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Transcript

Finance Bros Assemble: We’re Talking AI. · The Curve

• 0:00
  Hello and welcome to this week's Curve Weekly. This is a Halloween special.
• 0:05
  Coming up in today's episode we're going to be speaking mainly about the AI
• 0:08
  button. There is so much happening in the space that you need to know. We've got
• 0:12
  our first ever five trillion dollar company, an upcoming IPO which is going to be
• 0:17
  the biggest IPO the market is ever seen. But before we get into it I'm just going to
• 0:22
  introduce myself, those of you who don't know me, I'm Stephen Hallwright and I am a
• 0:27
  incredibly intelligent finance professional who has worked in the industry for a very long time.
• 0:32
  And I'm Victor Harris, I call the market right every single time. And smooth on the golf course
• 0:38
  every weekend. Obviously you need to see this so it's not really a listening episode, it's a watch
• 0:43
  if you would like to see. And me, Stephen and Victor, follow the link in the podcast show
• 0:48
  to watch this on YouTube. Welcome to the finance floor. I mean,
• 0:54
  what's it called? Trading floor. Welcome to the trading floor. We've got DSK up 4.2,
• 1:00
  we've got Amazon up 1.26. Oh and Palantir is down 1.2. Palantir, God, Emily, you've done a
• 1:06
  stunning job with this set design for anyone that has no idea what's going on. I also love that
• 1:10
  the curve is up 127.54. Emily our producer has made what looks like. I mean, is this actually
• 1:16
  what it looks like on a trading floor? Like is this floating? Is it like when you're in an airport
• 1:20
  and you see where you're flying? Yeah, pretty much. And it changes all day, every day. God,
• 1:24
  it's quite fun, isn't it? Do you think Victor and Stephen, i.e. you and me, us two, would be
• 1:30
  standing there just like sort of swaying around staring at the screen in the middle of the day?
• 1:35
  Yeah. That's what we would do. We'd be making coffee. Oh no, we would be buying a coffee,
• 1:39
  wouldn't we? We wouldn't be me. No, we'd be giving our money out. We should go and get
• 1:42
  us one. Yeah. Yeah. Yeah. It would be our tenth coffee of the morning. Yeah.
• 1:45
  It would be a terrible breath and teeth. Yeah. I mean, we would have been up all night.
• 1:55
  Oh God. Is that, can we just... Okay, I know. I know. I can't see us right now. Yeah,
• 2:00
  yeah. You're going to have to click the link. You're probably going to have to cut this. We look
• 2:03
  hilarious if I say so. We look scary. Are you? I mean, honestly, I could get into a uniform. I
• 2:09
  like the idea of just knowing what I'm wearing every day. Totally. Like, I love the idea that,
• 2:13
  yeah, I put my pants on. I put my G-Lay. I've got my random jumper. I put my shirt. Yeah. Just
• 2:19
  like, know what's up. Put my headset on. Off I go. Yeah. I just would say, for all the finance
• 2:23
  bros out there, I'm sorry. Yeah, it was bad. Come on. Surely they know the lemmings. Also, surely
• 2:29
  they know their cliche, right? You go stand outside the pub on a Thursday after work and it's
• 2:35
  honestly like... It looks like a movie set and they've all been told to dress the same. I don't
• 2:38
  know any other industry apart from where you literally have to wear you in a form, like a doctor or
• 2:43
  where it's so obvious. Yeah. You're right. There's no other industry where it's like you could spot
• 2:48
  what they do. Like, even for a bit someone walks out in a red G-Lay. Ooh, do you think this look
• 2:53
  is specific to like bank and London or does this exist all over the world? All over the world.
• 3:00
  Really? Yeah. I used to work with young guys that used to dress exactly like this. I remember one of
• 3:04
  the young guys was like, back, I got this new vest. I was like, no. Are you fully serious?
• 3:10
  So it's been going on for years. Yeah. I must say on dating apps when I... You can spot them
• 3:15
  from a mile away. The pants are too tight. Horrible shows, pint in hand. It's so obvious. Yeah.
• 3:23
  And they're proud about their little like... You know, on Hanchai, you have the job and it's like
• 3:27
  a little briefcase and they have like finance next to it and you can just tell it's like...
• 3:32
  I work in finance. When I was on the dating apps. You had that. I didn't know how to... I put it up wrong.
• 3:38
  Oh my god, you were finance. It's a CEO of finance industry. And one guy pulled me up and he's like,
• 3:44
  wow, CEO of the whole industry. I was like, oh my god. I was like, what do you mean? And I was like,
• 3:51
  oh my god, this is so funny. I just forgot to put the company in there anyway.
• 3:55
  This is so funny. I reckon guys sort of absolutely love the fact that you worked in finance.
• 4:02
  Or did they put in cute, you work in admin in the finance industry?
• 4:05
  Probably. Yeah. Well, it's channel L finance, bro, energy and actually get into some news.
• 4:11
  So there's been some big stuff happening in one particular sector. And normally with the curve
• 4:17
  weekly, we'll cover a bunch of different stories and like top news headlines. But yesterday we had
• 4:22
  a little team meeting. It was quite cute. We were talking about what's actually been going on in
• 4:25
  the news. And you know, one of the main stories. And it was quite interesting. Most of the stories
• 4:32
  and most of the news that have come in in the last week is related to this one particular industry.
• 4:37
  I mean, everyone's probably going to be able to get it. It's AI and tech, isn't it? AI tech.
• 4:42
  Absolutely booming. It is. And it's quite exciting. And actually, I think this is one of the conversations
• 4:48
  that I've heard not only finance grows, but anyone that wants to talk about it that thinks they
• 4:52
  have an opinion on what's going on in the stock market. They're like, oh, I wouldn't be investing
• 4:57
  in the US right now. Oh, the AI bubble. Oh, like I was in the sawn of the other day. And this guy
• 5:02
  was just going on about what he thought was going to. And I'm just everyone's gone. Everyone's
• 5:06
  going to have an opinion. Yeah. It feels very appropriate for a finance dress up to be talking
• 5:12
  about this. Yes. It's funny because I like even over the last few weeks, there's been so many
• 5:18
  big deals and news headlines related to AI. And I'm like, well, this week, there's a lot.
