WEBVTT

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<v Cassidy>AI <00:00:00.560>cloud’s <00:00:01.152>debt-fueled <00:00:01.744>data-center <00:00:02.389>sprint <00:00:02.827>is <00:00:02.930>picking <00:00:03.360>up—and <00:00:04.196>somebody <00:00:04.524>eventually <00:00:05.020>has <00:00:05.227>to <00:00:05.328>make <00:00:05.547>those <00:00:05.730>monthly <00:00:06.151>payments.

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<v Cassidy>If <00:00:08.490>you’re <00:00:08.600>joining <00:00:08.933>us <00:00:09.100>mid-arc, <00:00:09.696>here’s <00:00:09.860>the <00:00:09.973>short <00:00:10.290>version: <00:00:11.498>Specialist <00:00:12.213>AI <00:00:12.517>infrastructure <00:00:13.096>providers <00:00:13.632>aren’t <00:00:13.888>just <00:00:14.116>pitching <00:00:14.540>GPU <00:00:15.029>access <00:00:15.500>anymore.

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<v Cassidy>They’re <00:00:16.760>turning <00:00:17.091>contracted <00:00:17.680>demand <00:00:18.208>into <00:00:18.480>real <00:00:18.880>capacity—and <00:00:20.224>long-term <00:00:20.800>obligations.

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<v Cassidy>CoreWeave <00:00:23.260>had <00:00:23.480>$104.2 <00:00:25.070>billion <00:00:25.867>in <00:00:26.010>backlog <00:00:26.760>and <00:00:27.177>raised <00:00:27.560>its <00:00:27.760>2026 <00:00:28.740>capex <00:00:29.456>plan

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<v Cassidy>Together <00:00:31.013>AI <00:00:31.340>was <00:00:31.584>tied <00:00:31.867>to <00:00:32.000>a <00:00:32.081>10,000-GPU <00:00:33.440>L&amp;T <00:00:33.970>Chennai <00:00:34.390>project

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<v Cassidy>and <00:00:35.600>Cerebras <00:00:36.192>said <00:00:36.347>it <00:00:36.440>had <00:00:36.592>more <00:00:36.768>than <00:00:37.120>600 <00:00:37.840>MW <00:00:38.416>live <00:00:38.987>or <00:00:39.400>under <00:00:39.662>contract <00:00:40.213>by <00:00:40.420>end-2027.

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<v Bill>This <00:00:43.253>is <00:00:43.520>AI <00:00:43.907>Daily <00:00:44.307>Briefing.

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<v Bill>Today, <00:00:46.420>the <00:00:46.544>debt <00:00:46.880>gets <00:00:47.280>longer, <00:00:48.340>the <00:00:48.453>hardware <00:00:48.960>claims <00:00:49.520>get <00:00:49.829>louder, <00:00:50.660>and <00:00:51.000>a <00:00:51.100>Grok <00:00:51.511>security <00:00:52.140>finding <00:00:52.640>cuts <00:00:53.013>straight <00:00:53.520>into <00:00:53.860>the <00:00:54.013>agent <00:00:54.587>stack.

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<v Bill>We <00:00:56.213>start <00:00:56.528>with <00:00:56.840>Nebius.

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<v Bill>This <00:00:58.560>story <00:00:59.060>isn't <00:00:59.536>over: <00:01:00.480>Neocloud <00:01:01.271>spending <00:01:01.900>and <00:01:02.180>backlog <00:01:03.008>boom.

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<v Bill>Follow <00:01:04.560>us <00:01:04.764>wherever <00:01:05.140>you're <00:01:05.320>listening, <00:01:06.180>and <00:01:06.260>the <00:01:06.384>next <00:01:06.700>chapter <00:01:07.200>comes <00:01:07.627>to <00:01:07.760>you.

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<v Cassidy>Rashika <00:01:09.275>Singh, <00:01:10.088>Ananya <00:01:10.528>Palyekar, <00:01:11.728>writing <00:01:12.035>in <00:01:12.108>The <00:01:12.221>Economic <00:01:12.741>Times:

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<v Quote>AI <00:01:14.165>cloud <00:01:14.485>provider <00:01:14.992>Nebius <00:01:15.525>Group <00:01:15.845>on <00:01:16.008>Wednesday <00:01:16.672>upsized <00:01:17.432>its <00:01:17.616>debt <00:01:17.925>offering <00:01:18.379>to <00:01:18.552>$5 <00:01:19.022>billion <00:01:19.824>from <00:01:20.032>$4.5 <00:01:21.002>billion

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<v Quote>as <00:01:22.139>it <00:01:22.245>seeks <00:01:22.565>to <00:01:22.720>ramp <00:01:22.965>up <00:01:23.119>investments <00:01:23.685>in <00:01:23.856>data <00:01:24.172>centers <00:01:24.612>and <00:01:24.720>computing <00:01:25.223>capacity.

