1 00:00:00,020 --> 00:00:05,120 Ejaaz: OpenAI just shipped GPT 5.2, the new best model in the world. 2 00:00:05,420 --> 00:00:09,060 Ejaaz: And yet, why does it feel like they're still fighting for survival? 3 00:00:09,680 --> 00:00:15,600 Ejaaz: 80% of Vibe coding is done using Claude Anthropics model, and more people are 4 00:00:15,600 --> 00:00:18,580 Ejaaz: using Google's Gemini models versus ChatGPT. 5 00:00:18,700 --> 00:00:22,380 Ejaaz: So it begs the question, what's OpenAI even useful for? 6 00:00:22,580 --> 00:00:27,920 Ejaaz: In fact, this year alone, they're projected to lose $20 billion and only projecting 7 00:00:27,920 --> 00:00:31,200 Ejaaz: to be profitable by 2030. That's five years from now. A lot can happen. 8 00:00:31,400 --> 00:00:38,700 Ejaaz: And on top of all of this, they have a $1.4 trillion bill to pay on compute and data center costs. 9 00:00:38,880 --> 00:00:42,920 Ejaaz: So whichever way you look at it, the walls seem to be closing in on OpenAI. 10 00:00:43,200 --> 00:00:47,280 Ejaaz: And Sam is feeling the pressure. He called in a code red two weeks ago, 11 00:00:47,420 --> 00:00:50,620 Ejaaz: which companies only really do when they're in crisis mode. 12 00:00:50,780 --> 00:00:52,780 Ejaaz: But all might not be lost. 13 00:00:53,080 --> 00:00:58,080 Ejaaz: ChatGPT is still the number one AI app in the entire world. And just last week, 14 00:00:58,200 --> 00:01:04,600 Ejaaz: they signed a $1 billion deal with Disney to license their IP to create AI-generated video. 15 00:01:04,880 --> 00:01:10,560 Ejaaz: And rumors are amongst the grapevines right now saying that OpenAI may be IPO-ing 16 00:01:10,560 --> 00:01:14,840 Ejaaz: next year at a $1.2 trillion valuation, which will give them the much-needed 17 00:01:14,840 --> 00:01:16,960 Ejaaz: capital that they need to win. 18 00:01:17,440 --> 00:01:22,520 Josh: Yeah, in 2023 and 2024, the world was basically like, ChatGPT equals AI. 19 00:01:22,740 --> 00:01:24,520 Josh: If you're using AI, you're using ChatGPT. 20 00:01:24,780 --> 00:01:28,380 Josh: In fact, most people off the street If you ask them what AI was, 21 00:01:28,520 --> 00:01:29,780 Josh: they would tell you it's ChatGPT. 22 00:01:29,980 --> 00:01:34,140 Josh: There is a complete and total domination of the marketplace by this company. 23 00:01:35,060 --> 00:01:37,920 Josh: Up until this year this year the question has become 24 00:01:37,920 --> 00:01:40,800 Josh: not chat gpt does equal ai but like which ai 25 00:01:40,800 --> 00:01:43,660 Josh: do i use for which task there's not one ai that 26 00:01:43,660 --> 00:01:46,820 Josh: does everything anymore because they've kind of siloed themselves into these 27 00:01:46,820 --> 00:01:49,720 Josh: individual buckets where if you want to write code you don't go to chat gpt you 28 00:01:49,720 --> 00:01:53,320 Josh: go to anthropic if you want to create images you go to google and chat 29 00:01:53,320 --> 00:01:56,140 Josh: gpt is no longer the all-in-one app it's 30 00:01:56,140 --> 00:02:00,940 Josh: a place where you go to solve a specific set of problems and like sticking with 31 00:02:00,940 --> 00:02:04,400 Josh: the war analogy because this is the game of thrones it's like open ai used to 32 00:02:04,400 --> 00:02:07,580 Josh: have the only aircraft carrier in town everyone had to come through them to 33 00:02:07,580 --> 00:02:11,360 Josh: use them but now everyone has an aircraft carrier and the differentiator