Key Takeaways

• Companies are racing to acquire key resources: intelligence, energy, capital, and labor.
• Control over these resources can lead to infinite capital generation.
• Euphoria uses blockchain data for real-time trading, enhancing speed and leverage.
• AI advancements are making intelligence a commodity, impacting labor markets.
• Google’s AI tools leverage vast data, enhancing their capabilities.
• Energy is critical for AI development, with future demands necessitating space-based solutions.
• The integration of AI and robotics will transform labor markets and productivity.
• The competitive landscape is shifting towards companies building their own AI chips.
• Tesla’s manufacturing capabilities give it an edge in robotics and transportation.
• SpaceX’s Starship program could revolutionize AI data centers in space.
• The timeline for achieving AGI is accelerating, with predictions moving to 2028.
• The integration of Starlink with consumer devices will revolutionize connectivity.
• Companies unable to compete with giants like Tesla may be absorbed or left behind.

Guest intro

Josh Kale serves as Vice President of Construction at Clayton Construction Company. He brings extensive expertise in high-performing commercial construction projects, leveraging over 40 years of the company’s experience in delivering exceptional results. His insights on infrastructure and energy align with the converging forces shaping capitalism’s future.

The race for key resources in capitalism

• Companies are striving to acquire intelligence, energy, capital, and labor to dominate capitalism. “There are these four puzzle pieces that I think companies are racing towards acquiring all four of them… if one company gets all four they like win capitalism.” – Josh Kale
• Acquiring these resources reduces the need for capital, allowing for infinite capital generation. “If you capture all four then the number gets reduced down to three because you won’t need capital anymore… to generate infinite amounts of capital.” – Josh Kale
• Energy is the most critical resource for advancing AI and intelligence. “The only one that truly matters is this energy pillar because in the absence of it there is no capital there is no intelligence it is a direct downstream effect of energy.” – Josh Kale
• AI data centers will consume a significant percentage of US energy by the end of the decade. “The projections by the end of this decade for AI data centers are going to consume a huge percentage of that if we don’t build more energy.” – Josh Kale
• In a world of abundance, wattage may become the new currency instead of traditional money. “In a world of abundance like we’re kind of hinting at energy does become the end state of capital too where the end currency is likely wattage instead of dollars.” – Josh Kale
• We are producing more GPUs than we can power, leading to potential idle resources. “It appears as if that is the current trend… there will be dark GPUs because we just can’t power them.” – Josh Kale
• The energy problem for data centers is twofold: insufficient grid capacity and regulatory hurdles. “It’s due to two things… the grid doesn’t have a sufficient amount of energy… they’re meeting a lot of resistance through the cities that they build in.” – Josh Kale
• We are likely to hit a chip wall in the next couple of years without more fabrication facilities. “I don’t suspect that will continue to be true because we are very much going to hit a chip wall in the next couple of years should there not be more fabs that come online.” – Josh Kale

Euphoria and the future of trading

• Euphoria leverages real-time blockchain data to enhance trading speed and leverage. “Thanks to megaeath’s real time blockchain euphoria is the way to get real time price interactions with the market.” – Josh Kale
• Euphoria allows users to compete in a social trading environment. “On euphoria you’ll be able to compete with friends using euphoria’s real time social trading experience allowing you to go head to head with your friends.” – Josh Kale
• The transformer architecture is key to scaling intelligence in AI systems. “The transformer allows you to put energy in one side and like you mentioned you get intelligence out the other and it’s proven so far to scale with the scaling laws.” – Josh Kale
• Intelligence will become a commodity in the near term due to advancements in AI. “In the near term intelligence is just going to become such a commodity and there are companies out there that are doing that that are working towards that puzzle piece.” – Josh Kale
• Abundant intelligence is transforming how individuals and companies operate by making knowledge more accessible and intuitive. “Now not only are there more people capable of using these tools to gain leverage but the people who are not natively inclined to do things like write code or program or optimize their business can just ask the questions to an AI and defer to that.” – Josh Kale
• AI can serve as a central intelligence for companies, reducing bureaucracy and improving operational efficiency. “What Google is trying to do is it allows its AI models to be the central intelligence of other companies and so somebody can query the local LLM about what the f is going on and all of a sudden like you automate so much labor which requires this internal bureaucracy.” – Josh Kale
• AI can flatten organizational hierarchies by providing insights that bypass traditional middle management. “The intelligence when applied to a company like that it kind of flattens the hierarchy where generally there’s layers of middle managers that are reporting up the chain and it’s a very lossy system that requires… a lot of bureaucracy with AI…” – Josh Kale
• Google’s extensive data collection creates a strong user retention advantage. “Google knows everything about me… having all that value in one place is extremely sticky and makes me as a user want to come back.” – Josh Kale

