1
00:00:00,160 --> 00:00:02,077
Let's talk about Palunteer
just for a minute.

2
00:00:02,160 --> 00:00:02,397
>> Yeah,

3
00:00:02,480 --> 00:00:05,437
>> you guys are obviously crushing it.

4
00:00:05,520 --> 00:00:09,117
>> What's really interesting to me is what

5
00:00:09,200 --> 00:00:12,477
are going to be the most highstakes

6
00:00:12,560 --> 00:00:15,597
questions that complex organizations are

7
00:00:15,680 --> 00:00:18,557
going to have to ask about where AI is

8
00:00:18,640 --> 00:00:22,717
really going to change
the work that gets done. Alex.

9
00:00:22,800 --> 00:00:25,997
>> Well, um,

10
00:00:26,080 --> 00:00:28,717
the the there's like a there's the first

11
00:00:28,800 --> 00:00:31,357
wave of actually the first wave of AI

12
00:00:31,440 --> 00:00:36,397
really happened in the military,
but then my version of it was partly is

13
00:00:36,480 --> 00:00:38,957
classified, but you see it
in Ukraine and other places,

14
00:00:39,040 --> 00:00:41,677
>> but we're private here. You can
talk about classified things. Yeah, no

15
00:00:41,760 --> 00:00:45,837
problem. But um but I think actually the
real problem in disseminating the truth

16
00:00:45,920 --> 00:00:47,357
was

17
00:00:47,440 --> 00:00:50,557
you the truth in in America which is the

18
00:00:50,640 --> 00:00:55,677
defining place for AI which is also
super interesting because normally you

19
00:00:55,760 --> 00:00:59,277
have a revolution and like I spent half
my life in Germany you'd expect a German

20
00:00:59,360 --> 00:01:01,197
version a French version an American

21
00:01:01,280 --> 00:01:03,677
version but really you have America and

22
00:01:03,760 --> 00:01:07,117
China and and this is already completely

23
00:01:07,200 --> 00:01:10,797
unique um because yeah I mean if you

24
00:01:10,880 --> 00:01:11,997
think of other revol olution's

25
00:01:12,080 --> 00:01:15,037
philosophical industrial if you look at

26
00:01:15,120 --> 00:01:18,157
the history of Asia for example um um

27
00:01:18,240 --> 00:01:21,117
when Deng Shoping took over China he he

28
00:01:21,200 --> 00:01:24,157
immediately got industrial mines from

29
00:01:24,240 --> 00:01:26,877
America Chinese Americans um and then

30
00:01:26,960 --> 00:01:30,077
Japan's rise visav v China and but these

31
00:01:30,160 --> 00:01:34,557
things were pretty intertwined so Japan
rose because it it took over Chinese

32
00:01:34,640 --> 00:01:38,317
culture and then it took over western
culture of how to do industrial this is

33
00:01:38,400 --> 00:01:40,797
a revolution that is

34
00:01:40,880 --> 00:01:43,997
basically At least the original thinking

35
00:01:44,080 --> 00:01:46,477
and research is completely done here and

36
00:01:46,560 --> 00:01:48,877
then derivative advancement fast

37
00:01:48,960 --> 00:01:51,277
follower or China. So that's already

38
00:01:51,360 --> 00:01:53,997
super unique. Then it that leads to a

39
00:01:54,080 --> 00:01:56,717
lot of confusion because the first wave

40
00:01:56,800 --> 00:02:00,477
of AI which was you give us your data we

41
00:02:00,560 --> 00:02:03,997
put it in a model. The model kind >>
Are we still in the first phase or we're

42
00:02:04,080 --> 00:02:07,677
moving to >> we're we're
in the I think we're both in

43
00:02:07,760 --> 00:02:09,437
the first and second phase. So a lot of

44
00:02:09,520 --> 00:02:11,997
people are in a phase of you give me mo

45
00:02:12,080 --> 00:02:16,157
I take your model I run it I chillax on

46
00:02:16,240 --> 00:02:19,117
paying you a lot of money I get very I

47
00:02:19,200 --> 00:02:21,757
get I get value on very easy use cases

48
00:02:21,840 --> 00:02:24,797
it doesn't work on complex use cases and

49
00:02:24,880 --> 00:02:27,117
I may or may not be in danger of

50
00:02:27,200 --> 00:02:31,037
outsourcing my primitives my knowledge

51
00:02:31,120 --> 00:02:35,517
that the my alpha what makes my business
special to a model company that will

52
00:02:35,600 --> 00:02:37,277
compete with me effectively and put me

53
00:02:37,360 --> 00:02:41,277
out of business Um, and then but it's

54
00:02:41,360 --> 00:02:45,357
this unique phase. So like if you
just may take a neutral example, why is

55
00:02:45,440 --> 00:02:49,037
Europe not scared of AI? Why aren't
they adopting it on the battlefield even

56
00:02:49,120 --> 00:02:52,797
though they have all this information
of it's the thing that works? It's because

57
00:02:52,880 --> 00:02:57,117
you can still look at the things that
don't work and then say, okay, well this

58
00:02:57,200 --> 00:03:01,197
doesn't work. It's not worth it.
But then so this let me just get to your

59
00:03:01,280 --> 00:03:03,357
question which is this is all backdrop

60
00:03:03,440 --> 00:03:07,037
for what are what is actually working

61
00:03:07,120 --> 00:03:08,637
and then the what what does it mean to

62
00:03:08,720 --> 00:03:12,157
work? The first big difference like it

63
00:03:12,240 --> 00:03:14,717
used to be that the delta between a good

64
00:03:14,800 --> 00:03:16,877
software implementation and one that was

65
00:03:16,960 --> 00:03:20,397
second rate was real but it wasn't

66
00:03:20,480 --> 00:03:24,797
determinative for your life. And so
when we built Foundry, which is a data

