The Best One Yet - 🪿 “$900 for pre-dirtied shoes” — Golden Goose’s sneaker IPO. Summer Movies’ 4D theater trend. Elon’s biggest fundraise ever.

Episode Date: May 29, 2024

Would you pay $900 for a pair of new sneakers that were already dirty? Golden Goose is selling that, branding it “pre-distressed” — And they’re about to IPO at a $3B valuation.Hollywood had its worst summer opening weekend at the box office since 1995 — But the “theater of the summer” is gonna be big: 4D movie theaters that you can smell, taste, and even feel.And Elon Musk just raised $6B for his startup, X.ai, to build the “Gigafactory of Compute” — He flexed his biggest competitive advantage: Fundraising.Plus, Google’s AI just told people to put “glue” on their pizza — Because when it comes to Artificial Intelligence, AI is what it eats… and Google’s AI is consuming strange content. $ON $AMC $TSLAWatch us on YouTubeGet the Saturday Newsletter: tboypod.com/newsletter  Submit Shoutout Requests Submit The Best Fact YetFollow us: on InstagramAnd connect with us on Nick’s LinkedIn & Jack’s LinkedInAbout Us: The daily pop-biz news show making today’s top stories your business. 15 minutes on the 3 biz stories you need, with fresh takes you can pretend you came up with — Pairs perfectly with your morning oatmeal ritual. Hosted by Jack Crivici-Kramer & Nick Martell. Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Wednesday, SaViche, Wednesday, May 29th. The today's pod is the best one yet. It's a T-boy. The top three pop business news stories you need to know today. Jack, how about that hotline pod? What a fun pod.

That was a blast to record together, man. Alex and I listened together on the way down to Massapequa. We had a whole bunch of laughs, and we were texting you the whole time. Barregate, by the way. A lot of people are converted. They're eating the tops of the strawberries. I'm eating the entire strawberry in one bite since 2024. Remember, it's more efficient, it's healthier, it's sustainable, and it's fiscally responsible.

Eat the whole strawberry. Yeties, remember to check out our T-Boy Hotline pie. Episode 2 dropped on Friday. Now let's get to our three stories. Oh, what a mix of three stories for today. Jack, what's on today's T-boy? For our first story, you've heard of pre-fraid jeans. Well, one company is selling pre-duried sneakers for $900.

Golden Goose is IPOing at a $3 billion valuation with what they call pre-disbried. dressed sneakers. For our second story, Elon Musk just secured the second biggest private fundraise of all time. And it wasn't for Tesla and it wasn't for Twitter. Yeah, it is. Elon's AI startup, X.A.I. just raised $6 billion with a B dollars. And our third and final story, Hollywood, just had its worst summer opening weekend since 1995. But there is one bright spot for the box office right now.

And that one bright spot is the 4D movie theater. You don't just watch a movie. You can feel it, touch it. even taste it. You can taste the movie. But Yetis, before we hit that wonderful mix of stories to start the week. No one is doing that mix. Love the mix today, Jack. Sorry, it's not to start the week. We're actually like more than halfway through. I love short weeks. I mean, Tuesday is the new Wednesday, which is the new Thursday, which is the new Friday, baby. Yides, what ingredients go into your pizza? Yeah, what do you put into a pizza basties? Maybe some marinera sauce, some mozzarella. How about a little bit

a basil jack a dusting of oregano a brush of olive oil on the crust but jack how about glue have you ever tried pizza with glue yeties get this yeties over the weekend if you googled how to keep the cheese on your pizza then google's a i assistant told you to use glue they told you to use glue elmer's glue spray glue super glue jupis when he comes to a pizza pie apparently any glue will do according to to google jack and i should point out before we get sued you should not We repeat not put glue on your pizza. Yeah, pineapple on a pizza? Questionable.

Gorilla glue on pizza? Not questionable. It's a no-go, my friend. But yetis, this erroneous AI response from Google last week perfectly illustrates a core AI issue. And that AI issue is that when it comes to AI, you are what you eat. Because Yeties, when you ask an artificial intelligence chatbot a question,

it answers based on the stuff it's read online. And sometimes what that bot reads online is just flat out, wrong. In this instance, Google's AI read a post on Reddit that they use glue in pizza TV commercials to make the cheese look delicious and stretching. So one comment about TV commercials and glue and pizza turned into a recommendation to put glue on your pizza. Yeah, it turned into a very erroneous public health recommendation from Google's AI. Oh, and by the way, Jack, in case you were cooking over the weekend, gluey pizza wasn't the only AI response that was off with Google. Yeah, Google also said that you should eat one rock

every day. Because Google misunderstood a joke online about eating rocks. And Google also misinterpreted a headline from the onion, a satirical magazine as real news headlines. So besties out it all up and AI really is only as good as the info it eats. And apparently

Google's AI needs to go on a diet. So yet he's the way Jack and I see it, we can't fully outsource all our decision making to the robots quite yet. But if you get a freaky AI response from Google today, screenshot it and send it our way. And if you put glue on your pizza, call a doctor immediately. And don't serve it to your guests. I can't open my mouth. Jack, let's sit on three stories. I'm speechless.

Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. It's the 50% that's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more. So just start the show. First, a quick word from our sponsor. For our first story, Golden Goose is about to IPO this week with a wild product, $900 sneakers that are pre-duried. Golden Goose isn't selling shoes, they're selling a social experiment. But yet it is, the way Jack and I see it, we're basically living in the golden age of the shoe.

Why aren't we, Jack? There are enough sneaker stocks to fill your closet right now. Birkenstock on allbirds, they have all IPOed in just the past three years. Plus, you got Hokas, Crocs, and Brooks. They're all rising from behind Nike's big shadow. What we're saying is that Wall Street has got a foot fetish, right, Jack? Pretty much. But we're about to add another to the list, and it's by far the most shocking of all.

There's nothing Morgan Stanley likes more than a nice pair of sneakers, Jack. Hot. Hey, can we talk about Golden Goose now? Yes, that's what's added to the list. Golden Goose, the 24-year-old Italian luxury. brand that's based in Venice is about to go public. Their sales jumped 21% last year to $650 million, and they sell shoes in the price range of $400 to $4,000.

It is, if you were looking at a Golden Goose store, you're probably in Aspen, Beverly Hills, or Miami. And here's the news. Golden Goose is going public this week in the Milan stock market, targeting a $3 billion valuation. $3 billion for shoes, but that's not even the shocker. What's the shocker, Jack? What sets this $1,000 sneaker apart,

isn't the design, the comfort, or the marketing? No, Yetis, what sets this $1,000 sneaker apart, isn't that Selena Gomez and Taylor Swift wear it either? What sets them apart is that the shoe is sold dirty. Jack, I'm sorry, pause the pod. Can you repeat that, please? Golden Goose's differentiator is that it's the only luxury shoe that is sold dirty.

Jack, can you please grab the detergent and describe to us what exactly does a Golden Ghost shoe look like? If you open a box of golden goose sneakers, you're going to get a high-end pair of leather sneakers, a five-pointed star logo, but it looks like they've been worn 100,000 miles by Forrest Gump on his famous cross-country epic. You're going to open a box of shoes

that look like they were run over by a car and then sold you on Craigslist. These are scuffed up in the factory. They're scribbled on with markers in the factory. They're like roughed up so that they look worn in the factory before you even get your hands on it. Jack, I remember where I was. when I saw my first pair of Golden Goose shoes.

It was in Paris, 2016. I saw them in a window. I thought I had to get a tied stick pen to clean these things up. They were that dirty. They look old, but they're sold new for like $1,000. Now, yet, what we're saying here

is that your parents are not going to get this. But the founder of Golden Goose describes them as pre-distressed. This is beyond ripped jeans. These shoes look like they're worn out. They look like they're dirty. They look stressed. No other company is willing to sell a dirty

new shoe. In fact, the website for Golden Goose says, don't be perfect, be unique. The About Us page ironically mentions authentic three times, but the shoes worn out look is artificial. And since no rival is willing to risk selling dirty new shoes, Golden Gruse basically created a whole new category. Yeah, they call it the pre-distressed sneaker. And Golden Goose is the number one player in that new category that they created, the pre-distressed sneaker. Yeah, they're the only player in that category. Nick, of course they're number one. Yeah, they are.

But still, Golden Goose sneakers look like the plot of the third Zoolander movie, don't that? They look like what Oscar the Grouch would wear if you were invited to the Met Gallagic. What's next? Is Michelin going to sell pre-worn tires? Is Subway going to sell pre-eaten sandwiches? This is absurd. Jack, enjoy this Coca-Cola. I opened it three weeks ago, but it's new.

Yeah, it's new. Yeah, flat Coca-Cola. That's a new category they'd be number one in as well. So, yeah, these Golden Goose. is IPOing at $3 billion. Their sales are up 21% to $650 million. But Jack, are they really selling dirty sneakers? No, they're selling something else.

They're selling our takeaway. So Jack, what's the takeaway for our buddies over at Golden Goose? Golden Goose is really a social experiment. Yet he's, Golden Goose is basically a $3 billion social experiment on the meaning of value. Because the irony of luxury is that the more you spend on a social experiment. a luxury product, the less you're actually going to use it. Yeah, besties, think about it. When you buy something expensive, you hesitate to use it because it gets worn out.

