I see a large IPM on the horizon.
You're surrounded by journalists. Hold your position.
Overnight success.
The place 3000 double right there.
Clearing order inbound. Let's just roll.
We are surrounded by general. Hold your position. Come on. Get up. Trust the experts here.
We are excellent. Founder mode.
I see multiple journalists on the horizon. Stand by. UAV online.
Blaze. Double blaze. Triple blaze. Double kill.
Is win. Team deathmatch. We are experts. Triple blade. That's just wrong. Right.
Clearing order inbound. We are surrounded by journalists. Hold your position. Strike two.
Activate golden retriever mode. Here. Clearing order inbound. 52.
I see more journalists on the horizon. Stand by. Founder.
You're watching TVN. Today is Thursday, January 29th, 2026. We are live in the TVP Ultrado, the Templar of Technology, the forces of finance capital of capital. Let me tell you about ramp.com. Time is money. Save both. Easy to use corporate cards, bill pay, accounting, a whole lot more. They got Super Bowl ads, too, in just a few days. We're counting down the days to the Ramp Super Bowl ad. We're very excited for it.
Yeah. Also, not the Super Bowl. Counting down the days.
Yeah. I Super Bowl. I learned a fun fact. I think I put it in here. Apparently, they had a Super Bowl back in 2001.
Okay. Have you heard of this? Tell me more.
So, I got followed by this account that's called 2001 Live. 2001 Live. It's 25 years ago Live. It's a cool account. And in here, they flash back to like what was happening, you know, 25 years ago. Every day they post what happened 25 years ago. Kind of a cool account. It followed me. I followed it a while ago, but it followed me and I saw a post in here that said 25 years ago they did a Super Bowl in Tampa, Florida. The Baltimore Ravens beat the New York Giants 34-7.
This is the Ravens' first Super Bowl title. I guess people are not happy about that. I don't know. But anyway, very excited for the Super Bowl. In other news, let's run through the linear lineup.
Pull it up. Meet the system for modern software development. 70% of enterprise workspaces on Linear are using agents and we have a fantastic show. We have Anton from Lovable coming in studio in the Ultrado. Then we got Christian Delian from Hill and Valley breaking down what's going to happen at the Hill and Valley conference in just a few weeks. And then we got Eric.
We need a nickname. No, we love Eric. Of course from Mobile Dev Memo, Heracles Capital. And he's coming out at 1. We're going to talk about ads, chat ads. How's rollout going? Also obviously earnings makes a ton of sense. And then Kevin from OpenAI is coming on again returning to talk about science.
AI and science. AI and science and if we're seeing a Claudebot type moment and feeling the AGI in science what we should be looking for there in 2026. In other AI news of course we will go into earnings and whatnot today. If you're tracking earnings make sure to head over to public.com investing for those that take it seriously. Stocks, options, bonds, crypto, treasuries, and more with great customer service.
So in the news today, Apple said this morning that it has acquired Q.AI, an Israeli startup working on AI technology for audio.
Yeah. Apple didn't disclose the terms. The company was backed by Matter Venture Partners, Kleiner, Spark, Exor, and GV. So nice nice little lineup and great outcome. The Financial Times reported it was worth nearly two billion, so pretty meaningful deal. Apple is not known for, you know, really paying up on a lot of different M&A that they're kind of folding in to their roadmap.
We had Mark Gurman on yesterday talking about how Apple uses M&A effectively to accelerate their roadmap. So according to Reuters, Apple did not say how it will use Q.AI's technology, but said the startup has worked on new applications of machine learning to help devices understand whispered speech and to enhance audio in challenging environments. Q.AI last year filed a patent to use facial skin micro movements to detect words mouthed or spoken.
This is we've seen a couple startups that are, you know, doing like the whisper like what do they call it? It's like telepathy almost. It tracks your mouth movements. So you can just then it like will track what you're saying. Really really crazy.
So facial skin micro movements will be used to identify a person and assess their emotions, heart rate, respiration rate and other indicators. Very sci-fi. Q.AI's 100 employees including the CEO and co-founders will join Apple.