67
00:03:24,880 --> 00:03:28,797
integration platform, which we're using
with you, that would save you time and

68
00:03:28,880 --> 00:03:33,677
money and make you more efficient,
it would make you A+ but B minus, which

69
00:03:33,760 --> 00:03:37,837
would take longer, was still in a range
of if you were better at marketing and

70
00:03:37,920 --> 00:03:42,317
you had B minus or you owned your you
you had a high moat, like just say

71
00:03:42,400 --> 00:03:46,877
you're you're building a certain kind
of missile, right? Okay. Yeah, maybe you

72
00:03:46,960 --> 00:03:51,117
could build them faster with foundry,
but you have a moat because it's hard to

73
00:03:51,200 --> 00:03:54,797
build this missile. And also, say you're
a French company or a German company,

74
00:03:54,880 --> 00:03:58,477
they're German government's going
to buy your missile even if it's B minus

75
00:03:58,560 --> 00:04:00,717
because it flies and it's German, right?

76
00:04:00,800 --> 00:04:03,357
Okay. So and we do the same thing but um

77
00:04:03,440 --> 00:04:06,477
so it okay so what happened what's

78
00:04:06,560 --> 00:04:09,357
happening in the second phase of AI was

79
00:04:09,440 --> 00:04:14,237
yeah but your missile isn't going
on target against the Russians or I if if

80
00:04:14,320 --> 00:04:17,677
you do not have a way of putting it
there and that way is going to be an

81
00:04:17,760 --> 00:04:19,837
application layer with a model and

82
00:04:19,920 --> 00:04:22,957
without that your interestingly your B

83
00:04:23,040 --> 00:04:25,597
minus missile is a triple plus with this

84
00:04:25,680 --> 00:04:28,157
and your A+ missile is useless

85
00:04:28,240 --> 00:04:31,997
>> so that's just binary and that this the

86
00:04:32,080 --> 00:04:34,317
profoundity of that minimal example is

87
00:04:34,400 --> 00:04:36,717
something that we don't have that you

88
00:04:36,800 --> 00:04:40,157
know in philosophical systems I I I was

89
00:04:40,240 --> 00:04:42,717
going to be an academic and I my form of

90
00:04:42,800 --> 00:04:47,837
>> law degree from Stanford
you have your PhD in philosophy

91
00:04:47,920 --> 00:04:51,277
>> your family's got to be somewhat
proud of your academic accomplishments

92
00:04:51,360 --> 00:04:55,197
>> no my they we can go back to that
but it's like and my dad's like you could

93
00:04:55,280 --> 00:04:57,997
have been something with that [laughter]

94
00:04:58,080 --> 00:05:00,717
literally it's like But uh I'm not

95
00:05:00,800 --> 00:05:03,837
joking. It sounds like

96
00:05:03,920 --> 00:05:06,317
um uh

97
00:05:06,400 --> 00:05:09,357
>> you you rarely have when these massive

98
00:05:09,440 --> 00:05:12,237
things happen it it from modernity to

99
00:05:12,320 --> 00:05:17,117
postmodernity to or or the or what is it
let's just take an American example.

100
00:05:17,200 --> 00:05:22,157
What does it mean to internalize the
first, second and fourth amendment? The

101
00:05:22,240 --> 00:05:26,637
it it the first amendment being
our right of free expression which is

102
00:05:26,720 --> 00:05:31,197
first of all the constitution was given
to us by a higher being. So it's already

103
00:05:31,280 --> 00:05:34,397
different than Europe. But then first,
second and fourth amendment, right of

104
00:05:34,480 --> 00:05:37,277
first expression, right to defend
to first expression which is really what

105
00:05:37,360 --> 00:05:41,517
the second amendment is about
and the right of privacy.

106
00:05:41,600 --> 00:05:43,917
It these are concepts that are so

107
00:05:44,000 --> 00:05:46,477
radical it takes generation. So here you

108
00:05:46,560 --> 00:05:48,717
have something that's very s like you've

109
00:05:48,800 --> 00:05:51,117
now have a thing a technology that will

110
00:05:51,200 --> 00:05:53,597
make a rocket to use a very simple

111
00:05:53,680 --> 00:05:56,877
example that was third rate first rate

112
00:05:56,960 --> 00:05:59,837
and deadly or you have something without

113
00:05:59,920 --> 00:06:04,397
it that will take the first rate rocket
and it's not useful. So this is true in

114
00:06:04,480 --> 00:06:08,717
every single enterprise commercial
enterprise and and and and what is it

115
00:06:08,800 --> 00:06:13,517
that is special about AI. So just
take an example you have unique ways of

116
00:06:13,600 --> 00:06:16,877
understanding how a market
would react to a message.

117
00:06:16,960 --> 00:06:20,077
>> Yes. >> Okay.
You are going to how do you share

118
00:06:20,160 --> 00:06:25,277
those insights with a with a partner
where you only share the insights that

119
00:06:25,360 --> 00:06:28,877
you want to share and they want to share
with you and how do you augment them

120
00:06:28,960 --> 00:06:33,197
where both the data the insights
and the models you run against them are

121
00:06:33,280 --> 00:06:37,117
sovereign meaning unique to them
or could be white labeled and sold to

122
00:06:37,200 --> 00:06:40,557
others. Well, and that's one of the
things we love so much about Foundry.

