Apple-Intel Chip Deal, U.S Adds 115K Jobs, DeepSeek Eyes $50B Valuation | Diet TBPN

The great lock-in continues. We will go into a review of the last few days. It's Friday. We're having fun. We're going to be hanging out here on the stream telling you about the American economic roller coaster. You've heard this story before. It's just nonstop. Okay, so the American economic roller coaster.

Good to be back. We miss you guys.

It's good to be back. Yeah, we got a bunch of stuff going on. A whole bunch of economic news over the last couple of days. Stock market is absolutely ripping. We should be in white suits. Intel's up 20%. Today, so almost. And there's this split between the AI economy and the real economy, the American economy. And there's a whole bunch of different things that like you need to puzzle together to get a picture of what's going on. And then I'm discovering that there are K-shapes within the K-shapes. Even in the real economy, there is divide between different companies. And so I wanted to walk through that. So let's start with the Intel news. It's up almost 20% today on the news that they will be making chips for Apple. There's a report in the Wall Street Journal about this. They've released, reached a preliminary chipmaking agreement. It's not completely locked in, but there's a whole bunch of extra context here that we've been tracking for the last 6 months, 12 months, as some of this was expected. The revitalization of Intel was something that a lot of folks were clamoring for. Ben Thompson, myself, a lot of folks were all hoping for something, and, and plans are starting to come together. So the talks have been described as intensive, intensive talks between the two companies have been ongoing for more than a year. Apple's been talking to Intel. Interesting, of course, Intel and Apple have been long-term partners for what, the '90s, 2000s, up until the Apple silicon program where they started going, Apple started going direct to TSMC. Can they get them back? It seems like potentially in some form factors, but we're gonna dig into it. So they have hammered out a former deal in recent months, and it's still unclear which exact Apple products Intel would make chips for and manufacture them, both its own designs. So Intel has two main businesses. It's both a design shop and a manufacturer. They have a fab and a design unit. In its foundry unit, both businesses have been underperforming for years before Liputan came in as the new CEO and was vowing to revitalize them. And so last summer, the Trump administration struck a deal to convert nearly $9 billion in federal grants into Intel stock, giving the US 10% stake.

Roughly $20, $21 a share. It's now at $125 a share. Yeah. White House has got to be feeling pretty good.

Yeah, huge. I mean, I'm pretty sure Jensen has made over $1 billion on the $5 billion investment. I mean, just today, if it's up 20%, and he must have seen a big growth in that position since then. So, yeah, just today, probably a $1 or $2 billion print. And so the reporting here in the Journal says that the Trump administration was actually key in bringing Apple to the table, putting pressure on sort of both sides to say, hey, let's think about the future of American manufacturing resiliency, reducing Taiwanese dependence on a foreign supply chain and giving Intel a real shot at underwriting the next big fab that they wanna build.

Yeah, NVIDIA got in at $23 a share with their $5 billion investment. So up around a 5x.

Not bad. That's not bad at all.

The guy really needed it.

He paid for Groq with that. That's pretty sick.

Oh yeah.

He just paid for Groq perfectly.

That's why he wired before they actually closed.