So the founders. Javad Meiselle founded three-dimensional sensing firm Prime Sense and sold it to Apple in 2013.
Absolute dogs. They're doing call. The Prime Sense deal eventually helped Apple move away from fingerprint sensors on its iPhone and toward facial recognition technology.
Interesting. Said joining Apple opens extraordinary possibilities for pushing boundaries and realizing the full potential of what we've created. So very very wild to be going back to Apple for a second time.
And pop quiz for Tyler, why does Apple acquire companies?
I mean, why questions are usually pretty open.
Okay, good answer. But Mark Gurman told us, why does Apple acquire companies? To accelerate the roadmap. Accelerate the roadmap. Yes. And it's funny because I asked him like why are we going to hear Tim Cook say that? And he was like, oh, because earnings, but we're basically hearing them say it today with this surprise acquisition that's obviously the line from Apple. And it makes sense.
This is something that is uniquely acceleratable because of the Apple hardware ecosystem. They can deploy this through AirPods. They can deploy this through the phones just like they did with Face ID. If you have that technology and you're like, oh, well, in order to log into your computer with your face, you're going to need a third-party device that you plug into USB. Like, no one's going to do that.
But if you're just like, yeah, it's going to get baked into the hardware. We have the patents. We have the. And haven't you been wanting them to make more moves in specifically audio and transcription for a while? I've been like an audio interface bull forever, like since I worked at a startup that competed with Siri in 2010 or something like that.
And it was actually a good outcome. I didn't get any equity because I was just an intern, but it was actually a great outcome. They sold to Dragon, naturally speaking, and everyone made a bunch of money. But Siri, here we go. But Siri was like the hot kid on the block back then. And Siri came out of Stanford so they were much closer to Cupertino. These guys came out of MIT very similar natural speech recognition, you know, machine learning pipelines for understanding speech doing dictation.
Their main platform was BlackBerry because BlackBerry was really really big. They had a BlackBerry app store. They did a deal so that you would get like pre-installed so you get a big check from RIM. They did a very interesting out of home campaign where they bought billboards right outside of Research in Motion, the maker of BlackBerry's headquarters because they were advertising.
Yes. AdQ didn't exist then, but they should have used AdQ. Because they were basically they only had one customer effectively. I mean they had every customer that could go buy the app, but then all the other apps that were on either Google and Android quickly rolled out competitive features with Google Assistant. Siri got acquired and so it was very clear that like Apple was not going to be a really fertile ground for playground for them.
And so they needed to get sort of like the attention of the BlackBerry execs and so they put up a billboard right outside their headquarters which I still like as a strategy. I think it's very fun. But yes, I've been very bullish on this. I was thinking back then that, you know, people get their wisdom teeth out. This is very weird in cyberpunk, but if you got your wisdom teeth out, you could potentially like create like add a like a port for storing a microphone.
Any of these? I should have got that. Yeah, exactly. Because a lot of people get them out and then you could just put a port there and you could insert basically the tip of an AirPod, a very very small device that you would charge and then you put it in and then when you're whispering you can just hear it can only hear that and it goes dictation straight to your phone.
Obviously that's unnecessary because you can, you know, do bone induction. You can just also just have a, you know, an AirPod in and just talk out loud and not care what people think. There's those crazy muffled things. You've seen that where you put on the headphones and then it puts like a cover over your mouth so you can talk in public.
Oh yeah, it's silent around you. Connor says, I want my iPhone to unlock only if I silently mouth the words open sesame.
I think could be in the future. I was wondering about that would actually be nice if there was some other element because you still have this like wearing sunglasses trying to unlock your phone. Sometimes some pairs of sunglasses I have it one-shots it, others it's like, you know, pretty annoying.
I was wondering about the quality of whisper transcription these days. Like if I just open up whisper on the ChatGPT app, put my phone in my pocket and just talk, can it just hear through my pants pocket and just dictate perfectly now? Because like AI is so good at transcription that it can be really muffled. Like you can have music playing in the background and talk to whisper and it just won't mess up.
