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Bitcoin Survives Biggest Crypto Hack In History?! — Transcript

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0:00You don't think Black Rockck is spending
0:01a lot of time on quantum and a lot of
0:03time on these particular things? Of
0:04course they are. I heard that this week
0:06at a lunch where someone had talked to
0:08Black Rockck and what are they going to
0:09do in the event that you've got these
0:11quantum companies doing conferences and
0:14they're saying, "Yeah, we're going to be
0:15able to uh break into uh uh Bitcoin by
0:182028." They're publicly out there saying
0:20that now. What's going on, guys? We had
0:22a great conversation with Jordi Viser
0:24this week. In this conversation, we talk
0:25about the Binance hack and its impact on
0:27Bitcoin. We talk about AI and cyber
0:28security. We go through the anthropic
0:30S1. We talk about Eli Liy hitting a
0:32brand new all-time high. What's going on
0:34with Meta, Microsoft, SpaceX, and many
0:36other companies. And then Jordy walks us
0:38through what is he looking forward to
0:39into the end of the year. How is he
0:41thinking about the macro factors like
0:42interest rates, oil, and other, and how
0:44it's impacting his portfolio. And then
0:46we even talk about at the end some of
0:47the use cases of AI that we discovered
0:49this week, and how we're putting this
0:51technology to work and how it may change
0:52your life or your portfolio. Here's my
0:54latest conversation with Jordy Visser.
0:57All right, Jordy. Happy Halloween. Uh, I
0:59thought you were going to come in here
1:00in a costume dressed as Eli Liy himself,
1:02you know, but you just came in as a
1:05smart intelligent uh economist slash uh
1:08manager of capital. I appreciate you
1:11being here.
1:11>> Here to spread joy.
1:12>> Amazing. Uh, Binance got hacked for $6
1:15billion. Let's get right into the really
1:16serious stuff. Um, the rumors are that
1:19North Korea could be involved. I'm sure
1:21that AI cyber security concerns are
1:23going to be jacked up. uh Bitcoin sold
1:25off about 5% or so and Binance is saying
1:29that they are going to backs stop all
1:31losses by users on the platform. What's
1:33your general take away from a situation
1:35like this?
1:37>> This is unfortunately this is a story
1:40I've heard multiple times not of this
1:41size but the amount of hackings that are
1:43going on from AI and this is the the
1:46reality of the world we're going to live
1:47in with artificial intelligence for a
1:50long long time. Um, I have friends that
1:53have told me about their businesses
1:55being hacked where they've had to reboot
1:57the business. Um, where it's not it's
2:00not just coins. And again, I'm speaking
2:03specifically in in crypto, but I
2:05remember when I did Freedom Tech um,
2:08last month and when I was originally
2:10talking to some of the people there,
2:12this has been going on I I would say
2:15really since the June period where we've
2:18been having problems. You've seen it
2:20with companies, too. I mean, I think uh
2:24Revolute had something go on uh an
2:26apparel company uh yesterday. You've had
2:30uh healthcare companies that have gone
2:32through this. So I rather than focus
2:34this on kind of it's cryptoreated when
2:37you go through the story of what
2:39happened and you read it again
2:42humans are exposed to artificial
2:46intelligence and to agents cracking into
2:48things. So if this was as I've seen
2:52reported um going through an engineer's
2:54laptop and then kind of going from
2:56there, we're just at this point where
2:58the attacks are on. And the one thing
3:00about crypto that makes it easier than a
3:03bank from the application side is that
3:06obviously you get in and then the
3:09money's just it's moving. I think the
3:12more interesting story with this will be
3:14how much got frozen, how much they find,
3:16how much law enforcement gets involved,
3:18what the story is there. But at the end
3:20of the day, I don't see this as anything
3:22more than another um fear factor that
3:25starts with AI agents. But most of the
3:27things that I've heard from people in
3:29the last month are fears on quantum. And
3:31so I think when people kind of get into
3:33Binance and well what's going to happen
3:35with quantum, it obviously is going to
3:36force people to take some risk off in
3:38the space for a period of time until we
3:40get the next catalyst on the upside.
3:42>> Now um it is definitely spooky season. I
3:45have my uh Halloween uh sweater here.
3:47Dad tax. Anyone knows uh kids they're
3:51going to learn something uh this
3:52weekend. Um but uh the reason why I call
3:54it spooky season is because people are
3:56definitely worried about this stuff,
3:57right? And the the cyber security. Now I
3:59want to talk about this from two
4:01different angles. The first is um if
4:03this had happened 10 years ago in the
4:06crypto industry, Bitcoin would have sold
4:08off 20 to 40% in my opinion. It sold off
4:105%. That actually seems in a weird way
4:13bullish that you could have a $6 billion
4:15hack. I saw somebody describe it online
4:16as the greatest robbery in human
4:18history. When has $6 billion ever been
4:21stolen before? And so that is the
4:23magnitude of this is almost gets like
4:25washed away like we forget how much
4:26money $6 billion is. Bitcoin only sold
4:29off 5%. That seems bullish. The second
4:32piece of it though is Binance steps in
4:34and says we are going to backs stop any
4:36losses to users. So you immediately
4:37reinstill confidence in the platform.
4:40And in a weird way it's a great
4:41marketing campaign because people start
4:42saying hey this is why I want to use
4:44Binance is because if there's ever an
4:45issue they're going to backs stop this.
4:47But they're not gonna have to cover $6
4:49billion because the stable coin
4:51providers almost immediately froze a ton
4:53of funds. There's multiple billions of
4:55dollars that got frozen by Tether,
4:56Circle, World Liberty, Financial, etc.
4:59>> And so, in a weird way, the like
5:02hardcore crypto ethos of these bearer
5:05assets that you control that no one
5:07could, you know, kind of take from you
5:09or or or do anything, it's changing.
5:12When a hack used to happen, it was kind
5:14of like, hey, either you got hacked or
5:16you didn't. Mhm.
5:17>> In a pursuit of this like safety net and
5:19instilling confidence, we're giving up a
5:22little bit of the like crypto hardcore
5:25ethos,
5:26which means like the ETFs, do they
5:28become more popular? Like what are the
5:30ramifications of maybe the crypto, you
5:33know, hardcore becoming a little less or
5:36a little more soft and now these back
5:38stops being in place?
5:39>> So, I'm going to go I'm going to take
5:41what you said, but I'm going to take it
5:43a little bit of a different direction.
5:44Um, so when you make a joke or this is
5:46bullish, the reaction is is there. So
5:49let's put two things into context.
5:51Number one, we had Google down 13%.
5:54Okay, Google much bigger than Bitcoin.
5:58Not not not as much bigger, but it is
6:01bigger. Um, I only bring that up because
6:03when you can have Intel down 25%, when
6:06you can have Google down 13 14%.
6:10and especially Google, multi-trillion
6:11dollar company. I I think the move in
6:13Bitcoin when you normalize it for what's
6:15happening in the biggest assets in the
6:18world. Let's go to the flip side. I
6:19mean, Eli Liy's up 10% in two days.
6:22That's a trillion dollar company. So, I
6:24I think people are just going to have to
6:26get used to the fact that the reason
6:27that Bitcoin isn't moving as much as it
6:30did before is because the volatility is
6:31just much lower in it's been lower than
6:33than than AI names all year. But let's
6:36go back to the general thing. I can
6:39remember in 1999 coming back from uh
6:43Brazil.