Yeah, he's like, I'm up, I got gains. I need to offset these. So Commerce Secretary Howard Lutnick has met repeatedly over the last year with high-ranking Apple officials, including CEO Tim Cook, as well as SpaceX chief Elon Musk, Nvidia chief Jensen Huang, to try and convince them to get into business with Intel. There was a discussion about should Nvidia dual source the Grace CPUs from Intel. SpaceX and Elon's been with Samsung for a lot of Tesla chips, but there's been discussion there. There was that rumor about GlobalFoundries and Elon's always been in the, in and around the fab world and he's obviously going a lot deeper with the long-term TerraFab project. So Commerce Secretary Howard Lutnick was trying to convince them to get into business with Intel. Some of the people familiar with the matter said with the Apple deal, Intel has now signed partnerships with all three. So over the last decade, Intel fell badly behind rivals, this is from the Wall Street Journal, such as TSMC and Samsung Electronics after a series of technical mishaps, leadership changes, and failed attempts a consolidation led outside foundry customers to pull or curb their businesses. When Intel hired Tan in March of 2025— wow, just a year ago— to replace ousted Chief Executive Pat Gelsinger, President Trump raised concerns that Tan's close ties with China would compromise him and called for his ouster. It was a very, very dramatic moment, but Tan won Trump over with a charm offensive. I like that. And the government announced its 10% investment in Intel shortly after. Following the investment, Intel shares price rose sharply on Friday morning. It rose 7.5% to an all-time high of nearly $118 per share. It's up more now. Tan has been reshaping Intel's top leadership ranks in recent months, including hiring former TSMC executive Wei-Jen Lo, a move that prompted a lawsuit from TSMC. So they're not friends anymore. Intel CEO has also ousted his head of product and hired new executives to lead the company's data center processor and client computing units. As well as newly formed custom silicon business. He's also invested heavily in Intel's most advanced manufacturing process known as 14A, and that is the node that Intel is hoping that all of the potential customers will jump together and say, hey, we're going to buy from this if you make it. If you build it, we will come. President Trump personally advocated for Intel to cook in a meeting, which is funny because it sounds like he's advocating for Intel just to cook generally. But he's— no, he's advocating for Intel to Tim Cook in a meeting at the White House, according to people familiar with the matter. Trump said, I like Intel. In January, he said that the government made tens of billions of dollars from Intel deal and that the government's backing of the company had attracted important partners to Intel. As soon as we went in, Apple went in, Nvidia went in, a lot of smart people went in, Trump said. Nvidia, the world's largest chip firm, invested $5 billion in Intel in September, and the two companies announced a partnership. Under which Intel would build custom data center CPUs, the processing brains for most computer systems for NVIDIA. And last month, Elon, of course, announced the TeraFab project. And so Apple relies on TSMC to make chips for iPhones, iPads, Macs, and other devices and is under pressure to find additional chip suppliers. There's also chip shortages, so it could be good to dual source independent of the geopolitical discussion. On Apple's last two earnings conference calls, Cook blamed a lack of availability of advanced chips for Apple's inability to meet customer demands for iPhones. The constraints are expected to continue in the current quarter, affecting several Mac models. Cook said, quote, we think looking forward that the Mac mini and the Mac Studio may take several months to reach supply-demand balance. And after the earnings call, Apple raised the Mac mini starting price. And so TSMC's manufacturing capacities— capabilities far surpass those of Samsung and Intel, makers of other kinds of chips for memory and storage, for example, are more competitive with one another, giving Apple multiple sources of supply, although of course they are memory constrained. Apple's long been TSMC's top customer, but skyrocketing demand for its manufacturing capacity from NVIDIA and other designers of AI chips means Apple no longer has as much leverage to secure the supplies that it needs. Starting in 2006, Apple used Intel-designed CPUs as its main processor of its personal computers, but switched to its own custom CPUs based on ARM design in 2020. That's the dawn of Apple Silicon. And so there's been an incredible economic and financial performance concentrated in just a handful of trillion-dollar tech companies. Intel starting to join and starting to perform like that. There's a few memory stocks. I saw one report that referred to it as the MAG-10, and they'd added a few other AI names to that group. But there's just a few companies that are driving the vast majority returns in the stock market.

We had 3 sort of beautiful weeks where pretty much everyone started saying there's no way it's a bubble. Yeah, look at the revenue growth. There's no way it's a bubble. Yeah, but now people— Steve over at Bloomberg, we can pull this chart up. The concentration. Sure. In this market, you can see the AI Big Ten.

So Mag 7 plus AMD, Broadcom, and one other. Who is that?

Micron—

now make up 40% of the market. Railroads, for reference, during 1835 to 1910 were 63% of the market. And he comps it to Japan, the Nifty 50, tech and telecom throughout various periods of time. And so I was reading this post by— or this piece by Greg Ip in The Wall Street Journal. And he was trying to disentangle what's happening in the overall American economy from the AI economy, what's where is the growth coming from? He sort of back-of-the-envelope did. He said the AI economy grew 31% while the non-AI economy just 0.1%. And he cites a few economic statistics that are recent. Personal consumption, the biggest component of GDP, grew a relatively muted 1.6%. Investment fell in housing, business structures. I think we're building— we're spending more on data centers than housing now or office buildings, I guess. I think it eclipsed office buildings. In factories and transportation equipment like trucks and aircraft. Meanwhile, investments soared 43% in tech equipment. Obviously, that's chips and GPUs, 23% in software, surprising, and 22% in data center.

