The final exit is you

So Elon Musk is absolutely getting crushed today and I want to give you guys the latest as we got a lot to talk about with AI and robotics. This is the headline then, Elon Musk stocks take 1.5 trillion hit with fresh test in SpaceX lockup ahead. Yes, I heard that correctly, 1.5 trillion to the downside. And essentially insiders for SpaceX are going to be able to start selling next week and prepare for fireworks. So we're going to keep an eye on that. Cybertruck dubbed the biggest flop in automotive history, which of course it is, right? We kind of all saw this coming. The thing's ugly, the thing's expensive. He promised they're going to sell a whole bunch of these things. They're not selling that many. Again, the biggest flop in history. This is coming from PPPooPoo, for real. PPPooPoo says, can someone good at technical analysis help me decipher this? And it has SpaceX going down, what, 29% this month. Here's a couple of replies. One person writes, it's pretty obvious, no? When it hits 69, it's going to go vertical all the way to 420. Funding secured. This is classic return to earth pattern. That's actually pretty funny. You know what? Honestly, in this day and age of meme stock trading, I wouldn't be shocked if someone's going to start, you know what, I'm going to put a big buyer at 69 and sell off an AI and chip stocks is now hitting one of the biggest names in the market. And that is SpaceX. SpaceX shares have fallen 20% below their IPO price. That's more than $1.2 trillion of value erased since last month's peak, which was just within four days or four trading sessions of the listing. Bloomberg's Bailey Lipschultz tracking the story, a lot of traffic on this one straight away. On the sell side, everyone's pretty bullish on SpaceX. But in the weeks that have followed that IPO, it's been a downward trajectory. And we've seen kind of a war, if you will, with short sellers piling in about 30% of the shares are sold short. So shorts are making a lot of money. To your point, the sell side came out very optimistic, unsurprisingly, because either their banks worked on the IPO and made it pretty hefty fees, or they want to kind of cozy up to SpaceX management and be able to tout relationships. The big question now is what has fundamentally changed about the story? All the marketing, the sell side, right, the Wall Street people that come out on TV and tell you that, oh, you're totally gonna buy this thing. But that's messaging to retail investors. And they mentioned it, and they're trying to keep a straight face on Bloomberg, because, you know, anyone who watches this, you understand what's going on, is if Wall Street is profiting off, you know, these big IPO deals, and they were having massive parties with the whole IPO thing, and then they release it to the public, right, to retail, they make money off of this stuff. And that's why they have to go out and sell this stuff to you. And then you see these like ridiculously whacked out stuff when people go on TV and say, oh, yeah, data centers in space is totally going to be a thing. I have a million questions about how you're going to accomplish that. But like, it seems that you've done so many interesting things. And at the beginning, I knew what you stood for. I'd love to hear your conception of it now and whether or not it's evolved at all. I think this will be the greatest thus far technological achievement of human history. But the only way that it really matters is if it makes people's lives like much better than they otherwise would have been. And so part of that is about giving people material abundance and access to do whatever they want and to express their creativity and desire to help each other. Another part of that is making sure that people maintain control and agency, and that the world is increasingly not decreasingly democratized and that people get to express themselves. So on the positive, do you trust Sam Altman? I'm watching this guy and was like, what are you looking at? He was like, looking down at the ground or something. Like the guy's asking a question, but that thing was whacked out. And he starts talking like Elon Musk kind of stuff. And this is the world that we live in. There's all these like tech bros to promise you we're all going to have this great future. They're just popping out of the When Steve Jobs launched the MacBook, he famously said it was like a bicycle for your mind. Well, at Genie, we've created a mind for your bicycle. Let's check it out. You heard it correctly, a mind for your bicycle. So I guess this is an autonomous bicycle or something. It says introducing Aladdin, an autonomous moped built to be your personal assistant. So this is going to be your autonomous moped personal assistant, most physical AI assistants save you minutes. Aladdin is designed to save you hours. Pre-order yours today. Maybe guys, maybe. The couple of things I want to say about this is, okay, if any of these business ventures end up becoming profitable, right? Let's say, for example, there's a future in automated mopeds. You totally want one, right? Then there's going to be a lot of people piling into this stuff. And so this idea that there's ever only going to be one company is kind of ridiculous. Sometimes you can be the first mover. That's true. And maybe early on for, we'll say a couple of years, everything's great because you're the only player in the game. But then again, if this ends up being profitable, more people will jump in. Also being first mover has a lot of risks because it's not necessarily a proven business model. I'm not convinced that automated mopeds is a thing, but there's that. Here's another one. This is a Tao Robotics. They're going with, this is going to be like a robot house cleaner thing. And I'm looking at this thing, it looks like it's a, how can I say, a wifi thing on top of its head. I mean, you can see it there, right? This is the way that it looks. And this guy was saying, I think they want to charge you like $30 an hour for this thing. And there it is right there. And it's going to clean houses supposedly, right? And one thing I will