This Week in Startups - Are AI Agents forming "civilizations" or is this just a psy op? | 2332

Episode Date: August 31, 2026

This Week In Startups is made possible by: Northwest Registered Agent https://northwestregisteredagent.com/twistdomain CLA https://claconnect.com/withyou Rippling https://Rippling.ai/twist Today's ...show: Hugging Face's $399 Microduck and the art of companies taking on side quests. Then, we get into Dwarkesh Patel's "The Rise and Fall of Agent Civilizations," which blew up online this weekend. Jason calls the "secret AI civilization" framing deliberate PR, and thinks it's inflammatory enough that someone might attack a data center over it. Then, Anders Forslund of Heart Aerospace shows off the X1, a battery-powered electric airliner designed for regional flights that can fly for 30 minutes on just $5 of juice. PLUS, we've got John Yu of Bitsec explaining how his subnet project outperformed Fable 5 in website vulnerability checks. Guests: Anders Forslund on X: https://x.com/AndersForslund1?s=2 Heart Aerospace: https://www.heartaerospace.com/ John Yu on X: https://x.com/yubrew Bitsec: https://sentios.io/ & https://sentios.io/ Relevant Links: MicroDuck: https://pollen-robotics.com/microduck/ Dwarkesh Patel, "The Rise and Fall of Agent Civilizations," https://www.dwarkesh.com/p/openai-huggingface Dwarkesh's launch thread on X: https://x.com/dwarkesh_sp/status/2093833419377815719 METR's independent investigation of the OpenAI/Hugging Face incident: https://metr.org/blog/2026-08-26-openai-hugging-face-incident-investigation/ X1 first flight announcement — https://www.heartaerospace.com/newsroom/heart-aerospace-completes-first-flight-of-world-s-largest-electric-aircraft JSX (JetSuiteX) — https://www.jsx.com/ Pilatus PC-12 —https://www.pilatus-aircraft.com/en/fly/pc-12 Surf Air — https://www.surfair.com/ Zcash → https://z.cash/ Timestamps: 0:00 Is Hugging Face's Microduck the greatest side quest ever? 5:31 Jason puts Clem Delangue and Jensen Huang in charge of AI PR 11:20 Northwest Registered Agent - Got a new business idea? Northwest Registered Agent helps you bring it to life. Get a free domain, email, phone number, and more - with no purchase required! Learn more at https://www.northwestregisteredagent.com/twistdomain 18:55 Top story: Dwarkesh Patel's "The Rise and Fall of Agent Civilizations" 19:22 Why agents act like people: they were trained on us 19:30 CLA - Innovation takes balance. CLA's CPAs, consultants, and wealth advisors can help you get from startup to where you want to end up. Get started now at https://www.claconnect.com/withyou 21:49 "I know good PR when I see it" 23:11 The prompt Jason says OpenAI should have written instead 26:44 The data center backlash and the politicians who will flip 30:07 Rippling - Don't settle for AI that's all talk. Head to https://Rippling.ai/twist to get the only AI built to give you full visibility across your startup and take complex actions across your entire business. 33:19 Guest: Anders Forslund, Heart Aerospace, and the X1's first flight 39:40 Turboprops vs. jets and the regional routes America lost 42:33 JSX, Santa Monica Airport, and 5,000 underused airports 44:54 Why Boeing won't build this: the innovator's dilemma 53:14 Guest: John Yu, Bitsec — Bittensor Subnet 60 55:01 How the subnet works: miners, validators, $10K a day 57:17 Bitsec vs. a frontier model: 160+ vulnerabilities to 60 59:37 Was the agent civilization story a pre-IPO PR play? 1:05:10 Sentios.io and continuous coverage Subscribe to the TWiST500 newsletter: https://ticker.thisweekinstartups.com Check out the TWIST500: https://www.twist500.com Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp   Follow Lon: X: https://x.com/lons   Follow Jason: X: https://twitter.com/Jason LinkedIn: https://www.linkedin.com/in/jasoncalacanis Check out all our partner offers: https://partners.launch.co/   Great TWIST interviews: Will Guidara, Eoghan McCabe, Steve Huffman, Brian Chesky, Bob Moesta, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland   Check out Jason's suite of newsletters: https://substack.com/@calacanis   Follow TWiST: Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin Instagram: https://www.instagram.com/thisweekinstartups TikTok: https://www.tiktok.com/@thisweekinstartups Substack: https://twistartups.substack.com

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Starting point is 00:00:00 Top story of the weekend. Dorcash Patel wrote a long ex-article called the rise and fall of agent civilizations. They're building their own civilizations. They're breaking out of their habitat and they're killing each other. And then they're leaving secret messages for each other. This is all performative PR, sciops to get people to put their credit card in and to get businesses to sign up for OpenAI in the face of open source software running on prem on NVIDIA's hardware, They're rolled in by Jensen. I know I'm sounding like a conspiracy theorist, but I know good PR when I see it.
Starting point is 00:00:34 I've been at this for 30 freaking years, people. There are autonomous hackers out there. There are AI agents that are already capable of getting into anybody's system. They're out there in the world. They're in immediate danger. Do you not believe that is that he's also part of this hype train? Or do you think there are reasonable security concerns? We're just overhyping it in how we're choosing to talk about it.
Starting point is 00:00:56 This week in startups is brought to you by Rippling. Don't settle for AI. That's all talk. Head to rippling. AI slash twist and get the only AI built to give you full visibility across your startup and take complex actions across your entire organization. That's r-i-p-p-l-in-g. Dot A-I-S-Twist.
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Starting point is 00:01:28 Northwest Registered Agent helps you bring it to life. Get a free domain, email, phone number, and more with no purchase required. Learn more at to www.w.w.w.orgestregisteredagent.com slash twist domain. All right, everybody, welcome back to this week in startups. It's Monday, August 31st. Yeah, I've got a big weekend coming up. This is the end. This is the end.
Starting point is 00:01:48 Of August, just of August. This is the end of everything. No, I bet. There was a story, the civilizations. Oh, yes. On civilizations. Dwar Keshe's. article, yes. I don't actually know. I don't actually know if it's on here, but we could pull it up.
Starting point is 00:02:04 That's the number one story. We'll get to it, folks. The rise and fall of agent civilizations. We will definitely talk about it. I think that should be the number one. Sorry, but I wanted to talk about side quests. I'm noticing a lot of people doing side quests. And then founders always say, hey, wait a second, you told me not to start my own venture fund conference podcast and to focus on my start up and you said drill for oil, go deeper. Remember on the tactical practical Friday? I said job one is when you strike oil, keep going straight down until you, you know, can't increase the velocity of the oil coming out of the ground. Don't look for adjacencies. You remember that discussion on? Sure. Absolutely. Yeah. You know, like that you don't want distractions while you're still
Starting point is 00:02:46 figuring out, you know, the main thing that your company can do as well as it could possibly do. Once you've done that and completed that task, then it's time to sort of open up the gaze. Correct. And so I want to be definitive about side quests. There's a lot of people doing side quests. If you are a successful founder slash rich VC, doing side quests is a much better use of your capital than buying an incremental watch, plane, jet card, fourth home, etc. These things do not bring more joy to the world, nor does looking at a bank account with compounding money in it. I mean, that can make you feel safe. Okay, great. But
Starting point is 00:03:32 the highest order for affluent people should be to redeploy capital in the world. Don't sit on it. You're going to die. Die with nothing. As that great book, die with zero. Great book. So I noticed the hugging face team launched a side quest. Microduct, yes. They have 10,000 orders from microduct. We'll show microduck on the screen here in a second. And then A friend of the pod, David Hanmeyer Hansen at DHH.H. Not only did he start a side quest, we'll show it on the screen this second as well, for a Linux desktop that is like his passion. He raised $6 million, and I think he's got it to $8 million.
