Latest / In the Loop AI / This Week in AI: Tesla Ending Model S, Gemini in Google Chrome, Grok Imagine

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This Week in AI: Tesla Ending Model S, Gemini in Google Chrome, Grok Imagine · In the Loop AI

0:00
Ejaaz: Welcome back to This Week in AI. It's been a pretty big week for the robots taking over.
0:04
Ejaaz: Tesla are retiring two of their most iconic cars, the Model S and the Model
0:08
Ejaaz: X, to make room to scale out their new Optimus Gen 3 robot, which is targeting
0:14
Ejaaz: 1 million units this year. Very ambitious, let's see if they make it.
0:18
Ejaaz: Figure, another robotic startup, also launched a new humanoid robot,
0:21
Ejaaz: which did something that no other robot has done before.
0:24
Ejaaz: Clean the dishes, which sounds like a really simple task, but actually requires
0:28
Ejaaz: 61 very precise locomotive operations.
0:31
Ejaaz: But the best part is that it did it completely autonomously.
0:34
Ejaaz: And in final news, the Chinese and Google both released two AI models.
0:38
Ejaaz: One can convert video recordings into production-ready apps,
0:42
Ejaaz: and the other might just make the first major scientific discovery since we discovered DNA.
0:47
Ejaaz: Google also introduced their leading Gemini model to 3.8 billion people in the
0:53
Ejaaz: form of a personal AI agent in their browser. an exciting week. Let's get into it.
0:58
Josh: Let's start with the Tesla earnings report because that was the highlight of
1:01
Josh: the day for me, at least. I've been following these reports forever.
1:03
Josh: In fact, it's funny, six years ago, I was watching a video that popped up six
1:06
Josh: years ago this day talking about Tesla earnings.
1:09
Josh: They were a blowout quarter in terms of forward-looking guidance,
1:12
Josh: a little bit less so on the actual numbers. The stock's down for today,
1:16
Josh: but that's not the story.
1:17
Josh: The story is the forward-looking future of what this company looks like,
1:22
Josh: which is very much centered around autonomy and robots and manufacturing.
1:26
Josh: In fact, there's a world in which five years from now, you can't even really buy a Tesla.
1:31
Josh: And that's signified slightly and early from the Model S and X depreciation. But I think
1:35
Josh: You'll continue to see more of that as we go because Tesla is fully leaning into autonomy.
1:39
Josh: So much so, in fact, that they're doubling their capital expenditure this year.
1:43
Josh: I believe last year it was $8 billion.
1:46
Josh: This year they're going up to $20 billion in CapEx spend just to scale these
1:50
Josh: production lines for things like the CyberCav and for things like the Optimus humanoid robot.
1:56
Josh: Which is really exciting because I think this year, paired with the Helix News,
1:59
Josh: we're seeing a lot of humanoid robots, a lot of automation actually coming to the physical worlds.
2:04
Josh: Like entering meat space, we're going to be able to walk down a street and not
2:07
Josh: only have a self-driving car roll right by you, but also see a humanoid robot
2:12
Josh: maybe walking down the street or doing something actually useful this year.
2:15
Josh: And Tesla has a plan to scale these at a rate that no one else really is,
2:19
Josh: starting with a million units this year and then going to 10 million, 100 million.
2:23
Josh: And then they project up to a billion of these. The idea is that these will
2:28
Josh: be able to offload enough of the human capital workforce that it'll unlock significant
2:34
Josh: amounts of GDP for the actual country.
2:36
Josh: So this is a gigantic project that's getting underway.
2:38
Josh: And what we're seeing now is the early seeds being planted through these huge
2:42
Josh: capital expenditures happening across the globe at all of the gigafactories.
2:46
Ejaaz: This feels like a very prescient moment because Elon's clearly saying that Tesla
2:53
Ejaaz: in five years or 10 years is not going to be known to be a car company.
2:57
Ejaaz: It's going to be an autonomous robot company.
2:59
Ejaaz: And we've kind of seen the signs of that over the last year where Elon's kind
3:04
Ejaaz: of just spent all his time on full self-driving and improving that neural network
3:08
Ejaaz: and focusing on his kind of Cybertruck's autonomously working in SpaceX and
3:12
Ejaaz: then this new Optimus Gen 3 robot. that to me is like
3:17
Ejaaz: kind of like crazy switch, I guess, to still kind of like materialize in my head.
3:21
Ejaaz: And I don't think it's coincidental because this year was also,
3:25
Ejaaz: or rather 2025 was the first year that Tesla's annual revenue went down.
3:29
Ejaaz: They only put out 1.64 million cars.
3:31
Ejaaz: I think that's down like around 9% from the previous year.
3:34
Ejaaz: And the fact that he's shutting down two of his most early models,
3:37
Ejaaz: I think it was like back in 2012 and 2015 that he released both the S and the X.
3:42
Ejaaz: He's now going all in on humanoid robots. I feel like, Josh,
3:46
Ejaaz: that this is the same moment where Elon was like, no, FSD is going to be the
3:50
Ejaaz: biggest thing for Tesla cars.
3:51
Ejaaz: He's doing the same thing for robots now.
3:53
Ejaaz: So people might kind of take it as this is kind of crazy right now.
3:57
Ejaaz: This humanoid robot isn't really useful for me or can't automate a bunch of manual labor.
4:02
Ejaaz: But I think Elon sees something that we don't. Do you agree with this?
4:05
Ejaaz: Do you feel kind of like solemn that we're going from cars to robots now?
4:09
Ejaaz: Or has this always made sense to you?
4:10
Josh: Yeah, well, this has always made sense because they've telegraphed this years in advance.
4:14
Josh: Tesla famously has released these master plans, or Elon has released the master
4:17
Josh: plan, once every three to five years for the last 15 years.
4:22
Josh: And it just very clearly states exactly their plan and what they're going to do.
4:25
Josh: And going back and looking at the old content from me, the old content from
4:28
Josh: the master plans, it's very clear that this has always been the plan.
4:31
Josh: They're just accelerating the advent of sustainable transport.
4:33
Josh: And now they're kind of moving to a sustainable abundance through the Optimus
4:37
Josh: humanoid robot. But the idea is always just to move the world towards an autonomous future.
4:42
Josh: And cars were the gateway drug to doing that. It started with the Roadster.
4:46
Josh: The Roadster was the very high-priced model that wealthy people were able to
4:49
Josh: buy to fund the production and development of the Model S and the X,
4:52
Josh: which funded the production of the scale vehicles, which is the three and the Y,
4:56
Josh: which is funding the production of full self-driving, as well as serving as
5:00
Josh: the actual network in which they could distribute the software on.
5:03
Josh: So it makes sense to depreciate the S and X. I'd like to take a moment of silence
5:06
Josh: for these unbelievable cars that changed the world.
5:09
Josh: I mean, I would argue the Model S is one of the most.
5:12
Josh: One of the most important cars that was ever built and ever shipped because
5:16
Josh: it came out in 2012, just five years after the iPhone.
5:20
Josh: And it proved that electric cars were not only possible, but they can be great
5:24
Josh: and they can be better than gas vehicles across the board.
5:27
Josh: And not only that, but they could be capable of autonomous transport in a world
5:31
Josh: where all of those things were complete contradictions and believed to be impossible.
5:35
Josh: And the Model S did that. And it went on an amazing 15-year,
5:39
Josh: 13-year run where they sold almost a million of these vehicles.
