Why OpenAI Paid $6.5 Billion to make the new iPhone & How Google Just Ended Hollywood w/ Dave Blundin & Salim Ismail | EP #174

OpenAI to buy AI device startup from Apple's Jony I for $6.5 billion.

It's funny, in this entire AI battle, I've never been a Sam Altman fanboy until now. The first thing he does is he launches a product that competes directly with Perplexity, tries to take over search and announces kind of declares war against Google in search. Next thing he does is he goes and gets Jony I've and says, okay, now I'm going to. Now I'm going to start building devices.

VO3 Grand Slam Home Run.

The future of media is going to completely flip where it's on demand. Like this is what I want to see created on the fly for me.

Curious as to how people are going to use it at a personal level, but will I really use it to generate my own entertainment?

Hollywood is decimated, I think continue to exist in two or three years from now.

Now that's a moonshot, ladies and gentlemen. Hey everybody.

Welcome to Moonshots. I'm here with my moonshot mates, Dave Blunden and Celine Ismail, and this is an episode of WTF just happened in tech. It's been a big week, guys. A big week. On announcements, in particular with Google IO and our friends over at Anthropic. Dave, where are you today?

I'm in beautiful Wakefield, 10 miles north of MIT actually. This is a company I founded right after Data Sage, manages $2 trillion of. There's $50 trillion in stock market. Two trillion of it trades and flows through this building. So it seems sleepy, but there's, there's a lot of digital movement through this building.

You know, you throw out trillions like they're nothing. But hey, it's, it's good to know. Good to know someone does that. And Salim, I know that you're in the bedroom about, about three, five meters that way. So Selim and I are actually up in Tiburon. We were at an event last night that a friend of ours threw. Everybody's asleep because they got in at 2 o' clock in the morning. We're in this building on the water here. It's gorgeous. It was a conversation on quantum and consciousness. It was pretty amazing. But we got up at the crack of dawn to do this podcast because this is an incredible week. So a lot of you doing okay? You. You awake?

I'm, I'm awake. And I think it's an incredibly. One of the busiest weeks we've ever had in terms of tech stuff, so.

Oh, it, it, it is. All right, let's, let's Dive in. Let's talk about AI of it. All right, that's the winner this week in terms of tech news, and I think it's going to be the winner every week going forward. So, Dave, would you clue us in this news? OpenAI to buy AI device startup from Apple's Johnny I for $6.5 billion. That made headlines.

You know, it's funny, in this entire AI battle, I've never been a Sam Altman fanboy until now. This is the move of all moves. And I know Sam was talking about, yeah, huge coup and a very aggressive move. And it was really probably in Sam's mind the whole time. He was just waiting for the $300 billion valuation so he could afford it. But he was talking about this, what, a year ago. And at the time he backed off, didn't want to kind of wake up the competition. And he said the iPhone is probably the most perfect device ever made by mankind trying to compete directly with the iPhone. And the Android phone is kind of crazy. So he was backing off while he was still planning, and now this is the move. So the fundamental thought here is that AI is such a game changer. All the big tech companies need to have a direct to consumer device or interface. So, you know, meta buys WhatsApp, meta buys Instagram. You just got to control the consumer front end. Google builds Chrome, Google launches Android. Android doesn't even make money. Why does Google need Android? But we need to control the data and the front interface that the consumer uses every day. Of all the big AI companies, Sam is the guy who most intuitively seems to get that. The first thing he does is he launches a product that competes directly with Perplexity, tries to take over search and announces kind of declares war against Google in search. Next thing he does is he goes and gets Jony I've and says, okay, now I'm going to, now I'm going to start building devices that the consumer interacts with directly. So, you know, a lot of the other foundation model companies are just trying to build foundation models and let the economy bubble around them. Sam is actually trying to control the high, low and get the front of the consumer and the entire AI backbone. But I think the big insight here is that you can build a consumer device that's AI first, which means you're always talking to it, you're interacting with it like a person. And that's disruptive enough that a lot of the iPhone magic isn't really relevant and so we can potentially leapfrog and bypass that. Then you know, to spend $6.5 billion on a no revenue idea, but you're getting the guy and the team and that's very Steve Jobs. Like we can, we can riff on that, but I think it's just brilliant.

Yeah. So the question ultimately is, what's the next level device going to be? Is it going to be glasses? Is it going to be a device that's just listening all the time? And there are a few different companies coming out with this. Salim, you were going to say?

Yeah, I mean this I think lets us straight to that Jarvis thing of an agent from your perspective, always looking at the world and listening and making sense of the world. So I think this is a huge step, as you said, Dave, very, very ballsy and I love it.

Yeah, actually very similar. Google, they spent $3 billion on character AI specifically to get Noam Shazir back. So it's another case where you're willing to write a nine figure check for a fundamentally a single human being. But you know, that person's going to bring a team with them and they're going to bring that kind of Steve Jobs magic with them. But these price tags are completely unprecedented. But then the upside on a win is also orders of magnitude bigger than ever before. So it's actually very rational.

Yeah, well, can't wait to see what comes up next. One of the questions, of course we're going to have probably a whole slew of AI devices listening to your conversations all the time. And I think it's going to get socially accepted eventually. But in the beginning, you know, as you step into and you're having a conversation with your friend and you notice that they're wearing a pendant or something on their head or something on their wrist that's listening. And the question becomes, are you okay with every conversation you're having being recorded? Because that's where we're heading.

That's where we're heading. I think this actually that podcast we had just a couple days ago with Aneesh is directly related to this too. Anish was pointing out that there are huge swaths of demographics, including older people, including just huge swaths of different countries that have completely missed the iPhone, Android phone revolution and the AI interface, the voice interface that's super empathetic, opens it up. And so, you know, it's not like you have to stop everyone from using their iPhones tomorrow. What you need to do is open up whole new territories of users that were largely overlooked before. So I think this is likely to penetrate very quickly that way. And yeah, It'll be like a lightweight, easy to use, probably dirt cheap device that you're just talking to that has an agent as the core doing everything you just ask it to do.

Yeah, it's the lurking that's going to be interesting. Right where, you know, you don't know. Remember when Google came out with Google Glass and they were wearing them to bars and people said it gave them.

The term glass holes and stuff?

Yeah. Getting really beat up. Yeah.

So it's going to be, it's going to be fascinating. We're, we're about to see social norms of interactions with human to human, with AI there begin to get defined very quickly.

Look, it, it started already. You know, every time I have a Zoom meeting now with a few people, all their AI show up before they do.

You know, the AI is doing, you.

Have to go, wait, we're trying to have a confidential meeting here, you know, and then we have to turn them all off and stuff. Yeah, actually the shift is happening.

You're right.

We could riff on that for a sec. But the regulatory, there's no regulation. Basically the regulators are completely asleep at the wheel. But if you look at TCPA and you know you can't tap phone lines and there's very good reasons for that, but all of that is now moving to digital where there are no laws whatsoever. But you notice when Zoom calls started having AI spies on them, they announced themselves, that's all. Like now they just listen and you don't even know they're there. And the same with consumer phone calls. A lot of our companies have either sales or customer support over the phone, is moving to AI voices at an incredible rate, using every GPU on the planet. By the way, it works incredibly well. It's far better than a human call operator. But most of them don't tell you their AI. And there's no regulation that says you have to tell you. And so a lot of the times I'm listening to the calls, the consumer, you know, about 10, 20% of the time they're aware they're talking to AI. The rest of the time they're not.

But that's amazing. I mean that's, you know, kudos to the designers there. I mean that's extraordinary. And it's just going to get better and better.

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All right, let's move on. We have a lot to talk about here. So this the bottom line? Sort of Google stole the week, at least for a little bit. Dave, do you want to just outline what we're seeing here? This is a slide titled Gemini leads across all models and we're talking about Gemini versus GPT 3, 045-deepseek, Grok, everything.