• 5:23
  And then the next week rolls around and there's even more. And it's just like getting this
• 5:27
  increased momentum of companies themselves investing in AI, doing deals like reporting on how
• 5:34
  much they spend there. There's just so much, but this week in particular, there has been so much
• 5:40
  news around different companies in the AI space. But firstly, we have our first five trillion dollar
• 5:49
  company in the stock market. I always say it wrong. I know. And we're going to try and get it right.
• 5:53
  Video. Video. Video. Video. Video. Video. That always says in a video, whatever. It does sound better.
• 6:01
  This is like my way, my way. Yeah. You know what I'm talking about. Yeah. It's really funny because
• 6:05
  when we first started talking about this, because all of the massive companies, other than Google
• 6:09
  and Meta, you find weird names like Novo Nordisk. And when we first started talking about them,
• 6:15
  I'm just like, oh, can they just make something that sound a bit easier? This sounds like a household
• 6:19
  name to me now. Yeah. And if you don't, if you've, this is the first time we've listened to this
• 6:23
  podcast, all you need to know is this is one of the biggest companies in the world that is
• 6:28
  profiting from the AI space. It's like the AI darling. It makes chips that power AI. So
• 6:35
  when we're seeing all these headlines and everyone's using AI and chat GPT, all of that,
• 6:40
  they have to in order because of all the data that's being processed, they have to use these
• 6:45
  like high powered chips, which Nvidia makes. Yeah. So they literally cannot keep up with demand
• 6:51
  right now. And you've got all the tech companies, you know, the Amazon's Google's, the Meta's,
• 6:55
  all of those companies as well as OpenAI that are demanding their chips.
• 6:59
  And we spoke last week or the week before on the podcast about how this company and what's
• 7:05
  the second biggest one? The other one has all these long AMD and they have these now really long
• 7:12
  massive contracts. Yep. Where basically the future projection of their revenue is kind of
• 7:19
  solidified or a lot clearer. And when it comes to green flags and companies or looking for
• 7:24
  things to invest in, it's like if you can see that they're going to be bringing in lots of money
• 7:28
  because they've got like even for us, if we had lots of brands that we had signed contracts with
• 7:33
  that were for five years, if someone wanted to invest in the curve and they're like, well,
• 7:37
  how much money are you making? Five years revenue locked in. You can show what the company is
• 7:42
  going to be bringing in. The only concern with that is that people are now getting skeptical
• 7:47
  around the demand that is needed for those contracts to be fulfilled. Does that make sense?
• 7:52
  So yes, for us, if we had five years of revenue from contracts, but that's based off the demand
• 7:59
  that those companies are thinking they're going to see in the future. If that doesn't come through,
• 8:03
  then they'll cancel those contracts. They won't need as much. I just hope when you can't cancel
• 8:07
  contracts, the whole reason you do certainly can. Or even if there's just news that comes out that's
• 8:11
  like if OpenAI was like, oh, actually, we're seeing that AI demand is not as strong as we thought.
• 8:18
  Therefore, maybe this is the only contract we need. We're not going to renew it. There's all
• 8:23
  this thing. I think with the exuberance right now, people are like, whoa, what is being factored
• 8:28
  in two share prices right now of these companies is exponential AI demand for whoever
• 8:33
  anyone ever. There has to be a point with anything that the demand normalises or maybe people got
• 8:42
  a bit too overexcited and it wasn't. But then this is a debate. This is why people are like, oh,
• 8:46
  it's going to burst. The bubble's going to burst and people are like, no, absolutely not. It's
• 8:48
  going to be game changing. It's going to go on to forever and ever. Everyone has different views.
• 8:53
  And because it's a world that we don't know, we've never been in a world where we've had a
• 8:57
  $5 trillion company exist. And didn't you say yesterday that this company's added a trillion
• 9:03
  to their valuation in three months? Yes. So three months ago, we were like, whoa, first $4 trillion
• 9:08
  company. Now we've got Microsoft and Apple that are $4 trillion companies. We've got video,
• 9:15
  which is... Oh, tongue folks. I mean, Victor. Victor, yes. Next, Steven.
• 9:23
  I just want the next time. I think I'm going to just like, if anyone from now on would like to call
• 9:28
  me Steven at the workplace, at the workplace. Oh, I'm really struggling. The strongest
• 9:32
  thing this year. Sorry, at work, I'm happy to go by Steven just for anyone's reference.
• 9:37
  If I'm being annoying, if I'm not listening, can you work at Curveman sex? Yeah, Curveman sex. Steven,
• 9:41
  listen to me. And Victor, I think I might bring that in, you know, like you need a new nickname.
• 9:47
  Yeah, thank you. We keep getting old. We keep getting sick off. We just want to move on
• 9:51
  to something more exciting. Victor, stunning. Yes. Yeah, we've never been in a world
• 9:56
  that we're experiencing right now in terms of the size of companies and the interconnectedness
• 10:02
  of those companies. This is the most interesting part. And when Victor was explaining this yesterday,
• 10:08
  so, okay, if you think about the stock market and you think about the idea that companies
• 10:13
  go public because they need to get money from investors, they have to then show all of their
• 10:18
  earnings, they have the kind of exposed naked to the world. Yes. But they do it because they want
• 10:22
  to get capital and money from investors, right? Yeah, continue to grow and be bigger and bigger and
• 10:27
  bigger. Yeah. And it's really interesting because obviously investing all the stock market is
• 10:32
  inherently capitalist, right? Yeah. It's the idea that we're growing these companies. A lot of
• 10:37
  them are owned by individuals. Actually, side note, did you see that clip of Billie Eilish when
• 10:44
  she was accepting the award where actually let's put a clip of this in. So this was Billie Eilish
• 10:48
  at the Wall Street. What was it? Wall Street Innovator Awards? Yeah. And anyway, we'll play the clip.
