I think that's unclear. This is bullish for our vintage Neo cloud. Yeah. The oldest GPUs. Yeah. This was crazy idea yesterday. Yeah. We're gonna run this on 1080TI's from my gaming. People love. People love classic cars. Why not classic GPUs. Yeah, I mean it's like doesn't like how small the model is. Doesn't actually like matter on imagine. Imagine running your vintage neocloud with wood fired hearth powering it all. Yeah, but I mean you have to imagine that what's after Blackwell? What's the one that announced today? Vera. Rubin. Rubin. Rubin. You have to imagine that there will be models that only run on Rubin and need to be sort of re architected to run on Hopper. I would imagine. Sure. I mean I think there's like small performance boost that you can get or it might just be slower, but you can always. You can run any model on like any hardware. It's just like it could be like way, way slower because you have way way slower. The memory is on the fleet of A1 hundreds where you could just be on like, like a smaller rack of Rubens. Interesting. Well, that's exciting. Calsheet came out with the $1 billion. Before we talk about this, let me tell you about Sentry. Sentry shows developers what's broken and helps them fix it fast. That's why 150,000 organizations use it to keep their apps working. And let me also tell you about investing for those who take it seriously. Stocks, options, bonds, crypto treasuries and more with great customer service. So what did Kalshee launch? Kalshi launched the $1 billion Perfect Bracket Challenge. $1 billion for a perfect March Madness bracket. So you can win $1 billion for entering this competition. I haven't read the fine print, but it seems it is positioned that way. Vinnie says it would be hilarious if Citadel built out a team to attempt to find financially impair their competitors. So Sig Parametrics from Susquehanna is basically like the financial backer for this promotion. So if Citadel can figure this out, they could leave their competitor with a $1 billion bill. Yes. Obviously trying to nail the perfect bracket is functionally impossible, but never put it past. So there are nine quintillion possible brackets. So the odds of a perfect bracket are 1 in 9 quintillion. And I believe that they are capping. I like my odds. I like my odds. And I believe that they are capping entries at 10 million entries. So if you math that out and then you take some Insurance out, you should be able to hedge out any of the risk. If you are good and you don't suffer from any skill issues, you can basically, with strong basketball knowledge, if you have ball knowledge, apparently you can get the odds down to like 1 in 10 billion. And at that, you know, not from 9 quintillion to 10 billion. If you have 9 quintillion, you can sort them by how likely they are. Take the top 10 million. Maybe there's some kind of power law thing here where we actually. Yes, your odds are getting close. You're getting close. But I think if there's 10 million. If there's 10 million, assume that there's 10 billion reasonable brackets. And out of the 9 quintillion, so you're discarding all the craziest upsets to get to that 10 billion. You already ranked it and narrowed it down by like, what, six orders of magnitude or something. And then you're submitting the top 10 million of those 10 billion. Like your odds of winning are still one in a thousand. You can make it a thousand accounts. And that's a no. No, no, no. I think that they are capping the Entire campaign to 10, the first 10 million entries. So you have to be on Kalshi and you have myopenclaw already submitted nine quintillion. The SEC prepares proposal to eliminate quarterly reporting. If you liked earnings, I was thinking, like, is this bad for us? We like earnings days, but it's not like our whole shtick. So I think we'll be okay. We will continue soldiering on. Good. Alexander says finally, less transparency around financial results. Yeah, I don't know if this is going to be enough to make it easier to be a public company. It's certainly a burden, but the kind of shareholder lawsuit risk and all that other stuff feels like a much bigger burden. What this is just going to do is create more volatility. Right. If you're only getting updates twice a year, you can just see these massive swings because it's like, hey, we haven't heard from this management team in a formal capacity for six months. The business could have changed wildly. Growth rates fluctuating, et cetera. And so again, if you love volatility, you're probably going to love this. So it's good for the vix. That's bullish for VIX investors out there. There is a world where, I mean, the typical, like public versus private debate is that when you're private, you can think in multiple years depending on who your investors are, maybe think in decades Even whereas when you're in the public markets, you need to think in quarters. And so advancing that from quarterly to six months and you start putting management teams in. Okay, what can we deliver that will show up in six months as opposed to what can we deliver that shows up in three months? That's twice as long. It feels like you could wind up with better run companies doing more ambitious things. I don't know. There is a bull case. Yeah. I mean the other side of it is you just get more complacency. There's less of that. There's less of that. You're not like on the daily, the daily march, you finish earnings and you're like, okay, in 90 days we got to do this again. Like there's no days off kind of thing. So are you an advoc kit for monthly reporting daily daily earnings calls, potentially hourly. Just put, I mean this is the, this is the crypto folks. They're like, put it on the blockchain. I want to be able to see in real time the revenues of this asset stream and how things are moving around. I want full transparency at all times as an investor. I don't know. I think that there is a, there's a potential for a good outcome here, but we will have to keep an eye on it and see what actually happens. This is just a proposal. It's just the proposal isn't even. We are preparing for a proposal. So the proposal hasn't happened. We're preparing for the proposal and then it's an advanced idea. No, it's a preliminary talk. It's an advanced idea for a talk. For early talks. Around a proposal. Exactly. Around a potential proposal. You know, the FDA actually works that way. Anprms it's like advanced notice of proposed rulemaking. So they tell the industry, okay, we are thinking about making a rule. Good luck. Good luck. And then everyone's like, we're suing. Don't change the rules. Because I have set up my entire business for this particular set of rules and if you change it, it's like completely over for me. Because every business is like set up like this, like narrowly thread whatever