Transcription
[Music] Everyone knows that Nvidia and OpenAI are the center of the AI universe, with companies like Microsoft, Oracle, and AMD forming this tangled web of spending, building, and investing in each other.
Uh, and then there's the AI model war, with XAI, Gemini, Claude, and Perplexity all racing to power the next generation of intelligent systems. We have huge data spending, uh, in data centers, over $800 billion dollars announced just this year amongst Apple, uh, Alphabet, Amazon, Meta, like all of them.
Uh, fun fact, I saw one report from an economist who said that if you take data centers out of the equation, the GDP growth that we saw in the first half of this year would have been zero. So, really, AI is everything, or as you might have heard from the very top, "Everything's computer."
Uh, so who else wins in the AI revolution? We found a company whose earnings could double as AI demand ramps up. And we have a hot take on one of these stocks in the MAG 7 that we don't think Wall Street has fully appreciated as an AI play. Today on Dumb Money, we're revealing our trades in the undiscovered AI stocks hiding in plain sight.
This is Dumb Money Live. Hey there, Dave here, along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder, if you don't mind, smash the almighty like button for the AI overlords to, uh, help people find the show.
Uh, Chris, Jordan, I did notice that we are closing in on 165,000 subscribers on YouTube, so congrats on that. Our podcast is more popular than ever. Uh, we have Apple Podcast and Spotify followers, both up 50% so far this year. Uh, and by the way, you can now subscribe on Apple Podcast and listen without ads. Used to be able to do that on Spotify. Now it's just on Apple Podcast. You can find all of our links on dumbmoney.tv.
Happy Friday. It's a big week in the market. Government is shut down. OpenAI and AMD sent that AMD stock up 30%. The S&P and Dow both hit record highs at one point. And this morning, apparently, we needed to go all the way back down to levels we haven't seen, uh, since two weeks ago. What else? What do we, what do we? Let's, let's jump right into this.
Wait, hold on, Dave. I don't think we're on X. Are we not on X? Yeah, I, I don't think we're on X. So, I just want to give you that heads up. Well, let's, uh, click the X button and see if we can immediately go live. I'm not sure. And we have something very important to talk about, but I want to hold until we get on X. Well, and for listeners on our podcast version, you don't have to listen for this delay. I'll cut this part out. It's just you YouTubers who get to see the behind the scenes. Remember when we used to, uh, make YouTubers, uh, wait until we hit like a hundred likes before we would even continue with the show? It still says broadcast unavailable on X. Okay, give it a second. Hit refresh. Well, I want to because I literally just, just added it to the mix and I don't know how long it takes. Did you turn it off and turn it back on again? I might need to jiggle the, uh, internet wires. I'm seeing 47 people. Yeah, we're on, we're on X. Okay, it's, you need to retweet it. Retweet it though. Okay, so I see me saying that we're on X on X right now. It's, it's exception.
I, I feel like a lot of investors have been in the same boat as us. They've been in the AI trade for a long time and they're scouring the earth for something that's undiscovered. An AI trade that isn't, hasn't totally already been hyped yet, right? Uh, that is still somewhat reasonable. Guys, I've looked at everything from chips to ancillary kind of, uh, infrastructure components to stocks all around the world, energy. And I think through a friend of mine, I'm not going to, I'm not going to name him because he didn't give me permission to name him, but he has been so strong this last year helping to kind of identify some of these AI, uh, trades before anyone else. He went really big into Bloom Energy. Really, really big. He got me into Bloom Energy early. He also was the one that initially, uh, got, sorry, I'm, I'm pulling my, I'm pulling my account up here so I don't forget anything. Uh, Iron, you know, Iron, the, uh, the kind of the data center play. Uh, I think it was West Texas. It's like 6x in the last few months. Really early, uh, getting me into that trade. And he's been bugging me about this name for a while. And I finally did my due diligence and I think we might have just found like the biggest undiscovered AI trade in the world right now.
Okay. Are you ready? You know what it is. You know what it is. I know what it is. But that's only because you told me what it is, uh, two days ago. Okay. So, let's, this was, this was completely off my radar until you, until you revealed this to me. Okay. Let's set this up. Hardly any AI trades out there that are undiscovered. We know that there is a massive, massive demand for compute, massive demand for data centers. If you're involved in data centers anywhere, it's highly likely that your stock has already blown up. But Canada is always late to the game. Okay? They're always late to the game. Canada is not a business-friendly environment. And Canada has had some major issues this last year with the Trump administration and tariffs that have made it a really difficult place for hyperscalers to commit to because they don't want to offend the administration. They don't know what kind of business rules will be put in place. So it's kind of like the last super friendly frontier for data center. Okay.
Now, within Canada, there's one region, Alberta, that is relatively unregulated, right, relative to the rest of Canada, where they've been relatively friendly to kind of businesses, especially as it relates to doing data centers. So Alberta, if there's one place in Canada that is going to be the hub of compute, the hub of AI for Canada, it's likely to be Alberta for a whole number of reasons. Okay. Now, Alberta is the Texas of Canada. Alberta is the Canada. You're exactly right, Jordan. Now, I think that most US investors believed, uh, that we would never see a hyperscaler going into Canada for the reasons I already described. But we've gotten to the point now where they are so desperate for what? Energy. Okay? They're so desperate for a place where they can sync big data centers and actually have access to energy, um, that they just don't have a choice anymore. And there was a rumor that leaked in the last couple weeks that Meta is now assessing a massive data center project where Alberta. Okay.
