WEBVTT

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<v Cassidy>Four <00:00:00.290>billion <00:00:00.690>dollars <00:00:01.093>in <00:00:01.250>compute <00:00:01.656>contracts <00:00:02.206>signed <00:00:02.526>before <00:00:02.867>lunch, <00:00:03.620>and <00:00:03.720>neither <00:00:04.040>company <00:00:04.370>signing <00:00:04.784>them <00:00:05.093>is <00:00:05.260>one <00:00:05.460>you've <00:00:05.640>heard <00:00:05.947>of.

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<v Cassidy>This <00:00:07.733>is <00:00:07.973>AI <00:00:08.293>Daily <00:00:08.613>Briefing.

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<v Cassidy>Today: <00:00:10.400>the <00:00:10.688>week <00:00:10.940>compute-deal <00:00:11.590>numbers <00:00:12.120>stopped <00:00:12.440>being <00:00:12.700>theoretical <00:00:13.460>and <00:00:13.810>started <00:00:14.190>showing <00:00:14.453>up <00:00:14.613>as <00:00:14.791>receipts — <00:00:16.048>plus <00:00:16.300>Netflix <00:00:16.777>spends <00:00:17.184>half <00:00:17.480>a <00:00:17.570>billion <00:00:18.000>on <00:00:18.187>an

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<v Cassidy>Affleck <00:00:18.853>AI <00:00:19.180>startup <00:00:19.712>with <00:00:20.200>nothing <00:00:20.533>on <00:00:20.697>record <00:00:21.093>about <00:00:21.392>what <00:00:21.573>it <00:00:21.733>actually <00:00:22.256>does.

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<v Cassidy>Bill, <00:00:23.973>start <00:00:24.267>me <00:00:24.373>on <00:00:24.600>IREN.

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<v Bill>Tap <00:00:26.149>follow <00:00:26.640>so <00:00:26.820>the <00:00:26.960>next <00:00:27.360>episode <00:00:28.013>finds <00:00:28.540>you.

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<v Cassidy>William <00:00:29.708>Foxley, <00:00:30.288>writing <00:00:30.595>in <00:00:30.715>Blockspace:

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<v Quote>IREN <00:00:32.800>(NASDAQ: <00:00:33.600>IREN) <00:00:34.488>said <00:00:34.749>Monday <00:00:35.192>that <00:00:35.373>it <00:00:35.520>had <00:00:35.697>signed <00:00:36.080>$2.8 <00:00:36.870>billion <00:00:37.693>of <00:00:37.860>new <00:00:38.120>multi-year <00:00:38.920>AI <00:00:39.307>cloud <00:00:39.693>services <00:00:40.176>contracts <00:00:40.728>with <00:00:40.970>leading <00:00:41.453>AI <00:00:41.785>developers.

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<v Quote>The <00:00:43.080>data <00:00:43.434>center <00:00:43.660>and <00:00:43.780>bitcoin <00:00:44.246>mining <00:00:44.591>operator <00:00:45.206>lifted <00:00:45.520>its <00:00:45.688>year-end <00:00:46.200>2026 <00:00:47.133>AI <00:00:47.467>cloud <00:00:47.857>annualized <00:00:48.520>run-rate <00:00:48.970>revenue <00:00:49.377>target <00:00:49.800>from <00:00:50.160>$3.7 <00:00:51.100>billion <00:00:51.853>to <00:00:52.008>more

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<v Quote>than <00:00:52.480>$4 <00:00:52.880>billion.

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<v Cassidy>IREN — <00:00:55.495>$2.8 <00:00:56.155>billion <00:00:56.908>in <00:00:57.075>new <00:00:57.308>multi-year <00:00:58.002>AI <00:00:58.268>cloud <00:00:58.607>contracts, <00:00:59.875>ARR <00:01:00.364>target <00:01:00.821>bumped <00:01:01.127>from <00:01:01.335>$3.7 <00:01:02.508>to <00:01:02.663>over <00:01:02.975>$4 <00:01:03.385>billion, <00:01:04.908>stock <00:01:05.255>up <00:01:05.495>15% <00:01:06.284>Monday.

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<v Cassidy>Two <00:01:07.701>months <00:01:08.035>ago <00:01:08.263>most <00:01:08.482>of <00:01:08.575>our <00:01:08.743>listeners <00:01:09.198>couldn't <00:01:09.431>have <00:01:09.529>picked <00:01:09.751>this <00:01:09.865>company <00:01:10.235>out <00:01:10.322>of <00:01:10.415>a <00:01:10.535>lineup.

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<v Bill>And <00:01:11.863>here's <00:01:12.175>the <00:01:12.341>number <00:01:12.735>I <00:01:12.926>actually <00:01:13.575>like — <00:01:14.508>customer <00:01:15.055>prepayments <00:01:16.073>covering <00:01:16.908>about <00:01:17.415>45% <00:01:18.828>of <00:01:19.115>the <00:01:19.375>GPU <00:01:20.095>capex.

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<v Bill>Somebody's <00:01:22.325>putting <00:01:22.615>cash <00:01:22.999>down <00:01:23.312>before <00:01:23.695>the <00:01:23.882>racks <00:01:24.255>are <00:01:24.455>lit.

