Prof G Markets
00:14:48 · Ed Elson, Steve Eisman, S6
[00:14:48] S5: That's all I want. [00:14:49] S3: Me too. I don't know how people are gonna react. I never know. I absolutely... Love when people... You know, some people they'll they'll always say, it's in the price. It's in the price. [00:15:01] S6: And I always want to say, how did you know? Like, who did you ask? [00:15:04] S3: Did you [00:15:04] S6: take a poll? Like like, what basis do you say that? But people say this [00:15:08] S3: all the time. [00:15:09] S6: And I and I [00:15:10] S3: always say, I don't know. [00:15:12] S5: Just as we start to wrap up here, any other things that you're looking at in AI world, things that you think are especially important that we should keep track of? [00:15:20] S3: Well, the other big thing to keep track of, obviously, is the price of CoreWeave's debt. You know, at 15%, I I think, although I can't prove it, I think it's prohibitive for them to raise debt at 15% and build AI data centers. But, you know, if it gets worse, then they're really out of business. You know, they... Their their business model is basically we raise debt. We build AI data centers. That's it. That's the entire business model. And if they can't raise debt, they can't build AI data centers. That's really the... Now maybe, you know, NVIDIA will come in and backstop the whole company. You know, it's certainly possible. But barring that, you know, I I would be watching the the debt markets.
00:15:20 · Steve Eisman, Ed Elson
[00:15:20] S3: Well, the other big thing to keep track of, obviously, is the price of CoreWeave's debt. You know, at 15%, I I think, although I can't prove it, I think it's prohibitive for them to raise debt at 15% and build AI data centers. But, you know, if it gets worse, then they're really out of business. You know, they... Their their business model is basically we raise debt. We build AI data centers. That's it. That's the entire business model. And if they can't raise debt, they can't build AI data centers. That's really the... Now maybe, you know, NVIDIA will come in and backstop the whole company. You know, it's certainly possible. But barring that, you know, I I would be watching the the debt markets. [00:16:04] S5: Steve Eisman is the legendary Big Short investor and host of The Real Eisman Playbook, which is a great podcast. I highly recommend it. Steve, always appreciate your time. [00:16:14] S3: Thank you. [00:16:18] S5: After the break, the state of play in the autonomous vehicle race. And for even more markets insights, you can subscribe to my weekly newsletter. Simply put, go to edwardelson.substack.com.
00:16:18 · Ed Elson, S6
[00:16:18] S5: After the break, the state of play in the autonomous vehicle race. And for even more markets insights, you can subscribe to my weekly newsletter. Simply put, go to edwardelson.substack.com. [00:16:34] S6: Are you tired of hearing about business, tech, and finance from the bros? We are the Tiger Sisters, a top business podcast with the Vox Media Podcast Network. Tiger Sisters releases every Monday, and we decode money, power, and love. And who doesn't love all those things? We are the Internet's Wall Street and Silicon Valley big sisters. Tune in every Monday for late night sister talk meets boardroom strategy. Check out Tiger Sisters on YouTube, Spotify, or wherever you get your podcasts. Welcome to the Tiger fam.
00:17:05 · S0
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00:18:15 · Ed Elson
[00:18:15] S5: We're back with Prof G Markets. Earlier this week, we discussed the future of Tesla and its foray into the lucrative autonomous robotaxi business. But while Tesla rolls out their robotaxis across the country, they face one major obstacle, and that is competition. Companies like Alphabet, Amazon, and Uber are also looking to capitalize on the future of transportation. So we would like to take a moment to attempt to answer the following question. Who is actually winning in autonomous vehicles, and what does the future of autonomous actually look like? Today, we're speaking with our very own research team associate, Dan Chiolan, who recently presented on this very topic on our Prof G plus Substack. It was a great presentation. I learned a lot, so that's why I wanted to get into it today. Dan, I see you every day, but thank you for joining me on the show. I just wanna start with a general question, which you started with in your presentation, which I thought was very helpful, which is how big of a problem are vehicle deaths today? In other words, make the case for us why autonomous is actually a good thing.
00:19:28 · Dan Chiolan, Ed Elson
[00:19:28] S4: It's sort of hard to conceptualize just how dangerous driving is because we, as Americans, do it so often. We spend on average about an hour a day behind the wheel. But every year, forty thousand Americans die in car crashes. Globally, that number is over a million. It's the leading killer of people ages five to 29. And I think why those numbers are relevant to autonomous vehicles is because ninety four percent of car crashes are due to human error. So really driving isn't dangerous because cars are dangerous or roads are dangerous. It's because humans are dangerous. So I think that's why autonomous vehicles are very... A very exciting technology because it can allow us as Americans, as people around the world to take something that we need to do every day and make it significantly safer. [00:20:14] S5: Looking at the players in this industry, obviously, Tesla is getting into robotaxis. The rollout has been... I don't even know what to say about it anymore. It's it's been, it's taken a while. Who are the actual players in this industry though, and how do they all stack up against each other?