5:42
Josh: It proved that it was possible. It funded the development of where we are today.
5:46
Josh: And they're just unbelievable vehicles.
5:47
Josh: A lot of people don't understand that the Model S and the X actually only account
5:50
Josh: for about 3% of Tesla's vehicle sales now. It's a very niche audience.
5:54
Josh: They're fairly expensive.
5:55
Josh: They're over-engineered to hell. They have the craziest features,
5:59
Josh: particularly the Model X. So it is very sad to see them go, but it is very much
6:03
Josh: expected and very much exciting in the sense that that production line starts
6:07
Josh: turning out humanoid robots this year.
6:10
Ejaaz: Well, it's also important to remember that robots, as it were,
6:14
Ejaaz: isn't just going to materialize as humanoid robots.
6:16
Ejaaz: It's also going to look like the cars themselves, right? You mentioned like
6:19
Ejaaz: they only account for 3%.
6:21
Ejaaz: The rest of the vehicles that he's going to be producing are mainly going to
6:25
Ejaaz: be targeted for just completely autonomous vehicles.
6:29
Josh: So they won't even have a steering wheel.
6:30
Ejaaz: They won't have a steering wheel. Like, it's a good point, right? Which is
6:33
Ejaaz: these vehicles are going to become thought of
6:36
Ejaaz: as less of a car where you sit in the front and
6:39
Ejaaz: steer something to kind of like a third space to kind
6:42
Ejaaz: of like a living room where you can be productive or enjoy
6:45
Ejaaz: and consume entertainment when you get from
6:48
Ejaaz: as you go from point a to point b and we're seeing this with his plans to roll
6:52
Ejaaz: out the robotaxi service so um you know at the end of last year he was all kind
6:57
Ejaaz: of like there were numerous sightings of him trying robotaxi um he's going to
7:01
Ejaaz: be rolling out or planning to roll out the robotaxi service to nine more cities this year,
7:06
Ejaaz: which is super exciting to see, nine cities in total.
7:10
Ejaaz: And I know that there are several reports at this point where it is good enough
7:14
Ejaaz: to drive much better with lower incidental damage than humans.
7:19
Ejaaz: I don't know if you saw this, Josh, but Lemonade Insurance, which is a very
7:23
Ejaaz: popular insurance startup here in the US, are offering drivers 50% off their
7:29
Ejaaz: driver's insurance if they enable FSD on their Tesla cars.
7:34
Ejaaz: And I kind of thought of this like fun idea where like it would be funny if
7:37
Ejaaz: Elon just kind of like packages his new FSD subscription that we spoke about
7:42
Ejaaz: in a previous episode last week with this kind of like insurance discount
7:47
Ejaaz: to kind of like increase FSD subscribers and stuff like that.
7:50
Ejaaz: I know those are ways that you can mix and match this. I'm excited to see more
7:53
Ejaaz: robots roll out this year.
7:55
Josh: Yeah, for the people who are listening, the new cities that you will be able
7:58
Josh: to get a robotaxi are going to be Austin, Dallas, Houston, Phoenix,
8:02
Josh: Miami, Orlando, Tampa, Las Vegas.
8:04
Josh: If you live in any of those places by the end of this quarter,
8:07
Josh: you will be able to try this for yourself, which I think is so cool.
8:10
Josh: And as it rolls out, I would encourage everyone to try.
8:12
Josh: Like I mentioned last week, I was in LA and using Waymos.
8:15
Josh: And it's unbelievable if you've never experienced it before to see and feel
8:18
Josh: what it's like to have a computer driving you around.
8:21
Josh: So far, they have 600,000 autonomous miles driven on the robo taxi network that
8:25
Josh: number is going to increase it is safer than a human driver as reflected with
8:29
Josh: the insurance tesla actually also offers their own insurance which incentivizes
8:32
Josh: people to drive safely so really cool updates from tesla across the board very
8:36
Josh: excited about that and this isn't the only news from the elon,
8:40
Josh: atmosphere i guess this week uh there's also some more
8:43
Josh: spacex news particularly as it relates to the ipo which
8:46
Josh: seems as if they're going to be raising even more money
8:49
Josh: than previously thought 50 billion dollars which is going to be i think the
8:55
Josh: largest amount of capital ever raised for an ipo and the largest market cap
8:59
Josh: of a company to ever go public all in one this is going to be huge they're targeting
9:03
Josh: june as the announcement and release date for this ipo to go public for people
9:08
Josh: to actually invest in SpaceX.
9:10
Josh: And SpaceX, to me, I mean, this is a huge opportunity. This is a huge company.
9:14
Josh: I'm so excited for this to get into the open market and see how the public reacts.
9:19
Ejaaz: It's also one of the few IPOs that are raising at such a large valuation that
9:23
Ejaaz: I think justifies the amount that they're raising.
9:26
Ejaaz: We're going to talk about OpenAI raising $100 billion later on this episode.
9:32
Ejaaz: But I would say $50 billion is probably too low in an IPO.
9:36
Ejaaz: And I know he's raising other rounds, but like he probably needs more money
9:38
Ejaaz: to achieve his mission of getting to Mars, the moon and setting up,
9:42
Ejaaz: you know, these interplanetary energy factories and stuff like that that he's spoken about on X.
9:48
Ejaaz: So this is really cool and exciting. I think 2026 is gonna be the year of big IPOs, Josh.
9:54
Ejaaz: We were talking about this before we started recording. We've got what, the Anthropic IPO.
9:57
Ejaaz: You've got OpenAI raising an $850 billion round now and they're gonna be presumably
10:03
Ejaaz: IPO-ing more than that. like 1.4 is what some more before trillion dollars is
10:07
Ejaaz: what some of the rumors are saying um yeah this is just crazy to see
10:11
Josh: Yeah we might get striped this year too a lot of ipos and part of the value
10:15
Josh: in which enabled starlink and spacex to go public is the starlink network is
10:20
Josh: the internet network and as they improve this network through starship launches
10:23
Josh: which allows them to put their new version 3 satellites into space,
10:27
Josh: And for reference, those version three satellite launches are 20 to 40 times
10:31
Josh: more effective than the current versions that they're pushing out right now with the version two.
10:36
Josh: So it's a huge increase in bandwidth. And that bandwidth is going to make its
10:39
Josh: way into cell phones in our pockets because the direct to cell network is growing very quickly.
10:43
Josh: If you're a user of T-Mobile, you can try this now. But Apple is now reportedly
10:47
Josh: planning to integrate Starlink directly into the iPhone 18 Pro,
10:51
Josh: which is coming later this year in September.
10:54
Josh: So this is really exciting news coming from Apple. Again, outsourcing the software
10:58
Josh: stack to someone else who is more capable and competent in doing this.
11:02
Josh: In this case, it's Starlink.
11:03
Josh: And it solves one of the huge pain points for the perfect mobile device,
11:07
Josh: where my hypothetical perfect mobile device has unlimited battery,
11:12
Josh: unlimited connectivity, no matter where you are.
11:15
Josh: And now this solves the connectivity problem, where there's nowhere you can
11:17
Josh: go where Starlink will not be. And that's a really exciting partnership that I'm looking forward to.
11:21
Ejaaz: In other robotics news, I saw one of the coolest, but maybe unsexy to some,
11:27
Ejaaz: demo of a humanoid robot.
