OpenAI Just Offered The Government $42 Billion. This Is The Real Reason.

I don't think anyone has picked up on I don't think anyone has picked up on the connection between these five the connection between these five the connection between these five stories. First, Meta launched a consumer stories. First, Meta launched a consumer stories. First, Meta launched a consumer gaming app where you type a prompt and gaming app where you type a prompt and gaming app where you type a prompt and get a playable game. Then, Meta is also get a playable game. Then, Meta is also get a playable game. Then, Meta is also building a cloud business to sell its building a cloud business to sell its building a cloud business to sell its spare AI compute, and of course the spare AI compute, and of course the spare AI compute, and of course the stock moved on that news. Meanwhile, stock moved on that news. Meanwhile, stock moved on that news. Meanwhile, Reuters got hold of a Meta town hall Reuters got hold of a Meta town hall Reuters got hold of a Meta town hall where Zuck admitted agent development where Zuck admitted agent development where Zuck admitted agent development hasn't accelerated the way that he hasn't accelerated the way that he hasn't accelerated the way that he expected. OpenAI meanwhile floated expected. OpenAI meanwhile floated expected. OpenAI meanwhile floated giving the US government a 5% stake in giving the US government a 5% stake in giving the US government a 5% stake in their company worth about $42 billion at their company worth about $42 billion at their company worth about $42 billion at today's valuation. And finally, a today's valuation. And finally, a today's valuation. And finally, a sandwich chain, Jersey Mike's, the one sandwich chain, Jersey Mike's, the one sandwich chain, Jersey Mike's, the one with Danny DeVito in the ads, they filed with Danny DeVito in the ads, they filed with Danny DeVito in the ads, they filed for an IPO that mentions AI 22 times. for an IPO that mentions AI 22 times. for an IPO that mentions AI 22 times. So, you have a gaming app, a cloud So, you have a gaming app, a cloud So, you have a gaming app, a cloud business, a confession, an equity offer, business, a confession, an equity offer, business, a confession, an equity offer, and a Subway sandwich shop. Those don't and a Subway sandwich shop. Those don't and a Subway sandwich shop. Those don't look like they belong in the same story, look like they belong in the same story, look like they belong in the same story, but they do. And if you're still but they do. And if you're still but they do. And if you're still watching the old AI scoreboard, the one watching the old AI scoreboard, the one watching the old AI scoreboard, the one about who shipped the best model in the about who shipped the best model in the about who shipped the best model in the past month, you're going to miss this past month, you're going to miss this past month, you're going to miss this story. Here's the shift that is story. Here's the shift that is story. Here's the shift that is happening across the industry right now. happening across the industry right now. happening across the industry right now. So, first the old scoreboard. For about So, first the old scoreboard. For about So, first the old scoreboard. For about 2 years, the AI industry ran on a single 2 years, the AI industry ran on a single 2 years, the AI industry ran on a single question: Who has the best model? Every question: Who has the best model? Every question: Who has the best model? Every earnings call, every launch, every leak earnings call, every launch, every leak earnings call, every launch, every leak got scored against that. And the logic got scored against that. And the logic got scored against that. And the logic went like this: Models are the product, went like this: Models are the product, went like this: Models are the product, so whoever owns the best model wins, so so whoever owns the best model wins, so so whoever owns the best model wins, so spend whatever it takes to own the best spend whatever it takes to own the best spend whatever it takes to own the best model. And that logic justified the model. And that logic justified the model. And that logic justified the largest capital buildout in tech largest capital buildout in tech largest capital buildout in tech history. The big five hyperscalers are history. The big five hyperscalers are history. The big five hyperscalers are on track to spend