regulation is there. Really quickly, let me tell you about vibe co. Where DC brands, B2B startups and AI companies advertise on streaming TV, pick channels, target audiences, measure sales, just like on Meta. And let me tell you about Cisco. Critical infrastructure for the AI era. Unlock seamless real time experiences and new value with Cisco. Nvidia. Nvidia announcing Nvidia DLSS5 and AI powered breakthrough in visual fidelity for games coming this fall. Video games are going to get more realistic. Prepare over the next couple decades this is going to be. This is. It's entirely possible this happens. Continue. Let's pull up the video. It's funny because when I. I want to see it big when I see the video. My thought was weren't video games already this realistic? But I haven't played video games besides Tetris on the chromatic. So let's play GeForce RTX DLSS 5. DLSS of course stands for deep learning, super shading. Something like that. Dlss, it uses deep learning. It's used AI for a long time. The whole pitch for DLSS super sampling, super sampling has. Has always been go from a 720p render to 4k up res. Just interpolate the pixels. This is different. You can see that the. It's not just becoming higher resolution, it is becoming gen AI. Like there is a world where you render that at higher res. The lighting is changing, the shading is changing, the makeup, the structure of that person's face is changing. But it's still driven by the underlying. Why are you posting the bubbles? Because I'm ranting. I want to see. You're not. DLSS 5 Do this. Oh yeah. But, but this is what we were talking about yesterday. We were like what will it take to get TVPN simulator photo real? I think we should try and pipe it through DLSS5. Although who knows what this is going to run on Because Nvidia is not shipping new graphics cards to gamers or something like that. They're delaying the next. The next gaming graphics hurt, but I think that looks better. I don't know. People are upset. There's a community note that has yet to be accepted, but the community notes are not happy. Like one of the community notes is just AI slop. And it's like, yeah, that's in the name. It's deep learning. Like what do you think the DL stands for? And also why are we on DLSS 5? Oh, because this is like a decade old technology. I don't know. People are very upset. One of the community notes and AI technology has fastest effects on the environment. The majority of gamers did not ask for this. Are those the most photorealistic video games that we have today? And then they're showing how they're even getting more realistic. No, no, no. Yeah, because they don't look. They look like games that are kind of like animated characters that aren't trying to be photoreal. So there's A range of games there that some of them have pretty outdated engines, pretty outdated rendering pipelines. Some of them are on the latest and greatest and look very high fidelity. There's also a whole bunch of trade offs in game development around the scale of what you're building and how, how many, you know, poker chips you want to put into great graphics. If you're making some moody first person shooter that's going to be dark and there's going to be lots of, you know, like blood splattering and aliens and stuff like, you could potentially make it ultra photoreal. But if you're trying to build like something like Minecraft, it's like this massive world that's interacted with a ton of different people, like by narrowing down the scope. Like the beauty of Minecraft was that the whole thing's voxel based, which is like these little blocks and so the computer can store like an entire world very efficiently. Because all it needs to say is just there's a cube there and it's green, there's a cube there and it's black, there's a cube there and it's gray. What do you think? I was going to say Minecraft is a good example of what this can improve. Right. If you go to the next post, this is what Minecraft could look like. This is what Minecraft could look like. There are drawbacks, obviously, because you're driving the style transfer from the particular images from the shape. You're not reconstructing the entire image. You, you're just applying this re rendering on top of the underlying structure. And so you can get really weird outcomes like this. Of course you can re render the full scene, but if you're doing that on a per frame basis, that's powerful. So right now it's powerful stuff. Basically what we're seeing with DLSS is the best AI can do in 10 milliseconds, I think, or something like that. Because it needs to do this. Basically, if you're running a game at 60fps, it needs to be able to do it 60 times per second. So you can't be waiting around for images in ChatGPT or Nano Banana to cook for a minute on each frame. It has to be real time. But also on consumer hardware, right? Yeah. On consumer hardware, this is not going to be like hosting the cloud. Yeah. The whole point is that it can run in your gaming PC. And by that token, this feels like it's not just four years behind. This feels like it's like one or two years behind in terms of the actual quality of the output. I'm actually pretty impressed. If this was going back to like Dall E2 quality, I would have expected that. Because Dall E2 is running on a fleet of a 1/ hundreds H100 something. Sure. But I mean the underlying tech is very different. Right. Because you have like a very clear ground truth. Ground truth. Right. Where it's like, you know, what's supposed to be there. There's this kind of upsampling. Well so I mean the data pipeline here, the actual ground truthing is a little bit harder for something like this. They probably have to use ImageGen to generate the high res versions to actually generate all that. Because previously DLSS was really easy to train because you would just go and run the game at 4K on great hardware and then go and run the exact same. You would render it twice like from the same exact game footage. So you'd have someone play the game and on one monitor it'd be 720p, on one it would be 4k. And then they would record both and they would say these are exactly the same thing. Every frame is the same. Learn how to take the 720p image and create the 4K image. Now they have to say, okay, well we have a 4K image. Let's run that through a Genai pipeline to make it like photo real. Do that a ton. Probably on a fleet of GPUs that are not consumer hardware. Then you have your training data. Then, then you go run the DLSS pipeline and get this style transfer algorithm that can run 60fps anyway. There have been open source image models that have done really good upsampling for a while now. But at this level. Are you talking about up resing or are you talking about. I would consider this re rendering using something that feels like