Apple-Intel Chip Deal, U.S. Adds 115K Jobs, DeepSeek Eyes $50B Valuation | Diet TBPN

The great lockin continues. We will go into a review of the last few days. It's Friday. >> Friday. We're having fun. We're gonna be hanging out here on the stream telling you about the American economic roller coaster. You've heard this story before. >> Just nonstop. Okay. So, the American economic >> good back. We miss you guys. >> It's good to be back. Uh yeah, we got a bunch of stuff going on. A whole bunch of economic news over the last couple days. stock market is absolutely ripping. We should be in white suits. Intel's up 20% today, so almost. And there's this split between the AI economy and the real economy, the American economy. And there's a whole bunch of different things that like you need to puzzle together to get a picture of what's going on. And then I'm discovering that there are K shapes within the Kshapes. Even in the real economy, there's divide between different companies. And so, I wanted to walk through that. So, let's start with the Intel news. It's up almost 20% today on the news that they will be making chips for Apple. Uh there's a report in the Wall Street Journal about this. They've released reached a preliminary chipm agreement. It's not completely locked in, but there's a whole bunch of extra context here that we've been tracking for the last 6 months, 12 months as some of this was expected. The revitalization of Intel was something that a lot of folks were clamoring for. Ben Thompson, myself, a lot of folks were all hoping for something and and plans are starting to come together. So the talks have been described as intensive intensive talks between the two companies have been ongoing for more than a year. Apple's been talking to Intel. Interesting. Of course, Intel and Apple have been long-term partners for what, the '9s, 2000s up until the Apple Silicon program where uh they started going Apple started going direct to TSMC. Can they get them back? It seems like potentially in some form factors, but we're going to dig into it. So, they have hammered out a former deal in recent months, and it's still unclear which exact Apple products Intel would make chips for and manufacture them, both its own designs. So, Intel has two main businesses. It's both a design shop and a manufacturer. They have a fab and a and a design unit in its uh foundry unit. Um, both businesses have been underperforming for years before Lip Bhutan came in as the new CEO and uh was vowing to revitalize them. And so last summer, the Trump administration struck a deal to convert nearly $9 billion in federal grants into Intel stock, giving the US roughly 10% 20 $21 a share. It's now at $125 a share. So White House got to be feeling pretty good. >> Yeah, huge. I mean, I I'm pretty sure Jensen has made over a billion dollars on the $5 billion investment. I mean, just today if it's up 20% and he must have seen a big growth in that position since then. So uh just today probably a1 or2 billion print and so uh the reporting here in the journal says that uh the Trump administration was actually key in bringing Apple to the table putting pressure on sort of both sides to say hey let's think about the future of American manufacturing resiliency reducing Taiwanese dependence on a on a foreign supply chain and giving Intel a real shot at underwriting the next big fad that they want to build. Nvidia got in at $23 a share with their $5 billion investments. So up uh around a 5x. >> Not bad. That's not bad at all. >> The guy really needed it. >> He paid for Grock with that. That's pretty sick. >> Oh yeah. >> He just paid for Grock for perfectly. >> That's why he wired before they actually closed. >> Yeah. He's like, I'm up. I'm I I I I got gains. I need to offset these. Uh, so Commerce Secretary Howard Lutnik has met repeatedly over the last year with high ranking Apple officials, including CEO Tim Cook as well as SpaceX chief Elon Musk, Nvidia chief Jensen Wong, uh, to try and convince them to get into business with Intel. There was a discussion about should Nvidia dual source, the Grace CPUs from Intel. Uh, SpaceX and Elon's been with Samsung for a lot of Tesla chips, but there's been uh, discussion there. there was that rumor about global foundaries and Elon's always been in the in and around the fab world uh and he's obviously going a lot deeper with the long-term terafab project. So commerce secretary Howard Lutnik was trying to convince them to get into business with Intel. Some of the people familiar with matter said with with the Apple deal, Intel is now signed partnerships with all three. So over the last decade, Intel fell badly behind rivals. This is from the Wall Street Journal such as TSMC and Samsung Electronics after a series of technical mishaps, leadership changes, and failed attempts at consolidation led outside foundry customers to pull or curb their businesses. When Ta Intel hired Tan in March of 2025, wow, just a year ago, to replace ousted chief executive Pel Gellzinger, President Trump raised concerns that Tan's close ties with