123
00:06:40,640 --> 00:06:45,677
Our integration of our data cloud
on Foundry gave us far more ability to do

124
00:06:45,760 --> 00:06:47,117
those things. And we're now able to

125
00:06:47,200 --> 00:06:50,157
onboard clients in hours that used to

126
00:06:50,240 --> 00:06:54,717
take months, but give them control. I'm
I'm going to pivot us back and bring us

127
00:06:54,800 --> 00:06:59,437
a little lower to the ground so most of us
here can understand the vast majority

128
00:06:59,520 --> 00:07:01,517
of what you say.

129
00:07:01,600 --> 00:07:04,877
We talk about data sovereignty a lot. We

130
00:07:04,960 --> 00:07:09,517
have a lot of CEOs in the room, a lot
of CMOs in the room. Alex, what does that

131
00:07:09,600 --> 00:07:12,877
really mean? >> It means
that well, first of all, and

132
00:07:12,960 --> 00:07:15,997
this is an very advanced thing,
and we're going to be able to augment this

133
00:07:16,080 --> 00:07:17,757
and then put models on it and then train

134
00:07:17,840 --> 00:07:21,277
the models so that the models reflect

135
00:07:21,360 --> 00:07:23,757
just what you know and do not expose it

136
00:07:23,840 --> 00:07:28,557
to the outside. So basically, okay,
every business, what is a business? A

137
00:07:28,640 --> 00:07:30,317
business a business meaning something

138
00:07:30,400 --> 00:07:32,957
that at some point in the future will

139
00:07:33,040 --> 00:07:38,157
provide high quality revenue meaning
free cash flow. Okay. And what is why is

140
00:07:38,240 --> 00:07:42,157
free cash flow what everyone thinks
about analysts? Um why is this an

141
00:07:42,240 --> 00:07:45,837
important concept? Because it basically
tells you you have something unique in

142
00:07:45,920 --> 00:07:49,517
your business that is valuable enough
where you have pricing parity so that

143
00:07:49,600 --> 00:07:54,797
you can charge more than the cost of the
goods. Okay, that is a business. Every

144
00:07:54,880 --> 00:07:59,117
business in the end of the day comes
down to that. Why can you charge more

145
00:07:59,200 --> 00:08:03,117
than it cost you produce it? Because you
have some unique way of doing something,

146
00:08:03,200 --> 00:08:04,877
whether that's how you build it, how you

147
00:08:04,960 --> 00:08:06,877
produce it, how you distribute it, and

148
00:08:06,960 --> 00:08:10,557
how you market it. Okay? And preferably,

149
00:08:10,640 --> 00:08:12,637
it's unique along the whole stack.

150
00:08:12,720 --> 00:08:16,637
>> And the more unique it is along
the stack, the better your financials at

151
00:08:16,720 --> 00:08:20,717
some point in the future will be.
I mean, there's always a lapse of time,

152
00:08:20,800 --> 00:08:23,037
but I basically

153
00:08:23,120 --> 00:08:28,397
I do I think the free market will get
you to pricing parody over a 18-month

154
00:08:28,480 --> 00:08:29,117
period,

155
00:08:29,200 --> 00:08:33,837
>> right? Or so uh and okay. So in every

156
00:08:33,920 --> 00:08:36,717
one of those things, the way you produce

157
00:08:36,800 --> 00:08:40,237
it, so supply chain, how you how you how

158
00:08:40,320 --> 00:08:43,837
you how you integrate it, what the final
product is, what the aesthetics of the

159
00:08:43,920 --> 00:08:46,877
product and how you
explain it to the market.

160
00:08:46,960 --> 00:08:49,357
You need to advance your unique

161
00:08:49,440 --> 00:08:51,917
capability, learn from the world, and

162
00:08:52,000 --> 00:08:55,197
never ever expose to anyone else how

163
00:08:55,280 --> 00:08:58,077
you're doing it exactly. And the minute

164
00:08:58,160 --> 00:09:02,957
you ex someone else can do any part
of those things as well as you can your

165
00:09:03,040 --> 00:09:06,637
pricing parody goes down and at some
point your value goes down. I mean these

166
00:09:06,720 --> 00:09:09,837
are like a lot of times is okay. So

167
00:09:09,920 --> 00:09:14,077
normal software is built to to force you

168
00:09:14,160 --> 00:09:19,117
to adopt something that's parasitic.
So you they take every one of those things

169
00:09:19,200 --> 00:09:22,877
turn it into a commodity and sell it
to everyone else. That's how you We

170
00:09:22,960 --> 00:09:26,077
couldn't get financing because I kept
telling these VCs, "Yeah, but we're

171
00:09:26,160 --> 00:09:28,637
going to make we're going to make
our partners and clients happy." They're

172
00:09:28,720 --> 00:09:32,557
like, "Why would I?"
>> Wait, what? Happy clients?

173
00:09:32,640 --> 00:09:36,877
>> No. Wait. When you want to start
a a company and you talk to VCs, what they

174
00:09:36,960 --> 00:09:40,637
wanted to hear was clients will be
unhappy, but they can't get rid of you.

175
00:09:40,720 --> 00:09:43,597
Like they want to hear bad
marriage, >> aka sticky, right?

176
00:09:43,680 --> 00:09:46,877
>> Yeah. No, it has to be sticky
is a metaphor for parasetic.

