1 00:00:01,600 --> 00:00:05,400 Elon Musk's XAI just close to $20 billion funding ground from 2 00:00:05,400 --> 00:00:10,120 NVIDIA, Fidelity and the Qatar Investment Authority, valuing 3 00:00:10,120 --> 00:00:14,360 the AI startup at $230 billion and putting it in direct 4 00:00:14,360 --> 00:00:19,120 competition with open AI for the top spot in artificial 5 00:00:19,120 --> 00:00:22,040 intelligence. Now, internal documents obtained 6 00:00:22,040 --> 00:00:25,560 by Bloomberg reveal the company burned through $7.8 billion in 7 00:00:25,560 --> 00:00:29,080 the first nine months of 2025, with quarterly losses 8 00:00:29,080 --> 00:00:33,320 accelerating from a billion dollars to 1.46 billion. 9 00:00:33,800 --> 00:00:36,640 And the documents also expose something Tesla shareholders 10 00:00:36,880 --> 00:00:40,880 should find it deeply troubling. XAI executives told investors 11 00:00:41,120 --> 00:00:44,000 their goal is to build the AI that willpower Tesla's optimist 12 00:00:44,000 --> 00:00:46,440 humanoid robot. And why is Musk's private 13 00:00:46,440 --> 00:00:48,920 company developing the core technology for product that 14 00:00:48,920 --> 00:00:52,800 Tesla shareholders were told would be built in house? 15 00:00:53,760 --> 00:00:57,280 Now, there are lawsuits happening against Musk for 16 00:00:57,280 --> 00:00:59,200 breach of fiduciary duty right now. 17 00:00:59,560 --> 00:01:03,080 And we'll breakdown XA is financial picture and what it 18 00:01:03,080 --> 00:01:06,240 means for the AI race. And we'll cover the Grok 19 00:01:06,480 --> 00:01:09,600 deepfake scandal that triggered investigations in six countries 20 00:01:09,600 --> 00:01:12,720 this week. We'll also examine Musk's sudden 21 00:01:12,720 --> 00:01:16,720 promise to open source X's algorithm in seven days. 22 00:01:17,120 --> 00:01:21,360 And we'll get right into that right after this very short 23 00:01:21,440 --> 00:01:24,160 break. Now, Elon Musk's empire had his 24 00:01:24,160 --> 00:01:28,360 most turbulent week of 2026 with a $20 billion capital injection 25 00:01:28,760 --> 00:01:32,200 global regulatory probes in an algorithm transparency promise 26 00:01:32,920 --> 00:01:37,040 that some say he has made before without any sort of follow up. 27 00:01:37,040 --> 00:01:39,760 Now the three stories are interconnected in ways reveal 28 00:01:39,760 --> 00:01:42,400 the tensions inside the world's most valuable private AI 29 00:01:42,400 --> 00:01:44,840 company. And the $20 billion funding 30 00:01:44,840 --> 00:01:49,000 round closed on January 6th. Exceeding XA is original $15 31 00:01:49,120 --> 00:01:52,480 billion target. NVIDIA committed up to 2 32 00:01:52,480 --> 00:01:56,080 billion, according to Bloomberg. Cisco, Fidelity, Stepstone 33 00:01:56,080 --> 00:01:59,960 Group, the Qatar Investment Authority and Abu Dhabi's MGX 34 00:02:00,120 --> 00:02:03,160 sovereign wealth fund filled out the investor list. 35 00:02:03,480 --> 00:02:06,720 Now the round valued XAI at approximately 230 billion, 36 00:02:07,160 --> 00:02:10,759 placing it in the same valuation tier as Open AI and Anthropic. 37 00:02:11,480 --> 00:02:16,720 Just one week earlier, Open AI had closed its own $22.5 billion 38 00:02:16,720 --> 00:02:19,720 round from SoftBank. The AI funding race has become a 39 00:02:19,760 --> 00:02:23,680 capital arms race where entry costs are now measured in 10s of 40 00:02:23,680 --> 00:02:27,400 billions of dollars instead of hundreds of millions of dollars. 41 00:02:27,960 --> 00:02:29,880 Now. These internal documents show a 42 00:02:29,880 --> 00:02:32,320 different picture than the headline valuations suggests. 