Google’s strategic position in AI

• Google’s dominance in AI is underscored by its exclusive deal with Apple, valued at $1 billion annually. “They signed a deal with Apple and they are going to be the exclusive AI provider for Apple’s new intelligence because Apple just couldn’t do it and that’s a huge deal that is a $1,000,000,000 annual deal.” – Josh Kale
• Google’s AI tools are more powerful because they leverage vast amounts of data stored in their data centers. “My gemini agent that runs in Google Chrome is far more powerful than the one that has access to my desktop because it turns out all of the knowledge work I do all of the conversations I have all the messages are stored in Google’s data centers.” – Josh Kale
• Google’s strategy of subsidizing its products differentiates it from competitors like OpenAI. “Google is explicitly saying no we are going to subsidize our product so that more people use it.” – Josh Kale
• Google’s financial strength allows it to compete effectively against OpenAI by offering superior products at no cost. “Google can come and say hey we don’t need the money now we have a ton of money we just wanna create the best product we’re gonna offer you the best product at the best price.” – Josh Kale
• Google’s TPUs are more efficient than traditional GPUs for AI training due to their specialized design. “It is far more efficient because it is good at the specific type of math required to train these models.” – Josh Kale
• Google is uniquely positioned to lead in AI due to its data monopoly, capital efficiency, and human intelligence. “They’re uniquely equipped across the board… they have all of the pieces they couldn’t actually generate a good consumer product… now they are shipping at a velocity that’s unbelievably impressive.” – Josh Kale
• Google’s acquisition of DeepMind allowed it to invest in long-term research without immediate commercial pressure. “They protected them… just like hey we’re buying you… here’s money to go do research… they bought themselves time.” – Josh Kale
• Google is likely to be among the first to achieve significant advancements in AI technology. “It’s very difficult to make a case that Google won’t be if not the first among the very first to cross this event horizon threshold.” – Josh Kale

The future of AI and robotics

• The integration of AI and robotics will transform labor markets and productivity. “If you replace the person element with a robotic element that works 24/7 that works without making any mistakes… it essentially uncaps what labor markets are capable of.” – Josh Kale
• We will see robots walking among us this year, indicating rapid advancements in robotics and AI. “We are literally building robots this year there are going to be robots that walk among us this year.” – Josh Kale
• The combination of decreasing costs of intelligence and labor will lead to unprecedented increases in corporate profits. “Fundamentally the GDP that comes out for the profits of corporations will just go through the roof because the costs will go down.” – Josh Kale
• The deployment of AI and robotics at scale will unlock new problem-solving capabilities and create significant abundance. “When you deploy these at scale you create this new unlock and Jevons paradox where you… have all these cool new problems that you could set it to solve and there’s so much abundance that comes from it.” – Josh Kale
• AI can effectively automate knowledge work as long as the outcomes can be verified. “So long as you can verify the outcome of your knowledge work on a computer you can train an AI to do it effectively first and then perfectly at the end state.” – Josh Kale
• The future will see a significant shift towards automation, with AI and robotics outperforming human labor. “It makes sense that at the limit basically all labor will be done through some sort of artificial intelligence system and some sort of robotic vessel for it because it again it’s just at the limit it is so far superior.” – Josh Kale
• The transition to a more automated society does not have to lead to a dystopian future. “The backside of it doesn’t have to be the doomer take… there’s going to be a lot more opportunities for that as the need for this labor continues to decrease.” – Josh Kale
• The idea that free labor and intelligence will lead to a negative societal outcome is misguided. “I will not be psyop ed into believing that when labour and intelligence are free that my life gets worse somehow… it’s weird that people think that that’s going to like produce like a negative output to society.” – Josh Kale