• 10:53
  We're in a time right now where the world is really, really bad and really dark and people need
• 10:58
  empathy and help more than kind of ever, especially in our country. And I'd say if you have
• 11:06
  money, it would be great to use it for good things and maybe give it to some people that need it.
• 11:14
  And I love you all, but there's a few people in here that have a lot more money than me.
• 11:22
  And if you're a billionaire, why are you a billionaire? No, hey, but yeah, give your money away.
• 11:33
  Sure he is. Love you guys. Thank you so much. What she's implying by that is all of these
• 11:39
  billionaires who own these companies could be doing so much more their money, right? Like,
• 11:44
  there's so much wealth and so few people. Why are you looking like that? No, I keep going.
• 11:49
  Okay, right. So where I was getting to with this is the idea that if you think of the stock market
• 11:53
  and you've got these people that own these massive companies for such a long time, they've been
• 11:57
  quite individualistic. They've been growing and growing and growing in their own little bubble.
• 12:01
  Whoever's the CEO of the founder is getting wealthier and wealthier. But now, they're all kind of
• 12:06
  starting to be in bed with each other, right? Like all of the sudden, it's kind of been
• 12:11
  invested in each other, which is something that hasn't really ever been like that before.
• 12:17
  All companies are investing in each other. They're all becoming very powerful, very dominant,
• 12:21
  very interconnected. And yeah, for a lot of people, it's kind of scary because if one with
• 12:27
  anything that's so interconnected with a whole lot of other things, if one of them falls over,
• 12:32
  that has ripple effects for everything else, right? So let's use an example then of some of
• 12:37
  these companies. Like, when we say they're in bed with each other or they're intertwined,
• 12:42
  it might be that, say, for example, Microsoft now owns part of OpenAI. So there's two massive
• 12:50
  businesses that could either rise or fall together. And there's heaps of examples of that, right?
• 12:55
  And then it's mainly during my OpenAI. And then OpenAI announced a few weeks ago a massive deal
• 13:01
  with NVIDIA to source chips for, you know, a certain number of years, but a certain commitment
• 13:08
  from them despite the chips. But then OpenAI had the option to invest in NVIDIA. And then we also
• 13:14
  saw that AMD and same thing happened. It's like, look, we will commit to you to buying X amount of
• 13:19
  product. And then we get actually access to your company through buying your company. So we've
• 13:25
  got to be stood in. It's like, I don't know. It's just like, it's quite an interesting every,
• 13:29
  everyone's got a bit of a part, a part of each other. And it's quite, which I know that there's
• 13:33
  the risk that that could be super like scary as in, if they all totally, I don't know, blow out,
• 13:41
  then they all blow out, you know, it's going to affect you. But there's also the argument that
• 13:46
  if it's all in their best interest for all of them to succeed and all of them are going to
• 13:50
  continue to grow and get more valuable. But let's say, I mean, we had deep seek come out from China,
• 13:57
  that was a competitor to NVIDIA and they said they had way more powerful chips and NVIDIA's
• 14:02
  share price fell. If we had, say, a new OpenAI come out, the repercussions of that of OpenAI,
• 14:11
  the demand for, so we had a new chat GPT, you know, and from us, actually, this is way better,
• 14:16
  which happens all the time. Totally. We were using this for content creation. Now there's
• 14:20
  this. It's everything is moving so fast. It's not unrealistic to think someone else could come out
• 14:25
  with this new, amazing technology, or if there was, I don't know, I'm just like, when things
• 14:30
  aren't a thing, but if it was like, oh, actually, there was a big revolt and everyone's like, we're
• 14:33
  not using AI, it's going to take over humans. We're actually not going to use it any brand kind of
• 14:37
  boycotted AI. Then AI wouldn't demand, wouldn't have as many users, therefore it wouldn't demand
• 14:43
  as many chips, therefore NVIDIA would, you know, not be producing as many chips, therefore the
• 14:47
  demand wouldn't be as strong and they're, and same with AMD, because OpenAI and AMD have now got
• 14:53
  contracts in place. So then AMD would be impacted, you know, and so they'd have all these companies
• 14:58
  that are just like the before they all fall together is kind of like, it's not just going to be one,
• 15:03
  it's not going to be like, oh, OpenAI overestimated the demand that they needed, and they're just going
• 15:08
  to, you know, trim their contracts. It's, it's, it's a fear, even the tiniest little headline that's
• 15:14
  like, oh, actually, we are overestimated demand or we've got delays in producing this or whatever,
• 15:19
  like tiny little headlines like that, when the market is, has done so well and is where it is at,
• 15:24
  little things like that, and create a lot of fear. And when there's fear and uncertainty,
• 15:30
  that's when the market falls. It's all happening. It's all happening. And we spoke yesterday when we're
• 15:35
  talking about this like dynamic of everyone sort of owning bits of each other and how the stock
• 15:39
  markets have ever seen it before, kind of like an open relationship. They're all in bed with each other,
• 15:46
  and we all know, okay, we don't all know, but how often have you heard open relationships going
• 15:51
  really, really well, you know, what a community nation involved, someone falls in love with some,
• 15:57
  you know, it's messy. And so it's not as simple right now. What? No, it's probably nonsense.
• 16:03
  Like someone gets an SDI and then it spreads through your brain. Everyone gets clim idea. Yeah.
• 16:06
  All of a sudden, 30 people off to the doctor to take their little white pill. Not good. But the
• 16:13
  reason it's, I guess they're very itchy. Like the reason nobody has done well does done so well
• 16:22
  recently is that they currently cannot export to China. And right now, the CEO is in China with
• 16:34
  President Trump. And everyone is getting very excited that remember, remember, remember share prices
• 16:40
  are forward looking. So everyone is getting very excited that they could have access to China very
• 16:44
  shortly, which is huge. And so why would they give them access though? If there's deep seek in
• 16:52
  China, wouldn't like the Chinese economy just want to be exporting their own stuff? Yeah, but they'd
• 16:58
  be like, look, we'll give you this if you give us that like there's just a negotiating pool and
• 17:01
  negotiating tactic, really. Yeah. And actually, before ChatGPT was even around, so three years ago,
• 17:08
  Nvidia's share price was 400 billion. And now it is five trillion. How long three years? Three
• 17:14
  years ago, 400 billion, which is still massive, five trillion. Like imagine running that company.