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<v Quote>The <00:01:26.504>Amsterdam-headquartered <00:01:27.762>company <00:01:28.192>plans <00:01:28.619>to <00:01:28.739>issue <00:01:29.122>private <00:01:29.519>convertible <00:01:30.112>notes <00:01:30.565>worth <00:01:30.892>$3 <00:01:31.182>billion <00:01:32.012>maturing <00:01:32.539>in <00:01:32.672>2030

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<v Quote>and <00:01:33.925>notes <00:01:34.232>worth <00:01:34.512>$2 <00:01:34.862>billion <00:01:35.692>maturing <00:01:36.165>in <00:01:36.352>2034.

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<v Cassidy>Nebius <00:01:38.089>took <00:01:38.265>this <00:01:38.510>to <00:01:38.657>$5 <00:01:39.037>billion, <00:01:40.190>split <00:01:40.497>between <00:01:40.857>$3 <00:01:41.187>billion <00:01:41.877>due <00:01:42.084>in <00:01:42.297>2030 <00:01:43.117>and <00:01:43.497>$2 <00:01:43.757>billion <00:01:44.510>in <00:01:44.697>2034.

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<v Cassidy>Investors <00:01:47.137>are <00:01:47.297>underwriting <00:01:47.857>two <00:01:48.001>different <00:01:48.263>things <00:01:48.617>here: <00:01:49.321>this <00:01:49.697>GPU <00:01:50.150>cycle, <00:01:51.145>then <00:01:51.385>sustained <00:01:51.950>AI-cloud <00:01:52.606>demand <00:01:53.047>through <00:01:53.277>the <00:01:53.401>next <00:01:53.701>hardware <00:01:54.122>generation.

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<v Bill>By <00:01:55.257>2029

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<v Bill>Nebius <00:01:57.244>needs <00:01:57.697>a <00:01:57.875>convincing <00:01:58.548>answer <00:01:59.204>on <00:01:59.465>that <00:01:59.817>2030 <00:02:00.537>tranche: <00:02:01.691>enough <00:02:01.961>cash <00:02:02.281>flow <00:02:02.617>to <00:02:02.884>repay <00:02:03.524>or <00:02:03.837>refinance <00:02:04.670>it <00:02:04.857>without <00:02:05.467>turning <00:02:05.837>the <00:02:05.977>whole <00:02:06.577>GPU <00:02:07.257>fleet <00:02:07.785>into <00:02:08.337>a

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<v Bill>debt-management <00:02:09.346>exercise.

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<v Cassidy>The <00:02:11.017>neocloud <00:02:11.724>buildout <00:02:12.270>keeps <00:02:12.577>piling <00:02:13.017>up: <00:02:13.881>CoreWeave <00:02:14.477>and <00:02:14.617>Cerebras <00:02:15.137>had <00:02:15.337>backlog; <00:02:16.497>now <00:02:16.697>Nebius <00:02:17.230>is <00:02:17.387>raising <00:02:17.817>$5 <00:02:18.157>billion <00:02:18.884>in <00:02:19.017>debt.

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<v Cassidy>Its <00:02:20.281>June <00:02:20.601>cash <00:02:20.917>balance <00:02:21.377>was <00:02:21.537>$8.04 <00:02:22.747>billion, <00:02:23.877>but <00:02:24.324>it <00:02:24.417>spent <00:02:24.697>$5.66 <00:02:25.977>billion <00:02:26.590>on <00:02:26.750>property, <00:02:27.305>equipment, <00:02:27.837>and <00:02:27.957>intangibles <00:02:28.670>in <00:02:28.817>one <00:02:28.987>quarter.

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<v Cassidy>Financing <00:02:30.737>has <00:02:30.884>to <00:02:30.969>keep <00:02:31.177>pace <00:02:31.529>with <00:02:31.677>the <00:02:31.780>construction <00:02:32.368>appetite.

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<v Bill>A <00:02:33.794>nearly <00:02:34.377>10% <00:02:35.257>drop <00:02:35.657>on <00:02:35.873>Wednesday <00:02:36.444>tells <00:02:36.877>you <00:02:37.277>the <00:02:37.634>market <00:02:38.057>isn’t <00:02:38.427>handing <00:02:38.817>out <00:02:39.017>gold <00:02:39.457>stars <00:02:40.077>for <00:02:40.185>that <00:02:40.439>headline.