SaaS had a pretty meaningful bounce back.

Certainly on the revenue side.

Datadog, Atlassian.

Yeah.

There's been some acceleration.

It really was extremely widespread where you had, I mean, you had like DoorDash and companies with strong network effects where the software was not their moat, they still had to go and answer to the market. And some of them got in and out of that in a week or a month. And some of them, it took a quarter or two to show that there's resiliency. Some of them are still beaten up, beaten down. But overall, software is still doing very well. On the flip side, there's another headline that hit the Journal yesterday. US adds 115,000 jobs in April with solid hiring across sectors. Retail, transportation, warehousing, and healthcare all showed strong growth and led to expectation-beating jobs growth. And so this is the weird dynamic that, you know, you're seeing all of this growth in the AI economy and yet the overall employment is still chugging along. We can pull up the chart from the Wall Street Journal, but The US job market blew past expectations in April, buoyed by gains in industries including retail, transportation, warehousing, healthcare. Not completely unexpected given that those are not particularly AI-targeted areas, whereas you might see, you know, the layoffs in the tech community. But that doesn't— it's just not enough because the US employs over 100 million people. And so a layoff of 4,000 people at some tech company just doesn't really move the needle when you're talking about—

Breaking news from Gabe in the chat. Texas Roadhouse is up.

What? Why?

He says 20%. I'm seeing 15%. Either way.

Why is it up so high?

He says you're not bullish enough on Texas Roadhouse. I have never been.

Maybe they beat— Yeah, yeah. Everyone says this is a Kuriyaku filter. It really is.

It's crazy how viral that meme format has gone. I thought that was just like a thing that I sent to you because I'd be dying laughing about it.

No, no, it's quite popular. Broken containment fully. The American economy added 115,000 jobs in April. This was down from a net gain of 185,000 jobs in March, but it was much better than what expectations were for April. Analysts polled by The Wall Street Journal were expecting 55,000 jobs, and the real number came in more than twice that, which is like— it just breaks the narrative a lot. There is this disconnect between like the AI economy and the real economy. I was talking to Sagar about this. It's like in some ways it's like AI is— NVIDIA earnings is holding up the global economy and it's holding up the global stock market. It's not actually holding up the economy if you view the economy as all of the different jobs and activities that happen. Even if there isn't incredible growth there, there's actually a surprising amount of strength and resiliency. So the unemployment rate stayed—

Personally, I'm waiting to hit the gong long until we see what the revisions come in at.

We haven't seen any revisions from March this time.

I don't know. Maybe it comes like, it comes like, it comes like over 6 months later.

The April report coming in after strong job gains in March shows how the labor market is holding up better this year than last. While healthcare is still leading the way in job gains, other sectors now appear to be picking up. Businesses are seeing conditions stabilizing and they have weathered the tariffs, so many are hiring. It's looking somewhat better than it did last year. Diane Swonk, chief economist at KPMG, says it's still a high-anxiety job market. Those who have a job are clearly clinging on, while those who are looking for a job are feeling frozen out. I was digging into, you know, where is their strength within the real economy? Once you go outside of AI, what is going on? And there were two recent earnings reports that were sort of disconnected, but showed a little bit of the picture of what's going on. So it was Whirlpool and Six Flags both had very different reports. So Whirlpool, you probably know from refrigeration and washing machines, dryers, that type of appliance. They've been making appliances for over 100 years. And they've also been paying a dividend since the 1950s consistently. They've never suspended their dividend, even through all the Great Recession, the dot-com crash, every year they've been able to pay that dividend. They just cut their dividend, which is a really, really big deal for this company since it's a dividend stock. The stock traded down on the news. And the stock is down 80% over the past 5 years. And they're in some financial trouble. Like, they have a lot of debt. And they have a lot of competition. But you could play that as like, OK, the real economy is like completely chugging to a halt. At the same time, You had Six Flags, which should be the thing that is the most discretionary, like, do you go to the roller coaster theme park or not? And Six Flags just reported higher first quarter revenue. They're growing, and they're growing attendance and customer spending. And so, now Six Flags, it's not exactly a juggernaut of business. It's only worth $2.3 billion. And the stock is down over the past 2 years, about 50%. But the business is growing. And you wouldn't expect that during a time of like, deep economic weakness. And so, there's something odd going on there where as you think of refrigeration as extremely necessary, roller coasters as the ultimate, like you don't— you can definitely skip it if you are cash-strapped, but the actual dynamics of the market are very different. So, Whirlpool sells big-ticket necessities, these refrigerators, but they are deferrable. So, you can put off getting a new refrigerator, you can repair an old refrigerator if money is tight, but your kids are only really roller coaster age for a limited time. Whirlpool also faces brutal global competition, and existing home sales are down 3% month over month. All of that drives fewer appliance upgrades, and they are not necessarily beneficiary of all the international competition that they face from LG and Samsung and other international players. I've sort of—

