We are near peak hype

It wasn't thought possible that hype could reach this level, but it turns out it is possible. Hype has reached a new level unseen since 2017 Bitcoin era. And no, I'm not talking about Claude Mythos. That was beta level hype. Okay, we are talking about some sigma level hype going on here. But before we go into the ultimate AI hype cycle, I think it would be good to go down memory lane and just relive some of those great experiences from the crypto times. First off, I know a few of you probably have this shirt sitting in your closet, okay? You probably have a pair of those DMRs just looking fresh like this, man, because that's who you are. You got a few Bitcoin in your back pocket, feeling pretty dang good. Hey, good on you for having that. Okay, buddy. You may not know this, but AI finally just reached the level that crypto hype reached in 2017. In fact, there are two specific events that happened that were so out of control that even to this day, I'm baffled by them. And since I lost all my Bitcoin, I got to make the bag a different way. I know a lot of you have agents and you're letting them run around on the internet on your computer. Stop it. That's the easiest way to shoot yourself in the foot. This is why you need today's video sponsor, Colonel.sh, the crazy fast and open-source infra for your AI agents to access the internet. It takes under 30 milliseconds to spin up one or 1,000 cloud browsers for your agents, and authentication is automatically handled. Right now, over 3,000 teams already use this in production, including Framer and Cash App. So, quit nerfing your agents and give them a real browser. Head on over to colonel.sh and let them use the internet. All right, so the first of the two events was the Long Island IC Tea transitioning from IC Tea to blockchain. They transitioned. Okay, they transitioned from making teas to making blockchains. Now, I don't even know what kind of blockchain would be associated with a Long Island iced tea, but apparently this non-alcoholic Long Island iced tea received a 200% increase in stock price just by simply saying, "Oh, hey, by the way, we're blockchain now." And only a couple years later, Kodak would do the same thing. Yes, Kodak, the camera company, decided that they were going to have Kodak coin to go with their Kodak 1 platform because obviously the only possible way you could solve the attribution problem to photography is to have the world's slowest appendon database. I mean, honestly, it's unfable. There's no possible other way you could solve this. Like, Postcrest doesn't have this technology. You can't just you can't just like make a database of names and and photos. Okay, that doesn't it doesn't work that way, idiot. You can only solve it with blockchain. Luckily, when AI took over the hype cycles, it was just a, you know, is much more tempered. Everything seemed to be a lot more kind of clamped down. Hey, what the hell? Definitely put like some sort of highlight right here. Okay. We've been 6 months away every single month for the last four years from losing our jobs as developers. And just when I thought I couldn't get any more hyped up, it turns out there was actually another level. I told you no beta hype. We need the ultimate hype. So, first I must show you these. These these are shoes. These are wool shoes, okay? Wool runners. They're called allirds. Now, if you were a part of the valley, if you were in the cultural zeitgeist during 2018, you probably heard some people talking about these. I even believe former President Barack Obama was even once caught wearing a pair of allirds. I am now a firm believer that all birds, they're government drones because how can a venture capitalist invest in a shoe company when they don't have souls? These were a fairly hot popular set of shoes. In fact, in 2021, they ended up IPOing for over $4 billion. Google's description of them is a Silicon Valley tale of rapid success and sustainability focused success, which is generally kind of funny considering that every single quarter they lost tens to hundreds of millions of dollars. I don't even know how you lose that kind of money on a product you're supposed to make money on every single sale. Like, how how do you do that? Like, what were you guys even doing? But of course, this is the standard way in which you make money in the Silicon Valley is that you really just got to lose money. If you're not losing money, you're not making money. And if you look at their chart, I mean, it is painful to watch. This is worse than the Figma chart. They started off at just the highest of highs, and now they're sitting all the way down at just a couple dollars. But then the shoe company in which is focused on specifically sustainability, decided AI. Look at this stock. In a single day, they're up 455%. This baffles me. How does the stock market look at a group of people who ran a company worth $4 billion into the ground