Transcription
Hello everybody. It's Thursday. Welcome in. Who's ready for today's story? We're going to whip around the world of AI, talk about the crazy disruption and almost like extinction level events are happening all at the same time. As well as some really exciting breaking news and some not so good news and some good longevity news as well. Thank you to Tesla, Shaun DK K8, everybody for being here. Let's get into this story.
This is called Elon's final blow. And yeah, there things are beginning to break out there all across the board at once. And disclaimer, not financial advice. It's not that it matters. And a big shout out as well to Adam on Patreon. You're a legend. I recently acquired Patreon and IDSS. Thank you so much. Hope you enjoy your better trading results. That's the key. Again, the asteroids coming and this is a playlist. AI impact uh AI is the biggest story to ever hit civilization in the history of the world.
But let's get into robot and bots news. Robo taxi and bot news first. Uh and yesterday was a big video too. Very well received by the way. All dovetailes into this very nicely. But a little bit of breaking news. This is funny because this is from a crypto magazine. decrypt. Like literally everybody's pivoting to AI now. All of a sudden, uh, crypto magazines are writing AI and robotics articles about Elon Musk. Who would have thought? Anyhow, this one is how Elon predicts AI will reshape everything as early as this year. And AI will surpass human intelligence this year. He also said it in Switzerland this morning, too. And he believes this will exceed humanity collectively. We all know that it's already, you could argue, is here. The singularity is here, I would argue. But he also said pairing advanced AI with humanoid robots could remove labor as a limit on economic output. That is another big statement right there. The question is, how good will these robots become? How dextrous will their hands be? We know their brains will be incredible, but it's the hands and the longevity that really matter. We'll get to longevity later, too.
In other breaking news, too. I tweeted this uh not too long ago, but uh Ashock Elliswami is the head of AI at Tesla, and he just announced literally an hour ago that robo taxi rides without any safety monitors are now publicly available in Austin, Texas. And they're starting, they're basically blending in the cars that run around with no supervision with ones that maybe have a supervisor sitting in the passenger seat. Remember, Austin, Texas always had people in the passenger seat. Never anybody in the driver's seat. It's like a massive big pilot test before the cyber taxis come in April. But there's a couple of things that are very interesting to note, too. Did I add my chart? I did. Yes, it's coming. It's a little bit out of order, but this here is I tweeted, you know, even as recently as yesterday and this morning, there were naysayers and haters and they still are saying it'll never happen. Everybody's saying, "No, it's just all pretend. There's always a supervisor." Well, they're not supervisors in the cars anymore, which is incredible. Also, on the tracker, they are adding eight cars now a day. This thing is going to go hockey stick real fast. It's currently the fleet is 215, but three days ago it was 201. So, and yesterday they added eight cars. I don't know if they are unsupervised cars all together, but the point is it's happening. This is a historic day for Tesla shareholders. Thank you all for having faith. We went through hell and back over the years, especially in the last 12 months with all the EDS and everything else. But anyway, who cares? Haters actually they energize me. So bring on the hate. I use it to power myself up and get very excited every day. And look at me. Shout out to Wire Tesla who put this funny little meme together. Look at me. I am the captain now. Get used to it. These things are going to be rolling around everywhere. They're already testing the real cyber cab in 13 different cities at the same time, too. And Elon this morning, a couple of key clips. A lot of it was stuff we knew before anyway. But he said w cyber caps will be widespread in 2026. Literally widespread in North America, USA. You'll see them everywhere. Okay. They've got the technology to ramp these things like scolded hot cakes. By the way, the number of Tesla robo taxis is about 10% of Whimo right now. Whimo have been doing this for 10 years, but differently differently. Not using true AI.
Also other breaking news too. FSD launches in EU and China potentially in the next 30 days, next month. And that is a big piece of news too. So very exciting. Again, risk happens fast, but so does this type of AI impact too.
Now, in sad news, though, I remember listening to the CEO of Uber coping so hard. You can always see cope on the face. It's hard to hide people who are coping but this is kind of like almost the last three months last I don't know how many months the last month or so for uh sorry the last month Uber andyft both following the same trend and that is down today also both are down has arrived which will impact their businesses and the world forever So, um, it's sad to see, but you can't say you weren't warned.
