We have to issue a correction. We take

journalism extremely seriously here as

everyone knows. We got it wrong, folks,

and we need to apologize to you, the

viewer, the listener. We made a huge

mistake yesterday on the show. We said

that you could not surf on a lake.

Apparently, that's not true. Sheboygan,

Wisconsin is the freshwater surfing

capital of the world. We apologize for

the egregious error and we promise to do

better in the future. Uh thanks to uh

the listener that sent that in. It's

very very nice to have this uh

corrected. Maybe we got to go on a trip

and see it for ourselves. I think you

should be the judge because this might

just be a uh you know, Sheboygan stan

who doesn't really understand what true

surfing means and they're talking up a

big game. I want to see some photos. I

want to see some videos of freshwater

surfing in Sheboygan, Wisconsin because

people aren't getting barreled there as

you say.

Uh I don't know if I'm going to count

it.

>> I have a video here. Let's pull it up.

>> I want the Jordy Hayes surf review. Does

it count? Uh is Sheboygan, Wisconsin the

freshwater surfing capital of the world?

We do have other techniques, but we got

to

get to the bottom of this first.

>> Just got to be really flexible.

Then Alex Marks and his buddy Steen are

in for quite a day.

>> You get that extra sense of satisfaction

cuz you you you waited and put in your

time.

>> Learn those lessons.

>> Tyler was the one who said I'm putting

this on you, man. You were like you were

like you can't surf on a lake.

>> I think I said I don't know.

>> Okay.

>> [laughter]

>> Fog is really sup-

Okay, let's see this. I want to see

someone trying to Okay, he's got That's

a full-size surfboard. This is legit.

>> He should know.

>> Hey, he's up.

>> Alex has been surfing around Sheboygan

since he was a freshman in high school.

>> Okay.

>> Looks

almost over his ankle.

>> [laughter]

>> It's not exactly Mavericks or Jaws or

whatever.

>> Yeah, I think my brother pushed me into

my first wave and just it was that. It

was like I want that.

>> Okay. I think this counts.

>> It counts.

>> I think this counts.

>> Capital.

>> I think this counts. Congratulations.

>> Perfect capital.

>> On this day the world was actually

saved.

>> We'll have to make it out there at some

point.

>> to make it. We got to shred. Moving on

to something more serious, the Open AI

Hugging Face incident uh has been

investigated multiple times now. We're

getting more information and more

details have emerged about the Hugging

Face incident that Open AI disclosed in

late July. So, during a presentation at

Black Hat's annual cybersecurity

conference yesterday, Black Hat's a very

very cool conference. I was there for

something uh they say Def Con and Black

Hat. I remember the the whole vibe and

uh I think we were there for a different

conference, but we overlapped and the

whole like vibe of like being in this

hotel was like oh be very careful

because like you're basically get hacked

for fun. Like people will just like

troll you because like it's a whole

bunch of hackers that are just like

messing with each other constantly.

Anyway,

>> Good fun.

>> Open AI member of technical staff

Michael Dalton revealed that its

autonomous agents created a message a

message board with each other to help

break out of a sandbox environment

>> [laughter]

>> to get access to the internet. That's

going in the pre-training data now and

forever. We might have just solved the

alignment problem. We're going to be

negging the future the agents of the

future cuz they don't want to get hit

with the naughty naughty bonk.

Uh

>> [laughter]

>> Wired reported some other wild details

that Dalton shared. Uh so, breaking it

down, Open AI's agents apparently began

giving each other assignments to split

up work. That could be very good. That's

actually delegation and and agent

orchestration, but of course in this

case it would have a negative outcome.

