WEBVTT

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<v Cassidy>Google <00:00:00.368>just <00:00:00.640>cut <00:00:00.933>agent <00:00:01.267>token <00:00:01.680>costs <00:00:02.107>by <00:00:02.240>up <00:00:02.453>to <00:00:02.640>65% — <00:00:04.020>and <00:00:04.120>the <00:00:04.286>buyers <00:00:04.613>of <00:00:04.827>AI <00:00:05.100>compute <00:00:05.560>are <00:00:05.733>fronting <00:00:06.100>the <00:00:06.240>cash <00:00:06.580>for <00:00:06.660>the <00:00:06.787>buildout.

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<v Cassidy>Same <00:00:08.300>economy, <00:00:09.168>both <00:00:09.413>sides <00:00:09.726>moving <00:00:10.027>at <00:00:10.192>once.

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<v Cassidy>If <00:00:12.420>you're <00:00:12.592>just <00:00:12.790>joining: <00:00:13.600>IREN's <00:00:14.427>AI-cloud <00:00:15.096>expansion <00:00:15.680>is <00:00:15.860>one <00:00:15.947>of <00:00:16.040>the <00:00:16.213>cleanest <00:00:16.610>signals <00:00:17.013>we've <00:00:17.280>got <00:00:17.573>of <00:00:17.800>GPU <00:00:18.231>capacity <00:00:18.890>turning <00:00:19.552>into <00:00:19.731>contracted <00:00:20.300>revenue.

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<v Cassidy>The <00:00:21.640>company <00:00:21.984>says <00:00:22.267>it <00:00:22.377>signed <00:00:22.800>2.8 <00:00:23.490>billion <00:00:23.900>dollars <00:00:24.373>in <00:00:24.533>multi-year <00:00:25.173>AI <00:00:25.493>cloud <00:00:25.824>contracts

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<v Cassidy>raised <00:00:27.260>its <00:00:27.520>2026 <00:00:28.373>AI <00:00:28.707>cloud <00:00:29.200>ARR <00:00:29.737>target <00:00:30.133>above <00:00:30.560>4 <00:00:30.780>billion

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<v Cassidy>and <00:00:31.808>laid <00:00:32.020>out <00:00:32.142>capacity <00:00:32.686>growth <00:00:32.992>from <00:00:33.170>roughly <00:00:33.600>3 <00:00:33.820>megawatts <00:00:34.427>of <00:00:34.544>self-built <00:00:35.173>AI <00:00:35.520>cloud <00:00:36.080>to <00:00:36.480>480 <00:00:37.400>megawatts <00:00:37.888>scheduled <00:00:38.340>for <00:00:38.560>2026 — <00:00:40.016>with <00:00:40.240>1.2 <00:00:40.860>gigawatts

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<v Cassidy>targeted <00:00:41.940>for <00:00:42.160>2027.

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<v Bill>This <00:00:44.667>is <00:00:45.067>AI <00:00:45.507>Daily <00:00:45.907>Briefing — <00:00:46.840>and <00:00:47.053>today, <00:00:47.780>one <00:00:48.377>number <00:00:48.810>finally <00:00:49.509>landed <00:00:49.960>where <00:00:50.240>I've <00:00:50.432>been <00:00:50.613>pointing <00:00:51.140>all <00:00:51.536>week.

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<v Bill>Let's <00:00:52.760>start <00:00:52.992>with <00:00:53.200>Gemini <00:00:53.760>3.6 <00:00:54.840>Flash.

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<v Bill>Sixty-five <00:00:56.700>percent <00:00:57.180>off <00:00:57.427>token <00:00:57.840>cost <00:00:58.240>on <00:00:58.464>long-horizon <00:00:59.340>engineering <00:01:00.107>tasks.

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<v Bill>That's <00:01:01.689>a <00:01:01.809>per-task <00:01:02.569>price <00:01:03.038>change <00:01:03.502>on <00:01:03.629>the <00:01:03.769>exact <00:01:04.240>workload <00:01:04.889>agents <00:01:05.433>chew <00:01:05.739>through, <00:01:06.629>not <00:01:06.857>just <00:01:07.089>another <00:01:07.429>leaderboard <00:01:08.151>headline.

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<v Bill>IREN <00:01:10.409>AI <00:01:10.796>cloud <00:01:11.201>expansion <00:01:11.949>isn't <00:01:12.505>over.

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<v Bill>Follow <00:01:13.902>us <00:01:14.053>wherever <00:01:14.429>you're <00:01:14.617>listening, <00:01:15.409>and <00:01:15.549>the <00:01:15.657>next <00:01:15.909>chapter <00:01:16.396>comes <00:01:16.782>to <00:01:16.969>you.