Anyway, let's get into AI and LM. Some other big news here, and this is also part of the the theme is kind of how things are being disrupted. And the things that are being disrupted aren't what you would expect. They're a little bit different. They're happening actually at the big enterprise level. First of all, I've been saying this for a long time now that this company is in trouble. Not the only one. People like Brad Gersonner and others pegged it as well. But you can tell also just by looking just, you know, a lot of weird weird ju guu going on. But now this guy Sam Ultimate is begging for cash. He needs and his next open a round for $50 billion. He needs to raise $50 billion at a 750 to 830 billion valuation. And he's going to the Middle East because you know what? The West is not giving him any money. But the Middle East, they fund things like Lucid makes no sense. But anyway, if there's any Middle Eastern investors watching, do not invest in this. You're just throwing your money away. And that's financial advice right there from a guy on YouTube. And let's check out the reason why this is the amount of burn. Yeah, they might do say 10 billion in revenue, 12 billion in revenue, whatever. But when they're burning, you know, 15 billion, 20 billion or more and accelerating to 50 billion uh by 2027, 2028, their burn is going to far outpace revenue. And remember, that's revenue. But the green one here is the amount that they've raised from funding and then cash burn. Cash burn eclipses everything else. And the core issue is fundraising. Is it going to outrun the losses? The answer is no. Are they going to be able to make a sustainable business? No. In fact, Rivian burns a ton of money. One of the record burners in the history of the world. These guys put them to shame. You'll see. And uh CNBS is talking about how the Open AI chair Brett Taylor says AI is probably a bubble. Expects a correction in the coming years. This is the chair of OpenAI and the board of OpenAI are allegedly feuding a little bit with Sam Alman. So it's just a very very prickly potato. Either way, something's going to break and open AI losses are impossible to hide. This from Grums. George Noble, billiond dollar hedge fund founder and Fidelity overseas says OpenAI is about to fall apart. They lost 12 billion dollars in a single quarter. Traffic is falling second month in a row. Salesforce ditching chap GPT for Google's Gemini. And top leadership and devs are quitting. And then there's Elon Musk's $134 billion lawsuit. And they need 143 billion before it's unprofitable. And that's why they're handing the hand hat out or hat in hand or cap in hand, whatever they call it in the Middle East. Giza money. No, they're not. Please, Middle Eastern people, don't be stupid. Don't be stupid. Don't be. Anyway, let lucid be your lesson.
Now, in other news, T gets worse for OpenAI, but it's nice when a plan comes together. And I wish I said for years, I wish I could have shorted this thing. But there will come a day where we're going to be able to perp short maybe pre-IPO stocks, private stocks. Hopefully that would be fun. It's always fun to play both sides. But uh last week I mentioned OpenAI was planning to advertise to shore up their huge holes of 12 billion a quarter. Now OpenAI plans to take a cut of customers AI aided discoveries. Um, hold on a second. Imagine imagine coming up with say a cure for cancer using AI, using Chachib and then Chachib say, "Oh, nice work there, but you did it using our tools. Therefore, we're taking it. It's going to be our IP." I mean, who the hell would trust this platform after this? That is stunning. And Brad pegged it. Shout out to Brad Gersonner. Uh he said, "Open AI is falling apart in real time. I've watched companies implode for decades. This one has all the warning signs. Open eye declared code red blah blah blah back in December when they said Gemini is eating their lunch, etc." Not just Gemini. A hexai Grock is eating their lunch. Gemini is eating their lunch. Anthropic is eating their lunch. Everybody's feasting on the same pie all at the same time. And I'll leave this here and let you draw your own conclusions, but just in case ever in life, and I've always said this, never invest in a really read the slide itself again. I don't know how the slide popped in here, but I'll just leave it here. And you can see all the signs as clear as day, everybody. Important for investing. Now, circular financing. This has been floating around as well for a while of how OpenAI spends three or four dollars to make a dollar and it's just never going to float. And the question is, will it catch up? Yes, it will. And it's okay for those who are actually selling and making money, but eventually there will be a piper to pay and that will be a big problem. There is a huge gap in costs. There's a huge problem with traffic and Gemini is growing again. Anthropic is growing, etc. Long story. It's all going to end in tears. And this is going to be one of one of my predictions coming through in 2026.
