Welcome to the podcast. We have a stacked lineup
today. Apple's lawsuit with OpenAI over their
trade secrets is heating up, especially as there's
an IPO coming this year. So we're going to talk
about what some of the negative repercussions
on OpenAI are. And all of this is happening as
Apple has just passed NVIDIA as the most valuable
company in the world, unseating them. Moonshot's
Kimi K3 is looking to match OpenAI's Opus 4 .8.
Their valuation has hit $31 .5 billion. cities,
Hochul, their governor, used AI to review every
single rule in state law, but still decided to
ban data centers. Google has renamed Notebook
LM to Gemini Notebook and is adding code execution.
And at the same time, an ex -DeepMind researcher
has just raised $55 million at a $300 million
valuation for a visual AI startup called Exlorian.
Databricks also landed funding at a $188 billion
valuation. We're getting into all of that on
the podcast today. First, I wanted to tell you
about the most exciting feature I have added
to AI Box, which is an MCP, basically a connection.
that allows Claude or any other AI tool to get
all the other AI tools inside of it. Particularly
exciting for me is that I've added image generation
inside of Claude. You can also do audio and video,
but image is what I'm really excited about. I've
spent the entire day making a Facebook ad campaign,
and every single ad I created with this tool
was using the AI Box MCP. Essentially, what you
do is when you're using Claude, all you have
to do is say, generate an image of XYZ. You can
put the regular prompt you'd put into ChatGPT
or something else and just say, use AI Box, or
it really just understands that that's a tool
that can generate images. So you could just say,
generate an image of XYZ. Claude will go. Use
your AI box account, generate the image, pull
it in and open it right there in your cloud desktop.
So you can see the image inside of cloud. It
feels magical. I'm not going to lie. And the
thing that I love about it is that it can do
multiple images simultaneously. So I'm like,
I work with cloud to come up with like a template
of an image that I like for the ad, but it needs,
you know, images and little graphics inside of
the ad. So I work on that and then I'm like,
perfect. This looks great. Now make 20 different
variations of this, you know, change the title
and headline and change these graphics, go use
AI box for all of that. So. It uses AI box to
generate all the little images and graphics and
pulls them into its template it made and it spits
out 20 of them. And it does it in like a few
seconds because it can do simultaneous image
generation on AI box. That is what I'm super
excited about. If you want to try it out, it
is AI box dot AI slash MCP. Okay, let's talk
about the lawsuit between Apple and OpenAI. I
think a lot of people are talking about this
right now, particularly because the story broke
that Apple has passed Nvidia to claim the world's
most valuable company title. So now we have the
biggest company in the world coming against opening
eye, which is looking to IPO soon. Apple hit
a $4 .88 trillion market value on Friday. And
the reason for this isn't just Apple growing,
but also Nvidia falling. Nvidia went down 3%,
which basically ended their run. the top in the
entire market which they've been sitting there
for quite some time apple's valuation while it
hit that um it surpassed nvidia's valuation of
4 .8 trillion Nvidia shares fell, like I said,
Apple's up 22 % this year, and Nvidia has gained
about 7%. It's interesting because we're seeing,
you know, Nvidia that had such a good run for
so long, and we're shifting out of that being
the hottest segment. And a lot of Wall Street
has rotated towards memory and infrastructure.
Companies like Micron Technologies and SanDisk
are becoming really popular. And so it feels
like, you know, maybe Nvidia isn't just the hottest,
sexiest company. Now, while this is happening,
Apple is doing incredibly well in the stock market
and their lawsuit of OpenAI is pushing forward.
They are alleging that OpenAI hired over 400
former Apple employees and they misused trade
secrets through their chief hardware officer.
And of course, with the IPO that's coming up,
this is something that... OpenAI obviously doesn't
want to have, you know, tarnishing their name.
Apple named OpenAI's chief hardware officer in
this whole complaint. And this is all happening
at the same time that OpenAI has released their
first piece of hardware. It is a $230 keyboard
for Codex, their coding tool, which I have purchased,
by the way. So I'll give you guys a review when
that comes in the mail. I'm actually really excited
about that. Was it a spur of the moment purchase?
Yeah, I actually saw the news drop that this
thing was available and I was covering it on
the AI Hustle podcast. And like mid -podcast,
Jamie starts talking and I'm like, okay, I gotta
buy this keyboard because it said while supplies
lasted. I knew the supplies were not gonna last.
So I went and purchased it. Side note, OpenAI
also released a basketball that they're selling
and it just looks like a weird gradient color
basketball with the OpenAI logo on it. That also
said supplies last. I just, I saw this and that
came out, I guess, a few hours ago. I went and
looked and that was already sold out. So the
basketball and the keyboard are sold out, but
it looks like OpenAI is making these physical
products, which is kind of funny. Will this save
them from... their IPO woes? I don't think so.
