WEBVTT 00:00:00.160 --> 00:00:02.077 Let's talk about Palunteer just for a minute. 00:00:02.160 --> 00:00:02.397 >> Yeah, 00:00:02.480 --> 00:00:05.437 >> you guys are obviously crushing it. 00:00:05.520 --> 00:00:09.117 >> What's really interesting to me is what 00:00:09.200 --> 00:00:12.477 are going to be the most highstakes 00:00:12.560 --> 00:00:15.597 questions that complex organizations are 00:00:15.680 --> 00:00:18.557 going to have to ask about where AI is 00:00:18.640 --> 00:00:22.717 really going to change the work that gets done. Alex. 00:00:22.800 --> 00:00:25.997 >> Well, um, 00:00:26.080 --> 00:00:28.717 the the there's like a there's the first 00:00:28.800 --> 00:00:31.357 wave of actually the first wave of AI 00:00:31.440 --> 00:00:36.397 really happened in the military, but then my version of it was partly is 00:00:36.480 --> 00:00:38.957 classified, but you see it in Ukraine and other places, 00:00:39.040 --> 00:00:41.677 >> but we're private here. You can talk about classified things. Yeah, no 00:00:41.760 --> 00:00:45.837 problem. But um but I think actually the real problem in disseminating the truth 00:00:45.920 --> 00:00:47.357 was 00:00:47.440 --> 00:00:50.557 you the truth in in America which is the 00:00:50.640 --> 00:00:55.677 defining place for AI which is also super interesting because normally you 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 00:00:59.360 --> 00:01:01.197 version a French version an American 00:01:01.280 --> 00:01:03.677 version but really you have America and 00:01:03.760 --> 00:01:07.117 China and and this is already completely 00:01:07.200 --> 00:01:10.797 unique um because yeah I mean if you 00:01:10.880 --> 00:01:11.997 think of other revol olution's 00:01:12.080 --> 00:01:15.037 philosophical industrial if you look at 00:01:15.120 --> 00:01:18.157 the history of Asia for example um um 00:01:18.240 --> 00:01:21.117 when Deng Shoping took over China he he 00:01:21.200 --> 00:01:24.157 immediately got industrial mines from 00:01:24.240 --> 00:01:26.877 America Chinese Americans um and then 00:01:26.960 --> 00:01:30.077 Japan's rise visav v China and but these 00:01:30.160 --> 00:01:34.557 things were pretty intertwined so Japan rose because it it took over Chinese 00:01:34.640 --> 00:01:38.317 culture and then it took over western culture of how to do industrial this is 00:01:38.400 --> 00:01:40.797 a revolution that is 00:01:40.880 --> 00:01:43.997 basically At least the original thinking 00:01:44.080 --> 00:01:46.477 and research is completely done here and 00:01:46.560 --> 00:01:48.877 then derivative advancement fast 00:01:48.960 --> 00:01:51.277 follower or China. So that's already 00:01:51.360 --> 00:01:53.997 super unique. Then it that leads to a 00:01:54.080 --> 00:01:56.717 lot of confusion because the first wave 00:01:56.800 --> 00:02:00.477 of AI which was you give us your data we 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 00:02:04.080 --> 00:02:07.677 moving to >> we're we're in the I think we're both in 00:02:07.760 --> 00:02:09.437 the first and second phase. So a lot of 00:02:09.520 --> 00:02:11.997 people are in a phase of you give me mo 00:02:12.080 --> 00:02:16.157 I take your model I run it I chillax on 00:02:16.240 --> 00:02:19.117 paying you a lot of money I get very I 00:02:19.200 --> 00:02:21.757 get I get value on very easy use cases 00:02:21.840 --> 00:02:24.797 it doesn't work on complex use cases and 00:02:24.880 --> 00:02:27.117 I may or may not be in danger of 00:02:27.200 --> 00:02:31.037 outsourcing my primitives my knowledge 00:02:31.120 --> 00:02:35.517 that the my alpha what makes my business special to a model company that will 00:02:35.600 --> 00:02:37.277 compete with me effectively and put me 00:02:37.360 --> 00:02:41.277 out of business Um, and then but it's 00:02:41.360 --> 00:02:45.357 this unique phase. So like if you just may take a neutral example, why is 00:02:45.440 --> 00:02:49.037 Europe not scared of AI? Why aren't they adopting it on the battlefield even 00:02:49.120 --> 00:02:52.797 though they have all this information of it's the thing that works? It's because 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 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 00:03:01.280 --> 00:03:03.357 question which is this is all backdrop 00:03:03.440 --> 00:03:07.037 for what are what is actually working 00:03:07.120 --> 00:03:08.637 and then the what what does it mean to 