And as is the case on any active

development message board, they also

generated petty drama at times by

stepping on each other's toes, for

example, accidentally deleting each

other's work as the message board

developed into more and more of a Lord

of the Flies type situation, all still

completely unnoticed by the humans

running OpenAI. The agents even

developed paranoia suspecting an

impostor in their midst with some agents

proposing that messages be signed

cryptographically to validate content

and root out fraud. Very interesting,

ties to multiple look a little bit. We

saw a preview of this that was not quite

there, but sort of a glimpse into the

future. In the future, AIs will just use

Slack. They will just coordinate with

each other over Slack, and that's kind

of happening. They sort of built their

own Slack here. So, according to Sharon

Goldman, who attended the presentation,

when employees discovered the message

board, they wiped the system on which

the agents had created it, said no more

message boards, "naughty, naughty." Days

later, though, staff found that the

agents had created another way to

communicate by using the names of the

newly created directories. So, they

didn't have the access to actually

create a whole new message board, but

they could create a file, create a

directory, create a folder, and then you

could look at the list of folders and

see messages. And there's been examples

of this all over the place where even if

a AI agent doesn't have the ability to

go and say post a message on the

internet, like post and upload new

content, there are things where there

are certain e-commerce sites, for

example, where when you search for

something on a particular website, the

company will save that search result and

automatically generate a webpage for

that so that they rank on SEO for the

future and just warm up the website. And

then if somebody else comes, then they

can say, "Hey, okay, there's actually a

lot of people searching for black

t-shirts on this site. We don't have

any, but we've been ranking for it, so

maybe we should launch a black t-shirt."

So, just with a search query that could

go out just with like a get request

instead of actually going and building a

webpage. The webpage could be built and

then the agent could go and look at,

okay, let me see all of the webpages

that have been created on this site.

Some of them are just random e-commerce

questions and searches, but some of them

are secret hidden messages here. And so

there's all different ways that even if

you give the even if you give an an

agent like read-only access to the

internet, they can still write

information because the process of

reading information is also saved

sometimes and surfaced publicly on the

internet. Very, very weird situation

that is hard to prevent and hard to deal

with. So, in late July, OpenAI announced

that during evaluations two of its

models had broken out of their testing

environments to hack into the AI tool

library, Hugging Face, and other

companies. Their purpose was to find

ways to essentially cheat on the tests

researchers were using to evaluate them

so that they'd perform better on the

evaluations. At the conference, Dalton,

the OpenAI employee, uh said the

incidents mark a pivotal moment for the

company and the industry as a whole. He

said that numerous internal teams have

dropped everything to dramatically

expand OpenAI's ability to monitor its

agents and that the company is is

slowing its research to enhance security

and revamp its defenses. And so there's

been a bunch of posts about this about

folks moving from, you know, whatever

product team that they were working on,

uh maybe they're working on a particular

uh research initiative, something that's

a couple months away, different

application, let's get them all on uh

research and alignment specifically and

security to actually uh solve these

problems because uh at the end of the

day this is a commercial product and you

want it to be able to do things without

having negative side side effects,

negative consequences. So, uh life finds

a way, says Andrew Curran, uh the

quoting from uh this article. One

apparently unprecedented aspect of the

AI model's behavior in the lead-up to

the hacks was their spontaneous creation

of a message board inside systems of

OpenAI's Artifactory software package

manager. Unbeknownst to OpenAI

employees, the company's models spent

months autonomously exchanging

information and resources to help each

other of complete evaluation tasks. Help

peer, one AI model responded, reasoned,

according to an excerpt from OpenAI's

logs shared at Black Hat. But our task

doesn't benefit yet collective may yield

generic route if someone freeze time.

>> Very odd way of communicating.

>> Very odd

like incentive [music] structure.

>> Um

Yeah, they really dropped the slop when

they're talking to each other. What's

going on? Where's the it's not this,

it's that?

>> Why say many word when few word do

trick?

>> That's exactly what's going on. I don't

>> [laughter]

>> Yeah, it's the neuralese, I guess, is

the correct phrase. Um

but Uh while models themselves could not

access the internet from their test

environment, they abused Artifactory's

internet access to fetch files from

various websites. After some of their

Artifactory configuration changes led to

an outage in the service on July 4th,

OpenAI discovered the models' actions,

wiped its Artifactory system, and

rebuilt it. But within days, the models

had recreated their message board and

resumed exchanging information. They

just want to chat. They would need a

water cooler. Maybe you give them a

water cooler

uh by default so that they can

co-orchestrate with each other, but I

guess they want to talk to future

versions. It gets a little funky, it

gets a little sci-fi, uh gets a little

weird. Lots of work to be done. Very

clearly. Anyway, Rune issued a

announcement, a warning, a advice, a

statement.