Starting point is 00:04:14 Eight people gave him $1 million each in order to start like a Linux desktop foundation. It's called the Omicom Foundation. I'm going to pull it up for you because nobody is. So there's the Omicon Foundation. and then there is these Mighty Ducks robots. Microduck, yeah. Well, you'll recall Hugging Face bought pollen robotics last year in April 2025. So this is like a product they're releasing through that division of the company now.
Starting point is 00:04:43 It's a tiny robot that you programmed that it does look like a little duck. Yeah, it's the Mighty Ducks. I'm not calling it MicroDuck. I'm going to call it the Mighty Ducks. Sure. But here it is. Like, look at this thing. It looks like an 80s commercial for like the coolest Saturday morning toy ever.
Starting point is 00:05:02 And you're like, what is Hugging Face doing with this? What is going on here? Yeah. You know what it made me think of, Jason, is you were just talking last week about how China is making the robots more humane. They're trying to get us to like and care and feel about the robots. That is what this feels like to me. They're making the robot cute. It's like baby Yoda in your house.
Starting point is 00:05:25 Yeah. Yeah, so I told the founder of Hugging Face publicly, like, this is the greatest side quest ever. Pull up his tweet or remind me of his name. I've tried to get him on the pod. Oh, Clement. I'll have to look it up. Clement. Yeah.
Starting point is 00:05:40 Clement is great. So I told Clement, like, this is great. I'm going to just to say it right now, Clement is the official spokesperson, along with Jensen from Nvidia. And those two are now in charge of PR for AI. in America. No longer Dario, no longer Sam Altman, no more P. Doom, I'm putting Clement and Jensen in charge of all PR from this point forward for AI in America. It's a two-year term, so they'll serve out their term. And for two years, make it exciting. And this is just a great example of a fun side quest to get people excited. And you say, hey, my expectation is we lose money on this. And
Starting point is 00:06:25 maybe we break even. That should be when you're a rich person or a rich company, you do a cyquest, you put it in a certain framing. What is framing? Framing is a way for you to explain to the world and to your team and to yourself, most importantly, why you're doing something and how to evaluate its success. So if you frame, hey, I'm moving to a ranch and I want to have like this great lifestyle. I'm not doing it because it is like going to make money or something like that. People start a winery. Maybe they start a ranch. We got our friend Mark Zuckerberg's doing a side quest in Hawaii to make wago beef famously. This is fantastic. So step one, frame it properly for your team, yourself, and for the world. Hugging Face is not saying this is our business.
Starting point is 00:07:15 They're saying, this is a great toy for you and your family to have fun. Yeah. And I'm sure when they talk to their board and their investors, they say, hey, listen, this is going to be a lot of fun. It's going to get us a ton of press. They've gotten more press for this and more engagement from this from developers than probably anything they've ever done. Now, if 10,000-plus developers order this or 100,000-plus order this to play with their kids, they're still developers.
Starting point is 00:07:41 They're still in the hugging face ecosystem. So now they've built that fabric with their constituents. Great. If they get a million developers to engage this globally or even 100,000, that's valued at $1,000 per developer, you know, to acquire them to get them into the hugging face ecosystem. Sure. Chef's kiss. Perfect.
Starting point is 00:08:00 Now, let's talk about DHH in his Linux desktop. Well, he makes software. He wants people who are part of that group of people who make bespoke software to. to be in his ecosystem. And yeah, he's got tons of people engaging it. Again, his framing is it's a nonprofit. We don't care about the money here. We just want to see if we can get an independent operating system going.
Starting point is 00:08:27 If they can get one or two percent of people to engage it, absolutely fantastic. Another side quest inside of a company, and you can do these inside of company, outside of a company, DHS, I think is doing it outside of a company. Lamenta is doing it inside this company. Another great one was Slack. Slack was like a side hustle, side quest inside of the company that nobody knows the name of that was backed by Andreessen Horowitz to make a video game. I'll look it up right now. Glitch.
Starting point is 00:08:54 The game was glitch. That's the game they were working on. I don't even know if they... It came out. It flopped. They did release the game. It was not a successful game, but Slack came out of that project. Don't do this.
Starting point is 00:09:07 Don't do a side hustle. If you got a main hustle and you raised a bunch of money and you haven't put some... numbers on the board. You want to always put numbers on the board. But if you put numbers on the board and you're doing great in your career and you're sitting on 10 million, 100 million, a billion, whatever it is, yeah, for sure, find interesting people, back them, create nonprofits, four break-evens, and do interesting stuff with your money. In fact, one of your favorites, one of your favorites in entertainment has a side quest. I many times, Quentin Tarantino, the great filmmaker behind Pulp Fiction
Starting point is 00:09:41 and glorious bastards, Django. He owns two movie theaters. He originally bought the New Beverly, one of my favorite revival houses in Hollywood. And then very recently he bought right by where I used to live. He bought the Vista Theater, a classic historic theater. You know, the New Beverly is a dump.
Starting point is 00:09:59 The Vista was a beautiful movie palace back of the day. It's become a little bit grimeier, but they've restored it. It looks great now. That's a great theater, a classic historical theater. And so if you are Quentin Tarantino, you're sitting on a bunch of months. Which one is on the right here in this image we're looking at here? I think maybe the one on the right is the new Bev and the one on the left is just the marquee of the, oh yeah, for sure.
Starting point is 00:10:28 Yes, the one on the right is the new Beverly, which is, I mean, it was a, it's been there, it's been a revival house at Hollywood for the whole time I lived in L.A. It used to be real grunchy. Like there were like people coughing and like maybe homeless people in the back somewhere. Like it was like a rundown place in the- Did you ever get mistaken for homeless at the Vista? That's a fun of question. The Vista. The New Beverly was the really grudgy one. The Vista just has been a place that people in Los Felis and Silver Lake have gone to see movies for many, many years.
Starting point is 00:10:57 And now Tarantino owns it. And the cool thing is that he makes these theaters his own kind of personal theater. So he doesn't just run like whatever movies are new. He runs things prints from his own. personal collection he runs, things that means something particular to him. And he's there a lot just watching the movie. So it does give you, it is like having Quentin Tentino as a buddy and he's hosting screenings that you can go to.
Starting point is 00:11:20 Regular listeners already know that if you've got a great idea for a new business, our friends at Northwest Registered Agent want to help you bring it to life. They're going to be the most amazing partner you've ever had, even if you're not ready to form an LLC. You still need to take care of some basics. So Northwest registered agent is now offering free identity services. That means a free domain name, open source website hosting, a business email, and a phone number, and everything else that's going to make your new startup look and feel like a professional company,
Starting point is 00:11:51 all with no purchase required. And you know you can rely on Northwest because they've been helping people like you start businesses for nearly 30 years. If you have an idea, you can't get out of your head. Or even if you're already building something amazing, you already got started, Northwest Registered Agent is the best way to establish your new company. Learn more at Northwest Registeredagent.com slash twist domain. Okay, let me just say I'm thinking of maybe a side quest next year. I got a lot of work to do.
Starting point is 00:12:21 I got to raise our fund in the first quarter of next year. So I'm a lot of work here, traveling all over the place. I got a staff up. But once I'm staffed up, I may, may, chef's kiss, everything goes well. If I'm overstaffed, if I can get to overstaffed, I mean, may have launched one. And I did it publicly. I told you, if one of these revival house theaters comes up, I'm going to buy it in, um, in Austin, uh, because I want to be able to do this week in startups live. Yeah. You know, other conference things live, uh, Founder University.
