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Elon Musk Weekly News Update · Elon Musk Podcast

0:00
Hi everybody and welcome back to another episode of the Elon Musk
0:03
Podcast where we discuss all things technology
0:06
entrepreneurship in the future of humanity.
0:10
According to insiders, Tesla has plans to double the D1 chip
0:14
orders for the coming year. Firstly, let's talk about the
0:17
Dojo D1 chips and what they are and why they're so important.
0:21
Tesla's D1 chips are application specific integrated circuits or
0:25
a six, specifically designed to enhance the capabilities of
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Tesla's Dojo supercomputer. Now this machine is expected to
0:33
play a critical role in the training of Tesla's driver
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assisted systems and their self driving AI models.
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And the main advantage here is that Tesla can more efficiently
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analyze extensive video data from its vast vehicle fleet,
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negating the need for manual human input.
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This also represents a significant stride toward
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Tesla's aspirations for full self driving technology as well
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as other initiatives like dedicated robo taxis and
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optimist robots. As Tesla rolls out more a I
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dependent projects, the Dojo D1 chip becomes an increasingly
1:08
central component to the company's technological
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infrastructure and the Dojo supercomputer has the potential
1:14
to advance not only Tesla's automotive applications, but
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could also be integrated into other autonomous systems in the
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future. Now moving on to the business of
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this report suggests that Tesla will be ordering 10,000 units of
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the Dojo D1 chip from TSMC for the upcoming year.
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This is not just good news for Tesla, but also positive
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development for TSMC, which has seen an increase in its high
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performance computing or HPC related orders, partially fueled
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by Tesla's orders. And the dynamics between Tesla
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and TSMC are becoming increasingly symbiotic,
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benefiting both companies and pushing the envelope in
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supercomputing and AI. Now firstly, we need to
1:59
understand the implications of Tesla shift away from NVIDIA.
2:03
For years, Nvidia's powerful GPUs have been the workforce for
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many companies in the tech industry, Tesla included.
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Nvidia's technology has been particularly critical in Tesla's
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development of machine learning algorithms for autonomous
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vehicles, and the strategic decision to ramp up the
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production of Dojo D1 chips marks a turning point for Tesla,
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allowing the company to have more control over its own
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destiny. And the Dojo D1 chips are not
2:30
just a piece of hardware, they represent Tesla's determination
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to control its own intellectual property and their own
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resources. Now let's talk about the supply
2:39
chain. Here in the global semiconductor
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market, supply constraints have become a significant concern for
2:45
tech companies in the recent chip shortages have demonstrated
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the vulnerabilities and relying too heavily on 3rd party
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vendors. By investing in its own chips,
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Tesla is essentially laying the foundation for a more resilient
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and adaptable supply chain. This in house production
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capability gives Tesla an edge, enabling faster integrations of
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its technology and potentially leading to a quicker rollout of
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full self driving capabilities. Now on the future projection
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side, Tesla has ambitious plans for the Dojo supercomputer which
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serves as the brain Center for their Dojo D1 chips.
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According to various reports, the next Gen.
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Dojo system is expected to be operational by 2024 with a
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target achieving 100 exaflops of compute power.
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This would not only make Dojo one of the most powerful
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supercomputers on the planet, but also give Tesla the
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computational capabilities required for sophisticated
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machine learning algorithms and data analysis.
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Now with a more powerful Dojo, Tesla's rate of innovation could
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accelerate, impacting everything from autonomous vehicles to
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smarter energy solutions. Now the financial implications
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should not be overlooked either. This price tag associated with
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NVIDIA H100GP U's was reported to be around 300,000,000 for the
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setup that Tesla was considering.
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Now producing the Dojo D1 chips in house, despite the initial
4:09
research and development costs, could end up being a more
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costeffective solution for Tesla in the long run.
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In addition, having a proprietary chipset could become
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a new revenue stream for Tesla as they could eventually license
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this technology to other companies and sectors like
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robotics, healthcare, or even in aerospace.
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Now let's not forget that the Dojo supercomputer isn't
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exclusively for autonomous driving applications.
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Test the signals that the Dojo capabilities could be leveraged
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in other areas like robotics and different kinds of autonomous
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systems. Tesla's hardware 4.0 self
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driving computer, another collaborative between test and
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TSMC, has been a significant component in the development of
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autonomous technology. And with such diverse
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applications, Dojo's future could very well make it a
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standard tool in the computational universe, applied
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in various sectors, requiring immense computational power and
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machine learning capabilities. Tesla CEO Elon Musk has even
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disclosed plans to invest over $1 billion in the Dojo project
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by the end of 2024, underlining its critical role in Tesla's
5:18
future and potentially the future of a I and robotics.