So, if this deal comes together, and I believe it's inevitable, I believe that if not Meta, it will be someone else. And if not a hyperscaler, I think we're going to get every single Canadian data center group going into this region regardless. They're just late to the game. Okay? And there is one company that stands to benefit more than any other in Canada and it's relatively offra here in the US, even though it does trade in the US market. Yes. Now, before I say this, US, it's a US stock and it is offra, but it has gone up significantly from its low that happened within the last 12 months. Okay. But before we name the company, let's just talk about a couple things. The reason why it went down earlier this year is because of the whole kind of tariff mess that we were in, the whole situation between, uh, the US and Canada. Even, even before that, uh, they were having some issues because they way overbuilt for energy. They way overbuilt, way overcommitted to the point where they were shutting down, uh, energy infrastructure. They shut down two huge plants for a couple years because there was too much energy, uh, within their ecosystem, believe it or not. Talk about an insane setup for like data center expansion, right? And so now we have AI and the, and, and then further depressing this stock was the whole deepseek issue that happened earlier this year, right? American stocks in the data center center industry completely rebounded from that. But Canada, they're just always slow, like always slow to rebound.
So I did take a big position in this stock. Uh, I'm heavily invested long. Full disclosure. You guys, did you guys ever get in? I got in. Jordan, did you get in? How about a little bit, but not as big as I, I wanted to. I, I actually had, uh, some options orders that were pending. I don't think they went through yesterday. Well, that's on you. Uh, I'm, I'm the worst at, uh, being a part-time trader. I, I don't, I don't want to be like one of those six screen setup kind of traders where I'm watching every second of the day. I don't do that. I think there is a better than 50/50 chance that a major data center announcement for Alberta that is likely more likely than not to involve this energy company, uh, as, as a major part of their infrastructure, is going to be announced imminently or within the next couple of months, worst case, end of year. Nothing's guaranteed, of course, but I love the asymmetric risk-reward on this stock. It's TransAlta Corporation, TAC. Do not go buy this stock right now. I'm only sharing an insight with you guys. So, when we do this on this show, what we are doing is sharing an idea. We want to share an idea to have you now go do your own research, to poke holes in our thesis, uh, to share your due diligence with us on X, to share it with us, uh, within our Discord. DumbMoney. What's our Discord again, Dave? Or you can just go to dumbmoney.tv. That's where all of our links are. You can find our podcast. You can find, uh, our X account. You can find our individual X accounts. Spec, specifically in the research trade channel is where, kind of, we share stuff like this.
Um, I really, I really want to emphasize, don't just try to mirror the trade. Uh, figure out what the risk factors are here. Figure out the upside, the downside, and then make your own decisions. Do not copy trade us. But it's something that I'm really excited to share with the community cuz I've been working for a long time, uh, attempting to identify a play here. And I want to thank my friend who we'll go unnamed for now. Is it Jordan? No, it's not Jordan. Jordan, I expected this to be you. This feels like a Jordan. This feels like a Jordan play. Yeah. Jordan, where, where have you been? Why didn't you find this? I've been writing software, dude. What? I've been writing software. No, I know what you. Everything I know about this company I found in your software. I think you've been, I think you've been doing triathlons is what you've been doing. Oh, yeah. I did. I did one, unfortunately. That's right. You did one this last week. Congratulations. Uh, Jordan, did Jordan, did you even prepare for? Are you like the one guy that just does a triathlon without even preparing? I didn't much. Uh, I, I'm a cyclist, so I'm on the bike all the time. So, but I started swimming about a month ago. What is the, you, so you started swimming a month ago and then did a triathlon. How much did you have to swim? Swim for the triathlon? Is 1.2 miles and then what did you ride and run? So, the bike was 56 and the run's a half marathon. So, were you in the top 50% of finishers or the bottom 50%? Top 50%. Dude, look at you. I think it was like 15% of cyclists though, which is all I cared about. So, I got, I'm way below average on the swim, though. So, I called Jordan a few days ago, this weekend, I think, or maybe it was Sunday, to talk to him about this trade. Um, and he told me he couldn't walk. He's like, I can't move. I'm like, why, dude? He's like, I, I did something crazy. Well, I've got a torn right ACL and so like for me to do the, the run and the swim were actually pretty stressful for my knee. But, uh, Oh my god, dude. You're you're out of control, man.
Um, anyway, I'm really excited about this trade for, for the reasons, uh, discussed, but also, you know, one thing that I surfaced in my research that is super interesting, uh, is what is one of the big concerns we have about data centers besides finding energy, right? It's cooling. Cooling. That's like the number one thing that everyone talks about. Well, do you know what they use for cooling, uh, these data centers up north, uh, in Canada? They have like an, they have like, uh, outdoor airflow just coming through the data center to naturally cool it. So these data centers are, Yeah. You push it far enough north, you don't, you don't need cooling. You just, you just use the outside. Yes. Yes. So they are supposedly up to twice as efficient. Twice as efficient because of the access to cold air blowing through the data center. Like, it removes one of the biggest issues they have with these high-performance AI data centers. And the only, if they're really smart, they can figure out how to just pop the, the output into people's homes and then boom, you know, you two birds with one stone. Yes.