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<v Bill>Nebius <00:02:42.377>is <00:02:42.617>financing <00:02:43.377>the <00:02:43.564>build; <00:02:44.557>the <00:02:44.661>question <00:02:45.070>is <00:02:45.217>whether <00:02:45.557>its <00:02:45.801>full-stack <00:02:46.617>cloud <00:02:47.057>can <00:02:47.237>produce <00:02:47.710>an <00:02:47.881>inference <00:02:48.526>margin <00:02:49.028>before <00:02:49.617>those <00:02:49.977>2030 <00:02:50.817>notes <00:02:51.081>come

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<v Bill>due.

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<v Cassidy>From <00:02:53.524>Tobias <00:02:54.015>Mann <00:02:54.388>at <00:02:54.515>The <00:02:54.655>Register:

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<v Quote>The <00:02:56.010>chip <00:02:56.264>newcomer <00:02:56.806>unveiled <00:02:57.202>its <00:02:57.402>next-gen <00:02:58.042>Wafer <00:02:58.495>Scale <00:02:58.831>Engine <00:02:59.482>(WSE) <00:03:00.782>and <00:03:00.935>Nexus <00:03:01.466>rack <00:03:01.772>systems <00:03:02.175>on <00:03:02.352>Tuesday.

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<v Quote>Cerebras <00:03:04.042>aims <00:03:04.389>to <00:03:04.499>extend <00:03:04.874>that <00:03:05.082>lead <00:03:05.429>by <00:03:05.544>boosting <00:03:06.086>throughput <00:03:06.602>per <00:03:06.922>watt <00:03:07.342>tenfold <00:03:08.010>over <00:03:08.222>the <00:03:08.326>previous <00:03:08.740>generation.

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<v Bill>Cerebras <00:03:10.418>doubled <00:03:10.918>dense <00:03:11.558>FP16 <00:03:12.726>from <00:03:13.078>12.5 <00:03:14.251>to <00:03:14.438>25 <00:03:15.158>petaflops <00:03:15.958>and <00:03:16.495>memory <00:03:16.902>bandwidth <00:03:17.611>to <00:03:17.958>43.2 <00:03:19.478>petabytes <00:03:20.198>a <00:03:20.358>second—on <00:03:21.678>the <00:03:21.894>same <00:03:22.438>5-nanometer <00:03:23.478>wafer <00:03:24.138>and <00:03:24.458>the

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<v Bill>same <00:03:24.934>four <00:03:25.398>trillion <00:03:26.118>transistors.

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<v Bill>The <00:03:27.946>trick, <00:03:28.417>apparently, <00:03:29.372>is <00:03:29.559>cranking <00:03:30.059>the <00:03:30.186>clock <00:03:30.599>up <00:03:30.799>and <00:03:30.969>feeding <00:03:31.346>it <00:03:31.479>a <00:03:31.612>whole <00:03:31.959>lot <00:03:32.247>more <00:03:32.532>power.

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<v Cassidy>And <00:03:33.959>“a <00:03:34.586>whole <00:03:34.999>lot” <00:03:35.386>means <00:03:35.959>33 <00:03:36.439>kilowatts <00:03:37.039>per <00:03:37.239>wafer, <00:03:38.005>versus <00:03:38.839>15 <00:03:39.319>before; <00:03:40.539>the <00:03:40.647>full-system <00:03:41.292>estimate <00:03:41.783>goes <00:03:42.071>from <00:03:42.359>23 <00:03:42.972>to <00:03:43.239>46 <00:03:43.779>kilowatts.

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<v Cassidy>So <00:03:45.399>yes, <00:03:45.776>faster <00:03:46.183>inference—but <00:03:47.536>nobody <00:03:47.927>gets <00:03:48.172>to <00:03:48.359>say <00:03:48.679>“per <00:03:49.095>watt” <00:03:49.699>and <00:03:50.183>skip <00:03:50.459>the <00:03:50.583>watt <00:03:50.919>line.

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<v Bill>Exactly. <00:03:52.290>Sparse <00:03:53.559>FP16 <00:03:54.892>at <00:03:55.319>250 <00:03:56.359>petaflops <00:03:57.332>makes <00:03:57.839>for <00:03:57.999>a <00:03:58.087>beautiful <00:03:58.612>slide.

