WEBVTT - Your AI Stocks Are at Risk! | Do THIS Before It’s Too Late! 0:00:00.240 --> 0:00:03.880 AI stocks have been on fire, but most investors don't 0:00:03.920 --> 0:00:07.160 realize they're walking into a trap. Now, the entire market 0:00:07.160 --> 0:00:09.720 got a wake up call when China's deep Seek released 0:00:09.760 --> 0:00:13.640 an open source AI model that's shocked everyone overnight. The 0:00:13.680 --> 0:00:17.880 way that investors value stocks, AI stocks, and even indexes 0:00:18.000 --> 0:00:20.959 has completely changed. So if you're holding AI stocks, you 0:00:21.040 --> 0:00:23.319 need to hear this before it's too late. But of 0:00:23.360 --> 0:00:26.360 course don't panic. Look this isn't the end of AI investing. 0:00:26.400 --> 0:00:29.920 In fact, there's a massive opportunity if you know where 0:00:29.960 --> 0:00:31.720 to look. So in this video, I'm going to break 0:00:31.760 --> 0:00:35.000 down why the AI market is breaking down right now, 0:00:35.400 --> 0:00:38.760 how open source models light deep Seek is forcing a 0:00:38.880 --> 0:00:42.879 total rethink of AI stocks and just stocks overall on 0:00:42.920 --> 0:00:45.440 the valuations, and we're going to talk about where the 0:00:45.479 --> 0:00:48.280 smart money is moving next and how to position yourself 0:00:48.320 --> 0:00:51.920 for the biggest gains in the AI next wave real quick. 0:00:51.960 --> 0:00:54.880 I'm Mark Moss. I've built and exited multiple tech companies. 0:00:54.880 --> 0:00:57.640 I've invested through several boom and bus cycles. Today I'm 0:00:57.680 --> 0:01:00.440 a partner at a leading bitcoin venture capital fund called 0:01:00.480 --> 0:01:03.240 the Bitcoin Opportunity Fund. I also write the Quantum Wave 0:01:03.320 --> 0:01:06.720 Investment Report or help investors navigate the biggest shifts in 0:01:06.800 --> 0:01:09.160 tech and money, and I make these videos to give 0:01:09.200 --> 0:01:11.760 you the insights that we're using so you can navigate 0:01:11.760 --> 0:01:14.160 and profit from these shifts as well. So let's go 0:01:16.200 --> 0:01:18.200 all right, we're jumping right into it. We're talking about 0:01:18.200 --> 0:01:21.399 how AI investing is breaking down. Now listen, Look, this 0:01:21.440 --> 0:01:25.240 is not a doom in gloom video. AI is massively transformative. 0:01:25.319 --> 0:01:27.720 It is going to create massive efficiencies, and it is 0:01:27.840 --> 0:01:30.280 changing the world. I use it every day. I'm making 0:01:30.319 --> 0:01:33.000 money invest in it. But if you don't understand the 0:01:33.120 --> 0:01:36.560 nuances of how this shifts, you could lose money. So 0:01:36.600 --> 0:01:40.520 let's break this down. Okay, we know if you living 0:01:40.600 --> 0:01:43.839 under rock that AI has completely skyrocketed really from about 0:01:43.840 --> 0:01:46.039 twenty twenty two to twenty twenty three. It's not that old, 0:01:46.319 --> 0:01:49.200 right open AI storm. The scene was that November of 0:01:49.240 --> 0:01:52.200 twenty twenty two, So all twenty twenty three and twenty 0:01:52.200 --> 0:01:54.800 twenty four, it has been blowing up. It's the darling. 0:01:55.280 --> 0:01:57.840 Wall Street loves that. Every investment newsletter's talking about it, 0:01:58.040 --> 0:02:01.680 and it's like all in right, except for the problem 0:02:01.760 --> 0:02:05.559 is that the way technology works is it moves through 0:02:05.600 --> 0:02:08.639 different cycles, and so what we're seeing is the AI 0:02:09.000 --> 0:02:12.799 business model is changing really rapidly. Right, This technology is 0:02:12.800 --> 0:02:15.639 moving so much faster than previous technology cycles in the past. 0:02:16.040 --> 0:02:18.519 But if you understand that, which I'm going to break 0:02:18.520 --> 0:02:20.600 down for you, you can see that the models shifting. 