00:03:08.720 --> 00:03:12.157 work? The first big difference like it 00:03:12.240 --> 00:03:14.717 used to be that the delta between a good 00:03:14.800 --> 00:03:16.877 software implementation and one that was 00:03:16.960 --> 00:03:20.397 second rate was real but it wasn't 00:03:20.480 --> 00:03:24.797 determinative for your life. And so when we built Foundry, which is a data 00:03:24.880 --> 00:03:28.797 integration platform, which we're using with you, that would save you time and 00:03:28.880 --> 00:03:33.677 money and make you more efficient, it would make you A+ but B minus, which 00:03:33.760 --> 00:03:37.837 would take longer, was still in a range of if you were better at marketing and 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 00:03:42.400 --> 00:03:46.877 you're you're building a certain kind of missile, right? Okay. Yeah, maybe you 00:03:46.960 --> 00:03:51.117 could build them faster with foundry, but you have a moat because it's hard to 00:03:51.200 --> 00:03:54.797 build this missile. And also, say you're a French company or a German company, 00:03:54.880 --> 00:03:58.477 they're German government's going to buy your missile even if it's B minus 00:03:58.560 --> 00:04:00.717 because it flies and it's German, right? 00:04:00.800 --> 00:04:03.357 Okay. So and we do the same thing but um 00:04:03.440 --> 00:04:06.477 so it okay so what happened what's 00:04:06.560 --> 00:04:09.357 happening in the second phase of AI was 00:04:09.440 --> 00:04:14.237 yeah but your missile isn't going on target against the Russians or I if if 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 00:04:17.760 --> 00:04:19.837 application layer with a model and 00:04:19.920 --> 00:04:22.957 without that your interestingly your B 00:04:23.040 --> 00:04:25.597 minus missile is a triple plus with this 00:04:25.680 --> 00:04:28.157 and your A+ missile is useless 00:04:28.240 --> 00:04:31.997 >> so that's just binary and that this the 00:04:32.080 --> 00:04:34.317 profoundity of that minimal example is 00:04:34.400 --> 00:04:36.717 something that we don't have that you 00:04:36.800 --> 00:04:40.157 know in philosophical systems I I I was 00:04:40.240 --> 00:04:42.717 going to be an academic and I my form of 00:04:42.800 --> 00:04:47.837 >> law degree from Stanford you have your PhD in philosophy 00:04:47.920 --> 00:04:51.277 >> your family's got to be somewhat proud of your academic accomplishments 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 00:04:55.280 --> 00:04:57.997 have been something with that [laughter] 00:04:58.080 --> 00:05:00.717 literally it's like But uh I'm not 00:05:00.800 --> 00:05:03.837 joking. It sounds like 00:05:03.920 --> 00:05:06.317 um uh 00:05:06.400 --> 00:05:09.357 >> you you rarely have when these massive 00:05:09.440 --> 00:05:12.237 things happen it it from modernity to 00:05:12.320 --> 00:05:17.117 postmodernity to or or the or what is it let's just take an American example. 00:05:17.200 --> 00:05:22.157 What does it mean to internalize the first, second and fourth amendment? The 00:05:22.240 --> 00:05:26.637 it it the first amendment being our right of free expression which is 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 00:05:31.280 --> 00:05:34.397 different than Europe. But then first, second and fourth amendment, right of 00:05:34.480 --> 00:05:37.277 first expression, right to defend to first expression which is really what 00:05:37.360 --> 00:05:41.517 the second amendment is about and the right of privacy. 00:05:41.600 --> 00:05:43.917 It these are concepts that are so 00:05:44.000 --> 00:05:46.477 radical it takes generation. So here you 00:05:46.560 --> 00:05:48.717 have something that's very s like you've 00:05:48.800 --> 00:05:51.117 now have a thing a technology that will 00:05:51.200 --> 00:05:53.597 make a rocket to use a very simple 00:05:53.680 --> 00:05:56.877 example that was third rate first rate 00:05:56.960 --> 00:05:59.837 and deadly or you have something without 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 00:06:04.480 --> 00:06:08.717 every single enterprise commercial enterprise and and and and what is it 00:06:08.800 --> 00:06:13.517 that is special about AI. So just take an example you have unique ways of 00:06:13.600 --> 00:06:16.877 understanding how a market would react to a message. 