After Meta's 'scorch the earth' open-source strategy stumbled, Zuckerberg pivoted to a price war, publicly claiming Meta's new model matches frontier quality at roughly 1/100th the cost.

35:11those two. SpaceX has released an incredible model, you know, in the last two days. Meta's out with, you know, a terrific model today. So, Gemini is still in the hunt. So, there are lots of choice. The meta thing was really intense because I thought okay you know we talked about the game theory which was Mark should scorch the earth with open source. I think they flubbed that

35:36play >> but then I think he is now said he's going to create a price war and so if you look at the tweet or the quote there was a post Jason I don't know Nick if you can find it >> I got it >> announcing it he was basically like hey guys I'm going to give you the same quality at like 1/100th of the cost. Now

35:53again, >> there's a lot between here and there. There's a lot of enterprise distribution that's required and you know this there's been a couple of misfires before, but I thought it was interesting that the vector of challenge was on cost. >> Yeah. Here's the Mark Zuckerberg tweet. Just sorry I queued up for you there, Brad. And he's at D, that was his old handle back when he was in college, fd.

36:14And he's done more tweets today over this Muse Spark announcement than he's done in his history. So he's getting into the X.com conversation. Quote, "Today we're releasing new Spark 1.1, a strong agentic encoding model at a very low price. It's available through our new meta model API and in meta AI." So he's coming out saying, "Hey, we got the strongest agentic tool here. Please come use it." He also wants to have his own

36:40essentially, you know, he he wants to jump into not the hosting space, but he wants to provide tokens as well. So again, I think we're going to have a tremendous amount of selection. The competition is great for America, but I think if you look at the things people are doing, let me give you an example. The premium workload, Jason, you talked about summarizing a document may take 20,000

37:03cheap tokens to do. Of course, shoot that to a lagging model or an open source model, but if you're talking about replacing a software engineer for 2 hours, that may take 2 million expensive tokens. And the consequence of using something that's 95% as good is really high, right? Because you have a longunning task and if the task breaks early or it breaks in the middle or breaks at the end, there's a huge cost