A Product Market Fit Show | Startup Podcast for Founders
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.
00:30:44 · Jack Kuveke
[00:30:44] S0: But basically, so I mean, the reality is just consumer debt has gotten so out of control that it doesn't even make sense, right? Like if you look back at like the 1940s, the only thing you could get a loan for was a house because your friend got blown up in Iwo Jima and the American government felt bad for you. So they're like, okay, here's $3,000. You can buy a home in Michigan. And the house literally was $3,000. If you wanted to buy something that was worth $50, you had to ask yourself, do I have $50? If the answer is you have $49, you just couldn't buy anything. But since then, like in the fifties and the seventies, we started introducing like car loans, credit cards. And then by like the eighties and nineties, it was just fully expected that everyone was in crippling debt. You have to take on crippling debt to go to college. You have to take on crippling debt to buy a car. You have to buy , take on crippling debt now to like travel to France. No one I know can afford to go to Europe, but everyone's been 15 times and then they're complaining like, I don't have any money. It's like, well, yeah, I just saw your photos of you in Fiji. You make $42,000 a year. Fiji's pretty expensive. How did you afford that? And then on top of that, you look at them and they're like wearing a Gucci tracksuit and like, they order from DoorDash every single day. And I'm like, you literally cannot afford to do that. Even people making $150,000 a year should not be ordering DoorDash every day . That just is a , financially a really bad idea. Unless you live in like Iowa where rent's like $400, but if you live in