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<v Bill>Cash <00:01:25.735>up <00:01:25.948>front <00:01:26.263>says <00:01:26.495>a <00:01:26.595>lot <00:01:26.823>more <00:01:27.047>than <00:01:27.215>a <00:01:27.308>press <00:01:27.635>release.

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<v Cassidy>This <00:01:28.962>is <00:01:29.055>a <00:01:29.155>bitcoin <00:01:29.655>miner.

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<v Cassidy>Danny <00:01:31.155>Roberts <00:01:31.623>says <00:01:31.935>IREN <00:01:32.423>went <00:01:32.647>from <00:01:32.825>roughly <00:01:33.335>3 <00:01:33.635>megawatts <00:01:34.242>of <00:01:34.359>self-built <00:01:35.042>AI <00:01:35.348>cloud <00:01:36.002>to <00:01:36.455>480 <00:01:37.308>in <00:01:37.472>twelve <00:01:37.884>months.

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<v Cassidy>Capacity <00:01:39.615>New <00:01:39.815>York <00:01:40.155>and <00:01:40.268>other <00:01:40.575>tight <00:01:40.825>markets <00:01:41.209>couldn't <00:01:41.655>take <00:01:41.868>is <00:01:42.025>landing <00:01:42.391>with <00:01:42.511>companies <00:01:43.035>you've <00:01:43.215>never <00:01:43.455>heard <00:01:43.762>of.

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<v Bill>But <00:01:44.922>watch <00:01:45.319>that <00:01:45.655>word <00:01:46.135>'annualized' — <00:01:47.955>run-rate <00:01:48.535>isn't <00:01:48.951>cash <00:01:49.388>in <00:01:49.515>the <00:01:49.671>door.

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<v Bill>They're <00:01:51.148>at <00:01:51.335>85% <00:01:52.562>of <00:01:52.655>a <00:01:52.764>target <00:01:53.223>that's <00:01:53.535>a <00:01:53.640>projection <00:01:54.375>of <00:01:54.575>a <00:01:54.680>projection.

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<v Bill>Four-year <00:01:56.668>weighted <00:01:57.175>terms <00:01:57.642>means <00:01:58.039>most <00:01:58.322>of <00:01:58.423>this <00:01:58.661>dollar <00:01:58.992>figure <00:01:59.415>lands <00:01:59.918>slowly, <00:02:01.155>not <00:02:01.383>this <00:02:01.635>quarter.

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<v Cassidy>IT <00:02:03.300>Brief <00:02:03.607>New <00:02:03.777>Zealand, <00:02:04.287>with <00:02:04.671>Sean <00:02:04.971>Mitchell:

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<v Quote>Sharon <00:02:06.456>AI <00:02:06.783>has <00:02:06.997>signed <00:02:07.283>a <00:02:07.427>five-year <00:02:07.910>cloud <00:02:08.291>computing <00:02:08.776>services <00:02:09.251>agreement <00:02:09.763>worth <00:02:10.203>USD <00:02:10.363>$1.32 <00:02:11.403>billion <00:02:12.323>with <00:02:12.670>an <00:02:12.783>unnamed <00:02:13.260>global <00:02:13.661>artificial <00:02:14.280>intelligence

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<v Quote>laboratory. <00:02:15.567>Services <00:02:16.595>will <00:02:16.750>be <00:02:16.843>delivered <00:02:17.235>from <00:02:17.427>data <00:02:17.729>centre <00:02:18.056>infrastructure <00:02:18.856>in <00:02:19.003>New <00:02:19.183>Zealand.

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<v Quote>Revenue <00:02:20.670>is <00:02:20.776>expected <00:02:21.256>to <00:02:21.403>begin <00:02:21.654>progressively <00:02:22.369>during <00:02:22.683>the <00:02:22.856>first <00:02:23.163>and <00:02:23.340>second <00:02:23.727>quarters <00:02:24.136>of <00:02:24.323>2027.

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<v Cassidy>Right <00:02:25.935>after <00:02:26.322>IREN's <00:02:26.942>$2.8 <00:02:27.582>billion, <00:02:28.634>here's <00:02:28.942>another <00:02:29.142>one: <00:02:29.951>Sharon <00:02:30.575>AI, <00:02:31.242>five-year <00:02:31.802>deal, <00:02:32.642>$1.32 <00:02:33.672>billion, <00:02:34.582>landing <00:02:35.029>in <00:02:35.122>New <00:02:35.302>Zealand.

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<v Cassidy>Not <00:02:36.709>where <00:02:36.911>anyone <00:02:37.362>was <00:02:37.522>drawing <00:02:37.822>the <00:02:37.932>compute <00:02:38.362>map <00:02:38.662>six <00:02:38.888>months <00:02:39.242>ago.

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<v Bill>And <00:02:40.575>it's <00:02:40.902>one <00:02:41.144>customer.

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<v Bill>An <00:02:42.701>unnamed <00:02:43.422>global <00:02:44.184>AI <00:02:44.731>lab, <00:02:45.531>the <00:02:45.718>whole <00:02:46.251>$1.32 <00:02:47.871>billion, <00:02:49.308>single <00:02:49.711>counterparty.