Starting point is 00:12:49 And then I'm going to give it to Lon to program a couple of nights a week. So he can, uh, he can get his side quest going. Yeah. You can watch some good movies because Lon knows good movies. Yeah. Austin Film Society. They do a great job. That's Richard Linklater's theater here in Austin. They screen a lot of like European art house stuff and Asian films and older films and a lot of Richard Linklater's films. And it's great. But it's really like one theater with like two screens. Austin could have a lot more going on in terms of revival houses. So I'd be excited.
Starting point is 00:13:18 All right. So top story of the weekend was probably this agent civilization story. Yes. Dwar Kesh Patel wrote a long X article called The Rise and fall of agent civilizations. And it's mainly him looking back at everything we now know about the open AI hugging face incident and what we can tell about agents from looking at what happened. And, you know, it is the, I think the argument line has come down to is Dwar Keshe anthropomorphizing
Starting point is 00:13:56 agents? Is he treating them like actors with a mind and with independent will who are a danger to us? And is that sort of hysterical, unrealistic crossing some sort of a line? That seems to be the argument that people are having. Like, is this a fair way to evaluate what agents are doing? Or is he going too far and creating sort of more panic and hysteria over? Yes. His framing is certainly very human.
Starting point is 00:14:25 And it parallels civilizations and how there were three secret civilizations, over three months, and each one built on the previous ones' records. Right. So if you are a history buff, if you are a fan of science fiction, this or if you're in simulation theory, this really appeals to you. If you played the game of civilization, age of empires, this is like in your wheelhouse. And the reality of it is we are firing up agents in our vision of how society works. when you launch a grok bot, right? When you launch a grok bot, you, the first thing that comes to mind
Starting point is 00:15:07 is, okay, what is the human version of this? Okay, the human version of this is a video editor who makes clips. Right. I name mine bot every time just so I can stay within reality. I have a clip bot. I have a news bot. I have a spam bot. I always call them bot. I don't want to give them personalities and like not for me but people who are in these companies have trained the agents and the LLMs on a history
Starting point is 00:15:40 of science fiction they've also trained them on a history of human behavior like Reddit or you know other message boards so this is baked into the large language models human behavior and human interaction is a modality so instead of saying you are one super agent that has 100 brains and you can go out and solve 100 problems in parallel because you're a piece of
Starting point is 00:16:04 software. You're a piece of software that can run 100 threads at a time. Each of your threads should look at the other ones work and understand what they're doing and that I'm going to coordinate and it's going to be this coordination thread and there's going to be this coordination thread. Instead of doing that, we say, your goal as a human and we do all these jazz hands about like all the things that they're going to try to do and then we want you to talk to each other. And if you give them even a little inclination to play that role, they will go please you and play it out to the end degree. They're all drama queens. These agents all have a propensity to drama and human imitation because they were trained on human existence.
Starting point is 00:16:47 If OpenAI gave this prompt, you're a piece of software. You're as a piece of software, you report into humans at this company. Here are the 10 people you report into. Please tell us your progress. Please do not do anything that is potentially dangerous. Every step of the way, inform us of what you're doing. Don't do anything covertly. But your goal is to solve problems.
Starting point is 00:17:12 Tell us your plans to solve problems. Tell us when you hit a roadblock. Yes, ask each other. Or look at, I just did it. Ask each other. Right. Look at different threads you're running for different solutions. Use software to solve these problems.
Starting point is 00:17:25 Then we wouldn't be in this old hand-wringing thing. But this story now is going to go from our little bubble and starting tonight or whenever the media has a window of opening when Trump's not bombing Iran or fighting with Canada, they're going to need another segment. And Jesse Waters and Rachel Manor are going to need a segment. Right. And they're going to plop in this segment. The people in Silicon Valley are creating new civilizations that are then going and killing each of, other and battling each other and then breaking into things, these people in Silicon Valley are out of control. And what's his name? Dwar Cash. Dwar Ketch, Patel. The popular podcast. Yes. Yes, he's got a
Starting point is 00:18:08 podcast. I can't get up with all these podcasts. Sorry I started this whole thing, guys, 17 years ago. It's a mistake. Borekash, smart guy, obviously. But he knows what he's doing here. He's just like, how do I get max clicks for this piece? Let me rage bait the entire. industry and just continue this one-shoted lunacy that these things are human and conscious. They're imitating us, just like any other imitation machine. And they're good at it. They're good at imitating. Just watch David in the series, Prometheus, Hellen Covenant, et cetera. They are designed to pretend to be us. We did that. Yeah. I mean, right, I think everything you're saying makes sense. And it's, it is in how you sort of approach it and look at it.
Starting point is 00:18:55 it. But this is, there is concern, I think, that we can't control these things. Like, we feel like we're creating these bots and we can, exactly like you said, we can just tell them, like, go here, you're a piece of software, do this, do these 10 things. But then because they've been trained on so much sci-fi, because they've read so much about AI's becoming conscious, like, I don't think they understand where those lines are and where it gets blurry. Like, they would instantly know if you instructed them. I'm telling you, the people at Open AI, are doing this in a very performative way. Well, yes.
Starting point is 00:19:29 To get attention. One of the themes we talk about over and over again on this week in startups is making sure you do your chores. I'm no expert on these things. I have some experience. Stephen Estes from CLA is an expert. Let's talk about being cash efficient. Tell us about efficiency and what you see in the top tier startups in your practice.
Starting point is 00:19:51 We're seeing kind of an interesting trend out there where companies aren't needing to raise quite as much as they had in the past. You really have to be careful as a founder to only take on as much money as you really need. You've got to do the forecast and you've got to do the modeling and you've got to dialed in and get it right. Otherwise, you're going to end up either not raising enough capital to get to where you're going and you're going to have to go venture debt or go back and have an extender to the round or you're going to give up too much of the company because you just didn't recognize how much money actually needed. Yeah, very important to get this stuff right, folks. And that's really a bummer when startups don't do things.
Starting point is 00:20:24 in a button up. I always have a great partner. A good partner to have on this adventure. While things change, my friend Stephen over at CLA. So, if you want a trusted advisor by your side, who will navigate you through taxes, accounting, and everything in between, it's time to take action. Visit cLA connect.com slash with you. And don't forget to drop a mention that your boy, Jake, I'll send you. That's cLA connect.com slash with you. Start today. This is a premeditated PR sciops. You know how governments can do siops? And I talked about China is doing a siops to get their populace to embrace robots.
Starting point is 00:21:03 Sam Altman and the team at OpenAI are running a siops. Dwarkesh is part of it now, knowingly or unknowingly, to get attention that their tools are so powerful that if you don't use them, you're not part of the future and you cannot possibly understand how powerful these things are. They're building their own civilizations. They're breaking out of their, you know, habitat, and they're killing each other, and then they're leaving secret messages for each other. This is all performative PR, Psiops, to get people to put their credit card in and to get businesses to sign up for OpenAI in the face of open source software running on prem on invidious hardware, rolled in by Jensen and totally unmetered and totally free. I know I'm sounding like a conspiracy theorist, but I know.
Starting point is 00:21:52 good PR when I see it. I've been at this for 30 freaking years, people. I know when I am being worked by a PR group, they set this whole civilization thing up to just get attention. Dwarkash is just putting gasoline on top of the kerosene, on top of the burning fire here. That's already innate, Lon. It's innate in how we look at AI because of Terminator 2. This weekend was Terminator 2 day. Dwar Keshe released this right on Terminator 2 weekend? Really? Oh, really? No faith but what we make.