You buy a fancy dress, but you won't wear it if there's a chance it's going to rain that night. You buy a fancy sports car, but you never take it out of the garage because there's a chance of denting it. But by pre-dirtying the shoe, Golden Goose eliminates that hesitation you have of wearing it. You're more likely to wear that expensive shoe if it's already dirty. Which means you get more use out of a dirty golden goose sneaker than a shiny Gucci one. So you arguably get more value out of a dirty golden goose sneaker than that shiny Gucci one.

That's how Golden Goose is selling a social experiment. By durning up a new shoe, they gave it more value to the user. For our second story, X.AI, Elon Musk's AI startup just did one of the largest fundraises we've ever seen $6 billion. While Elon has destroyed value at Twitter, he may have accidentally created value at X.AI. But Jack, could you whip out the whiteboard for us? Biggest fundraise we've ever seen, what is it, man? That's got to be Microsoft's $10 billion investment they made last year in OpenAI.

So the second biggest fundraise ever, what would that be, Jack? It was confirmed yesterday. Elon Musk just pulled off the second biggest private fundraising for his AI startup. Mons, called up his buddies at Andrews and Horwitz, Sequoia, the United Arab Emirates, Saudi Arabia, and all of them bought stock in his private company at a shocking $24 billion valuation. Why is the $24 billion valuation shocking, Nick? Well, Jack, that valuation is so shocking because X.A.I was founded less than a year ago. It's less than one year old, and it's already worth $24 billion.

And Jack, what's another reason why this epic funder is was so shocking? Because it's for Elon's side hustle. Sorry, side-side-hustle. Yeah, yeah, it's side-sustle. Elon's main hustle is Tesla. His other main hustle is SpaceX, and his first side hustle is Twitter, right? But the more Jack and I jumped in T-boy style, we realize that X. That.x.a.I. is actually Elon's main hustle.

Because X.coma is trying to do what OpenAI is doing, but its chatbot isn't called chat-GPT. No, instead, Elon's X.X.A.I. chatbot is called Grock. And it eats Twitter for Browel. Literally. More on that in a second. But first, why does Elon need $6 billion in venture capital anyway? Elon needs $6 billion in venture capital to buy chips, invidia chips. Because last week, we reported that one Nvidia computer chip costs up to $40,000 right now. And you can't run an artificial intelligence company without those Nvidia computer chips. So X.aI needs $6 billion to buy enough chips to build what Elon calls a gigafactory of compute.

Now, Jack, let's pause the pod here for a second, because $6 billion, which is more than the value of one lift, is a lot of money to fundraise. How are investors willing to take such a giant risk on Elon Musk right now? Well, Jack and I identified two reasons why, and the first reason they're willing to take this epic $6 billion risk is Twitter. Twitter appears to be a terrible investment right now, but it's saving grace is the huge amount of content that people tweet every single day. And that's key because AI derives its power by consuming content on the internet. So x.a.I will use Twitter for content. GROC has exclusive access to

read everyone's tweets all the time, in real time, and use that to answer your queries. Just like Google's AI chatbot consumes Reddit content and then tells you to put glue on your pizza. Now, this gives GROC an advantage over chat GPT because Twitter is so real time. It's so up to date. and it's so full of news headlines. Absolutely, so it can process news and will be more up to date than the other chatbots. But Grok, it's going to have a more conservative and trollish style in voice because it needs Twitter. It's going to be a chatbot with... With, as Elon says, some edge.

Some edge. But the second reason investors are giving Elon $6 billion is actually Elon himself. And that is our takeaway. So, Jack, what's the takeaway for our buddies over at X. A.I with the huge fundraise. Fundraising is Elon's biggest competitive advantage. Yeties, let's sprinkle on some historical context here. It took Tesla 17 years to earn its first ever annual profit. Which means for 17 years, Elon had to tell a story about future profits Tesla was going to make. And for 17 years, investors believed that story and financed the company as

lost a whole lot of money. The Tesla story ended very happily for investors. Same with Elon's solar company and same with Elon's space company. Because he was able to attract talent and term sheets like no other founder could. And despite the ugly performance of Twitter so far, venture capitalists are still saying to Elon, take my money. Literally. Literally take my money. And that, that fundraising from Elon, that has become his competitive advantage over the competition in artificial intelligence. It creates a moat because every dollar invested in X.AI is a dollar not invested in other AI startups. So the way Jack and I see it, Elon's successful track record fuels his biggest competitive

advantage. His fundraising advantage. Fundraising can be a competitive advantage. Now a quick word from our sponsor. For our third and final story, we've got a summer box office preview. Last year's Barbenheimer summer will not be repeated. There is no movie of the summer this summer. But we think there is a movie.