So, so there's two parts to this trade. Part A is this potentially imminent announcement of finally getting like a big AI data center that might or might not be a hyperscale or might or might not be Meta. We'll find out here in the next couple months. Uh, the second piece of it is they have so much access to energy. Like I said, they already shut down two of their facilities that rather than spending five years to ramp up a new one, which is what you would normally need to do, they can get one ramped up in 12 months that that was shut down, right? Because they're basically being maintained. They have to make certain modifications. But this could be the start of the hub of data center for Canada, okay, in Alberta, that this one company is just basically sitting in the middle of that has meaningful excess energy to deliver to these data centers. Now, I, I kind of mentioned to you guys one of the biggest trades that I lucked into this summer, which was Iron. And if you pull a chart for IRN, they essentially had access to, to, um, energy at a fraction of the cost that the hyperscalers are willing to pay. So they basically are have access to it at this price and are flipping it at this price. And that's why the stock 6x'd over the course of this summer. I think we're kind of in, you know, listen, you got to discount it because it's Canada and nothing is ever as sexy in Canada as it is here in the US, including energy and data center. And they do have a, a regulatory environment that is not nearly as friendly, but as Jordan said, Alberta is kind of the Texas of Canada. Um, but it is kind of a similar setup in that if you're looking for where can we generate compute and where do we have access to the things that we need to generate compute, once you get over the hump that you have to deal with Canada and you're taking a little bit of some political risk, uh, once those doors are open, once they're cracked, uh, once Canada kind of like tastes a little bit of the compute, right, like and all the goods that come with, with being a center for compute, I don't think there's any going back. I really don't. Uh, so they're late to the game. I think it's inevitable that they get into the game. Uh, and I think that this might just be the number one way to, for US investors to play that game in Canada. So, this is my number one undiscovered AI trade. And by the way, it's not easy finding an undiscovered AI trade in October of 2025. Yeah, I, that's a good one. I mean, this, this is the other one you were talking about. I en. Well, that's not my undiscovered trade. That's the discovered trade. That's like the recently discovered trade. Yeah. If, if you look at that chart, up 778% in one year and then if I can get back to that. The problem is, Dave, I can't sell that. I got to hold on to that one for like another, I don't know, nine months, uh, for long-term gains. So, I hope it stays up there. I'd be happy for it to flatline at this point for the next nine months. My charts are so slow. I'm not using Robin Hood today. I'm using, uh, TradingView and it's, they're just not coming up. But here is the other one. This is the one. This is your number one undiscovered, TAC, TransAlta Corp. Yeah. Now, now it more discovered by me over the course of the last, you know, week as I've been acquiring shares. It's not that big of a company. What is it like a five billion? What is the, what is the market cap? Uh, yeah, it's like, it's five billion or something. Yeah, low to mid single digit billions. You don't know. I, I don't pay attention to, to really any of that stuff. Dave, 4.72. I am so good at just like guessing things though. I will say this on a fundamental side because you know I don't like doing fundamental work. Uh, my good friend who's one of, I would say, as good as a fundamental, a fundamental analyst as anyone on Wall Street has done a tremendous amount of work on the fundamental side. He's not like an energy analyst, uh, specifically, but he's done a lot of analyses for energy companies. He believes that they are set up to easily double their earnings on compute, uh, the second that this cycle starts in Canada. So, you know, and, and beyond that, he believes that it, it's, it's obviously durable because it's compute-oriented data centers that aren't going to pop in and go away. And because of the Canadian regulatory environment, it is exceptionally difficult to bring on brand new energy. And the Canadian government has already come out and said, "You want to build data centers here, you better bring your own energy." Right? They're like, "You're not taking energy from our citizens, you have to bring your own energy." What that actually means is that you need to find open capacity. You can't steal energy capacity in an area where it's already fully utilized for Canadian citizens. Okay. So, that's what makes this trade so interesting to me is that they seem to have so much excess capacity ready to go behind the grid. Okay. They can do behind the, and Alberta lets you do behind the grid deals, and that's what's so special about Alberta. So, I think it has all the elements. Um, uh, I think I've covered all of my bases on this trade. There's always risk. There's no such thing as a sure thing. Um, I think it's more a matter of timeline. Do they get the hyperscaler? Do they get Meta? Or if not, do they get a hyperscaler later? And if they don't get a hyperscaler, I think that just means it takes longer. Okay? I think it just means it's maybe not as sexy, but it still happens over a longer period of time. It's really hard to imagine a scenario where Canada is just like, we don't really care about AI and compute. We're just going to, we're just going to sit out this, this game. I just don't see that happening. That doesn't seem likely in any country. It's not just Canada, but Canada just happens this happens to be a convenient trade because we can trade it on the, the US stock market. It's less known because it is over the border and it's, you know, those, those are the, those are the compelling things to me. We know energy is important and it's going to be in more in demand and this particular one has other things going for it. When you're investing in billions and billions and billions of dollars, uh, in these projects, stability is very important as well. And while we can talk down on Canada's, Canada's anti-business, highly regulated environment, which in this case actually kind of works for this company, I think, uh, you do have to admit Canada has a substantial amount of stability where if you're going to build out a massive infrastructure project for compute, um, yeah, we've had, we've had a little bit of political rumble with Canada this last year and I'm sure we'll continue to have that going forward, especially with this administration, but it's a relatively stable place when you run out of places here to easily find energy. And we, Jordan, I know you spent a lot of time on this. There is this gap, this energy gap. We, we think there's potentially some solutions to energy that are on the horizon. Uh, nuclear, you know, small modular nuclear reactors are certainly one of them. They're highly controversial. The timelines are really debatable, but most informed investors believe that those are realistically at the earliest, 2029, just starting to come online, but realistically we're looking at the 2030s and it's not like they're just going to come online and massively scale. Uh, it will be a slow crawl there. So, I mean, Jordan, what, what are, as someone that does spend more time than me just thinking about energy generally, like, like what are your thoughts on this on this thesis?