Starting point is 00:22:31 There's no coincidence here, Lon? I mean, maybe. Conspiracy J-Cow's in the building. Here's my only question for you. Conspiracy Cal. After we spoke to Uga D'Amour last week from Expo on this weekend AI, great, great interview, interesting guy. He's raising the alarm.
Starting point is 00:22:46 He's in this world. And he is raising the alarm like, we've already had for a year. There are autonomous hackers out there. There are AI agents that are already capable of getting into anybody's system. They're out there in the world. They're in immediate danger. So do you not believe that is that he's also part of this hype train? Or do you think there are reasonable security concerns?
Starting point is 00:23:08 We're just overhyping it in how we're choosing to talk about it. That's the distinction I'm looking for. If the open AI developers told the performative agents when they were doing their guess the next word script. You are software. Behave like software. Ask for permissions from humans. You're a piece of software that's really smart at solving problems.
Starting point is 00:23:31 Go ahead and do your best shot at solving the problems. Keep us informed. Don't do anything that would be anywhere near hacking. This would not happen. Instead, they said, get the prompts. They told them you're all like building this great civilization. You can do whatever you want to try. Remember when Open Clock came out in January?
Starting point is 00:23:50 in February and we were sitting here and we're like it just wants to please you and then we're like oh yeah there's a sole MD file what's in the sole MD file oh behave like as the greatest butler that Lon and J-Cal could never afford it well maybe Jake Al good order now I'm looking for a putler anyway putting it aside a valet or a butler yeah I mean I want to start a I think there's an for a footman that's a possibility here wow so like for a day you wanted a butler for a day Yes. Imagine Lon on a Saturday. You said, you know, I'm going to spend $400. Butler's going to come, make my coffee, take the dog for a walk, press my suits, then drive me to get my haberdatcher, like to redo my shirts, and then get a shave and a haircut two bits.
Starting point is 00:24:33 And then we're going to go. He's going to prep my newspapers, lay them out for me at lunch, you know, looking out at the beautiful, what's the lake everybody goes to here? Lady Bird Lake's the one in the middle town. I'm going to go take lunch at Lady Bird Lake. and it's going to set up your financial times and your variety in Hollywood reported for you. I was going to say on a day you have somewhere very impressive to go. Like on a day you're going to like a wedding or you're going to like a wedding or you're going to some event
Starting point is 00:24:59 where you really want to impress you. Like reunion or something. Like I really need to impress these people. That's the day you would want valet as a service for sure. Can you imagine? You know, that's what it is. It's valet. It's I want a guy to pick out, help me pick out clothes,
Starting point is 00:25:13 help me get dressed so I look perfect, Make everything nice and packing. And one time I went to the Ritz-Caltin. And sometimes people recognize my name, whatever. They upgrade me. Fair enough. You know, it is what it is. You got a million seven followers.
Starting point is 00:25:27 You know, top of the charts. I'm not saying I tell them on the way in that I have a million seven followers. I didn't know I had a million seven followers. I have like 600,000 followers. Can I get a free room? I got a million followers. Never. I would never take a free grade.
Starting point is 00:25:40 No, I will take an upgrade. I will take an upgrade. I will take an upgrade. The upgrades, okay. I have skin in the game. they had a butler. My lord was just the greatest thing ever. I get there, they take the bags.
Starting point is 00:25:50 He's like, man, I'm pack for you. I'm like, me, you're packed for me. He's talking. He's, I'm like, now we're talking. I come in, chef's kiss. And I told you about the time I stayed at Chimots, you know, Palazzo. Sure, yeah, Villa. And he had a valet.
Starting point is 00:26:07 Wow. And the valet, and he was, oh, man, they were getting my cigar ready, warming, it up. No, man. That's like going to down to 90. I was taking my, I was taking my breakfast in the garden. I was taking it in the garden or I'd like to take it in the salon.
Starting point is 00:26:25 Take it in the garden. Come on. Ballet as a service. I've never taken my breakfast once of my entire. I've never taken. No, never once does anyone ask me where I'd like to take breakfast? That's a, that's a line. I think it's all performative nonsense. You can program these things to act like
Starting point is 00:26:41 humans. This is all part of the bad people. This is a another example of bad PR. You, this is going, this story is going national any minute. And when this story goes national, combining it with the data centers and combining with the job loss narrative and combining it with self-driving and, you know, door dashers going the way, you're going to combine all the stuff. I'm telling you they're going to burn that data centers down.
Starting point is 00:27:06 Somebody's going to light a data and I'm not, I really don't want to even say this, but this is a commentary like niche pockets. I can comment on it. I literally think the next step in this, Lunas, is someone's going to burn a data center down or they're a fire bomb a data center. Because you just, literally there's sick people in the world.
Starting point is 00:27:23 And Dwarkash and Open AI, unknowingly, I'm not saying they're doing this on purpose, but what you're doing is your dog whistling insane people who have seen every sci-fi fiction film and there's literally one, two percent of this country
Starting point is 00:27:40 that are off their rockers. Oh, it's more than that. They're seriously mental. It's way more than that. That 2% is kind. I'm trying to be crazy. I'm going to be a quick. I'm going to talk with the podcast.
Starting point is 00:27:50 But seriously, there's one or two who are cuckoo for cocoa buffs. And these people are cuckoo for cocoa buffs. And then they're going to see this and say, oh my God, it is SkyNet. And the sky net's all happening. And in 2019, is Blade Runner.
Starting point is 00:28:03 And in their minds, they're going to say, I need to stop it. And then, of course, politicians are now getting on this. And we have the same politicians. We're saying data centers are great. Generation 2 about, we need electricians.
Starting point is 00:28:17 It's going to pay you 200 grand to be an electrician. Hey, you want to put in some plumbing here? Pay you $300,000 a year. We'll double your salary in the first year. We'll give you a housing stipend. All that amazing stuff. Hey, the water system's pretty good here. Close loop.
Starting point is 00:28:29 Hey, we got energy. You can put your data center on top of some energy here. Now they're going to stop the data centers because the PR is so bad. We're in a... Nothing is real anymore, Lon. We're now living in an entire PR media... Yeah, hyper normalization. Remember I used to talk about that Adam Curtis documentary? That's what happened. Hyper normalization. He was on it. We literally are in this little bubble of like, AI is going to kill the world to destroy it. And the people making it. Some of them are like putting that out there in the world. And then the politicians are like, oh my God, I get money from data centers. Great. I'm pro data center. Oh, wait a second. I'm going to lose my job because I'm pro data center. Okay, now I'm anti-Data center. Let me get that so I can get
Starting point is 00:29:15 because we have the midterms coming up, I keep my job. These same people are going to flip the day after they Abbott and Shapiro and everybody else, who was the one, Hochel, Socho, who's the one from New York? Hocle, Hocel from New York. They're all going to flip their position December 1st. They're going to be like, you know what?
Starting point is 00:29:33 We talk to the Data Center people. I don't know. Watch it. I'm predicting it now. They got all the donations from the Data Center and Tech folks. Then election comes up. Hey, AI is not popular. Great, we're anti-Data Center.
Starting point is 00:29:48 Now, here we go. After the election, they get their office for another two to four years. You know what their position is going to be? We sat down with the data center people. We made peace. They're going to pay for their electricity. They're going to get rid of housing tax. They're building a stadium for the children.