China would compromise him and called for his ouster. It was a very, very dramatic moment, but Tan won Trump over with a charm offensive. I like that. And the government announced its 10% investment in Intel shortly after. Following the investment, Intel shares uh price rose sharply on Friday morning. It rose 7.5% to an all-time high of nearly $118 per share. It's up more now. Tan has been reshaping Intel's top leadership ranks in recent months, uh, including hiring former TSMC executive Wii Jen Low, a move that prompted a lawsuit from TSMC. So, they're not friends anymore. Intel CEO has also ousted his head of product and hired new executives to lead the company's data center processor and client computing units, as well as newly formed custom silicon business. He's also invested heavily in Intel's most advanced manufacturing process known as 14A. And that is the node that uh Intel is hoping that all of the uh potential customers will jump together and say, "Hey, we're going to buy from this. If you make it, if you build it, we will come." President Trump personally advocated for Intel to cook in a meeting, which is funny because it sounds like he's advocating for Intel just to cook generally, but he's No, he's he's advocating for Intel uh to Tim Cook in a meeting at the White House. According to people familiar with the matter, uh Trump said, "I like Intel." in January. Uh he said that the government had made tens of billions of dollars from Intel deal and that the government's backing of the company had attracted important partners to Intel. As soon as we went in, Apple went in, Nvidia went in, a lot of smart people went in, Trump said. Uh Nvidia, the world's largest chip firm, invested five billion in Intel in September and the two companies announced partnership under which Intel would build custom data center CPUs, the processing brains for most computer systems for Nvidia. And last month, Elon, of course, announced the Terra Fab project. Uh, and so Apple relies on TSMC to make chips for iPhones, iPads, Macs, and other devices, and is under pressure to find additional chip suppliers. There's also chip shortages, so it could be good to dual source in independent of the geopolitical discussion. Uh, on Apple's last two earnings conference calls, Cook blamed a lack of availability of advanced chips for Apple's inability to meet customer demands for iPhones. The constraints are expected to continue in the current quarter affecting several Mac models. Cook said, quote, "We think looking forward that the Mac Mini and the Mac Studio may take several months to reach supply demand balance." Um, and after the earnings call, Apple raised the Mac Mini starting price. And so TSMC's manufacturing capacities capabilities far surpass those of Samsung and Intel. makers of other kinds of chips for memory and short and storage, for example, are more competitive with one another, giving Apple multiple sources of supply, although of course they are memory constrained. Uh Apple's long been TSMC's top customer, but skyrocketing demand for its manufacturing capacity from Nvidia and other designers of AI chips means Apple's no longer uh has as much leverage to secure the supplies that it needs. Starting in 2006, Apple used Intel designed CPUs as its main processor of its personal computers, but switched to its own custom CPUs uh based on ARM design in 2020. That's the dawn of Apple silicon. U and so there's been an incredible economic and financial performance concentrated in just a handful of trillion dollar tech companies. Intel starting to join and starting to perform like that. There's a few memory stocks. Uh, I saw one report that referred to it as the MAG 10, and they'd added a few other AI names to that group, but there's just a few companies that are driving the vast majority returns in the stock market. >> We had three sort of beautiful weeks where pretty much everyone started saying, "There's no way it's a bubble." Yeah. >> Look at the revenue growth. There's no way it's a bubble. But now people uh Steve over at Bloomberg, we can pull this chart up. The concentration >> Sure. uh in >> yeah I've seen this >> uh the market you can see >> the AI big 10 so mag 7 plus uh AMD broadcom and uh one other who is that micron >> now make up 40% of the market uh railroads for reference during 1835 to to 1910 where 63% of the market uh and he comps it to Japan the nifty50 tech and telecom throughout various periods of time uh and so I was reading this post by uh or this piece by Greg Ip in the Wall Street Journal and he was trying to disentangle what's happening in the overall American economy from the AI economy. What's uh where is the growth coming from? He sort of backed the envelope. He said the AI economy grew 31% while the nonAI economy just 0.1%. And he cites a few economic statistics that are recent. uh personal consumption, the biggest component of GDP grew a relatively muted 1.6%. Investment fell in housing, business structures. I think we're building, we're spending more in data centers than housing now, or office buildings, I