Yeah, this is the Empire Strikes pack right here. So OpenAI has stolen the audience, the user base and then AI Primacy Xai claimed it back in February very briefly. Then Google came roaring back or sorry, OpenAI came roaring back with new models and then that woke up Google. Google's coming in and this is the Empire Strikes Back. Okay, we have had this in the lab. We didn't know exactly how to announce it or when to announce it. But now that the competitive pressure is on, we we're going completely to the wall here. This is the best of everything we've got and we're going to roll it all out this week. And here you go. And it is mind blowing. So they're claiming the number one spot in every single category. Just we'll get to. So the one that caught everyone's imagination. Well overall obviously image generation. Hard prompts. Hard prompts is difficult questions. I guess that's pretty obvious. Coding and math. They claimed number one on that for all of a few hours. Math. They still own creative writing as people do in their English papers. Long queries. So they've actually had dominance in super long context windows for quite a while. They just didn't tell the world about it. And this is exactly Peter, what you were saying a couple weeks ago. Big companies have a real struggle with innovators dilemma. And so even though this has been in the lab, Demis Hassabas and the team have been working on it for a long time they've had it, but they were so worried about how to roll it out and whether there'd be consumer backlash. But now under competitive pressure, it's unleashed.

I mean, this is Google over and over again. I mean, Google had Transformers first. It did all the fundamental work. It basically had the equivalent of GPT, but decided not to do what everybody said. Don't do this. Don't put AI out in the open web. Don't make it accessible to everybody. Don't let itself referentially program itself. And of course, once it was released into the ether, Gemini, Gemini or Google had to come back and demonstrate themselves. Listen, I love Google as a company. I'm impressed by their, by them. And they've got an extraordinary base to build on. I'm sorry, Salim, you were going to say no.

You know, a few days ago I generated an image of a Gutenberg printing prospect. So give me a photograph of it. And I did that across several models. And the Gemini one was way better than all the others. It was incredible. And so I think we're going to find over time, the interest is still over with OpenAI. There's a lot of attention there, but I think over time the sheer quality will kind of come through.

I think if you love a good drama, you know, this is the space race times a thousand and the players keep leapfrogging each other. And you'll see later that Google's kind of ace in the hole is that it has hardware control, hardware design control. So you go from algorithm all the way down to chip Design with the TPUV 7s. Nobody else has that. But the other guys have other competitive weapons we can talk about later in the pod too. So don't expect that this is the end. In fact, I've seen Game over said now about 20 times every time someone leaps someone else. It's definitely not game over. It's game just beginning. So if you like a good drama, this is just this, the next act. And we'll see that in a second.

And if anybody ever wondered is this field accelerating? It is massively accelerating. And it's the competitive pressures between these companies. It's no longer between countries, it's between a set of individual companies that are just trying to outdo each other. The challenge is that ChatGPT that is OpenAI captured the mindset of the world as a first mover advantage. You know, you know, kids throughout elementary through high school and college, you know, the average mom and dad out there, they're all using ChatGPT and it's reflected in the revenues that, that OpenAI have. Gemini really needs to catch up because I don't care how good you are at, if your product is not being used, you're in, you're in trouble.

This is, this is an interesting thing to watch just because throughout history, even though we kind of talk about first mover advantage, it's never been the first mover that made the big bucks. Right. Google wasn't the first search engine. Facebook wasn't the first social network. OpenAI has leads. It remains to be seen it might actually be a completely new competitor that completely changes the game for everybody.

Oh, it will be, it will be. I mean, there's no question about it. So let's. So here, this chart that we're showing, if you're watching this on YouTube, is Google as number one across the board. But then how many hours later, Dave, did we get this chart? And anthropic introduces Claude 4.0.

Yeah, so amazing little 24 hours there. So Sundar gets on stage, talks about something we'll look at in a minute, which you can use just basically all AI all the time and not use regular Google search. We'll see it in a second. Google stock goes way down. Then next day they come out with VO3 with a whole bunch of just mind blowing AI. Number one benchmark stock goes up 7% just in reaction to that. So everybody's like, what is going on here? There's so much chaos. Right in the middle of it, Claude 4 comes out. So Dario is like, yeah, look, Sundar just claimed number one encoding. Not true. Well, it was true yesterday, now it's not true today. We have Cloud 4. And here are the benchmarks. And these are accurate, by the way, so that it really is the case that Google was ahead in coding for about 24 hours. And now if you look at this chart, it's a pretty significant gap actually. Cloud 4 has just launched to the top again. And those scores on the far left are incredibly meaningful to the people who understand what the implications are for companies like Blitzy in our portfolio that do long form coding, 3 million lines of code in a single night. Brian Elliott is all over YouTube talking about works. Fundamentally because of the benchmarks on the far left, the AI can now actually build entire products while you're sleeping and you come back and use it the next day and it's functional. And that works when these benchmarks get around 80%. It doesn't work when these benchmarks are around 50, 60%. They're just too many bugs in the code the next day. Even though it doesn't look like much on this chart, it's an incredible tipping point in terms of functionality when you get above that 80% level on sweebench. And now we need to reinvent the benchmarks. By the way, this is sweepnch, which is the most fundamental benchmark on how good is the code written by AI. There's a new one coming out called SUI Rebench, which is just making it harder and upgrading it. But we need new benchmarks now because the AI is basically broken the benchmarks.

When Ray talks about the singularity, that point after which you can't predict what's coming next, that's what you're seeing here. You're seeing literally a, you know, drop the mic moment over and over again, being leapfrogging everybody else. And it's. It's a inspiring. All right, here's yet another part of the equation. We talked about AI improving based upon a multitude of different factors. Better hardware, more capital coming in. And this one is really improvements in algorithms, algorithmic improvements. And the prediction here is we're going to see a 10x to 100x improvement. Algorithms. Salim or Dave, why not comment on this?

This is something we've been tracking in, say, solar energy forever, right? Where the materials become cheaper, where lithium ion batteries have dropped 90% in their price performance over the last decade. The same thing. And people forget about this. They kind of think, look at electricity needs on the current models and then they project out and everybody goes, oh, my God, oh my God. Not realizing that. Where the models are becoming much more efficient very radically, quickly. As a real world example, the amount of fuel in a plane needed to cross the Atlantic has dropped by two thirds in the last few decades just because the engines are so much more efficient. We know what routes to fly on, where's the air less resistant, et cetera, et cetera. So I think we're going to see the same thing happening in AI, where the models are becoming very much more efficient. And that's going to change the game. Not enough to drive the upside, but definitely it'll help hugely on the overall energy needs over time.

Yeah, I checked this post and researched it for accuracy and two things to riff on. One is Jevons Paradox, which we all love to talk about. Actually, our good friend Erik Brynjolfsson is probably the top guy on the planet on that topic and we should have him on as a guest to talk about this. And then the other is this is way, way, way Understated. So starting with the way understated. This, this is worth reading. But it was built kind of by extrapolating bottom up. But I know the actual innovations under the covers that are driving this and they're much bigger than this and they're much faster. Software innovation that's done by AI can be deployed in real time. You're not waiting for any hardware or anything to come online. You just deploy and go. And so this will happen much, much faster than what's shown on this chart. Now that the AI can improve itself. And the other thing is it's extrapolating to about 100x, anywhere from 30 to 240x. But I know that in the quantization of the neural nets alone, there's about a 20-40x in that dimension. Then in the chain of thought reasoning, just in that these are all multiplicative, by the way. So you have at least three dimensions that I know are 20 to 100 x's that are multiplicative with each other. And so it's going to be more like 1,000 to 10,000x. There's a brilliant researcher at MIT, Shane Longpre, that I was talking to yesterday. He desperately want to build a company around him, but he has to finish his PhD first and it's frustrating as hell. He's just got a few more months to go, but he's doing a lot of great work with right now. When you use an AI to do something for you, build a video or be an agent for you, the parameters in there also speak Swahili and know about quantum, you know, quantum compute, like all this other knowledge is actually being, is using up the GPUs and it's using up the compute, even though it's not relevant to that question. And so you can actually take much smaller subsets of that great brain to give you just as good an answer. And that's on the order of 100x factor by itself. So he's wrapping up his research on that right now and then we'll, we'll end up trying to productize it. So no doubt in my mind that this is way understated, both in time and in impact. So, yeah, it's pretty exciting.