diffusion. This feels like. Because if you look at any of these examples, it's very clear that they're not just increasing the pixel count. Like the hair in that woman, in that woman's image. Like, like the hair has a different shape after you turn DLSS on. It's not just higher resolution. Yeah, that's true. So like there has to be something like, like that they're training on. But. And I think that there probably will be very small hallucinations still if you were like to zoom in. Whereas that wasn't really true with like the, the 720p to 4k pipeline, like you would get like, like whatever the cutout of that image was that you were uprising would remain the same. Whereas this is Actually like re rendering it basically, well, none of this will matter when we have a billion GPUs in space. Let's head over to space. Let me tell you about phantom cash. Fund your wallet without exchanges or middlemen and spend with the phantom card. And let me also tell you about Okta. Okta helps you assign every agent a trust so you get the power of AI without the risk. Secure every agent. Secure any agent with Okta. Take us to space, Jensen. Let's listen to Jensen talking about data centers in space, courtesy of Nick. I'll spend very little time on this at this time, however. We're going to space. We've already been out in space. Thor is radiation approved and we're in satellites. You do imaging from, from satellites. In the future, we'll also build data centers in this. In, in, in space. Obviously very complicated to do. So we have, we're working with our partners on a new computer called Vera Rubin Space one. And it's going to go out to space and start data centers out in space. Now, of course, in space there's no conduction, there's no convection, there's just radiation. And so we have to figure out how to cool these systems out in space. But we've got lots of great. I'll spend very little time on that. Lots of great engineers working on. Was very funny listening to Dylan Patel talk about space data centers and saying that like, yeah, even if you solve everything, like it's still hard to make chips. It's just like it still comes back down to the chip bottleneck above all else. Yeah. I mean, this is why you see Elon doing the terafab thing, right? Yeah, Yeah. I really want to know what his plan is for that because has he put in an order for a tool or is he going to do Terra ASML? Because there's like, the supply chain is what, 10,000 companies? 10,000. I mean, historically, they've, they've gone super, super early in the supply chain. Right. They've been like, you know, mining stuff. Yeah, yeah, yeah, yeah. But I don't know. Tool making is special, special industry. Well, speaking of Dylan Patel, semianlysis was featured at Nvidia gtc. The inference king has been crowned. Nvidia won a massive belt. And it looks like Jensen's holding it up. He is, in fact, standing in front of a LED wall or projector. But a beautiful thing to see. The semianalysis logo. It's all WWE. The entire world is WWE. Nvidia extreme co design revolutionized token cost. The GB NVL72 is the inference king with 50x higher performance per watt on inference x by semi analysis 35x lower cost. Very, very exciting. And congrats to Jensen for becoming the Inference King and winning the Inference Max Award or Inference X as it's now known. Jensen is also confirming what we see in our GPU availability data. There is an epic scramble for compute B200 basically unavailable availability for GH Grace Hopper 200, H200 and A100 also collapsing. Low availability means high demand and people were kind of going back joking about like he said, like 1 trillion of demand or something over some period of time and people were like oh, so he's guiding down. It's like, I guess that's where we're at. Yeah, it's hard when you're doing cumulative revenue. Let's move over to a much smaller deal for Netflix and Warner Brothers and the final deal which went to Paramount of course. And David Zaslav is in the Wall Street Journal. First, I will tell you about Vanta Automate Compliance and Security. Vanta is the leading AI trust management platform. So David Zaslav DealPay could top $800 million after last minute tax benefit so Warner Brothers chief executive David Zaslav could collect more than $800 million in severance and other payments after rival Paramount acquires the company. The sum of cash includes sum includes cash and payments for options and restricted stock holdings, as well as a newly adopted tax reimbursement for Zaslav in a securities disclosure filed late Monday. The total doesn't include the more than 20 million he's likely to get for shares he owns outright, so he's been he's been investing as well. About 504 million is due to Zaslav if the deal closes, the company said, while 47 million would be triggered if you he is fired or leaves under certain circumstances within a year of the close 116 million in equity has already vested. Some 335 million would only kick in if other payments trigger a 20% federal excise tax on golden parachute severance payments he receives. The ultimate value of the payout is based on tax code rules that are expected to cause it to significantly decline with the passage of time, the company said in a filing. Without the tax payment, the the total would be about 667 million. Companies typically try to keep severance at or below three times salary and target annual bonus to avoid or minimize the tax, and investors often criticize companies for reimbursing or grossing up executives for the tax. The Company said Zaslav wouldn't have to pay the excise tax if the deal closes in 2027, which would save the company costs of the tax gross up. So there's been a lot of back. Yeah, a lot of people are. Did he earn that? Yeah, absolutely. And the reason that I think it is warranted from a business standpoint is when we were sitting here last year talking with someone who won't be named in the media space, somebody who has done deals not at this scale but in the billions of dollars, he was sitting here telling us at this very table that he didn't think there would be any bidding process at all. And it was just going to land with the Ellisons for a pretty predictable price. And Zaslav did his job as CEO to get the best possible price for shareholders. And it's remarkable. And that is why, you know, he was able to have outsized impact. He's getting, he's getting outsized compensation. He increased the enterprise value through his deal making by tens of billions of dollars and he's getting a significant but I think warranted payment. And if you don't like this, then you probably don't like the game of business very much either. Or you think Warner Bros. Discovery should have just used openclaw on a Mac Mini or something like that to negotiate the sale. Put the whole company on ebay