So there is a world where you don't actually need like a separate pin. You just have something anywhere on your body and it knows, okay, this is what John sounds like that. Let's kill all the background noise. Let's kill all the other people talking. Let's isolate that with AI. Like, it seems pretty pretty good for that.
Anyway, let me tell you about Lambda. Lambda is the super intelligence cloud building AI supercomputers for training and inference that scale from one GPU to hundreds of thousands.
One more thing on this Q.AI acquisition. They're using going back to their patent using facial scan micro movements to assess emotions, heart rate, respiration rate, and other indicators. You could imagine where a world in the future where you have Apple smart glasses that effectively have like health monitoring because it's tracking respiration, heart rate, all these different things.
And just basically integrating the features you're getting from the Apple Watch today. Yeah. Seems but I wonder what it's really unlocking that the watch can't do. There's always the question when you pitch a new device, it's like, well, your phone does have a camera on it, so you're not This is like the smart glasses aren't the first.
Yeah, but it's a new device, but it's a Lindy form factor, right? Like this something we've talked about in the past. It's like the, you know, the new hardware that's taken off is an existing form factor. It's like headphones, eyewear, you have watches, right? Creating these pendant things so far hasn't hit, right? Because it's like a.
It's fair. I just think like on the heart rate issue specifically, there was an app before the Apple Watch existed where you could put your finger over the camera of the iPhone and it would use the light the flashlight which was right next to the camera at that point to light up your finger.
So your finger would turn red and then it would take the sensor data from the camera and measure the pulses of the red and give you your heart rate just from touching your camera. It's pretty cool. Like it was completely outside of the Apple ecosystem, just an app that you could download or pay for.
And so the phone can take your heart rate, the watch can take your heart rate. If you give me glasses and you say, those glasses can also take your heart rate. I'm like, I got enough heart rate measurement. I can also just go like this and estimate it. Like there's a bunch of ways to know that your heart rate's spiking. Maybe tracking is in different, but it feels like they need to go farther.
And the real opportunity is something more around audio interfaces, link it to Siri, have more ways to triangulate what the person's trying to say, what they're saying in a noisy environment, whether they're trying to be quiet and you still want to isolate what they're saying, having a back and forth, reducing latency.
All of those things are very critical to success in that category. Anyway, we are going to be in San Francisco on February 3rd, next week for Cisco's AI Summit. It's bringing together leaders from Nvidia, OpenAI, AWS and more to discuss the future of the AI economy. The whole thing will be live streamed and we'll be there for a gig stream.
Did the fireworks get longer? I think so. I think they got longer today. There's a lot to celebrate, John. Let's go earnings.
Microsoft. So, Microsoft shares have taken a dive as data center spending overshadows earnings surge. Let's give some numbers here. So, Microsoft's Q4 revenue was $81.3 billion, which was higher than the consensus estimate of 80.23 billion. So, they're making money. There's no lack of demand for Microsoft services.
Q3 2025 revenue was 77.1 billion, up almost 5% and year-over-year group growth was 17% for Microsoft as a whole. But the stock sold off by 12% and Microsoft is now just a tiny little $3.15 trillion company. Not bad, but it's still only down what 6% over the past 5 days. It was a rise.
Yeah, I mean people have been excited about the OpenAI investment which did show up in earnings. So OpenAI owns roughly 25 27% of the new for-profit entity.
Sorry, Microsoft. Microsoft owns 27% of OpenAI's new for-profit entity and that value is actually reflected in Microsoft's earnings. And of course, more importantly, the GPT models are truly frontier. Like we've seen it again and again. There's like this horse race over this model's better at this thing, this model's better today. But it's just very clear that OpenAI is on the frontier and in the conversation for pretty much every application possible.
And so you can just imagine you take GPT 5.2 Pro, you vend that into knowledge work pipelines for Microsoft users. That sounds really useful. They aren't behind on coding. We've heard great stories about how Codex is a great model. Maybe it's a little slow. Maybe they need to speed it up, but people are having a lot of luck with Codex.
And so you can imagine that Microsoft is capable of integrating Codex into all sorts of different pieces of the Microsoft empire to create agentic workflows. And then they also have a deal with Anthropic. They also made an investment. So they are multimodel, multiplatform.