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Now, we can't have an Elon Musk podcast episode without touching
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on a little bit of controversy. Tesla is currently under federal
5:29
investigation for allegedly misappropriating company funds
5:33
to build a new mansion for Elon Musk.
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And while this is indeed a critical issue that could affect
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Tesla's public image and even stock prices, it's essential to
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remember that this is still under investigation and nothing
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has been proven yet. Regardless of these challenges,
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the momentum behind Tesla's technological advancements like
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Dojo and the D1 chips doesn't seem to be slowing down.
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If anything, the accelerated investments indicate an
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unshakable belief in the company's vision into the future
6:00
of autonomous systems and AI. SpaceX is Starship rocket and
6:04
the preparations for its next orbital flight.
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Now, some of you may already be aware that SpaceX is waiting for
6:10
the Fish and Wildlife Service of the FWS to give them the green
6:14
light for the next launchpad. Now, simultaneously, the company
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has filed an application with the FCC for communication
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permissions during the upcoming Starship test flight expected to
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commence this coming January. Possibly now, these bureaucratic
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steps are routine for SpaceX, but what's really intriguing
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here are the technological leaps, including several
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upgrades this next test is slated to showcase.
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So in today's episode, we'll be talking you through the
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specifics of the imminent Starship test flight, including
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major changes to the Rockets design and how these upgrades
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aim to help this behemoth, the largest and most powerful rocket
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to date, reach orbit successfully.
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Now the stakes couldn't be higher.
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Starship is expected to be the vessel that helps humanity set
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foot on Mars and return to our nearest neighbor, the moon.
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Now, first on the list of big modification is something that's
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an engineering marvel, the concept of hot staging.
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Traditionally, rockets execute a stage separation by halting the
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main engines on the booster and before the second stage even
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fires up. And however, SpaceX plans to
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keep Starships engines ignited while it's still essentially
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attached to the booster, which we refer to as the Super Heavy.
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Now, a former SpaceX mission director speculates this will
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give the rocket a payload increase of about 10%, and to
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facilitate this, SpaceX has integrated vents and heavy duty
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heat Shields at the top of the Super heavy booster.
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This ensures that the flames can escape, preventing the rocket
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from blowing up mid flight. The method is a bit riskier
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since the booster could potentially be damaged, but
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sometimes risk is synonymous with advancement.
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Now let's pivot for a moment to talk about another angle of the
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upcoming Starship test, the focus nature of the FCC
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application that SpaceX recently filed.
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Unlike other filings, this one is narrower in scope,
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specifically seeking approval for communication channels
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between the Starship booster and the launch site.
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The absence of other elements like the full Starship vehicle
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in the application raises some interesting questions.
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Could this suggest a series of test runs focusing predominantly
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on the booster and the paperwork could hint at SpaceX adopting a
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step by step approach, perhaps focusing initial tests at the
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first stage before proceeding to comprehensive trials involving
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the entire rocket system. This would allow SpaceX to
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ensure that each component of this complex machine is in top
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shape before the actual orbital flight takes place.
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Now, the third major change we're discussing today is the
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engines. As we all know, the Raptor
9:01
engine is fundamentally more complex than the Merlin engines
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that power the Falcon 9. This complexity makes the engine
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more susceptible to leaks and therefore SpaceX has taken
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significant steps to improve the valves and seals on the Raptor
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engines and have seeing the fire suppression systems to manage
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any potential accidents and make them more efficient.
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Now, with 33 Raptor engines powering the first stage
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booster, we're talking about an incredible level of engineering
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intricacy. The effort to ensure each of
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these engines operates optimally is crucial not just for the
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success of the mission, but also for the longterm goals that
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Starship aims to achieve, including the colonization of
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Mars and renewed lunar missions with the Artemis program with
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NASA, Let's talk about the visual spectacle this Starship
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presents. It's not just the world's
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largest rocket, but also the one with the most engines on a first
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stage booster. When these 33 engines light up
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for a flight again, it's a sight to behold, unrivaled by any
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current or in development rockets.