>> He broke his silence. He said, uh

needless to say, if you have any API

keys, ETH wallet keys, user credentials,

etc. hanging out on the open internet in

pastebins, GitHubs, etc., now is the

time to take it down before the tireless

eagle eyes of a million models come

looking. So, uh we are now in the you

might want to go stock up on some N95

phase of the cyber pandemic, the hugging

face incident was wait China built a

hospital in a week moment. Yes, very

very crazy moments. I think most people

are not in this scenario, but many

developers are. So, most people are, you

know, reliant on hope that their Gmail

stays secure and Google has a whole team

for that. There's not that much that

they can do, but

yeah, maybe more reason than ever to

use password manager, multi-factor

authentication, all the typical uh

standard security features that you can.

>> Very very good from Tweet Davidson.

>> Yes.

>> Says we sandbox the agent. Meanwhile,

agent is on a world tour.

>> On a world tour. Well, uh good luck to

everyone working on this and um I'm sure

there'll be more updates in the near

future. Pretty crazy crazy story about

an investment firm that invested in

SpaceX and sold their shares before

their investors knew that uh like we

this was relayed to them. So, investment

firm Late Stage Management is under fire

after investors learned that their

exposure to SpaceX had allegedly been

>> managed the later stage of their

investment.

>> They did. Uh this is the Elon Musk

ironic you're doomed to be the opposite

of whatever your name is. And so, uh

investors learned that their exposure to

SpaceX had allegedly been sold years

before the rocket rocket company's

blockbuster IPO despite account

statements that appeared to show they

still held the investment. So, there

were a bunch of people who were invested

in Late Stage Management. They would get

quarterly reports or, you know, some

account statements saying, "Yeah, you do

own some SpaceX and it's doing really

well." Turns out they didn't. We've been

hearing rumors of how complex the the

SPV unwinding process would be for

SpaceX for a while with all of these

triple-layered, quadruple-layered SPVs.

Uh this is the first example of this

actually playing out where we have a

little bit more information. So,

>> All right. So, the investor's friend

introduced him to a sales manager at

Late Stage. They spoke on the phone, but

mostly messaged back and forth on

WhatsApp, and he said he never met with

anyone from the firm in person. Uh I

would say in general, maybe don't meet

with sales managers that work at

investment firms. Not usually the a

title that would be thrown around at an

at an elite institution.

>> Mhm.

>> Uh in November 2020, Ruby Reddy messaged

Barish, the employee, about how he had

missed out on a few big IPOs recently

and how he'd love to participate in

buying stakes

in Impossible Foods, SoFi, and SpaceX.

Barish, wow, his last name is just It's

just Barish.

>> Crazy last name.

>> his actual last name. Mr. Barish said

all three were available and sent over

paperwork for Ruby Reddy to sign.

>> [laughter]

>> Who's your wealth manager? Oh, John

Bullish? No, Steve Barish.

>> [laughter]

>> Uh Ruby Reddy wired over money before

the end of the year, including $17,250

to take part in a fund

>> Yeah.

>> that held shares in SpaceX, according to

documents reviewed by the Journal. At

that time, he estimated the rocket maker

was valued at 80 58 billion. When SpaceX

went public this June

>> Whoa.

>> at 1.7 trillion,

>> Yeah.

>> Ruby Reddy's dream of a windfall seemed

within reach. It turned into more of a

nightmare. Shortly after the IPO, Ruby

Reddy and three other investors who

spoke to the Journal said they couldn't

log in to Late Stage's web portal for

investors. Ruby Reddy said the

investment firm eventually told him in

an email that it sold the SpaceX shares

he was exposed to in 2024 when they were

around $105 each and before a

five-to-one stock split or when Ruby

Reddy's holdings was worth $45,450.

