WEBVTT

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Probably the biggest plot twist in AI this year,

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Apple. You know, the company famous for total

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control is paying its biggest rival, Google,

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a billion dollars. Yeah. It's really the ultimate

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sign, isn't it? That trying to keep everything

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proprietary, building your own intelligence completely

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in -house, it's just too slow right now. The

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pace is incredible. Welcome to the Deep Dive.

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We're unpacking a really fascinating stack of

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sources this week. We're looking at who is truly

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building, or maybe more accurately, who is buying

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AI power right now. Exactly. We're going to dive

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into the, frankly, shocking details of that Apple

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-Gemini partnership. We'll also look at some

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dramatic breakups and bailouts shaking up the

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big AI giants. And then we'll examine a pretty

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crucial technical paper that's basically democratizing

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access to those huge trillion parameter models,

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making them more accessible. Okay, right. So

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let's start with that core conflict. Apple, you

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know, the champion of the closed garden, the

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controlled ecosystem, they're licensing Google's

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Gemini model for their main Apple intelligence

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stuff. And that price tag, a reported $1 billion

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a year. It just shows the scale of this compromise,

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doesn't it? It's definitely more than just irony.

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It feels like a temporary necessity. I mean,

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our sources point out what a lot of users already

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feel. Siri has been, and this is a quote, embarrassingly

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bad for years, especially when you compare it

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to modern AIs. Right. Apple is racing to build

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its own massive model, like a one trillion parameter

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one. But the timeline seems to be. Well, maybe

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late 2026 at the earliest. And they just couldn't

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wait. So we should clarify, Gemini isn't handling

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the actual voice part of Siri. No, exactly. It's

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powering the really heavy lifting underneath,

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the complex stuff, specifically the summarizer

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tool and those sophisticated planner features

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in the new OS updates. They needed that advanced

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reasoning like yesterday. Because their internal

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models weren't cutting it. Apparently not. That

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need became pretty urgent. because their internal

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efforts were struggling. We heard Apple recently

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lost, what, four to seven key researchers, people

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working on those foundational models. Precisely

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because the in -house solutions weren't performing

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well enough. So they kind of had to go shopping.

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And what's really fascinating here, especially

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given Apple's reputation, is how they've set

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up the security. Google gets the billion dollars,

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sure, but the AI itself runs entirely on Apple's

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own system, the private cloud compute architecture.

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Right. which means Google doesn't touch the user

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data. That lets Apple keep that critical control

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layer they value so much, even if the core brain

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is, well, outsourced. Beat. And it wasn't like

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Google was the only option they looked at. No,

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definitely not. We know they actively tested

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competitors. OpenAI's models were in the mix.

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Anthropix clawed. But Gemini won out. Why? Seems

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like it demonstrated superior instruction following.

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so it handles multi -step commands better, and

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it apparently has a longer context memory, which

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is super important for planning complex tasks

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or summarizing long documents. OK, so it was

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really about the technical fit for the specific

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job. Makes sense. Yeah. But the complexity just

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keeps growing, doesn't it? Because Google is

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banned in mainland China. Apple's now having

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to cut separate deals, local deals with giants

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like Alibaba and Baidu just for the version of

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Siri that runs there. Which creates this sort

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of fragmented intelligence stack, doesn't it?

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Yeah. Different brains, depending on where you

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are. We're thinking about what this means for

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Apple long term. OK, let me just ask directly

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then. Beyond the huge price tag, what specific

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technical capability really made Gemini the unavoidable

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winner for Apple's needs, especially for those

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planning tools? It showed better instruction

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following and could maintain context over longer

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interactions. Simple as that. Okay, now shifting

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gears a bit, let's talk about the corporate tectonic

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plates. Because we're seeing some major realignments

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happening. There's this big shift, maybe even

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a split, happening between Microsoft and OpenAI.

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Microsoft is now officially breaking away, setting

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up its own separate superintelligence team. Their

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goal, build AGI independently. Wow. So they're

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still partners, but strategically. Strategically,

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the priority seems to be shifting towards Microsoft

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having its own proprietary AGI development effort.

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Still working with OpenAI, but... Also hedging

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their bets, maybe building their own thing. And

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this probably all ties back to the sheer cost,

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right? We saw that little drama where OpenAI's

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CFO hinted they might need a, what was it, a

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$1 .4 trillion chip bailout? Yeah. A number so

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big it sounds like a typo. Sam Altman immediately

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denied it, of course. Right. But whether that

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specific number is real or not, it definitely

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highlights the absolutely staggering amount of

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capital needed to seriously chase AGI. Like nation

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state level spending. Only a tiny handful of

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entities on the planet can even think about playing

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at that level. It's mind boggling. But, you know,

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looking at the other side of that investment

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coin, it's not all just about buying more chips.