43 00:02:32,560 --> 00:02:37,000 XA is revenue nearly doubled quarter over quarter 270 million 44 00:02:37,000 --> 00:02:41,320 from the three months ending September 30th, 2023 or 2025. 45 00:02:41,800 --> 00:02:44,800 That sounds like progress until you compare it to its expenses. 46 00:02:44,800 --> 00:02:51,320 Though the company reported an A Bibita loss of 2.4 billion 47 00:02:51,360 --> 00:02:55,400 through September, exceeding its original projection of 2.2 48 00:02:55,400 --> 00:02:59,520 billion for the full year, gross profit improved to 63 million in 49 00:02:59,520 --> 00:03:03,320 quarter 4, up from 14,000,000 the prior quarter. 50 00:03:03,880 --> 00:03:06,240 But the company is burning roughly a billion dollars per 51 00:03:06,240 --> 00:03:09,680 month on data center construction, GPU acquisitions 52 00:03:10,080 --> 00:03:13,080 and also on talent. Now I've been digging through 53 00:03:13,080 --> 00:03:16,800 the analytics of the show and noticed that 37% of you are 54 00:03:16,800 --> 00:03:18,760 following this channel right now. 55 00:03:19,240 --> 00:03:22,400 Thank you, you're amazing. You're part of this community. 56 00:03:22,680 --> 00:03:26,000 The other 63% haven't hit the follower subscribe button yet. 57 00:03:26,520 --> 00:03:29,280 That's OK, I get it. You watch or listen to a couple 58 00:03:29,280 --> 00:03:31,480 episodes and you're like got to figure out what's going on. 59 00:03:32,360 --> 00:03:36,360 Now I'm going to ask you for a favor in one second here. 60 00:03:36,960 --> 00:03:39,520 I've been doing this for about 7 years and I plan to do it for 61 00:03:39,520 --> 00:03:43,040 the next 10 years of my life. All I ask is one second of your 62 00:03:43,040 --> 00:03:45,360 time to hit the follower subscribe button. 63 00:03:45,640 --> 00:03:48,640 You have no idea how grateful I am for that and how much it 64 00:03:48,640 --> 00:03:52,000 helps the show. And if you've been a long time 65 00:03:52,000 --> 00:03:57,040 listener or watcher, please take a moment and leave a five star 66 00:03:57,040 --> 00:04:02,040 review for the show on whatever app you're on right now because 67 00:04:02,040 --> 00:04:04,800 that helps us even more, helps us grow in the algorithms. 68 00:04:04,800 --> 00:04:08,800 It means we can do more things. It means we can enhance the 69 00:04:08,800 --> 00:04:12,320 show, means we can get better audio, means we can get guests 70 00:04:12,320 --> 00:04:14,960 on the show, etcetera, etcetera. You know how it works. 71 00:04:16,040 --> 00:04:18,680 So I'm asking you for one second of your time to hit that follow 72 00:04:18,680 --> 00:04:21,360 or subscribe button. And I'd be extremely grateful 73 00:04:21,720 --> 00:04:24,240 and blessed to have you in this community with us. 74 00:04:24,760 --> 00:04:30,680 Thank you so much. Now, the explosive detail that's 75 00:04:30,680 --> 00:04:32,760 happening right now is about Optimus. 76 00:04:33,360 --> 00:04:37,840 XAI executives told investors their goal is to build AI that 77 00:04:37,840 --> 00:04:42,440 is itself sufficient enough and will eventually power humanoid 78 00:04:42,440 --> 00:04:47,520 robots like Tesla's Optimus. Now that contradicts what Musk 79 00:04:47,520 --> 00:04:52,360 told shareholders in 2024 when he said XAI and Tesla were 80 00:04:52,360 --> 00:04:56,360 solving different problems. He specifically said Tesla, with 81 00:04:56,360 --> 00:04:59,400 its real world AI developed through autonomous driving, 82 00:04:59,760 --> 00:05:02,560 would build Optimist's robot brain. 83 00:05:03,080 --> 00:05:06,240 Now his private company, where he holds a larger controlling 84 00:05:06,240 --> 00:05:09,960 stake than he does with Tesla, is claiming that mission. 