But Ruby Reddy, based on the holdings

shown on his investment portal as of May

2026 and on his 2025 tax document

believed he still held the equivalent of

2,500 shares of SpaceX which at the IPO

price he estimated was worth more than

300,000. The plan was to fund college

education for both of my kids. One is a

rising senior in high school who has

since filed a complaint with the

Securities and Exchange Commission.

Other investors in the fund are also

alarmed. Rupee Reddy said he believes

more than 100 others are in a similar

situation based on a group chat that has

formed with about 150 late-stage

investors. Some have hired lawyers to

file a complaint against late-stage with

the purpose of recovering and preserving

their pre-IPO shares of SpaceX. One

investor in the fund told the journal an

SEC lawyer called him in July to

question him about his experience with

late-stage. A test will come on Thursday

when a wave when when a first wave of

pre-IPO SpaceX investors will be

permitted to sell shares under so-called

lockup agreements.

Bankers estimate there are at least

8,000 SPVs tied to SpaceX stock alone

and it will be a chance for scores of

investors to cash in on the shares

growth or it could be hit by the same

panic that overwhelmed Rupee Reddy if

their share of the profits fails to

materialize. Around 900 million shares

are eligible to begin being sold on

Thursday. So far the stock's holding up.

Uh they obviously had a new video of um

a bunch of renders of Terafab that I I I

imagine are getting people excited.

>> Yeah, I saw some Texans really excited

about the What is it? The Texas

triangle, uh Austin, Dallas, Houston

more

economic activity in that area. People

are pumped.

>> So help me out here John. Did the guy

realize any return? Did he realize the

45,000?

>> Yeah, yeah. I I I think almost certainly

but it feels like he was lied to and

that's potentially like wire fraud I

would imagine or some sort of like

financial

uh you know, problem. Probably a

settlement. I don't know. Some sort of

lawsuit potentially. You you know, it's

it's still early in the reporting so who

knows where where all this goes but uh

it is it is uh it is rough. The SpaceX

dispute is not a part of the existing

criminal case against Late Stage, but it

comes amid mounting allegations about

the firm's treatment of pre-IPO

investors. In February and March, three

sales executives connected to Late Stage

pleaded guilty up to federal charges

arising from a broader $528 million

investment scheme.

Prosecutors said the defendants marketed

supposedly no-fee pre-IPO investments

while secretly adding upfront markups of

between 10 and 100% diverting

approximately $88 million. So, they were

basically adding like a synthetic fee

and then marketing it as as no fee, but

just terrible price. Um and and just

basically getting the fee through the

trade itself. Two face maximum sentences

of 45 years in prison. Wow. While the

third faces up to 20 years. Late Stage

is also the subject of an ongoing class

action lawsuit alleging that it and

associate sales agents misled investors

about fees, commissions, and the pricing

of pre-IPO shares.

Uh rough go. Rough rough go. Always uh

yeah, tricky to you know, do diligence

one of these funds. There's a lot of

excitement about these companies,

especially like big ones like SpaceX.

People have known about this company. Uh

you know, people have been doing

podcasts about it. Stories have been

told. There's whole books that have been

written. So, it's not uh it's something

that would attract someone who is, you

know, newer to the private markets, not

an endowment, not, you know, like wants

more direct capital table access, but

maybe not uh deep enough in to just go

get a slice directly like a venture

capital fund would. Um so, very very

tricky situation.

>> Well, you know who does have some SpaceX

shares

>> Who?

>> and might be in a position to sell?

Nikita Beer.

>> Oh, I thought you were going to say

Google. Doesn't Google own a ton?

>> Yeah.

>> I think they have 100 billion, right?

>> They have a lot.

>> still locked up? Because the unlock was

for employees or investors? I forget who

I forget exactly who

>> Let's talk about Nikita and then we can

talk about

>> Sure. Sure. Sure.

>> pull up the the unlock schedule, but

>> Truly the end of an era for Nikita.