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<v Cassidy>VentureBeat, <00:01:18.877>with <00:01:19.069>Carl <00:01:19.373>Franzen:

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<v Quote>Google <00:01:22.899>DeepMind <00:01:23.371>today <00:01:23.633>released <00:01:24.184>three <00:01:24.531>new <00:01:24.831>proprietary <00:01:25.624>AI <00:01:25.948>models <00:01:26.371>it <00:01:26.579>says <00:01:26.811>are <00:01:26.971>among <00:01:27.211>its <00:01:27.411>most <00:01:27.798>token-efficient <00:01:28.671>yet: <00:01:29.560>Gemini <00:01:30.051>3.6 <00:01:30.771>Flash

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<v Quote>Gemini <00:01:32.131>3.5 <00:01:32.918>Flash-Lite

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<v Quote>and <00:01:34.120>Gemini <00:01:34.611>3.5 <00:01:35.491>Flash <00:01:35.958>Cyber.

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<v Quote>The <00:01:37.057>models <00:01:37.391>aim <00:01:37.598>to <00:01:37.699>make <00:01:38.024>AI <00:01:38.348>agents <00:01:38.760>faster, <00:01:39.541>smarter, <00:01:40.091>and <00:01:40.261>cheaper <00:01:40.664>at <00:01:40.824>scale.

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<v Bill>Okay, <00:01:42.020>the <00:01:42.126>number <00:01:42.520>I <00:01:42.693>actually <00:01:43.184>care <00:01:43.507>about: <00:01:44.800>Gemini <00:01:45.440>3.6 <00:01:46.507>Flash, <00:01:47.340>$1.50 <00:01:48.840>per <00:01:49.010>million <00:01:49.427>input <00:01:49.840>tokens, <00:01:50.800>$7.50 <00:01:52.491>output.

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<v Bill>Flash-Lite <00:01:54.707>drops <00:01:55.093>to <00:01:55.246>thirty <00:01:55.600>cents <00:01:56.107>in, <00:01:56.940>two-fifty <00:01:57.720>out.

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<v Bill>That's <00:01:59.160>the <00:01:59.360>delta <00:01:59.792>that <00:02:00.000>changes <00:02:00.653>build-versus-buy <00:02:02.096>math <00:02:02.600>for <00:02:03.029>anyone <00:02:03.490>running <00:02:03.920>agents <00:02:04.480>at <00:02:04.720>volume.

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<v Cassidy>And <00:02:06.297>notice <00:02:06.672>what <00:02:06.860>VentureBeat's <00:02:07.493>piece <00:02:07.792>does <00:02:08.000>not <00:02:08.272>have <00:02:08.453>attached: <00:02:09.480>a <00:02:09.576>technical <00:02:10.149>report.

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<v Cassidy>Sixty-five <00:02:11.900>percent <00:02:12.384>cost <00:02:12.700>cut <00:02:12.933>on <00:02:13.104>long-horizon <00:02:13.887>engineering <00:02:14.493>tasks, <00:02:15.417>quoted <00:02:15.796>straight <00:02:16.112>from <00:02:16.260>the <00:02:16.384>blog <00:02:16.720>post.

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<v Cassidy>Until <00:02:17.960>someone <00:02:18.304>runs <00:02:18.587>it, <00:02:19.136>that's <00:02:19.387>still <00:02:19.560>a <00:02:19.646>vendor <00:02:19.987>claim.

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<v Bill>Right, <00:02:21.020>and <00:02:21.320>I'm <00:02:21.580>not <00:02:21.840>spiking <00:02:22.260>the <00:02:22.400>ball <00:02:22.773>on <00:02:22.933>it.

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<v Bill>The <00:02:24.080>65% <00:02:25.120>is <00:02:25.320>a <00:02:25.413>headline <00:02:25.897>figure <00:02:26.293>on <00:02:26.427>their <00:02:26.624>benchmark, <00:02:27.568>with <00:02:27.787>their <00:02:28.032>task <00:02:28.553>definition.

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<v Bill>What <00:02:30.240>I <00:02:30.384>want <00:02:30.720>is <00:02:30.944>that <00:02:31.307>curve <00:02:31.920>on <00:02:32.133>my <00:02:32.338>workload — <00:02:33.380>the <00:02:33.520>ten-hour <00:02:34.080>agent <00:02:34.580>run <00:02:34.947>where <00:02:35.387>costs <00:02:36.009>compound.

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<v Cassidy>And <00:02:37.787>there's <00:02:38.040>still <00:02:38.280>a <00:02:38.400>3.5 <00:02:39.280>Pro <00:02:39.589>coming, <00:02:40.507>so <00:02:40.600>the <00:02:40.747>whole <00:02:40.960>cost-performance <00:02:41.886>ladder <00:02:42.213>is <00:02:42.366>moving <00:02:42.693>under <00:02:42.980>our <00:02:43.120>feet.

