smells like a f**king fraud

Hey everyone, me Kevin here about to

head out to go flying and I was reading

this Bloomberg article about Sam Alman

wanting to invest trillions of dollars

in artificial intelligence while

simultaneously saying that we're in

essentially a dot style bubble right

now. I don't know what to make of this

because here's OpenAI, a company that's

worth about $500 billion in the private

market, which is an insane valuation. In

fairness, they get a lot of nice

subscription revenue, that annual

recurring revenue. But that latest GPT5

release has a lot of folks wondering,

hm, are we plateauing the level of

growth we're seeing? Obviously between

uh level three 3 and 1/2 phenomenal 3

and 1 half to four huge then we got

reasoning models which basically let's

just be frank reasoning models are no

more than just doing the prompt

engineering for you right rather than

you going back and forth three times

with different prompts to try to coax

the AI into doing what you want it to do

they try to do that part for you. Uh

obviously the goal here is to increase

the user satisfaction. I actually

particularly like Elon Musk strategy

where potentially what we do is we take

two different reasoning models and then

have them reason against each other

before we provide an answer. But I think

what's happening is we're reaching this

plateau in uh this encyclopedic talking

to you. It's basically a talking

encyclopedia, right? This talking

encyclopedia. We're reaching a plateau

in it. Uh, and so we're constantly

trying to figure out, okay, how can we

deal with eliminating those

hallucinations? Oh, well, let's reason.

Oh, let's have multiple reasoning bots

competing against each other. But we're

from talking encyclopedia to artificial

superhuman intelligence, which is what

Meta is pitching. Uh, and in fairness, I

have good things to say about the Meta

Glasses, though the Meta AI is total

trash since it only translates like

three different languages. Uh, I took it

to Japan. The translating sucks. The

image recognition sucks. Like everything

about the meta part of the meta AI

glasses sucks, but the fact that you

have a video camera and glasses, which I

have them with me for this flight I'm

going on. Amazing. But really a topic

for a different video. You know, Warby

Parker, they're going to be integrating

these. Apple will be integrating these.

Uh Microsoft probably will. Google

probably will. Like they're all going to

get into this, right? But what I'm

really interested in is Sam Olen. Uh oh,

by the way, sorry, quick tangent. uh

plan to send out either today or Monday

uh one of my first buy alerts for sort

of my decade hold pie. So, it'll be a

pie of about 10 stocks and uh these will

be at least 10 year old buys and in

sectors that haven't had these insane

runups yet uh that we've seen already in

some stocks like I mean Palunteer is

really sexy, don't get me wrong, okay?

I'm even so enthralled by Axon, you

know, Palunteer for law enforcement

basically and immigration. Let's go. Uh,

I'm going to Texas.

Like, all right. Anyway, uh, but we'll

be sending that out. So, if you you want

to be a part of that, make sure you join

the Meet Kevin membership. You get

access to all of the courses, lifetime

access, lifetime access to all the buy

sell alerts, and the alpha report every

single morning, which we had a great

alpha report this morning. Now, all that

out of the way, you you got to ask

yourself,

Sam Alman, is he really

just trying to find ways to raise more

money because he realizes

progress is coming a lot slower. They

released five. They had to come out with

one of the old models because so many

people were pissed off at five. Five was

great seen as great for some things like

certain enterprise things but worse for

other things. I'm still seeing insane

hallucinations by the way. Like I try to

get it to tell me basic things but like

hey you know really important things in

my day-to-day life like you know what is

the defense level requirement to equip a

certain type of armor and runescape and

he can't even get that right and it's

GPT5.

It's pretty embarrassing. I just asked

it about the difference between positive

and negative jet fuel because we're

fueling up the jet right now. That's

where I'm going right now. And it's

like, well, any kind of charge is bad.

You have to make sure you ground it. And

I'm like, no, no, you dumbass. It has to

do with anti- ice.

No recollection or recognition of this

at all. And I'm like, can't do

Runescape. can't do aviation, what good

are you? But anyway, Sam Alman's talking

about coming up with creative financial

derivatives to help them finance

trillions of dollars of AI

infrastructure spend. But wait a minute,

y'all have like a 12 billion deal with

Cororeweave, okay? Where Corweave buys

the chips and Cororeweave will bag the

hold the bag of those chips, you know,

when those chips lose value. So

Coreweave holds the bag on the chips

over time as they're fully depreciated.

