founder is like, how do I market this? You got a company that did this and did this, like what's the secret? And I always say the same thing is like, hey, listen, I got good news and bad news for you. Like the bad news is there's, well, the good news is, good news and the bad news, I guess, is you have to do everything.

Like there's a lot of ways to do that. And there's like not one way to do it. That's the good and the good news is, is like, good news and the bad news, I guess, you have to do everything. Like, there's a lot of ways to do that. And there's like not one way to do it. That's the good and the bad news. Like, you have to figure out like how to be showing up in all these different places. And when something hits, then you need to lean into it. And so I think like if you if you have the creativity to do that, and you can create relevance in the conversation, that's good. Now, it's all worthless if you don't have a great product.

So you 100% have to be able to back anything you do in that way up for a great product because the business is built on the product, the business is not built on marketing. It's not. And I think that, you know, that has long always been true, but today, you know, consumers are savvy. I said this for the 30 years I've invested, consumers are savvy and you can maybe sometimes pull them in on something, you know, sexy marketing story or whatever,

but like you can't really build, you can't build a business unless you've got like something really worthy. But, you know, so it's not a business to be a good marketer, but it's an advantage to be a good marketer. Yeah. Consumers do seem extremely savvy right now. I'm thinking, and the nature of the consumer-

Partly because they can ask Chad GPT, should I use this product? With Chad GPT, the consumption pattern of the consumer seems to have completely changed in the sense that you have people that are paying $200 a month. Maybe they're using that at work. Maybe they're using it personally. but it's a very different product shape than what we've seen on the internet before paying $200 or $500 a month for something that maybe you're expensing it. Maybe

you're using it for work. Maybe you're using it as a consumer. And I'm wondering if we almost need a new word we need to bring over prosumer. And I love what you're talking about while you're saying that. Like I think that the lines are being blurred like as we speak and they have been for a while on like consumer and business. Yeah. Because people have been doing it in their lives. Like how many people have two cell phones anymore? One for work and one for life?

No, you just put it in. You just it's what you're doing. And people are working different hours and they're doing side jobs on the side. So we're using Notion for personal lists and we're using it at work to communicate with our colleagues. These sort of things are happening increasingly and they're just going to continue that way. And so that really begs any product builder to have a user mindset. Maybe we can get out of saying consumer

and really talk about users or people. We're building products for people, whether it's you in the office or whether you at home, you don't completely change your expectations of what a great experience looks like when you're on home mode versus work mode. So, I think that that line is like, it's really blurred. And I think that it's getting blurred and I think that it's

getting increasingly blurred in business and it's also getting blurred in like what people are willing to pay for and how they're using it, right? You might actually put like cursor in the prosumer category in the sense that it's more of a go-to-market motion. It's like, it's bottoms up adoption and it's selling to the individual, to the user, to your point, as opposed to a top-down mandate, like the CFO or the CTO decided that we're using this database,

and so we're using it whether or not you want it. It's like, you're kind of bringing it over. You're kind of bringing it over. I mean, that's kind of the best stuff, guys, because you can use that whole, like, we iterate in real time, real fast with the consumer, see what they're building, learn about our product, charge something for our product,

and then if we're really relevant and we're delivering on this value proposition, its efficiency, its time ROI, we can get a company to come in and pay for it. Then you've kind of straddled both of those. And I think that's a pretty great place to play. It is. Totally. Well, thank you so much. Congrats on the event.

Congratulations on the event. Congrats on the happy hour You should probably do it Sunshine yesterday too, so that was good. You should probably do it quarterly because there's no time to waste, you know Wait, we waited together. Yeah last night. We had a drink after after dinner our team We went out to dinner and I gave a cheers and I said, thanks everybody for indulging the crazy and that we got this done in six weeks. It was fun.

It was fun. I'll be keeping it up. Just gotta put it out there and commit to it. Yeah, that's great. Awesome, well thank you for joining. This was super fun. Yeah. Thanks guys for having me.

Hope to have you on again soon. Yeah, we'll talk soon. Cheers. Bye. Bye. Let's go back to the timeline. Talk about Tane, former guest on the show, is talking about the zero acquisition of Melio payments.

They're paying $2.5 billion. This is 13 times its $190 million in run rate revenue, but Melio raised around at $4 billion in September of 2021. Out of what? What was the multiple? What was the multiple, John? It was a 400X multiple. Let's go.

Let's give it up for 400X multiples. You know, yeah, of course. It's like, it's a down round acquisition, but I think everyone still did quite well. Yeah, and all the, any investor that invested four billions, getting their one X back, they can redeploy it and get another you know get it get a couple 10 X's in a row few 10 X's Turn it into you know the trillion. Yeah trillions turn that into quadrillion. Yeah Despite growing almost 20 X in three years of the very healthy healthy exit multiple

It's sold for lower than the 2021 valuation and yeah acquisition I still make sense here because we were talking to Ev Randall, and he was saying, if you do a screen on pure play SaaS companies in the enterprise, I think it was even over 500 million in revenue, there are multiple players in almost every subcategory at this point, so you can get public markets exposure. So this type of company, even though $190 million, amazing,

Gong-worthy, fantastic performance from the team, it's just maybe not enough to be enticing to the public markets. So exiting to zero makes a ton of sense. Anyway, speaking of big numbers, big numbers, the app is out. Budget on everything says Steven Zhang. Preston asked for this.

He said, I want a finance app with three numbers. What I spent today, what I spent this week, what I spent this month. I saw someone vibe code this, I'm not sure if Steven's the one that vibe coded the first example, but he has a launch video out and we love to see ideas to products in just a few months. April 8th was the tweet that inspired this,

now there's a launch video for it. So congrats to Steven for launching Big Numbers. I like that name. Yeah, super excited for Steven. Yeah. He's the man. Looks like it was filmed in a cinematic location. I love the name.

I love the name too. I love the name. Because it's easy to understand what it does. It's also aspirational. It is, it is. You want to put up some big numbers in that app. Yeah, the video looks like it was filmed in a cinematic location if you're looking to hang out in a cinematic location You gotta find your happy place find your happy place a book of wander with inspiring views hotel

Great amenities dreamy beds top tier cleaning and 24-7 concierge service. It's a vacation home, but better folks Also, this is a good way to Alisa Debo. gotta cover this. Roy Lee, apparently interned for Keon of Nucleus fame. Our two most controversial Gen Z technology brothers. Both been on the show multiple times. We're on the same team. OG Z fellow Keon got cold email from then Columbia student Roy. Roy wanted to intern for Keon.

He hustled and got it. Within a year, Roy left Columbia and built Cluely. Oh yeah, and became a Z-Fellow. And so the new PayPal Mafia is the Z-Fellow CU, the cinematic universe. I really like that Ali's breaking this whole thing down with the red string. It's great.

And is there anything else you want to cover today? Or are we good to go? Yeah, that's it. I realized we did a team. It was a half-MIRF this morning. Oh, yeah, we did. We want to be efficient with our time. But I have not had a sip of water at all today.

I've only had Matina. And as much as I love Matina, I'm starting to get a little bit of a headache. Lacked water? Accidentally not having water. Okay. As a water enthusiast. Entrepreneur.

Founder, you're a water founder. Roar.com. But anyways, this is a great place to end. Anyway, we have five stars on Apple Podcasts and Spotify. Thanks for listening. Have a great weekend. And we will see you on Monday. Have the best weekend of your life.

Yes. Just do it no excuses No excuses if you if you don't it's a skill issue. Goodbye Cheers