But it's going to be interesting because that
was their first piece of hardware that they're
releasing and they're working with the former
Apple iPhone designer, Johnny Ive, to come up
with a new undisclosed piece of hardware. Some
people say it's basically like a smart speaker
on your computer. In any case, I've looked over
a lot of the accusations Apple's made. It looks
pretty bad. Basically, they brought over a new
chief of hardware and he came from Apple and
they gutted the entire... design team of Apple.
They hired like 400 people from the design team
of Apple. You know, he used to be over there
at Apple. So he knew everyone. He pulled them
in. And when he pulled them in, Apple's allegation
is that he told all of them as they were coming
to OpenAI, this is how you get around all of
the, basically when you quit Apple, how you get
around all of the, you know, retaining all the
information. So bring little components, give
us the secret words, tell us what's going on
at Apple. And in some case, they said that one
of the employees kept like a laptop and used
some like VPN. end loophole to keep access to
some data at Apple. That's kind of Apple's lawsuit
in any case. I mean, it's an important lesson
though, when your employees leave, everything
in their head also leaves with them. So what
type of confidential information do they move
over? That's what the lawsuit is going to be
covering. Moonshot's Kimmy3 is looking to beat
Anthropic right now. And on one important benchmark,
which is a front end developer benchmark, it
is... ahead of Fable 5 even. So it's really doing
well. It's a two to three trillion parameter
open weight model. And with all of this, it's
coming from a Chinese lab. And the Chinese lab's
valuation, Moonshot, jumped to $31 .5 billion
in two months as they're coming out with this
model. And it's beating even Anthropocon, a bunch
of different... benchmarks. This is the largest
open weight model that has ever been released
from China. They raised $2 billion at a $20 billion
valuation back in May, and now they're valued
at 31 billion. So their valuation's increasing,
their model's getting really good. This is all
coming to a time with Anthropic, they're getting
kind of held back by the government. It feels
like we're getting a lot of regulation, these
30 day kind of hold back periods where the government
can go and review the models before they release
them to the public. None of that is happening
in China and they're releasing all of these models.
open weight so people can actually get them and
fine tune their own models on them. A lot of
enterprise buyers prefer this because if you
can grab something like Kimi K3, put it on your
own hardware, it's not tied to China, it's not
tied to Moonshot. They don't see into anything
that you're doing. You fine tune your own stuff
on this system. And then you can basically access
it for quote unquote free, but you're using it
with... all on your own hardware. Now, some people
are like, hey, don't use the Chinese models.
I think maybe the play for the Chinese models
are open, basically release a bunch of these
open weight models, get people fine tuning on
top of them. So they're really, they're kind
of embedded in your ecosystem basically. And
then you could probably release better models
that maybe are paid, or you could just say, hey,
look, if you don't want to run it on your own
hardware, you can also run it on our, on our
data, on our like servers and stuff, which is,
which is a pocket. strategy. Right now we have
New York's governor, Governor Kathy Hochul. She
said that she used AI to review every state rule,
regulation, and policy in the last couple months.
And she said that the work they were able to
do in reviewing all of this in the last couple
months, she said it would have taken the staff
five years if they didn't have AI. This, in my
opinion, is showing a massive gap right now.
New York is using AI to streamline, and particularly
Kathy is using AI to streamline the government.
she's doing all of this while at the exact same
time she put a one year ban on new data center
build -outs inside of their state. So she's using
the AI, but she's banning it. It feels like all
of the people that fly on private jets to environmental
conferences and burn a billion pounds of fuel
and then tell everyone not to drive their car
because it uses too much fuel. So that's kind
of what it feels like to me. She said with what
she was able to do with the AI though in reviewing
all the laws, which by the way, phenomenal. So
I'm not like... not begging on everything. I
think that's amazing if she can use AI to streamline
all of the laws. She said she found a bunch of
outdated laws. One of them was a $25 dog hunting
fee. If you wanted to go hunting with your dog,
you had to pay a $25 fee. Apparently there was
a fee for pregnant workers. They had to go get
a permit if they wanted to work after midnight.
There's just like all these random laws and regulations.
And you know, this just kind of happens when
a a state has been around for so long and all
these regulations get added no one ever goes
and takes the regulations away so i'm all for
deregulating and i think they did you know a
great job they found a bunch of things hoshel
didn't say what ai model they used for all of
the reviews and they didn't say what their methodology
was for for doing all this but Overall, she said
that this was a huge productivity jump. She said
it's 30x productivity jump on what she was able
to do. So she gets some points for looking like
the cool governor for using AI to streamline.
