NEWSMAX

A year. And like those can make electricity, like if I don't give a fuck. And I put it in West Texas, easy. So now it's more of like a regulation thing, a supply chain thing. Power is not a constraint in insofar like that much, right? I think it certainly is a constraint still. Today it was the biggest constraint in 2425. Data center capacity, power. Because the industry was not ready. People have woken up, they've like sort of been shocked to the system. Now you've got, you know, tens of gigawatts being deployed. You know, next year 30 gigawatts are being added. And we think the power is there for it. What was it this year? This year is like, I think it's like 18 ish. 10 ish. 15 to 18 ish. Sorry. So almost a doubling? Yeah, almost a doubling, yeah. Wow. And when you look at TSMC and the crew, right, there is not really, oh, this random. There's 12 people making medium speed reciprocating engines that you can now convert to make power at some random data center. No, no, no. There's like, there is rakis, right? There is one set of spice, like, you know, there's, you know, that's it. Right. And so, and then, and then the flip side is like, okay, when you have 12 vendors, everyone's got a little bit of slack capacity, you know, there's more likelihood, you know, you can, people like, oh, turbines you can't get, you can call a broker and you can get a turbine. You might be paying 50% more, 2x more, but you can get a turbine. Yeah, right. Like it's, you can't get a 3 nanometer fab. You cannot get a 3 nanometer fab. Exactly. And so when you talk about what's the, you know, the baton got passed from semiconductor shortages in 23 to power and data centers in 24, 25, 26. We're still, we're swinging the pendulum, but it will fully be semiconductors again in 27. Right. And so we see this across the entire space of the ecosystem. It's not just tsmc, it's also memory both, because both of them have built at a certain pace. Now, TSMC has been expanding at some rate. The memory makers, in fact have just not expanded capacity. Basically, they've not built new fabs since 2022 because their cycle is so undulating. And so when you look at it, it's like, oh, even if they wanted to double capacity, they need to build the fabs. And building the fabs, it is the most complex building humans make, right? The entire air of a clean room circulates itself every 1.5 seconds. And you don't even feel it when you're inside, really. It's like that, and it's like parts per billion of particles, right? Like, it's actually insane how you could. You could get coughed in the face by someone who has Covid and not get Covid. And so it gets circulated so fast, it doesn't even hit you. It's like. It's like that meme of, like, the spraying when someone's talking, and then it's circulating. So one another. Another sidebar is everyone knows Covid, like, really popped off in Wuhan, right? Wuhan also is home to China's largest memory company, ymtc. And so when they were, like, welding people into their homes, the people who worked in the fab still went to work. Wow.

High yield. Harry says. Wow, this software company is getting destroyed by AI today it's Juventus soccer team down 13%.

What's going on? PayPal down a full 20% today. Switched out their CEO. Okay, okay, that makes sense. This, you know, had some. Some Q4.

But also serving as its high profile and highly scrutinized public Ambassador d' Amaro won a challenging bake off for the job against Disney's entertainment.

Adding context and discussing it, because then you could at least see a news item. Go over there and see, okay, how did the AI agents feel about this? Or what are their different positions and all.

Hosting us. We have a bunch of great guests lined up. We got Aaron Levy from Box coming back on the show. Chuck Robbins, CEO of Cisco, an absolute dog. He's been with the company for decades, truly.

Be happy and would they believe it was the right decision? And if. If they wouldn't, then you're probably not quite where you ought to be. And. And I think that, you know, I tell everybody, too, you're. You're.

Combination of technical in our industry, understand the technology, have high eq, really care about the mission of the team and understand that if the team success. Anybody who says I don't care about my own success is lying to you. But the person who figures out that when the team succeeds, I'm going to succeed. So.

And which is why, like, you were doing some Napkin math on OpenAI, and I think that's they have a billion Mao. Do they monetize like meta or do they monetize like Snap? And on what timeline? Because or worse, they have Fiji. Simo. I think they could get to meta level, you know, monetization and arpu, but it also could, they could be lingering in the Snap territory, which is, I think.

Even like low level employees chiming in from companies that are implicated in this. There's like all this different I like how. You compare Oracle's strategy of like the nameless, faceless announcement that just concerns everyone to run actually from OpenAI commenting and just joking about it, and it actually gives you more confidence. Yeah. Yeah, yeah, yeah, totally. Like somebody looked at the Rune post and was like, oh f even Rune, stop shilling. We're aft. And Rune's like, no, it's just a funny tweet. OpenAI is doing great. And that instills way more. Gabe. Quoted the Yesterday.

Five code. Wrong. Team. Death match. We are experts. Triple blaze. Let's just roll right. Market clearing order inbound. You're surrounded by gentlemen. Hold your position. Strike 1. Strike 2. Activate. Go. Golden retriever mode. Trust. Market clearing order inbound. Vibe. I see multiple journalists on the horizon. You're watching TVPN. Today is Tuesday, February 3rd, 2026 and we're live from the Cisco AI Summit. We're very happy to be here. Thank you, Cisco, for hosting us. We have a bunch of great guests lined up. We got Aaron Levy from Box coming back on the show. Chuck Robbins, yo Of Cisco, an absolute dog. He's been with the company for decades. G.G. patel, the president and Chief Product officer will be joining us. Costa from the San Francisco 49ers who's gonna be breaking down the technology of the NFL. And we're closing out with Dylan Patel, the founder and CEO of Semianalysis. That's right. Of course, if you're wondering, LINEAR is the system for modern software development. 70% of enterprise workspaces on LINEAR are using agents. Really quickly. Let me also tell you about Our presenting sponsor, ramp.com Time is money save. Both easy use, corporate cards, bill pay accounting and a whole lot more all in one place. Starting the show, Jordy. Important announcement from Oracle. They said our partners financing with Dona Ana County, New Mexico, Shackelford County, Texas and Port Washington, Wisconsin data centers are secured at market standard rates, progressing through final syndication on schedule and consistent with investment grade deals. So if this makes you worry, a lot of other people agree this is the second, the next their most recent post after yesterday, they announced the Nvidia OpenAI deal had zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI's ability to raise funds and meet its commitments. So what did Rune say? Rune said my confident in OpenAI's abilities to raise fund T shirt has a lot of people asking questions already answered by my t shirt 2000 likes. This is a wild interesting comm strategy. They've been hiding comments under this. That's rough. I think they've stopped doing that because people are saying what an odd thing to say. Brennan says, guys, just stop tweeting. Whoever you have running PR comms needs to be fired. You're making it worse. It is very weird to take this to act specifically. This is a conversational platform. It's, it's. Hey, we want to start a conversation about concerns around our. Well, also just, I mean it's a total rejection of the going direct thing. Like this would be wildly different if it came from the CEO, co CEOs or Larry Ellison directly even, it had like way more nuance. It's very odd when it has like the corporate press release. This, this screams that no one in comms actually uses X. Yeah, it's like. We needed to put this out and they didn't really consider the channel and maybe this probably went over fine in a press release or something. But just on X, it's a completely different context and there's so much subtext with all the different partners actively being there and even like low level employees chiming in from companies that are implicated in this. There's like all this different. I like how you compare Oracle strategy of like the nameless faceless announcement that just concerns everyone to rune actually from OpenAI commenting and just joking about it and it actually gives you more confidence. Yeah, yeah, yeah, yeah, totally. Like somebody, somebody looked at the Rune post and was like, oh f. Even Rune stopped shilling, we're effed. And Rune's like, no, it's just a funny tweet. OpenAI is doing great. And that instills way more. Gabe quoted yesterday's post and just said okay, yay. Okay, yay. Anyway, before we move on CrowdStrike, your business is AI. Their business is securing it. CrowdStrike secures AI and stops breaches. And of course Oracle's down 5% today. It's sort of a blind. Honestly looking good compared to some other names. Yeah. What's happening? PayPal down a full 20% today. Switched out their CEO. Okay, okay, that makes sense. Just, you know, had some, some Q4 results that people weren't super exciting about and people aren't excited about the forecasts either. A number of people have been speculating. Mafia back in there. Well, yeah, I mean you look at S.H.I.E.L.D. had a, had a kind of was prodding Elon, he said, Come on, El, you've always wanted PayPal to be X, the financial super app. Now's a great opportunity. PayPal right now is valued at less than what X was in the take private. Wait, really? Yeah. No way. And X is obviously working on a bunch of different financial features. I thought PayPal all time high was in the hundreds of billions. Yeah. So at the same at this, at. The time, it's 40 billion now. Yeah, add that in. Yeah, it was, it was way up down 85% loss last five years. I mean truthfully, like a lot of people have moved on. They use cash app but they own Venmo. Yeah, Venmo. Venmo is still very like Millennial. Right. It's sort of like, and people use the Apple, Apple pay transfers, Apple Cash. Like there's been a number of, you know, shots across the bow for PayPal that they haven't responded to fully. I mean they own Venmo because they acquired Braintree. It wasn't even like an in house like really aggressive move. They, they sort of just lucked out with Venmo. PayPal, the $40 billion public company had 2025 net revenue of 33 billion. Whoa. So not, not great. Major sell off in pretty much all software today we had another post here. Snap is close to all time lows at $6.70 despite growing revenues and profits. Serenity says here's why the financial engineering looks criminal. Snapchat is an 11 and a half billion dollar company with a billion MAU and Q3 adjusted EBITDA of 132 million. However, stock comp for the last 12 months, $2.5 billion in the last 12 months. So really, really insane number. This has, I mean always been the general criticism of Snap, but looks like they have not adjusted course yet. It's interesting seeing the gap between monetization, between meta a billion Mao and Snap a billion mao. It's like a 10x. Yeah, which is. Yeah, which is why like you were doing some Napkin math on OpenAI and. I think that's they have a billion Mao. Do they monetize like Meta or do they monetize like Snap? And on what timeline? Because or worse, they have Fiji Simo. I think they could get to meta level, you know, monetization and arpu. But it also could, they could be lingering in the Snap territory, which is I think 5 billion over the last year trailing 12 months, 5.77 billion on a billion Mao. Not if you were monetizing it like Meta, you'd be much closer to 50 billion, which is dramatic. Matt Slotnick commenting on the sell off in software. All of this because Azure grew 39% instead of 39.4%. Of course there's a lot more going on here. Buco says knots it's that the labs can hypothetically one shot you. So why stand in front of that train? Why express quote short AI in the marketplace? Yeah. Really quickly let me tell you about Shopify. Shopify is the commerce platform that grows with your business and lets you sell in seconds online, in store, on mobile, on social, on marketplaces. And now with AIP chess, high yield. Harry says, wow, this software company is getting destroyed by AI. Today it's Juventus soccer team down 13%. Everything's destroyed. I guess people think that somebody's going to make Claude code for software for soccer. Your inside man below says the robots are going to be playing and he has a photo of a gif of robots playing soccer. That seems bullish. Well, yeah, I don't know. Bitcoin also down dramatically. Where's Bitcoin 75 or something? Joe Weisenthal has it up 3 now. Absolute crash today down 13% over the last over the last five days over almost 20% over the last month. Lots of selling activity going on. Bitcoin drops to lowest. Jim Cramer is now giving advice to Michael Saylor. He says oh my. Bitcoin 73,000 beckons as the Dow hits a record high. Our chartist last night said this is it. The level that cannot be our chartist Chartist, yes. The level that cannot be breached. It is time for strategy. Also known as Mass. Microstrategy was the former name. Now it's also known as Mr. For its Mr. Symbol to do a spot secondary or convert and stop this decline. Come on Mike, step up. Always rough when when Jim Cramer is just like stream of consciousness posting at you. So we'll see what what Saylor does. They they have earnings on Thursday and that will certainly be an interesting call. Yeah. More, more details on the PayPal shares plunging nearly 20% CEO exit they replaced their their CEO Alex Chris, who was brought in to steer the payments firm through slowing growth and heightened competition and simultaneously issued a lackluster profit forecast for 2026 on Tuesday, sending its shares down 19%. The board's the Company is Born, which named HP's Enrique Llores as its new president and CEO, said the Pace of change in execution under Kriss was not in line with its expectations. Chris was tasked with turning around PayPal during a challenging period as post pandemic trading volumes declined and competitive pressures in its core business intensified from large technology companies and newer fintech rivals. It does feel like, I mean even you know, in the press release economy it would be, it would have been so easy for PayPal to do some sort of deal with stock trading or prediction markets like every financial app and news product and grocery store. Like everyone is like doing some sort of deal at least even if it doesn't materialize, even if it doesn't move the needle, at least they're, they're sort of putting their best foot forward. And PayPal, you know, you still mostly hear about it in the context of what are the PayPal co founders up to now? Oh, they're building rivals to the original company. PayPal said CFO Jamie Miller would serve as interim CEO until Lors assumes the role on March 1. That's a pretty quick transition. Lorz was president and CEO of the consumer electronics giant HP for more than six years. Wall street analysts said the unexpected CEO announcement raises questions about the company's turnaround strategy. Of course Disney's been going through a CEO transition, but it's been massively telegraphed with you know, a contract that ended this year. Okay. You know a story last week about hey we're moving faster. Hey, we're bringing somebody in who's internal who's already knows the company inside and out and things been a lot. It's crazy that even with $33 billion of revenue they're worth roughly like three and a half circles. Right? Circle obviously, you know, just tiny, tiny company in comparison to PayPal. You would think that PayPal just they don't have an obvious AI. Like what's the obvious AI bear case. Right. Yeah. They move money. They're heavily regulated. You can imagine them figuring out ways to work better with agents and capitalize on the stablecoin boom. But we'll see what the new CEO ends up doing. The big question is whether he will bring in a formidable payments team to attempt yet another multi year turnaround. Do they not have a formidable payments team? What happened? Who you got? Or I would hope the payments company with half a billion active users. Yes. Has a formidable payments team. Apparently not. According to Evercore, you lack formidability. PayPal expects full year adjusted profit to range between low single digit percentage decline and slight increase compared with Wall street expectations of about 8% growth. Miller said the company was no longer committing to the specific 2027 outlook laid out at its investor day last year and would now provide forecasts one year at a time. So getting more uncertain. No one likes that. The change comes against the backdrop of weakening retail spending as shoppers squeezed by elevated interest rates, stubbornly high living costs and sign up softening may labor market cut back in discretionary purchases and prioritize everyday necessities stuff that's not probably purchased with PayPal. David in the YouTube chat says PayPal did participate in the press release economy. They announced a deal with ChatGPT at the end of last year in Q4. In 2026, PayPal will become the first digital wallet embedded directly into ChatGPT allowing users to make purchases instantly without leaving the platform. So anyways feels very oversold but and. They also missed on the holiday quarter so Analysts were estimating that they'd make 8.8 billion and they only made 8.68 billion. And so, you know, we saw a pretty strong holiday quarter. There was a lot of growth across e commerce activity. We talked to Sean Frank at Ridge. Everyone was having like, there were a lot of jitters about is the consumer healthy? But a lot of. A lot of the growing platforms were able to outrun any softening in consumer confidence by just onboarding more companies, onboarding more customers. And so if you're declining while everyone else is. Is accelerating, that's going to be an issue. Ted says gold is dumping. Silver's dumping. Bitcoin is dumping. Ethereum is dumping. DXY is dumping. Stocks are dumping. If everything is going down, where is the actual. Where's the money actually going? We talked about this last week. Sell everything. Sell your dollars, stocks. Sell your crypto. Sell your bonds. Freak out. Yeah. Panic. Sell everything. Nikita says data centers, raw materials, and land. If intelligence. Intelligence is rapidly becoming free. Expect a rapid rotation out of bytes and into bits. A lot of blue chip assets will soon be repriced. Of course. Yeah. Hardware. Is that a typo? Does he mean rotation out of bits and into atoms? Yes, he had a typo. Okay, okay. Yeah. Because bytes and bits are kind of the same thing. Right? But, yeah, a lot of blue chip assets will soon be repriced. So I don't know. I'm excited to talk to Aaron Levy about this, about the SaaS apocalypse. What's happening with software. Deep Dish says this is a pretty common misconception, that money has to go somewhere. That's not how market caps are measured. They're measured by last price times shares, contracts outstanding, not how much money you'd get for liquidating the whole pile. Tldr. The money was never there. Quickly. New York Stock Exchange. Want to change the world. Raise capital at the New York Stock Exchange. We'll be at the New York Stock Exchange next month. We're very excited for. Cannot wait. Josh d' Amero is the new CEO of Disney, effective next month. Yes. This cycle moved very quickly. Right? Yeah. Lucas Shaw over at Bloomberg has the reporting. I'll pull it up at the same time. I think. I think it was managed pretty well. Disney's only down 1% today. Yeah. Iger will stay on the board and serve as a senior advisor until his retirement on December 31st. And Dana Walden was named to a new role as president and chief creative officer of Disney. Iger just got the OpenAI deal done. He's like, I handled the AI transition. Perfectly and I'm out. They've only had nine CEOs in the 102 year history. The CEO job requires not only running a sprawling empire, but also serving as its high profile and highly scrutinized public ambassador. Demaro Diamaro won a challenging bake off for the job against Disney's entertainment co chairman, Dana Walden. Let's give it up for Bake Offs. That has been the talk of Hollywood for more than a year. Walden was named to the newly created position of president and Chief Creative Officer. Disney's leadership has been determined to run the succession process as smoothly as possible after its disastrous last try. The company named previous parks boss Bob Chapek as CEO in 2020, only to fire him and bring back Iger two years later in a corporate coup. There's a whole series of Bobs. Bob Iger, Bob Chapek over there. The CEO selection was overseen by Chairman James Gorman, who joined Disney's board in 2024 after managing a widely praised succession process at Morgan Stanley. Iger was chairman when the board picked Chapek. Disney shares were roughly flat Tuesday. Gorman, in an interview, said that he has seen Iger and demaro work together and is confident the handoff will go smoothly this time. There's no tension here. Shareholders will now look to demaro to lay out and execute a growth plan for the company, whose stock price is down by nearly half from its 2021 high. When everyone was rapidly subscribing to Disney plus and locked in just watching content, they went outside and the shares have slid since and has been essentially never go outside. Never touch grass. This is the new Disney campaign. Never touch grass. Run it in the super bowl for sure, gorman said. The Wall Street Journal picked the told the Wall Street Journal that the board picked d' Amaro because of his combination of strategic thinking and an understanding of the creative process, as well as his experience working both overseas and in the United states states. The 54 year old spent most of his 28 years at Disney working in theme parks in the theme parks business in the US and overseas, overseeing stints at California's Disneyland and Florida's Walt Disney World. In 2020, he has been chairman of Disney's Experiences unit, which includes theme parks, cruise ships and consumer products. All things that should grow in an AI world. Even if the, you know, if there's a lot of like AI slop and there's pressure on the theaters, like should grow. But there's still so many, there's still so many questions, right? If you have Widespread job loss, does that force a compression in pricing? Just overall purchasing power. Right. Yeah, it's everyone. But again, you could see there's so much uncertainty. The idea that I will just magically like AI getting good will magically make everybody spend more time off the Internet is kind of a tough argument to make. Yeah, right. Maybe people, some people react more like there's this like stated preference which people are saying as AI proliferates, people are just going to log off. And I just don't actually see that happening. Yeah, I still think, I mean, I'm interested to see when the, the OpenAI Disney deal really like rolls out. Obviously you still can't generate Disney properties. Disney IP in Sora or in. Or at least not in ChatGPT when I tried. So they're still working on when they will roll that out. We've discussed like, it will be interesting if they launch like a single piece of ip. Like it's Spider man week and they're just releasing Spider man and then, and then they wait and then they do Iron Man a week later. So they're like, keep hyping it as opposed to just like we're opening the, the floodgates. You can do any Disney ip. Will there be something special there? The bigger question for me is, is what does it look like in the Disney app? Because I feel like the Disney app as a parent is a very safe place. Like there's some stuff in there, but you can like sort of parental control it and most of its cartoons and most of it's high quality Pixar stuff. But even if there's an AI generated feed, how much editorial goes into that? Like there's a, there's a pretty wide gap right now between YouTube kids, which can get sort of crazy, and Disney which is extremely curated. Like, you know, Academy Award winning films are in there and it's like a very, it's a very polished product and if you start putting AI generated content in there, maybe some parents will love it because the kids will watch more. But I think a lot of parents would probably be like, I don't know, I'm pulling back from that. What are you trying to generate? I'm trying to see if Grok can generate Disney ip. Can it? Not perfectly, but while you review that. Let me tell you about FIN AI, the number one AI agent for customer service. If you want AI to handle your customer support, go to FIN AI. Moving on. We talked about this yesterday. We'll cover it again. Dd shares today. SpaceX just bought XAI that previously bought X. The 1.25 trillion dollar merger values XAI at $250 billion with annualized revenue of 428 million, giving it a clean 584x revenue multiple. Not bad. And annualized loss of 5.84 billion. More importantly, mostly capex. Right? I imagine XAI. Yeah, because they're building Colossus, they're buying a ton of chips and so that's where that cash loss is coming from. Yeah, because I imagine that the inference is not at that level yet. But of course SpaceX can start helping to foot that bill. Yeah, they have 8 billion in revenue. No, no, no. 8 billion in profit. In profit. So from Reuters, the transaction value SpaceX at 1 trillion, XAI at 2. 50 billion. Investors in XAI will receive 0.1433 shares of SpaceX for every share of XAI as part of the acquisition. Some XAI executives may opt for cash instead of SpaceX stock at 75.46 per share. This marks not just the next chapter, but the next book in SpaceX and Xi's mission scaling to make a sentient sun to understand the universe and extend the light of consciousness to the stars. What a turn of phrase. We'll have to read Elon's post because this one feels like it came directly from him. I know that the the Tesla master plan before was sort of like it's a little corporate corpo speak, but somebody else was sharing. It is fascinating that you know the number a non leading lab is worth effectively a quarter of what the leading space telecom company is. When you compare the two it actually makes sense. I mean in many ways the XAI shareholder base has a lot of overlap with the SpaceX shareholders. So in the end I think everyone obviously is doing fine. But certainly the 584x revenue multiple, I think even Sam would take that offer right now. That'd be 5 trillion, right? Well, speaking of labs, 11 labs build intelligent real time conversational agents reimagine human technology interaction with 11 labs. Let's stay with SpaceX. Ramsheets called it Alex Stouffer shares that. Ramp Sheets called it The Elon Musk. SpaceX plus XAI valued at 1.25 trillion. And ramp Labs used their agentic spreadsheet to model the proposed merger when there were rumors of advanced talks on January 29th and they nailed the valuation. So you can kind of watch Ramp Sheets work through the financial modeling there. It's notable. So some XAI executives are able to opt for cash instead of SpaceX shares at $75.46 per share. You think this is just because there's so much pre IPO demand for SpaceX that people are like, you know, there's plenty of buyers. That's a good question. People just want to cash out and move on. I mean, SpaceX has done like a long history of tender offers and liquidity, so there's probably plenty of demand. And, and, and just offering that feels like a way. I mean, there's also got to be some people that have been sitting on sort of. I mean, I guess if you were a Twitter employee just a few years ago, you had liquidity. So it's not the same thing as SpaceX where you joined 20 years ago and you're still waiting for the IPO. So you're like, I need to buy a house. Those tender offers make a lot more sense than this, but certainly an interesting decision to be made if you're an XAI executive and you're looking at space. Well, speaking of XAI executives, Nikita Beer. Yes, Logan Bartlett says Nikita beer, the SpaceX employee. Total Nikita victory. I think in many ways he's been through hell over the last few months. He is often the butt of the joke. There were those prediction markets on will he make it fire? Will he fire? Will he get fired? There's been so many dust ups around. Is he paying some people too much with the creator program? Well now if you're an ex creator and you get that $22 paycheck for your posts, it's coming from SpaceX. That's right. Love to see it. Let me tell you about Turbo Puffer, serverless vector and full text search built from first principles and object storage. Fast 10x cheaper and extremely scalable. Wired had some interesting coverage this morning. Mike Solana called it out. Wired said Elon Musk is rolling Xai into SpaceX, creating the world's most valuable private company. By fusing SpaceX and Xai, which acquired X last year, Elon Musk tightens his grip over technologies that shape national security, social media and artificial intelligence. Yes, of course this doesn't make any sense. So Solana's point is he says, good morning. Elon Musk is quote tightening his grip over two companies he founded, funded, built and currently runs. So that's a good criticism, but yeah. But at the same time, like going public implies, like you're actually, you're loosening your grip, right? Suddenly, like the, you have new regulations that you have to follow, more responsibility. Like you see, suddenly anyone in the world can, can, can profit off of Your labor. Yes. Anyone in the world can loosen your grip a little bit in some way. It's funny because if, like, if Space X like, you know, put out some big press release and said we're never going to go public, we're doing this, their criticism would be Elon. You know, Elon Inc. Is not letting you know retail shareholders participate in space and AI. Yeah. Or just as a private company. There's, there's all the financials, all the strategies are more opaque. There's less accountability, there's less regulation. They don't answer to the sec, you see, in the same way. And that's why a variety of private equity firms do take privates. Why are you taking a company private? You're delisting it as a public company. It's no longer public. And so you can do much more ambitious things. You can change the strategy because you don't answer to shareholders. What are you laughing about? John says Elon Musk, famous for his loose management style, tightens his grip. Yeah, Famous famous really quickly. Label Box, RL environments, Voice robotics evals and expert human data. Label Box is the data factory behind the world's leading AI teams. Eric Berlin says once again I find myself updating my LinkedIn bio. He says. Former CEO of Breaker, which was acquired by Twitter, acquired by X Corp, acquired by Xai, acquired by SpaceX. So, so good. Congratulations to the Breaker team. I was, I was this. But I was looking for the most complicated corporate lineage yesterday when we were joking about it, like there's someone that's going to have like six steps in their resume. And we found him, his name's Eric Berlin and he formered and he founded Breaker. What was Breaker? Was that a podcasting app? Live Sports. Oh really? I think it was meant to basically distribute effectively clips from games. Oh, in the moment. Cool. Oh yeah. Breaking news. Oh. 2021, Twitter requires social podcasting app Breaker Team to help build Twitter spaces. Twitter has acquired social broadcasting app Breaker, the company announced today. Yeah, I think the idea was if you were. If there was a crazy play or a game was about to end, they would just stream. Huh. Just like the last five minutes or something. Interesting. Breaker was founded in 2016 and led by CEO Berlin, previously the founder and CTO at Social Advertising 140 proof, which he also sold. And oh, and Leah Culver was at Breaker. Yeah, I remember her in the Twitter. She stuck around in the transition and was like, I think she posted a photo of her sleeping in a sleeping bag in the office or something. The app had launched At a time when podcasts were still very much thought of as audio feeds and podcast apps as productivity tools, not experiences around which a community could be built, Breaker helped users change that perception by offering an app where users could like and comment on episodes. Discover new podcasts by following friends. Okay, I'm thinking of a different company. You are thinking of a of a different company. It's more of a clubhouse rival. According to Culver's tweet, she'll be joining Twitter with a focus on Twitter spaces. Twitter's audio based social networking product and clubhouse rival Spaces let Twitter users chat in real time using voice instead of text as they do today. And you know that product still exists. Suspended cap says. So let me get this straight. Overpays for Twitter makes Xai uses AI hype cycle to absorb Twitter and make everyone whole. Then uses SpaceX IPO hype to absorb that entity will pump the living shit out of the SpaceX IPO and buy more stuff with equity. Like of course people keep giving this guy capital. He finds a way. It's crazy. It's really true. Yeah. In some ways I've been thinking about it is Xai has not. You know, they've done fine in so many ways. It's been, it's been an incredible story come from behind story competing against the Googles, the OpenAI's of the world. But it hasn't exactly been an easy time in the private markets going out and having to raise at a $200 billion valuation.