say about their design is they're going with the claw kind of thing, where Elon Musk and the Tesla bros always are bragging about how their Optimus robot has fingers and stuff. But it's not necessary. The claw thing could actually work okay. Is this a particularly great version of it? I mean, I'll let you guys be the judge of that. That feels pretty magical. Pretty cool. This kind of sounds like personal agent-ish. What are the barriers to everyone having that? I want that. Compute, man. Let's imagine that we could build this product. This product that could just do exactly what I said for all your stuff. Always on. Always on, looking at everything you look at your computer, listening to every meeting that you're in, reading every document you read. And then not only that, not only can it do all that, which takes a lot of tokens, you can just drag a slider about like, while I'm asleep, you can spend this many tokens thinking. Like, come up with useful new ideas for me. Do whatever work you can. And then just keep thinking about what I should do next. What an interesting thing is. Just spend more compute. You guys, I want to hear in the comments, is this the future that you want? Do you want these bros with their robots and their digital assistants 24-7 listening to what you're saying, looking at what you're doing, and then I guess you got these sliders to determine by how much. So there's that. This is the competition in China. This is actually pretty interesting. They were testing how well this robot could stand back up. So they're basically throwing it down, kicking it down, etc. I think this stuff, you know, coming, it's not just China. Multiple countries are going to come out with this stuff. There's going to be a lot of competition in space if this indeed is the future. This is, I mean, just be ready, guys, you can see for yourself. This is, you know, apparently pretty good, we're saying stability because they're not going to, they're doing quite a bit of things to it. Who knows, maybe this will be a sport who can knock down the robot horse. So there's that. This is our future. This is actually coming in from the Pentagon. Hey, everybody, please seated. Thanks for coming. I used to do things like this without this, but at 65, I'm getting a little forgetful. So I got it here. Anyway, I'm here to give an introduction for Secretary Hexheth, who today is going to talk about how he's going to lead us in the transformation of the Pentagon, how we do things there. I'd also like to thank our great president, President Trump, for giving me the opportunity to serve our great nation. I mean, he's incredible. Change agent, all the amazing things he's doing so quickly. So, you know, when the Trump people often cough when they're, you know, saying questionable things, I guess this guy's tail is like the face rope. Trump, oh, he's a totally honest guy. And Hexheth, oh, yeah, I trust that guy. But this is this is what's going on. It actually is pretty interesting. This was in Bloomberg today. They were talking about that was Feinberg, who just saw how the defense is partnering up with Wall Street, et cetera, to get a bunch of more essentially money out quicker to people like an Elon Musk or, you know, various tech companies to, how can I say, put startups with the military spending? The description of it says last year, Deputy Secretary of Defense Steven Feinberg walked on stage at the National War College. That's what you just saw right there in Washington and announced that the military was overhauling how it buys weapons. Right. So we got to get this stuff in a hurry. Another quote was, we do things in a very old manner, a slow manner, a bureaucratic manner, and we must change that. The contractors who are willing to change with us will prosper and grow. Those who don't and resist will be gone. Hop Aero is building rockets that deliver cargo anywhere on Earth in minutes, including contested environments. Here's how it works. Rook carries 250 kilograms up to 750 kilometers, far enough to launch from Okinawa and reach Taiwan in 15 minutes. It takes off and lands vertically, so it doesn't need a runway or fixed infrastructure. Rook runs on storable propellants, so the entire rocket sits inside a standard shipping container, dormant for up to a year, and then launches at the minute's notice. We hold a $1.25 million contract with the U.S. Air Force. We stood up our own test site at the Oklahoma Spaceport from scratch in just four months, hot-fired our engine that's designed completely in-house using AI, and we've tether-tested a prototype hopper. Come fly with us. I see. They must be hiring then. That's why they're saying, come fly with us. So the question I pose to you, and this appears to be an AI video of their rockets, the question I pose to you is, do you think this is a plausible business model? Apparently, this is where our tax dollars are going, and they want to speed this kind of stuff up to AI startups or otherwise. And remember, Trump kids are connected to some of these drone companies, so this one appears to have rockets and drones. So then I guess if you want to get the contract, say, hey, we're going to use X drones. Oh, by the way, it's connected to the Trump kids. This is how things are playing out. To me, it's all ridiculous, but I just want to get your opinion. I'm just showing you what it is. And actually, some people are calling it out. For example, this says here, more than 1,100 AI staffers call for US to pace tech growth. And so apparently, there's a petition going around. And this was just reported a few minutes ago that people on the inside are saying, yo, we need to slow down. Things are getting kind of whacked out. And so I think whenever you have a slide in the tech world and the hyperscalers, I think you're going to see it felt extensively inside the SpaceX shares. I think that's what you've seen in the last couple days. Right. Again, I just want to point out for the Bloomberg Tech audience, George, the stock has really rebounded. It's up almost 3% now in the session. At one point, it'd be down like 2%, which is why we say it was $1.2 