11:29
Ejaaz: What you're watching on the screen right now, and if you're listening to this,
11:32
Ejaaz: I'll describe it to you, is a humanoid robot, which looks very much like a human,
11:36
Ejaaz: I have to say, he's just missing some clothes, unloading a dishwasher,
11:41
Ejaaz: walking across a full-sized kitchen,
11:44
Ejaaz: placing all these dishes and crockery into the cabinet.
11:47
Ejaaz: Very delicate, precise movements are needed for this, by the way,
11:49
Ejaaz: walking back and refilling the dishwasher with all the dirty dishes.
11:53
Ejaaz: These include wine glasses, by the way. Okay. So for all of you haters out there
11:56
Ejaaz: that are saying they're using plastic stuff, no, he's using delicate glasses as well.
12:00
Ejaaz: Now, what you're looking at is the new robot from FIGURE, a very hot robotic
12:05
Ejaaz: startup here in the US called Helix O2.
12:09
Ejaaz: And this humanoid robot is different from the other humanoid robots in a few different ways.
12:13
Ejaaz: Number one, it is the first robot to perform a four-minute fully autonomous task of this level.
12:20
Ejaaz: Just get that into your head. That may not sound very impressive right now,
12:24
Ejaaz: but I remember a time where AI model LLMs could only work autonomously for 10
12:28
Ejaaz: minutes at a time. And now they're doing weeks at a time.
12:31
Ejaaz: This is the same kind of moment that we see for robotics.
12:35
Ejaaz: And I think that Helix is kind of like nailing that.
12:38
Ejaaz: To emphasize, it is completely autonomous. There are no humans.
12:41
Ejaaz: There's no teleoperation. You know who dares leverage teleoperation? 1KX.
12:46
Ejaaz: Also Tesla Optimus, dare I say, although the new generation should be fully
12:50
Ejaaz: autonomous in some way, shape, or form.
12:52
Ejaaz: This is a really impressive feat because the technicalities and the mechanisms
12:57
Ejaaz: that you need to achieve this is nothing short of just insane.
13:01
Ejaaz: So 61 locomotive manipulations are required for this robot to do this,
13:06
Ejaaz: but that's not even the most impressive part.
13:08
Ejaaz: Typically, these robots are pre-programmed to execute on a set number of different moves.
13:15
Ejaaz: So those 61 moves I just mentioned, you need to hard code it.
13:18
Ejaaz: And when it faces a scenario, it'll then activate that movement.
13:22
Ejaaz: This is completely different.
13:23
Ejaaz: So what Felix did was they launched something called System Zero,
13:28
Ejaaz: I believe, which is their new neural net, which is only 10 million parameters.
13:32
Ejaaz: But it basically ingests what it sees around it through its palm senses,
13:37
Ejaaz: through its eyes, and reacts in real time.
13:39
Ejaaz: This is different from how the model previously used to work, which is
13:42
Ejaaz: Take in some kind of input, process it through its hard code,
13:46
Ejaaz: and then output an action.
13:47
Ejaaz: And hey, presto, the kind of like trophy win here is that it's fully autonomous,
13:53
Ejaaz: and it's the first humanoid to be able to do this.
13:56
Ejaaz: Now, to remove all that code and transform it into neural net is cool enough.
14:00
Ejaaz: But what I also like about it is that they have this new form of tactile sensors.
14:04
Ejaaz: And I think we spoke about something about this on our previous run,
14:07
Ejaaz: or maybe it was even last week's.
14:09
Ejaaz: But because of its palm sensors and its new tactile sensors,
14:13
Ejaaz: it's able to know when to apply pressure and when to be delicate.
14:17
Ejaaz: For example, lifting a wine glass and placing it into a cabinet.
14:19
Ejaaz: So I personally like took this kind of boring task and thought,
14:23
Ejaaz: huh, this is actually something that I would actually have in my home because
14:26
Ejaaz: I can trust it. Also, look at the speed that it's moving.
14:29
Ejaaz: It's definitely quicker than my sister that I've seen her loading the dishwasher at home at least.
14:33
Josh: Do you think this is ready to be in your home? Is this something you'd be interested in buying?
14:37
Ejaaz: Well, I would need it to do something more than just dishwasher stuff.
14:41
Ejaaz: But presumably, if it can do this, it can also fold my laundry,
14:44
Ejaaz: Josh, and load the laundry basket as well.
14:47
Ejaaz: So depending on what they're charging, if it's a subscription or if I have to
14:50
Ejaaz: buy it outright, would influence my decision, right? If I could have a live-in housekeeper,
14:55
Ejaaz: sounds pretty good i'm a pretty messy guy
14:57
Josh: Yeah when evaluating robots i think the things
14:59
Josh: that are most important to look at are first the hands the dexterity the
15:03
Josh: the sensors within the hands how capable the hands
15:06
Josh: are because that's by far the most complicated thing the second thing is
15:09
Josh: the intelligence how general purpose is it we we've seen this example over and
15:12
Josh: over again of loading a dishwasher or doing simple tasks like sorting clothes
15:17
Josh: how complex are those tasks able to get and how quickly are they able to roll
15:21
Josh: that out is the second thing and then the third is how quickly and how effectively
15:25
Josh: are they able to actually manufacture this at scale?
15:27
Josh: Are they going to be able to create enough of these at a price point that makes
15:31
Josh: enough sense with a feature set that makes enough sense to encourage people
15:36
Josh: like me and you to want to buy one?
15:37
Josh: It seems like there is a very long and challenging path for figure to get there.
15:42
Josh: I'm really looking forward to Tesla's Optimus 3, which is coming this quarter
15:46
Josh: and will be rolling out at scale this year. And I...
15:50
Josh: I'm hopeful that figure can keep up because competition is good.
15:53
Josh: And I hope they don't turn into like the Rivian of electric cars.
15:56
Josh: I want them to stay on the forefront.
15:57
Josh: And I hope Brett and the whole figure team continue to keep their foot on the gas.
16:01
Ejaaz: Yeah, I mean, I think this demo is cool, right? But it's pitched towards... It's like, it's cute.
16:05
Ejaaz: It's cute. But I think the real application, the reality is these robots aren't
16:11
Ejaaz: going to be in your homes first. They're going to be in factories.
16:13
Ejaaz: In fact, their Helix O1 robot has been working at BMW controlling their operating
16:19
Ejaaz: system or one of their manufacturing plants for, what is it now? Four months now?
16:24
Ejaaz: 24-7? There's like a live stream of this. Well, hopefully, maybe we can link
16:27
Ejaaz: to this and people can go watch it.
16:29
Ejaaz: But Brett keeps talking about it every single week.
16:32
Ejaaz: So I don't know. I'm bullish on it. I think Optimus is also going to be in factories
16:36
Ejaaz: first before people's homes.
16:38
Ejaaz: But we shall see.
16:40
Ejaaz: We have some big news from Google. Josh, you were showing me some pretty cool
16:44
Ejaaz: demos. What's going on here?
16:46
Josh: Yeah, big news. If you remember from a little while ago, we had the CEO of Perplexity
16:50
Josh: on the show, and he was talking about the new pivot to the AI browser.
16:53
Josh: Since then, OpenAI has released their own AI browser.
16:56
Josh: Claude has released a plugin for Chrome, but now Chrome, where everyone actually
17:01
Josh: uses their browsing, has rolled out their own...
17:05
Josh: Gemini agentic controller inside of the browser. And it's pretty incredible.