really 34 00:02:11,360 --> 00:02:13,420 Josh: becomes like supply chains alliances 35 00:02:14,100 --> 00:02:18,080 Josh: distribution and your ability to build applications that create actual value 36 00:02:18,080 --> 00:02:22,720 Josh: for users like us who want to use them so that takes us just to i guess 5.2 37 00:02:22,720 --> 00:02:26,120 Josh: which is what we're going to talk about today that open ai just recently launched 38 00:02:26,120 --> 00:02:30,220 Josh: and it should give us some hints as to where the company is going as they try 39 00:02:30,220 --> 00:02:33,800 Josh: to fight this resisting force that's closing in around them from all ends. 40 00:02:34,440 --> 00:02:39,320 Ejaaz: Yeah. So the resisting force comes in the form of Google's Gemini 3 Pro, 41 00:02:39,460 --> 00:02:43,680 Ejaaz: which released two weeks ago, and then Anthropics called Opus 4.5, 42 00:02:43,820 --> 00:02:46,020 Ejaaz: which is the frontier model when it comes to coding. 43 00:02:46,200 --> 00:02:49,740 Ejaaz: So really, when OpenAI released this model, people were looking at these two 44 00:02:49,740 --> 00:02:51,640 Ejaaz: competitors and seeing how it weighed up against it. 45 00:02:51,970 --> 00:02:57,050 Ejaaz: And the answer, Josh, is really, really well. It technically beats Claude Opus 46 00:02:57,050 --> 00:03:02,630 Ejaaz: 4.5 encoding and it beats Gemini 3 Pro against a range of different generalized AI activities. 47 00:03:02,870 --> 00:03:06,550 Ejaaz: So technically, I think it is the best or number one model in the world. 48 00:03:06,790 --> 00:03:10,770 Ejaaz: And the reason why I'm kind of like a little uncertain about this is I just 49 00:03:10,770 --> 00:03:14,830 Ejaaz: feel like, to your point, they're gamifying towards benchmarks that don't really 50 00:03:14,830 --> 00:03:16,550 Ejaaz: matter or don't really apply to the real world. 51 00:03:16,670 --> 00:03:20,330 Ejaaz: But there is one particular benchmark that I thought was really cool that it 52 00:03:20,330 --> 00:03:26,470 Ejaaz: excelled in, which was GDPVAL, which basically measures how GPT 5.2 performs 53 00:03:26,470 --> 00:03:29,530 Ejaaz: in real-world expert-level tasks. 54 00:03:29,650 --> 00:03:33,770 Ejaaz: So I'm talking about things that people do in work that professionalize in their work. 55 00:03:33,790 --> 00:03:37,910 Ejaaz: And it was measured that in 70% of cases, Josh, 56 00:03:38,350 --> 00:03:43,470 Ejaaz: human experts would choose GPT 5.2's output and answer and the way that it deals 57 00:03:43,470 --> 00:03:48,070 Ejaaz: with that particular task versus an expert professional human that that's paid 58 00:03:48,070 --> 00:03:51,610 Ejaaz: hundreds of thousands of dollars a year which which kind of blew my mind and 59 00:03:51,610 --> 00:03:55,450 Ejaaz: that was the most valuable kind of takeaway um with gpt 5.2. 60 00:03:55,450 --> 00:03:58,230 Josh: So chat gpt feels like it's stuck between a rock 61 00:03:58,230 --> 00:04:01,250 Josh: and a hard place where they're optimizing for these vanity metrics but the 62 00:04:01,250 --> 00:04:04,050 Josh: actual day-to-day experience for a lot of users like 63 00:04:04,050 --> 00:04:07,390 Josh: myself and you are just not really changing much 64 00:04:07,390 --> 00:04:10,210 Josh: the product has mostly stayed the same the models are getting better 65 00:04:10,210 --> 00:04:13,450 Josh: but the only difference that i notice is that the 66 00:04:13,450 --> 