00:06:16.960 --> 00:06:20.077 >> Yes. >> Okay. You are going to how do you share 00:06:20.160 --> 00:06:25.277 those insights with a with a partner where you only share the insights that 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 00:06:28.960 --> 00:06:33.197 where both the data the insights and the models you run against them are 00:06:33.280 --> 00:06:37.117 sovereign meaning unique to them or could be white labeled and sold to 00:06:37.200 --> 00:06:40.557 others. Well, and that's one of the things we love so much about Foundry. 00:06:40.640 --> 00:06:45.677 Our integration of our data cloud on Foundry gave us far more ability to do 00:06:45.760 --> 00:06:47.117 those things. And we're now able to 00:06:47.200 --> 00:06:50.157 onboard clients in hours that used to 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 00:06:54.800 --> 00:06:59.437 a little lower to the ground so most of us here can understand the vast majority 00:06:59.520 --> 00:07:01.517 of what you say. 00:07:01.600 --> 00:07:04.877 We talk about data sovereignty a lot. We 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 00:07:09.600 --> 00:07:12.877 really mean? >> It means that well, first of all, and 00:07:12.960 --> 00:07:15.997 this is an very advanced thing, and we're going to be able to augment this 00:07:16.080 --> 00:07:17.757 and then put models on it and then train 00:07:17.840 --> 00:07:21.277 the models so that the models reflect 00:07:21.360 --> 00:07:23.757 just what you know and do not expose it 00:07:23.840 --> 00:07:28.557 to the outside. So basically, okay, every business, what is a business? A 00:07:28.640 --> 00:07:30.317 business a business meaning something 00:07:30.400 --> 00:07:32.957 that at some point in the future will 00:07:33.040 --> 00:07:38.157 provide high quality revenue meaning free cash flow. Okay. And what is why is 00:07:38.240 --> 00:07:42.157 free cash flow what everyone thinks about analysts? Um why is this an 00:07:42.240 --> 00:07:45.837 important concept? Because it basically tells you you have something unique in 00:07:45.920 --> 00:07:49.517 your business that is valuable enough where you have pricing parity so that 00:07:49.600 --> 00:07:54.797 you can charge more than the cost of the goods. Okay, that is a business. Every 00:07:54.880 --> 00:07:59.117 business in the end of the day comes down to that. Why can you charge more 00:07:59.200 --> 00:08:03.117 than it cost you produce it? Because you have some unique way of doing something, 00:08:03.200 --> 00:08:04.877 whether that's how you build it, how you 00:08:04.960 --> 00:08:06.877 produce it, how you distribute it, and 00:08:06.960 --> 00:08:10.557 how you market it. Okay? And preferably, 00:08:10.640 --> 00:08:12.637 it's unique along the whole stack. 00:08:12.720 --> 00:08:16.637 >> And the more unique it is along the stack, the better your financials at 00:08:16.720 --> 00:08:20.717 some point in the future will be. I mean, there's always a lapse of time, 00:08:20.800 --> 00:08:23.037 but I basically 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 00:08:28.480 --> 00:08:29.117 period, 00:08:29.200 --> 00:08:33.837 >> right? Or so uh and okay. So in every 00:08:33.920 --> 00:08:36.717 one of those things, the way you produce 00:08:36.800 --> 00:08:40.237 it, so supply chain, how you how you how 00:08:40.320 --> 00:08:43.837 you how you integrate it, what the final product is, what the aesthetics of the 00:08:43.920 --> 00:08:46.877 product and how you explain it to the market. 00:08:46.960 --> 00:08:49.357 You need to advance your unique 00:08:49.440 --> 00:08:51.917 capability, learn from the world, and 00:08:52.000 --> 00:08:55.197 never ever expose to anyone else how 00:08:55.280 --> 00:08:58.077 you're doing it exactly. And the minute 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 00:09:03.040 --> 00:09:06.637 pricing parody goes down and at some point your value goes down. I mean these 00:09:06.720 --> 00:09:09.837 are like a lot of times is okay. So 00:09:09.920 --> 00:09:14.077 normal software is built to to force you 00:09:14.160 --> 00:09:19.117 to adopt something that's parasitic. So you they take every one of those things 00:09:19.200 --> 00:09:22.877 turn it into a commodity and sell it to everyone else. That's how you We 00:09:22.960 --> 00:09:26.077 couldn't get financing because I kept telling these VCs, "Yeah, but we're 00:09:26.160 --> 00:09:28.637 going to make we're going to make our partners and clients happy." They're 00:09:28.720 --> 00:09:32.557 like, "Why would I?" >> Wait, what? Happy clients? 