Quick correction, Six Flags, or new information, Six Flags has been up since around November, it sort of bottomed. Travis, I remember I was thinking of this 'cause one, they have the ticker FUN, which is fantastic. The stock has not been having fun, but Travis Kelce and a group put in $200 million.

That's right, we talked about that.

The stock traded down pretty substantially.

Yeah, I remember that.

After the investment, but it's basically recovered to where it was. Yeah. And it's—

Well, it's still down over the past like 5 years. 2 years ago, it was like a $5 billion company.

Yeah, down big.

But what's interesting is that at this time of economic uncertainty, and all these questions about hiring, questions about economic resilience, they are increasing revenues, increasing attendance, increasing customer spend. And that's what's driving the stock today. And so I was looking at these 2 companies, and I was like, they sort of fit into this barbell thesis of the AI future, which I've been seeing pop up more and more. And the two examples that I always give are, one, the Ellison family is both like long slop and long anti-slop. They have a ton of infrastructure investments in AI through Oracle, and then they own legacy media like Batman, Superman through Warner Brothers. And then Josh Kushner's doing a similar thing with OpenAI and the San Francisco Giants, like two completely opposite ends of the spectrum. So you can think of roller coasters as potentially like anti-slop slop because you can't vibecode Space Mountain. But it's interesting to sort of like dig into the weeds of what's going on in the global economy, in the American economy, and seeing like where the unsuspecting winners are. Ryan Peterson shared a post from the— or chart from the Financial Times that perfectly illustrates our possible futures. This is so funny that this is in in the Financial Times, but they fully embraced what happens in the human extinction tech singularity and the end of scarcity tech singularity. In the bull case, real GDP per capita goes north of $1 million, and in the human extinction scenario, it goes to zero, of course. But the AI-boosted growth path is a steady trend upwards, and that is the goal that I think everyone should be working for. Potentially the end of scarcity outcome as well. And I think this chart that Ryan shares is sort of, sort of, I think, why there's anxiety in the market because there's this, you know, the whole like you're not prepared if it's not a bubble concept. But there's, there's like a dual anxiety where like if AI gets too good, there's mass unemployment. Everyone's worried about that. But if AI is a bubble and it collapses, you go into a recession and everyone loses their job and like you're in a similar scenario of like economic anxiety. For both the— not necessarily the true doomers. Obviously, they face a similar opinion, but even if you're just in the it's overheated camp, there's real risk to the stability. I think that's where a lot of the bubble concerns come from, although we're certainly not seeing very many signs of the bubble. Obviously, the valuations are high, but so are the revenue growth charts. So we can go through some of the folks that are arguing.

Before we do that, are you more of a back-of-the-envelope guy or a napkin math guy?

Oh, that's interesting. I have a napkin here from Wonderco from the event I brought in.

Would you look at that? A little souvenir.

I like a napkin. I like a napkin. Actually, now that I'm thinking about it, napkin math is insane. It's extremely hard to write on a napkin. Totally. It's way easier to write on the back of an envelope.

Yeah, you got a lot more space.

And you can get a big envelope. You can get an envelope that's 8.5 by— it's effectively a spreadsheet.

An envelope is sophisticated. An envelope is kind of a core business utility.

Yeah.

Napkins can be used for anything.

Yeah, if you're in napkin math, you got to pivot.

I will say I'm much more of a napkin math guy.

Why?