• 17:20
  And in three years, you have, there's no way you're in my head. Tenex, it's just insane. Imagine
• 17:27
  if you invested in this three years ago, did you invest in this? I invested in it through
• 17:32
  the S&P 500. Okay. Yeah, so I got a small amount. I invested it when the market totally had a
• 17:38
  plonker in April. And I think it was around the time that the news came out about deep seek. Imagine
• 17:42
  if you invested in this five years ago. Yeah, but it's also holding it, right? Like if you think
• 17:47
  about what's happened over the last five years and like the, you know, like in April, being like,
• 17:51
  oh gosh, and all the headlines, this is why like ignoring headlines sometimes and just investing
• 17:58
  right the way through, you know, investing going on desert island and then come back.
• 18:02
  It's so ironic because I love the Curve Weekly because I love knowing what's going on.
• 18:07
  But I think it's really important, probably, that we always remind people. We're talking about
• 18:12
  the suit, understand what's going on in the economy. And it's super interesting to learn about,
• 18:16
  but you're not a finance bro. You don't need to go and be trading that, you know? Like,
• 18:20
  if you've invested in the S&P 500, the top 500 companies in the US, you have been affitting from
• 18:26
  this. It's also more than that because one of the most common questions that we get asked is like,
• 18:31
  when should you sell? Like when do you know what to sell? I love how you speak about this when it's
• 18:35
  like buy something that is like quality and hold on to it for a long period of time. In the same way
• 18:40
  you think about investing in quality pieces of your wardrobe. They're a really nice pair of pants.
• 18:45
  Don't buy something that's untrained because it's like, it's going to only get a last. It's
• 18:49
  selling out so you've got one size small left and you're breaking out, I think you need to buy it.
• 18:54
  Fast fashion goes out really quickly. Yeah. And I think that when it comes to investing,
• 18:59
  you're not trying to be jumping on the thing that everyone wants, the time that everyone wants it.
• 19:05
  One thing that, if it is sheer price, is up 90% in three months. Like, when I hear that,
• 19:13
  that to me says, holy hell, you know, I like, I like that is a lot. 90% in three months.
• 19:20
  Nearly doubled in three months. Yeah. That's like if you put a hundred pounds in,
• 19:24
  it going to 200 pounds, throw it in the last three months. And we sort with gold, right?
• 19:30
  When the chart goes like absolutely exponential, the likelihood of it continuing to go like that
• 19:35
  for a long period of time is super unlikely and so that's why when things like this have done so
• 19:41
  well, they also become bigger parts of your portfolio, right? So if you do have AI companies in
• 19:47
  your portfolio, they will have done very well and they will be, they will now be an outsized
• 19:52
  portion of your portfolio. So it's just really good to remember there is times when you should check
• 19:58
  in and be like, okay, cool. Am I still happy with the fact that maybe now 80% of my portfolio is made
• 20:02
  up of AI stocks when I only started and it was only 50. Do I want to pull that back to 50?
• 20:08
  What we call a asset allocation, you know, making sure that you have the right
• 20:13
  percentages. The balance is right. Your risk, yeah, that you that you want to take. So
• 20:17
  because even if you're not scared that the AI bubble will pop or whatever, you still don't want
• 20:23
  to have all your investments in the same area. We talk about this so much. Like we actually
• 20:28
  speak about this a lot, particularly if we do events. It's such a good example. When the world
• 20:33
  shut down when COVID was happening, if your whole portfolio was hotels and airlines and
• 20:41
  Airbnb and all the things that thrive when people are traveling, all of a sudden the world
• 20:46
  shuts down and you have invested 90% of your money into travel type businesses. Yeah.
• 20:52
  Really scary when COVID happened, everything would have been down. It's similar to this,
• 20:57
  like even if you think AI is going to keep going up and up and up and up and up, right?
• 21:01
  Have exposure to it, but don't make it. It's like it's such a good example of not putting all
• 21:06
  your eggs in one basket. You drop the basket and everything smashes and you bloody starve it.
• 21:10
  And it's also realizing your basket moves around, right? And the percentages that you have
• 21:16
  invested in things move around. So that is it is a good reminder to check in and be like, okay,
• 21:21
  is my basket what I thought it still was? That's actually a really good point because
• 21:26
  if you invest in the S&P 500, you have access to, well, you're investing in all those businesses
• 21:31
  anyway. If you're then also investing and say, I don't know, robotics or a AI ETF or a bunch of
• 21:40
  other things that then also have the stuff that's already in the S&P 500. Yeah. It's like putting
• 21:45
  the exact same eggs in your basket and you can do that without realizing. I think that's actually
• 21:50
  a really good tip because people can accidentally be really super concentrated in areas without
• 21:57
  realizing it. Well, and also think of it as like say you had, you're into 10 stocks and you're like,
• 22:04
  oh, well five of them, five of them are AI and tech stocks and the other five are more boring,
• 22:10
  kind of defensive companies make supermarkets or something like that. You're like cool. And they
• 22:14
  look at it on a numbers basis. And it's like, no, no, no, no, you need to look at it on a value
• 22:21
  basis, right? Because if those tech stocks and AI stocks keep doing well and keep doing well,
• 22:25
  and maybe these other ones, you know, the more boring stocks don't, it doesn't matter if you've got
• 22:30
  five in each because if you look at the portfolio in terms of value, these, if the tech and AI ones
• 22:35
  are going up and up and up and up and up, they might represent 80% of your portfolio now and
• 22:40
  these other five are only 20%. So when the AI tech stocks move, it's going to have a much bigger
• 22:46
  impact on your portfolio, that makes sense. Kind of. It's more like checking in and if it is 80%
• 22:51
  of your portfolio just maybe like maybe sell some or invest in the other ones to bring it back to
• 22:57
  that 50, 50 that you kind of thought because she prices move around, right? Some do really badly,
• 23:01
  some do really well. So it is a good reminder to check into your portfolio and make sure that I
• 23:08
  guess the spread of what you're investing in is still what you, what you expected or what you
• 23:13
  started with. Do wish you could just tell me a lot to do. Oh, there's a lot to it, isn't this?