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<v Bill>So <00:02:51.271>the <00:02:51.395>risk <00:02:51.758>is <00:02:52.051>all <00:02:52.398>in <00:02:52.671>one <00:02:52.984>place — <00:02:54.111>one <00:02:54.355>very <00:02:54.704>large <00:02:55.291>egg <00:02:55.758>in <00:02:56.051>one <00:02:56.382>basket.

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<v Cassidy>The <00:02:57.787>anonymity <00:02:58.371>matters.

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<v Cassidy>If <00:02:59.511>you're <00:02:59.771>a <00:02:59.918>frontier <00:03:00.231>lab <00:03:00.584>or <00:03:00.811>a <00:03:00.965>hyperscaler, <00:03:02.011>you <00:03:02.171>usually <00:03:02.483>want <00:03:02.643>your <00:03:02.835>logo <00:03:03.144>on <00:03:03.315>this.

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<v Cassidy>Staying <00:03:04.598>quiet <00:03:05.011>costs <00:03:05.431>you <00:03:05.531>the <00:03:05.758>PR <00:03:06.071>win — <00:03:06.904>so <00:03:07.038>whatever <00:03:07.271>the <00:03:07.388>reason <00:03:07.838>is, <00:03:08.547>they <00:03:08.678>value <00:03:09.038>it <00:03:09.139>more <00:03:09.363>than <00:03:09.511>the <00:03:09.633>headline.

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<v Bill>Revenue <00:03:11.451>doesn't <00:03:11.779>even <00:03:12.024>start <00:03:12.358>trickling <00:03:12.931>in <00:03:13.144>until <00:03:13.651>Q1 <00:03:14.158>or <00:03:14.491>Q2 <00:03:15.064>of <00:03:15.251>2027.

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<v Bill>So <00:03:17.451>the <00:03:17.615>headline <00:03:18.005>number <00:03:18.291>is <00:03:18.547>real, <00:03:19.431>but <00:03:19.531>the <00:03:19.731>cash <00:03:20.120>starts <00:03:20.588>months <00:03:20.963>from <00:03:21.171>now <00:03:21.551>and <00:03:21.998>is <00:03:22.131>back-loaded <00:03:22.840>across <00:03:23.331>five <00:03:23.744>years.

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<v Bill>Announce <00:03:25.351>now, <00:03:26.146>collect <00:03:26.598>later.

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<v Cassidy>And <00:03:27.292>New <00:03:27.462>Zealand <00:03:27.865>is <00:03:28.022>hosting <00:03:28.425>frontier-scale <00:03:29.412>AI <00:03:29.772>for <00:03:29.912>the <00:03:30.012>first <00:03:30.292>time — <00:03:31.492>62,000 <00:03:32.361>Nvidia <00:03:32.900>GPUs <00:03:33.465>by <00:03:33.632>mid-2027, <00:03:35.385>up <00:03:35.524>from <00:03:35.812>55,000 <00:03:36.799>in <00:03:36.964>June.

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<v Cassidy>The <00:03:38.441>demand <00:03:38.892>New <00:03:39.076>York <00:03:39.372>and <00:03:39.532>other <00:03:39.792>markets <00:03:40.246>turned <00:03:40.516>away <00:03:40.832>has <00:03:41.039>to <00:03:41.145>go <00:03:41.316>somewhere, <00:03:42.472>and <00:03:42.599>today <00:03:42.980>somewhere <00:03:43.492>is <00:03:43.696>Auckland-adjacent.

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<v Cassidy>ChosunBiz, <00:03:47.318>with <00:03:47.622>Jeong <00:03:47.995>Du-yong:

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<v Quote>The <00:03:49.215>negotiations <00:03:49.973>are <00:03:50.060>in <00:03:50.153>the <00:03:50.326>early <00:03:50.684>stages, <00:03:51.373>and <00:03:51.580>there <00:03:51.793>is <00:03:51.993>a <00:03:52.100>possibility <00:03:52.881>they <00:03:53.133>may <00:03:53.373>not <00:03:53.601>lead <00:03:53.820>to <00:03:53.953>a <00:03:54.073>final <00:03:54.344>contract.

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<v Quote>The <00:03:55.681>fact <00:03:55.905>that <00:03:56.097>Meta <00:03:56.393>has <00:03:56.593>not <00:03:56.884>previously <00:03:57.446>operated <00:03:57.953>a <00:03:58.077>business <00:03:58.473>selling <00:03:58.801>computing <00:03:59.297>resources <00:03:59.900>to <00:04:00.006>external <00:04:00.513>parties <00:04:01.126>is <00:04:01.273>another <00:04:01.615>variable <00:04:02.166>in <00:04:02.293>the

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<v Quote>negotiations. <00:04:03.553>Meta <00:04:04.253>did <00:04:04.473>not <00:04:04.643>respond <00:04:05.046>to <00:04:05.203>related <00:04:05.617>inquiries, <00:04:06.333>and <00:04:06.561>Anthropic <00:04:07.197>declined <00:04:07.580>to <00:04:07.683>comment.

