The Pomp Podcast
00:30:07 · Jordi Visser
[00:30:07] S2: Yeah. And and so let's bring it back to Anthropic, because I think the most important news item that came through this is that Anthropic announced in their s one that they're dealing with basically 250 of the Fortune 500 companies, so 250 of the S and P 500. But in terms of their total expenses, which again are dominated by compensation, of the Anthropic portion is point less than 1%. I think people have to fully grasp that if this company has this kind of momentum, and they can give you insight into the adoption right now of AI, and also for everyone that thinks that they're gonna be able to go build data centers and do all the stuff, which I'm hearing more and more on other podcasts. I'm like, where are they getting the memory from to go build their own data center? I mean, guys, come on. Like, if the banks wanna go build their own data centers, that's all well and good, but if you can't get the memory, you can't do it. You can buy as many GPUs as you want, you can go through this, but if you can't get the memory, where is this gonna go? So I just think for, as you go through the Anthropic thing and you look at it, where people talk about a bubble, they're talking about a bubble for the reasons that you said, oh, look, the AI trade is 20% off its highs. Some of the names are 40% off their highs, whatever the case is, even though they're up a 150% year to date, that's... That doesn't matter. Spreads are widening. This is going on. Triple c's are up at 16%. None of this is going away. This is the one thing I will say is as much as I believe yields are probably peak now at the long end, do I think we're going down to 3% in ten year yields anytime soon? No. And the main reason is because the capital needs are going to be massive, and that means we're gonna have debt, and the government has a lot of debt. And so the issuance alone will keep it in. Do I think that Bessent knows this and wants to control the back end? And this is one of the reasons why if you were waiting for yield curve control, if you were waiting for QE, we're not getting QE the way that we used to in the past. It's coming in a different form, and that form to me is starting to happen because the labor versus capital debate means a lot of voters, because you know how many votes Microsoft gets?
00:32:19 · Jordi Visser
Let's assume Microsoft has a lobbyist, and they're going to Washington saying blah blah blah. Those 60,000 people have a vote, and if affordability remains this issue, as it is across the globe, I just think part of the story for a new system, part of the story for how we're gonna deal with this, and that's why I always say Bitcoin is the purest AI trade, I believe that AI is only gonna intensify the downside going forward. And if people are waiting for some bull market where it just goes up in a straight fashion every single month, I don't think you're gonna get that because of the things that we're talking about.
00:32:55 · Anthony Pompliano
[00:32:55] S3: Today's episode is brought to you by Abra. Bitcoin holders know the long game, but sometimes you want liquidity today or a way to pursue more Bitcoin over time. That's why Abra caught my attention. It offers two different ways to make your Bitcoin holdings work harder depending on what your goals are. If you need dollars without selling your Bitcoin, then you can explore Bitcoin backed loans with US dollars or USDC borrowing options. You can review the terms and compare rates at abra.com/pomp. Thinking longer term? Explore Abra's Bitcoin Yield Strategy, managed by SEC registered investment advisor, Abra Capital Management. It aims to generate yield denominated in Bitcoin, which can have a strong compounding effect over time. I recently spoke with Abra CEO Bill Barhydt on the show for a much deeper exploration on Abra, tokenization, and more. Go and check it out. And if either approach interests you, visit abra.com/pomp to learn more. ABRA is a paid sponsor. This is not investment advice. Loans and yield strategies carry risks, including liquidation and loss of principal. Returns aren't guaranteed. Go check them out at abro.com/pump. Today's episode is brought to you by Arch Public. Arch Public has just expanded its agentic trading platform beyond crypto, so pay attention. This is a big one. Now they are automating strategies across stocks, commodities, and ETFs, and I think that this is gonna be huge. You can now automatically take profits when one market hits new all time highs and rotate that capital into other markets showing more opportunity. Whether you're rotating capital into AI stocks, gold, if you're investing in the S and P five hundred, or you're accumulating Bitcoin, Arch public brings real discipline and automation to your investment strategy. Additionally, they've launched a powerful new tax loss harvesting tool. With crypto being so volatile and its exemption from the wash sale rule, Arch public can offset gains with losses without compromising your long term positions. It's exactly what every serious investor does. Institutional grade automation that works across every major asset class. There's no more emotional trading, no more missing tax opportunities, just smarter, hands free execution of your preferred strategies. Go to archpublic.com right now.
00:34:57 · Anthony Pompliano, Jordi Visser
Connect with their team, set up a time, bring your account if you'd like, then you can learn what automated trading can do for you. Archpublic.com. So in the private market, instinct went from, you know, where 500,000,000 to 2,000,000,000 to 10,000,000,000. Now it's rumored they're raising money at 30,000,000,000. Cognition and ramp are both 40 plus billion. Rumors coming may even be, you know, $6,070,000,000,000 incoming. When you see these valuations in the private market, I always go to... There's no way they're making enough money, like an Instinct, as maybe the example. Dude, they're not making money in the sense of, hey. It's worth 30,000,000,000, but the growth has to be off the charts. Mhmm. There was a interview that the Instinct founder did a couple weeks ago, Patrick Visser, talked about that he was growing 10% every day. Yeah. Right? And he's like, how do you buy compute? [00:35:44] S2: Yeah.
00:35:44 · Jordi Visser, Anthony Pompliano
[00:35:44] S2: Yeah. [00:35:44] S3: You know, if you buy... If you double your compute in a week, you're out. Right? That thing. Right? So when you when you think about the... These valuations, in a weird way, the public market valuations are actually incredibly rational compared to the private market valuations. Then you take a step back and you say to yourself, okay. I know all of the macro factors that play into this, oil, the interest rates, all this stuff that's happening. I go back to there are more people who spend money on sports gambling in America than spend money on AI right now. Mhmm. You talk about Bitcoin isn't that well adopted among wealthy people and institutions, etcetera. We are in an echo chamber of x of everyone's using AI. I see people creating cities for their Grok bots to run around and do all this, you know, cool stuff. Mhmm. I don't know, man. If you watch the local news, they're yelling about data centers, but they're not using this stuff. Mhmm. I heard last night, was at a dinner, and somebody said that that a young, person joined, their marketing department, and they were complaining that everyone was using AI. They felt like it was, you know, like like in school, they are being told, don't use this stuff. How do you square that with, like, if we're only one, 2% adopted, there's 98% of people left to go.
00:37:07 · Jordi Visser, Anthony Pompliano
[00:37:07] S2: I... I'm not sure that, until the, until Muse is around for a long time, there's two issues with AI that I think are very different than, say, Google search. One is the trust factor. I finally got the chance to meet William Mougayar yesterday, and you know, his whole book is on this concept of trust as an asset. He wants to come see you again, hasn't seen you in a long [00:37:34] S3: He can come sit in that seat whenever he wants. [00:37:36] S2: Okay, you hear that, William? [00:37:39] S3: Believe this guy, Jordi, ask him to get live on the podcast.