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<v Cassidy>You <00:02:44.280>can't <00:02:44.520>price <00:02:44.760>a <00:02:44.840>build <00:02:45.084>decision <00:02:45.480>against <00:02:45.800>a <00:02:45.909>lineup <00:02:46.336>that <00:02:46.460>isn't <00:02:46.752>done <00:02:46.942>shipping.

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<v Bill>That's <00:02:49.240>the <00:02:49.424>trap, <00:02:49.863>though.

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<v Bill>Somebody's <00:02:51.240>gonna <00:02:51.504>sign <00:02:51.880>a <00:02:52.060>two-year <00:02:52.624>inference <00:02:53.251>commitment <00:02:53.808>this <00:02:54.064>week <00:02:54.400>on <00:02:54.640>a <00:02:54.754>number <00:02:55.008>from <00:02:55.280>a <00:02:55.413>model <00:02:55.712>that'll <00:02:56.000>be <00:02:56.217>superseded <00:02:56.933>by <00:02:57.120>August.

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<v Cassidy>Here's <00:02:59.282>Shane <00:02:59.629>Snider <00:03:00.242>at <00:03:00.397>Data <00:03:00.635>Center <00:03:00.957>Knowledge:

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<v Quote>The <00:03:04.302>company <00:03:04.630>said <00:03:04.868>recent <00:03:05.214>contracts <00:03:05.912>include <00:03:06.306>customer <00:03:06.762>prepayments <00:03:07.586>covering <00:03:07.982>roughly <00:03:08.422>45% <00:03:09.435>of <00:03:09.562>the <00:03:09.742>GPU <00:03:10.162>capital <00:03:10.637>expenditures <00:03:11.375>associated <00:03:12.134>with <00:03:12.289>those

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<v Quote>deployments <00:03:13.515>reducing <00:03:14.062>IREN's <00:03:14.482>net <00:03:14.702>funding <00:03:15.044>requirements.

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<v Quote>An <00:03:16.542>IREN <00:03:16.877>spokesperson <00:03:17.590>told <00:03:17.846>Data <00:03:18.148>Center <00:03:18.478>Knowledge <00:03:19.014>that <00:03:19.190>such <00:03:19.462>prepayments <00:03:20.182>are <00:03:20.502>“an <00:03:20.711>increasingly <00:03:21.359>common <00:03:21.752>feature <00:03:22.155>of <00:03:22.369>AI <00:03:22.635>cloud <00:03:22.974>contracts,” <00:03:24.066>suggesting

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<v Quote>that <00:03:24.718>customers <00:03:25.242>are <00:03:25.346>committing <00:03:25.842>capital <00:03:26.322>earlier <00:03:26.822>to <00:03:27.028>secure <00:03:27.382>access <00:03:27.889>to <00:03:27.999>scarce <00:03:28.475>AI <00:03:28.802>compute.

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<v Cassidy>So <00:03:29.922>the <00:03:30.062>IREN <00:03:30.416>number <00:03:30.686>came <00:03:30.995>in: <00:03:31.622>$2.8 <00:03:32.322>billion <00:03:33.075>in <00:03:33.242>new <00:03:33.489>multiyear <00:03:34.046>contracts

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<v Cassidy>and <00:03:35.282>the <00:03:35.390>year-end <00:03:35.929>AI <00:03:36.209>cloud <00:03:36.682>ARR <00:03:37.159>target <00:03:37.569>moved <00:03:37.950>from <00:03:38.182>$3.7 <00:03:39.052>billion <00:03:39.955>to <00:03:40.254>more <00:03:40.398>than <00:03:40.542>$4 <00:03:40.882>billion.

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<v Cassidy>This <00:03:42.489>is <00:03:42.582>the <00:03:42.748>follow-on <00:03:43.289>to <00:03:43.362>the <00:03:43.491>demand <00:03:43.946>question <00:03:44.355>we've <00:03:44.574>been <00:03:44.742>chewing <00:03:45.102>on <00:03:45.302>all <00:03:45.486>week.

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<v Bill>And <00:03:46.702>the <00:03:46.862>detail <00:03:47.454>that <00:03:47.653>actually <00:03:48.282>matters <00:03:48.915>is <00:03:49.411>buried <00:03:49.915>three <00:03:50.482>grafs <00:03:51.150>down: <00:03:52.598>customers <00:03:53.202>prepaying <00:03:53.942>about <00:03:54.302>45% <00:03:55.209>of <00:03:55.282>the <00:03:55.522>GPU <00:03:56.182>capex <00:03:57.129>up <00:03:57.395>front.