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<v Bill>So <00:04:08.930>after <00:04:09.583>IREN's <00:04:10.303>$2.8 <00:04:11.373>billion <00:04:12.543>and <00:04:12.983>Sharon <00:04:13.623>AI's <00:04:14.223>$1.32 <00:04:15.743>billion

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<v Bill>here <00:04:17.543>comes <00:04:18.023>a <00:04:18.223>$10 <00:04:18.713>billion <00:04:19.767>Meta-Anthropic <00:04:21.280>number — <00:04:22.834>except <00:04:22.951>read <00:04:23.183>the <00:04:23.356>first <00:04:23.671>line <00:04:23.890>of <00:04:23.983>the <00:04:24.153>article.

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<v Bill>Early <00:04:25.583>stage, <00:04:26.423>may <00:04:26.983>not <00:04:27.287>lead <00:04:27.596>to <00:04:27.743>a <00:04:27.872>contract.

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<v Cassidy>Right, <00:04:29.655>that's <00:04:29.883>the <00:04:29.991>fine <00:04:30.250>print <00:04:30.653>sitting <00:04:31.183>right <00:04:31.447>next <00:04:31.756>to <00:04:31.903>a <00:04:32.003>ten-billion-dollar <00:04:32.885>headline.

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<v Cassidy>But <00:04:34.471>Anthropic <00:04:35.127>even <00:04:35.423>being <00:04:35.650>in <00:04:35.723>the <00:04:35.847>room <00:04:36.160>asking <00:04:36.567>Meta <00:04:36.843>for <00:04:36.992>capacity <00:04:37.810>tells <00:04:38.363>you <00:04:38.483>how <00:04:38.723>bad <00:04:38.923>the <00:04:39.103>GPU <00:04:39.520>crunch <00:04:39.883>has <00:04:40.012>gotten.

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<v Cassidy>This <00:04:41.516>is <00:04:41.663>a <00:04:41.803>lab <00:04:42.119>with <00:04:42.223>its <00:04:42.423>own <00:04:42.754>campus <00:04:43.343>and <00:04:43.503>a <00:04:43.596>services <00:04:44.123>arm, <00:04:44.943>and <00:04:45.090>it <00:04:45.196>still <00:04:45.503>needs <00:04:45.756>to <00:04:45.911>rent <00:04:46.135>from <00:04:46.327>Meta <00:04:46.636>of <00:04:46.803>all <00:04:47.052>people.

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<v Cassidy>Anthropic <00:04:48.923>and <00:04:49.063>OpenAI <00:04:49.703>love <00:04:50.076>to <00:04:50.231>talk <00:04:50.450>about <00:04:50.643>how <00:04:50.863>different <00:04:51.255>they <00:04:51.463>are.

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<v Cassidy>They're <00:04:52.394>scrambling <00:04:52.923>for <00:04:53.003>the <00:04:53.127>same <00:04:53.543>GPUs.

51
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<v Bill>And <00:04:55.047>Meta's <00:04:55.450>never <00:04:55.895>sold <00:04:56.413>compute <00:04:56.983>to <00:04:57.231>outsiders.

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<v Bill>Zuckerberg <00:04:59.513>floated <00:04:59.927>this <00:05:00.236>at <00:05:00.363>the <00:05:00.523>May <00:05:00.876>shareholder <00:05:01.523>meeting — <00:05:02.623>companies <00:05:03.023>calling <00:05:03.343>every <00:05:03.591>week <00:05:03.836>to <00:05:04.023>buy <00:05:04.343>surplus <00:05:04.992>capacity.

53
00:05:06.023 --> 00:05:12.343
<v Bill>Now <00:05:06.807>Meta <00:05:07.116>wants <00:05:07.423>a <00:05:07.559>CoreWeave-like <00:05:08.565>business <00:05:09.116>to <00:05:09.292>loosen <00:05:09.743>the <00:05:09.996>ad-revenue <00:05:10.823>dependence.

54
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<v Cassidy>Which <00:05:12.556>means <00:05:12.887>Meta <00:05:13.170>could <00:05:13.343>end <00:05:13.516>up <00:05:13.676>underwriting <00:05:14.223>a <00:05:14.321>competitor's <00:05:15.027>frontier <00:05:15.452>models <00:05:15.895>with <00:05:16.063>its <00:05:16.236>spare <00:05:16.596>racks.

55
00:05:17.263 --> 00:05:19.691
<v Cassidy>Everybody's <00:05:18.423>a <00:05:18.476>landlord <00:05:19.003>now.

56
00:05:19.691 --> 00:05:27.383
<v Bill>A <00:05:20.143>$10 <00:05:20.443>billion <00:05:21.210>lease <00:05:21.591>that <00:05:21.843>may <00:05:22.090>never <00:05:22.570>close <00:05:23.436>is <00:05:23.723>the <00:05:23.848>disclaimer <00:05:24.623>I <00:05:24.791>want <00:05:25.063>stapled <00:05:25.570>to <00:05:25.690>every <00:05:26.072>announcement <00:05:26.711>this <00:05:26.967>week.

