Swatch & AP Collab, Cerebras Boosts IPO Price, Trump to Visit China | Diet TBPN

We got a banger show for you today, folks. We got a lot of guests coming on. We got two hours of back-to-back interviews with everyone from Spencer Rascoff, the CEO of Match Group to Alex Tubman of Long Lake Management. Quaid's coming on from Bezel. He's going to take us deeper on our first story, which is of course Adomar Pig. AP is partnering with Swatch to launch a watch that's uh you could call it a knockoff of the Royal Oak. It's certainly it's not a knockoff because it's official. It's from the actual they knocked themselves off and there's a bunch of interesting business implications of why they did this, what it means, what will happen. Uh let's pull up the video of the launch first. And you got to tell me, do you think this is AI or CGI? Because it's a launch video and in 2026 it's hard to tell the difference. So, we're going to play the This is from the official Swatch account. This is something that looked like uh like a fake clickbait video, but it's real. Here it is. What do you think? AI or CGI? >> CGI. Precision handmade CGI just like watches. >> Yes. Not a transformer in sight. The way my grandfather used to like it. Uh there will be interesting push backs of like, oh, this this movie is awesome. It only used CGI. No AI involved whatsoever. Wait. So, is it a manual watch? Is it a >> I think it's unclear. Right. So, what what there's been a massive amount of of uh everyone has basically created somewhat realistic looking posters for these. The actual watch has not been revealed at all. That's the only thing that's been >> just based off of the fact that Swatch did a collaboration with a luxury watch brand, the Moon Swatch, which was based on the Moon Watch, right? >> Oh, yeah. I forgot about >> Yeah. And so the Moon Swatch was successful and was a a more accessible entry point to the Moon Watch, which is from Omega, which is sort of in that like Rolex tier. And uh I don't know if the Moon Swatch what uh how they saved cost because there's a certain amount of cost that just goes into making a uh a movement, a mechanical movement. It's a lot of small pieces. Sure, you can put it on a manufacturing line and press them and stuff. John learning that couple >> watches have egregious profit margin. >> I know they have egregious profit margins, but still like like the the the work to put together all the gears and manufacturing it like I would be surprised if if if it's a mechanical watch, is it really going to be like $5? No, it's not happy. >> So there's there's uh the fake Chinese version of all of these popular watches, Nautilus, PPS, etc. You can get them like you could go on Alibaba, get them for in the low hundreds of dollars, right? And so it is totally possible to put together a watch totally >> that has a lot of the same componentry. >> I saw Nico Leonard on uh who's a great YouTube watch reviewer, fun, very uh fun creator on the ice coffee hour with Graham Stefen. And they gave him, this is a fun little uh game that they they're getting really good at playing games with their guests on this podcast. So they give him six watches and they tell him that three of them are knockoffs and three of them are uh are authentic and he has to guess and he nails it. He gets all of them corrected. >> Uh even though some of them were very convincing uh fakes especially of >> PC. So a lot of people are saying this is barely it's over. They're saying freak out about buy00 rest in peace. AP has um you know consistently done things over the last few years to that were provocative right some of the various partnerships they've had with talent right celebrities etc have been somewhat provocative uh but overall I the brand seems healthy right it's not going to be for everyone I think in some ways this decision could be seen and again I'm no watch expert but y >> uh fakes are flooding the market globally >> and why not just lean into that basically. And uh the other thing is they don't have any entry level like the gap between you know what I'm sure this this um this Swatch AP will end up retailing for far more or sorry not retail but secondary will be far more than >> than whatever it goes out at. But the gap even then between that and a real Royal Oak Yep. >> will be immense. Right. >> And the gap has been growing because the aftermarket prices have been increasing >> and they want incomes. They basically were like, "Oh, this is what our watches are worth aftermarket. We should price there, right?" So, >> and so you quickly wound up with like to get in the game, you're in you're at 30K and that's just a lot and there's not as much of a like a walk crawl run to get into the ecosystem that some brands have. AP certainly has not had that. And now this is >> you go with the code. >> You go with the code. >> Aren't those like 60 though? >> Oh, they are. >> I think