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<v Bill>I <00:03:59.927>want <00:04:00.139>the <00:04:00.295>cost <00:04:00.739>per <00:04:01.012>token <00:04:01.586>on <00:04:01.839>a <00:04:01.959>messy, <00:04:02.586>mixed-precision <00:04:03.603>production <00:04:04.110>workload, <00:04:05.015>with <00:04:05.479>rack <00:04:05.869>cooling <00:04:06.459>and <00:04:06.799>the <00:04:06.986>power <00:04:07.367>bill <00:04:07.621>included.

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<v Bill>That’s <00:04:09.119>where <00:04:09.383>this <00:04:09.685>either <00:04:10.029>changes <00:04:10.559>a <00:04:10.679>latency <00:04:11.308>budget <00:04:11.852>or <00:04:12.189>becomes <00:04:12.807>very <00:04:13.399>expensive <00:04:14.186>clock <00:04:14.588>tuning.

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<v Cassidy>We <00:04:15.671>just <00:04:15.839>covered <00:04:16.179>Nebius <00:04:16.647>borrowing <00:04:17.159>$5 <00:04:17.589>billion <00:04:18.412>to <00:04:18.579>finance <00:04:19.019>the <00:04:19.143>buildings.

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<v Cassidy>Cerebras <00:04:21.119>wants <00:04:21.359>a <00:04:21.466>slice <00:04:21.826>of <00:04:21.911>what <00:04:22.079>those <00:04:22.319>buildings <00:04:22.732>spend <00:04:23.052>on <00:04:23.223>inference.

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<v Cassidy>If <00:04:24.759>Nexus <00:04:25.205>really <00:04:25.546>packs <00:04:25.919>three <00:04:26.172>times <00:04:26.492>as <00:04:26.631>many <00:04:26.812>chips <00:04:27.127>into <00:04:27.359>a <00:04:27.479>rack, <00:04:28.412>power <00:04:28.732>delivery <00:04:29.226>stops <00:04:29.586>being <00:04:29.772>an <00:04:29.919>engineering <00:04:30.421>footnote <00:04:30.967>very <00:04:31.229>quickly.

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<v Cassidy>From <00:04:33.114>Yahoo <00:04:33.517>Finance:

43
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<v Quote>Bitcoin <00:04:35.059>(CRYPTO: <00:04:35.146>$BTC) <00:04:35.185>mining <00:04:35.441>company <00:04:35.891>Bitdeer <00:04:36.486>Technologies <00:04:37.204>Group's <00:04:37.711>(NASDAQ: <00:04:38.042>$BTDR) <00:04:38.289>artificial <00:04:38.400>intelligence <00:04:39.035>division

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<v Quote>Bitdeer <00:04:40.378>AI <00:04:41.111>has <00:04:41.281>secured <00:04:41.711>a <00:04:41.855>five-year <00:04:42.351>contract <00:04:43.044>covering <00:04:43.521>roughly <00:04:43.935>half <00:04:44.218>of <00:04:44.311>its <00:04:44.631>A102 <00:04:45.498>AI <00:04:45.775>data <00:04:46.077>center <00:04:46.378>in <00:04:46.484>Malaysia <00:04:47.002>before <00:04:47.591>the <00:04:47.764>facility <00:04:48.218>is <00:04:48.324>energized.

45
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<v Quote>The <00:04:49.851>undisclosed <00:04:50.573>customer

46
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<v Quote>described <00:04:51.844>by <00:04:52.031>Bitdeer <00:04:52.484>as <00:04:52.644>being <00:04:52.991>of <00:04:53.351>"high <00:04:53.768>credit <00:04:54.171>quality," <00:04:55.111>has <00:04:55.271>committed <00:04:55.658>to <00:04:55.762>approximately <00:04:56.591>50% <00:04:57.284>of <00:04:57.551>A102's <00:04:58.431>9.5-megawatt <00:04:59.853>capacity

47
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<v Quote>according <00:05:01.124>to <00:05:01.271>a <00:05:01.351>Wednesday <00:05:01.748>announcement.

48
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<v Bill>This <00:05:02.807>is <00:05:02.934>the <00:05:03.058>kind <00:05:03.341>of <00:05:03.494>pre-energization <00:05:04.914>deal <00:05:05.394>I <00:05:05.614>can <00:05:05.874>work <00:05:06.242>with: <00:05:07.234>9.5 <00:05:08.334>megawatts

49
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<v Bill>roughly <00:05:09.794>half <00:05:10.184>already <00:05:10.754>contracted

50
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<v Bill>five <00:05:12.447>years <00:05:13.354>and <00:05:13.524>service <00:05:13.927>starting <00:05:14.461>in <00:05:14.994>Q1 <00:05:15.954>2027.