57
00:05:27.563 --> 00:05:32.743
<v Bill>Announcing <00:05:28.463>a <00:05:28.572>number <00:05:29.063>and <00:05:29.372>stress-testing <00:05:30.283>the <00:05:30.423>contract <00:05:31.203>are <00:05:31.655>different <00:05:32.034>sports.

58
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<v Cassidy>Here's <00:05:33.676>Anthony <00:05:34.133>Ha <00:05:34.373>at <00:05:34.506>TechCrunch:

59
00:05:35.624 --> 00:05:37.464
<v Quote>In <00:05:35.744>a <00:05:35.844>new <00:05:36.082>regulatory <00:05:36.744>filing

60
00:05:37.514 --> 00:05:43.144
<v Quote>Netflix <00:05:37.917>revealed <00:05:38.360>that <00:05:38.477>it <00:05:38.648>paid <00:05:39.264>$587 <00:05:40.444>million <00:05:41.171>in <00:05:41.320>cash <00:05:41.744>for <00:05:41.931>InterPositive

61
00:05:43.224 --> 00:05:46.184
<v Quote>a <00:05:43.354>startup <00:05:43.757>co-founded <00:05:44.344>by <00:05:44.557>actor <00:05:44.844>and <00:05:44.957>director <00:05:45.444>Ben <00:05:45.684>Affleck.

62
00:05:46.404 --> 00:05:49.544
<v Quote>The <00:05:47.096>streaming <00:05:47.434>company <00:05:47.824>announced <00:05:48.204>the <00:05:48.311>acquisition <00:05:48.877>in <00:05:49.037>March

63
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<v Quote>with <00:05:49.744>a <00:05:49.824>statement <00:05:50.216>from <00:05:50.404>Affleck <00:05:50.858>saying <00:05:51.117>he <00:05:51.270>wanted <00:05:51.677>to <00:05:52.064>“protect <00:05:52.604>the <00:05:52.744>power <00:05:53.197>of <00:05:53.357>human <00:05:53.689>creativity.”

64
00:05:54.871 --> 00:05:57.991
<v Bill>Okay <00:05:55.498>after <00:05:55.871>the <00:05:56.041>billion-dollar <00:05:56.781>compute <00:05:57.340>parade

65
00:05:58.103 --> 00:06:08.391
<v Bill>here's <00:05:58.651>the <00:05:58.764>rounding <00:05:59.258>error <00:05:59.644>by <00:05:59.846>comparison — <00:06:01.101>Netflix <00:06:01.703>paid <00:06:02.231>$587 <00:06:03.721>million <00:06:04.684>in <00:06:04.951>cash <00:06:05.711>for <00:06:06.171>Ben <00:06:06.551>Affleck's <00:06:07.271>InterPositive.

66
00:06:08.551 --> 00:06:17.023
<v Bill>And <00:06:09.071>the <00:06:09.248>number <00:06:09.671>matters, <00:06:10.401>because <00:06:11.079>that's <00:06:11.399>more <00:06:11.623>than <00:06:11.791>a <00:06:11.871>lot <00:06:12.044>of <00:06:12.218>infra <00:06:12.607>companies <00:06:13.191>raised <00:06:13.751>all <00:06:14.071>year <00:06:14.531>for <00:06:14.991>a <00:06:15.102>creative-workflow <00:06:16.343>tool.

67
00:06:17.023 --> 00:06:24.232
<v Cassidy>And <00:06:17.452>the <00:06:17.592>$587 <00:06:18.802>million <00:06:19.496>only <00:06:19.792>shows <00:06:20.045>up <00:06:20.232>now <00:06:20.512>because <00:06:20.832>a <00:06:20.930>regulatory <00:06:21.581>filing <00:06:22.049>forced <00:06:22.419>it <00:06:22.592>out — <00:06:23.464>back <00:06:23.645>in <00:06:23.819>March

68
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<v Cassidy>when <00:06:24.344>they <00:06:24.512>announced <00:06:24.892>the <00:06:25.032>deal

69
00:06:25.768 --> 00:06:27.192
<v Cassidy>they <00:06:25.880>kept <00:06:26.092>the <00:06:26.219>terms <00:06:26.632>quiet.

70
00:06:27.296 --> 00:06:30.872
<v Cassidy>Bloomberg <00:06:28.252>had <00:06:28.352>guessed <00:06:28.659>up <00:06:28.765>to <00:06:28.912>$600 <00:06:29.542>million.

71
00:06:30.892 --> 00:06:35.912
<v Bill>Affleck's <00:06:31.312>pitch <00:06:31.592>was <00:06:32.019>he <00:06:32.438>wanted <00:06:32.765>to <00:06:32.952>"protect <00:06:33.632>the <00:06:33.845>power <00:06:34.365>of <00:06:34.552>human <00:06:35.025>creativity."

72
00:06:36.120 --> 00:06:42.632
<v Bill>Half <00:06:36.992>a <00:06:37.082>billion <00:06:37.492>dollars <00:06:37.965>to <00:06:38.132>protect <00:06:38.625>creativity <00:06:39.432>by <00:06:39.659>automating <00:06:40.272>the <00:06:40.472>reshoots. <00:06:41.688>Sure.