north of $600 billion on track to spend north of $600 billion on track to spend north of $600 billion on capex this year, up roughly a third on capex this year, up roughly a third on capex this year, up roughly a third from last year, and most of it is AI from last year, and most of it is AI from last year, and most of it is AI infra. And to be clear, the model race infra. And to be clear, the model race infra. And to be clear, the model race worked. It produced real capability worked. It produced real capability worked. It produced real capability jumps, clear leaders. We just spent the jumps, clear leaders. We just spent the jumps, clear leaders. We just spent the spring and early summer watching

spring and early summer watching spring and early summer watching frontier models get so good at frontier models get so good at frontier models get so good at cybersecurity work that the federal cybersecurity work that the federal cybersecurity work that the federal government has started staggering government has started staggering government has started staggering releases, right? But here's the thing releases, right? But here's the thing releases, right? But here's the thing about a race. When the leaders start about a race. When the leaders start about a race. When the leaders start visibly changing what they're competing visibly changing what they're competing visibly changing what they're competing on, the race is starting to change. And on, the race is starting to change. And on, the race is starting to change. And last week, for the first time, you could last week, for the first time, you could last week, for the first time, you could see that emerge on a bunch of new fronts see that emerge on a bunch of new fronts see that emerge on a bunch of new fronts at once, from Meta, from OpenAI, and at once, from Meta, from OpenAI, and at once, from Meta, from OpenAI, and from the market itself. And by the way, from the market itself. And by the way, from the market itself. And by the way, I'll give you a bonus at the end about I'll give you a bonus at the end about I'll give you a bonus at the end about Anthropic, because that's coming in, Anthropic, because that's coming in, Anthropic, because that's coming in, too. So, let's start with Meta. Meta too. So, let's start with Meta. Meta too. So, let's start with Meta. Meta quietly launched a consumer app. No quietly launched a consumer app. No quietly launched a consumer app. No announcement, no keynote. It just showed announcement, no keynote. It just showed announcement, no keynote. It just showed up on the App Store and Google Play at up on the App Store and Google Play at up on the App Store and Google Play at the end of June, and TechCrunch was able the end of June, and TechCrunch was able the end of June, and TechCrunch was able to spot it. You type a prompt like to spot it. You type a prompt like to spot it. You type a prompt like "puzzle game about matching colors", and "puzzle game about matching colors", and "puzzle game about matching colors", and the app generates a playable mini-game the app generates a playable mini-game the app generates a playable mini-game in a few seconds. Meta calls them in a few seconds. Meta calls them in a few seconds. Meta calls them Gizmos. There's a social feed where you Gizmos. There's a social feed where you Gizmos. There's a social feed where you browse what other people made, and the browse what other people made, and the browse what other people made, and the games respond to touch and tilt. You can games respond to touch and tilt. You can games respond to touch and tilt. You can use the camera. The whole thing came out use the camera. The whole thing came out use the camera. The whole thing came out of Meta's acquisition of the Vibe coding of Meta's acquisition of the Vibe coding of Meta's acquisition of the Vibe coding gaming platform Gizmo earlier this year. gaming platform Gizmo earlier this year. gaming platform Gizmo earlier this year. Okay, next story from Meta, the cloud. Okay, next story from Meta, the cloud. Okay, next story from Meta, the cloud. Bloomberg reported that Meta is standing Bloomberg reported that Meta is standing Bloomberg reported that Meta is standing up a business to sell access to its up a business to sell access to its up a business to sell access to its excess AI compute, that means all of its excess AI compute, that means all of its excess AI compute, that means all of its models, as well, to outside customers.