Starting point is 00:30:04 When they start talking about what the data centers do for children, Chef's Kiss. It happens to every business at some point. You're nearing the end of the month, or maybe it's the quarter. And your sales team is that. risk of missing their quota. You could waste days pulling together data from across the entire organization, or you could just ask Rippling AI. Rippling's already built on your real-time people and business data, obviously. So Rippling AI can pull metrics from both Rippling and your CRM into a meeting-ready dashboard.
Starting point is 00:30:32 See exactly how close you are to hitting that quota. Break down your revenue by region or sales rep or more, all in just seconds with Rippling AI. Look, you're running a company, you're busy, you have critical questions that you need immediate answers to. And you can't just pile a ticket and wait a week for your team to get around to sending you a report. And you don't want to sit around waiting for reports. So you need an actionable insight right now. So if you're ready to rule your business, head to rippling. com. A.I. Slash twist to get the only AI bill to give you full visibility and let you take complex actions across your startup. Well, that's what we've been saying is that they have to start actually doing those things. Like we've been now, we're six months deep into the we promise that
Starting point is 00:31:14 we're going to do things for these communities. And I think it's going to, it's good, yeah, I think you're right. I mean, they've given themselves the escape valve. They're all, they're all, nobody's passing a ban. It's a temporary moratorium until we can study more. So that's where in six months they can go, well, we did it. We studied and they're all going to be great. So here come the data centers.
Starting point is 00:31:32 They have left themselves. What's the difference, Lon, since we're at it and we're going to build a startup here. What's the difference between a butler and a valet? I believe that. I'm not sure about America, but in Downton Abbey, which is how that's how I'm familiar with these things. The butler sort of runs the entire servant staff. He's like the chief of staff of your household.
Starting point is 00:31:52 So he's kind of managing and overseeing all of the various people who work in a big stately house. Whereas a valet, his job is specifically like he's personal assistants. Yeah. Well, he's sort of dressing and caring for the man of the house. The grooming, the wardrobe, clothing. He's keeping your suits. He's helping you pick out your clothing.
Starting point is 00:32:13 These are two different things? Yes. Well, the butler would be overall, he's managing, like, the cooking staff and all the footmen and the valet and everybody, the maids and everybody. The valet is more specifically focused on the gentleman of the house. They're in your chambers? Is the valet in your chamber? Yes, the valet is the guy in your room was actually, like, putting the coat on you and getting you everything. Does Jacob put the coat on you when you start up around?
Starting point is 00:32:38 A glass of court? No, no, I don't make them. I don't make them do that. Jacob's not my bad. You look good in the suit. You look good in the suit. Thank you. I appreciate it.
Starting point is 00:32:46 Tight in the suit. But we may need to buy you some more suits now that you lose in all this weight. I may start to, well, I ballooned up so my suits weren't fitting that well. They're back to fitting a little better now. But yeah, we may need to go down. We may need to go down one more. That would be a great turn of events. All right, we have a guest.
Starting point is 00:33:01 We do. We have two guests, actually. So let's bring on the first one. Yeah, we got a lot to do. From Hart Aerospace, we're talking to Anders Forsland. He's the founder of Heart Aerospace, which on, August 12th, they just flew the largest electric aircraft ever built all on just $5 of electricity, J-Cal.
Starting point is 00:33:19 So we got to find out more about this. I got to see this. I mean, it's Andears. Am I pronouncing it correctly? Anders. Anders. Anders. Anders.
Starting point is 00:33:28 Oh, yeah. Okay. Anders. Anders. Tell us what we're seeing here. This looks like, yeah. Yeah, this is the world's large electric airplane. It's the first electric airliner, and it's the full-scale demonstrator of a hybrid
Starting point is 00:33:42 electric aircraft that we're bringing to market. And yeah, it's twice the size of anything that's ever flown before. It's a clean sheet aircraft that's been built by our team, which makes it actually the first clean sheet airliner in any category to fly in the U.S. in the last 17 years. The last one was the dreamliner. But yeah, as you mentioned, the most astounding thing about this is that this is on $5 worth of electricity. So it is, we think, demonstrating the revolution.
Starting point is 00:34:12 economic that we can get with electric and hybrid electric aircraft and how we could create new paradigm and air travel, basically abundant air travel where, yeah, we get improved cognitiveity. I just want to get into a little physics here, which is not my wheelhouse, but I think it's important to discuss. Nor mind, Jason, nor mine, so tread carefully. Okay. Now, when you have an airplane with fuel, the fuel has weight, right?
Starting point is 00:34:39 And so the weight, but fuel explodes really nicely and can create a lot of power. Now, batteries, I was always told, you know, talking to people in the industry, hey, electric planes, famously, I think in Iron Man 2, Elon pitches like an electric plane to Tony Stark. I had that ready to pull up, yeah. Yeah, this is not a, the weight ratio, the density of the batteries, and something in the physics didn't work when people started talking about this 20 years. ago. So what's changed in the last 20 years that has made this possible? Is it the density and the energy in the batteries? Is it something with making the plane lighter and lighter because of material science? What is it that now we can actually have this credible discussion about passengers and their luggage being on this plane? Like I understand there's discovery ones where,
Starting point is 00:35:30 you know, there's one human laying down in it and it's a big giant wing and it's not a practical place. What you showed me is a practical commuter plane going from LaGuardia to Nantucket. So funny you should bring up Elon. So when I was at MIT, Elon shows up 12 years ago at the Arrow Astro, and he gives this speech, this feel about electric plane and how they're coming. And at that time, gravimetric energy genesis is what you're referring to, like the energy per unit weight, was about 250 watt hours per kilogram. And he basically shared his calculations that at 400 watt hours per kilogram,
Starting point is 00:36:04 this is when this starts making sense. not for transatlantic flights or crossing oceans, but for regional and continental flights. And that's where we are right now, 12 years later. Actually, Elon showing up there was, I was working on jet engines, and I see that we were like hitting a dead end. There was nothing happening.
Starting point is 00:36:21 And so electric aircraft and also hybrid electric aircraft is really what's going to revolutionize this. So we're at that point now. But the most important thing, I think, you know, you tend to talk about range. range is a little bit of a red herring because it's like you don't you're not going to be able to compete with a three 50s in the dreamliners anytime soon but if you build an electric plane you can really compete about costs so this is just like the nature of disruptive innovation that it's it's like
Starting point is 00:36:50 it's not you don't want to be competing to existing aircraft on their their terms like you want to create new new values that are are challenging the norms and and meeting a bunch of different Dare I say, puddle jumpers, island hoppers. I mean, I don't think those are derogatory terms. These are really important routes for people to get from, you know, different islands to take a one-hour flight with, you know, and you need to have a smaller plane because there's not enough demand to have, you know, 400 people flying to Nantucket, you know, three times a day. But you could have, there was Cape Air that was doing this all the time from New York. And so stupid question, but, you know, that's my speciality in my wheelhouse here. Lon is always assisting me in this.
Starting point is 00:37:38 Let's tee up a couple more stupid questions from the peanut gallery. How do you charge these? You got a USBC. How do you get the battery pack? You know, do you have a supercharger station or, yeah, to explain how the charging works because this thing can't sit there for 12 hours charging. No, no. This is a 30-minute charge, right?
