WEBVTT

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<v Cassidy>Nvidia <00:00:00.440>spent <00:00:00.680>all <00:00:00.864>week <00:00:01.160>funding <00:00:01.467>other <00:00:01.646>people's <00:00:02.048>data <00:00:02.300>centers.

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<v Cassidy>Today, <00:00:04.016>they <00:00:04.137>signed <00:00:04.507>their <00:00:04.680>own <00:00:04.880>lease — <00:00:05.867>up <00:00:05.973>to <00:00:06.120>fifty <00:00:06.370>billion <00:00:06.770>dollars, <00:00:07.253>on <00:00:07.387>their <00:00:07.560>own <00:00:07.747>paper, <00:00:08.213>in <00:00:08.413>Texas.

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<v Bill>This <00:00:10.880>is <00:00:11.280>AI <00:00:11.840>Daily <00:00:12.307>Briefing.

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<v Bill>And <00:00:13.540>the <00:00:13.664>same <00:00:13.980>day <00:00:14.180>the <00:00:14.320>chipmaker <00:00:14.940>becomes <00:00:15.400>a <00:00:15.520>landlord, <00:00:16.592>they <00:00:16.784>drop <00:00:17.120>five <00:00:17.510>billion <00:00:18.053>in <00:00:18.288>cash <00:00:18.880>on <00:00:19.080>a <00:00:19.240>lab <00:00:19.680>with <00:00:20.080>no <00:00:20.310>product <00:00:20.940>and <00:00:21.467>no <00:00:21.760>publications.

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<v Bill>One <00:00:23.467>of <00:00:23.560>those <00:00:23.820>numbers <00:00:24.360>I <00:00:24.573>trust.

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<v Bill>One <00:00:25.920>tap <00:00:26.213>on <00:00:26.389>follow, <00:00:26.920>and <00:00:27.067>we'll <00:00:27.227>be <00:00:27.344>back <00:00:27.627>in <00:00:27.712>your <00:00:27.904>ears <00:00:28.217>before <00:00:28.600>you <00:00:28.752>know <00:00:28.960>it.

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<v Cassidy>From <00:00:30.753>CryptoBriefing:

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<v Quote>Nvidia <00:00:32.747>just <00:00:33.049>locked <00:00:33.403>in <00:00:33.583>one <00:00:33.670>of <00:00:33.763>the <00:00:33.943>largest <00:00:34.411>data <00:00:34.637>center <00:00:34.910>deals <00:00:35.323>ever.

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<v Quote>The <00:00:36.333>company <00:00:36.717>signed <00:00:36.992>leases <00:00:37.443>worth <00:00:37.696>up <00:00:37.830>to <00:00:38.003>$50 <00:00:38.623>billion <00:00:39.363>for <00:00:39.543>Hut <00:00:39.803>8’s <00:00:40.180>Beacon <00:00:40.576>Point <00:00:40.976>AI <00:00:41.307>data <00:00:41.597>center <00:00:41.883>campus <00:00:42.416>in <00:00:42.563>Nueces <00:00:43.060>County

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<v Quote>Texas <00:00:44.443>a <00:00:44.585>facility <00:00:45.127>designed <00:00:45.510>to <00:00:45.616>house <00:00:45.936>hundreds <00:00:46.416>of <00:00:46.571>thousands <00:00:47.030>of <00:00:47.123>its <00:00:47.303>own <00:00:47.536>graphics <00:00:48.021>processing <00:00:48.670>units.

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<v Cassidy>Remember <00:00:49.733>the <00:00:49.837>question <00:00:50.233>I <00:00:50.321>kept <00:00:50.553>circling — <00:00:51.673>was <00:00:51.862>Nvidia's <00:00:52.409>guarantee <00:00:52.953>for <00:00:53.137>OpenAI's <00:00:53.782>campus <00:00:54.273>a <00:00:54.393>one-off <00:00:54.900>favor, <00:00:55.820>or <00:00:55.933>was <00:00:56.140>it <00:00:56.233>a <00:00:56.340>pivot?

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<v Cassidy>The <00:00:57.693>Hut <00:00:57.953>8 <00:00:58.161>deal <00:00:58.403>answers <00:00:58.833>it.