models, as well, to outside customers. models, as well, to outside customers. There's an internal group called Meta There's an internal group called Meta There's an internal group called Meta Compute that oversees the infra Compute that oversees the infra Compute that oversees the infra buildout, and the plan puts Meta in buildout, and the plan puts Meta in buildout, and the plan puts Meta in competition with AWS and Azure and competition with AWS and Azure and competition with AWS and Azure and Google Cloud. Analysts put Meta's total Google Cloud. Analysts put Meta's total Google Cloud. Analysts put Meta's total spend this year at around $145 billion. spend this year at around $145 billion. spend this year at around $145 billion. And the market's reaction is very And the market's reaction is very And the market's reaction is very interesting. Meta stock jumped on the interesting. Meta stock jumped on the interesting. Meta stock jumped on the report. Investors looked at "we're going report. Investors looked at "we're going report. Investors looked at "we're going to rent out our spare GPUs", and said, to rent out our spare GPUs", and said, to rent out our spare GPUs", and said, "let's get more of that." Reuters "let's get more of that." Reuters "let's get more of that." Reuters reported that Zuck told employees that reported that Zuck told employees that reported that Zuck told employees that AI agent development of the last 4 AI agent development of the last 4 AI agent development of the last 4 months, quote, "hasn't accelerated in months, quote, "hasn't accelerated in months, quote, "hasn't accelerated in the way we expected." Now, let's hold the way we expected." Now, let's hold the way we expected." Now, let's hold these three stories together and these three stories together and these three stories together and discover the connection. A company that discover the connection. A company that discover the connection. A company that believes model ownership was the whole believes model ownership was the whole believes model ownership was the whole game would not do any of what we've just game would not do any of what we've just game would not do any of what we've just described. If the model's everything, described. If the model's everything, described. If the model's everything, you keep every GPU for training, and you keep every GPU for training, and you keep every GPU for training, and you'd never sell a competitor your you'd never sell a competitor your you'd never sell a competitor your compute. If agents are 12 months from compute. If agents are 12 months from compute. If agents are 12 months from transforming everything, you don't ship transforming everything, you don't ship transforming everything, you don't ship a whimsical prompt to Game Joy. You wait a whimsical prompt to Game Joy. You wait a whimsical prompt to Game Joy. You wait for the agents. Meta is doing the for the agents. Meta is doing the for the agents. Meta is doing the opposite. It's monetizing infrastructure opposite. It's monetizing infrastructure opposite. It's monetizing infrastructure directly. It's experimenting with directly. It's experimenting with directly. It's experimenting with consumer surfaces that generate consumer surfaces that generate consumer surfaces that generate engagement today with small models it engagement today with small models it engagement today with small models it has already, and it's being really has already, and it's being really has already, and it's being really honest internally that their agent honest internally that their agent honest internally that their agent timeline has kind of indefinitely timeline has kind of indefinitely timeline has kind of indefinitely slipped. That's not a retreat. The slipped. That's not a retreat. The slipped. That's not a retreat. The money's still flowing at full volume.

money's still flowing at full volume. money's still flowing at full volume. It's a company redrawing the map. The It's a company redrawing the map. The It's a company redrawing the map. The compute is an asset class now. The compute is an asset class now. The compute is an asset class now. The consumer surface is a distribution play, consumer surface is a distribution play, consumer surface is a distribution play, and the model's just one layer in the and the model's just one layer in the and the model's just one layer in the stack for that. And here's where it gets stack for that. And here's where it gets stack for that. And here's where it gets more interesting, because while Meta was more interesting, because while Meta was more interesting, because while Meta was redrawing the infrastructure and redrawing the infrastructure and redrawing the infrastructure and distribution layers, OpenAI was making a distribution layers, OpenAI was making a distribution layers, OpenAI was making a move on a layer that people don't move on a layer that people don't move on a layer that people don't realize is a layer. On the same day that realize is a layer. On the same day that realize is a layer. On the same day that Pocket hit the news for Meta, reports Pocket hit the news for Meta, reports Pocket hit the news for Meta, reports landed that OpenAI has been discussing landed that OpenAI has been discussing landed that OpenAI has been discussing giving the US government roughly a 5% giving the US government roughly a 5% giving the US government roughly a 5% equity stake. Those