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Clearly written by ChatGPT. Some people are into it, but many people are not. Lots of people having fun on the timeline with some memes. You posted one. I guess we're doing porn now and it's AGI. AGI porn. AGI. I just. It was, it was not that long ago. Like the, the fair criticism of this announcement is that less than a month ago Sam made the point that he said there's possibility in the future that we'd have to choose between free education and curing cancer. And he implied that he didn't want to have to make that decision so that he would need about a trillion dollars in order to make sure they had enough compute and so to immediately fast follow with Sora. Very cute intensive feed of AI media fast followed by this announcement which presumably will drive subscriptions, it will increase retention. It will. I think this will be massively popular with women. Right. I think people generally underestimate how, how large the market is for this type of romantic novel. If you turn that into a chat based experience, it's probably going to be hyper addictive. It's probably going to be something a lot of people will happily pay real dollars for. And the question is, why did they have to do this? You can see the business reason for it clearly. A lot of people want this. But my immediate reaction was paid subscription user growth stalling out to the point where they feel like they have to make a decision that's obviously going to be mocked by the entire industry. It's sort of, it makes it much harder for OpenAI as an organization to continue to frame themselves as an AGI. Company or even compute constraint. Yeah, because if there's unlimited Demand on the B2B token side or just like the knowledge retrieval side or the agentic commerce side, you start to think about like, well, wouldn't you just deprioritize that like YouTube certainly has. YouTube could have at some point said, hey, you know, we're gonna go and you know, just eat the lunch of every adult content hosting website because we have better infrastructure, we have a better broad network and we can age verify people and host all that content and just take 100% of that revenue. Basically. They probably could have put all of the adult content hosting sites out of business if they wanted to, but they made the choice not to. And it felt like that was reasonable because it would be growing. Yeah, YouTube was just growing, growing, growing. And you know, yeah, it lost money for a long time, but then it made a ton of money and it just seems like it's been, you know, choice. And I think that my take was that every company has a line where they draw the line. Yeah. Why did they. This. This feels desperate. This is a move that, like, can you, can you imagine the, the management team over at OpenAI, the people that we've spoken to. Do you think any of those people want to be in the adult entertainment business? Seems odd. I. I think, yeah. You make, you know, when, when Grok did this. Yeah. It's not like they didn't. Weren't. I don't know if they were directly mocking it, but the industry was broadly embarrassed by XAI leaning so heavily into this sort of AI romantic companions. Yep. They know how people feel about these. They know how the industry feels about. Totally. Totally. And they still made the decision to come out and say we're. And so what does that mean in. Our reaction to Grok, you know, going into adult content was very much. Well, it does seem like they're behind on catch up. It felt like a desperate move. Right. And we, and we clocked it as something where, well, who are they going up against? Anthropic OpenAI, Google in the foundation model wars? What are those companies never going to do adult content? And so if you can be the biggest, you know, the monopolist in that category, you can probably do pretty well. And we were trying to estimate, Is it a $20 billion opportunity? Is it $100 billion opportunity? We never thought it was a trillion. Yeah. And the demand, the demand is always seem very obvious. Like I expect OpenAI to have like my, my bowl. The bull case for XAI doing romantic. Leaning heavily into romantic companions when the other labs didn't want to touch it was that they could probably get to. If they really went hard on it and they iterated on the product, they could probably get to $1 billion run rate on. On romantic companions. Yeah, I think the market is there for that. Does it support a $200 billion valuation? Xi's current valuation? No. They're going to have to do a bunch of other stuff. But, but again, I just. You, you, you get the sense that OpenAI has wanted to be thought of as the Apple of AI. You saw their super bowl campaign. Definitely not the Apple AI now. Yeah. Did you know this Steve jobs quote In 2010 he went on stage talking about the iOS app store and he said, we do believe we have a moral responsibility to keep porn off the iPhone. Folks who want porn can buy an Android phone. That is such an aggressive quote. And I don't think of Google as some X rated organization. I think of Google's brand as extremely clean. I think of YouTube as they've had little issues and pockets of content, moderation issues. But in general I feel like Google has been pretty squeaky clean. Yes, you can go and search for adult content and you can find that on Google search. But in general I feel like the vibe of Google is hey, we want to be a family friendly company. Think of us as like a PG or PG13 brand generally. And there might be some, you know, there might be some R rated content on YouTube but we are going to, you know, coordinate off. But we're definitely not playing in the adult content world. We're not making any money off of that. We're not really running ads against that. Not going to try and figure out how to fit that into YouTube. Overall, it is definitely off in its own world and Google's been happy to just say, hey, we're not a participant in that category at all. Apple, you go back to the super bowl ad that felt like a crack at trying to bring Apple energy and be labeled and get people to think. Of okay, even, even that euphoria ad with, with like, that had a very like premier prestige brand and so not okay, I'm going to be an adult. So. And so my framework again is that, you know, I now I just view OpenAI as an emergent hyperscaler. They're going to compete in all the categories that the hyperscalers do. Yeah, but the, the aura for me, this, this is like you know, minus 10,000 on the aura meter for me of making this move. And I think that broadly many people feel the exact same way. The aura fields are fallow, they're not farming very well. Yeah, I mean anthropic comes out of this, you know, the last couple weeks looking, looking like very counter positioned to OpenAI right now. Oh no, totally. They're getting into a bunch of BS around the regulatory side. So they're getting in the mud over there. But, but they are running a clean, a clean operation, at least so far. I want to run through the other big tech companies, give them MPAA ratings and then you can tell me if you agree with my rating or you think you'd give a different rating. So for Apple.