and let everyone bid, just do an auction. Actually ebay's fees are pretty high I think. I think ebay takes like multiple percentage. So they would take a higher fee. I think they would take a higher fee actually it's like $100 billion deal. Don't they take like 3%? So by that maybe we're saving money using a human in this case. But of course some of what he did, you know, between the dinners and the photos and all of these different negotiations and somehow continuing to get Paramount to make offers but then say that it wasn't their best and final. I don't know how you do that. He's clearly multiple offers back to back that were the best and final. But quickly, let me tell you everyone about Lambda Lambda is the super intelligence cloud building AI super computers for training and inference that scale from one GPU to hundreds of thousands. And without further ado, we have carried no interest. The anonymous X user with the most fantastic profile picture. How are you? As always, no interest. No, pretty well, I'm going to repeat, carried no interest as many times as possible so that I don't say your real name. Carried your real name. Good to have you here carried. Thanks for taking the time to join the show. Why don't you tell us what's been on your mind lately? Well, feels like the chickens are coming home to roost in old private credit software land and gonna take a little cheeky victory lap here and say, who could have predicted this? Who could have predicted this? No one could have predicted this except you. On December 12th of 2024, you wrote a post called the Bubble in Software Private Equity Private Credit Edition, and you did a deep dive on a ton of lending data and discovered you said some hilarious stuff. You said, for a while there have been rumors forming that a bubble in private credit related to private equity. I'm somewhat certain a mini bubble forming in software, private equity, private credit, and then you get into it. So what were you seeing back then that prompted the post? So what I was seeing, right. And it's wild that kind of a nameless private markets investor with a pitchbook subscription, no intentional advertising for them, just there, was able to pull this data and knew it themselves. But anybody with a pitchbook could have done it. What prompted this is that I was simply being shown deals by investment bankers where the financing structure, I think, would make the average American kind of scratch their head. If you had told the average person on the street that you could take a business with $100 million in revenue and no profit and lever it up to buy it with no profit at all and have to repay a good chunk of it in four years, your average American would go, no way. That's not a thing that you're allowed to do. But depending on how good your relationship was with a certain subset of private credit lenders, that is certainly a thing that was allowed to. And so what prompted the post was that I kept being shown deals with financing structures I could not believe from very good sponsors historically, who were excellent. And then I thought to myself, you know what? I'm just going to pull this data from Pittsburgh, do this thing myself. And what I found was this giant bar in the years 2028 and 2029 where a lot of my wonderful colleagues in software, private equity.

That's misinformation. Court declaring order hit. Let's just rock. We are surrounded by channel. Forging position. Come on, get up. Trust the experts. 5. We are experts. Founder melv. See multiple journalists on the horizon. Standby. Uav online. Glaze. Double glaze. Triple glaze. Double kill. Five killer. More. Cook is up wins. Team death match. We are experts. Let's just roll, right. Market clearing order inbound. You're surrounded by journals. Hold your. Strike 1. Strike 2, Activate. Go, Go. The retriever mode. Clearing order inbound. I see multiple journalists on the horizon. You're watching TVPN. Today is Tuesday, March 17th. It's St. Patrick's Day. We are live from the TBPN Ultradome. The temple of technology. The fortress of finance. Let me tell you about ramp.com time is money save. Both easy to use. Corporate cards, bill pay, accounting, and a whole lot more all in one place. Let me also tell you about Shopify, because that's why I have this green suit. Shopify is the commerce platform that grows your business. Lets you sell in seconds online, in store, on mobile, on social, on Marketplaces. Happy St. Patrick's Day. We are not drinking Guinness currently. We hope that you are. Yeah. Enjoy it. Very exciting. I haven't seen a lot of St. Patrick's Day posts on the timeline. What's going on? We got to step it up. I feel like we should have planned, you know, much, much more. But it seems like Tyler is in the St Patrick's Day mood and is wearing a fantastic St Patrick's Day hat. Let me think of my hat. How did you wind up here? That's a nice hat. Where did that come from? Did we just have that? No, I had this. Oh, you just had it? You had it? You had it handy. You just daily drive that? Yeah. Okay. Yeah. It wasn't in your car. Yeah. You wore it to the gym this morning. Okay. Oh, yeah. Cool. Yeah. Apparently got to wear green. Jory's going with a little bit of a darker green today. But we will still be having fun. Let's pull up the linear lineup, show you who we have on the show today. Carry no interest. The anonymous poster is coming on the show at 11:45. Then Shamshankar from Palantir Technologies is coming for a massive book launch. We're very excited about that. And then we have a lightning round going through cybersecurity. Ceramic AI. We have Gecko Robotics on the show. I don't know how familiar you are with Gecko Robotics, but it's a very, very interesting company. Where they crawl up oil and gas infrastructure like literally like geckos and will inspect everything. There's a lot more to the business. So like humans in gecko outfits crawling around? No, robots. Robots, yeah. Okay. They've been doing robots for a long time. Okay. Well, linear, of course, is the system for modern software development. 