same reports equity stake. Those same reports equity stake. Those same reports indicated that there are similar indicated that there are similar indicated that there are similar conversations going on with other major conversations going on with other major conversations going on with other major model makers. Now, at the $852 billion model makers. Now, at the $852 billion model makers. Now, at the $852 billion valuation from their March round, that valuation from their March round, that valuation from their March round, that would be a $42.5 billion would be a $42.5 billion would be a $42.5 billion stake. I'm sure it's higher now. The stake. I'm sure it's higher now. The stake. I'm sure it's higher now. The mechanics matter here. This is not a mechanics matter here. This is not a mechanics matter here. This is not a sale. The reported structure is a sale. The reported structure is a sale. The reported structure is a donation of shares to a public wealth donation of shares to a public wealth donation of shares to a public wealth fund, an idea OpenAI first sketched in a fund, an idea OpenAI first sketched in a fund, an idea OpenAI first sketched in a policy paper back in April. The model is policy paper back in April. The model is policy paper back in April. The model is similar to the Alaska Permanent Fund, similar to the Alaska Permanent Fund, similar to the Alaska Permanent Fund, which pays every Alaskan an annual which pays every Alaskan an annual which pays every Alaskan an annual dividend from oil revenue. And Altman dividend from oil revenue. And Altman dividend from oil revenue. And Altman reportedly wants this to apply to every reportedly wants this to apply to every reportedly wants this to apply to every leading US lab, Anthropic, Google, Meta, leading US lab, Anthropic, Google, Meta, leading US lab, Anthropic, Google, Meta, all paying 5% into the same vehicle. The all paying 5% into the same vehicle. The all paying 5% into the same vehicle. The talks are very early, and a real version talks are very early, and a real version talks are very early, and a real version of this needs Congress. Very much treat of this needs Congress. Very much treat of this needs Congress. Very much treat this as a proposal. Now, notice this this as a proposal. Now, notice this this as a proposal. Now, notice this surface just days after Washington told surface just days after Washington told surface just days after Washington told OpenAI to slow down ChatGPT 5.6. Under OpenAI to slow down ChatGPT 5.6. Under OpenAI to slow down ChatGPT 5.6. Under the executive order signed in June, the the executive order signed in June, the the executive order signed in June, the government gets up to 30 days of government gets up to 30 days of government gets up to 30 days of pre-release access to the most capable pre-release access to the most capable pre-release access to the most capable models. And the commerce secretary models. And the commerce secretary models. And the commerce secretary reportedly called Altman personally to reportedly called Altman personally to reportedly called Altman personally to warn against releasing without approval.

warn against releasing without approval. warn against releasing without approval. So, ChatGPT 5.6 is sitting in a limited So, ChatGPT 5.6 is sitting in a limited So, ChatGPT 5.6 is sitting in a limited preview for trusted partners instead of preview for trusted partners instead of preview for trusted partners instead of shipping worldwide. The government also shipping worldwide. The government also shipping worldwide. The government also has already done this to Anthropic's has already done this to Anthropic's has already done this to Anthropic's Methos, and Fable was part of this Methos, and Fable was part of this Methos, and Fable was part of this story, too. And in the background, story, too. And in the background, story, too. And in the background, Senator Bernie Sanders introduced a bill Senator Bernie Sanders introduced a bill Senator Bernie Sanders introduced a bill in June that would take 50% of the AI in June that would take 50% of the AI in June that would take 50% of the AI company stock for the government into a company stock for the government into a company stock for the government into a sovereign wealth fund. Not 5, 50. So, sovereign wealth fund. Not 5, 50. So, sovereign wealth fund. Not 5, 50. So, read the 5% offer for what it is. It's a read the 5% offer for what it is. It's a read the 5% offer for what it is. It's a bid to set the terms of a government AI bid to set the terms of a government AI bid to set the terms of a government AI stock before someone else sets them. The stock before someone else sets them. The stock before someone else sets them. The frontier labs have hit a point where the frontier labs have hit a point where the frontier labs have hit a point where the binding constraint on their business is binding constraint on their business is binding constraint on their business is not capability and actually it's not not capability and actually it's not not capability and actually it's not even compute. It's permission. even compute. It's permission. even compute. It's permission. Washington can now delay a flagship Washington can now delay a flagship Washington can now delay a flagship release with a phone call and in that release with a phone call and in that release with a phone call and in that world political alignment is not