00:04:16,510 Josh: tick in the little top left corner goes from 5.0 to 5.1 and 67 00:04:16,510 --> 00:04:19,210 Josh: now it says 5.2 but in terms of the actual outputs in terms 68 00:04:19,210 --> 00:04:22,330 Josh: of my experience using the platform not a whole lot has changed in 69 00:04:22,330 --> 00:04:25,970 Josh: addition to this they have tweaked the cost a little bit which is pretty pricey 70 00:04:25,970 --> 00:04:32,670 Josh: it's um 21 per million tokens in 168 per million tokens out so you're paying 71 00:04:32,670 --> 00:04:36,990 Josh: for a frontier model for sure and this is probably a result of them just using 72 00:04:36,990 --> 00:04:39,730 Josh: a tremendous amount of compute to optimize for these benchmarks, 73 00:04:39,990 --> 00:04:44,690 Josh: which is bizarre because Sam Allman came out and said, this is a 390x cost reduction 74 00:04:44,690 --> 00:04:48,550 Josh: in a year, which is pretty remarkable and 75 00:04:49,070 --> 00:04:51,930 Josh: You really have to take a step back and appreciate what they've been doing, 76 00:04:51,930 --> 00:04:56,270 Josh: because a lot of the sentiment around OpenAI right now is fairly bearish in 77 00:04:56,270 --> 00:04:59,790 Josh: the sense that they have a lot of hard challenges they need to overcome in order 78 00:04:59,790 --> 00:05:01,070 Josh: to make this whole thing work. 79 00:05:01,450 --> 00:05:06,670 Josh: But a 390 times cost reduction in anything in a year is pretty remarkable. 80 00:05:06,810 --> 00:05:10,610 Josh: And that's relative to, I believe, 03, which was, if you could believe this, 81 00:05:10,690 --> 00:05:14,330 Josh: it was released a year ago, which feels like an eternity ago. 82 00:05:14,550 --> 00:05:16,950 Josh: But it was literally not even 12 months ago. And since then, 83 00:05:17,050 --> 00:05:20,250 Josh: we've gotten, I mean, you could look at this Arc AGI chart, which is the benchmark 84 00:05:20,250 --> 00:05:25,210 Josh: that kind of everyone uses to gauge where these companies are on the path to AGI. 85 00:05:25,590 --> 00:05:29,410 Josh: They've made such an incredible improvement. And that token that used to cost 86 00:05:29,410 --> 00:05:33,630 Josh: a dollar now costs, what is one four hundredth of a dollar, whatever that is, 87 00:05:33,670 --> 00:05:35,710 Josh: just a fraction of the cost. 88 00:05:35,910 --> 00:05:39,070 Josh: And these, I mean, these changes are remarkable. So even though we're being 89 00:05:39,070 --> 00:05:43,370 Josh: particularly bearish on OpenAI, you do have to admire the fact that this industry 90 00:05:43,370 --> 00:05:44,590 Josh: is advancing so quickly. 91 00:05:44,590 --> 00:05:50,990 Josh: And what cost $400 yesterday now cost $1 today for something that is far higher quality. 92 00:05:51,150 --> 00:05:56,330 Ejaaz: All of that being said, Josh, I am not entirely sure that models are kind of 93 00:05:56,330 --> 00:05:59,510 Ejaaz: like the thing to optimize for, at least from a benchmarks perspective. 94 00:05:59,830 --> 00:06:03,870 Ejaaz: I think that OpenAI should be focused on one thing and one thing only that they 95 00:06:03,870 --> 00:06:07,210 Ejaaz: do really well, which is the consumer product mode. 96 00:06:07,550 --> 00:06:11,150 Josh: And we have a deal based on this that has come into play over the last week, 97 00:06:11,290 --> 00:06:15,350 Josh: which is the Disney deal, the $1 billion deal that they inked with Disney in 98 00:06:15,350 --> 00:06:18,750 Josh: order to hopefully, I guess, make a little bit more of a mainstream splash. 