to be sold for $39 million? By the way, that's how much Allird was sold for. They look at these people and say, "Oh, you know what they're going to do? They're going to start a GPU company." Definitely an easier company to start than a shoe company. And good thing all their shoe expertise is going to come in handy right here. specifically the sustainability part when it comes to data centers. Obviously the stonss go stonk but the people that really felt sad r/allirds. Anyone else feel stupid or betrayed after allirds became newird AI? I'm pissed. I really liked this brand and was aligned with the sustainability messaging. Been wearing them exclusively for the last 5 years. So that is the style you decided to wear for the last 5 years. Yeah, I I'd be upset too. I just feel like an idiot for supporting them all this time. Feels like a slap in the face after all the loyalty they got from me. Anyone else? I could imagine that if you invested into a company because they were sustainable and then their idea of an outcome was to build data centers specifically known for their sustainability. But I prefer the founder of Hashi Corp, Mitchell Hashimoto. Mitchell Hashimoto. Did he name himself after his own corporation? I'm excited about the Allirds AI pivot because it's the first completely peer active maxing in public markets and I'm so on board with watching that journey play out. But the thing that I am anticipating, the thing I'm salivating, I cannot wait is for the allirds LinkedIn post shoes are made for marathons and the AI race is going to be the longest. This is what the pivot to AI taught me about B2B sales. But somehow the documents released by Alberts is even better than Reddit. So it first starts off with just saying, "Hey, we did a record sale. We went from 4 billion down to 39 million." It was honestly huge exit for the founders. They're gone. They're definitely out of this company. And along with the exit, they're also going to be getting a $50 million institutional investment for them to pivot to AI. The AI compute and infrastructure strategy and long-term opportunity. Newbird AI expects to use the initial capital from the facility to acquire high-performance GPUs. Over time, the company intends to grow its Neocloud platform. I don't know what Neocloud is. By expanding its compute and service offerings, deepening partnerships with operators and customers, and evaluating strategic merger and acquisition opportunities. Yes, they're going to do all of this with $50 million. I just want you to think about this for a second. How much money is Open AI pouring into these GPU data centers? Hundreds of billions of dollars. Does Sam Alman know you can do strategic mergers and acquisitions for only $50 million? Why is he raising 120 billion? It's this easy. The rise of AI development and adoption has created unprecedented structural demand for specialized higherformance compute that the market is struggling to meet. And allirds 50 million is going to meet those needs. There's so many things that are funny about this. This is a company that went from 4 billion to 39 million. They're going to take a new investment and then they're going to make strategic M&As to get into the GPU space and with that they're going to meet the structural demand for GPUs. New Bird AI is being built to close that gap. You mean this gap right here? Look at how big that is. I can look through it. Like look at how big that is. The thing that's bothering me about all this is that they took a company and somehow created a sustainable shoe company that's unsustainable, losing tens to hundreds of millions of dollars a quarter. And then after taking that from 4 billion to a $39 million sale, they're going to use this expertise to go into one of the most difficult markets that is controlled largely by government, by how much power you can get from the grid. And we're supposed to believe that someone who was good at s well demonstrabably bad at sourcing sustainable wool from New Zealand can run a GPU company. Like this doesn't what is this world we're living in? This is stranger than the Bitcoin world. This is stranger than Long Island Iced Tea. This is stranger than Kodak. The reason why I'm talking about this is because there's a lot of people feeling the hype and the hype has never been more hot. And there were a lot of people that were left holding the bag in the crypto world. So, I don't want you to get so sucked in thinking that the actual end of the world is happening right now with AI. Yeah, it's a cool tool. Yeah, you could do things you probably couldn't do before, especially just given how much time you could potentially save using it. But at the end of the day, it's still just a tool. You don't have to pivot into strategically buying GPUs. But there is a small part of me that kind of actually thinks that I could probably pivot into making GPUs. Like, how hard IS OKAY, [laughter] the name is the A