they're really expensive. No, I think they're really pricey. I don't know. Um but uh yeah, maybe they'll bring down the price on that. Live monitor says spend half a million dollars or $500 and you get something that looks pretty similar. Of course, very different materials. Very >> You can get a code $159 for low to mid20s. >> 20s. Okay. But there's another watch collab that I want your reaction to. You got to see this. This one's going to fly off the shelves. Potentially selling more units than the Swatch AP collab. It's the Rolex collab. We can pull this up. >> Something you've never seen before. And you won't see again a chrome hearts Rolex Daytona 18 karat gold. Starting offer 370,000. Okay. If you want it, there's only one way to get it. I've never seen this watch before. Neither have you. That's why I'm showing it to you. >> Do you think this is real or just something someone made randomly? >> Official Rolex over here telling me that the dial might be aftermarket. >> I don't know. You figure that? >> I don't know. I don't I don't follow. It's funny. Um >> somebody on X over the weekend was um assuming that I was into chrome hearts because I've joked a lot about chrome hearts, but no, I'm not enough of an expert >> uh to >> No, that's Dylan. Um Dennis is playing off of your joke, saying, "I tried to buy the Swatch AP Royal Pop collab, but they told me I had to buy this collab first, and it's the code 1159." If you're not familiar with the code 1159, it's the newest watch from AP, but it has a less distinct silhouette than the Royal Oak and has been not loved by the biggest fans of AP broadly. And so it has been underelling probably relative to the the new Rolex. Uh- which which one's the new Rolex? The Land Dweller, which has been, I think, selling very well. And uh it this one has been the code 1159 has not been doing as well. Uh, let's head head over to Reddit and check out what they're doing there. >> What are they doing there? >> Somebody has figured this out ages ago. I want your reaction, John. Omega on one side, but the Omega is strapped to the wrist with a Whoop band. >> Yeah, Whoop on the inside, Omega on the outside. It just doesn't feel right. It feels a little unnatural to me. But I did I have seen a lot of people wearing the Whoop bands lately. And I think that there's some remarkable data. I was talking to someone who connected the their Whoop data and and found out that they had sleep apnea by analyzing it with an LLM and uh which is something you would expect Whoop to be doing on their side, but for regulatory reasons, it might be slower for Whoop to roll out that feature of like health monitoring and so there's a lot of like DIY science that comes from it. So, I don't know. It's weird no matter what because if you have a Whoop on one end and then and on one hand and then a watch on the other, that's an odd choice. I feel like isn't there an opportunity to put the Whoop band somewhere more discreet? Like even like a chest monitor would be less >> I think you can. >> The aura ring is not very intrusive, but they should really make the uh what do they call it? The the the Boston Fitbit. It's the ankle monitor or something. I can say that because I'm Irish. Uh, but there was some debate over AP's motivations. Ariel Grier says, "As an IP nerd, I love this. AP's trademark loss means they lost the moat around their octagonal bezel and their dial." So, what did they do? They loun they license its crown jewels to Swatch for a flood of legit affordable royal pop pieces, a masterclass in damage control. This is on this news that AP lost a trademark fight in Japan in 2024 and in the US in 2025. The courts ruled that the bezel and the dial aren't distinctive enough to legally own, but there's some push back in the community notes. >> Here's the thing. They they have managed to, I think, maintain a trademark around the the octagon. >> Yeah. Well, there's a trade dress, so you can never do a full fa a full knockoff of a direct product, but they couldn't lock down the idea of an an octagon. That was like simply too much. I don't know how much of this was was damage control around the intellectual property, but uh it's certainly certainly an interesting thing. And there's also some people thinking that this is a way to make money. You see this gem changer said, "Every unemployed guy with a group chat of equally unemployed friends, this post is for you. The uh the Royal Pop drops Saturday, May 16th. They're coming out with this quickly. Just one week teaser and then it's out. Uh he says, "This is the easiest four figure week you'll have all year. If you're willing to do something that resembles work, resembles work for 14 hours if you're willing." Uh let me lay out exactly what to do. Retail is in the $400 range. It's instore only. There's no online sales. They're limiting it to one person, one piece per person per store per day, not