17:09
Josh: I mean, like you mentioned at the intro, 3.8 billion people on earth use the Chrome browser.
17:14
Josh: And now all those people have just been given a magical update overnight that
17:18
Josh: allows this agent in and allows it to actually control and do things on behalf
17:22
Josh: of the user within this browser.
17:24
Josh: So we're watching on screen a introduction demo video that shows some examples.
17:29
Josh: And I thought they were really amazing.
17:31
Josh: The first one that they did was with NanoBanana Pro, which is the image generating model.
17:36
Josh: And they were just looking at a home and they wanted to add furniture to it,
17:39
Josh: like looking at an empty apartment. And you could just ask NanoBanana to stage the apartment.
17:44
Josh: Yeah, here's the demo. Where it's empty, you could ask it to stage the apartment
17:47
Josh: and it shows you what it looks like with furniture on the fly as you're browsing.
17:50
Josh: The follow-up feature to this is they were looking for an apartment that accepted
17:56
Josh: dogs, that was in X proximity to this place, that had a whole list to parameters
18:00
Josh: that were pretty complicated that would have taken the average person a long time to do.
18:04
Josh: And they typed in that prompt and it actually clicked through the browser and
18:08
Josh: navigated through this for them.
18:10
Josh: Putting in all the filters and figuring out which results were best for them.
18:13
Josh: And I think this is such a great use case because it's just so prevalent in
18:17
Josh: what you do every day as a user of Chrome and as someone who uses a Chrome browser.
18:21
Josh: And I'm excited to see it integrated where people are, where you don't actually
18:24
Josh: need to download a separate piece of software, move everything over.
18:28
Josh: It's just meeting people where they are and building on top of this existing
18:31
Josh: knowledge base that Google has about you through your Gmail account.
18:34
Ejaaz: What I like about this is they're not over-promising, or they didn't over-promise
18:40
Ejaaz: Gemini 3 being pretty much wherever you are on the internet.
18:44
Ejaaz: Like, I've used Chrome browser for years now. I've used Gmail for longer.
18:49
Ejaaz: And the fact that, you know, these demos show kind of places that I visit every
18:54
Ejaaz: day, because like, let's face it, like most of my online life,
18:57
Ejaaz: or rather, most of my computer life doesn't live on my desktop, right?
19:00
Ejaaz: Which is my, which was separately my point around cloudbot i'm like it's not
19:03
Ejaaz: useful for me because i'm always on the internet but google is bringing gemini
19:07
Ejaaz: and ai cutting edge ai to me on the internet on the browser where i am every day
19:12
Ejaaz: I might not be someone that edits images all the time and says,
19:16
Ejaaz: hey, show me in this outfit, but I am someone that writes a lot of emails.
19:20
Ejaaz: I am someone that spends a lot of time in documents.
19:22
Ejaaz: And in some of these demos, Josh, it doesn't just get me to prompt it.
19:27
Ejaaz: It prompts me and says, hey, I see that you have updated some of these goals for the next month.
19:33
Ejaaz: Do you want me to email so-and-so on your behalf?
19:36
Ejaaz: I've generated you a prescript if you want me to do that for you.
19:39
Ejaaz: All I need to do is look over to it on my task panel on the right, and click send.
19:43
Ejaaz: And that's just like such a beautiful experience.
19:46
Ejaaz: It sounds, again, unsexy, but I think this is going to make people way,
19:50
Ejaaz: way more productive and most importantly, loyal to Google.
19:53
Ejaaz: We mentioned their major release of personal intelligence, which is basically
19:57
Ejaaz: a personal AI assistant that is prevalent across every single Google product
20:02
Ejaaz: that you use, not just on your browser, but on Google Maps, Android, wherever you are.
20:06
Ejaaz: This is it coming into reality just for Chrome. It's frigging awesome.
20:10
Josh: Yeah, really nice feature. It's just, it's, it's again, it's another muscle
20:14
Josh: that people are going to need to train as they get used to these new tools in
20:17
Josh: reaching for the agent in your browser versus trying to do it all yourself,
20:21
Josh: where I would encourage anyone as you're browsing and you're doing something,
20:24
Josh: you're trying to achieve a goal.
20:27
Josh: Try to click that Gemini button and see if it can achieve that goal for you.
20:30
Josh: And the process of doing that over and over kind of trains your brain to rely more on this.
20:35
Josh: And it just leads to a far better quality of life because it's better at doing
20:38
Josh: a lot of these tasks than we are.
20:40
Josh: The other thing that I thought was interesting to note is that they updated
20:43
Josh: their Gemini AI Pro plans, the Pro plan and the Ultra plan, which are either
20:48
Josh: $20 a month and $250 a month.
20:50
Josh: If you have those now, the big thing on this long list of things that they include
20:54
Josh: is Google Cloud Credits.
20:56
Josh: So now you can actually use, you could build your own environments for these AIs.
21:00
Josh: You could start querying more of their API to get more, I guess,
21:04
Josh: more just requests done, more intelligence.
21:06
Josh: They're including a lot more tools in this package for people who are interested
21:10
Josh: in just toying around with these products.
21:12
Josh: And for me, this is really exciting because I'm not running large scale,
21:16
Josh: products. I don't need a server that costs more than $10 a month.
21:18
Josh: And essentially for one membership of $20, I get all of these really cool perks.
21:22
Josh: You get access to the entire Google AI ecosystem.
21:25
Josh: And I just, I liked this pivot that they're moving towards kind of giving people
21:29
Josh: the tools to tinker at a very low price point at $20 a month.
21:33
Ejaaz: So in other Google news, they released what is probably the most impressive
21:38
Ejaaz: scientific AI breakthrough ever.
21:41
Ejaaz: And no one kind of noticed it because it got published in Nature,
21:44
Ejaaz: which is a scientific journal, but it was 100% open source and super cool.
21:48
Ejaaz: So this is, the best way to think about this is this is kind of like a DNA sequencer AI.
21:54
Ejaaz: Now, the reason why this is cool is 98% of our DNA is actually not that important.
22:02
Ejaaz: It doesn't actually lead to protein production.
22:04
Ejaaz: The reason why protein production is important is because it influences pretty
22:07
Ejaaz: much how your entire body, mind, and world works, how your perception is, right?
22:13
Ejaaz: The issue is we don't understand the 98% of that dark matter because it controls
22:18
Ejaaz: some types of genetic expressions.
22:21
Ejaaz: So for decades, like humans have basically just kind of like mapped out the
22:26
Ejaaz: genome themselves and then like just tried a bunch of different tests to figure
22:30
Ejaaz: out what proteins or what genes are expressed in A, B or C type of condition.
22:34
Ejaaz: Now there's an AI model that can not just sequence a couple hundred thousand
22:38
Ejaaz: of these base pairs for your DNA, but up to 1 million base pairs.
22:43
Ejaaz: Now there are four main base pairs in your DNA strand. We're taking it back
22:46
Ejaaz: to like, you know, fifth grade biology here.
22:49
Ejaaz: And if you connect them together in different types of combinations,
22:51
Ejaaz: you can result in different types of proteins, which kind of make up your genetic makeup.
22:55
Ejaaz: Now you have an AI model that can just sequence this entirely and predict what
23:01
Ejaaz: the expression is going to be. Now, the reason why this is super cool is you
23:05
Ejaaz: can apply this to so many different things.
23:06
Ejaaz: You could apply it to preventative medicine. You could apply it to personalized
23:09
Ejaaz: medicine to create personalized pharmaceuticals for yourself.