177
00:09:46,960 --> 00:09:50,237
>> Correct. >> I get your data.
I get it into something

178
00:09:50,320 --> 00:09:54,477
you can't get rid of. The thing turns
into something I can sell to everybody

179
00:09:54,560 --> 00:09:56,077
else who then can't get rid of it. And

180
00:09:56,160 --> 00:09:59,197
de facto, your multiple goes down and my

181
00:09:59,280 --> 00:10:03,517
multiple goes up and all of us are
happy and hope at some point you realize

182
00:10:03,600 --> 00:10:05,437
you're sad. Hopefully after it's too

183
00:10:05,520 --> 00:10:10,797
sticky and okay, so that's how you get
we couldn't get finance because I kept

184
00:10:10,880 --> 00:10:13,517
telling people no, we're going to make
we're going to make spec special

185
00:10:13,600 --> 00:10:16,957
operators more lethal and we're going
to bring them home and they're like but

186
00:10:17,040 --> 00:10:19,197
where's the parasite? I'm like, "No,

187
00:10:19,280 --> 00:10:21,277
we're not doing the parasitic thing."

188
00:10:21,360 --> 00:10:25,917
And uh and then if you look at the stack
of what we're doing, Foundry will bring

189
00:10:26,000 --> 00:10:29,677
all your data together and protect it
granularly. So you can share the data

190
00:10:29,760 --> 00:10:33,037
and not share what you don't.
>> Well, you get to decide what you share

191
00:10:33,120 --> 00:10:34,957
and what you don't share with Foundry.

192
00:10:35,040 --> 00:10:38,957
>> Yeah. And then the the the application
layer on top of it will allow you to do

193
00:10:39,040 --> 00:10:42,317
the same thing with openweight models
or closed weight models. I mean, close

194
00:10:42,400 --> 00:10:45,597
weight models, you need to get them
to post train, but either way, you are not

195
00:10:45,680 --> 00:10:47,117
going to be seeping your alpha to

196
00:10:47,200 --> 00:10:50,557
everyone else. And so, at every stack,

197
00:10:50,640 --> 00:10:53,197
every part of the stack, you augment

198
00:10:53,280 --> 00:10:58,477
what's particular about your business
without losing that particularity by

199
00:10:58,560 --> 00:11:00,077
giving it to somebody else who's

200
00:11:00,160 --> 00:11:03,997
anti-polled with that. And that that for

201
00:11:04,080 --> 00:11:07,437
those of you who are
like VCs and others who

202
00:11:07,520 --> 00:11:10,237
>> bismerch us, whatever. Any case, I get

203
00:11:10,320 --> 00:11:15,197
along with them now that I'm standing
on their head. But um it's uh who are

204
00:11:15,280 --> 00:11:16,717
basically they just want to finance.

205
00:11:16,800 --> 00:11:19,117
They've pass someone comes to pound you
for two days, they'll give you like $10

206
00:11:19,200 --> 00:11:20,797
million, start a business like planning

207
00:11:20,880 --> 00:11:23,837
plots. But um uh but any case, the the

208
00:11:23,920 --> 00:11:28,237
the radical thing here
is the obvious nature of this,

209
00:11:28,320 --> 00:11:31,517
>> right? >> And and by the way,
just to why did we

210
00:11:31,600 --> 00:11:35,917
do this? We did it because we knew we
could not win on popularity. So that

211
00:11:36,000 --> 00:11:39,677
>> if you can't win on popularity,
you better win on alignment.

212
00:11:39,760 --> 00:11:43,677
>> And and what I was literally just going
to take exactly what you're saying to

213
00:11:43,760 --> 00:11:47,917
the next level. One of the things I
love so much about the elegance. Can

214
00:11:48,000 --> 00:11:50,877
>> you come over to my family?
I I'm not used to this love.

215
00:11:50,960 --> 00:11:53,677
>> I'm sorry. >> I'm not used
to When did I get all this love?

216
00:11:53,760 --> 00:11:55,517
>> I can I can give you later. I promise.

217
00:11:55,600 --> 00:11:57,757
>> Yeah, please.
Please do. I'm not I won't

218
00:11:57,840 --> 00:11:58,957
believe you if it's positive.

219
00:11:59,040 --> 00:12:02,637
>> Exactly. the this

220
00:12:02,720 --> 00:12:06,077
really sits inside of your entire

221
00:12:06,160 --> 00:12:10,237
concept of forward deployed engineers
from the way I see it like we have your

222
00:12:10,320 --> 00:12:14,237
FTEES in our office every day working
with our FTEs. Well, there's this

223
00:12:14,320 --> 00:12:17,837
concept. I mean, another reason we
couldn't get financed and every single

224
00:12:17,920 --> 00:12:19,597
person made fun of us is we were like,

225
00:12:19,680 --> 00:12:23,037
okay, to extend the unique nature of the

226
00:12:23,120 --> 00:12:27,117
enterprise into our product and into
the enterprise itself. We have to send in

227
00:12:27,200 --> 00:12:31,437
people who are highly technical
and understand our product and then

228
00:12:31,520 --> 00:12:33,197
understand your enterprise so that we

229
00:12:33,280 --> 00:12:35,677
can augment our product specifically for

230
00:12:35,760 --> 00:12:39,037
you. But that's so different for a

231
00:12:39,120 --> 00:12:41,197
software company. Like we pivoted a huge

232
00:12:41,280 --> 00:12:46,077
part of our business to follow you
guys on this because it's so freaking

233
00:12:46,160 --> 00:12:46,797
efficient.