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<v Cassidy>Nvidia's <00:01:00.133>the <00:01:00.243>signing <00:01:00.639>tenant <00:01:00.993>now: <00:01:01.873>704 <00:01:02.733>megawatts <00:01:03.211>contracted, <00:01:03.913>$19.6 <00:01:04.833>billion <00:01:05.489>base, <00:01:06.053>and <00:01:06.380>up <00:01:06.460>to <00:01:06.593>$50 <00:01:07.003>billion <00:01:07.665>over <00:01:07.843>fifteen <00:01:08.273>years <00:01:08.700>on <00:01:08.793>its <00:01:08.953>own <00:01:09.166>paper.

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<v Cassidy>Nvidia <00:01:11.025>went <00:01:11.185>from <00:01:11.377>chip <00:01:11.695>supplier <00:01:12.246>to <00:01:12.406>lease <00:01:12.721>guarantor, <00:01:13.693>and <00:01:13.933>now <00:01:14.184>landlord.

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<v Cassidy>Beacon <00:01:15.926>Point <00:01:16.220>in <00:01:16.313>Nueces <00:01:16.799>County <00:01:17.105>will <00:01:17.273>put <00:01:17.455>hundreds <00:01:17.980>of <00:01:18.081>thousands <00:01:18.540>of <00:01:18.653>its <00:01:18.873>own <00:01:19.153>GPUs <00:01:19.900>under <00:01:20.473>a <00:01:20.561>roof <00:01:20.806>it's <00:01:21.043>renting — <00:01:21.985>then <00:01:22.193>subleasing <00:01:22.886>to <00:01:23.013>the

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<v Cassidy>hyperscalers. <00:01:24.326>It's <00:01:24.953>a <00:01:25.043>balance-sheet <00:01:25.686>transformation <00:01:26.483>dressed <00:01:26.886>up <00:01:27.046>as <00:01:27.193>a <00:01:27.281>real-estate <00:01:27.860>story.

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<v Bill>And <00:01:28.465>here's <00:01:28.713>why <00:01:28.886>it <00:01:29.060>lands <00:01:29.433>for <00:01:29.660>me: <00:01:30.561>this <00:01:30.806>is <00:01:30.953>the <00:01:31.166>first <00:01:31.729>genuinely <00:01:32.649>committed <00:01:33.233>number <00:01:33.820>of <00:01:34.073>the <00:01:34.273>week.

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<v Bill>After <00:01:35.793>all <00:01:36.073>the <00:01:36.233>letters <00:01:36.566>of <00:01:36.753>intent <00:01:37.333>and <00:01:37.726>vague <00:01:38.273>interim-capacity <00:01:39.649>gaps, <00:01:40.700>there's <00:01:40.983>finally <00:01:41.553>a <00:01:41.729>line <00:01:42.193>item: <00:01:43.413>$26.6 <00:01:44.643>billion <00:01:45.649>base <00:01:46.102>across <00:01:46.553>the <00:01:46.740>whole <00:01:47.161>portfolio.

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<v Bill>And <00:01:48.945>they <00:01:49.143>secured <00:01:49.686>an <00:01:49.862>actual <00:01:50.553>AEP <00:01:51.500>Texas <00:01:52.086>interconnection <00:01:52.873>for <00:01:53.033>a <00:01:53.153>full <00:01:53.553>gigawatt <00:01:54.296>before <00:01:54.973>pouring <00:01:55.464>concrete.

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<v Bill>Power <00:01:57.153>first, <00:01:57.820>press <00:01:58.413>release <00:01:58.913>later.

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<v Bill>But <00:02:00.418>owning <00:02:00.781>the <00:02:00.921>campus <00:02:01.441>doesn't <00:02:01.821>fix <00:02:02.161>the <00:02:02.321>thing <00:02:02.561>I've <00:02:02.713>been <00:02:02.910>hammering <00:02:03.541>all <00:02:03.801>week.

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<v Bill>Nvidia's <00:02:05.561>still <00:02:06.001>the <00:02:06.181>one <00:02:06.414>fighting <00:02:06.881>for <00:02:07.041>the <00:02:07.361>HBM4 <00:02:08.388>queue — <00:02:09.581>and <00:02:09.721>now <00:02:09.993>they've <00:02:10.329>made <00:02:10.579>themselves <00:02:11.201>their <00:02:11.461>biggest <00:02:11.941>counterparty.

