Speaker 0:  spacex reportedly showed investors a secret rock powered device before raising nearly 85,700,000,000 in the biggest ipo of the year, but elon musk says the entire phone story is utterly false. either spacex is quietly building a new gateway to musk's technology empire or investors were shown an experiment that may never leave the lab. so the wall street journal reports that spacex showed a selected, set of investors, a slim handset like ai prototype before its june ipo. it reportedly used xai technology, proprietary operating system, and a qualcomm snapdragon processor, but musk denies spacex is developing a phone. so if the report is accurate, musk may be exploring a device that unites groc, starlink, x, and proprietary operating system reducing his dependence on apple, google, and their app stores. what do you think is going on here, john?

Speaker 1:  yeah. believe, i don't believe musk for a second. i i i much i'm much more apt to believe the wall street journal. so, yeah, i i there there's something that he's working on. so, yeah, so it was described as a handset like device specifically designed around ai interactions. and so the reported characteristics included thinner than an iphone, obviously, a qualcomm snapdragon processor, their own proprietary operating system, native integration with xai models, which i wouldn't buy just for that right away. again, like you said, possible starlink, connectivity and an ai first user interface. and so the question is is, why build dedicated ai hardware? well, today's smartphones, they were designed around touch screens. right? it's crazy. i'm i still miss my blackberry bold and all those. but, generative ai changes that assumption that you should be using touch screens because modern ai systems can understand natural language. they can remember conversations. they can complete workflows. they can retrieve information, and they can automate actions. and so traditional operating systems were never designed around continuously running intelligent agents. and so an native operating system could instead make the ai itself the home screen, which i don't know if i'm ready for. do you think you're ready for an ai centric os that kind of you just talk to instead of touching and opening up apps and stuff like that? what are your thoughts?

Speaker 0:  i think it's the future. the more i work with my ai agents and the more ai agents i have, the more i want more channels to talk to them so i can get them to do more things at once. so, yes, you know, some of us are ahead of the curve on that. i won't say i'm ahead. there's lots of people farther ahead than me, but the point i'm making is, yes, i can see this. now you don't believe a word elon musk says, and that's perfectly fine. i think when all of this happens, everybody's gotta do what they gotta do to protect their company, their reputation, their stock, whatever. so that's fine. but elon specifically says he denies they're developing a phone. he didn't say we're not developing a hardware device. he didn't say, so i just wanna yeah.

Speaker 1:  so i

Speaker 0:  just okay.

Speaker 1:  okay. okay. you're you're gonna yeah. and that makes sense that elon would see something that specific. yeah. for sure.

Speaker 0:  to, you know, twist it so he can come back and say, hey. guess what? it's not it you can you can use it for a phone, but it's an ipad like device or it's an first controlled deck that can you know, talk to the data center, talk to all your cloud stuff, talk to your agents, use local based hard, ai that doesn't cost a bunch of money. now this is where we're heading. and i don't know if they're gonna do it here or not because we're just speculating here. but we're heading to open models or free models that run on your hardware and only go into the cloud for the bigger runs because they need to start distributing the cpu again. so if you're saying, hey. what's the weather like today? should i grab an umbrella? well, let's run that on local ai. you're not, doing a stock market analysis or creating you know, there's a bunch of stuff you can start taking these jobs. and when you start looking at, like, chatgtp's analysis on what people are using it for, most of it is just common everyday tasks, not actual work. so when you start saying that, okay, these data centers are costing billions and billions to run, but we have a plan to take a big chunk of the traffic that's coming to us off and doing it local so we can focus on the big stuff. that means our data centers get opened up and can serve more people and do all that stuff. and people can't afford to be paying $50 per million output tokens and more, just to get, you know, weather reports or, you know, jokes or whatever they're using. so i think there's a change here. we openai is doing something. apple's suing them for doing something. yeah.

Speaker 1:  we can cover that next time. yeah.

Speaker 0:  and, assuming that they took all these hardware people and they're taking design principles and stuff. so everybody's on a rush to do this ai centric hardware. but we've seen it fail with, what, the humane ai pin, the rabbit r one. but just because the rabbit r one failed doesn't mean it was the wrong idea. i was using microsoft tablets based on windows long before the ipad came out. the idea was good. the hardware wasn't there yet.