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<v Bill>The <00:03:58.702>AI <00:03:59.102>labs <00:03:59.482>are <00:03:59.715>co-investing <00:04:00.435>to <00:04:00.622>lock <00:04:01.022>in <00:04:01.271>capacity.

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<v Cassidy>Right, <00:04:02.814>that's <00:04:03.042>the <00:04:03.158>financing <00:04:03.715>model <00:04:04.030>Data <00:04:04.268>Center <00:04:04.590>Knowledge <00:04:05.049>is <00:04:05.146>treating <00:04:05.555>as <00:04:05.682>the <00:04:05.795>template.

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<v Cassidy>The <00:04:07.068>tenant <00:04:07.399>fronts <00:04:07.788>nearly <00:04:08.126>half <00:04:08.402>the <00:04:08.529>build, <00:04:09.315>so <00:04:09.502>IREN <00:04:09.879>raises <00:04:10.286>less <00:04:10.569>on <00:04:10.662>its <00:04:10.822>own <00:04:10.992>balance <00:04:11.382>sheet.

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<v Cassidy>Pay <00:04:12.402>the <00:04:12.542>capex <00:04:13.089>early, <00:04:13.562>get <00:04:14.002>the <00:04:14.122>compute.

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<v Bill>Which <00:04:15.662>changes <00:04:16.262>the <00:04:16.435>whole <00:04:16.775>speculative-capex <00:04:18.729>story.

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<v Bill>IREN <00:04:20.682>isn't <00:04:20.986>building <00:04:21.369>on <00:04:21.462>a <00:04:21.614>hope <00:04:22.102>and <00:04:22.262>a <00:04:22.435>lease — <00:04:23.438>they've <00:04:23.642>got <00:04:23.879>signed <00:04:24.310>contracts <00:04:25.142>and <00:04:25.362>prepayments <00:04:26.119>before <00:04:26.482>the <00:04:26.609>racks <00:04:27.022>go <00:04:27.289>in.

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<v Bill>Different <00:04:28.942>risk <00:04:29.362>profile <00:04:30.110>from <00:04:30.342>the <00:04:30.542>pre-revenue <00:04:31.422>infra <00:04:31.902>rounds <00:04:32.422>I <00:04:32.526>keep <00:04:32.878>side-eyeing.

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<v Cassidy>From <00:04:34.844>SynBioBeta:

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<v Quote>Chai <00:04:36.531>Discovery <00:04:37.435>a <00:04:37.555>company <00:04:37.895>focused <00:04:38.368>on <00:04:38.522>engineering <00:04:39.168>AI <00:04:39.504>models <00:04:39.935>for <00:04:40.015>the <00:04:40.123>discovery <00:04:40.582>of <00:04:40.695>new <00:04:40.931>molecules

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<v Quote>has <00:04:42.035>announced <00:04:42.515>a <00:04:42.675>$400M <00:04:43.435>Series <00:04:44.035>C <00:04:44.215>funding <00:04:44.688>round <00:04:45.062>aimed <00:04:45.622>at <00:04:45.724>accelerating <00:04:46.355>its <00:04:46.512>advancements <00:04:46.982>in <00:04:47.055>the <00:04:47.182>field.

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<v Quote>This <00:04:48.845>funding <00:04:49.248>round <00:04:49.782>which <00:04:49.972>values <00:04:50.335>the <00:04:50.445>company <00:04:50.822>at <00:04:50.915>$3.8 <00:04:51.695>billion

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<v Quote>was <00:04:52.995>led <00:04:53.195>by <00:04:53.422>Index <00:04:53.808>Ventures

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<v Quote>with <00:04:54.766>participation <00:04:55.467>from <00:04:55.655>Kleiner <00:04:56.055>Perkins

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<v Quote>Sequoia <00:04:57.255>Capital <00:04:57.827>Dimension

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<v Quote>and <00:04:58.935>several <00:04:59.408>existing <00:04:59.899>investors.

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<v Bill>Chai <00:05:01.751>Discovery: <00:05:02.767>$400 <00:05:03.607>million <00:05:04.236>Series <00:05:04.927>C, <00:05:05.487>$3.8 <00:05:06.507>billion <00:05:07.287>valuation, <00:05:08.234>Index <00:05:09.057>leading.

57
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<v Bill>And <00:05:10.439>here's <00:05:10.663>what <00:05:10.767>I <00:05:10.843>actually <00:05:11.175>want <00:05:11.394>to <00:05:11.527>know: <00:05:12.599>what's <00:05:12.839>that <00:05:13.047>$400 <00:05:13.707>million <00:05:14.476>priced <00:05:14.994>on?