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<v Bill>The <00:02:13.712>landlord <00:02:14.341>and <00:02:14.592>supplier <00:02:15.241>are <00:02:15.501>the <00:02:15.641>same <00:02:16.021>company, <00:02:17.214>so <00:02:17.374>if <00:02:17.501>the <00:02:17.630>memory <00:02:18.121>pipeline <00:02:18.868>slips, <00:02:19.817>they're <00:02:20.014>on <00:02:20.185>both <00:02:20.521>sides <00:02:20.948>of <00:02:21.049>that <00:02:21.337>miss.

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<v Cassidy>From <00:02:23.141>Bitcoin <00:02:23.628>miner <00:02:24.041>to <00:02:24.308>AI <00:02:24.592>landlord <00:02:25.214>in <00:02:25.381>one <00:02:25.618>filing <00:02:26.054>cycle.

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<v Cassidy>Hut <00:02:27.561>8 <00:02:27.841>spent <00:02:28.121>years <00:02:28.548>building <00:02:28.828>power <00:02:29.181>and <00:02:29.291>cooling <00:02:29.681>for <00:02:29.847>mining <00:02:30.201>rigs, <00:02:31.021>and <00:02:31.108>it <00:02:31.214>turns <00:02:31.521>out <00:02:31.661>the <00:02:31.774>interconnection <00:02:32.501>was <00:02:32.701>the <00:02:32.814>moat <00:02:33.221>all <00:02:33.481>along.

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<v Cassidy>Bret <00:02:35.678>Kerr, <00:02:36.138>writing <00:02:36.585>in <00:02:36.686>Bret <00:02:36.974>Kerr:

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<v Quote>Safe <00:02:38.144>Superintelligence <00:02:39.031>has <00:02:39.264>no <00:02:39.441>product, <00:02:40.144>no <00:02:40.319>publications, <00:02:41.398>no <00:02:41.521>revenue, <00:02:42.451>and <00:02:42.611>somewhere <00:02:43.021>between <00:02:43.417>twenty <00:02:43.751>and <00:02:43.971>fifty <00:02:44.259>employees — <00:02:45.571>and <00:02:45.771>it <00:02:45.991>got <00:02:46.191>the <00:02:46.331>seat.

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<v Quote>NVIDIA <00:02:47.995>also <00:02:48.315>said, <00:02:48.704>in <00:02:48.861>writing, <00:02:49.563>that <00:02:49.744>it <00:02:49.891>entered <00:02:50.191>the <00:02:50.298>partnership <00:02:50.931>"after <00:02:51.339>obtaining <00:02:51.835>rare <00:02:52.171>access <00:02:52.683>into <00:02:52.851>the <00:02:53.021>company's <00:02:53.501>closely <00:02:53.901>guarded <00:02:54.304>research."

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<v Quote>Somebody <00:02:56.068>looked.

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<v Quote>Then <00:02:57.344>somebody <00:02:57.811>wrote <00:02:58.091>a <00:02:58.211>$5 <00:02:58.581>billion <00:02:59.278>check, <00:02:59.971>which <00:03:00.227>Bloomberg <00:03:00.771>first <00:03:01.033>reported <00:03:01.591>and <00:03:01.821>Reuters <00:03:02.224>corroborated, <00:03:03.331>and <00:03:03.508>opened <00:03:03.871>the <00:03:04.001>silicon <00:03:04.561>roadmap.

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<v Bill>So

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<v Bill>right <00:03:06.427>after <00:03:06.840>that <00:03:07.267>Texas <00:03:07.880>lease — <00:03:08.880>$50 <00:03:09.460>billion <00:03:10.547>in <00:03:10.840>Nvidia's <00:03:11.640>own <00:03:11.976>name — <00:03:13.100>the <00:03:13.208>same <00:03:13.470>company <00:03:14.006>writes <00:03:14.360>a <00:03:14.560>$5 <00:03:15.040>billion <00:03:15.976>cash <00:03:16.440>check <00:03:16.960>for <00:03:17.360>a <00:03:17.520>lab <00:03:17.944>with <00:03:18.280>no <00:03:18.530>product

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<v Bill>no <00:03:19.731>papers <00:03:20.680>no <00:03:20.920>revenue

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<v Bill>and <00:03:22.120>maybe <00:03:22.627>fifty <00:03:23.229>people.

