Latest / Simply Bitcoin / OpenAI Wants BAILOUT | Could THIS Collapse Print Bitcoin to $1,000,000?! | Simply Originals

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OpenAI Wants BAILOUT | Could THIS Collapse Print Bitcoin to $1,000,000?! | Simply Originals · Simply Bitcoin

• 0:00
  Well, yesterday we asked if the AI bubble popped, and today
• 0:04
  they're literally begging the government for a bailout.
• 0:12
  I mean, you can't make this crap up.
• 0:14
  I know what you're thinking, Rustin.
• 0:16
  How did you know? Well, I'll tell you how I knew.
• 0:19
  Roll it. A Ponzi scheme is playing out in
• 0:22
  the AI space right now. Check this out.
• 0:25
  On the 25th of September, Core Weave signs a $6.3 billion deal
• 0:28
  with Open AI, bringing their total contract together to $22.3
• 0:33
  billion since March. Follow me here.
• 0:35
  A week before Core Weave signs a $6.3 billion deal with NVIDIA,
• 0:40
  who says that they will buy up any unused compute space that
• 0:43
  they don't sell, which sent the stock booming.
• 0:45
  But you dig a little deeper and you understand that NVIDIA owns
• 0:48
  a 7% or more stake in both Open AI and Cor Weave.
• 0:53
  In fact, NVIDIA invested into Cor Weave back in March of 2023.
• 0:57
  And as far as Open AI, NVIDIA is investing $100 billion into Open
• 1:01
  AI. Who is required to buy their
• 1:03
  chips. So wait, NVIDIA gives money to
• 1:05
  Open AI? Who gives money to Cor Weave?
• 1:07
  Who gives money back to Open AI? Who gives money back to NVIDIA?
• 1:10
  Who gives money to Cor Weave? Who gives money to NVIDIA?
• 1:13
  Smells like a Ponzi scheme to me.
• 1:15
  Yeah, that's right. You see that?
• 1:16
  That's my quant. Your what?
• 1:18
  My quantitative. And I'll take my quant over
• 1:22
  yours and the Octagon any day. But here's the truth.
• 1:25
  The Big Short Volume 2 is in production right now, and this
• 1:30
  time the bailout comes with AI buzzwords and Silicon Valley
• 1:34
  tears. There's a storm coming, and it
• 1:36
  could be the catalyst for one of the craziest Bitcoin bull runs
• 1:40
  in history. Look, the way this works is
• 1:47
  we're going to tell you it's totally hopeless to compete with
• 1:50
  us on training foundation models.
• 1:51
  You shouldn't try and it's your. Job to like.
• 1:53
  Try anyway. And I believe both of.
• 1:56
  Those things. I.
• 1:59
  Think it is pretty hopeless but. Yeah, so last year he's telling
• 2:04
  everyone it's hopeless to compete, and now he's hat in
• 2:08
  hand asking Uncle Sam for a backstop.
• 2:10
  How about that for a financial performance art?
• 2:14
  I don't know, But once a company starts asking for subsidies or
• 2:17
  loans from the government, it might be a sign that they're
• 2:21
  done. Stick a fork in it.
• 2:23
  The AI bubble is a poppin, and it's going to take a few
• 2:27
  trillion dollars of too big to fail with it.
• 2:30
  This is the new Wall Street play book.
• 2:32
  Get so big you can threaten the financial system if you fail,
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  then hold the government hostage for bailouts and perks.
• 2:39
  We saw it in 2008. Now it's happening with AI.
• 2:43
  Open AI at our core are the model company that needs always
• 2:49
  to be the state-of-the-art. That's what we've done time and
• 2:52
  time again. GPT 5 is no exception.
• 2:54
  But even in areas like open source, we are attempting to put
• 2:57
  the state-of-the-art model always out into the world.
• 3:01
  And in order to do that, we always want to be on the
• 3:03
  frontier chip. So the question is, how long
• 3:05
  does the chip remain on the frontier?
• 3:07
  Is it three years, four years, five years or even longer?
• 3:10
  Now in a world where we have no compute or compute constrained,
• 3:14
  we are absolutely using chips that have like a 100 equivalents
• 3:20
  that have been around like maybe 6-7 years at this point in time.
• 3:24
  If that's the case, financing chips gets a lot easier.