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Additionally, a hot staging ring will be added to the top of the
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first stage booster, ensuring the stage separation as a
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success, and this will address the primary failure point of the
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last Test in April. And with these numerous
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upgrades, we're clearly marching toward a future where space
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travel isn't just a feat of engineering, but also a
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mesmerizing spectacle. The 2nd Starship test flight
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promises not just to correct past mistakes, but to push the
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envelope on what is possible in rocket design and engineering.
10:36
Tesla's latest move to make electric vehicle charging more
10:40
accessible for everyone, not just Tesla owners, but owners of
10:44
all electric cars. Over the last couple of years,
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Tesla has been slowly opening up its Supercharger network to non
10:51
Tesla vehicles, especially in Europe.
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But the real news is what's happening stateside.
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In North America, Tesla has faced some challenges with
11:00
compatibility issues, largely due to the unique connector that
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Tesla uses for charging. And unlike in Europe where
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standard connectors are widely in use, Tesla's proprietary
11:11
connector here became a potential obstacle for non Tesla
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EV users. However, last year Tesla decided
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to open up its connector to other manufacturers, a move that
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started a transition in the industry.
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So let's dig into this. We'll be discussing the
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significance of Tesla's Magic Dock Superchargers, how it's
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making the Supercharger network more inclusive, and the long
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term strategy behind all of this.
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We'll also talk about some of the recent developments around
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EV charging infrastructure in Britain and how various
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automakers are looking at tapping into the Tesla
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Supercharger network now. Earlier this year, Tesla
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introduced a novel piece of tech called the Magic Dock.
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This is essentially a new receiver for the Tesla Charging
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connector at Supercharger stations.
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The Magic Dock allows for flexibility.
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It can disconnect from the charger to act as an adapter
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between Tesla's connector, known as the NACS, and the CSS
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connector used by other electric vehicles.
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Now in February, Tesla started the installation of Magic Docks
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at Supercharger stations in New York and California as a pilot
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project, though further expansion of the Superchargers
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was halted for some time, likely due to the transition to the
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NECS standard. Tesla recently resumed this
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expansion by installing new stations in Texas.
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Now Tesla has gone even further. They've extended its Magic Dock
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superchargers into Utah, Colorado, Michigan, and
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Washington State, and the expansion is still in the early
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stages. But it's clear that Tesla is
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investing in this technology as a bridge until direct
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integration becomes widespread in 2025.
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Now, while Tesla has been progressing with its
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Supercharger network in North America, let's not forget about
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its European endeavors. In Europe, Tesla has already set
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up hundreds of stations and the integration with non Tesla
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vehicles has been smoother there due to the already standardized
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connectors. In the UK, charging
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infrastructure is also growing at a very impressive rate.
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For instance, Ubertricity, a shellowned charging network,
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recently announced the installation of 1050 St. side
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public EV chargers. These charges will be part of
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the company's innovative lamppost charging project,
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showing that charging infrastructure is becoming more
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commonplace and versatile. Now, moving away from Tesla,
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just for a second, let's talk about how other automakers are
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responding to this trend. Jaguar has become the latest
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brand to announce its plans to integrate Tesla and ACS into its
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electric vehicles. They're following in the
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footsteps of other big names like Ford, GM, Honda, and more.
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And these companies are not only planning to adopt any CS in
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future models, but are also considering providing adapters
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for existing models. While it's still uncertain when
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exactly these adapters will become available, given the
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logistics involved, the commitment by these automakers
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to adopt the Tesla standard signifies A monumental shift in
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the industry. And Tesla set the stage.
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And now the world's adapting to them.
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And the company sold 325,291 vehicles in the United States in
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the first half of 2023 alone. That's outpacing its next 19
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competitors by a ratio of 10 to one or more.
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And as the EV market continues to grow, Tesla remains the
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dominant force. But other brands are slowly
14:44
increasing their share as well, and the demand for electric
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vehicles and charging infrastructure is growing.
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But so were the challenges. Companies are investing billions
14:52
into new EV and battery plants, but whether the market can
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sustain all this new capability remains to be seen.
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For instance, Ford recently decided to pause work about a
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$3.5 billion electric vehicle plant in Michigan, raising
15:07
questions about the pace of EV adoption.
15:09
And as Tesla gears up to start deliveries of the much
15:12
anticipated cyber truck vehicle, new information about a
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performance version has come to light.