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<v Cassidy>By <00:03:24.520>my <00:03:24.760>usual <00:03:25.080>standard <00:03:25.587>on <00:03:25.688>this <00:03:25.944>show, <00:03:26.568>that <00:03:26.820>screams <00:03:27.288>marketing: <00:03:28.413>no <00:03:28.560>technical <00:03:29.000>report, <00:03:29.933>no <00:03:30.136>demo, <00:03:31.032>just <00:03:31.200>a <00:03:31.297>closed <00:03:31.704>door <00:03:32.013>somebody <00:03:32.488>paid <00:03:32.733>to <00:03:32.920>open.

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<v Cassidy>But <00:03:34.248>Bret <00:03:34.504>Kerr <00:03:34.800>pulls <00:03:35.040>out <00:03:35.200>the <00:03:35.368>line <00:03:35.592>that <00:03:35.800>stops <00:03:36.280>me: <00:03:36.960>SSI <00:03:37.928>gets <00:03:38.160>a <00:03:38.264>seat <00:03:38.547>at <00:03:38.620>the <00:03:38.747>datapath <00:03:39.320>table.

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<v Bill>That's <00:03:40.800>the <00:03:40.984>part <00:03:41.288>that <00:03:41.542>survives <00:03:42.120>my <00:03:42.340>eyebrow <00:03:42.872>test, <00:03:43.551>honestly.

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<v Bill>Customers <00:03:45.460>get <00:03:45.720>allocation <00:03:46.560>and <00:03:46.720>a <00:03:46.813>press <00:03:47.147>quote.

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<v Bill>They <00:03:48.300>don't <00:03:48.480>get <00:03:48.653>to <00:03:48.813>co-design <00:03:49.480>silicon.

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<v Bill>Nvidia <00:03:51.060>has <00:03:51.280>the <00:03:51.480>best <00:03:51.864>chip <00:03:52.184>team <00:03:52.493>on <00:03:52.620>the <00:03:52.749>planet, <00:03:53.440>and <00:03:53.592>they <00:03:53.800>still <00:03:54.280>opened <00:03:54.820>the <00:03:55.080>roadmap.

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<v Cassidy>Kerr's <00:03:57.080>read <00:03:57.373>is <00:03:57.512>that <00:03:57.709>Nvidia <00:03:58.166>bought <00:03:58.460>the <00:03:58.600>observer <00:03:59.286>rather <00:03:59.592>than <00:03:59.740>the <00:03:59.907>model — <00:04:01.000>Sutskever's <00:04:01.620>bet <00:04:01.853>on <00:04:01.992>what <00:04:02.140>the <00:04:02.257>models <00:04:02.640>can't <00:04:02.893>do <00:04:03.100>yet.

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<v Cassidy>Nvidia <00:04:04.728>paid <00:04:05.000>five <00:04:05.370>billion <00:04:05.773>to <00:04:05.912>look <00:04:06.067>at <00:04:06.184>that, <00:04:06.952>then <00:04:07.144>reshaped <00:04:07.700>Feynman-era <00:04:08.413>hardware <00:04:08.886>around <00:04:09.192>what <00:04:09.373>it <00:04:09.580>saw.

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<v Cassidy>The <00:04:11.128>market <00:04:11.450>this <00:04:11.690>week <00:04:11.926>rewarded <00:04:12.322>a <00:04:12.442>$50 <00:04:12.932>billion <00:04:13.629>lease <00:04:13.982>you <00:04:14.082>can <00:04:14.242>measure <00:04:14.575>to <00:04:14.702>the <00:04:14.802>megawatt <00:04:15.582>and <00:04:16.162>a <00:04:16.282>$5 <00:04:16.602>billion <00:04:17.242>bet <00:04:17.509>on <00:04:17.602>a <00:04:17.702>company <00:04:18.162>whose <00:04:18.419>entire <00:04:18.842>value <00:04:19.295>is

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<v Cassidy>that <00:04:19.589>it <00:04:19.722>hasn't <00:04:20.267>shipped <00:04:20.504>anything.