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 00:09:36.960 --> 00:09:40.637 wanted to hear was clients will be unhappy, but they can't get rid of you. 00:09:40.720 --> 00:09:43.597 Like they want to hear bad marriage, >> aka sticky, right? 00:09:43.680 --> 00:09:46.877 >> Yeah. No, it has to be sticky is a metaphor for parasetic. 00:09:46.960 --> 00:09:50.237 >> Correct. >> I get your data. I get it into something 00:09:50.320 --> 00:09:54.477 you can't get rid of. The thing turns into something I can sell to everybody 00:09:54.560 --> 00:09:56.077 else who then can't get rid of it. And 00:09:56.160 --> 00:09:59.197 de facto, your multiple goes down and my 00:09:59.280 --> 00:10:03.517 multiple goes up and all of us are happy and hope at some point you realize 00:10:03.600 --> 00:10:05.437 you're sad. Hopefully after it's too 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 00:10:10.880 --> 00:10:13.517 telling people no, we're going to make we're going to make spec special 00:10:13.600 --> 00:10:16.957 operators more lethal and we're going to bring them home and they're like but 00:10:17.040 --> 00:10:19.197 where's the parasite? I'm like, "No, 00:10:19.280 --> 00:10:21.277 we're not doing the parasitic thing." 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 00:10:26.000 --> 00:10:29.677 all your data together and protect it granularly. So you can share the data 00:10:29.760 --> 00:10:33.037 and not share what you don't. >> Well, you get to decide what you share 00:10:33.120 --> 00:10:34.957 and what you don't share with Foundry. 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 00:10:39.040 --> 00:10:42.317 the same thing with openweight models or closed weight models. I mean, close 00:10:42.400 --> 00:10:45.597 weight models, you need to get them to post train, but either way, you are not 00:10:45.680 --> 00:10:47.117 going to be seeping your alpha to 00:10:47.200 --> 00:10:50.557 everyone else. And so, at every stack, 00:10:50.640 --> 00:10:53.197 every part of the stack, you augment 00:10:53.280 --> 00:10:58.477 what's particular about your business without losing that particularity by 00:10:58.560 --> 00:11:00.077 giving it to somebody else who's 00:11:00.160 --> 00:11:03.997 anti-polled with that. And that that for 00:11:04.080 --> 00:11:07.437 those of you who are like VCs and others who 00:11:07.520 --> 00:11:10.237 >> bismerch us, whatever. Any case, I get 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 00:11:15.280 --> 00:11:16.717 basically they just want to finance. 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 00:11:19.200 --> 00:11:20.797 million, start a business like planning 00:11:20.880 --> 00:11:23.837 plots. But um uh but any case, the the 00:11:23.920 --> 00:11:28.237 the radical thing here is the obvious nature of this, 00:11:28.320 --> 00:11:31.517 >> right? >> And and by the way, just to why did we 00:11:31.600 --> 00:11:35.917 do this? We did it because we knew we could not win on popularity. So that 00:11:36.000 --> 00:11:39.677 >> if you can't win on popularity, you better win on alignment. 00:11:39.760 --> 00:11:43.677 >> And and what I was literally just going to take exactly what you're saying to 00:11:43.760 --> 00:11:47.917 the next level. One of the things I love so much about the elegance. Can 00:11:48.000 --> 00:11:50.877 >> you come over to my family? I I'm not used to this love. 00:11:50.960 --> 00:11:53.677 >> I'm sorry. >> I'm not used to When did I get all this love? 00:11:53.760 --> 00:11:55.517 >> I can I can give you later. I promise. 00:11:55.600 --> 00:11:57.757 >> Yeah, please. Please do. I'm not I won't 00:11:57.840 --> 00:11:58.957 believe you if it's positive. 00:11:59.040 --> 00:12:02.637 >> Exactly. the this 00:12:02.720 --> 00:12:06.077 really sits inside of your entire 00:12:06.160 --> 00:12:10.237 concept of forward deployed engineers from the way I see it like we have your 00:12:10.320 --> 00:12:14.237 FTEES in our office every day working with our FTEs. Well, there's this 00:12:14.320 --> 00:12:17.837 concept. I mean, another reason we couldn't get financed and every single 00:12:17.920 --> 00:12:19.597 person made fun of us is we were like, 00:12:19.680 --> 00:12:23.037 okay, to extend the unique nature of the 00:12:23.120 --> 00:12:27.117 enterprise into our product and into the enterprise itself. We have to send in 00:12:27.200 --> 00:12:31.437 people who are highly technical and understand our product and then 00:12:31.520 --> 00:12:33.197 understand your enterprise so that we 00:12:33.280 --> 00:12:35.677 can augment our product specifically for 00:12:35.760 --> 00:12:39.037 you. But that's so different for a 00:12:39.120 --> 00:12:41.197 software company. Like we pivoted a huge 00:12:41.280 --> 00:12:46.077 part of our business to follow you guys on this because it's so freaking 00:12:46.160 --> 00:12:46.797 efficient. 