But the problem is that Microsoft seems to be constrained on the data center side. So the CFO Amy Hood said on the Microsoft earnings call that limited availability of artificial intelligence hardware is affecting how quickly Microsoft's cloud business can grow and it's capping Azure's revenue potential.
Not good. They need to take another trip to Abilene. They need to build more data centers. But it's tricky. It takes time and right now maybe it's just a data center capacity issue. What's next? Is it going to be an energy bottleneck? Is it going to be a chip bottleneck? These are stories that we're tracking.
Ben Thompson is starting to sound the alarm bells around TSMC capacity constraints and what is TSMC doing on the capex front? Are they investing enough? Are they at risk of holding the bag if AI stalls out? Are they taking enough risk so that if the AI boom continues that they can continue to deliver and ramp up or will Samsung and Intel need to step up and will companies like Microsoft need to put pressure on those companies. That's another point of debate.
Yeah. So David in the chat is referencing this, but basically obviously it's amazing that Microsoft owns such a big slug of OpenAI. That's great. But the challenge is so much of their backlog is OpenAI and they're actually getting less credit for that. Right? The same way that Oracle had gotten punished for it, now it's Microsoft's chance to actually get punished.
And Microsoft, if you actually zoom out a little bit and just look at the last 6 months, down 17% in the last six months and down 4% over the last year. So, it's funny like in a year where it feels like the last year Satya and Microsoft have just been on this insane run, they've fully, you know, round trip.
Totally. Totally. Yeah. Before we move on to Meta, let me tell you about Sentry. Sentry shows developers what's broken. It helps them fix it fast. That's why 150,000 organizations use to keep their apps working.
So, Meta also reported earnings yesterday. 59.9 billion in revenue in Q4 of 2025, beating expectations of 58.5. Revenues up 16% from Q3 of last year, which was 51.24. The company's growing its revenue 21% year-over-year. That's higher than Microsoft's 17% topline growth. Stock popped 10% after hours and the market cap is now 1.84 trillion.
So Mark Zuckerberg told analysts on the earnings call in 2025 we rebuilt the foundations of our AI program. That should be obvious. There's so many acquisitions, so many hires, so many experiments, so many different strategies and discussions and changing of the guard and restructurings, layoffs and reality labs. It's the compute desk. There's been so many stories about Meta really rethinking their AI platform, rearchitecting the foundations of it.
So he continued to say over the coming months we're going to start shipping our new models and products. Very excited for that. He says I expect our first models will be good, but more importantly they will show the rapid trajectory we're on. And I think that we all have high expectations. I don't think anyone's expecting them to jump way way out in front of everyone else. But if they can just be in the conversation with DeepMind, Anthropic, OpenAI, I think that will quell a lot of the.
But also, what are they doing with them? Yeah. I think that matters. I think that matters more.
Really, really important. Yeah. Because you just look at this is why I'm excited to talk to Eric later today but you look at Meta's business and the way in which GenAI can accelerate everything from generating more content on the platform to having better ads to better targeting all these things right and not to mention like where they can just vend it in at the product level right.
The product level stuff is tricky. I mean like I've bumped into Meta AI in Instagram many times.
And you do get reasonable, you know, natural language responses, but it clearly still has the knowledge cutoff. It's not searching the web as effectively. It's not pulling together the it doesn't feel completely native to the platform.
Like if you go into Meta AI in Instagram and you ask it to go and hunt around in Instagram for a specific creator or reel based on some clues, it doesn't feel like it has the hooks to really go in and understand, okay, based on what you've watched and what I've showed you in the past, this is probably what you're thinking of. Like that is sort of a superpower.
Where you know there's so many times when you're on the timeline and you're like I saw this post I didn't bookmark it didn't like it what was it and you want the search products to be empowered magically. What are we laughing at? What do you think?
You going to flash back me again? Close. Continue.
Anyway, I think that there's the basic case of they got to get an LLM that's frontier that has the big model smell, fun to talk to, good vibes, then they need video and audio models that are rock solid and then they do need to vend those in.