Bottom line, when Eric Schmidt says AI is massively underhyped, it's the realization that we have all of these knobs we can turn and they're going to give us improvements, each one of them 100x improvements times five or six different knobs.

Let's talk about Jevons Paradox for just a Second there too, because I think this. No one had ever said Jevons paradox. I think for 100 years until now, it's going come up every week. So we might as well all define it for us. All right, so here's the deal. In normal economics, Eric Brynjolfsson is the master of this. In normal economics, you have supply, demand. You know, ISLM. I don't know if you ever took 1402 at MIT.

I did.

So if you said, hey, I found a way to grow bananas, they're twice as cheap now, they cost half as much. People don't consume twice as many bananas because they're half as expensive. They consume maybe 5% more bananas. That's normal economics, right? Price comes down, then that fraction of the economy is smaller because the price is lower. Oil being the classic example of this. Then you get into tech and something really weird happens where if I make a GPU 10 times faster for the same price, my video game got better. Do I use 10 times less video game? No, no. I use actually more video game than ever before because it's more fun than it was before. So even though it got 10 times cheaper, my overall consumption of that actually in dollars, goes up, not down. That's completely paradoxical for an economist. You're seeing that most acutely in AI more than ever before. If it is more capable, because you made the model in this case 30 to 240 times more efficient, doesn't that bring the need for GPUs and data centers down? And it's not. It's going to go the other direction. The need for data centers, chips and electricity actually goes up, up very, very steeply. And so a lot of people are mispredicting the investment in energy, in data center supply, in chips. Chips will be sold out for at least the next five years and maybe infinitely in the future for exactly this reason. Because the capabilities, like one of those VO3. We'll look at some VO3 videos in a minute, and you'll see immediately, as soon as you do it, you want more. Every time the capability gets better, you want more.

You realize it's going to reinvent entire industries. I mean, not just, you know, give you a new tool. It's reinventing entire industries, everyone.

As you know, earlier this year, I was on stage at the Abundance Summit with some incredible individuals. Cathie Wood, Mo Gadot, Vinod Khosla, Brett Adcock, and many other amazing tech CEOs. I'm always asked, hey, Peter, where can I see the summit? Well, I'm finally releasing all the talks. You can access my conversation with Cathie Wood and Mogadot for free@diamandis.com summit. That's the talk with Cathie Wood and Mo Gadot for free@diamandis.com summit. Enjoy. I'll ask my team to put the links in the show notes below.

All right, let's dive into Google I O. So what we've done here is we've grabbed a 10 minute video. It's a recap put out by Google and it's a Google I o recap. In 10 minutes we're going to play this at a little bit of accelerated speed and I'm going to have my moonshot mates here sort of weigh in and comment as we go along. It's very rich here. It's important that people understand what Google just announced. Google remains the dominant player here and there's a lot. Okay, so we'll go to Sundar who opens it up and we'll break every occasion for some some fun conversation.

Hello everyone. Good morning. Welcome to Google IO. We want to get our best models into your hands and our products asap. I'm particularly excited about the rapid model progress and today Gemini 2.5 Pro sweeps the LM arena leaderboard in all categories. It's getting a lot of love across the top coding platforms. Thanks to all of you. Gemini 2.5 Pro is our most intelligent model ever. And now that it incorporates LearnLM, our family of models built with educational experts, 2.5 Pro is also the leading model for learning.

Right. So, you know, one of the things we've talked about a lot is using this to re educate the planet. And I think that we're going to see a massive disruption in education across every field. One of the challenges we're going to have is whether the educational field is going to accept this. I don't know how you guys feel about this, but you know, teachers unions are going to have to get on the game here and we're going to start to see, you know, do I put my kid in school because they're using old style or do I use AI to educate my kids? Thoughts?

Well, yeah. One high level thought on that is Denis Hassabas is going to push this agenda. He's taking the high ground. It's really interesting to watch Google now decide. Look, our Nobel prize winning, brilliant guy, we're going to put him on stage and make him a centerpiece and he rises to the occasion incredibly well. But he can't compete with Sam Altman in The use cases that are going to propagate, you know, at light speed, which is, you know, virtual friends, you know, creating your own internal copyright violating versions of movies, you know, all that stuff. He can't touch that because he's a Nobel prize winner. He's going after saving hundreds of millions of lives with biotech innovations, you know, because he's the alphafold guy which everybody. So he has to take this incredible high moral high ground. So on stage he's very focused on new models that work from fundamental physics principles up to have fundamental scientific innovations and to teach the world everything they need to go. Like those incredibly high ground, important use cases that are going to take a long time to percolate out because of, like you said, teachers unions and regulation and so forth. While Sam on the other end of the world is just going to run away with consumer, whether it's spyware or not, we're doing it, we're moving 100. And this is the quandary that Google's in. You know, Sundar doesn't want to be that guy. Demis doesn't want to be that guy. This next woman that'll talk doesn't want to be that person. It's just big company versus small company mentality everywhere.

All right, let me jump back in and then, Salim, I'll come back to you. Next.

I got 2.5 pro to code me a simple web app. Someone comes to you with a brilliant idea. I'm going to add in a prompt that asks 2.5 Pro to update my code based on the image. And here's what Gemini generates.

Whoa.

I was able to create this just based on a sketch, but what if it talked? That's where Gemini's native audio comes in.

That's a pangolin and its scales are.

Made of keratin, just like your fingernails.

Today we're making 2.5 Pro even better by introducing a new mode we're calling Deep Think. Deep Think uses our latest cutting edge research in thinking and reasoning, including parallel techniques. We are in a new phase of the AI platform shift where decades of research are becoming reality for people all over the world. Introducing Google Beam, a new AI first video communications platform. Beam uses a new state of the art video model to transform 2D video streams into a realistic 3D experience.

So let me pause at Google Beam here. Salim and Dave. We had a chance to see Google Beam at the abundance summit this year and it's not, you know, my 12, my 13 year old boys were with me and they said it was the coolest thing they saw at the. At the tech hub. Right. The ability to actually be there. Now, Cisco tried this years ago and it was expensive, multimillion dollar hardware. I don't know if the price point has been announced yet on Google Beam, but it's going be sort of an appliance that's in your home when you want to contact your. It'll be very cheap.

Yeah, for sure it'll be very cheap. And I think this is a very big deal because you can think about the language potential that comes with it. All the other capabilities will come with it. I think it'll up the game for companies like Zoom and force them into a new innovation cycle.

Also fascinating.

Yeah, we need to talk about price point for a second here too, because a lot of this stuff is just mind blowing and you need to experience it. And then Google says, well, to access anything I'm showing you here, you got to get a Google Ultra or Gemini ultra account for 250 bucks a month.

Ballsy move on their part. Ballsy move.

Ballsy. And one of the things I love about this podcast is, look, this is the actionable. We're trying to improve people's life choices and trajectories through life by giving them as much actionable information as possible. And a lot of people who listen to this podcast are going to say 250 bucks a month, that's like rent. So the good news is you can, you can try it at half price for a couple months and then cancel your subscription if you want. So you. But you definitely got to try it. I mean, Google.

Google's trained us to get everything for free.