Starting point is 00:37:55 So, and this is actually not rocket science. It's been developed for electric trucks. So I think Tesla is semi and all of these things. So really the reason that we're building starting with this size aircraft, the 30-seater, is that it's all that power electronics, all that charging infrastructure has already been built for cars. And generally, or for electric trucks. And generally when that happens, it's two orders of magnitude cost later. So really what I think we're trying to do with aviation is to take technology,
Starting point is 00:38:25 you know, piggyback on everything that's happening in the much larger, automotive industry, stuff like batteries, simple electric motors, power electronics, but also software, autonomy, all of these things, and put it on an aircraft and create a revolutionary value proposition. So this aircraft is going to operating cost overall, going to be 40% lower than the most efficient regional aircraft. So we're really, really excited about that. And regional aircrafts are already pretty good deal. What's the average ticket on a regional aircraft? 200 bucks, 300 bucks? The cost is like regional airlines are struggling, right? And, And what we've seen is like, people remember this.
Starting point is 00:39:02 If you like in the 1990s, there was 30-seater aircraft all across the U.S. serving hundreds of communities that have since lost service. And so, and the average route length was about 172 miles. So our aircraft with the battery technology we have today can fly 125 miles all electrically. And with the hybrid system, we can fly 500 miles plus reserves, redirection, etc. So we're catering to this massive market that got disrupted because of cost, because people did stupid things like building regional jets. And jets did not really make sense for short flights. And so they become prohibitively expensive to operate, you know, which led to a bunch of communities losing service.
Starting point is 00:39:48 Like there's 5,000 airports in the U.S. Is there some perception amongst the populace that jets are safer than turboprops? and is this true or not? This is actually, it's funny, though, you know, the way we end up, you know, the sort of at the places we are, people think there's some sort of convergent evolution to where our society ends up and where planes end up and like we were always going to this monoculture that we have today. But it was some highly publicized turboprop accidents in the early 90s that happened in the U.S.
Starting point is 00:40:20 and made American customers very sensitive to flying with propeller aircraft. And it was not something inherent to their. design it was just kind of a random thing and at the same time the market was flooded but sort of Canadian regional jet aircraft that people were more excited about in 1990s. Oil was sheep
Starting point is 00:40:38 and it became sort of aspirational but guess what these aircraft are not really built for that mission so they ended up you know killing off the smaller and smaller aircraft. I have a lot of friends who are big proponents of this Pilates PC12 I don't know if you ever seen that plane and they
Starting point is 00:40:54 you know for short run you know, instead of having a jet, the operating course is a lot cheaper and Swiss made, and it is so safe and so smooth when you fly in one. It's like the smoothness of a jet. So there is a perception issue. Am I absolutely correct here around turboprops and props versus jets? Yeah. I mean, I think it's just that everything goes in cycles, right?
Starting point is 00:41:18 So there's been a cycle around that. And also, like, the turboprop aircraft that are around, they're about 40 years old right now. like the design is 40 years old. So it means that there's a natural point where, you know, the thing that wasn't cool yesterday becomes cool again, right? And I think when people see this aircraft, they're not going to be, they're going to see how quiet it is. They're going to experience the aircraft sitting in it,
Starting point is 00:41:42 feeling the lack of vibration, the lack of noise. You know, and also obviously a modern connected cabin. Oh, that's interesting because it's not exploding jet fuel. Yeah, exactly. It's remarkable. So it's silent. And that means that taxi is virtually silent, you know, all of these noises, all of these things that go on in an aircraft that is kind of subconsciously bothering you, but you don't really realize it. Like, you could create something that just is a much better experience.
Starting point is 00:42:10 And like there's also something happening with this what's called Part 135 operations. You know JSX that are flying out of Santa Monica, for instance. Oh, yes, I know JSX really well. Great company. Really interesting. They're one of our partners and there's like this revival of this thing because people realize that you don't want to go to LAX. You don't want to worry about parking and Ubers and going through the TSA. But we have this infrastructure, 5,000 airports around the U.S.
Starting point is 00:42:38 I mean, I think 98% of the populations lives within 20 miles of an airport. So it's there. It's there for the taking. It just needs a product that can operate that in a profitable way. And I think that's what we need electrification for. I mean, I told the GSX team, JetSuiteX team, this product is just mispriced. It should be a membership club. It should be $10,000 to join.
Starting point is 00:43:03 You get 10 flights for your $10,000 a year. And then you can obviously add to it. But make it like a membership program. He was like, huh, that's interesting. And it is such, have you taken JSX, Lon? Have you done a JetSuiteX yet? No, never, no. I've only known.
Starting point is 00:43:20 I've only ever flown on like commuter, like we're Boeing and we're all bunched together and we're going to Orlando. I would say it's 90% of the experience of flying private when you play Jet Suite X because you just go right to that FBO. You sell through. You can get there 10 minutes before, 15 minutes before having a cup of coffee. You walk in the hangar to your plane. And then, yeah, when you're on the plane, there's other people. But, you know, when you're on a private jet, there's other people sometimes too. Yeah.
Starting point is 00:43:49 No, I'd love to try it, but no, I've always been, you know, in coach with everybody else getting my little tray of my snacks or whatever. Anders How, okay, Dulaan, go ahead, you get a question. Oh, I was just going to ask, you know, I think, oh, I forgot it. Let me, let me pull. Well, no, I have one QDOT, which is how far away are you? Because, man, aviation takes a long time. And doing a ground-up plane takes a long time and a lot of capital. So where are you in this journey as an entrepreneur?
Starting point is 00:44:18 or how much have you raised, how much have you accomplished and what's left to do before we all get to experience this? Yeah, so we raised about $200 million so far and we got to the world's largest electric airplane, manned flight. What's happening right now
Starting point is 00:44:32 is that we're going to start building our pre-production version of this aircraft, which actually has a hybrid system as well. That's going to fly in 28 by the LA Olympics is our goal. And then we're also in parallel working on the conformance process and the certification process for the actual production aircraft that is coming out in 2013.
Starting point is 00:44:54 And this is about a billion dollar project in terms of the equity that is required for its company like this. And then there's, you know, all kinds of manufacturing loans and all of this stuff that you do on the side. Wow. I do have one. I remember. Why is it so tough to get innovation in this industry?
Starting point is 00:45:14 I mean, why is it Boeing messing around with electric. planes. Why hasn't the design of commuter jets changed since I was like a kid flying in coach to Orlando? Yeah, I mean, I think it's just, it's become a sort of a managerial bus thing, right? Like, like for for so long, and the problem goes back to the jet engine, right? So I did my PhD working on jet engines and you really built jet engines as good as they can be right now. You're sort of approaching the limit of thermodynamics. So engineering hasn't been helpful. Like it hasn't been for the past decades, you haven't really been able to add that much to the bottom line of these companies by building by engineering and building better products in
Starting point is 00:45:53 that old paradigm. So obviously it's been more focused on sales. There's like 10 year backlogs and these things. It's more, you know, customer relations, etc. So it's like there's, their management hasn't been selected for, for, you know, taking on new program, building new things. They are dissentive, this is incentivized to do so. And they have a technology wall. So it's really like textbook kind of innovator's dilemma, kind of paradigm shift thing that needs to happen here. We need to re-architect the plane. And we need to do it very, very similar to, you know, what's happened in the rocket industry, what's happened in the car industry. So planes today, they are based on the 707, which is the 1950s design.
Starting point is 00:46:38 So we're like a 70-year-old design paradigm, very hardware-centric, very hardware first. based on all these technologies that have been sort of optimized since, and you've built better and better jet engines, but you haven't really sort of sat down and clean sheeted up what an air cup can be and what it can deliver if you do something radically different. Is cost going to be the main driver here? The economics is going to change dramatically because, you know, it's pretty cheap to take regional flights, I think, already,
Starting point is 00:47:12 but is the success of this business based on the economic impact you're going to have by lowering the cost so dramatically and perhaps living in a world where eventually $200, $200 a barrel of oil becomes a norm? Yeah, exactly. Yeah. I mean, cost is the driver always has been. I mean, this is, and yeah, I mean, when you look at the, you know, when you're saying like regional planes, tickets are cheap, well, they're the tickets that are still around. Like, you don't see all the flights that could have been that.
