A Product Market Fit Show | Startup Podcast for Founders
00:25:11 · Jack Kuveke
[00:25:11] S0: Well, like take a , take a look at both of the op open AI's uh, former founders like Ilya and um , Mira , right? So safe super intelligence with this ia, the old CTO of OpenAI's company just raised , uh, at a $34 billion valuation. And what, what , how much money are they making? Zero. They have what they lack in, in revenue product and business, business acumen, they make all up in just vision, which is to build an AI agent that passes super intelligence. But you know, I mean, it's basically just 20 guys in a room with unlimited amounts of money and no pressure to generate revenue. Um, but my favorite thing about it's , they just call their app safe. So like, all right , so we're gonna build an AI model that replaces human intelligence and smarter than any human. Everyone's like, oh, it's Terminator two , this is gonna kill all of us. And they're like, people are gonna think that. So let's just call it safe, super intelligent <laugh> . And that's really , and and, and now they're worth $34 billion, which, you know, again, all right , if it's becomes worth a trillion dollars, I get it. All right. I guess $34 billion pre-revenue maybe. But like so many people always, like my old business partner years ago when Tesla first hit a trillion dollar valuation, they were making less money than AirPods made just AirPods in the , in Apple. And I remember him being like, I'm buying more stock. And I'm like, can you run through this thought experiment with me right now that is this company worth a hundred x revenue right now? It's already worth a trillion dollars. Can it be worth 10 trillion? You do understand that that's like the entire GDP of all of Europe put together basically half of America of 50 to 50 to 40% of all of China for one company's market cap. I'm like, do you really think this is a 10 x play? And he was like, yes, <laugh> . That's what we're dealing with right now. People being like, I know $34 billion seems like a lot of money, but what if this company is worth $80 trillion one day? I'm like, okay , it's , yeah , it's tough. One , just , it's 34 billion with $0. If they make a hundred million dollars a year, then it is, I guess worth $90 trillion. Sure, it's as much as all of the new real estate in America.
00:27:29 · Pablo Srugo, Jack Kuveke
[00:27:29] S1: But think about how, and think about how much that has changed. And not that , like Instagram gets bought for a billion dollars , uh, in what, like 2012? So just over 10 years ago. And it [00:27:39] S0: Was a [00:27:39] S1: Huge deal. 'cause it was like, dude, like this app has no revenue. It's got 11 employees a year and a half old billion dollars Wild WhatsApp gets bought for 19 billion. That's like outta this world. People can't believe it now, you know, this doesn't happen. Like fundraisers at that level are happening like all the time. And you know, I don't know. I mean, on the one hand, yeah, there's a huge tailwind with ai. I think there's also recognition of people have never been valued as highly, you know what I mean? Like, it used to be you needed something more than just people to get that kind of valuation , crazy user growth, revenue, whatever. Now it was just like, dude, I was, I'm one of the founders of open ai. Like, oh, boom , here's, here's a ability . Like why not? Right? I don't [00:28:17] S0: Know . Yeah. And, and, and Mira , the other co-founder of, of OpenAI is raising a $2 billion seed round at a $10 billion valuation. She's not offering the rules of the engagement are that she has more Boer board votes than everyone combined on the board, plus one. So they're gonna give her $2 billion. And this is a quote from TechCrunch, her company thinking Machines lab only recently emerged from stealth and has no product or revenue to speak of . What it does have is dozens of high profile AI researchers in its regs .
00:28:17 · Jack Kuveke, Pablo Srugo
[00:28:17] S0: Know . Yeah. And, and, and Mira , the other co-founder of, of OpenAI is raising a $2 billion seed round at a $10 billion valuation. She's not offering the rules of the engagement are that she has more Boer board votes than everyone combined on the board, plus one. So they're gonna give her $2 billion. And this is a quote from TechCrunch, her company thinking Machines lab only recently emerged from stealth and has no product or revenue to speak of . What it does have is dozens of high profile AI researchers in its regs . [00:28:53] S1: This is what I'm saying, like the world, the world has changed, but it , but then the flip , here's the flip side. The flip side is you look at OpenAI itself, you look at the beginning of it, and it was equally insane. And yet those people are up 50, a hundred x. So now everybody's think, but it wasn't 10 billion posts. Maybe it was like a billion posts or whatever . Those early rounds were pretty nuts though. So again, like who am I? Who am I to say, you know , I'm not a 16 C, you know, I don't , I don't have spies. I don't know.
00:28:53 · Pablo Srugo, Jack Kuveke
[00:28:53] S1: This is what I'm saying, like the world, the world has changed, but it , but then the flip , here's the flip side. The flip side is you look at OpenAI itself, you look at the beginning of it, and it was equally insane. And yet those people are up 50, a hundred x. So now everybody's think, but it wasn't 10 billion posts. Maybe it was like a billion posts or whatever . Those early rounds were pretty nuts though. So again, like who am I? Who am I to say, you know , I'm not a 16 C, you know, I don't , I don't have spies. I don't know. [00:29:19] S0: Yeah, I, I don't know. I mean, this , if they, I just, it doesn't make any sense. I, they just, quite frankly, I just, I'm, I'm like more and more convinced that we're just gonna go into like a great depression. The dollar's gonna be slashed to a 10th of what it's worth. Like we're just deval like, money doesn't make any sense anymore. Everything in New York is worth , like, every apartment's a million dollars and you live in dog , a dog apartment with like 400 square feet. You know, AI companies that don't make any money are worth $40 billion. I mean, it's just, none of , none of this money thing really makes sense anymore. And I think I'm just gonna buy gold bars and move into the woods and buy a bunch of guns because it seems like this just gonna come crumbling down. This just smells like bad news.
00:29:19 · Jack Kuveke, Pablo Srugo
[00:29:19] S0: Yeah, I, I don't know. I mean, this , if they, I just, it doesn't make any sense. I, they just, quite frankly, I just, I'm, I'm like more and more convinced that we're just gonna go into like a great depression. The dollar's gonna be slashed to a 10th of what it's worth. Like we're just deval like, money doesn't make any sense anymore. Everything in New York is worth , like, every apartment's a million dollars and you live in dog , a dog apartment with like 400 square feet. You know, AI companies that don't make any money are worth $40 billion. I mean, it's just, none of , none of this money thing really makes sense anymore. And I think I'm just gonna buy gold bars and move into the woods and buy a bunch of guns because it seems like this just gonna come crumbling down. This just smells like bad news. [00:30:00] S1: Well, you know, to kind of make me a great segue for the next piece, which is timely, if things are about to fall apart, which is this Klarna DoorDash partnership, where now if you wanna buy a meal, 20, 30, $40 meal , uh, you don't need to have the money anymore. You don't need to have the money to buy anything. You don't need to have the money to take a , a ride somewhere or , uh, to pay for groceries because Klarna will let you , um, split it up into flexible monthly payments. [00:30:30] S0: Dude, this is the darkest timeline ever. It's, it , I, I wrote my , probably my favorite article about this that I've ever written. The detailing, like what happened with do what , what's going on with , walk
00:30:30 · Jack Kuveke, Pablo Srugo
[00:30:30] S0: Dude, this is the darkest timeline ever. It's, it , I, I wrote my , probably my favorite article about this that I've ever written. The detailing, like what happened with do what , what's going on with , walk [00:30:43] S1: Us through it , walk us through it.