The role of energy in AI development

• AI data centers in space could become more cost-effective than those on the ground due to energy requirements and the scalability of Starlink. “You need a certain amount of energy in space in order to offset the costs enough so that it’s more lucrative to train data centers in space than it is on the ground.” – Josh Kale
• Cooling data centers in space is more efficient due to the vacuum environment and lack of temperature fluctuations. “It turns out space is a vacuum and in the absence of sun if you just put a little umbrella over these chips it’s fairly easy to cool you just radiate the heat off into space.” – Josh Kale
• Energy efficiency for solar panels in space is significantly higher than on Earth. “When it is outer space it is I think it’s seven to eight times more efficient than it is on Earth because you remove the atmospheric part of the equation.” – Josh Kale
• The development of AI data centers in space could lead to a new industry with vast potential. “There is no outer limit to the type of value you could extract from getting into orbit.” – Josh Kale
• Nuclear energy can support local AI applications on Earth, but for large-scale AI training, solar energy captured in space is more efficient. “Nuclear is great… it might be solar it might be nuclear and nuclear has a very long road ahead of it to get here but if it does that would be awesome… a lot the very energy heavy stuff that should be moved to outer space that will all be solar because it’s so abundant and it’s so much easier than it is to produce nuclear energy.” – Josh Kale
• As energy demands increase, we will eventually reach a limit on Earth, necessitating energy solutions in space. “We’ll reach a limit at some point here on Earth where we will just have more demands than we will be able to supply.” – Josh Kale
• The timeline for achieving AGI is rapidly shifting, with predictions moving from 2027 to potentially 2028. “I remember even last year there was this huge debate about the AGI in 2027… now we’re sitting here in the 2026 and almost everyone is saying well if we’re not getting AGI in 2027 then there’s no way we’re not getting it in 2028.” – Josh Kale
• The upcoming SpaceX IPO will significantly raise awareness and investment in space resources and innovation. “SpaceX is IPOing this year dude… I think that is going to make people like wake up to like the TAM of space being like turned expressed in financial markets here on Earth big time.” – Josh Kale

The impact of Starlink on global connectivity

• The integration of Starlink with consumer devices like iPhones will revolutionize global connectivity. “You’re telling me in the future there’s going to be an iPhone model that connects to Starlink and that’s where I get my data from? Yes, in the same way that it works right now with SOS…” – Josh Kale
• Starlink’s technology aims to provide internet speeds comparable to LTE and 5G through satellite connections. “Starlink is going to do that but at speeds that are comparable to LTE and 5G.” – Josh Kale
• The world is beginning to recognize the practical value of space technology and its applications on Earth. “The world is waking up to the sci-fi future that actually is here… that is changing.” – Josh Kale
• Companies that cannot compete with the scale of giants like Tesla and SpaceX are likely to be absorbed or left behind. “When we talk about like winning capitalism what you ultimately see is like a lot a lot of companies just can’t compete with the scale of what some of these companies are going to produce… part of this like you gotta make sure that you place your bets right according to have like effective exposure to the future comes with like not buying companies that are gonna get gobbled up.” – Josh Kale
• Acquisitions are often more lucrative than developing technology in-house due to time constraints. “Nvidia just bought them up because it’s more lucrative to absorb that than it is to create it to yourself because time is such a constraint here.” – Josh Kale
• Competing in the software space is extremely challenging due to the rapid emulation capabilities of AI. “The real war is going to be fought in the world of atoms outside in the real world because physical things are difficult to move and they take time to move.” – Josh Kale
• Amazon could become the logistics engine of the world by leveraging its extensive infrastructure and automation. “I could see a world in which Amazon becomes the logistics engine of the world where they become responsible for a lot of the transportation of goods and services.” – Josh Kale
• Microsoft’s ownership of OpenAI gives it a significant advantage in the AI landscape. “The best thing Microsoft has going for it is the fact that it owns half of OpenAI.” – Josh Kale