guess. I I think it eclipsed office buildings uh and factories and transportation equipment like trucks and aircrafts. Meanwhile, investment soared 43% in tech equipment, obviously that's chips and GPUs, 23% in software, surprising. um and 22% >> had a pretty meaningful bounce back >> certainly on the revenue side. >> Data dog, Atlassian. Yeah, there's been some >> acceleration. It really was extremely widespread where you had I mean you had like Door Dash and and and companies with strong network effects where the software was not their moat. They still had to go and answer to the market. And some of them got in and out of that in a week or a month and some of them it took a quarter or two to show that there's resiliency. Some of them are still beaten beaten down but overall uh you know software is still doing very well. On the flip side uh there's another headline that hit the journal yesterday. US adds 115,000 jobs in April with solid hiring across sectors. Retail, transportation, warehousing and healthcare all showed strong growth and led uh to expectation beating jobs growth. And so, uh, this is the weird dynamic that, uh, you know, you're seeing all of this growth in the in the AI economy and yet, uh, the overall employment is still chugging along. We can pull up the chart from the Wall Street Journal, but, uh, the US job market blew past expectations in April, buoied by gains in in industries including retail, transportation, warehousing, healthcare. not completely unexpected given that those are not particularly AI targeted uh areas whereas you might see you know the layoffs in the tech community but that doesn't it's just not enough uh because the the US employs over 100 million people and so a layoff of 4,000 people at some tech company just doesn't really move the needle when you're talking >> breaking news from Gabe in the chat Texas Roadhouse is up says 20% I'm seeing 15% either way >> why is it up so high Uh he says, "You're not bullish enough on Texas Roadhouse." I have never been. >> Maybe they beat uh Yeah, >> everyone says this is a Kuryaku uh filter. It really It really is. >> It's crazy how vi how viral that meme format has gone. I thought that was just like a thing that I I sent to you because I'd be dying laughing about. >> No, no, it's quite quite popular. Broken containment fully. The American economy added 115,000 jobs in April. Uh this was down from a net gain of 185,000 jobs in March. Uh but it was much better than what expectations were for April. Uh analysts pulled by the Wall Street Journal were ex expecting 55,000 jobs and the real number came in more than twice that which is like it just breaks the narrative a lot. There is this disconnect between like the AI economy and the real economy. I was talking to Sager about this. It's like in in some ways it's like AI is Nvidia earnings is holding up the global economy and it's holding up the global stock market. It's not actually holding up the the the economy if you view the economy as all of the different uh jobs and and and activities that happen. Even if there isn't incredible growth there, there's actually a surprising amount of strength and resiliency. So the unemployment rate >> I'm I'm waiting to hit the gong until we see what the revisions come in in at. We haven't seen any revisions from March this time. I don't know. Maybe. >> It comes like it comes like it comes like over six months later. >> Uh the April report coming in after strong job gains in March shows how the labor market is holding up better this year than last. While healthcare is still leading the way in job gains, other sectors now appear to be picking up. Businesses are seeing conditions stabilizing and they have weathered the tariffs. So many are hiring. It's looking somewhat better than it did last year. Diane Swank, chief economist at KPMG, says it's still a high anxiety job market. Those who have a job are clearly clinging on while those who are looking for a job are feeling frozen out. I was uh I was digging into, you know, where where is their strength within the real economy once you go outside of AI, what is going on? And uh there were two recent earnings reports that were sort of disconnected but showed a little bit of the picture of what's going on. So, it was Whirlpool and Six Flags. Both had very different reports. So, Whirlpool, you probably know from refrigeration and uh washing machines, dryers, that type of appliance. They've been making an appliance for for over 100 years. And they've also been paying a dividend since the 1950s consistently. They've never they've never suspended their dividend. Even through all the great recession, the dot crash, every year they've been able to pay that dividend. They just cut their dividend. uh which is a really really big deal for this company since it's a dividend stock. The stock traded down on the news and the stock is down 80% of the past five years. Um and they're in some financial trouble like they have a lot of debt and they have a lot of competition. But you could play that as like okay the real economy