world political alignment is not world political alignment is not corporate social responsibility, right? corporate social responsibility, right? corporate social responsibility, right? It's just infrastructure to get your It's just infrastructure to get your It's just infrastructure to get your model out. Open AI is trying to buy model out. Open AI is trying to buy model out. Open AI is trying to buy regulatory headroom the way meta is regulatory headroom the way meta is regulatory headroom the way meta is monetizing data centers. Both of them monetizing data centers. Both of them monetizing data centers. Both of them are investing in a layer of the game are investing in a layer of the game are investing in a layer of the game that wouldn't officially exist on the that wouldn't officially exist on the that wouldn't officially exist on the old which model is best scoreboard. old which model is best scoreboard. old which model is best scoreboard. Which raises the obvious question. Has Which raises the obvious question. Has Which raises the obvious question. Has anyone else noticed that the scoreboard anyone else noticed that the scoreboard anyone else noticed that the scoreboard changed? And last week the market changed? And last week the market changed? And last week the market answered that really loudly. CNBC ran a answered that really loudly. CNBC ran a answered that really loudly. CNBC ran a live segment on July 2nd titled AI's live segment on July 2nd titled AI's live segment on July 2nd titled AI's three big narrative violations. Analysts three big narrative violations. Analysts three big narrative violations. Analysts walking through long held assumptions walking through long held assumptions walking through long held assumptions about the AI trade that have now broken.

about the AI trade that have now broken. about the AI trade that have now broken. And the first violation they led with is And the first violation they led with is And the first violation they led with is the idea that you have to own the model. the idea that you have to own the model. the idea that you have to own the model. And their exhibit A was the same meta And their exhibit A was the same meta And their exhibit A was the same meta compute story we just talked about. When compute story we just talked about. When compute story we just talked about. When the company that spent more than almost the company that spent more than almost the company that spent more than almost anyone else to own frontier model starts anyone else to own frontier model starts anyone else to own frontier model starts selling the picks and shovels instead, selling the picks and shovels instead, selling the picks and shovels instead, the market's going to update. The point the market's going to update. The point the market's going to update. The point isn't which analyst said what. The point isn't which analyst said what. The point isn't which analyst said what. The point is that a phrase like the model is the is that a phrase like the model is the is that a phrase like the model is the moat has moved from being a Silicon moat has moved from being a Silicon moat has moved from being a Silicon Valley contrarian take into being Valley contrarian take into being Valley contrarian take into being mainstream into being a CNBC chyron. The mainstream into being a CNBC chyron. The mainstream into being a CNBC chyron. The repricing of this story is happening repricing of this story is happening repricing of this story is happening right now on the street as the street right now on the street as the street right now on the street as the street figures out where AI value actually figures out where AI value actually figures out where AI value actually goes. And that brings me, yes, I can't goes. And that brings me, yes, I can't goes. And that brings me, yes, I can't believe I'm saying this, to Jersey believe I'm saying this, to Jersey believe I'm saying this, to Jersey Mike's. The sandwich chain filed for its Mike's. The sandwich chain filed for its Mike's. The sandwich chain filed for its IPO on July 2nd under the ticker JMKE. IPO on July 2nd under the ticker JMKE. IPO on July 2nd under the ticker JMKE. It's Blackstone backed, it's $724 It's Blackstone backed, it's $724 It's Blackstone backed, it's $724 million in revenue last year. It's a million in revenue last year. It's a million in revenue last year. It's a genuinely solid business. And the filing genuinely solid business. And the filing genuinely solid business. And the filing mentions artificial intelligence 22 mentions artificial intelligence 22 mentions artificial intelligence 22 times. And now TechCrunch had a great times. And now TechCrunch had a great times. And now TechCrunch had a great headline for this. Jersey Mike's IPO headline for this. Jersey Mike's IPO headline for this. Jersey Mike's IPO illustrates how bad the AI hype has illustrates how bad the AI hype has illustrates how bad the AI hype has become and it's getting treated as a become and it's getting treated as a become and it's getting treated as a joke, right? But I want you to see what joke, right? But I want you to see what joke, right? But I want you to see what it actually tells you. When a Subway it actually tells you. When a Subway it actually tells you. When a Subway sandwich shop's lawyers decide that sandwich shop's lawyers decide that sandwich shop's lawyers decide that their S1 needs 22 AI references.

