Nvidia’s China Shift, Meta AI Drama, Paramount's Pitch | Diet TBPN

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Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00John Coogan?

  Nvidia can sell H200s to China now. It's a big reversal from the chip controls of a few years ago, which actually started during the Biden admin. We were really pushing to not allow big, you know, the best and most amazing chips to go to China. Well, all of that's changed with this H200 news. Now Nvidia can sell to China, but they got to pay 25% to Uncle Sam. The big man. The big man, Uncle Sam. The estimate for you, the taxpayer, assuming you're an American taxpayer, is that you will be $5 billion richer because Nvidia is estimating that they will be able to sell $5 billion of chips to China every quarter. That's right.

• 0:43John Coogan?

  25% of that, of course, is $5 billion per year. But it's unclear where this will actually pan out. I'm not sure where it will land. It is an interesting question because there's been a lot of diversion. There's been a lot of engineering that's happened in China to work around the frontier. But then also, they might have gotten their hand on some blackwell. There's a whole bunch of crazy headlines going back and forth. So there's a bunch of good arguments on both sides and there's a bunch of terrible arguments as well. The best argument that I have heard for allowing an American company, Nvidia, to sell H200s to Chinese companies is basically just free trade. Keep the government out of the boardroom. Nvidia is over 30 years old. They make computer parts.

• 1:26John Coogan?

  If you don't believe in nuclear level AI capabilities, then why would you be so worried about AI going to China? It's just autocomplete. It's just better SaaS. You know, yes, it might increase their GDP, but there are tons of things that we sell to China that does increase their GDP. We bring the business of manufacturing iPhones there, right? We bring them quite a lot of business. We sell soybeans. We sell all sorts of food. They sell us stuff. Like, free trade has happened for decades. Like, yes, there is a little bit of a decoupling, but for the most part, the modus operandi of the American geopolitical system has not been. Try and reduce GDP growth in all of our geopolitical rivals at a full stop, right?

• 2:10John Coogan?

  No, it's never been that way. And at the end of the day, if you're an American company, like I am sympathetic to this idea that Jensen is just like, look, I'm just trying to build a big company. I want to sell my stuff everywhere. I think my stuff's good. I don't think it's dangerous. I don't think I'm making nuclear weapons. I didn't get into the nuclear weapon business and now I'm being treated like I'm selling nuclear weapons. It doesn't quite make sense. I understand that there are other.

• 2:36Jordi Hays?

  It's hard for him to go over there, go to Washington and argue. It's not, it's really not that important. It's just kind of like an extension of the existing software paradigm. It's just SaaS.

• 2:48John Coogan?

  Well, yes, yes, yes, yes. You're right. It's hard.

• 2:51Jordi Hays?

  Because you can't do that and then also, you know, continue to sell this.

• 2:53John Coogan?

  Yes.

• 2:54Jordi Hays?

  Did we just lose power? What's going on, boys?

• 2:56John Coogan?

  Yeah, what's going on with the lights?

• 2:57Jordi Hays?

  Probably a nation state as usual.

• 3:00John Coogan?

  Who knows?

• 3:01Jordi Hays?

  Trying to take us offline.

• 3:02John Coogan?

  One sort of giga brain take is, you know, if you believe that AI slop will one-shot people, it will reduce the birth rate because people will be so obsessed with AI avatars, romantic companions. And if you are anti-China, maybe you should export as much as possible. I don't see anyone making those, those arguments today, but I do wonder if there's someone, if you are doom pilled in that way where you think that AI is bad, but you also think China is bad, do you have to argue in favor of the export of the H200? Maybe.

• 3:37Jordi Hays?

  Let them have.

• 3:38John Coogan?

  I don't know. We don't, we also don't know exactly how big of a deal this H200, you know, unbanning is because last time there was news on this front, the CCP basically said like, hey, we don't want our Chinese companies buying these, even if they are available. We don't want them. We don't want them here. And the CCP, you know, kind of doesn't want Nvidia chips filling up Chinese data centers. It feels like. China, at the very least, has been somewhat receptive to this idea that they don't want to become dependent on the American Tech Act. But clearly, Chinese companies do want Nvidia. We saw this with the DeepSeek teams figuring out how to get some Blackwell, apparently. And it's actually going further than that.

• 4:19John Coogan?

  There's some Chinese nationals that have been recently risking legal consequences from the American justice system. This is very interesting. On Monday, the US Attorney's Office in Houston revealed something called Operation Gatekeeper. Very exciting name.