6:45This may sound funny to people, but the
6:47NASDAQ had all kinds of issues that were
6:50going on. And the NASDAQ was very
6:52similar to the crypto market. Um the
6:54electronic trading side. I mean, there
6:56was the NASDAQ and the New York Stock
6:59Exchange. Now, they're both electronic,
7:01but back then it was a very different
7:02world. And there were all kinds of
7:04issues that would happen on the NASDAQ
7:05because it was this new system. It was
7:07electronic. If a lot of orders came in
7:08in a day, it would break the system.
7:10There were a whole bunch of things that
7:11came out and I kind of equate this the
7:13same way for one element.
7:17We need things to happen for the system
7:20to be more trusted. My main thing now is
7:23the banks are involved with crypto. Like
7:26they're not turning around. They're
7:28involved in tokenization. They're
7:29involved in supporting Bitcoin. It was a
7:31very different world during the hackings
7:33when Jaime Diamond was saying this was
7:35garbage and you'd never be involved.
7:37They all have skin in the game now.
7:39They're promoting it to their customers.
7:41That means that they care about the
7:43security and they care to know what
7:44happened. That's the way that in the
7:46long term issues like this become
7:48bullish because we h there has to be a
7:50plan in place to deal with these types
7:52of things and make it clear. So when you
7:54mention the ETFs, you don't think Black
7:57Rockck is spending a lot of time on
7:59quantum and a lot of time on these
8:00particular things? Of course they are. I
8:02heard that this week at a lunch where
8:04someone had talked to Black Rockck and
8:05what are they going to do in the event
8:07that you've got these quantum companies
8:09doing conferences and they're saying,
8:11"Yeah, we're going to be able to uh
8:12break into uh uh Bitcoin by 2028."
8:16They're publicly out there saying that.
8:17Now, I know they want to raise capital
8:20because they need a lot of capital to
8:21get to the hardware necessary to do
8:23that. But regardless, I think this
8:25speeds up people thinking about it. And
8:27if there's been one negative with inside
8:30I think crypto and let's say Bitcoin the
8:33last four years probably was um more
8:37about recovery from what happened in
8:392021 2022 and not a lot of focus on how
8:42do we deal with the security issues
8:44going forward from quantum and AI. I
8:46think issues like this actually speed up
8:48the need for it. And I think the fact
8:49that the banks are involved and you've
8:50got people with skin in the game that
8:52actually have they have fiduciary
8:54responsibilities. There's a big
8:56difference between JP Morgan and
8:57Binance, but when they're both involved
8:58in the same area and they're kind of
9:00promoting it from an investment
9:01standpoint, I think everyone has to come
9:03together. So, I'm going to take the side
9:04that this is just a normal maturation
9:06process of a new technology that's going
9:08through the headaches and that these
9:10things can't happen. So, we're going to
9:11have to find other other ways to deal
9:12with this. If the volatility on the
9:14downside related to a hack like this is
9:17so muted, are you worried about the
9:19upside volatility in a bull market being
9:21more muted as well?
9:25>> No, because again my my primary thing
9:27from the bull side of this, nobody owns
9:30it. And I mean I mean I can say this a
9:33million times over but aside from you
9:36know the the subscribers you have some
9:38of the subscribers I have institutional
9:41people and wealthy people are just not
9:43involved in the space and again I've
9:46talked about this that the only time
9:47that I think the true massive bull
9:49market occurs number one the technology
9:52happens and fundamentals start driving
9:54it that's what will be next year's
9:55business tokenization just continues to
9:57move forward you had a DTCC announcement
10:00this week
10:01tokenization is going to happen that
10:03will lead to more fundamentals in the
10:05space. Second thing is what Stripe is
10:08seeing with the agent commerce side is
10:10only going to grow from here. It's not
10:13even going to question. The question is
10:14how fast will it grow and when will we
10:16start seeing the numbers? And I've
10:17learned this with AI. Don't
10:19underestimate how fast this can happen
10:22if it's in a world where businesses can
10:24run it and then competition just keeps
10:26coming from it because the deflationary
10:27pressures from these businesses that
10:29adopt it are going to be there. So I
10:31think on that front this has been for me
10:33about innovation and technology and the
10:34combination of AI and fundamentals and
10:36that's what I think the beginning stuff
10:37of crypto is. If we learned anything
10:39with AI over the last whatever years you
10:41can't wait for the data to be good.
10:44We're kind of going through that with
10:45the AI trade. when the data really
10:46started being good, meaning when we
10:48started seeing the earnings, these names
10:50were already up 500%, thousand% and now
10:53they've gone sideways for a period of
10:55four months with all kinds of ups and
10:57down. I think crypto is going to go
10:58through the same thing. I will say one
11:00more thing on this for people as we go
11:02through it. We had a very large rally
11:03from 59,000 in Bitcoin up to around the,
11:06you know, 87 88 area.
11:10I think going back and testing the 200
11:11day moving average, which is what we're
11:13going to end up doing, I'm sure, and
11:14maybe even pierce below it a little bit.
11:17>> 73 to 74. Um, we we almost got there
11:20overnight. Uh, I don't think people
11:23should just sit there and think that,
11:24okay, everything is fine. We went
11:26through the hacking, we're going to turn
11:27back up. This has been very correlated
11:30over the past month and a half to the AI
11:32trade. And whether people accept that or
11:35not, a chart of semiconductors now in
11:37Bitcoin has been one for one for the
11:39most part. The other point of this,
11:41which I brought up in a video this week,
11:43is a index of oil and tenure rates has
11:47also been correlated to it. So I think
11:50we've been going through, as I keep
11:52saying in my weekly weekend weekend
11:53videos, this has been a horrible trading
11:55environment from anyone who's trying to
11:56sustain moves for longer than say a
11:59month and a half. You had to make your
12:01money in a very small window this year.
12:03in the first half of the year and then
12:04since then it's been a lot of back and
12:06forth and just a lot of mud and that's
12:08in all the major assets. Uh I I think
12:11we're still in it until we get a
12:13catalyst. There may be a catalyst next
12:15week with the quarterly refunding
12:16announcement but other than that I think
12:18we're just kind of grinding through.
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13:31Use code POMP10. Let's get to the mud in
13:34one second. But uh one one other aspect
13:36that uh I think is interesting. Four
13:38years ago, almost to the week was the
13:41FTX collapse. 2022 was in November. Um
13:44>> there's midterms.
13:46>> There's a lot of similarities. That was
13:49the final puke down to, you know,
13:51156,000
13:52marked the bottom of the bare market and
13:54then we went up from there. It does feel
13:57like although most people think that we
13:59bottomed and I probably think we did as
14:01well. It's kind of like in a firefight,
14:04you know, that the other guy's got x
14:05number of bullets. He's got 10 bullets.
14:07He shot eight of them. He had two left.
14:10>> Mhm.
14:10>> The hack was number nine. He's still got
14:12one left, which is probably the
14:13midterms. And then once he fires that
14:16last bullet, you're kind of like, "All
14:17right, man. You don't got anything left.