I think just having an API or just having a place where people can generate, you know, photoreal videos or even things like Sora where it has the aesthetics and pacing and cuts of an Instagram reel. That doesn't feel like it's enough. It feels like to really empower like the Instagram creator, it needs to be built into the platform like the, you know, like the captions are or those like, you know, the face filters on Snapchat that started there, like augmented reality stuff, replacing backgrounds.
Just letting people still bring what's personal to them, their family, their experiences, their car, but take a couple photos of their car and turn it into a really really awesome drone shot of them driving their car.
I've seen a lot of really sweet edits where people will fly a drone over a car. Then they'll have a first-person GoPro on their chest while they're driving their car. And then they'll use AI to interpolate between the drone shot and their first person view because they can't actually like if you have a multi-million dollar Hollywood budget, you actually can fly the drone into the car, have someone sitting in the car, they grab the drone, and then they hook it on a crane, and the crane takes it out and does a different shot with it.
But that's like a multi-million dollar experts, tons of equipment. There's all these crazy things where someone will be on a steady cam, on a cherry picker, this crane comes down, then they start walking into you can do these really elaborate shots. But with AI, you can interpolate and like make those transitions. And so even just like AI powered transitions would be a really really cool thing to bring.
Yeah. Not to mention they own Manis now, which is a fantastic product team. They've built some great agents. You can imagine them integrating like basically like prompt to short form video, right? Where you can just describe the video that you want to make, insert real, like basically like generate B-roll for this, pull footage from around the internet, whatever.
And so there's so many things that they can do. And again, they've just been using Meta AI as a sandbox for the most part. But I'm just excited for them to start shipping across. The remixing thing is so underrated because there's a lot of people like the number of people that have like true inspiration for new formats is pretty low. People always do the stitch.
Think about the remix functionality. You see a funny video and you can just like basically do a character swap in there, right? And it's like that's new content that's going to be shared and a bunch of people engage with.
So Tyler, what's your take on Meta's new plans for 2026?
Yeah, I mean I definitely think the image and video models are much more important to get right than the LLM. Mainly just because like it seems like very natural them to vend it into everything compared to OpenAI or Google who are like right now fighting it out in image or in video.
Yeah. So it seems like if they can kind of do really well, you can get OpenAI and Google out of that race basically.
Yeah. Yeah. And then the LLM it's like it's unclear what the actual like use case will be in the short term. Eventually you want some cool like, you know, Claudebot style agent somehow vented in but it's unclear how that's going to work out. So I think in the short term I'm very excited on the media model.
Yeah, I mean I really like that model of like the LLM going around and just like seeping into the cracks of all the different product experiences but in these like really subtle ways like YouTube now has AI generated summaries on videos and you can chat with a video.
So, if you're watching someone build a PC, you can ask Gemini on YouTube, hey, just print out the exact list of parts that the person used to build the PC. And there might be a parts list at the end of the video. There might be a parts list that's, you know, randomly mentioned throughout. Sometimes a creator might actually link to a real parts list, but Gemini allows you to scrape the transcript and then just get that however you want and then transform it or, you know, add prices to all of it or see if it's available in Japan because I'm in Japan.
All these interesting things. And I can imagine on Instagram being able to go to a post that has like thousands of comments and just say, hey, I want the LLM to kind of summarize the sentiment like what are the facts? Like, you know, people were debating whether or not this is AI. Is there a consensus? Or people were adding context. What was the key context that people were adding?
There's a lot of posts that are basically like rage bait or clickbait where it's unclear what's going on in the video. And so you go to the comments and people are like I don't get it or like they put up that sign like context needed please. Right. And so you can kind of do that.
Yeah. But I feel like that stuff can just like I'd rather just have that be in the like recommendation algorithm like sorted comments. If everyone in the comments is saying this is clickbait, just don't put it in my recommendation algorithm. Right.
It's like also on X there's Grok, right? On every post you can ask Grok. I don't think I've ever used that.
You've never used that? I use that. I find the little like, you know, where you add a little bit of AI here and there. I basically never use anything.