• 4:33Jordi Hays?

  The government is weirdly great at naming.

• 4:38John Coogan?

  Yes.

• 4:39Jordi Hays?

  And coining some of those operations.

• 4:40John Coogan?

  Interestingly, when you Google, when you Google "Operation Gatekeeper," you get something about building a border wall. And it was, but, but from the presidency of Bill Clinton. So Operation Gatekeeper originally was a measure implemented during the presidency of Bill Clinton by the United States Border Patrol. Then the INS aimed at halting illegal immigration to the United States at the US-Mexico border near San Diego. They constructed a wall on the beach in the 1990s. He literally built a wall, which is crazy to me because I thought that was like a Trump era thing. Anyway, the new Operation Gatekeeper.

• 5:16Jordi Hays?

  The operation for that Canadian snowboarder is called Operation Giant Slalom.

• 5:20John Coogan?

  Giant Slalom, that's a good name, too. So, the new Operation Gatekeeper has nothing to do with the, you know, domestic immigration across the US-Mexico border. It instead is focused on AI chip smuggling. And this particular operation has just uncovered $160 million worth of illegal AI chip smuggling. A 43-year-old Chinese citizen named Fan Yui Gong was living in...

• 5:47Jordi Hays?

  What?

• 5:48John Coogan?

  Yeah, his name's Gong. Which, I mean, we love gongs here, but I don't love this.

• 5:53Jordi Hays?

  Before we figure out the bad stuff that he's doing, let's, let's give a quick...

• 5:59John Coogan?

  So this guy's living in Brooklyn, 43.

• 6:01Jordi Hays?

  Okay.

• 6:02John Coogan?

  And also separately, a Canadian citizen from China. They independently conspired with employees of a Hong Kong-based logistics company and a China-based AI technology company to circumvent US export controls. Basically, they bought a ton of Nvidia GPUs. Then they would send them to a co-packer, like a fulfillment center, remove the Nvidia labels, put new labels on the chips that would say "SAND QIAN". Once the chips were packaged back up, they would ship them. Oh, I said "chip them". I need to change that. Probably already went out. They would ship them to China or Hong Kong under a generic classification of generic computer parts.

• 6:46John Coogan?

  And so everyone involved faces significant legal consequences. Now, I couldn't figure out exactly what the consequences are. I'm not sure if it's like years in prison, but it doesn't seem good.

• 6:56Jordi Hays?

  The question then becomes, how did it get in their hands initially?

• 7:00John Coogan?

  Oh, because they were just like, hey, I'm a Brooklyn guy. I want to buy some Nvidia.

• 7:04Jordi Hays?

  I know, but 160 million, it's a big company. They do a lot of revenue, but you would think, oh, what's this address that we just got this order from? Oh, is that a...

• 7:15John Coogan?

  It'd be like, yeah, I'm shipping into a company in Brooklyn.

• 7:16Jordi Hays?

  Oh, it's probably like a coffee shop or something like that.

• 7:20John Coogan?

  Yeah, maybe it's like, you know, I want to have an accelerated, you know, design studio in Brooklyn or something. I don't know.

• 7:26Jordi Hays?

  I know, I know, but it seems like a KYC failure.

• 7:31John Coogan?

  I don't know. There was one of the guys involved, it was technically a Canadian citizen who was from China. And so you stack these, all these up, and you have like, I'm shipping it to Brooklyn, and the guy's a Canadian national. And, you know, at a certain point, you're like, and it could have been through some sort of reseller. I don't know. I'm sure we'll find out more.

• 7:51Jordi Hays?

  Last name is Gong. VPN hits a gong a lot. It's probably.

• 7:56John Coogan?

  They probably got too excited and they were just like, wait, we sold how many? We sold 160 million bucks today? Let's ring the gong. Mr. Gong will unfortunately not be hitting any gongs soon because he might be going to jail. So we initially were selling the nerfed one. Then now with this new, with this new Trump uh uh rule, you no longer have to sell the nerfed version. You can just sell the real American version, uh which of course is great for Nvidia.

• 8:19Jordi Hays?

  Like actually.

• 8:20John Coogan?