0:02:20.680 --> 0:02:22.760 So if you're still investing like you were in twenty two, 0:02:22.800 --> 0:02:25.760 twenty three, and twenty four, you're gonna be losing money. 0:02:25.960 --> 0:02:27.600 And now that we'd be losing money, you'll be missing 0:02:27.680 --> 0:02:29.800 out on the massive gains that we have. Now we 0:02:29.840 --> 0:02:33.960 can look at historical parallels the dot com boom and bust, 0:02:34.240 --> 0:02:36.320 we can look at the crypto sort of boom and bust, 0:02:36.360 --> 0:02:38.960 and we can understand the fractals. We can understand how 0:02:39.040 --> 0:02:42.359 those markets evolved. We'll compare it to history and technology 0:02:42.480 --> 0:02:46.240 to understand that, and we can understand that the AI 0:02:46.360 --> 0:02:50.000 stocks that most people think about today open AI being 0:02:50.000 --> 0:02:52.919 the leader, of course Google with their Gemini and so forth, 0:02:53.440 --> 0:02:57.239 they're not really monopolies. And really what it's highlighting is 0:02:57.280 --> 0:03:00.320 that valuation is only a concern when the underl buying 0:03:00.560 --> 0:03:05.600 fundamentals change, and that's the problem. Those fundamentals are changing. Okay, 0:03:05.600 --> 0:03:08.480 so let's understand this so you know how to navigate 0:03:08.520 --> 0:03:11.079 the cycles. Okay, first of all, we do want to 0:03:11.160 --> 0:03:14.000 understand that this is not just about AI or tech 0:03:14.240 --> 0:03:17.320 or stock. It's all the markets as we know them. 0:03:17.360 --> 0:03:19.280 I'm talking about the S and P five hundred specifically, 0:03:19.280 --> 0:03:21.880 I'm talking about the NASDAC. All right, So, right now, 0:03:21.880 --> 0:03:23.440 a lot of people are with your four oh and k, 0:03:23.560 --> 0:03:25.960 your mutual funds or financial advisors. Maybe you're just like 0:03:26.000 --> 0:03:28.800 every two weeks investing and you're allocating to the Nasdaq. 0:03:28.840 --> 0:03:31.680 You're passively investing. That's going to be super dangerous. I'll 0:03:31.680 --> 0:03:34.920 show you why. So the market is highly concentrated. As 0:03:34.920 --> 0:03:37.880 a matter of fact, concentration in the market is at 0:03:37.920 --> 0:03:40.920 an all time high. If to sort of take a 0:03:40.960 --> 0:03:43.960 look at this, looking at the Nasdaq again, the Nasdaq 0:03:44.000 --> 0:03:46.640 one hundred here is this again represents the tech stocks, 0:03:46.640 --> 0:03:48.360 which is where all the growth is. You've heard me 0:03:48.360 --> 0:03:51.480 talk about the investing black hole and how basically only 0:03:51.520 --> 0:03:53.920 bitcoin and the Nasdaq have been keeping up with the 0:03:53.960 --> 0:03:56.920 real rate of inflation of debasement. And so we can 0:03:56.960 --> 0:03:59.960 see the NASDAC right here. This goes back. This is 0:04:00.040 --> 0:04:02.520 the two thousand dot com boom and bust right here, 0:04:02.720 --> 0:04:04.960 and of course here we are today. Now this looks 0:04:04.960 --> 0:04:07.680 pretty good if you would have just bought here and 0:04:08.200 --> 0:04:10.120 held tell here he did pretty good. Of course, in 0:04:10.560 --> 0:04:12.960 the dot com boom, we had an eighty one percent 0:04:13.040 --> 0:04:16.120 draw down, pretty massive eighty one. Now, the one thing 0:04:16.160 --> 0:04:17.960 to keep in mind about that eighty one percent draw 0:04:18.000 --> 0:04:21.000 down is it took a decade or more just to 0:04:21.000 --> 0:04:23.440 get back to even In the year two thousand and eight, 0:04:23.520 --> 0:04:26.160 the Great Financial Crash, we had a fifty percent draw 0:04:26.200 --> 0:04:29.520 down in the Nasdaq. In twenty twenty, during the pandemic, 0:04:29.560 --> 0:04:32.839 we had a thirty six percent draw down. Now, one 0:04:32.839 --> 0:04:35.120 thing you might notice is that these draw downs are 0:04:35.120 --> 0:04:40.400 getting less and less, from eighty one to fifty to thirty. 