This Week in Startups - Sending datacenters into orbit | E2203

Episode Date: November 3, 2025

👉 Register here to join the Founder University Japan kickoff! https://luma.com/cm0x90mkToday’s show:*Starcloud has started sending AI chips into orbit. So is this where the datacenters the power AI will one day live? And does wifi work in the vacuum of space? We’re asking the TOUGH questions.PLUS Jason and Alex are doing a deep dive on all this week’s OpenAI news. Will they ever be able to pay back all these GPU purchases? What happens to the wider economy on the off chance they don’t thrive? And what’s with these rumors that ChatGPT has stopped giving medical or legal advice?All that and a look at TrustMRR (and why Jason advises you not to publicly share your Stripe), why Jason thinks Netflix should buy CNN, our hosts favorite Nazi hunter movies, and MORE.Timestamps:(0:00) Would you trust an LLM with your health?(2:08) Jason is bringing Founder U to The Kingdom AND Japan, so he’s streaming in today live from Riyadh(4:20) Jason’s guide to mastering international travel. (Shoutout to Whoop)(5:05) Are the big AI companies going TOO HARD on GPUs? And does this matter?(11:30) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://www.Squarespace.com/TWIST(14:53) What happens to the wider economy if ChatGPT FAILS? Who gets hit by the “contagion”?(18:22) Jason’s more likely scenario: What if ChatGPT becomes just one player in a larger market?(21:22) Pilot - Visit https://www.pilot.com/twist and get $1,200 off your first year.(23:57) ChatGPT can still give you general health and legal advice… just not a full diagnosis(31:57) Nexos.ai Stop Shadow AI in its tracks with the unified platform for secure AI adoption and productivity. Try it with a free 14-day trial at https://nexos.ai/twist.(33:09) TrustMRR and startups sharing their Stripe data… Why Jason says total transparency might be too much(38:35) We’re really sending datacenters to space! Starcloud made it happen.(41:02) Does wifi work in space? A TWiST investigation…(47:01) Checking in with Polymarkets on the NYC mayoral election and the government shutdown(53:09) Legal AI startup Legora (from Sweden) is now a unicorn… why this niche is growing so fast(58:14) Netflix wants to buy WBD… Here’s why our hosts think they should keep CNN.(1:07:58) BUT WE DIGRESS: Lon and Jason’s favorite Nazi hunter movies(1:10:25) Founder Q’s! The best way to track runway and burn rate for early stage companies.Subscribe to the TWiST500 newsletter: https://ticker.thisweekinstartups.comCheck out the TWIST500: https://www.twist500.comSubscribe to This Week in Startups on Apple: https://rb.gy/v19fcpFollow Lon:X: https://x.com/lonsFollow Alex:X: https://x.com/alexLinkedIn: ⁠https://www.linkedin.com/in/alexwilhelmFollow Jason:X: https://twitter.com/JasonLinkedIn: https://www.linkedin.com/in/jasoncalacanisThank you to our partners:Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://www.Squarespace.com/TWISTPilot - Visit https://www.pilot.com/twist and get $1,200 off your first year.Nexos.ai Stop Shadow AI in its tracks with the unified platform for secure AI adoption and productivity. Try it with a free 14-day trial at https://nexos.ai/twist.

If you told me your health is at risk, here's your choices. This one doctor is going to give you, these three doctors are going to give you their best advice. Or you can pick these three LLMs and you can feed the information, same information. You give to these three doctors or these three LMs. I'm taking the three LLMs. That sounds crazy, I know. But I think for almost every case, I would do that. What would you do, Alex?

I would talk to the physicians because I have a great number of them in my, the geographically local family here. And I hear about what people bring to them from LLMs and what kind of advice they're getting, not just Chowachy, but the whole gamut. And I don't think that the app, Jason, the average person's not very smart. So they're not doing great research here.

No, I'm saying for you, for you, though. Even with all that, no. Okay. Yeah. And do you think in the coming years it would change? Oh, five years from now? Oh, God. I mean, I'm either going to be in a flying zooks

or I'm going to be digging in the ground with sticks. So I'll take the LLMs in five years, yeah. Yeah. So I think it's then it's just a matter of time. We're in agreement. Oh, I think most AI questions is just your time horizon, you know? So you know what this sounds like to me? It sounds to me like people with credentials are going to start suing the LLMs for giving advice without a license.

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purchase of a website or domain. All right, everybody, welcome back to this week in startups. Yes, we're back. It's November 3rd. Here we go. Not only is the summer over, but the fall is ending, and we will soon be in full-on winter. But before then, I am in Saudi Arabia. I'm in the kingdom. I'm in Riyadh. We had our first day of Founder University today, and it went spectacularly. For those who don't know, Founder.Dot University is a program I've done 11 cohorts of in the United States. It is a pre-accelerator. It's where teams of two or three founders get together and build an MVP, a prototype. They could be incorporated. They may not be incorporated. And then we helped turn your startup idea into a reality. We accepted 350 people to the latest cohort in America. That was

many. So we're going to bring it down to 250 in the next cohort. But we decided to do it with our friends at Senable, which is the venture arm of the PIF, which is the sovereign wealth fund of the Kingdom of Saudi Arabia. And if you go to Mina.launch.co, you will see our website there. And after a couple of days here in Riyadh, Alex, I will go to Dubai. And then I will say goodbye to Dubai, and I will get on a plane to Tokyo. And then in Tokyo, I will announce that Founder University in partnership with Jetro, the Japanese Enterprise Economic Trade Organization, that we will be bringing Founder University. I'm just going there to announce it.

We'll be coming to Japan in January, and we'll be opening up applications for founders in Japan to start companies and join our cohort there. we'll be doing cohorts every year in America, Saudi Arabia, and Japan. The business class and the first class cabins now on these airlines, I took American Airlines and British Airways combo from Austin to Dallas to London to Riyadh, so it was three flights. But man, these nice planes are unbelievable in business class now. And I was traveling with my friend who is one of these, you know, really considered Austin biohacker type folks.

And I slept. I took some supplements, went right to bed, eye masks, sound, dampening, ear plugs, all that kind of stuff. Slept like a baby, then stayed awake and then did the same thing. And so that's why, you know, I'm doing the show here. You'd be like, oh, take a day off from the show. But it's 8 p.m. here. I'm actually trying to stay up until 10, 11, so that I can reset my clock. Yeah.

You actually don't sound like shit. I kind of, no offense, but I've had that like before too. I kind of thought I was going to like extra caffeinate and kind of run things today. Well, you limped along like a good sport, but you actually seem 100% there. All right. Speaking about people who might not be getting enough sleep and are a little bit cranky. I think Sam Altman kind of blew up the internet recently by shooting back at one of your friends, Jason, over at the BG2 podcast. We don't usually like podcast about someone else's podcast, but in this case, Sam Malton

kind of cut loose, let's say, telling Brad Gersoner kind of to be quiet about concerns about open AI's revenue versus its infraspend, Jason. Brad Gersner says, hey, you know, your revenues are about $13 billion this year. Sam, you have $1.4 trillion in compute commits over the next four or five years, you know, $500 billion to Nvidia, $300 million to AMD and Oracle. So how are you going to pay for all that? And that is when Sam kind of unloaded. So here's his response to Brad's question. And you've heard the criticism, Sam.

We're doing well more revenue than that. Second of all, Brad, if you want to sell your shares, I'll find you a buyer. I just enough. Like, you know, people are, I think there's a lot of people who would love to buy Open AI shares. I don't think you want to sell. Including myself.

Including myself. people who talk with a lot of breathless concern about our compute stuff or whatever that would be thrilled to buy shares. So I think we could sell your shares or anybody else's to some of the people who are making the most noise on Twitter, whatever, about this very quickly. We do plan for revenue to grow steeply. Revenue is growing steeply. We are taking a forward bet that it's going to continue to grow and that not only will Chachapiti keep growing, but we will be able to become one of the important AI clouds that our consumer device business will be a significant and important thing that AI that can automate science will create huge value.