234
00:12:46,880 --> 00:12:50,397
>> Yeah. It it Well,
it also gets you again

235
00:12:50,480 --> 00:12:54,397
it allows you to basically bespoke build

236
00:12:54,480 --> 00:12:57,757
what we have to exactly who you are. And

237
00:12:57,840 --> 00:13:01,757
and then over time we're training your
people. Like we're not a body shop. So

238
00:13:01,840 --> 00:13:06,317
we want to train your people to be
your own FDS. And we do that. But we have

239
00:13:06,400 --> 00:13:08,557
4,500 people. We're not going to have

240
00:13:08,640 --> 00:13:11,037
50,000 people. So, we we need this is

241
00:13:11,120 --> 00:13:14,157
where we need we need partners because

242
00:13:14,240 --> 00:13:18,477
we have to work through you because we
have we're an artist shop. We we manage

243
00:13:18,560 --> 00:13:21,597
a certain kind of person very well.
I that's what I do for a living.

244
00:13:21,680 --> 00:13:23,437
>> It's not just a certain kind of person.

245
00:13:23,520 --> 00:13:25,837
You manage an extraordinary group of

246
00:13:25,920 --> 00:13:28,077
people. I I mean, the more time I have

247
00:13:28,160 --> 00:13:31,037
spent with people like Elias and and and

248
00:13:31,120 --> 00:13:35,997
all of the other people on your team,
the more impressive it is the people who

249
00:13:36,080 --> 00:13:36,717
are there.

250
00:13:36,800 --> 00:13:41,437
>> Yeah. We we had
long dark period by most

251
00:13:41,520 --> 00:13:45,837
standards 17 years uh and uh and in the

252
00:13:45,920 --> 00:13:47,917
desert of everyone making fun of us

253
00:13:48,000 --> 00:13:51,597
every day. Um and and especially people

254
00:13:51,680 --> 00:13:55,597
who are the most knowledgeable. But um

255
00:13:55,680 --> 00:13:59,677
the one thing everyone would always say
is yes, but they have the best people.

256
00:13:59,760 --> 00:14:03,357
And it's still true. In fact,
it's even more true now. We've had our our

257
00:14:03,440 --> 00:14:05,997
recruiting for whatever reason.
We were just getting

258
00:14:06,080 --> 00:14:08,877
>> Well, I I think your
success is probably helping.

259
00:14:08,960 --> 00:14:11,437
>> Um, you know, it this obviously success

260
00:14:11,520 --> 00:14:15,037
always helps, but it's you we had it's

261
00:14:15,120 --> 00:14:19,757
interesting. It's it really is that it's
more and more clear to engineers why you

262
00:14:19,840 --> 00:14:21,597
would want to power a sovereign stack,

263
00:14:21,680 --> 00:14:26,877
why that's good for clients, why it's
good for society, why it's what is it's

264
00:14:26,960 --> 00:14:30,317
the thing that will transform America
and hopefully the rest of the world. And

265
00:14:30,400 --> 00:14:33,517
so at like every part of our stack, it

266
00:14:33,600 --> 00:14:35,677
has become much more charismatic. And so

267
00:14:35,760 --> 00:14:37,917
we've had we've had I mean we've always

268
00:14:38,000 --> 00:14:42,957
been working at the way way and high
end of talent, but even for like we have

269
00:14:43,040 --> 00:14:44,877
different we have different vintages.

270
00:14:44,960 --> 00:14:48,557
It's like your wine like we vintage like

271
00:14:48,640 --> 00:14:52,957
vintage 2008 is different
than vintage 2012. But

272
00:14:53,040 --> 00:14:55,677
>> eight is much better in burgundy
but not as good in California.

273
00:14:55,760 --> 00:14:58,317
>> Yeah. No. And it's very similar
interestingly because for we have

274
00:14:58,400 --> 00:15:01,837
different roles and like but right now

275
00:15:01,920 --> 00:15:05,197
we are crushing it on and by the way

276
00:15:05,280 --> 00:15:07,277
anyone here has a precocious person they

277
00:15:07,360 --> 00:15:10,557
you want to like recruiting we manage

278
00:15:10,640 --> 00:15:16,317
uniquely shaped I'm dyslexic which I
I next you're you're stealing my next

279
00:15:16,400 --> 00:15:21,037
topic. >> So well any case >> because
I am too. Well, I I was it's the

280
00:15:21,120 --> 00:15:22,317
only thing I was ever in the closet

281
00:15:22,400 --> 00:15:24,797
about and I was super and then any case

282
00:15:24,880 --> 00:15:28,957
but we manage highly uneven

283
00:15:29,040 --> 00:15:31,597
essentially brilliant people and then we

284
00:15:31,680 --> 00:15:34,237
slot them and grow them and Palanteer is

285
00:15:34,320 --> 00:15:36,397
not everyone's cup of tea but for some

286
00:15:36,480 --> 00:15:39,757
people and ex-punterians who are missing

287
00:15:39,840 --> 00:15:42,797
the Palunteer vibe uh they'll tell you.

288
00:15:42,880 --> 00:15:47,677
In fact, the best references for us are
tend to be people who stormed out the

289
00:15:47,760 --> 00:15:52,397
door. They're like, "Another crazy
lecture from Karp stormed out the door

290
00:15:52,480 --> 00:15:55,677
and now they're unhappy with the
shagging of their current business and

291
00:15:55,760 --> 00:15:58,557
they want to come back, but it's hard
to come. I mean, it's emotionally hard to

292
00:15:58,640 --> 00:16:00,717
go back, but they're our best reference.