is like completely chugging to a halt. At the same time, you had Six Flags, which is should be the thing that is the most discretionary, like do you go to the roller coaster theme park or not? And Six Flags just reported higher first quarter revenue. They're growing and they're growing attendance and customer spending. And so, uh, now Six Flags, it's not exactly a juggernaut of business. It's only worth 2.3 billion. Uh, and the stock is down over the past two years, about 50%. Uh but the business is growing and you wouldn't expect that during a time of like deep economic weakness. And so there's something odd going on there where as you think of refrigeration as extremely necessary, roller coasters as the ultimate like you don't you you can definitely skip it if you are cashstrapped. But the actual dynamics of the market are very different. So Whirlpool sells big ticket necessities these uh these refrigerators um but they are deferable. So you you can put off getting a new refrigerator. You can repair an old refrigerator if money is tight. Uh but your kids are only really roller coaster age for a limited time. Uh and Whirlpool also faces brutal global competition and existing home sales are down 3% month over month. And so all of that drives fewer appliance upgrades and they are not necessarily a beneficiary of all the international competition that they face from LG and Samsung and other international players. And so, uh, I I've sort of >> quick correction. Six Flags or or new information. Six Flags is has been, uh, up since, uh, since around November. It sort of bottom. Travis, I remember I was thinking of this cuz one, they have the ticker fun. Yeah. >> Which is fantastic. The stock has not been having fun. But Travis Kelce and a group put in 200 million. That's right. We talked about >> the stock traded down pretty substantially. >> Yeah, I remember that. after the investment, but it's basically recovered to where it was. And uh >> well, it's still down over the past like 5 years. Like two years ago, it was it was like a $5 billion company. >> Yeah. Down big. >> But but but but that what's interesting is that at this time of like economic uncertainty and all these questions about hiring, questions about uh economic resilience, they are increasing revenues, increasing attendance, increasing customer spend. Uh and that's what's driving the stock today. Uh and so I was looking at these two companies and I was like they they sort of fit into this uh this barbell thesis of the AI future which I've been seeing pop up more and more. And the two examples that I always give are one the Ellison family is both like long slop and long anti-slop. They have a ton of infrastructure investments in AI through Oracle and then they own legacy media like Batman, Superman through Warner Brothers. And then Josh Kushner is doing a similar thing with OpenAI and the San Francisco Giants. Like two completely opposite ends of the spectrum. So you can think of roller coasters as potentially like anti-slop uh because you can't vibe code Space Mountain. Um but uh but but it's interesting to sort of like dig into the weeds of what's going on in the global economy and the American economy and seeing like where the unsuspecting uh winners are. Ryan Peterson shared a post from the or chart from the Financial Times that perfectly illustrates our possible futures. This is so funny that this is in uh in the Financial Times, but they they fully embraced what happens in the human extinction tech singularity and the end of scarcity tax singularity. uh in the bull case uh real GDP per capita goes north of a million dollars and in the human extinction uh scenario it goes to zero of course but the AI boosted growth path is a steady trend upwards and that is that is the goal that I think everyone should be working for uh potentially the end of scarcity outcome as well and I and I think this this chart that Ryan shares is sort of sort of I think why there's anxiety in the market because uh there's this uh you know the the whole like you're not prepared if it's not a bubble concept. But uh there's there's like a dual anxiety where like if if AI gets too good, there's mass unemployment. Everyone's worried about that. But if AI is a bubble and it collapses, you go into a recession and everyone loses their job and like you're in a similar scenario of like economic anxiety for both the not necessarily the true doomers. I mean obviously they they face a similar uh you know opinion but even if you're just like in the it's overheated camp there's real risk to the stability and I think that's where a lot of the the the bubble concerns come from although we're certainly not seeing very many uh signs of of the bubble. I mean obviously the valuations are high but uh so are the revenue growth charts. So we can go through um some of the folks that are arguing. Are you more of a back of the envelope guy or a napkin math guy? >> Oh, that's interesting. I have a napkin here from Wonderco from the uh event I brought in. >> Oh, would you look at that little souvenir? >> I