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The OpenAI Foundation is also investing heavily,

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about $25 billion into things like health care

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applications and AI resilience. And they're partnering

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strongly with Microsoft and SoftBank on that.

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So it seems like a kind of two pronged strategy.

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Chase AGI, you know, at almost any cost, but

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also fund these critical sector applications.

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Meanwhile. We also saw a pretty vulnerable admission

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that really illustrates the maybe the ethical

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debt the scaling race can create. You're talking

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about Meta. Yeah. Sources revealed that Meta,

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to help fund its massive AI expansion, was bankrolled

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by roughly $16 billion. And part of that came

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from deliberately allowing scam ads, ads targeting

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users daily. It's pretty stark. They apparently.

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tolerated these profitable scams because, well,

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they generated too much revenue to just shut

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them down easily. Ouch. And that pursuit of short

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-term profit, it creates a long -term problem,

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doesn't it? If your revenue relies on bad actors,

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it inevitably poisons the data you're using to

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train your models. And it just fundamentally

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damages user trust. Yeah, that tension between

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integrity and just sheer scale. It's not just

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social media either. Look at Google. They've

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aggressively pushed into becoming what sources

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call a full -on financial AI researcher. They're

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rolling out features, answering complex market

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questions, providing live earnings transcripts

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for traders in real time. They're pushing into

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every potentially profitable sector they can

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find with AI. It's an aggressive expansion. So

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thinking about that meta -admission specifically.

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What does that pursuit of high revenue, even

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when it comes from bad actors, tell us about

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the maybe the foundational integrity of the AI

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models being built on that data? High profit

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from bad actors risks data quality and user trust,

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creating ethical debt. OK. Let's dive into the

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tech side now, because this is where it gets

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really interesting for me. We need to talk about

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the physical barriers, the hardware barriers

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that have mostly kept these super advanced AI

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models in the hands of just a few giants like

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Google or Nvidia. Right. We're talking about

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the huge models, the ones with like. a trillion

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parameters they usually need specialized incredibly

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expensive hardware setups exactly and critically

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most ai teams have kind of avoided using standard

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cloud infrastructure like aws for these really

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massive models and there's a specific reason

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why which is aws's networking tech called efa

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lacks a key feature something called gpu direct

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async okay hold on gpu direct async we need to

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break that down what does that missing feature

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actually mean in Okay, think of it like this.

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Imagine your giant AI model is spread across,

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say, 10 different computers, each packed with

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GPUs. Got it. Those 10 machines need to talk

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to each other constantly, sharing data back and

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forth, like... instantaneously for the model

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to work. GPU direct async lets the GPUs on different

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machines talk directly to each other super fast.

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It cuts out the middleman, which is usually the

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main computer brain, the CPU. Without it, the

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GPUs have to kind of wait for the CPU on each

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machine to manage all that data traffic. It creates

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bottlenecks. The communication slows down so

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much that these giant complex models often just...

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crash or fail. Yeah. That's been the big hurdle

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on standard cloud setups like AWS. Right. The

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communication highway wasn't fast enough between

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the different GPU workers. Exactly. But here's

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the breakthrough. It comes from perplexity. They

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published some really groundbreaking research

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showing how you can actually run these trillion

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parameter Mogi models, models like Kimi K2 and

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DeepSeek V3 on regular off -the -shelf AWS cloud

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machines. How? If the hardware feature is missing.

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They basically found a clever software workaround.

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Instead of needing new expensive hardware, they

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built an intelligent system using software. The

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CPU still helps coordinate, but the key is how

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they move the data. Okay. They pack and shuttle

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the data really smartly using a different technology

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called RDMA. RDMA. Remote Direct Memory Access.

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That's basically a way for computers to swap

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data directly between their memories super fast,

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right? Precisely. It's like... Imagine stacking

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Lego blocks of data between the machines incredibly

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fast and doing lots of stacks at the same time

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concurrently. They figured out how to orchestrate

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this data flow efficiently. using software and

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rdma even without that specific gpu direct async

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hardware feature so they built a software pipeline

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yeah essentially a high -speed software pipeline

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that makes the standard cloud function almost

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like one of those specialized super expensive

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supercomputers at least for this kind of workload

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whoa okay just pause there for a second imagine

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scaling your ai to handle like a billion queries

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without needing custom -built proprietary hardware

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that costs millions and millions This is like

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figuring out how to run a Formula One car and

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run it well on regular city streets using standard

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infrastructure. That feels really profound, a

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huge shift in accessibility. It absolutely is.

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That's the core impact, democratization. Suddenly,

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any development team, any startup with the decent

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cloud budget and the necessary brainpower. they

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can potentially join the Trillium Parameter League.

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It kind of dissolves that hardware barrier. It

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proves that really smart software engineering,

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efficient code, can actually beat massive capital

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spending. at least in some cases. So for the

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developers, for the companies out there listening,

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what's the key technical lesson from Perplexity's

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work here about getting around these hardware

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constraints? Smart software orchestration can

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often bypass assumed limits of commodity cloud

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hardware. Clever software beats brute force hardware.

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Love it. Okay, just a quick detour to highlight

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a couple of interesting new tools we're seeing

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pop up. There's one called Maya One, which is

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generating highly expressive speech. We're talking

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over 20 different emotions. So moving way beyond

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that typical kind of flat robotic AI voice, much

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more natural sound. That's cool. And the other

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one? Llama .cpp. This is really interesting for

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developers and tinkerers. Okay, define Llama

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.cpp for us simply. It's basically a lean framework

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letting you run large open source AI models directly

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on your own computer, even a decent laptop sometimes.

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And the significance of that, you know, it really

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shouldn't be understated. It means you don't

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have to send your sensitive data off to Google

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or OpenAI or whoever to get really good AI performance.

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Right. It ties back to that control theme we

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started with. Apple's struggle. Exactly. It potentially

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gives sovereignty back to the user or the small

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developer. You can run powerful models locally.

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And sticking with actually using these models,

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what about advanced prompting? Any new tricks?

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Well, sources continue to highlight the effectiveness

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of persona prompting. You know, telling the model

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to ultra -think like Steve Jobs. or act as an

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expert physicist explaining quantum entanglement.

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Does that really work? It tends to get much sharper,

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more focused answers from models like Claude

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or GPT -4. It works, I think, because you're

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essentially forcing the model into a specific

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defined set of constraints, a particular style

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or knowledge base, rather than letting it give

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a generic average response. Yeah, I have to admit,

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I still wrestle with prompt drift myself sometimes.

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Getting a model to consistently sound like a

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specific leader or maintain a complex persona

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over a long conversation, it takes constant tweaking

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and refinement. It's never quite as simple as

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those quick online guides make it seem. It's

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definitely an iterative process. Lots of back

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and forth. For sure. It's an art as much as a

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science right now. Okay. So if we pull way back

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now, look at everything I've discussed. Yeah.

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The big idea emerging today seems pretty clear.

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Control. That old model of total proprietary

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control is rapidly becoming obsolete, or at least

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incredibly difficult to maintain. You have Apple,

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the absolute champion of proprietary power, forced

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to essentially rent its core intelligence from

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its biggest rival, Google. And at the exact same

00:12:57.269 --> 00:13:01.070
time, you have this grassroots technical brilliance,

00:13:01.070 --> 00:13:03.590
like what Perplexity demonstrated, that's dissolving

00:13:03.590 --> 00:13:05.750
the hardware barriers that used to enforce that

00:13:05.750 --> 00:13:08.570
control. It sends a powerful message, doesn't

00:13:08.570 --> 00:13:11.409
it? That really efficient code, smart software

00:13:11.409 --> 00:13:14.129
can fundamentally challenge the financial might

00:13:14.129 --> 00:13:15.950
of the world's biggest tech companies when it

00:13:15.950 --> 00:13:18.990
comes to AI development. The material we explore

00:13:18.990 --> 00:13:20.950
today really shows that the whole balance of

00:13:20.950 --> 00:13:24.389
power in this AI race. It's unstable. It's constantly

00:13:24.389 --> 00:13:27.490
shifting based on a new partnership deal one

00:13:27.490 --> 00:13:30.289
week or a new algorithmic breakthrough the next.

00:13:30.490 --> 00:13:32.750
Which leads to maybe a provocative thought to

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leave folks with. If the world's most secretive,

00:13:35.649 --> 00:13:38.590
most control -obsessed company, Apple, finds

00:13:38.590 --> 00:13:41.909
itself forced to outsource core AI intelligence,

00:13:42.370 --> 00:13:45.809
how much longer can any major company realistically

00:13:45.809 --> 00:13:49.610
maintain true proprietary control over the most

00:13:49.610 --> 00:13:53.320
advanced forms of AGI when they emerge? Is that

00:13:53.320 --> 00:13:55.980
even the right model anymore? That's a great

00:13:55.980 --> 00:13:57.899
question to ponder. And for you, the learner

00:13:57.899 --> 00:13:59.659
listening today, if you want to dig deeper into

00:13:59.659 --> 00:14:01.720
the tech enabling some of this shift, we really

00:14:01.720 --> 00:14:03.820
encourage you to look into the concept of RDMA.

00:14:03.879 --> 00:14:06.259
That's remote direct memory access. It's kind

00:14:06.259 --> 00:14:08.759
of the invisible engine fueling this new era

00:14:08.759 --> 00:14:11.580
of cloud efficiency for AI and understanding

00:14:11.580 --> 00:14:13.580
it might be key to understanding where a large

00:14:13.580 --> 00:14:16.120
scale AI is heading next. Thank you for joining

00:14:16.120 --> 00:14:18.399
us on this deep dive. Outro music.