14:19I can come, you know, here we go." If
14:22that is true, then actually we are I
14:24don't know a week away from all of this
14:28noise, uncertainty, mud, etc. kind of
14:32just okay, we've set in the foundation
14:34to leg up higher. Would you buy into
14:36that thesis or are you still a little
14:38more cautious? I I'm so
14:44I had not except for a small micron
14:46purchase during July or August whenever
14:50but during the the the situational
14:52awareness situation um in the last week
14:57week and a half I've made purchases in
15:00AI names three or four times three or
15:03four days uh only into panic which again
15:07luckily we keep getting them but the
15:09reason is because a lot of things
15:10happened um this week. Last week felt
15:12like panic to me on Thursday, which is
15:14why I I went in. But this week, first of
15:17all, Anthropic released the S1.
15:21Uh it was definitely better than what
15:23people feared. And you could kind of
15:25read through it and get to more than 100
15:28billion if you want to in terms of AR,
15:30assuming you make the leap that based on
15:33what they put in there, they're going to
15:34be telling you that the October numbers
15:36since Opus 5.5 went up. But regardless,
15:39that is out of the way. So, people have
15:41been worried about what Anthropic would
15:43be. Now, we have to get through the IPO,
15:45but again, that's coming soon. Oracle
15:48had an investor day. This might be the
15:51most important news point that
15:54no one seemed to mention or care about.
15:58If you ask me when the mud started, and
16:00again, for anyone who's trading, we've
16:02been in mud since September of last
16:04year. Meaning, every time you go up, you
16:05come back down. Every time you go up,
16:06you go back down. It's been in a
16:08grinding bull market, but a very, very
16:11difficult, painful one. You just look at
16:13the Nvidia chart. September of last year
16:16is when the capital raise effectively
16:19started.
16:20And the reason I say that is because
16:22Oracle made their highs on this massive
16:25day where they had massive RPOs, which
16:27is basically what the hyperscalers have
16:29as well. Meaning, we have these orders
16:31that we're going to get in the future.
16:34The reason Oracle is so important and is
16:36not mentioned is this week in their
16:37investor day they laid out, hey, we're
16:40not going to have to raise much money
16:41between now and 2030. Now, that may not
16:44mean much to people, but Oracle's raised
16:46over $60 billion since that September
16:49last year.
16:51People have questioned them. Their debt
16:53was the first one to be an issue. Their
16:55CDS started widening out and this is
16:57when the mud started. So, for everyone
16:59who's trying to find like when is this
17:01going to end? I actually think the
17:02capital raise has been a huge part, but
17:04not the capital raise in general because
17:07the AI capital raise is going to happen,
17:09but it's been very concentrated with
17:12basically five names and they've come to
17:14the market for a lot of debt. Most of
17:16that debt was Q4 of last year, Q1 of
17:19this year, Q2, Q3, Q1, Q2, Q3 were
17:24actually declining in terms of going to
17:25the public markets. Um, you still have
17:28some going on. Microsoft did some this
17:30week. Uh SpaceX did, but SpaceX did it
17:33with through the private markets through
17:34Apollo and an SPV. Very different. And
17:37there's a lot of powder there. So, we've
17:39had this concentrated capital raise
17:41where I've calculated the numbers.
17:42You've done over a trillion dollars this
17:44year between equity and debt. That has
17:48been one of the mud issues. And I think
17:51that has been the major issue with the
17:52rates moving higher. So, now you have
17:5410ear rates which have moved down this
17:56week as well. Remember how much everyone
17:58was worried about tenure rates? Remember
17:59how much everyone was worried about
18:01breath? Equal weight S&P has ripped
18:03higher. In fact, this month, people
18:05won't realize this, but as we sit here,
18:07the S&P is about flat for the month
18:09again.
18:11But I think nine of the 11 sectors are
18:13up. And as I looked yesterday, this is
18:15before this morning, but I still think
18:17it's going to be good. 350 of the S&P
18:20500 names, 350 of 500, that's 70%, were
18:24up at least 2% for the month. Only 70
18:28were down 2%. That's a 5:1 ratio. And
18:31that means that in a in a period where
18:33we were worried about breath, where we
18:34worried about rates, rates started to
18:35come down. And what happened? The names
18:37that were getting hit because rates were
18:38going higher came back down. I bring all
18:40this up because you know what's rolling
18:42off next year, and I'll show all this
18:43this weekend. um you're going to get the
18:46tariff stuff which is going to roll off.
18:47So all of the rate hikes that were part
18:49of the PCE and part of in general
18:52Goldman has put this out saying they
18:53expect about a 100 basis point drop in
18:55PCE core next year purely because of the
18:57base effects. DRAM prices have already
19:00rolled over not in a nominal basis but
19:03on a year-over-year basis the second
19:04derivative which is what inflation is
19:06has rolled over. You're going to have
19:08gas at the pump. It's going to be the
19:09exact same thing. Meaning we had a huge
19:11spike in oil. But we're at the same
19:12price in oil right now that we were I
19:14think in March. So every day that passes
19:16into March, unless we get a spike higher
19:18in crude, if crude were to go down at
19:20any point, you're going to have that
19:21flow through. The only reason I bring
19:22that up is this year has been about real
19:25rates going higher because inflation
19:27break evens and swaps have I mean
19:29they're effectively at 2.5%. We have
19:3210ear rates up close to five, which
19:33means there's 250 basis points of real
19:3510ear yields. That has been a major drag
19:38on crypto. It's been a major drag on
19:40gold. It's been a major drag on silver.
19:42It's been a major drag, I think, on the
19:44entire AI trade. And the irony is it
19:46gets back to Oracle because the amount
19:47of debt that these guys have needed
19:50competes with the Treasury. So, I'll
19:52finish this little monologue off with
19:53the quarterly refunding announcement.
19:56This is not getting a ton of press and
19:58we'll find out about it on on November
20:004th, so next week.
20:03There has been speculation by credible
20:06people and City Bank also talked about
20:08this as well that they could cancel
20:11supply.
20:12They've already done buybacks. That
20:14didn't work. If they cancel supply at
20:17the long end and move everything to the
20:20front end,
20:22it's not yield curve control, but it is
20:25certainly an admission that they don't
20:28want the long end to go higher. And
20:29regardless of whether it's because of
20:31affordability issues for housing because
20:33you've seen 30-year mortgage rates go up
20:35100 basis points since March or it's
20:38competing with AI and we just saw Kevin
20:41Walsh talk about the fact that seems
20:43like the AI trade was moving spreads
20:45widen or we've seen spreads widen. So I
20:47think there may be this effort to really
20:50try to bring long-term yields down and
20:52continue to do it. And if we were to see
20:55a reaction for a day, we're already
20:57below the 50-day moving average for the
20:58first time in a while in tenure yields.
21:00That could be the catalyst right there.
21:02And you'd have all those events going
21:03on. So, I'm getting more positive
21:04because I'm looking through this and
21:06thinking the holiday season's about to
21:07take over. I'm not worried about a
21:09bubble. So, I'm believing that over the
21:12next 6 months, even if it's mud, you're
21:14getting good entry points right here. It
21:15always strikes me as uh when people have
21:18quoteunquote bubble concerns, when
21:20things start to trade down, they think
21:22that means that it's going the bubble's
21:24bursting. It's going to zero. You know,
21:26it's going to be a 50% draw down.