their S1 needs 22 AI references. their S1 needs 22 AI references. That is a yardstick for how cheap That is a yardstick for how cheap That is a yardstick for how cheap capital has become around AI. The froth capital has become around AI. The froth capital has become around AI. The froth hasn't disappeared just because the hasn't disappeared just because the hasn't disappeared just because the market has gotten more sophisticated market has gotten more sophisticated market has gotten more sophisticated about models. Instead, it's kind of about models. Instead, it's kind of about models. Instead, it's kind of migrated outward into anything that can migrated outward into anything that can migrated outward into anything that can plausibly attach the letters A and I to plausibly attach the letters A and I to plausibly attach the letters A and I to a growth story. Ultimately, this is the a growth story. Ultimately, this is the a growth story. Ultimately, this is the tension that defines the moment. The tension that defines the moment. The tension that defines the moment. The market is getting smarter about the AI market is getting smarter about the AI market is getting smarter about the AI core, hence the conversation on CNBC, core, hence the conversation on CNBC, core, hence the conversation on CNBC, but it's getting sillier about the edges but it's getting sillier about the edges but it's getting sillier about the edges because the money hasn't left the because the money hasn't left the because the money hasn't left the market. It's just searching for returns. market. It's just searching for returns. market. It's just searching for returns. So, Meta is redrawing their map, opening So, Meta is redrawing their map, opening So, Meta is redrawing their map, opening eyes, buying political cover. There's eyes, buying political cover. There's eyes, buying political cover. There's hype about sandwiches. This is the hype about sandwiches. This is the hype about sandwiches. This is the larger picture. The model race isn't larger picture. The model race isn't larger picture. The model race isn't over, but it's not the only race in town over, but it's not the only race in town over, but it's not the only race in town anymore. And this week really called out anymore. And this week really called out anymore. And this week really called out a bunch of other AI tracks that are a bunch of other AI tracks that are a bunch of other AI tracks that are visible. If you count the layers that visible. If you count the layers that visible. If you count the layers that were actively contested in just the last were actively contested in just the last were actively contested in just the last few days, there's a whole infrastructure few days, there's a whole infrastructure few days, there's a whole infrastructure piece where both Meta and now SpaceX and piece where both Meta and now SpaceX and piece where both Meta and now SpaceX and xAI are competing over renting out xAI are competing over renting out xAI are competing over renting out massive quantities of infrastructure.