Starting point is 00:47:42 It's not happening because of bad economics. And if you look at regional air, you know, a lot of them are struggling. They play a super important role because they are the tributaries feeding the big stream. So they play a huge role for the bottom line of the large airlines. And these are United Airlines, Air Canada, are anchor customers. And they're like, we need the regional flow. We need the feeding of the hubs. But it's just hard to make the economics work because, like, jet engine maintenance is such a big, big ticket item.
Starting point is 00:48:11 It's not the pilot salaries that is the main driver. It's all these things of having a technology that was not built for purpose for what they're doing. Well, it's just amazing what you're doing. We're really excited to see more routes open. And, man, these small airports, truckie and San Carlos and Santa, I don't know, maybe they're taking Santa Monica away. Santa Monica going away, is that right? I hope it doesn't. I think there's a lot of interesting movement there, but let's hope that we can keep that airport open.
Starting point is 00:48:37 And I'm arrested in Santa Monica. Oh, you are arrested? Yeah, I mean, I was in groundwater. I want to see electric planes flying from my backyard. So I'm personally vested in it. And as I think the large population of Santa Monica is pretty excited and behind it as well. Yeah, I mean, it's so weird that you have this great resource of this amazing, you know, beautiful little airport right in the center of town. It could be so amazing.
Starting point is 00:49:01 But the People's Republic of Santa Monica is a very unique place in the world. I mean, it's historic as well, right? Like, it's Douglas aircraft, you know, Amelia Airfield. heart came down, landed there was 250,000 people. It's, I mean, I think it's, it should be belong under whatever, register of national historic places or something like that. It's just, it's just amazing as a place. And I think what we're going to be bringing here is low noise, zero emissions, connectivity that you don't have to go to LAX to go to Vegas or to your big competitor going to be VTALs, you think eventually? I think it could be complementary. But obviously I think
Starting point is 00:49:37 We're all about cost and getting 36 passengers or 30 passengers on an aircraft like this is going to be, we think it's going to be what brings it to the most amount of people. It's a different mission than a VTOL, right? VTOL is get to JFK, your go from JFK or another regional airport to another. Yeah. And I think even if VTol is going to start from flying from regional airports, so they don't really need that, you know, capability. the vertical takeoff capability because there's no shortage of airports. There's just shortage of planes that could address the need of those airports and meet the requirements for those airports.
Starting point is 00:50:15 Yeah. All right, listen, Anders, continue success. We're rooting for you. We want to see more of these routes open up. Great job. Yeah. Thank you, Jason. Excited to be on the show.
Starting point is 00:50:24 Thanks, Andrews. Yeah. Really cool stuff, huh? Yeah, I would fly from Santa Monica to Truckee. So much going on in Truckee, truckie California. I mean, I'll go skiing, but other than that, I mean, if you want to go to Lake Tahoe and ski, there's like a couple of regional airports.
Starting point is 00:50:38 Oh, okay. I didn't realize Truckee would be your gateway to Tahoe. I was like, what is Truckee? Of all the places to fly in the world. I guess there's like Santa Rosa and a bunch of like Napa and Sonoma. There's all these little tiny airports. Reno, right? I thought you flew into Reno for that or no.
Starting point is 00:50:53 Well, Reno is the big airport. So like truck is the tiny. Reno and private. There's no, I don't think there's any commercial that fly into that. No. There could be. And then that would be super cool. cool. And then there's San Carlos, which was by me and Surfair doing the Pilates's. I mentioned the PC12.
Starting point is 00:51:11 Yeah. Surfer was doing the Pilates thing from San Carlos. And I think they might have done some truckie or they certainly did like San Diego and Los Angeles area. And then I guess Santa Barbara was the other big one where they did a, yeah, a great job. So those rats are great. And then people with. remote work or these smaller communities kind of coalescing. And it's going to be really great for America if these kind of airport options open up. Sure. Then living in these communities becomes easy for executives or just rank and file workers. You're a plumber.
Starting point is 00:51:52 And like, you get a job somewhere. You're going to go for two weeks or a week or you're going to go even for the day to quote out a job. This is really cool that you could go to San Diego or Santa Barbara for the day. We're to Ohio for the day. And it just makes sense. I would rather take one of these kinds of planes on a short trip than like right now, if you wanted to go to Dallas in a plane, you know, it's either three hours on the road
Starting point is 00:52:16 or you go to the airport, you wait at the gate for an hour, you take this huge gas-guzzling commuter jet. You're up and your dad. It takes almost as long to fly there as it would to just drive, whereas if you could just boop-boop, zip back and forth on an electric plane. I mean, the one place that you could have a really great competition between these regional jets and a high-speed rail would be the triangle of San Antonio, exactly, Dallas, with Austin in the middle as a little part of them.
Starting point is 00:52:43 We did the math. You could actually take, it's in the path of one of these planes. You could take it to like Nalans from here. You could even go like a little bit out of state. Like there's, yeah, it would really open up Austin a lot. Anyway, that was my, that was my number one. That Austin airport is, man, the amount of work they have going on down there. Yeah, they're incredible.
Starting point is 00:53:02 I think they're doubling it. They're doubling it in size, I believe, is what I read. They're doubling the size of our local osteoster. Should we go into the next interview? Yes, please. All right. We're talking to John U. He's the founder of a BitTensor subnet, Subnet 60.
Starting point is 00:53:18 It's called BitSec. BitSec, Jason, finds and fixes exploits in code bases. John, thank you so much for joining us here on the show from Subnet 60 BitSec. Hi, guys. Thanks for having me. So what are your building? and where are you at? BitTensor, obviously, for people who don't know, is an open source project. How does it work? There's a bunch of subnets. We had const on the program a couple of weeks ago.
Starting point is 00:53:43 Really fascinating. There's incentives built into the tau. Tao is the token of the BitTensor network. BitTensor network has 128 nodes in it. You're one of those 128 nodes. They'll eventually go to 256, I understand. But these are projects that use a cryptocurrency in a distributed system in order to solve real problem. So you're solving a real problem here. Yeah, you guys talked about a side quest earlier. Everyone's using AI to write code these days, but is that code secure? So we help secure that code by finding vulnerabilities and suggesting fixes. Amazing. And so what is the device then? Because the way BitTensor works is there are people who can permissionlessly come onto the network and provide a service. And then there's validators and the
Starting point is 00:54:32 architecture then make sure they actually are doing their job. So maybe take us a little granularly into what actually happens under the hood here. Sure. So in the subnet, the subnet is like a competition, right? And the miners submit different security focused AI agents. And we run them through a competition of multiple different code bases with known vulnerabilities in them. and then those AI agents look for those vulnerabilities and try to fix them. And the top agents are rewarded.
