Frontier Labs Threatened by Kimi? Should the US Ban Chinese Open-Source Models & Stripe Buys PayPal

Jason: I don't think you're going to convince me there aren't some data export risks with China based models. You're just not going to convince me based on what I've done with all our agents in building. And if you're not going to convince me, I don't think you're going to convince 99% of the world that there isn't some security leakage issue. It's already scary how much of our data we put into these closed source models in the US. It is scary. Here's Elon saying scam altman every day to create distrust. Right? I there are we cannot understand what these models do. They are connected to the internet. We cannot even even if we have fable read it and have it read it itself. I don't think you're going to convince most of us there isn't data export risk. And so I think that's going to lead to tighter constriction than this you know leave everything open so we can compete in my portfolio company's benefit uh argument. I think every CIO is being told right now, oh don't worry if you hosted onrem, you remove any security risks and the back door then is removed that could potentially be there. Why would you not be alleviated by that reassurance of onrem would solve that solution? Why would you not be reassured?

Rory: the story is inference. Yes. First of all I agree. Yeah inference is a hu it goes back ironically to the prior comment on openweight models. it this kind of standalone inference is a big business right and you know obviously you know inference is both something that's done within the the frontier model companies where they do their own inference and people like Microsoft and Google provide the capex and provide the compute for that but people like fireworks and base 10 they and file they all make their money offering a variety of these open openweight models to third party developers and enterprises that want to use open source models to do AI, right? And it, as I said, the two trends go together. They're exploding because the open source trend is exploding. So if you're base 10, if you're foul more media, if you're fireworks, if you're together, this is your marker than your moment, right?

Rory: If you know the answer to that question, that one question, you know the answer to the entire direction of the US stock market for the next two years because all the hyperscala RPO, all of it is a function of the commitments they've gotten from the the hype from the foundation model companies. And yeah, you can say if the open models, open weight models explode, there will be demand for inference. And yeah, you will have this kind of transition from oh, I sold it to open AAI but I should have sold it to um I don't know cursor or B base 10 or someone else and the capex will get repurposed, but it will be a big ass dislocation and I just genuinely don't know. I mean it's the million-dollar question.