massive quantities of infrastructure. massive quantities of infrastructure. There's a distribution layer where There's a distribution layer where There's a distribution layer where there's yet another bet like Pocket out there's yet another bet like Pocket out there's yet another bet like Pocket out there trying to get consumers to get there trying to get consumers to get there trying to get consumers to get interested in building games, building interested in building games, building interested in building games, building anything, not just consuming. That's a anything, not just consuming. That's a anything, not just consuming. That's a huge bet. And there's a political layer, huge bet. And there's a political layer, huge bet. And there's a political layer, right? And that's going to get right? And that's going to get right? And that's going to get increasingly contested as we move into increasingly contested as we move into increasingly contested as we move into the midterms and the general election the midterms and the general election the midterms and the general election cycle. It'll be full of debate about cycle. It'll be full of debate about cycle. It'll be full of debate about equity stakes, about pre-release model equity stakes, about pre-release model equity stakes, about pre-release model review, about safety, about staggered review, about safety, about staggered review, about safety, about staggered launches, about the public's legitimate launches, about the public's legitimate launches, about the public's legitimate stake in artificial intelligence and stake in artificial intelligence and stake in artificial intelligence and what that means. Notice what's happening what that means. Notice what's happening what that means. Notice what's happening here. here. here. It's not that people are spending less. It's not that people are spending less. It's not that people are spending less. CapEx is up roughly a third. No one is CapEx is up roughly a third. No one is CapEx is up roughly a third. No one is saying they're scaling back CapEx. saying they're scaling back CapEx. saying they're scaling back CapEx. Enterprise budgets on AI are holding or Enterprise budgets on AI are holding or Enterprise budgets on AI are holding or growing despite lots of complaints. The growing despite lots of complaints. The growing despite lots of complaints. The signal is that the biggest spenders out signal is that the biggest spenders out signal is that the biggest spenders out there are figuring out how to allocate there are figuring out how to allocate there are figuring out how to allocate their capital to maximize value. And so their capital to maximize value. And so their capital to maximize value. And so they're moving into distribution. they're moving into distribution. they're moving into distribution. They're moving into infrastructure They're moving into infrastructure They're moving into infrastructure margins. They're moving frankly into the margins. They're moving frankly into the margins. They're moving frankly into the political permissions game. So, political permissions game. So, political permissions game. So, Anthropic just got Fable 5 back. They Anthropic just got Fable 5 back. They Anthropic just got Fable 5 back. They mended fences a bit with the government, mended fences a bit with the government, mended fences a bit with the government, but that's not the story here. And but that's not the story here. And but that's not the story here. And they're continuing to hyper-focus on the they're continuing to hyper-focus on the they're continuing to hyper-focus on the enterprise use case. And that is why enterprise use case. And that is why enterprise use case. And that is why they are investing so heavily not just they are investing so heavily not just they are investing so heavily not just in their models, but also in the ability in their models, but also in the ability in their models, but also in the ability to deploy those models in harness in to deploy those models in harness in to deploy those models in harness in companies. And this brings me back to companies. And this brings me back to companies. And this brings me back to what I talked about last week, Claude what I talked about last week, Claude what I talked about last week, Claude Tag. It brings me back to talking about Tag. It brings me back to talking about Tag. It brings me back to talking about the forward deployed engineers Anthropic the forward deployed engineers Anthropic the forward deployed engineers Anthropic is investing in. They, too, are playing is investing in. They, too, are playing is investing in. They, too, are playing a different game. They're playing the

a different game. They're playing the a different game. They're playing the distribution game for enterprise, and distribution game for enterprise, and distribution game for enterprise, and they're playing it very, very seriously they're playing it very, very seriously they're playing it very, very seriously because if they can build a sticky because if they can build a sticky because if they can build a sticky harness around the enterprise, they've harness around the enterprise, they've harness around the enterprise, they've won an incredibly won an incredibly won an incredibly resilient revenue source as enterprises resilient revenue source as enterprises resilient revenue source as enterprises put more and more and more into put more and more and more into put more and more and more into intelligence to gain leverage and intelligence to gain leverage and intelligence to gain leverage and frankly reinvent the firm. So, that's frankly reinvent the firm. So, that's frankly reinvent the firm. So, that's the Anthropic piece. And that one didn't the Anthropic piece. And that one didn't the Anthropic piece. And that