like uh I like a napkin. I like a napkin. Actually, now that I'm thinking about it, napkin math is insane. It's extremely hard to write on a napkin. It's way easier to write on the back of an envelope. >> Get a big envelope. You can get an envelope that's eight and a half by It's effectively an envelope is sophisticated. An envelope is is is kind of a core business utility, right? Napkins can be used for anything. >> If you're in napkin math, you got to pivot. >> I will say I'm much more of a napkin math guy. I can't I mean just just just um >> the phrase >> spiritually spiritually and the phrase that I pull. But if I can't get excited about an opportunity based on what can fit on a napkin, >> then I'm I'm never going to get excited about it. >> So you think a napkin is is definitionally smaller? It's a less amount. >> It's not It's not It's a It's a lesser vehicle than >> an envelope. >> Yeah, cuz a big envelope you could do a full spreadsheet on. You could totally you could you could write out comps. Totally >> and have multiple cells. >> Um No. So I'm I'm I'm in in practice I'm a napkin math guy, but if something was really serious, I would probably trade >> pull out the envelope. >> Yeah, we've been doing too much napkin math around here. It's time to pull out the big guns. Let's get out the envelope. >> Speaking of Speaking of envelopes, so this morning I was telling Tyler, >> um I'm I'm incredibly overwhelmed with Slacks, emails, you know, DMs on every platform, LinkedIn DMs, Instagram DMs, XDMs, all the different messaging apps. And I was thinking, how cool would it be if there was a service where you connected all your inboxes to and then every day they would print out all of the different messages and then bring them to you >> and you could put um like a box >> put you could put a box outside of your house and they would just put them in there and then at a specific time, you know, maybe in a roughly like 2 hour window, you could go out and grab all the printed out messages and sort of sort of like leave through them, decide what you need to respond to, you would potentially because you're only getting messages once a day, you would probably be a lot more intentional about what you wrote back and forth, right? Um, and I think that could be >> sort of the opposite of Earthlass mail, those virtual mailboxes, because they'll they'll they'll take your physical mail, >> but I want everything I want everything. I want to put a box outside of my house that people put um and I think there's something there. >> Yeah, >> Trump I mean, Trump literally does this. >> He does that, right? gets emails out and then he'll he'll write with a big marker his response and then his assistant will scan it and then email it back. >> Yeah. >> Uh more more on uh C Fry says a napkin is more available than an envelope. Very true. Often the best often the best business meetings >> Mhm. >> were not scheduled as a business meeting. >> So there aren't envelopes around. There's >> there's no envelopes around but there's plenty of >> napkins. Also, I mean, you're saying napkins are smaller, but if you're at a restaurant and you have like a fabric napkin and you want those can be pretty big. >> So, you're you're But I feel like it's bad form to be at a restaurant like you're not supposed to ruin the napkins or do you carry a pen that has washable ink? >> You have the crayons for the kids, right? People are >> The chat is saying they don't ask you. >> The chat is saying I could call my service the United States Post. That's a good name. Thank you, Alex. That's a great name. That's sort of like the the the San Francisco artificial intelligence company or something like that or the the browser company of New York. It would be inspired by that. Yeah. >> Uh I I I I think that even with the crayons crayon closedfisted grip right on the tablecloth. Okay. I Yeah. I I feel like uh I if if you give if you're given crayons, you are expected to maintain that the child uses the crayons only on the children's menu, which is typically made out of paper, very disposable. If you see the child using the crayons on a cloth napkin, you are expected as a patron to intervene. >> Jackson says, "Digitize this service and call it email." >> There we go. >> We got to We got to get We got to establish the mailbox first. We got an idea, >> but then we can go there. But I like where you're going. >> Well, there's some other uh there's some other posts about the the the markets. Justin Spitler says them be careful buying semis here. Obviously, the market's very very overheated. >> Let's play this video. Oh, this is Travis Pastana. >> Yes, >> that's amazing. Nitro Circus, we mentioned many times on the show. Is he drinking a Red Bull? What a >> Yeah. No parachute. >> No. Oh, no parachute. >> Yeah. So he jumps out of the plane, no parachute, drinking a Red Bull, >> and then he connects. >> He's got to do some tricks first. >> He's really taking his time here. The tension is building building. >> And so he connects with someone who wraps him up and then do they pull the