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Elon Musk himself took to social media to reveal that he recently
15:23
drove a performance cyber truck that is sure to exceed
15:26
expectation. Now the cyber trucks first
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unveiled in 2019, it's undergone significant modifications since
15:33
its prototype dates. In a market that has witnessed
15:36
profound shifts, Tesla has not been shy about tweaking its
15:39
designs to adapt. Although Tesla initially laid
15:42
out specs and pricing for the cyber truck, those could very
15:45
well change considering the automaker's penchant for making
15:48
updates to its vehicles even after they've been unveiled.
15:52
Now this leaves us with many questions about the cyber Trucks
15:54
features, release timelines, and most critically, its pricing
15:58
structure. Now, Cybertruck is no longer
16:01
just a concept, it's a tangible machine, and the company has
16:04
produced hundreds of these electric pickups labeled as
16:08
release candidates or beta builds.
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But details have been very scarce, while preproduction
16:13
models have been spotted on the roads, providing the world with
16:15
its first real look at Tesla's latest creation.
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These aren't the final versions. Photographs of the trucks bed in
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particular indicate some interesting design choices that
16:25
set it apart from traditional pickups.
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Now, in the midst of the suspense, Elon Musk tweeted that
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he just drove a quote Performance Cyber Truck, a
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phrase that naturally triggers A flurry of speculation.
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Tesla had previously announced a Tri motor version with rather
16:41
impressive specs 500 plus miles of range, zero to 60 and 2.9
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seconds, and a starting price of $69,900.
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Now the revelation of a performance version hints that
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there could be multiple iterations of the Cyber Truck,
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possibly even a quad motor version with even greater
17:00
capabilities. Though Elon Musk's tweet was
17:03
characteristically brief, it opens a new chapter in the Cyber
17:06
Truck saga. If a performance version exists,
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Musk found it noteworthy enough to mention, and it's reasonable
17:14
to assume that this variant could be among the first to roll
17:17
off the production lines. And the term performance often
17:21
correlates with higher speeds, better handling, and generally
17:24
enhanced capabilities, which could position this version as a
17:27
high end offering within the cyber truck lineup.
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Now the electric pickup truck market is getting crowded with
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entrants like Rivians, R1T and the GMC Hummer EV and Ford's
17:38
options, and the Cyber Truck aims to distinguish itself
17:40
through its unconventional design and superior bed length.
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Measuring at 6.5 feet longer than any other electric pickup
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currently on the market, this offers utility that other
17:51
electric pickups simply can't match.
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Additionally, Tesla may include a midgate feature similar to the
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Chevy Silverado EV, according to visitors who attended Tesla
18:00
Cyber Rodeo event in April of 2022, features like these can
18:05
make the Cyber Truck not only a performance powerhouse, but also
18:08
a highly versatile vehicle. Thus, Tesla's electric pickup is
18:12
not merely seeking to join the ranks of existing electric
18:14
vehicles, but aims to redefine the category altogether.
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Now, photos of the cybertruck taken by a Facebook user reveal
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a bed floor panel with bolt holes, likely a space for a full
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size spare tire, and sloped bedsides.
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These design elements have generated mixed reactions.
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The slope size, for example, could limit the width of loads
18:35
and potentially stress the bed walls.
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However, Tesla could turn these limitations into unique features
18:40
such as additional storage compartments, and the
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photographs also show that the tailgate reaches armpit height,
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indicating that loading could be a challenge.
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While Tesla has suggested that the rear suspension will dip for
18:52
easier loading and unloading, the design still raises
18:55
questions about accessibility. However, Tesla has never been
18:59
one to shy away from bold design choices.
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It's likely the final production version will include innovative
19:05
solutions to these challenges now, with Tesla expected to
19:09
announce all the details in an upcoming event.
19:12
The final specs and features of the Cyber Truck, including its
19:14
performance version, are just weeks away from being officially
19:18
revealed. Given that the company is 2
19:20
years behind its original schedule, anticipation is
19:23
running really high. Tesla's delivery event will
19:26
answer lingering questions, confirm rumors, and give
19:29
prospective buyers a comprehensive look.
19:31
With the automaker has been laboring on behind closed doors,
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we'll be discussing an essential milestone that SpaceX recently
19:38
achieved, securing its first ever contract with the US Space
19:41
Force for satellite communications via Star Shield.