I can't— I mean, just— The phrase that you pulled? Spiritually, spiritually, and the phrase that I pulled. But if I can't get excited about an opportunity based on what can fit on a napkin, then I'm never going to get excited about it.

So you think a napkin is definitionally smaller? It's a less amount of math?

Totally. It's a lesser vehicle than an envelope?

Yeah. Because a big envelope, you could do a full spreadsheet on. Totally. You could write out comps and have multiple cells.

No. So in practice, I'm a napkin guy. Math guy, but if something was really serious, I would probably pull out the envelope.

Yeah, we've been doing too much napkin math around here. Time to pull out the big guns. Let's get out the envelope.

Speaking of envelopes, so this morning I was telling Tyler, yeah, I'm incredibly overwhelmed with Slack, emails, you know, DMs on every platform, LinkedIn DMs, Instagram DMs. XDMs, all the different messaging apps. And I was thinking, how cool would it be if there was a service where you connected all your inboxes to, and then every day they would print out all the different messages and then bring them to you. And you could put, um, like a box. Yeah, you could put a box outside of your house and they would just put them in there. And then at a specific time, you know, maybe in a roughly like 2-hour window, You could go out and grab all the printed out messages and sort of like leaf through them, decide what you need to respond to. You would potentially, because you're only getting messages once a day, you would probably be a lot more intentional about what you wrote back and forth, right? And I think that could be—

Sort of the opposite of Earth Class Mail, those virtual mailboxes, 'cause they'll take your physical mail still.

Yeah, but I want everything, I want everything to be in this box. I wanna put a box, outside of my house that people put. And I think there's something there.

Yeah. Trump, I mean, Trump literally does this.

He does that, right? Yeah.

He gets emails printed out, and then he'll write with a big marker his response, and then his assistant will scan it and then email it back.

Yeah.

More on— C Fry says a napkin is more available than an envelope. Very true.

Yeah.

Often the best business meetings were not scheduled as a business meeting.

So there aren't envelopes around. There's napkins.

There's no envelopes around, but there's plenty of napkins. Yeah.

Also, I mean, you're saying napkins napkins are smaller, but if you're at a restaurant and you have like a fabric napkin and you want to fold that, those can be pretty big.

So you're— but I feel like it's bad form to be at a restaurant. Like, you're not supposed to ruin the napkins. Or do you carry a pen that has washable ink?

You have the crayons for the kids, right? People are—

The chat is saying—

They don't ask you to—

Chat is saying I could call my service the United States Postman.

That's a good name.

Thank you, Alex. That's a great name.

That's sort of like the San Francisco artificial intelligence company. Or something like that, or the browser company of New York. It would be inspired by that, yeah. I think that even with the set of kids—

He uses crayon, closed-fisted grip, right on the tablecloth.

Right on the tablecloth, okay. Yeah, I feel like if you're given crayons, you are expected to maintain that the child uses the crayons only on the children's menu, which is typically made out of paper, very disposable. If you see the child using the crayons on a cloth napkin, you are expected as a patron to intervene.

Jackson says digitize this service and call it email.

There we go.

We got to, we got to get, we got to establish the mailbox first. We got an idea, but then we can go there. But I like where you're going.

Well, there's some other, there's some other posts about the markets. Justin Spittler says, then be careful buying semis here. Obviously, the market's It's very, very—

pull up this video, Travis.

Let's play this video. Oh, this is Travis Pastrana.

Yes.

That's amazing. Nitro Circus, we mentioned many times on the show. Is he drinking a Red Bull?

Yeah, no parachute.

No. Oh, no parachute.

Yeah.

So he jumps out of the plane, no parachute.

That's crazy.

Drinking a Red Bull.

That's actually—

and then he connects. He's got to do some tricks.

He's really taking his time here. The tension is building, building, building. And so he connects with someone who wraps him up, and then do they pull the parachute?

Connect to each other?

Or do they—

they, they strap him to them?

Oh, okay, there is a strap themselves because it seems sort of crazy just to bear hug and hope for the best.

I don't think you're better.

I don't know, it's Red Bull, anything could happen. Um, I would, I would, I would expect him to be delivered a full parachute, his own parachute, that he then Dons and, and, but he made it. Wow. Well, that's what it's like investing in semiconductors right now, I guess. Anyway, how was your last two days, Tyler? What did you get up to?