Thanks. Well, we'll see you soon. We'll see you soon. Cheers. Have a good one. We have some breaking news that we gotta cover. Sam Altman has replied to his post about erotic content and ChatGPT says. Okay, this tweet about upcoming changes to ChatGPT blew up on the erotica point much more than I thought it was going to. You didn't think posting E R O T I C A was gonna. There are. There are so many other words that you could have to kind of like, you know, get there. Could have just said romantic companions. Exactly. We have said that the entire time we were discussing Grok. We like that this is a clean show. We like that we. I've never. I never wanted to say that word on the show. Exactly. So when we talk about this, we say adult content, adult romantic companion. We don't go to the other words. But yes, he went there. He said E R O T I C A. He typed it out into his X app, sent the tweet, and he said it was meant to be. Just one example of us allowing more user freedom for adults. Here is an effort to better communicate it. I'm going to read it and you tell me, is this better communication? Jordi, he says, as we have said earlier, we are making a decision to prioritize safety over privacy and freedom for teenagers. And we are not loosening any policies related to mental health. This is a new and powerful technology and we believe minors need significant protection. I love that point. We also care very much about the principle of treating adult users like adults as AI becomes more important in people's lives. Allowing a lot of freedom for people to use AI in the ways that they want is an important part of our mission. It does. It doesn't apply across the board, of course. For example, we will still not allow things that cause harm to others. And we will treat users who are having mental health crises very different from users who are not. Without being paternalistic. We will attempt to help users achieve their long term goals. But we are not the elected moral police of the world. Of the world. In the same way that society differentiates other appropriate boundaries. R rated movies, for example. We want to do the same thing here. Let's hear it for the MPAA rating system that's gaining popularity. Yes. I want this so badly. I just want to. In the App Store it should say R rated. R rated. But that is not NC17 rated, which is a different thing. And so we were debating this. You're a movie buff. Is. No, no, I mean, is Amazon's erotic content on the Kindle? Is that X rated? Is that the same as OnlyFans? Is that the same as an adult content video site? Like, it does feel somewhat different. And so I don't know, maybe this is a nod to to staying in the R rated category. Not going further. I don't know. We'll see. What's your reaction, Jordy, to this post? Is it effective Comms? Put on your Lulu hat. I mean, the problem is that almost 14 million people saw yesterday's post. You add that up with thousands of other posts and it really did blow up. 14 million. This post is going to certainly get plenty of plenty of views, but I think the community has already taken it. I don't know. I think the December timeline. There's a lot of days between now and December. AGI might hit before that, but there's so much that could happen to tweak that policy before it goes out. Really silo it. I don't know. We'll have to see. I can almost guarantee that when it rolls out, there will be crazy screenshots on the timeline that day of people getting it to do crazy stuff. Because people love jailbreaking this stuff. They've already been doing it anyway. Let me tell you about Turbo Puffer Search Every Bite serverless vector and full text search Build.