0:04:40.600 --> 0:04:43.440 You notice that. So this fits into why I continually 0:04:43.440 --> 0:04:45.760 tell you that what we're seeing as a crash up, 0:04:46.200 --> 0:04:48.560 not a crash down. The way that the government has 0:04:48.680 --> 0:04:52.320 used debt, especially around this period right here, fiscal spending 0:04:52.400 --> 0:04:55.320 has changed these markets. Anyway, we're not talking about that 0:04:55.320 --> 0:04:57.360 in this video. But you can see that the Nasdaq 0:04:57.400 --> 0:04:58.840 has gone up. But the thing that I want to 0:04:58.920 --> 0:05:02.920 draw your attention to is the concentration that's happening in 0:05:02.960 --> 0:05:06.000 the Nasdaq. So what this shows is the largest ten 0:05:06.080 --> 0:05:10.440 percent of stocks as a percent of the total value 0:05:10.440 --> 0:05:13.080 of stocks. And what this shows us is that over 0:05:13.120 --> 0:05:15.960 the past five and a half decades there's only been 0:05:16.080 --> 0:05:20.640 two previous peaks in market concentration. So we saw that 0:05:20.760 --> 0:05:23.839 right here in the seventies, we saw it again in 0:05:23.880 --> 0:05:26.560 the two thousand dot Com boom and bust, and now 0:05:26.560 --> 0:05:29.680 we see it again here today. Now I've put this 0:05:29.880 --> 0:05:31.719 red line on there, so again I like to show 0:05:31.720 --> 0:05:33.880 you the charts. You can see the direction, the size 0:05:33.880 --> 0:05:35.880 of the speed of the moves, and you can see 0:05:35.880 --> 0:05:39.960 that the concentration keeps getting bigger and bigger and bigger. 0:05:40.080 --> 0:05:42.800 Now why is this important, Well, if you're buying the 0:05:42.920 --> 0:05:45.240 Nasdaq index or the S and P five hundred index 0:05:45.360 --> 0:05:47.360 for that matter, you're buying the S and P five 0:05:47.400 --> 0:05:50.599 hundred because of the mag seven. Right, there's seven stocks 0:05:50.600 --> 0:05:53.640 that are driving most of that entire index. In the Nasdaq, 0:05:53.680 --> 0:05:56.000 you're seeing about the same thing. The concentration of the 0:05:56.040 --> 0:05:58.359 top ten is getting bigger. Now. The reason why this 0:05:58.440 --> 0:06:01.200 is the problem is if you're passively invested into the 0:06:01.279 --> 0:06:04.360 index and one or two of these companies, there's only seven, 0:06:04.400 --> 0:06:06.320 and they have to be five hundred back seven. If 0:06:06.360 --> 0:06:10.039 they drop, they bring the entire index down with them. 0:06:10.279 --> 0:06:13.800 Super important to understand. Okay, so we can see that 0:06:13.839 --> 0:06:17.120 concentration is at an all time high. Now what does 0:06:17.120 --> 0:06:20.159 that mean? What are the historical parallels to this? Well, 0:06:20.320 --> 0:06:25.839 we can see that historically speaking, high concentration equals high danger. 0:06:26.080 --> 0:06:28.920 We can see that historically speaking, whenever we've reached these 0:06:29.000 --> 0:06:33.080 levels of concentration, we've seen big crashes happen off the 0:06:33.080 --> 0:06:35.680 back of that. Now we also have historical parallels to 0:06:35.720 --> 0:06:38.480 where those happened, like the dot com boom, for example, 0:06:38.839 --> 0:06:42.720 was when we had extreme tech optimism. Now I'm optimistic 0:06:42.720 --> 0:06:45.800 about tech, but we had extreme tech optimism in the seventies. 0:06:45.880 --> 0:06:48.240 Same thing that was when the microprocessor came out. You 0:06:48.320 --> 0:06:51.360 might know from my quantum wave thesis the last one 0:06:51.360 --> 0:06:54.120 started in nineteen seventy one, right at that peak. I'll 0:06:54.120 --> 0:06:56.159 show you more than that in a second. We also 0:06:56.240 --> 0:06:58.960 had a sudden change in the models. I'm going to 0:06:59.000 --> 0:07:02.480 talk about that in a second. But this is pricing 0:07:02.560 --> 0:07:05.320 the nasdak in gold. This is from my friend Luke 0:07:05.360 --> 0:07:08.520 Grammanov at FFTT. Check him out. He's worth a follow. 