• 3:27
  If the timeline on the chip stays short, that gets harder.
• 3:31
  And so this is where we're looking for an ecosystem of
• 3:34
  banks, private equity, maybe even governmental, the ways
• 3:41
  governments can come to bear meaning like a federal subsidy
• 3:44
  or something. Meaning like just first of all,
• 3:47
  the, the backstop, the guarantee that allows the financing to
• 3:50
  happen. That can really drop the, the
• 3:53
  cost of the financing, but also increase the, the loan to value.
• 3:57
  So the amount of debt that you can take on top of an equity
• 4:01
  portion for some general backstop for chip investment.
• 4:04
  Exactly. And I think we're seeing that.
• 4:06
  I think the US government in particular has been incredibly
• 4:09
  forward leaning, has really understood that AI has is almost
• 4:15
  a national strategic asset and that we really need to be
• 4:19
  thoughtful when we think about competitive competition with,
• 4:21
  for example, China. Are we doing all the right
• 4:24
  things to grow our AI ecosystem as fast as possible?
• 4:29
  Are you talking to the White House about how to further
• 4:31
  formalize that kind of backstop? We're always being brought in by
• 4:35
  the White House to give our point of view as an expert on
• 4:38
  what's happening in the sector, for sure.
• 4:41
  Should we? Is there something in the works
• 4:43
  that's tangent? Nothing.
• 4:44
  No, no. I love you, Sarah, but nothing
• 4:46
  to announce, nothing that's going on right now.
• 4:49
  If you wanted to, we're here to listen.
• 4:51
  She literally said it out loud. They want federal loan
• 4:54
  guarantees for AI data centers. You can't make it up.
• 4:58
  Well, it turns out this revolutionary industry can't
• 5:01
  survive without government credit.
• 5:03
  It's basically the AI utility company.
• 5:06
  Now Meta is hiding 30 billion in AI debt off its balance sheet
• 5:11
  using special purpose vehicles. Remember Enron?
• 5:15
  Same playbook, except this time it's in NVIDIA chips instead of
• 5:19
  oil contracts. UBS says AI debt is building at
• 5:23
  $100 billion per quarter. That's a little bit of a raised
• 5:26
  eyebrows moment for anyone who remembers credit cycles.
• 5:30
  This is 2008 style financial engineering repackaged for AI.
• 5:35
  Back then we had subprime mortgages.
• 5:37
  Now it's subprime GPU's, metas, $30 billion SPV, Musk's $20
• 5:43
  billion lease, Google backstopping.
• 5:46
  It's a literal circle jerk of debt disguised as innovation.
• 5:51
  The retail people are all in so, but in fairness.
• 5:55
  But that's what I was asking about in terms of the Mis,
• 5:58
  because there is a misunderstanding.
• 5:59
  Clearly, you know, you look at the analysts, most analysts, you
• 6:03
  know, think that this stock is overpriced.
• 6:05
  You have people like Michael Bury out there shorting it.
• 6:07
  Everybody who's shorted the stock thus far has been on the
• 6:09
  losing end of it. And I'm trying to understand
• 6:11
  just from if you look at sort of the growth trajectory, the
• 6:15
  sales, how much of the sales frankly, I think actually even
• 6:17
  coming there was a huge part coming from even existing
• 6:20
  customers. That's what it looked like right
• 6:23
  before the music stopped for Lehman Brothers in 2008.
• 6:27
  As far as I can tell, the two companies he's shorting are the
• 6:30
  ones making all the money, which is super weird.
• 6:32
  Like the idea that chips and ontology is what you want to
• 6:35
  short is batshit crazy. But leaving that aside, there's
• 6:40
  dudes out here talking about unfair advantage for American
• 6:43
  workers while insiders dump stock faster than you can say
• 6:48
  AIETF rebalancing and they're shocked the markets not more
• 6:52
  exuberant. Bro you're selling the top.
• 6:54
  This is exactly how Enron and Lehman sounded before implosion.
• 6:58
  Attack the shorts, praise yourself and ignore reality.
• 7:02
  Here we go. Open AI lost 13.5 billion on 4.3
• 7:07
  billion in revenue first half of 2025.
• 7:11
  Again, that's not a business model, that's a performance art.