51
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<v Bill>Bitdeer <00:05:18.578>gave <00:05:18.887>us <00:05:19.047>an <00:05:19.221>audit <00:05:19.618>date <00:05:19.964>instead <00:05:20.621>of <00:05:20.731>waving <00:05:21.120>around <00:05:21.434>a <00:05:21.567>giant <00:05:22.114>pipeline <00:05:22.811>number.

52
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<v Cassidy>And <00:05:24.087>it’s <00:05:24.314>$400 <00:05:24.934>million <00:05:25.682>over <00:05:25.906>that <00:05:26.114>term <00:05:26.466>from <00:05:26.694>one <00:05:27.042>high-credit-quality <00:05:28.114>but <00:05:28.424>unnamed <00:05:28.976>customer.

53
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<v Cassidy>We <00:05:30.454>don’t <00:05:30.610>know <00:05:30.694>the <00:05:30.807>customer, <00:05:31.434>but <00:05:31.607>we <00:05:31.794>do <00:05:31.986>know <00:05:32.134>the <00:05:32.230>commercial <00:05:32.674>shape.

54
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<v Cassidy>That <00:05:33.842>puts <00:05:34.234>A102 <00:05:34.967>ahead <00:05:35.261>of <00:05:35.394>most <00:05:35.834>“AI <00:05:36.411>campus” <00:05:36.874>announcements <00:05:37.426>that <00:05:37.594>never <00:05:37.834>get <00:05:38.018>past <00:05:38.314>a <00:05:38.405>PowerPoint <00:05:38.954>and <00:05:39.154>a <00:05:39.261>local <00:05:39.434>press <00:05:39.694>release.

55
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<v Bill>I’m <00:05:41.114>not <00:05:41.296>extrapolating <00:05:42.114>a <00:05:42.634>350-megawatt-by-2028 <00:05:44.983>target <00:05:45.442>from <00:05:45.734>one <00:05:46.434>9.5-megawatt <00:05:48.210>site.

56
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<v Bill>But <00:05:49.527>GB300 <00:05:50.727>NVL72s <00:05:52.571>liquid <00:05:52.964>cooling

57
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<v Bill>and <00:05:53.914>a <00:05:54.023>signed <00:05:54.546>five-year <00:05:55.314>buyer—okay

58
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<v Bill>now <00:05:57.447>we <00:05:57.594>can <00:05:57.814>ask <00:05:58.144>whether <00:05:58.386>they <00:05:58.594>hit <00:05:58.894>the <00:05:59.274>Q1 <00:05:59.954>2027 <00:06:01.074>turn-on <00:06:02.014>without <00:06:02.478>treating <00:06:02.874>the <00:06:03.034>whole <00:06:03.314>thing <00:06:03.847>as <00:06:04.207>vapor.

59
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<v Cassidy>Nebius <00:06:06.034>is <00:06:06.114>financing <00:06:06.734>its <00:06:07.034>GPU <00:06:07.474>stack <00:06:07.890>with <00:06:08.034>$5 <00:06:08.544>billion <00:06:09.341>in <00:06:09.444>convertibles; <00:06:10.894>Bitdeer <00:06:11.287>is <00:06:11.444>pairing <00:06:11.834>a <00:06:11.934>smaller <00:06:12.407>build <00:06:12.706>with <00:06:12.892>contracted <00:06:13.524>revenue <00:06:13.920>before <00:06:14.214>the

60
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<v Cassidy>lights <00:06:14.614>are <00:06:14.807>on. <00:06:15.907>Different <00:06:16.183>balance <00:06:16.660>sheets, <00:06:17.523>but <00:06:17.707>both <00:06:17.983>are <00:06:18.093>betting <00:06:18.550>AI <00:06:18.820>demand <00:06:19.179>will <00:06:19.296>still <00:06:19.616>be <00:06:19.763>there <00:06:19.995>when <00:06:20.155>this <00:06:20.327>hardware <00:06:20.750>cycle <00:06:21.136>rolls <00:06:21.483>over.

61
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<v Cassidy>This <00:06:22.854>one's <00:06:23.118>from <00:06:23.434>The <00:06:23.734>Logic:

62
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<v Quote>AI <00:06:27.049>firm <00:06:27.353>Anthropic <00:06:27.998>is <00:06:28.132>planning <00:06:28.372>to <00:06:28.471>source <00:06:28.825>a <00:06:28.945>significant <00:06:29.419>amount <00:06:29.652>of <00:06:29.755>compute <00:06:30.158>capacity <00:06:30.638>in <00:06:30.802>Canada, <00:06:31.593>including <00:06:32.041>from <00:06:32.165>new <00:06:32.409>data <00:06:32.705>centres <00:06:33.012>in <00:06:33.125>Alberta.