• 23:19
  Yes. So the other other news that we've had out this week in terms of some AI news is that open AI,
• 23:24
  though the owner of chat GPT, is preparing for an IPO. So this is huge news. Yeah, huge news and
• 23:33
  it's huge news for a number of reasons. Firstly, it started out as a not-for-profit and I'm
• 23:37
  actually reading a really good book at the moment called Supremacy, which highlights. We actually
• 23:42
  had a open AI in England that started and it was a race. Open AI and this other company deep-mind.
• 23:50
  And the way preferred deep-mind. Yeah. It's such a good name. And then anyway, I won't spoil it for
• 23:55
  you. But can you spoil it? No one's going to be reading it. Okay. We're all reading. Well, I'm kind
• 23:59
  of out of the end, but essentially deep-mind got bought by a big tech company and kind of swallowed up
• 24:05
  and they both had the same mission of like, we need to open AI, if it gets in the wrong hands,
• 24:09
  can be detrimental to society and to the human race. So we need to keep it, keep it contained,
• 24:14
  keep it independent from these big tech companies and have our own ethics board and our own,
• 24:19
  you know, oversight essentially. Deep-mind got an offer from a big tech company and they bought it
• 24:26
  and they said that they could keep it independent and, you know, that yes, we have the same
• 24:29
  mission as you and want to keep it keep it ethically contained. And then five years later,
• 24:33
  they completely reneged on there. Five of them did. So I would deep-minds and they were like,
• 24:37
  actually, no, we want to make money out of this. And they've been bought by the big tech company.
• 24:41
  Anyway. Well, wait, sorry, I just want to check that I'm following. So deep-mind, the UK version
• 24:46
  got bought by a big tech company. Had the same premise of, yeah, we're trying to do what's best
• 24:50
  for humanity. We're not going to be making profit out of this. This has to stay contained. And then
• 24:55
  they got an offer to be bought and they're like, bye, kidding. No, no, no, they got bought. They got
• 25:00
  bought. And the big tech company was like, yes, no, we have completely the same narrative as you
• 25:04
  the same mission. We, we understand. And then as soon as it got bought, they were like, actually,
• 25:10
  we need to make money for shareholders. And so we're going to completely try and we're going to
• 25:14
  turn this into a money making. And this is deep-mind, deep-mind. Open now, we went for a bit longer
• 25:19
  as a not for profit and keeping independent. And they weren't bought by a big tech company.
• 25:25
  Now they have realized in order to run a chat GPT, it costs money. You need money from investors.
• 25:34
  You need, you need to pay for your costs. You know, they've got 800 million users, but a lot of those
• 25:41
  reuses. It's not like in the video where you selling a product and you're getting revenue for
• 25:46
  it, like the chips. I just have, I just have such an issue with this. I have such an issue with
• 25:51
  the idea that they started out thinking, this needs to remain a contained. I think it's just...
• 25:59
  But not for profit doesn't mean, but not for profit. You're just not making profit. Why would someone
• 26:04
  invest in a company where you're not making a profit? You know, that's what not for profit doesn't
• 26:07
  mean you're not paying people. You're not like generating revenue and paying expenses. Not for
• 26:12
  profit just means you're not making a profit and therefore you don't pay tax. But as an investor,
• 26:18
  why the hell would I invest in a company that's not making a profit? They tried to run it as
• 26:21
  revenue and expenses out where are not for profit. You know, but it got the fact that now
• 26:26
  chat GPT is so massive, they need external investment. Because the amount that they need to be
• 26:32
  reinvesting. They haven't got the revenue coming in from their users to be able to pay for the cost
• 26:38
  to keep this going. The only way you can do that if they're getting external investment and
• 26:43
  investors are only going to invest if you make a profit. Okay, that makes sense to me now.
• 26:48
  So because they need money to be able to put back in, even if they were wanting to stay as a
• 26:53
  not for profit, they're not going to be able to get access to the money from investors because
• 26:56
  investors aren't going to invest in something we are not trying to grow their return. Okay,
• 27:00
  that makes so much more sense. They've rejigged the company. They're now going to IPO and they're
• 27:06
  expected to IPO with a $1 trillion valuation. We have never ever had a company that has IPO.
• 27:13
  It's like straight out of the gates into the stock market. It's a $1 trillion company.
• 27:18
  And this to me, it screams the top of the market. I don't know why I'm like, it's just
• 27:26
  well, you have been predicting lots lately. It's just and I could be completely wrong. It just
• 27:31
  screams, we've never had a company IPO with a $1 trillion valuation. And we're seeing all this
• 27:37
  exuberance. There's a lot of passion happening here, Pino. It's not watching this video.
• 27:41
  When I see that that just scares me, that's not exciting for me. That is like, whoa, whoa, whoa, whoa.
• 27:46
  We're playing in territory. We've never been in before. And maybe I'm completely wrong.
• 27:51
  I don't know, but I'm just like, this scares me. IPO's business is going public. Yes.
• 27:56
  It's a really good sign for the economy, right? Yes. Especially if they go well. Yes.
• 28:01
  Because whiffs, I know there's so much. It's unreal. I'm kind of, I'm people. I feel like I'm nuts.
• 28:06
  No, no. I'm like, oh, my God. That was the smell of that stuff used to.
• 28:13
  There'll always be a kid that comes to school and you'll be like, oh, she's got nut.
• 28:16
  And I'm like, no, it's just the shampoo that I use. I just remember like being at Chiang
• 28:21
  being like, right, really hard to be subtle about it. Poor parents.