  Blackwells are shipping now and so we're still like the, the US policy is still keeping China one iteration behind. And maybe that will be the ongoing decision here, the ongoing um strategy. I'm not exactly sure. It doesn't like the, the administration hasn't really laid out a philosophy of this at all. I mean, originally, what was it? Lutnik said like, we're not giving them the best we have. We're not giving them the second best we have. We're not even giving them the third best we have. We're giving them the fourth best. But now it's like, we really are giving them the second best we have. So I don't know. That seems like a shift in policy, but we shall see. What's interesting is that now that Nvidia is approved for export, I'm interested to understand where will sales to China land?

• 9:03John Coogan?

  They've said if there were no geopolitical considerations, we could sell five, five billion a quarter, 20 billion a year, which is, it's not a drop in the bucket, but it's not exactly, you know, half of their revenue. I think they did 60 billion last quarter or something like that. You're looking at like a $200 billion company. This is like 10% of their revenue is going to be in China next year if they really take the, take the, take the handcuffs off. The big question is like, how much smuggling was actually happening? Like, we know 160 million was happening because we caught them. But was there a billion happening? Because you don't catch 100% of what's going on, right? So in theory, there could be like a couple billion, maybe 10 billion that was happening.

• 9:43John Coogan?

  What is demand actually for Nvidia GPUs in, in China? I would imagine it's higher, but then of course you have the dynamic of the CCP.

• 9:49Jordi Hays?

  Yeah, it seems like netting at around 10% of global sales makes it's given they're projecting 210 billion.

• 9:57Jordi Hays?

  Or that sort of census for next year and nearly 300 billion for 2027.

• 10:02John Coogan?

  I would expect, you know, I would, I would expect something more like 30, 40, 50% of China's really trying to like, keep up and win the race and this is like the best supplier. There's a lot of debate over this particular deal, the decision to sell H200s to China for 25% tax. There's some debate over like whether this should be some sort of like, you know, big picture trade deal where we sort out the, the rare earth element picture in Taiwan. And we also work through the soybean issue and we work through, you know, a whole bunch of different export things all at once, instead of just doing like one off, one deal after another in isolation. I'm not that nervous about that. I, I, I don't, I don't really

• 10:45John Coogan?

  feel like I, I really need it all to be resolved once. I feel like it's fine to have this happen and then watch the consequences of that and see how the chips stack up and how valuable is this. I don't know that it has to all be done within one deal. But regardless of whether America wins from this, China wins from this, uh, it's clear that Nvidia wins and also that smugglers lose because the smugglers are going to jail.

• 11:11Jordi Hays?

  The Warner deal will take a while. MNA AI data, trillion dollar IPOs and good TV is bad for stocks.

• 11:17John Coogan?

  We're really doing Bloomberg Day.

• 11:19Jordi Hays?

  Warner wars. It's perhaps worth saying that Paramount's offer for Warner Brothers Discovery Inc. is not exactly a classic hostile tender offer. Warner has signed a merger agreement with Netflix in which Netflix would buy most of Warner for about $27 per share in cash and stock, leaving Warner shareholders with a bit of the company worth somewhere between $1 and $5 per share. That merger will take a long time to complete. For one thing, Warner's shareholders have to vote on it, which means that Netflix and Warner need to put together a proxy statement and prospectus for the deal, file it with the SEC and hold a shareholder vote that could take months. For another bigger thing, the US Department of Justice will need to review the deal for antitrust concerns. Those concerns are significant and Netflix and Warner have budgeted at least a year for that review. That deal was announced

• 12:02Jordi Hays?

  last Friday and on Monday Paramount jumped in with an all cash $30 per share offer to buy all of Warner, which we discussed on Monday. It took the offer directly to Warner shareholders. It launched a tender offer scheduled to expire on Jan 8th to buy those shares. The two deals operate on different timelines. Warner plans to ask its shareholders to vote on the Netflix deal, but that vote will happen long after Jan 8th. And if Paramount buys all the shares before the vote, then the question is moot.

• 12:27John Coogan?

  Oh, because they'll own all the shares, they'll vote, no.

• 12:29Jordi Hays?

  If the shareholders all sell their shares to Paramount in January, they can't vote on the Netflix deal in March. And if 51% of the shareholders sell to Paramount, Paramount will control Warner, vote down the Netflix deal, and acquire the company itself.

• 12:41John Coogan?

  Interesting.

• 12:42Jordi Hays?

  That is the classic benefit of the hostile tender offer. It's fast. If Paramount's tender is more appealing than Netflix's merger, then Warner shareholders will sell their shares to Paramount before the Netflix vote, and Paramount will win. And if the deals are roughly equally appealing, if shareholders are more or less indifferent between the two bids, then the speed of the tender offer is a real advantage. Shareholders.