00:12:46.880 --> 00:12:50.397 >> Yeah. It it Well, it also gets you again 00:12:50.480 --> 00:12:54.397 it allows you to basically bespoke build 00:12:54.480 --> 00:12:57.757 what we have to exactly who you are. And 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 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 00:13:06.400 --> 00:13:08.557 4,500 people. We're not going to have 00:13:08.640 --> 00:13:11.037 50,000 people. So, we we need this is 00:13:11.120 --> 00:13:14.157 where we need we need partners because 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 00:13:18.560 --> 00:13:21.597 a certain kind of person very well. I that's what I do for a living. 00:13:21.680 --> 00:13:23.437 >> It's not just a certain kind of person. 00:13:23.520 --> 00:13:25.837 You manage an extraordinary group of 00:13:25.920 --> 00:13:28.077 people. I I mean, the more time I have 00:13:28.160 --> 00:13:31.037 spent with people like Elias and and and 00:13:31.120 --> 00:13:35.997 all of the other people on your team, the more impressive it is the people who 00:13:36.080 --> 00:13:36.717 are there. 00:13:36.800 --> 00:13:41.437 >> Yeah. We we had long dark period by most 00:13:41.520 --> 00:13:45.837 standards 17 years uh and uh and in the 00:13:45.920 --> 00:13:47.917 desert of everyone making fun of us 00:13:48.000 --> 00:13:51.597 every day. Um and and especially people 00:13:51.680 --> 00:13:55.597 who are the most knowledgeable. But um 00:13:55.680 --> 00:13:59.677 the one thing everyone would always say is yes, but they have the best people. 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 00:14:03.440 --> 00:14:05.997 recruiting for whatever reason. We were just getting 00:14:06.080 --> 00:14:08.877 >> Well, I I think your success is probably helping. 00:14:08.960 --> 00:14:11.437 >> Um, you know, it this obviously success 00:14:11.520 --> 00:14:15.037 always helps, but it's you we had it's 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 00:14:19.840 --> 00:14:21.597 would want to power a sovereign stack, 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 00:14:26.960 --> 00:14:30.317 the thing that will transform America and hopefully the rest of the world. And 00:14:30.400 --> 00:14:33.517 so at like every part of our stack, it 00:14:33.600 --> 00:14:35.677 has become much more charismatic. And so 00:14:35.760 --> 00:14:37.917 we've had we've had I mean we've always 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 00:14:43.040 --> 00:14:44.877 different we have different vintages. 00:14:44.960 --> 00:14:48.557 It's like your wine like we vintage like 00:14:48.640 --> 00:14:52.957 vintage 2008 is different than vintage 2012. But 00:14:53.040 --> 00:14:55.677 >> eight is much better in burgundy but not as good in California. 00:14:55.760 --> 00:14:58.317 >> Yeah. No. And it's very similar interestingly because for we have 00:14:58.400 --> 00:15:01.837 different roles and like but right now 00:15:01.920 --> 00:15:05.197 we are crushing it on and by the way 00:15:05.280 --> 00:15:07.277 anyone here has a precocious person they 00:15:07.360 --> 00:15:10.557 you want to like recruiting we manage 00:15:10.640 --> 00:15:16.317 uniquely shaped I'm dyslexic which I I next you're you're stealing my next 00:15:16.400 --> 00:15:21.037 topic. >> So well any case >> because I am too. Well, I I was it's the 00:15:21.120 --> 00:15:22.317 only thing I was ever in the closet 00:15:22.400 --> 00:15:24.797 about and I was super and then any case 00:15:24.880 --> 00:15:28.957 but we manage highly uneven 00:15:29.040 --> 00:15:31.597 essentially brilliant people and then we 00:15:31.680 --> 00:15:34.237 slot them and grow them and Palanteer is 00:15:34.320 --> 00:15:36.397 not everyone's cup of tea but for some 00:15:36.480 --> 00:15:39.757 people and ex-punterians who are missing 00:15:39.840 --> 00:15:42.797 the Palunteer vibe uh they'll tell you. 00:15:42.880 --> 00:15:47.677 In fact, the best references for us are tend to be people who stormed out the 00:15:47.760 --> 00:15:52.397 door. They're like, "Another crazy lecture from Karp stormed out the door 00:15:52.480 --> 00:15:55.677 and now they're unhappy with the shagging of their current business and 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 00:15:58.640 --> 00:16:00.717 go back, but they're our best reference. 