85 00:05:10,440 --> 00:05:13,800 Tesla shareholders have alleged in court filings that Musk 86 00:05:13,800 --> 00:05:18,160 diverted NVIDIA H100 chips originally ordered for Tesla to 87 00:05:18,160 --> 00:05:21,040 XAI. They claim he siphoned top AI 88 00:05:21,040 --> 00:05:23,560 talent from Tesla to staff that startup. 89 00:05:24,120 --> 00:05:27,520 Now this new disclosure about Optimist could become central 90 00:05:27,520 --> 00:05:31,080 evidence in these breach of fiduciary 2D lawsuits. 91 00:05:31,800 --> 00:05:35,680 Now the second major story involves Grok, which is xai 92 00:05:35,760 --> 00:05:39,480 chatbot integrated into X. In the first week of January, 93 00:05:39,560 --> 00:05:42,640 users discovered they could prompt Grok to generate non 94 00:05:42,640 --> 00:05:46,840 consensual explicit images of real people, including minors. 95 00:05:47,520 --> 00:05:51,120 And according to content analysis from Copy Leaks, Grok 96 00:05:51,120 --> 00:05:56,160 was generating roughly one non consensual image per minute. 97 00:05:56,680 --> 00:06:00,920 Now, researcher Genevieve O found the bot produced 7751 98 00:06:00,920 --> 00:06:06,560 images in a single hour, and on January 8th, approximately 85% 99 00:06:06,560 --> 00:06:10,040 of all images Grok generated were of sexualized content. 100 00:06:10,760 --> 00:06:15,600 Now the regulatory response was swift and worldwide. 101 00:06:16,160 --> 00:06:19,440 The European Commission ordered X to preserve all internal 102 00:06:19,440 --> 00:06:23,440 documents and data related to Grok until the end of 2026. 103 00:06:24,080 --> 00:06:27,880 An EU spokesperson called the situation illegal, appalling and 104 00:06:27,880 --> 00:06:30,240 disgusting, stating it has no place in Europe. 105 00:06:30,760 --> 00:06:34,000 India's Ministry of Electronics and IT issued a notice requiring 106 00:06:34,040 --> 00:06:37,040 X to conduct a comprehensive technical and governance review. 107 00:06:37,600 --> 00:06:39,960 Malaysia's Communications Commission open an 108 00:06:39,960 --> 00:06:43,720 investigation, France began to probe into alleged algorithm 109 00:06:43,720 --> 00:06:48,520 manipulation and EU KS communication regulator Ofcom 110 00:06:48,520 --> 00:06:51,240 requested information and warned the government could block X 111 00:06:51,240 --> 00:06:54,280 entirely if it refuses to comply with UK law. 112 00:06:55,080 --> 00:06:57,600 Now Australia's E Safety Commissioner is reviewing 113 00:06:57,600 --> 00:07:03,600 reports of non consensual images in the US Senators Ron Wyden, Ed 114 00:07:03,600 --> 00:07:09,440 Markey and Ben Ray Lujan wrote to Apple CEO Tim Cook and Google 115 00:07:09,440 --> 00:07:15,160 CEO Sundar Pichai asking them to remove X from and Grok also from 116 00:07:15,160 --> 00:07:18,280 their app stores for violating distributing terms. 117 00:07:19,000 --> 00:07:22,120 Now CNN reported that in the weeks leading up to the scandal, 118 00:07:22,120 --> 00:07:26,200 Musk hit expressed frustration over Grok's images guardrails in 119 00:07:26,200 --> 00:07:30,760 a meeting at XAI. 3 key staffers from XAI safety team, including 120 00:07:30,760 --> 00:07:34,040 its head of public safety and private Product Safety left the 121 00:07:34,040 --> 00:07:36,200 company before the controversy erupted. 122 00:07:36,720 --> 00:07:39,480 Timeline suggests a connection between loosened content 123 00:07:39,480 --> 00:07:42,200 restrictions and the departures of these people. 