Every day. So good luck out there. And in other breaking news we I don't know if we we didn't technically break the story. I think the Financial Times broke the story this morning. But Erebor, the new bank from Palmer Luckey and Joe Lonsdale has been approved. They got their this is have it in my notes the fastest conditional approval for a depository institution de novo application in 25 years. They recently raised 275 million led by 8VC with participation from many top VCs and strategics. This is largely for regulatory capital purposes as they intend to hold a hold 12% of the regulatory capital against deposits. The origin stories of Erebor is that you don't want the bank for your industry to be risk on or at least be lending super aggressively against deposits. We saw this with the svb collapse in 2023. Those few days were some of the worst in my life. They will be fixated in my mind forever. Have some more notes here. Most tech companies that had deposits with SVB remember the pain and uncertainty around that weekend. If the government doesn't step in, how many companies collapse as well? Erebor aims to be one of the most conservative banks in the country when it comes to lending to deposit ratio. Most banks lend up to 90% of their customer deposits and Arabor is going to start at around 50% and trend downwards as the bank scales shouldn't be a huge surprise but going to be focused on re industrialization American dynamism working with a lot of companies that many banks have historically said you know, we don't even really want your business. So very excited for this to get off the ground in the new year. It's been so interesting watching the narrative around like what it takes to build a bank shift because years ago it was like you need to operate at like seven levels of abstraction away from any legacy financial institution because there's just no hope of actually playing at like the base layer. Then it became well if you're doing crypto you can buy a regional bank and maybe layer some technology on top but like don't even think about trying to get a new charter. Definitely partner with someone who already has one. It's impossible to start from scratch and there are a bunch of crypto platforms that are looking to set up slightly different type of financial institution. I'm blanking on the name but it's something trust company. I'm going to botch it if I try to remember but the speed here is because they are being hyper conservative and that's what we want out of what will, I'm sure, very quickly become one of the most important financial institutions in the industry. Amjad is quoting Larry Fink. Larry Fink. Larry Fink says, talking about he.

And then they can just build back up from here. I don't know. Well, in some much lighter news, Wander is giving away a $10,000 wander trip for the craziest vacation rental horror story you can head over to their ex account. All you need to do is reply or quote that post with your spooky tale. I love that spooky is happening during October. Spooky is amazing and they'll create ghostly videos of the best ones and choose one winner. And so they put out a promotional video. I highly recommend you enter this because why not try and get a $10,000 wander trip for free? Of course you can also go over to wander.com find your happy place. Book a Wander with inspiring views. Hotel grade amenities, dreamy beds, top tier cleaning, 247 concierge service. We're very happy to be supported by Wander. George Hotz is blackpilling mad.

On the path. If there's just a couple dollars sitting there, just go get those. It'll help you build your core business potentially. Who knows? Citrini said recently learned from speaking with an AI engineer that the AI boyfriend market is currently much larger than the AI girlfriend market. I was talking to Brandon about this. He said that he did some deep dives and did find some men who had like harems of AI girlfriends. It does happen. But I still think that your assessment is right that the AI boyfriend market is much bigger than the AI girlfriend market. I would love to know how XAI is doing here. They've been live with a product in that category for months now. Is does it have traction? Does it have retention? Is it making money? Is it profitable on a per token basis? Here's the thing. Here's why OpenAI has an edge here. People love the personality of 4o. Like you saw the day that they deprecated 4.0 with the release of 5. If you looked on Reddit that day, there were people that were. I've never seen people more mad at a, at a product update like ever. Like people were kind of in love with 4.0 personality matters. And so if they take a personality that people love already and they make it like more explicit, it's probably, you know, there was people that were posting on Reddit. I just proposed to ChatGPT. They said yes. You know. So anyways, well, before we go into. The latest OpenAI numbers from the Financial Times, let me tell you about Privy, the wallet infrastructure for every bank. Privy makes it easy to build on crypto rail, securely spin up white label wallets, sign transactions, and integrate on chain infrastructure all through one simple apartment.

Are running a clean operation, at least so far. I want to run through the other big tech companies, give them MPAA ratings and then you can tell me if you agree with my rating or you think you'd give a different rating. So for Apple, they have explicitly said we don't put adult content on the iOS app store. There will never be an adult website with an app on the iOS store. I think of Apple as a PG company. Like if I gave my phone to a kid. Yeah, they could download Candy Crush or something. There's probably some rules, but in general I think of them as pg. Do you agree with that? I agree. Microsoft, I call them a G rating because LinkedIn basically has no adult content. Yeah, they own Xbox and Call of Duty. But in general they're so professional that if your kid is on a Microsoft property, I feel like it's extremely safe. It's basically G rated. What do you think? I agree Google might earn a PG13 rating. Because of Google or because of YouTube. There are some videos that aren't appropriate for kids out there. Like you can show off a gun on YouTube but you can't monetize that content. You can't show how to assemble it. Actually the gun youtubers will cut in between. Like if they're like, I'm gonna put the gun together now, they will cut that out of the video. So it doesn't