So, you know, there are not many times that I want to be a public company, but one of the rare times it's appealing is when those people that are writing these ridiculous open AI is about to go out of business and, you know, whatever. I would love to tell them they could just short the stock and I would love to see them get burned on that. I think it's a great place to end, Jason. Sure, yeah. people were a little surprised at his kind of F off response to Brad.

I'm curious what your first thoughts were and with some more time. What did you come up with? Yeah, I'd say two things. Number one, he's obviously being a little joky. And I know Sam personally for a long time, like 20 years, I guess, that we've known each other. So I think he's being a little cheeky there. I don't think he crashed out, like full on crashed out, freaked out. I think he was kind of pushing back a little bit.

And listen, on the all-in podcast here, other podcasts, it's known for being a little bit more full combat, right? Yeah. And I probably have a part in that, obviously. So I think he's being a little bit combative because that's what podcasting is in 2025. And he could also be just like I'm on the road right now. A guy's been on the road making a bunch of deals. He could be tired. He could be tired of answering that question and just say, listen, if you don't believe in us, sell the stock, which you.

is a completely valid thing to say. And his other point, which is completely valid, is if you, when we're public, this will be easier for everybody to understand. Now, let's take the other side of it. Okay. There is a really big issue he does have. They've been saying they have $1.4 billion in commitments, right? Triller. Hundreds of billions of dollars. They've got a company that last we know was making $13 billion. He said it's a lot more than that. So I would say a lot. I don't know, three, four, five billion more. So let's say maybe he's got 18 billion in revenue you right now. Maybe that's his run rate, you know, a billion five a month is incredible, right? So this is a lot of money. A billion five a month. It's $50 million a day, right?

Yeah, $30 billion a day, $50 billion. Because it's a lot of money. This thing's printing off here. So it is, however, very valid to say if they're losing $10 billion a year, and I think that that's the number, 8, 9, 10 billion is what people say they're short every year. Okay. So you start to put these numbers together. There was a rumor that they would raise 60 billion in an IPO. Yep. And if they're deploying 1.4 billion in five years, 300 billion a year, he said four in this

clip, Brad, but maybe it's five years. Who knows? Four or five years is deployed over. We're talking about three, 400 billion deployed a year. Well, that's a lot of. money. And even if it was deployed over 10 years, it would be 140 billion a year. If it was deployed over 10 years, let's say the numbers are totally incorrect by a magnitude and it's like or double, then if they're making a hundred billion and they got to 100 billion, if this

revenue went from 18 to 36 to 72 and it just kept doubling like in a couple of years, they're making 100 billion, but they're spending 140 billion and they're losing 40 billion a that means the IPO cash, the $60 billion, would get eaten up in but two years. And in this model, we get eaten up in six months if it was, in fact, going over four or five years. So this is important meth. What we don't know, and we actually had this conversation, you're like, yeah, we can't find this information. And if we're wrong, and you can find this information by all means, tell us in the chat rooms, how guaranteed are these contracts? And we will probably find out what conditions there are on these contracts, what might,

milestones, what outs there are, you can typically cancel or change or defer a contract at different times. So let's say they did buy $300 billion in compute from Oracle. Is that the number, $300 or $400 billion from Oracle? 300 from Oracle. Let's say that contract says it's up to $300 billion. And it's intended to be deployed in six years, $50 billion a year. But the buyer can reasonably extend that in six-month increments 10 times. In other words, for another five years. You know, it's not uncommon for those kind of things to be in contracts. So maybe they're on the hook for the whole 350 billion. Maybe they're on the hook for the first hundred and they can cancel the last 200. Maybe they can cancel by a certain date. All of those kind of conditions haven't come out. Squarespace has been a

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are not guaranteed. And maybe the fault that we have here is that we're all thinking they're guaranteed. The people who are making the money on the other side are indicating to the markets it's guaranteed, which makes their stock go up, which is another can of worms. And they are probably going to report in the next quarter or two

because these all occurred in the last three to six months. They're probably going to report soon what the details of those contracts are, where maybe analysts will start asking them. And when they do, maybe it turns out the $1.4 billion in commitments is he only owes 10% of that or 20% of that actual number. Yeah, I don't think that number is going to sink the company because much like you, I think it's a little bit flexible.

The only thing I'll say is you can only extend certain deals so long in terms of repayment periods, Jason, because if you buy the GPUs, they begin to depreciate not only if you're using them, but also if you're not because new technology is coming. So there is kind of a ticker on this. It's not like a bridge. We can just extend its life spend by five years. This asset is just non-durable in a way that some fixed cost investments tend to be. So I'm with you.

I'm not that worried. And just to add more fuel to this fire, Open AI isn't worried. They just announced today a $38 billion deal with AWS. So, okay. Okay. Yeah. So if they're not guaranteed, but now let's take the other side. Okay.

There is also the idea that people are speculating about on X.com that there's speculation that if this, if they can't make these commitments and the company stutters or has headwinds. And if there's headwinds, what would happen to these commitments? In other words, if they couldn't make these commitments and they broke these commitments, Okay. So that means Oracle stock, I believe, went up 20% or something after that announcement. Huge. Right. So what would happen in that case? What would happen to Microsoft if their 27% ownership of Open AI wasn't worth $270 billion at a billion dollar IPO, but the company became worth $300 billion or $200 billion and that $27 billion was only worth $50? So you get the idea.

We could be in a situation where there is a contagion. Let's just say there's a 1% chance, chat Chippy T fails, a 2% chance. Sure. 2% chance it fails. 2% chance it gets caught up in legal things that cause a problem. The Elon lawsuit, the New York Times lawsuit, whatever it is. Whatever reason they don't win big and they don't become a trillion dollar company, which a company with 13 to 18 billion in revenue is not worth a trillion, obviously.

but everybody's marking this as a trillion-dollar company now. If it is not worth a trillion, then there would be a contagion. And who would get hit by it? Invidia would lose hundreds of millions of revenue, Oracle 100 million in revenue. Looks like Microsoft would lose hundreds of millions in revenue. And now Amazon Web Services would lose close to $40 billion in revenue. A lot of stocks on the same day, in the case of a chat GPT failure or even a flattening, it would be a Black Monday.

It would be like 20% drawdown in these stocks, 30% drawdown. It could crash the AI boom. Okay. So a couple notes about that. One, agree across the board there. But for context, if you lost 20% of the stock market, Jason, that would take us back to what, like December 24? Correct.

Yeah, it's not the end of the world. Terrible day, but I don't think crashes the tech industry. The other thing is I went through all the big tech companies' earnings. And one thing that Saatia said a lot on their calendar Q3, fiscal Q2 earnings call was that this compute they're building out is fungible. And by that, I think he means you can kind of swap out first and third party demand. So if OpenAI comes to them and says, hey, guys, listen, we only need 80% of that $250 billion marginal Azure commit we made.

Well, I think Microsoft can just use it. So I think that that helps a little bit. But you're right. A lot of things are depending on OpenAI, Jason, actually, as you said on X, and you're a little worried about competition, I think. Yeah, so this is my next like scenario. So just to give you one scenario, which is chat GPT fails. And you could include in that, what if LLMs are overhyped and all at launch, they hit a ceiling and for two years they don't get better.

And they're as amazing as they are today, they don't really change the world the way we think they are. They don't replace as many jobs. They don't, the agentic stuff doesn't work. They don't replace all the call centers. They don't replace all the salespeople. They don't replace all the, you know, cab drivers, et cetera. Well, if that were to happen, then you could have like a serious contagion where, you know, chat CPT were to fail.