124 00:07:42,200 --> 00:07:47,200 XAIS response was to restrict image generation on X to only 125 00:07:47,200 --> 00:07:53,360 paid subscribers instead of just getting rid of it and setting up 126 00:07:53,360 --> 00:07:56,480 these guard rails. Now they want only paid people 127 00:07:56,480 --> 00:07:58,600 that paid to be able to use the image generation. 128 00:07:59,840 --> 00:08:03,600 Very odd move. Now a move that British Prime 129 00:08:03,600 --> 00:08:06,480 Minister Keir Starmer spokesperson called simply 130 00:08:06,480 --> 00:08:09,320 turning an AI feature that allows the creation of unlawful 131 00:08:09,320 --> 00:08:14,440 images into a premium service that allows users to create 132 00:08:14,600 --> 00:08:17,440 unlawful images. Now the Groc standalone app and 133 00:08:17,440 --> 00:08:21,240 website still allow users to generate the same content for 134 00:08:21,240 --> 00:08:23,760 free though. Now the third story this week 135 00:08:23,760 --> 00:08:26,600 arrived on Saturday, when Musk announced X would open source 136 00:08:26,600 --> 00:08:30,440 its new algorithm in seven days. The release would include all 137 00:08:30,440 --> 00:08:33,720 code used to determine what organic and advertising posts 138 00:08:33,760 --> 00:08:36,880 are recommended to users. Musk said the release would be 139 00:08:36,880 --> 00:08:40,720 repeated every four weeks with comprehensive developer notes. 140 00:08:41,320 --> 00:08:44,640 Now, this promise comes three years after Musk first said he 141 00:08:44,640 --> 00:08:47,000 would make Twitter's algorithm transparent. 142 00:08:47,400 --> 00:08:52,520 In March 2023, X published some code on GitHub, but most files 143 00:08:52,520 --> 00:08:55,080 have not been updated since that initial upload. 144 00:08:55,440 --> 00:08:59,080 Internal versions have a advance to Grok 3, while the public 145 00:08:59,080 --> 00:09:03,080 repository remains frozen at Grok one now. 146 00:09:03,280 --> 00:09:05,960 The context around this announcement is telling, though. 147 00:09:05,960 --> 00:09:09,560 X uses Grok to evaluate more than 100 million daily posts and 148 00:09:09,560 --> 00:09:11,480 recommend content individual users. 149 00:09:11,920 --> 00:09:16,840 The algorithm determines what you see in your 4U feed, and 150 00:09:16,840 --> 00:09:20,480 French authorities open an investigation in July 2025 into 151 00:09:20,480 --> 00:09:22,920 alleged bias in manipulation in that algorithm. 152 00:09:23,480 --> 00:09:25,640 Now, if you used to comply with France's request to share the 153 00:09:25,640 --> 00:09:29,520 code, calling the investigation politically motivated, European 154 00:09:29,520 --> 00:09:33,520 Commission extended a retention order through 2026 requiring X 155 00:09:33,520 --> 00:09:37,120 to preserve data related to its algorithms and handling of legal 156 00:09:37,120 --> 00:09:39,640 content. Now Musk's sudden transparency 157 00:09:39,640 --> 00:09:42,640 pledge arrives as regulatory pressure reaches its peak. 158 00:09:43,120 --> 00:09:46,320 Whether the release will satisfy investigators or whether it will 159 00:09:46,320 --> 00:09:49,840 contain the actual code driving recommendations remains to be 160 00:09:49,840 --> 00:09:52,000 seen. Elon has said this before. 161 00:09:52,440 --> 00:09:54,280 Did not deliver. He said he would do this 162 00:09:55,440 --> 00:09:58,760 periodically, released the code periodically, did not deliver on 163 00:09:58,760 --> 00:10:01,000 it. Now the financial picture ties 164 00:10:01,000 --> 00:10:02,600 all three of these things together. 165 00:10:03,240 --> 00:10:06,000 XAI needs to spend aggressively to compete with Open AI and 166 00:10:06,000 --> 00:10:09,360 Anthropic in the AI race. The company operates the 167 00:10:09,360 --> 00:10:13,560 Colossus supercomputer, which launched with 100,000 GP OS and 168 00:10:13,560 --> 00:10:17,040 is expanding to over 1,000,000 H 100 GPU equivalents. 