two. So your hustle is per warm body, not per pair. And then uh there he shares some uh some expect some expectation about where this might trade maybe uh 12x retail, maybe 5x retail. And so if you go and you wait in line and you buy this and then you sell it online, you might be able to make a pretty penny pretty quickly, but you'll need a bunch of friends. And he gives a bunch of advice on where you should go. Avoid Soho, Times Square, London, Singapore. You got to go to secondary cities. Troy, Michigan, King of Prussia. Uh, Kenoga Park, Honolulu, going to Honolulu just for this. Um, >> I think this is I think this is going to be a hit. I think the haters are wrong. People love G-Shocks. Sort of a combination. >> I think so, too. It'll do well. >> It just seems like a fun a fun watch. And I and I do think it's a nice entry point for someone who's getting into watches, like start with this, then get something else. It's like a Stver like, you know, uh uh it's a point along a curve, which I think will be popular. And it's also just like a lot of fun and and it'll look good. Anyway, >> let's head over to China. >> What are they doing over in China? They're >> BYD. >> BYD >> got Daniel Craig as the new face. >> Build your dreams. They're building their dreams for the Denza luxury EV. James Wood says it's an amazing ad. And Adam Thomas says, "China uses B James Bond for a Euro push. The world is changing. Let's play this advertisement from BYD. A >> world with the capacity to find change. But just as spring follows a harsh winter and summer looks back on a routine spring, old selves, past identities, they ship. They have to so exciting, do you think? >> I mean, doesn't life ask us to step out of the shadows and embrace the new to evolve or not? >> Are there car seats for dogs? >> I don't think so. I think it gets pretty dangerous. Although, that dog looks like it's wearing some sort of harness. That could be tied in. >> What do you think? >> Yeah. >> See, post James Bond, he has a lot more comedic timing. He's done SNL a few times. He He's done a couple comedies. There's a lot more to it, but he will still just never not be James Bond because he had such a successful run of James Bond performances. He's really driving this car. >> Is this buzz? Buzz. >> Rewind 10 seconds. >> Okay. What are we listening for? >> Listen, cuz there's some uh >> Okay. >> Doesn't that Doesn't that sound like a internal combustion engine for a second there? >> Yeah. >> So, they're laring. >> It's played through the speakers while you're driving. Is that an option? >> Maybe. >> I feel like it has to be an option if they're advertising it like that. >> Yeah. >> But who knows? You never know with these with these BYDs if there's actually an internal combustion engine in there somewhere that can activate at a certain point. Like everything feels like a hybrid these days. But I mean, it says luxury EVs. What a great partnership and what a great run from Daniel Craig to be able to just like cash in on the the aura of being James Bond forever, even after the franchise ends and he has to move on things. It really is remarkable if you're Daniel Craig. Uh and it also helped that do you ever see layer cake? No one seen Layer Cake here. Oh, such a good movie. And he plays he plays like sort of a someone involved in like the drug trade in Europe, but it's a very James Bondesque character. And so even throughout his portfolio of movies when he's and then and then uh he plays Benois Blancc from uh Knives Out. And even that character, even though it has a different even though he has a different accent, it still feels like he carries the authority of a James Bond-like figure. And so he's always had this same demeanor and aura around him that's been built through his entire cinematic portfolio that he can continue to cash in on. And when you're thinking about advertising a particular car like an Aston Martin, like this luxury BYD, your mind goes to him before anyone else really. >> European price tag is 134. >> Oh, okay. They're actually getting pricey. Usually like when you see these BYD numbers, it's always like it's the performance of a Ferrari for the price of a Camry. Well, so there's the Denza Z, which is the the estimated price is 60 to 140 and then but a lot of the other Denzas are in the 40 to 60K range. >> Okay. Okay. Not too bad. Not too bad. Well, uh, you know where I'd like to see Daniel Craig do his next endorsement? Cerebras. I would love to see a Super Bowl ad where >> he's lamenting the slow speed of AI inference and he >> solves his problem in this Super Bowl ad by partnering with Cerebras, firing up some Cerebrus chips. Uh the IPO is looking like it's going very very well. So Cerebras updated their filing according to Reuters. The IPO date will be Thursday, May 14th. I heard maybe Wednesday, but any day now. and they're offering 30 million shares. That's up