Welcome to the AI Chat Podcast. I'm your host,
Jaden Schaefer. Every day I cover cutting -edge
AI news and talk with the leaders behind it,
breaking down what it means for your life and
business. Samsung is set to post an 18x profit
jump because of AI memory demand. Mistral AI
is looking at a $3 .5 billion raise and a $23
billion valuation. Their revenue has hit over
$400 million. And Midjourney is asking Disney,
Universal, and Warner Brothers to disclose their
own AI use because there's a bunch of lawsuits
and everyone is accusing Midjourney of using
copyrighted content. So they're trying to flip
the tables here. Station F's FAI Accelerator
is coming back. Their first cohort got $34 million
in pre -seed funding. And we're going to see
what's happening next there. Fable 5 has just
reached the top of the kernel bench mega. That
is a benchmark. And this is at the same time
that AI agents are quadrupling, going 4x on real
freelance work, what they're actually able to
accomplish. So we're going to talk about some
of the capabilities of Fable 5, what this new
benchmark is saying. Currently, Cloud Cowork
is my absolute favorite. And basically... get
everything done that you need to with logged
in sessions is absolutely incredible. Adding
MCPs is the best thing I've ever been able to
do for it. The only problem with Clot is that
it doesn't have image, audio, or video AI capabilities.
Of course, it's super smart and great at code,
but I need so many different assets for all of
my projects that I'm working on, whether I'm
making websites and I need images inside of them,
or I'm doing ads and I need video creation for
all of that. Or if I'm doing things with podcasting,
I have a lot of AI autonomous podcast projects
and I need audio. I built an MCP for my startup,
AIbox .ai, that lets you get all of the audio,
image, and video right inside of Cloud. So this
morning, I was talking to Cloud. I needed to
make a podcast cover for something, and I said,
go use the AIbox. image generator, use OpenAI
image 1 .5, but you could say anything, right?
You could say Gemini 3 .5 Pro, whatever. And
I said, go and make an image, go make a podcast
cover. And I explained exactly the prompt that
I was used for making podcast covers. It just
used the MCP, connected to AI Box, generated
the image, gave me a link, and I could go download
it immediately. This is the biggest unlock for
Claude. If you want to try out the MCP that I've
created for Claude, go to AIBox .ai slash Claude.
I'll leave that in the description. and you get
access to all of that for like $8 a month. You
can have all of the image, audio, video inside
of Claude, call it at any time with AI Box's
MCP. It's absolutely incredible, super useful,
and I hope that unlocks Claude for you. Samsung
is expecting to have profits that are 18 times
higher than they were a year ago. And of course,
the biggest reason is AI, but specifically the
demand has exploded for something called high
bandwidth memory or HBM. Essentially, you could
think of this as ultra fast memory, and it's
stacked into layers and attached directly into
AI chips. NVIDIA and AMD are both using this.
So this is like memory that's bolted straight
onto their processors. And it essentially lets
AI models process tons of data really fast. It
gives them that speed. So a couple of years ago,
the entire memory industry had completely crashed.
I think 2023 to 2024 prices were falling because
there was way too much supply. overbuilt. But
then all of a sudden, we had this perfect moment,
we're opening up Microsoft, Google, Amazon meta,
all of them started buying up AI hardware in
just insane quantities, hundreds of 1000s of
chips at a time. And so the whole market has
switched now all of a sudden, instead of this
big oversupply that we had before, we now have
a massive undersupply. And so the market is skyrocketing.
And any of these companies that are building
this memory are making a ton of money. So Samsung
was initially behind I think the biggest competitor,
which is SK Hynix. This is from South Korea.
And I think I've talked about them on other podcasts
before, but they are also benefiting from this
a ton. And so now Samsung is kind of coming right
behind them. Now they're ramping up production.
And there's two things in particular. There's
the HBM4, and that's basically becoming one of
the biggest drivers of their kind of financial
boom that they're seeing right now. That one's
really popular. And the reason why this matters
is that the HBM is super profitable. It sells
for way more than any traditional compute memory.