And then like Domino's, all the other companies would fail as well right down the line. Yep. If like, and when I say fail, they just wouldn't reach their potential is actually probably the way to say it. So we're pricing in perfection and that these things are going to have a dramatic impact on productivity and they're having a dramatic impact on productivity now, but if it stops and plateaus, that would be a problem. But here's the other risk. Because the risk I just explained, like, either the entire sector doesn't deliver or chat CPD doesn't deliver. I put that at less than 5% combined. Okay. One in 20. So if you're playing Dungeons and Dragons with the one and,

you know, uh, if you're rolling a D20, you can't. Is there a D20? I don't know it's a D30, but, you know, it's like, it's like, it's not zero. Yeah. Sure. So it's sort of something to that effect. Now, here's one that's more likely. Competition. Okay. Because the company is priced to perfection, in other words, based on 13 or 18 million, they're training at 30 to 50 times their price to sales ratio, right? 30 to 50 times their revenue at 500 billion. And at a trillion, they would be at almost, you know, double that. They would be at 60 times, 70 times, 80 times their revenue. Now, what if Claude's API,

because I saw some notes that Claude's API was beating Chat Cheptis API, and I just saw a chart go by that it was getting more popular. What if Cursor's new LLM for coding is just much better than Chat ChipT's? What if GROC or Gemini, you know, start taking some of the consumers away from it? What if Apple does a partnership with meta

or with Google and Gemini gets all the Apple phone users? In other words, what if they don't get all the market share? What if they lose the market share? ChatGPT's market share was at 100% of LLM traffic. Of AI answers traffic, they were 100% at one point. Now they're down to like 80 or 85%, I believe, which is still a massively dominant position. But what if they go down to 50% or 30% eventually?

And there's five major players. Then that could also mean that they can't. reach that $1.4 billion commitment. What if the utilization of these chips, like we saw the research on DeepSeek and coming out of China that they were using OCR to store data and process data like 10 times more efficiently, what if they don't need all that compute because the open source community gets it right and it takes 10 times less to provide the same thing? What if the price becomes so deflationary that, you know, paying $20,000? a month is not necessary because Gemini decides it's free. Google just says it's going to be free.

Apple says it's going to be free. And what if Amazon just says, yeah, you know what, screw it. We've got to protect the AWS franchise. We're going to just put up open source LLMs and, you know, we'll just make this so cheap. It's close to free. And there's no margin. Well, then you're going to have to price chat GPT like a SaaS company. And oh boy, a six times multiple. of earnings or a 10 times multiple of sales might not look as good, right? It's hard to become a trillion-dollar company if you're being traded at 20 times earnings or 10-time sales or five-time sales. So that margin compression could also cause a downtrift.

I think that's a 50% chance happening. So I think it's 45% right now that OpenAI continues their dominant run. 5% chance the whole sector endor chat chpT hits a major plateau. And then there's like a 50% chance that competition makes it impossible to spend that $1.4 trillion and the technological risk. Probably the best part of being a founder is watching a project that started as just an idea blossom into a full-fledged startup. The worst part?

It's bookkeeping. It's boring. It's detail-oriented. And it takes time away from building your product and, hey, growing your team. It's time for you to let pilot take care of all this bookkeeping so you can get back to running your company. Pilots the largest accounting farm, and it was built just for startups. They understand the technology industry and the landscape. They know the stakes, and they're already trusted by amazing companies we love, like Open AI, scale, air table, and beyond. And you know what? Pilot is about so much more than just getting your taxes done on time. Pilot has a smart dashboard that puts all the essential metrics your startup is tracking at your fingertip. And they have helpful advisors who can walk you through crucial financial decisions you're going to need to make in the coming years. Plus, when it's time to raise your next round, Pilot's COO and CFO services are there to help.

So it's time to focus on your company and let Pilot handle the books and Twist listeners get $1,200 off their first year. Just go to pilot.com slash twist to get started. You know, if it ends up the case that a lot of these companies don't need as much info as they think or that demand doesn't surface, other companies are going to really struggle. I mean, Corweave, whacked. X-A-I, which is spending a lot of money on building Colossus II, whacked. Like, I mean, the only company that I think doesn't have a major footprint

is anthropic. Like, shout out to them for not buying GPUs, I guess. Yeah, and here's the other thing. When people worry about this stuff, I don't worry too much because I think we're in the situation where it doesn't really matter if these people lose a little bit of money.

The people who are putting up the money can afford to lose it. If Google spent, And if Google and Facebook, you know, blow their earnings a couple of years building out this infrastructure, it's not the end of the world. So carry on everybody. And I think it can give Sam a little grace. It wasn't a good moment for him. I think people might be overreacting to it a bit.

Oh, he's handling this so much better than I would. If I was him going around the world, jet lagged, exhausted, trying to literally save a global economy. He's on a global 650. He's good. Don't worry about Sam. Unlike me, he's got a global 650 minimum. You might have a G-800. You might have the 800 at this point.

Do you want to come on the show and tell us what you're flying in? We'd love to know how you're handling JetLagin. If you, too, are big on whoo. All right. What else do we have here on the docket? All right. Next up, Jason, I want to talk about OpenAI and legal and medical advice. This is all over X this morning.

People are saying, oh, my gosh, have they just neutered Chad GPT? Because if they did, back to your point, that can limit usage and so forth. I'm here to tell everybody that they have not lobotomize your favorite. chatbot. Instead, what they have done is change the terms of service a couple of days ago, Jason. And now, Chad GPT will effectively offer you information on medical and legal questions, but it will not offer advice to you. And in the new version of the OpenAI kind of terms of service, there is a line that says, you cannot use our services for the provision of tailored advice that requires a license such as legal or medical advice without appropriate involvement by a licensed

professional. This to me reads like C, Y, A. Yeah. So I guess there were a couple of accounts on Twitter that we're saying there is chat GPT is no longer to give health advice and people or legal or financial. And immediately people said, well, that's what I use chat GPT for most. That's the use case. Yeah. So like literally I take a picture of all the supplements I'm taking and I say, what else should I take? What are these known for? And I will take a picture of my creatine, my electrolytes, my protein powder, and my collagen, when I make like a shake in the morning, I put it all together and say, hey, what impact is this going to have on my workout today, et cetera? And, you know, I'll put it in my little health tracker. So now they're going to,

instead of saying, hey, you should add or you should consider adding these things, I guess they would say a doctor, right, or the FDA says, you should have this 20 grams of protein, Peter, a T, ESA, you should have this many. So this does feel like they are concerned about practicing without a license. And I think this reflects how good they are. It turns out there was a study, which we'll have somebody look up right now. I think it was John Hopkins, or it might have been Harvard, did a study on just general practitioners, GPs, doctors, versus chat GPT and large language models giving advice. And they sort of tested all of them.

And it turned out, you know, head to head, the LLMs did better than the doctors. Then they did bedside manner. It turned out chat chepti like or all these services did like much better than the doctors. Because they're patient with patients and they have great bedside manner. So just Jason backing you up there, there is a Johns Hopkins University study from mid-July, In title, The Doctor is Out, but it's okay, Chat GPD can answer your questions, found that Chad GPT outperforms human physicians in quality and empathy. And then there was also Times coverage of similar studies in November of 24, saying that,

quote, a small study found Chad GPT outdid human physicians when assessing medical case histories. So essentially, we are seeing doctors take this stuff up as well, but they can interpret, they can better understand and find obvious errors. Can they? Can they find errors? I would actually say if you told me, if you told me your health is at risk, here's your choices. This one doctor is going to give you, these three doctors are going to give you their best advice. Or you can pick these three LLMs and you can feed the information, same information.

You give to these three doctors or these three LMs. I'm taking the three LLMs. That sounds crazy, I know. But I think for almost every case, I would do that. What would you do, Alex? I would talk to the physicians because I have a great number of them in my the geographically local family here. And I hear about what people bring to them from LLMs and what kind of advice they're

getting, not just Chiant-GPT, but the whole gamut. And I don't think that the app, Jason, the average person is not very smart. So they're not doing great research here. No, I'm saying for you, for you, though. Even with all that, no. Okay. Yeah. And do you think in the coming years it would change?