Right.

And just give up our rights and such. I mean, OpenAI has proven a $20 price point is acceptable to most individuals. I'll give up a couple of lattes and have access to the world's intelligence. 250 bucks.

I think it'll become mandatory for anybody in the professional modality because the tools will be so rich and there'll be enough there for them to do quite well out of it, I think.

But, well, six months ago, a lot of people were saying, look, foundation models are a race to the bottom. They're a commodity. The price points will come down. These $300 billion valuation for OpenAI is insane. You know, given that it'll commoditize now it's got to be obvious to everyone that all of that was wrong. Just absolutely could not have been more wrong. Because you're a foundation model company, the capabilities that you can invent and launch and the price point that they'll command is astronomical. And then right now, any of our listeners are basically going through what's inevitable. I can't be competitive if I don't have my hands on this. I need to try it. I'm going to drop behind society if I don't get on top of this. Well, sorry, it's going to cost you 250 bucks right away. And I noticed that, you know, it took my money instantly, but it took 24 hours for me to make my first VO3 video. I was like, wow, this thing is over. I mean, I'm interpreting that as it's over subscribed and overloaded. So it's obviously like a race.

One thing, Dave, which is the capabilities that existed before, you know, when I say before last month, you know, last quarter will be available for, for free. Right? We're going to still get a lot of fundamentals for free, but if you want the cutting edge, that price will be increasing over time. Let's, let's jump back in here we.

Are introducing this real time speech translation directly in Google Meet.

It's nice to finally talk to you. Es bueno hablarte.

So instant translation. We've been seeing this for a while now. I think it's going to be fascinating to incorporate across all the video platforms. I mean, right now YouTube is translating our podcast in every language out there. That's fantastic. Zoom's going to have to catch up to Google Meet. Any comments on translation, Salim?

I mean, I travel a lot and this will be so great to hold up my phone and do real, live, transitional conversations in different countries. I'm super excited about this. There's such enablement that comes from this. We've been kind of tickling at it. It's been available in kind of a clunky form for a long time. I think this sounds like it gets to a level of seamlessness from a user interface perspective that could change the game.

So, Salim, this directly affects our side bet, which we need to finalize, by the way. Peter needs to adjudicate this side bet that we agreed to a few weeks ago, where I see the forces of concentration of wealth into just a few hands are overwhelming and then the forces of democratization are moving much more slowly. And your side bet was, no, this is going to benefit broad swaths of humanity on a more and we haven't quantified that, so we have to settle that. But I'm willing to put any amount of money you want behind it. But here it changes the Definition, we.

Put trillions before, so you can put down trillions and I'll put down a few bucks. We'll see how that goes.

All right.

Interesting. You know, listen as a parent and you're listening to this, you know, in the past you would say, oh, it's really important for my kids to learn French or Greek or Turkish or Japanese. Whatever your cultural roots are or whatever you think you know, you need to learn Mandarin because China is rising the world. And then you need to load coding.

Right?

Coding was always like pushing your kids learn to code. So now we have this digital world allowing us to do coding through natural language vibe coding. And why would I ever learn a language if I can just be translated instantly? So there's an interesting social re engineering going on here because of course, when you learn to code, you learn how to think in a different way. And when you learn languages, you learn culture in a different way, which is going to be obviated through here. So I'm fascinated by this.

There's something that I think will persist here and the reason is that when you learn a new language, your brain rewires. It does in fundamentally different. It's the same way so many creative people play music, are into music, is because their brain rewires fundamentally around that different paradigm. And you triangulate. Now you've got different brain neural circuits that you can bring to bear. Right. In India, when they have kind of countrywide maths competitions, it's always won by a dank South Indian. Their ability to do mathematics is like 10x everybody in the north of India and they've worked out that it has to do with the structure of the language. The rhythmic patterns on the structure make their minds naturally available for that. So I think the idea of learning piano or learning coding or learning certain deep skills or languages will persist just because it'll create so much more creativity in people and more creativity will be the only thing that's available for humanity going forward.

Well, the reason I think this affects our side bets, Salim, is because there's latent talent all over the world and it's usually locked up behind language barriers now that the translation is real time. But it also keeps your voice intonation so your natural voice, you can actually make a real friend in a different country where you don't have a common language. And I think that's new in the world. We don't know where it's going to go exactly. But all of our successful startups are dominated by this theme of best friends grinding it out, working 24 by 7.

Oh my God, that's brilliant, Dave. I mean, our ability now to find, I mean, there's so much talent in Pakistan, in India, in parts of Southeast Asia that are locked up and don't have access to our capital markets. You know, you can imagine we have, we have Link Studios as part of Link Exponential Ventures there on the campus of MIT or adjacent to it. And we're opening up Abundant studios here in la. You could imagine tapping into that deep bench and having natural conversations like we have with our buddies down the street.

So can we just say that I won the bet? Right now.

I'm jumping back into Google. I o. We got a lot to cover here.

Our research prototype, project Mariner, it's an agent that can interact with the web and get stuff done. We released it as an early research prototype in December and we have made a lot of progress since. And we are starting to bring agentic capabilities to Chrome search and the Gemini app. Let me show you what we are excited about. We call it Agent Mode. Say you want to find an apartment for you and two roommates in Austin. You've each got a budget of $1,200 a month. You want a washer, dryer or at least a laundromat nearby. Using Agent Mode, the Gemini app goes to work. Behind the scenes, you might be familiar with our AI powered smart reply features. Now imagine if those responses could sound like you. That's the idea behind personalized smart replies. With your permission, Gemini models can use relevant context across your Google apps in a way that is private, transparent and fully under your control. Let's say my friend wrote to me looking for advice. He's taking a road trip to Utah and he remembers I did this trip before. Gemini can do almost all the work for me. Looking up my notes and drive, scanning past emails for reservations. Gemini matches my typical greetings from past emails, captures my tone, style and favorite word choices and then it automatically generates a reply.

Wow. Just wow. I mean, so agent mode there and Google's ability to personalize in a very deep and meaningful fashion. I'm blown away. I mean, no, listen, the fact of the matter is their goal is to get everybody to switch over from iPhones to, to Android and from Outlook to all of Google's suite and it's getting compelling. I mean, it's going to be to a point where I want that and I'm willing. This cost of switching platforms is huge. And if Google's able to provide enough eye candy and enough cognitive candy to get me to switch That's a big deal.

The use case, they demo is just so funny to me because Sundar's like, hey, suppose I want to go to Utah and I want to rent a bike. Like, come on, man. We already did this week here at Vestmark is we took that same A2A agent to agent and MCP capability and we moved it inside our firewall. And it now opens inbound emails in Outlook with trade requests. Then the AI will read the trade request automatically, trade the account. We're talking about trillions of dollars here, generate the trade file automatically, and then route it out. And so we're already using that exact capability in a much higher leverage use case, but completely built the artificial operator. The financial services industry spends about $100 billion a year on back office operations related to these activities. When we sample them, every single one of them is possible to do with AI. Now, if you're willing to connect it to sensitive information financial accounts, and you find a way to put it behind your firewall, they just rolled that out here this week and it's such a huge unlock. But, you know, when you get on the stage like this, you got to talk about something like, hey, I'm renting a bike.

And okay, well, why does Sundar sound like an AI? I mean.

Well, his name is Pichai. It is pitch AI. So that's why they chose him, I think, to be CEO.

Oh, no, it's terrible. But, you know, Sundar is in the. He's in the maelstrom, right? And he's got Sergey and Larry looking over his shoulders. He's got, you know, the innovator's dilemma. Again, their entire revenue base has been Google search. Not entire revenue base, two thirds of their revenues. They've got YouTube, which is incredible. They've got Waymo, They've got a whole slew of other. But, you know, switching things over and we'll see this in a minute. Switching this over away from search. They have to do this in order to continue to survive and grow. Any comment on. On the agent, agent element, Saleem, or the personalization? Does it feel weird? Does it feel weird to have the AI searching all your emails and. And responding on your behalf? I mean, I find that incredible.