99 00:06:18,990 --> 00:06:22,510 Josh: I guess the way you could describe it is if you can imagine Disney as a sneaker 100 00:06:22,510 --> 00:06:26,530 Josh: brand and Sora is the machine that could generate these unlimited custom shoes. 101 00:06:26,790 --> 00:06:30,190 Josh: Until now, people were basically making these fake Nikes. And this is a big problem. 102 00:06:30,290 --> 00:06:33,730 Josh: There's a lot of these fake products that are reflective of the real thing, 103 00:06:33,830 --> 00:06:35,290 Josh: but lack in the quality. They're messy. 104 00:06:35,450 --> 00:06:38,310 Josh: They're legally very sketchy. and then disney is finally coming 105 00:06:38,310 --> 00:06:41,050 Josh: and they're kind of capitulating they're like okay we're going 106 00:06:41,050 --> 00:06:43,890 Josh: to officially license the designs but we're going to set the rules and 107 00:06:43,890 --> 00:06:46,790 Josh: we're going to make sure that we get paid so our brand doesn't get wrecked 108 00:06:46,790 --> 00:06:49,990 Josh: so this very much feels to me like a hedge against the 109 00:06:49,990 --> 00:06:52,950 Josh: destruction that was already starting so now fans 110 00:06:52,950 --> 00:06:55,970 Josh: can go and they could generate short videos using disney characters or marvel 111 00:06:55,970 --> 00:07:00,890 Josh: star wars whatever it is and then disney gets the opportunity to skin that the 112 00:07:00,890 --> 00:07:04,730 Josh: way they like put the guardrails in place and then disney also even offers plans 113 00:07:04,730 --> 00:07:08,690 Josh: to stream curated clips on disney plus so they're actually integrating this 114 00:07:08,690 --> 00:07:10,870 Josh: into their ecosystem so what you're seeing here 115 00:07:11,200 --> 00:07:14,140 Josh: And it is really funny. It's like they're letting you play with the characters, 116 00:07:14,280 --> 00:07:15,800 Josh: but not steal the actor's identity. 117 00:07:16,140 --> 00:07:18,820 Josh: And this feels like a 180 from where they've stood previously, 118 00:07:18,820 --> 00:07:22,000 Josh: because you just from what I understand, they're simultaneously suing Google 119 00:07:22,000 --> 00:07:26,500 Josh: over like copyright infringement stuff. So they're saying, no, no, no, no. 120 00:07:26,820 --> 00:07:29,120 Josh: If we're going to play this game, we're going to play this on our terms. 121 00:07:29,300 --> 00:07:30,620 Josh: And they committed at least a billion 122 00:07:30,620 --> 00:07:33,800 Josh: dollars to open AI to form this relationship and to start doing it. 123 00:07:34,040 --> 00:07:35,960 Josh: And to me, it feels interesting. And on the screen, we have a bear case, 124 00:07:36,060 --> 00:07:40,060 Josh: too, where it seems like they have just totally capitulated. 125 00:07:40,060 --> 00:07:44,400 Ejaaz: Yeah, effectively, what's being described here is, you know, 126 00:07:44,620 --> 00:07:46,280 Ejaaz: Disney, in his own words, 127 00:07:46,640 --> 00:07:50,740 Ejaaz: Disney is a $200 billion company sitting on only $5 billion worth of cash and 128 00:07:50,740 --> 00:07:54,960 Ejaaz: a $1 billion investment at a $500 billion valuation of OpenAI doesn't matter 129 00:07:54,960 --> 00:07:56,900 Ejaaz: to them at all on the upside case. 130 00:07:57,160 --> 00:08:01,600 Ejaaz: And so if OpenAI is going to IPO at a $1 trillion valuation, that's just a 2x. 131 00:08:01,720 --> 00:08:06,700 Ejaaz: So it doesn't make any kind of meaningful dent or impact on Disney's profit line. 132 00:08:06,820 --> 00:08:10,760 Ejaaz: Where I think the real value is coming in here, Josh, is long-term. 133 00:08:11,000 --> 00:08:17,000 Ejaaz: If you can have endless amounts of content generation for Disney's IP without 134 00:08:17,000 --> 00:08:23,000 Ejaaz: Disney needing to spend money on really expensive animators and teams to produce the content. 