Yeah, I mean, it's just like pieces of the pie when you think about how do you supply, um, power to any of these things. And you're right, the SMRs, um, you know, kind of, I think the, the fallacy is that people think that these things will be 100% of the power generation for any one particular thing. And I don't think that's the case. I think, um, you know, as these data centers come online, um, you know, the easiest things to power them with is LNG. Um, you know, that's the, it's on demand. Um, you can, you know, these, uh, these plants have capacity. Um, you can augment then with alternatives and, you know, I think, you know, like you said, over the next few years, we'll start to see, uh, modular nuclear reactors being brought on site to assist, so that you're not running these LNG, um, plants as hot. But Jordan, be a part of the mix. The cost is high, right? The cost is high. The cost is about. So for like some of these small modular nuclear reactors, the cost can be like 5x of what you'd pay for an LNG plant. But that's not, you know, um, but that's the thing is that these LNG plants are really efficient, right? They're really efficient and, um, and they can do things at a really low cost for output. Um, but again, you, if you, if you can't get enough, then you've got to augment with some of these alternative, uh, you know, some of these alternative energy sources. The, the energy prices in Alberta right now, it's, it's such an an unconventional region. They are so depressed, so unbelievably depressed right now because they have so much regulatory constraint over what they, they actually have. I learned something this morning. I took a meeting with a guy that, um, has a lot of insight into this, into this company, into this region. They actually have one of the most interesting kind of shell deposits in the world there. Um, that gives them almost like infinite, uh, uh, access, uh, to the means to produce a tremendous amount of energy, but due to regulatory issues, they're not really allowed to utilize it outside of that area. It's the pipelines. They're not, there's like a pipeline transport issue that the government is really strict on. So, it's just one of these really unusual situations where it's not the optimal place. Well, the optimal play would be to have large-scale nuclear reactors, um, in place to be able to handle all the electricity, um, and throughout, um, just, just generally to have these things running for, um, electricity production. It's the cleanest solution. It's the cheapest solution at scale. Um, you know, but it's kind of one of those things. We're too late now. I mean, it's too late to, you know, start like a decade or 15-year-long construction project on nuclear reactors to run this stuff, right? So we're having to rely on LNG and then, uh, probably coal in some places, augment with as many renewables as you can, and then bring on board these small new small modular nuclear reactors on site, um, just to, just to kind of. So Jordan, in Canada, you, they enforce like various clean energy regulations as well. So like you have to, you have to like, if you want to bring new energy on board, it has to be a mixture of things to kind of get your, you know, your clean energy rating down to a ridiculously low level. And this company just happens to have all that, right? Yeah. Yeah. They, so they run solar, they run, uh, wind, hydro, and, uh, LNG. Yeah. They do a lot of hydro, um, it looks like, but, but, but the mix is there. But, but I do encourage everyone watching the show that might be interested in this idea to kick off a multi-hour deep dive due diligence of your own. Read everything there is to read about it. Read the last two to three earnings, uh, reports. Like, do deep research for yourself, okay? Um, and come up with your own conclusions, please.
By the way, guys, there is another, uh, undiscovered AI trade. This is going to be the most unlikely. I mean, I think, I think you know who it is, right? Is it a well-known stock? Yes. A very. Okay, I'm pulling up the ticker now. I'm just, I'm just guessing where you're going with this. Our other. We don't have like a pre-show meeting. We literally got on like one minute before we went on the air. Yeah. Our other undiscovered AI trade is. Hang on. I can't. Okay, I can't pull up a chart. I bet nobody would guess what our other undiscovered AI trade is because it's discovered and I mentioned it even in the, uh, in the cold open. Oh, did you? I, I wasn't listening to you. Sorry. I didn't, I didn't mention it as a trade, but so we got a note about this company, this last week, sent to us, you know, uh, from a friend and the note was that for the first time since they began tracking data for AWS, uh, this company, Amazon, there we go, has raised its prices for GPU meaningfully, meaningfully, by the way. I was like, was it like 10% or something like that, Chris? Or more? 12, something massive. They, Jordan, they raised it more than 10%. Yeah. Um, these are for the B200 instances, okay, for all of their regions. I've been waiting for this to happen, waiting for this to happen. I think now, obviously, all, all stocks, almost all stocks are down today. But, uh, I think this is part of the reason why you saw kind of a bump in Amazon yesterday because this data is widely, uh, available to institutions and so that news