Challenges and opportunities for major tech companies

• Microsoft is in a challenging position as it competes with companies that generate new value rather than just selling services. “It’s kind of just selling services to people without generating a lot of new value… they have a huge amount of capital… they need to win on some of the other pillars if they could do it if they could turn things around they have a very real chance.” – Josh Kale
• Meta has invested heavily in labor and resources without delivering significant results. “Meta probably spent more money on hiring employees and acquiring that labor than any other company on earth and they really don’t have much to show for it.” – Josh Kale
• The metaverse, which Meta has pivoted towards, currently lacks a tangible existence despite significant investment. “There is no metaverse but there’s a ton of spending and a full company pivot towards that.” – Josh Kale
• Meta’s strategy of focusing on the internet rather than innovating in hardware and software is flawed. “When the world decided that it got too deep in the internet and it wanted to pivot from bits back into atoms meta went even further into the internet and that was the incorrect trend for meta’s strategy.” – Josh Kale
• Apple has failed to leverage its most popular consumer device, the iPhone, to innovate in the AI space. “They had an opportunity to turn the iPhone which is the most popular consumer device ever into a supercharged version… but they failed to do that with Apple intelligence.” – Josh Kale
• Apple and similar companies are not creating new products that unlock new use cases and productivity. “They’re extractive they’re profit generating engines that the market loves but they’re not creating net new value in in this world of abundance they’re not creating new products that unlock new use cases and new potential and new productivity.” – Josh Kale
• Companies like Apple may struggle to scale in a future dominated by AI and embodied intelligence. “Their failure to deploy these resources in this new world of AI intelligence energy labor, they’re going to have a really difficult time scaling once we do cross that threshold once we do get the general intelligence and this physically embodied AI systems at scale.” – Josh Kale
• Google, Tesla, and SpaceX are strong contenders for future leadership in technology due to their innovative synergies. “I feel like Google’s a very strong contender very strong I really like the synergy between Tesla SpaceX and xAI.” – Josh Kale

Tesla’s unique position in the tech landscape

• Tesla and its associated companies have a unique convergence of capabilities that no other company currently possesses. “There is no other company or convergence of companies in the world that currently has these four pillars in a like choke hold that Tesla does.” – Josh Kale
• Tesla, SpaceX, and xAI are positioned to potentially win across all four pillars of workforce, capital, intelligence, and energy. “Tesla and SpaceX and xAI have a chance to win on all four simultaneously and that’s very much what they’re doing.” – Josh Kale
• Companies that have grown to a large scale may struggle to pivot without disappointing stakeholders. “A lot of these companies have grown to a scale that makes it very difficult to pivot without disappointing the right people.” – Josh Kale
• Elon Musk is potentially the best operator we’ve ever seen, evidenced by his track record. “The one thing that you can say confidently about Elon Musk is that he is an incredible operator he is potentially the best operator that we have ever seen walk this walk this earth he’s just got the track record to prove it.” – Josh Kale
• The convergence of resources among companies like Tesla and SpaceX is accelerating their growth. “There is no slowing down the momentum in fact it’s just moving faster because they’re all converging on each other in terms of which resources the other company needs.” – Josh Kale
• The market will increasingly evaluate companies based on their access to capital, energy, labor, and intelligence. “The idea of the framework of like which of these companies can access capital energy labor and intelligence for free is a good framework.” – Josh Kale
• Investing in companies that can create uncapped market value is crucial for future growth. “If the answer is yes and if the answer is they have proven that they’re capable of doing it then there’s a strong case to be made that they’ll be more valuable tomorrow than they are today.” – Josh Kale
• Companies that can break through current market ceilings will significantly contribute to global GDP growth. “The ones that are able to break through the glass and actually create net new value for the world to increase the GDP to offset a lot of the debt that we’re printing those are going to be the ones that accelerate.” – Josh Kale