73
00:06:42.648 --> 00:06:48.112
<v Cassidy>What <00:06:42.792>I <00:06:42.892>don't <00:06:43.096>have <00:06:43.405>is <00:06:43.552>any <00:06:43.720>technical <00:06:44.221>report <00:06:44.685>on <00:06:44.824>what <00:06:45.005>InterPositive <00:06:45.716>actually <00:06:46.168>does <00:06:46.579>at <00:06:46.676>production <00:06:47.192>scale.

74
00:06:48.242 --> 00:06:53.512
<v Cassidy>Fixing <00:06:48.752>missing <00:06:49.125>shots, <00:06:49.737>background <00:06:50.439>replacement, <00:06:51.094>lighting — <00:06:52.019>those <00:06:52.192>are <00:06:52.392>demo-reel <00:06:53.022>bullets.

75
00:06:53.640 --> 00:06:55.592
<v Cassidy>They <00:06:54.192>don't <00:06:54.456>tell <00:06:54.579>me <00:06:54.652>the <00:06:54.776>spec <00:06:55.099>sheet.

76
00:06:55.702 --> 00:07:02.392
<v Cassidy>Netflix <00:06:56.520>says <00:06:56.792>300 <00:06:57.329>titles <00:06:57.722>already <00:06:58.136>used <00:06:58.445>generative <00:06:59.139>AI, <00:06:59.732>but <00:07:00.192>not <00:07:00.352>which <00:07:00.648>ones <00:07:01.085>or <00:07:01.232>how <00:07:01.448>much.

77
00:07:02.432 --> 00:07:12.072
<v Bill>And <00:07:02.600>here's <00:07:02.932>why <00:07:03.176>this <00:07:03.492>one <00:07:03.752>is <00:07:03.992>hard <00:07:04.352>for <00:07:04.579>me — <00:07:05.560>this <00:07:05.805>is <00:07:05.932>the <00:07:06.052>one <00:07:06.392>AI <00:07:06.792>category <00:07:07.485>where <00:07:07.832>I <00:07:07.972>can't <00:07:08.312>hide <00:07:08.712>behind <00:07:09.336>step-seven-of-ten <00:07:10.942>failure <00:07:11.512>rates.

78
00:07:12.252 --> 00:07:15.112
<v Bill>The <00:07:12.838>stress <00:07:13.192>test <00:07:13.619>is <00:07:14.012>box <00:07:14.621>office.

79
00:07:15.240 --> 00:07:19.432
<v Bill>Does <00:07:15.792>the <00:07:15.956>finished <00:07:16.408>film <00:07:16.862>survive <00:07:17.379>an <00:07:17.494>audience, <00:07:18.212>not <00:07:18.672>a <00:07:18.768>benchmark.

80
00:07:20.238 --> 00:07:22.265
<v Cassidy>TechTimes, <00:07:21.230>with <00:07:21.411>Scott <00:07:21.758>McCain:

81
00:07:22.708 --> 00:07:31.828
<v Quote>The <00:07:22.845>result <00:07:23.295>is <00:07:23.668>96.7% <00:07:25.259>accuracy <00:07:25.908>on <00:07:26.148>MNIST <00:07:26.688>and <00:07:27.188>61.7% <00:07:28.761>on <00:07:28.968>CIFAR-10 — <00:07:30.188>without <00:07:30.532>backpropagation

82
00:07:31.878 --> 00:07:34.068
<v Quote>without <00:07:32.285>random <00:07:32.672>feedback <00:07:33.108>matrices

83
00:07:34.088 --> 00:07:40.548
<v Quote>and <00:07:34.198>without <00:07:34.604>violating <00:07:35.148>the <00:07:35.333>biological <00:07:36.046>constraint <00:07:36.676>that <00:07:36.926>individual <00:07:37.578>neurons <00:07:38.108>can <00:07:38.292>only <00:07:38.628>excite <00:07:39.161>or <00:07:39.476>only <00:07:39.738>inhibit

84
00:07:40.601 --> 00:07:48.948
<v Quote>never <00:07:40.948>both. <00:07:41.628>The <00:07:42.548>gap <00:07:42.841>to <00:07:42.988>the <00:07:43.158>nearest <00:07:43.564>competing <00:07:44.148>backpropagation-free <00:07:45.325>method <00:07:45.775>is <00:07:46.148>7.4 <00:07:46.992>percentage <00:07:47.485>points <00:07:47.881>on <00:07:48.088>CIFAR-10.

85
00:07:49.199 --> 00:07:59.599
<v Bill>Okay <00:07:49.739>let's <00:07:50.255>downshift <00:07:51.103>from <00:07:51.459>ten-billion-dollar <00:07:52.639>leases <00:07:53.172>to <00:07:53.359>a <00:07:53.492>paper <00:07:53.791>that <00:07:53.999>cost <00:07:54.433>nobody <00:07:55.279>ten <00:07:55.819>billion <00:07:56.309>dollars <00:07:56.939>and <00:07:57.399>I <00:07:57.483>actually <00:07:57.919>find <00:07:58.266>it <00:07:58.383>more <00:07:58.699>interesting.