293
00:16:00,800 --> 00:16:03,357
We're we're not for everybody, but for a

294
00:16:03,440 --> 00:16:05,357
certain kind of person, we are the only

295
00:16:05,440 --> 00:16:09,037
place." And we I spend a lot of time

296
00:16:09,120 --> 00:16:12,477
actually my favorite times besides
of course hanging out with you. Oh, there

297
00:16:12,560 --> 00:16:16,317
we go. >> Hanging out on the factory
floor with they all you know these

298
00:16:16,400 --> 00:16:19,837
>> By the way, you live that like your
office is in the middle of the factory

299
00:16:19,920 --> 00:16:22,797
floor. >> Yeah. No,
I I but I It's what I enjoy.

300
00:16:22,880 --> 00:16:24,717
It's like, you know, it's funny. One of

301
00:16:24,800 --> 00:16:27,597
the great luxuries I have is I mostly

302
00:16:27,680 --> 00:16:30,317
get to do not always, but I really do

303
00:16:30,400 --> 00:16:35,997
get to do mostly what I enjoy. And what
the thing I like most about my thing is

304
00:16:36,080 --> 00:16:37,117
just hanging out with my fellow

305
00:16:37,200 --> 00:16:40,317
palunteerians and working on things and

306
00:16:40,400 --> 00:16:43,277
fixing things and being frustrated and

307
00:16:43,360 --> 00:16:48,237
you know and then and they say the cra
you know I just I really enjoy it.

308
00:16:48,320 --> 00:16:51,997
>> I always look back on our first
conversation. So we're both very

309
00:16:52,080 --> 00:16:56,637
dyslexic. We both from come
from similar backgrounds.

310
00:16:56,720 --> 00:17:00,877
We both, I think, have a big chip on our
shoulder from not getting financing and

311
00:17:00,960 --> 00:17:04,717
not being seen. At least for me, it
was as a kid, not being seen. And then we

312
00:17:04,800 --> 00:17:07,917
couldn't raise money for our business
either. Everybody thought we were nuts

313
00:17:08,000 --> 00:17:13,117
>> until a few big part platforms
like, you know, Bob House.

314
00:17:13,200 --> 00:17:17,037
>> And actually, you're a funny guy.
I think in private comedy gets me.

315
00:17:17,120 --> 00:17:19,837
>> It's I think I'm not
the least unfunny guy either.

316
00:17:19,920 --> 00:17:24,477
>> I think you're very funny. >> So,
it it goes like in private. You're

317
00:17:24,560 --> 00:17:27,277
funny here too, but you guys have no
idea what we're dealing with here. This

318
00:17:27,360 --> 00:17:31,357
[laughter] is like in private is a
different level. And you're laughing

319
00:17:31,440 --> 00:17:36,637
proformer some of these jokes and I am
too, but in private you really laugh.

320
00:17:36,720 --> 00:17:40,957
By the way, put put that on my tombstone.
He said I'm funnier in

321
00:17:41,040 --> 00:17:44,477
public. In private. No,
but in all seriousness, we had our first

322
00:17:44,560 --> 00:17:48,317
conversation. We were supposed to be
together 10 minutes. 40 minutes later,

323
00:17:48,400 --> 00:17:51,997
they're pulling us out of the room.
We start with philosophy. We move on to

324
00:17:52,080 --> 00:17:56,557
wine and watches. And then you looked at
me and said, "So why are we doing this?"

325
00:17:56,640 --> 00:18:00,877
And I said, "Alex, because you've spent
20 years solving the world's biggest

326
00:18:00,960 --> 00:18:04,957
problems, and we can help our clients to
solve one of their biggest problems that

327
00:18:05,040 --> 00:18:07,597
you don't have a current solution set
for." And you just looked up, you're

328
00:18:07,680 --> 00:18:09,357
like, "Oh, great. Let's do it."

329
00:18:09,440 --> 00:18:13,117
>> It's true. Yeah. >> Is that how
you make all decisions? Like

330
00:18:13,200 --> 00:18:14,557
I mean,

331
00:18:14,640 --> 00:18:19,197
>> um, well, I would
say if I I I asked I I

332
00:18:19,280 --> 00:18:23,117
sometimes ask people like because I
it's very hard to know. It's very hard to

333
00:18:23,200 --> 00:18:27,997
perceive yourself. So I ask people I
work with like, well, what is it like

334
00:18:28,080 --> 00:18:31,277
the people, you know, I've worked
with them a long time and we're we have

335
00:18:31,360 --> 00:18:33,597
pretty we have a very honest relationship.
So it's not like they're

336
00:18:33,680 --> 00:18:36,397
telling me things I want to hear.
In fact, I often tell them, could you tell

337
00:18:36,480 --> 00:18:38,877
me something I want to hear,
>> please? [laughter]

338
00:18:38,960 --> 00:18:40,077
>> By the way, it sounds like my

339
00:18:40,160 --> 00:18:41,837
conversations with my kids,

340
00:18:41,920 --> 00:18:46,317
>> like please something. Uh but um uh um

341
00:18:46,400 --> 00:18:48,797
and I I a very precocious person and

342
00:18:48,880 --> 00:18:51,117
he's like look we prepare for hours and

343
00:18:51,200 --> 00:18:54,477
then you kind of have a bias pretty

344
00:18:54,560 --> 00:18:55,997
quickly

345
00:18:56,080 --> 00:19:00,877
minutes and I would say I have a kind of

346
00:19:00,960 --> 00:19:04,317
I probably think they have this for my mom
but maybe in a different way from my

347
00:19:04,400 --> 00:19:06,797
dad. I have an aesthetic idea of what

348
00:19:06,880 --> 00:19:10,957
could work and what won't work and and

349
00:19:11,040 --> 00:19:13,597
then I just that's what I do all day.