• 7:15
  NVIDIA invests 100 billion in Open AI, so Open AI can spend
• 7:19
  100 billion on NVIDIA GPU's. If I give your lemonade stand
• 7:23
  $10.00 so you can buy my $10.00 of lemons.
• 7:27
  We can't pretend the economy grew by 20 bucks, but that's
• 7:31
  exactly how they're doing it. Data center spending is now
• 7:34
  driving USGDP growth not because AI creates value, but because it
• 7:39
  burns capital faster than a GPU fan spins.
• 7:42
  This is what bubble economics looks like.
• 7:44
  Spending creates growth without returns.
• 7:48
  Even Deutsche Bank just filed the short AI stocks to hedge
• 7:51
  data center risk. When the banks that got bailed
• 7:54
  out start hedging the next bubble, it's a sign it might be
• 7:57
  over. And man, does history rhyme or
• 8:00
  what? So much, you may even get tired
• 8:03
  of winning and you'll say please, please, it's too much
• 8:07
  winning. We can't take it anymore, Mr.
• 8:10
  President. It's too much.
• 8:12
  And I'll say, no, it isn't. We have to keep winning.
• 8:15
  We have to win more. We're going to win more.
• 8:18
  Everyone feels it. Even Jensen Huang says China is
• 8:21
  going to win the AI race. Translation.
• 8:24
  Buy more chips before my earnings implode.
• 8:28
  This is how you know the cycles ending.
• 8:30
  And guess what happened? Every time a bubble pops in
• 8:32
  America, they print. It's time to bring it home
• 8:35
  today. But before we do, look at our
• 8:38
  likes 3 or 4 times. Maybe I.
• 8:39
  Pump those numbers up. Those are.
• 8:40
  Rookie numbers in this racket let's take a quick second for
• 8:43
  our sponsors who keep this show on the air over at the Bitcoin
• 8:46
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• 8:49
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• 8:51
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• 8:55
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• 8:57
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• 9:00
  keep if you sovereign when the Fiat system pulls the plug.
• 9:03
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• 9:31
  There's the two interesting ones that we hear about the most in
• 9:33
  in the asset manageable, there's value, value and and growth.
• 9:38
  So growth, you know, you're talking about your Facebook's,
• 9:40
  Amazon's Googles and Apples and things like that.
• 9:45
  These are the big growth growth companies which have a huge but
• 9:48
  that's not. Yeah, A.
• 9:49
  Lot of concentration in those guys because they have grown so
• 9:54
  much that they make up like 2 or 3% of of, of it given benchmark.
• 9:59
  And so you everyone's going to be kind of almost overweight on
• 10:02
  them at some point. Value.
• 10:05
  You know value. Is.
• 10:07
  We're always seem to be in the growth market with the way with
• 10:10
  all the money in printing. There's something I wasn't
• 10:11
  really switched on to before as why is growth is in recent
• 10:14
  years, in the recent 1015 years, 20 years or 20 almost coming up
• 10:17
  to 20 years since since the great financial crisis was
• 10:20
  growth was always more in favor than value because, yeah,
• 10:24
  because of all the stimulus that was being pumped into the
• 10:26
  markets and stuff. So it made sense.
• 10:27
  It suddenly started to make proper sense as I start to learn
• 10:31
  about Bitcoin. AI was the last thing propping
• 10:34
  up markets. Now that it's cracking, the Fed
• 10:36
  has two choices. Let the tech sector burn or turn
• 10:40
  the printer back on and we know which button they're gonna hit.
• 10:43
  The best crypto asset? Well, Bitcoin's the best crypto
• 10:46
  asset. OK, what's the second best?
• 10:48
  There is no second pass. Every time the system breaks,
• 10:51
  the response is more liquidity, more debt, more inflation.
• 10:55
  Which means only one thing goes up for real Bitcoin.
• 10:58
  For three years to embrace a vital industry here in Miami.
• 11:03
  I've also signed historic executive orders to end the
• 11:06
  federal government's war on crypto.
• 11:08
  Crypto was under siege. It's not under siege anymore
• 11:12
  because it's a big industry. It's a big industry and I have a
• 11:16
  lot of people that are great people, great business people
• 11:19
  that are in other businesses, but they're in crypto too.
• 11:22
  And it takes a lot of the pressure off the dollar it
• 11:24
  takes. It does a lot of good things,
• 11:26
  but we're into it. Biden was vicious on crypto.