86
00:07:59.759 --> 00:08:08.772
<v Bill>Sakana <00:08:00.612>AI, <00:08:01.172>in <00:08:01.359>Tokyo, <00:08:02.216>posted <00:08:02.607>this <00:08:02.852>to <00:08:03.092>arXiv <00:08:03.839>on <00:08:04.019>the <00:08:04.159>17th — <00:08:05.492>training <00:08:05.999>a <00:08:06.148>neural <00:08:06.639>net <00:08:06.959>without <00:08:07.599>backpropagation.

87
00:08:08.799 --> 00:08:11.999
<v Cassidy>The <00:08:09.565>honest <00:08:09.903>part <00:08:10.212>is <00:08:10.372>right <00:08:10.679>there <00:08:10.906>in <00:08:10.999>the <00:08:11.179>framing.

88
00:08:12.079 --> 00:08:14.159
<v Cassidy>They <00:08:12.447>call <00:08:12.692>it <00:08:12.839>the <00:08:13.029>biology <00:08:13.659>tax.

89
00:08:14.879 --> 00:08:26.479
<v Cassidy>96.7% <00:08:16.292>on <00:08:16.506>MNIST, <00:08:17.599>61.7% <00:08:19.012>on <00:08:19.199>CIFAR-10 — <00:08:20.579>and <00:08:20.671>they <00:08:20.847>give <00:08:21.059>you <00:08:21.139>the <00:08:21.279>gap <00:08:21.572>to <00:08:21.699>the <00:08:21.809>nearest <00:08:22.223>backprop-free <00:08:23.039>method: <00:08:24.319>7.4 <00:08:25.108>points.

90
00:08:26.532 --> 00:08:29.839
<v Bill>Right — <00:08:27.471>they <00:08:27.639>published <00:08:28.019>the <00:08:28.125>number <00:08:28.431>that <00:08:28.612>makes <00:08:28.911>them <00:08:29.087>look <00:08:29.359>worse.

91
00:08:30.015 --> 00:08:32.399
<v Bill>That's <00:08:30.815>what <00:08:30.919>makes <00:08:31.172>me <00:08:31.327>take <00:08:31.546>it <00:08:31.663>seriously.

92
00:08:32.539 --> 00:08:41.039
<v Bill>The <00:08:32.986>whole <00:08:33.199>point <00:08:33.706>is <00:08:33.975>measuring, <00:08:34.612>in <00:08:34.808>accuracy, <00:08:35.839>what <00:08:36.292>biologically <00:08:37.263>plausible <00:08:37.901>learning <00:08:38.546>costs <00:08:39.339>you <00:08:39.612>today.

93
00:08:41.059 --> 00:08:45.279
<v Cassidy>And <00:08:41.132>there's <00:08:41.323>actually <00:08:41.719>a <00:08:41.812>paper <00:08:42.141>attached — <00:08:43.007>Diffusing <00:08:43.492>Blame, <00:08:44.159>on <00:08:44.559>arXiv.

94
00:08:45.439 --> 00:08:51.599
<v Cassidy>After <00:08:46.259>the <00:08:46.367>week <00:08:46.586>we've <00:08:46.899>had, <00:08:47.719>a <00:08:47.819>release <00:08:48.266>where <00:08:48.419>the <00:08:48.527>technical <00:08:49.016>report <00:08:49.412>is <00:08:49.559>the <00:08:49.729>release <00:08:50.146>feels <00:08:50.536>almost <00:08:50.959>quaint.

95
00:08:51.779 --> 00:09:01.119
<v Cassidy>The <00:08:52.383>backprop <00:08:52.849>problem <00:08:53.259>matters <00:08:53.719>because <00:08:54.066>neuroscientists <00:08:55.055>have <00:08:55.183>said <00:08:55.492>since <00:08:55.839>1989 <00:08:57.183>that <00:08:57.459>the <00:08:57.572>brain <00:08:57.919>can't <00:08:58.319>do <00:08:58.419>the <00:08:58.543>math <00:08:58.863>backprop <00:08:59.452>needs — <00:09:00.532>Crick <00:09:00.769>himself

96
00:09:01.151 --> 00:09:07.039
<v Cassidy>said <00:09:01.359>it. <00:09:01.725>Nearly <00:09:02.519>forty <00:09:02.772>years <00:09:03.092>later, <00:09:03.875>somebody's <00:09:04.279>finally <00:09:04.599>putting <00:09:04.979>a <00:09:05.112>price <00:09:05.339>tag <00:09:05.546>on <00:09:05.639>the <00:09:05.819>alternative.

97
00:09:07.085 --> 00:09:13.359
<v Bill>Before <00:09:07.439>I <00:09:07.539>get <00:09:07.679>too <00:09:07.979>excited: <00:09:09.159>CIFAR-10 <00:09:10.266>is <00:09:10.532>still <00:09:10.839>a <00:09:11.019>toy <00:09:11.519>by <00:09:11.839>2026 <00:09:12.775>standards.