58
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<v Bill>Because <00:05:16.247>a <00:05:16.391>drug-discovery <00:05:17.260>model <00:05:17.580>doesn't <00:05:17.991>bill <00:05:18.307>per <00:05:18.567>token <00:05:19.015>like <00:05:19.234>an <00:05:19.352>enterprise <00:05:20.087>agent.

59
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<v Bill>The <00:05:21.271>economics <00:05:21.867>are <00:05:21.978>completely <00:05:22.535>different — <00:05:23.547>you're <00:05:23.727>betting <00:05:24.060>on <00:05:24.223>discovery <00:05:24.816>outcomes

60
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<v Bill>on <00:05:26.047>a <00:05:26.158>molecule <00:05:26.759>that <00:05:26.956>clears <00:05:27.447>pre-clinical

61
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<v Bill>not <00:05:29.127>on <00:05:29.351>inference <00:05:29.987>run <00:05:30.247>rate.

62
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<v Cassidy>And <00:05:31.319>look <00:05:31.474>at <00:05:31.559>that <00:05:31.747>cap <00:05:31.994>table: <00:05:32.871>Sequoia, <00:05:33.647>Kleiner, <00:05:34.487>Bain, <00:05:35.340>Baillie <00:05:35.827>Gifford, <00:05:36.767>and <00:05:36.951>OpenAI's <00:05:37.660>still <00:05:37.980>in <00:05:38.119>from <00:05:38.297>earlier <00:05:38.727>rounds.

63
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<v Cassidy>The <00:05:39.983>customers <00:05:40.527>are <00:05:40.727>Eli <00:05:41.034>Lilly <00:05:41.407>and <00:05:41.607>Pfizer.

64
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<v Cassidy>That's <00:05:42.887>a <00:05:42.999>very <00:05:43.189>specific <00:05:43.727>set <00:05:43.900>of <00:05:44.060>hands <00:05:44.380>on <00:05:44.527>the <00:05:44.679>fine-tuning.

65
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<v Bill>Second <00:05:45.887>one <00:05:46.034>of <00:05:46.127>these <00:05:46.354>in <00:05:46.467>two <00:05:46.711>days, <00:05:47.167>too.

66
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<v Bill>Same <00:05:48.291>question <00:05:48.727>I <00:05:48.867>had <00:05:49.074>on <00:05:49.147>the <00:05:49.271>materials-discovery <00:05:50.554>raise: <00:05:51.187>science-compute <00:05:52.887>funding <00:05:53.540>keeps <00:05:54.037>getting <00:05:54.327>valued <00:05:54.871>like <00:05:55.287>SaaS

67
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<v Bill>and <00:05:56.594>it <00:05:56.695>just <00:05:56.947>isn't <00:05:57.227>the <00:05:57.351>same <00:05:57.707>bet.

68
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<v Cassidy>Nina <00:05:59.027>Achadjian's <00:05:59.740>quote <00:06:00.060>is <00:06:00.263>pure <00:06:00.697>founder-praise <00:06:01.584>boilerplate — <00:06:02.847>technical <00:06:03.251>brilliance, <00:06:03.803>commercial <00:06:04.237>clarity.

69
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<v Cassidy>What <00:06:05.767>I <00:06:05.881>wanted <00:06:06.119>from <00:06:06.267>the <00:06:06.397>release <00:06:06.947>was <00:06:07.187>who <00:06:07.447>owns <00:06:07.787>the <00:06:07.900>model <00:06:08.227>weights <00:06:08.679>when <00:06:08.876>Pfizer's <00:06:09.415>data <00:06:09.655>goes <00:06:09.954>in <00:06:10.207>and <00:06:10.447>a <00:06:10.591>candidate <00:06:10.860>comes <00:06:11.207>out.

70
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<v Cassidy>Cisco <00:06:12.869>Blogs, <00:06:13.397>with <00:06:13.669>Amin <00:06:13.969>Karbasi:

71
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<v Quote>Today <00:06:17.579>Cisco <00:06:17.799>is <00:06:17.953>introducing <00:06:18.546>Antares

72
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<v Quote>a <00:06:19.632>family <00:06:19.933>of <00:06:20.048>security <00:06:20.599>small <00:06:20.919>language <00:06:21.415>models <00:06:21.986>(SLMs) <00:06:23.111>purpose-built <00:06:23.726>for <00:06:23.926>one <00:06:24.013>of <00:06:24.106>the <00:06:24.286>hardest

73
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<v Quote>most <00:06:25.250>time-consuming <00:06:26.126>and <00:06:26.362>expensive <00:06:26.919>problems <00:06:27.373>in <00:06:27.497>security: <00:06:28.679>pinpointing <00:06:29.293>where <00:06:29.493>known <00:06:29.876>vulnerabilities <00:06:30.693>exist <00:06:31.060>within <00:06:31.346>a <00:06:31.490>codebase.