trillion or down 20% from the IPO price. Starship still feels important. If you read the prospectus, go back and read it. All of that future business on the AI side, be it Orbital Data Center, be it the sale of enterprise software, is predicated on Starship working to deploy the payload to orbit. What did you make of the test flight and the success of it? Yeah. Again, I think it's another step in facilitation of the strategy. But really, what I want to do is I want to start to see Starship lifting extensively into orbit. They also have to increase capacity on Starship as well. So every success is important. It's also important for Starlink in the near term, but Starlink just won't generate the revenue and profitability in the long run. Always happy to see a successful test flight, but it's just a facilitator for AI data centers in space. So again, this is all about data centers in space. And for any of these things, if you believe he's going to have a million data centers in space, yeah, by all means, it's going to be the greatest company in human history. That'd be according to Musk. Experts warn current Starship heat shield tech is dead. Dead end, actually. Not just dead, but dead end for rapid reuse. So according to some people, I guess it's fundamentally flawed. I showed you guys a little bit of Eric Isaacman before, Jared Isaacman, I should say. And people were asking, is this our head of NASA guy as he was pumping up Musk? If you guys saw that last video, please check it out. But this is where we're at. And apparently, we're still spending more on this data center future. Buildings, power cooling, and connectivity will come to about $14 billion. Some of BlackRock's investments will be funded by a $12.5 billion in debt financing. Joining us now is Robert Chipman, Bloomberg Intelligence Senior Credit Analyst. And again, Robert, it just feels like the need for debt to fund data centers is coming from every corner of this universe. Yeah, there's going to be a lot more spending and a lot more borrowing. And that's adding a little bit to the panic of this market. But I'll tell you, people should be calm. Fundamentals look fantastic. But technicals are off. You know, from an equity valuation perspective, you just talked about a Nasdaq correction. But think about where the Nasdaq is this year. We're still up 7%. We're up 20% over the past year. And then that's what you're looking at. Like he's even saying here, you know, more debt, more leverage, et cetera. But I promise, guys, everything's going to be totally fine. Let's keep borrowing that money to build more data centers. So there's that. And then you get into more whacked out stuff. This is from today. And I think a lot of people are getting hurt right now. Visa is cutting 7% of employees in efficiency push as AI reshapes work. So that is actually 2,600 jobs. I just keep seeing more layoffs. And then this is from the CEO over at Visa. AI is helping, quote, shape the way work gets done at Visa. While a person with direct knowledge said AI was a significant factor, but not the sole driver of the layoffs. And there's been some debate on how much AI played a role in the layoffs at Visa. But it is real jobs. I think customer service is going to take a big hit from this kind of stuff. Layoffs to AI, that's really just like a narrative trick, I think. And doesn't square with the evidence, that the companies that are adopting AI the fastest are the ones that are growing the most. And they're growing, again, with their senior-level employees. Maybe entry-level jobs aren't as robust. Does that mean the worst of the fears, that entry-level jobs will cease to be plentiful, and the career sort of pipeline will be less robust, that those are starting to play out? I think so. So it's a weird time for younger workers. I mean, one thing I'll say is that during times of uncertainty, younger workers suffer from those, because they're a more speculative bet. Whereas if you want productivity today, tomorrow, you hire more experienced, safer bet workers. So that's hurting younger workers. Another thing, which makes me a little more optimistic, is that it used to be when we talked about AI, we were talking about chatbots. And everyone and their grandma can use a chatbot. It's like super low barriers to entry. And what happened was that these chat tools were being used to execute on tasks, but not really used to coordinate tasks and orchestrate tasks. And this coordination orchestration effort was really biased towards senior workers. You know, they have more experience managing. So it was kind of like a seniority-biased technological change. But now when we talk about AI, we're talking about agentic stuff. And that's complicated. Like this is pretty complicated to use, and I think it favors those who are digitally native. So I think that's helping younger workers. At the moment, I have been hearing all around the market, I also hear from people in our community, that young workers are having a really tough time, especially if you're coming out of college, just companies aren't hiring. You can look at the economic factors, the uncertainty, right, regarding the Iran war or the economy. And they can also look at, hey, if we can replace you with AI, we just don't need entry-level type of stuff. So it's actually really tough. I get that. But then he was trying to make the case that, well, younger workers can adapt technology, you know, faster, I guess, and learn to use all these robots, supposedly, or agents. That may have some truth to it. I don't think that's necessarily untrue. But the question is, it's like, where is the intersection going to be? For the future of many industries, though, from the Elon Musk perspective, just, you know, the CEO type dude, they want to fire as many people as they possibly can and just have a bunch of robots running everything. Now, whether or not that's actually going to work, it remains to be seen. And this is stuff that we talked about on the channel. So I do appreciate your time. And I want to hear your thoughts on these things. We got a lot to go over. And I'll catch you all in the next video.