Brief Summary
This episode of This Week in Startups discusses the latest developments in AI, including the rise of AI-generated video games, the growing use of GPUs in cloud computing, and the challenges of using nuclear power to fuel AI data centers. The episode also explores the potential impact of self-driving cars on the future of transportation and the sharing economy.
- AI-generated video games are becoming increasingly sophisticated, with companies like Decart creating real-time open-world AI models that can generate games as players interact with them.
- Nvidia is now the most valuable public market company in the world, but there are concerns about its accounting practices and its dependence on a few large customers.
- The use of nuclear power to fuel AI data centers is facing challenges, with regulatory hurdles and environmental concerns hindering progress.
- Self-driving cars are making significant progress, with companies like Waymo increasing the number of driverless rides they offer in California.
Colic and Election Security
The episode begins with Alex Wihome and Jason Calacanis discussing their weekends. Alex shares that his weekend was rough due to his baby going through a period of colic. Jason then transitions to discussing election security in America, emphasizing the importance of understanding the process and the reality of its security. He argues that despite concerns about election insecurity, the system is actually becoming tighter and better every year, with 35 out of 50 states having voter ID laws and watermarked ballots. He also points out that the lowest swing state in the upcoming election is Georgia, which requires a significant number of fake IDs and ballots to swing the outcome, making widespread fraud extremely difficult.
Nvidia's Market Cap and Round Tripping
Jason and Alex discuss Nvidia's recent achievement of becoming the most valuable public market company in the world, surpassing Apple, Microsoft, Alphabet, Amazon, Aramco, and Meta. They also discuss Nvidia's upcoming replacement of Intel on the Dow Jones Industrial Average, which is seen as a significant milestone for the company. However, they also address concerns about Nvidia's accounting practices and the possibility of round tripping, a practice where a company invests in another company that then purchases products from the investing company. They analyze a Twitter thread that raises concerns about Nvidia's financial hygiene, specifically regarding sales rebates, the lifespan of its H100 chips, and loans given to GPU cloud providers. Jason argues that while there are some valid concerns, the scale of the alleged round tripping doesn't necessarily indicate a "house of cards" situation. He also highlights Nvidia's dependence on a few large customers, which could pose a significant risk to the company's future.
Nuclear Power for AI
Jason and Alex discuss the challenges of using nuclear power to fuel AI data centers. They highlight the recent roadblocks faced by Meta and Amazon in their attempts to build nuclear-powered data centers. Meta's project was reportedly thwarted by the presence of a rare species of bee on the land, while Amazon's plan to build a data center next to a nuclear facility in Pennsylvania was rejected by the Federal Energy Regulatory Commission. They discuss the complexities of interconnection agreements and the potential impact of these setbacks on the future of nuclear power in the AI industry. Jason argues that the US needs to find a way to overcome these hurdles to avoid falling behind other countries like China, which are aggressively pursuing nuclear power for AI.
Self-Driving Cars and the Sharing Economy
Jason and Alex discuss the latest data on Waymo's self-driving car service in California, showing a significant increase in the number of driverless rides offered. They highlight the growing demand for self-driving cars and the potential impact on the future of transportation. They also discuss the potential implications for companies like Uber and Tesla, which are likely to play a role in the emerging self-driving car market. Jason predicts that the widespread adoption of self-driving cars could lead to a decline in car ownership, with people opting for ride-sharing services instead. He also discusses the potential for a "sharing economy 2.0" moment, where the sharing of goods and services becomes even more prevalent, driven by factors like environmental concerns and the increasing availability of technology.