experience of the summer, and we'll tell you what it is. So yeah, it is funny thing. Last year, Jack and I posted our best performing TikTok video ever, didn't we, Jack? It was about Barbenheimer summer marketing. Every brand in America was doing a marketing collab with Barbie or Oppenheimer. Mostly Barbie, though. Oppenheimer's not a great brand to collab with due to the subject matter. Christopher Nolan, not into pink that much, Jack. But the outlook for a summer blockbuster movie this year, it's pretty slim pickings. Get this, Yet is Memorial Day weekend just last weekend had its worst weekend for movie ticket sales since 1995. And the winner in 1995's Memorial Day weekend box office, Casper the friendly ghost.

Casper was the last time we had a Memorial Day weekend this bad. Honestly, Gen Z wasn't even alive for that one, Jeff. So here's the preview to the movie previews you'll be seeing all summer. And here's the theme of the movie. you'll be seeing this summer. This summer's blockbuster offering is once again sequel summer. It's another sequel summer, which is kind of meta because this is another sequel summer after previous sequel summer.

It's a sequel summer. So, for example, this summer, we're going to get the fourth Planet of the Apes live action movie. Actually, the fifth planet of the Apes because the original one counts as well. True. We're also going to get Deadpool versus Wolverine. Now, Ryan Reynolds and you, Jack, we're going to try to out charm each other again on the screens.

Now, if you want to bring the whole family, Check Out Inside Out, too, which is Pixar's second attempt to teach kids' emotions. And Disney's 30 billionth attempt to do another sequel movie. But yet it is, for context, 50 movies in the history of movies have achieved $1 billion of global box office sales. However, Jack and I think that this year, zero movies will hit the $1 billion ticket sale milestone. We don't think there's going to be any major blockbuster successes in the movie theaters

this summer. So, Jack, based on that data, maybe in that, to talk about the big screen, we should talk about the smaller screens. You ready to talk about the shows that premiere this summer? What kind of shows are premiering this summer, Jack? We get Game of Thrones as House of Dragon season two coming out this June. We get Emily and Paris, season four, also coming out this June. Lord of the Rings, Rings of Power, season two, coming out in August.

I do see a sequel trend for TV shows as well. It is kind of sequel to Jack. So add it all off, Yeties, and there are no big movies coming out this summer. But there will be. a blockbuster movie experience this summer. Yes, there will be. Yeties, the summer movie of 2024 is actually a movie experience. So, Jack, what's the takeaway for all our buddies in Hollywood?

In a battle for attention, theaters are adding a fourth dimension. Yeties, not even Star Wars, Marvel, or Vin Diesel's fourth bicep can save the post-pandemic theater industry right now. Even with Barbenheimer last summer, 2023s, box office numbers were 20% smaller than pre-pandemic levels. So movie theaters have to get creative. And one interesting way they're doing it is 4D. We are seeing a boom in movie theaters with a more immersive experience than IMAX.

It's called 4D. 4D. South Korea's 4DX is a new premium theater that's known for adding a fourth dimension to the watching experience. Please explain. Those dimensions could be sent. They could be seats that move. or other surprises you'll experience in the theater,

like fog emanating from the screen. Jack, apparently when Mad Max storms through the desert on the big screen, you feel the steam physically blown into your face in the 4D theaters. Yet is Nick and I remember this from a Disney ride. We apparently both took. On the screen, there was like snakes that had come loose, and they tickled our legs with like something underneath the chair and it freaked everybody out.

People were screaming. Well, 4DX added the scent of chocolate last year to the Willie Wonka movie, and that drove $53 million in 4D ticket sales. And a year before that, with Avatar 2, they misted audiences with water during splashy scenes and added smoke during fiery scenes. The result, 4DX took 4% of the global box office sales for Avatar. And 4% of Avatar's box office sales is a lot of box office sales. So, Basties, after 100 years, movie theaters are on the decline for the first time.

So in the battle for attention, theaters are adding a fourth dimension. And you can smell it and you can taste it. Jack, and you'll whip up the takeaways for us for Saviche Wednesday. Golden Goose is prepping to IPO as they continue selling pre-distressed luxury sneakers. Golden Goose isn't just selling worn dirty sneakers. Golden Goose is selling a social experiment. For our second story, X.AI just raised $6 billion, the second biggest private equity fundraise ever. And that shows what Elon's top competitive advantage is, fundraising.