21:29>> But actually, what you want to see is
21:31you want to see fundamentals like
21:33revenue, profits, EPS, etc. all
21:36increasing and positive, beating
21:38expectations, which we're seeing. At the
21:40same time that you want to see
21:41valuations cooling off, which is kind of
21:45this like cool off during a bull market,
21:48that's actually when you should be most
21:49excited, right? Because the fundamentals
21:51should provide some sort of floor where
21:53that cooled off valuation to your point
21:55is like an entry price that is more
21:57attractive than if you didn't have the
21:59cooling off period. But the business
22:00themselves, I mean, SpaceX's revenue,
22:03they reported 160% year-over-year growth
22:05in their revenue. That is just
22:08mindboggling.
22:09>> Mhm.
22:10We are talking about Microsoft. They
22:13have 60,000 people that they have
22:16basically said, "Do you want to take a
22:18buyout of your contract?"
22:21My guess is that 60,000 number is not a
22:24number they just like licked their
22:25finger and stuck in the air and came up
22:26with 60,000. it probably correlates to
22:30some sort of investment they're making
22:32>> around AI infrastructure something and
22:35they're offsetting if we make these
22:36investments but we have these 60,000
22:38people AI can make up the gap from a
22:41productivity standpoint and we're going
22:42to be closer to kind of a a neutral
22:45impact to our financials and then you
22:48look at Anthropics S1
22:50exploding growth
22:53I mean we could go through I I I have a
22:55ton of these that we to go through and
22:58you sit there and you say what are
23:00people worried about
23:02what what the fundamentals are telling
23:04you this is one of the greatest you know
23:06kind of economic booms for a capitalist
23:09society probably in human history.
23:10>> Mhm.
23:11>> And people are literally talking about
23:13bubbles.
23:15>> So um first of all X has a huge part of
23:18this. Um, as someone who looks for news
23:22stories to cover,
23:24uh, there there is no middle rational
23:28line. Like I in my head, I
23:32I have no problem being bearish on
23:34things. If I see something, I mean, I
23:36talked about the AM midcycle slowdown.
23:37If we go back and pull all of the things
23:39that I was talking about in in March and
23:42April, but also in I want to say a year
23:46ago today, I was talking about how tech
23:49is going to have issues outside of the
23:51AI trade. And we've gone through that.
23:53Salesforce.com is still down for the
23:55year. Now was down big. The soft the
23:57true SAS names have had a bad year. The
24:00hyperscalers, I mean, as of yesterday,
24:03this is before what'll happen today with
24:04Amazon. the four equal weight or the
24:08four hyperscalers, it was flat for the
24:10year as a group. One of them was up 9%
24:13Microsoft. Uh I do want to expand on the
24:16Microsoft thing because I think it's
24:17important for people to hear this
24:18because this is a a very important story
24:20which I won't get into it. I've talked
24:23about this a couple times in in
24:25interviews recently.
24:28The Microsoft News does not get enough
24:31press. 60,000 people is 27% of their
24:34employees. 27. Now,
24:37>> is that a lot?
24:39>> Well, to put to put it in perspective, I
24:42mean, when you have 223,000 people and
24:44you're saying, "Okay, 60,000, you can
24:45take a buyout." Now, they obviously
24:47don't expect all of them do it. They did
24:49this once before, but they did it with
24:518,000.
24:52Um 60,000 is a big number. And what do
24:56you think those 60,000 people
25:00that have been offered the buyout, are
25:02they like feel secure in their job going
25:04forward? Mhm.
25:05>> Or was this a message that this is our
25:08hope now? You said, are they using this
25:10for money? I mean, I've run a business.
25:13I I know what micro like you can go
25:15through their compensation. So, let's
25:16assume it's $400,000 a person when you
25:18add in healthcare at Microsoft. That's
25:22$24 billion.
25:23Not 24 billion for one year. That's
25:26every year going forward. Unless they go
25:29hire more people. That number if they
25:32all took it would take them back to 2020
25:34levels. Their revenue has grown will
25:37have grown 70% if they just meet numbers
25:40into next year. So revenue per employees
25:43gone through the roof. So this has a lot
25:46of issues to the government and this is
25:48why it's positive Bitcoin. And so I
25:49wrote a Substack about this whole thing
25:51comparing what Microsoft was doing to
25:53what was happening in France where the
25:54common thread is going to be
25:55affordability. Because on the one side,
25:58what do employees making 400,000 have to
26:00pay in taxes? Yeah. 50%, 50 plus
26:04depending on where they live. What does
26:06Microsoft pay on corporate taxes?
26:08There's an arbitrage here that's
26:10becoming a bigger story to the
26:11government because if Microsoft doesn't
26:13have to pay the same amount, you're
26:14you're losing receipts from this if
26:17people don't get jobs or if they end up
26:19taking less of a job, whatever the case
26:21is. I think this is becoming a labor
26:23verse capital story that is much much
26:25bigger than people realize because we're
26:27just entering the productivity boom.
26:29That's the other message that Microsoft
26:31is saying is they believe they can do
26:34this buyout
26:36at five to six or six to seven times the
26:40last one.
26:42What is that saying about their
26:43expectations about what AI is going to
26:44enable their business to be like in the
26:46future?
26:47>> Listen, I can um I can talk about this
26:50from a personal perspective because we
26:51just went through this with our own
26:52public company. We have uh done two
26:56things. a massive cost cutting exercise.
26:59Compute cost down substantially. Compute
27:02cost literally I I've talked about
27:04publicly $550,000 in March of 2026.
27:07>> Mhm.
27:08>> Per month.
27:08>> Yep.
27:10>> Down now 50%. Give or take. My hope is
27:15hope that we're actually going to be
27:17able to get completely off the frontier
27:19models, run everything on our own
27:20software and uh models and hardware. If
27:23we do that 97% cost savings on a token
27:25for token processing,
27:27massive cost savings
27:29>> going to all of our key vendors,
27:31finance, accounting, uh legal, etc. Hey,
27:35we we got to do something here. I know
27:37you guys are using the technology. So
27:39are we. Let's reorient here. Okay,
27:43>> we mutually separated with some of our
27:45executives. Cost savings there as well.
27:48So you take basically the you know the
27:50most well- paid people at the company
27:51and you're like hey can we do this for
27:53cheaper look at that what we publicly
27:55said is we think we're going to save $10
27:56million between cash equity etc in this
28:00whole exercise. Okay but that's actually
28:03to me what people will pay attention to
28:04is because it's like a headline.
28:06>> Mhm.
28:06>> The more important thing is we have a
28:08public company. There's 10 people there.
28:09I'm not claiming we're Facebook. I'm not
28:11claiming we're whatever. But if you go
28:13and you look at the product this week
28:16there's five days in the work week. We
28:18launched five separate products or
28:20features, one every single day. And
28:23these are features that aren't like,
28:25hey, let me just put a prompt in clawed,
28:27you know, or something and you just get
28:28it. You got to be very thoughtful about
28:29it. You're dealing with people with
28:30sensitive financial information, etc.
28:32But I explain to people, think about
28:34what that means. If we're launching
28:36something every single day and we only
28:39have 10 total people, including the
28:40nontechnical people at the company, when
28:43you extrapolate that out to a Meta, an
28:46Amazon, uh you know, right now actually
28:48SpaceX, if you look at the updates to
28:50Grockbot,
28:51>> Mhm.
28:51>> they're releasing something like 50 to
28:53100 new features a week. It's just
28:56you're cutting cost while that
28:58productivity is just exploding.