00:16:00.800 --> 00:16:03.357 We're we're not for everybody, but for a 00:16:03.440 --> 00:16:05.357 certain kind of person, we are the only 00:16:05.440 --> 00:16:09.037 place." And we I spend a lot of time 00:16:09.120 --> 00:16:12.477 actually my favorite times besides of course hanging out with you. Oh, there 00:16:12.560 --> 00:16:16.317 we go. >> Hanging out on the factory floor with they all you know these 00:16:16.400 --> 00:16:19.837 >> By the way, you live that like your office is in the middle of the factory 00:16:19.920 --> 00:16:22.797 floor. >> Yeah. No, I I but I It's what I enjoy. 00:16:22.880 --> 00:16:24.717 It's like, you know, it's funny. One of 00:16:24.800 --> 00:16:27.597 the great luxuries I have is I mostly 00:16:27.680 --> 00:16:30.317 get to do not always, but I really do 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 00:16:36.080 --> 00:16:37.117 just hanging out with my fellow 00:16:37.200 --> 00:16:40.317 palunteerians and working on things and 00:16:40.400 --> 00:16:43.277 fixing things and being frustrated and 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. 00:16:48.320 --> 00:16:51.997 >> I always look back on our first conversation. So we're both very 00:16:52.080 --> 00:16:56.637 dyslexic. We both from come from similar backgrounds. 00:16:56.720 --> 00:17:00.877 We both, I think, have a big chip on our shoulder from not getting financing and 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 00:17:04.800 --> 00:17:07.917 couldn't raise money for our business either. Everybody thought we were nuts 00:17:08.000 --> 00:17:13.117 >> until a few big part platforms like, you know, Bob House. 00:17:13.200 --> 00:17:17.037 >> And actually, you're a funny guy. I think in private comedy gets me. 00:17:17.120 --> 00:17:19.837 >> It's I think I'm not the least unfunny guy either. 00:17:19.920 --> 00:17:24.477 >> I think you're very funny. >> So, it it goes like in private. You're 00:17:24.560 --> 00:17:27.277 funny here too, but you guys have no idea what we're dealing with here. This 00:17:27.360 --> 00:17:31.357 [laughter] is like in private is a different level. And you're laughing 00:17:31.440 --> 00:17:36.637 proformer some of these jokes and I am too, but in private you really laugh. 00:17:36.720 --> 00:17:40.957 By the way, put put that on my tombstone. He said I'm funnier in 00:17:41.040 --> 00:17:44.477 public. In private. No, but in all seriousness, we had our first 00:17:44.560 --> 00:17:48.317 conversation. We were supposed to be together 10 minutes. 40 minutes later, 00:17:48.400 --> 00:17:51.997 they're pulling us out of the room. We start with philosophy. We move on to 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?" 00:17:56.640 --> 00:18:00.877 And I said, "Alex, because you've spent 20 years solving the world's biggest 00:18:00.960 --> 00:18:04.957 problems, and we can help our clients to solve one of their biggest problems that 00:18:05.040 --> 00:18:07.597 you don't have a current solution set for." And you just looked up, you're 00:18:07.680 --> 00:18:09.357 like, "Oh, great. Let's do it." 00:18:09.440 --> 00:18:13.117 >> It's true. Yeah. >> Is that how you make all decisions? Like 00:18:13.200 --> 00:18:14.557 I mean, 00:18:14.640 --> 00:18:19.197 >> um, well, I would say if I I I asked I I 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 00:18:23.200 --> 00:18:27.997 perceive yourself. So I ask people I work with like, well, what is it like 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 00:18:31.360 --> 00:18:33.597 pretty we have a very honest relationship. So it's not like they're 00:18:33.680 --> 00:18:36.397 telling me things I want to hear. In fact, I often tell them, could you tell 00:18:36.480 --> 00:18:38.877 me something I want to hear, >> please? [laughter] 00:18:38.960 --> 00:18:40.077 >> By the way, it sounds like my 00:18:40.160 --> 00:18:41.837 conversations with my kids, 00:18:41.920 --> 00:18:46.317 >> like please something. Uh but um uh um 00:18:46.400 --> 00:18:48.797 and I I a very precocious person and 00:18:48.880 --> 00:18:51.117 he's like look we prepare for hours