What just happened at Google DeepMind?

Crazy crazy morning. Uh shakeup, a

reorg, stepping down, stepping up,

stepping left, stepping right. There's a

lot of different terms. We'll break it

down. We'll explain the organization

before, now what it looks like going

forward, what this means, where this

goes. So this morning, Dennis Hassabis,

the legendary AI researcher, the founder

of Deep Mind,

>> a true scientist,

>> a true scientist, uh, the subject of

Sebastian Malib's book, The Infinity

Machine, the Infinite Machine. He

announced that he's stepping down as CEO

of Google DeepMind. He's also stepping

up into the role of Google DeepMind

chairman, and he will also be Alphabet's

chief scientist. Is it a promotion? Is

it a is a demotion? Is he quitting? Is

he getting fired? Who knows? But the

most important thing is that he's still

there at Alphabet. He has a different

role and that's what's important. What

is the nature of this new role? Uh

Google CEO Sundar Pachai also announced

that uh Google DeepMind chief scientist

Jeff Dean will be leaving the company

after a 27year run to start along with

Google senior fellow Sanjay Gwat a

public benefit corporation to accelerate

discoveries in machine learning science

and engineering. And if you're not

familiar with uh Jeff Dean, he is the

Chuck Norris of of uh computer

engineering and and software

engineering. Um there's a whole uh list

of jokes around Jeff Dean jokes.

>> Why don't you read some of them, John?

>> What are my favorite Jeff Dean jokes uh

jokes? There's a whole bunch. Any

opportunity to repost the the Jeff Dean

Informatica link? Compilers don't warn

Jeff Dean. Jeff Dean warns compilers. Uh

Jeff Dean's keyboard, it only has two

keys, a one and a zero, because he

programs in binary. Uh that it's that

type of thing. Uh unsatisfied with

constant time, Jeff Dean created the

world's first 01 overn algorithm, so he

can bend time. There's all these

programmer jokes. I don't know. Uh

they're a lot of fun. He knows the last

digit of pi, that type of thing. Uh but

he's been a legend. These were on Quora

maybe 15 years ago, maybe more. People

were so uh excited about him and for

good reason. Uh he invented tons of

things.

>> Jeff doesn't call APIs. APIs call him.

>> Exactly. That type of thing. The lore

around Jeff Dean has been substantial

throughout his entire career. Uh he has

been, you know, very key to so many

different uh Google projects integral in

map reduce and uh actually being able to

scale Google systems.

>> Does this make any sense? Chuck Norris

counted to infinity twice. Jeff Dean did

it in parallel.

>> Ah, okay. Yeah, that's kind of funny.

It's programmer joke, but uh I don't

know.

But yeah, it's just funny that he was

able to like have this level of aura at

Google uh as like a non-founder, just a

great scientist. And it was so long ago

before there were before there was so

much attention on like talent below the

founding team and below the investing

team or whatever, you know. Uh

>> truly a living legend.

>> Yeah.

>> Jersey will be going the Google Jersey

will be going in the rafters.

>> Yes. But for sure he's not done.

>> He's not done and he's starting a new

company which is very exciting because

there's a lot of opportunity in machine

learning science and engineering

obviously. So uh Google DeMine CTO and

Google's chief AI architect Corvlu

I can't pronounce it. I'm sorry. Um is

being promoted to SVP and will lead

DeepMind. So Cor is now running Deep

Mind. But interestingly, there's no new

CEO uh of DeepMind, which always seemed

to be an odd uh decision because

DeepMind was not its own reporting unit

like when the uh when quarterly earnings

happening happen. You get YouTube

numbers, you get Google Cloud numbers.

And so having a CEO of those divisions

made a lot of sense of those

organizations. But DeepMind was always a

was always a unit that sort of cut

across everything because the work that

DeepMind does on Gemini and the models

made a lot of sense to vend into YouTube

and now there's a little Gemini button

when you're on YouTube and you can just

go to a one-hour long podcast and say

when did they talk about this and it'll

just answer you. And so that was like a

feature that was vended into that

obviously goes into core Google search.

Gemini models help with ads. They help

with the actual Gemini products. Like

they get vended everywhere. There's a

Gemini button in Chrome. There's also a

Gemini button in Google Docs. There's

also a Gemini button in Gmail. And so,

uh, it was it was never like its own,

even though it was its own unit, like

the value that it created at Google was

very, uh, was very crossorganizational

as opposed to, you know, the YouTube

team has a CEO and they have revenues

and they have ads and they have a

product and yes, it's integrated into

the other things, but it very much is a

standalone organization, reports its own

financials and has a CEO. So, no CEO for

DeepMind, at least in the short term.

We'll see where it goes. Uh, on X, Demis

says the move will quote, "allow him to

focus on long-term strategy and

accelerating scientific breakthroughs."

He's done a lot of that already, uh,

including leaning into his work at

Isomorphic to help cure disease. He

fleshed this out more on Google's blog.

He said, "I've decided that now is the

right time for me to hand over my

day-to-day operational responsibilities

at GDM uh so that I have the time and

space to focus on the big picture and

help influence what is to come uh uh to

the best of my ability. In my new role,

I will continue to work closely with

Sundar on strategic and global AGI

matters and to advise Corey Josh and the

GDM leads uh from our awesome new London

platform 37 offices. As part of this

transition, I will also be leaning into

my role at Isomorphic, where we are

making uh extremely rapid and promising

progress to accelerate our mission there

even faster. As you have heard me say

many times, I've always believed the

number one application of AI should be

to improve human health. That is a great

message. Very different from the SpaceX

S1. The number one application of AI is

soft power of the entire galaxy. I mean

[laughter] there's that but also just in

the actual like application it's like

it's like enterprise workflows which is

the now at least

>> some type of shakeup has been expected

for a long time

>> uh Google the deep mind organization has

you know made some real contributions to

the space but has been lagging it's been

a point of embarrassment for I would say

for Google for I would say a year

>> uh plus

>> uh they've always felt behind

uh even though they created so much of

the fundamental research that is uh you

know gone into this entire chapter of

the uh you know

>> certainly not behind on video the video

stuff's really good.

>> Yeah, sure. But then you get kind of

tied up because the Chinese models are

like actually we will do Mickey Mouse.

>> Yeah. But here's the thing. At no point

>> has Google been breaking out their true

AI revenue in a way that gets

shareholders excited.

>> Yeah. And that's a good point. What

would Yeah. And there's just been so

many so many question marks. There was a

moment I mean over a year ago felt like

Google had some real momentum but that

momentum was very much lost. And so

there's this question of

>> uh you know when Gnome left

>> which was about a month ago

>> uh that felt shock that was like more

shocking in some ways than even this.

feels like

what feels like a hole in the organiz

uh it's it's recovered a little bit just

down three and a half% um but I mean the

big thing is like they just started like

Google as a company I don't think

>> was able to be at least sufficiently AI

pilled right they started selling

compute a lot of researchers I I'm sure

were frustrated with that and that could

have could [clears throat] have led to

some of the historical

>> Tyler over there thinks Nvidia shouldn't

sell the chips if they're really AGI

pelled. The much more extreme version of

of Google should keep the TPUs for

themselves is is Nvidia should keep the

GPUs for themselves. Um and yeah, I mean

that was something that was that was you

know discussed as okay it if if if you

believe you're in the foothills of the

singularity you you you will want to

scale your compute if you're seeing

traction in the in the products that

you're making you you want to be GPU

rich you don't want to be selling TPUs

to other companies and so that's got to

be there's got to be some tension but

Google's a big organization there's

multiple organizations within Google and

they all have different uh different

KPIs so one team might say, "Yeah, my my

mandate is to sell as many of these as

possible externally." Other people might

say, "My job is to keep as many of these

internally." And there's a lot of

debates there. So, we'll see.

>> Obviously, Google has made a, you know,

massive bet on Tropic and is, you know,

becoming their largest financial backer,

especially through some new reporting on

on some of the lease guarantees that

they're doing.

>> Yeah.

>> Um, but uh but anyway, still so

surprising. Google obviously one of the

greatest companies of all time

>> has every possible advantage

uh in this race and yet has just

consistently struggled. Susan Jong uh

who is currently on leave from Deep Mind

>> um posted a little somewhat of a a fable

backdrop kings all asleep slash on

vacation while minions slave away.

August 2024 first big fail. Fast forward

January 2025 only competent VP bails

after one terrorist lead demanding an

even bigger slice of pie breaks the

camel's back. Summer 2025, a year ago,

second big fail and king of terrorists

climbs the ranks above the slumbering

execs.

>> This is a crazy

>> summer tweet.

>> Summer 2026, slumbering execs and

terrorists who only show up for

successful announcements. Move on,

leaving just the king of terrorists

behind. lessons. If you're high enough

up there, you can pretty much be a

terrorist and hold orgs hostage while

continuing to ask for more and more and

more until there's absolutely no more

aura or gold left to plunder and then

just move on to greener pastures to do

it all over again. Uh, and we'll leave

it up to you

>> crazy crazy post

>> to try to figure out who's who in this

story. Doesn't strike me that that Susan

will be headed back to the company after

[laughter]

after this code.

>> Crazy crazy person.

>> Uh she says, "I've been on leave since

January. Got pretty burned out by

certain people who just say yes to

everything to avoid ever making a hard

call." Yeah.

>> And leave it all to the hungry minions

to backstab each other until success

finds a cursed hole to crawl out.

>> I mean, to be fair, I I I was looking at

uh at Tyler's alt account, and he he

talks about us like this all the time.

He's always he refers to you as the

slumbering exec and me as the terrorist

terrorist.

>> It's a I mean I believe in free speech.

I defend your right to say these things,

Tyler. I am offended but you know you're

not. [laughter]

>> No, it's a wild wild thing.

>> One of the crazier

>> sub tweets from a big tech.

>> Yeah, but I I don't know. I would I was

never sure that she worked there. It

felt like it was maybe like an alt

account and it was just like an anon.

But it does seem like I mean she was

saying right here, I've been on leave

from this organization. So I don't know.

Uh and somebody calls her the Homer of

our times. Another interesting like

wrinkle here is if you look at what

Demis was talking about writing about

just a few weeks ago. Um it wasn't as

much focused on the isometric uh

scientific advancements. I know he's

super deep in that and that's what he's

he said he's been focusing on and I love

that message. Uh he says it's time for

AI to prove its unequivocal value in the

world and what better way to demonstrate

that than than to help finally cure

diseases like cancer. 100% agree 100%

agree that I if if you get a new cure

for cancer you save someone's life and

they can go and say yes I I I took the

new cancer cure and I was cured. AI is

doing its job. A lot of people will be

very happy about that. Perfect. But

that's not what Demis was writing about

a couple weeks ago. Uh the last

substantial piece that Demis put out was

called the framework for frontier AI and

the dawning of new age in which he

argues for a frontier AI standards body

that evaluates frontier models before

they're released for risks associated

with super intelligence. It's at the

very least not crazy to assume that

Demis' new role at Alphabet is maybe

related to what he's advocating for in

this essay. Uh there's been a lot of

back and forth in Washington about the

interpretation of that essay and a lot

of AI researchers have stepped up and

said like, "Yeah, we basically agree

with this. This framework seems pretty

good. It includes open source models in

there."

>> Yeah. To me, Demis could be an amazing

candidate as as somebody to lead a new

regulatory body.

>> Lead America as the president. You think

he's running?

>> Not quite, but

>> I think we got to get a researcher in

there at this point.

>> Be great.

>> Yeah. Um, no. So, big question now. So,

Jeff Dean is out. Gnome Shazir is out.

Damus is out. Who is going to fill that

void from a leadership standpoint? How

are they going to be able to recruit the

best researchers in the world?

>> Uh, that's a big question mark. I

wouldn't be surprised at to see Google

just shift into more of an NVIDIA style

role as like a capital partner to a

number of other labs as they, you know,

continue to fall. It's it's it's maybe

more of like an Amazon and Microsoft

role where you have a great business.

You're also great at building

infrastructure. You also have a

semiconductor team and a chip team and

you can play up and down the stack but

maybe you're not as as focused on this

like full stack straight shot thing and

you're partnering with other labs on on

different pieces of the puzzle. It'll be

interesting to see where everything

goes.

>> Tano Bruss is ousted as Deepmind CEO and

Jeff Teen and Sanjay are leaving Google

to start a Neolab. They're all being

very careful to frame these as positive

shifts. But there's no way in heck Demus

would have accepted this willingly and

there's no way Sundar happily accepted

Jeff doing this as a totally independent

new public benefit corporation rather

than a bet under Alphabet. Tough to see

an interpretation other than Jeff losing

confidence and working on AGI under

Google. Very bad.

>> We need a Sebastian Malibi sequel. We

need a sequel

>> over all.

>> I would love for him to write a uh a

sequel to just and even zoom out and

look at the the the the AGI wars

generally like he did in the power law

about the early venture capital firms

and how they all formed and battled each

other. Uh that would be great. Anyway,

>> Rohan Anneil over at Core Automation

says, "Pour one out for the big G. It's

so over."

>> [laughter]

>> Um, [clears throat] we did have a funny

uh

>> brutal

>> funny moment with uh Google AI overviews

uh yes uh a couple days ago where uh it

said that one of our friends Yeah.

>> was married to another of our friends

wife.

>> Yes.

>> And it was quite confident in that

>> it was.

>> And I have no idea how how it even

>> thought of that.

>> Yeah. I think it was because they did a

podcast together or something like that.

like they were linked in a blog post

together, something like

>> doing a podcast together.

>> She wrote about him or something or

wrote a profile and it just like kind of

put the names together. Uh, very odd.

Yeah. I don't know. Uh, yeah. You have

to wonder what it takes to get AI

overviews into like a reasoning mode

that can actually do the factecking so

the hallucinations die down because

>> Well, yeah. And they have to figure out

a way to make that process so

inexpensive because they're serving it

billions. Yeah.

>> Billions. Nathan Lambert says, "Major

restructuring at Gemini will be studied

forever as the incumbent with all the

advantages not being able to get going.

>> They got going. This is this is not

correct. They completely got going.

>> They got going, but they certainly

didn't build uh real momentum." Uh and

then he says, "PS, OpenAI accomplished

their original goal."

>> He buyers PS of the century. But yeah,

backstory is that a lot of the initial

energy around open AI was a concern that

uh Google would control AGI and a fear

from the various uh early participants

>> around that scenario.

>> Yeah. Interesting.

>> And almost even more positive news, the

moment you've all been waiting for. Car

play is coming to pontoon boats.

Let's [applause] go. Finally.

Finally. Finally, finally.

>> Have you ever been on a pontoon boat?

>> Yes.

>> Explain what what context were you on a

pontoon boat? What is a pontoon boat

even look like? This is a terrible

photo.

>> It's for cruising. It's for cruising.

Team, pull up a pontoon boat. Go.

>> It's not It's not like a monohole, but

it's not a catamaran.

>> It's something between like a

>> cigarette boat and a house boat.

>> Okay. That's a really wide gap.

>> Well, it's right in the middle.

>> Okay. Mastercraft Boat Holdings today

said it's adding CarPlay to its upcoming

Crest and Bise pontoons. Uh the company

is working with Savvy Navy to bring

CarPlay and onwater navigation to Boers.

>> And uh Mastercraft Boat Holdings Inc. of

course a public company experiencing a

god candle [laughter]

really up 72%.

>> Up 18 18 cents.

>> Okay. This is cool. This is very cool.

See?

>> Yeah. This is a double-decker.

>> Double decker. See, out in California,

we don't we don't know anything about

these pontoon boats cuz these don't work

at the beach, right?

>> Correct. Uh, but I I was sort of

correct. Somewhere in between a house

boat and

>> Aren't you from the land of a thousand

lakes? Right. Michigan. Isn't that the

land of a thousand?

>> No. Me? Minnesota.

>> Oh. Oh, you're from Okay. Are Are you a

pontoon boat guy?

>> Pontoon boats are huge in Minnesota.

>> Okay.

>> Yeah.

>> How many

>> They're for lakes.

>> They're for lakes, basically. How many

hours have you spent on pontoon boats in

your life?

>> 10,000

>> 10,000 hours. [laughter] The man man put

in life's work on the pontoon boat.

Apparently [clears throat]

[laughter]

just

>> you're in the wrong job, buddy.

>> I think I think you got become a pontoon

boat.

>> It is crazy to think in another life Ben

could have been the top pontoon boat

salesman in the entire world. Moving

over to

>> what is the story of the day in

technology?

>> Yes, startup billionaire sued over super

yacht broker fee. Everyone's talking

about this. This is potentially bigger

than what's going on at Google today. Uh

in London, the billionaire founder of

one of the world's most valuable

startups recently bought a super yacht

valued at an estimated $400 million.

Yeah. [applause]

>> Continue.

>> Uh, replete with a glass bottomed

swimming pool and a helipad. Do they

make Wait, do they make super pontoon

boats? Can you get a $400 million

pontoon boat? What does that do for you

if you

>> almost certainly

>> can you imagine just a a 300 foot?

>> The world will create infinite ways to

to make you part with your your

hard-earned money.

>> Yeah. Uh, and and I'm sure we could

arrange a a almost half a billion dollar

pontoon boat.

>> Team AI images. I want to see what $400

million gets me. If I'm going all in on

a pontoon boat, I want to really

dominate Lake Michigan. Is Lake Michigan

too big for a pontoon boat?

>> Yeah. I I think the pontoon boat is not

for like big waves. You can't It can't

be like

>> But there's not big waves on on uh Lake

Michigan. You can't surf or anything?

>> I don't think so.

>> Surf. Yeah. Anyway, so [snorts]

uh it was a $400 million super yacht. It

had a glass bottomed swimming pool and a

helipad. There was just one problem.

According to this reporting in the Wall

Street Journal, he didn't pay the

broker's fee. That is according to a top

luxury yacht broker who is now suing

Nick Steronsky, a co-founder and chief

executive of digital banking giant

Revolute, alleging the entrepreneur went

behind their back to avoid paying

commission on a purchase they had worked

on. Cecil Wright and Partners, a luxury

yacht broker, uh, filed the legal action

in London's High Court over Stransky's

acquisition of Nixie, a 335

ft vessel with four terraces. The broker

alleged in a court filing that it was

negotiating the purchase for Stronsky

when his team secretly contacted the

yacht seller directly and agreed to buy

the boat, avoiding roughly $20 million

in standard commission. the amount the

dealer now claims it is owned. It is

owed. In January, Steransky's team

allegedly told Cecil Wright to hold off

hold off on contacting the vessel

seller, Canadian billionaire and former

hockey player Patrick Dviji uh and said

they would talk again the following

week. According to the filing, the

filing claims that by next week

Steronsky's team had already arranged to

buy the boat directly from Dviji,

bypassing the broker entirely. It was

Cecil Wright that brought the yacht to

Sterransk's attention and introduced the

Revolute co-founder and the owner.

>> Matt Young says, "Unbelievable taking

food off the table of that luxury yacht

broker's family."

>> Uh, a spokesman for the Sheronsky family

office said, "We are aware of the claim.

It is without merit and it will be

defended." He says he's not guilty.

Nixie features a private wellness spa,

indoor and outdoor cinemas, two movie

theaters. Now we're talking. As well as

a Japanese tanyaki grill. According to

Boat International, a

>> pull up this picture that Tyler just

shared. I think this is what Nixie looks

like.

>> Yeah, let's see it. Uh, when charted it,

it is equipped with a variety of water

toys, including a luxury Seabob water

sled and inflatable blob launchers. Is

this the pontoon boat? The luxury

pontoon boat.

>> Oh, sorry. That's that's the the $400

million pontoon boat that Tyler just

generated.

>> That's pretty good. I like it. I like

it. Uh, Steronsky is one of Europe's

highest profile startup founders.

Founded in 2015, Revolute is now the

world region's most valuable startup

with a recent share value uh share sale

valuing the digital bank at $115

billion. Wow, Revolute, what a tear.

Originally built around low fee foreign

currency transactions, Revolute is

widely used by international travelers

and migrants, sending remittances home,

the company gained a full UK banking

license in March after a lengthy battle.

Wow. It took them over a decade to get a

banking license. That is crazy. But they

did it after a lengthy battle. Now

they're looking to expand into the

United States, having recently applied

for a national banking charter.

>> It's crazy that they can't go faster.

Arabore got a charter so fast and then

there's been other there's been other

companies that have explored like buying

a regional bank and then using that

charter. Why? It's almost certainly part

of why Revolute is now such a massive

company because they don't have infinite

competition in the way that

>> true

>> many many banks and neo banks have here

in the US.

>> Earlier this year, Revolute reported

record annual profits and a jump in its

customer numbers. At the same time, uh

Revolute said it remained focused on its

goal of increasing its customer base to

100 million users by mid 2027 from more

than 70 million currently. Well, good

luck in the luxury yacht battle.

Hopefully, everyone gets what they're

owed and everyone is compensated fairly.

Hate to see people fighting over that.

AI's great reverse bank run. In today's

newsletter, Joe Weisenthal wrote about

Leopold's basilisk and what makes this

particular mania field distinct. People

are betting on left tail outcomes

without sacrificing the right tail of

financial opportunities. Doomers are

getting fabulously wealthy. Let's see

what he's saying. Here's the deal.

Historically, if you want to cut off

your left tail, you also have to cut off

your right tail. Or to put it more

specifically, uh if you are up big on a

stock position, you want to hedge your

gains by buying puts, you can do that.

But if you want to maintain your puts

over time, you spend a lot of money and

erase any upside gains that you might

otherwise be making. Or to put it even

more generally, suppose you're afraid of

the outbreak of war. Well, you can move

to a rural farm and grow your own food,

but then you miss out on the economic

opportunities afforded by living in the

city. People make these kinds of

trade-offs all the time depending on

what's worrying them. Pin that thought

for just a second. One of the big

questions with AI is whether it's just

another technology or whether it somehow

will be different this time. It's

purchasable intelligence kind of like

purchasable electricity or is it

something more like a sci-fi novel where

humans get replaced or eliminated in

some way as businesses the big American

companies selling AI mostly operating as

if AI is just another technology to be

developed and solved. But we know that

there's deep anxiety within the

companies themselves that AI could play

out in the way sci-fi novels have

expected for decades. And this sometimes

is reflected in their governance

structures. Here's one stylized fact

though that [snorts] might argue for the

it's different camp. If you are one of

those people who's been reading AI

philosophers and message boards for the

last decade, familiar with paperclip

maximizers since long before ChachiPD

came out, you might have deep

existential fears about something bad

happening right around the corner. You

might also have ended up very very rich.

With AI, there has been no tradeoff. The

doomers who were early on accumulating

GPUs or better yet shares in GPU

companies have done extremely well. The

put option on humanity has become the

call option on the technology. You could

bet on left the left tail outcome, not

sacrifice anything financially. We've

maybe had some shades of this before.

For a while, Bitcoin was or had

characterized as an end of the world

hedge, a form of money for when the

nation state collapsed and people made a

lot of money on that bet. But a trader

wasn't driven by the fear that Bitcoin

was a world destroyer. Or take gold.

Betting on gold at certain times

protected you against hyperinflation.

But the fear that came with the bet did

not entail gold being the catalyst for

doom. Something else would be the

catalyst, but you would be protected. AI

is different. The long- feared catalyst

for doom itself has presented an

unbelievably profitable trade at least

so far. What's interesting about this is

that uh he's sort of he's saying like

the doomers got rich. Uh there are

plenty of AI doomers who uh did not join

AI labs, did not participate

financially, worked in nonprofits, just

wrote books, worked on research, did not

ever join anything that had economic

upside. But I take his point that in

general, if you were early to this, oh

well, like things are going to get

weird, you probably were earlier on the

train. And a lot of those people that

were talking about AI and doom scenarios

did wind up working at labs that did

very well. So it's a good point, but

there are some people that that don't

fall in this category. Um, long before

we had the transformer architecture of

GPT, people have been characteriz

theorizing about the risks of AI doom.

One popular thought experiment is

Rockco's Basilisk, a 2010 thought

experiment. Wow, when was the last time

we got a new thought experiment? I

didn't know they were dropping new ones

in 2010. That seems kind of recent.

What's the most recent thought

experiment that's really taken hold and

been thoughtprovoking?

>> Golden retriever mode.

>> That's not a thought experiment. That's

an axiom. That's a that's a lifestyle. A

thought experiment is almost like a

paradox. Something you can wrestle with.

We got to come up with some new

>> I've been wrestling with golden

retriever mode.

>> You think it's a thought experiment?

>> I think you can make it one.

>> I don't I don't think it falls in the

bucket of thought experiment. What do

you think, Tyler? [laughter] No. What

are you guys laughing at? Are you doing

more more pontoon boats?

>> Crazy text. I'm trying to find the most

recently created thought. [laughter]

>> Okay, Jackson, you are correct. Yes,

that is the most recent thought

expander. Uh, good stuff. Any anyway,

uh, last story that I want to talk

about. Jordan, if you got anything, let

me know. But, uh, the founder of Bite

Dance apparently just banned his

employees from distilling US frontier

models, which begs the question, what

were they doing before? [laughter]

But uh according to this post, fears

distilling US models would trigger

Washington that there might be push back

in Washington DC over this. Obviously, a

lot of the labs, they don't like getting

distilled. We've seen all the

complaints. Um and it might put Tik Tok

at risk again. Anthropic has accused

Deepseek, Moonshot, Miniax, uh Zai,

Alibaba, all of distilling Claude, but

they haven't accused

>> I think he's doing a little bit of comms

and marketing. He said, "We we should be

willing to sacrifice some short-term

gains for longer term goals. No

distillation allowed even if we lose."

Uh interesting story. Yeah, we'll see.

Uh we'll see. Maybe maybe uh the the

distillation attacks will stop. Maybe

they will continue and abaded. Maybe uh

super intelligence can can can weed it

out if you're trying to distill.

>> Elon on the SpaceX call. It's probably

also worth mentioning that our internal

projections for reaching 1 trillion in

revenue have moved up from 2031 to 2030.

>> Mhm.

>> Uh and Ryan Peterson says, "F it. We're

making our 2031 goals our 2030 goals

now, too. [laughter]

>> I love it." Well, uh there's another

model that launched, Muse Code from Meta

Super Intelligence. Mark Zuckerberg

posted again on X the everything app.

Wait, I gotta follow him. Why am I not

following him? because it's just a new

poster now. Um, releasing Muse Code in

beta today. It's a terminal coding agent

that takes on complete software

engineering task powered by Muspark 1.2,

a coding agent, a coding focused model

update. Um, and so I'm sure people will

be benchmarking this, seeing where it

stacks up, what it uh how it how it

prices out, where it's good, where it's

bad, all those things. Uh, over in

Microsoft land, they're going all in on

uh GPT 5.6 6 soul. A m a Microsoft exec

just sent an internal memo that's

designed to end token maxing and makes

OpenAI's GP GPT 5.6 Soul the default

model for internal use. So uh that was

line one on the Ed Zitrin uh to-do list

for Sam Alman. Make sure Microsoft likes

the model [laughter] and uh seems like

mission accomplished.

>> We'll see you tomorrow folks.

>> Have a good day. Have a good Thursday.

Is it Wednesday? Have a good Wednesday.

We'll see you tomorrow.

>> We love you.

>> And we love you.

>> Flashback.

>> Goodbye.

Peace.