19:45
The contract was officially confirmed on September 1st,
19:48
according to Air Force spokesperson and Stefanik, and
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we'll discuss how Star Shield operates over the existing
19:55
Starlink satellites and serves as a secured network exclusively
19:59
for governmental agencies. The deal has a budget ceiling of
20:03
$70 million and will support various arms of the US military
20:07
like the Army, Navy, Air Force and Coast Guard.
20:10
And what makes this even more interesting?
20:12
Is that the contract comes on the heels of Spacex's role in
20:14
the Eukaryan conflict, where it provided Internet connectivity
20:18
to the Ukrainian military. The Star Shield contract marks a
20:22
significant moment for SpaceX as it diversifies its service
20:25
offerings and the Star Shield network, designed for
20:28
governmental entities, will operate over the existing
20:31
infrastructure of the current Starling satellites.
20:34
Now to put it into perspective, SpaceX will provide what's
20:37
called endtoend service through this contract, and this
20:40
comprehensive package includes everything from user terminals
20:44
and ancillary equipment to network management and various
20:47
other services. And the US Air Force
20:50
representative confirmed that the contract lasts for one whole
20:53
year with the possibility of extensions in the future.
20:56
With his contract financial framework, $15 million has
20:59
already been earmarked for SpaceX to be obligated by the
21:03
end of September. We have to consider that this is
21:06
not an isolated instance of Spacex's involvement with
21:09
defense, and previously SpaceX had one other contracts and the
21:12
Pentagon has already even categorized as a high value
21:16
buyer for SpaceX. And SpaceX has crafted 2
21:20
separate but interlinked satellite communication systems,
21:23
Starlink for civilians and Star Shield for government.
21:27
And while both operate over the same Starlink satellite network,
21:31
they serve completely different purposes and completely
21:35
different clientele. Elon Musk clarified on the
21:38
platform formerly known as Twitter that Star Shield will be
21:41
under the US government's ownership and controlled by the
21:43
Department of Defense Space Force.
21:46
The civilian Star Link network will remain independent and
21:49
won't participate in combat operations.
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Now what this bifurcation allows is a dual use system where they
21:56
can serve different sectors without compromising on the
21:59
quality or security of services provided.
22:03
Now, this new US contract for the US Space Force certainly
22:07
isn't Spacex's first dance with the defense sector.
22:10
The Pentacontin has relied on SpaceX for a number of rocket
22:14
launches, indicating a level of trust and satisfaction with the
22:17
services that they provide. And the work with the Department
22:20
of Defense and other military branches by SpaceX showcases the
22:24
versatility and adaptability of these technologies.
22:28
And the very nature of these contracts often necessitates
22:31
strict requirements for reliability, security, and
22:34
efficiency. Aspects where SpaceX has
22:37
repeatedly proven its mettle would be an oversight to discuss
22:41
the contract without acknowledging Spacex's role in
22:43
the ongoing Ukraine conflict. And SpaceX has been providing
22:47
Internet connectivity to Ukraine's military, aiding their
22:50
fight against invading Russian forces from the beginning.
22:54
The decision was not without his complications, though.
22:56
Last year, SpaceX made the choice not to extend Starling
23:00
coverage to Russian occupied Crimea, a move that some say had
23:04
a significant impact on Ukraine's military operations.
23:07
And these actions have garnered attention even from policy
23:10
officials, highlighting the geopolitical influence of SpaceX
23:14
and its technologies. Wheel Now, Spacex's involvement
23:17
in global conflicts and now its contract with the US Space Force
23:22
have led to a more nuanced role for the company and in world
23:26
affairs. And while Elon Musk doesn't hold
23:28
any official diplomatic titles, the influence of Spacex's
23:31
technologies, particularly in communications, it's something
23:35
that can't be easily dismissed. Should be mentioned that earlier
23:39
in June that the Pentagon had already signed another contract
23:41
with SpaceX to provide satellite connectivity for Ukraine's
23:45
military. And as we move forward, they'll
23:47
be crucial to manage this new found influence responsibility
23:52
and ensure that the technologies are used for the betterment of
23:55
society and global stability. Now let's move on to Jeff
24:00
Bezos's rocket company. Completely separate topic, but
24:03
still in the realm of space. The recent FAA closure of the
24:07
investigation into Blue Origin, the New Shepherd rocket mishap
24:11
that took place on September 12th of 2022 of the unmanned
24:16
rocket faced A catastrophic engine failure, resulting in the
24:20
booster being destroyed in the capsule deploying its emergency
24:23
escape system. And according to the FAA, the
24:26
issue stemmed from a structural failure of an engine nozzle
24:31
brought about by higher than expected engine operating
24:33
temperatures, and this problem led to an unintended alteration
24:37
in the Rockets trajectory about a minute after its liftoff from
24:40
Blue Origins West, TX launch site.