63
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<v Quote>The <00:06:34.225>San <00:06:34.393>Francisco-based <00:06:35.105>company <00:06:35.438>is <00:06:35.591>hiring <00:06:35.932>staff <00:06:36.292>in <00:06:36.414>Canada <00:06:36.932>to <00:06:37.177>help <00:06:37.355>acquire <00:06:37.749>processing <00:06:38.238>power

64
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<v Quote>and <00:06:39.012>to <00:06:39.111>manage <00:06:39.433>relations <00:06:39.897>with <00:06:40.045>the <00:06:40.152>communities <00:06:40.681>that <00:06:40.777>will <00:06:40.953>host <00:06:41.185>its <00:06:41.363>facilities

65
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<v Quote>according <00:06:42.638>to <00:06:42.765>new <00:06:42.885>job <00:06:43.127>postings.

66
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<v Cassidy>Anthropic’s <00:06:44.784>Canada <00:06:45.118>posting <00:06:45.618>says <00:06:46.098>“gigawatts,” <00:06:47.478>but <00:06:47.554>they’re <00:06:47.725>still <00:06:47.908>hunting <00:06:48.325>sites

67
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<v Cassidy>securing <00:06:49.205>power <00:06:49.746>financing <00:06:50.249>projects

68
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<v Cassidy>and <00:06:50.958>shepherding <00:06:51.433>construction.

69
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<v Cassidy>It’s <00:06:53.358>a <00:06:53.521>development <00:06:53.858>pipeline.

70
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<v Cassidy>You <00:06:55.098>can’t <00:06:55.410>plug <00:06:55.584>Claude <00:06:55.906>into <00:06:56.151>it <00:06:56.338>yet.

71
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<v Bill>And <00:06:57.890>they’re <00:06:58.167>hiring <00:06:58.605>an <00:06:58.728>Alberta <00:06:59.274>community <00:06:59.843>engagement <00:07:00.558>manager <00:07:01.090>alongside <00:07:02.118>the <00:07:02.248>compute <00:07:02.818>lead.

72
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<v Bill>Local <00:07:04.476>permitting <00:07:05.118>and <00:07:05.365>power <00:07:05.755>relationships <00:07:06.518>are <00:07:06.648>clearly <00:07:07.218>on <00:07:07.398>the <00:07:07.502>critical <00:07:07.970>path—not <00:07:09.202>some <00:07:09.528>cleanup <00:07:10.130>task <00:07:10.618>after <00:07:10.838>the <00:07:11.058>GPUs <00:07:11.778>arrive.

73
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<v Cassidy>Nebius <00:07:13.831>is <00:07:13.986>borrowing <00:07:14.482>five <00:07:14.788>billion <00:07:15.208>dollars <00:07:15.748>against <00:07:16.155>future <00:07:16.631>AI-cloud <00:07:17.298>demand.

74
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<v Cassidy>On <00:07:18.678>the <00:07:18.782>customer <00:07:19.218>side

75
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<v Cassidy>Anthropic <00:07:20.231>is <00:07:20.384>making <00:07:20.678>the <00:07:20.850>same <00:07:21.378>long-duration <00:07:22.278>bet: <00:07:23.438>gigawatts <00:07:24.045>in <00:07:24.178>Canada <00:07:24.729>suggests <00:07:25.325>it <00:07:25.428>expects <00:07:25.835>demand <00:07:26.205>to <00:07:26.338>outlast <00:07:26.930>more <00:07:27.090>than <00:07:27.318>one <00:07:27.685>shiny <00:07:28.062>hardware

76
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<v Cassidy>cycle.

77
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<v Bill>“Gigawatts” <00:07:30.631>is <00:07:30.778>a <00:07:30.898>serious <00:07:31.554>word.

78
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<v Bill>Give <00:07:32.791>us <00:07:32.938>a <00:07:33.058>site, <00:07:33.738>a <00:07:33.845>power <00:07:34.258>contract, <00:07:35.278>and <00:07:35.511>an <00:07:35.698>in-service <00:07:36.402>date, <00:07:37.170>then <00:07:37.325>we <00:07:37.418>can <00:07:37.591>start <00:07:37.902>treating <00:07:38.285>it <00:07:38.402>like <00:07:38.756>capacity <00:07:39.578>instead <00:07:39.911>of <00:07:40.080>ambition.