Speaker 1:  yeah. and yeah. i yeah. i agree. there is a move to something, and who knows what it is. like, when we made the leak from, no. was it touch screen? yeah. i guess they were no. they weren't yet. from the blackberry bowl to the iphone. that was a huge leap, and there was a lot of, negativity around it, and, it took a while. so i think we're in that era. i again, i guess because i can't picture what it would look like, i'm just, and i'm getting older. i'm getting set in my ways. so, yeah, it'll be interesting. i know just a sidebar. commodore just released go they're going backwards. they released a flip phone that, that, gets rid of all social media. it's a smartphone running on linux, but runs most android apps. but, i kinda like that. and there's companies releasing, blackberry type devices because people want the keyboard, the hardware keyboard back. it's going to be interesting to see what the next popular iteration or generation of device that would be ai centric will look like. is it going to be elon that releases it? is it gonna be apple? i doubt apple because they're not as innovative as they used to be. again, we can debate that anytime, but, yeah, it's interesting. what do you think? who do you have an idea in mind on who's going to release, the next iterative device that people are gonna fall in love with?

Speaker 0:  it's hard to say. i agree with apple's lost mo a lot of their design mojo. so we'll have to see, you know ipad was their last big device, and that was really still a steve jobs thing, wasn't it? yeah. and the apple watch, i think, was a tim, issue a tim device.

Speaker 1:  wasn't that johnny ives still?

Speaker 0:  well, i think it was tim and johnny ives. but, i mean, the point is i think it it that was not a, steve jobs device. it was in the new era after steve jobs. it's that's the only big device that's been popular after steve jobs. that's what all i'm trying to get at. so i don't know if they got anything left in the tank. everybody's trying to move this way when every one of my computers have some sort of ai agent on it. claude, openai, whatever now have their apps now connect to their agents that are on your desktop that yeah. run and control your desktop. so you can literally just say install this, do this, whatever, and it'll just do it on your machine. and once the world starts understanding that, the game will change. but because, like, literally, i'm setting up new client machines. one of the first thing i do is set up their ai agent on it to help me set up and document everything we do. so we've got it all configured and ready to go. and then having that connectivity, so no matter where i am, i can continue to work. i can get my status updates, reports. it has all that stuff. they're all moving towards that. they all have apps. they all have this thing now. so why not now move towards a hardware that can kinda separate, some of the requests? not everything has to go. not everything has to have all the context. not everything has to cost you. and why not put that in your own ecosystem where you have your own agent that's local on your hardware that controls all these other things. it is the future because people are realizing that he who controls the harness controls the world. and as soon as, they can build harness in the hardware that's on your device. they're removing the moat of the comp or creating the moat. the competition can't necessarily jump in. if you're running a spacex device, you're not gonna be getting the same, stuff as an openai experience or maybe an opencloud experience.

Speaker 1:  yeah. the one thing about this device that could be a differentiator, is the starlink connection. right? because, if you have a future ai centric device connected through starlink, it could theoretically provide global connectivity yes. remote connectivity, disaster communications, maritime coverage, and aviation connectivity. so, like, you'd because, like, oh, by the way, never take via rail. their wi fi sucks. and it it sucked for years. but, when i was on the train, i could barely use mobile data. i couldn't use wi fi. maybe having starlink could have been a much better option.

Speaker 0:  yeah. i think moving to satellite and all that kind of stuff. and, like, when i say he who controls the harness controls the world, humans aren't spending ai credits anymore. it's agents. and the agents are controlled by the harness that says, you know, do this, do that. here's what you do. here's my skills. here's the loop. my heart beats every 30 minutes. so when i say things like they wanna control the harness, the ai spend is gonna come from your device, not you. yeah. so meaning, you're gonna say, hey. go do this thing, and then you're gonna go for a walk, and your device is gonna go spend an hour doing whatever, booking tickets or break creating a report or whatever. it's spending the credits and spending the money. that's why they wanna control that device and that harness. and, the more they have a clean throughput from the hardware all the way to their back end ai, the better experience they can provide someone. so it's an interesting idea, but it's an expensive world to get into. elon could bypass this. so we've talked about this in the past where i thought it was a mixed mistake for openai to get into phones. but if they can direct to starlink and they can just bypass every, cell phone provider out there, at and t and all that stuff, then maybe this is, something they can get into.

Speaker 1:  maybe this is something viable. for sure, i agree. yep.

Speaker 0:  this could be the first clip that must attempt to control the complete ai stack from satellites and supercomputers to the device in your hand. but today, it remains a disputed prototype, not a spacex phone. if spacex launched a grok device with a global starlink connectivity, would you replace your smartphone, or would this become an ai gadget looking for a reason to exist? let us know what your thoughts are in the chat below.