350
00:19:13,680 --> 00:19:16,957
It's like, okay, well, this could work,
that couldn't. This everyone does this,

351
00:19:17,040 --> 00:19:21,197
it won't work. No one does this,
it could. And then about once a month, I

352
00:19:21,280 --> 00:19:23,837
have some idea that I think
is important. And then I know it's

353
00:19:23,920 --> 00:19:26,397
important when everyone tells
me we could never do that.

354
00:19:26,480 --> 00:19:26,877
>> By the way,

355
00:19:26,960 --> 00:19:28,877
>> like DPO

356
00:19:28,960 --> 00:19:34,317
like DPO or or sovereign or AIP or a lot

357
00:19:34,400 --> 00:19:36,717
of other things. Foundry. Foundry

358
00:19:36,800 --> 00:19:39,757
famously Ted, who's a wonderful person

359
00:19:39,840 --> 00:19:43,997
who runs US Commercial, famously
said, "Please stop talking to your

360
00:19:44,080 --> 00:19:46,957
Palunteerians about how big Foundry
is going to be. It's depressing and

361
00:19:47,040 --> 00:19:48,757
everybody knows you're out of touch."

362
00:19:48,840 --> 00:19:51,357
[laughter] >> Well, I would tell you not.

363
00:19:51,440 --> 00:19:55,277
>> And he was right. I had to stop talking
to people for like six months cuz But it

364
00:19:55,360 --> 00:19:59,677
worked. >> I know. I know. I I when when
I first sort of came up with the idea for

365
00:19:59,760 --> 00:20:02,157
Athena, normally I go into Steve

366
00:20:02,240 --> 00:20:06,797
Gerber's office, who's my partner, and he
looks at me and he says, "All right,

367
00:20:06,880 --> 00:20:10,397
David, that's great. Let's keep that ju
just between us. We're not going to go

368
00:20:10,480 --> 00:20:13,757
talk to other people about that because
you're going to freak everybody out."

369
00:20:13,840 --> 00:20:17,997
>> And I brought him Athena.
I had been I had decided to take

370
00:20:18,080 --> 00:20:21,517
>> my three older kids. We went over
to Africa for the weekend because I'm an

371
00:20:21,600 --> 00:20:25,197
idiot. And we did like a safari and I
was trying to squeeze everything in and

372
00:20:25,280 --> 00:20:29,437
nobody slept for days and I came
back and I go into a very manic state

373
00:20:29,520 --> 00:20:34,397
>> which I did a lot more when I was
younger than I do now that I'm old >> but

374
00:20:34,480 --> 00:20:37,837
>> and I sort of came out with Athena
and I went in and Steve was like you know

375
00:20:37,920 --> 00:20:39,437
that's actually a really good idea. It

376
00:20:39,520 --> 00:20:41,037
was the first one I'd gotten in many

377
00:20:41,120 --> 00:20:45,917
many years but let's once again I like

378
00:20:46,000 --> 00:20:48,957
you're so smart and you're so sort of

379
00:20:49,040 --> 00:20:52,157
open. I I want though to go a little

380
00:20:52,240 --> 00:20:55,437
myopic for just one second. If you're

381
00:20:55,520 --> 00:20:58,477
talking to the CEOs in this room, of

382
00:20:58,560 --> 00:21:03,357
which there are many, other than signing
up with Palunteer today, which is we

383
00:21:03,440 --> 00:21:05,357
believe the absolute best decision they

384
00:21:05,440 --> 00:21:08,637
could make today, what's the one thing

385
00:21:08,720 --> 00:21:11,917
that every CEO in this room, what's the

386
00:21:12,000 --> 00:21:13,597
one decision they should make today

387
00:21:13,680 --> 00:21:15,917
before they go home?

388
00:21:16,000 --> 00:21:19,597
Um, in your mind's eye, what is the

389
00:21:19,680 --> 00:21:21,757
thing in your business that makes it

390
00:21:21,840 --> 00:21:25,437
special that is not quite understood?

391
00:21:25,520 --> 00:21:27,437
And

392
00:21:27,520 --> 00:21:31,277
how do you get complete vision from the

393
00:21:31,360 --> 00:21:33,517
factory floor, prefactory floor

394
00:21:33,600 --> 00:21:35,997
distribution all the way up to cost of

395
00:21:36,080 --> 00:21:39,197
goods in front of you immediately. and

396
00:21:39,280 --> 00:21:43,357
and every [clears throat] single person
who's crucial at each one of those

397
00:21:43,440 --> 00:21:45,277
points

398
00:21:45,360 --> 00:21:49,117
it that like in total granularity where

399
00:21:49,200 --> 00:21:53,517
you impose this thing up and down
the stack and make every single shirt and

400
00:21:53,600 --> 00:21:56,477
there's a tech version that you would
need to do this but that's the business