29:02I don't know what this looks like in
29:03two, three years,
29:05but like you start getting pretty
29:06excited about just how productive any of
29:09these companies can be, right? Yeah. And
29:11and so let's bring it back to Anthropic
29:13because I think the most important news
29:14item that came through this is that
29:16Anthropic announced in their S1 that
29:18they're dealing with basically
29:21250 of the Fortune 500 companies. So 250
29:24of the S&P 500 but in terms of their
29:28total expenses which again are dominated
29:31by compensation
29:34of the anthropic portion is point less
29:37than 1%.
29:40I think people have to fully grasp that
29:43if this company has this kind of
29:45momentum and they can give you insight
29:47into the adoption right now of AI and
29:49also for everyone that thinks that
29:51they're going to be able to go build
29:52data centers and do all this stuff which
29:55I'm hearing more and more on other
29:56podcasts. I'm like where are they
29:57getting the memory from to go build
29:59their own data center? I mean guys come
30:00on like if the banks want to go build
30:02their own data centers that's all well
30:04and good but if you can't get the memory
30:06you can't do you can buy as many GPUs as
30:08you want you can go through this but if
30:10you can't get the memory where is this
30:12going to go so I just think for um as
30:14you go through the anthropic thing and
30:17you look at it where people talk about a
30:20bubble they're talking about a bubble
30:22for the reasons that you said oh look
30:24the AI trade is 20% off its highs some
30:27of the names are 40% off their highs
30:28whatever the case Even though they're up
30:31150% year-to date, that's that doesn't
30:33matter. Spreads are widening. This is
30:35going on. Triple C's are up at 16%.
30:39None of this is going away. This is the
30:41one thing I will say is as much as I
30:43believe yields are probably peaked now
30:45at the long end. Do I think we're going
30:48down to 3% in 10ear yields anytime soon?
30:50No. And the main reason is because the
30:53capital needs are going to be massive.
30:55And that means we're going to have debt
30:57and the government has a lot of debt.
30:58And so the issuance alone will keep it
31:01in. Do I think that Bessant knows this
31:03and wants to control the back end and
31:06this is one of the reasons why if you
31:07were waiting for yield curve control, if
31:09you're waiting for QE, we're not getting
31:11QE the way that we used to in the past.
31:14It's coming in a different form. And
31:16that form to me is starting to happen
31:18because the labor verse capital debate
31:21means a lot of voters because you know
31:23how many votes Microsoft gets. Let's
31:25assume Microsoft has a lobbyist and
31:27they're going to Washington saying blah
31:29blah blah. Those 60,000 people have a
31:31vote and if affordability remains this
31:34issue as it is across the globe, I just
31:37think part of the story for a new
31:40system, part of the story for how we're
31:42going to deal with this and it's why I
31:43always say Bitcoin is the purest AI
31:45trade. I believe that AI is only going
31:47to intensify the downside going forward.
31:50And if people are waiting for some bull
31:51market where it just goes up in a
31:53straight fashion every single month, I
31:56don't think you're going to get that
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34:06So
34:07in the private market, Instinct went
34:11from
34:12you know what, 500 million to two
34:14billion to 10 billion. Now it's rumored
34:16they're raising money at 30 billion.
34:18Cognition and ramp are both 40 plus
34:20billion rumors coming may even be you
34:22know 60 70 billion incoming.
34:25When you see these valuations in the
34:26private market, I always go to there's
34:28no way they're making enough money like
34:30an instinct as maybe the example. Dude,
34:32they're not making money in the sense
34:34of, hey, it's worth 30 billion, but the
34:36growth has to be off the charts. There
34:38was a interview that the instinct
34:40founder did a couple weeks ago, Patrick
34:41Roness talked about that he was growing
34:4310% every day.
34:45>> Yeah. Right. He's like, how do you buy
34:47compute? You know, if you if you double
34:48your compute in a week, you're out.
34:50Right. Type thing, right? So when you
34:52when you think about the these
34:54valuations in a weird way, the public
34:56market valuations are actually
34:58incredibly rational compared to the
35:00private market valuations, then you take
35:03a step back and you say to yourself,
35:04okay, I know all of the uh macro factors
35:09that play into this, the oil, the
35:10interest rates, all the stuff that's
35:12happening.
35:14I go back to there are more people who
35:16spend money on sports gambling in
35:18America than spend money on AI right
35:21now.
35:23>> You talk about Bitcoin isn't that well
35:25adopted among wealthy people and
35:27institutions etc.
35:29We are in an echo chamber of X of
35:32everyone's using AI. I see people
35:34creating cities for their Grock bots to
35:36run around and do all this, you know,
35:37cool stuff.
35:40>> I don't know, man. If you watch the
35:41local news, they're yelling about data
35:43centers, but they're not using this
35:45stuff.
35:46>> I heard last night I was at a dinner and
35:48somebody said that that a young uh
35:50person joined uh their marketing
35:52department and they were complaining
35:54that everyone was using AI.
35:56They felt like it was, you know, like
35:58like in school they were being told
35:59don't use this stuff.
36:02How do you square that with like if
36:04we're only one 2% adopted
36:06there's 98% of people left to go?
36:10I I'm not sure that um until the until
36:14Muse is around for a long time.
36:17>> There's two issues with AI that I think
36:19are are very different than say Google
36:21search. Um one is the trust factor. Uh I
36:25finally got the chance to meet uh
36:27William Mugayar yesterday and you know
36:31his whole book is on this concept of
36:33trust as an asset. He wants to come see
36:36you again. Hasn't seen you in a long
36:37time. He can come sit in that seat
36:39whenever he wants.
36:40>> Okay, you hear that, William? Um,
36:43>> look at this guy Jordy asking me live on
36:45the podcast.
36:46>> I'm I'm I'm a live agent now.
36:50I'm a big fan of William, but I'm a big
36:51fan of his concept of this issue with
36:54trust. And I think obviously people in
36:57crypto understand this part of trust.
36:58Now we have a hacking in Binance, so
37:00trust goes back down. But individuals
37:02don't trust AI either. And they're not
37:04going to put their information in muse,
37:06especially when you have hacking. So
37:08hackings equal I don't want to trust
37:10anything. Hackings are going up
37:12constantly. So I think that means
37:15adoption is going to be very slow for
37:16individuals. I don't think they're ever
37:18going to pay for it ever.
37:20>> Um I think they're used to having free
37:22things and I think you can use the best
37:24AI models. I mean I know people now in
37:27my life that have used Grockbot to do
37:29some things I told them they could do. I
37:31didn't know you could use Grockbot
37:32without paying a lot of money for a
37:33month cuz I already do. I don't keep up
37:36on what's free, like what becomes free.
37:38But the models keep getting better and
37:40the free tier keeps getting better and
37:42better and better to where you can do
37:43all these things. Where it hurts is for
37:47younger people that are not embracing
37:48it, that are not using it, they are
37:50going to have trouble
37:52>> getting jobs. It's just a reality there.