The responding on our behalf is a little creepy and a little unnerving, right, because you don't know what it's going to say, etc. Etc. I think it's just one of these things. We'll just get used to it and it'll become routine fairly quickly. The initial emotional reaction will Be there for people. I think the potential is much, much bigger here on the business side than on the personal side. The B2B implications of this type of stuff are off the hook for customer service responses and all sorts of things. So I think we'll see a lot more agenda stuff in the enterprise level than at the personal level.

Yeah. All right, let me continue.

So much to talk about.

This is rich.

We could spend days on this stuff. But if you say, I want to hear it.

On the consumer side, everybody worries about privacy, but then they roll out functionality that you just absolutely have to have and you have no choice. So you always check the box. How many times a day do you push the accept button? You don't even know what you just accepted.

I mean, privacy is long since dead. I mean, come on. I mean, people cannot, people want privacy, but your Alexa is listening, your Siri is listening, everything is listening all the times. Privacy is a great thing to desire and I don't accept that. It's true.

Well, this is why the truly brilliant Demis Hassabis types and Mark Pincus, our friend, they need to get involved in regulatory, which, you know, probably the last thing they thought when they were born, when they were, you know, a kid growing up, is that they'd get involved in regulation. But at the rate these capabilities are coming out, if people like that don't get involved in regulation, and I mentioned those guys in particular because they're genuinely concerned and they really want a functional, non dystopian future. And we have to use AI as a tool in creating the regulation on AI. There's no other way it's going to keep up. So it's heartwarming that people like Dennis are at the top of the stack because they're just incredibly humanist, good natured people. So that's encouraging.

On the government side, this is a rubicon we crossed a long time ago. Like in the US there is no right to privacy anymore. It's been totally dissolved. Right. And you're going to give the best framing I've seen for this is consider you're living in a global airport, like in an airport, you know, you're being surveilled and your rights can be taken away at any time. And essentially, that's essentially transmitting now down to every aspect of life in, in every country.

Yeah, it's so convenient to give your AI access to your conversations and your emails. It's going to make the world automagical for you that, that turning that off will be like turning off half of your half of your cognitive capacity Again, I think.

Remember Peter, like 10 years ago at Singularity, we played that video of Mark Zuckerberg. It was an onion clip of Mark Zuckerberg. And they said, wow, that was the best CIA agent ever. He got the whole world to just tell us where. We don't even need spies anymore because everybody just tells us where they are. So Mark Zuckerberg, here's an award for, for greatest CIA agent in history. I think this is where we've been going down this road for a long time. And there's no, I don't think there's any going back from it.

Yeah, well, I had meetings with two of the biggest insurance companies top Fortune 50s earlier this week. And I said, look you guys, how are you going to act on this? You need to act on it tomorrow. And one of them wants to use AI to do their quarterly closing. So you can't talk about as a public company. So there's nothing more sensitive in the world than your quarterly closing data. And they said, well, we have two choices. Microsoft says, just give it all to us, trust us. We've already got all your emails in Outlook, so just throw it over to us and trust us. And they're like, that sounds kind of scary. But maybe the other choice is to take Llama four, distill it and bring it in house inside their firewall. And that's startup heaven right there and very, very viable as a solution. They just need a vendor to come in and wire it up for them. I think a lot of the companies and countries that care about their future are going to take that latter path. But the alternative is to concede every aspect of your life, your data and everything to either OpenAI, Microsoft or Google or XAI. It's just not viable for sovereign states for a lot of fintechs to take that path. So it's an interesting, very, very dynamic time.

I am jumping back into the Google I O video here. All right, let's do it.

Gemini Flash is our most efficient workhorse model. The new Flash is better in nearly every dimension, improving across key benchmarks for reasoning, code and long context. Flash will be generally available in early June with Pro soon after.

Gemini Diffusion is a state of the art experimental text diffusion model that leverages this parallel generation to achieve extremely low latency. The version of Gemini Diffusion we're releasing today generates five times faster than our fastest model so far.

This is our ultimate vision for the Gemini app to transform it into a universal AI assistant. In Project Astra, we've upgraded voice output to be more natural with native audio, we've improved memory and added computer control.

A quick aside. You probably heard me speaking about Fountain Life before and you're probably wishing, Peter, would you please stop talking about Fountain Life? And the answer is no, I won't. Because genuinely, we're living through a health care crisis. You may not know this, but 70% of heart attacks have no precedent. No pain, no shortness of breath. And half of those people with a heart attack never wake up. You don't feel cancer until stage three or stage four until it's too late. But we have all the technology required to detect and prevent these diseases early at scale. That's why a group of us, including Tony Robbins, Bill Capp and Bob Hariri, founded Fountain Life, a one stop center to help people understand what's going on inside their bodies before it's too late. And to gain access to the therapeutics to give them decades of extra healthspan. Learn more about what's going on inside your body from Fountain Life. Go to fountainlife.com peter and tell them Peter sent you. Okay, back to the episode.

We are going to show a video example of Project Astra. I mean listen, Jarvis is here. My ability to talk to Astra and ask it to do things for me, research things for me, show me where something is in the room. I mean it's insane. We'll come back to this because the example video is so compelling. But I just, you know, I've been tracking the Jarvis, if you would. And it's, it's finally, it's finally here. And thank you to Google for providing.

It to more people than any other product in the world. In our biggest markets like the US and India, AI overviews are driving over 10% growth in the types of queries that show them. What's particularly exciting is that this growth increases over time. We are introducing an all new AI mode. It's a total reimagining of search with more advanced reasoning. You can ask AI mode longer and more complex queries.

We're excited to start rolling out AI Mode for everyone in the US starting today. Over time we'll graduate many of AI Mode's cutting edge features and capabilities directly into the core search experience. That starts today as we bring the same models that power AI mode to power AI overviews so you can bring your hardest questions right to the search box.

Okay, big move on Google's part. Very bet the company move.

It would be great to overlay the stock price with this exact timeline because this is exactly when the stock Started plummeting and it clearly cannibalizes the core business. Incredibly impressive that they're willing to do that. And then right after that they have to. But they got it all back and more the next day when they rolled out all the incredible AI capabilities. So it's actually paid off by the end of the week. It worked as a strategy, but everybody knows OpenAI is running away with the actual AI user base and Google is miles behind. But now they're going to claim that, well, anyone doing a Google search that turns on this Mode is an AI user. So we're actually ahead of OpenAI. So that's pretty smart and aggressive too.

It's interesting. I have my family members and friends say, oh, yeah, I asked Chat, right? They have a personal relationship with ChatGPT. They've given it a name, AI mode. You need to personalize these AIs if they become part of your everyday life. And so I guess I had a conversation with Gemini is where it's going to go. Saleem, what are you thinking about this?

You know, I think kudos to them for doing this. It would be really easy to hunker behind the old search box and just leave it the way it was while they experiment. But to make something this aggressive where it's built right into the core product that they have is incredibly courageous. I agree they don't have much of a choice, but many other companies would not have done this. So let's see where this goes.

I think if you step back from this too, I mean, the reason America Works fundamentally is because startups innovate and push the agenda. But this capability would have been buried inside Google for years, maybe forever, without the competitive pressure. So it's a great little case study in what we need to preserve in the American economy is exactly this dynamic where the big guys only move, move if we keep funding the small guys. And if the IPO economy and the venture economy ever fell apart, this whole country would just grind to a halt. And so this is a great case study in it.

I love it. Well said. All right, let's jump back in.

Let me make a point related to that. If Google was a European company, this would never would have happened.