Maybe that's just, you know, I'm a fan. I do see posts where there's, you know, a list of companies that someone's talking about. Oh, here are all the cool companies that I like. And I can click and just get a little summary of each company and I don't need to pull it out, go to a different model. I don't know. I feel like once a day Grok will share context on something that is actually valuable.
Yeah, totally. Totally. Like in general in the comments add it. Somebody added it.
Like I remember Eric Seufert yesterday was responding to something. Somebody was basically saying like shareholders voted against the Tesla XAI investment and then obviously they went ahead with it and Eric responded and he was like, hey, was this real? And then Grok just shared kind of the history on it and it's like somebody else could have shared that and provided the context but I can do it instantly.
It's helpful to have a little bit extra context there.
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Suspended Cap says I got to really respect Zuck. Willing to spend over 50% of revenue next year when they still haven't delivered a single compelling AI product. Hell yeah.
Yeah. I mean the capex is crazy. No, the whole thing $200 billion in revenue in 2025. That's founders. So much revenue. It's a lot of ads.
But they're now they're going to plow 135 billion according to the Wall Street Journal. The New York Times said 115. But either way, it's like more than half the revenues.
I think posts like this are funny and I think you can definitely agree that Meta has not shipped a super compelling, you know, AI product yet. Even though Metavibes has traction, not necessarily in our world, but certainly has some traction.
But you have to like this is the guy that owns the world's largest trough or one of the world's largest troughs, right? And so he knows that it's working. He knows he can see the future, right? He has all the data. He knows that people say they don't like AI content, but in reality, they actually do. They engage with it. They watch it. They make it.
The engagement must be growing exponentially even though it's very small. It started at a base of zero and then you got Harry Potter Balenciaga and now you have 10 videos a week that are going.
So I look at this different than some of the metaverse bets just because Zuck is one of the biggest beneficiaries of GenAI and so it's totally warranted to say like hey we should invest an obscene amount of money in this. This is clearly the future.
Yeah. Yeah. I mean there's so many different ways that no matter how you play out the AI future Meta is a beneficiary of that. So it makes sense that they're investing so heavily. But it is a remarkable shift in the financial structure of the business.
If you go back to thinking of previous years spending more than half of revenue on capex feels like a lot for a software company right it's like high margin whatnot.
Anyway, vibe.co where DTC brands, B2B startups, and AI companies advertise on streaming TV, pick channels, target audiences, measure sales just like on Meta.
Let's talk about Tesla. Tesla reported revenue at 24.9 billion. And this beat the consensus estimate just slightly. Consensus was 24.78 billion, but down 11.4% from the previous quarter when revenue was 28.1 and 3% decline year-over-year.
And Tesla's down 2% this morning. There was also a 61% drop in profit. And they're shuttering the high-end models of production. So they're stopping producing Model S's and Model X's. Which I think the Model S and Model X features will be sort of rolled into trim levels.
Like we've already heard about the So I was debating Jordy about this earlier. I thought that the Model Y and the Model X were the same length. The Model X is in fact almost a foot longer, so it is a bigger vehicle. They both have the option to have three rows. They both have very similar specs, but the Model X is bigger.
But in China, we've heard that they're working on the Model Y L, which is a long wheelbase version that will be, I believe, longer than the Model X. So, you have the ability to get a big Model Y. And then they're already doing different trim levels with long range plaid.
So, if you take the plaid badge and you put that on the Model Y L and then you add different specs and you say, oh, I want to spec my Model Y with Goldwing doors. Maybe all of a sudden you're back in Model X territory and you're dropping 100K.
But there's just no denying that the Model S and X sales have slowed and there's a whole bunch more competition at the high-end EV market from Lucid, Rivian, and so Elon is fully thinking about what's next.
He broke out subscriptions for autopilot self-driving for the first time. He's talking a huge amount about cyber cabs and robo taxis. He's making that cash investment in XAI. And of course, he's really focused on Optimus humanoid robots. And it seems like he could be scaling up production there very very quickly.