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<v Cassidy>Same <00:04:22.122>buyer. <00:04:23.098>Same <00:04:23.535>seven <00:04:23.898>days.

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<v Cassidy>Here's <00:04:25.423>DEV <00:04:25.569>Community:

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<v Quote>What <00:04:26.722>I <00:04:26.806>appreciate <00:04:27.322>most <00:04:27.695>is <00:04:27.850>that <00:04:28.058>they <00:04:28.142>don't <00:04:28.426>open <00:04:28.714>with <00:04:28.862>the <00:04:28.991>method.

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<v Quote>They <00:04:30.090>open <00:04:30.330>with <00:04:30.549>an <00:04:30.650>empirical <00:04:31.162>autopsy: <00:04:32.402>Qwen2.5-1.5B + <00:04:34.975>GRPO <00:04:35.695>on <00:04:35.855>ALFWorld

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<v Quote>breaking <00:04:37.122>"long-horizon <00:04:37.926>training <00:04:38.338>collapses" <00:04:39.178>into <00:04:39.482>two <00:04:39.775>quantifiable <00:04:40.572>failure <00:04:40.989>modes.

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<v Bill>Okay, <00:04:42.278>this <00:04:42.486>is <00:04:42.686>the <00:04:42.859>paper <00:04:43.166>I've <00:04:43.412>wanted <00:04:43.766>all <00:04:44.086>week.

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<v Bill>It <00:04:45.166>doesn't <00:04:45.510>open <00:04:45.814>with <00:04:46.046>a <00:04:46.150>benchmark <00:04:46.838>brag — <00:04:47.819>it <00:04:47.993>opens <00:04:48.374>with <00:04:48.593>an <00:04:48.766>autopsy.

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<v Bill>It's <00:04:50.766>Qwen2.5 <00:04:52.374>with <00:04:52.806>GRPO <00:04:53.873>on <00:04:54.219>ALFWorld, <00:04:55.726>and <00:04:55.878>they <00:04:56.059>spell <00:04:56.366>out <00:04:56.556>exactly <00:04:57.106>why <00:04:57.326>the <00:04:57.513>agent <00:04:57.913>falls <00:04:58.306>off <00:04:58.526>a <00:04:58.646>cliff <00:04:59.099>as <00:04:59.313>tasks <00:04:59.946>get <00:05:00.326>longer.

53
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<v Bill>And <00:05:01.734>they <00:05:01.997>quantify <00:05:02.619>it.

54
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<v Bill>This <00:05:03.746>CAR <00:05:04.463>number — <00:05:05.419>Contradictory <00:05:06.235>Action <00:05:06.766>Ratio — <00:05:08.059>peaks <00:05:08.393>above <00:05:08.886>40%.

55
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<v Bill>Nearly <00:05:11.126>half <00:05:11.478>your <00:05:11.696>actions <00:05:12.366>get <00:05:12.526>a <00:05:12.637>positive <00:05:13.259>gradient <00:05:13.766>in <00:05:13.986>one <00:05:14.306>run <00:05:14.866>and <00:05:15.326>a <00:05:15.419>negative <00:05:15.926>one <00:05:16.246>in <00:05:16.456>another, <00:05:17.486>for <00:05:17.626>the <00:05:17.766>exact <00:05:18.230>same <00:05:18.566>move <00:05:18.913>in <00:05:19.006>the <00:05:19.206>exact <00:05:19.686>same <00:05:20.073>state.

56
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<v Bill>That's <00:05:21.466>the <00:05:21.574>mechanism <00:05:22.063>behind <00:05:22.470>step <00:05:22.806>7 <00:05:23.113>going <00:05:23.546>bad, <00:05:24.286>and <00:05:24.433>there's <00:05:24.673>an <00:05:24.779>ablation <00:05:25.353>table <00:05:25.766>to <00:05:25.974>back <00:05:26.193>it <00:05:26.326>up.