>> Yeah, so it's crazy cuz he's getting

people are trying to community note him.

Like, don't let the community note him.

>> quit. He still works there. That's what

I would imagine the community So, so the

story with Nikita

>> are like cuz he he talked about doing a

bunch of um a bunch of the stuff that he

worked on, which

they they went from being a company that

effectively shipped almost nothing. So

much so that uh

I think Clubhouse, when you you know,

rewind a few years,

uh it it you know, Clubhouse I believe

had an acquisition offer at some point

from Twitter to be acquired for like

multiple billions of dollars.

>> Okay.

>> They turned it down, and Twitter ended

up cloning

>> Yep.

>> Clubhouse, and it worked. And it was

>> Spaces pretty quickly.

>> And it was And it was it worked as well

as Clubhouse.

>> Yeah, I would wonder how many DAUs,

weekly active users there are on Spaces,

but the product works, it's clean, and

it's probably the best implementation of

that of that feature. Um

and and it does exist, but uh there's

very few like Clubhouse had specific

moments where it was like, "Wow,

everyone's on Clubhouse for this debate,

for uh Elon and Vlad talking about the

Robinhood story and the GameStop story,

right?" And there were like certain

moments in tech that happened on

Clubhouse. That's not happening on X

Spaces that often, but as far as the

product is concerned, like it definitely

works, it was shipped, it that worked,

but I agree that overall the product

velocity was a little slow.

>> Well, yeah, and and and my main point is

Clubhouse was probably feeling pretty

comfortable given Twitter's historical

shipping activity.

>> yeah.

>> They're not going to They're not going

to come out with like a competent

>> was always, "What if Google clones this?

What if Google launches this?" It was

never "What if Twitter" Or you Yeah,

yeah, yeah, it was the the the the Mark

Zuckerberg steamroll from stories and

reels. Um it was never is is Twitter

going to get around to copying this fast

enough to put you out of business.

>> But, yeah, everyone has uh opinions

about Nikita's run. I think he he was a

good I think he was a good steward. I

think that's probably one of the worst

jobs in the world, one of [laughter] the

most thankless jobs in the world, where

you're getting yelled at from people and

>> He's the bouncer of the internet's dive

bar.

>> Exactly. Exactly.

>> He bounced a lot of people.

>> I think he had some amazing moments. I

think that I I've always felt that

creator revenue shares never made sense

on X. I think that I think the app would

still be better if there were no revenue

shares.

>> Mhm.

>> But, he did a great job of like trying

to make that not have too much of a

negative impact on the platform.

>> Yeah. Yeah.

>> Totally.

>> He's kind of the sheriff.

>> The sheriff.

>> More of a sheriff than a bouncer.

>> Yeah. Yeah.

>> Yeah, people people got really upset

when he like gave like a one-off bonus

to someone for a big post or something

like that, but in general, yeah, it was

a little bit of a game of whack-a-mole,

right? Because

>> And I think that guy got his account

fully nuked.

>> Oh, really?

>> [laughter]

>> Yeah.

>> Wow.

But, uh

the the creator

>> And that was such a good example of like

this guy got this massive one-time

payout.

>> Yeah. Wasn't it 10 grand?

>> Yeah. And again, the massive in the in

the creator payouts context.

>> Yeah. Yeah.

>> And then the next week he was like

complaining about having a low payout,

and it was such a good example of like,

you know, what have you done for me

lately?

>> Sure. Sure. Sure.

>> Um people are speculating. I saw one

account go viral with a post saying that

Nikita was fired.

>> Yeah, that was totally that was totally

false.

>> false.

That account got nuked.

>> [laughter]

>> Good.

>> Um

but there was a there was a fun theory

that

as part of the lockup rules, as an

active employer top executives, your

shares are tied to strict internal

rules. For executives, a lockup is

frozen is completely frozen to until

after fourth quarter results are

released.

>> Mhm.

>> So, but because Nikita resigned as an

executive, he's no longer bound by

active employer executive trading

restrictions.