0:07:08.760 --> 0:07:10.320 But what we want to do is we want to 0:07:10.320 --> 0:07:13.120 look at things if they're expensive or cheap priced in 0:07:13.200 --> 0:07:15.000 other things, not just US dollars, because if we look 0:07:15.040 --> 0:07:17.680 at US dollars, it's always manipulated. So here's the Nasdaq 0:07:17.760 --> 0:07:20.680 priced in gold. Again, during the dot com boom got 0:07:20.680 --> 0:07:23.040 really expensive, but we can see that it's basically been 0:07:23.040 --> 0:07:26.000 breaking down ever since, and it's been in this range 0:07:26.080 --> 0:07:28.800 right here, and so again if you're passively invested in 0:07:28.920 --> 0:07:32.000 index and to be wary of that, and especially when 0:07:32.000 --> 0:07:35.640 they're sudden changes in the technology, which is what happened 0:07:35.720 --> 0:07:38.800 in nineteen seventy. In the year two thousand, all right, 0:07:38.840 --> 0:07:41.360 so what are we talking about? How is AI changing 0:07:41.400 --> 0:07:43.040 and what do we need to be aware of? Well, 0:07:43.520 --> 0:07:46.080 what really happened. I made a video a few weeks ago. 0:07:46.120 --> 0:07:48.840 I think it was talking about deep Seat. Deep Seat 0:07:49.040 --> 0:07:52.080 was a new open source LLM, a new AI model 0:07:52.240 --> 0:07:54.680 that was released from a company in China. But what 0:07:54.800 --> 0:07:57.200 happened is when that was released, we saw the entire 0:07:57.240 --> 0:08:00.480 market plunge. In video, Everyone's Darling plunged time, but the 0:08:00.560 --> 0:08:03.200 entire market plunged, And I made a video. I'll link 0:08:03.240 --> 0:08:05.160 to it down below. You should watch that to really understand. 0:08:05.200 --> 0:08:08.119 But basically what it did is exposed that all our 0:08:08.160 --> 0:08:11.840 models for evaluating these companies, the growth of these companies 0:08:12.520 --> 0:08:14.960 and even the way that money goes into the index 0:08:15.000 --> 0:08:18.160 of the NASDAC has completely changed. And so it highlighted 0:08:18.200 --> 0:08:21.680 that everything that we thought we knew we don't know anymore. Now. 0:08:21.680 --> 0:08:23.640 One of the things that we saw is that because 0:08:23.680 --> 0:08:27.120 deep seek was an open source LLM, then what it 0:08:27.160 --> 0:08:29.640 did is it's shone a light on all the AI 0:08:29.840 --> 0:08:34.320 monopolies that we saw again Open Ai, Google, those types 0:08:34.320 --> 0:08:38.160 of companies, Cloud, etc. It showed that their pricing is over. 0:08:38.440 --> 0:08:41.240 How can any of those open AI or gym and 0:08:41.240 --> 0:08:43.920 how could they be charging when we have open source 0:08:44.000 --> 0:08:47.160 models that are better. And so that changed all that 0:08:47.200 --> 0:08:51.040 we saw that AI's paywall is losing pricing power eventually 0:08:51.240 --> 0:08:54.600 be priced out completely. And what that's showing is that 0:08:54.640 --> 0:08:58.960 the entire AI stock market needs to be reevaluated. Now 0:08:59.040 --> 0:09:02.920 It's not just this, there's all types of now AI gateways, 0:09:02.960 --> 0:09:06.720 AI agents that are now bridging all of the aillms together. 0:09:06.800 --> 0:09:09.520 So for example, now for like five bucks a month, 0:09:09.600 --> 0:09:11.640 I could get access to all of them without having 0:09:11.679 --> 0:09:14.320 to pay for them individually. So we're seeing this but 0:09:14.360 --> 0:09:16.920 now again like these open source models are completely changing this. 0:09:17.200 --> 0:09:19.480 So then the question is again is if lllms are free, 0:09:19.920 --> 0:09:23.520 where does the value go? Well, good thing, I have 0:09:23.520 --> 0:09:26.160 an answer for you, because history tells us that. And 0:09:26.200 --> 0:09:28.600 of course I've been investing in technology for decades. So 0:09:28.640 --> 0:09:30.440 let me show you how we look at