It was sick. I was at the, I went to the trial.

You went to the trial?

OpenAI, Elon trial.

Okay. Walk me through it. You left the studio on Tuesday. You leave the office at 2 after we wrapped the show on Tuesday. You went straight to the airport?

I did.

Okay. And then what time did you go to bed? Because you woke up really early, right?

Yeah. So I got to I got to the trial, so it's in Oakland. I got to the courthouse at, I think, like something around like 5:30.

5:30?

Yeah, 'cause you gotta get in line. So basically, it's a public, 'cause it's like a federal case. Yeah, yeah. There has to be some room for the public. But there's only like, I think the number is somewhere like 20 or 30. 'Cause I think it's closer to 20 because I think part of the 30 is reserved just for media.

OK. And when you got there at 5:30, were there already people standing in line?

Yeah, so I think there were like 3 or 4 people there already.

Okay. Early bird, getting the worm.

Yeah, well, I— because I didn't want to be late, honestly. Did you talk to people? A few of them.

So were you there before Mike Isaac?

I was there before Mike Isaac.

But he has a media pass.

So yeah, because last time when Mike Isaac came on the show, he said that because each like news—

yeah, New York Times got one pass and he was splitting it with Cade Metz. And so they were sort of going back and forth. And I guess he had a media pass that day.

Yeah. So that day he had a media pass.

Yeah.

He got there pretty late. He got there like 7:30 or 8:00. Okay.

So you're there from 5:30. He gets there at 8:00. What time does the trial actually start?

Around 8:30.

8:30.

Okay. Yeah. So basically I'm just posting up for like 3 hours.

Okay. And then this is Wednesday. So walk through like what, what are you seeing? There's these opening remarks from the judge. They sort of welcome everyone in.

Yeah. Jury comes in. Okay. So there are basically 3 main like segments. So basically I'll say starts 8:30, ends at, I think, 2 PM. There's 2 breaks, 2 20-minute breaks. Okay. So starts off and we watch like the deposition of Mir Maradi. So this is all livestreamed, right?

Yeah.

The audio is live.

The audio is live. So you're seeing a video.

We're watching the video of her deposition.

Okay.

It's mostly covering the, the ousting, the timeline of the ousting. And, and this is where all the texts came out.

Yeah, yeah, yeah. And were they showing you the actual text? Were they playing a video or were they playing the AI reenactment of the text? Because we have this. Someone turned Sam Altman's text, Amira Murati, into a 2011 style emo teeny teenage heartthrob anthem. Did this make it into the courtroom or no? Let's play this. We have the audio.

Can you indicate directionally good or bad?

Good motion graphics too.

Whoever made this is talented.

What is this? Suno? Can you put in text into Suno and get it to translate?

I'd like to show— play this for an AI skeptic. Yeah. And see what their reaction is.

Is because— How do you see this and not want to build? I've seen these before and I've always really enjoyed them, but with most of the AI music tools, I've never found a great way to put in a full script that I've written to get the results. But does Suno have that?

So the author said his steps to make this. So first, he OCR'd the images and turned them into plain text. So images of the actual text messages. And then removed the names from the dialogue, pasted into Suno, and iterated like 20 to 30 times.

Ooh.

And then finally thought this one was catchy.

Okay.

Yeah.

Put up a version of this with the Gen Z brain rot slang. Yo fam, can you give me a vibe check? Am I cooked or nah? For real, for real. Satya and the gang lowkey stressin'. Murmurati, yeah, you're skibidi. This isn't a rare L. This is an Ohio-level generational aura loss, lil bro. Who ratio'd me? Sam Altman says. Mira Murati, some rando zesty NPC Twitch looksmaxing sigma. I'm not even gonna go further. What else happened? Did someone actually get on the stand or was it all video?

Yes, so the first like—

it's straight up teacher played a movie. It's movie day.

No, I mean the movie day, the judge actually did get angry because like she was like, oh, the jury's gonna get bored and like she was like offering them coffee and stuff. Okay, so basically yeah, the first maybe hour was Mira deposition video and then we go through some of the actual like documents again of the text messages. And then Siobhan Zillis is testifying. So she's physically there. Okay. She was an OpenAI board member, 2020 to 2023.