401
00:21:56,560 --> 00:21:59,917
thing and then then how do you get AI to

402
00:22:00,000 --> 00:22:02,557
enhance that without

403
00:22:02,640 --> 00:22:05,437
it a model company or your competitor

404
00:22:05,520 --> 00:22:07,517
understanding exactly what that is and

405
00:22:07,600 --> 00:22:10,797
that's what I It's what I focus on. But

406
00:22:10,880 --> 00:22:13,197
but it the thing is the thing about the

407
00:22:13,280 --> 00:22:16,797
shortest version of AI is it just makes

408
00:22:16,880 --> 00:22:19,037
it it makes the real things 10 times

409
00:22:19,120 --> 00:22:23,837
more real. So you have to get
them right. There's no room for up

410
00:22:23,920 --> 00:22:27,917
the way there was. And this is
an advantage for America because

411
00:22:28,000 --> 00:22:32,637
corporate leaders in America are on
the front line and there's no chillaxing

412
00:22:32,720 --> 00:22:34,557
vibe like you know basically

413
00:22:34,640 --> 00:22:36,957
>> this is not a chillax week. No, this is

414
00:22:37,040 --> 00:22:40,077
so like um I I I had a of a very a

415
00:22:40,160 --> 00:22:43,037
really talented um somebody I admire a

416
00:22:43,120 --> 00:22:48,077
lot, a European CEO, and he he's like
he was saying, and I'm going to provide

417
00:22:48,160 --> 00:22:52,077
references for him, but he's like,
"Look, no one will hire me in America."

418
00:22:52,160 --> 00:22:53,517
The head hunter said, "There's no

419
00:22:53,600 --> 00:22:55,837
point." And that's a problem, but it it

420
00:22:55,920 --> 00:23:00,397
it really is because we are at because

421
00:23:00,480 --> 00:23:04,637
more like it's like a war envir like so
you you have to get that right. And if

422
00:23:04,720 --> 00:23:08,397
your person down the street gets it right,
even if they're inferior to you,

423
00:23:08,480 --> 00:23:10,637
just like the missile, they will they

424
00:23:10,720 --> 00:23:15,757
will they will outperform you on not
just on margin. It's not just it's not

425
00:23:15,840 --> 00:23:19,837
this like the classic of private equities.
You strip out the costs. This

426
00:23:19,920 --> 00:23:22,317
is enhanced product and strip out the

427
00:23:22,400 --> 00:23:27,837
costs and that's a rare thing. And also
the timeline is different. So but the

428
00:23:27,920 --> 00:23:30,317
way to begin >> everything's
speeding up, right? the

429
00:23:30,400 --> 00:23:33,997
yeah the nature of time is it's one
of the things I feel like I I feel very

430
00:23:34,080 --> 00:23:35,837
proud of the things I got right the one

431
00:23:35,920 --> 00:23:39,197
of the things I didn't understand is and

432
00:23:39,280 --> 00:23:41,197
I it's just time is excel like time

433
00:23:41,280 --> 00:23:44,797
isn't time in this country in business

434
00:23:44,880 --> 00:23:47,837
is like just it's like 5x what it was 5

435
00:23:47,920 --> 00:23:52,637
years ago you it's everything is and
and you can make these things the other

436
00:23:52,720 --> 00:23:54,237
thing I would say which is a derivative

437
00:23:54,320 --> 00:23:57,357
of it the tactics of this are shorten

438
00:23:57,440 --> 00:24:02,477
the timeline of execution Anything
that's taking too long, it's because

439
00:24:02,560 --> 00:24:06,717
there's something in the stack that's
parasitic. We say time is the enemy of

440
00:24:06,800 --> 00:24:10,957
everything at this point.
It just you have to move faster

441
00:24:11,040 --> 00:24:14,877
>> and and and pentest. It's a very
important way to pentest because there

442
00:24:14,960 --> 00:24:18,317
are complicated things that take
time obviously. So maybe there's some

443
00:24:18,400 --> 00:24:21,837
important regulatory thing. But if you

444
00:24:21,920 --> 00:24:24,237
if you just say if you make a list of on

445
00:24:24,320 --> 00:24:26,557
that stack of things, what is taking too

446
00:24:26,640 --> 00:24:29,757
long? you'll pretty much articulate

447
00:24:29,840 --> 00:24:34,157
wrong person, wrong part of the stack,
wrong technology with a high degree of

448
00:24:34,240 --> 00:24:35,997
re reliability. And why is this

449
00:24:36,080 --> 00:24:37,837
important? Because most people running

450
00:24:37,920 --> 00:24:41,677
companies are not tech people or don't

451
00:24:41,760 --> 00:24:44,077
inherently trust their tech intuition.

452
00:24:44,160 --> 00:24:48,637
So, but this will give you a way
to pentest your actual intuition, which is

453
00:24:48,720 --> 00:24:52,637
business intuition against a tech
problem because if you can't understand

454
00:24:52,720 --> 00:24:56,077
what the tech is doing and it's taking
too long, there's definitely something

455
00:24:56,160 --> 00:24:57,357
wrong.

456
00:24:57,440 --> 00:25:01,597
Ladies and gentlemen, Dr. Alex Karp.

457
00:25:01,680 --> 00:25:05,517
>> That was the keynote.
That was um [clears throat]

458
00:25:05,600 --> 00:25:07,677
part of their first hour. It didn't get

459
00:25:07,760 --> 00:25:12,877
live streamed, so it
got posted later, but um

460
00:25:12,960 --> 00:25:14,477
I don't know. I I think I'd have to

461
00:25:14,560 --> 00:25:15,917
watch it a few more times to understand

462
00:25:16,000 --> 00:25:20,077
where Zeta fits into that. But obviously

463
00:25:20,160 --> 00:25:26,160
still pretty exciting
for uh a Palunteer investor.