this. So 0:09:30.559 --> 0:09:34.000 open source shift. So it started where I think, right 0:09:34.040 --> 0:09:36.400 where open ai hit the scene and they raised a 0:09:36.440 --> 0:09:38.959 ton of money. Right they're the Wall Street Darland, They're 0:09:38.960 --> 0:09:41.680 gaining all this momentum. And where I've really first started 0:09:41.720 --> 0:09:45.600 noticing it is Meta. Facebook Meta launched Lama, which is 0:09:45.640 --> 0:09:49.120 an open source LLM, a large language model an AI. 0:09:49.679 --> 0:09:51.640 And when I saw that happen, it made me stop 0:09:51.679 --> 0:09:55.280 and think, why would Facebook, who's changed their name to Meta, 0:09:55.320 --> 0:09:57.520 who's rushing into the space, Why would they open up 0:09:57.559 --> 0:10:02.360 a free, open source model when the apparent model seems 0:10:02.400 --> 0:10:03.839 to be like open AI and try to raise a 0:10:03.840 --> 0:10:05.240 bunch of money and be worth a lot of money. 0:10:05.640 --> 0:10:08.440 Why would Facebook do that? And one of my thoughts was, well, 0:10:08.679 --> 0:10:12.400 Facebook is worth i don't know, ten times twenty times 0:10:12.400 --> 0:10:15.000 more than open AI. Open AA is not really a 0:10:15.000 --> 0:10:19.480 threat to them today, there's really small. If Facebook opens 0:10:19.559 --> 0:10:24.959 up a open source LLM, they neutralize opening I how 0:10:24.960 --> 0:10:27.160 can opening I be worth any money if now there's 0:10:27.200 --> 0:10:29.840 all the free ones that are even better, And so 0:10:29.880 --> 0:10:32.319 it seemed like it was like maybe Zuckerberg playing forty 0:10:32.480 --> 0:10:36.080 chess when open AI and he's trying to kind of 0:10:36.080 --> 0:10:38.400 play the old playbook. That was what I thought at first. 0:10:38.840 --> 0:10:40.559 But it's changed a little bit, and I'm going to 0:10:40.600 --> 0:10:42.520 show you where the real value is accruing. Now we 0:10:42.520 --> 0:10:45.360 can see this other open source models, code gen, which 0:10:45.400 --> 0:10:48.640 is Salesforce CRM, so the giant the CRM space. So 0:10:48.640 --> 0:10:51.760 we're seeing like SaaS companies jumping into the space. Goose 0:10:51.800 --> 0:10:55.040 which is an open it's an open source AI agent 0:10:55.080 --> 0:10:57.720 project from Jack Dorsey, the founder of Twitter. Now he's 0:10:57.920 --> 0:11:00.959 head a block deep Seek. Of course, since deep Sea 0:11:01.000 --> 0:11:02.840 came how just a few weeks ago, we've seen like 0:11:02.840 --> 0:11:04.880 half a dozen more come out of China. They're coming 0:11:04.920 --> 0:11:08.520 out in mass A small business owner, are you buried 0:11:08.640 --> 0:11:11.040 in all types of work keeping you from the real 0:11:11.120 --> 0:11:13.720 thing that makes you money? Well that's where just Works 0:11:13.760 --> 0:11:15.960 comes in. They're the all in one platform that supports 0:11:16.040 --> 0:11:19.000 small business growth. You can get all their tools that 0:11:19.040 --> 0:11:22.760 help with benefits like payroll and HR and compliance with 0:11:22.920 --> 0:11:26.880 transparent pricing. Now they help you hire top talent internationally, 0:11:26.920 --> 0:11:31.200 internew markets, quickly scale international operations without the workload, and 0:11:31.280 --> 0:11:34.160 forevery how do I do it? Question? You can reach 0:11:34.160 --> 0:11:37.360 out to their expert staff from sole proprietor or a 0:11:37.400 --> 0:11:40.800 team of twenty. Just Works empowers all kinds of small 0:11:40.840 --> 0:11:45.040 businesses with real human support. So visit Justworks dot com 0:11:45.080 --> 0:11:48.440 slash podcast to join the thousands of small businesses that 0:11:48.480 --> 0:11:52.199 trust just Works to take care of payroll, benefits, compliance 0:11:52.320 --> 0:11:58.040 and more. Again that's Justworks dot com slash podcasts. But 0:11:58.120 --> 0:11:59.240 really what we want to do is we