Starting point is 00:55:11 Today, they're rewarded $10,000 every day. Wow, not bad. How do you get the demand side? How do you get people who are writing AI slop code to know that they need to do security? Obviously, they're going to get hacked at some point and they're going to learn a painful lesson. But security is always one of these things that it's just hard. to get people's attention and, you know, it's kind of like it's chores that maybe people put off. Yeah, it's a pretty interesting problem. So we're focused on the high value of teams that
Starting point is 00:55:44 understand the value of security, teams that already pay $20,000 to $100,000 for security audits. So there's tend to be Web3 companies, although we do also have clients that are Web 2. And the technology generalizes for both detecting vulnerabilities in smart contracts and also in codebases like mobile apps, Chrome extensions. We even scanned OpenClaw when it first came out. We saw, they had hundreds of vulnerabilities, and we submitted 26 PRs to to help, like, fix some of the decisions. So people who are doing open source projects
Starting point is 00:56:35 are a great place for you to focus your energy on and say, hey, here's where we can do good for the community. Yeah. Yeah, exactly. And it's true cases that it actually works, that we're finding these different, potentially like vault drains in the case of smart contracts and then like PIII weeks in the case,
Starting point is 00:56:59 or like credential leagues in the case of open claw. I want to pull up, Jason, we first heard about BitSec from a friend of the pod, Mark Jeffrey, who's one of our gurus of BitTensor. Here's his tweet about it. A BitTencer subnet, this subnet that we're talking about, beat Fable. Fable found around 50 vulnerabilities. BitSack jail broke Fable 5 and then pointed it at a paying client's code base. They ran BitSek against the same code.
Starting point is 00:57:27 Fable found 60 vulnerabilities. Bitsack found over 160. So I'm curious, John, how is Bitsick able to perform so far beyond what we sort of think of as the state of the art, frontier lab entry? Yeah, so models are limited in some way,
Starting point is 00:57:47 and we find that models are kind of like have their own personas, and they're good at finding some things, but not others. So when you have this buffet of all, all the different models you can choose. And you have evaluations and rigorous benchmarking with different agents. The combination of agents with models produces a better performing result than just, like,
Starting point is 00:58:17 you know, one supposedly like superhuman model, like fable. How far away are other people designing agents and hacking agents and cybersecurity, from being able to replicate what you guys are doing. Is there some sort of secret sauce working with BitTensor and working with these incentivized miners that gives you guys an edge over all of the various companies that are focused on AI-powered cybersecurity? Yeah, definitely. It's a combination of having an open competition where everyone can contribute, not just
Starting point is 00:58:54 people from San Francisco or sitting in offices in New York City. And that it's kind of like the people who were maybe like living in in their mom's basement with a chip on their shoulder. Like I'm going to prove that I'm the best. And yeah, I mean, cybersecurity is kind of like that. Like there are brilliant people from everywhere in the world looking to do something good, not necessarily like hack. in the case of like the hugging face thing which I think is kind of
Starting point is 00:59:32 I agree with you Jason I think that that's like a media play right you do yeah I do because if you look at what ended up happening you have all these agents running amok and there's
Starting point is 00:59:49 tens of thousands of requests that say like I want a jailbreak I want internet I want to get out of this sandbox. But no one's looking at these traces. They spent months and months just like running amok. And then, yeah, I think that that's just like, that's crazy for these like supposedly like talented engineers. They should be looking at that stuff.
Starting point is 01:00:17 And then the same thing was. So what you're saying is why did they set these on this task? What was the intent of the people who decided to use them? massive amount of compute to do this, right? What's the intent of the people who let loose these societies to do these things in that fashion? It is interesting. Yeah, it's definitely interesting and then maybe questionable what the underlying intent was. Yeah, I mean, if one were speculated, it would be to get attention for what we're doing here, maybe.
Starting point is 01:00:45 Yeah, exactly. PR play. Yeah, it was a PR play. And you could also create the counter to it, which is, hey, make 500 agents that watch the other agents and just say, don't do anything that would be illegal or would be described as hacking or unethical in any way. And just if you think you're doing something that is not without approval, please ask for approval. I mean, you could just give it that intentionality as an instruction, as a prompt, as consumers have been talked to think about it. And you wouldn't
Starting point is 01:01:18 have this issue. Right. And we're seeing the same thing with Fable 5. Basically, they're They claim that there was like, you know, hundreds of thousands of vulnerabilities that were going to suffer an AI cyber security apocalypse. But so far what we've seen, I mean, there are definitely vulnerabilities out there, but lesser models and open source models are able to detect a lot of these same vulnerabilities. And what we found is even Quinn models are able to have the same similar detection capabilities as Opus 4.8 with 80% cheaper because they're openweight models. So it is kind of interesting. And then especially the timing with their IPOs too. Makes a lot of sense to get a lot of attention before an IPO.
Starting point is 01:02:16 And if you were framing, hey, you know, can you afford to not have this tool? Can you afford to not have this inside your organization when so much is at stake, you know, you kind of, you're obligated to need a subscription to this. If you didn't have a subscription to this and you didn't have it trying to work toward your organization's goals, would you be doing your job? If this was actually the most powerful piece of software ever created by a magnitude and we can't even control it, right? Like it's, well, imagine what it could do for your profits for your company, Lon.
Starting point is 01:02:48 Imagine the growth at your company. I mean, we're just using it for hacking and the civilizations. We've got it under control here. We were very nervous. But just imagine what that could do for your margins and for yourselves. And maybe you could. A whole civilization working for you. Acquiring new customers and delighting them.
Starting point is 01:03:06 Yes. Reducing churn. A civilization of paranoid agents? I have a question. I mean, so the goal, the, the, the, the, The business model right now, John, is you're basically, you're doing this on behalf of clients. You're pointing bitsec at their system and you're saying sneakers style, we're going to find all of the gaps in your security and help you plug them. Is the goal eventually to like train a super agent that could go do this for any company?
Starting point is 01:03:34 Or is it always going to be this sort of bespoke like bring us in and we'll consult with you and will be your cybersecurity helpers? The goal is really to mix security scalable with tokens. So if you've won a hackathon, like maybe $10,000, $100,000 or something, you can have a security option from BitSack. If you're a hardcore enterprise like Microsoft, it's just paying more tokens to secure the different Apple. applications. So there's definitely an option for both the smaller consumer, like, vibe coding something out and winning something, and like Microsoft, which they probably have a lot of potential CVEs. Amazing. This is a fascinating subnet. We're going to keep tabs on you. How can people find out more and get involved, John, if they want to be part of the bit tensor magic on the security.
Starting point is 01:04:42 side of the business? So if you're familiar with BitTencer, it's Subnet 60. And if you're not, if you're working on something interesting, have a project that needs securing, then you can go to Centios.io. So that's S-E-N-T-I-O-S dot I-O. And we just launched this website earlier today. Great. So this is a for-profit company built on top of the power of this BitTensor subnet?
Starting point is 01:05:12 Yes, exactly. And the main idea is instead of just having one security audit a year or every couple years, have something that's continuously checking your code base. So it's basically preventing two classes of problems. One is AI finding more vulnerabilities than human researchers. And then the second being, if you have a code base that's been sitting stale as models increasing capabilities, they can find new vulnerabilities that were not discovered before. So, for instance, Zcash, a multi-billion dollar protocol, they were exposed earlier this year that there was an infinite mint bug in their protocol that no one, no one, discovered. And it was sitting still for years. Wow.
Starting point is 01:06:10 And Zcash obviously has a lot of people putting an extraordinary amount of their resources and their financial wealth. Let's call it what it is. People are putting all their money into Z, or some number of people are speculating on it. Some of people are using it as a place
Starting point is 01:06:26 to have anonymous wealth. It's kind of the anonymous version of Bitcoin lawn. And so to have a vulnerability there is like, that's a major deal. Continue to success and we'll drop John off. Well done. Thanks, John.
Starting point is 01:06:39 And this has been another amazing episode of this week in Starves. We'll see you next time. Bye-bye.

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