Yep.

Yeah. All right, let me find where we were.

It's like having my very own sports analyst write in search. Search figured out that the best way to present this information is a graph, and it created it. Complex analysis and data visualization is coming this summer for sports and financial questions. Using your camera, search can see what you see and give you Helpful information as you go back and forth in real time. We're bringing Project Mariner's agentic capabilities into AI mode. Search can take work off my plate while still under my control. Search helps me skip a bunch of steps linking me right to finish checking out tickets secured with AI mode, we.

Are bringing a new level of intelligence to help you shop with Google. Search dynamically generates a browsable mosaic of images and some shoppable products personalized just for me. To create a try on experience that works at scale, we need a deep understanding of the human body and how clothing looks on it. To do this, we build a custom image generation model specifically trained for fashion.

All right, here we go.

Apple. I mean, Google's getting into Amazon's business, you know, instant shopping. It's going to be an interesting overlay there, Dave.

This feels like they're just throwing everything against the wall. I mean, just throw it all out there.

I'll tell you the dirty little secret behind this though. Google's search volume went flat back in 2017. They stopped reporting it years ago because it's flat, but the revenue just keeps going up and up and up and up. And they say, well look, we don't show any more ads than we ever showed before. But what they actually do is they took all the ads off the low value searches. So baseball scores being a great example, and they amped up the ads like crazy on the topics that drive all the revenue. So that's auto insurance, mortgage, jobs, travel, just one or two other categories drive all the revenue. So now as they roll this out, notice the examples they give are baseball scores. There's no revenue there anyway. So move that over to AI. And then the other one is shopping where they got crushed by Amazon. Something like 60 or 70% of all shoppable product search. You go straight to Amazon, you don't even start on Google. And so they're not winning that war anyway. So they're basically going to claim AI supremacy and try and move only the categories that are low click through, rate revenue over. And they're very good at optimizing that balance internally. So this is their way of trying not to cannibalize too much while claiming more users than OpenAI has. And I think they're going to go.

After Amazon here on purchases, right? I mean it's like if I'm in, if I'm in the AI mode with Gemini and I'm talking about things and it pops up and says, by the way, you can purchase it here. Seamless shopping in the middle of conversations or in the middle of doing research, then having to shift over to Amazon. It's going to be a invasion in Amazon's revenue engine.

It's a great point. And actually in this, all of this PR war that's going like Claude coming out right on top of this event and everyone's jumping on each other. But Amazon is notably silent, even though they do have a ton going on inside aws. And I know they're working on it. They have a plan for sure. They just don't seem to be fighting the PR war.

Yeah, and then Apple's sort of just given up altogether.

That. That is so scary. And it's so weird.

It is so weird. All right, let's jump back in here.

This is the future of Google search, a search that goes beyond information to intelligence.

Our goal is to make Gemini the most personal, proactive and powerful AI assistant. Gemini Live now includes camera and screen sharing. All of it is rolling out free of charge in the Gemini app ON Android and iOS. Today we're bringing our latest and most capable image generation model into the Gemini app. It's called Imagine4. The images are richer with more nuanced colors and fine grained details. Today I'm excited to announce our new state of the art model, VO3. VO3 comes with native audio generation. That means that VO3 can generate sound effects, background sounds and dialogue.

They left behind a ball today.

It bounced higher than I can jump. What manner of magic is that? This ocean, it's a force, a wild, untamed might. All right, VO3 Grand Slam home run. Oh, my God. Extraordinary. Dave, you started playing with it when you got your $250 account. How easy was it?

Yeah, yeah. Oh my God. Well, it's trivial. You got to get the account and just play with it. It's instantly mind blowing. The integration of the audio, I think really puts it over the top. But it's immediately obvious to you that the future of media is going to completely flip where it's on demand. Like, this is what I want to see created on the fly for me. And as soon as every time you do a VO3, it's clipped at 8 seconds and you immediately want a full feature length movie. And you're like, well, why can I only get 8 seconds? And the answer is there aren't enough GPUs on the planet. There's enough compute on the planet to meet the demand of everybody who wants this instantaneously. And that gives you a sense of where, how many data centers and chase lock, Miller carusos are going to succeed because just that use case alone will use up everything, let alone customer service and code writing and all of these things combined. But it's amazing that Josh Woodward got this unit. This is the keystone. This is it. Peter, your buddy Josh got it. Yeah.

Josh was on stage with us at the Abundance Summit this year. He's a great presenter, but it was, it was awesome. Salim, what are your thoughts on VO3?

I think it'll be interesting as people start. I'm curious as to how people are going to use it at a personal level. There's obvious business uses, et cetera. But will I really use it to generate my own entertainment? I'm not sure I would. You know, we watch movies particularly because people have curated an experience for us, Right. So I think this will be great for the professional filmmakers and it'll be great for making pilots. All sorts of stuff will come through with this. I don't think it'll affect the end consumer that much.

I don't know about that. I mean, listen, Gemini 3, Gemini 4. One of these will have looked at every. Every movie I love. It'll understand the context, the nuance of what I really enjoy. I mean, if it's got a camera facing at me, it'll understand when I'm smiling, when I'm frowning, when I'm making reactions to it. And it can generate a, you know, imagine you want the next season of a particular TV show, right? I'd love to see the next season of the original Star Trek. You'll have that.

That's a great, great example, Peter, because, yeah, every Netflix series, you know, from Earth to the Moon or whatever, you always want more when you get to the end. And they just physically can't create more. Well, now they can. And whether it's passive or active, you know, real time and created for you, or it's just the producers can now create the episodes that much more quickly and cheaply. You're never going to let, like Harry Potter. You're never going to let the audience just drop like, oh, this is the last book, this is the last movie disappear. That's just crazy inefficient to just let the audience fall off a cliff. So now that'll probably never happen again. Whether it's just because production costs are much, much lower or because people can create their own. Either way, that trend will happen. But I'd love to side bet with you on this one too, Salim. I think that movie producers have always dwelled on this concept that people are fundamentally lazy. But I don't think that's true. I think that the medium, the passive medium, if you go into a dark theater on a sunny day in LA and you come out of that dark theater and the sun's blaring, you feel like crap. You know, you love the movie, but you feel like, where am I? The ability now to keep the dialogue going. You can move around and keep it going and you can guide it in the direction you want. That's going to be so compelling for people. I don't think the producers have mastered the new medium yet, but when they.

Do, I think I just want to. I just googled this and it says, what's the average shot time for a movie today? So a modern movie, the average shot length is between 2.5 to 6 seconds. In an action film, it's 2 to 3 seconds per shot. And a drama art film, it's 8 to 10 seconds per shot. So, you know, if there are any physical limitations here, again, just cobble these together. But I'm. Hollywood is decimated. I mean, I'm sorry, you know, I drive by all the studios out in Hollywood when I'm. When I'm in la and how do they continue to. How do they continue to exist in two or three years from now?

Yeah, you're dead right on that too. Because, you know, look at Bollywood and how successful that's been. And you know why? Well, it's because, look, the movies are culturally aligned and it just aligns with the audience. But, well, why did all the movies pop up in LA in the first place? Well, it's because we need to shoot the scenes outside in good weather. It's way too expensive to move all the equipment inside every time it rains in New York. So we got it set up out here where we have good weather. But now this kind of content, it's weather independent and it's global and it's language independent. So it's just talent constrained. So, yeah, you're right. It should be democratized and moved across the world very quickly now.

All right, let's jump into the Google I O We've got. We're three quarters in, one quarter left to go.

Our new Synth ID detector can identify if an image, audio track, text or video has syntheye DNA. Based on our collaboration with the creative community, we've been building a new AI filmmaking tool for creatives. We're calling it Flow and it's launching today. Let me show you how it works. These are my ingredients. The old man and his car. We make it easy to upload your own images into the tool. It lets you extend a clip too, so I can get the perfect ending that I've been working towards.