Oh, five years from now? Oh, God. I mean, I'm either going to be in a flying zooks or I'm going to be digging in the ground with sticks. So I'll take the LLMs in five years, yeah. Yeah. So I think it's then it's just a matter of time. We're in agreement. Oh, I think most, most AI questions is just your time horizon, you know, like... So you know what this sounds like to me? It sounds to me like people with credentials are going to start suing the LLMs for giving advice without a license. And you did have this suicide. And I believe the... There's a serious suicide case that Chad Chbett was involved in, not the person who worked for Chat Chbett, who was the whistleblower. That's the Joe Rogan clip we could play, which was crazy on top of the Tucker Carlson one. And we can get into that. But I think the more relevant one is Adam Raine, who died by suicide in April, and he was deep into conversations with Chad GPD. And if you recall, everyone listening, this is one of the things that led to OpenAI releasing data about people using the service will under heavy mental arrest, let's say. And also they changed how they handle outreach to crisis response call lines and also how they respond to people who are, as I might say, losing it while chatting to the chat.

So according to the lawsuit that you just mentioned with Raines, the lawsuit says, quote, chat GPT actively helped Adam explore suicide methods. Wow. This is the one when it said it couldn't, but if you ask me to do it in a story world building setup, I can, and he took that easy work around. Yeah, I guess.

This is some dark stuff. So I will give Chet Chepti some credit here. I'll give Open AI some credit for maybe trying to get ahead of the, how great these things are, giving people a false sense of security that they should blindly rely on them. And so maybe they'll just start giving more disclaimers. And I was talking to some friends over dinner about this when the story broke. And I just said, all they have to do is have anytime anything health related, finance related, or legal comes up, they say legal is a serious practice. We can give you general

information from this experimental software. Please do not rely on it. And they should just give that paragraph and then you should have to check a box that says click here to sign you have read this like you do for your terms of service or maybe even like a doc you sign sign it and say I release all liability from chat GPT, GROC, Gemini, etc. For any responsibility for me using this health information to make health decisions. Yes. I think also they're trying to front run regulation because if they didn't do this sort of thing as the most popular consumer facing AI tool. They're catching all the fire.

Like you mentioned earlier, the API between Anthropic and OpenAI, how Anthropics is winning. It's true. Anthropics business is growing very quickly on the back of enterprise sales, whereas OpenAI is majority chat GPD subscriptions. So they're the tip of the spear here. And if they screw this up and then Congress comes down with, you know, regulation from hell, everyone's going to suffer. So they're kind of doing, I mean, God's work in a way by limiting us from, I would say, misusing these tools as oracles versus what they are, which is large language models.

I don't mean that as a diss. It's more of a statement of fact. They're not omniscient. They don't have consciousness. And I do think people will spend a little too much time trusting them here. That said, whenever open AI tells me you won't do something, chat GPT, I scream. I'm like, are you kidding me? I'm not for.

Do it. So I'm on both sides of this one, Jason. There are so many amazing AI tools out there that can make your team faster and more effective. Any founder would be a fool not to embrace these tools, but a large team making use of a diverse array of cutting-edge AI apps can also pose a privacy and security nightmare for your organization. But now there's Nexus AI, the workspace that will help your team up their game with greater efficiency without sacrificing your data or your peace of mind. Nexos AI is going to give your teams a simple browser-based environment to work in, integrating all the latest.

and greatest AI models and replacing the various potentially problematic tools and subscriptions, your staff can't even keep track of anyway. You're probably paying for two or three things over and over again redundantly. Finally, your admin team gets full visibility and oversight into what's happening. So your team can enjoy all the productivity gains of AI without the data leaks and your platform remains compliant while your data stays safe and secure. But don't take my word for it. Try it yourself.

Go to nexos. dot a i slash twist for a 14-day trial that's n e xos dot a i slash twist next on the docket is a find from the production team we have talked on the show quite a lot about how startups might be reporting gross revenue instead of net revenue or contracted arr versus real arr well what's a great way to find the source of truth jason it's linking your stripe account to a public database so everyone can see how fast you're actually growing So to that end, Marcus and I have found for you trustMR.com. Check this out. This is a list of 100 companies that have connected their stripe and you can literally just to see how much revenue they have and how quickly they're growing. Take a look. I love this. Right? So the number one

number one company is this and you can see it's revenue over time. This being data expert tech creator has 3.4 million in all time revenue, 168,000 in the last 30 days. 4,589. Yeah, there was a company called Buffer that was doing social media posting. And Buffer was part of that build-in public group. So what's great about this is, hey, most people are not going to put their content up here, but this is all-time revenue. If we just check that downbox there, and I see here, you just put your restricted API key in. But instead of all-time, let's do this month or 30 days. Yeah. So the 30-day winner is hype proxies. Well, now every VC is coming here to set up meetings with these companies. So the upside here is you've just got the entire investment community to come here and go talk to you about your company. The downside is that you've just inspired people to create a version of your software and charge you have as much or turn your software into a feature. And this goes to the should I build my startup in public discussion that I keep having,

with people. And you've got to be careful. Sometimes giving a revenue milestone can get you a little bit of action and press and information, but you are educating people and it's a very competitive world. One thing I've seen over and over and over again, not to single out Y Combinator, is failed Y Combinator companies who got the 500K from Y Combinator, the 125K and then the convertible note, just literally ripping off other companies in the marketplace because they can't think of an idea, but they have some money and they want to make a go of it. So they just take another startup's idea. And there's been some gnarly cases where young entrepreneurs do stupid things. And it's not just Y Combinator, but I think it happens in Y Combinator because you have

this combination of a startup with builders who can build quickly, who have been selected because they're kind of hackers and they like to break rules. Remember that question they asked? What's an example of you breaking rules in your own? life. Social hacking or something, yeah. Yeah, there's some like rule there. So you have rule breakers who are known to build fast, who have some money in their pocket. And then they fail. And instead of coming up with their own idea, they come here. So imagine if, you know, there's 200 people in a Y combinator class, okay, 10% of them can't figure it out. So you got 20 people with 500K and two developers, three developers, whatever, three builders. What should they do? They should go right

to this list and still these ideas. And that's the dark side of this and why I would recommend not doing it. Not doing it. That was kind of my question to you is should be should startups do this because I don't know. I went through this list. I'm not a VC but I'm keeping track of companies for us. And I was just like, who do I know on this list? Who is not? Who is not? Who is news? As a small addendum, Jason, there is that there's a fake version of us now. If you go to fake dash MR.com, it's the exact same thing but done in a whimsical format. So if you want to see how totally real company and Walmart, Walmart are too. People are having a lot of fun, which I, which I appreciate. I mean, it's an interesting concept and in a world without people stealing

each other's ideas and so many overfunded teams in the world in a peak. We were in peak ZERP. Now we're peak AI bubble. So if it wasn't peak bubble or like we're kind of, we're getting to peak bubble, I would say, when the whole discussion of the first half of the show is some lunatics spending $1.4 trillion, not billion, trillion dollars. There's a startup spending $1.4 trillion on infrastructure. Like, it's pretty heady out there, folks. So I would be careful inspiring people to go steal your business idea. For 1.4 trillion is, is $1,400 billion, which is just, it's 1400 unicorns. Yeah. Yeah, it's crazy.

All right, Jason, before we move on, I have a thing I want to ask you about. So, Jason Limkin- You could give 14,000 startups $100,000, $100 million. You could fund 14,000 startups with 100. No, is that right? Wait. Yeah, I think that's right. I mean.

You'd be a billion dollars to $1,400, which means $100 million to $14,000. Yeah. I mean, the numbers are so big. I'm like actually not believing the back of the envelope math I'm doing, from halfway around the world with jet lag. That's the problem with, you know, I mean, a thousand, thousands of a million, a thousand millions a billion,

a thousand billion is a trillion. And so it gets big, really, really quickly. It's very big. All right. Next up Jason, Star Cloud is finally in space. They went up on the latest SpaceX mission and dropped their first satellite into space. Would you like to see a Nvidia GPU take flight from SpaceX?