• 13:00John Coogan?

  The headline here is that this is, this deal's gonna take a long time. And here he's saying it's fast, so.

• 13:05Jordi Hays?

  Well, let's see where he gets it.

• 13:06John Coogan?

  This is interesting. I'm hooked.

• 13:07Jordi Hays?

  Then the speed of the tender offer is a real advantage.

• 13:09John Coogan?

  Yeah.

• 13:10Jordi Hays?

  Shareholders think, eh, I don't care too much, but if I tender to Paramount, I'll get this done faster, so I might, so I might as well tender, and Paramount wins. Or that is a classic theory, but it is hard to achieve in practice, and it's not really true here. Paramount's offer says at the top that it expires on Jan 8th, but it's not like it will buy the shares on Jan 9th. Even if 51% or, or for that matter, 100% of Warner shareholders tender to the Paramount's, into Paramount's offer, the offer will not close until two other conditions are met. One, Paramount's deal also requires antitrust clearance. It is not legally allowed to buy the Warner shares until it gets that clearance.

• 13:45John Coogan?

  Interesting.

• 13:45Jordi Hays?

  For a combination of fundamental and Trumpy reasons, Paramount thinks it will have a much easier time getting antitrust clearance than Netflix would. Yeah, Paramount's proposal expects to receive regulatory approvals, likely within 12 months.

• 13:58John Coogan?

  Woo.

• 13:59Jordi Hays?

  Faster than Netflix's expected timeline, but a lot slower than Jan 8th. Two, Paramount's deal is by its terms conditional on becoming a friendly deal. A condition of its offer is that Warner Brothers shall have entered a definitive merger agreement with Paramount. And the purchaser substantially in the form of the merger agreement submitted by Paramount to Warner Bros. on December 4th, 2025. That is Paramount does not just want to buy a majority of Warner's stock and block the Netflix deal that way. It wants Warner's board to abandon the Netflix deal, pay that $2.8 billion reverse termination fee and sign a deal with Paramount instead.

• 14:34John Coogan?

  Interesting.

• 14:35Jordi Hays?

  The deal is too big and the antitrust approvals and financing are too complicated to do as a purely hostile deal. Paramount will need Warner's help. In some sense then, then the Paramount deal is not a real tender offer, one that depends only on the shareholders, one that shareholders can accept even over the board's objections. The Paramount deal is a pressure tactic, a way to get shareholders thinking, hey, I would rather get $30 in a year than $27.75 in 18 months and telling the board that. If the shareholders all would tender into the Paramount deal, then it's hard for the board to stick with the Netflix deal as a matter of fiduciary duties and shareholder pressure. But it's not like if those shareholders all do tender into the Paramount deal, it will just close. It's a jumping off point for negotiations. Paramount and Netflix are girding for a battle they

• 15:20Jordi Hays?

  predict will stretch well into 2026. Luca Shaw says Warner Brothers was given 10 business days to respond to Paramount's hostile $30 a share bid for the company on Monday since that offer was already rejected once. The Warner Brothers board isn't planning to cancel the merger agreement signed last week with Netflix, according to people familiar with the company's thinking. Doing so would require Warner Brothers to pay Netflix a $2.8 billion termination fee. That puts the onus on Paramount to make the next move in what everyone expects to be a drawn out affair lasting months. Paramount can follow through on its tender offer to buy Warner Brothers shares from investors at $30 each on Jan. 8. It can also extend the bid, too, to stop the Netflix deal or increase the terms. Shareholders of Warner Brothers, one of Hollywood's biggest film and TV companies, are hoping for a bidding war that further boosts the price of the deal.

• 16:05Jordi Hays?

  Both companies have communicated that they have the ability to increase their offers. Paramount is privately weighing an increase or whether to instead add sweeteners intended to give WBD's board greater confidence in its regulatory prospects versus Netflix. This position that the Allisons are in where it feels like every other week they have to offer a higher price, it's like, it's kind of a vicious cycle.

• 16:26John Coogan?