Million million subs of full self-driving. Yeah, not bad. And it's what 89? I actually don't know. I think you can look it up. I think I remember it's $89 a month. Yeah. But analysts, how much is it?
I guess $49 a month for vehicles with enhanced autopilot. Okay. There are a few tiers, but I mean if you build up the subscription, what is it? How much is it? I think it's a hundred. Hundred a month. Yeah. Yeah.
So, you know, you got a billion dollars a year coming in from that. Not bad. And of course, very high margin because you don't need to manufacture it.
Analysts thought Tesla was going to be cash flow negative for the quarter, but they actually were positive. They generated $1.4 billion in free cash flow, and this was down just 30%. So there's plenty of cash to keep the aggressive investments going, especially as Elon shifts the business towards autonomy.
He's not shy about making the change aggressively. He said, we would expect over time to make far more cyber cabs than all of our other vehicles combined. So he's fully fully going all in on.
Yeah, it's a little I think it's a little jarring for some people just because historically car companies have thrived by creating the perfect car in each category for every different consumer and Elon is basically saying actually I know what you want and I'm going to give you it.
Yeah, it's you know, you don't need that many options. Yeah. Where you're going to be able, like you said, to just leverage the different trim levels and spec out the car to satisfy.
And probably, you know, I do think over time like less and less trim levels and then eventually it's just cyber cabs and no one's buying cars anymore. If it really goes that way, I think this rollout will be slow.
I mean, the original rollout of the electric car was 20 years, right? For Tesla to actually get to saturation where you're seeing electric cars all over the roads. It'll probably be the same with people giving up their cars and going all in on I only drive I only use Waymo and Tesla Cyber Cab or maybe I just use one.
But Elon's certainly thinking in decades and not afraid to cut an entire business line that is still popular with a lot of people. I mean, I was just talking to somebody yesterday who was singing the praises of his Tesla Model X and how much he loves that and how he would never get a Y because the X is so much more premium. Everything about it is better. It costs a lot of money when he bought it. Still loves it. But, you know, Elon's thinking to the future.
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I know you do. Tesla also announced a $2 billion investment into XAI. Yeah. Didn't they they just did 20. Is this part of the 20? I wonder. I don't know.
But yeah, so there was a non-binding Tesla shareholder vote on authorizing an investment in XAI that failed. Although 1.06 billion votes were in favor versus 916 million against. Absent abstentions like abstentions like abstaining counted as no under Tesla bylaws leading to rejection.
So they had run this as a vote. It got rejected but Elon said we're doing it anyways. Doing it live.
Timeline reactions here. I don't know where you want to start but Take Kim has a good one if you want to start there with Microsoft. Wherever you want.
I wanted to pull up this video of Optimus learning it has to make up for SX sales after they were cancelled.
This one's This is such a crazy video. Taking off the VR headset and just smashing down. I love that.
This is really a Tesla Optimus, isn't it? At the same time, like the motion is remarkable. And the force with which the Optimus just smashes a water bottle open is crazy.
It's amazing. This thing is going to be super powerful. The insurance business that will be built around having a humanoid in your home is going to be remarkable. Remarkable. You're also going to need to secure these things. So let me tell you about CrowdStrike. Your business is AI. Their business is securing it. CrowdStrike secures AI and stops.
Okay guys, this was one of the standout moments of the earnings call for me. Elon and Tesla are transitioning their Fremont facility to make Optimus and they plan to scale that facility up to be able to make a million of these things a year on a relatively near-term time horizon. So very very significant.
He talked about how the robot would be able to basically learn on the job. It's going to be able to do a number of valuable tasks. And yeah, I think I mean the big question for me is like what happens?
That's the big question for me. Well, they have an ad support. You have the Tesla walking around your house and it sees you pull out some sort of random credit card and it's like are you not on ramp? Like what's going on here?
Or it sees you like having like would you like a smoothie from Athletic Greens? Yeah, exactly. Yeah.
But yeah, we'll see. So the question I have is at what point will humanoids actually be like ROI positive for consumers in the home or even just everyday businesses.
And I would just judge that based on like okay you're buying this thing up front. Maybe a business finances it maybe somebody finances it or they just pay cash. But is it valuable? Is it valuable enough to actually replace a human because you're competing with the Optimus is going to be competing with jobs that are maybe like 40 50 60k a year like somewhere in that range.
Yeah. And so that's a pretty high bar to clear. Totally. So we'll see.
Yeah. And the risk-reward calculation of okay, you have this thing, it has cameras and audio. It's on all the time. Is it safe? If it falls over, is it gonna crush my dog or hurt someone or smash something?
Even just like doing the dishes. We've seen some incredible demos of humanoid robots doing the dishes. But you have to imagine that every once in a while it's going to break a dish. If it's breaking dishes at 10 times the rate of humans, like it needs to be superhuman at not breaking dishes because if it smashes a wine glass while it's doing the dishes, that's And can I clean that up? Is it going to be able to do that on day one?
There will be, you know, a slow ramp of people feeling like okay it's good enough I'm getting a lot of value. Obviously there'll be a lot of novelty. There's already a lot of novelty like the Optimus is deployed in most of the Tesla showrooms.
Some breaking news from Reuters 21 minutes ago. Exclusive Musk's XAI and merger talks with XAI ahead of planned IPO. SpaceX and XAI. SpaceX and XAI ahead of planned IPO.
So this was something that we obviously were talking predicting a so no huge surprise here. This always felt like it made sense. I'll read through the article. I don't know how much context it actually has.
So they're in discussions ahead of a blockbuster IPO planned for later this year. The combination would bring Musk's rockets, Starlink satellites, and X social media platform and the Grok AI chatbot under one roof. Imagine, imagine owning X, the internet's dive bar and space in one ticker.
I mean, the companies launched like a couple years apart. I think like 2007 and 2005 or something like flashing back to 2007, 2010 being like, yeah, Twitter and that space company that hasn't successfully launched anything, they're going to be part of the same company one day. That is a wild future.
Yeah, I am curious to see if they end up at some point just spinning X the social platform out again. Like does it really need to live?
I think Musk holding companies just gets bigger and bigger and bigger and it all goes together into one because there's a lot of efficiencies there.
Shaan Puri from My First Million had a post about this how he thinks Elon should IPO his personal holding company. So you get stakes in everything that he has stakes in. And he was proposing it like a Berkshire type structure. But instead of Berkshire Hathaway, it would be like Musk Holdings or something or Musk's initials. I think a lot of people would be buyers of that.
But it'll be interesting to see the S-1's getting more complicated by the day as the investment banks prepare for the June IPO for SpaceX. Now, is June the day? But it's late in June. It's June 29th or 19th or something.
Yeah. Yeah. So, yeah, we'll see. I mean expected this to happen. I think it builds a, you know, again some people be frustrated with the narrative the data centers in space narrative but it's real.
We saw this sort of organized narrative shift around SpaceX being the data centers in space play. So that was the bridge like without that it didn't make any sense and then once if you can get behind okay data centers in space is maybe possible maybe you want some on land too then it starts to make sense that the merger fits a little bit more.
The other interesting data centers in space thing XAI SpaceX thing. I just I don't know I there is a fair odd history of telecom companies owning media companies. So Comcast, NBC, Universal, right? Comcast was the of that history.
Verizon. Yeah. Rhyming. And so like there is this world where you have the pipes and then you need something to push through the pipes and so you own a media company that pushes content through that pipe and it sort of rhymes, right?
It's like you have Starlink internet connections and then you need something to go over those internet connections. So X the social network pipes over those. It's if you squint it's not the craziest thing.
The other interesting thing that I want to do or we should talk to some of the folks who have done some of this data
Center and space analysis is how powerful are the Starlink satellites right now? Like they have some onboard compute. They don't have, you know, NVIDIA GPUs. They don't have whole racks in space, but they probably have some compute just to run the network. And I'm wondering, like in terms of energy draw, are they one order of magnitude off, two orders of magnitude off? Like how underpowered are the current Starlink satellites? Because that could be an indicator of, okay, well, they need to scale them up by this much. They need to add this capability. They need to do X, Y, or Z.
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