But what about emerging form factors that.

Could let you experience an AI assistant in new ways? That's exactly why we're building Android XR right now.

You should be seeing exactly what I'm seeing through the lens of my Android XR glasses. Like my delicious coffee over here and that text from SRAM that just came in. Let's see what he said. All right, it's definitely showtime. So I'm going to launch Gemini and get us going. Gemini. What was the name of the coffee shop on the cup I had earlier?

Hmm, that might have been Bloom's giving.

Okay, Gemini, show me what it would take to walk here. It'll take you about an hour. Okay, I can get some steps in and these heads up directions and a full 3D map should make it super easy.

I'm excited to announce today that Gentle.

Monster and Warby Parker will be the first eyewear partners to build glasses with Android xr.

All right, so I would give anything.

To be at the next Apple board meeting because you've got Sam Altman saying, I'm getting Johnny, I'm going to do devices and I've got Google saying, imovie, get out of the way. We've got much better AI driven and what's next? Like, oh my God. And this is where Apple should pay the price. They haven't done anything to even try crazy Salim.

I mean XR glasses. It's about time that we've got some good AR up and running and. But it's going to change our behavior, right? So every day as I'm walking down the street, do I have education mode on, do I have gameplay mode on, Do I have entertainment mode on? I mean it's going to become the major educational partner if we let it, you know, Wabi Parker coming in. Maybe they'll look good, maybe they'll look fashionable, maybe you won't look like a geek if you're wearing them.

I don't think anything can help you not look like a geek when you're wearing those glasses. But I was playing with the meta. The meta glasses, Peter, that you handed a 360 last year, they were amazing. They look like good sunglasses, they act like good sunglasses and they've got all this of this AI capability built into them and it was really quite fascinating to see. That was just like version one, the next level versions are going to be 100 times more capable with AR built into the middle of it. I think this is going to be quite a game changer around this. I think it'll be really amazing to see the use cases and the potential utility is off the hook.

Day I get the strangest compliment. Someone will stop me and say, peter, you have such nice skin. Honestly, I never thought I'd hear that from anyone. And honestly, I can't take the full credit. All I do is use something called OneSkin OS one twice a day, every day. The company is built by four brilliant PhD women who've identified a peptide that effectively reverses the age of your skin. I love it. And again, I use this twice a day, every day. You can go to Oneskin Co and write Peter at checkout for a discount on the same product I use. That's Oneskin Co and use the code Peter at checkout. All right, back to the episode.

All right, let's hit a few. I'm gonna exit out of the Google I O summary there a lot of amazing stuff and kudos to Sundar and Sergey Brin, the whole team there for the work that they've done. They really came out on top this week. And if you look at Polymarket, you know who's going to be leading AI by the end of May. The Polymarket results Show Google at 80%, Anthropic at 19%, Xai at 1%. Okay, seems rational and reasonable. And then let's take a look at what Polymarket predicts. By the end of the year 2025, Google is still on top at 38%, OpenAI is back at 26% and Xai is at 23. That makes sense. I think for me OpenAI is going to. This is a battle between the two of them. And then of course you've got Elon coming out of right field and you never bet against Elon is my, my mantra here. Any comments on this, Dave?

This is the most entertaining thing in the world to watch. But you said Google's, you know, back on top, but look, they were number third, number three March on this chart. So everyone had written them off. And you can actually put money on this if you want to make a living out of betting on who's leapfrogging who. But at this stage, despite this chart, it's just a four horse all out race, everyone going as fast as humanly possible. So I don't think the short term trend which vaulted Google to the top, it's going to actually flip many more times over the next year among these four players.

But there's this level of intense energy we haven't ever seen before, and it's what's accelerating our AI future.

It's the most important race in the history of human innovation. The implications are so much bigger than the past races we've seen. So the amount of money, the amount of energy, the short timeline, it's. If you want to track one thing and enjoy it in your lifetime, this is it.

I'm going to just hit on a couple of more VO slides. We saw this side here, but you made this one, Dave. Tell us about it.

It was my very first ever VO3, so I just wanted to memorialize it.

Okay.

And catch.

What was your prompt?

It's right there. Make me a video of data centers getting overrun by dinosaurs. I couldn't believe how good it was. No reprompting, no tuning. It's just. This is what it comes back with. But I had Chase, Lockmiller and Crusoe and project Stargate in the back of my mind because Chase has become a celebrity overnight. More power to him. He's our fellow MIT alum and Crusoe, he's the. The company building Stargate in Abilene, Texas. So I was watching the video of this insanely large amount of construction. The electricity, the pipes, the power generation, and now the chips are going to start coming in. And that's worth following just as a storyline by itself. Chase is a great, great guy. He'll be another kind of Mark Zuckerberg character for a long time to come. We should bring why I wanted dinosaurs to be overrunning it before it's even 10. But it's. It. It was just what was on my mind.

All right, there's one more VO3 I need to show, and I find it fascinating. All of us, you know, evening tv, you see these pharmaceutical ads that are ridiculous and they spend a lot of money on these ads. Well, this is an example of a pharmaceutical ad made for 500 bucks instead of $500,000. And just take a quick listen to this one.

I tried everything for my depression. Nothing worked.

Every day felt heavy. I felt trapped.

Then I tried peppermint.

Our prescription helps your body secrete a special pheromone that attracts puppies.

The commercial goes on, and it's hilarious, but I mean, it's like that for me would be the equivalent of an ad campaign for some. Something that makes your. You know, Never mind. I'm not going to go there.

All right. That looks jaw droppingly real.

It did. It did. Okay, so this is my favorite. This is my favorite Google IO piece. And this is for me, the materialization of Jarvis. I want to play this. Look at this. And then let's talk about holy shit moments and how this is going to change our lives.

Can you go on YouTube and find a video for how to fix that?

Of course. I'm opening YouTube now. This looks like a good video.

Place a rubber band over the head of the screw.

Can you go through my emails with the bike shop and find which size.

Hex nut I need?

Sure. According to the email from Bicycle Habitat, you need a 38 inch hex nut for your sprocket. I've highlighted the correct bin for you.

It seems like I need a spare tension screw.

Can you call the nearest bike shop.

And see what they have in stock?

Yep, Calling them now. I'll get back to you with what they have in stock.

I think my brake pads are wearing down. Can you check the manual again and see if it talks about them anywhere?

According to the manual, if you look on page 24.

Do you want to get lunch?

Yeah, give me five minutes. Can you finish what you were saying?

As I was saying, if you look on page 24, section 2, you'll see how to replace the brake pads.

Hey, any updates on that call?

Yep. I just got off of the bike shop. They confirmed they have your tension screw in stock. Would you like me to place a pickup order?

Could you show me some examples of dog baskets I could put on my bike?

Sure, I can help you with that. Just give me a moment. Here are some options. I think Zuka would look really great in these.

Jarvis baby is here. It's better. You know, I want to free myself from holding the phone. I want to have my eyewear and my audio pickups and have it see what I'm seeing. But holy moly.

Yeah. Well, this is a good place for me to make a shout out to all our sovereign leader friends in the Middle east and elsewhere. What you just saw is not actually going to happen in your country. And the reason is because the compute. You don't have access to the compute. You can do this for the next few months, but then all the other use cases that are bubbling up are going to overbid you for that data center space. And then your population is not going to be able to do what they just saw unless you have some kind of a national compute plan. And like we said last time, about 180 out of 200 countries have no plan whatsoever. And you have to get on that right now if you want what you just saw to actually exist in Your population and they're going to be screaming for it. Wow.

It is, it's magical powers, it's superpowers. That's so true. We are so compute limited. It is the currency of the future. It's oxygen for us.