23:12
Ejaaz: Or you could recognize genetic disorders before it manifests,
23:17
Ejaaz: before it becomes an issue and kind of snip that baby out. So it is such a cool thing to see.
23:23
Ejaaz: It kind of harkens back to my biology degree where I'm just like,
23:26
Ejaaz: oh my God, I can't believe that they've produced a tool that could have saved
23:30
Ejaaz: me like months of work when I was doing that degree.
23:32
Ejaaz: But I just think it is super awesome. Josh, are you impressed by something like this?
23:36
Josh: Yeah, this to me is the coolest news of the week, actually, which is funny enough.
23:41
Josh: The biology stuff is so unbelievably impressive. And I think it's easy to overlook
23:46
Josh: it because it's kind of complicated and difficult to understand for those.
23:49
Josh: I mean, like myself, who just haven't spent much time in the world of biology.
23:53
Josh: But in the research and learning about this segment, I discovered that the DNA
23:58
Josh: sequence is 3 billion letters long.
24:00
Josh: It's this ginormous sequence of letters.
24:03
Josh: It essentially acts as an instruction manual for the
24:07
Josh: human body for the makeup it tells you everything that's right with you but
24:09
Josh: also everything that's wrong with you and previous ai models before this they
24:13
Josh: were like it was like reading a manual with either a magnifying glass where
24:16
Josh: you can see tiny details but only a few segments at a time versus binoculars
24:20
Josh: where you could see like a lot but it's kind of blurry this is able to do both
24:23
Josh: simultaneously and like you mentioned it can read one million letters at once
24:26
Josh: with perfect clarity so while it's not the three billion.
24:29
Josh: It is 1 million, which is a significant improvement because when doctors find
24:33
Josh: a weird genetic variant and they ask, is this variant causing a problem?
24:37
Josh: Alpha genome has beat the previous models on 25 out of 26 of these tests,
24:42
Josh: which means there's a lot of fewer, we don't know the answer,
24:45
Josh: answers for patients with rare diseases.
24:47
Josh: And it's able to kind of diagnose things that previously were not possible.
24:51
Josh: And as we see progress through this, there's going to be a lot of unbelievable
24:54
Josh: examples as it relates to like cancer and splicing these DNA sequences and improving things.
25:00
Josh: It's just, it's a huge quality of life improvement for the people who understand
25:04
Josh: it and for the people who stand to benefit from this, which is,
25:07
Josh: I mean, in a way, everyone we mentioned on a previous episode,
25:09
Josh: you can upload your DNA sequence to something like Claude and you could ask it questions.
25:14
Josh: This is that on steroids. This is going down to the letter and diagnosing what's
25:18
Josh: wrong and what's right based on a single variance in a 3 billion letter data
25:21
Josh: set. It's really amazing.
25:23
Ejaaz: For those of you who haven't spent time in many of the scientific journal world,
25:29
Ejaaz: there are tens of thousands to hundreds of thousands of scientific papers published every single year.
25:36
Ejaaz: But the common pattern across all of these is that some of these conclusions
25:40
Ejaaz: are simply inconclusive.
25:42
Ejaaz: They don't have enough data or they just don't know. They haven't got enough
25:45
Ejaaz: tools or technology to figure it out.
25:48
Ejaaz: Now, a tool like this, to your point, Josh, I don't think it's going to suddenly
25:54
Ejaaz: have a crazy discovery this year, but you're going to see the discovery in some
25:57
Ejaaz: of these papers that come out from the researchers that are using it.
26:00
Ejaaz: In fact, we're probably going to see Alpha Genome be quoted as a main author
26:03
Ejaaz: on some of the papers produced in 2026.
26:06
Ejaaz: There are already 3,000 researchers using this. I think 1 million API calls every single day.
26:12
Ejaaz: So it's really been crushing a bunch of research across 160 countries.
26:17
Ejaaz: So I am curious to see what this gets involved in and what discoveries it makes.
26:22
Ejaaz: To your point, maybe it's cancer or maybe it's something smaller,
26:24
Ejaaz: but one thing's for sure, there's going to be something major this year, would be my prediction.
26:28
Josh: Yeah, the velocity in progress of this has just been, it's unbelievable.
26:31
Josh: It's really exciting to see.
26:32
Josh: I'm looking forward to all the continued breakthroughs that scientists are now
26:35
Josh: able to use because this is just open weights, open source, freely available
26:38
Josh: for anyone who's involved in research to actually go and use for themselves.
26:41
Josh: There's another interesting breakthrough, or at least released this
26:45
Josh: week that's slightly less eccentric this
26:48
Josh: one's more practical and something you can use today which is Claude
26:51
Josh: releasing interactive tools within Claude
26:54
Josh: itself so if you are a user of Slack or
26:57
Josh: Figma or Asana or any of these programs you
27:00
Josh: actually never need to go to those websites ever again they will be integrated
27:04
Josh: into your Claude interface on your desktop for you to actually engage with through
27:08
Josh: the chat interface to do whatever you want them to do so the example we're seeing
27:11
Josh: on screen now is figma if you're a designer this is how you design things this
27:15
Josh: is how you create websites create renderings of things.
27:18
Josh: And built into Claude now is tooling control that allows you to type in a prompt
27:23
Josh: or even manually adjust things yourselves from within the interface in a way
27:27
Josh: that's smart, it understands the context, and it writes back to the main server.
27:31
Josh: So if you, like for example, we use Asana for production workflows,
27:34
Josh: for scheduling episodes.
27:35
Josh: I don't need to go to asana.com anymore. I just ask Claude, when do we need to publish this by?
27:40
Josh: Who is responsible for publishing this? And it has all the answers built in,
27:43
Josh: and it can write the changes to that. And this is on the back of the integrations
27:47
Josh: that they've recently added.
27:48
Josh: Things like iMessage, which I think is really cool.
27:52
Josh: Previously, or early in this week, we released an episode on CloudBot,
27:55
Josh: which is this whole desktop controller that allows you access to your whole
27:59
Josh: desktop, but it is a bit technical. It does cost a bit of money.
28:01
Josh: This is so easy. If you are a Mac user and you have Cloud downloaded on your laptop.
28:07
Josh: You can connect Claude to iMessage and then have it send messages on your behalf
28:12
Josh: or read messages on your behalf or integrate it into any of these other services.
28:16
Josh: And what they're doing is they're just creating, I think what OpenAI was trying
28:19
Josh: to do, which is this full stack place in which you can go for any of your needs.
28:23
Josh: It's just slowly embedding itself into more and more of your day-to-day workflow.
28:27
Ejaaz: To me, what this announcement says is it's confirmation that we are heading
28:33
Ejaaz: towards an AI operating system that is ephemeral.
28:37
Ejaaz: Now, we've mentioned this many times on the show before, but I believe in the
28:41
Ejaaz: future, you're not going to navigate to an app or a website or scroll.
28:44
Ejaaz: It's just going to appear ephemerally in front of you, auto-generated by tokens
28:49
Ejaaz: generated by an LLM or any kind of AI model that is multimodal, right?
28:54
Ejaaz: And the reason that description that you just gave just now,
28:57
Ejaaz: actually, Josh, is, you know, it all kind of converges into one synonymous experience
29:03
Ejaaz: where you could be on different devices or you could be on your browser or you could be on a chat bot.