  It's, uh, it's pretty, pretty crazy to have them, uh, yeah, going back and forth here. I, I feel like it's going to land with Netflix. It just feels like the breakup fee is real, like the fact that there's a massive multi-billion breakup fee on both sides. That's like material to their market cap, material to their, to their, uh, you know, you, you have to pay, you know, essentially 1%, 2% of your market cap in the event of a breakup. That, that feels like, like, like Warner Brothers and Netflix were like, let's actually make this happen. Let's be really sure this is gonna happen. I don't know. Then again, like the Adobe Figma thing, I was shocked when that broke up because that's felt like a crazy breakup fee. But 1 billion was still lower than what Adobe

• 17:11John Coogan?

  was trading at at the point. It was less than 1%. This is higher on a percentage of market cap.

• 17:15Jordi Hays?

  Meta's new AI superstars are chafing against the rest of the company.

• 17:20John Coogan?

  It's chafegate.

• 17:21Jordi Hays?

  It's chafegate. We've established this. It's an us versus them mentality has emerged between Meta's top artificial intelligence team and longtime lieutenants to Mark Zuckerberg.

• 17:30John Coogan?

  Yes.

• 17:31Jordi Hays?

  Eli writes, "When Mark Zuckerberg revamped Meta's AI operations this year, he recruited a new leader, former guest of the show Alexander Wang."

• 17:39John Coogan?

  Let's go.

• 17:39Jordi Hays?

  A 28-year-old entrepreneur to build a team of top researchers from rivals like OpenAI and Google.

• 17:44John Coogan?

  Yes.

• 17:44Jordi Hays?

  That team, called TBD Lab, or to be determined, was placed in a siloed space next to Mr. Zuckerberg's office at the center of Meta's headquarters, surrounded by glass panels and sequoia trees. Mr. Zuckerberg wanted to separate the new AI group from the bureaucracy of the company, which owns Facebook, Instagram, and WhatsApp. In meetings this fall, Mr. Wang has privately told people that he disagreed with some of Mr. Zuckerberg's longtime lieutenants. You're going to be interested in this, John. So in one case, Mr. Cox and Mr. Bosworth wanted Mr. Wang's team to concentrate on using Instagram and Facebook data to help train Meta's new foundation model to improve the company's social media feeds and advertising business that you've been wanting this this whole time.

• 18:27John Coogan?

  Yes.

• 18:28Jordi Hays?

  It's like, do this whole thing, personal superintelligence, and then just make

• 18:30John Coogan?

  Just deliver the products that you are actually.

• 18:32Jordi Hays?

  Make the ads better, you know, grow the business in that way.

• 18:36John Coogan?

  So what did Mr. Wang say?

• 18:37Jordi Hays?

  He argued that the goal should be to catch up to rival AI models from OpenAI and Google before focusing on products, the people said. So this makes sense, right? This makes sense for Wang. I don't know that it makes sense for the company. From everything that we've seen so far, it feels like Meta could add a trillion dollars to its market cap by just focusing all this incredible talent on just making the core business better. But Wang and the rest of the team are going to be a lot less motivated by that than having the biggest data centers, doing the biggest training runs, having the best model, competing on the global stage.

• 19:19Jordi Hays?

  And so I can see why Wang is pushing the other direction.

• 19:23John Coogan?

  Okay. Let's actually unpack this because like if, you know, Mr. Wang here, who says he's developing the model, he argues that the goal should be to catch up to rival AI models from OpenAI. Like if they wind up having a model that is, you know, actually be in the same league as Claude and Gemini and OpenAI and XAI, and it's this like, you know, closed source, it's an API, it does well on MMLU, it does really well on the benchmarks, it's like... What value does that really bring?

• 19:55Jordi Hays?

  Like if you want to compete in search, knowledge retrieval, even even agentic commerce, you can take models off the shelf

• 20:02John Coogan?

  Yeah.

• 20:03Jordi Hays?

  in in the same way that in the same way that Apple's doing. So I'm just trying to think, you you make the best model in the world. Are you going to go compete with? So so we've seen this, we've we've run this with XAI, right?

• 20:13John Coogan?

  Yeah.

• 20:13Jordi Hays?

  They are trying to build the best model in the world.

• 20:15John Coogan?

  Yes.

• 20:16Jordi Hays?

  And it's now becoming clear that just having a great model does not automatically give you a meaningful amount of market share.

• 20:23John Coogan?