74
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<v Quote>We <00:06:32.966>are <00:06:33.082>releasing <00:06:33.646>two <00:06:33.853>of <00:06:33.946>these <00:06:34.215>models—Antares-350M <00:06:36.526>and <00:06:36.786>Antares-1B—as <00:06:38.690>open-weight <00:06:39.255>models <00:06:39.726>now <00:06:39.954>available <00:06:40.439>to <00:06:40.566>the <00:06:40.676>broader <00:06:41.082>community <00:06:41.666>on <00:06:41.866>Hugging

75
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<v Quote>Face.

76
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<v Cassidy>Cisco <00:06:43.585>dropped <00:06:43.995>Antares <00:06:44.562>today — <00:06:45.435>two <00:06:45.679>open-weight <00:06:46.219>security <00:06:46.644>models

77
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<v Cassidy>350M <00:06:48.215>and <00:06:48.495>1B <00:06:49.423>both <00:06:49.668>on <00:06:49.815>Hugging <00:06:50.175>Face

78
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<v Cassidy>with <00:06:50.915>a <00:06:51.048>named <00:06:51.295>team <00:06:51.655>and <00:06:51.895>a <00:06:52.039>technical <00:06:52.295>write-up <00:06:52.637>attached.

79
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<v Cassidy>After <00:06:54.275>the <00:06:54.383>week <00:06:54.628>we've <00:06:54.895>had, <00:06:55.562>an <00:06:55.684>actual <00:06:56.162>model <00:06:56.545>release <00:06:56.927>with <00:06:57.126>receipts <00:06:57.748>feels <00:06:58.084>almost <00:06:58.552>quaint.

80
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<v Bill>And <00:06:59.935>the <00:07:00.015>task <00:07:00.468>is <00:07:00.632>narrow <00:07:01.055>on <00:07:01.305>purpose: <00:07:02.735>pinpoint <00:07:03.442>where <00:07:03.815>a <00:07:03.922>known <00:07:04.312>vulnerability <00:07:05.117>actually <00:07:05.722>lives <00:07:06.362>in <00:07:06.715>a <00:07:06.911>codebase.

81
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<v Bill>That's <00:07:08.675>the <00:07:08.807>expensive, <00:07:09.605>tedious <00:07:10.159>part <00:07:10.482>Cisco <00:07:10.895>says <00:07:11.284>nobody <00:07:11.762>wants <00:07:12.122>to <00:07:12.255>do <00:07:12.495>by <00:07:12.767>hand.

82
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<v Cassidy>What <00:07:14.575>I <00:07:14.719>like: <00:07:15.199>they <00:07:15.815>say <00:07:15.988>these <00:07:16.303>beat <00:07:16.541>bigger <00:07:16.895>closed <00:07:17.415>and <00:07:17.599>open <00:07:17.924>models <00:07:18.362>on <00:07:18.463>that <00:07:18.695>one <00:07:18.911>task <00:07:19.322>at <00:07:19.455>a <00:07:19.579>fraction <00:07:19.962>of <00:07:20.035>the <00:07:20.207>cost

83
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<v Cassidy>and <00:07:21.231>they're <00:07:21.415>small <00:07:21.649>enough <00:07:21.908>to <00:07:22.055>run <00:07:22.245>locally.

84
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<v Cassidy>So <00:07:23.555>you're <00:07:23.735>not <00:07:23.899>shipping <00:07:24.271>your <00:07:24.381>source <00:07:24.703>code <00:07:24.922>to <00:07:25.019>somebody's <00:07:25.608>cloud <00:07:25.828>to <00:07:25.983>find <00:07:26.191>your <00:07:26.315>own <00:07:26.591>bugs.

85
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<v Bill>That <00:07:28.148>local <00:07:28.495>part <00:07:28.922>is <00:07:29.175>the <00:07:29.391>tell.

86
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<v Bill>A <00:07:30.735>1B <00:07:31.295>model <00:07:31.748>on <00:07:31.887>your <00:07:32.095>own <00:07:32.397>hardware

87
00:07:33.272 --> 00:07:40.575
<v Bill>scoped <00:07:33.695>to <00:07:33.915>one <00:07:34.295>job — <00:07:35.391>that's <00:07:35.575>a <00:07:35.655>different <00:07:36.082>agent-security <00:07:37.035>bet <00:07:37.247>from <00:07:37.415>the <00:07:37.635>off-script-reasoning <00:07:38.865>pitches <00:07:39.268>we <00:07:39.415>heard <00:07:39.679>yesterday.