And it's a basic human right. It's going to be more important than other basic human rights within a year or two. And populations don't recognize that today, but once they experience that and then they're deprived of it, then they'll all be all over their leadership.

Wow. How quickly a miracle becomes something we expect and, and, and feel like we deserve. Salim, what did you think of that?

The video is amazing.

Once you can get all the billions of little YouTube clips activated and useful in this kind of seamless way. Holy moly. That's pretty incredible. I want to touch back on what Dave said though. You know, it's incredible what's happening in this realm. And then you look at country policy for most countries and they have, they're like unbelievably backward. I was talking to the head of state of one of the country that's emerging, that's about to become a very big, very wealthy country. And their first idea was let's build a call center.

And you're like no.

Four generations, let's at least get it into the 19th century. Forget the 20th century, you forget the 21st century. And this is where I think smart people at government level are going to need to be there to really change the game. Because almost every country in the world does policy defensively and reactively. Only two places do it positively and forward looking, which is Dubai and Singapore. And honestly they don't do it that well. And so imagine you had a really forward looking policy in any country. You could really change the game. So I think one or two or three are going to start doing it and then we're going to see this general transformation in government. But boy, this is going to change the. I think this will be the forcing function that drives that transformation. So that's very exciting.

I want to add, you know, listen, when I think of this as Jarvis, the countervailing partner to Jarvis is Tony Stark, right? Tony Stark is this radical billionaire who has access this incredible AI capability. But guess what? This capability is now available to everybody. We're demonetizing and democratizing our vision of this future. And that's extraordinary. And you know that's going to weigh in on you winning the bet here. Celine versus I was just about to.

Say we'll get into that another time.

Well, we have to finalize, I think, with. I think. I think we're done.

I don't want to give away too much of. All right, well, let's finalize the bet first, and then I'll tell you why I'm going to.

All right.

All right.

But I do, actually, Peter, I want to. I want to tell you, like, we're in a. We're in a. You know, between Salima, New York, me at MIT and Unla, we're booting up a new company right now that takes advantage of. You saw that synthetic ad is just as good as a real ad now. But we ran some tests over at Everquote using celebrity ads, and they work incredibly well. One of the problems you run into with LeBron James is that his peak click through rate, or his peak impression value, is right during the playoffs when he can't go to a studio and shoot a video. And so we tested two things. If you make a synthetic LeBron James at peak season, what's the click through rate? And it's incredible. And then also if you make thousands of variants of the ad where LeBron is doing different things, maybe different languages, just different messages, that also incredibly drives up the value of the ad. So what we're working on right now is a company that makes basically, the celebrity just needs to check a box and collect money, and they don't have to show up and shoot anything. Everything else is done by AI Super. And that'll also get a lot of your LA superstar movie star friends who you see all the time. They never show up at mit, only will I am. And, well, they don't show up for.

Anything half the time. They always show up their own movie openings.

Yeah, well, you'd be amazed if you get like, will I am or anyone to show up on MIT's campus. The students come out by the hundreds. They just way overreact to a celebrity. So I'm really excited about this project. Dragging. There's the handful over to the campus.

I love it. Here's a quick, fun tweet from Dario saying 2026 will see the first $1 billion company with one human employee. We've been predicting this for a while. I get it, and I agree. I don't know if you guys.

Two years ago, you and I were launching the Exo 2.0 book, and we said it would take three employees and AI to deliver. So that's now shrunk to one. It'll soon shrink to zero, by the.

Way, with agents in crypto.

Yeah, well, who gets the money that's interesting, the agent.

This is the whole Dow kind of paradigm coming to life.

Distributed autonomous organization. For me, probably one of the most exciting things that's coming is how these models are going to help us drive breakthroughs in math, physics, chemistry. So this is from, I believe anthropic. This is the prediction on when disciplines will be solved. So pure mathematics being solved by 2028. This means all of the unsolved math challenges out there are getting solved by AI. Let's move down. Computational chemistry by March of 29. Medicinal chemistry leading to candidate molecules by October 2029. Material science is being solved by 2030. This means you're able to say I need a material that has these thermal properties, you know, these, you know, cost properties. That's insane. Cell biology core pathways by May 2030 and climate earth modeling systems by 2033. This is the non linear inflection that just, just explodes all of our expectations about the future.

Look, look at that little note where it says most diseasable curable by in two and a half years. Right? That vertical line. That's crazy.

Well, this is, this is what we saw. Demis Hassabis state they were going to have all diseases cured within the next decade.

I'd like to see in say pure mathematics or computational. I'd like to see which breakthroughs they expect to achieve because I'd like to say the discipline is solved, but I'd like to see what specific milestones they're expecting to hit there. So anyway, we can worry about that some other time. But this is amazing overall.

Yeah, this is where we desperately need Richard Socher as a guest because he's mapped out the timelines. It'd be great to get his opinion on whether these timelines are accurate or not because they're mostly gated by simulation modeling and synthetic data, and that varies by different discipline. But we've known that quantum computing is really, really important for, for material science and for chemical reaction simulation, which is the full cell simulator. So the timeline and the, and the technology is probably somewhat predictable now.

That's why I love getting, getting on this podcast with, with both of you guys to really, you know, consider what's just happened this past week. And you really do help me contextualize it. And if everybody listening here, I hope you're enjoying this because Dave and Salim and I are pouring our hearts into this. We're making this our priority every week to really deliver to you what we've seen, what it means. So please join us in moonshots as we move this forward and as we do every week, let's talk a little bit about crypto and bitcoin. This was a big one. Bitcoin surpasses Amazon and Google's market cap. It's been a big week for bitcoin as well. Salim, are you happy?

I'm getting happier by the day, as the thing goes. For me. This is the definition of democratization, because every single individual in the world can own bitcoin and it's very, very hard to own, say, gold. And so this is, I think, a huge trend in the right direction. And we could have a whole dedicated episode just on the impact of this on fiat currencies. That might be with Jeff Booth as a guest and just talk through. What are the implications for how we've been doing things for 50 years with Fiat currencies having enormous stress? We saw this week the struggle in the Congress to pass a bill that's just going to blow the debt open. And so there's big implications for all of this.

Yeah, we'll see bitcoin surpass Microsoft as well. It's got a while to go for beating out gold, but it will get there as well. And of course, this week we saw a Surge. Bitcoin surpassing $110,000, setting all new time highs. Just an extraordinary time to be alive, as we say every single time, you.

Know, we talk about the value of markets, $50 billion of Bitcoin gets traded every day.

That's.

That's the staggering number. I mean, it's incredible.

Yeah, I know one first, I know one person is very happy, and that's Mike Sailor. You know, I haven't seen, I haven't seen micro strategy stock continuing to peak at the same time that bitcoin's been going up. That's interesting if it's dislocated from, from bitcoin in some fashion, but that's a different conversation. Thank you, everybody, for joining us. Please subscribe. This is our, our desire to deliver to you the news that is transforming how we, how we govern our nations, how we run our companies, our industries, even educate our kids and our families. Always grateful and appreciative to my moonshot mates here, Saleem Ismail, who's that way about, about five meters and, and Dave Blunden, other side of the U.S. and Boston. All right, guys, can't wait to see what miracles are going to happen next week.

So before we sign off, Peter, I just want to throw out a thank you for inventing this podcast. It's getting far, far more views than I ever would have guessed. And for me it's been life changing in that this is so much more efficient a way to reach out to people than one on one meetings getting on stage which I do a lot of anyway. But this has just been life changing for me and just want to thank you for inventing it and also for inviting me to join you in it.

It's part of the family here. I love love your insights brother.

All right.

So fun.

The tech insights coming from you Dave are off the hook. So, so really great.

Oh thanks Lynn.

Have an awesome day. Can't wait to see what unfolds next week.

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