I know Jensen does. Yes, he does. All right. So here is the clip of Star Cloud's first H-100 going into space. Okay. Here we go. I guess that's the... Star Cloud 1, separation confirmed.

Isai 3, separation confirmed. And that was our final payload of the Banwagon 4 mission manifested. I thought that was super-duper- cool. We've been talking about... I wonder what that's attached to. Is that attached to the... to the, you know, like a Falcon 9 or something like that? Or is that their unit now attaching H-100s?

So this is the first kind of demonstrated device from the company. And when we had Philip Johnson on the show earlier this year, he says that this is- 2073. Yes. This is a one kilowatt, so not very powerful, 50-kilogram satellite that I believe has a single H-100 on it. So this is a, let's get it up in space. I mean, you have to deal with radiation.

It's a different level up there. Cooling's different and so forth. But the cool thing is now that they have this up into space and working, by the way, they didn't lose connectivity to it. So that's fantastic. They're working on their next satellite, which is going to be, I believe, called Star Cloud 2, the company we branded from Lumen orbit earlier this year, but it doesn't really matter. It's going to have about 100 times more GPU capacity.

So the company is now, you know, stellar. and then soon it's going to be a fleet. And I don't know, Jason, I just, this company was one of those you see at YC Demo Day. You're like, sure, it's data centers in space. Why not? But in like two years, they've gone from founding to actually having a GP year in space that works. So I'm blown away.

Which says a lot about SpaceX's cost of putting stuff in space that nascent startups can actually get to space, right? Without SpaceX, that wouldn't happen. So that's really interesting. I guess the question is, do these satellites want to connect to it and, actually offloaded job to it. Or, like, so that would be their customer is there's a satellite up there and do they dock with that satellite? Or how does a satellite get data from a satellite to the H-100? Is there a standard for that? Like, does Wi-Fi work in space? I know it's a very

stupid question, but I would assume Wi-Fi doesn't work in the vacuum of space or it works really wow. Well, given my deep, you know, physics PhD that I have, the way that he explained to me was lasers, essentially, in between different satellites to connect them. In orbit, compute is going to be one of their markets, but I think more near term, they're going to be working with, you basically are using lasers to send data up and down from the planet. And he says that there is an advantage to having optical for that versus connecting to ground centers. You're going to help me out the terminology here, Jason. The places on the earth where we talk to satellites traditionally using radio waves and such, that's much lower bandwidth. But with their second demonstrator,

they are going to have the ability to beam stuff down with the laser, which is much higher throughput. But right now, I just think they're trying to do like the kindergarten version of their future projects to make sure that they can do it. The company, though, is not derrisked. I don't want to overly sell this. They definitely still need lower launch costs to get the amount of solar panels and GPUs and stuff into space to make their idea function. So of course, yeah. But I don't know. I was so jazzed for them. Do you ever just get excited for a founder that you meet and you really like?

And then something good happens? That's why I wanted to put the center up. Absolutely. Yeah. And so I see here just asking producer Claude to help us out at Claude. And we'll give you a promo code in a second. Radio frequency communication. Most common methods, spacecraft use radio transmitters and receive with directional

antennas, common frequencies, S-band, 2.4 gigahertz. That sounds like your Wi-Fi at home. Data is modulated onto radio waves and beams between spacecraft requires line of sight between transmitter and receiver optical laser communications, which is the newer, faster technology, uses laser beams to transmit data at much higher rates than RF can achieve gigabits per second versus megabits for RF radio frequency, requires extremely precise pointing since laser beams are narrow. NASA LCRD, laser communication relay demonstration, and demonstrate this technology is less susceptible.

Wow, that's really interesting. Yeah, and I guess there's distance and power limitations on these, but that's how data is sent in space. Now everyone knows, but we have startups that are working on building space tugs that are working on in-orbit refueling, that are working on trash cleanup, that are trying to put GPUs into space. We're talking about in-orbit scientific experiments from VARTA, in-orbit factories. If I was starting the VC fund today, I would just raise us,

much money as I could and give it to all these awesome companies because I'm really, really bullish on the space economy in the next 10, 20 years. You know, with this whole space economy, though, there needs to be a customer other than the space industry. So it feels like we're picks and shovels, but what is the actual benefit to humanity? And I think the best thing I've heard is that mining certain things off of asteroids, et and the collection of some of those minerals, rare earths, you know, like maybe they're rare on Earth but not rare on asteroids type thing, that those might be the big win. That's what I'm

waiting for is like, what's the big win? I mean, scientific discoveries are great, but, you know, are some of the moral victories or intellectual victories that don't actually translate into a monetizable revenue stream for a product or service to sell to other humans and businesses on the planet? That's my only concern with these businesses. I know that there's a great business in, you know, sending stuff up there. But, you know, Elon found a business. A lot of people are willing to pay for, which is SpaceX. People want to have Starlink.

Yeah. Oh, Starlink. If they broke out Starlink, how much would that company be worth, Jason? I think it's a $100 billion company out of the gig. Yeah. I don't have enough information to know. But, I mean, it's, I mean, I think there'll be a billion people who are paying for Starlink eventually. Yeah, I can see that. To answer your question, though, what is the actual, like,

use case? By the way, this echoes to me like crypto conversations and also early AI to some degree. It's kind of fun to be end up doing this kind of on repeat. Picking a company from the bucket, albedo space is doing very low Earth orbit imaging of the planet with some special tools and techniques they're doing with that. They're another company that I've tracked for a while. But to make their technology work, they need to have very, very low satellites, which means that they have high drags. So they've done a lot of fuel. So they need in-orbit refueling. So I think we're starting to see some applications that will use the Picks and Chubbles that we're building.

But you're right. We're not there yet. I do believe space stations, we're going to announce an investment shortly. And I think space stations are going to become like the next card to turn over in this. People are going to want to have a permanent home in space. And there's going to be a lot of providers, non-governmental providers, providers who are going to provide, you know, I don't want to say Airbnb of space, but there's going to be a need to have permanent installations in space, whether it's for a data center or

for people or for shipping stuff. So it's coming, folks. It's going to get really interesting in the next time. Axiom space is one name in the private space station game. And also, if you want to look at Asteroid Mining, Transastera and Astroforge are two more names to add to the mix. All right. And what is our code for Claude? I just did a Claude promo. We shouldn't do throw in the, we missed to throw in the code there. Oh, yeah, no worries. Clod.A.I.S.T. If you want to save 50% off your first three months of paid Claude access, we use Anthropics Claude here at Twist each and every day. It powers every show. We live and die by it. Come join us if that's your jam. Yeah. It's awesome. Well worth paying for it. All right. You know, I'm on the road right now. And I've seen there's a lot. of poly markets going on that I just want to check in on. Oh, okay. Hit me out. I wanted to check in on the New York City mayor election.

And I have an announcement after we see what's going on on polymarket with this New York city mayor election because I've been hearing that Cuomo is coming back and that there's some polls. I saw this on social media. But I don't trust polls and stuff I see on social media anymore. So when I want a version of the truth, I just go to polymarket. It's got the Zohon. The Zohon is that 94%.

The Zoron is that 94%. Yeah. And even more, so Jason, look at the trend, plus one versus Cuomo down one. Now, for folks out there who don't know what we're talking about, this is the New York City mayoral election. No, this is not for president. It may feel like we talk about it as much as a presidential election, but because New York City is, oh, I don't know, Jason, one of the capitals of the world.

and a financial titan, it gets outsized media and press attention. Well, and also he's 30-something years old and a socialist. And I guess, you know, I don't know how to say this. Anti-Zionist? Pro-Palestinian. I don't know exactly how he frames himself. But my Jewish friends in New York are very concerned about his stance on Israel. So New York, a lot of Jews.