came out two days ago. Chris, yeah, news came out a couple days ago, but, you know, it takes some time to digest. Yeah. Get approvals, put trades on. Uh, so Amazon, I've been waiting for this because yes, Amazon's a little bit behind. They are not perceptionally like at the forefront of just AI because of the decisions that they've made. They're kind of, you know, they're, they're kind of, you know, some of the market share is getting soaked up by Microsoft right now, historic. Which, look, I get it, but at the same time, I think Amazon's doing a lot more with AI than you actually realize. You know, one of the products that I think that that they offered recently, uh, this is a, probably within the last month, two months, is that you, instead of running a, um, you know, a vector database, you can run a vector store right on Amazon S3. I love it when Amazon does stuff like this because that is, I think that's disruptive. Um, I started experimenting with it. I think it's a fantastic product. It means that they are prioritizing AI in a way, you know, in this data store, this massive data lake, data storage capacity that, um, I don't think is really being taken seriously. It's not being taken seriously, Jordan. And, and so much about trading AI stocks in 2025 is about perception more than anything else. And Amazon has just not been a perceived leader in the space. Uh, although, is there a company out there that's better positioned with capital to actually continue to ramp up infrastructure globally that already has all the meaningful client relationships, right? They're, they're like right there at the top of the food chain. They know what they need to do. Maybe they should have been a little bit more aggressive in early days, making some bigger bolder decisions as it related to pure AI. Uh, but Amazon is right there. And remember, we won't see this side of the story for a while, but I can't think of a better beneficiary of automation, AI, robotics, all the things that are coming next than Amazon because they have spent the time, the resources, the money over the last decade and a half to build out global infrastructure at a very, very high cost, that will reap the benefits of massive productivity gains that are going to be brought to infrastructure companies like Amazon over the next decade, decade and a half. So I like Amazon right now for so many reasons. Everything that I just discussed, but also people haven't acknowledged it yet, right, Jordan? And this. So are they down today? You think because of the tariffs? Like they're. Everybody's down because the. Since they're also a random retail company that, uh, you know. Yeah. Yeah. An AI company that also sells everything to everyone. Yeah, they'll get harmed by the tariffs. They'll get, they'll get, if, if this thing actually plays out. Who the hell knows if it will or not. We, we, nobody knows what's going to happen when Trump says something like this. It could completely blow over by Monday or turn into World War II by Sunday night. We, nobody knows. So, everyone has to adjust. Yeah. For the risk. Whatever happens, you know, I think, I think AWS is the, you know, I think they're a clear winner. Um, and I personally like what they've been doing with, uh, AI. How is it? I, I obviously am not an AWS user like you, Jordan. Uh, but I know that they announced that they had a partnership with OpenAI and were rolling out like a, a on, like an online marketplace for OpenAI integration within AWS. Did that ever happen or how, how is that? Uh, I'm not sure because I don't deal with OpenAI. That's not one of the ones that I work with because you're, you're primarily focused on Google, right? Yeah. But are you, build, are you still, are you building on AWS right now, Jordan? For sure. Yeah. Okay. Okay. Okay. Gotcha. So you, you have like a firsthand daily insight into this, um, which is, which is somewhat of a nice validation. Um, I think, I think AWS is the easiest of these cloud providers to work with. Um, from like a developer DevOps standpoint, um, I still think people, I still think that's kind of the go-to. Now, you know, when the accountants and business people get involved and where they want to store things, you know, I think other cases are made, but I still think AWS is the go-to for true nerds, for the OGs. Jordan, question. And they raised the prices and you're not jumping ship? Uh, that, that was just for GPU usage. I mean, that's not, um, that doesn't affect anything that we're doing. You got to realize, I mean, like, like I was talking about with this, um, um, with this vector store that they offered with S3. Um, you're talking about taking the cost of running AI down. You know, just like your ancillary services, your vector store, and that can be, you know, that can be a significant cost if you're storing a lot of data and you're having to run like, um, you know, a vector store on dedicated hardware, um, to where it basically takes the cost down to nearly zero if you're doing it on S3, um, using their, um, vector APIs and vector store on S3. Uh, and I think that's a big deal and it's a, it, it lets smaller developers work and get things up and running and then it also lets you run at scale because S3 is extremely scalable. I, I, you know, this is, it's hard to explain to people that aren't developers, but I think it's a big deal.