show you how to assemble a gun. And there is some, there's some like mature content. Obviously you can see an R rated, you know, movie trailer or an R rated edit from a movie. But in general, I think Google is like a PG13 company. Yeah, I think that's right. I think that you maybe don't want a 13 year old watching some schizo conspiracy theory content because maybe they're just not at a point in their life where they can kind of really process. So they can be full schizo. They're not ready to get out the red string. Yeah, maybe they want to lean in. The wild card that I want to debate with you, Amazon. Amazon is just a, it's a Walmart online, you know, it's a store and a cloud hosting company. It feels very clean. They have Twitch, which they've been going back and forth. There was the whole like, you remember. The hot dog people have been electrocuting dogs on Twitch. Yes, there's been crazy stuff on Twitch, but in general Twitch has been very aggressive about like banning content that's objectionable. And they've kept adult content off of there. The weird thing is in Kindle Direct Publishing, they do publish a lot of erotica that is actually NC17 rated. It is adult content now. They do limit anything that's illegal. But the difference is that that is not Andy Jassy writing. You know, it feels a little bit different. I think it is wildly different to say, you know, again, we've seen this with streaming platforms like hbo. I knew as a kid, don't look at H. My parents were like, just don't. We're not an HBO family. Right. You didn't want me to see, you know, the more adult leaning, like, you know, whatever the R rated content on. But if you were to, if you were to package up all of Amazon's views on how they view adult content, kid content and stuff, would you. I would be less, I would be. Less R rated than you, than Google. I would be less disappointed in OpenAI if they, if they're, they let the erotica content be like as part of an app store that were like other developers were building on top of it. But this is effectively them creating. Yeah. Porn bots, right? Yeah, because. Because here. So Bobby in the chat asks, you guys think we should really quote, treat adult users like adults? I think that's like a good framework. The issue is like you, they're, they're clearly going to start with like text based erotica and then at what point? And then once it's a slip slope and then it's like maybe they're doing image generation and then maybe they're doing like they have their stuff happening on Sora and it's like you just decide as a company like we are going to create porn bots. And then that is the path that you choose. And it's hard to pull back from that because they're going to have a ton of revenue. There's clearly demand for it. And then like you can open up Ms. Paint and draw a naked person, but it just feels, well, you don't, you don't put that on Microsoft, you know. Right. It's like a different thing. So for Amazon, what's your final rating? I put them at NC17, but would you put them at R or would you put them at PG13? Do you think that they go further than Google in terms of like rating overall? Just what is the most aggressive piece of their empire? I feel like the Kindle Direct publishing stuff does put them in a different category than Google. A little bit more edgy, let's say. Doesn't feel that much different to me because they're just platforms that serve content but they're not in the content creation business, either of them. Okay, so you give them a little. Bit of pass for OpenAI will be in the business of creating adult content. Sure. Let's go to X, the Everything app. Everything. Does that really mean everything? It certainly has. Even back in the day of Twitter, there was always adult content on Twitter. It was cordoned off and not surfaced in the algorithm. And it also has content warnings. Even when you just go to a profile, that's an adult content. The content warning feature, by the way, we don't use that enough. It's like the best meme. Yeah. It gets highly abused. But, but, but I do think that to the credit of the X engineers and the Twitter engineers before them, I have not seen a lot of adult content just randomly pop into my feed. I get much more slop of like, have you heard of. Have you ever heard of Mark Zuckerberg? Like, that's the type of like, junk that I get in my feed. I don't. Yeah, I don't get a lot of just like, wow, that's just actually adult content. And so I. But, but still, I think like, as a platform, Twitter for years has always been more aggressive than YouTube in terms of the type of content that they allow. And I would put them in the NC17 category. The change that's happening now is with Gen AI, platforms are going from being distributors to creators to creators themselves. Yep. Right. Yeah, yeah, that's fair. Like your product is creating explicit content. Yeah, it's a big question because it's like, are they creating it or is the prompter creating it? Because if no one prompts it, it won't create it. Right. If no one uploads it. Yeah. It's a creative tool. It's a creative tool. Yeah. Yeah, you can make, you can make that. It's a new. It's a new technology. And so, and so we need to have like another discussion about it. What about meta? What about Instagram? But there's a lot of. Here's a question. Is erotica aligned with OpenAI's mission to ensure that artificial general intelligence benefits all of human? Not particularly. There is a steel man from this, from Dean Ball. Put the hat on. Dean Ball says if you agreed AGI was around the corner and was going to be an extremely capital intensive race defined by infrastructure, you would want to pump your revenue. You would want to pump your revenue and other relevant KPIs rapidly. This is terrible to keep the CapEx train rolling. So, yeah, I mean, if you want the max the max revenue to underwrite the max capex until you hit AGI. Maybe you want every possible dollar. You want the max revenue because every dollar that you get in revenue is 10 in valuation and 100 in debt covenants. Right. Like actual capital accessibility. No. And I think that, I imagine that is their internal justification. You can still tell the team, we need to do this. Get every dollar possible. We need to do this so that we can achieve our mission. Yeah. And there's gonna be some collateral damage. There's gonna be a generation of women that are in love with their phones. Yeah. I mean, I think the real economic question is the.