And our third and final story, movie theaters are offering an overwhelming slate of summer sequels. Planet of the Apes, Deadpool and Wolverine, and Inside Out too. So to keep viewers attention, theaters are adding a fourth dimension. Did something just tickle me? Jack, it smells like something just tickled you. But yeties, this pod's not over yet. Here's what else you need to know today. First, remember U.S. Cellular, Jack?

That was the first phone plan I ever got in high school. Well, shocker, it still exists today, kind of, because T-Mobile is acquiring U.S. cellular for $4.4 billion. Which means there's officially three nationwide wireless companies left. U.S. cellular was the fourth. And second, take off your shoes! TSA just experienced a record number of travelers over Memorial Day weekend. More Americans flew last Friday than on any... weekend or any day in American history.

2.9 million flyers. That beats the previous flying record, which was set last Thanksgiving. In fact, half of the top 10 travel records in history have been set so far this year in 2024. And finally, it's not just Civeche Wednesday, it's Manhattan Henge. Manhattan Hedge happens four times a year. It's the biggest solar spectacle since the eclipse. Manhattan Hedge, it's when the sun perfectly aligns with New York City's cross streets. So, like, you can watch the sunset across the island of Manhattan. Across any street. Like, the sun lines up perfect.

So you're going to see a bunch of New Yorkers standing in the road with their phone time. Yeah, it's actually going to be difficult if you're trying to commute. Actually, when I was growing up, Jack, Manhattan Hedge wasn't a thing. Oh, it was built for social media. Like, honestly, I remember you would be just trying to cross town on 86th Street and you'd be like, oh, there's a son of my eyes. Well, don't forget sunglasses because, like, you shouldn't look directly at the sun. Yeah, just a reminder yet is don't go blind.

But if you do take some good picks, tag is in your picks. We actually love to see your Manhattan Hensh picks. Now, time for the best fact yet. This one sent in by Savannah Westwood from lovely Orlando. Yesterday, we asked you to send us your favorite destination doops. A destination dupe, a travel location that's a cheaper, higher value alternative to a more expensive name brand destination. Like Liverpool is a dupe for London. Exactly.

Well, one of those destination dupes is the Isle of Sky in Scotland, which is a cheaper alternative for Iceland's popular capital, Rakevich. Because Scotland is known for their legendary Loch Ness monster named Nessie. The Lack Ness Monster, which has been seen by people allegedly going back 1,500 years. And apparently, that's been a tourist draw to Scotland, Jack. Economically speaking, Nessie generates $80 million estimated annual per year to the Scottish economy. We repeat, Nessie, the monster no one has seen, has driven $80 million in Torrance.

for you to not potentially see her. Wait, if people say they saw it 1,500 years ago, we're saying this thing's 1,500 years old. Well, Jack, she doesn't look a day over 50, but she's doing fantastic. And she's generating $80 million a year in tourism dollars for Scotland. Yeties, you look fantastic for Cevice Wednesday.

And Jack, what's a perfect way you can help grow the show today? Screenshot your phone right now and post it on Instagram with H-Y-H-T-B-O-I. I like that, Jack. That was really good. Have you had the best? one yet and link to the show. Do exactly what Jack just said. That sounds awesome. If everyone does that, we could double the show overnight. You don't need to be a mathematician to know that one.

Yeties, thanks for helping grow the show. Enjoy some pizza tonight. Hold the glue. And Jack and I will see you tomorrow. And before we go, congratulations to Milo, Maria Miranda in Charleston, South Carolina, who was just born. Her big brother Benito is ecstatic and Mama Marley is a legendary Congratulations. And congratulations to Madison, Don, and Donny Webb, who just got engaged in Dallas, Texas. Let's see some ring picks, and Sarah and Matt down in Annapolis, got married after a meeting at Northwestern University. Jack, did you hear what Sarah's dad did at the ceremony? He shredded that guitar, didn't he? You gotta whip out a solo for the wedding. And Priyanka and Mani just got married six years of doing long distance from Houston and Toronto. They are now together in one plane. And happy birthday to Kevin Benjamin Pacman in San Mateo, California. And a happy ninth birthday to Brady Shepard in Walpole, Massachusetts.

His mom is celebrating by running in the Burlington Marathon just outside Boston. Happy birthday to Nishka Parikh in Los Angeles, who just started her first big job, and she's going to crush it. And Julie Enfield is turning 50 years old in Tucson, Arizona. And happy birthday to the Walking Encyclopedia Ritimi Badaola in Berlin, German. No one mocked Chanel like with teaming Machinnell. This is Jack. I own stock of Crocs and IMAX. And I own stock of Disney, which owns a bunch of sequels and franchises that we mentioned in one story.