  Yeah, no, no, you need to productize it. And OpenAI has productized very well with a viral, like it is synonymous with AI, consumer AI. Everyone has the app mostly on their their home row. They're using it a ton. They have a billion DAUs, it's growing, you know, doing great, or MAUs. Then you have Google, just so much surface area to actually stuff knowledge retrieval AI in knowledge retrieval products. They are, you're already trying to do that with Google Search. Anthropic, super focused on code, super focused on on on B two B. Facebook doesn't have a B two B team like they they they're they're not like a hyperscale like that. Might make sense for Amazon to be like, hey, we want to get, you know, we want to, we want, we want to take that approach. And then XAI is sort of the same thing.

• 21:07John Coogan?

  At least they have, you know, X to distribute through. But being the fifth, the fifth, like hottest, even if the model is is for this week, like the number one. I don't know, I I would be, I would be very focused on on what can, what can be done within Instagram and Facebook and WhatsApp to a lesser extent.

• 21:25Jordi Hays?

  The reason, the reason to be excited about that as a Meta shareholder is that AI is such an obvious tailwind for Meta's business. Meta has been pushing, you know, this personal superintelligence narrative. The only problem with that is that I don't know what that means, right? It sounds awesome, but and I'm I'm happy to wait and see. But they've been having, you know, there's been a number of employees kind of churning out already.

• 21:57John Coogan?

  Mm hmm.

• 21:58Jordi Hays?

  And it's possible that that there's that they don't necessarily know exactly what that means themselves yet, right? They're running it like a startup internally.

• 22:06John Coogan?

  Yeah. What does personal superintelligence mean? I feel like there is room for Product-led innovation in AI, new, new instantiations of the underlying, like new ways to interact with the fundamental, like, like, you know, we're having this AI moment and then we get video models, we get image models, we get image editing, we get knowledge retrieval, we get agents, deep research, we get coding agents. Like, we've had three or four or five, like, really cool instantiations of it. And not every lab is, is frontier at every single instantiation. Anthropic doesn't have an image generator, right? Other, other labs, like, they're, you know, obviously, OpenAI really thrives in the consumer and has created

• 22:51John Coogan?

  just a great app that is reliable and answers your questions reliably. Other, other companies have struggled to, you know, to hit that, to hit that instantiation. It would be very, very cool to watch the Facebook team figure out what is a way that they can bring AI to bear inside of Instagram in a cool way, in a new way. The problem is, is that Facebook and Instagram don't really have that DNA. They sort of tried it with the Vibes app, but also, as soon, there's very low, like, ROI on that, because as soon as you, as soon as you, like, let's say that they do come up with, like, the next stories. And it's like, oh, wow. Like, you take AI and you stuff it in a social app and you do this one special thing and then everyone loves it. It's great. It's not just like-

• 23:31Jordi Hays?

  Well, they didn't create that.

• 23:32John Coogan?

  No, I know, I know, I know. But let's say that they did. It's like, it's gonna get copied everywhere anyway, so it's not really that much, like, they really should just wait around for everyone else to do their R and D. They should wait, they should be, Evan Spiegel, what are you doing? Come on, invent something for us. And so, I, I can actually see Alex Wang's pushback on, like, hey, you, you wanna, you wanna use Instagram and Facebook, you, you wanna, you wanna do something more incremental, but, like, what, what are we gonna, how are we going to do something great in AI in those, in those ecosystems? I don't know that there is that much.

• 24:02Jordi Hays?

  Part of, well, maybe we haven't discussed so far is how-

• 24:07Jordi Hays?

  TBD will tie into Reality Labs, right? Is it possible that they need in order to fully realize the Reality Labs vision of having a pair of glasses that see and process everything that you see and can provide you that personal superintelligence? So you're walking around and it's like, oh, I forget that person, you know, it just pops up like a name tag for somebody, right? You see an item in the real world and you're like, you know, you do this and you buy it, right? It's very possible that they need to get, eventually get that on device in order to be fast enough in order, in order to be super valuable. And so they do need this internal competency. There's of course, stuff that we're missing here, but ultimately I can see why Boz and

• 24:52Jordi Hays?

  Chris Cox were like, hey, why don't we just figure out how to make an extra $50 billion a year by taking some of the best researchers in the world and applying them to the core business.

• 25:03John Coogan?

  Gyms are coming to airports.

• 25:05Jordi Hays?

  This is big.

• 25:06John Coogan?

  This is big. Will you work out on your next plane?

• 25:08Jordi Hays?

  Consumers have been saying the other passengers aren't sweaty enough.

• 25:12John Coogan?

  Yeah, so this is from the...

• 25:13Jordi Hays?

  We gotta have gyms in right next, right next to the gate.