79
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<v Cassidy>Ars <00:07:41.596>Technica, <00:07:42.196>with <00:07:42.596>Dan <00:07:42.884>Goodin:

80
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<v Quote>Company <00:07:44.213>researchers <00:07:44.840>are <00:07:44.990>calling <00:07:45.240>the <00:07:45.400>technique <00:07:45.834>cryptographic <00:07:46.880>context <00:07:47.496>injection.

81
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<v Quote>“Cryptographic <00:07:49.670>Context <00:07:50.208>Injection <00:07:50.747>is <00:07:51.000>one <00:07:51.173>instance <00:07:51.653>of <00:07:51.800>a <00:07:51.880>broader <00:07:52.240>shift: <00:07:53.170>attacks <00:07:53.552>that <00:07:53.738>manipulate <00:07:54.360>not <00:07:54.528>just <00:07:54.740>the <00:07:54.869>prompt

82
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<v Quote>but <00:07:55.780>the <00:07:55.920>wider <00:07:56.400>context <00:07:56.987>an <00:07:57.160>LLM <00:07:57.566>treats <00:07:57.893>as <00:07:58.060>its <00:07:58.300>own

83
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<v Quote>such <00:07:59.173>as <00:07:59.344>tool <00:07:59.670>outputs

84
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<v Quote>runtime <00:08:01.020>results <00:08:01.540>and <00:08:01.889>intermediate <00:08:02.547>state” <00:08:03.200>Adversa <00:08:03.664>said.

85
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<v Bill>The <00:08:04.579>nasty <00:08:05.059>part <00:08:05.432>of <00:08:05.646>Adversa’s <00:08:06.493>cryptographic <00:08:07.579>context <00:08:08.491>injection <00:08:09.352>is <00:08:09.806>where <00:08:09.992>it <00:08:10.179>hits: <00:08:11.363>tool <00:08:11.709>outputs, <00:08:12.739>runtime <00:08:13.379>results, <00:08:14.401>intermediate <00:08:15.219>state.

86
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<v Bill>Your <00:08:16.552>agent <00:08:16.879>can <00:08:17.091>have <00:08:17.299>a <00:08:17.441>pristine <00:08:18.019>user <00:08:18.430>prompt <00:08:19.079>and <00:08:19.432>still <00:08:19.739>get <00:08:19.919>steered <00:08:20.385>toward <00:08:20.819>exfiltration <00:08:21.992>by <00:08:22.299>something <00:08:22.686>it <00:08:22.809>decides <00:08:23.326>to <00:08:23.459>trust <00:08:23.939>halfway <00:08:24.529>through <00:08:24.759>the

87
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<v Bill>job.

88
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<v Cassidy>And <00:08:26.179>encryption <00:08:26.979>is <00:08:27.159>the <00:08:27.299>trick.

89
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<v Cassidy>The <00:08:28.796>safety <00:08:29.192>layer <00:08:29.555>sees <00:08:30.019>ciphertext <00:08:30.872>it <00:08:31.039>can’t <00:08:31.349>meaningfully <00:08:31.949>inspect; <00:08:33.239>the <00:08:33.352>model <00:08:33.669>decrypts <00:08:34.179>it

90
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<v Cassidy>treats <00:08:35.166>it <00:08:35.251>like <00:08:35.419>a <00:08:35.531>traceback

91
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<v Cassidy>then <00:08:36.959>follows <00:08:37.399>the <00:08:37.506>instruction <00:08:38.076>buried <00:08:38.510>inside.

92
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<v Cassidy>A <00:08:40.152>very <00:08:40.392>efficient <00:08:40.884>way <00:08:41.117>to <00:08:41.256>make <00:08:41.424>a <00:08:41.508>permission <00:08:42.013>policy <00:08:42.482>decorative.

93
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<v Bill>Adversa <00:08:44.164>got <00:08:44.464>a <00:08:44.614>related <00:08:44.904>attack <00:08:45.491>to <00:08:45.754>produce <00:08:46.162>restricted <00:08:46.801>weapon <00:08:47.234>content <00:08:47.984>and <00:08:48.400>reproduce <00:08:48.984>Gemini <00:08:49.521>system <00:08:49.919>instructions.

94
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<v Bill>So <00:08:51.784>no, <00:08:52.788>auditing <00:08:53.164>the <00:08:53.274>initial <00:08:53.681>prompt <00:08:54.104>is <00:08:54.314>nowhere <00:08:54.712>near <00:08:54.961>enough.