37:54There's no way that you can compete in
37:56today's workforce without being
37:58efficient. And if you think the company
38:01that's hiring you, you're like, "Oh,
38:02great. found a company that isn't using
38:04AI that isn't forcing me to that
38:06company's not going to be in business
38:07very long and that process is going to
38:09start. In fact, I'll go back to the
38:10triple C triple C. So, companies that
38:14are junky junk junk,
38:17their cost of borrowing is now 16%. Now,
38:20some of that is the rise in 10ear rates,
38:22but a lot of that is the spread
38:24widening. 16%. That's how if you're
38:27going to borrow money at 16%, you need
38:29to see earnings growing at some fast
38:32pace to justify that. And I know one
38:34thing that is a really hard bogey to
38:36beat when the S&P is only up 10% or 11%
38:40year to date. So, I don't I don't know
38:42what people are doing.
38:43>> All right. I joked in the beginning that
38:45your Halloween costume should be Mr. Eli
38:47Liy himself. Uh I don't think there's
38:49actually Eli Liy, but um all-time highs
38:53up 10% in two days. uh you sat in this
38:56seat a couple months ago and said that
38:58one of your big bets for the AI trade
39:00was Eli Liy. You've talked about Toune
39:02Lab. You've talked about them acquiring
39:05a lot of different companies. You've
39:06talked about them building out their own
39:08GPU, you know, kind of cluster or data
39:10center, etc.
39:12How are you thinking about Eli Liy
39:14today? And has anything changed in your
39:16thesis? Have you become more bullish?
39:19>> First of all, the numbers are stagnant.
39:21Um, I I challenge anyone to just go into
39:24an LLM and say, "Hey, can you give me
39:25the earnings details from this quarter
39:28for Eli Liy?
39:30I mean, you're talking about revenue
39:32growth." Revenue. So, to give people an
39:35idea, like good revenue, the S&P 500
39:38right now revenue growth is about 12%
39:40and that's probably where we're going to
39:41finish, which is less than it was in Q2.
39:44Eli Lilly's revenue growth
39:45year-over-year is 40%.
39:47Um, 20 $24.4 billion. Let me just read
39:51some of these. These are so crazy. So,
39:53Eli Liy reported revenue of $24.4
39:55billion, up 39%. The expectation was
39:5822.6 billion. So, they outperformed
40:01expectations by $2 billion or almost
40:0310%. Their volume grew 53%. Uh prices
40:07are down 15%, gross margin was 83%.
40:10Non-GAAP EPS was $748 against a $626
40:15uh so they beat non-GAAP EPS by over a
40:18dollar. pretty incredible.
40:21>> And uh Mojaro brought in $10 billion
40:24which is up 65% and Zipbound brought in
40:27$5 billion which was up 50%. And then
40:30they basically look at their 2026
40:32revenue guidance rose. They think that
40:34it's going to be 91 to92 billion where
40:37previously they were reporting 85 to 87.
40:39So somewhere in the ballpark of six or
40:42seven billion additional revenue
40:44guidance and uh about Yeah. And so
40:48they're growing at, you know, $90
40:50billion run rate. They're still growing
40:51revenue at 40% year-over-year.
40:53>> So let me give everyone um
40:56>> felt like a statician there.
40:58>> Yeah. And again, I've said that I
41:00believe in the next 5 years they will
41:01become the biggest company.
41:03>> Oh, I know. Okay. I know you've said
41:05that.
41:05>> So right now they're number nine. So
41:07everyone knows like this is not like
41:09some outrageous thing. And they're
41:11catching up to number eight and number
41:14seven very quickly here. Maybe we need
41:16like a science fair board and we just
41:17every week we just move them up. Okay,
41:19where's Eli?
41:20>> I they could be ahead of Meta soon. I
41:21mean, there's it's Tesla and Meta are
41:23staring in front of them. So, they're a
41:26drug company. Here's the thing I want
41:27people to think about. So, Nvidia is
41:30stuck in mud. Their PE has collapsed.
41:33Um, they announced 70% revenue growth.
41:36Their PE is down at 13 12. Who knows?
41:40Does that make you more bullish on
41:41Nvidia?
41:42>> No. And here's the reason why.
41:46There are two things about Eli Liy
41:48comparing them to Nvidia that are very
41:49different. Number one, the great thing
41:52about Eli Liy in this world of AI
41:55infrastructure trades,
41:58they are making money on the health care
42:01problems in the United States where the
42:04spending is coming is guaranteed every
42:06year. It is nonyclical.
42:09So they've historically because they
42:11didn't have these growth numbers for a a
42:13pharmaceutical company are insane. Now
42:15most of this is related to obesity, but
42:19the penetration that they've had.
42:21Remember this is been an injectable. Now
42:24they're moving to an oral.
42:27They have about 10% of people from what
42:31I saw in the thing diagnosed with
42:32obesity in the US. They've only
42:34penetrated 10% at this point, which
42:36means they still have a lot of room,
42:38especially with pills. The prices are
42:41going down, their volumes are going
42:42faster than their price decline. You
42:44love to see that. Uh I think they've
42:45called that Jebans paradox. I don't
42:47really know. But as the price goes lower
42:49and more coverage happens, go globally.
42:52This is that was just the US numbers.
42:53But globally, they are less than I think
42:573% I think it's 2% of of the global. So
43:00they still have more money from that.
43:01That's where most of the growth is
43:02coming from. But when you go through the
43:04other areas like dementia, oncology,
43:07immunology, they've got significant
43:09revenue growth there. And what people
43:12have to understand is it's one thing to
43:13be dealing with just obesity and
43:15diabetes. It's another thing to have
43:17this growth area that is also there from
43:19all of the drug discovery that they're
43:21spending time on. That stuff is going to
43:23be down the road. I love having call
43:26options. If they come up with some cure
43:28on something, what happened to Maderna
43:30when they came through with something
43:31that's still up for debate? you get this
43:33massive rise because they start building
43:35in the numbers. So you have the
43:36non-yclicality which means it's a
43:38diversification on the other things. I'm
43:40sitting here I I say okay my biggest
43:43position is ex you know my biggest
43:45position was Marll. Well then it just
43:47fell 20%. My biggest position is now Eli
43:49Liy because it went up 10%. Regardless,
43:52Eli Liy has been unbelievable and all of
43:55this is happening as it's about to post
43:57its 10th positive year in a row and this
44:01one will be another 30%. So, it's been
44:03compounding in this very steady fashion
44:05on the back of the diabetes situation,
44:08but they've got a lot more call options
44:10with inside their numbers. Is it fair to
44:13say that your thesis on Eli Liy is one
44:16foot in the old world, one foot in the
44:17new world? What I mean by that is uh
44:19you're basically saying Eli Liy is one
44:22of the best ways to profit off of the US
44:26government's lack of spending discipline
44:30because they are going to spend money
44:31and a significant portion 20 30%
44:34whatever it is goes to healthcare of
44:35which Eli Liy is a very big uh component
44:39money ends up in their pocket for that
44:41at the same time all of the AI stuff
44:43quotequote the new world Eli Liy is
44:45leaning very hard into that and they're
44:46able to drop prices, accelerate growth,
44:49use M&A, right? All those things. So,
44:51like Eli Liy may be one of the most
44:54interesting businesses I think I hear
44:56you saying where they're benefiting from
44:57these like long-term kind of traditional
44:59trends of healthcare and aging
45:01population and obesity, but they're also
45:04almost disrupting themselves to a degree
45:06with all the AI stuff. And you put those
45:08together, it's like 1 plus 1 equals 5.
45:10And that's why you're bullish.