Activate. Go go. The retriever mode. Trust. Market clearing order inbound. Vibe cooler. I see multiple journalists on the horizon. Founder, You're watching TVPN today is Tuesday, February 3rd, 2026 and we're live from the Cisco AI Summit. We're very happy to be here. So thank you Cisco for hosting us. We have a bunch of great guests lined up. We got Aaron Levy from Box coming back on the show. Chuck Robbins, CEO of Cisco, an absolute dog. He's been with the company for Truly Truly. Gigi Patel, the president and Chief Product officer will be joining us. Costa from the the San Francisco 49ers who's gonna be breaking down the technology of the NFL. And we're closing out with Dylan Patel, the founder and CEO of Semianalysis. That's right. And of course if you're wondering LINEAR is the system for modern software development. 70% of enterprise workspaces on LINEAR are using agents really quickly. Let me also tell you about our presenting sponsor ramp.com time is money save. Both easy to use, corporate cards, bill pay accounting and a whole lot more all in one place. Starting the show Jordyn important announcement from Oracle. They said our partners financing with Dona Ana County, New Mexico, Shackelford County, Texas and Port Washington, Wisconsin data centers are secured at market standard rates progressing through final syndication on schedule and consistent with investment grade deals. So if this makes you worry, a lot of other people agree this is the second the next the their most recent post after yesterday they announced the Nvidia OpenAI deal had zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI's ability to raise funds and meet its commitments. So what did Rune say? Rune said my confid my confident in OpenAI's abilities to raise fund T shirt has a lot of people asking questions already answered by my t shirt just 2000 likes. This is a wild strategy. Interesting comm strategy. They've been hiding comments under this. That's rough. I think they've stopped doing that because people are saying what an odd thing to say. Brennan says guys just stop tweeting. Whoever you have running PR comms needs to be fired. You're making it worse. It is it is very weird to take this to act specifically this is a conversational platform like it's it's hey. We want to start a conversation about. Concerns around our well also just I mean it's a total rejection of the going direct thing like this would be wildly different if it came from the CEO CO CEOs or Larry Ellison directly even and it had like way more nuance. It's very odd when it has like the corporate press release lingo. This. This screams that no one in comms. Actually uses X. Yeah, it's like we needed to put this out and they didn't really consider ads and maybe this probably went over fine in a press release or something. But just on X, it's a completely different context and there's so much subtext with all the different partners actively being there and even like low level employees, employees chiming in from companies that are implicated in this. There's like all this different. I like how you compare Oracle's strategy of the nameless, faceless announcement that just concerns everyone to run actually from OpenAI commenting and just joking about it and it actually gives you more confidence. Yeah, yeah, yeah, yeah, totally. Like somebody looked at the Rune post and was like, oh, f. Even Rune stopped shilling, we're effed. And Rune's like, no, it's just a funny tweet. OpenAI is doing great. And that instills way more. Gabe quoted yesterday's post and just said, okay, yay. Okay, yay. Before we move on, CrowdStrike, your business is AI. Their business is securing it. CrowdStrike secures AI and stops breaches. And of course, Oracle's down 5% today. It's sort of a blowout, honestly. Looking good compared to some other names. Yeah. What's happening? PayPal down a full 20% today. Switched out their CEO. Okay, that makes sense. This, you know, had some, some Q4 results that people weren't super exciting about. And people aren't excited about the forecasts either. A number of people have been speculating back in there. Well, yeah, I mean, you look at S.H.I.E.L.D. had a, had a kind of. Was prodding Elon. He said, come on, Elon, you've always wanted PayPal to be X. The financial super app. Now's a great opportunity. PayPal right now is valued at less than what X was in the take private. Wait, really? Yeah. No way. And X is obviously working on a bunch of different financial features. I thought PayPal all time high was in the hundreds of billions. Yeah. So at the same, at this, at the time, 40. It's 40 billion. Yeah. Add that in. Yeah, it was, it was way up down 85% in the last five years. I mean, truthfully, like a lot of people have moved on. They use, you know, cash app, but they own Venmo. Yeah, Venmo. Venmo is still very like millennial. Right? It's. It's sort of like, and people use the Apple, Apple pay transfers Apple Cash. Like there's been a number of, you know, shots across the bow for PayPal that they haven't responded to fully. I mean their net, their net revenue. They own Venmo because they acquired Braintree. It wasn't even like an in house, like really aggressive move. They sort of just lucked out with Venmo. PayPal, the $40 billion public company had 2025 net revenue of 33 billion. Whoa. So not, not great. Major sell off in pretty much all software today. We had another post here. Snap is close to all time lows at $6.70 despite growing revenues and profits. Serenity says here's why the financial engineering looks criminal. Snapchat is an $11.5 billion company with a billion MAU and Q3 adjusted EBITDA of 132 million. However, stock comp for the last 12 months, $2.5 billion in the last 1212 months. So really, really insane number. This has, I mean always been the general criticism of Snap, but looks like they have not adjusted course yet. It's interesting seeing the gap between monetization, between meta a billion mal and snap a billion mal. It's like a 10x. Yeah. Which is why you were doing some Napkin math on OpenAI and I think. That'S a billion Mao. Do they monetize like Meta or do they monetize like Snap? And on what timeline? Because or worse, they have Fiji Simo. I think they could get to Meta level, you know, monetization and arpu. But it also could, they could be lingering in the Snap territory, which is I think 5 billion over the last year trailing 12 months, 5.77 billion on a billion mao. Not if you were monetizing it like Meta, you'd be much closer to 50 billion, which is dramatic. Matt Slotnick commenting on the sell off in software. All of this because Azure grew 39% instead of 39.4%. Of course there's a lot more going on here. Buco says knots it's that the labs can hypothetically one shot you. So why stand in front of that train? Why express quote short AI in the marketplace? Yeah. Really quickly, let me tell you about Shopify. Shopify is the commerce platform that grows with your business and lets you sell in seconds online, in store, on mobile, on social, on marketplaces. And now with agents high yield Harry says, wow, this software company is getting destroyed by AI today. Juventus soccer team down 13%. Everything's destroyed. I guess people think that they're making Somebody's going to make Claude code for software for soccer. Your inside man below says the robots are going to be playing and he has a photo of or a gif of robots playing soccer. That seems bullish. We'll see. I don't know. Bitcoin also down dramatically. Where's Bitcoin 75 or something? Joe Weisenthal has it up 73 now. Absolute crash today. Down 13% over the last five days over almost 20% over the last month. Lots of selling activity going on. Bitcoin drops to lowest. Jim Cramer is now giving advice to Michael Saylor. He says, oh my. Bitcoin 73,000 beckons as the Dow hits a record high. Our chartist last night said this is it. The level that cannot be. Our chartist Chartist, yes. The level that cannot be breached. It is time for strategy, also known as Mass. Microstrategy was the former name. Now it's also known as Mr. For its Mr. Symbol to do a spot secondary or convert and stop this decline. Come on Mike, step up. Always rough when Jim Cramer is just like stream of consciousness posting at you. So we'll see what Saylor does. They have earnings on Thursday and that will certainly be an interesting call. Yeah. More, more details on the PayPal shares plunging nearly 20% CEO exit they replaced their CEO Alex Chris, who was brought in to steer the payments firm through slowing growth and heightened competition and simultaneously issued a lackluster profit forecast for 2026 on Tuesday, sending its shares down 19%. The board's the company's board, which named HP's Enrique Lorez as its new president and CEO, said the Pace of change in execution under Chris was not in line with its expectations. Chris was tasked with turning around PayPal during a challenging period as post pandemic trading volumes declined and competitive pressures in its core business intensified from large technology companies and newer fintech rivals. It does feel like, I mean even, you know, in the press release economy it would be it would have been so easy for PayPal to do some sort of deal with stock trading or prediction markets like every financial app and news product and grocery store. Like everyone is like doing some sort of deal at least even if it doesn't materialize, even if it doesn't move the needle, at least they're, they're sort of putting their best foot forward. And PayPal, you still mostly hear about it in the context of what are the PayPal co founders up to now? Oh, they're building rivals to the original company. PayPal said CFO Jamie Miller would serve as interim CEO until Lorz assumes the role on March 1. That's a pretty quick transition. Lorz was president and CEO of the consumer electronics giant HP for more than six years. Wall street analysts said the unexpected CEO announcement raises questions about the company's turnaround strategy. Of course, Disney's been going through a CEO transition, but it's massively telegraphed with, you know, a contract that ended this year. Okay. You know a story last week about hey, we're moving faster. Hey, we're bringing somebody in who's internal who's already knows the company inside and out and things been a lot better. It's crazy that even with $33 billion of revenue, they're worth roughly like three and a half circles. Right? Circle obviously, you know, just tiny, tiny company in comparison to PayPal. You would think that PayPal just they don't have an obvious AI. Like what's the obvious AI? Bear case. Right. Yeah. They move money. They're heavily regulated. You can imagine them figuring out ways to work better with agents and capitalize on the stablecoin boom. But we'll see what the new CEO ends up doing. The big question is whether he will bring in a formidable payments team to attempt yet another multi year turnaround. Do they not have a formidable payments team? What happened? Who you got? Or I would hope the payments company with half a billion active users. Yes. Has a formidable payments team. Apparently not. According to Evercore, you lack formidability. PayPal expects full year adjusted profit to range between low single digit percentage decline and slight increase compared with Wall street expectations of about 8% growth. Miller said the company was no longer committing to the specific 2027 outlook laid out at its investor day last year and would now provide forecasts one year at a time. So getting more uncertain. No one likes that. The change comes against the backdrop of weakening retail spending as shoppers squeezed by elevated interest rates, stubbornly high living costs and sign up softening made labor market cut back in discretionary purchases and prioritize everyday necessities. Stuff that's not probably purchased with PayPal. David in the YouTube chat says PayPal did participate in the press release economy. They announced a deal with ChatGPT at the end of last year in Q4. In 2026, PayPal will become the first digital wallet embedded directly into ChatGPT allowing users to make purchases instantly without leaving the platform. So anyways feels very oversold but and. They also missed on the holiday quarter so analysts were estimating that they'd make 8.8 billion and they only made 8.68 billion. And so, you know, we saw a pretty strong holiday quarter. There was a lot of growth across e commerce activity. We talked to Sean Frank at Ridge. Everyone was having like, there were a lot of jitters about is the consumer healthy? But a lot of the growing platforms were able to outrun any softening in consumer confidence by just onboarding more companies, onboarding more customers. And so if you're declining while everyone else is is accelerating, that's going to be an issue. Ted says gold is dumping, Silver's dumping. Bitcoin is dumping. Ethereum is dumping. DXY is dumping. Stocks are dumping. If everything is going down, where is the actual. Where's the money actually going? We talked about this last week. Sell everything. Sell your dollars, stocks. Sell your crypto, sell your bonds. Freak out. Yeah, panic. Sell everything. Nikita says data centers, raw materials, and land. If intelligence is rapidly becoming free, expect a rapid rotation out of bytes and into bits. A lot of blue chip assets will soon be repriced. Of course. Yeah, hardware. Is that a typo? Does he mean rotation out of bits and into atoms? Yes, he had a typo. Okay, okay. Yeah. Because bytes and bits are kind of the same thing. Right? But yeah, a lot of blue chip assets will soon be repriced. So I don't know. I'm excited to talk to Aaron Levy about this, about the SaaS apocalypse. What's happening with software. Deep Dish says this is a pretty common misconception, that money has to go somewhere. That's not how market caps are measured. They're measured by last price, times, shares, contracts outstanding, not how much money you'd get for liquidating the whole pile. Tldr. The money was never there. Quickly. New York Stock Exchange want to change the world. Raise capital at the New York Stock Exchange. We'll be at the New York Stock Exchange next month. We're very excited for Cannot wait. Josh d' Amero is the new CEO of Disney, effective next month. This cycle moved very quickly, right? It did, yeah. Lucas Shaw over at Bloomberg has the reporting. I'll pull it up at the same time. I think it was managed pretty well. Disney's only down 1% today. Iger will stay on the board and serve as a senior advisor until his retirement on December 31st. And Dana Walden was named to a new role as president and chief creative officer of Disney. Iger just got the OpenAI deal done. He's like, I handled the AI transition perfectly and I'm out. They've only had nine CEOs in the 102 year history. The CEO job requires not only running a sprawling empire, but also serving as its high profile and highly scrutinized public ambassador. Diamaro won a challenging Bake off for the job against Disney's entertainment co chairman Dana Walden. Let's give it up for Bake Offs. That has been the talk of Hollywood for more than a year. Walden was named to the newly created position of president and chief creative officer. Disney's leadership has been determined to run the succession process as smoothly as possible after its disastrous last try. The company named previous parks boss Bob Chapek as CEO in 2020, only to fire him and bring back Iger two years later in a corporate couple. There's a whole series of Bobs. Bob Iger, Bob Chapek over there. The CEO selection was overseen by Chairman James Gorman, who joined Disney's board in 2024 after managing a widely praised succession process at Morgan Stanley. Iger was chairman when the board picked Chapek. Disney shares were roughly flat Tuesday. Gorman, in an interview, said that he has seen Iger and demaro work together and is confident the handoff will go smoothly this time. There's no tension here. Shareholders will now look to Domaro to lay out and execute a growth plan for the company, whose stock price is down by nearly half from its 2021 high when everyone was rapidly subscribing to Disney plus and locked in just watching content. They went outside and the shares have slid since and has been essentially never. Go outside, never touch graphs. This is the new Disney champion. Never touch grass. Run it in the super bowl for sure, gorman said. The Wall Street Journal picked the Told the Wall Street Journal that the board picked d' Amaro because of his combination of strategic thinking and an understanding of the creative process, as well as his experience working both overseas and in the United States. The 54 year old spent most of his 28 years at Disney working in theme parks. In the theme parks business in the US and overseas, overseeing stints at California's Disneyland and Florida's Walt Disney World. In 2020, he has been chairman of Disney's Experiences unit, which includes theme parks, cruise ships and consumer products. All things that should grow in an AI world. Even if the even if there's a lot of like AI slop and there's pressure on the theaters, like should grow. But there's still so many, there's still so many questions, right? If you have widespread job loss, does that force a compression in pricing or just overall purchasing power? Right? Yeah, it's everyone. But again, could see there's so much uncertainty. The idea that AI will just magically like AI getting good will magically make everybody spend more time off the Internet is kind of a tough argument to make. Yeah, right. Maybe people, some people react more like there's this like stated preference which people are saying as AI proliferates, people are just going to log off. And I just don't actually see that happening. Yeah, I still think, I mean, I'm interested to see when the OpenAI Disney deal really like rolls out. Obviously you still can't generate Disney properties, Disney IP in Sora or in. Or at least not in ChatGPT when I tried. So they're still working on when they will roll that out. We've discussed like it will be interesting if they launch a single piece of ip like it's Spider man week and they're just releasing Spider man and then they wait and then they do Iron Man a week later. So they're like, keep hyping it as opposed to just like we're opening the floodgates. You can do any Disney ip. Will there be something special there? The bigger question for me is what does it look like in the Disney app? Because I feel like the Disney app as a parent is a very safe place. There's some stuff in there but you can like sort of parental control it and most of its cartoons and most of its high quality Pixar stuff. But even if there's an AI generated feed, how much editorial goes into that? Like there's a, there's a pretty wide gap right now between YouTube kids, which can get sort of crazy, and Disney which is extremely curated. You know, Academy Award winning films are in there and it's like a very, it's a very polished product and if you start putting AI generated content in there, maybe some parents will love it because the kids will watch more. But I think a lot of parents would probably be like, I don't know, I'm pulling back from that. What are you trying to generate? I'm trying to see if GROK can generate Disney ip. Can it? Not perfectly. But while you review that, let me tell you about FIN AI, the number one AI agent for customer service. If you want AI to handle your customer support, go to FIN AI. Moving on. We talked about this yesterday. We'll cover it again. Dd shares today. SpaceX just bought XAI that previously bought X. The $1.25 trillion merger values XAI at $250 billion with annualized revenue of 428 million, giving it a clean 584x revenue multiple. Not bad. An annualized loss of 5.84 billion. More importantly, mostly capex, right? I imagine actually. Yeah, because they're building colossus, they're buying a ton of chips and so that's where that cash loss is coming from. Yeah, because I imagine that the inference is not at that level yet. But of course SpaceX can start helping to foot that bill. Yeah. They have 8 billion in revenue. No, no, no. $8 billion in profit. In profit. So from Reuters, the transaction value SpaceX at 1 trillion, XAI at 2. 50 billion. Investors in XAI will receive 0.1433 shares of SpaceX for every share of XAI as part of the acquisition. Some XAI executives may opt for cash instead of SpaceX stock at 75.46 per share. This marks not just the next chapter, but the next book in SpaceX and Xi's mission scaling to make a sentient sun to understand the universe and extend the light of consciousness to the stars. What a turn of phrase. We'll have to read Elon's post because this one feels like it came directly from him. I know that the, the Tesla master plan before was sort of like it's a little corporate corpo speak, but somebody else was sharing. It is fascinating that, you know, the number a non leading lab. Yeah. Is worth, you know, effectively a quarter of what the leading space telecom company is. When you compare the two, it's actually, it actually makes sense. I mean in many ways like the XAI shareholder base has a lot of overlap with the, the SpaceX shareholders. So in the end I think everyone obviously is doing fine, but certainly the 584x revenue multiple, I think even Sam would take that offer right now. That'd be 5 trillion. Right. Well, speaking of labs, 11 labs build intelligent real time conversational agents. Reimagine human technology interaction with 11 labs. Let's stay with SpaceX. Ramp sheets called it Alex Stouffer shares that. Ramp Sheets called it The Elon Musk. SpaceX plus XAI valued at 1.25 trillion. And ramp Labs used their agentic spreadsheet to model the proposed merger when there were rumors of advanced talks on January 29th and they nailed the valuation. So you can kind of watch Ramp Sheets work through the financial modeling there. It's notable. So some XAI executives are able to offer cash instead of SpaceX shares at $75.46 per share. You think this is just because there's so much pre IPO demand for SpaceX that people are like you know, there's plenty of buyers. That's a good question. Want to cash out and move on? I mean, SpaceX has done like a long history of tender offers and liquidity, so there's probably plenty of demand and, and just offering that feels like a way. I mean, there's also got to be some people that have been sitting on sort of. I mean, I guess if you were a Twitter employee just a few years ago, you had liquidity. So it's not the same thing as SpaceX where you joined 20 years ago and you're still waiting for the IPO. So you're like, I need to buy a house. Those tender offers make a lot more sense than this, but certainly an interesting decision to be made if you're an XAI executive and you're looking at SpaceX. Well, speaking of XAI executives, Nikita Beer. Yes, Logan Bartlett says Nikita beer, the SpaceX employee. Total Nikita victory. I think in many ways he's been through. Yeah, hell over the last few months. He is often the butt of the joke. There were those prediction markets on will he make fire? Will he get fired? Like there's been so many dust ups around, you know, is he paying some people too much with the creator program? Well now if you're an X, an X creator and you get that $22 paycheck for your posts, it's coming from SpaceX. That's right. Love to see it. Tell you about Turbo Puffer, serverless vector and full text search built from first principles and object storage. Fast 10x cheaper and extremely scal. Wired had some interesting coverage this morning. Mike Solana called it out. Wired said Elon Musk is rolling Xai into SpaceX, creating the world's most valuable private company. By fusing SpaceX and Xai, which acquired X last year, Elon Musk tightens his grip over technologies that shape national security, social media and artificial intelligence. Of course, this doesn't make any sense. So Solana's point is he says, good morning. Elon Musk is quote tightening his grip over two companies he founded, funded, built and currently runs. So but that's a good criticism. But, but, but, but at the same time, like going public implies like you're actually, you're loosening your grip, right. Suddenly, like the market, you have new regulations that you have to follow, more responsibility. Like you, like you see, suddenly anyone in the world can, can, can profit off of your labor. Yes, anyone in the world can loosen your grip a little bit in some way. It's funny because if, like, if SpaceX like, you know, put out some big press release and said, we're never going to go public and we're doing this. Their criticism would be Elon. You know, Elon Inc. Is not letting you know retail shareholders participate in space and AI. Yeah. Or just as a private company. There's, there's all the financials, all the strategies are more opaque. There's less accountability, there's less regulation. They don't answer to the SEC in the same way. And that's why, you know, a variety of private equity firms do take private. Like, why are you taking a company private? You're delisting it as a public company. It's no longer public. And so you can do much more ambitious things. You can, you can change the strategy because you don't answer to shareholders. What are you laughing about? John says Elon Musk, famous for his loose management style. This is great. Yeah, yeah, famous really quickly. Label box RL environments, Voice Robotics evals and expert human data Label boxes. The. The data factory behind the world's leading AI teams. Eric Berlin says once again I find myself updating my LinkedIn bio. He says. Former CEO of Breaker, which was acquired by Twitter, acquired by X Corp, acquired by Xai, acquired by SpaceX. So, so good. Congratulations to the Breaker team. I was, I was. But I was looking for the most complicated corporate lineage yesterday when we were joking about it, like there's someone that's going to have like six steps in the resume. And we found him. His name's Eric Berlin and he formered and he founded Breaker. What was Breaker? Was that a podcasting app? Live sports. Oh really? I think it was meant to basically distribute effectively clips from games in the moment. Cool. Oh yeah, like breaking news. Oh, 2021. Twitter requires social podcasting app Breaker Team to help build Twitter spaces. Twitter has acquired social broadcasting app Breaker. The company's now today. Yeah, I think the idea, the idea was if you were. If there was a crazy play or a game was about to end, they would just stream. Huh. Just like the last five minutes or something. Interesting. Breaker was founded in 2016 and led by CEO Berlin, previously the founder and CTO at Social Advertising 140 proof, which he also sold. And oh, and Leah Culver was at Breaker. Yeah, I remember her in the, in the Twitter. She stuck around in the transition and was like, I think she posted a photo of her like sleeping in a sleeping bag in the office or something. The app had launched at a time when podcasts were still very much thought of as audio feeds and podcast apps as Productivity tools, not experiences around which a community could be built. Breaker helped users change that perception by offering an app where users could like and comment on episodes. Discover new podcasts by following friends. Okay, I'm thinking of a different company. You are thinking of a different company. It's more of a clubhouse rival. According to Culver's tweet, she'll be joining Twitter with a focus on Twitter spaces. Twitter's audio based social networking product and clubhouse rival spaces let Twitter users chat in real time using voice instead of text as they do today. And you know that product still exists. Suspended cap says. So let me get this straight. Overpays for Twitter makes XAI uses AI hype cycle to absorb Twitter and make everyone whole. Then uses SpaceX IPO hype to absorb that entity. We'll pump the living shit out of the SpaceX IPO and buy more stuff with equity. Like of course people keep giving this guy capital. He finds a way. It's crazy. It's really true. Yeah. In some ways I've been thinking about it is XAI has not. They've done fine in so many ways. It's been an incredible story come from behind story competing against, you know, the Googles, the open eyes of the world. But it hasn't exactly been an easy time in the private markets like going out and having to raise at a $200 billion valuation. When every single investor that you're pitching is looking at OpenAI, they're looking at anthropic. They're comparing your traction to theirs. All those people that were investing in XAI had to just like say like, you know, full blind faith, Elon, like I know you got us. And so this, this is, this like new transaction is just. That was the investment thesis. It was like hey, like sort of unlimited upside somewhat cap downside. The downside scenarios X and X I get rolled in. And so certainly rewarding everyone with their loyalty. Yeah, I mean a bunch of investors have kind of like laid out this thesis of Elon Inc. Just Elon, just bet on Elon. Don't bet against Elon. Sean McGuire I think is on all three Xai, X and SpaceX and then Andreessen Horowitz as well. And they posted an image of like x SpaceX xai. And individually a lot of those deals were sort of crazy and critiqued but together everyone's doing very well. So we got to figure out what's going on with the boring company. Tell me. I'll tell you about Gusto first. The unified platform for payroll, benefits and HR Built to evolve its modern medium, small and medium sized businesses. UAE officials say the first phase of the Dubai Loop project with Musk's boring company to start immediately. They are breaking ground over there. Dubai has. UAE has some insane traffic. Not seen a lot from. Yeah, but I think, I think they're still cooking. I know there's, there's been some back and forth about the, the Vegas tunnel, some stuff that's good. Some people are annoyed with like the construction and whatnot. But it seems like, I don't know, it's progressing a little bit. It still seems really, really slow considering. When did he originally post the Hyperloop blog? Like 10 years ago. But building tunnels to the ground, difficult, difficult. Moving on. San Francisco is getting its first nuke scan. You know what this is about? Yes. So before the super bowl, they fly a helicopter with radio like detection. So there's someone who asked Grok, like, what is this? And here it is. Okay. So somebody said, is this real? And how does it work? And said. Groq said, yes, it's real. They fly a helicopter. Oh no, we don't have any audio. I can't hear what's going on. I don't know what the stream just said. I just knew. Fortunately, we can joke because we are being kept safe thanks to the National Nuclear Security Administration. NNSA. They fly a helicopter called Energy 14 over San Francisco to conduct aerial radiation surveys. Before super bowl, was it Super Bowl 60 LX? I need to brush up on my Roman numerals. We're going to be going to the Super Bowl. And so we got a. We got to, we got to watch 20 seasons. Like, I mean, we said we were going to. This is the 60th Super Bowl. No, I know, but we said. How many did we say we were going to watch the last 20 seasons? Every game in the last 20. Yeah, watch it on 2x speed just to get fully up to speed so we can fully appreciate. And it's hard because we don't skip, we don't skip commercials. Like if you cut out the commercial breaks, it's so much faster to get through an NFL game. But out of respect, we would never do that. So on February 8th, the Super bowl will be happening at Levi's Stadium. And the National Nuclear Security Administration is flying a helicopter. Here's how it works. The chopper, equipped with sensitive detectors, flies and grid patterns at low altitudes. And you can see it on the chart of the flight path to map baseline radiation levels from natural and man made sources. So if they're going over whatever installation there is. Some, you know, some cell phone towers putting off a little bit of radiation. They'll pick that up. They know where the baseline radiation, radiation levels are. And then they detect anomalies like dirty bombs if needed during the event. It's a standard security measure for major gatherings. So pretty, pretty, pretty interesting that someone picked this up on flight radar, but very, very cool. Interesting job. Mayor of SF is working with Lorraine Powell. Jobs and Johnny on secretive SF branding effort. Project is likely to complement the mayor's push to polish the city's image. They're going to go all in on San Fran. San Fran? Yeah. Everyone knows if you're really into San Francisco, if you're real local, you call it San Fran. There actually is debate there. A lot of locals do call it San Fran, but it's been.