from 28 million. So they're they're offering more shares than they were expecting to. And they also increased their price range from 115 to 125 up to 150 160. And so they're going to raise instead of three and a half billion, they'll be raising 4.8 billion. And allegedly the uh the round is massively overs subscribed to the tune of 20x demand for that five billion. So uh something like uh wait a 100red billion of demand for that 5 billion which is remarkable at that price. Now does that mean it's going to 10x on day one? No. But uh it's certainly a good sign going into this uh this IPO. And so that's why I called it like a potential $50 billion IPO just to sort of have some some parallelism with the $500 watch and the 50 trillion of IP of GDP meeting in China that we'll talk about later. Um, so there was a bunch of fun. >> Thompson this morning says, "If you were looking for an ideal time to IPO, being a chip company in May 2026 is hard to beat." >> It really is. It really is. He had a great piece called the inference shift today in Strateer. Go check it out. There's been a bunch of FUD about Cerebrus. I mean, for a long time, they were just sort of like building in stealth or talking about the idea. Takes a really long time to to design these chips, tape them out, and then actually produce them. And then the first version is less flexible, less designed collaboratively with the companies that are using them. So there was like one customer that was buying them and there was a lot of customer concentration. Now the chips have actually been deployed and there was this big narrative about like okay well they're maybe overly optimizing for the transformer architecture. What happens if the AI researchers come out with like attention is all you actually don't need that much. Attention is nice and useful but we have a new thing that's better and that didn't happen. And so attention and transformer-based architectures are still dominant and inference costs are extremely important in the age of AI agents and and uh speed is is so so important and so demand is you know 10xing every few months at this point and there's a very very clear business story. Tyler, you have anything on cerebras? >> Uh yeah, I mean just like if you use the cerebrus chips like you can use it GPT 5.3 spark I think in codecs. It's like insane how it's crazy. It's crazy. It's wild. >> Yeah. if you want to give it a try and actually demo it. Uh which I think is important with these like uh with these these these uh like semiconductor companies if they're like abstract and you're like I don't know if it's like a real company or something like you can actually just go down load codeex desktop pick from the down from the dropdown 5.3 spark and then you can you don't even have to get it to do code. You can ask it history of the Roman Empire and it will just instantly tell you a full page of exactly the response uh with 5.3 level intelligence which is pretty good. uh and it's a pretty remarkable experience and you can imagine this coming to every LLM interface every AI experience which has normally been like for any meaningful work fire it off come back five minutes later sometimes two hours later uh will cut all of that in in you know in half or by 10 and that's where this is going so you can see you know uh significant demand even though there's this like customer conc concentration thing I don't know why there wouldn't be a lot of different customers lining up every every lab that has exploding demand cursor anthropic uh meta and Google like unless they have like a direct answer to this I I would see them being a buyer in the near term. So the uh Cerebus upsized its IPO and top of the new range. Reuters says the IPO drew orders for more than 20x the shares available. Uh Cerebus makes AI inference chips and lists Amazon and OpenAI among customers. So uh there was there was a question about like was it all open AI and I guess Amazon has jumped on uh very flexible with regard to the chips that they rack over at AWS. Uh Poly Market is projecting Cerebras to close above 50 billion market cap by the end of day one. That would be about 100% above the target valuation of 26 billion that was previously reported. So preparing for an IPO on the NASDAQ uh next week under the ticker CBRS. And traditional semiconductor manufacturing works like this. A silicon wafer is fabricated. The wafers cut into hundreds of smaller chips. The chips are packaged individually and connected together in systems. Cerebras took a completely different approach. They use the entire 300 millimeter wafer. Four trillion transistors, 900,000 AI or AI oriented compute cores and the big thing is the pabits per second of internal bandwidth. So better memory bandwidth for uh KV caches and everything that you need to do in AI. I think something like that. uh Benchmark is going to be absolutely cleaning up. They still own