57
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<v Cassidy>Look <00:05:27.099>at <00:05:27.222>what <00:05:27.339>we <00:05:27.482>actually <00:05:27.830>have <00:05:28.150>here: <00:05:29.006>a <00:05:29.113>paper <00:05:29.486>you <00:05:29.626>can <00:05:29.750>pull <00:05:30.054>from <00:05:30.406>ZJU-REAL <00:05:31.366>out <00:05:31.633>of <00:05:31.726>Zhejiang, <00:05:32.770>complete <00:05:33.158>with <00:05:33.313>an <00:05:33.446>arXiv <00:05:33.903>number <00:05:34.346>and <00:05:34.686>a <00:05:34.783>GitHub <00:05:35.206>repo.

58
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<v Cassidy>Now <00:05:36.606>put <00:05:36.753>it <00:05:36.854>next <00:05:37.099>to <00:05:37.226>the <00:05:37.366>$50 <00:05:37.856>billion <00:05:38.566>Texas <00:05:39.019>lease <00:05:39.313>we <00:05:39.414>just <00:05:39.640>walked <00:05:39.896>through.

59
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<v Cassidy>You <00:05:41.086>can <00:05:41.254>feel <00:05:41.486>the <00:05:41.676>tension.

60
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<v Cassidy>We're <00:05:43.248>pouring <00:05:43.588>balance <00:05:44.054>sheets <00:05:44.376>into <00:05:44.688>GPU <00:05:45.119>campuses <00:05:45.715>to <00:05:45.828>run <00:05:46.072>long-horizon <00:05:46.968>agents

61
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<v Cassidy>and <00:05:48.048>a <00:05:48.168>lab <00:05:48.435>in <00:05:48.568>Hangzhou <00:05:49.176>just <00:05:49.414>showed <00:05:49.720>that <00:05:49.868>the <00:05:49.972>training <00:05:50.374>regime <00:05:50.688>for <00:05:50.848>those <00:05:51.117>agents <00:05:51.600>collapses <00:05:52.312>past <00:05:52.608>a <00:05:52.688>certain <00:05:53.025>length.

62
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<v Cassidy>BEACON <00:05:54.541>drags <00:05:55.021>ALFWorld <00:05:55.576>from <00:05:55.928>53.5 <00:05:57.155>to <00:05:57.368>92.9 <00:05:58.328>percent — <00:05:59.425>sample <00:05:59.828>utilization <00:06:00.520>from <00:06:00.808>23.7 <00:06:01.901>to <00:06:02.088>82.

63
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<v Cassidy>The <00:06:03.668>fix <00:06:03.951>exists, <00:06:05.008>but <00:06:05.155>it <00:06:05.256>hasn't <00:06:05.560>made <00:06:05.728>its <00:06:05.908>way <00:06:06.136>into <00:06:06.348>the <00:06:06.464>marketing.

64
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<v Bill>Right — <00:06:08.368>and <00:06:08.508>the <00:06:08.648>gains <00:06:09.128>grow <00:06:09.496>with <00:06:09.768>horizon <00:06:10.374>length, <00:06:11.088>not <00:06:11.288>just <00:06:11.688>as <00:06:11.888>a <00:06:12.008>flat <00:06:12.398>average <00:06:12.968>bump.

65
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<v Bill>That's <00:06:14.268>the <00:06:14.392>part <00:06:14.680>that <00:06:14.842>should <00:06:15.101>scare <00:06:15.437>anyone <00:06:15.898>selling <00:06:16.288>a <00:06:16.408>ten-step <00:06:17.128>agent <00:06:17.624>demo.

66
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<v Bill>The <00:06:18.854>longer <00:06:19.148>the <00:06:19.301>chain, <00:06:20.128>the <00:06:20.280>more <00:06:20.448>the <00:06:20.668>old <00:06:21.025>method <00:06:21.428>was <00:06:21.698>quietly <00:06:22.390>bleeding <00:06:22.968>out.