24:43
However, the capsule which was carrying scientific payloads,
24:46
executed its emergency escape system and landed safely.
24:51
The FAA investigation concluded with 21 corrective measures the
24:54
Blue Origin is mandated to implement, including an engine
24:58
and nozzle component redesign. Blue Origin, though currently
25:02
grounded, indicated in the social media statement that
25:04
flights would resume shortly. Blue Origin, which was founded
25:08
by Jeff Bezos, had been successfully operating
25:10
suborbital flights since the summer of 2021, and in that
25:13
period New Shepherd launched 6 crude flights transporting a
25:17
total of 31 people with some notable passengers including
25:21
William Shatner and Michael Strahan.
25:23
So it's safe to see that the New Shepherd program was an integral
25:27
part of Blue Origins overall enterprise, constituting A
25:30
considerable chunk of the revenue and public reputation.
25:33
Now the FA A's decision to grab the New Shepherd program
25:36
temporarily has had a palpable effect on Blue Origins business
25:40
plans. For company that had ambitions
25:43
to send customers on 10 to 12 minutes suborbital flights, the
25:47
hiatus comes as a significant setback, especially with the
25:50
booming interest in space tourism.
25:53
And on the other front, Blue Origin recently announced a
25:56
change in leadership, CEO Bob Smith stepping down to be
25:59
succeeded by former Amazon executive Dave Limp.
26:04
Now this transition is likely to be pivotal as the company looks
26:07
to steer through the challenges brought on by the recent mishap.
26:11
Blue Origin is not alone in the commercial Space Flight area
26:13
though. The principal competitor, Virgin
26:15
Galactic, also had to go through the FAA investigation post
26:19
Richard Branson space trip leading to a two year pause in
26:22
their operations and Virgin Galactic resume flights with
26:25
their first paying customers in May of 2023 and it's currently
26:29
preparing for their Galactic 04 mission.
26:32
Virgin Galactic and Blue Origin are looking to capture a
26:35
significant share of the space tourism market, with ticket
26:38
prices ranging from $250,000 initially around 450,000
26:44
currently for Virgin Galactic. With a waiting list of more than
26:48
800 people, the demand for such experiences is definitely
26:52
apparent. Interestingly, both companies
26:55
have customers who have also shown interest in their
26:57
competitors. For example, Sharon and Mark
27:00
Hagel from Winter Park, FL had flown with Blue Origin in March
27:03
2022 and are on the waiting list for Virgin Galactic.
27:07
The second trip with Blue Origin is on hold, pending FA A's final
27:10
nod for New Shepherd's return to Flight.
27:13
And while space tourism is a noteworthy segment of Blue
27:16
Origins plans, it is far from being their only focus.
27:20
The company has ambitious projects that include the launch
27:23
of its new Glen heavy lift rocket from Cape Canaveral, FL,
27:27
a lunar Lander for NASA's artivist missions, and a
27:29
commercial space station named Orbital Reef, And for Blue
27:33
Origin, the Fe A's decision to close the investigation may mark
27:37
a turning point. The company is required to
27:39
adhere strictly to 21 corrective measures outlined by the FAA,
27:43
some of which may necessitate significant engineering efforts.
27:46
The timely implementation of these measures is critical,
27:49
especially with these ambitious projects waiting in the wings,
27:52
and the FA A's final report, though not publicly available
27:56
due to proprietary and US export control reasons, states that
27:59
public safety was not compromised during the mishap.
28:02
The FAA also clarified that the investigations closer does not
28:06
indicate an immediate presumption of the New Shepherd
28:08
launches. Blue Origin needs to implement
28:11
all corrective actions that impact public safety and receive
28:14
a license modification from the FAA prior to their next launch.
28:18
Regulations are an essential aspect of any burgeoning
28:21
industry, and the commercial space sector is no exception.
28:24
What transpired with Blue Origin can serve as an instructive
28:27
episode for other companies in the industry.