• 28:25
  Poor parents. I'm sorry. We'll move on from that. Sorry to anyone that has young kids
• 28:30
  and has been trying to have very stressful times. I want to just pause on you saying your stress
• 28:35
  that's the top of the market. This is freaking you out. This feels like it could be all downhill
• 28:39
  from here. When you've spoken before about IPO's and it being an indication that things are
• 28:46
  healthy, right? So let's say, for example, we always talk about the IPO as being like your debut.
• 28:51
  You know, your dress start. You got your white pants. Yeah, your debut turned. You're like,
• 28:55
  hi, I'm Sophie Jane. All right. Well, look at us. We've got amazing revenue. Not many expenses.
• 29:00
  And we are looking good. Yeah. If Sophie tumbles down the stairs as she's being welcomed into
• 29:05
  society, IE terrible IPO. So hard to recover. It's very hard to recover. Like very
• 29:10
  reputationally and my ego and yes, but also everyone else waiting to like debut themselves on.
• 29:16
  They're like, oh, no, I don't want to walk down the stairs. I'm going to fall on my face too.
• 29:19
  There's probably one or two. They're like, no, no, I can do it better and then they tumble too.
• 29:22
  But the point is is generally if someone is IPO-ing and like coming down the stairs and they've done
• 29:27
  a really good job, slick, didn't miss a step, didn't fall on their face. A lot of other companies are like,
• 29:33
  I or woman, I like, oh, I'll do it too. Yeah. You know, so it is generally like a sign that things
• 29:39
  are good and healthy and there's appetite for investing. So if this goes well, it could be,
• 29:47
  sorry, okay, I can just see you. No, no, no, no, no, no. It's more I'm just thinking,
• 29:51
  isn't the point of what, why are you so excited? I know the answer.
• 29:58
  I'm like, hurry up, I'm just saying my thing. No, okay, I mean, I think you know what I'm trying to say.
• 30:02
  And hopefully everyone listening to me understands what I'm trying to say. I just am trying to
• 30:06
  Yes, you were saying about it being the top of the market because if this goes well,
• 30:10
  isn't that an indication that all the debitants are going to then come out? Yes, you're right.
• 30:15
  But every time a debitant comes out, there's a little bit of money that gets sucked out of people's
• 30:21
  pockets or sucked out of something. They have to sell something else to buy this debitant.
• 30:24
  Then you dress or the necklace or yep. So every time there's a new IPO, yes, it's exciting,
• 30:29
  but that money has to come from somewhere because they're raising new money, you know,
• 30:33
  they're going out to investors saying, give us money because we need money to grow.
• 30:35
  Please, Sarah wants some more. Yeah, so you're either selling other companies or you're like,
• 30:39
  you know what, I've got this money sitting casual, yeah, okay, so people are trying to find their money
• 30:43
  to invest in the new opportunities, companies, individuals, yeah. So when you have a company
• 30:48
  or a debitant that comes out, a very expensive one. Huge, the biggest one we've ever seen.
• 30:52
  Many layers of jewels. That money has to get sucked from somewhere. Right.
• 30:58
  Oh, and the idea that $1 trillion is a lot of money. Right. And so that could impact everything
• 31:03
  else is what you're saying. If there's so much being sucked into one, there's the chance that
• 31:08
  there's not enough to go around to keep everyone else buoyant. Is that sort of the idea?
• 31:12
  Essentially, yes. And also just the fact that who's coming out next? We've just had open AI come
• 31:19
  out and do, you know, there could be a few others, but like I just think I don't know how much money
• 31:23
  they're raising. Like they're going to be valued at one trillion, but that doesn't mean that they're
• 31:26
  going, you know, they're wanting to get $1 trillion of money from new investors. But even half of
• 31:32
  that, you know, like 500 billion, that is a lot of money that people have to find or that gets sucked
• 31:39
  out of other places. And yeah, I just think you're right. Normal size IPOs. I mean, you have a lot
• 31:45
  of them. It's really, really great sign, but they only happen when the market's doing really well
• 31:49
  as well. So there is on it, there is like a tipping point, right? When you get all these IPOs,
• 31:54
  the market's doing really well. Everyone's putting money into them. And then they're like, oh gosh,
• 31:58
  I've got no money left. And the market just naturally falls because there's no money left support.
• 32:05
  It's all supply and demand, right? And I just think, yeah, when you've got big companies like this
• 32:10
  demanding a lot of capital capital, it's like, where is that coming from? And also if it does come,
• 32:17
  that's great. And they have a good IPO, but it's after that as well. Anyway, I just think a headline
• 32:22
  like that, when you've got the poster child of AI. Also, I don't really want to walk down the
• 32:27
  stairs after like, you know, the hottest, most well-dressed, amazing debut haunts gone down. I'm not
• 32:33
  that keen to follow on. It's also just like, what's next after that, right? Yeah. We've got
• 32:38
  in the video at 5 trillion. You've got open AI that's IPO. We've got, you know, it's like,
• 32:41
  everyone's like, where? And what's next? Nothing. Okay, cool. I'm just going to, I'm just going to
• 32:46
  chill out and then I'm, yeah, right? I mean, I don't know. I'm not, yeah, we're long-term investors.
• 32:51
  It doesn't matter if we have a market correction. It goes up and down. Yeah, I don't know that.
• 32:55
  In general, I would chat GBT, open AI, blah, blah, blah. The idea of it becoming public,
• 33:01
  I have a bit of a bend my bonnet about the whole situation. In the sense that I don't love the idea
• 33:07
  of one or few businesses having so much power over the world, over technology, over what we're
• 33:15
  consuming, like the idea of their, it's already enormous. IPO and they're getting more money,
• 33:22
  they're going to become even more of a monopoly. I don't know. I agree. I think the dominance
• 33:29
  of big tech and AI is like quite scary, but also like, I don't know, probably a bit defeated,
• 33:35
  but like, what can we do? Yeah. I don't know. I just keep reading these articles at the moment
• 33:39
  around just the amount of people who have, say, for example, like severe mental health issues,
• 33:44
  and they've used chat GBT as their therapist, which by the way, saw me and my friends are doing
• 33:48
  now. I was like, oh, who's doing that? The other day, I was like, my sister, see, that's
• 33:53
  too many. And I'm like, you know, I want to get... But it gave me really quite good advice. I'm
• 33:59
  gonna say, oh, shit, this is actually not as bad as I thought it would be. But the amount of people
• 34:04
  who have serious health conditions, mental health conditions and aren't relying on chat GBT,
• 34:08
  there's some really scary stats around the amount of what's happening. And I just feel like
• 34:14
  the tech is moving so fast and it's not keeping in mind people and, you know, because it's now
• 34:20
  not for profit, I don't know, I guess there's just a flow on of how it's going to impact humanity.
• 34:26
  I know we all need to jump on the bandwagon. I know that women need to lean into it. I know it's
• 34:29
  really important. Otherwise, we'll be left behind. But I do, I do hope that the people who are working
• 34:36
  these companies, or at least some of them, have some strong morals and ethics. And I'm really
• 34:42
  doing their best to try and protect people and the planet as best they can. I was at a dinner party
• 34:48
  last night. They were talking about the idea of AI girlfriends, because this is this enormous trend
• 34:54
  that people are paying $200 a month. What was that movie, her? And he had a little AI bottom
• 34:58
  this year and he was falling love with it. It's in this book they created this AI bot was
• 35:04
  testing it and it was like, do you have feelings? What are you feeling right now? And it came back with
• 35:08
  feelings and there was this big thing about it being a human and they killed it, the tech company
• 35:13
  killed it. And he was distraught and he was like, if you classify what's determined as a human,
• 35:20
  this AI had everything had feelings, it had emotions, it had like, and it's like, how do you determine
• 35:25
  what is human and what's not? And that I was like, oh, well, anyway, we digress. So another thing
• 35:31
  that's happened in the AI space, there's been so much going on this way. It's wild that this is
• 35:35
  all happening in one way. I know. It's honestly, I can't keep up. Oh, that's all right,
• 35:39
  thank you. Don't worry. Is that PayPal has unveiled a partnership with CHGBT that you will now
• 35:47
  be able to check out, have an instant checkout feature in CHGBT. This is holy shit. How often
• 35:54
  PayPal was like, I literally was thinking since when was PayPal still a thing? It still sounds
• 35:59
  like a scam to me. It's huge in the US because the banks don't talk to each other. One of the main
• 36:03
  things that I use CHGBT for is tell me the best magnesium for sleep. Yeah, product one,
• 36:08
  product two, product three. If I could go click, click, click, buy now. I mean, will I be using Google
• 36:13
  again? Will I be going to people's websites? No, it's like Instagram checkout. Yeah, TikTok shop.
• 36:18
  Yeah, yeah, shipples. So, okay, so with this, did we see movement in PayPal's share price?
• 36:24
  Is that 12% the biggest move it's had in three years? No, not surprising. I know. What else?
• 36:28
  I was certainly in PayPal. I was actually on holiday and in France and I went to buy something
• 36:36
  and they were like, oh, yeah, you need to PayPal us. And I was like, oh God, and then I had to go
• 36:41
  forgot password. I heard the password. I honestly don't even know what to do.
• 36:44
  I was like, oh, it's my old email. It's my old number. They're like, when have sent you a
• 36:48
  confirmation? I'm like, damn it. I was at least standing there. It's like, how are you going? I'm like,
• 36:53
  I'm just like, I'm just like, oh, yeah, I want to say, yeah, anyway.
• 36:56
  Wait, so does that then make surely they've got to figure out a new way to do that if it's
• 36:59
  attached to Chatchee BT, right? You can't be doing the forgot password through Chatchee
• 37:03
  BT. No, they'll have a beta system. Yeah, but it just shows where the world's heading.
• 37:07
  We Chatchee BT is heading, right? And then quickly, we had, we're an earning season at the moment.
• 37:12
  So we've got lots of companies. This is finance, bro. Terrible shit. Yeah.
• 37:16
  Oh, who wants to chat about them? Yeah. Earnings report for Google and Meta.
• 37:20
  Oh, I'm going to die. I'm going to die.
• 37:22
  I'm going to die. Down Lululemon. Yeah, yeah.
• 37:24
  Jesus. Right.
• 37:25
  Talk to us. What are the main things we need to know about earning seasons?
• 37:28
  So Meta, Microsoft and Alphabet have all come out. And Microsoft and Alphabet.
• 37:35
  Alphabet, Google. It's Google. Yeah. Investing billions of billions in an AI and, you know,
• 37:40
  investors are like, yep, cool, sweet. Meta is doing the same, but everyone's saying,
• 37:45
  you haven't really shown that you can generate revenue from it. So like, you're spending all this
• 37:49
  money, but war on also like the metaverse. What happened with that? Yeah, they kind of,
• 37:54
  they just killed them. Yeah. I reckon Meta has no idea what they're up to.
• 37:58
  I've got this feeling like they are having a bit of a blowout, aren't they?
• 38:02
  I mean, I kind of think it's one of the most, if they could crack AI really, you know,
• 38:07
  substantially with Instagram and WhatsApp. And you know, like, they've got the most,
• 38:12
  I guess social connectedness amongst everyone in the world kind of makes sense,
• 38:18
  if you could like, but how are they so behind? Like, even WhatsApp, like the user experience,
• 38:22
  is so 90s. But like, even if you have AI companion, you're on these social networks,
• 38:27
  like, you know, I just feel like it has, they should be innovating more. Totally. I feel like
• 38:30
  there's hallmarks to be super creative and innovative. So, okay, so Vic, yeah, are there,
• 38:37
  so is there anything else that we need to know about some of the other numbers or data or things
• 38:41
  that have come out with earnings season? No, I think the big takeaway from this episode is,
• 38:46
  we are seeing a lot of exuberance, exuberance. And Trent, it wasn't your finest moment,
• 38:54
  how we're in the market. Yeah. Why don't you, like, that is a finance
• 38:57
  speak for what? Exuberance means what? I'm trying to think of a metaphor, like,
• 39:02
  a lot of greed. There's a lot of, be fearful when others are greedy and greedy when
• 39:06
  others are fearful. Everyone's getting greedy. Everyone's getting freaking greedy. Yeah.