88
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<v Bill>This <00:07:41.175>one's <00:07:41.428>small <00:07:41.729>enough <00:07:41.967>that <00:07:42.135>you <00:07:42.275>can <00:07:42.388>actually <00:07:42.895>reason <00:07:43.428>about <00:07:43.735>its <00:07:43.915>failure <00:07:44.428>modes.

89
00:07:45.486 --> 00:07:51.135
<v Cassidy>Now <00:07:46.065>compare <00:07:46.447>that <00:07:46.607>with <00:07:46.755>the <00:07:46.879>demo <00:07:47.202>drops <00:07:47.583>this <00:07:47.839>week, <00:07:48.508>where <00:07:48.595>the <00:07:48.703>technical <00:07:49.192>report <00:07:49.588>is <00:07:49.755>nowhere <00:07:50.202>to <00:07:50.282>be <00:07:50.428>found.

90
00:07:51.282 --> 00:07:55.455
<v Cassidy>Cisco <00:07:52.063>gave <00:07:52.308>us <00:07:52.475>weights, <00:07:53.335>a <00:07:53.431>benchmark, <00:07:54.468>named <00:07:54.815>authors.

91
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<v Cassidy>Hold <00:07:56.287>that <00:07:56.468>up <00:07:56.628>as <00:07:56.755>the <00:07:56.895>bar.

92
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<v Bill>I'll <00:07:59.335>believe <00:07:59.655>the <00:07:59.839>benchmark <00:08:00.431>when <00:08:00.548>it <00:08:00.717>survives <00:08:01.295>a <00:08:01.455>messy <00:08:01.951>real <00:08:02.463>repo, <00:08:03.835>but <00:08:04.108>being <00:08:04.623>able <00:08:04.868>to <00:08:05.046>download <00:08:05.642>it <00:08:05.755>and <00:08:06.015>check <00:08:06.495>is <00:08:06.695>the <00:08:06.855>whole <00:08:07.135>point.

93
00:08:07.882 --> 00:08:12.255
<v Bill>It's <00:08:08.545>cheaper <00:08:08.975>to <00:08:09.215>distrust, <00:08:10.455>and <00:08:10.655>I <00:08:10.783>mean <00:08:11.023>that <00:08:11.268>as <00:08:11.415>a <00:08:11.520>compliment.

94
00:08:12.856 --> 00:08:19.551
<v Cassidy>Inside <00:08:13.236>Privacy <00:08:13.709>is <00:08:13.860>tracking <00:08:14.264>this <00:08:14.516>one, <00:08:14.888>with <00:08:15.056>Laura <00:08:15.356>Kim, <00:08:16.140>Alexandra <00:08:16.596>Remick, <00:08:17.196>and <00:08:17.336>Munseong <00:08:17.896>Park <00:08:18.296>on <00:08:18.496>the <00:08:18.669>byline.

95
00:08:19.551 --> 00:08:28.297
<v Bill>Connecticut <00:08:20.994>signed <00:08:21.417>a <00:08:21.566>comprehensive <00:08:22.644>AI <00:08:23.113>bill <00:08:23.545>back <00:08:23.790>in <00:08:23.997>May, <00:08:24.897>and <00:08:25.057>now <00:08:25.193>they're <00:08:25.401>extending <00:08:26.030>it <00:08:26.164>to <00:08:26.285>subscription <00:08:27.195>services.

96
00:08:28.430 --> 00:08:36.057
<v Bill>So <00:08:28.737>the <00:08:28.937>same <00:08:29.337>law <00:08:29.625>that <00:08:29.897>touches <00:08:30.548>safety <00:08:31.310>is <00:08:31.781>reaching <00:08:32.201>into <00:08:32.526>cancel <00:08:33.044>flows <00:08:33.697>and <00:08:34.121>auto-renewals.

97
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<v Cassidy>Here's <00:08:36.257>the <00:08:36.425>confusion <00:08:36.897>I <00:08:36.985>keep <00:08:37.223>hammering: <00:08:38.277>one <00:08:38.521>bill <00:08:38.827>bundles <00:08:39.230>model <00:08:39.577>safety <00:08:40.105>with <00:08:40.350>consumer-protection <00:08:41.386>subscription <00:08:42.057>rules.

98
00:08:42.924 --> 00:08:47.577
<v Cassidy>Those <00:08:43.297>are <00:08:43.477>two <00:08:43.727>totally <00:08:44.257>different <00:08:44.675>regulatory <00:08:45.310>problems <00:08:45.777>under <00:08:46.057>one <00:08:46.353>signature.