29:09
Ejaaz: And somehow the same LLM or AI model follows you around and is there to be helpful
29:15
Ejaaz: and expressive in many different ways. This is Anthropic confirming it.
29:19
Ejaaz: OpenAI actually released this feature themselves in ChatGPT last year.
29:25
Ejaaz: Actually, I think it was mid last year. So that was super early with the exact same partners.
29:29
Ejaaz: That uptake didn't really take off. I'm curious whether like six months later,
29:33
Ejaaz: we now see a similar pattern with Anthropic or whether people enjoy it and find it more useful here.
29:39
Ejaaz: Another kind of subtle point that this is using underneath is something called
29:43
Ejaaz: MCP, Model Context Protocol, which is something that Um...
29:48
Ejaaz: Anthropic, I believe, found it. It's an open protocol that allows you to connect
29:51
Ejaaz: to a bunch of different apps.
29:53
Ejaaz: Now, the change here is that it's allowing the generative experiences to happen
29:57
Ejaaz: within the chatbot, which is a UX decision, which I think is really cool.
30:01
Ejaaz: Now, I think this is a very strategic move for Anthropic because they created
30:06
Ejaaz: the protocol themselves.
30:07
Ejaaz: So Google famously produced Android and open source the entire thing,
30:12
Ejaaz: or rather was like, hey, this is for everyone.
30:13
Ejaaz: But they ended up becoming the dominant company that controlled that.
30:16
Ejaaz: And now they manage like, you know, millions and millions and millions of devices.
30:20
Ejaaz: I think this is Anthropic's attempt to do the same thing. Now they're not planning
30:23
Ejaaz: to release a new device, but it is yet another step for them to own the entire
30:27
Ejaaz: operating stack for whatever AI becomes.
30:30
Josh: Yeah. You said, you said this good word. I actually looked it up because I don't
30:33
Josh: know what it means. Ephemeral.
30:34
Josh: You said ephemeral operating system, which is something that lasts for a very
30:38
Josh: short time is fleeting or transient, often describes things that are beautiful,
30:41
Josh: but temporary, like a moment of feeling.
30:42
Josh: So I guess the idea is that this is, it's dynamically generated,
30:46
Josh: right? Like it's kind of built on the fly.
30:48
Josh: It doesn't actually exist as a permanent fixture in our workspace,
30:53
Josh: which is super interesting. This is cool.
30:55
Josh: There is one use case that I particularly loved, which was the iMessage wrapped.
31:00
Josh: I think one of my favorite parts of the year is Spotify wrapped when we can
31:04
Josh: see all of the most played music.
31:06
Josh: Everyone talks about how they're listening age. It's very fun because it has
31:10
Josh: access to these more intimate personal data sets.
31:13
Josh: It can actually use that data to generate these fun things like iMessage Wrapped,
31:18
Josh: which is a code project that this woman did, which I thought was really fun.
31:21
Josh: It showed how many messages were sent throughout the year, who the top messages were with.
31:27
Josh: It showed heat graphs and charts of when you are most likely to send messages.
31:33
Ejaaz: Relationships over time.
31:33
Josh: Yeah, you could see relationships over time. When a relationship got hot,
31:37
Josh: you were texting a lot. When it faded away, it's this really fun, exciting thing.
31:42
Josh: Experiment. It shows grammar, who gets your best English, most formal versus
31:45
Josh: most casual, your writing style over time.
31:49
Josh: And you can really break it down because it has this deep understanding and
31:52
Josh: intelligence, but also because it has this connection to your personal intimate data set.
31:57
Josh: And I thought this was so much fun because it shows you even the heat chart
32:00
Josh: of when you are most likely to be sending messages. Oh, I like this.
32:03
Josh: Your dream dinner party.
32:03
Ejaaz: The dream dinner parties is good.
32:05
Josh: Very cool. Who's sitting at your ideas table? Who are your ride dies.
32:08
Josh: Who's the industry dinner?
32:10
Josh: It's a really fun example of a use case that I hope we see a lot more of.
32:14
Josh: And again, the hardest problem with these is just figuring out how to extract value from it
32:18
Josh: And whenever we get a cool example like this, it's awesome. It's like,
32:20
Josh: okay, here, it's open source of my GitHub.
32:22
Josh: You can go and copy it for yourself and go have fun. And this is a really awesome
32:26
Josh: use case that I see for Cloud in particular.
32:28
Ejaaz: As we're filming this episode, Josh, and we've given a bunch of tool demos and
32:32
Ejaaz: examples right now, I'm realizing that we have made so much progress over the
32:37
Ejaaz: last year when it was incredibly manual.
32:40
Ejaaz: And now it's much, much, much less manual. But in my opinion,
32:44
Ejaaz: it's still manual enough.
32:46
Ejaaz: Do you know what I mean? and i think there's going to be a dissection
32:49
Ejaaz: of audiences where you have the more kind of
32:52
Ejaaz: i guess you can call them semi-technical folk that will spin up
32:54
Ejaaz: a clawed bot or try out a new ai native thing
32:57
Ejaaz: and to your earlier point like you should be proactively trying to
33:00
Ejaaz: use these tools so you can kind of evolve your brain and thinking
33:03
Ejaaz: into using these tools that you're not caught off guard but i
33:06
Ejaaz: think eventually uh majority of people are just going
33:09
Ejaaz: to use some kind of package system like google is like the perfect placement
33:12
Ejaaz: for this right where it's like hey don't worry gemini is just going
33:14
Ejaaz: to come to wherever you are and we've got you we're just going to give you
33:17
Ejaaz: the features instead of you trying to figure out the features this is an example
33:20
Ejaaz: of someone figuring out the feature and i'm actually more of an advocate for
33:23
Ejaaz: people to go out and do that but yeah it just occurred to me that i think a
33:27
Ejaaz: lot of people are just going to kind of take the lazy option and just wait for
33:29
Ejaaz: that pre-packaging which isn't a bad thing because there's less security risk
33:32
Ejaaz: it's probably going to be cheaper at that point it's probably going to be a
33:35
Ejaaz: better user experience well
33:36
Josh: It's also like what is the actual delta between the time that
33:39
Josh: early adopters use it versus the time that the general public uses it
33:42
Josh: and it's becoming increasingly small it used to be months to years now it's
33:46
Josh: a matter of days i mean claude bot was exciting because it had access to your
33:50
Josh: iMessage and you could talk with it and now we have a connection and a really
33:54
Josh: cool use case that's built right into your claude desktop app without any of
33:57
Josh: the technical know-how or installation and that was a matter of days the compression
34:00
Josh: is happening very quickly.
34:01
Ejaaz: Yeah i i agree with you on the software front i
34:05
Ejaaz: maybe don't agree if I look at it from an investment angle.
34:09
Ejaaz: Because to your earlier point, you knew Tesla was going to be a robot company,
34:12
Ejaaz: a humanoid specific company six years ago with that video that you recorded, right?
34:16
Ejaaz: So it's crazy to see how like a lot of these timelines are like collapsing for
34:21
Ejaaz: some things, but in other things, they're not. Or maybe it's just lagging. I don't know.
34:25
Josh: I think people mostly understand the trajectory. The question is whether they
34:28
Josh: can deliver on that or not. And in the case of Tesla, they have actually delivered on it.