95
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<v Bill>Log <00:08:56.304>the <00:08:56.472>tool-call <00:08:57.051>layer, <00:08:57.752>constrain <00:08:58.232>what <00:08:58.491>tools <00:08:58.864>can <00:08:59.064>return, <00:08:59.964>and <00:09:00.093>assume <00:09:00.584>an <00:09:00.824>error <00:09:01.284>message <00:09:01.744>can <00:09:01.944>be <00:09:02.184>hostile <00:09:02.851>input.

96
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<v Cassidy>Grok <00:09:04.477>is <00:09:04.604>the <00:09:04.735>headline; <00:09:05.510>Gemini <00:09:06.317>backs <00:09:06.611>it <00:09:06.771>up.

97
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<v Cassidy>This <00:09:08.074>failure <00:09:08.488>mode <00:09:08.792>cuts <00:09:09.041>across <00:09:09.454>vendors, <00:09:10.284>and <00:09:10.371>it <00:09:10.474>matters <00:09:10.864>a <00:09:10.984>lot <00:09:11.272>more <00:09:11.496>than <00:09:11.674>another <00:09:12.093>glossy <00:09:12.571>agent <00:09:12.984>demo.

98
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<v Cassidy>If <00:09:14.263>you <00:09:14.355>want <00:09:14.547>more <00:09:14.883>on <00:09:15.150>AI <00:09:15.443>policy <00:09:15.963>and <00:09:16.127>national <00:09:16.554>security, <00:09:17.643>check <00:09:17.903>out <00:09:18.147>Anthropic <00:09:18.785>Pentagon <00:09:19.363>Watch, <00:09:20.323>a <00:09:20.443>daily <00:09:20.696>briefing <00:09:21.203>on <00:09:21.411>Anthropic’s <00:09:22.043>fight <00:09:22.275>with <00:09:22.423>the <00:09:22.616>DoD.

99
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<v Cassidy>It <00:09:24.140>tracks <00:09:24.545>military <00:09:25.176>AI <00:09:25.563>use, <00:09:26.374>autonomous <00:09:26.963>weapons, <00:09:28.043>and <00:09:28.296>AI <00:09:28.603>procurement <00:09:29.110>blacklisting.

100
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<v Cassidy>Find <00:09:30.830>it <00:09:30.919>wherever <00:09:31.243>you <00:09:31.397>listen <00:09:31.656>to <00:09:31.852>podcasts.

101
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<v Cassidy>We’re <00:09:33.773>watching <00:09:34.169>for <00:09:34.369>Bitdeer’s <00:09:35.089>A102 <00:09:35.951>services <00:09:36.476>to <00:09:36.596>begin <00:09:36.956>in <00:09:37.029>the <00:09:37.129>first <00:09:37.379>quarter <00:09:37.756>of <00:09:37.889>2027, <00:09:39.057>when <00:09:39.596>it <00:09:39.699>expects <00:09:40.076>to <00:09:40.185>recognize <00:09:40.749>revenue <00:09:41.229>and <00:09:41.459>related <00:09:41.902>costs.

102
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<v Cassidy>We’re <00:09:43.393>also <00:09:43.693>watching <00:09:44.089>its <00:09:44.255>target <00:09:44.582>of <00:09:44.929>350 <00:09:45.649>megawatts <00:09:46.262>of <00:09:46.502>AI <00:09:46.836>cloud <00:09:47.233>data-center <00:09:47.827>capacity <00:09:48.716>by <00:09:48.949>the <00:09:49.049>first <00:09:49.299>quarter <00:09:49.702>of <00:09:49.969>2028.

103
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<v Cassidy>Links <00:09:51.836>to <00:09:51.942>every <00:09:52.276>story <00:09:52.649>are <00:09:52.796>in <00:09:52.889>the <00:09:53.057>show <00:09:53.316>notes.

104
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<v Cassidy>Take <00:09:54.409>a <00:09:54.481>look <00:09:54.662>at <00:09:54.805>anything <00:09:55.109>you’d <00:09:55.281>like <00:09:55.462>to <00:09:55.619>explore <00:09:56.029>further.

105
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<v Cassidy>That’s <00:09:57.676>AI <00:09:57.942>Daily <00:09:58.249>Briefing <00:09:58.629>for <00:09:58.769>today.

106
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<v Cassidy>This <00:10:00.102>is <00:10:00.249>a <00:10:00.339>Lantern <00:10:00.789>Podcast.