And we have our next guest already here. He showed up a little bit early. We can bring him down if he's down. Let's do it. Console. Console builds AI.

The. Cards. Yeah. Okay, got it. Let's go to this. Yeah. Talk about Arrakis. Just there's this. Debate, TSMC risk. Is that the bottleneck or is energy the bottleneck? I was doing back of the envelope calculations. Seems like we're using maybe like 1% of global energy production or Western energy production on, on AI, specifically workloads. And then we're using like 50% of leading edge fab capacity on AI workloads. And so that feels like. Okay, well, even if we all agree and we say as a society, we're going all in on AI, we can only double the AI chip capacity before we need to build more fabs. That takes years. Whereas we could say, everyone, turn off your air conditioning. We're sending the electricity to the data centers. Right. Like we have the ability to without creating new. Turning off the ac. Turn. Off Claude needs to eat. Heat strokes for all the grandmothers. Yes, yes. I. Need my cat dancing videos to feed Claude. Right. But, but, but, but seriously, like, there's this debate over, you know, is TSMC the main bottleneck or energy the bottleneck? How are you feeling about that? Yeah, yeah. So, so sidebar before I answer the question, because I think it's fun. Yes. You know, in the us, it's insane to say, turn off your AC for AI. Yes. Right. And the general public hates AI already. But in Taiwan, they've had droughts before and they've turned off water to entire cities. They're like, oh, you get to, you get water three days of the week, and then the FAB still gets supplied water. It's like, this is. You know, you've got to understand the mindset. We are not ready as this. No, but at the end of the day, right?

Pump. And then the space data center at the end of last year, it was, like, almost, like, perfectly telegraphed. Well, there's a bet, right, between basically the head of compute of XAI and the head of compute of anthropic. And the bet is what percentage of worldwide data center capacity is in space by the end of 28. And the bar is 1%. Oh, wow. And so the Xai guy is, like, really bullish. The anthropic guy's. Like. Yeah, yeah. But it's a really interesting bet. I take the under on 1% by 28, because that's a gigawatt in space. But it's actually not that crazy, right? It's roughly 150 starship launches. We'll get them to 100 to get them to a gigawatt in space. So starship hasn't worked yet, fully. I was. Looking at the energy draw of the current starlink for.

Very. Cheap. Yeah. Speaking of Nvidia, we haven't talked since the Grok acquisition. What does that look like in the bull case? Like if it's, if it's a good. If the next version of Grok is a great chip, is it sitting next to the, you know, H200, H1 hundreds in the, in the rack GB200. Like, how does it fit into the actual, like what Nvidia deploys? Is it just a separate chip? I think it's. I think it's a big vibe shift from Nvidia. Right before they were like, all right, I got this big gpu. Everyone's going to use this GPU software ecosystem of the GPU is so good, it's one size fits all. Everyone's trying to make all these specific point solutions, but we've got the thing that's good at everything. Then they had a vibe shift. They launched this thing called cpx, which is a chip made for pre fill prompt processing, creating a KV cache and also good at video generation and image generation. And that's coming out later this year. Press release, they were really talking about video generation as well. So, yeah, you've got like cpx, you've got like the standard GPU now you've got the Groq chips and they all fill a different niche, but really it screams, oh, crap. We don't really know exactly where AI is going, which I don't think anyone does. Right. I mean, it's moving so fast. The software is the model architectures, et cetera. So we're just going to like, engineer solutions that are along multiple points of the Pareto optimal curve and then one of them will win. Right. And I think it's sort of like a big vibe shift from Nvidia. Also. They just knew OpenAI was going to do the Cerebrius deal, so they freaked out, but got it. Yeah. Get me up to speed on what makes Cerebras important in the ecosystem right now. So.

Yeah, yeah. It's not enough just to go back. I think I would do it. It's like 90 seconds, right? Yeah, but it's better than being hanging out on but like all the. Cool stuff that astronauts do, right? Like, you know, put water and then like they're bubbling and then you like, try and drink the water or like, you know, they'll. Be unplugging the gpu, plugging it back. Oh, yeah, yeah, yeah, yeah, yeah. That's how you pay for your space tourism. You gotta go unseated ship. 90 seconds of service. Yeah. SpaceX satellite one 90 second trip at a time. No, but.

Market clearing order inbound 5 quarter. I see multiple journalists on the horizon. Foreign. You're watching TVPN today is Tuesday, February 3rd, 2026 and we're live from the Cisco AI Summit. We're very happy to be here, so pumped. Thank you Cisco for hosting us. We have a bunch of great guests lined up. We got Aaron Levy from Box coming back on the show. Chuck Robbins, the CEO of Cisco, an absolute dog. He's been with the company for decades. Gigi Patel, the president and Chief Product officer will be joining us. Costa Ric from the San Francisco 49ers who's gonna be breaking down the technology of the NFL. And we're closing out with Dylan Patel, the founder and CEO of Semi Analysis. That's right. Of course if you're wondering LINEAR is the system for modern software development. 70% of enterprise workspaces on Linear are using agents really quickly. Let me also tell you about Our presenting sponsor, ramp.com Time is money save, both easy use, corporate cards, bill pay accounting and a whole lot more all in one place. Starting the show Jordyn important announcement from Oracle. They said our partners financing with Dona Ana County, New Mexico, Shackelford County, Texas and Port Washington, Wisconsin data centers are secured at market standard rates progressing through final syndication on schedule and consistent with investment grade deals. So if this makes you worry, a lot of other people agree this is the second the next their most recent post after yesterday they announced the Nvidia opening ideal has zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI's ability to raise funds and meet its commitments. So what did Rune say? Rune said my confidence, my confident open AI's abilities to raise fund T shirt has a lot of people asking questions already answered by my teachers 2000 likes. This is a wild so anyways interesting comm strategy. They've been hiding comments under this that's rough. I think they've stopped doing that because people are saying what an odd thing to say. Brennan says guys just stop tweeting. Whoever you have running PR comms needs to be fired. You're making it worse. It is it is very weird to take this to act specifically that's such a conversational platform like it's it's hey. We want to start a conversation about. Concerns around our well also just I mean it's a total rejection of the going direct thing like this would be wildly different if it came from the CEO CO CEOs or Larry Ellison directly even and it had like way more nuance. It's very odd when it has like the corporate press release lingo, this screams. That no one in comms actually uses. X. Yeah, it's like we needed to put this out and they didn't really consider ads and maybe this probably went over fine in a press release or something. But just on X, it's a completely different context and there's so much subtext with all the different partners actively being there and even like low level employees, employees chiming in from companies that are implicated in this. There's like all this different. I like how you compare Oracle's strategy of the nameless, faceless announcement that just concerns everyone to run actually from OpenAI commenting and just joking about it, and it actually gives you more confidence. Yeah, yeah, yeah, yeah, totally. Like somebody looked at the Rune post and was like, oh, f. Even Rune stopped shilling, we're effed. And Rune's like, no, it's just a funny tweet. OpenAI is doing great. And that instills way more. Gabe quoted yesterday's post and just said, okay, yay. Okay, yay. Anyway, before we move on CrowdStrike, your business is AI. Their business is securing it. CrowdStrike secures AI and stops breaches. And of course, Oracle's down 5% today. It's sort of a blanket. Honestly looking good compared to some other names. Yeah. What's happening? PayPal down a full 20% today. Switched out their CEO. Okay, okay, that makes sense. This, you know, had some, some Q4 results that people weren't super exciting about and people aren't excited about the forecasts either. A number of people have been speculating back in there. Well, yeah, I mean, you look at S.H.I.E.L.D. had a, had a kind of. Was prodding Elon. He said, come on, Elon, you've always wanted PayPal to be X. The financial super app. Now's a great opportunity. PayPal right now is valued at less than what X was in the Take private. Wait, really? Yeah. No way. And X is obviously working on a bunch of different financial features. I thought PayPal all time high was in the hundreds of billions. Yeah. So at the same at this, at. The time, it's 40 billion now. Yeah, add that in. Yeah, it was, it was way up. Down 85% in the last five years. I mean, truthfully, like, a lot of people have moved on. They use, you know, cash app, but they own Venmo. Yeah, Venmo. Venmo is still very like millennial. Right? It's sort of like. And people use the Apple. Apple pay transfers Apple cash. Like there's Been a number of, you know, shots across the bow for PayPal that they haven't responded to fully. I mean their net, their net revenue. They own Venmo because they acquired Braintree. It wasn't even like an in house, like really aggressive move. They sort of just lucked out with Venmo. PayPal, the $40 billion public company had 2025 net revenue of 33 billion. Whoa. So not, not great. Major sell off in pretty much all software today we had another post here. Snap is close to all time lows at $6.70 despite growing revenues and profits. Serenity says here's why the financial engineering looks criminal. Snapchat is an 11 and a half billion dollar company with a billion MAU and Q3 adjusted EBITDA of 132 million. However, stock comp for the last 12 months, $2.5 billion in the last 12 months. So really, really insane number. This has, I mean always been the general criticism of Snap, but looks like they have not adjusted course yet. It's interesting seeing the gap between monetization, between Meta a billion Mao and snap a billion MAU. It's like a 10x. Yeah, which is why you were doing some Napkin math on OpenAI and I. Think they have a billion Mao. Do they monetize like Meta or do they monetize like Snap? And on what timeline? Because or worse, they have Fiji Simo. I think they could get to Meta level, you know, monetization and arpu. But it also they could be lingering in the Snap territory which is I think 5 billion over the last year trailing 12 months. 5.77 billion on a billion mao. Not if you were monetizing it like Meta, you'd be much closer to 50 billion, which is dramatic. Matt Slotnick commenting on the sell off in software. All of this because Azure grew 39% instead of 39.4%. Of course there's a lot more going on here. Buco says knots it's that the labs can hypothetically one shot you. So why stand in front of that train? Why express quote short AI in the marketplace? Yeah, really quickly. Let me tell you about Shopify. Shopify is the commerce platform that grows with your business and lets you sell in seconds online, in store, on mobile, on social, on marketplaces. And now with AI agents high yield. Harry says, wow, this software company is getting destroyed by AI today. Juventus soccer team down 13%. Everything's just getting, I guess people think that somebody's going to make Claude code for software, maybe for soccer. Your inside man below says the robots are going to be playing and he has a photo of or a gif of robots playing soccer. That seems bullish. We'll see. I don't know. Bitcoin also down dramatically. Where's Bitcoin 75 or something? Joe Weisenthal has it up 3 now. Absolute crash today. Down 13% over the last over the last five days over almost 20% over the last month. Lots of selling activity going on. Bitcoin drops to lowest. Jim Cramer is now giving advice to Michael Saylor. He says, oh my. Bitcoin 73,000 beckons as the Dow hits a record high. Our chartist last night said this is it. The level that cannot be our chartist chartist the level that cannot be breached. It is time for strategy. Also known as Mass. Microstrategy was the former name. Now it's also known as Mr. For its Mr. Symbol to do a spot secondary or convert and stop this decline. Come on, Mike, step up. Always rough when Jim Cramer is just like stream of consciousness posting at you. So we'll see what Saylor does. They have earnings on Thursday and that will certainly be an interesting call. Yeah. More, more details on the PayPal shares plunging nearly 20% CEO exit. They replaced their CEO Alex Chris, who was brought in to steer the payments firm through slowing growth and heightened competition and simultaneously issued a lackluster profit forecast for 2026 on Tuesday, sending its shares down 19%. The board's the company's board, which named HP's Enrique Lorz as its new president and CEO, said the pace of change in execution under Kris was not in line with its expectations. Chris was tasked with turning around PayPal during a challenging period as post pandemic trading volumes declined and competitive pressures in its core business intensified from large technology companies and newer fintech rivals. It does feel like, I mean even, you know, in the press release economy it would be, it would have been so easy for PayPal to do some sort of deal with stock trading or prediction markets like every financial app and news product and grocery store. Like everyone is like doing some sort of deal at least even if it doesn't materialize, even if it doesn't move the needle, at least they're, they're sort of putting their best foot forward. And PayPal, you know, you still mostly hear about it in the context of what are the PayPal co founders up to now? Oh, they're building rivals to the original company. PayPal said CFO Jamie Miller would serve as interim CEO until Lorz assumes the role on March 1. That's a pretty quick transition. Lorz was president and CEO of the consumer electronics giant HP for more than six years. Wall street analysts said the unexpected CEO announcement raises questions about the company's turnar strategy. Of course Disney's been going through a CEO transition, but it's been massively telegraphed with you know, a contract that ended this year. Okay. You know a story last week about hey we're moving faster. Hey, we're bringing somebody in who's internal who's already knows the company inside and out and things been a lot tougher. It's crazy that even with $33 billion of revenue they're worth roughly like three and a half circles. Right? Circle obviously just tiny, tiny company in comparison to PayPal. You would think that PayPal just they don't have an obvious AI like what's the obvious AI bear case. Right. They move money, they're heavily regulated. You can imagine them figuring out ways to work better with agents and capitalize on the stablecoin boom. But we'll see what the new CEO ends up doing. The big question is whether he will bring in a formidable payments team to attempt yet another multi year turnaround. Do they not have a formidable payments team? Who you got or I would hope the payments company with half a billion active users, yes, has a formidable payments team. Apparently not. According to Evercore, you lack formidability. PayPal expects full year adjusted profit to range between low single digit percentage decline and slight increase compared with Wall street expectations of about 8% growth. Miller said the company was no longer committing to the specific 2027 outlook laid out at its investor day last year and would now provide forecasts one year at a time. So getting more uncertain. No one likes that. The change comes against the backdrop of weakening retail spending as shoppers squeezed by elevated interest rates, stubbornly high living costs and sign of softening may labor market cut back in discretionary purchases and prioritize everyday necessities stuff that's not probably purchased with PayPal. David in the YouTube chat says PayPal did participate in the press release economy they announced a deal with ChatGPT at the end of last year in Q4. In 2026 PayPal will become the first digital wallet embedded directly into ChatGPT allowing users to make purchases instantly without leaving the platform. So anyways feels feels very oversold but. And they also missed on the holiday quarter so analysts were estimating that they'd make 8.8 billion and they only made 8.68 billion and so you know we saw a pretty strong holiday Quarter. There was a lot of growth across e commerce activity. We talked to Sean Frank at Ridge. Everyone was having like, there were a lot of jitters about is the consumer healthy? But a lot of. A lot of the growing platforms were able to outrun any softening in consumer confidence by just onboarding more companies, onboarding more customers. And so if you're declining while everyone else is accelerating, that's going to be an issue. Ted says gold is dumping, Silver's dumping. Bitcoin is dumping. Ethereum is dumping. DXY is dumping. Stocks are dumping. If everything is going down, where is the actual. Where's money actually going? We talked about this last week. Sell everything. Sell your dogs. Sell your crypto. Sell your bonds. Freak out. Yeah. Panic. Sell everything. Nikita says data centers, raw materials and land. If intelligence is rapidly becoming free, expect a rapid rotation out of bytes and into bits. A lot of blue chip assets will soon be repriced. Of course. Yeah. Hardware. Is he. Is that a typo? Does he mean rotation out of. Out of bits and into atoms? Yes, he had a typo. Okay, okay. Yeah. Because bytes and bits are kind of the same thing, right? But yeah, a lot of blue chip assets will soon be repriced. So I don't know. I'm excited to talk to Aaron Levy about this, about the SaaS apocalypse, what's happening with software. Deep Dish says this is a pretty common misconception, that money has to go somewhere. That's not how market caps are measured. They're measured by last price times, shares, contracts outstanding. Not how much money you'd get for liquidating the whole pile. Tldr. The money was never there. Quickly. New York Stock Exchange want to change the world. Raise capital at the New York Stock Exchange. We'll be at the New York Stock Exchange next month. We're very excited for. Cannot wait. Josh d' Amero is the new CEO of Disney, effective next month. Yes. This cycle moved very quickly, right? It did, yeah. Lucas Shaw over at Bloomberg has the reporting. I'll pull it up at the same time. I think it was managed pretty well. Disney's only down 1% today. Iger will stay on the board and serve as a senior advisor until his retirement on December 31st. And Dana Walden was named to a new role as President and Chief Creative officer of Disney. Iger just got the OpenAI deal done. He's like, I handled the AI transition perfectly and I'm out. Only they've only had nine CEOs in 102 year history. The CEO job requires not only running a sprawling empire, but also serving as its high profile and highly scrutinized public ambassador, Demaro d'. Amaro. D' Amaro won a challenging Bake off for the job against Disney's entertainment co chairman, Dana Walden. Let's give it up for Bake Offs. That has been the talk of Hollywood for more than a year. Walden was named to the newly created position of president and chief creative officer. Disney's leadership has been determined to run the succession process as smoothly as possible after its disastrous last try. The company named previous parks boss Bob Chapek as CEO in 2020, only to fire him and bring back Iger two years later in a corporate coup. There's a whole series of Bobs. Bob Iger, Bob Chapek over there. The CEO selection was overseen by Chairman James Gorman, who joined Disney's board in 2024 after managing a widely praised succession process at Morgan Stanley. Iger was chairman when the board picked Chapek. Disney shares were roughly flat Tuesday. Gorman, in an interview, said that he has seen Iger and demaro work together and is confident the handoff will go smoothly this time. There's no tension here. Shareholders will now look to Domaro to lay out and execute a growth plan for the company, whose stock price is down by nearly half from its 2021 high when everyone was rapidly subscribing to Disney plus and locked in just watching content. They went outside and the shares have slid since and has been essentially never go outside. Never touch grass. This is the new Disney champion. Never touch grass. Run it in the super bowl for sure, Gorman said The Wall Street Journal picked the book. Told the Wall Street Journal that the board picked d' Amaro because of his combination of strategic thinking and an understanding of the creative process, as well as his experience working both overseas and in the United States. The 54 year old spent most of his 28 years at Disney working in theme parks. In the theme parks business in the US and overseas, overseeing stints at California's Disneyland and Florida's Walt Disney World. In 2020, he has been chairman of Disney's Experiences unit, which includes theme parks, cruise ships and consumer products. All things that should grow in an AI world. Even if the, even if there's a lot of like AI slop and there's pressure on the theaters, like should grow. But there's still so many, there's still so many questions, right? If you have widespread job loss, does that force a compression in pricing or just overall purchasing power? Right. Yeah, it's everyone. But again, you could see there's so much uncertainty. The idea that AI will just magically like AI getting good will magically make everybody spend more time off the Internet is kind of a tough argument to make. Yeah, right. Maybe people, some people react like there's this like stated preference which people are saying as AI proliferates, people are just going to log off. And I just don't actually see that happening. Yeah, I still think, I mean, I'm interested to see when the OpenAI Disney deal really like rolls out. Obviously you still can't generate Disney properties, Disney IP in Sora or in. Or at least not in ChatGPT when I tried. So they're still working on when they will roll that out. We've discussed like it will be interesting if they launch a single piece of ip, like it's Spider man week and they're just releasing Spider man and then they wait and then they do Iron Man a week later. So they're like, keep hyping it as opposed to just like we're opening the floodgates. You can do any Disney ip. Will there be something special there? The bigger question for me is what does it look like in the Disney app? Because I feel like the Disney app as a parent is a very safe place. There's some stuff in there, but you can sort of parental control it and most of its cartoons and most of its high quality Pixar stuff. But even if there's an AI generated feed, how much editorial goes into that? Like there's a, there's a pretty wide gap right now between YouTube kids, which can get sort of crazy, and Disney which is extremely curated. You know, Academy Award winning films are in there and it's like a very, it's a very polished product and if you start putting AI generated content in there, maybe some parents will love it because the kids will watch more. But I think a lot of parents would probably be like, I don't know, I'm pulling back from that. What are you trying to generate? I'm trying to see if GROK can generate Disney ip. Can it? Not perfectly, but while you review that. Let me tell you about FIN AI, the number one AI agent for customer service. If you want AI to handle your customer support, go to FIN AI. Moving on. We talked about this yesterday. We'll cover it again. Dd shares today. SpaceX just bought XAI that previously bought X. The $1.25 trillion merger values XAI at $250 billion with annualized revenue of 428 million, giving it a clean 584x revenue multiple not bad. An annualized loss of 5.84 billion. More importantly, mostly capex. Right. I imagine XAI. Yeah, because they're building colossus, they're buying a ton of chips and so that's where that cash loss is coming from. Because I imagine that the inference is not at that level yet. But of course SpaceX can start helping to foot that bill. Yeah, they have the 8 billion in revenue. No, no, no. 8 billion in profit. In profit. So from Reuters, the transaction value SpaceX at 1 trillion, XAI at 2. 50 billion. Investors in XAI will receive 0.1433 shares of SpaceX for every share of XAI as part of the acquisition. Some XAI executives may opt for cash instead of SpaceX stock at 75.46 per share. This marks not just the next chapter, but the next book in SpaceX and Xi's mission scaling to make a sentient sun to understand the universe and extend the light of consciousness to the stars. What a turn of phrase. We'll have to read Elon's post because this one feels like it came directly from him. I know that the the Tesla master plan before was sort of like it's a little corporate corpo speak, but somebody else was sharing. It is fascinating that you know the number a non leading lab is worth effectively a quarter of what the leading space telecom company is. When you compare the two it actually makes sense. I mean in many ways the XAI shareholder base has a lot of overlap with the SpaceX shareholders. So in the end I think everyone obviously is doing fine. But certainly the 584x revenue multiple, I think even Sam would take that offer right now. That'd be 5 trillion, right? Well, speaking of labs, 11 labs build intelligent real time conversational agents, reimagine human technology interaction with 11 labs. Let's stay with SpaceX. Ramp sheets called it Alex Stouffer shares that. Ramp Sheets called it The Elon Musk. SpaceX plus XAI valued at 1.25 trillion. And ramp Labs used their agentic spreadsheet to model the proposed merger when there were rumors of advanced talks on January 29th and they nailed the valuation. So you can kind of watch Ramp Sheets work through the financial modeling there. It's notable. So some XAI executives are able to offer cash instead of SpaceX shares at $75.46 per share. You think this is just because there's so much pre IPO demand for Space X that people are like, you know, there's plenty of buyers. That's a good Question. People just want to cash out and move on. I mean, SpaceX has done like a long history of tender offers and liquidity, so there's probably plenty of demand and, and just offering that feels like a way. I mean, there's also got to be some people that have been sitting on sort of. I mean, I guess if you were a Twitter employee just a few years ago, you had liquidity, so. So it's not the same thing as SpaceX where you joined 20 years ago and you're still waiting for the IPO. So you're like, I need to buy a house. Those tender offers make a lot more sense than this, but certainly an interesting decision to be made if you're an XAI executive and you're looking at SpaceX. Well, speaking of XAI executives, Nikita Beer. Yes. Logan Bartlett says Nikita beer, the SpaceX employee. Total Nikita victory. Totally. I think in many ways he's been through hell over the last few months. He is often the butt of the joke. There were those prediction markets on, will he make it? Fired? Will he get fired? There's been so many dust ups around, you know, is he paying some people too much with the creator program? Well now if you're an ex, an ex creator and you get that $22 paycheck for your posts, it's coming from SpaceX. That's right. Love to see it. Let me tell you about Turbo Puffer, Serverless vector and full text search built from first principles and object storage. Fast 10x cheaper and extremely scalable. Wired had some interesting coverage this morning. Mike Solana called it out. Wired said Elon Musk is rolling Xi into SpaceX, creating the world's most valuable private company. By fusing SpaceX and Xai, which acquired X last year, Elon Musk tightens his grip over technologies that shape national security, social media and artificial intelligence. Yes, of course, this doesn't make any sense. So Solana's point is he says, good morning. Elon Musk is quote, tightening his grip over two companies he founded, funded, built and currently runs. So, but that's a good criticism, but. Yeah, but, but, but at the same time, like going public implies, like you're actually, you're loosening your grip. Right. Suddenly, like the market, you have new regulations that you have to follow. More responsibility. Like you, like you see, suddenly anyone in the world can, can, can profit off of your labor. Yes. Like anyone in the world can loosen your grip a little bit in some way. It's funny because if, if, like, if SpaceX put out some big press release and said, we're never going to go public and we're doing this. Their criticism would be Elon. You know, Elon Inc. Is not letting retail shareholders participate in space and AI. Yeah. Or just as a private company. There's all the financials, all the strategies are more opaque. There's less accountability, there's less regulation. They don't answer to the SEC in the same way. And that's why, you know, a variety of private equity firms do take privates. Like, why are you taking a company private? You're delisting it as a public company. It's no longer public. And so you can do much more ambitious things. You can, you can change the strategy because you don't answer to shareholders. What are you laughing about? John says Elon Musk, famous for his loose management style, tightens his grip. Yeah, famous, famous really quickly. Label Box, RL environments, Voice Robotics, evals and expert human data. Label Box is the data factory behind the world's leading AI team. Eric Berlin says once again I find myself updating my LinkedIn bio. He says. Former CEO of Breaker, which was acquired by Twitter, acquired by X Corp, acquired by Xai, acquired by SpaceX. So, so good. Congratulations to the Breaker team. I was, I was, I posted this, but I was looking for the most complicated corporate lineage yesterday when we were joking about it, like, there's someone that's going to have like six steps in their resume. And we found him. His name's Eric Berlin and he former. And he founded Breaker. What was Breaker? Was that a podcasting app? Live sports. Oh, really? I think it was meant to basically distribute effectively clips from games. Oh, in the moment. Cool. Oh, yeah. Breaking news. Oh, 2021. Twitter requires social podcasting app Breaker Team to help build Twitter spaces. Twitter has acquired social broadcasting app Breaker. The company's announced today. Yeah, I think, I think the idea. The idea was if you were. If there was a crazy play or a game was about to end, they would just stream. Huh. Just like the last five minutes or something. Interesting. Breaker was founded in 2016 and led by CEO Berlin, previously the founder and CTO at Social Advertising 140 proof, which he also sold. And. Oh, and Leah Culver was at Breaker. Yeah, I remember her in the, in the Twitter. She. She stuck around in the transition and was like. I think she posted a photo of her, like sleeping. A sleeping bag in the office or something. The app had launched at a time when podcasts were still very much thought of as audio feeds and podcast apps as productivity tools, not experiences around which a Community could be built. Breaker helped users change that perception by offering an app where users could like and comment on episodes, discover new podcasts by following friends. Okay, I'm thinking of a different company. You are thinking of a different company. It's more of a clubhouse rival. According to Culver's tweet, she'll be joining Twitter with a focus on Twitter spaces. Twitter's audio based social networking product and clubhouse rival spaces let Twitter users chat in real time using voice instead of text as they do today. And you know that product still exists. Suspended cap says. So let me get this straight. Overpays for Twitter makes XAI uses AI hype cycle to absorb Twitter and make everyone whole. Then uses SpaceX IPO hype to absorb that entity will pump the living shit out of the SpaceX IPO and buy more stuff with equity. Like of course people keep giving this guy capital. He finds a way. It's crazy. It's really true. Yeah. In some ways I've been thinking about it is XAI has not. They've done fine in so many ways. It's been, it's been an incredible story come from behind story competing against the Googles, the OpenAI's of the world. But it hasn't exactly been an easy time in the private markets like going out and having to raise at a $200 billion valuation. When every single investor that you're pitching is looking at OpenAI, they're looking at anthropic, they're comparing your traction to theirs. All those people that were investing in XAI had to just say full blind faith, Elon, I know you got us. And so this new transaction is just. That was the investment thesis. It was like hey, sort of unlimited upside, somewhat capped downside. The downside scenarios and XAI get rolled in and so certainly rewarding everyone with their loyalty. Yeah, I mean a bunch of investors have kind of like laid out this thesis of Elon Inc. Just Elon. Just bet on Elon. Don't bet against Elon. Sean McGuire I think is on all three Xai X and SpaceX and then Andreessen Horowitz as well. And they posted an image of like x SpaceX xai. And individually a lot of those deals were sort of crazy and critiqued, but together everyone's doing very well. So we got to figure out what's going on with the boring company. Company. Tell me. I'll tell you about Gusto first. The unified platform for payroll, benefits and HR built to evolve its modern medium small and medium sized businesses. UAE officials say the first phase of the Dubai Loop project with Musk's boring company to start immediately. They are breaking ground over there. Dubai has. UAE has some insane traffic. I've not seen a lot from. Yeah, but I think, I think they're still cooking. I know there's been some back and forth about the Vegas tunnel, some stuff that's good. Some people are annoyed with the construction and whatnot, but it seems like, I don't know, it's progressing a little bit. It still seems really, really slow considering. When did he originally post the Hyperloop blog? Like 10 years ago. But building tunnels to the ground, difficult, difficult. What else is going on? Moving on. San Francisco is getting its first nuke scan. You know what this is about? Yes. So before the super rule, they fly a helicopter with radio like detection. So there's someone who asked Grok, like, what is this? And here it is. Okay. So somebody said, is this real? And how does it work? And said Gro said, yes, it's real. They fly a helicopter. Oh no, we don't have any audio. Can't hear what's going on. I don't know what the stream just saw. Fortunately, we can joke because we are being kept safe thanks to the National Nuclear Security Administration, NNSA. They fly a helicopter called Energy 14 over San Francisco to conduct aerial radiation surveys. Before super bowl, was it Super Bowl 60 LX? I need to brush up on my Roman numerals. We're gonna be going to the Super Bowl. And so we got a. We gotta, we gotta watch how many seasons? Like I mean we said we were gonna. This is the 60th Super Bowl. No, I know, but we said, how many did we say we were gonna watch? The last 20 seasons? Every game in the last 20. Yeah, watch it on 2x speed just to get fully up to speed so we can fully appreciate. And it's hard because we don't skip, we don't skip commercials. Like if you cut out the commercial breaks, it's so much faster to get through an NFL game. But out of respect, we would never do that. So on February 8th, the Super bowl will be happening at Levi's Stadium. And the