parachute connect to each other >> or do they >> they they strap him to them? >> Oh. Oh, okay. There is a strap >> because it seems sort of crazy just to bear hug and and hope for the best. >> You're bearing it's Red Bull. Anything could happen. Um, >> I would I would I would expect him to be delivered a full parachute, his own parachute that he then, you know, dawn and and but he made it. Wow. Well, that's what it's like investing in semiconductors right now, I guess. Anyway, how was your last two days, Tyler? What What'd you get up to? >> It was sick. I was at the uh I went to the trial. >> You went to the trial >> opening Elon trial. >> Okay. Walk me through it. You left the the studio on Tuesday. You leave the office at uh 2 after we wrap the show on Tuesday. You went straight to the airport. >> I did. >> Okay. Yeah. >> And then what time did you go to bed? Because you woke up really early, right? >> Yeah. So I I I got to the trial. So it's in Oakland. I got to the courthouse at I think like something around like 5:30. >> 5:30. >> Yeah. Cuz you got to get in line. So basically, you know, it's a public cuz cuz it's like a federal case. Um there like has to be some room for the public. >> Uh but there's only like I think the number is somewhere like 20 or 30 cuz I I think it's closer to 20 because I think part of the 30 is reserved just for media. >> Okay. And when you got there at 5:30, were there already people standing in line? >> Yeah. So, so there were I think there were like three or four people there already. >> Okay. >> Um in line. >> Early bird getting the worm. That's >> Yeah. Well, I because I didn't want to be late, obviously. Cuz you cuz >> Did you talk to Mike people? >> Uh a few of them. I So, so >> were you there before Mike Isaac? >> I was there before Mike Isaac, >> but he has a media pass. >> So, so yeah, because last time when Mike Isaac came on the show, he said that because each like news >> Yeah. Uh New York Times got one pass and he was splitting it with Cade Mets and so they were sort of going back and forth and I guess he had a media pass that day. >> Yeah. So that day he had immediate pass. He got there pretty late. He got there like 7:30 or 8. >> Okay. >> So you're there from 5:30. He gets there at 8. What time does the trial actually start? >> Around 8:30. >> 8:30. Okay. >> Yeah. So basically I'm just posting up for like 3 hours. >> Okay. And then this is Wednesday. So walk me through like what what are you seeing? There's these opening remarks from the judge. They sort of welcome everyone in. >> Yeah. Jury comes in. Okay. Um, so there are basically three main like segments. So basically I'll say it starts 8:30, ends at I think 2 p.m. There's uh two breaks, two 20-minute breaks. So starts off and we we watch like the deposition of Miriam Marati. So this is all live streamed, right? The the audio is live. >> The audio is live. You're seeing a video. >> We're watching the video of her deposition. >> It's mostly covering the the ousting the timeline of the ousting. And and did >> this is where this is where all the the text came out that >> were they showing you the actual text? Were they playing a video or were they playing the AI uh reenactment of the text? Because we have this someone turned uh Sam Alman's text to Mirror Morati into a 2011 style emo teen teenage heartthrob anthem. Did this make it into the courtroom or no? Let's play this. We have the audio. Can you indicate directionally good or bad you anxious >> good motion graphics too talented >> what is thiso can you put in text into >> show play this for an AI skeptic Yeah. >> And and see what their reaction is because >> how do you see this and not want to build? I I've I've seen these before and I've always really enjoyed them, but um with most of the AI music tools, I've never found a great way to put in a full script that I've written to get the results. But does have that? >> So the author uh said his steps to make this. So first he OCR the images and turned them into plain text. So images of the actual text messages. and then removed the names from the dialogue, pasted into Sunno, and iterated like 20 to 30 times. >> And then finally thought this one was catchy. >> Okay. >> Um, yeah. >> Put up a version of this with the uh with the Gen Z brain rod sling. Yo, fam, can you give me a vibe check on am I cooked or not? For real. For real. Satcha and the gang lowkey stressing. Uh, Murmur Moratti, yeah, you're Skiibbidity. This isn't a rare L. This is an Ohio level generational or a loss little bro who ratioed me. Sam Alman says Mir Maratti some rando zesty NPC Twitch looks maxing sigma. I'm not even going to go further. What else happened? Did someone actually get on the stand or was it all video? >> Yes. So the first like >> it's straight up teacher played a movie. It's movie day after the movie day. >> The judge actually did get angry uh because like the she was like oh the juryy's going to get bored and like she was like offering them coffee and stuff. So basically, yeah, the first maybe hour was mirror deposition video and then