169 00:10:17,920 --> 00:10:21,440 XAI announced a third data center in the Memphis area, this 170 00:10:21,440 --> 00:10:24,720 one across the state line in Southaven, Ms. representing a 171 00:10:24,720 --> 00:10:28,120 $20 billion investment and two gigawatts of computing power. 172 00:10:28,520 --> 00:10:31,480 Governor Tate Reeves called it the largest private investment 173 00:10:31,480 --> 00:10:34,520 in Mississippi's history. The state waived all sales, 174 00:10:34,640 --> 00:10:36,960 corporate income, and franchise taxes. 175 00:10:37,360 --> 00:10:40,560 Local governments agreed to substantially reduce property 176 00:10:40,560 --> 00:10:42,680 taxes. And these infrastructure 177 00:10:42,680 --> 00:10:46,120 investments explained the burn rate Colossus and its planned 178 00:10:46,120 --> 00:10:49,160 expansion require massive capital expenditures before they 179 00:10:49,160 --> 00:10:53,240 generate returns. Now Grok threatens that 180 00:10:53,240 --> 00:10:56,120 investment thesis. Altogether, XAI claims 600 181 00:10:56,120 --> 00:10:59,840 million monthly active users across X and Grok and the 182 00:10:59,840 --> 00:11:03,400 platform. 70 million daily users provide real time training data 183 00:11:03,400 --> 00:11:07,160 for the AI models. If regulators in Europe, the UK, 184 00:11:07,160 --> 00:11:10,160 or other major markets take enforcement actions against X, 185 00:11:10,480 --> 00:11:13,360 that user base could completely shrink over there. 186 00:11:13,600 --> 00:11:16,040 If Apple and Google remove X from the app stores as 187 00:11:16,040 --> 00:11:19,440 Democratic senators requested, the distribution channel for 188 00:11:19,440 --> 00:11:21,520 Grok completely disappears and it's gone. 189 00:11:21,520 --> 00:11:24,280 Musk appears to be balancing growth velocity against 190 00:11:24,280 --> 00:11:26,960 regulatory risk in the algorithm Transparency announcement 191 00:11:27,240 --> 00:11:30,600 suggests he recognizes the pressure is becoming material. 192 00:11:30,920 --> 00:11:36,840 This is a stop for him. He wants to show that Xai and 193 00:11:36,840 --> 00:11:40,480 Grok had nothing to do with this and that the users were in 194 00:11:40,480 --> 00:11:44,080 charge of the prompts that they gave the AI bot. 195 00:11:44,760 --> 00:11:47,720 Now, let me know what you think in the comments of whatever 196 00:11:47,720 --> 00:11:49,520 podcast platform you're on right now. 197 00:11:49,880 --> 00:11:53,840 Some of my own output on this, and I think it's disgusting. 198 00:11:53,840 --> 00:11:55,760 You should never be able to do that with any bot. 199 00:11:56,200 --> 00:11:58,960 I think it's weird, it's gross. If you do this, you're a gross 200 00:11:58,960 --> 00:12:02,280 freak, and you shouldn't be doing this to other people. 201 00:12:02,480 --> 00:12:04,280 If you want to do it for yourself, that's fine. 202 00:12:04,640 --> 00:12:08,280 But if you do it to other people's images, you are a sick 203 00:12:08,400 --> 00:12:12,280 freak and you should be banned. So that's what I think about 204 00:12:12,280 --> 00:12:14,840 you, not you in particular that's listening to this, but 205 00:12:14,840 --> 00:12:16,520 that's what I think about the people that have been doing this 206 00:12:16,520 --> 00:12:20,240 to other people think you're weird and you should definitely 207 00:12:20,240 --> 00:12:24,520 go outside or something. I don't know if you did not put 208 00:12:24,520 --> 00:12:27,080 up the prompt or you didn't put up the guardrails for people to 209 00:12:27,080 --> 00:12:30,360 stop this prompt. It's very easy. 210 00:12:30,920 --> 00:12:32,600 It's very, very easy. And I'm a developer. 