• 25:17John Coogan?

  This is hilarious because it, it seems to be a collab between Secretary Kennedy, who's the Health and Human Services Secretary. So there's a HHS crossing over with DOT somehow and they're like, let's, let's, let's make the airports healthier, which is like a funny thing.

• 25:34Jordi Hays?

  Paul Sally knows, coming in over the top.

• 25:36John Coogan?

  I feel like these, I feel like these like collabs don't happen before, but they're happening now. The, the idea of working on an airport, it's kind of crazy because if you are all sweaty and then you have to, and they also said like, you should dress up when you go to the airport and if you're dressed up and then you are all sweaty, that seems pretty rough. But I don't know, I, I like the idea of doing something new in airports. I think it's cool. I think it's good that there's some, some opportunity for some sort of grant program.

• 26:02Jordi Hays?

  I guess the question is the $1 billion grant program with how much it costs to make, like is this like 10 gyms?

• 26:09John Coogan?

  Well, so I don't know because like there's a world where you build like a proper gym in the 10 most premier airports that has like a sauna, showers, like full laundry, like, you know, you're good to go. You can spend like a couple of hours in there, really get a serious workout in, or it could just be like a couple of pull up bars and you put one in every... In every terminal in America. Can you imagine if it's just like, okay, yeah, like, you know, turns out JFK put in an awesome, awesome application. They got all 1 billion.

• 26:38Jordi Hays?

  Little calisthenics sound.

• 26:39John Coogan?

  They got it all. I don't know. It's a very funny story.

• 26:42Jordi Hays?

  Deeply amused by all the confident commentary that data centers in space do not work from a physics or engineering perspective. Elon operates two of the largest coherent GPU clusters in the world. SpaceX is responsible for over 90% of mass to orbit and SpaceX operates the largest satellite constellation in the solar system. More than 10 years later, no other company or country can consistently land and reuse orbital rockets. He publicly states that the lowest cost way to do AI compute will be with solar powered satellites. Maybe, just maybe, his pencil and paper analysis of the physics or the economics at play is superior to yours. Perhaps they have thought of a cooling solution that has not

• 27:24Jordi Hays?

  occurred to the galaxy brain accounts here, even after they took several minutes to carefully think about the problem. The CEO of Google also agrees that data centers in space will be normal within a decade. If you're not currently operating a large AI data center, a large satellite cluster, and have not landed a rocket. I think a lot of the reaction was just like, hey, like, three to four years feels super aggressive.

• 27:48John Coogan?

  Yeah, I would probably say like, there will be under 1 gigawatt of capacity in space by the end of 2027. It really feels like we're talking about timelines here more than if. It's more when.

• 28:03Jordi Hays?

  Elon responded and said, fools are determined to be fools. Trying to stop them from being so is futile.

• 28:10John Coogan?

  Hey, optimists get rich. Pessimists sound smart.

• 28:13Jordi Hays?

  This clip from CEO of Netflix.

• 28:16Speaker 02

  We go from 8% of view hours today in the United States to 9%. So we're still behind YouTube at 13%. And potentially worth noting that we would be behind what would be if Paramount combined with WBD, them at 14%. So we think that there's a really strong fundamentals based case here for why regulators should approve this deal.

• 28:38John Coogan?

  Yeah, this was.

• 28:39Speaker 02

  We go from 8% of view hours today in the United States.

• 28:42John Coogan?

  So, yeah, view hours, is that, is that? Like a good metric, there's something, he's definitely including YouTube in there and using viewers. At the same time, I think that's valuable. I don't know. It's, oh no, all of a sudden, there's only one place to get content. Like, that's not what people are the most worried about. They're maybe worried about a one buyer scenario for the movies that they make.

• 29:08Jordi Hays?

  If you thought paying for your kid's college tuition was nice, Larry Ellison is writing a $40 billion check for his son to acquire a movie studio and a television network. That, my friends, is father of the year. Totally agree. We should all aspire to one day write a $40 billion check for our children.

• 29:25John Coogan?

  100%.

• 29:25Jordi Hays?

  Each of them, actually. Doing a deal with your son.

• 29:28John Coogan?

  It seems fun. It seems like Larry is definitely in the conversation. He's at the dinner. You know, he's hanging out. He's part of this, even though David's obviously driving the story. And have a great day. Merry, Merry Christmas. Merry Christmas to you. The holiday season is upon us. And we love you. We'll see you tomorrow. Goodbye.