• 11:30
  They were going after these crypto guys.
• 11:32
  It was terrible. They were under indictment, but
• 11:35
  I got indicted too. I got indicted.
• 11:37
  I made a phone call. Congratulations on your victory.
• 11:41
  He made a phone call. Let's indict him.
• 11:43
  These people are the worst. Then they say he's going to have
• 11:47
  to call me. They indicted me, they impeached
• 11:50
  me. They did everything.
• 11:52
  It's unbelievable. Who the hell else could have
• 11:53
  taken that? You guys know anybody else that
• 11:55
  could have taken? I don't think so.
• 11:57
  A lot of people say you're the only one could have taken that.
• 12:00
  I don't know if that's true, but there aren't too many.
• 12:03
  We're making the United States the Bitcoin superpower, the
• 12:06
  crypto capital of the world, and the undisputed leader in
• 12:10
  artificial intelligence. We're leading China by a lot.
• 12:16
  Don't forget, if we don't do the crypto properly, China, China
• 12:19
  wants to do it. They're starting it, but they
• 12:21
  want to do it. Other countries want to do it.
• 12:22
  If we don't do it, it's a big industry.
• 12:25
  We're honored to. We have in 20-30 a forecast of
• 12:31
  the entire crypto asset ecosystem and of course we're
• 12:35
  going to be modifying this with time.
• 12:36
  We're doing our, our big ideas work now, but as of our last go
• 12:42
  with this, you know, the ecosystem, we expect to hit $25
• 12:46
  trillion in 20-30. The vast majority of that in
• 12:52
  Bitcoin, mostly because we, we look at Bitcoin as, you know, a
• 12:59
  global monetary system, you know, rules based that we've
• 13:03
  been missing since the US went off the gold exchange standard
• 13:07
  in 1971. That's a very big idea.
• 13:10
  Yeah, it needs a bailout. Bitcoin needs no one.
• 13:13
  It's not a Ponzi. It's not a promise.
• 13:14
  It's energy. And you can't print energy.
• 13:19
  If you look at the failure of Fiat currencies, they don't
• 13:21
  gradually fail, they fail spectacularly.
• 13:24
  And this is the the premise behind the 1,000,000 Bitcoin
• 13:27
  call that is not going to be a gradual slow increase to $1
• 13:31
  million a coin, but rather a very short and violent upheaval
• 13:35
  that sends us there in a matter of months, weeks to months.
• 13:39
  And if you look at the hyper bitcoinization landscape, what
• 13:43
  you do see is more and more countries coming out in mining
• 13:46
  Bitcoin. Bhutan, I think it's the
• 13:48
  clearest example of this. They have close to a trillion
• 13:52
  dollars now in Bitcoin holdings from mining over the past four
• 13:56
  to five years. So if this is not an indication
• 14:00
  that hyper bitcoinization is coming, I'm not really sure what
• 14:02
  is. But countries that have excess
• 14:04
  energy, they can tap into that now and convert that into money
• 14:09
  and use that money for financing lots of different things.
• 14:12
  I believe we're also on the verge of countries issuing debt,
• 14:15
  sovereign debt to buy Bitcoin. So the Bitcoin bond program, it
• 14:21
  is going to come simply because the MicroStrategy model has has
• 14:25
  illustrated that this works and it works very well.
• 14:29
  And it's just simply a matter of time before a country pulls that
• 14:32
  trigger and unleashes a torrent of sovereign debt to acquire
• 14:36
  Bitcoin. He's right.
• 14:37
  We're just getting started. Bitcoin is the anti bubble.
• 14:41
  A short a short and violent Bitcoin upheaval could be
• 14:44
  coming. The AI bubble was built on debt.
• 14:47
  Bitcoin was built on proof of work.
• 14:49
  One needs a bailout. Well the other is the bailout
• 14:52
  stack sets take self custody and I'll see you in Valhalla and
• 14:56
  we'll see you at mining disrupt 2025.
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• 15:20
  see you there. Hope you guys enjoyed this one.
• 15:23
  Don't forget to lag, subscribe and give us a pan back sharing
• 15:26
  the sound money gospel. Set those notifications for the
• 15:28
  best in Bitcoin news delivered to you daily and I'll see you
• 15:31
  next time. Love you guys.