00:18:43 · Jordi Hays, John Coogan
[00:18:43] S0: They could all own basically nothing and be happy because they still have... Controversy. They want the golden vote. The golden vote. The golden... [00:18:52] S1: Interesting. I'm so I'm so interested to understand how this how this LLC votes because I mean even if it's just even if it's just seven equal founder votes, which is cool, like, you got seven co founders, everyone's on the same page. That's awesome. Also, it's just nice to have seven because you you'll never have a three three v three. But, like, what happens in succession planning? Like, what happens if someone has multiple kids? What if somebody gets divorced? What if somebody dies? Like there are these weird things that like the perfect structure probably doesn't hold up under. Like if if one of the Yeah. Co founders dies with no children and they're just like, I don't... Then it's just six to six and it's six people then you're back to three v three. Is that a problem? I don't know. Like there's just so many different dynamics of what of what could happen. [00:19:38] S0: We need to study the dynamics of ant colonies.
00:19:38 · Jordi Hays, John Coogan
[00:19:38] S0: We need to study the dynamics of ant colonies. [00:19:43] S1: Maybe. I don't know. Maybe that's maybe that's what it is. Or maybe it's maybe it's elephants. I don't know. Yeah. Our class f's common stock will not have any economic rights. Interesting. Class f common stock entitled to 50.1% of total voting power. I wonder how that's treated for tax purposes. Like, they say it doesn't have any economic rates, but, like, if it has if it has incredible power over something valuable, like, can it have a fair market valuation? Like, certainly, there are plenty of people that would pay a lot for that one share. Right? Like, you were to market to market and you just ran an auction, like, you know, like Google and Nvidia and Microsoft would all be like, well, yeah, I'll pay like a billion dollars for that share or 10,000,000,000 or a $100,000,000,000 for that share because I would get control over this amazing asset. So like it has value, but you just never market to market. [00:20:39] S0: I mean, could be written into the operating agreement that that none of... They they can't be transferred or sold or or... [00:20:46] S1: But you could do a forward contract against it. So like if you're one of those co founders, I think you got to do a forward contract or you could take out a loan against it. Right? Take out huge huge debt line just to load up on debt so you can buy a private island. I don't know. It's possible. It's possible. [00:21:04] S0: Think it's Let
00:21:04 · Jordi Hays, John Coogan
[00:21:04] S0: Think it's Let [00:21:04] S1: me tell you about CrowdStrike. Your business is AI. Their business is securing it. CrowdStrike secures AI and stops breaches. Yeah. You're not going get these type of these type of debates on less wrong. The most mind blowing stat semi analysis has seen about the Anthropic s one is as of 06/30/2026 quote, we had raised an aggregate of a $141,000,000,000 of capital and had cash and cash equivalents of a 112,400,000,000 and short term investments of 19.3. Means today they've burned 9,800,000,000. They're growing at rapid pace and are profitable on an operating income basis as of June quarter. This is likely the most efficient scaling of a business in the history of capitalism. Well, we have two folks from Semi Analysis coming on the show at noon, Doug O'Laughlin, Joey Brookhart. I'm very interested to understand because Doug is obsessed with the railroad build out and I feel like this might be an example. [00:22:01] S0: Well, I don't it's it's trains generally.