over 20% of Cerebrus apparently. Uh if it trades at even half of how Shanghai priced more threads in Cambercon, it will be over 500 billion in less than two years. Okay, that's a big step. Uh it will break the venture model if they hold. Has a shot to deliver the number one fund in VC history benchmark on an absolute tear. Uh, Quantia says, "Cerebrus is pretty funny because you can just imagine the origin story being some boomer non-technical manager going, okay, but why can't you just put 50 gigs of of L3 cache on this chip?" And the engineer being put on the spot and going, "Uh, I guess you could." And, uh, said, "Uh, someone else in the comments here chiming in, I I random history major had a much less important version of this conversation with my college roommate, fancy engineer, doing computer vision stuff. one time and still feel really good about it. I think it helped just we weld the thing that does that onto the other thing. Have you considered building the entire plane out of the black box? But it works and the plane goes knock 10. That's exactly what happened. Well, let's move over to China. Donald Trump is meeting with uh Cunping this week and uh you were you were sharing some info on how many journalists are going over there. >> They're calling it a field trip. >> It's a field trip. They're calling it a field trip because Tim Cook is going, Larry Frink, Stephen, >> I thought it was journalists, but I guess it's tech people. >> Jane from City, Chuck Robbins is headed over there, friend from Cisco, David Solomon. >> Interesting. >> And a whole bunch of others. I guess Elon is supposedly on the trip as well. >> Hopefully they can get a word in edgewise because the the the vast majority of the discussions will obviously center around the war in Iran. This is from the Wall Street Journal. As the heads of the world's two superpowers meet in Beijing this week, President Trump and Chinese leader Cinping will have another nation looming over their summit, Iran. The long anticipated meeting has been delayed once due to the US and Israel's war against Iran, which led to the closure of the Strait of Hormuz. Trump is eager to move on from the Middle East war that is sapping his domestic power and straining the global economy. the uh >> as of this morning, the peace deal was, according to Trump, on major life support. >> On major life support. Is that good? I guess it's better than it being dead. So hopefully we get a peace deal because if you're on life support, sometimes you can have a miraculous comeback. I don't know. That's what I'm pulling for. He will land in Beijing prepared to push China, which relies on Iran for lowcost oil in their transactional relationship to help broker an agreement that ends the conflict. Uh, Cinping also wants the fighting to stop as Middle East turmoil restricts China's oil supply and shrinks countries ability to buy Chinese goods. Finding a resolution could raise Cinping's stature as a global statesman who swooped in at the precipice of a possible military escalation. Trump on Friday threatened to resume Project Freedom, the US-led operation to help ships navigate the straits safely, adding this time that the operation would include quote other things. Very ominous. So, I think uh there's a few different things. So, uh Trump uh the the deal is on life support, but most recently he rejected Iran's latest response to a US peace proposal. They're going back and forth. Oil prices have climbed amid fears of a prolonged disruption through a choke point that carries roughly 1ifth of global oil flows. And the summit is focused heavily on Iran but also uh trade deals specifically Chinese purchases of American agriculture, energy, aerospace products and some other related investment mechanisms. But uh the tech industry is obviously hoping to like wind down the conflict peacefully and quickly and then move on to discussions of export restrictions, GPUs, the AI supply chain, rare earths, all the different things that go into what the tech industry needs to flourish. Uh, but I was thinking we wouldn't get that much movement or that many sound bites from this trip based on how large Iran is looming. But with all of those tech CEOs there, you would imagine that there's some conversation that happens. >> You think they might be clip farming? >> Potentially potentially a fararmming potentially frameing each other. You never know. Tyler, what do you think? >> Uh, yeah. I think it it would be interesting if it's also, you know, at a higher level than just the supply chain because like last week there was all the news about uh C AI SI, right? doing the new um AI regulation, right? Like what's going to happen? Like are we going to you do a bunch of tests before the models come out? It seems like they're kind of moving away from that like less kind of safety focused. >> China should be like send us Mythos 2. Give us unfettered