one didn't make the news this week, but sometimes make the news this week, but sometimes make the news this week, but sometimes the quiet stuff doesn't and it still the quiet stuff doesn't and it still the quiet stuff doesn't and it still tells the same story. So, where does tells the same story. So, where does tells the same story. So, where does this leave us? I would invite you to this leave us? I would invite you to this leave us? I would invite you to begin thinking about what it means to begin thinking about what it means to begin thinking about what it means to have a guaranteed pipeline of increasing have a guaranteed pipeline of increasing have a guaranteed pipeline of increasing capability for models, whether you're capability for models, whether you're capability for models, whether you're running a company or whether you're an running a company or whether you're an running a company or whether you're an individual working at a company, or individual working at a company, or individual working at a company, or whether frankly you're a solopreneur and whether frankly you're a solopreneur and whether frankly you're a solopreneur and a builder. You're going to get these a builder. You're going to get these a builder. You're going to get these models getting better and better. Fable models getting better and better. Fable models getting better and better. Fable 5 will not be the last one. There'll be 5 will not be the last one. There'll be 5 will not be the last one. There'll be new ones from Open AI. There'll be new new ones from Open AI. There'll be new new ones from Open AI. There'll be new ones from Anthropic. Maybe Google will ones from Anthropic. Maybe Google will ones from Anthropic. Maybe Google will get back in the game there. Who knows? get back in the game there. Who knows? get back in the game there. Who knows? Maybe Meta will ship something. At the Maybe Meta will ship something. At the Maybe Meta will ship something. At the same time, that is not where the game is same time, that is not where the game is same time, that is not where the game is going. The game is going to how these going. The game is going to how these going. The game is going to how these models successfully integrated into models successfully integrated into models successfully integrated into society. Because if you put all of these society. Because if you put all of these society. Because if you put all of these pieces together, it's a return on AI in pieces together, it's a return on AI in pieces together, it's a return on AI in society conversation. That's why Open AI society conversation. That's why Open AI society conversation. That's why Open AI is talking to the government. That's why is talking to the government. That's why is talking to the government. That's why Anthropic is getting deeply involved in Anthropic is getting deeply involved in Anthropic is getting deeply involved in enterprise. That's why Meta is figuring enterprise. That's why Meta is figuring enterprise. That's why Meta is figuring out how to get consumers from consuming out how to get consumers from consuming out how to get consumers from consuming to building. All of these things are to building. All of these things are to building. All of these things are indicators that we are wrestling with indicators that we are wrestling with indicators that we are wrestling with the early stages of the society the early stages of the society the early stages of the society transition that follows like a wake

transition that follows like a wake transition that follows like a wake behind the initial AI innovation wave. behind the initial AI innovation wave. behind the initial AI innovation wave. We should ironically expect exactly what We should ironically expect exactly what We should ironically expect exactly what we saw from Jersey Mike's in a world we saw from Jersey Mike's in a world we saw from Jersey Mike's in a world where AI is changing a bunch of stuff where AI is changing a bunch of stuff where AI is changing a bunch of stuff and people don't quite know where to and people don't quite know where to and people don't quite know where to look and they don't quite know what real look and they don't quite know what real look and they don't quite know what real change looks like. And it makes sense in change looks like. And it makes sense in change looks like. And it makes sense in that world to have an S-1 filled with 22 that world to have an S-1 filled with 22 that world to have an S-1 filled with 22 AI references. You'll see more of stuff AI references. You'll see more of stuff AI references. You'll see more of stuff like that and you'll also see more of like that and you'll also see more of like that and you'll also see more of real legitimate experiments trying to real legitimate experiments trying to real legitimate experiments trying to help people figure out how they actually help people figure out how they actually help people figure out how they actually use AI in ways that are useful. I think use AI in ways that are useful. I think use AI in ways that are useful. I think Poke and Clicky are both out there on Poke and Clicky are both out there on Poke and Clicky are both out there on the more serious productivity side, less the more serious productivity side, less the more serious productivity side, less good consumer game side, and there'll be good consumer game side, and there'll be good consumer game side, and there'll be more. Think about where you are in this more. Think about where you are in this more. Think about where you are in this ripple of societal change that's ripple of societal change that's ripple of societal change that's happening and figure out how to surf it. happening and figure out how to surf it. happening and figure out how to surf it. I'll see you next time.