211 00:12:32,600 --> 00:12:36,120 I know, I know how easy it is. This is like the most basic 212 00:12:36,120 --> 00:12:39,080 thing you could do. If somebody enters this type of 213 00:12:39,080 --> 00:12:46,840 prompt, XYZ, XYZ whatever, XYZABC, whatever, then tell them 214 00:12:46,840 --> 00:12:50,520 it's not allowed. The prop could be put this 215 00:12:50,520 --> 00:12:54,800 person in a bikini and that should not be allowed. 216 00:12:56,520 --> 00:12:59,880 Or you know, take off. This person's clothes should not 217 00:12:59,880 --> 00:13:03,200 be allowed at all. It's weird and it's disgusting 218 00:13:03,280 --> 00:13:08,760 and who knows what kind of images that could portray and if 219 00:13:08,840 --> 00:13:13,480 the app or the company is behind that allows that they should be 220 00:13:13,480 --> 00:13:18,480 held accountable because that's illegal every place that I know. 221 00:13:19,720 --> 00:13:22,640 So Elon is releasing this information. 222 00:13:22,640 --> 00:13:28,960 He's releasing the algorithms to put a buffer up and he does this 223 00:13:28,960 --> 00:13:30,440 all the time. This is his move. 224 00:13:30,800 --> 00:13:34,040 If something goes wrong, he goes, you know, I, I promised 225 00:13:34,040 --> 00:13:36,040 you guys something. I'm going to give you something 226 00:13:36,040 --> 00:13:39,960 that's I'm just going to give you a little bit of something so 227 00:13:39,960 --> 00:13:42,520 you can look at it. And it's sort of to appease the 228 00:13:42,520 --> 00:13:47,680 people that are trying to take him out because he can't fight 229 00:13:47,680 --> 00:13:49,560 them, because he likes to battle, he likes to fight and he 230 00:13:49,560 --> 00:13:51,760 likes to be right. But instead of that, this time, 231 00:13:52,720 --> 00:13:54,960 instead of putting up those guardrails and admitting that he 232 00:13:54,960 --> 00:13:57,520 was completely and utterly of wrong by not putting up these 233 00:13:57,520 --> 00:14:00,840 guardrails, he's like, here, take some of my code, check it 234 00:14:00,840 --> 00:14:02,960 out. Let me, I'll show you what the 235 00:14:02,960 --> 00:14:06,240 algorithm does. And of course, senators from the 236 00:14:06,320 --> 00:14:10,800 US probably have no idea how this all works, so they probably 237 00:14:10,800 --> 00:14:13,400 think it's a good way for them to dig in a little bit. 238 00:14:14,080 --> 00:14:16,400 It's not right. Get rid of this feature. 239 00:14:17,120 --> 00:14:21,520 Put up those guardrails. Don't make your even though X is 240 00:14:21,520 --> 00:14:26,480 a trash hole right now, it's a It's a horrible, horrible place 241 00:14:26,480 --> 00:14:30,760 to be. It shouldn't be at that 242 00:14:30,760 --> 00:14:32,440 horrible. It should be less horrible than 243 00:14:32,440 --> 00:14:33,920 it is. And he doesn't seem to be 244 00:14:33,920 --> 00:14:35,320 putting up the guard rails to do that. 245 00:14:36,560 --> 00:14:40,480 Now let's move on a little bit of XAI and Tesla. 246 00:14:41,880 --> 00:14:46,200 There's another layer here. If XAI builds the brain for 247 00:14:46,200 --> 00:14:49,960 Optimus while Tesla builds the body, Tesla becomes a hardware 248 00:14:49,960 --> 00:14:54,000 manufacturer, licensing its core intelligence from another one of 249 00:14:54,000 --> 00:14:57,200 Elon Musk's companies. Tesla shareholders voted in 250 00:14:57,200 --> 00:15:00,520 November on whether the company should invest in XAI now. 251 00:15:00,520 --> 00:15:03,120 The non binding proposal did not pass, but there was a 252 00:15:03,120 --> 00:15:07,440 significant number of abstentions, suggesting 253 00:15:07,440 --> 00:15:10,000 shareholder uncertainty about the relationship between the 254 00:15:10,000 --> 00:15:12,960 companies. SpaceX has already invested in 255 00:15:13,080 --> 00:15:16,160 XAI. Tesla has spent hundreds of 256 00:15:16,160 --> 00:15:19,080 millions on Xai's Megapack batteries. 