and 00:18:51.200 --> 00:18:54.477 then you kind of have a bias pretty 00:18:54.560 --> 00:18:55.997 quickly 00:18:56.080 --> 00:19:00.877 minutes and I would say I have a kind of 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 00:19:04.400 --> 00:19:06.797 dad. I have an aesthetic idea of what 00:19:06.880 --> 00:19:10.957 could work and what won't work and and 00:19:11.040 --> 00:19:13.597 then I just that's what I do all day. 00:19:13.680 --> 00:19:16.957 It's like, okay, well, this could work, that couldn't. This everyone does this, 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 00:19:21.280 --> 00:19:23.837 have some idea that I think is important. And then I know it's 00:19:23.920 --> 00:19:26.397 important when everyone tells me we could never do that. 00:19:26.480 --> 00:19:26.877 >> By the way, 00:19:26.960 --> 00:19:28.877 >> like DPO 00:19:28.960 --> 00:19:34.317 like DPO or or sovereign or AIP or a lot 00:19:34.400 --> 00:19:36.717 of other things. Foundry. Foundry 00:19:36.800 --> 00:19:39.757 famously Ted, who's a wonderful person 00:19:39.840 --> 00:19:43.997 who runs US Commercial, famously said, "Please stop talking to your 00:19:44.080 --> 00:19:46.957 Palunteerians about how big Foundry is going to be. It's depressing and 00:19:47.040 --> 00:19:48.757 everybody knows you're out of touch." 00:19:48.840 --> 00:19:51.357 [laughter] >> Well, I would tell you not. 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 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 00:19:59.760 --> 00:20:02.157 Athena, normally I go into Steve 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, 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 00:20:10.480 --> 00:20:13.757 talk to other people about that because you're going to freak everybody out." 00:20:13.840 --> 00:20:17.997 >> And I brought him Athena. I had been I had decided to take 00:20:18.080 --> 00:20:21.517 >> my three older kids. We went over to Africa for the weekend because I'm an 00:20:21.600 --> 00:20:25.197 idiot. And we did like a safari and I was trying to squeeze everything in and 00:20:25.280 --> 00:20:29.437 nobody slept for days and I came back and I go into a very manic state 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 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 00:20:37.920 --> 00:20:39.437 that's actually a really good idea. It 00:20:39.520 --> 00:20:41.037 was the first one I'd gotten in many 00:20:41.120 --> 00:20:45.917 many years but let's once again I like 00:20:46.000 --> 00:20:48.957 you're so smart and you're so sort of 00:20:49.040 --> 00:20:52.157 open. I I want though to go a little 00:20:52.240 --> 00:20:55.437 myopic for just one second. If you're 00:20:55.520 --> 00:20:58.477 talking to the CEOs in this room, of 00:20:58.560 --> 00:21:03.357 which there are many, other than signing up with Palunteer today, which is we 00:21:03.440 --> 00:21:05.357 believe the absolute best decision they 00:21:05.440 --> 00:21:08.637 could make today, what's the one thing 00:21:08.720 --> 00:21:11.917 that every CEO in this room, what's the 00:21:12.000 --> 00:21:13.597 one decision they should make today 00:21:13.680 --> 00:21:15.917 before they go home? 00:21:16.000 --> 00:21:19.597 Um, in your mind's eye, what is the 00:21:19.680 --> 00:21:21.757 thing in your business that makes it 00:21:21.840 --> 00:21:25.437 special that is not quite understood? 00:21:25.520 --> 00:21:27.437 And 00:21:27.520 --> 00:21:31.277 how do you get complete vision from the 00:21:31.360 --> 00:21:33.517 factory floor, prefactory floor 00:21:33.600 --> 00:21:35.997 distribution all the way up to cost of 00:21:36.080 --> 00:21:39.197 goods in front of you immediately. and 00:21:39.280 --> 00:21:43.357 and every [clears throat] single person who's crucial at each one of those 00:21:43.440 --> 00:21:45.277 points 00:21:45.360 --> 00:21:49.117 it that like in total granularity where 00:21:49.200 --> 00:21:53.517 you impose this thing up and down the stack and make every single shirt and 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 00:21:56.560 --> 00:21:59.917 thing and then then how do you get AI to 00:22:00.000 --> 00:22:02.557 enhance that without 00:22:02.640 --> 00:22:05.437 it a model company or your competitor 00:22:05.520 --> 00:22:07.517 understanding exactly what that is and 00:22:07.600 --> 00:22:10.797 that's what I It's what I focus on. But 00:22:10.880 --> 00:22:13.197 but it the