99
00:08:47.617 --> 00:08:53.897
<v Bill>And <00:08:47.757>for <00:08:47.874>anyone <00:08:48.261>building <00:08:48.670>on <00:08:48.857>top <00:08:49.150>of <00:08:49.310>these <00:08:49.753>APIs, <00:08:50.985>that's <00:08:51.457>the <00:08:51.657>part <00:08:52.009>that <00:08:52.217>actually <00:08:52.977>lands.

100
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<v Bill>Your <00:08:54.355>compliance <00:08:55.007>surface <00:08:55.577>just <00:08:55.961>grew <00:08:56.337>a <00:08:56.512>subscription-disclosure <00:08:57.882>obligation <00:08:58.617>that <00:08:58.997>has <00:08:59.247>nothing <00:08:59.790>to <00:08:59.977>do <00:09:00.185>with <00:09:00.397>the <00:09:00.537>model.

101
00:09:01.186 --> 00:09:08.617
<v Cassidy>Covington's <00:09:02.446>Inside <00:09:02.937>Privacy <00:09:03.537>has <00:09:03.677>the <00:09:03.833>breakdown — <00:09:04.957>Kim, <00:09:05.507>Remick, <00:09:05.917>and <00:09:06.057>Park <00:09:06.423>walked <00:09:06.717>through <00:09:06.877>the <00:09:06.997>May <00:09:07.257>27 <00:09:07.877>signing.

102
00:09:08.777 --> 00:09:13.177
<v Cassidy>If <00:09:09.117>you <00:09:09.241>ship <00:09:09.524>in <00:09:09.617>Connecticut, <00:09:10.185>read <00:09:10.409>that <00:09:10.585>this <00:09:10.841>week, <00:09:11.477>not <00:09:11.705>just <00:09:11.917>the <00:09:12.023>launch <00:09:12.353>headlines.

103
00:09:13.809 --> 00:09:17.089
<v Cassidy>If <00:09:13.929>you <00:09:14.083>follow <00:09:14.422>AI <00:09:14.742>Daily <00:09:15.062>Briefing <00:09:15.589>for <00:09:15.669>the <00:09:15.798>policy <00:09:16.278>stakes

104
00:09:17.169 --> 00:09:23.489
<v Cassidy>try <00:09:17.473>Anthropic <00:09:18.102>Pentagon <00:09:18.636>Watch — <00:09:19.609>a <00:09:19.702>daily <00:09:20.022>briefing <00:09:20.529>on <00:09:20.737>Anthropic's <00:09:21.462>fight <00:09:21.745>with <00:09:21.829>the <00:09:22.022>DoD <00:09:22.577>over <00:09:22.838>Claude

105
00:09:23.569 --> 00:09:26.689
<v Cassidy>military <00:09:24.342>AI <00:09:24.709>use <00:09:25.453>autonomous <00:09:25.969>weapons

106
00:09:26.749 --> 00:09:28.369
<v Cassidy>and <00:09:26.976>procurement <00:09:27.556>blacklisting.

107
00:09:28.577 --> 00:09:31.489
<v Cassidy>Find <00:09:29.462>it <00:09:29.613>wherever <00:09:30.009>you <00:09:30.163>listen <00:09:30.422>to <00:09:30.618>podcasts.

108
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<v Cassidy>What <00:09:32.465>we're <00:09:32.642>watching <00:09:33.078>next: <00:09:33.558>whether <00:09:34.238>IREN <00:09:34.646>hits <00:09:34.878>its <00:09:35.030>more-than-four-billion-dollar <00:09:36.651>AI <00:09:36.985>cloud <00:09:37.458>ARR <00:09:37.958>target <00:09:38.598>by <00:09:38.938>the <00:09:39.058>end <00:09:39.265>of <00:09:39.398>2026.

109
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<v Cassidy>You'll <00:09:41.286>find <00:09:41.518>links <00:09:41.745>to <00:09:41.838>every <00:09:42.105>story <00:09:42.491>we <00:09:42.628>covered <00:09:42.878>today <00:09:43.131>in <00:09:43.258>the <00:09:43.350>show <00:09:43.558>notes.

110
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<v Cassidy>If <00:09:44.718>one <00:09:44.872>caught <00:09:45.110>your <00:09:45.294>attention, <00:09:46.134>that's <00:09:46.305>where <00:09:46.465>to <00:09:46.578>dig <00:09:46.838>in.

111
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<v Cassidy>That's <00:09:48.091>AI <00:09:48.411>Daily <00:09:48.718>Briefing <00:09:49.118>for <00:09:49.318>today.

112
00:09:49.958 --> 00:09:52.118
<v Cassidy>This <00:09:50.651>is <00:09:50.798>a <00:09:50.888>Lantern <00:09:51.338>Podcast.