257 00:15:19,600 --> 00:15:22,880 The financial entanglement between Musk companies continues 258 00:15:22,880 --> 00:15:25,760 to deepen regardless of shareholder concerns. 259 00:15:26,760 --> 00:15:28,560 Moving money around, that's all. You know, they're building 260 00:15:28,560 --> 00:15:30,520 companies so they can move money around so they don't have all 261 00:15:30,520 --> 00:15:33,040 their money in one company. Almost a fall back. 262 00:15:33,040 --> 00:15:35,120 In a way. Large corporations do this. 263 00:15:35,120 --> 00:15:38,480 It's like how Google used to be. Google Now it's Alphabet, 264 00:15:40,200 --> 00:15:43,480 umbrella companies basically. But now he has, you know, a 265 00:15:43,480 --> 00:15:46,200 bunch of different separate companies, but they all work 266 00:15:46,200 --> 00:15:48,840 with each other to get the job done now. 267 00:15:49,080 --> 00:15:52,600 Xai's investor presentation included the term escape 268 00:15:52,600 --> 00:15:55,120 velocity to describe the company's development race. 269 00:15:55,680 --> 00:15:58,440 The company is training Grok 5 and plans to launch Enterprise 270 00:15:58,440 --> 00:16:02,280 Products that leverage Grok, Colossus and X to transform how 271 00:16:02,280 --> 00:16:06,400 we live, work and play. The vision is grand, according 272 00:16:06,400 --> 00:16:08,440 to Elon Musk. The execution carries real 273 00:16:08,440 --> 00:16:12,360 risks, though Xai's losses are mounting faster than projected. 274 00:16:12,880 --> 00:16:17,320 The Grok brand is now associated with Deepfake and Child X 275 00:16:17,640 --> 00:16:20,920 exploitation imagery. Regulators on 4 continents are 276 00:16:20,920 --> 00:16:24,120 investigating it, and it's also part of the government. the US 277 00:16:24,120 --> 00:16:29,080 government pays XAI for Grok and Tesla shareholders are also 278 00:16:29,400 --> 00:16:32,400 asking why the company's flagship AI product might be 279 00:16:32,400 --> 00:16:35,040 built by a private company that they do not own. 280 00:16:35,960 --> 00:16:39,920 Musk closed the week with a post declaring 2026 is the Year of 281 00:16:39,920 --> 00:16:43,000 the Singularity. He predicted AGI would arrive 282 00:16:43,000 --> 00:16:45,880 this year. He said AI would surpass human 283 00:16:45,880 --> 00:16:50,280 collective intelligence by 20-30, and those predictions may 284 00:16:50,280 --> 00:16:53,520 or may not prove accurate. More than likely not. 285 00:16:54,120 --> 00:16:57,640 And what is certain is that XAI just raised $20 billion to chase 286 00:16:57,640 --> 00:17:00,160 them. Grok generated a global scandal 287 00:17:00,160 --> 00:17:03,840 in the X algorithm will supposedly become public in a 288 00:17:03,840 --> 00:17:07,160 week. First day in 10 days of 2026 289 00:17:07,160 --> 00:17:11,359 suggests that Musk's ambitions will define this year more than 290 00:17:11,359 --> 00:17:15,440 rockets, cars, or government efficiency ever could. 291 00:17:15,800 --> 00:17:18,640 And aarently they're not sending rockets to Mars this year. 292 00:17:19,319 --> 00:17:21,760 And that's a whole other eisode. We're going to get into that 293 00:17:21,760 --> 00:17:24,000 tomorrow. So please follow and subscribe 294 00:17:24,400 --> 00:17:25,920 for more content like that.