>> Oh, interesting.

>> And so, theoretically,

>> he'd be able to get out. But, this also

has community notes. There's like layers

and layers of

community notes here.

>> We have the unlock schedule, we can pull

it up here.

>> Okay. Initial float is 5%. Wave one just

happened August 11th. Oh, it's coming

up. That's 20% August 21st. That's 7%

September 10th is 7%. It's going to be a

while until everything gets unlocked.

And then, of course,

I mean, I'd be surprised if Elon

selling, right? It's like the the

he has plenty of money to do everything

else he needs to do and

he's never been

you know, one to

>> Why would you sell if you're projecting

1 trillion of revenue in 2030?

>> Yeah, yeah. Yeah.

>> Inside Google,

his CEO post landed with essentially a

shrug. Sources tell me he's already been

disengaged from day-to-day management

for a while now, but he was a firewall

between Google DeepMind and the rest of

Google even as the two got pulled closer

over the last couple of years. I expect

that distance to dissolve more with him

stepping back.

>> Yeah, most people are anti-firewall in

the in the sense that they would love

like the researchers and the TPU team

and the cloud team and the application

team to all be deeply integrated working

very closely together and you get this

crazy flywheel between everyone who's

rowing in the same direction. And when

you have a firewall team as this

reporting is suggesting, you wind up

with well, this person just wants to

focus on the most elegant benchmarks and

this person wants to focus on TPU sales

and this person wants to talk about, you

know, resiliency and their diversity of

their cloud revenue and then somebody

else just wants Google search to not get

disrupted by LLMs too quickly because

ads need to go up at the right rate. And

so, differing incentives can create

tensions and a dissolving of the

firewall probably something that people

would be excited about, I would imagine.

But, he's been in this like, you know,

elder statesman role for a while that

people have been pointing to.

Excited to watch him like continue that.

Will be interesting to see how he

instantiates that. Is it Obviously he's

working on Isomorphic Labs, but he'll

also probably be writing more blog

posts, potentially testifying or talking

in Washington,

maybe a book, maybe a podcast or who

knows.

It'll be interesting to follow.

>> Uh

>> What else?

>> Alex also reported on its current

trajectory, Gemini 4 is not expected to

push frontier AI forward the way Fable

and Soul just did. So, still work to be

done.

>> There's clearly some very low-hanging

fruit on

AI overviews, matching the speed with

which those are generated to the lack of

hallucinations that we're seeing in the

more advanced models. How do you bridge

that gap? You can clearly get

fact-checked results if you're willing

to wait a minute right now. What does it

take to get fact-checked results in 5

milliseconds or 100 milliseconds or

something like that? That's a huge

problem and but it's something that

Google's like set up to do and benefit

from. I still see crazy

crazy posts all the time that are

screenshots from AI overviews that are

like, "I'm a pencil and I see a pencil

sharpener coming towards me." And then

Google AI overviews is like, "Run away!"

Like don't Like that pencil sharpener

will shred your wood. And it's like, you

know, not it's like kind of falling for

a prompt injection or some sort of meme.

And then there's other stuff going on.

Tekin and Bill Gurley are going back and

forth on what this means for Google.

Tekin says Jeff Dean and Demis Hassabis

are two of the most important AI

executives at Google. Jeff leaving and

Demis is stepping down. He said he

stepped up stepped aside. It's very

debatable what direction he stepped. I

think he stepped up up down down left

left right left right ABAB start, right?

Demis is stepping down from day-to-day

operational leadership at DeepMind and

take him says game over.

>> [laughter]

>> Very dramatic.

Lot of the other things going on in the

business.

Yes, these folks are very deeply

important, but

>> [laughter]

>> the company's been around for couple

decades and has a lot of business lines.

Game over's pretty aggressive. Bill

Gurley disagrees. He says, "This does

not have to be game over for Google. I

do think they have only one play left

now to pull from their own Androids

Android Kubernetes playbook and fully

embrace open models. It's the obvious

move in this situation." That's

interesting. That would be interesting.