And only three companies in the world can manufacture
at scale. So Samsung, SK Hynix, and Micron, which
I think Micron is out of Idaho. And, you know,
I've also talked about them. the podcast before
because they are absolutely blowing up. So there's
really just three main companies that are making
this right now. And it's really hard to manufacture
this at scale. So all of them are growing in
a crazy amount. Micron is not a company I think
that was a household name, but it's becoming
one of the biggest companies in the world because
of just this huge supply pinch and shortage.
And so the prices are just going up a ton. Samsung
is also trying to become less dependent on memory.
They're going to be expanding into custom AI
chips. They're also reportedly in discussions
right now. about building specialized AI processors.
And they said specifically that they want to
grow their semiconductor manufacturing business
as well. So, I mean, right now, obviously, it's
super exciting for them. They're seeing a ton
of benefit from all of the memory exploding,
but they know that this isn't going to last forever,
probably. So the diversification is a pretty
smart move. Mistral AI right now is looking to
raise $3 .5 billion at a $23 billion valuation.
And that is nearly double its September 2025
series C price. So they're based in France, if
you didn't know already. And their recurring
revenue just hit $400 million in February. That's
about 20x the $20 million that they had a year
ago, which is pretty crazy. And I think what's
interesting about them in particular is we hear
talk a lot, I think, especially after... Trump
kind of banned Fable 5 or the Trump administration,
whatever, I had to get pulled back for a little
bit before it went out. We had a lot of different
players, especially in Europe, talking about
AI sovereignty and AI infrastructure more than
I think I've seen other places. And I've had,
you know, some of the big founders from like
Cohere on the podcast who talks a lot about that
as well. But I think AI sovereignty is a huge
deal for countries that are not in the United
States. And they want to make sure that they're
putting their investments into companies that
will help them achieve that. And Mistral is a
good one because they have open source models.
So people can run those, you know, locally inside
their own country with, you know, data centers
inside their own country and really get that
quote unquote AI sovereignty that a lot of these
companies are, our countries are looking for.
Right now, Mistral says that they're targeting
$1 billion in annual recurring revenue this year,
and they're committing $4 billion to build data
centers in France, Sweden, and they're also launching
Mistral Compute, which is a European NVIDIA powered
platform. And they're going to be doing that
this year, following after what it seems like
XA. and OpenAI and Google and all of them are
kind of doing with their compute platforms. They
have acquired a bunch of infrastructure startups.
One in particular is called Kyob. They have a
joint venture with MGX, NVIDIA, and BPI France
to build an AI campus near Paris. I think they're
really trying to show, and I think Paris and
France in general is really trying to show that
they are kind of the center for AI. They're really
trying to get on top of all of that. Mistral's
revenue mix right now I think really skews heavily
to enterprise and government. It's not consumer
chat, right? Most people are using ChatGPT or
Cloud for that. They're copying Palantir's playbook.
They have a bunch of forward deployed engineers
that are helping different companies run models
on their own infrastructure. They have something
called Forge. And so they're kind of copying
this forward deployed engineer strategy. Mid
Journey is asking Disney, Universal, and Warner
Brothers to disclose their internal AI training
practices as part of a big copyright lawsuit
that's happening right now. All of those different
studios are actually suing Mid Journey in particular.
And I think they're trying to like flip the tables
because basically if Mid Journey can prove that
all of those studios are training on unlicensed
content too, because all of them have different
AI programs, then I think they say, look, this
is just the industry norm. You guys are all doing
it as well. This isn't just us as a startup and
they could probably try to get this whole thing.
thrown out the three studios combined have a
market cap of about 400 billion dollars they've
all sued mid journey last year um because i think
it was mid journey was able to reproduce bart
simpson and darth vader and they're like look
if you can produce that then you're obviously
training on our own you know disney special data
or whatever universal special data our characters
bart simpson and darth vader um and so anyways
this lawsuit's been going on for a while i think
they're all expected to get a payout but i think
at this point mid journey is trying to just point
the finger back at them uh judge previously limited
the studio disclosure to ai usage that produced
consumer facing content mid journey wants that
boundary erased to access all internal ai workflows
and training data data i've personally seen all
of those different studios talk about using ai
for pre -visualization storyboarding and like
things like vfx iteration but they haven't really
disclosed what you know, they're training all
their data in order to create those tools with.