00:22:06 · John Coogan
[00:22:06] S1: But he he has made he has made comparisons to from the AI build out to the railroad build out. But I don't know that there was a a railroad company that was this capital efficient during the railroad build out. Like You might need another analogy of some sort. Don't know. Very interesting. Maybe this is more like Google in the tech in the first internet build out. So when is this going out? What do we know? What don't we know? We know the ticker dollar sign ant obviously reference to Santa Claus. Yes. But we don't know how much the raising is rumored to be a 100,000,000,000. We don't know the valuation. People are saying somewhere between 1.5 or 2,000,000,000,000. 2,000,000,000,000 feels like it's on the table now. When the market was selling off and there was like a lot of discussion over the revenue deceleration, there was a question about will they need to pull it back. Probably still could. It doesn't really matter at the end of the day. It's still huge up round based on the last evaluation, puts a bunch of money on the balance sheet. Whether it's 5% dilution, 7% dilution, not the biggest deal. The IPO should be happening the week of November 16. As a reminder, we will be at tomorrow x around that time and it should be an incredible time for us to be doing the show because we have an insane guest lineup with some of the biggest greatest capital allocators in tech and business. And so we will be able to get everyone's take live as this is progressing whether even if it's delayed another week, we're going to have a lot of great stuff to talk about as everyone gets ready to position, maybe go long, give their thesis, give their take, maybe they're already in Anthropic, maybe they bought IPO shares. Risk factors. Nick Carter sharing a satirical risk factor. What does he actually say? People are talking about time travel and stuff. What else is in there? The only one, I mean everyone sort of knew that the IPO risk factor was going have catastrophic risk, sort of like the AI doom, the doom scenario. It did make it into the s one. The market seems to have digested it and been like, yeah, we know. Yeah. You guys have been talking about this for a long time. We're still gonna underwrite it. Like there's not really anything you can change about your underwriting. You're not gonna put that in your DCF.
00:24:21 · John Coogan, Jordi Hays
You're just gonna say, okay, I hope that doesn't happen. What's interesting is like it's not even like a cost line item. Like, we've seen the the marketing dollars scaled significantly. So in 2023, they spent just $2,000,000. I'd love to know what they were spending $2,000,000 on in 2023 for ads. Was that like was that like Facebook ads or something? Like, what were they advertising? Don't remember there any [00:24:45] S0: Could have been [00:24:45] S1: quad ads in 2023. Yeah. Because they were sort of like they just But couldn't [00:24:50] S0: you couldn't you bundle like events? [00:24:52] S1: Maybe. Maybe. Okay. Yeah. Yeah. Maybe they did like a Dev Day or something. But then it started ballooning. So in 2025, they spent 568,000,000 and then first half twenty twenty six, they're spending $3,170,000,000 on marketing. Lots of money on marketing. I didn't see a line on safety. I didn't see like a blind item on like how much are they spending on AI safety, which is sort of interesting. I don't know if I just missed it. But if you're putting the catastrophic scenario in the risk factors, you would think that that would also flow to other parts of the income statement as a cost item because you would say, look, like one of the weird things about this business is that we invest a lot of compute, a lot of cost, a lot of headcount in AI safety. And so expect that to grow with revenue or expect that to grow with headcount or expect that to They're grow doing great. You mentioned, what, 6,000,000 per employee revenue scale or something like that?
00:24:52 · John Coogan, Jordi Hays
[00:24:52] S1: Maybe. Maybe. Okay. Yeah. Yeah. Maybe they did like a Dev Day or something. But then it started ballooning. So in 2025, they spent 568,000,000 and then first half twenty twenty six, they're spending $3,170,000,000 on marketing. Lots of money on marketing. I didn't see a line on safety. I didn't see like a blind item on like how much are they spending on AI safety, which is sort of interesting. I don't know if I just missed it. But if you're putting the catastrophic scenario in the risk factors, you would think that that would also flow to other parts of the income statement as a cost item because you would say, look, like one of the weird things about this business is that we invest a lot of compute, a lot of cost, a lot of headcount in AI safety. And so expect that to grow with revenue or expect that to grow with headcount or expect that to They're grow doing great. You mentioned, what, 6,000,000 per employee revenue scale or something like that? [00:25:47] S0: Yeah. Somewhere around there. Yeah. It's interesting how many billions of very, very anti ads as a business model but a lover of ads as a business. [00:25:58] S1: Oh, interesting. [00:25:59] S0: Yeah, yeah. Billions. Probably makes them the number one advertiser, Like one of the certainly the number one advertiser in AI. I would be surprised if, you know, Google could have topped that, maybe. Who knows? No,