want to 0:11:59.240 --> 0:12:02.200 look back to the dot and even crypto models to 0:12:02.240 --> 0:12:06.559 really understand how this works. Where does the value accrue? Now, 0:12:06.600 --> 0:12:08.880 you might have seen me use this chart. If you 0:12:08.960 --> 0:12:10.679 watch my content, you see me use this chart all 0:12:10.720 --> 0:12:13.960 the time. And you understand that in these quantum wave cycles, 0:12:14.160 --> 0:12:16.320 we have about a fifty year cycle and they happen 0:12:16.480 --> 0:12:19.480 in these four phases, and we need to understand that 0:12:19.480 --> 0:12:23.480 the way that we invest through each phase changes. So 0:12:23.520 --> 0:12:25.800 the way that I invested here is going to be 0:12:25.840 --> 0:12:27.800 different than the way and the companies I invest in 0:12:27.840 --> 0:12:31.080 here different here and so forth. All right, So right 0:12:31.120 --> 0:12:35.080 now we are right here starting this second phase, and 0:12:35.120 --> 0:12:37.800 so the old way of investing no longer works. So 0:12:38.200 --> 0:12:40.640 let me break it down with some parallels. We think 0:12:40.679 --> 0:12:44.559 about technology in layers, all right, Technology scales and layers 0:12:44.600 --> 0:12:47.319 is what most people misunderstand, and so they think the 0:12:47.320 --> 0:12:49.400 Internet was too slow, can't scale. Let's go spend a 0:12:49.440 --> 0:12:52.600 billion dollars in intranets. Bitcoin is too slow, can't scale. 0:12:52.640 --> 0:12:55.720 Let's go try all these crypto projects without understanding that 0:12:55.720 --> 0:12:59.040 technology scales and layers, but also the way value accruise 0:12:59.080 --> 0:13:01.080 happens in layers. So what do I mean by that? 0:13:01.240 --> 0:13:03.319 If you think about the Internet, we have a base 0:13:03.440 --> 0:13:05.280 layer of the Internet, right, so this would be like 0:13:05.400 --> 0:13:09.800 TCP and IP, right, and then we want email, so 0:13:09.840 --> 0:13:13.840 then we have like SMTP, and then we want security, 0:13:13.920 --> 0:13:17.280 so we have like https. Right. You know what those 0:13:17.280 --> 0:13:20.600 things are all right, but no value as a crude 0:13:20.800 --> 0:13:26.200 at this base layer TCP, IP protocol, SMTPA, CTPS protocols, 0:13:25.960 --> 0:13:30.080 they're not worth anything. They're just open source protocols. Where 0:13:30.120 --> 0:13:33.760 all the value has accrued is on higher levels, so 0:13:34.000 --> 0:13:38.760 on the applications. So for example, you have Google. Google 0:13:38.800 --> 0:13:41.960 created Chrome and now you have all these Chrome plugins 0:13:42.040 --> 0:13:44.520 right here that are worth a lot of money. You 0:13:44.520 --> 0:13:46.200 can think about this like with the iPhone. You have 0:13:46.240 --> 0:13:48.320 the iPhone, which obviously you create a lot of value, 0:13:48.440 --> 0:13:50.080 but then think about the app store and think about 0:13:50.080 --> 0:13:53.400 all the apps inside of that, all right, So this 0:13:53.440 --> 0:13:56.440 is where the value is accrued, not on the base layer, 0:13:56.679 --> 0:13:59.080 but on the stack, all right. We can think about 0:13:59.120 --> 0:14:03.000 the same thing with bigcoin. Now, we had Bitcoin, which 0:14:03.040 --> 0:14:07.160 is a protocol, It's a protocol that transfers data, right, 0:14:08.200 --> 0:14:10.800 and obviously value is accruing there, but not so much 0:14:10.800 --> 0:14:13.080 on the protocol, but the asset Bitcoin, the asset, not 0:14:13.120 --> 0:14:17.120 the network. Now we have companies that are building layers 0:14:17.640 --> 0:14:20.720 on top of the Bitcoin stack, and so certainly the 0:14:20.720 --> 0:14:22.800 Bitcoin network has a crude value, but then we have 0:14:22.880 --> 0:14:25.080 even more value being accrued up peer. That's what my 0:14:25.200 --> 0:14:28.360 fund investment we invest into these. But back to the 0:14:28.800 --> 0:14:31.160 topic that we're talking about right now, which is AI, 0:14:31.360 --> 0:14:33.560 we're seeing the same thing. So what I would say 0:14:33.680 --> 0:14:37.320 is these lms are like a base layer. So the 0:14:37.440 --> 0:14:40.000 lms are now open source, the deep seek, the LAMA, 0:14:40.160 --> 0:14:43.800 all those things, and there's no value accruing there. They're 0:14:43.840 --> 0:14:45.880 all racing down to the bottom. They're all for free. 0:14:46.040 --> 0:14:50.360 Where the value gets accrued is on higher levels. So 0:14:50.400 --> 0:14:53.520 it's on the applications, the narrow specific use cases that 0:14:53.560 --> 0:14:56.280 are being built on top of the open source model. 0:14:56.600 --> 0:14:58.400 And so we can see right now today the smart 0:14:58.400 --> 0:15:01.760 money isn't just betting on AI. That was the old way, 0:15:01.800 --> 0:15:04.040 that was twenty three, twenty four. Now it's betting on 0:15:04.080 --> 0:15:07.080 the right layer of AI. Which layer do we want 0:15:07.080 --> 0:15:08.600 to invest and do the same way might fund investing 0:15:08.560 --> 0:15:10.920 in to bitcoin? Which layer do we want to invest into? 0:15:11.360 --> 0:15:14.000 Now I'll show you that. Don't worry. Now, I am 0:15:14.080 --> 0:15:16.560 gonna break this down in greater detail and show you 0:15:16.600 --> 0:15:19.080 what different types of projects and companies are being built there. 0:15:19.440 --> 0:15:21.120 If you want to join me next week, we're gonna 0:15:21.160 --> 0:15:23.280 go live deep into this. I got I don't know, 0:15:23.320 --> 0:15:25.760 thirty forty charts or I'll break all of this down 0:15:25.920 --> 0:15:27.560 and then I'll take questions, so we'll talk about it. 0:15:27.560 --> 0:15:29.320 We'll discuss it, figure out the best way to find 0:15:29.320 --> 0:15:31.120 these companies invest into them. I'll throw you a couple 0:15:31.120 --> 0:15:32.560 of names that I like. If you want to come 0:15:32.640 --> 0:15:34.480 join me, it's all for free. I'll put a link 0:15:34.520 --> 0:15:37.480 down there down below. Come hang out. Let's have fun 0:15:37.520 --> 0:15:39.800 talking about this. Let's discuss it all. Like I said, live, 0:15:39.880 --> 0:15:41.520 Q and A and so much more. Join me for 0:15:41.520 --> 0:15:45.400 free and the link down below. Okay, now, what we're 0:15:45.440 --> 0:15:48.440 seeing because of this is a massive shift of capital. 0:15:48.720 --> 0:15:51.200 And it's not just from AI based layer to a 0:15:51.680 --> 0:15:55.120 higher level. Like I said, it's an entire index. It's 0:15:55.200 --> 0:15:58.440 even an entire continent. So what I'm talking about, Well, 0:15:58.480 --> 0:16:02.600 if China is now pushing these open source models, what 0:16:02.640 --> 0:16:04.680 we're seeing is that the US has sort of been 0:16:04.800 --> 0:16:07.160 competing more of a scarcity, right, we got to compete. 0:16:07.280 --> 0:16:10.200 Let's keep China out of the game. But China is 0:16:10.240 --> 0:16:12.800 trying to compete. Now it's not an even playing field. 0:16:13.080 --> 0:16:15.320 This is the whole conversation about tariffs and so forth, 0:16:15.360 --> 0:16:18.080 and you have a country that's subsidizing things, and that's 0:16:18.120 --> 0:16:19.960 a whole other topic. We can make a video if 0:16:19.960 --> 0:16:21.960 you want, drop me a comment down below. But what 0:16:22.000 --> 0:16:25.440 we've seen is that China has been trying to outcompete us. 0:16:25.560 --> 0:16:28.120 The US has been trying to protect but it's basically 0:16:28.280 --> 0:16:31.280 forced the shift in the market where now open source 0:16:31.360 --> 0:16:35.480 projects are now superior to companies that are trying to 0:16:35.560 --> 0:16:37.880 protect the mote. If you're trying to protect the mote, 0:16:37.880 --> 0:16:39.200 you're just not going to make it the world is 0:16:39.280 --> 0:16:41.480 open source. