Who had orange in the chat because the

chat was trying to guess what color

sunglasses Jerry would be wearing today?

Is that orange or is that more of like a

burnt sienna?

>> Well, I think it's more of a green

greenish frame with more of with an

orange lens.

>> to drop the line. I'm wearing sunglasses

cuz I'm looking at the future and it's

very bright indeed. I don't know. No one

gets that reference.

>> Anyway.

>> [laughter]

>> Oh.

>> Uh

it's great to be back. It's Friday. We

got a shorter show for everyone today.

General partner Coastline Ventures

coming on to talk about their new

investment Discovery Loop.

>> Yeah.

>> Founded by none other than Jeff Dean

and some of his crew from DeepMind. And

then we have Patrick Wendell, co-founder

of Databricks,

joining to talk about their new blog

post. I promise it's going to be more

exciting

>> [laughter]

>> than it sounds like.

Um no, but they're doing smarter model

routing and uh we're excited to catch up

with him.

>> They're excited. Well, for the first

time scientists have used AI to create

entirely new viruses. You

>> You asked for it, they delivered.

They delivered.

>> Uh

>> They they woke up this You know what we

don't have enough of?

>> viruses that have never existed in

nature before. It's marked a milestone

that could accelerate biotechnology

while also raising long-term biosecurity

questions, of course. Nightmare scenario

is you go to Best Buy, you get a gaming

PC with a couple pretty stock graphics

cards, and you're able to run an

open-source model that basically walks

you through the steps of creating

something really problematic. At the

same time, there's a lot of really

talented and well-resourced

organizations that are fighting that

tooth and nail, and so we'll probably

see a little little

uh you know, back and forth equilibrium

there. But uh lots of interesting

questions. Important to note that these

viruses do not affect humans whatsoever,

even these new viruses. They target

bacteria. So, it's more of an

experiment, more of a demo, but you can

see where things are going and

are we going

>> That doesn't make me that comforted, to

be honest with you, because I because we

naturally you know we naturally have

we're there's bacteria

>> Yeah.

>> that is it's part of being human.

>> And you would like the bacteria to be

unaffected by viruses. Is anyone

standing up for the bacteria right now?

>> Well, it's more so like you have

bacteria you have bacteria in your gut

and the gut is kind of an important part

of

>> bacteria is going to be suffering from a

novel virus, apparently.

>> Yeah.

>> Uh well, in a study published Thursday

in Science, researchers at Stanford and

the Arc Institute trained an AI model to

recognize patterns in naturally

occurring viral DNA, then used it to

generate genetic sequences for brand new

viruses. After synthesizing those DNA

sequences and inserting them into

bacteria, the team found the bacteria

produced viable viruses capable of

infecting other bacteria. The work does

not create a new threat to humans. Be

careful, I'm sure that will get cut out

of a lot of uh messaging around this cuz

it sounds really scary on its face. The

AI was trained only on bacteriophages,

viruses that infect bacteria, and

specifically excluded viruses that

infect humans, plants, animals, and

fungi. As a result, the model cannot

generate viruses capable of infecting

people. While scientists have been

synthesizing viral genomes for years to

study diseases and develop vaccines,

this is the first time AI has been used

to design entirely new viruses that

function in the real world. And I was

going back and forth before the show on

is this anything special? You know,

we've been using tools to make viruses

for bacteria for a long time. This is

just another tool to do it or is this

some you know material breakthrough?

That's sort of a debate point. It sounds

really scary, but also like you've been

able to design these viruses in a lab

for a long time. So, what is the

material difference here? I think it all

comes back to acceleration and cost. If

all of a sudden it becomes a thousand

times cheaper to generate viruses, then

that could reshape biotech in a positive

way, but also have biosecurity

implications.

>> Yeah, I think a lot of the reaction is

just that it feels like a little too

soon post Wuhan, little too soon post

hugging face. There's been a variety of

events that I think

naturally make people a little

apprehensive when you see a headline

like this.

>> Yeah, a lot of people are like, you

know, the LEAs are you kowski reaction

of

like this is bad.

But we'll see where it goes. If the

approach proves effective across other

classes of viruses, it could become a

powerful tool for medicine and

biotechnology. Viruses are already

widely used as delivery vehicles for

gene therapies and other medical

treatments, and AI designed viruses

could eventually expand that toolkit. At

the same time, the research highlights

how advanced how advances in AI are

making it increasingly important to

build safeguards alongside new

capabilities, which I'm sure the Arc

Institute is working on. And there's

also other other AI driven

neo-scientific labs. I mean, Jeff Dean's

one of those was advancing one of the

goals of his new company is to work on

biotech broadly. He has a very broad

remit, but there are more narrow

projects like that new company that's

focused on finding a cure for the common

cold. There are a few other projects

that are more narrowly targeted, as well

as all the biotech companies that are

working on stuff. If we're going to get

advances in viruses that deliver gene

therapies or medical treatments, we got

to rebrand virus. We got to come up with

a new word. Just like GLP-1 peptide,

that felt very safe. It was like, you're

not doing steroids, you're not on gear.

>> What's the lizard?

>> You're doing a peptide.

>> doing Gila monster venom.

>> venom. Exactly. Exactly.

>> doing Gila monster venom, which is some

Chinese peptide.

>> The Chinese peptide was a rough go, but

in general, I think the fact that it was

like just a peptide, it felt much more

welcoming as opposed to being in the

world of the steroids, the performance

enhancing drugs, and it became easier

for people to jump in. Oh, I got to

learn about peptides. Oh, there Oh,

there's naturally occurring peptides.

Cool, I'm into that. But virus has such

a bad connotation post Wuhan as well as

just everything. You You're never like,

"I got a virus." And someone says, "A

good one or a bad one?" Like, it's

always bad.

>> Yeah. It's never good.

>> Um but so they need they they need a new

brand for that if they're going to

commercialize that for sure. But we'll

see. Anyway,

uh there's a whole article in the New

York Times about it. This AI just

created viruses not found in nature. The

new study published Thursday in Science

goes well beyond duplicating viral

genes. Scientists at Stanford University

and Ark Institute taught AI to recognize

patterns in of DNA in nature and then

use that DNA to write recipes for

entirely new viruses.

>> Viruses dreamed up by AI do not pose a

threat to humans they are all similar to

a naturally occurring virus called Phi X

174,

which can only infect bacteria. Really

hardcore name for something that's not

that dangerous. Phi X 174 sounds like a

offspring of Elon Musk. Governments and

scientific organizations have been slow

to develop guardrails that could block

the creation of a deadly virus even as

the science races ahead. So I don't

think they'll be open-sourcing this

anytime soon. But there is other news.

>> Uh Mark Gurman's been reporting on

OpenAI's first consumer device. Uh it'll

reportedly look like a hockey puck-sized

donut.

>> Gurman? The Gurminator?

>> Oh, the Gurminator.

>> The Gurminator, yeah.

>> OpenAI's first consumer device will

reportedly look like a hockey puck-sized

donut and cost roughly $300 to $400. Uh

what a funny form factor.

>> Love hockey pucks.

>> Yeah.

>> Love donuts.

>> Okay.

>> So you're in.

>> So I I like where this is going.

>> There's also a rumor that it has

mechanical pieces on it, so I think it

can like undulate potentially. The The

speculation's all over the place.

According to Bloomberg's Mark Gurman,

the Gurminator as you put it, uh the

battery-powered device is essentially a

portable smart speaker without a screen

designed to be carried around the house

or placed on a nightstand or kitchen

counter. It will include speakers and

microphones along with cameras and other

sensors that allow its AI to perceive

what's happening around it. The device

is intended to work much more uh like a

much more capable version of ChatGPT's

current voice mode learning about its

owner over time and using that context

to make conversations more personalized.

OpenAI is also making the hardware

itself feel more expressive. The device

will reportedly include lights and parts

that physically move as it responds uh

with the goal of making it feel more

alive than existing stationary smart

speakers from Amazon and Google. The

product being developed by Jony Ive's

design team is expected to arrive in

2027 and envisioned as the first in a

broader family of OpenAI hardware.

Long-term, the company reportedly hopes

to develop AI devices capable of taking

over some of the functions now handled

by smartphones. Jordan.

>> Feature request.

>> Yes.

>> Going flashbang.

>> Flashbang.

That'd be a good feature request.

>> Yeah, it says it has lights, it's got

sound. You should be able to use this as

a on-the-go flashbang.

>> Yeah.

>> Let's say you're going to hang out with

some friends.

>> Yeah.

>> You want to prank them a little bit when

you're when you're kind of coming in.

>> Yeah, I I do I I I I was reflecting on

uh the the the DeepMind story of uh you

know the departures there and the

question of, you know, how the models

are progressing versus the

commercialization of those models.

There's some real strong points, there's

some weaker points within the uh within

the rollout of uh Google's AI strategy.

And I was I was thinking about like what

happened to NotebookLM because that was

heralded as a very magical technology.

You would uh

you know, give it some sources as a

particular report uh and it would just

generate a podcast talking between two

different people uh much more

conversational. And a lot of people like

consuming information that way. So, you

could just go read a deep research

report on the history of, you know, how

uh bacteriophages work if you want to

get up to speed on that because you're

going to you're trying to understand

what's what the Arc Institute is working

on with these new viruses. Uh you could

go to Notebook LM and say, "Hey, uh why

don't you generate me a podcast of, you

know, two scientists explaining this at,

you know, uh the high school level and

then take it into college level."

>> Tyler in the YouTube chat says, "Nut

loves Notebook LM. Use it weekly."

>> Uses it weekly.

>> I always thought that I would have used

it when I was in college.

>> Yeah.

>> And I needed to, let's say, write a

paper on something and I wasn't super

prepared. I could say, "Generate me an

hour-long podcast about this set of

topics."

>> Yeah. And I'd listen to that and then I

could probably

>> Yeah.

>> rip the paper.

>> Yeah.

>> I I did that for a history exam. I

I it was like a vocab lesson and went

through

>> Okay.

>> Yeah, Middle Age history, I think.

>> Wait, oh, you used Notebook

[clears throat] LM?

>> Yeah, it generated podcast. So, I I

basically fed in a vocab list or like

dates and various things. Then I had it

>> Wait, and was it just a general podcast?

>> Uh it was really easy. I think I

probably aced it.

>> Wow.

>> There [music] we go.

He needs a better confidence monitor.

I'm a big fan of that new uh trend

that's like uh asking old people, like,

"How did you write a five-paragraph

essay without AI?" And then the answer

is like, "Buddy, we didn't even We We

wrote a five-paragraph essay without

even reading the book."

>> [laughter]

>> Cuz you just go to SparkNotes or

something. But, I was I was interested

in in the evolution of Notebook LM

because it's this like there's this

collapsing of capabilities where uh Sam

Altman was recently sort of dragged a

little bit for saying like he would use

chat GPT work to generate a podcast

about what's going on in his calendar

and the family life and stuff. People

are like, how about you just talk to

your kids? But

the the more interesting technical point

on that is that do you even need chat

GPT work to generate you that podcast or

will the voice mode and the memory

feature have enough context to just sit

there and talk to you like it's a

podcast on the fly.

>> Like live voice.

>> Yeah.

>> If you're trying to learn about a topic

for example.

>> Pretty good.

>> Is probably better than just generating

a podcast cuz a podcast assumes like

some certain understanding. Maybe it's

Maybe maybe it thinks you understand too

much too little. Whereas voice you can

be like go down this like

>> Exactly. Exactly. It's a choose your own

adventure. It's a It's an expert call.

It's uh instead of notebook LM, it's

Tegus LM something basically. I mean

you're talking to an expert and you can

just guide the conversation wherever you

go. So we'll be interesting to see where

this goes, what the reception is like.

I mean huge huge delta [clears throat]

divergence between like the the social

media pushback for chat GPT versus like

the App Store ratings. Like there's like

a billion people using it. A lot of

people just like the product and then

they'll be like someone dunking on it to

the tune of a million likes on

Instagram. And so what how do you

measure those two things when it comes

to an actual consumer product? If it's

delivering something good, if people are

like if the if the stated preference is

like I don't like AI, but the revealed

preference is like it's kind of nice to

have this thing around the house. It's

kind of useful.

Um interesting to see where it goes. The

launch of this device will be

very very interesting to see like how

things come together. Like you can see

the chat GPT work, chat GPT Codex, chat

GPT like coming together into one

product. But there's a world where this

product launches with voice mode and

it's not really capable of linking to a

cloud Codex instance and writing you

software and doing the more advanced

things that are required just to

accomplish some tasks. Like you can go

to chat GPT and ask it to pull down an

image from the internet, restyle it,

change it, but you can't really tell it

to do like 40 of those or like every day

forever do a whole host a whole

workflow, but you can in Codex and you

can talk to Codex, but it has to be

running on a computer and and and I

would hope that by the time this

launches there's

full like full context. Like I I was

doing some work in Codex and I had the

output and then I wanted to like

generate an image based on that and take

it on the go, but I wanted to be able to

close my laptop and not and still be

able to access it. So I had to like copy

the context window into chat GPT just

the normal app. So then I could like

access that information and continue to

transform it. Uh and that was something

that is like a very very temporary

thing. It feels like it's going to be

fixed in like a couple weeks, but

there's a whole bunch of these little

minor integration issues that probably

need to be fulfilled before this product

launches and delivers like the full the

full capability of what you can do

because so many things so many tasks

instead of just knowledge retrieval

require actually

firing up a browser, scraping it,

writing some code, downloading things,

you know, setting up an actual service

and and workflow as opposed to just

something that can be done within the

context window of a single LLM

interaction. Last top story, a New

Mexico judge has ordered Meta to pay

more than 900 million dollars and impose

new restrictions on how minors in the

state use Facebook and Instagram. This

is a continuation of the social media

addiction. If you're watching this clip

on Instagram, let us know in the

comments, are you addicted to TVPN reels

on Instagram?

It's not our fault. Apparently it's

apparently it's Facebook's fault. If If

we If we got you hooked on this stuff.

The ruling requires Meta to establish a

$567

million fund aimed at addressing harms

linked to its platforms on top of a $375

million

in civil penalties previously awarded by

a jury. So, they're up 900 million.

They're very close to a billion dollars,

and the numbers are going to get bigger

from here.

>> Yeah.

>> At least At least they're going to try.

>> Okay. So, last time we really covered

something from this ongoing saga, there

was a verdict on March 25th. A Los

Angeles jury found Meta and

Google/YouTube negligent for designing

platforms harmful to young people.

A woman who said she became addicted to

social media as a child was awarded 6

million, 4.2 million against Meta, and

1.8 million against Google. And And

again, at the time, we had this a lawyer

on who was giving his opinion. He was

like, "This is just the start." And

we're like,

>> I was like, "No way."

>> The jury has has has a verdict.

>> Yeah.

>> To say, you know, talking to the biggest

companies in the world, you must pay $6

million,

right? And it's like this tiny amount,

but it was to one person, right? And so,

you can imagine as these cases evolve,

um this this new one is in New Mexico.

>> not the biggest state in the union. It's

not the

>> But there was also one in

uh in May 2026, so just a couple months

ago, for 9 million

uh to a school district in Kentucky.

>> Yeah.

>> Same sort of issue. Uh the lawsuit

accuses Instagram of deliberately using

addictive features that contributed to

anxiety, depression, self-harm, and

other problems among students, forcing

schools to spend more on mental health

services. The district had sought more

than 60 million, and I guess the total

payout was 27 million because it was

split between YouTube and TikTok and

Snap.

Um And in that case, there was no

admission of liability and no required

product changes. So, I think it's time

to start thinking about what the the

sort of battle that social media has

ahead of it kind of in in cigarette

terms. Tell us about uh

>> Tobacco Master Settlement Agreement?

>> Yeah, exactly.

>> So, the the tobacco companies

wound up getting sued individually uh

initially and there was there were a

whole bunch of court hearings very

similar to the Senator we sell ads

moments. Um

uh but uh more focused on the

cancer-causing nature of cigarettes. And

the question was like

who is ultimately being harmed

economically? And you would think it's

obvious. Uh the person that saw an ad

that made smoking look cool. They picked

up a pack of cigarettes. They started

smoking and then they got cancer and

their life was cut short. They are the

victim. They should be paid by the

tobacco company. That's what would be

very logical. Uh that's not what

happened. In fact, the Tobacco Master

Settlement Agreement uh landed in 1998

and it was an agreement between all of

the major tobacco companies. There's

more nuance to this. One of them broke

loose and like testified against the

others. It's crazy story. But that's for

another time. Uh in 46 states

>> I'm the good cigarette company.

>> Basically, yeah. And so they don't have

to pay. They're not part of the

settlement so they don't have to pay

because they basically snitched on all

the others. It's crazy.

>> Are they still in business cigarette

company?

>> They're doing great.

>> Who are they?

>> Look at Victor.

>> I've never heard of it.

>> Yeah. Uh

>> Last name Victor?

>> Yeah, they were literally the first

>> They won. Yeah. There's more nuance to

it than that. But uh but that's like one

way to tell a story. Anyway, uh so a

bunch of the big tobacco companies

versus uh 46 of the United of the US

states, the District of Columbia, and

several territories. The states agreed

to end major lawsuits against the

tobacco companies. So the same thing was

happening where all the different states

were suing and they were suing because

the negative externality of cigarettes

causing cancer was driving up medical

bills in the state. So, the states have

health care and they assume, "Hey, okay,

we're going to spend this much on

doctors, this much on radiology, this

much on x-ray equipment." And then all

of a sudden they're starting to look at

their populations and saying like,

"Wait, everyone's getting lung cancer.

We're not equipped to deal with lung

cancer. We need to hire a way more

oncologist and cancer doctors who

specialize in lung cancer. We need

equipment. We need drugs that treat lung

cancer. We There's a whole bunch of

other things that we have to spend money

on." And so, you got to pay us because

you, the tobacco company, are

responsible for us running out of money

for our health care system. And so, that

was the nature of these like the battles

between the states and the big tobacco

companies. It You would think it would

be the individuals who got the cancer.

That would be very logical, but that's

not actually the structure of this deal.

And so,

in return, uh all the states said, "Hey,

we'll drop all those lawsuits. You won't

have to We won't be nickeling nickeling

diming you across every single state.

Instead,

the the companies will uh make large

payments uh and follow new limits on

advertising and business practices. So,

the end result, the headline number is

206 billion, uh which feels like small

relative to today's standards of like

hyperscalers and social media. Facebook

generates roughly 200 billion in revenue

every year. Although, if they got hit

with a 200 billion-dollar fine, that

would be existential. But, uh

what happened with the master settlement

agreement with the tobacco companies was

that um there wasn't just one fixed

payment. Instead, they created a system

of annual payments that continue

indefinitely. They will actually have to

pay forever as long as they are in

business. They have like effectively a

special tax paid to them. And the amount

changes based on cigarette sales,

inflation, market share, and other

other adjustments. So, if cigarette sale

sales fall, the total payments usually

fall. And that's a big uh reason why

there's like a shift to non-cigarette

products.

>> Well, and that just naturally makes

sense. If less people are buying

cigarettes, less people are going to

have health issues down the

>> Exactly. Exactly. So

>> Yeah, so so I so I brought it up because

I think that we could be heading in that

direction with social media.

>> There's also a fascinating dynamic

because these states now have an

indefinite revenue stream that will be

paid to them. And you can model that out

financially and you can financialize it

and a lot of people have. And so

investment firms and banks and and

financial institutions have come in and

said, "Okay, you are the state of

New

New Mexico, for example, and you are

expected to get

300 million from big tobacco this year

and then next year we think it'll be 297

and then 298 and then and then it'll go

down and we can model that out and we

can just give you $4 million right now

in exchange for that revenue stream or a

piece of that revenue stream and then

those states can take that lump sum of

cash and build a new bridge or something

like that, whatever they need to

whatever they need to do. So there's

been a lot of financialization

>> on top of it. Each tobacco company pays

a share of the total amount. Its share

depends mainly on the share of cigarette

sales among companies that participate

in the MSA. The settlement then divides

the money among states using fixed

allocation percentages. Some states

later borrowed against these future

payments by issuing bonds backed by MSA

revenue. The MSA also limits tobacco

advertising and marketing, especially

marketing that could reach children. In

simple terms, the agreement created a

permanent system that major tobacco

companies received protection from many

state lawsuits while states received

continuing payments and new enforcement

powers. The result is not just a legal

settlement. It created this long-term

financial and regulatory structure built

around cigarette sales. And it's now the

10-year anniversary of starting Lucy.

>> 2016, August 8th technically was the

day.

>> New regulation.

>> You know what I'm going to hit.

>> Overnight success.

>> Yeah, for sure.

>> The exact opposite, slaving away for

years in obscurity.

>> But very very interesting very very

interesting

uh in

>> to have operated in for as long as we

have.

>> SemiAnalysis

chimed in on the deep not deep mind

news. Not just chimed in.

>> I think the term is posterized.

>> Grave digging?

>> No, not a grave dancing.

>> No, they're

>> Grave digging. They're digging the

grave.

>> They're digging [laughter] for for

DeepMind.

>> And then they're And then they're

dancing on it at the end.

>> Uh anyway, SemiAnalysis says, "For all

intents and purposes, we believe

DeepMind is no longer a frontier lab due

to large numbers of departures from

their RL teams and poor compute

allocation. Google will continue

continue meandering on and releasing

models, but their odds of ever reaching

state-of-the-art again have dropped to

zero."

>> [laughter]

>> Oh.

Damn it. Google is now simply unable to

retain top AI talent. Again, this is

what I was saying the day that the news

broke. It's like researchers want to

work with great researchers, right? And

so, uh the more talent density you have,

the easier it is to recruit. Yeah, Noam

leaving

>> Yep.

>> earlier was like a canary in the coal

mine. Obviously, these are not the

actions of people excited about Gemini 4

Pro.

>> Mhm.

>> Uh Jeff, Sanjay, Quoc, and Oriol are

just the latest in a long string of

high-profile departures from DeepMind.

Jeff [screaming] Dean

Jeff Dean is the undisputed goat of

Google engineering, co-founded Google

Brain, and started the TPU program.

Google, on the other hand, decided it

was totally worth it to sell enormous

amounts of compute to Gemini's fiercest

competitors on long-term contracts

without any hope of ever returning it to

DeepMind.

More than 20% of total TPU ship-

shipments from

uh third quarter of '26 to fourth

quarter of '27 are being sold directly

to Anthropic.

>> Wow.

>> The issue with Google was not Jeff Dean,

nor nor Noam Shazeer, but rather their

extremely bureaucratic, painfully slow,

and strategically timid culture. Google

will join the ranks of other legendary

tech giants like IBM and Intel to give

up on the harder thing

>> So aggressive.

>> and the thing that will make you more

money. Becomes demoralizing as many of

the great technology leads have left.

And take him taking a victory lap. He

wrote a

piece on July 21st. Google is a secular

short kind of getting at a lot of these

issues. So

>> Brutal brutal stuff. This is insane.

On the other side GCP is working. GCP is

basically a money printing machine. No

wonder Google executives are choosing

GCP over Gemini. So although EBIT

margins for these system sales are

slightly lower than core cloud margins

in the low 30% range, we still expect

total GCP to deliver mid to high 30s

EBIT margins going forward. How

investors decide to capitalize the

current TPU backlog and any large future

sales is an open question. However,

given the strong compute demand from the

labs we expect more multi-gigawatt deals

to be announced soon adding to this

backlog. In all we estimate that over

250 billion additional TPU bookings

could be added to GCP RPO in the next

coming quarters from semi analysis. Very

interesting. I mean there there is like

a like a positive spin on this which is

like they seem to be really good at chip

development, really good at cloud like

focus where you're where it's working

and you don't have any tensions there

because you have excellent teams and

then you have the ability to underwrite

that build out with the cash machine

that is Google search and

and YouTube and their ads products and

um

and having more of this like barbell

approach as opposed to playing in like

the middle race is maybe the maybe

ultimately the right thing to do. There

are plenty of hyperscalers that have

lived that and are doing very well on

the back of it. Like Microsoft Amazon

for example, they've been partners to

labs at various points and and are very

good at building data centers, very good

at at scaling and have not tried to

really

go on a crazy poaching race and

amass the the the the dream team and you

know, they've been rewarded for it. So,

>> Yeah. Yeah. Still wild series of events.

They obviously had effectively a version

of ChatGPT internally. They didn't ship

it. Tibo, who's now running chat codex,

>> Yeah.

>> was there working on that product, which

is really wild. It just seems like

Google leadership has a very different

idea of like where value accrues in AI

than like Demis or like the other labs,

right? It's like it's not actually like

the model itself.

>> Yeah.

>> It's it's the the like infrastructure,

GPUs, cloud business.

>> It's interesting cuz you can run back

the old Demis quote about like he went

when he was selling DeepMind, he talked

to Mark Zuckerberg and he's like, "What

are you excited about in the future? Are

you excited about AI?" And Mark

Zuckerberg apparently, according to this

exchange that Sebastian Mallaby reported

on, Mark Zuckerberg says, "Oh, yeah, I'm

super excited about AI." And then Demis

is like, "I'm going to test this guy.

I'm going to see if he's a true

believer.

What do you think about VR?" And Zuck's

like, "Oh, VR is like equivalently as

big." And then Demis is like, "No."

>> said that. He was just equivalently as

excited.

>> Yeah, yeah, excited. And he was excited

about a few other things. And Demis was

like, "I want to be with someone who's

like all in on AI as a fundamentally

different technology, not a normal

technology, not like VR, not like new

devices, not like electric cars, not

like, you know, satellites in space. It

needs to be considered as a completely

separate development, a completely

separate technology."

>> Yeah, like I I don't know if if Sundar

like believes in RSI. It seems like he

doesn't think that that's like really

going to

>> So, the point is that Demis should have

probed more and said like, "Well, how

excited are you about cloud?

How excited are you about

AI overviews? And if Sundar it wasn't

Sundar back then, but if Google was

like, "Oh, yeah, we're we're

equivalently excited about cloud

infrastructure as ASI, then that should

have been Demis's

moment to be like, "Ah, maybe I

shouldn't only

>> The only thing is there's a world where

he's actually so RSI pilled that he's

thinking, "Okay, it's over for us. I

need to back up the Brinks truck and

help help Anthropic, right?" Putting

together this like, you know, almost a

quarter of a trillion dollar financing

package.

>> Yeah.

>> Um and variety of data center guarantees

to enable uh Anthropic to scale up even

though they don't have, you know, really

uh access to the debt markets in the way

that Google does. Google's ownership in

Anthropic is capped at 15%.

>> They I believe have roughly 14%.

>> Weird. Why Wait, well, how's it capped?

>> Anthropic just didn't want

>> Oh, we don't want you to have 90%.

>> don't have any voting rights. They don't

don't even They're not even a board

observer. They don't have a board seat.

They basically are just a purely

financial backer.

>> branding mogul's Miami Beach home lists

for $68.5 million.

Branding mogul Nick Woodhouse was sail

was sailing around Miami for his

birthday in 2019 when he realized that

he found his new home. Turning to his

wife, uh Jocelyn Woodhouse, the

Canadian-born businessman said, "We have

to live here." It wasn't long after

relocating from New York in 2020 that

the couple, then living in a condo on

Sunny Isles Beach, Florida, saw a

waterfront lot on a guard-gated La Gorce

Island. Is that how you pronounce it? La

Gorce-e? I don't know. Island in Miami

Beach from a friend's boat. The property

had the foundation of a house that was

just starting to be built. The

Woodhouses purchased the partially built

home for $17 million in 2021 and

completed construction of the roughly

8,800 square-foot seven-bedroom

contemporary house around 2023. It's a

0.4-acre estate and they're selling it

for 68.5

because they're building another home

nearby. Um Nick is the former president

and chief marketing officer of Authentic

Brands Group, and that's why I wanted to

talk about this cuz Authentic Brands is

a very fascinating company. Uh Tyler,

you have something here?

>> Yeah, so it's pronounced Legor.

>> Legor.

>> Thank you.

>> Legor. Well, Authentic Brands Group is a

very interesting lifestyle platform, I

guess. I don't know exactly what you

would call it, but

>> They have some They have some truly tier

one assets.

>> They own more than 50 consumer brands as

well as likenesses and estates of

celebrities including Muhammad Ali,

Elvis Presley, and Marilyn Monroe. But,

what stuck out to you?

>> at the top. Cream of the crop. They own

Tapout.

>> They do.

>> brand.

>> Tapout tees.

>> And if you guys ever run into John on

the weekends, he's almost certainly head

to toe Tapout.

>> one of their first purchases. Silver

Star and Tapout. In January 2011, they

acquired the rights to the likeness of

Marilyn Monroe. So, if you see Marilyn

Monroe on a t-shirt, Authentic Brands is

getting a check.

>> UCA, the surf brand. They own Neiman

Marcus. They own Prince. They own

>> Brooks Brothers.

>> Good, man. They own DC Shoes.

>> Yeah.

>> Tyler, I know I know you're still You're

pretty much head to toe Volcom at all

times. Volcom, maybe some Billabong

thrown in there. Well, they also own

Billabong.

>> Anyway, Nick is the former president and

chief marketing officer of Authentic

Brands Group, a licensing and managing

company that works with companies such

as Reebok, Champion, and Brooks

Brothers.

>> T Z H says ABG is a graveyard for iconic

brands.

>> It's the bending spoons of brands.

>> No, it really is. I mean, it it's

somewhat sad because a lot of these

brands are so so iconic and with the

right sort of management and investment,

they they would be uh back to their

former glory. I the a lot of the surf

brands and the skate brands are

a little sentimental for me just because

I grew up watching so much of the

content that those brands put out and

and following the different uh athletes

uh on their teams. Those industries have

just been impacted surfing most

aggressively just because kids that

don't live by the ocean now, they don't

really care about surfing.

>> Yeah.

>> They care about Chrome Hearts.

>> Mhm.

>> And so

>> Do you think the surfing industry needs

a federal backstop?

>> I would push for one, certainly.

>> Yeah.

>> Yeah.

>> Couple of couple billion dollars from

the treasury directly to

get Volcom

>> Quiksilver, Billabong

>> Quiksilver back

back to the top.

>> Roxy, we're on to something here. This

is our new platform.

>> I think so. Okay.

>> We'll be back in the UltraDumb. We're

going to have a lot of coverage this

weekend, too. Around

>> You you may have been seeing some of our

Getty images.

>> Yeah.

>> You might be seeing some more.

>> Yeah, we're working on it.

>> We'll see.

>> But, have a great weekend.

>> We'll see you Monday.

>> See you Monday. Leave us five stars on

Apple Podcast and Spotify. Sign up for

our newsletter at the 5pm.com. Goodbye.