34:34
Josh: In don't have set timelines they don't have set delivery dates
34:37
Josh: it's kind of a fuzzy thing but everyone is generally working towards the same
34:40
Josh: goals so what we're seeing is just incremental progress some faster than others
34:43
Josh: um and xai right here is another example of incremental progress that perhaps
34:47
Josh: leaves a little bit to be desired here the uh the new grok imagine model ijaz
34:52
Josh: let's talk about this for a sec okay.
34:54
Ejaaz: I'm gonna be honest because i'm a massive elon bull that that is no secret on this show but
35:00
Ejaaz: And the video and image models from Grok, Grok Imagine specifically,
35:04
Ejaaz: have kind of been subpar.
35:06
Ejaaz: Like when I look at like what Mid Journey is putting out, when I look at like
35:11
Ejaaz: what VO3 is putting out, when I look at like what Runway is putting out,
35:14
Ejaaz: there's just a higher quality and definition that Grok just isn't giving me.
35:21
Ejaaz: And that wouldn't even matter because they are, again, like only a two and a half year old startup.
35:25
Ejaaz: But it's the fact that Elon keeps on shilling it like it's the next best
35:28
Ejaaz: thing and i'm like bro it's not right anyway the
35:31
Ejaaz: the news here is we have a new grok imagine
35:34
Ejaaz: api uh which is basically their latest um
35:37
Ejaaz: image or video model and as you can see it is
35:40
Ejaaz: actually quite impressive and i might be being a bit of a brat here because
35:43
Ejaaz: this is uh next level compared to like what we had last year and the cool part
35:48
Ejaaz: is it's cheaper it's quicker to generate um and it's just simply a better model
35:52
Ejaaz: that is available everywhere um whether this inspires me to use it isn't really the point.
35:58
Ejaaz: I'm sure there are people that are involved in video production that will find this way more useful.
36:03
Ejaaz: Well, actually, let me ask you, Josh, as someone that plays around with a lot
36:06
Ejaaz: of this stuff, is this a tool that you would use? Are you impressed by it?
36:08
Josh: No, they didn't need to release this. This didn't need to happen.
36:12
Josh: They could have just shelved this and kept going with Grok 4.2 and then working on Grok 5.
36:16
Josh: Had this been released a year ago, it would have been amazing. It's a great image
36:19
Josh: video generation model uh given today's standards
36:22
Josh: it's not and while it's an improvement for the xai team it is not an actual
36:26
Josh: improvement pushing the frontier of video or photos forward so while i look
36:30
Josh: forward to the next iteration of this as they work towards their game development
36:32
Josh: engine and building these graphics in real time this is kind of an incremental
36:36
Josh: progress update that really didn't need to come out i don't think many people
36:40
Josh: are going to be super excited about this.
36:41
Ejaaz: Well what if i framed it in a different way josh what if i told you that this
36:44
Ejaaz: was actually never meant for video production
36:47
Ejaaz: but rather game development. So one of our predictions at the end of last year
36:51
Ejaaz: was that XAI is going to release one of the best gaming AI models,
36:56
Ejaaz: which will allow for real-time game immersion and gameplay, which is kind of
36:59
Ejaaz: like some of the demos that we're seeing on this video right here.
37:02
Ejaaz: And I'm wondering whether that might be their angle. Maybe they're just not
37:05
Ejaaz: going for video production at all.
37:07
Josh: Yeah, and I suspect that's probably why Elon is abnormally excited about this,
37:11
Josh: because he understands the vision for this and he understands where
37:14
Josh: on the trajectory this incremental like data point falls
37:17
Josh: whereas we're seeing it at face value and being like
37:20
Josh: this isn't that impressive we've seen this before but gaming
37:23
Josh: is certainly where they want to go gaming and animation and graphics and
37:26
Josh: building real-time three-dimensional spaces which are going to compete with
37:29
Josh: google's genie the world building model so i'm looking forward to that war as
37:33
Josh: it comes along because logan kilpatrick from google is actually teasing genie
37:37
Josh: 3 this week which hopefully we'll be getting very very soon and we'll have a
37:41
Josh: real comparison of a true frontier your world-building model very soon.
37:45
Ejaaz: Mm-hmm. In other news, we put out an episode earlier this week.
37:51
Ejaaz: I actually think it's our last episode on this new Chinese model, Kimi K 2.5.
37:56
Ejaaz: Now, we're not going to get into it on this episode, but the TLDR is it is a very impressive model.
38:02
Ejaaz: It's 100% free, open source. You can download it, amend the model weights, and run it locally.
38:07
Ejaaz: But it might cost you a few very expensive bits of hardware to be able to do that.
38:11
Ejaaz: But you can access it for free on their website. and the coolest part about
38:14
Ejaaz: it is you can kind of like convert video recordings into live production ready
38:18
Ejaaz: apps but there was an update that we wanted to make based off of this.
38:23
Josh: Yeah so we actually said that it would be immensely difficult to run this locally
38:27
Josh: on a machine because it would have required a tremendous amount of compute and
38:31
Josh: the reality is is that someone actually got this running with far less than we thought.
38:34
Josh: You don't need a couple GB200s or H100s or any cutting-edge NVIDIA technology.
38:38
Josh: This person actually did it with two Macs on his desktop.
38:43
Josh: So he bought two M3 Ultra Mac Studios and strung them together,
38:47
Josh: which costs about $20,000 USD.
38:50
Josh: And he was able to generate 24 tokens per second using these two computers and
38:54
Josh: the new Kimi K 2.5 Pro model.
38:56
Josh: So I think that is a testament to how accessible a model this good is and essentially making it free.
39:03
Josh: So now, it's funny, tying it back to the Tesla autopilot example,
39:07
Josh: where you can buy a license currently for $8,000 and that gives you lifetime
39:12
Josh: free miles, or you can do a subscription for $20,000.
39:16
Josh: Now you can basically get a lifetime membership to pseudo AGI to one of the
39:21
Josh: highest level frontier AI models. And you could run that for free through infinity
39:26
Josh: at the cost of these two localized models.
39:28
Josh: And I think that's a really impressive and fun breakthrough where, I mean,
39:31
Josh: assumedly the server costs to run this would be significantly lower and you
39:35
Josh: could just run these open source models now that are very much at the frontier
39:38
Josh: for a very reasonable cost relative to what some people are paying to use like
39:43
Josh: an API like Opus 4.5 which is charging you $25 per million tokens.
39:48
Ejaaz: Yeah, I mean, the funniest part about this model release has got nothing to
39:53
Ejaaz: do with the model, but the fact that you can never rest easy because your competition
39:58
Ejaaz: is always cooking up something better.
40:00
Ejaaz: And literally within hours after recording that episode of Kimi K2,
40:04
Ejaaz: Google pretty much announced an identical copy or functionality where they can
40:09
Ejaaz: turn, they call it agentic vision,
40:11
Ejaaz: but they can turn any screen recording into a production ready application.
40:15
Ejaaz: Now, they don't state that specifically on here, but that's technically what it should be able to do.
40:20
Ejaaz: And it just is a testament to how quickly and almost synchronously these AI
40:26
Ejaaz: labs are working together.
40:27
Ejaaz: Now, in my opinion, it's more impressive for the Kimi K2.5 team,
40:32
Ejaaz: the Moonshot Labs team, because they have less infrastructure.
40:35
Ejaaz: Although someone made the point in our episode in the comments,
40:38
Ejaaz: Josh, I don't know if you saw this, that they have a much, much cheaper energy.
40:41
Ejaaz: So I don't know how that translates necessarily. Maybe they just run these servers
40:45
Ejaaz: for way, way longer and it just costs them less. So it kind of like matches out.