28:30
Underscoring the significance of safety measures and regulatory
28:33
compliance. We're covering a story that's
28:35
been gaining a lot of attention. Linda Yacarino, the new CEO of
28:39
X, the social media and platform formerly known as Twitter, is
28:43
gearing up to meet with seven banks that finance Elon Musk's
28:46
acquisition of the company. Now Yakorino, who took to the
28:49
CEO seat in June, plans to discuss her strategy for
28:53
reviving the platform's financial health with executives
28:56
from Morgan Stanley, Bank of America, Barclays, MUF GB NP and
29:03
Mizuho and Societ Generale on October 5th.
29:07
Now this meeting is crucial to Yakorino.
29:10
She aims to instill confidence and access bankers that she can
29:13
breathe new life into the social media platform, which was faced
29:17
with declining revenues and a myriad of other challenges.
29:20
The bankers who hold about $13 billion in debt related to the
29:25
acquisition, are eager to hear how Yacorino plans to attract
29:28
advertisers back to the platform and possibly diversify into
29:32
subscriptions and payments in the future.
29:36
Just a few days ago, Jacarino faced some tough questions at
29:39
the Code Conference, particularly about user metrics
29:42
and the platform's business model.
29:44
Her performance at the conference left some people
29:46
skeptical about the direction of which X is headed.
29:50
The new CEO has also been questioned about her
29:53
relationship with Elon Musk and how his influence might impact
29:56
the platform, especially in the context of attracting
29:59
advertisers. Now.
30:01
Yacorino did mention that the company is close to breaking
30:03
even from an operational cash flow standpoint and expects to
30:07
turn a profit by early of 2024. The statement, alongside the
30:11
revelation that X currently has 245,000,000 daily active users,
30:16
provided some level of assurance, but questions still
30:19
linger now among the banks. This is apprehensive.
30:24
They have been shouldering the $13 billion debt tied to X's
30:28
acquisition for almost a year now.
30:30
They also had to reject offers to buy some of the senior debt
30:33
at a significant discount, opting instead to hold on to it
30:37
in hopes that the company's fortunes would improve.
30:40
And a significant issue Yacorino faces is the decline in the
30:43
platform's advertising revenue, which dropped 60% since the
30:46
takeover. And some of this decline is
30:49
rooted in broader economic worries.
30:51
But a chunk can also be attributed to Musk's less
30:53
traditional approach to running the platform, including relaxing
30:57
moderation policies. Although Musk himself
31:00
acknowledged the drop in revenues, he noted that the
31:02
platform was still covering its initial costs of around $1.5
31:07
billion a year even before the takeover.
31:10
Twitter, now X, was facing difficulties in maintaining
31:14
advertising revenues, and big name companies had started
31:18
pulling out their advertising budgets, partly due to fears of
31:21
an impending recession, but also because of concerns about Musk's
31:24
handling of the platform. Despite these setbacks, Yacorino
31:28
has pointed out some positive trends.
31:31
In a recent interview, she revealed that 90% of the
31:33
platform's top 100 global spenders have resumed
31:36
advertising on X. However, the exact amounts
31:39
they're spending remain undisclosed.
31:42
One of the most intriguing dynamics is the relationship
31:45
between Yacorino and Elon Musk. During interviews, Yacorino was
31:48
asked whether Musk consults with her on major decisions like
31:51
potentially moving the platform to a subscription model.
31:54
While she didn't give a straightforward answer, she
31:56
emphasized her broader role in running the company.
31:59
Yacorino has a background of advertising and was formerly the
32:02
head of advertising sales at NBC Universal.
32:05
Her expertise in this area could be vital in drawing advertisers
32:08
back to the platform, but her vision appears to extend beyond
32:12
just advertising revenue. She's also made it clear that
32:14
she's not just there to head the advertising department, but to
32:17
held the entire organization. And in this complex interplay
32:21
must continues to have a strong influence, especially in the
32:24
product side of things. This isn't necessarily seen as a
32:27
drawback, given Musk's known proficiency and technological
32:31
ovation. Now, as Linda Yakirino prepares
32:34
for this critical meeting, she's juggling several balls at once.
32:37
Not only is she dealing with operational challenges, but
32:39
she's also navigating the waters of public opinion and grappling
32:43
with the responsibility of reassuring nervous bankers.