45:12This has to do with if they didn't have
45:15Murro and the whole OMIC
45:18cash cow business like you like to see a
45:20business that like when if you go
45:22through Apple people have to remember
45:24like before the iPhone yeah they were
45:27turning the business I mean Steve Jobs
45:29had turned it around but how much did
45:31the iPhone change everything and look at
45:33their hardware numbers to go from what
45:35it was to what it is today. When you get
45:37a cash cow, you can get into other
45:40things like services and they've turned
45:41themselves into a service business. For
45:44Eli Liy, this cash cow side is enormous.
45:47All pharmaceuticals do not have this
45:48cash cow. And this cash cow is growing
45:51every single year right now. What are
45:54they doing with the cash? I made the
45:55joke, but Nova Nordisk had the same
45:57thing. And they use the cash to go pay
46:01dividends. And this is I mean this was a
46:04they didn't want to make a bet. Eli Liy
46:07has made significant AI bets. If I try
46:10to describe to people the importance of
46:12Toon Lab, the importance of the data
46:15center that they did for themselves, the
46:17setting up a location outside Stamford
46:21out in Silicon Valley to basically work
46:23with Nvidia. when you see Nvidia and the
46:25CEO Dave Ricks on stage together and you
46:28listen I mean I spent a lot of time to
46:30just hear the plan make sure that this
46:33was smart but if you have all that cash
46:36I have believed for the last 3 years
46:40that unfinished IP
46:43was incredibly valuable
46:45and what I mean by that is when a
46:47biotech company goes public which was a
46:50massive part of I mean the the co years
46:53and Even before that, when they would go
46:55public, you have to have science behind
46:58that to raise the money that was
46:59necessary. So, it's not like these were
47:01hairbrain schemes or scams that would
47:03eventually go. These were IP. Now, maybe
47:06they weren't able to finish them, but if
47:08all of a sudden they're getting closer
47:09and closer and Eli Liy goes, "Okay,
47:11we'll we'll we'll buy you guys." And
47:13they're doing these M&As to buy these
47:16IPs that they think are worthwhile. Now,
47:18when you add in the benefits that came
47:20from Ozmpic,
47:23they don't know why dementia is better.
47:26They don't know why, you know, the
47:27chronic inflammation, why all of a
47:29sudden people have less knee pains, why
47:31addiction went down. There's a lot of
47:32science in this that Eli Liy has data
47:35from all of these millions of people and
47:37what they've gone through coming out
47:39that uh should help them from the data
47:42collection. So when you go through
47:43everything and you really think what
47:45this is, I think this is a very unique
47:48part of AI. So when I say this will be
47:49the biggest AI company compared to
47:51Nvidia, there is a risk of an overbuild.
47:55You have to build that in. This is a
47:56cyclical thing. And I do think at some
47:59point we're seeing that with Intel
48:00today. Why is Intel down so much? It's
48:02not because the demand's not there.
48:05Their PC sales are suffering. Why is
48:07that? Cuz memory costs have gone higher
48:09and you can't even get the memory. The
48:11bottleneck issue keeps these companies
48:13from actually being able to accelerate
48:15as much as they would. And so that's why
48:17you see these multiples compressing. For
48:19Eli Lily, I don't they don't have this
48:21issue. They they don't have to worry
48:23about this. This is a very different
48:25thing. So this gets into the application
48:27is the the major story here
48:29>> because of the AI and cyber security
48:31concerns. Do you have any cyber security
48:34stocks that you are buying or interested
48:35in?
48:37So I do not spend a ton of time on
48:40single companies with inside the space.
48:43Um if I wanted to say the only software
48:46company that I own is Palunteer and
48:49Palanteer is becoming a much bigger
48:50position for me relative to the
48:52semi-names because Palanteer's
48:53outperform so much. Uh, I've talked
48:55about Palunteer in here, but this got
48:57into the sovereign AI thing. And if you
48:59go back from the day that Alex Karp
49:02spoke about the importance of
49:04sovereignty, AI sovereignty, and you go
49:06look at what Palanteer has done since
49:08that day,
49:09you made a lot of money if you went out
49:11and bought Palunteer. So I that is kind
49:14of my theme on this. These names trade
49:16at such high multiples and that means I
49:18really have to drill down and I have to
49:20get a sense. I think all the demand side
49:22is going to be there. But if you ask me,
49:24do I believe that a lot of that demand
49:26is already built into the stock? There
49:27is no doubt that those names could go
49:29sideways for a year and a half, just
49:31like we've seen in the semiconductor
49:32names for the last four months while the
49:33earnings have grown.
49:36It can just be stuck in the mud. All
49:38right, before I let you go, I want you
49:39to think of is there anything that you
49:41did with AI this week that is a little
49:43tip for everybody? While you're
49:45thinking, I'm going to tell them one
49:46that uh that I figured out. I used
49:49Grockbot and I set up a bot
49:51genealogologist
49:53and I basically spent maybe 15 minutes
49:57telling it, "Hey, here's my parents'
50:00names, my grandparents' names. Here's
50:02family lore. I think that there's
50:04somebody named this that did this, blah
50:06blah blah." And go find as far back in
50:09my family lineage as possible.
50:12And I knew some detail, like I knew the
50:15town that my great-grandfather comes
50:17from in Italy. I know this or that. But
50:19actually, you'd be surprised. Some stuff
50:21I don't know, right?
50:23>> This thing was incredible.
50:26Marriage certificates, birth
50:28certificates, voter roles, all all the
50:30like public stuff that you you almost
50:31expected to be able to do.
50:33>> It started to identify where certain
50:36records were. So, uh, my family, um, one
50:39part of my family comes from a place
50:40called Sumona, Italy, which is I don't
50:43know if you ever seen like, uh, confetti
50:44candy, you know, like All right. That's
50:46where it was invented. That's the only
50:48thing that the town is known for. But
50:50the records only go to like 1865 or
50:53something on the internet. Past that, it
50:55is all, you know, written in books and
50:57stuff. It was crafting emails in Italian
51:01to email to the people in this town
51:03saying, "Can you go into the books and
51:05get this?" I said, "Dude, this thing is
51:07incredible." I would pay any amount of
51:10money for this tool. And then when you
51:12focus it on genealogy, I was like, "You
51:15could do this for anything." So, my one
51:16thing is if you're interested in your
51:18family's lineage, your genealogy, uh
51:21don't worry about all these websites,
51:22just hook up a Grockbot, tell it you're
51:24a genealogologist, go and just tell as
51:27much information as you can. And uh it's
51:28a nice little uh weekend activity. Your
51:31turn.
51:32>> Only thing I'll I'll add um that was new
51:35this week, and this actually was from a
51:38direct thing that Matt said, your your
51:41producer. Um
51:43>> the boss.
51:44>> Yeah. So, I started to um I have a lot
51:47of people that
51:50want shorter versions of my video. They
51:52wanted me to do YouTube shorts. They
51:53wanted me to do other types of videos.
51:55My family did as well. So, I literally
51:58took my video from the weekend and asked
52:02it to create shorts. I also uploaded um
52:07a bunch of old videos that I had done of
52:09my son skiing and had it create
52:13a new video with all the little clips as
52:16one thing. The video editing.