Now, it's not all bad though. It's just one bad player in the mix. That's the problem. But one of the things that is happening in Dubai, your United Arab Emirates, they have pushed out a white paper which proposes moving from static rule books and law books etc. to a flexible AIdriven ecosystem that adapts in real time for tech and business changes for regulation tools like a unified regulatory digital something twin for monitoring sovereign governance and in the loop framework to ensure everything happens fast and easy. I hope and it's very controversial when I say this but having say an unbiased truth seeeking AI would make for a better judge make for a better writer of regulations etc than humans that have their biases. So can't wait for that day if it happens. And speaking of this, this was confirmed I think 3 days ago. I didn't mention I've been talking about MacroArt a lot because it's fascinating. But this former XAI employee did get canned because he leaked how MacroArt from XAI is building a full human emulator that we can put to work and that will replace what white collar workers do etc. And this is not public and that's why he got into trouble. But basically jobs are gone and Xi competitors are now know their road map which is a problem. Either way what's coming from Macart is going to really disrupt software and that's what we're going to get into next because this is the second or third casualty at this stage. We'll go through the list. Mag seven section. First of all, SAS, we're talking about the death of SAS. And not only is AI interrupting things like Uber and Lyft and Vinci, Whimo, etc. But it's also going to interrupt SAS software through things like macro hard. I see the way everything kind of weaves together pretty logically. But here are some stunning numbers. That's the Morgan Stanley SAS index. SAS is software as a service. Think companies like Adobe, etc. Um, a lot of people believe that top AI systems, native AI systems can replicate much of SAS functionality and they can connect directly into proprietary data and operate a top LLM and fundamentally change the value proposition of traditional software. Again, I've talked about this a few times here, but now it's really happening. It's really beginning to accelerate this dip. And Sachin Adella kudos to the CEO of Microsoft he says the same thing he's calling an end of software. He basically said software applications are as is the end of software applications as the value layer I bring value. He talked about the agentic world and how apps are becoming passive databases while the AI agents in this agentic world will hold the intelligence make the decisions and do all the work. The apps become commodities while agents become the business. All the SAS software SAS software that's done really well over the last 20 years, 30 years is about to get completely disrupted as well which is shocking.
Now back to other shopping news for the enterprise. the enterprise, the people that buy typical SAS software, they are adopting, and this is an enterprise LLM API uh chart here, but they are adopting AI handover fist, but OpenAI here is clearly doomed. Going back to the previous theme, they've gone from 50% of enterprise API share to 27%. And Anthropic has gone from 12% to 40%. Google has gone from 7% to 21%. And Meta has dropped off the face of the earth. We don't care about Meta. They'll always be last. Anyway, the problem is what's happening next is crazy. And Grock isn't on this list either because Grock is also better than OpenAI. Either way, it's tragic what's happening. And part of the reason it's all happening is because you can do so much more in so much less time. This is a chart from Arc Big Ideas. I didn't share it my video yesterday, but I thought it was very interesting. It talks about the AI consumer operating system or the velocity of consumer transactions. So, if you go back to way back in 1980, anybody here alive in 1980 and way before? Yeah, me and hopefully a lot of people here. But uh you can see here back in 1980 say it would take an hour to buy something and then in the web era it took about 10 minutes mobile era 3 minutes and in the agentic era 60 seconds. So we're now getting a transaction done in 1/60th of the time and that's going to become even faster especially when crypto is integrated with these AI agents where they're going to be able to shop negotiate buy sell whatever on your behalf. It's going to be huge and it's happening. It's not a vision of the future. It's already happening today and you can see the adoption is through the roof and the leaders are changing.
Now onto the chips. I wrote a Substack about chips. I don't remember when few days ago whatever but uh I am fascinated about how Tesla is getting into the silicone business and what it means for all chip makers and Tesla itself and space and data centers in space etc. But Tesla is of course have been designing their own AI chips for quite some time. AI3, AI4, and AI5 will be finished in a month or so. And they're beginning to test the equipment to make it in March. March, we're talking two months away. And they're doing it in two factories at once. They're doing it using Samsung and TSMC. So they can produce huge number of chips faster, cheaper, and quicker than anybody ever before. And they want to reiterate on these chips every 9 months, which is massive. And they design them in-house, update them very quickly, and they avoid reliance on one supplier now having Samsung and TSMC do it both. And this could give them a huge edge in the whole space. It's funny because some people still compare Tesla to a car company. Do you know any car companies on the planet that make their own silicon? But the other thing is Elon Musk is walking the lines and he's finding new ways to fab create wafers, chips, etc. quicker than ever before, which is part of what my whole paper was about and I call this 13th line. Could it be an Nvidia killer? Well, if Elon Musk is right and if they can get AI5, AI6, AI7, AI8 out and if they can scale them rapidly and if they can create their own terraab, we'll see. It will be a very very capable chip better than Nvidia Hopper class and Blackwell as well use less energy and you can use them for multiple purposes. Stick one in a car, stick two in a robot, stick a bunch in a data center on a whatever big machine to work as Dojo 3. And Dojo is back. Good to see Dojo back, too. So, this could really shake things up and this could add at least, if they can pull it off, at least $1,500 per share to the existing market value of Tesla.