we go through some of the actual like documents again of the text messages and then Siobhan Zillis is testifying. So she's physically there. She was a open board member 2020 to 2023. Okay. >> And she steps down when Elon uh started XAI. >> Yep. >> I have no idea how long that was. That was the majority of the >> It was during the whole conflict. So >> perfect person to testify. >> Well, no. So So she actually left the board before the ousting. So, she left in February 2023. Outsting is November. >> Oh, okay. Interesting. I didn't I The timeline always gets so jumbled up because like there's like 2018 battles between Sam and Greg and Ilia and Elon and then there's the board. >> Yeah. Because all throughout this hearing there's like Yeah. There's two main moments, right? Yeah. And we're sort of clicking back and forth between them. >> Yeah. Uh chat wants to know what kind of wombos were being thrown around. Was Lraine being used? people saying, "Can you please Lraine this email?" >> Uh Siobhan was actually dropping some good lingo. I I I don't know if any uh like Mike Isaac always uh talks about like they keep referencing Dota and they keep everyone on the stand is using a ton of jargon. How jargony was it? Was it like Dwaresh Patel podcast level jargon or like actual like researchers like talking to each other jargon or >> I would say it was not very sophisticated especially among the lawyers, right? Um okay Siobhan she did drop some good lingo. I I yeah it was some referencing some like why she got into AI about you know acceleration and all this. >> Okay. Okay. >> And then after that it we watched another like hourlong video of Helen Toner's deposition that was just about the the ousting. Okay. >> Yeah. It was very fun. I enjoyed a lot. Like basically almost everyone like sitting in my section which was basically the public and the and the media. Like everyone that came as the public were basically also media. They just didn't get the media pass. Sure. Sure. >> So, everyone surrounding me is is on their laptop like typing basically. Yeah. Just like taking down what's what's being said and then I'm just sitting there enjoying it cuz it's like, you know, >> it's good stuff. >> How would you rate Mike Isaac's like snack and overall food supplies for the day? Did he burn? >> It looks pretty good. I believe he did bring the butt pillow. >> It seems like he's not making progress on the food front. I would expect by day seven of this he would have a smorges board in front of him. >> I fasted the whole time. I was kind of I just knocked it Why didn't you figure we we have talked about the food situation so many times. How did you not think ahead there? >> I just wanted to make it more challenging. >> Okay. >> Yeah. I was like this is going to be too easy. >> Deep Seek is raising a monster 7 billion round at 50 billion valuation making >> hit China's largest ever AI raise. But what shocks a Jaws here cryptounk the most is the founder. He's personally contributing 40% of the round himself. Wow. Three billion coming from the founder directly. Owns 90% of the company. unheard of at this valuation. Deepseek was founded inside of his hedge fund, one of China's most successful funds. What a beast. Uh he's got to acquire as much compute to push out new Deepseek models. You know, we saw that chart that showed that uh Chinese open source models were sort of falling behind a little bit on a different growth curve in terms of performance, but uh you know, he's certainly betting on getting back in line having a uh you know, frontier model within within a couple months. Zack Brock says, "Congrats to Anthropic for defeating Grock in the market and feasting upon the compute of their fallen enemy." >> Yeah, basically every time we take every time we take a day off the show, like something big happens. Uh on Wednesday was the was the XAI or SpaceX anthropic deal. A lot of people have been predicting that. I I was not simply because I thought there it it was like the rational decision for the parties but I thought that the tension between you know Elon who had only a couple months ago been you know hurling insults at the anthropic team I didn't think they would be able to uncover that those cultural differences totally >> uh but demand for compute finds a way >> yeah I think that you and others had identified the possibility of becoming a neocloud selling the comput last year last year. I was talking about that a lot all the time. I was like, look, they're incredible at building infrastructure really really fast, bringing power online. This feels like a very strong a strong uh use for Elon Inc. >> Uh and uh but I but as things evolved, I just didn't see I didn't see this coming together. >> I didn't see this coming together specifically because of the cursor deal. I thought the cursor deal was the long-term solution for all that compute and then the compute sort of got sold twice maybe. But of course uh there are multiple clusters, multiple Colossus data centers and plenty of work to be done as uh SpaceX continues to uh grow their ambitions.