98
00:09:13.999 --> 00:09:18.879
<v Bill>61.7% <00:09:15.732>is <00:09:15.879>a <00:09:16.019>lab <00:09:16.399>curiosity, <00:09:17.559>not <00:09:17.719>a <00:09:17.826>phone <00:09:18.228>camera.

99
00:09:19.039 --> 00:09:26.399
<v Bill>But <00:09:19.551>they <00:09:19.719>got <00:09:19.866>it <00:09:19.979>working <00:09:20.431>with <00:09:20.626>convolutional <00:09:21.535>nets <00:09:21.939>and <00:09:22.068>reinforcement <00:09:23.003>learning, <00:09:24.099>and <00:09:24.191>that's <00:09:24.439>the <00:09:24.599>first <00:09:24.847>time <00:09:25.096>anyone's <00:09:25.652>shown <00:09:25.983>that.

100
00:09:26.612 --> 00:09:31.839
<v Bill>So, <00:09:27.263>real <00:09:27.919>step — <00:09:28.831>just <00:09:28.999>a <00:09:29.119>small <00:09:29.599>one <00:09:29.919>on <00:09:30.119>a <00:09:30.255>very <00:09:30.751>long <00:09:31.279>ladder.

101
00:09:32.434 --> 00:09:35.234
<v Cassidy>If <00:09:32.534>you're <00:09:32.706>following <00:09:33.034>the <00:09:33.234>AI <00:09:33.447>power <00:09:33.764>players <00:09:34.167>we <00:09:34.327>cover <00:09:34.658>here

102
00:09:35.294 --> 00:09:41.714
<v Cassidy>try <00:09:35.586>Musk <00:09:36.154>v <00:09:36.394>Altman <00:09:36.994>Daily — <00:09:37.994>a <00:09:38.087>daily <00:09:38.407>court-watch <00:09:39.021>on <00:09:39.154>Elon <00:09:39.538>Musk’s <00:09:39.941>trial <00:09:40.314>against <00:09:40.654>Sam <00:09:40.894>Altman

103
00:09:41.794 --> 00:09:43.794
<v Cassidy>OpenAI <00:09:42.534>and <00:09:42.666>Microsoft

104
00:09:43.838 --> 00:09:46.274
<v Cassidy>tracking <00:09:44.258>testimony <00:09:45.305>exhibits

105
00:09:46.294 --> 00:09:47.874
<v Cassidy>and <00:09:46.394>the <00:09:46.621>AGI <00:09:47.038>governance <00:09:47.527>fight.

106
00:09:48.050 --> 00:09:50.594
<v Cassidy>Find <00:09:48.781>it <00:09:48.878>wherever <00:09:49.254>you <00:09:49.348>listen <00:09:49.581>to <00:09:49.723>podcasts.

107
00:09:51.390 --> 00:09:59.550
<v Cassidy>What <00:09:51.577>we’re <00:09:51.746>watching <00:09:52.142>next: <00:09:52.990>IREN <00:09:53.630>says <00:09:54.003>it’s <00:09:54.330>scheduled <00:09:54.537>to <00:09:54.640>deliver <00:09:55.150>480 <00:09:56.090>megawatts <00:09:56.723>of <00:09:56.990>AI <00:09:57.363>cloud <00:09:57.701>capacity <00:09:58.297>in <00:09:58.430>2026

108
00:09:59.646 --> 00:10:03.150
<v Cassidy>with <00:10:00.270>1.2 <00:10:00.820>gigawatts <00:10:01.292>targeted <00:10:01.810>for <00:10:02.030>2027.

109
00:10:03.321 --> 00:10:11.150
<v Cassidy>Sharon <00:10:04.510>AI <00:10:04.880>expects <00:10:05.290>revenue <00:10:05.758>from <00:10:05.990>its <00:10:06.150>New <00:10:06.320>Zealand <00:10:06.723>cloud <00:10:07.030>agreement <00:10:07.443>to <00:10:07.590>start <00:10:07.836>coming <00:10:08.163>in <00:10:08.304>during <00:10:08.550>the <00:10:08.723>first <00:10:09.030>and <00:10:09.196>second <00:10:09.514>quarters <00:10:09.923>of <00:10:10.110>2027.

110
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<v Cassidy>Links <00:10:12.137>to <00:10:12.230>every <00:10:12.483>story <00:10:12.803>we <00:10:12.958>mentioned <00:10:13.430>are <00:10:13.577>in <00:10:13.650>the <00:10:13.774>show <00:10:14.083>notes, <00:10:14.697>so <00:10:15.123>if <00:10:15.270>one <00:10:15.424>caught <00:10:15.662>your <00:10:15.870>ear, <00:10:16.370>you <00:10:16.690>can <00:10:16.810>dig <00:10:17.017>in <00:10:17.123>there.

111
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<v Cassidy>That’s <00:10:18.457>AI <00:10:18.723>Daily <00:10:19.030>Briefing <00:10:19.350>for <00:10:19.563>today.

112
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<v Cassidy>This <00:10:20.963>is <00:10:21.110>a <00:10:21.210>Lantern <00:10:21.740>Podcast.