00:00 Speaker A
Let’s talk a little meta. down this morning after hitting a record high during trade on Monday, on enthusiasm for its revamped AI efforts. In an internal memo, Meta CEO Mark Zuckerberg reportedly announced meta super intelligence labs will be led by former scale AI CEO, Alexander Wang and former GitHub CEO, Nat Friedman. In the first half, meta’s gains outpaced chipmaker Nvidia and the Mags ETF, which tracks all seven mega cap tech giants. For more on how to play the AI trade as we enter into this, the second half of the year, I want to bring in Shay Bollar, who is the futurum chief market strategist. Good to have you here in studio with us.
01:30 Shay Bollar
Thanks for having me.
01:32 Speaker A
Well, you were the person that we were discussing the, uh, the Kobe shoes with the, the Dodgers edition, of course, you’re a native of LA, but all that considered, let’s talk a little meta here for a hot second. As you’re thinking through some of the accelerated investments that they’re making to catch up and further entrench themselves perhaps in some of their AI ambitions here, how are they measuring up against what they’ve already told and sold to investors at this juncture?
02:05 Shay Bollar
Yeah, I mean, first off, as a fellow Angelino, I’m really jealous of those kicks you’re able to get, so maybe I got pair back in home. But for meta, I mean, let’s just do some back of the napkin math. Like it’s a roughly a $2 trillion company. If they fall behind in the AI race, 25% haircut, that’s $500 billion. So, if there’s any kind of hint from Zuck that meta’s falling behind, Lama three, Lama four, there really isn’t that much of a improvement, he’s going to reinvest to get that AI talent because, uh, something that scale AI has is data labeling. And that’s something that open AI, Google uses them for. So he was able to do the shadow aqua higher in order to get Alexander Wang under the hood, uh, as soon as the following week and also damage his biggest competitors because now they’re going to have to drop, uh, scale, and now it’s going to be all under meta’s roof.
03:48 Speaker A
One of my favorite things, and we were talking about this in the newsroom before the show, uh, among our team is seeing these announcements of new core and key profiles that are making moves from like Open AI to Meta. Almost as announced as if they are picks in a draft or as if they’re NBA or NFL players here. It’s been remarkable to watch, but it speaks to how valuable this talent is that’s going into different behemoth, uh, and mega cap tech stock type of companies here for meta and what they’re building out and how that can play out for consumers. What does that timeline look like for your assessment?
04:42 Shay Bollar
I mean, it’s funny you made that comparison because this week is the NBA free agency started. It felt like the AI free agency is beginning right now. And, uh, meta even dropped the roster of the talent they were able to get. And there was a hype behind it because this, uh, this race is just beginning. And we believe at futurum equities that there’s going to be multi-trillion dollars of spend in next couple of years. And in order to do so, you need the biggest AI brains creating these products. And as a consumer, specifically, there is going to be models are going to improve and prove rapidly. Uh, there’s an abundance of them out there now. So because there’s an abundance of models, there’s eventually going to be a production boom, and consumers are going to benefit from that. And I still don’t think, uh, we really experienced the middle innings of this game because genitive AI is just kind of getting started. And the chat GBT moment for genitive AI hasn’t happened yet. So as soon as the first company solves that next wave, I think we’re going to get a better sign of who’s going to be the winner in this super AI intelligence because that’s what all the hyperscalers are racing towards. Who will be the super AI intelligence winner?