70% of enterprise workspaces on LINEAR are using agents. So in the news, the Wall Street Journal has an article about this is a scoop from Berber Gin. We didn't have to break down the paywall because we get a copy of the Wall Street Journal every day. Although I don't know if this particular piece made it into the print edition today. It might be in the print edition tomorrow. But Berber Ginn has a Scoop. It says OpenAI's Fiji Simo told staff last week that the company could not afford to be distracted by side quests. Main quest only, main quest only. What is the main quest? Probably just scaling computer compute, but we'll get into that. And there's a whole bunch of takes back and forth, said the company execs are actively looking at areas to deprioritize. Of course. Throughout last year OpenAI launched a ton of different initiatives across consumer hardware. And I think a lot of people were starting to say like okay, do you want to be fighting a battle on all these different fronts or do you want to just really nail consumer, nail enterprise? And now that is what they are signaling internally. So from the Wall street journal article, OpenAI's top executives are finalizing plans for a major strategy shift to refocus the company around coding and business users, recognizing that a do everything all at once strategy has put them on the defensive. Fiji Simo OpenAI, CEO of Applications, previewed the changes to employees at an all hands meeting, telling them that top leaders including Sam Altman and Mark Chen were actively looking at which areas to deprioritize. They expect to notify staff about the changes in the coming weeks. We cannot miss this moment because we are distracted by side quests. Side quests is the key term there. We really have to nail productivity in general and particularly productivity on the business front. I was listening to a podcast with the head of ChatGPT last night and there were a bunch of things. Yeah, Nick Turley just talking about like it's such a weird product surface area because people come to it for all from all these different reasons. So how you prioritize things within there like images and chatgpt, clearly very important. That was a separate app at one point it got rolled in to good success. Nanobanana was also sort of like a, okay, everyone should download this particular app because you're going to get the best frontier image model for a while. Sora. Yeah, we had talked about this a while back and it seems to be confirmed now that the Sora's functionality will just end up in the main ChatGPT app. Yeah. Yeah. So last year OpenAI announced an array of new products, including the video generator Sora, a web browser called Atlas, a new hardware device, and E commerce features for ChatGPT. Some of those are like wildly different timelines for these things. Yeah. Remember during this time, that's when I started talking about viewing OpenAI's activities like they were a hyperscaler. When Google launches a new product. Yeah. Not. You don't have to assume that, hey, it's going to work every single time. And in fact, it's the exact opposite. A lot of these experiments don't end up going anywhere. It's fine. And OpenAI like, again, you have this like massively scaling, you know, core business. You start to say like, hey, let's experiment in a bunch of these different areas. Some of them are going to work, some aren't. It's okay. But then ultimately that creates a scenario where you're sort of like opening up maybe too many fronts. Right. To the competition. Right. You're competing with meta and social with Sora, you're competing with Google in some ways, you're competing with even like the Microsofts of the world in other ways. And ultimately this just feels like, hey, let's narrow the fronts. And I think a lot of people expected something like this before the last few months. OTB in the chat is surfacing. A very interesting old take from Ben Thompson about OpenAI should not be in the API business. And now based on the way things look originally that was like, oh, wait, well, maybe Microsoft will be able to handle and scale the API demand. But API demand has been so huge and it's allowed Anthropic to develop such a solid business there that it's undeniable that OpenAI should also be in the API business especially. Yeah. The other side of that is like, they clearly need to be in the harness business too, which is why Codex is. Yeah, yeah. And so the hyperscaler, like your take of like, think about OpenAI as the new hyperscaler. I think the takes aged extremely well, especially with recent interviews with Dylan Patel and Dorkesh Jensen just went on sirtechery. There's a whole bunch of new data points that show how compute constrained we are, how tricky it will be, how chips will be. The, the key bottleneck there was that interesting story that Tyler was recounting from Dylan Patel about how the TPU was developed by the TPU team. DeepMind didn't realize how important it was going to be, how compute constrained they were going to be. So the TPU went and sold it to anthropic and then DeepMind went back to them and was like, wait, wait, wait, we want those chips, we need the chips. And so there's this like the hyperscaler phrase is really, really important in that it designates not just a big consumer company or a big business. It's particularly about the ability to marshal compute at hyperscale. Right. And so I was interested to look at like the history of sidequests among mag, seven companies, among trillion dollar tech companies, because it's all over the place. And so it's very hard to paint with a broad brush. I think right now there's a huge narrative around like OpenAI was doing way too many side quests. They need to do zero side quests. And the reality is probably like, you know, we've seen this with Riley Walls joining the Labs team, like there will be small projects, there will be acquisitions, there will be a continuum of bets. There's just a level of refocusing that's going on right now and reorganization. And this has happened at many, many. Yeah. And I think the bet with the OpenAI Labs team is you have a really small group of people that are focused on creating or being quick to new product. Yeah. Like approaches. Yeah. And. But that can be again like a two pizza team. Yep. And that type of experimentation is going to make more sense if the rest of the company needs to refocus on, on enterprise and the core business. Yeah. Tyler, is that. Is that data point you shared earlier, like public about the size of that particular team? I didn't want to mention it if it was. Yeah, I think it's. People know. It's okay. People know. At least at one point it was very small. It was like six people. Also, I was going to say, I think now that you have so many neolabs doing these kind of like weird kind of moonshot research projects. I think it also adds to this thing where maybe you don't actually need people internally doing those same things. You can just acquire them if they work. Yep. Yeah. We got to get into that conspiracy theory later. But there's this idea of all the NeoLabs teaming up to marshal compute together. We Got to dig into that. Anyway, history of side quests in tech. Can we paint with a broader, broad brush here? You know, spoiler alert. I think the answer is no. But there are some fascinating stories. So Google has a balloon Internet play that's a serious company called Project Loon, where they inflate balloons that go into the stratosphere. I believe they go high up and then they deliver Internet, sort of competitive