40:48
Ejaaz: But it's interesting that the open source teams and the centralized teams are
40:52
Ejaaz: kind of like moving at parity right now.
40:54
Ejaaz: It's cool that the open source teams have even caught up. But yeah,
40:57
Ejaaz: Google's come up with the same thing if you want to try it and use a Western AI lab product.
41:01
Josh: It's amazing how quick they were to respond. And also that comment is very correct.
41:07
Josh: Chinese electricity costs significantly less than the US electricity does because
41:10
Josh: they have so much more of it. So the cost per token, the cost to train these
41:15
Josh: models is significantly lower because of that cost per kilowatt as it relates
41:19
Josh: to just generating all of this energy.
41:22
Josh: Yeah, yeah. But really nice reply from the commenter, but also Google in a matter of seemingly days.
41:28
Josh: It feels like they had this ready to go and they were like, oh,
41:31
Josh: all right. Well, I guess we should probably just release this now because Kimmy did something similar.
41:35
Josh: And now here we are. Agentic vision for all.
41:38
Ejaaz: Well, if Moonshot AI, KimiK 2.5, is the model example of spending your resources widely,
41:46
Ejaaz: OpenAI probably needs to be on the opposite end of that spectrum with the breaking
41:51
Ejaaz: news that they are raising a $100 billion round,
41:56
Ejaaz: which is just gargantuan, to value them at around $730 billion.
42:01
Ejaaz: I've seen $850 as well.
42:04
Ejaaz: I can only imagine that they are raising this amount of money to blow it all
42:09
Ejaaz: on training various different models, not just one model, or to kind of build
42:15
Ejaaz: out a new social network that we saw on the timeline.
42:18
Ejaaz: Apparently, they're building that and their hardware device.
42:21
Ejaaz: And what else am I missing, Josh? We've got the Sora TikTok app competitor.
42:25
Ejaaz: It just seems like at this point, and I know this might be a negative take,
42:29
Ejaaz: they've been raising so much money and endlessly blowing it on myriad different
42:33
Ejaaz: things. so they're spreading themselves very thin.
42:35
Ejaaz: This doesn't signal confidence to me, actually. It actually signals that they
42:38
Ejaaz: are kind of being reckless at this point.
42:41
Josh: Yeah, it's probably helpful to look at past fundraising history to get a better
42:44
Josh: perspective of how much money this actually is in a way that feels almost existential.
42:49
Josh: There's so many vested interests in OpenAI succeeding.
42:53
Josh: If they don't, what does that look like for the rest of the industry?
42:56
Josh: That's an important question to just kind of sit on for a little bit.
42:59
Josh: But if you go back to the funding rounds, even April 2023, they were raising still in the millions.
43:04
Josh: They raised $300 million at a $27 billion valuation. Then in October 2024,
43:08
Josh: they raised 20 times that, $6.6 billion at $157 billion valuation.
43:14
Josh: And now they're raising eight times that at $40 billion at a $300 billion post-money valuation.
43:21
Josh: Now, this is interesting because Ejaz, earlier in the episode,
43:24
Josh: we mentioned SpaceX was looking to raise $50 billion at about a $1.5 trillion
43:30
Josh: valuation. So they're raising 20% more.
43:34
Josh: At 500% the market cap.
43:37
Josh: And we're starting to see like OpenAI is giving up a lot of equity here.
43:42
Josh: They're really giving a lot of vested and controlled interest to a lot of companies
43:45
Josh: that may not want that liability.
43:48
Josh: And I wonder if this is a strategy in where he's trying to, Sam and the OpenAI
43:52
Josh: team are just trying to get as many vested interests as possible in their success
43:56
Josh: in a way that they become too big to fail.
43:59
Josh: Where so many people have so much money tied up in this thing that they own
44:02
Josh: a lot of, that they are forced to give whatever it takes to make this work because
44:07
Josh: the downside effect impacts the entire industry in such a large way.
44:11
Josh: And I can't help but read these headlines and not think that.
44:14
Josh: I mean, this is just outrageous. They have a tremendous amount of debt.
44:17
Josh: They haven't made a single profit. They're trying all these things like ads.
44:21
Josh: They're trying to take revenue cuts.
44:22
Josh: They're trying social media things, seeing what sticks.
44:25
Josh: And it's giving it's giving desperate vibes.
44:27
Ejaaz: Yeah i mean i have a simple take
44:30
Ejaaz: which is uh they are on track to make and
44:34
Ejaaz: also burn 20 billion dollars of capex
44:37
Ejaaz: this year i think they need someone to foot the bill uh
44:40
Ejaaz: to also spin up a bunch of the compute data centers 1.4 trillion dollars worth
44:44
Ejaaz: um over the next three years and i think they're panicking that they didn't
44:49
Ejaaz: spend enough time and resources on building out a better coding model to compete
44:53
Ejaaz: with anthropic which is kind of taking over all of enterprise and eating out
44:56
Ejaaz: their market share right now.
44:58
Ejaaz: And Neil's is spending it on other stuff like social media apps and stuff like that.
45:02
Ejaaz: Uh, my take is, listen, I hope they raise the round. Good for them.
45:05
Ejaaz: Uh, but I don't trust Sam and the team to spend it wisely for now.
45:10
Ejaaz: And that might be super bearish take.
45:12
Ejaaz: I'm willing to be proven wrong, but that's just where my head's at.
45:16
Josh: Well, I feel like we have to root for them because we have no choice.
45:18
Josh: If OpenAI goes down, so does everything with it. So we're rooting for you, Sam and the OpenAI team.
45:24
Josh: I hope everything works. I hope this money goes to good use.
45:27
Josh: And I think that probably wraps up our roundup for this week. of all the top news in AI.
45:32
Josh: As you enter the weekend, you can now feel properly satiated that you are fully
45:36
Josh: up to date and aware of all the hottest news that you needed to this week.
45:40
Josh: We released a few pretty great episodes. They're doing really well on Kimmy
45:43
Josh: K2 and Claudebot. So if you haven't had a chance to go listen to those,
45:46
Josh: please go and check them out.
45:48
Josh: The ask for you perhaps this week is to try out the Gemini Chrome extension
45:53
Josh: situation and use it to subscribe to our podcast.
45:56
Josh: That's like a fun little demo. You can say, hey, subscribe to my favorite new
45:59
Josh: AI in Frontier Technology podcast, and it will actually go and click the button for you.
46:03
Josh: And then if you go on Claude and you connect your iMessage, you could ask it,
46:07
Josh: send the Limitless podcast to 10 of my best friends and figure out which are
46:11
Josh: my 10 best friends who would be most interested and share the link with them.
46:14
Josh: And I think these are really great use cases that you can try. And then get it to spin.
46:17
Ejaaz: Up a number of other Google accounts and do the exact same thing,
46:20
Ejaaz: right, Josh? Let's just create an entire platform.
46:23
Josh: Exactly. But I mean, this is a bit of a longer episode. So if you made it this
46:26
Josh: long, thank you so much. These are the real ones that are still here at the end.
46:28
Josh: Thank you for listening. We will be back again next week with plenty of new
46:31
Josh: episodes, lots of new news to cover, and a lot of exciting topics that we will
46:35
Josh: keep on keeping you up to date with. So thank you for watching,
46:38
Josh: and we'll see you guys next week.
46:40
Ejaaz: See you guys.