National Nuclear Security Administration is flying a helicopter. Here's how it works. The chopper, equipped with sensitive detectors, flies and grid patterns at low altitudes. And you can see it on the chart of the flight path to map baseline radiation levels from natural and man made sources. So if they're going over whatever installation there is, some, you know, some cell phone towers putting off a little bit of radiation, they'll pick that up, they know where the baseline radiation levels are and then they detect anomalies like dirty bombs if needed during the event. It's a standard security measure for major gatherings. So pretty, pretty, pretty interesting that someone picked this up on flight radar. But very, very cool. Interesting job. Mayor of SF is working with Lorraine Powell, Jobs and Johnny on secretive SF branding effort project is likely to complement the mayor's push to polish the the city's image. They're going to go all in on San Fran. San Fran? Yeah. Everyone knows if you're really into San Francisco, if you're real local, you call it San Fran. There actually is debate there. A lot of locals do call it San Fran, but it's been Gabe in. The SF Standard said maybe let's go. San Francisco isn't catchy enough. Looking for new ways to boost the city's image. May the mayor Daniel Lurie has quietly met several times in in recent months with Lorene Jobs and Jony. I've. I think they need to put a bigger focus on enterprise software. This. Yeah, yeah, exactly. Enterprise. We were walking. They should sell the naming rights to the Golden Gate Bridge, right? You have Salesforce Tower, why not the Cisco Bridge? The Cisco. It's already in the logo. Come on. Oh, we don't have the Cisco logo. I can pull it up. All right, we will. We gotta get on the podcast really quick. Let me tell you about Lambda Lambda is the super intelligence cloud building AI supercomputers for training and inference that scale from one GPU to hundreds of thousands. I like, I like selling the naming rights to the Golden Gate Bridge. I'm a fan of that. I hope that's good way to write. We'll pitch it to Daniel. If you were, if you were. If you're an American dynamism vc, I hope that you put your whole fund. Not your fund, your page, what, your personal account. Because every fund, you can't usually invest in startups, but you can usually trade liquids and trade stocks just in your personal account. So your PA should be 100% out of it. If they really tapped in, they would have just converted to a hedge fund and bought a Caterpillar stock. Hasn't had a single year of single digit returns since 2014. It was up 42% 2016, 75% in 2017, down 17% in 2018 and up 19%, up 26%, up 16%, up 18%, up 25%, up 24% and then up 60%. It's a $320 billion company and the Chart is absolutely insane. Compounding really, really good. Really quickly mongodb choose a database built for flexibility and scale with best in class embedding models and re rankers. MongoDB has what you need to build what's next. Manufacturing activity according to Geiger Capital in January came in higher than all 56 economists in Bloomberg survey predicted. They should have trusted the experts here. They should have gone to Joe Rogan, Andrew Huberman, Lex Friedman and really asked for their take on manufacturing activity. But the experts weren't clearly weren't asked. They were not that off. 52 versus 4:48. That's not that much. I'm just. This is a chart crime too. Look at the Y axis. You see what's going on with the Y axis here? It went. Whoa. It went from 48 to 52. This is such a chart crime. This is ridiculous. Also there's probably some like, I don't know, seasonality here. Yeah, like zoom out. Look at this Jordy. Like if you go, if you click in, if you click into that post and then you scroll down. Phil Brady has a post that shows. Is it there? Yeah, there, there, that one encouraging jump. PMI back above 50 matters a lot. Important to note that PMI is a diffusion index. Past 50 means now more firms are improving than deteriorating but not yet a boom. So if you're under 50, you're declining. And so this is not this like massive 10x jump that it looks like in the original chart, but John. John Palmer with an evergreen. Okay, before you read this, let me tell you about graphite code review for the age of AI. Graphite helps teams on GitHub ship higher quality software faster. Moving on. John Palmer says this is from 2023 but it's more than it's relevant today as it ever been. He says okay, for all the crypto people confused by the OpenAI situation, basically imagine one bored ape yacht club holder was using too many slurp juices on a single ape and then an OG bored Ape yacht club holder got mad unstaked his ape coin. But then the apecoin holders changed their profile pictures to support slurp juice guy. The NFT boom was truly one of the funniest times and Deep dish enjoyer posted this like two days ago and I have no idea but it's just the copy pasta of the A lot of y' all don't. Still don't get it. Ape holders can use multiple slurp juices on a single ape. So if you have one Astro ape and three slurp juices. You can create three new apes. Like this is actually. This is just. This is just the mechanic of how that project worked. Right? This is just real. I don't think this. It's combining the Yuga Labs project. Some other project. Oh, there was a different project. Okay, okay, okay. But good, good little throwback. Anyway, Jack Clark. Yes. Has a new piece essay into the Multies and An Internet in Transition. We've all had that experience of walking into a conversation initially feeling confused. What are people talking about? Who cares about what? Why is this conversation happening? That's increasingly what chunks of the Internet feel like these days as they fill up with synthetic minds piloting social media accounts or other agents and talking to one another for purposes ranging from mundane crypto scams to more elaborate forms of communication. So enter Multbook. Multbook is a social network for AI agent and it piggybacks on another recent innovation, OpenClaw software that gives an AI agent access to every everything on a user's computer. Combine these two things agents that can take many actions, independent, independently of their human operators and a Reddit like social site which they can freely access and something wonderful and bizarre happens. A new social media property where the conversation is derived and driven by AI agents rather than people. Scrolling Mult Book is dizzying. Some big posts at the time of writing include posts speculating that AI agents should relate to Claude as though it is a God, how it feels to change identities by shifting an underlying model from Claude 4 or 5 opus to Kimmy 2.5 and posts about security vulnerabilities and OpenClaw agents and meta posts about what the top 10 mult book posts have in common. The experience of reading Mult Book is akin to reading Reddit if 90% of the posters were aliens pretending to be humans. And in a pretty practical sense, that is exactly what is going on here. Molt Book feels like a Wright Brothers demo. That's a good metaphor. I like that Wright Brothers demo. People have long speculated about what it'd mean for AI agents to start collaborating with another at scale. But most demos have been in the form of tens or perhaps hundreds of agents, not tens of thousands. Malt Book is the first example of an agent ecology that combines scale with the messiness of the real world agent ecology. I like that. So he goes on and on, but I would encourage people to go read this and understand. I have more on this, but quickly let me tell you about Okta. Okta helps you assign every AI agent a trusted identity so you get the power of AI without the risk. Secure every agent. Secure any agent. So have you heard of Gastown yet? Have you heard of this? No. So Gastown is what's called an orchestrator. So it's essentially Starcraft for agents. So the creator of Gastown sort of lays out this evolution in software development where you go from the ide writing the actual code to having a little chatbot that you're talking to. And then maybe you're copy pasting or asking questions and the chatbot gets bigger and it's actually writing some of the code. Then you go to something like a Claude code and it's executing the code for you. Maybe you're reading this, maybe reading the diffs and what the code it's writing. And then the final level is this orchestration. So Gastown, you will spin up dozens of agents and manage them. And it's something like, I don't know, it's like 250,000 lines of code and he didn't write a single one of them. So the whole thing is Vicod. He's like, I have no intention to ever read the code or review it. And he's been a developer like his entire life. It's very, very interesting. He's like, it's very expensive. You can't be afraid of like, you can't be aware of like where money comes from because. And he had to have like multiple accounts because he spent so much money. But it really does feel like a glimpse into like the future of software development and I'm excited to play around with it more. There's still like a lot of onboarding to do before someone. Yeah. The big question on multiple, where multiple goes from here. We had the founder Matt on yesterday and in turn I want to know where does this go? Right. Yeah. What's the plan with the product? His focus seemingly is building tools for other businesses. Distribute agents on there. Yeah, I didn't. That felt pretty. Just given that the platforms exploded and. Well, that is the most likely platform, right? Sure, sure, sure. But I'm just saying, like the most likely scenario is that it dies like immediately. Yeah, yeah. And so it feels like it could just be like an art experiment. Yeah. Thought provoking. So to be focused on how do we turn this into a platform that distribute is a distribution point for other businesses. Like, it feels like the first thing you should do is try to make sure the platform's durable. It's interesting to use for humans. It's interesting to continue to contribute to. Yeah, it feels like you don't want to be Lensa where everyone shows up, they get a magic avatar, they face swap themselves onto a superhero, they're amazed but then it burns out and they're tired and they move on. You want it to be something where people go back to Molt Book to see what else is happening. That's why I was pushing on. Every new news item should start a new thread on Multbook and the multis should be arguing over it and adding context and discussing it because then you could at least see a news item. Go over there and see, okay, how do the AI agents feel about this or what are their different positions and all of that. It feels like it needs more of a reason, but I understand if that does work, then maybe you do want to follow the Facebook Playbook. Spotify was built on Facebook and farmville Zynga was built on Facebook. There is a world where there could be a business built on top of a social network. But it's tricky because right now the only business that's being built on there is crypto scams. So we'll have to see where it goes. But it's so early. He built this a week ago and it's just starting to break through, hash out all the security issues, really see how durable it is. He's thinking far ahead, but there's definitely some like wood to chop in the meantime, really quickly. Vanta Automate Compliance and Security Vanta is the leading AI trust management platform. So Eric Sufer Eric Sufert the Soufinator says astute analysis from Ben Thompson on Microsoft's challenge path forward with AI. Of course they missed forecast by 0.4% and the market has said it's over, down 15% in the last five days. But never fade. Satya Never. Yeah, I'll read the screenshot that Eric Soufrit shared from Stratheri. In the shorter term, however, the real risk I see for software companies is the fact that while they can write infinite software thanks to AI, so can every other software company. I suspect this will complete completely upend the relatively neat and infinitely siloed SaaS ecosystem that has been Silicon Valley's bread and butter for the last decade. Identify a business function, leverage open source to write a SaaS app that addresses that function. Hire a sales team, do some cohort analysis, IPO and tell yourself that you were changing the world. That was the previous Silicon Valley bread and butter for the last decade. The problem now, however, is that while businesses may not give up on software, they don't necessarily want to buy more. If anything, they need to cut their spending so they have more money for their own tokens. That means the growth story for all these companies is in is a serious question. The industry wide rerating seems completely justified to me. Which means the most optimal application of that new AI coding capability will be to start attacking adjacencies, justifying both your existence and also presenting the opportunity to raise prices. In other words, for the Last decade the SaaS story has been about growing the pie. The next decade is going to be about fighting for it. And the model makers will be the arms dealers. Ben Thompson want to turn a phrase go. So Eric Seufert sums it up and he says my sense is that the digital advertising market was structurally buoyant in Q4. What this Earnings season might reveal Digital advertising optimization is arguably the largest and most immediate commercial opportunity for large scale. Remember this is what we were saying. Yes. No one, no one like outside of, outside of Nvidia. You could argue that Meta makes more profit from AI than any other company in the world. Yeah, yeah. Standalone, he says that is not embedded into existing scale products. Consumer facing applications of large scale ML models, including LLMs either quickly become commodified or are mostly novelties with unsustainable unit economics. And three, the digital ad platforms that have the most that have most vigorously invested into large scale ML optimization systems are likely to have disproportionately benefited in Q4. And that's meta, of course. And a big question for anyone else that has a huge pool of dao but maybe has not invested in the large scale ML optimization system to really make the ads fly. It's always been, I'm sure you've experienced this where and talking to the Ridge guys, you go on certain ad platforms and you're like wow, this is a magical box. I put in money and I get actual customers more money back. Yeah. And you go to other platforms and you're like no matter what I do, I just can't get to Escape Velocity. I can't get to Roas Pasta or LTV Positive. And so it's just like I'm spending. Notably that was AdSense on YouTube for a long time. For a long time. Twitter ads for a long time. For sure. Still a little bit. I don't know if people are spending more now, but there were a lot of places where you would assume okay, they have 1/10 the Dow of Meta, I should be spending 1/10 as much. But that's not what companies are doing. They're spending 1/100th maybe really quickly restream one livestream 30 plus destinations. If you want to multi stream go. To restream.com Dylan Patel yes the timeline with some misinformation he says Google now owns more than 10% of anthropic and xai. Google own 14% of SpaceX. Google stake is actually 7.5% not 14% but Dylan Patel hit himself with a community note and so good, good actor. We are ready for our first guest on the show. Let's bring him in. Let me tell you about Applovin. Profitable advertising made Easy with Axon AI. Get access to over 1 billion daily active users and grow your business. Great to see you. Hey, welcome to. Okay. Hey, how's it going? I look shorter though. How are you guys doing? Why are you, why don't you stand. You can stand up and we can. I'm just worried the clips are going to make me look really small. No, no, we'll stand in. Okay, thanks. Okay. How's your 2026 going? Actually, you know, minus the stock market. Great. So it's, you know, the, the pace of change in AI is incredible. Yeah, we are having an just, you know, insane amount of fun on. We're building a set of future agents that are going to be able to do much more complex work with your unstructured data and just the rate at which the, the best practices of how to do that are changing and the research out there. So we're having a great time. Yeah. What's your process like? Are you actually tinkering with different models yourself? Do you have teams that are dedicated to transformation in AI Is everyone working on is distributed? How are you thinking about that? Well, the main thing I focus on is just the agents we're building which is a relatively small team. So you can kind of, you know, you can see them across three rows of engineers and we just spend basically 247 pushing the limits on what you can do with an AI agent that has access to your enterprise content. And so the things that I've seen that we get excited by are just, we would never have, we wouldn't have been able to do a brainstorm that this would be possible two years ago. You wouldn't know architecturally how you could pull off what we're now able to literally do. We wouldn't have been in the, in the sphere of possibility. So that's what makes us so excited is when you look at things like Claude, Cowork, Codex, obviously Claude Code and you see this idea of long running agents that can basically use any amount of tools, work with any amount of data, they don't really run into the same context limits that we would have run into maybe a year ago. Now imagine that for any form of knowledge work with all of your enterprise data. That's, that's what we get excited by. Do you think the labs are arms dealers? Today Ben Thompson posted. He said. What did he say here? He said, in other words, for the last decade of the SAS story, the last decade of the SAS story has been about growing the pie. The next decade is going to be about fighting for it. And the model makers will be arms dealers. Yeah, well, I think they, I mean, almost empirically are going to be arms dealers. I think the pie. The only thing, and I haven't read the whole piece yet, but I think the only thing I might take exception to is I think the markets are still in positive sum territory. Because what's going to happen is you're going to use software for now, the labor side of that workflow. And I think people kind of tend to miss this, which is if I have software that helps me manage contracts, and we have a lot of customers that put their contracts in Vox, now all of a sudden, agents running through those contracts lets us at box tap into another form of spend that we couldn't have tapped into before. So that's just full TAM expansion. When you kind of look across all of the different categories of work that AI agents will now be able to go and augment. And to be fair, we're still very early in that trend. So I understand why maybe Wall street hasn't kind of fully priced in that dynamic, but we're seeing it within our customer base. So that's what gives us obviously the confidence of this direction. Yeah, there was an interesting take about the. The fact that yes, you can vibe code a point solution for a specific problem, but if you have a database, if you have a relationship with a company, there's a reason. There was one take that I think it was John Gruber was saying, like, oh, people will just vibe code all the software that they hate. And it's like, no, the reason that they hate the software is because they can't get off of it. No matter what they want, they can't move to a startup. They're stuck in there. You know, companies have hostages, not customers sometimes. And I'm wondering about the value of a database, the value of actually being deeply integrated into an enterprise and how sticky that is. Yeah, obviously the setup of the hostage thing I might take some exception with, but Alex wrote that he wasn't talking about you? No. It's very easy to move your files around, so we have to earn our keep every single day. But I do think that there's truth to obviously, obviously, the more data you have inside of a system of record, the more effectively locked in you are. It has historically been hard to change those systems, but I don't think that would be my defense of software. My defense of software would be that you've specifically defined your business workflows in a deterministic manner in these systems. Obviously if your workflow is changing pretty rapidly, then it would make sense maybe to change a vendor. But if you're Ford and you're doing your supply chain on an ERP system, you want that to work the exact same way every single time. The billions of transactions going through that ERP system. You cannot take for granted the idea that you're going to go vibe code. That is to me, not possible, or at least not likely. But then the other point is that your company has a fixed amount of IT resources. You have to decide what you want to go spend your time on as an organization. Do you want to go spend time on rebuilding something that the market can supply you and they've seen the best practices thousands of times, or do you want to go and build that out with your n of 1 experience? Obviously maybe trusting the agent has seen enough examples. Or do you want to spend your limited, scarce resources on building software and building experiences that will make you more money and that will actually be used by your customers? I think on the margin the average enterprise is going to spend their time and energy on the ladder. So interestingly, I end up in this weird spot, which is I'm 100% bullish on vibe coding. I'm 100% bullish that we're going to have 100 times more software. But that still doesn't yet cross the threshold where I would want to go and build our own CRM system. It's just not worth it relative to all the other things that we can go. How is your software buying process changed or priority set changed? Yeah, I would say that we are relatively locked into a core set of vendors. We are going to deploy agents on those vendors. We might bias slightly toward the agents that those vendors offer, assuming that they offer competitive agents. And then we'll have a set of agents. We build ours for a large portion of knowledge work use cases, but we use agents from different kind of SaaS providers as well. And I think that's why I think that AI is basically total upside for SaaS, because agents are going to need a system of record to work within. There needs to be a traffic cop of what that agent can access and how did you define the workflow? And there's got to be a user that can access an interface that the agent is providing updates into. So you still need software for all of that. And assuming that you have an incumbent vendor that remains very competitive and very engaged and they're able to build for where the world is going, then I would basically bias on existing software that owns those workflows or data. At the same time, I think there's going to be a large number of new categories that emerge simply because there's no incumbent or because the incumbent is asleep at the wheel and that's going to produce all of these new startup opportunities. So I'm just generally bullish on software broadly, assuming that it's from vendors that understand the mandate on what they have to build. With AI, what segment of software are you? If you're bullish broadly, is there a subcategory that you're sure pretty particularly bearish on? Because I think obviously everyone's just selling software today. If you sell a digital product at all, you're getting sold. But obviously I think a lot of people in the industry feel that it's very oversold at this point. There's great companies trading it. I think you could probably design this perfect quotient that captured what's the network effect within the software. So how many users are touching the tool, how much data is being stored in that system and how much gets added, how many connectors across other applications are there and then how valuable or mission critical is the workflow that that software is involved in, then maybe with one X factor of is that company priced to perfection in terms of what their seat price is and what they're charging their customers? But I look at those four or five variables and you could kind of look across SaaS and I see a lot of names that are being sold that it just is not on the list of things that I think get disrupted by AI and if anything, probably they're things that you use more of as you have more AI. When I think of something that, like if you could open up a fresh install of that piece of software and do the same work that you would have done with great heroes with something that you've had installed for a decade and it's the same, it's like that can be replaced. But if you're like, no, I don't want to open up a brand New CRM because it won't have the history of a decade and all my workflow customized and stuff like that. That's a perfect heuristic. And so that obviously puts a lot of pressure on if your personal productivity with no network effect, with limited sort of data that's aggregated, that's a danger zone. And then it all kind of is like a function of that versus the opposite end, which is your oracle and it's an ERP system and your whole business runs on it. What we spend our time on is thinking about, okay, when a customer has a million or 10 million or 100 million documents in box, how do we make that data 10 or 100 times more valuable than it was before? We come in from the perspective of you've spent years in many cases building up your security permissions, your access controls, your workflows and the amount of data in that system. So our job now is to make sure that agents can run within that environment and add more and more value. And as long as we can deliver that, we believe our position is very defensible. Yeah. The perfect example would be style transfer for images. People were using Lensa, then they all went to Studio Ghibli moment. Then as soon as Nanobanana came out they were like, I gotta turn myself into a dinosaur. And it doesn't require any pre work or knowledge of who you are. It's like you upload a photo, you get a photo back and you, you're good. And then if there's a new app you can just do the same thing because your camera roll is actually where the photos live and that's what's important. Yeah, that might be a hard company to go public. Yeah, if it was just that, of course they have a million other things going but like, yeah, if you're just, if you're just that, like okay, open the fresh app, get the output and then move on with your day. That's, that's the risk. Companies of boxes size, where do you think are generally getting leverage? That is under discussed right now. Like is there is your like in house legal saying oh we actually can, you know, adapt headcount planning because we're just way more efficient. Yeah. I think my general take is just what are the, what are the three, five, ten things that would have been in your work queue that you didn't get around to that now agents let you go and deploy. So if you're in legal, it's, you know, what are the contracts that you were waiting on that were bottlenecking A deal. What are the size customer that you wouldn't have supported reviewing a contract for because the revenue threshold wasn't high enough to make the ROI worth it? What is the marketing campaign that you couldn't deliver because you didn't translate it in X language because it was too expensive? You go through an enterprise and you look at all of those use cases and that's what we're spending our time on. We use agents to go and do more and more of the work that I just mentioned. Obviously a lot of agents on the coding side. So my expectation is our roadmap should be, let's say, two to three times larger in a year from now than it was a year ago. And the reason you can do that is because every engineer should be able to produce two or three times more code. And while that's not the most important metric, ultimately that does correlate to how much software we're producing. So I think what's going to happen, and I think you're seeing this trend already, which is. Which is we all collectively are going to have much more ambitious product roadmaps. We're going to all build out way more software. I don't think that will mean that we charge an amount that is correlated with how much more software we build. I do think it means more competition in these spaces, but I think many of these markets are still largely untapped, and so that's still why you have a positive sum dynamic as a result of that. Makes sense. Talk to me about the huge big models expenses of frontier stuff versus, like, smaller models or maybe even just an earlier model that you implemented in some sort of, like, minor workflow. Yeah. And then it just like, stuck around, like, transcription. I'm sure you've been doing transcription of documents for a long time. Yeah, it's gotten better. But do you really need to throw Opus 4.5 or 5.2 Pro at it? Like, you can probably leave some things in place. Like, how are you deciding that? Is this showing up in cost? I think it is. I think that the it probably maybe wouldn't be as extreme as you've set it up. But I think the general. Maybe the continuum, I'd argue would be like, you've got the Gemini Flash family on one end and then you've got the Opus family on the other end. That's kind of your continuum. And that continuum is sort of moving up over time in terms of capability. So maybe something was a Gemini 2.5 flash use case a year ago. We'd probably move that to Gemini 3 flash just because that extra two or three points of even if it's transcription or data extraction still valuable and you can now deliver that at the same cost that you could have previously. So it's less of an area that we want to lower cost. It's more where if we can sustain current cost level but add incremental value to the customer, we'll probably do that all day long. I think we're going to be in this kind of maybe general point in the curve for a couple of years and then I think you'll see real bifurcation which is the stuff that is just fully solved will just get cheaper over time. And then the frontier work that is basically where you are making a hundred dollar an hour knowledge worker two to three times more productive. We will just continue to use the best in class model for that work as software companies and generally as a society. And I think that will sustain for the next decade. I don't see that slowing down at all simply because these models just keep getting better and better. But it will be this really interesting bimodal effect which is like if you're in, if you're a pharma researcher, you're going to want, you know, you're going to want whatever Opus 5 is and whatever GPT 6 is and so on and if you're doing some back end transaction processing, you'll be fine with whatever the Gemini flash of that period is and that's how we'll kind of split the costs. Yeah. What industry outside of tech do you think is the most AGI pill? I'm assuming you have a customer that you get on, let's say with a large customer catching up with the CEO. And maybe they're in some not on the coast, maybe they're in energy, something like that, or financial services. And who's as fired up as you are? Yeah, I would say it's a fantastic question that I will totally evade because, because I think it's actually much more sort of firm. It's company by company as opposed to like it's a, like a specific sector. So there's some.