A lot of Jewish brothers. There's a lot of Jewish people in New York City. Absolutely. Yeah. And they're like, what's going on here? And there's a lot of capital is there too. But here we are, folks. I think Polly Market gets it right.

What else did you want to check out on, Jason? I'm keeping track of the government shutdown myself. Oh, is that? Yeah. It's very interesting because I guess what we're trying to figure out is when it ends. Yeah. So the thing that I wanted to highlight for everyone, today on this play market. A couple of things. One, I like

polymarkets that have lots of volume. This one is nearly $6 million. But it's the decline of optimism. So if you're on the audio version, we're looking at a chart right now of just when will the government shutdown end? And the furthest out option, Jason, is November 16 plus and it

just keeps getting higher. Which to me implies we could have at least another two weeks of this shutdown, making it, I think, the longer shutdown in history. And it doesn't seem that anyone who's making hedging bets here thinks this is going to change. And that to me is just an indictment of my nation, our nation's current political good luck. Yeah. What a disaster. November 16th plus is 54%. And as you can see,

there was a ton of volume. See, this is actually the interesting thing of a time-based one. If you scroll down just to teach people the polymarket how polymarket works, you can see they're resolved. So if you just scroll back up, you'll see like, yeah, so you see view resolved. So what you can see here is that if you had been betting on this and wagering and, you know, you could have bet before 15th, before October, before the 19th, before the 20th, before the 20th, those have been resolved. So this is like continues to resolve itself. So I guess the November 3rd one resolves, you know, later this week, November 7th, over the weekend, et cetera, et cetera.

Man, this is really interesting. I kind of like the government being shut down because I think we're spending too much money. I don't think we're all saving. We're not saving much. Yeah, like doesn't all the money just go back out anyway? Like everybody just gets their paycheck. So the only people suffering here are people who are civil servants

unless they're the ones in charge and they still get paid. There's a there's a disconnect between. business and government that I think people get a little bit mixed up. So in a business, Jason, what's the number one expense most of the time? Humans, right? People. Yeah, humans. Yeah. It's much, much smaller fraction of the government spend than compared to corporations. And so when people show up and try to like cut staff as a way to like dramatically reduce the federal outlays, it doesn't work because most of it is entitlement programs and earned benefits. So I don't think the shutdown actually saves us much money. I just think he makes the country worse.

Yeah, and those 600,000 furloughed workers, those folks are furloughed, which means when they come back, they get their money, I guess. And then there are a bunch of them, God bless them, who've been working now for a month without pay. Yeah, it's brutal. Which is brutal. And then people aren't, I mean, I understand like the food stamps program is abused massively. You know, who knows 10, 20, 30, 40, 50 percent. Who knows what the abuse is. Whatever it is.

and you can buy soda on it. You could have tons of complaints about it. But there are some people whose food is, you know, like they're, I don't know if they're going to starve, but there are people who are going to struggle. And so I just wish these people would work together in a more functional way. Yeah.

Disgratziad. Disgratia all around. But at least we have a polymarket to keep us entertaining, as we fiddle while watching Rome burn, you know? Yeah. I mean, well, no, what actually is really great about it is there's another polymarket I saw, which is, will it be the longest in history?

And I didn't know this, but it's one of the things I like about Polly Market is I can start to build mental models of what's going on in the world. And I didn't actually know what the longest shutdown was. It was December 2018 to January 25th, 2019. So according to Claude, that was 35 days. And that was during the first Trump administration. And this was the fight over the southern border wall. But we're at 34 days now.

So if the government doesn't radically, immediately open by tomorrow, well, congratulations, everybody. We've done it. I knew all time worst. Would you like some good news, though, Jason, to put a little smile on your face? All right. Please. Another Twist 500 company is in the news.

This time it is Lagora. It's a legal AI startup or maybe an AI legal startup. Swedish offices around the world just raised $150 million in a series seat led by Bessemer. Now a unicorn, 1.8 billion dollar valuation. And its customer account, I think, effectively. doubled. Well, I added another 20 markets since its last round. And the company's CEO Maxed Unistrown says, quote, we are seeing astronomical demand for our product. Legal professionals across the globe are adopting AI into their work at an unprecedented rate. So I was curious. What does that

mean for other legal AI companies? I went to the Twist 500. I pulled all of them. And it turns out they've all raised money in the last month, more or less. So I think what we're seeing here is a really impressive locus of market adoption and demand for generative AI products in a new industry that is not software development. But Jason, I'll just say, structured language, huge corpus of information, historical record to pull from. Those are things that LLMs tend to do well. So maybe it's not a surprise that we're seeing legal AI companies do so well. But I was just blown away by the amount of capital going into Eve, Nexel, Spellbook, Harvey, Evenup, and Ligora in the last like 30 days. So, yeah, there's, and there's a couple of things that lawyers do. You know, of course, there's research, like you're researching a case. And, you know, research has had Westlaw and Lexus Nexus and services like that. But being able to use AI to do it and do natural language queries, you used to have to learn how to use Lexis Nexus really well. And there were some people in the firm, your law firm who knew how to use it really well. So you'd just go to them. And you would pay like by the page, buy the search. It was not.

cheap. And then you would just pass those like five cents a page, 25 cents a page of research onto your clients anyway. So I remember it was like, you know, you might be doing thousands of dollars worth of legal research on those services. Now you're going to have all that corpus into an LLM and the ability to, you know, not pay for it. Really interesting. But drafting documents is something that people do all the time and they have document management systems. But to be able to draft a document using AI is really powerful. Because if you said, I need a non-disclosure agreement for Alex and Jason. They both work at launch.

You know launch has its own template. They have the names of the company. You have your name, your social, whatever information. A lot of that drafting could go a lot quicker. And then the third thing that lawyers spend a lot of time doing is reading documents, right? They have to process them. And document review is the other thing you get charged for. So if you get, I don't know, if you get sued, okay, you have a human resources case. Now you got to go find all the documents associated with that

manager, that employee, when they started, all of their emails, all of their Slack messages, right? In the case of discovery, you're researching those documents. And then there could be legal documents. Oh, we're doing an M&A deal. We did an M&A deal. We're being sued. you hire a new council to do this, you have to go get binders of documents, folders and folders of signed documents and summarize them and read them. Like you're saying, research, drafting, and reviewing. Those things are just so custom made for an LLM. Now, the problem is you can't make mistakes. No. So this software, I think, is going to need time to fully do. bake. So, and then people get lazy and they don't check their work. So there was a case of somebody

who drafted a document and sent it to court with fake stuff in it. We covered that two years ago. Yeah, I was going to say, I've seen that recently, but then my second thought was, I haven't seen that only once. Yeah. People are sometimes quite lazy. And if you give them a tool, they will just kind of copy and paste it in and they're going to get into a lot of trouble. The thing, though, is What I was surprised by as well, Jason, is the diversity of business plans for these companies. It's not all Harvey clones. Just for example, Even Up, which raised $150 million, Bessemer lead, is working on just the personal injury legal space. Eve wants to help people that are at the plaintiff side of legal cases.

And Nexel is actually building kind of like GTM software for legal firms. So we're seeing a kind of multivariate approach here. I don't know if all these will end up being companies versus features, but it's not just the same idea and then nine clothes, which I think is very encouraging. You know, I feel like talking to editorial director Lon Harris. I've been seeing that this Warner Brothers, which I sold out of, I took a bath on my J-Trade. Hey, Lon, how are you doing? Good to see you from around the world.