So I think MidJourney is hoping that they'll
be able to catch them and basically the same
training data that everyone's using, which is
kind of the whole internet and say, look, you
guys are doing it as well. Okay. A company called
Station F's FAI Accelerator is launching their
second cohort this September. They have 20 different
AI startups from the first batch that all were
actually able to raise $34 million in pre -seed
funding. This is a Paris hub and they're positioning
themselves as kind of Europe's answer to Silicon.
Valley. And to be honest, I've actually have
all the countries in Europe, I think London's
England's doing quite well. And France is doing
quite well. They have Mistral kind of their big
breakout AI company, and they're trying to get
more. So they're trying to build these accelerators
and these incubators, and really grow some companies
inside of their country. They're targeting a
million euros in revenue per startup within six
months. This is basically they're trying to respond
to a bunch of investors that are criticizing
European startups, saying that they're way slower
than American companies to actually commercialize.
There's been a lot of incredible European startups.
I mean, you got lovable, you got lots of amazing,
you know, Synthesia for video generation, you
got 11 labs for audio. I mean, you have some
of the most, you know, some of the most prolific
AI companies coming out of Europe. And I think
France is trying to really concentrate them all
into their country. 80 % of the first cohort
that came out of this were founders that had
been entrepreneurs before. About a third of them
have PhDs. That's something that I would expect
a lot more out of founders coming out of Europe
and America. That's probably less common, although
when it comes to AI researchers, I mean, that's
usually who's in that kind of cohort of people.
The second cohort, they're going to add six new
partners. They're going to have 11 Labs, OpenRouter,
GitHub, HubSpot that are all joining that. They
also have Anthropic, AWS, Google, Meta, Microsoft,
and Mistral AI that are all part of their partnership
program. I'll be excited to see what AI startups
come out of this program. Okay, Fable just hit
a big new milestone. Their new system topped
the kernel bench mega benchmark. It is able to
write highly optimized CUDA code that is about
19 times faster than what their baseline was
before. It even beat Claude Opus. And basically
that means that AI is getting a lot better at
optimizing the software that powers GPUs. At
the same time, AI agents are becoming way more
capable at basically every job that can be done
in the real world on a benchmark that is basically
like basically what it's doing is measuring paid
freelance work, things like 3D modeling, architecture,
animation. It does also a lot of like analysis.
The success rate jumping from just 2 .5 % to
16 .1 % in only eight months is really impressive.
GPT 5 .5 only scored 6 .3%. So Fable is absolutely
crushing that with 16 .1%. Researchers also tested
AI on much longer compute tasks to take over.
an hour to complete. And while today right now
the models are really struggling with that, they
are getting a lot better. And while optimizing
code for GPUs might not be everybody's use case
for Fable 5, I'm really excited and really impressed.
I personally used it to do a lot of projects
that Opus 4 .8 just couldn't do. I have an app
that I'm building and the widgets on the app,
I literally was just pulling my hair out for
two days because Opus 4 .8, I couldn't figure
out how to make them customizable. And I sent,
I pointed Fable 5 at them and in two hours, it
was able to get the whole thing sorted out and
working correctly. So I think like overall Fable
5, a lot of people, are like, Oh, it feels just
like Opus. I think it's much smarter. And maybe
it's like 15 or 20 % better, but that 15 or 20
% makes a huge difference. And it's really good,
especially when it's, you know, just being able
to get things done much faster, a lot of complex
tasks. It's great at doing them. Guys, I am so
close to hitting 200 reviews on the podcast.
If you haven't left a review yet, it would mean
the absolute world to me if you could drop a
review. I read them. They give me the motivation
to keep going. I appreciate them all. If you
haven't done it yet, I would be eternally grateful.
Make sure to go check out AIbox .ai .mcp if you
want to get access to audio, image, video, all
inside of Cloud or OpenAI or Cursor or any of
these other tools that take MCP. Guys, super
excited. about that go check it out there's a
link in the description i'll catch you all in
the next episode