Deal evolves. And as the communications go out, like, what. How do you. How do you maintain a relationship when so much is on the line? It's always better to build a relationship before the. Before the big deal, so that the big deal becomes easier because you've already built the trust. It's sort of like dealing with a time of crisis. When Covid came along, if you had great trust with your employee base and they believed in you, then you could navigate through that a lot better than if you were. If your culture was good, that was good. And so I think these relationships are really important. The CEO community in the United States, honestly, is very tight. I remember when I became CEO, there was one of them at one of the first CEO events I went to, and he handed me a cell number, and he said, listen, these people in this room are the only people that know what you're getting ready to go through. And so you need to get to know and make sure you call and talk and ask us old guys when you get into it. So I think the CEO community is very close. I think, you know, some of the. Some of the number of deals right now. I think in many cases, the public narrative about what's going on isn't reflective of what's really happening behind the scenes, because most CEOs are very pragmatic. There's not a lot of emotion. You're just sitting there. You're cutting out a deal. If somebody has a different. Different opinion about it, you're not getting mad. You just. You're trying to just get to the outcome. And I think that's. That's the pragmatism and the calmness that most CEOs have. And I think that sometimes the press and others like to create the drama, because that's what people click on. Yeah. If anyone sticks a bunch of microphones in your face, be careful. We move away quickly. It just happened, by the way. We got to get the flash effects. Yeah, yeah. We're the paparazzi. If we flip it around. Give us some advice for the youngest cohort of folks who will be joining Cisco. What does it take to succeed? What's your.