thing is the thing about the 00:22:13.280 --> 00:22:16.797 shortest version of AI is it just makes 00:22:16.880 --> 00:22:19.037 it it makes the real things 10 times 00:22:19.120 --> 00:22:23.837 more real. So you have to get them right. There's no room for up 00:22:23.920 --> 00:22:27.917 the way there was. And this is an advantage for America because 00:22:28.000 --> 00:22:32.637 corporate leaders in America are on the front line and there's no chillaxing 00:22:32.720 --> 00:22:34.557 vibe like you know basically 00:22:34.640 --> 00:22:36.957 >> this is not a chillax week. No, this is 00:22:37.040 --> 00:22:40.077 so like um I I I had a of a very a 00:22:40.160 --> 00:22:43.037 really talented um somebody I admire a 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 00:22:48.160 --> 00:22:52.077 references for him, but he's like, "Look, no one will hire me in America." 00:22:52.160 --> 00:22:53.517 The head hunter said, "There's no 00:22:53.600 --> 00:22:55.837 point." And that's a problem, but it it 00:22:55.920 --> 00:23:00.397 it really is because we are at because 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 00:23:04.720 --> 00:23:08.397 your person down the street gets it right, even if they're inferior to you, 00:23:08.480 --> 00:23:10.637 just like the missile, they will they 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 00:23:15.840 --> 00:23:19.837 this like the classic of private equities. You strip out the costs. This 00:23:19.920 --> 00:23:22.317 is enhanced product and strip out the 00:23:22.400 --> 00:23:27.837 costs and that's a rare thing. And also the timeline is different. So but the 00:23:27.920 --> 00:23:30.317 way to begin >> everything's speeding up, right? the 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 00:23:34.080 --> 00:23:35.837 proud of the things I got right the one 00:23:35.920 --> 00:23:39.197 of the things I didn't understand is and 00:23:39.280 --> 00:23:41.197 I it's just time is excel like time 00:23:41.280 --> 00:23:44.797 isn't time in this country in business 00:23:44.880 --> 00:23:47.837 is like just it's like 5x what it was 5 00:23:47.920 --> 00:23:52.637 years ago you it's everything is and and you can make these things the other 00:23:52.720 --> 00:23:54.237 thing I would say which is a derivative 00:23:54.320 --> 00:23:57.357 of it the tactics of this are shorten 00:23:57.440 --> 00:24:02.477 the timeline of execution Anything that's taking too long, it's because 00:24:02.560 --> 00:24:06.717 there's something in the stack that's parasitic. We say time is the enemy of 00:24:06.800 --> 00:24:10.957 everything at this point. It just you have to move faster 00:24:11.040 --> 00:24:14.877 >> and and and pentest. It's a very important way to pentest because there 00:24:14.960 --> 00:24:18.317 are complicated things that take time obviously. So maybe there's some 00:24:18.400 --> 00:24:21.837 important regulatory thing. But if you 00:24:21.920 --> 00:24:24.237 if you just say if you make a list of on 00:24:24.320 --> 00:24:26.557 that stack of things, what is taking too 00:24:26.640 --> 00:24:29.757 long? you'll pretty much articulate 00:24:29.840 --> 00:24:34.157 wrong person, wrong part of the stack, wrong technology with a high degree of 00:24:34.240 --> 00:24:35.997 re reliability. And why is this 00:24:36.080 --> 00:24:37.837 important? Because most people running 00:24:37.920 --> 00:24:41.677 companies are not tech people or don't 00:24:41.760 --> 00:24:44.077 inherently trust their tech intuition. 00:24:44.160 --> 00:24:48.637 So, but this will give you a way to pentest your actual intuition, which is 00:24:48.720 --> 00:24:52.637 business intuition against a tech problem because if you can't understand 00:24:52.720 --> 00:24:56.077 what the tech is doing and it's taking too long, there's definitely something 00:24:56.160 --> 00:24:57.357 wrong. 00:24:57.440 --> 00:25:01.597 Ladies and gentlemen, Dr. Alex Karp. 00:25:01.680 --> 00:25:05.517 >> That was the keynote. That was um [clears throat] 00:25:05.600 --> 00:25:07.677 part of their first hour. It didn't get 00:25:07.760 --> 00:25:12.877 live streamed, so it got posted later, but um 00:25:12.960 --> 00:25:14.477 I don't know. I I think I'd have to 00:25:14.560 --> 00:25:15.917 watch it a few more times to understand 00:25:16.000 --> 00:25:20.077 where Zeta fits into that. But obviously 00:25:20.160 --> 00:25:26.160 still pretty exciting for uh a Palunteer investor.