The State Buys In

…Silicon Valley subsidizing those losses , maybe now just the taxpayers will. And maybe that's the plan. And maybe that's a good idea, because that's what the banks did in 2008. And it didn't work for some of them, but it worked out for most of them. And so you have to think, maybe they see this collapsing. And that's why they go to the government. But either way, both of these pieces of news in the same week, that's very, very bearish, in my view, and seems to indicate that this is a growing bubble that is nearing a point of maybe not collapse, but certainly massive course correction. OpenAI, I predicted this six months ago , that the biggest bailout in corporate history was about to happen, and it was gonna be the bailout of Nadella, Altman, Dario Amadei, and it would be dressed up as investment or growth. It's not, it's a bailout. If the government were to take a 5% stake in OpenAI, great, they're gonna favor OpenAI. They're going to over-regulate their competitors and under-regulate OpenAI. They're going to provide them with protection money and direct access to the White House. It's not even socialism, it's cronyism. It's like, when things are really good, we wanna capture all the gains ourselves, but when things are bad, we wanna socialize…From: this video · 6 claims mined from it

…OpenAI is essentially like a zombie child that was formed by all of the big tech companies that have become systemic to the stock market and it's like Sam Altman is trying to make the company as systemic as possible such that eventually when things go wrong we have no choice but to bail them out. It seems like this is almost all part of the design that he wants to be too big to fail. He wants for the U.S. government to own a 5% stake in it so that if anything ever goes wrong why wouldn't the U.S. government figure out a way to bail them out? Today's number, $26.2 million. That's how much the citizens of Atlanta spent on OnlyFans last year, the most of any U.S. city. Why did the scarecrow win an award? Why…From: this video · 6 claims mined from it

…And when we look at our estimates, those two companies alone account for between 60-80% of the AI revenues for Amazon, for Google, and for Microsoft. And according to the information, those two companies alone make up half of the entire revenue backlog of the hyperscalers, i. e. the big tech companies. Meaning that the back-end infrastructure business only works if OpenAI and Anthropic continue to pay all this money and keep this whole thing afloat, which then begs the question, do you think they'll keep actually paying? And this is where the financials are so important, which were leaked by Ed Zitt rain, who we had on. And we learned that OpenAI made $13 billion in revenue last year. Okay, great. But they spent $34 billion. So their operating loss was $21 billion . Anthropic, we don't know the financials , but we at Prof.G. have done some estimates. We know that they made $4.5 billion in revenue last year. Based on our estimates, they probably spent around $15.5 billion. That's an $11 billion operating loss. Meaning the front-end AI business only works if the VCs continue to subsidize it to the tune of hundreds of billions of dollars . And by the way, if the hyperscalers continue to subsidize it. But if they stop doing that, then suddenly this business of building front-end AI doesn't work anymore, which means the business…From: this video · 6 claims mined from it

…purposes, which is great. But on the other, you could say it's looking for some sort of government backstop. How are you thinking about this? A really tough one for me because historically, people are like, "Oh, the government's got to stay out of business and have to be a line of church and state between our capitalism and governmental intervention." But then you really understand things. Lots of stakes have been taken by the government. Chrysler in the 1980s, late '70s got bailed out. Lee Iacocca asked for that bailout. General Motors got bailed out in the 2008 crisis. Obviously, the banks got preferred shares given to the government exchange for the tarp money. The Federal Reserve actually made money off of that. And of course, I think Intel is owned probably right now 9.9% by the federal government. So I am a realist on this stuff. I'm not going to be Mr. Doctrine er purist and say government shouldn't be involved. I guess what I'm worried about is the cr onyism. And what I'm worried about what's going on in the world right now is we have a funnel of people at the top. The tech brologarchs gave $25 million to Trump and they made $25 billion. It was a great exchange. Trump's attitude is if you're with me and you 're off my back like a Vladimir Putin, I 'm going to curry favor for you. And that's the stuff that I'm worried about. I'm worried about the $1.4…From: this video · 7 claims mined from it

…for certain okay all right let's talk about this so what a journey right now we're on literally the cusp of all this being live I mean how's this feel from when you first pitched this with us it was a dream back then I know you couldn't have imagined a day maybe you did that this soon theoretically that we would be here yeah well it is soon thank you for asking and and frankly thank you for having me on Scott in the fall of I think 2020 or 2021 when we first talked about it on the halftime report you know it was that show that caused it to go a little bit viral on Twitter they got more people talking about it that led me to set up the invest America Foundation it's pretty surreal you know the idea that starting this Saturday every child born forever more forever more in the history of America will get an investment account at birth seated with $1,000 in the S&P 500 that will compound for their lifetime and the momentum we have around this is totally extraordinary every company that is signing up to add money to the accounts of the kids of their employees companies like micron Sanjay announced this week 250 million dollars going to a million kids in the communities they serve of course everybody's familiar with the 6.25 billion dollar gift from the Dells but we have Ray Dalio in Connecticut me in Indiana Harold Hammond in Oklahoma and I can tell you I have billions and…From: this video · 1 claim mined from it

…invest $1.8 trillion in the next 18 months, that is before the end of 2027, in AI and other businesses in the United States. That's $1,800 billion. Plus, Saudi Arabia, together with the UAE, had pledged to buy weaponry from the American military industrial complex of about $1 trillion. Remember the US military budget used to be about $1 trillion, now it's going to go up to $1.5 trillion, and now the trillion would come from the Gulf States. And that would have been spent within 2026, early 2027. Together, we're talking about nearly $3 trillion that was about to flow to Wall Street from the Gulf States. That's gone. And it's gone because the Gulf States have lost their liquidity. They're not selling enough oil, but it's not just oil. Dubai has diversified from oil to a very large extent. They are into the business of trading gold. Most of Indian gold is being traded through Dubai. Hotels, I mean, it's a huge tourist business. They are running at 10% of their capacity. 20% of the rooms are…From: this video · 3 claims mined from it