Okay.

And she steps down when Elon started XAI.

Yep.

I have no idea how long that was. That was the majority of the—

during the whole conflict.

Yeah.

Perfect person to testify.

Well, no. So she actually left the board before the ousting. So she left in February 2023. Ousting is November.

Oh, okay. Interesting. —The timeline always gets so jumbled up because like there's like 2018 battles between Sam and Greg and Ilya and Elon, and then there's the board—

Yeah, because all throughout this hearing there's like, yeah, there's basically two main—

There's sort of two main moments, right? Yeah, and we're sort of clicking back and forth between them. Yeah.

Chat wants to know what kind of wombos were being thrown around. Was Lorraine being used? People saying, can you please Lorraine?

This email, uh, Siobhan was actually dropping some good lingo. I, I don't know.

Yeah, there's something, uh, like Mike Isaac always, uh, talks about, like they keep referencing Dota and they keep— everyone on the stand is using a ton of jargon. How jargony was it? Was it like Dwarkesh Patel podcast level jargon or like actual like researchers like talking to each other jargon?

I would say it was not very sophisticated, especially among the lawyers, right? Um, okay, Siobhan She did drop some good lingo. Okay. Yeah, it was some referencing some like why she got into AI. Sure. But, you know, acceleration and all this.

Okay.

Okay. And then after that, we watched another like hour-long video of Helen Toner's deposition. Wow. That was just about the ousting. Okay. Yeah, it was very fun. I enjoyed a lot. Like basically almost everyone like sitting in my section, which was basically the public and the media. Yeah. Like everyone that came as the public were basically also media. They just didn't get the media pass. Sure. So everyone surrounding me is on their laptop, like typing, basically. Yeah. Just like taking down what's being said. Yeah. And then I'm just sitting there enjoying it because it's like, you know, it's good stuff.

How would you rate Mike Isaac's, like, snack and overall food supplies for the day? Did he burn? It looks pretty good.

I believe he did bring the butt pillow.

It seems like he's not making progress on the food front. I would expect by day 7 of this he would have a smorgasbord. In front of him.

I fasted the whole time. I just kind of—

I just— why didn't you figure it out? We have talked about the food situation so many times. How did you not think ahead there?

I just wanted to make it more challenging. Okay. Yeah. I was like, this is going to be too easy.

Deepseek is raising a monster $7 billion round at $50 billion valuation, making it China's largest ever AI raise. But what shocks a Jaws here, CryptoPunk, the most is the founder. He's personally contributing 40% of the round himself. Wow. $3 billion coming from the founder directly, owns 90% of the company. Unheard of at this valuation. Deepseek was founded inside of his hedge fund, one of China's most successful funds. What a beast. He's got to acquire as much compute to push out new Deepseek models. You know, we saw that chart that showed that Chinese open-source models were sort of falling behind a little bit on a different growth curve in terms of performance. But, you know, he's certainly betting on getting back in line, having a frontier model within a couple months. Zach Brock says, congrats to Anthropic for defeating Grok in the market and feasting upon the compute of their fallen enemy.

Yeah, basically every time we take a day off the show, like something big happens. On Wednesday was the— was the— the big reveal. XAI or SpaceX Anthropic deal. A lot of people have been predicting that. I was— not simply because I thought there— it was like the rational decision for the parties. But I thought that the tension between, you know, Elon, who had only a couple of months ago been, you know, hurling insults at the Anthropic team, I didn't think they would be able to uncover that, those cultural differences. Totally. But demand for compute finds a way.

Yeah, I think that you and others had identified the possibility of becoming a neo-cloud, selling the compute Yeah, last year I was talking about that a lot, all the time.

I was like, look, they're incredible at building infrastructure really, really fast, bringing power online. This feels like a very strong, a strong use for Elon Inc. Yes. And but I, but as things evolved, I just didn't see, I didn't see this coming together.

I didn't see this coming together specifically because of the Cursor deal. I thought the Cursor deal was the long-term solution for all that compute and then the compute sort of got sold twice maybe, but of course there are multiple clusters, multiple colossus data centers. Yeah. And plenty of work to be done as SpaceX continues to grow their ambitions.