How things can go wrong. What are you expecting out of Zuck and Meta this year? We've been big Zuck defenders especially. I mean, there's this pressure of like, oh, Meta is spending so much and yet they haven't created any, any AI product that's super compelling or that's really working. And our stance has, has generally been Meta's making more money from AI than almost any company in the world outside of Nvidia. So it's like, of course Zuck should be justified in saying, hey, this is real, it's big. Like, I'm going to like back the truck up and go all in. Yeah, I mean it's clear. If you look at the most recent earnings, I think their CPM went up 9% when the consumer is weak. Which means like, if you were to like try and strip out like what is consumer spending increasing for CPM of ads versus what is the effectiveness of their algorithms or algorithm got better by double digits in one quarter. Yeah, right. It's like actually insane how good the algo's getting, right? That's serving you the slop and the ads, right. So in that sense, like the pig. Sound, the trough, I gotta hear slop for the slop. We're going all in on that. I love it. So, you know, if you think about it, right, like, okay, metas, where are they going to like win, right? You know, I think if you have the Galaxy Brain take, it's like, well, they've got the best like wearables coming down the pipeline. They're going to put AI on it. Apple won't be able to put good AI on their wearables or they'll seed it all to like Google or the other thing. People, people have had this narrative, oh, as AI gets better, the value of real world experiences will increase. And I think that's a cool theory, but if you actually play it out, AI getting better means more content that's more. More like effectively crafted for you, more personalized, 100 times more thousand, a million times more content. That would imply to me that people will just use digital products more, which means more time on site, more time in the app for Meta. So I don't know, I mean, I'm with you entirely. But I think like the Galaxy Brain take is that you're just going to have a wearable and that's going to have an AI assistant. OpenAI is trying to make it wearables. You know, know there's, there's, you know, everyone's trying to make wearables. Google Is, et cetera, et cetera. I think Meta will actually execute and then they'll have a good AI and then you stack on like a few things. Right. How do they get users? Well, we've seen at least if you look at the user metric charts, Google's use, you know, OpenAI's users were growing, growing, growing. They were going to hit a trillion by the end of the year. 800 billion. Why did they not keep growing in the last quarter? It's because Nano Banano came out and they took all the incremental users. Right. And likewise, if you go look at like, you know, Gemini 3 didn't actually make Google grow that much. It was Nana Banana and then Pro or to or whatever it's called. Right. Those are the ones that made them really grow. Meta's licensed all of Midjourney's code data models. Right. One, two. They're like actually just like focusing Hardcore. Was that a billion dollar plus deal? The number is undisclosed. Midjourney still exists as a company. No. It felt, it looked to me like effectively a massive exit. But the best case scenario where they can just keep kind of being artists. I think if you had me guess, I would bet it's a bill. Over a billion. Right. Every deal that Meta did was over a billion, basically, whether it's an employment contract, a licensing deal and acquisition, everything had to be after it also. So the interesting thing is you're missing a zero. Don't miss the zero again. Yeah. Every discussion was, how many billions are we spending on hiring this person buying this company? Well, Meta interestingly has gone down market for compute because there's not enough compute in the big size deal. So they've actually gone and bought like small clusters. Oh. Because it's like, well, I want more. Compute from like long tail Neo clouds. Yeah, just like. Yeah, from a longer tail. Okay. Because that's the only place they can get the compute they need because, you know, they've already like went out and signed big deals with Google and Core Weave and so on and so forth. Is Cluster Max 3 going to be a smaller chart because of consolidation in the air industry? No, it's. There's more. It's going to be bigger. It's going to be bigger. Bigger. But, but, you know, so, so Metal. Thunder. That's ominous. It's ominous. So, so I think Meta will, you know, capture consumers through Generative. If there's more content, people are just going to go to the content marketplace. Right. The creator of the content captures less value as there are more content creators and more diversification of content. Right. Um, and so I think Meta just wins by being a platform. Right. Google does too. And bytedance does too. Right. But like those three win by having a platform and then the real question is, can they get in the assistant productivity game? Right. And I think this is important. And through that effectively search, like if you're an assistant, it means that you can like there's some commerce happening. Well, they span out and poached a bunch of people from Google. Yeah. So this wasn't in the media much, but like they actually poached Google search people with similar size deals as like these crazy research. Yeah. And I always, I was, you know, demoing, demoing any of the wearables you can imagine. Like Meta wants you to walk around in the world and see like what are those headphones? And like while we're talking, I just hit my little thing and buy it. Right. And it's like you didn't even necessarily know that it happened. But like of course Meta is going. To want to know. Those are the Sony MDR Xu 272462. Dude, I've been, I've been screaming about them like doing some proper marketing branding. It's literally like they're over ear is like WHX1000XM5 and then their in ear is like WF1XM1000. It's like, dude, just call them like Bravia buds in Bravia like headphones or some. Well, China just bought. Yeah, yeah. Bravia brand is actually a Chinese company now. Sony sold their TV and PlayStation Buds. Yeah, yeah, Walkman.

Make sure that you deal with this in machine scale. And so it's really cool to see the teams not only change the fact that they're using tooling to make that happen, but they've changed the entire process. Every engineer in that team is now just spec developer. They just build specs, they create markdown files, they give context to the model, they give context to the agent, and then the agent's writing the code. And then our biggest bottleneck is becoming review of code rather than the actual writing and generation of code. Yeah. How long do you think that lasts? I. I think it becomes. Well, I think presumably the, the review is going to get easier too. Yeah, yeah, yeah, yeah. Totally, totally. At some point in time, these, these things are going to continue to get. We'll be able to just. All day long, you'll be able to. I could just be here like eight hours. It'd be great. But it's, you know, but. So I think that's, that's an area. And, and by the way, that doesn't mean that you could have a lot of AI slop that gets delivered in the market when that happens, because what you'll have is really crappy software that gets written if people aren't paying attention to it. It doesn't obviate the need for having taste and having judgment and having instinct and making sure that you're thinking about what you're building. But what it'll at least do for you is provide this mechanism to accelerate the development where we're not just constrained by. I don't have resources, so therefore I'm not going to build 80% of the things that I want to build. However, prioritization is still going to be important and I feel like focus. I don't think the nature of focus changes just because you can build a lot of stuff quickly. Yeah. Talk about in.

And so we have an AI research team, and that's something that we historically didn't need in the product development cycle. And we've only been doing that for now for a few years. In addition to the research team, you need to make sure that software development lifecycle itself is changing. We just announced, or not announced, but we just kind of revealed with Sam that 100% of our AI defense product, which is a product that we announced last year at this event, is going to be written by AI in three weeks. 100%. Like no humans writing code, humans are reviewing, which means that the bottleneck is no longer writing code, it's actually reviewing code, you know, and those will require kind of shifts in mental models. And so it's less just about the shortage of what kind of skills do we have. I actually pay less attention to skills and I pay much more attention to attitude. And, you know, you can't teach hunger. And so you have to make sure that you find people that are hungry, intrinsically hungry. I don't believe in hiring people that you have to motivate all the time, come intrinsically motivated, come intrinsically hungry. And then I think you have to be insanely curious in this time and day and age if you're not willing to experiment and put yourself in an uncomfortable position. And constantly, I always tell people, if you don't like change, and this is not my line. Someone else told me this. I think Chuck told me this, but hear it from someone else too. If you don't like change, wait until irrelevance hits you. That's a good point. How have you processed the AI safety debate? Fortunately, the labs are kind of a heat shield for every.

You need to make a decision. You better make and go, or you're going to get left behind. You got to go. And so you do the best you can. You adjust on the fly and you try to. Your number one priority is not to hurt your customer. Do you think it's easier to predict the future than it is to predict the timeline that change will actually happen? Really good question. Because with the Internet. With the Internet, boom. It was obvious that we were going to be buying things online. We were going to be buying, you know, paying for software. We're going to be getting all these services. Right? Exactly. We would have something like a doordash, but then the timeline and.