32:46
And at the same time, she's working closely with one of the
32:48
most prominent and unpredictable tech entrepreneurs over time,
32:52
Elon Musk. There are also other matters to
32:54
attend to, such as allegations of inadequate actions against
32:58
hate speech and disinformation. Yacorino has defended X's new
33:02
direction, emphasizing its commitment to free expression,
33:05
but the jury is allowed on how this will play out in the long
33:08
run. Allies are on the upcoming
33:10
meeting, which has the potential to define the future of X and by
33:14
extension, impact the fortunes of the seven banks involved and
33:17
possibly reshape the social media ecosystem.
33:20
Now let's shift our focus to a topic that's been picking up
33:23
steam in the recent years, namely the role of commercial
33:26
satellites in military operations and the implications
33:30
for national security. Just last week, General Chant
33:33
Saltzman, who is a high ranked official in the US Space Force,
33:37
spoke at a conference in Hawaii. His remarks have added a new
33:40
layer to the ongoing conversations about the
33:42
responsibility of the military and safeguarding commercial
33:46
assets in space like Starlink. Now, the focal point here is the
33:50
increased dependence of the US military on commercial networks
33:53
for tests like communication and surveillance.
33:56
And General Saltzman's comments not only reiterated the rising
33:59
threats from nations like China and Russia, but also explicitly
34:03
address the role of the military in defending commercial
34:05
satellites. To give a concrete example, the
34:08
hypothetical situation was posed about how the US military would
34:11
act if Russia targeted SpaceX is Starlink broadband Network, a
34:16
commercial satellite system, has been used for Internet
34:18
connectivity by Ukraine in its conflict with Russia.
34:22
Now, the situation surrounding the military's role in
34:24
protecting commercial assets in space is both complex and
34:28
nuanced. While General Saltzman did not
34:30
directly respond to the hypothetical situation
34:33
concerning an attack on Spacex's Starlink network, he did make it
34:36
clear that the US military sees a role for itself in
34:40
safeguarding commercial activities in space.
34:42
His argument extends a well established philosophy of U.S.
34:46
policy to protect vital assets. Saltman compared space to sea
34:52
lanes and civilian airliner traffic, highlighting that the
34:55
same protective principles could apply in the extraterrestrial
34:58
domain. And to implement this kind of
35:00
defense, operations would likely be channeled through the US
35:04
Space Command, an entity district from the Space Force.
35:08
Now, Space Command's purpose is to provide combatant commands
35:12
with the resources and technology required for the
35:15
missions, led by the US Army General James Dickinson, who
35:19
interestingly did not give a clear cut answer to a similar
35:22
query regarding the defense of commercial satellites.
35:25
According to Saltzman, the responsibility of deciding which
35:28
commercial assets to protect ultimately falls under the
35:31
purview of Space Command and higher level civilian
35:35
leadership. He spoke of the need for setting
35:37
priorities, suggesting that there could be limitations on
35:41
the extent to which the military can protect commercial
35:43
satellites. Such limitations would likely be
35:46
determined by capacity, strategy and the value of the assets
35:50
involved. Last October, Russia weighed in
35:53
on the subject. A deputy director in Russia's
35:56
Foreign Ministry flagged the use of Western commercial satellites
35:59
by Ukraine as a highly risky trend.
36:03
And while he did not need specific satellites, the
36:06
implication was that he was talking about Spacex's Starlink.
36:09
Now, this points to an international aspect of
36:11
commercial satellites becoming potentially military targets.
36:15
Similarly, Tara Brown, an official in the Royal Air Force
36:19
and a professor at the US Naval War College who specializes in
36:22
space law, concluded that civilian satellites used for
36:25
wartime objectives could essentially be considered
36:28
military targets. The international community
36:30
seems to be inching toward a consensus that these commercial
36:33
assets, once used for military purposes, enter a new category
36:37
of vulnerability. As we venture further into this
36:40
era of increasing interdependence between
36:42
commercial and military operations in space, the points
36:45
made by General Saltzman bring essential questions into focus.
36:49
What are the limits of military involvement in protecting
36:52
commercial assets in space, and who gets to decide these limits?
36:56
And how will international laws adapt to these new challenges?
36:59
The dialogue surrounding the defense of commercial satellites
37:02
is still evolving, but it is undoubtedly a matter of critical
37:05
importance. We will continue to gain
37:07
attention from both military and civilian leadership.
37:11
This topic brings in a relief the necessity for an integrated
37:14
and well thought out approach to safeguarding what might become
37:17
some of the most valued assets of the 21st century.
37:21
I want to say thank you for listening to the show today.
37:23
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