52:19Incredible. It It's incredible because I
52:22didn't have to do anything. I literally
52:25just uploaded the first video and said,
52:26"Can you find the most interesting
52:29clips? I want to do these as YouTube
52:31shorts for the YouTube channel." That's
52:32the way it started. And that was from
52:34the suggestion of Matt. And it did it in
52:36a matter of minutes. Like it was maybe 6
52:38or 7 minutes, I couldn't believe how
52:41good the selections were. But with my
52:44other videos and doing it from like
52:46family related things, this is where it
52:47became more interesting to me because
52:49the creativity that it has with, hey,
52:52here are six videos. Why don't you put
52:54these together in a way that makes it
52:56more interesting? If you want to put
52:57some music into it, go. Like anything
52:59along those lines, you'd be shocked at
53:01the ability to do it. What did you use
53:03to do it? Which platform?
53:05>> No, this is Grockbot.
53:06>> Grock. Oh, yeah. Grockbot. That's what I
53:08mean is that historically to do video
53:10editing,
53:12>> there were AI tools,
53:14>> but it was kind of a still a little bit
53:16of a hassle. With Crockbot, it was
53:18shocking how fast it was.
53:19>> All right, I actually lied. I have one
53:21other one that the team the team will
53:23get mad. It's not as AI specific, but I
53:25do think this is very important. Um,
53:27this week with Sylvia, we launched
53:29something called Sylvia Legacy. And uh
53:31if you watch this podcast, uh I have had
53:33this conversation with a ton of friends
53:36that are married in the last 3 or 4
53:37months as we've been thinking through
53:38this, sit down with your loved one,
53:41spouse, friend, child, whatever, and
53:43say, "If something unfortunate happened
53:46to me, do you know where our assets are
53:49and could you actually get access to
53:52them?" Some people, yes. Some couples or
53:55or you know, families, there is an
53:58awareness across multiple people. Most
54:00that is not true. Usually somebody's
54:02responsible for the spending, somebody's
54:04responsible for you know the investment
54:05assets. What we built is when you hook
54:08up all of your accounts into Sylvia. So
54:09you go to silia.com, you touch your bank
54:11account, brokerage, crypto account, etc.
54:14>> You can now pick an individual up to
54:17three of them and say if I do not log
54:19back into Sylvia for some period of
54:21time, I want you to notify me. And so
54:25what I did is I chose my wife as my uh
54:27Sylvia legacy person. I said, "After 60
54:30days, if I don't log in, I want you to
54:32send me an email and a text message.
54:34Send one the first week. If I don't
54:36respond, send me another one the next
54:37week. Send me another one the third
54:38week. If I do not respond or engage in
54:40any of those for 3 weeks straight, I
54:42want you to wait, I think it's seven or
54:4414 days. And then I want you to take all
54:46of the information in Sylvia, so all my
54:48accounts, my assets, where they are,
54:49etc. And I want you to deliver what we
54:51call financial package to her." So, I'm
54:53in control of who's the recipient, what
54:56information she gets, etc. But then I
54:58had to make a decision.
55:00Do I include so Sylvia allows you to
55:02choose just the assets or do I include
55:04the chat history because we thought the
55:06fine control some people think the chat
55:07history is very personal.
55:09>> For me I chose I said include the chat
55:11history. Now part of it is I think she
55:12would be entertained by reading me
55:14talking to an an
55:15>> LLM.
55:16>> But two was that's really where the why
55:19is. What was I thinking when I bought
55:21this? What was I thinking about you know
55:22tax blah blah whatever. And so one, I
55:25genuinely believe that multiple people
55:28in a family, loved ones, etc. knowing
55:30that they will get access at some point
55:32if somebody passes away or whatever is
55:34important.
55:35>> But two is it started me thinking about
55:38the chat history has become this weird
55:40asset. It's kind of like families have
55:42scrapbooks, you know, all these
55:44different like family based things. I
55:46talked just about the genealogy bot,
55:48right? You were talking about the video
55:49editing. like what happens to all of
55:52your videos and all of your knowledge?
55:54>> How do you get that to loved ones?
55:56>> Chat history, not just of, you know,
55:58something like Sylvia where is very
55:59attributable to the assets, but then
56:01like, well, what about me talking to
56:03Grockbot about the business? Should
56:05somebody get access to that stuff so
56:07they could hopefully, you know,
56:08transition the business or whatever?
56:10It's just a fascinating time that we're
56:12living through now, right?
56:14>> It is. And this is the point about when
56:16you get back to how few people are using
56:18the technology. Um I I I don't know what
56:21to say to people just just about how
56:23powerful it is. You're going to get over
56:25the privacy issues at some point
56:27>> 100%.
56:27>> Um the amount of times that if people
56:30want to commit to
56:33I don't know why and this is the number
56:35one reason you you mention all these
56:37things. I still believe not believe Muse
56:40is the most powerful for a lot of the
56:42things you're describing and the reason
56:43is because Meta has spent an enormous
56:46amount on their model related to memory
56:48>> chatbt and Grockbot none of the well
56:51Grockbot is is is similar
56:54>> the memory side of Muse is unbelievable
56:57so when I do my recipes when I do
56:59anything if I'm measuring my health for
57:02a month and I go you know what I just
57:04want to make sure that at the end the
57:06numbers is that I'm seeing an aura ring
57:08and my eyew watch match up. So, I'm
57:11going to start telling you every meal
57:12what I've had. So, if someone's trying
57:15to lose weight and they're like, "Okay,
57:17you got to count your calories." It's
57:19much easier to say, "Hey, Muse, this is
57:21what I just had for breakfast." And
57:23that's it. Hey, this is what I just had
57:25for lunch. Anytime you eat something,
57:26you put it in there and then you don't
57:28have to tell it, "Okay, sum this up for
57:30the day." It just has that record
57:32forever. And then you say, "All right,
57:33can you go back and give me all of the
57:35days of the month and give me the
57:36calories for each month so I can see if
57:38I'm not losing weight because of my
57:40exercise or because of my eating?" And
57:43as long as you're honest with it and
57:45you're doing it as you go, literally
57:46like a walkie-talkie, which takes 2
57:48seconds, it's great. If you are someone
57:50who scrapbooks or you do something where
57:52you're keeping a daily journal, you can
57:55take a photo of it, upload it to Muse,
57:57and then it has everything forever and
58:00it never forgets it. And I just think
58:02that that's going to become a part of
58:03our lives and it will be Alexa at some
58:06point as well where you can just do it
58:08verbally and it's either on your phone
58:09or it's verbal. It just doesn't matter.
58:11>> We should do an episode maybe towards
58:12the end of the year and bring all of the
58:15unique use cases that we have both
58:17discovered around using this technology
58:20and explain to people how to do it. I
58:21think people would be very interested in
58:22that.
58:23>> We'll do it.
58:24>> All right, that's it for today. Go to
58:26YouTube, search Jordy Visser. He's gonna
58:28put out a video tomorrow. Make sure that
58:30you subscribe. Happy Halloween to all of
58:32you. I hope that you do not eat too much
58:34candy. If your kids go
58:35trick-or-treating, make sure you dad tax
58:38them. Make sure you take a little bit.
58:39Go check out sylvia.com. Sign up. Make
58:42sure you pick someone for Sylvia Legacy
58:44so that they will get access and
58:46understanding of your financials when uh
58:48when you ultimately pass away because
58:49time does not escape us all. Marcus
58:52Aurelius all the way to us. We all
58:53understand that. See you guys next

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