135 00:08:23,400 --> 00:08:26,760 Ejaaz: And, you know, animation takes like years to produce. Open Air can generate 136 00:08:26,760 --> 00:08:27,700 Ejaaz: it in a couple of minutes. 137 00:08:28,180 --> 00:08:32,440 Ejaaz: That is, it's kind of like free marketing. It's kind of like free PR and the 138 00:08:32,440 --> 00:08:35,700 Ejaaz: fans can make of it what they will without kind of Disney having to get their 139 00:08:35,700 --> 00:08:38,840 Ejaaz: hands dirty. So it kind of makes their IP endless. 140 00:08:39,040 --> 00:08:41,300 Ejaaz: And if Disney ends up owning all of it, then great. 141 00:08:41,640 --> 00:08:46,920 Ejaaz: And in fact, as part of this deal, if I'm not mistaken, OpenAI gets exclusive 142 00:08:46,920 --> 00:08:53,520 Ejaaz: rights on the IP for a full year before Disney kind of reclaims IP access or 143 00:08:53,520 --> 00:08:56,000 Ejaaz: IP licensing on the AI generated content. 144 00:08:56,240 --> 00:08:59,660 Ejaaz: So they really see that OpenAI has some kind of advantage here and they were 145 00:08:59,660 --> 00:09:00,880 Ejaaz: able to strike a pretty sick deal. 146 00:09:01,340 --> 00:09:03,760 Josh: Yeah. And the big boundary line is, is you can use the characters, 147 00:09:03,760 --> 00:09:06,400 Josh: but not the real performers, forces, faces or voices. 148 00:09:07,120 --> 00:09:10,060 Josh: So for me, this is exciting because I mean, imagine you were a kid. 149 00:09:10,140 --> 00:09:12,480 Josh: I always watched Disney Channel. I loved Disney Channel. 150 00:09:12,640 --> 00:09:15,760 Josh: And there's a world in which you start to get a custom curated Disney Channel 151 00:09:15,760 --> 00:09:18,820 Josh: just for you, where you have the characters, you have a universe, 152 00:09:18,960 --> 00:09:21,640 Josh: but it's all hyper tailored to the stuff that you are most interested in. 153 00:09:21,960 --> 00:09:25,180 Josh: And that seems exciting. It seems directionally 154 00:09:25,180 --> 00:09:28,480 Josh: correct in the sense that we're going to start leaning more into hyper 155 00:09:28,480 --> 00:09:33,100 Josh: custom content per person and disney's kind of leaning into that so props to 156 00:09:33,100 --> 00:09:38,180 Josh: them but that doesn't end our ai our open ai concerns for this week there there 157 00:09:38,180 --> 00:09:42,400 Josh: is more so as we were going through the financials we so we started to look 158 00:09:42,400 --> 00:09:45,460 Josh: in at them and they're losing a lot of money 159 00:09:46,260 --> 00:09:50,760 Ejaaz: How much to the tune of 20 billion dollars 20 billion dollars yeah yeah. 160 00:09:50,760 --> 00:09:54,640 Josh: Okay so they got 1 billion from disney so yeah they're exactly 120th of the way there 161 00:09:54,640 --> 00:09:57,660 Ejaaz: Right exactly and okay to give 162 00:09:57,660 --> 00:10:02,480 Ejaaz: them a few flowers 13 billion dollar annual recurring revenue is great right 163 00:10:02,480 --> 00:10:07,320 Ejaaz: but they're projected to be spending twice if not three times that amount of 164 00:10:07,320 --> 00:10:12,180 Ejaaz: money next year on data center costs alone josh so then you might be like well 165 00:10:12,180 --> 00:10:15,360 Ejaaz: they have paid subscribers right like so they should be fine. 166 00:10:15,840 --> 00:10:23,820 Ejaaz: Well, 5% of the 800 million weekly active users that they have actually pay. So that's 40 million. 167 00:10:24,160 --> 00:10:27,760 Ejaaz: And of that percentage, I guess quite a large percentage of them are only the 168 00:10:27,760 --> 00:10:29,160 Ejaaz: 20 bucks a month subscribers. 169 00:10:29,500 --> 00:10:34,980 Ejaaz: So the point I'm trying to make here is the subscription model for OpenAI does not make sense. 170 00:10:35,120 --> 00:10:39,800 Ejaaz: In a world where it needs to make sense, I would guess they need to turn on advertisements. 171 00:10:40,120 --> 00:10:43,740 Ejaaz: As soon as they do that, in my opinion, it's going to make the product experience 172 00:10:43,740 --> 00:10:49,360 Ejaaz: even worse, which will push people towards or back towards Google and Claude 173 00:10:49,360 --> 00:10:51,400 Ejaaz: to kind of use their models for free. 174 00:10:51,500 --> 00:10:55,040 Ejaaz: And Google has an endless amount of cash flow so that they don't really care about this, right? 175 00:10:55,220 --> 00:10:59,440 Ejaaz: Another crazy number is how much of their revenue they're losing to Anthropic. 176 00:10:59,740 --> 00:11:04,940 Ejaaz: This year, Anthropic unseated them as the top enterprise AI model that is favored 177 00:11:04,940 --> 00:11:10,660 Ejaaz: by enterprises globally, a crown which OpenAI held for like a number of years prior to this. 178 00:11:10,920 --> 00:11:14,700 Ejaaz: So they're losing on that front as well. And then when it comes to just like 179 00:11:14,700 --> 00:11:18,540 Ejaaz: generally projecting their revenue, Josh, something that a number that they've 180 00:11:18,540 --> 00:11:22,520 Ejaaz: floated is, you know, by 2030, we'll have $200 billion worth of revenue. 181 00:11:22,600 --> 00:11:24,080 Ejaaz: But what people aren't contemplating 182 00:11:24,450 --> 00:11:28,150 Ejaaz: is how much they're still measured to be losing in that same year, 183 00:11:28,290 --> 00:11:31,130 Ejaaz: which is around the same amount, if not a little bit more. 184 00:11:31,270 --> 00:11:34,050 Ejaaz: And of course, like these bar charts and stuff are all just estimates. 185 00:11:34,310 --> 00:11:38,590 Ejaaz: No one knows how this will actually end up transpiring, but it's worthy to think about. 186 00:11:38,970 --> 00:11:45,050 Ejaaz: But the final one is the $1.4 trillion worth of compute that they're projected 187 00:11:45,050 --> 00:11:46,750 Ejaaz: to spend over the next five years. 188 00:11:47,110 --> 00:11:50,370 Ejaaz: And I actually want to come in here with a positive note, Josh, 189 00:11:50,590 --> 00:11:54,330 Ejaaz: because this is the biggest kind of debt on their balance sheet that people 190 00:11:54,330 --> 00:11:58,590 Ejaaz: kind of like bear about, right? They're saying like, hey, this is a really bad thing. 191 00:11:58,710 --> 00:12:00,910 Ejaaz: OpenAI is not going to be worth a lot of money because of this. 192 00:12:01,370 --> 00:12:06,070 Ejaaz: It's just a number. And it's just a clickbait number because it's not real. 193 00:12:06,310 --> 00:12:09,610 Ejaaz: If you look into the contracts and the terms that they've signed with all these 194 00:12:09,610 --> 00:12:14,170 Ejaaz: cloud providers, they don't actually need to spend this amount of money. 195 00:12:14,310 --> 00:12:18,390 Ejaaz: It's just the most amount of money that they could potentially spend with these 196 00:12:18,390 --> 00:12:20,130 Ejaaz: cloud providers, with these compute providers. 197 00:12:20,470 --> 00:12:23,650 Ejaaz: So realistically, if you look at the contractual deals for next year, 198 00:12:23,890 --> 00:12:29,010 Ejaaz: OpenAI just needs to spend up to $10 billion, which is a lot more feasible than 199 00:12:29,010 --> 00:12:35,130 Ejaaz: the $100 billion, which is contractually apparently all headlined to be for next year. 200 00:12:35,310 --> 00:12:39,370 Ejaaz: So there's a bit of fear mongering on social media about all of this stuff. 201 00:12:39,450 --> 00:12:42,750 Ejaaz: And I actually don't think the bear case is all that big for OpenAI. 202 00:12:42,830 --> 00:12:44,290 Ejaaz: In fact, I think it's quite bullish. 203 00:12:44,880 --> 00:12:48,520 Josh: Yeah, here's the thing. It's like with episodes like this, it's fun to talk about the drama. 204 00:12:48,700 --> 00:12:52,440 Josh: It's fun to talk about the downswings. These are subtle nuanced changes that 205 00:12:52,440 --> 00:12:56,440 Josh: are happening on a much longer, smoother trajectory, which is up and to the right. 206 00:12:56,740 --> 00:13:00,740 Josh: And the reality is that OpenAI is one of the most remarkable companies on earth. 207 00:13:00,940 --> 00:13:05,100 Josh: They are shipping the best AI in the world. And it's fun to nitpick. 208 00:13:05,200 --> 00:13:06,360 Josh: It's fun to pick at the headlines. 209 00:13:06,500 --> 00:13:11,520 Josh: But the reality is that these companies are printing tons of cash. 210 00:13:11,640 --> 00:13:15,180 Josh: They're spending more. So there are real concerns. But directionally, 211 00:13:15,280 --> 00:13:17,860 Josh: what we're seeing is this unbelievable progress, 212 00:13:18,060 --> 00:13:25,180 Josh: like 930 times cost reduction for a leading edge token over 12 months is so 213 00:13:25,180 --> 00:13:28,920 Josh: huge, especially considering that is one of many compounding factors. 214 00:13:29,140 --> 00:13:30,680 Josh: There's the cost per token, but there's also... 215 00:13:31,290 --> 00:13:35,490 Josh: Quality per token. And there is the cost per GPU, which has gone much lower. 216 00:13:35,650 --> 00:13:39,650 Josh: And there's the product now that is significantly better than it was a year ago. 217 00:13:39,770 --> 00:13:42,630 Josh: And we're getting all these compounding growth things that... 218 00:13:42,630 --> 00:13:44,270 Josh: I'm watching this funny video on the screen. 219 00:13:44,470 --> 00:13:49,290 Ejaaz: What is this? Is this from Sora? It just shows you what they're good at, Josh. 220 00:13:49,410 --> 00:13:52,710 Ejaaz: It puts a smile on your face. People actually want to use and consume these products. 221 00:13:52,970 --> 00:13:55,370 Ejaaz: And I feel like people are focused too much on the benchmarks. 222 00:13:55,530 --> 00:13:56,690 Ejaaz: They're focused too much on the numbers. 223 00:13:56,830 --> 00:14:01,670 Ejaaz: But the fact is, if people want to use your product, you'll end up being a pretty successful company. 224 00:14:02,170 --> 00:14:05,450 Josh: You're watching this really funny video of a snowman snowboarding. 225 00:14:05,710 --> 00:14:09,390 Josh: And this was not possible even a year ago because video generation has gotten much better. 226 00:14:09,710 --> 00:14:13,990 Josh: And just last week, three days ago, actually, it was OpenAI's 10-year anniversary. 227 00:14:14,170 --> 00:14:19,090 Josh: They've been around for a decade, which is pretty amazing because up until when? 2021? 228 00:14:19,730 --> 00:14:23,890 Josh: AI didn't even really exist in the consumer marketplace. So for six of those 10 years, 229 00:14:23,890 --> 00:14:26,830 Josh: nobody cared about open ai and then 230 00:14:26,830 --> 00:14:29,890 Josh: they released chat gpt 3.0 and that 231 00:14:29,890 --> 00:14:33,350 Josh: was the firing gun and the race started and now 232 00:14:33,350 --> 00:14:36,250 Josh: in the next four years the world has changed forever and open ai is 233 00:14:36,250 --> 00:14:39,030 Josh: very much responsible for that google had designed the 234 00:14:39,030 --> 00:14:42,330 Josh: transformer they had the architecture they did nothing with it for a really long time until 235 00:14:42,330 --> 00:14:45,050 Josh: open ai came around and started the race and is 236 00:14:45,050 --> 00:14:49,250 Josh: now leading the race and will continue to be a prominent player where they stand 237 00:14:49,250 --> 00:14:53,370 Josh: on the scale of things i don't know their 90 of the pie they had is certainly 238 00:14:53,370 --> 00:14:58,750 Josh: going to go down but even if it drops down to 30 30 of this pie is an enormous 239 00:14:58,750 --> 00:15:03,210 Josh: number and it leaves me just feeling excited and optimistic i mean the other wild card too 240 00:15:03,760 --> 00:15:07,180 Josh: is that they have the hardware device incoming and no one else is really building 241 00:15:07,180 --> 00:15:10,260 Josh: a dedicated hardware device with the world-class hardware designer. 242 00:15:10,480 --> 00:15:13,840 Josh: So that leaves something really excited to look forward to next year. 243 00:15:13,920 --> 00:15:19,300 Josh: But I think in terms of progress for this year, OpenAI had an unbelievable year 244 00:15:19,300 --> 00:15:22,040 Josh: and it's easy to talk down on it because relative to others, 245 00:15:22,280 --> 00:15:25,520 Josh: yeah, sure, they're losing some market share, but man, what a great company. What a great model. 246 00:15:25,720 --> 00:15:31,260 Ejaaz: And that's our episode for today, folks. A lot of you have been commenting about 247 00:15:31,260 --> 00:15:35,520 Ejaaz: giving our opinion on OpenAI, the bull case, the bear case, and the fact that 248 00:15:35,520 --> 00:15:37,460 Ejaaz: a lot of these AI companies are going public next year. 249 00:15:37,600 --> 00:15:39,700 Ejaaz: You know, a lot of you from the investing angle are super curious. 250 00:15:39,840 --> 00:15:43,500 Ejaaz: We will continue to be putting out our thoughts and opinions and putting out 251 00:15:43,500 --> 00:15:46,440 Ejaaz: the facts as much as we can. We hope you enjoyed today's episode. 252 00:15:47,020 --> 00:15:49,320 Ejaaz: If you enjoyed it, and if you enjoyed all of our other episodes, 253 00:15:49,520 --> 00:15:52,440 Ejaaz: we put out three or four, maybe even last week, Josh. 254 00:15:52,840 --> 00:15:57,280 Ejaaz: Go check them out, subscribe, put on notifications, give us a thumbs up, 255 00:15:57,440 --> 00:16:02,140 Ejaaz: give us a rating if you enjoy our content, and we will see you on the next one. 256 00:16:02,380 --> 00:16:03,060 Josh: See you guys.