Now, quantum. And here we have another bleeding in of the different areas. Everybody's worried about Quantum and Bitcoin. It's like, don't worry about that. you're good for eight years. But kudos to Coinbase for keeping an eye on quantum. They will be building a quantum computing advisory board to keep an eye on what's happening in the quantum world and maybe to see if any quantum breakthroughs could actually have an impact on things like Bitcoin. So, fantastic news there that people are physically investing in the protection of the Bitcoin network. And of course, the Bitcoin protocol can be quantum proofed like anything else. And I'm sure the devs are already working on that.
Now, let's talk about space before we get into longevity and all the other good stuff. We go around the world real fast. This was another piece from the talk this morning. SpaceX and Tesla teams are both working separately to build 100 gawatts of manufactured solar power in the US and they think they can do that in 3 years. Okay. Solar, as I've said, as many other people have said, is a free reactor in the sky. And the US has to find a way to catch up with China. Absolutely critical. That is big news. I don't know what they're working on, but if two companies, Tesla and SpaceX, are doing the same thing in different threads, odds are one of them will crack the code. Maybe together through synergy, they can do it together. But 100 gigawatts of solar power is massive. And if they can do that without using silver or any of the materials that they need from China, that'll be awesome, too.
Now, IPO coming is going to be a big IPO. In fact, it's going to be the biggest IPO in the history of the world. SpaceX IPO bankers have been chosen. All the banksters, Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley will all lead. Now, normally when you do an IPO, one bank will do like Goldman Sachs or whatever. But because this is $1.5 trillion dollars worth the biggest IPO in the history of the world, they need four four big monsters to pull it off which is going to be huge. Space is going to be huge. I would still argue for the next 5 to seven years the TAM for Tesla is bigger but after that who knows who knows what could happen. And space is also getting very big because now Starlink is operational on two and a half thousand jets. If I ever had to fly, and hopefully I never have to fly again, but if I ever do, I would pick an airline that has Starlink. And that's what people are doing right now. That's why, you know, see all these names, United, British Airways, Lufanza, Emirates, Qatar, Air France, Hawaiian. By the way, the Middle Eastern Airlines were the first to adopt this technology. Now, if you're going transatlantic, you need to work in the air. You can get free highspeed internet and it's like 300 megabytes per second which is incredible. So that's happening too.
Now let's get into a new section. Longevity and drug discovery because also in the theme of things happening really fast. We have landed AI drug discovery is here. There's a company called Incilico and they have AI powered drug discovery and they've partnered with a Chinese biotech company to make the stuff. things like a new oral pill that blocks brain inflammation that targets Parkinson's disease and maybe Alzheimer's next. There's probably a lot to this, but the point is they are working leveraging AI as quickly as possible to find cures for things that prevent people from living longer or increase quality of life. And we looked up the actual list of things they're working on. It's quite extensive, my friends. Let me see what else I I can really read this. It's a bit of an eye chart, but they're looking at immune oncology, inflammatory bowel disease, um metastatic cancer, solid tumors, immunoncology, obesity, crass, breast cancer, pain management, a whole bunch of stuff, you know. Check it out yourself. They're going after everything all at once and we'll see. But again, now we have companies that are using AI exclusively to identify drugs to solve nasty problems. The humans have great news. And remember as well in longevity news, this is a piece from Ray Curtzwell. He believes in either 2030 or 2032, we will have the technology to be able to extend life. That is the I covered it in I can't remember I think it was the next seven years how getting to the next seven years is so important next five to seven years you got to stay healthy because after that you'll be able to fix chronic diseases like these ones and make yourself live longer which will be good so you can enjoy your Tesla bags and other assets that you're investing. You can see what Bitcoin price is doing in 2032 etc. Will it get to a million dollars? We shall see. But again, the game now you have to play is to stay healthy and watch the events that are going to unfold over the next 5 to seven years. The most disruptive time and incredible time and hopefully an abundant time that we'll ever see in the history of humanity.
And finally, shout out to Wired Tesla. He put this cool little meme together today. This is Look at me. I'm the captain now. Tesla robo taxis. Get used to those. They're going to come everywhere. Hope you all enjoy the show. Hope you all learned something. I try and share a new piece of knowledge every 60 seconds. That's what I call KPM. Thank you, Martell, Rusted Woods, Zeno, GQ Trader, Cybertruck Crypto, AR, Ron, Hala, DBF430, and Dog One. Appreciate you all. And of course, TD, Shan D, K8. Tomorrow's Friday. Friday Fire incoming. We'll catch up with everything that's happening in crypto. Thank you all. Have a good night. Bye-bye.