Starlink. Some promising stuff there. They also have the fiber play too. Fiber play. Oh, yeah, they just sold that. Yeah. People are so upset about that because, like, dealing with your ISP is one of the roughest things ever. I've had such a bad time with various ISPs. Oftentimes I would, running a small business, running a startup, I would put it on my personal account and then I would have like six lines for like different people and then one of them wouldn't get paid and I'd get sent to collections for like. That happened to you? The only time I've ever had. Yeah. Like some issue. Yeah. Was I returned the router and then even though I still had an active account, just another line with them, they were like, you didn't return it? We billed you. Yeah. And somehow. Wait, Nick, are we still paying Internet at the Jonathan Club or did we fix that? I sent you this. You did, but we haven't returned the equipment. Returned the equipment. Okay. We're definitely getting. We're definitely getting fleeced for sure. But that is the status quo. And it was awesome when Google was just handling it with Google level service, but hard to sell ads against. Hard to sell ads against. So they divested, I guess. But that's not even close to the weirdest thing. The weirdest Google side project that I found is they make a contact lens that will tell you how drunk you are. I'm not kidding about this. Google, they have a project, it does more than that. It's supposed to do biometrics and it can do a lot of different things. But one of the things that it can measure, it can measure glucose in your tears. It can measure any sort of biomarker that's in your tears, which apparently is a rich source of data. But one of them is blood alcohol level. So you can put in this contact lens from Google and it will tell you how. Drunk driving. Jarvis, am I drunk? Am I good? Am I good? Am I good to drive? You're absolutely not. He's like, sir, you should take a Waymo tonight. Would you like me to connect you? See, this is all part of the plan, they're gonna stop people from drunk driving. Give them Waymo's. It works. So that was a weird one. They also briefly owned Boston Dynamics, but most Importantly they bought DeepMind, which was completely seen as like this wild card side project. How does that fit in? You know, it's a bunch of researchers. And then became like the most critical thing in. Amazon has taken tons of shots at drone related delivery and home security stuff. They also own Twitch, but they never really linked the site to live shopping and closed that loop. Have you thought that that's weird? Jassy doesn't do earnings calls. He doesn't do earnings calls on Twitch. She should. And a lot of the looks maxing live streamers have decamped to a different platform. Let me get some W's, let me get some W's in the chat for this quarter for this CapEx guide. Let me get some W's in the Chat for the CapEx guide. Of course, Apple tried to build a car, then pulled out. Who knows where the Apple Vision Pro goes? Although of course I hope it continues. I'm hoping for another, another Apple Vision Pro. Apple Vision Air. Just make it lighter, same screen. That's the trick. Make it like a thousand bucks. I think it'll sell. And they have a bunch of health moonshots. They've been working on non invasive glucose monitoring, which is. There's some book about it called like the White Whale of biotech or something. It's something that people have been working on for so long and they've never been able to crack it. They've worked on this. The best thing I think they have is that you can get a continuous glucoma. Thank you for the W's in the chat, by the way. There's a lot of W's in the chat. You can get a continuous glucose monitor that is invasive, meaning it is pricking you. It is measuring your blood and then calculating the amount of glucose in that that's helpful for continuous glucose monitoring. There's a number of companies that do that in sort of a D to C realm levels. There's a number of biotech companies that offer that as like a healthcare product. And you can wirelessly connect that now to your Apple Watch. But they can't do it in the Apple Watch. There's always been the question about like, could you just shine a light through your skin and detect the blood, the glucose in the blood? Very, very difficult to do. Potentially always possible. Everyone thought, oh, it doesn't break the laws of physics. Lots of Money spent with little to show for it, at least so far. Meta is probably the most egregious side quest. They don't do side quests, they do full quests. They create side quests in VR. There's actually one of the popular games is all about doing side quests. And yeah, I mean they bought Oculus, they bought a bunch of VR studios, they rolled everything up, they renamed the company, spent tens of billions of dollars on what is starting to feel like less of a side quest, but still is so early. The Meta Ray Bans are a success, but to the tune of millions of units. Not billions of units or anything like that, or hundreds of millions of units. I think the iPhone has an install base over a billion now and the ramp from here to there on Meta Ray Bans is going to be long. Tesla launched a premium tequila in a lightning bolt shaped bottle. So you know, it comes for all different Max 7 companies. That one's more of a stunt. But truly like sidequests come in all shapes and sizes. Some are just good for morale. It's just fun. We do side quests here all day long. TVPN simulator, that's a side quest. What was the other simulator? Jeremy Giffon simulator that was a side quest. They're just fun. Some of them are good for marketing, good for attention, good for fun. Some are complete dumpster fires where you just pour money in and it just sucks. All resources, you get nothing out. And then some reshape businesses entirely. DeepMind's a great example and there's certainly others in, in the Mag seven that have really, really changed the business. And so Gabe said, seems like the entire boring company is a side quest. Yeah, it's technically a separate company, but Elon's. Yeah, king of. King of side quests. Although I think, yeah, I mean it just feels like the company that gets the least amount of attention that's not like on the critical path for many of the other projects. Totally. Yeah. Still, still a very cool idea. I mean every time you're sitting in, in traffic it's so like tangible to know. Oh, like if we just had more yearning minds, basically. Yes, yes, yes. But very, very, very difficult. And I mean it's been what, over a decade and there's really like a very limited rollout of that technology, so. But it's still cooking. I think the business is still, is still going and they're working on it. So some of OpenAI's teams come from very small teams with relatively tiny compute budgets, but they get a lot of Attention sometimes because of the particular product category. So Soar is a great example. We're small team, not huge resource investment, probably a lot of inference and training cost. But relative to Codex 5.4 spar, I don't know. I don't actually know like how we're looking on the order of magnitude there. Yeah, I think, I think a big. Yeah. Big part of super viral. Yeah. And what, what percentage of the team, the overall team's energy is going towards a specific product. Yeah, yeah. And then, but so the idea of experimenting quickly and then consolidating efforts even faster makes a ton of sense. Nanobanana was a big deal for Gemini. Bringing image, video and audio generation together In a single ChatGPT flow is clearly the next step. And so some of this is not. It's probably not going to take the form of like, stop doing the side quest. It's like, let's fold that into the main quest. Because clearly the interaction pattern of ChatGPT is where people want to go. And so once we've done the experiment, it works. Put it all together. Dylan Patel on DoorKash said the TAM for GPT 5.4 was north of $100 billion, which is crazy for a bunch of reasons. I mean, it's a huge market that was created in just a few years. The enterprise opportunity in general is crystal clear for anyone involved. At the same time, you still do need to experiment to make sure you are early to create the next breakout product experience. And so with that backdrop, OpenAI Labs and being more efficient with the shots on goal makes a lot of sense. I still think that the overall narrative around AI, just in AI broadly this year will be about the main quest, which I see as like compute scaling and so raise the money, do the deals, grow the capacity. I was thinking back to Travis on the show saying, if you're doing something and it's easy, it's not valuable. The key is if money matters, which I think we say, we would say it does, especially in certain categories. He was probably thinking of ride sharing, where there was a capital war, and AI compute, where there's also a capital war, you need to be the best in the world at it. Yeah, yeah. And I think overall there's real competition now. It's intense. Right. You have, you have OpenAI anthropic at the frontier, pushing very, very hard. But the other side of this for OpenAI is like all the. Yes, there was a ton of stuff that was announced last year. There was hardware, sora, et cetera. But Sam was running around doing all these different mega deals for the compute side that now serve the main quest. And so the positioning is actually great. Yeah, yeah. Let me tell you about Label Box, RL environments, Voice robotics, evals and expert human data. Label Box is the data factory behind the world's leading AI teams. And let me also tell you about Gemini 3.1 Pro. With a more capable baseline, it's great for super complex tasks like visualizing difficult concepts, synthesizing data into a single view, or bringing creative projects to life. And speaking of Google, Google Capital bloke, the longtime Google bull, says, so Anthropic and OpenAI are going to just give the consumer market to Google. And I don't know how. How. I mean, yes, they're like OpenAI reportedly planning to shift the strategy to refocus around business users and vibe coders. There's a lot of stuff going on there. Listening to some of the data around the retention curve of the various products, I don't think that they're giving up on consumer at all. That seems like sort of an odd read. It will be interesting to see the next iteration of Google's consumer surface area because they have AI search overviews, AI mode, the Gemini app, it's in Gmail, but there's clearly some UI fighting going on. It's so funny when you're in Chrome and you have the ability to open one Ask Gemini panel in Chrome and then you can open a second Ask Gemini panel in Gmail, the app. And so both at the web layer and the browser layer, you have two. You have two chat boxes that look exactly the same and do the same thing. This feels like very much like a V1 of what they will do here. So there's certainly an opportunity for Google to reintroduce the AI features, make them more tightly aligned with what people are actually doing. And you have to imagine that a lot of the progress they're making on agent encoding can then come to the Gemini surface area in consumer overall. Yeah. And we can pull up this chart that Sam showed of Codex usage. This is like the. Again, this is like what I think is informing like the battle with Anthropic as well as like, this chart is going to inform the strategy shift, which is like, hey, we can run, we can. We can take revenue into the hundreds of billions of dollars with the current products that we have. Let's focus on them and make the best possible products. Dean Ball is using Codex. Is that what he's saying? Just hit a personal record for single coding agent session of a little under 10 hours GPT 5.4x high in the Codex app. Unsurprisingly, no flashy app, just really complicated economic research prompt at this point. Most of my prompts do not stress these agents all that much. To be clear, this is 10 hours of continuous work. I have meaningfully exceeded 10 hours if we include periods when the agent was waiting for jobs to complete. So what does this mean? Is he talking about, like, firing off one prompt and coming back 10 hours later or just. Or just going back and forth because he says agent session. I think he's talking about firing off 110 hour. Yeah, I thought he meant he's in Codex, like the, you know, terminal. Yeah. And he's in there for 10 hours locked in. That's amazing. Oh, wow. Yeah. Yeah. It is very interesting to see. I mean, Doug o' Laughlin was talking about how he moved a lot of his research. He wasn't building software. No, he's saying it's not a flashy app that he's building, just a really complicated economic research prompt. To be clear, this is 10 hours of continuous work. I've meaningfully exceeded 10. So I think what he's doing is, he's is. He's asking like, okay, pull together all the census data about jobs. Now go and pull together all the economic indicators. Pull out. Pull together all the inflation. Somebody asked how much time was back, how much was back and forth was going on versus the agent spending time on its own. He said zero, back and forth. So this is 10 hours of the agent, just like cooking. Wow, that's really crazy. What is this prompt? It must have been pretty long, I imagine. That's crazy. It fit within his current rate limits on the $200 OpenAI tier in the Codex app, where rate limits are currently higher than usual. Did it outperform expectations? The prompt was primarily about the political economy of central government transfers to Indian states, Union territories. I think. I