Jordan, I don't mean to put you on the spot, but are you ready to allow any of our community members to have a sneak peek into the project that you've been working on with a couple of our community members over the? Yeah, technically we're there. So, technically we're there. Um, you just gave me a attorney recommendation yesterday. So, we're buttoning a couple things up on the legal side and then we'll be good to go. So, you don't want to share the name of it yet, correct? No. So, yeah, like I said, we, we just want to button up some legal things and then I think we're good to go. Okay. Okay, fair. So, stay tuned. That should happen quickly. Very quickly, I will say that. Okay. Can you tell me what your proprietary AI, uh, mastermind, uh, uh, financial platform that essentially digs through every piece of information in the world related to every security? Um, I've used it personally and my mind is blown. It's actually one of the coolest things I've ever seen. What does it have to say about, uh, TransAlta Corporation, today's primary, uh, stock that we're talking about? TAC. It gave, um, it does not give stock recommendations. It is not a financial advisor. Um, but it scored high. I mean, it, um, uh, you know, we don't do like buy sell ratings. Uh, we also don't like to say we, but I think it, I think, um, it came out with like a B rating. To what extent is it aware of all the things that we've been discussing on this show and did it have any perspective on that yet? Um, I don't think. Well, let me look at it real quick. Um, you, you look at that. All right. You look at that. I want to give a robot update. Can I do that, Dave, real quick? Yeah. Oh, yes. You were, you were just traveling and visiting new robots that you've never met before, uh, in California. Yes. Uh, so I visited four, uh, new robot companies. New to me. Um, I mean, not new to me, but like, it was the first time that I actually have gone out and spent time with these four different robot companies that are all building humanoids. Various degrees, uh, of progress. Uh, some of them are very early stage and some of them are really late stage. Um, I won't talk about any of the early stage companies that I met with, but, uh, I did meet with one late stage. I've always kind of considered them a top four company in the space, and I don't think I've ever really given them the amount of credit that I think they now deserve because I thought they were weird. I didn't buy into the unconventional architecture of their humanoid platform. Uh, there are a handful of, uh, systemic, like, uh, issues that one would believe about having a platform that's built the way that theirs is that most people in the robotics world think are unsolvable. And I spent, uh, nearly half a day with the founder CEO, Burnt, at 1X. This was, this was yesterday, and I was not a believer for those reasons. And you know what? A couple takeaways. One, uh, well, you know, I have kind of a shared Norwegian heritage with Burnt and 1X. So there's a small part of me that would like to see them be one of the winners. Uh, you have a Norwegian heritage. Did you know that yesterday was Leif Erikson Day? You were visiting, was it? I thought you were Italian, Chris. Three quarters. One quarter Norwegian. So, go Vikings. Yes. Yes. Um, I'm Swedish. Are you? Yeah. Oh, wow. You should have went with me. You would have been invited then. Uh, you would have been let in. So, it, this is, this is the robot that we're talking about, right? Yeah. It's the robot historically a lot of us have laughed at. We're like, "Is it a guy in a suit? Is this thing for real?" No. The, the real issue with 1X historically is that it's a tendon-driven system. And what that means is rather than having a normal like exoskeleton or endoskeleton that's like a hard shell, which is every other humanoid robot in the world, this is a humanoid with a very, I can't get into details because I'm obviously under NDA, but it's a soft shell, very soft shell system that is extremely lightweight in the. Okay. So, it's not just it looks like it's just fabric over a hard shell. That's not the case. No, that is not the case. That is not the case. The entire robot, believe it or not, operates off of a tendon drive. So, thinks of like strings or wires like a pulley system that operates everything, the legs, the feet, the arms, the elbows, the hands. It is has always been thought of as an, it's like the perpetual motion machine of. Is it like a marionette? Yes, that's exactly like an internal marionette system. It's like a human and that we have tendons that when you want to move your finger, it's actually a muscle down here that's doing it. Yeah. The issue with that, Dave, is that a human's tendons are always breaking down. Every single time that you use a tendon, it's it's fraying a little bit and breaking down, but they're inside of a fluid that because we have organic material allows our tendons to rebuild themselves and repair themselves over and over again. Now, what we're seeing in robotics is that there's a massive movement right now towards tendon-based hands. Okay. So a lot of the next-gen bot platforms are going to be using tendon-based hands. Yeah, that makes sense because it, it seems like it'd be really hard to develop actuators that are that small, you know, for all the digits. Jordan, it's extremely difficult to get the actuation in the hand itself. And by moving the actuation into the into the forearm, it gives you the ability to move a lot of that weight closer to the body of the robot, which is better for numerous reasons, right? That's that's how we operate. Like our tendons go through to the hands, right? But, but the, the industry believes that they've solved enough of those problems to do it with the hand. 1X and Bernex, who's been working on this problem for 10 years. He's the mad scientist of tendon research for robotics. He believes that he has solved the problem, uh, to such a degree that they could have a viable commercially scalable bot, uh, based on a full tendon system. And why that would be important is that it enables them to build a bot that is meaningfully lighter and meaningfully safer to be around humans, not in five years, but right now. So, if you believe that this company 1X has actually achieved what they're saying they have achieved, then they will be the first robot company to actually push a lot of bots out into the world, primarily homes, probably at first because it is safe to be around humans. Now, I'll just say this, um, you know, I have a few robot companies I'm invested in and I like each of them for different reasons. I think that Burnt and 1X have a really interesting approach to the market and I feel that it is one worthy of watching really closely. I saw the bot yesterday up close from two inches away engaging with me, doing things that were quite honestly very impressive.
So, where are they with fundraising? Are they doing any rounds anytime soon or they? I think I could, I'll just say what's been publicly already kind of rumored and out there in the public space that they're publicly rumored to be raising, believe it or not, at a $9 billion pre-money valuation. Um, I believe that they're going to be somewhat successful. Do you know how much they're trying to raise? Uh, the rumor was a billion dollars, uh, at a $9 billion pre-money valuation. So, I went from skeptic to, so a quarter of the price of Figure AI. What? A quarter of the price of Figure AI. A quarter of Figure AI. Um, it, you know, it's, it's a big number for a company that was not being paid attention to. But I think that the, the industry has misjudged 1X based on what I saw and learned yesterday. Now, I am still super hype, as you guys know, on Apptronik. I'm really, you have to give Figure a tremendous amount of credit for the video they put out yesterday on their V3 bot. It, while it was a obviously an edited and polished video of clips, you know, uh, they came out yesterday, Brett did, and said that none of it was teleoperated. So it was all AI. Now, was it highly synthesized AI, uh, modeling, what we like to call, uh, um, overtrained modeling around a particular task to get that task just right, probably, but that doesn't matter. You still have to give that company tremendous credit for being able to accomplish those tasks that were put out in that video autonomously. So, so props to, uh, Figure. Apptronik, I, I'm just not at liberty to say anything about what's happening at that company. But I think 2026 will be the year for Apptronik to kind of come out of stealth a little bit and show the world some of what it's been working on behind the scenes, and I'm very excited for that as a Texas company, of course. Uh, I'm equally excited to see the Alberta of the United States. What? What? Texas is the Alberta of the United States. Texas is the Alberta United States.