Meanwhile, they tell you, you know,

they're doing so well because they're

depreciating on a six-year time frame.

We'll be pretty lucky if these chips are

able to function at these revenue rates

and utilization rates in six years. But

whatever, or you know, even three years,

frankly, because then you'll have to

take an extra charge. Also topic for

different video, depreciation schedules.

They're going to hit companies like

Microsoft and Meta in the future, but

whatever. Right now, nobody cares.

What I'm more interested in is why is

Sam Alman signing a12 billion core lease

now all of a sudden turning into oh yeah

we need to spend trillions of dollars on

artificial intelligence and like his

messaging is a little weird. He's

literally saying I understand we're in

like a dot style bubble and I understand

some people are going to think we're

crazy but let us do us. We're going to

come up with creative complex

derivatives to help us finance trillions

of dollars of infrastructure spend for

AI,

which is again weird because Stargate

is, you know, we've only got commitments

of like 80 to hundred billion for the

Stargate Open AI initiative. We've got

capex spend of under $50 billion so far

from open AAI, you know, over the last

couple years. So when you combine this,

it's like, cool. So yeah, we're talking

about a couple hundred billion bucks in

capex spend with open AI. Microsoft and

Meta are kind of matching this. Yes, we

are talking hundreds of billions of

dollars. We know we see it in Nvidia's

revenue. Okay, but where's trillions

coming from? So my take is there are a

few things going on here. Number one,

Sam Alman realizes in order to actually

get to superhuman intelligence, we don't

need to spend a hundred billion. we need

to spend5 trillion dollars. Which then

you sort of like teeter on the question

of okay, are we gonna spend a quarter or

a fifth of our US GDP on an uncertain

superhuman intelligence that you might

spend the money on and then realize

crap, we're just stuck with a talking

encyclopedia. Again, that's my like I'm

not trying to be bearish on AI. I think

talking encyclopedias are great when you

could trust them. I think there are huge

advantages of what AI can do in medicine

and accounting and policing. You know,

what Palanteer is doing, what we're

doing over at House Hack uh with with uh

the identification of wedge deals. You

know, this is like turning my brain into

an AI so we can license it to everybody

in terms of what I think a good deal

looks like. You know, that's those are

profit generating opportunities.

Obviously, you know, by the time we

launch that and and if we pull it off

the way we think we will, we're going to

stop our fund raise because we don't

think we'll need to fund raise anymore.

But that's a totally different topic.

Not trying to solicit an investment. I'm

just saying this is an AI video. Okay.

So, speaking of AI, I mean AI's

basically been driving the whole time

here. I don't even know why I took over

right now. I should just let it keep

driving because it's a right turn on

red, but it doesn't let me activate on

our Oh, there we go. Oh, it let me

activate. Okay. Well, we'll see how it

does. Uh I'm also going to Texas right

now. We're going to be flying to Texas.

is we're going to be checking out. Well,

I got a project for Houseack I got to do

in Dallas. Uh and then we are going to

Austin to check out the robo taxis. Uh

and then I might pop over to San

Antonio. Uh we'll see what we want to do

after that. Uh but uh got a good weekend

ahead. So, uh but I want to go back to

the Sam Alman thing because it's odd to

me like on one hand you're telling me

you want to spend trillions of dollars.

On the other hand, you're telling me

we're in a dotcom bubble. And in an

effort to finance your trillions of

dollars, you're trying to tell me you

want to come up with a complex financial

derivative to help you finance your

trillions of dollars of investment.

Even though that's 20x or more than 20x,

30, 40x what you've spent so far. And

the best that we've gotten is G. Oh,

that's a that looks like a Gulf Stream

coming into the land ahead of me. That's

cool. But anyway, even though you are

moving what I would say is quite

incrementally

like let's put it this way. I don't when

I put together my alpha report for news

or when I make a video like this, I give

you what I think is just pure human

intelligence. Now, when you're using me

as a case subject, there's not even a

lot of human intelligence. We're talking

room temperature IQ here. But I think

that my perspectives are certainly

unique relative to AI. And so, this is

why when I make videos, I refuse to use

AI. So, when I like on the Meet Kevin

app, which you can download for free,

and you see sort of like my outline of

news, when you look at this outline of

news, I don't use AI to put that

together. That's Kevin's writing. And I

make little notes as to like, is this my

opinion or is this like a data point,

right? The green check mark versus the

halo emoji. I do that because I want you

to know what is an actual human thought.