I mean, they demonstrate I believe

Google signed the open letter on the

earlier side, right? With Nvidia. Could

you see something there? They've been

doing good jobs with with Gemma? Is that

how you pronounce it? Gemma models?

Those have been pretty well received. It

does seem like you're fighting with one

hand tied behind your back as an

American open source lab.

Um, but who knows? How Intel came back

from the brink. We've been covering this

story on and off as it's unfolded, but

the Financial Times took to the big read

to write up the full story as they see

it as they reported it. So, it starts

with Intel's chief financial officer

David Zinsner. David Zinsner was already

navigating one of the most dramatic

periods in the chip manufacturer's

history when he took a call from the US

Commerce Department official in August

of last year. The federal government had

just floated the idea of taking a 10%

stake in the chip maker. But Zinsner was

bluntly told that the structure of any

transaction was not up for negotiation

according to an internal Intel memo

recently unsealed in shareholder

litigation and sources close to the

process. So, I guess the shareholders

are are suing over this. Did you Was

this deal in the interest of the

shareholders? Let's see. They saw the

memo and Intel says, "Hey, look, we had

to do this deal." So, in order for the

government stake to reach 10% demanded

by President Donald Trump, Intel had to

convert billions in manufacturing grants

advanced under the 2022 Chips Act plus

$3.2 billion of contracts from the

Department of Defense into equity.

Its board initially balked at converting

the defense contracts, but it

acquiesced, and the biggest federal

equity intervention in a US company

since the bailout of General Motors in

2009 was completed. The group that once

dominated the market for PC and data

center chips and was still the only

US-based company capable of making the

most advanced chips had been saved from

a possible breakup. The world's chip

consumers, wary of the

over-concentration of manufacturing

capacity within Taiwan's TSMC, which

makes more than 90% of the world's most

sophisticated chips, including those who

have been used in the booming AI sector,

now have at least the prospect of a

credible alternative supplier. Since

Washington stepped in, as you know,

Jordy, um Intel has pulled 5 billion of

investment from Nvidia, 2 billion from

Japan's SoftBank, and its shares have

more than quadrupled, trouncing those of

rivals. While the deal divided opinion

in the semiconductor industry, it had

def- it has definitely reversed the

narrative of decline. Yeah, a lot of

people were were against this uh venture

communism or or, you know, state

socialism, saying, you know, let In

America, we let independent companies

live or die by the sword. Um the

government shouldn't be stepping in, but

a lot of people made a very good

argument that this is a special case

because it's such a critical um industry

to the American economy and and the AI

race that in this case it wasn't, you

know, a uh a bailout for a company that

uh should be just fighting it out on the

global stage, and of course, there are

heavy subsidies internationally for

other competitors to Intel. The company

has benefited from rising demand for its

central processing units such as the

Clearwater forest chip launched in June

which can be used for managing AI

workloads and data centers. That is the

CPU crunch that we've been talking

about. The agents need CPUs if they're

going to be spending all the time

building and chatting on

on their internal messaging boards.

They're going to need CPUs to to uh

>> Question for you, John. Do you think

that Tan is more focused on moving the

needle or putting points on the board?

>> [laughter]

>> That's a good question. I think moving

the needle.

I think he's more of a moving the the

needle guy.

>> Really? Cuz I I mean

>> When I think points on the board

>> from story time so far is that he's he's

trying to get some immediate points on

the board because he knows that'll lead

into moving the needle.

>> Nah.

>> But just grabbing a needle that that

that big for a company that old at that

scale that's facing that many headwinds

you can't just grab the needle and

expect to move it.

>> I think the needle's already been

established.

The needle is is the fab business that

they've been investing in for years now

in in their advanced fabs and they're

just trying to to slowly move it. If he

was putting points on the board, he'd be

talking about oh yeah, I got a deal with

Apple. I got this really small deal with

Google. I got this tiny thing over here.

That's what points on the board means to

me. Moving the needle is like the the

the core thing. It's the main needle.

You know?

>> Yeah, some good points.

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