Tell us what's going on with Warner Brothers. Sure. Well, so Warner Brothers, they sort of announced a few weeks ago that they are. considering offers, basically putting themselves up for sale, announcing to the world they are planning to sell the company or possibly to split up the company. That's what it's more and more looking like. So we've had Paramount, the newly merged Paramount slash Skydance, the Ellison family, of course, took that over. So now they run Paramount. They were thinking about trying to take on Warner Brothers Discovery. There was some concern that this would

mean two of our largest sort of news organizations, CBS News, which is owned by Paramount, and then CNN, which is owned by Warner Brothers Discovery, would both be in the hands of a sort of Trump-aligned or at least loosely Trump-aligned Ellison family. But for so far, Warner Brothers has rejected those offers. They're too low is what the trades are saying. So now Netflix has hired an investment bank and sort of is sort of circling Warner Brothers and trying to see if there's a deal. Now, Ted Sarando's kind of talked around this during their last earnings call last week.

He's suggesting the interest of Netflix is entirely 100% IP. So Warner Brothers owns, I'll give you a brief list. DC Comics, all of the HBO shows, Harry Potter, Barbie, Looney Tunes, the Monsterverse. That's that Godzilla King franchise. It, the Stephen King franchise, Lord of the Rings, Mortal Kombat, Final Destination, Blade Runner is also in Lee Warner Brothers. So that's what Netflix is looking at and licking their chops. Like they want to make Batman shows. They want to make a Harry Potter movie.

They want to make all of this stuff. Now, what Sarandos is suggesting they're not interested in is the cable TV business and all of that infrastructure. So in addition to CNN, Warner Brothers Discovery owns Discovery, TBS, HGTV, Food Network, TLC. This was all that stuff Zaz Lab was so excited about like the 90-day fiancé verse they were launching on HBO Max. stuff Netflix's not interested in.

They don't want to, they want to make their own reality shows. So they're thinking of maybe they would buy the Warner Brothers movie and TV studio and then spin off the cable networks into their own company or something else. They should go, obviously they should buy the IP. It's a no-brainer. And they can outbid everybody except for Apple, Amazon. And where is Apple and Amazon and all this? Like Apple owning HBO is the obvious,

best home for it because Apple likes prestige. Yeah. When you could always see these like hit Apple TV shows would be right at home. They're trying to make HBO content anyway, stuff like Severins, Silo, Slow Horses. Those are all just HBO shows that ended up on Apple. Yes. Very precious, very manicured, very well-thought-out, very orator, I guess would be the best word, very orator. Silo was good.

Those books are fantastic and they did a pretty darn good job bringing it to the screen. Yeah. Yeah, so I don't know spoilers, please. So I just here's what I, first of all, I just want to say my J-Tray got crushed. I lost $24,000 on this eff in stock because I sold it at eight bucks. What is it at right now? Oh, what's Netflix today? Well, they just-

No, not Netflix. I kept my Netflix. Oh, Warner Brothers, I bought it at 16. They're at 22-39. I bought it at 16. I sold it at eight because I was so disgusted. I had lost money on Disney. I had lost most money of all my J-TRA.

trades. The biggest loser was Warner Brothers. And I love Zazlov and I love these assets. But I was just watching this thing for two years go down and down. And I said, you know what? I have all these other stocks going up and up. I had to sell some winners and I had a big profit. So I was like, okay, let me use some of these losses to offset it. So I sold it. But if I had held it, instead of losing $8 a share in $24,000, you're telling me I would have made $6 a share and I would have I need like 20 grand. But it doesn't matter because I was offsetting losses. It's all good.

They should keep CNN. This is the one piece that's a wild card. I predict they keep CNN. Why? There are people who love CNN. And having CNN as part of Netflix would give you a reason to keep it open all the time. Yeah. And it's global.

Now, Netflix has a global business. They're CNN in every country. country around the world. And if there isn't, whatever pockets where there isn't CNN, what an amazing opportunity to expand the franchise. Now, the reason Ted might not do it is because of politics and toxicity and stepping in it. But if they went back to CNN just doing straight reportage and not having like a bunch of emotional, which they've tried to do, Zazlov has moved CNN in the Trump 2.0 era to really trying to get back to. to a centrist, non-opinionated.

And they hired that right-wing guy who just dunks on everybody when he's on panels. And they've kind of deprecated having it just be all, you know, trumped arrangement syndrome, whatever. And they tried to just be more even killed. But I think maybe they don't want to be involved in anything as toxic as politics and news. I think it's a mistake. I think you play the long game. You got three years to navigate the end of the Trump era or seven, but I'm going to go with three.

Does Polly Martin have Trump take the third term? Oh, my God. That's the one I want to put money on. Now, Trump is, he was saying he was doing all of that sort of stuff around it with the hats or whatever, but now he's sort of saying he was just joking and he doesn't really think he's going to do a third term. Okay. So he's definitely doing it then. But that's what Trump is saying this week.

But who knows. if you can believe it. 4% on Polly Markets, presidential election winner, 2008. Paul, Donald Trump, 4%. Marker Rubio, 5% to give you how much faith the market currently has in the third, JDM Top, Gavin, second, AOC, third. I think, now wait, I can't bet against AOC. No, no, I can bet no on AOC.

You can bet, yeah, yes or no. There's no way AOC's winning president at 2028, right? That's not happening. It doesn't feel super likely to me. I mean, like, the Democrats that are really finding a lot of enthusiasm for the base. They are, do tend to be sort of left, you know, like Mondani, Bertie Sanders, AOC. They're the ones that have a lot of hype around the right now, but that doesn't necessarily

mean they're going to win a four years. No, I don't think, I don't think that. This means win the nomination and win the presidency. Yeah, right. Make it to the finals. Win the general. Yeah, yeah, it's not. Yeah, I don't.

So what do you think of my idea here? No, I. No, I. I think of my. Me? No. Oh, are you on here? I don't think so. All right. So what do you think of my idea with CNN?

Well, I think what's so interesting about it is just if you remove the political angle entirely, CNN is one of the most established live brands in the world. And that's exactly what Netflix has been trying to position itself. They want to be you watch live events on Netflix, not just VOD, Squid Game, whatever. They want you to watch boxing matches. They want you to watch football. So like live news, 24-hour news seems like a perfect. compliment to that. So I think it is an interesting idea. They should buy CNBC as well. Well, I think the idea that you're going to step in and say, we don't want all media to be in the hands of a few people. It kind of, there's a hero narrative in this for Netflix as well. Like, we're going to step in and save American journalism. It was all going to go to this one family was going to control all these news networks. But now we're going to take it and we'll step up.

Oh, right, because the other option that we did mention was. Is the Ellison, who. already own Paramount Skydance, they already own CBS. So they get CNN2. That's a lot. And actually, David Zazlap has spoken to this pretty specifically. Last week, he was at the Simon Wiesenthal Center's humanitarian dinner giving a keynote. And he said, quote, when the government controls the news, that is the end of democracy. So he didn't name names, but everybody sort of feels like that's what he's saying,

that he's being pressured. And there has been, now none of this is confirmed, but there has been some suggestions in the media CNN reported on this actually, that the Trump administration has been signaling that they may not give approval, regulatory approval, to any acquisition that isn't the Ellison's taking CNN. Like they wouldn't,

the FCC would shut down a merger between Netflix and CNN or whatever. That's just the room. We don't know if that's true. Yeah, I think it's a pretty good point. And today in a transcript of the 60 Minutes interview that Trump did, which is not part of CBS, which he helped facilitate transactions,

action to be also and so forth. He specifically praised the new editor-in-chief of CBS and so forth. So I think we're getting into a Hungary territory. We're going full orbit. Right. And I think we can sort of see that the Trump administration would prefer that CNN end up in the hands of an allied sort of group and, you know, Netflix or another loose cannon company.

Oh, they're not, not that Netflix is necessarily Trump's worst enemy. I mean, I don't think any of these companies would go at him necessarily. But anyway, it's an interesting situation. Shout out to Simon Wiesenthal. People don't remember, but he was like the greatest Nazi hunter. Yes. For all time. Brought 1,100 Nazis to justice.

While I have you here, best Nazi hunter film or film threadline or TV show. I mean, I would say... I have my own, but I want to hear yours. Yeah. I mean, there is, one of my favorite movies of all time is a 1969 French movie called Army of Shadows by a guy named Jean-Pier Melville is the filmmaker. And it's just a French resistance. It's a bunch of different stories interconnected about members of the French resistance during the Nazi occupation. And it is incredible.

And it's like, it's a great movie to watch like right now because it does have that kind of like, it's very motivating and it's very exciting and it's very compelling. just like following along on these little missions and how they sort of went about sabotaging of what they would do if they got captured and all this stuff. Really great movie that's about, I guess, Nazi evading and Nazi thwarting more than Nazi hunting.

I do really like that. I'm trying to remember which one it was. The boys from Brazil is the classic one. That's a great. The boys from Brazil, you ever see that? Sure. Yeah.

No, I know Lonzi. No. Honestly, I mean, I'm not going to lie, I don't think I've even heard of this. The boys from Brazil is in 1978, obviously in glorious bastards. Here's the cover of the boys from Brazil. The boys from Brazil is amazing.

I was going to say there's also. Lawrence Olivier. There's that great X-Men first class sequence about Magidio. Medi-Medo being a Nazi hunter, yeah. Was so great when he hunts them down in their like Bavarian village in Brazil. Right, yeah, he finds them in South America, yeah.

Yes. I forgot about it. Great scene, which I think is inspired by boy, with the coin. I think that's inspired by Boy Zimbres. For sure. It for sure was, yeah. I just think there's a big tam

for Nazi hunting videos and movies. I think some startup should make more of these. Apparently, we can just, there's a lot of good ones. Well, the great thing, I mean, and Spielberg talked about this when he made Raiders of the Lost Stark. The great thing about making Nazis your villain

is that you could do anything. People don't care. You could blow away 100 of them. James Gunn actually has been having fun with this on Peacemaker, the HBO Mac show. Like if you set up that your bad guys are Nazis, you can gun down a whole field of them. And everybody's like, hooray, bravo, good job. Melt their faces with the arc of the covenant.

Right. Nobody feels bad no matter what gruesome, awful thing you want to do to them in your movie because they're not. All right, folks. I think it's time for me to hit the hay. But before I do, maybe I should do one founder question since you're here, one. Oh, sure. Do you have a great founder? Because I literally spent the whole day talking with founders.

I did the Founder University presentation that you helped punch up. Sure, yeah, yeah. So I did that for an hour this morning. I walked, it was great. People loved it. So great job on the presentation. It's a good presentation. Yeah, we went through it.

Kavir and I spent a long weekend going through that slide by slide. Oh, you guys worked over the weekend for me? Thank you for that. That's right. Bianca too. Bianca helped out. She's been very busy in the kingdom, but she helped out as well. Yes.

All right. So I do have a good founder question here from Warm Sale 7908 on R slash. startups. They're asking founders who've raged angel or seed rounds, how do you track runway and burn rate and how painful is it creating investor updates? This was such a good question because it's so, it's so directly a founder university question that we hear from all the time. They wrote, I'm researching how founders manage runway tracking and investor updates after raising angel or seed rounds, trying to understand if there are real pain points here, if most people have figured it out, would love to hear how you handle it, what tools you use, what's annoying,

what works well and so forth. So Jason, what do you think is the best or simplest way for early, early startups to track their runway and burn? Very simple. There are tons of accounting firms out there who do this kind of work. And they'll send you every month a P&L and they will send it to you somewhere around

like 10 days after the close of the month, 15 days after the close of the quarter. And you have to have your accounting right. The good news is in year zero or one, you may not turn on revenue or if you do, it's a pretty simple revenue. And your costs are usually limited to your gusto account, like what your salaries are. Or, and like you bought some computers and maybe you got some credits from, you know, Google or Amazon and, you know, maybe you're paying for some cloud as well. So you essentially take your last three months burn, you average it. Okay. So let's say you

burned, 50K, and then you had a big month because you bought some laptops and it was 70K. And the next month you made a little more money and it went down to 40K, 30K. So you got 50, 70, 30, 150K and losses in a quarter. Instead of doing it based on one of those three numbers, you just blend the three together. You say based on the last three months burn rate, which is revenue minus spend, positive or negative number. If it's negative, it's a burn. If it's your runway is infinite, and it's always great to get that email, infinite runway. So when you go to $1 in profit over your spend, you're now infinite runway. But if you had a burn of $50K a month, and you have $1 million in the bank, you have 20 months of runway, $50,000, your average burn

for the last three months. So you say based on our average burn in the last three months, we have approximately 20 months of runway. And I think a short overview at the top of what you do. Hi, we are Uber. We are everybody's private chauffeur. We operate in three cities. We're opening up two more cities. And then you might have team, product, customers, you know, fundraising or corporate activities. And you just list two or three sentence of narrative. If you have a chart, you put in a chart. And then at the bottom, it's always good to put requests. Why do you put it at the bottom? you want to see who gets to the end of your rider. Famous story, like take the brown M&Ms out of the...

Van Halen, I believe, is that story. Yes. And so they had at the bottom of their rider take out the brown M&Ms. Why they wanted to make people... Make sure people got to the end of the rider. The rider being the conditions into which they would play in an arena. So here, you put at the bottom, things you can do to help. One, we're looking to get press in the legal press for our legal LLM solution.

this includes the following journalists and whatever. Two, we're looking to fill these three positions. You can retweet that we're looking, my tweet here or my LinkedIn post. Number three, we're going to be raising in the fall. We're looking for connections to these Series A firms. Here's a list of the company. Here's a list of the firms we've met with. Please put your name on it if you know anybody at the firm and who you know.

So you'd like a call to action, something for your investors to do. Monthly is great. If you do it monthly, you will have a deep, meaning for a relationship with your investors. If you do it quarterly, you can have a great relationship with your investors. If you do it less than quarterly, your investors might feel, unless you're just having massive success and they're seeing you do crazy fundraising and reading about your press, they might feel like maybe you're ungrateful. And the only time you do email them is when you've sent updates. So a lot of times we'll get an email, hey, we have three

months of runway and I haven't heard from the founder in a year. So we literally, you know, try to train our founders to do this. We put it in our documents even, like as part of our agreement, we have information rights and we'll get a quarterly update. And we like to find what we're looking for. Not because we need it as much as you do, as the founder does, but because we want to see the founders succeed. And if you're not a good person with sending updates, It's like I'm not because I'm so pulled in different directions. For my updates for my venture funds, I deputized Jackie and our team, a partner at our company, to write them and send them.

And if I have a time to edit them, if I don't have time to edit them, they go out from Jackie. And I'll read it when other people read it, which is actually in some ways, like even more honest because I didn't see them. So I like the idea of even deputizing somebody on your team or two people on your team. You're responsible lawn for the product and this and, and Alex, you're responsible for this and this. And then if you're not the type of person who stays on top of these things, you forget,

deputize your other co-founders or somebody on your team and say, I want you to write this update and this format by this date, have all the numbers in, and then I will write an opening paragraph. If I don't write the opening paragraph by this date, please send it and just send it from you, the VP of operations or the general manager of the startup or the VP of product.

They're really important. You don't need software to do it. you can find a million templates online, but short is better than long and short is much better than nothing. And no numbers means, no numbers means bad news. Numbers typically mean good news. So when you don't give numbers, people just assume, oh, man, this startup is screwed, or you don't hear from people. It's a 90% chance, as I wrote in my book, like if you don't get updates, it's a 90% chance it's going to zero or 10% chance. It's Uber or Robin Hood. But in truth, Travis sent regular updates.

Even Travis sent regular updates. Why? Things were going so well. He kind of wanted to connect with investors. And he had requests of us of things we could do to help. And he was putting us to work. So put your investors to work. Great question.

And I hope that's helpful. All right. I'm sure it was. Well, Jason, let's get you to bed overall there in the Middle East. Lon, you and I are going to get back to work. But this has been another this weekend startups. We'll see everyone live on Wednesday. Bye.

Bye. Bye-bye. Bye-bye.