And frankly, when I've used these GPT

Pro, uh, you know, the the um, oh god,

what was the last model called? The, uh,

four, I forgot what they call it now. 40

Pro or something like that. Anyway, I

pay for I pay the 200 bucks a month. I

really feel like I'm getting ripped off.

But I'll say like, "Hey, you know what's

the news for today?" And it'll reason

for like 30 minutes. And then I'm like,

"Man, that's pretty surficial." Like in

that time, I could have just read the

articles myself and then had my own

perspective on them. I feel like it's

just headline reading sometimes. Again,

I'm not trying to be a bear. You can get

into good prompting. You can get into

good conversations. You can get into

good legal drafting. You can get into

really good work. I'm not trying to be a

bear. I'm just saying the talking

encyclopedia has its limitations and

we're coming up against resistance. And

I think that's why Sam Alman is like,

you know, we don't need Stargate and

your stupid 80 to$100 billion of current

commitments and maybe up to $500

billion, which part of that and most of

that is probably just a Donald Trump

knee bend. We need actually trillions of

dollars. Trillions. and in order to

finance it because we can't get enough

money, we're going to come up with some

complex financial derivatives, but but

be careful because we're also in a.com

bubble. I'm like, when I start hearing

about derivatives and complex

instruments to raise money, I start

thinking about bubble.

And this is exactly what I would expect

a bubble boy to say is, "Hey guys,

everybody else is going to suck, but

trust us. Give us trillions of dollars

and after you give us trillions of

dollars, we will make it work. Trust us,

bro. I don't know about that. Oh,

they're setting up for an air show over

here. Maybe I could show you some cool

planes. Stick around for another minute

and we'll see if I can give you a tour

of some cool planes. I think they have

an air show this weekend. I think I'm

getting out right in front of it. But

think about that for a Why do I always

do that? Yeah, they put the window

thingy right where Oh my gosh. I think

there are jets over here. They put the

window thing right where I put my elbow

when I'm driving. Uh, in the Cybert

truck. I don't know, maybe it's just me.

But, uh, I'm not complaining about the

Cybertruck, okay? I like the Cybertruck.

So, if you're a Tesla fan, I'm not

trying to be a Tesla hater. Okay. All

right. Uh, but anyway, so I put all this

together and then I think to myself, I

don't know, Sam Alman, you're starting

to make me nervous because every time

Sam Alman talks like this, Elon Musk

ends up inevitably coming out and saying

things like, Sam Alman doesn't have the

money. He doesn't have the intelligence.

We outperform them. Who's a scam? Sam

Alman or Elon Musk? Reply with one word.

And then, you know, it's always Sam

Alman because otherwise Elon wouldn't be

sharing the screenshot. Who's more

trustworthy, Elon or Sam Alman? It's

always Elon again. Otherwise, he

wouldn't be sharing the screenshot. So,

that just leads to then more potential

malinvestment

from Oh, this is sick. Uh,

look at this. Hold on. Oh, dude. Look at

this. Hold on. Okay, there's my bird

right there. But look at this.

Captain Matthew Davenin. Dude, that is

sick.

That's an extra fuel tank. I'm pretty

sure down underneath. I don't think they

have bombs out here. Anyway, let me make

sure I don't cause any problems here.

Yeah, because there's a plane taxing

right there. Good lord. Look at this.

How cool is this?

This is sick.

Sorry, I'm like nerding out a little bit

about the aircraft.

Uh, anywh who, so

all of that makes me a little nervous.

Now, look, I love Nvidia and AMD and the

money these companies make, but I have

to say I get a little bit nervous over

uh like, hey,

how much not how much are they affected

by this investment from Sam Alman, I

know positively, but how much has the

stock market

uh been, you know, sort of pumped up

under this impression

of uh Oh, there's the plane that was

landing coming in. But how much has the

stock market been pumped up

under this belief that Yeah, boss. We's

going to super intelligence

and uh we's going to win.

Uh you know, I I don't know. It's uh

it's a little scary to me. So, we'll

see. But it is what it is, I guess. So

anyway, uh, thanks for listening to

this. Uh, I do think we'll get a lot of

cool AI in these birds over time, by the

way. Uh, pretty excited about that. And,

uh, yeah, folks,

see you in Texas. Ice here.