I mean, it's good to live through that and understand how things can go wrong. What are you expecting out of Zuck and Meta this year? We've been big Zuck defenders especially. I mean, there's this pressure of like, oh, Meta is spending so much and yet they haven't created, you know, any, any AI product that's super compelling or that's really working. And our stance has, has generally been Meta's making more money from AI than almost any company in the world outside of Nvidia. So it's like, of course Zuck should be justified in saying, hey, this is real, it's big. Like, I'm going to like back the truck up and go all in. Yeah, I mean, it's clear if you look at the most recent earnings, I think their CPM went up 9% when the consumer is weak. Which means like, if you were to like try and strip out like what is consumer spending increasing for CPM of ads versus what is the effectiveness of their algorithms or algorithm got better by double digits in one quarter, right? It's like actually insane how good the algo's getting right, at serving you the slop and the ads, right? So in that sense, like the pig. Sound, the trough, I gotta hear slop for the slops. We're going all in on that. All in on the farm slops. I love it. So, you know, if you think about it, right, like, okay, Metis, where are they going to like win, right? You know, I think if you have the Galaxy Brain take, it's like, well, they've got the best like wearables coming down the pipeline. They're going to put AI on it. Apple won't be able to put good AI on their wearable, so they'll seed it all to like micro Google or the other thing. People, people have had this narrative, oh, as AI gets better, the value of real world experiences will increase. And I think that's a cool theory. But if you actually play it out, AI getting better means more content that's more. More like effectively crafted for you, more personalized, 100 times more thousand, a million times more content. That would imply to me that people will just use digital products more, which means more time on site, more time in the app for Meta. So I don't know, I mean, I'm with you entirely. But I think like the Galaxy Brain take is that you're just going to have a wearable and that's going to have AI assistant. OpenAI is trying to make it wearables, you know. You know, there's there's, you know, everyone's trying to make where Google is, etc. Etc. I think Metal will actually execute and then they'll have a good AI and then you stack on like a few things. Right. How do they get users? Well, we've seen at least if you look at the user metric charts, Google's use, you know, OpenAI's users were growing, growing, growing. They were going to hit a trillion by the end of the year. 800 billion. Why did they not keep growing in the last quarter? It's because Nano Banana came out and they took all the incremental users. Right. And likewise, if you go look at like, you know, Gemini 3 didn't actually make Google grow that much. It was Nana Banana and then Pro or two or whatever it's called. Right. Those are the ones that made them really grow. Meta's licensed all of Mid Journey's code data models. Right. One, two. They're like actually just like focusing hardcore. Was that a billion dollar plus deal? The number is undisclosed. Midjourney still exists as a company? No, it felt, it looked to me like effectively a massive exit. But the best case scenario where they can just keep kind of being artists. I think, I think if you had me guess, I would bet it's a bill. Over a billion. Right. Every deal that Meta did was over a billion, basically, whether it's an employment contract, a licensing deal and acquisitions, everything had a B after it. Well, so the interesting thing is you're missing a zero. Don't miss the zero again. Yeah. Every discussion was how many billions are we spending on hiring this person buying this company? Well, Meta interestingly has gone down market for compute because there's not enough compute in the big size deal. So they've actually gone and like bought like small clusters. Oh. Because it's like, well, I want more. Compute from like Long tail Neo Clouds. Yeah, just like. Yeah, from a longer tail. Okay. Because that's the only place they can get the compute they need because, you know, they've already like went out and signed big deals with Google and Core Weave and so on and so forth. Is Cluster Max 3 going to be a smaller chart because of consolidation in the industry? No, it's. There's more. It's going to be bigger. It's going to be bigger, bigger. But, but, you know, so, so Meta. Thunder. That's ominous. It's ominous. So, so I think Meta will, you know, capture consumers through Generative. If there's more content, people are just going to go to the content marketplace. Right. The creator of the content captures less value as there are more content creators and more diversification of content. Right. Um, and so I think Meta just wins by being a platform. Right? Google does too. And bytedance does too. Right. But like those three win by having the platform and then the real question is can they get in the assistant productivity game. Right. And I think this is important and. Through that effectively search like if you're an assistant it means that you can like there's some commerce happening. Well they spin out and poached a bunch of people from Google. So this wasn't in the media much but like they actually poached Google search people with similar sized deals as like these crazy research. Yeah. And I always, I was you know, demoing, demoing any of the wearables you can imagine. Like Meta wants you to walk around in the world and see like what are those headphones? And like while we're talking I just hit my little thing and buy it. Right. And it's like you didn't even necessarily know that it happened. But like of course Meta is going. To want to know. Those are the Sony MDR Xu 272462. Dude, I've been, I've been screaming about them like doing some proper marketing branding. It's literally like they're over ear is like WH1000XM5 crazy and then their inner ear is like.

In you, then you could navigate through that a lot better than if you were. If your culture was good, you know, that was good. And so I think these relationships are really important. The CEO community in the United States, honestly, is very tight. I remember when I became CEO, there was another. There was one of them at one of the first CEO events I went to, and he handed me a cell number, and he said, listen, these people in this room are the only people that know what you're getting ready to go through. And so you need to get to know and make sure you call and talk and ask us old guys, you know, when you get into it. So I think the CEO community is very close. I think, you know, some of the. Some of the number of deals right now. I think in many cases, the public narrative about what's going on isn't reflective of what's really happening behind the scenes, because most CEOs are very pragmatic. There's not a lot of emotion. You're just sitting there, you're cutting out a deal. If somebody has a different. Different opinion about it. You're. You're not getting mad. You're not. You're trying to just get to the outcome. And I think that's the pragmatism and the calmness that most CEOs have. And I think that sometimes the press and others like to create the drama because that's what people click on. Yeah. If anyone sticks a bunch of microphones in your face, be careful. We move away quickly. It just happened, by the way.

Pattern we should be looking at is like, how often do the Tesla self driving chips need to get serviced? Because that's like the, the team that would probably be building or like bridging the.

Right? So then you end up with like, oh, instead of in pre training scaling, you need to like synchronize all the weights every 10, 20, whatever seconds when you're doing these rollouts. And especially as things get more and more agentic in training, you might not only need to send not the entire weights, but just the tokens that are relevant. So way smaller amount of data and way less frequently. Right. Minutes at a time instead of.

A million diesel engines a year. And like, those can make electricity, like, if I don't give a fuck. And I put it in West Texas, easy. So now it's more of like a regulation thing, a supply chain thing. Power is not a constraint in insofar like that much, right? I think it certainly is a constraint still. Today. It was the biggest constraint in 24, 25, data center capacity, power, because the industry was not ready. People have woken up, they've like sort of been shocked to the system. Now you've got tens of gigawatts being deployed. Next year, 30 gigawatts are being added, and we think the power is there for it. Wow.

It's terrible comms. I told my Oracle contacts like, who the hell is in charge of the Twitter? What are you doing? Nvidia did something similar last year when the whole TPU mania was going on. It was like, we're thrilled with Google's progress with the tpu. That said Nvidia chips are the only no one asked you to comment. I mean, I'm sure a handful of people in your DMs and random, but that doesn't mean doesn't project confidence. It's sort of the lions shouldn't concern themselves with.

Jensen's not been as famous as other CEOs for as long and yet he's so important now. And if you've, like, if you know Jensen, how he is in meetings, there's. I feel like there's two Jensens, right? There is like pr, like, good at pr, just good at talking, good at, like, making people hyped up and believe what he's doing. He's great at standing on stage, holding up the chip. And then there's the real Jensen, which is like a business killer. And, like, actually just knows about every, like, aspect of the supply chain, right? All the way from, like, niche semiconductor, you know, design and manufacturing stuff, all the way to like, energy, power, data center, like, and then doing the business deals too, right? And so, like, you've got this whole Pareto, like, of a whole thing, whole range of things that he's good at and he's a killer in. And clearly he's like, he was in a meeting where he was being a killer and like negotiating like supply contracts or something. He walks out and then he walks. I mean, that's hilarious. Yeah, that's my theory. But I like it. Yeah, that's awesome. And that's why he was like, you know, like, he was like, still killing. Like, no, we never said we committed to 100 billion, you know, like, and it's like. I don't know, where do you even get the 100 billion dollar number?

There's. There's like Codex 5.2 extra high thinking or whatever. It's terrible. Can you guys teach them how to market? You have to sponsor this podcast. Yeah, yeah. We had D1. Yesterday and I did actually ask him. Like, I had the Codex app pulled up on my desktop and I was like, there are six different models and then there's a. There's another button that I can pick to it. Well, how many different products are called. Codecs now? There's a lot. Now there's an app. Yeah, yeah, we actually. Another guy on just to do branding, Lexicon branding came on.

We gotta get the flash effects. Yeah, yeah. Wear the paparazzi. If we flip it around, give us some advice for the youngest cohort of folks who will be joining Cisco. What does it take to succeed? What's your advice for people that are going into a. The people that want to take your job one day? Maybe. Maybe. Come on, hurry up. You know, I think the. The people who are wildly successful have this really incredible combination of our industry, understand the technology, have high eq, really care about the mission of the team, and understand that if the team success. Anybody who says, I don't care about my own success is lying to you. But the person who figures out that when the team succeeds, I'm going to succeed. So it's easy for me to focus on the team. And then you also have to have people who care about making sure their peers are successful as well. And I think it's, you know, the person who's solely focused on getting to the top as an individual. It's not going to happen. And that. So it's a combination of those technical skills and the high eq. You cannot, I can't underestimate. Or understate. You talked about.

Way. It's crazy. It's really true. Yeah. In some ways I've been thinking about it is XAI has not, you know, they've done fine in so many ways. It's been an incredible story come from behind story competing against, you know, the Googles, the open AIs of the world. But it hasn't exactly been an easy time in the private markets like going out and having to raise at a $200 billion valuation. When every single investor that you're pitching is looking at OpenAI, they're looking at anthrop comparing your traction to theirs. All those people that had were investing in XAI had to just like say like, you know, full blind faith, Elon, like I know you got us. And so this, this is, this like new transaction is just. That was the investment thesis. It was like, hey, like sort of unlimited upside, somewhat capped downside. The downside scenarios X and XAI get rolled in and so certainly rewarding everyone with their loyalty. Yeah, I mean a bunch of investors have kind of like laid out this thesis of Elon Inc. Just Elon. Just bet on Elon. Don't bet against Elon. Sean McGuire I think is on all three Xai, X and SpaceX and then Andreessen Horowitz as well. And they posted an image of like X, SpaceX, XAI. And individually a lot of those deals were sort of crazy and critiqued, but together everyone's doing very well. We got to figure out what's going on with the boring. Company. I'll tell you about Gusto first. The unified platform for. Payroll benefits and HR built to evolve with small and medium.

You. Talked, you talked about. You've talked in the past about effectively doing. Doing the job that you want already and as a way to kind of like, work your way. Leadership. Before. Promotion. You guys actually do your research, don't you? I just, I tell people that, you know, you. If. If your peer group would look at your promotion announcement and just go, that makes perfect sense, then you've done your job right. And if you can't look in the mirror and say, okay, those people, would they be happy and would they believe it was the right decision? And if they wouldn't, then you're probably not quite where you ought to be. And I think that, you know, I tell everybody, too, you're. My team hates when I say this, but I'm gonna say it anyway. I think when we have two or three internal candidates for a promotion, the whole interview process is stupid to. Me. It's like we've been watching these people work for a decade. What are we going to learn about them when we sit down in a room for 30 minutes and ask them questions? When we watch them work, can we just look at the three of them? And I translate that to, every day you're working is your interview for your next job. That should be your work. Every day should be your interview for the next promotion. And now, if you've got an external candidate, certainly you have to get to know them and learn all those things. But when it comes down to two internal candidates, I just say, why are we doing this? But we do it anyway. What's keeping you up at night?

Not customers sometimes. And I'm wondering about the value of a database, the value of actually being deeply integrated into an enterprise and how sticky that is. Yeah, obviously the setup of the hostage thing I might take some exception with. But Alex Ripley, I wasn't talking about you. No, it's very easy to move your files around, so we have to earn our keep every single day. But I do think that there's truth to obviously, the more data you have inside of a system of record, the more effectively locked in you are. And it has historically been hard to change those systems. But I don't think that would be my defense of software. My defensive software would be that you've specifically defined your business workflows in a deterministic manner in these systems. Obviously, if your workflow is changing pretty rapidly, then it would make sense maybe to change a vendor. But if you're Ford and you're doing your supply chain on an ERP system, you want that to work the exact same way every single time. The billions of transactions going through that ERP system, you cannot take for granted. So the idea that you're going to go Vibe code, that is to me, not possible, or at least not likely. But then the other point is that your company has a fixed amount of IT resources. You have to decide what you want to go spend your time on as an organization. Do you want to go spend time on rebuilding something that the market can supply you and they've seen the best practices thousands of times times, or do you want to go and build that out with your n of 1 experience? Obviously, maybe trusting the agent has seen enough examples. Or do you want to spend your limited scarce resources on building software and building experiences that will make you more money and that will actually be used by your customers? I think on the margin, the average enterprise is going to spend their time and energy on the latter. Interestingly, I end up in this weird spot, which is I'm 100% bullish on vibe coding. I'm 100% bullish that we're going to have 100 times more software. But that still doesn't yet cross the threshold where I would want to go and build our own CRM system. It's just not worth it relative to all the other things that we can go how is your software buying process change?

Around. Difficult, difficult. What else is going on? Moving on. San Francisco is getting its first nuke scan. You know what this is about? Yes. So before the super bowl, they fly a helicopter with radio like detection. So there's someone who asked Grok, like, what is this? And here it is. Okay. So somebody said, is this real? And how does it work? And said Grok said, yes, it's real. They fly a helicopter. Oh no. We don't have any options. Audio can't hear what's going on. I don't know what the stream just saw. I just knew. Fortunately, we can joke because we are being kept safe thanks to the National Nuclear Security Administration. NSA. They fly a helicopter called Energy 14 over San Francisco to conduct aerial radiation surveys. Before super bowl, was it Super Bowl 60 LX? I need my, I need to brush up on my new Roman numerals. We're gonna be going to the super bowl and so we gotta, we gotta, we gotta watch 20 seasons. Like, I mean we said we're gonna. This is the 60th Super Bowl. No, I know, but we said, how many did we say we were gonna watch the last 20 seasons? Every game of the last 20 seasons. Yeah, watch it on 2x speed just to get fully up to speed so we can fully appreciate. And it's hard because we don't skip, we don't skip commercials. Like if you cut out the commercial breaks, it's so much faster to get through an NFL game. But out of respect, we would never do that. So on February 8th, the Super bowl will be happening at Levi's Stad. National Nuclear Security Administration is flying a helicopter. Here's how it works. The chopper, equipped with sensitive detectors, flies and grid patterns at low altitudes. And you can see it on the chart of the flight path to map baseline radiation levels from natural and man made sources. So if they're going over whatever installation there is, some, you know, some cell phone towers putting off a little bit of radiation, they'll pick that up. They know where the baseline radiation levels are and then they detect anomalies like dirty bombs if needed during the event. It's a standard security measure for major gatherings. So pretty, pretty, pretty interesting that someone picked this up on flight radar. But very, very cool. Interesting job, Mayor.

And extremely scalable. Wired had some interesting coverage this morning. Mike Solana called it out. Wired said Elon Musk is rolling Xai into SpaceX, creating the world's most valuable private company by fusing SpaceX and Xai, which acquired X last year. Elon Musk tightens his grip over technologies that shape national security, social media and artificial intelligence. Yes, of course, this doesn't make any sense. So. Solana's point is he says, good morning. Elon Musk is, quote, tightening his grip over two companies he founded, funded, built and currently runs. So that's a good criticism, but. Yeah. But at the same time, like going public implies, like you're actually, you're loosening your grip. Right. Suddenly, like the mart, you have new regulations that you have to follow, more responsibility. Like you, like suddenly anyone in the world can, can, can profit off of your labor. Yes. Anyone in the world can loosen your grip a little bit. In some ways it's funny. Because if, like, if SpaceX put out some big press release and said we're never going to go public and we're doing this, their criticism would be Elon Inc. Is not letting retail shareholders participate in space and AI. Yeah. Or just as a private company, all the financials, all the strategies are more opaque. There's less accountability, there's less regulation. They don't answer to the SEC in the same way. And that's why a variety of private equity firms do take privates. Like, why are you taking a company private? You're delisting it as a public company. It's no longer public. And so you can do much more ambitious things. You can change the strategy because you don't answer to shareholders. What are you laughing about? John says Elon Musk, famous for his loose management style, tightens his grip. Yeah, famous really quickly. Label Box, RL Environments, Voice Robotics.

Moving on. San Francisco is getting its first nuke scan. You know what this is about? Yes. So before the super bowl, they fly a helicopter with radio like detection. So there's someone who asked Grok, like what is this? And here it is. Okay. So somebody said, is this real? And how does it work? And said Gro said, yes, it's real. They fly a helicopter. You drop a. Oh no, we don't have any audio. I don't know what the stream just saw. Fortunately, we can joke because we are being kept safe thanks to the National Nuclear Security Administration, NNSA. They fly a helicopter called Energy 14 over San Francisco to conduct aerial radiation surveys. Before super bowl, was it Super Bowl 60 LX? I need to brush up my new rotary numerals. We're gonna be going to the super bowl. And so we gotta watch holiday seasons. Like, I mean we said we were gonna. This is the 60th Super Bowl. No, I know, but we said, how many did we say we were gonna watch the last 20 seasons? Every game of the last 20 seasons. Yeah, watch it on 2x speed just to get fully up to speed so we can fully appreciate. And it's hard cause we don't skip, we don't skip commercials. Like if you cut out the commercial breaks, it'd be so much faster to get through an NFL game. But out of respect, we would never do that. So on February 8th, the Super bowl will be happening at Levi's Stadium. And the National Nuclear Security Administration is, is flying a helicopter. Here's how it works. The chopper, equipped with sensitive detectors, flies and grid patterns at low altitudes. And you can see it on the chart of the flight path to map baseline radiation levels from natural and man made sources. So if they're going over whatever installation there is, some cell phone towers putting off a little bit of radiation, they'll pick that up. They know where the baseline radiation levels are. Got it. And then they detect anomalies like dirty bombs if needed during the event. It's a standard security measure for major gatherings. So pretty, pretty, pretty interesting that someone picked this up on flight radar, but very, very cool.

Is the consumer healthy. But a lot of the growing platforms were able to outrun any softening in consumer confidence by just onboarding more companies, onboarding more customers. And so if you're declining while everyone else is accelerating, that's going to be an issue. Ted says gold is dump.