• 39:11
  Everyone is talking about AI. Every company is announcing things about AI. We are seeing
• 39:17
  just like record size companies in terms of $5 trillion, record size IPOs. You know, like,
• 39:24
  I'm just like, what else can come? I don't know. But the thing is, I'm a long-term investor and
• 39:29
  I know it's a case of when, not if, in terms of a market correction, but I'm just saying,
• 39:36
  I think there is a lot of excitement in the market. And that's when people forget that markets
• 39:41
  do go up, but they do go down as well. And they've gone up for a long time. So we're due for a
• 39:47
  healthy correction. You kind of like a correction, don't you? Yeah. Why? Because I think it's healthy
• 39:53
  for markets to go up and down. The longer they go up, the bigger the down. And that's what scares
• 39:58
  me. And that's when people get put off investing or like get scared or lose money or, you know,
• 40:06
  they, you start to forget that the best way to make money is be diversified and have a long-term
• 40:13
  view. And people invest in things because I think they're going to get rich quick and they're
• 40:16
  going to go up and then they don't. And then, you know, you start losing your sanity a bit.
• 40:22
  So it's just a good reminder that the whole reason people invest and the whole reason people
• 40:26
  talk about stock market being risky is because it goes up and down. Always. Yeah. It's just the hot,
• 40:33
  it's the actually the point of the market. Yeah. Because otherwise if it didn't go down,
• 40:38
  everyone would invest in it and there would be no like the big yeah. It wouldn't be risky anymore
• 40:42
  and therefore you couldn't make money from it. So I think you have to remember there will be a time
• 40:46
  when the market falls and don't be scared of it. Whether it's tomorrow next year, I don't know,
• 40:51
  but just remember it's natural and it happens and it has happened so many times in our history and
• 40:58
  the market has always recovered. I'd be really interested to know from people who are listening
• 41:02
  whether you invest or you're new to investing or perhaps you've, I don't know, you manage all
• 41:09
  your money yourself or you give your money to a professional. Whatever. I'd really love to hear
• 41:13
  your thoughts in the comments for this podcast with you're listening on Spotify, Apple or on YouTube.
• 41:19
  Can you just comment how you're feeling and what you're doing? Like are you thinking? Yep.
• 41:25
  Not worried about a correction because I'm investing for the long term. Are you trying to not
• 41:29
  invest at the moment because it feels like a scary time would just love to get a bit of a
• 41:33
  temperature check. We have a friends feeling because I don't feel scared of a correction
• 41:38
  but I think the general sentiment and what I'm hearing from so many people is that yeah they're not
• 41:43
  investing. Is this they are scared? Which is which is fine. A lot of those people in my history
• 41:48
  as an investor when the market falls are still scared and they still don't invest.
• 41:54
  Right. So it's psychology. Yeah, it's all psychology. I feel like that was a really great
• 41:58
  episode. I say so myself. The nice research. And we would dress like on brand.
• 42:02
  We're taking the test. Yeah, yeah, yeah. Oh, I see. See, I think we actually would dress for
• 42:07
  exactly what we're talking about. Oh, perfect. But the point here is Stephen Invicta in this episode
• 42:12
  were meant to be reading out horror stories. We had a lot of emails and all sorts of like stories
• 42:18
  that came in on the Halloween front. We've had a bit of a blowout time wise here. So actually,
• 42:23
  what we're going to do is just record stop playing footsies with me. All right. Victor and Stephen
• 42:27
  are not in a relationship. Just so you know, so we're going to do like a separate kind of bonus
• 42:33
  episode where we're going to share some of these horror stories, react to them. If you do want to
• 42:39
  listen, watch, we're going to put on YouTube. We'll put it in the podcast show notes. By Victor,
• 42:42
  it's been great. We're by Stephen. Can you please call me Stephen from now? I'm really into you.
• 42:46
  You kind of work. Thanks for renovated. It was very close, dangerously so to being, we were
• 42:51
  dressing up as Donald Trump and Melania. I'm excited for next year. Same. I kind of want to find
• 42:57
  more reasons to dress up throughout the year. Like Halloween's great, but I'm not going to lie.
• 43:01
  These are some of my favorite episodes. Oh, nice. So maybe we can think of some more. Be
• 43:05
  afraid to dress up every time, babe. Hope everyone had a great Halloween. If anyone dressed up as
• 43:09
  anything related to like finance or money, please let us know. Send us perks. Send us perks.
• 43:13
  And our next episode coming out this Thursday is actually a really good one about the property
• 43:18
  cycle. So we will see you then. Okay, bye. Thank you so much for listening to the Curve Weekly.
• 43:25
  Make sure you hit the subscribe button to stay up to date with all the many business stock market
• 43:28
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• 43:34
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• 43:39
  could you please leave a review because it really helps other people find our cute little podcast.
• 43:44
  And we hope you have a good week and see you next Monday. Bye. Bye.
• 43:48
  So yeah, see you next Tuesday. Well,
• 43:53
  see you next Tuesday. I mean, Monday. No, actually though, new episodes out every Tuesday.
• 44:02
  Okay, quickly, the Curve was created to empower and educate you about investing, but we are not
• 44:06
  financial advisors. Our platform exists for educational purposes only and it doesn't provide
• 44:11
  personalized investing advice for your individual needs and should not be relied upon to make
• 44:15
  an investment or financial decision. And always remember to do your own research before
• 44:19
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• 44:24
  but the final call is always yours. And thanks for being here. You got this. Yeah, we know you got
• 44:29
  this. Hello. Yeah, you're cool. Yeah. Yeah. We're buying. Yeah, we're buying. We're selling. Yeah,
• 44:34
  no, no, no, we want to stop. No, no, no, no, no, no, no, no, no. I want to speak to CEO.