access. Ideally, like enough to distill it really quickly and then we will also say whether or not it can be released in China. That would be ideal for us. >> Why stop there? Why not just send the weights? >> Yeah, just send the weights. That's that's actually way more easy. We'll >> Yeah, way more efficient. We'll inspect it and we'll make sure that it's okay for the Chinese population. >> Yeah, but you know like the we we've talked about this a little bit before >> actually send send all the GPUs I need to run it too. >> Sorry. >> We we've talked about this a little bit but like there are people in China who are actually worried about like the you know very like safety pill. Um but it seems like people going over there like Tim Cook Elon these people are not going to be arguing in favor of like safety. >> Palmer brings up an important point. It's time for the United States Postal Service to ban junk mail. Ooh, I like >> unsolicited spam calls are already prohibited by the FCC. Emails are he heavily regulated by the can spam act of 2003. Junk mail is the majority of mail. 100 million trees per year. Enough. It really is way too much. >> This is very interesting. I I I thought I put all of the the blame or I I guess the credit I gave all the credit to Google with the fact that like I don't get spam emails. I get emails if I buy something online and I forget to uncheck the box and that's kind of on me or if I'm subscribed to a newsletter and it gets boring and I'm like, "Ah, this is junk. I'll need to deal with that." But like very rarely do I just get a true spam email. Just like truly slopp pretty rare. Uh and I think some of that's the filtering, but also the can spam apps seems to be somewhat effective. I wind up getting a lot more spam phone calls and a lot more spam text messages these days than spam emails in terms of like cold outreach that's completely undirected. And so yeah, maybe they need to expand the spam the can spam act. Shouldn't it be the can't spam act? I don't know why they call it can, but uh it has been successful at least in email, but I agree with this. This is good. Uh Palmer says, "It's insane that America has given a monopoly on letter delivery to a quasi governmental agency that then uses it to flood our homes with useless garbage against our will. America would never allow FedEx, UPS, DHL, or anyone else to force this on us. Even ignoring the wasted taxpayer money, insane moral hazards and ecological impact, the lost time and productivity is inexcusable. I agree. If the average American spends only 30 seconds sorting their mostly spam mail each day looking for the real stuff that's over a billion dollars. Well, Earth class mail Palmer, I think you need a PO box that scans the emails or scans the physical mail and delivers it to an email inbox. Throw open claw in front of it and have it decide what's what makes it through. New service for SF retailers and home buyers. I will show up to your open houses wearing open AI or enthropic merch. I charge 5% commission just to just to fully pump up the price. Uh it's called chandelier. >> Will that actually help though? Because I think some people >> would be would be afraid >> would just be like I'm not even going to bid. >> But I think some some people at the open house tour might see oh there's an open AI or anthropic person. I should make my offer particularly strong if I want this. Even if there even if there isn't that much uh that much demand. I love the founder railway. It's great. Um what else is going on here? Uh, new before Chad GPT release, before Microsoft's $1 billion bet, and long before plans for an IPO, there was the University of Michigan putting 20 million in AI. >> Pull up, Tyler. Pull up, Tyler. >> What What happened here? Like, how did this actually happen? There we go. There you go. Nailed it. >> Tyler, your homework. Learn how to get that more dialed because I hit that pretty often for you. and every you know >> every time you go the wrong direction so so just something to work on that's just some constructive feedback I believe that you can be better at this at this task >> this this feels like the University of Michigan was considering donating and then at some point it just became they just became aware of like oh well like you could also participate in the for-profit and they were like oh that sounds better maybe like let's let's put this in my mom is so bad with technology she literally tried to search up info about energy drinks and accidentally set set our house up as a business. >> What is an energy drinks? Could you imagine like starting with a Google search and ending up like creating a business on Google maps for your exact address under the name what is in >> all the time >> and and people think AI will diffuse quickly debatable debatable leave us five stars in Apple podcast and Spotify sign up for our newsletter tbp.com goodbye