67
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<v Cassidy>Here's <00:06:24.393>Arxiv:

68
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<v Quote>Classical <00:06:26.099>alpha <00:06:26.478>mining <00:06:26.796>achieves <00:06:27.221>strong <00:06:27.696>risk-adjusted <00:06:28.432>returns <00:06:29.125>by <00:06:29.440>combining <00:06:29.952>many <00:06:30.332>low-correlated <00:06:31.203>predictive <00:06:31.772>signals

69
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<v Quote>yet <00:06:33.056>deep <00:06:33.348>learning <00:06:33.699>stock-ranking <00:06:34.402>methods <00:06:34.808>typically <00:06:35.352>produce <00:06:35.712>a <00:06:35.838>single <00:06:36.179>alpha <00:06:36.572>per <00:06:36.819>stock

70
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<v Quote>rely <00:06:37.925>on <00:06:38.075>increasingly <00:06:38.672>complex <00:06:39.283>architectures <00:06:40.000>with <00:06:40.232>diminishing <00:06:40.765>gains

71
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<v Quote>and <00:06:41.769>obtain <00:06:42.168>diversity <00:06:42.752>only <00:06:43.112>through <00:06:43.428>separate <00:06:43.781>models <00:06:44.272>or <00:06:44.485>implicit <00:06:44.962>routing

72
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<v Quote>without <00:06:46.010>explicitly <00:06:46.639>controlling <00:06:47.205>inter-alpha <00:06:47.932>correlation.

73
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<v Bill>Okay, <00:06:49.570>a <00:06:49.706>nice <00:06:50.181>palate <00:06:50.787>cleanser <00:06:51.343>after <00:06:51.670>all <00:06:51.898>that <00:06:52.170>$50 <00:06:52.760>billion <00:06:53.610>landlord <00:06:54.378>talk — <00:06:55.250>a <00:06:55.357>quant <00:06:55.770>paper.

74
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<v Bill>It's <00:06:57.110>MAPLE, <00:06:57.610>from <00:06:57.994>four <00:06:58.320>authors, <00:06:59.267>tested <00:06:59.667>across <00:07:00.067>equity <00:07:00.470>markets <00:07:00.943>in <00:07:01.070>the <00:07:01.290>US, <00:07:01.837>China, <00:07:02.450>and <00:07:02.663>Japan.

75
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<v Bill>The <00:07:03.912>headline: <00:07:04.970>55x <00:07:06.077>fewer <00:07:06.475>parameters <00:07:07.250>and <00:07:07.770>2.5x <00:07:09.050>less <00:07:09.432>training <00:07:10.010>time.

76
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<v Bill>This <00:07:11.159>is <00:07:11.252>the <00:07:11.436>part <00:07:11.708>that <00:07:11.834>actually <00:07:12.394>survives <00:07:12.972>contact <00:07:13.564>with <00:07:13.782>reality.

77
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<v Bill>Everyone's <00:07:15.572>out <00:07:15.740>here <00:07:15.985>stacking <00:07:16.469>architectural <00:07:17.270>complexity

78
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<v Bill>and <00:07:18.372>these <00:07:18.625>folks <00:07:18.972>got <00:07:19.292>10 <00:07:19.585>to <00:07:19.852>23% <00:07:20.938>better <00:07:21.292>Sharpe <00:07:21.879>by <00:07:22.309>fixing <00:07:22.692>the <00:07:22.876>loss <00:07:23.185>function <00:07:23.752>and <00:07:24.192>the <00:07:24.332>capacity <00:07:25.045>allocation <00:07:25.882>instead.

79
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<v Cassidy>Right, <00:07:27.665>it's <00:07:27.892>a <00:07:27.966>single <00:07:28.225>training <00:07:28.732>pass <00:07:29.068>that <00:07:29.188>generates <00:07:29.754>multiple <00:07:30.352>low-correlated <00:07:31.319>alphas.

80
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<v Cassidy>The <00:07:32.612>whole <00:07:32.865>trick <00:07:33.185>is <00:07:33.332>a <00:07:33.442>regularizer <00:07:34.300>that <00:07:34.550>explicitly <00:07:35.199>penalizes <00:07:35.923>pairwise <00:07:36.539>correlation <00:07:37.098>across <00:07:37.442>signals.

81
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<v Cassidy>Cheaper <00:07:39.112>and <00:07:39.340>more <00:07:39.602>diverse <00:07:40.119>at <00:07:40.268>once.