Now, I do have some alpha on Tesla. Ready? I know everybody loves the Tesla alpha, and I got some for you guys. The alpha on Tesla is that Elon is maniacally focused on Optimus. He is so focused that I heard a rumor yesterday from people that are in the know that the entire Optimus team is working 12 to 16 hours a day, as much as seven days a week, and Elon is there nonstop. I heard that Elon did, uh, uh, spend an overnight like he usually does at the office. I heard that he's obsessed, that he is relentless in getting the architecture for Optimus right. So, will we see Optimus 3, November 6th, like we thought we would? I'm not sure now. I, I think we'll probably see something. I don't know that we'll actually see the full running prototype of Optimus 3 like I was initially hoping based on new intel I received in the last couple of days, but I do hope and think we'll probably see something. Will it be a sim of what Optimus 3 will look like? Uh, will it, will it just be Elon talking about some of the changes at Optimus 3? Will it be the hand? I think we'll probably still see something because I'm getting conflicting reports from my intel as to what and how much we'll see at the November 6th event on Optimus 3. But I am equally excited to see what Tesla pulls out of its hat, not necessarily in the next few weeks, but in the next year with Optimus 3.
So, we have four companies that I will not rank them by the way because it's way too early. But you have got to give 1X extraordinary credit based on what I saw yesterday. I'll also walk away saying this. I really like their CEO and founder, Burnt. I, I think he's a, to me, he felt like he's a mad scientist. That's for sure. It's a bit odd to have that guy also being the CEO of the company, but also kind of cool. Uh, it's very similar to, kind of like, you know, Nick is the, is the co-founder and not the CEO, but heavily and aggressively involved with running Apptronik, and he's kind of the mad scientist down at Apptronik. Uh, so it's a similar situation of like these roboticist OGs from 10 years ago working on problems before anybody cared about humanoids. Uh, I felt he was like a trustworthy guy. Burnt and I, I really enjoyed the time I spent. I really appreciate, uh, them bringing me in with, uh, Scott Walter, uh, who I like to joke around is my personal roboticist who travels with me and helps explain the technical side of of what we're seeing and hearing and reading. He's the guy that gets to see under the hood, and I'm in the meeting usually just listening, and he's kind of interpreting what we're being told for me. But he was there as well. He got to teleoperate the, the 1X unit and he.
He, he was, he was pretty impressed. Uh, I was, I was just super impressed some of the things these robot, the robot did for me. And by the way, like, this is like the old version. It wasn't even like the, you know, the next-gen secret version. I didn't get to see any of that. But I, I'm super hyped to see what 1X puts out next.
But I do think I have a major change in my thesis for home robotics. For a long time, I've been saying that we are years and years out from seeing a bot in the home for very good reasons: safety. You just cannot put any of the current gen or even of the next-gen bots that I'm aware of into the home right now for safety reasons. They're too heavy. Uh, we don't have the safety, safety mechanisms in place to have them operating side by side with humans, except for 1X. Uh, 1X, because it's attendant-driven system and it's a softbot, meaningfully lighter. It's the one bot that has the architecture that they could be in the home in 2026, legitimately in the home.
Now, are they ready to be doing all the stuff in the home? Of course not. So, this is a company that when they get into the home, will be a blend of autonomy and teleoperation. And listen, that's just where we are in the cycle. We still have a tremendous amount of training data that each of these companies needs to improve the foundational models to have these bots doing all the edge case scenarios and to be doing them at a higher degree of precision and a higher level of speed. The only way that we get there is to increase the ability of the neural network models, uh, on these bots, and they need hundreds of thousands of training hours doing massive amounts of diverse tasks.
So, there's a bit of an arms race to produce robots and get the robots out into the real world in whatever capacity you can, whether it's in a robot park, uh, that you control, or whether it's in facilities, or your own facilities, or whether it's in controlled situations in people's homes. And you want to collect that training data over and over and over again. Once you collect enough of it, the bots are going to get better. And in a couple years, two or three years, I think we're going to see the bots that we've all been dreaming of, which are the ones that can actually do things at human speed, at, at a similar degree of precision to humans. Maybe not perfect, okay, but getting wildly close to where, like, that dream of the robot is actually coming true in the next few years. So, keep an eye on 1X. They're, they're a company that deserves a lot more attention in this space. That's it. That, that's my whole, that's my whole thing.
The other companies I met with, it's super cool because I feel like we're, we're, we're going through something similar to what China has been doing the last year. I'm starting to meet with very tiny robot labs of extremely smart engineers that are raising a few million dollars to build their humanoids from the ground up. Are they late? They're very late, but it's kind of cool to see so much experimentation happening in the US where on a single trip, I can meet with three of these startups, right?
So, are these startups, are they building entire humanoids or are they building more components, like trying to be a supplier for another manufacturer? Entire ground-up humanoids. They all think they have a slightly better approach, right? They all think they can do it a little bit better. And because they are tiny and nimble, they have the ability to have kind of like a clean slate. They're not stuck into any architecture. So, but also they probably benefited from being able to watch some of these other prototypes, um, and then kind of glean how they work from just, you know, observation.
Yeah. And Jordan, that's exactly what's been happening in China, right? So, in China, they're just experimenting. They're experimenting. There's, do you know there's like 500 to a thousand tiny little humanoid labs in China? That's wild. I would not have thought that. Yeah. So, you, you have tiny teams doing experimental work, and when you have enough creativity and experimentation in an industry sector, you tend to get breakthroughs. And when you get those breakthroughs in China specifically, they kind of have a government mandate where everything has to be openly shared across all of these robotics companies. So, when you have one breakthrough, all the companies benefit from it. It's something that we've been saying for a long time needs to, we need to see more of that here in the US, and we will.
So, as we start to get small labs that come up with unique breakthroughs, whether it's an actuation or articulation or hand projects, or it could be any number of things, how, how to integrate new types of sensors into, into the finger, uh, ends of the bot, those things will get adopted by all the companies, including the larger companies in the space, and the entire sector will benefit from it. So, I've never been more confident than I am today of the long-term viability of the generalized humanoid sector. I still think there's a lot of learning and work to be done. But it, it's coming, guys. 2026 is going to be a fun year to watch progress of all these companies. So, shout out, uh, to all the roboticists out there that are working on these projects. I am not, you know, I'm probot across the entire sector. I want everybody to win. There's enough business, there's enough TAM out there that everybody could theoretically win if they execute. So, you don't have to pick winners and losers yet.
Um, Jordan, did you find anything out on on what your system said about, uh, TAC? In terms? Yeah, our system thinks it's a good investment just based on their current business outlook. It has nothing to do with data centers. Okay. So, that's what I like to hear. You know why? It tells me, well, it shows that maybe there's a floor on it, right? Um, well, which I already kind of knew, but also, I mean, don't get me wrong, there are investors that are certainly aware of the AI trade as it relates to this company and what's happening in Alberta, but it's pretty, like, uh, early. What that says is that there's nothing, um, there's nothing in the SEC that's, well, they'd be filing 6Ks and I don't think we pull in 6Ks. So, yeah, there's nothing publicly available that would, uh, kind of give that away from the TAC standpoint. There is a shareholder meeting happening at sometime in early November where I think we'll start to get a lot more insight into what is cooking at the company. Maybe we get it sooner.
And this is why I wanted to do this show today because I like, I wanted to give our followers enough time to do their own due diligence and if, if they like it, you know, to take positions, you know, while it's still relatively early for Canada. Um, but that's our trade, guys. Our undiscovered AI trade is Canada, and it's Alberta, and it's a company called Trans Alpha Corporation. So, that, that's where I'm putting my money. But then again, my risk tolerance is crazy. So, do not copy trade us. Last warning. All right. You do like to remind everyone of that multiple times. Yeah. It's just not, you, you can't, you can't win by copying. You have to win by figuring it out yourself. And we are here just with ideas. Totally agree. We're the starting point. We're the nugget of information. Totally agree.
All right. That's it. I mean, one last thing. No, no, one last thing. We have to do this for our next show. We have to, uh, rare earths, guys. It's everything right now. Look at the news today. China is shutting down. Uh, I mean, they are highly controlling rare. We're about to get into a rare earth arms race. And if you are a rare earth company, congratulations. I have heavy positions in some rare earth companies. I actually bought option positions in some today on on the news coming out of China. And I have one that is kind of like one of my favorites that I've been in on and out of for a long time. I actually know the CEO and if we want, we can have him on the show. Would you want to do that? Like one of the top publicly traded rare earth companies. Would you guys want us to have like, we haven't done that in a long time. Would you want us to have like a CEO of a top rare earth company on the show to do Q&A with? Dave, is that yes or no in the comments and we'll, we'll take a poll here. We have Yes. Yes. Yes. Do it. Yes. Okay. I don't think anybody would say no, Chris. Okay. No, if you think it would be terrible to have a, uh, I don't generally like. Well, I don't generally like doing that stuff because I feel that other shows that do that, it's like it's because it's promotional. Like, why is the person on at that moment in time? But this is a person that I met years ago. So, there's a pre-existing relationship and now out of nowhere, this is about to be the hottest darn sector in the world, right there with with embodied AI. Like, rare earth is it, guys. I made a note for the title. Uh, rare earth arms race seems like a, uh, a good title. Uh, hey Trishell, can you help recon? And if Trish is watching today, could you reconnect me to the CEO of this company? Uh, because Trish already offered to do that. He's like, he, he would come on the show. Let's do it. Let's have him on. Let's have it be our next show. The time is now for rare earths. And like you, it's time to get educated on this stuff, guys. This is, Jordan, you agree, right? This is it. This is like, this is one of the most critical bottlenecks, uh, for the next 10 plus years is has to be reversed, right? Yeah. Especially if we're going to, you know, wage economic war with China. Yeah. Rare earth and energy. And China has, has taken energy seriously, too. Yeah.
All right. So, that's, that's next on Dumb Money. Maybe next week. All right. And until then, we will see you next time. We're Dumb Money. Thanks for watching. And I don't know how to end a stream anymore. Just turn it off. Just turn off. You just unplug your, unplug my computer. All right. I've got it. Here is the closing theme song. Thanks for [Music]