think honestly this matched my expectations of what 5.4 can do when it's properly prompted. What did it get stuck on? It encountered a bunch of problems along the way, but doesn't appear to have gotten stuck for too long on any one thing. It was just a steppy process, so it just kept working. That is absolutely crazy. In other news, OpenAI is forming a joint venture with TPG, Advent International, Bain Capital, and Brookfield Asset Management. This is great news to form a joint venture. AI is coming to distribute enterprise products across the firm's portfolio companies and. And beyond the proposed deal as coming to Fogo de Chao Bain Capital owns Fogo de Chao, the Brazilian steakhouse. Maybe now they can take Apple Pay. Oh yeah, we got cooked on that. That would be a good. I don't know, maybe they deliberately don't. I wonder, I wonder if Apple Pay is expensive for them and this is actually a cost consideration. Fiji Semo said this news came out a little bit earlier than we planned. We're excited to be building a deployment arm and we'll share more details soon. Companies have a ton of urgency to deploy AI in their organizations and we're sprinting to meet that demand. More than 1 million businesses run on OpenAI products. Codex is now at 2 million weekly active users, up nearly 4x since the start of the year. API usage jumped 20% during the week after GPT 5.4 Watch launched in Frontier, which launched last month to help enterprises build, deploy and manage AI. Coworkers that can do real work has way more demand than we can handle. That's why we launched Frontier Alliances. So we leverage our ecosystem of partners and scale and to scale. And that is also why we're launching a dedicated deployment arm tasked with embedding forward deployed engineers deeply inside enterprises. This project has been in the works with our investors and alliance partners since last December and we are grateful for them and their partnership. We're still early, but the speed of adoption is a clear signal of where this is headed. We're excited to not just be building these technologies, but also building many ways for companies to deploy them and get impact. Interesting because there was a big, there was a big talk for a long time about like the, the next gen private equity firm will, will buy businesses and like deploy AI inside them. And this feels like, well maybe that works at the mid market private equity level, but you don't necessarily need a new AI native private equity firm because Bain Capital is what I've always said like traditional private equity is not, it's not going to just be like oh well we'll figure out AI in like 2030. It's not really on a roadmap right now. They're working as hard as they can to implement it. The question is like will, will traditional private equity be able to basically like roll out and unlock the value of AI better than some of these? Like AI native, more like venture oriented roll ups. Okay, so 5.4 mini announced today. So different sizes of models don't count as side quests. These are main quest, right? These are main quest aligned. But what is the pitch for a Mini or a Nano model? Yeah, I mean so this is just like I think someone ran some Ebals and the mini models are like equivalent to GPT5 when that first came out. But it's just way cheaper. Right. So if you're like cost sensitive, if you're running a ton, a ton of queries but they don't need to be like the max intelligence, then you just use this. So cheaper but also faster. Yes, probably. Yes. And potentially runs on older hardware. I think that's unclear. This is bullish for our vintage Neo cloud. Yeah. The oldest GPUs. Yeah. This was crazy idea yesterday. Yeah. We're going to run this on 1080tis from my gaming. People love classic cars. Why not classic GPUs? Yeah, I mean it's like doesn't like how small the model is. Doesn't actually matter on imagine imagine running your vintage Neo cloud with wood fired hearth powering it all. Yeah, but I mean you have to imagine that what's after Blackwell? What's the one that announced today? Vera. Rubin. Rubin. Rubin. Like you have to imagine that. That there will be models that only run on Ruben and need to be sort of re architected to run on Hopper. I would imagine. Sure. I mean I think there's like small performance boosts that you can get. Or it might just be slower but you can always. You can run any model on like any hardware. It's just like it could be like way, way slower because you have way way slower. The memory is on that fleet of A1 hundreds where you could just be on like a smaller rack of Rubens. Interesting. Well, that's exciting. Calsheet came out with the $1 billion. Before we talk about this, let me tell you about Sentry. Sentry shows developers what's broken and helps them fix it fast. That's why 150,000 organizations use it to keep their apps working. And let me also tell you about public.com investing for those who take it seriously. Stocks, options, bonds, crypto, treasuries and more with great customer service. So what did Kalshi launch? Kalshi launched the $1 billion Perfect Bracket Challenge. $1 billion for a perfect March Madness bracket. So you can win $1 billion for entering this competition. I haven't read the fine print, but it seems it is positioned that way. Vinnie says it would be hilarious if Citadel built out a team to attempt to financially impair their competitors. So Sig Parametrics from Susquehanna. Yeah, yeah. Is is basically like the financial backer for this promotion. So if Citadel can figure this out, they could leave their competitor with a $1 billion bill. Yes, obviously trying to nail the perfect bracket is functionally impossible, but never put it past. So there are nine quintillion possible brackets. So the odds of a perfect bracket are 1 in 9 quintillion. And I believe that they are capping. I like my app, I like my odds, I like my odds. And I believe that they are capping out entries at 10 million entries. So if you math that out and then you take some insurance out, like, you should be able to, you know, hedge, hedge, hedge out any of the risk. If you are good and you don't suffer from any skill issues, you can basically, with strong basketball knowledge, if you have ball knowledge, apparently you can get the odds down to like 1 in 10 billion. And at that, you know, not from 9 quintillion to 10 billion. If you have non quintillion, you can sort them by how likely they are. Take the top 10 million. That's, you know, maybe there's some kind of power law thing here where we actually. Yes, your odds are getting close. Yeah, we get close. But I think, I think if there's 10 million. If there's 10 million, assume that there's 10 billion reasonable brackets. And out of the 9 quintillion, so you're discarding like all.

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