82
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<v Bill>It's <00:07:41.404>kind <00:07:41.559>of <00:07:41.632>the <00:07:41.754>opposite <00:07:42.279>of <00:07:42.352>the <00:07:42.492>day's <00:07:42.865>other <00:07:43.199>story, <00:07:43.665>honestly.

83
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<v Bill>Nvidia <00:07:45.340>paid <00:07:45.612>five <00:07:46.002>billion <00:07:46.532>for <00:07:46.692>a <00:07:46.832>lab <00:07:47.164>that <00:07:47.359>ships <00:07:47.752>nothing, <00:07:48.772>and <00:07:48.924>here's <00:07:49.172>a <00:07:49.292>four-author <00:07:50.092>paper <00:07:50.559>doing <00:07:50.972>more <00:07:51.324>with <00:07:51.612>55x <00:07:52.924>less.

84
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<v Bill>Guess <00:07:54.599>where <00:07:54.752>the <00:07:54.919>arXiv <00:07:55.498>number <00:07:55.932>is <00:07:56.332>and <00:07:56.599>where <00:07:56.752>the <00:07:56.868>marketing <00:07:57.429>budget <00:07:57.905>is.

85
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<v Cassidy>And <00:07:58.924>they <00:07:59.092>ran <00:07:59.239>it <00:07:59.349>across <00:07:59.788>nine <00:08:00.212>baselines <00:08:00.912>and <00:08:01.068>five <00:08:01.516>backbones, <00:08:02.684>with <00:08:02.832>the <00:08:02.942>numbers <00:08:03.332>right <00:08:03.559>there <00:08:03.719>on <00:08:03.792>the <00:08:03.948>page — <00:08:04.780>Sharpe, <00:08:05.432>Calmar, <00:08:06.092>ablations <00:08:06.692>and <00:08:06.892>all.

86
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<v Cassidy>That's <00:08:08.112>the <00:08:08.216>disclosure <00:08:08.705>standard <00:08:09.172>I <00:08:09.260>keep <00:08:09.492>wishing <00:08:09.792>the <00:08:09.916>demo-video <00:08:10.559>crowd <00:08:10.919>would <00:08:11.132>hit.

87
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<v Cassidy>Want <00:08:12.406>to <00:08:12.547>follow <00:08:12.773>the <00:08:12.863>biggest <00:08:13.140>moves <00:08:13.489>into <00:08:13.599>public <00:08:13.943>markets?

88
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<v Cassidy>Try <00:08:15.393>AI <00:08:15.833>IPO <00:08:16.273>Watch. <00:08:16.940>It <00:08:17.373>has <00:08:17.593>daily <00:08:17.837>coverage <00:08:18.246>of <00:08:18.433>OpenAI

89
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<v Cassidy>Anthropic <00:08:20.393>Databricks

90
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<v Cassidy>and <00:08:21.427>SpaceX <00:08:22.140>going <00:08:22.364>public — <00:08:23.606>every <00:08:23.942>filing

91
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<v Cassidy>valuation <00:08:25.093>and <00:08:25.220>first <00:08:25.633>trade

92
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<v Cassidy>sourced <00:08:27.433>not <00:08:27.613>rumored.

93
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<v Cassidy>Find <00:08:29.100>it <00:08:29.197>wherever <00:08:29.573>you <00:08:29.667>listen <00:08:29.926>to <00:08:30.122>podcasts.

94
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<v Cassidy>You'll <00:08:32.048>find <00:08:32.280>links <00:08:32.533>to <00:08:32.680>every <00:08:32.947>story <00:08:33.307>in <00:08:33.400>today's <00:08:33.728>show <00:08:34.000>notes, <00:08:34.853>so <00:08:34.992>take <00:08:35.160>a <00:08:35.232>look <00:08:35.413>if <00:08:35.533>there's <00:08:35.800>one <00:08:35.940>you <00:08:36.032>want <00:08:36.213>to <00:08:36.360>dig <00:08:36.576>into.

95
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<v Cassidy>That's <00:08:38.053>AI <00:08:38.373>Daily <00:08:38.680>Briefing <00:08:39.080>for <00:08:39.280>today.

96
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<v Cassidy>This <00:08:40.373>is <00:08:40.520>a <00:08:40.610>Lantern <00:08:41.060>Podcast.