01:01:40 · Will Manidis, Tyler, Jordi Hays
[01:01:40] S3: Yeah. I mean, I I jokingly say that New York is maybe more AGI pill today than San Francisco. And I think part of that is a willingness to accept on a big piece of the street right now that every equity is mispriced. If you think about kind of Leopold's progression through the markets, there was some sense in which like every six months we would determine something was mispriced, right? We were memory bros and we were storage bros and we were VRAM bros and you got the sense of this giant beast underlying the market could only eat one piece of it at a time and we would update our pricing on whatever and then we would sell it off rapidly to move on to the next thing. I think post SI blowup part one, there is some sense that we need to reprice all of this in a much more systemic way and we're seeing a lot more intelligence on the New York side of things taking the ASI pill and realizing that these things are going to have to move in big chunks. Right? And you're starting to see this happen with big sell offs and names like Reddit Mhmm. That are not just purely bottleneck trades. [01:02:42] S2: Yeah. Certainly, a lot of more [01:02:43] S3: New Yorkers pill today than it was six months ago. [01:02:47] S0: Talk about the push back so far in the piece. Think with some of the push back that I saw was this just feels dark so therefore it must be wrong.
01:02:47 · Jordi Hays, Will Manidis
[01:02:47] S0: Talk about the push back so far in the piece. Think with some of the push back that I saw was this just feels dark so therefore it must be wrong. [01:02:56] S3: Yeah. I mean one of my favorite pieces of push back we got five minutes after we published the essay. It's a 140 pages. We got an incredible six page push back generated by AI, which means criticism itself is, you know, contained within the cast net of the models. Yeah. Look, it's not a rosy picture, but it's a picture that I think is inevitable. Technology progress has never been a thing that has happened easily. Technology progress has never been a thing that has diffused into economies without some degree of upset and turmoil. I think any kind of positive AI futurism is just going to have to process that these things have drag on effects. We've certainly seen pushback on how dark pieces of the piece are. We do think this technology will be massively destabilizing for Southeast Asia in particular in a way that is not rosy. And we've also seen pushback on particularly where command economics will happen. I think our exuberance for things like hyper liquid are not universally shared. I do think hyper liquid is an important primitive for where we're going, but certainly pushed back across the board and really fun to engage in it.
01:02:56 · Will Manidis, John Coogan
[01:02:56] S3: Yeah. I mean one of my favorite pieces of push back we got five minutes after we published the essay. It's a 140 pages. We got an incredible six page push back generated by AI, which means criticism itself is, you know, contained within the cast net of the models. Yeah. Look, it's not a rosy picture, but it's a picture that I think is inevitable. Technology progress has never been a thing that has happened easily. Technology progress has never been a thing that has diffused into economies without some degree of upset and turmoil. I think any kind of positive AI futurism is just going to have to process that these things have drag on effects. We've certainly seen pushback on how dark pieces of the piece are. We do think this technology will be massively destabilizing for Southeast Asia in particular in a way that is not rosy. And we've also seen pushback on particularly where command economics will happen. I think our exuberance for things like hyper liquid are not universally shared. I do think hyper liquid is an important primitive for where we're going, but certainly pushed back across the board and really fun to engage in it. [01:04:05] S1: Yeah. How are you taking this thesis to some of those more adjacent, less like bottleneck trades, but still like real world economy businesses? I'm thinking about like trucking, home building, lumber, things that aren't in the path of the data center construction, but aren't really affected by AI in an obvious way in the short term. How do you think about those?
01:04:05 · John Coogan, Will Manidis, Jordi Hays
[01:04:05] S1: Yeah. How are you taking this thesis to some of those more adjacent, less like bottleneck trades, but still like real world economy businesses? I'm thinking about like trucking, home building, lumber, things that aren't in the path of the data center construction, but aren't really affected by AI in an obvious way in the short term. How do you think about those? [01:04:29] S3: Yeah. I mean, like, a really great example trade was Thrive buying ADT. Sure. Sure. Right? ADT probably has the greatest sensor network on Earth. Right? Cameras, more infrastructure [01:04:41] S1: Yep. [01:04:41] S3: On the edge being able to capture novel data than almost anyone Mhmm. Else has. And I think the reaction to that has been very telling Also between who realizes. Yeah. [01:04:49] S0: Also, think that the upsell opportunity for ADT, I I believe really strongly that like robots are are gonna have like home security applications before they have like laundry applications. Mhmm. It just feels like much easier to... For a robot to like make it more difficult to break and enter a home than it is for a robot to be like extremely effective at like cleaning... [01:05:12] S1: Yeah. Not breaking your wine glass. Right.
01:05:12 · John Coogan, Will Manidis, Tyler
[01:05:12] S1: Yeah. Not breaking your wine glass. Right. [01:05:15] S3: Like one... Mutual friend in the group chat this morning. I'm sure you saw it. He was in San Francisco asking people why they bought unitary robotics and this kid who had spent like $6,000,000 of his seat around buying unitary robots. Friend asked him what he has done with it and he said, don't really know. The robots can just kind of karate chop me. They can kick me, but they can't really do anything else. And, you know, Jeremy's riff on this. It's like, you know, singularity is here. Right? The robot can beat you up. Who knows what else it can do? So certainly, like, a karate chopping robot kicking people is probably the first use case. But like you have to be a d p... ADT pill even on the sensor modalities. Like, even if they're not able to get any lift out of the core business, that has to be the most valuable data set in the world. [01:06:00] S1: What's your view on interest rates in this neo dollar inflationary regime? [01:06:06] S3: Well, you can certainly track the great stagnation ending in treasury rates. Right? Like, you can literally look at the treasury yield curve and see kind of the twenty year stagnation that we lived through. [01:06:17] S1: Was it twenty or was it fifty? I feel like people go back to 1979 often or, like, [01:06:22] S2: forty years. I mean, I feel like the [01:06:23] S3: last time rates were at this level... I mean, yeah. Certainly, if if...
01:06:23 · Will Manidis, John Coogan
[01:06:23] S3: last time rates were at this level... I mean, yeah. Certainly, if if... [01:06:28] S1: Yeah. We did have high rates in the nineties. You're you're correct. High rates in the... But but at the same time, like, the stagnation thesis starts with, like, the moon landing in many tellings of it. Right? [01:06:36] S3: It's probably true. Probably not, you know, not adequately. We didn't have the Bloomberg terminal then, [01:06:39] S1: so it probably [01:06:40] S3: took twenty years to price in or something. Right now, Twitter. [01:06:44] S1: Sure. [01:06:45] S3: But certainly, like, if if the rate of technology progress continues at the rate that we think it will, then rates are gonna have to go much much higher. [01:06:52] S1: Yeah. And is that a crowding out effect, like just piling into AI investment that's driving up rates or something that's going on with the neo dollar specifically? [01:07:00] S3: I think partially neo dollar, partially I think a thing people have not totally processed is that when the risk free rate increases, the rate that risk demands does not increase linearly with the increase in the risk free rate. These things are actually exponentially related. So in a world where kind of yield increases two x, you may see a four to five x increase in risk rate on top of that. But certainly, just there's so much productive use for dollars at this point, where even the data center build out alone could saturate the monetary supply. Like, it's it's just... It's really important to be clear eyed about where all these dollars are going to go.