And honestly, I hope every state does that. So
good on her for that. Bad on her for banning
data centers for a year. Although it doesn't
really matter because every other state will
get them instead, I guess. Okay. Google has renamed
Notebook LM to Gemini Notebook. I mean, it makes
sense. They're trying to keep with the branding.
Google loves changing the name and changing the
products and killing the products of everything.
I'm just happy that Notebook LM is still alive.
They've added code execution to it. It's funny
because they just basically had a runaway product
that was random. They released tons of products.
Notebook LM just caught fire for some reason.
I think a lot of students just would throw their
textbooks into it and have it. do a podcast talking
back to them. They liked that. But in any case,
it can now do code execution. It has a secured
cloud computer that can write code against your
own documents for data analysis. The app has
30 million users. 600 ,000 organizations are
using Notebook LM. Honestly, it blows my mind.
I mean, I've played with it. I've used it. I
know people that religiously use it. It's not
part of my go -to, but it blows my mind that
they have 30 million users and now it's called
Gemini Notebook. So they're just giving Gemini.
a better name, and a little bit of a good PR
boost with this popular tool. The code execution
is live today, so you can go use that for Google
AI Ultra subscribers and for Workspace customers.
It's rolling out to all pro users over the coming
weeks. Notebooks will now sync with the main
Gemini app, which honestly, I'm all for that.
I hate it when there's all of these different
tools and they're not connected, especially when
it's from the same company. Google really should
have everything connected, so I think that that's
great. It's going to appear inside of Google's
search AI mode. basically let you pull answers
from your own documents instead of just the web,
which is really cool, right? If you have a whole
bunch of documents on your Google Drive and you
want to, you know, and you go in and search in
the search bar on Google and all of a sudden
it gives you answers from that, that could be
a really useful bit of context. The app started
as a project at Google I .O. back in 2023 and
now it has grown. It got really famous and viral
from TikTok. Okay, all of this is at the same
time that Andrew Day, a former Google DeepMind
researcher, raised $55 million for Alorean at
a $30 million valuation. He did all of this before
the startup shipped anything. Dai is basically
betting that visual reasoning teaching AI to
understand images and video the way the current
systematic text handles is the next frontier.
And he basically turned down a whole bunch of
really high offers to take strategic investors
like NVIDIA who understand how expensive AI research
actually is. So NVIDIA is one of his investors.
A bunch of other people who got turned down.
Dai spent over a decade at DeepMind on foundational
work that all later influenced ChatGPT. Lorian's
valuation to capital ratio is way more aggressive
than even thinking machines from... a former
co -founder of OpenAI, which was one of the largest
seed rounds in US history. Google, OpenAI, and
Anthropo are all working on multimodal. Understanding,
which is a recent Stanford benchmark. And that
benchmark in particular showed that frontier
vision models are still lagging and they're worse
than a toddler on basic visual reasoning tasks.
So he's trying to crack the code and we'll see
if that is possible. Databricks has landed funding
at a $188 billion valuation. They just closed
this funding round. They made it basically in
the same league as OpenAI and Anthropic on paper
anyways. The data and AI platform company, they're
not just building AI models. They're also selling
a lot of the infrastructure that companies use
to train, deploy, and run models in production.
Databricks right now is competing with Snowflake,
if you've heard of the company, on data warehousing.
And they're also competing a bunch of other big
players on modeling serving. They're also strengthening
their acquisition. They acquired Mosaic ML, which
I covered on the podcast back in 2023. I don't
know why, it's kind of funny. That particular
episode I covered from the San Francisco airport,
which is funny to me. But anyways, the company
has basically not done an IPO. So they're not
publicly listed. They've just done these private
funding rounds. kind of wild that we have these
massive ai companies that are doing that right
now at this new valuation they're now valued
higher than most established enterprise software
companies and i I think basically they pushed
the bar for what it takes to go public because
at $188 billion, you would have expected this
type of company to go public in the past. Guys,
thank you so much for tuning into the podcast.
If you enjoyed this episode, make sure to leave
a rating and review wherever you get your podcasts.
And as always, make sure to go check out AIbox
.ai if you want to get access to over 80 different
AI models and the MCP so you can pull all those
AI models into Cloud. You can get Cloud to generate
images, audio, video. It will save you so much
time. It's amazing. It's a buttery smooth experience
that I've been doing all week long and I love
it. So if you wanna check it out, AIbox .ai slash
MCP. All right, I'll catch you guys all in the
next episode.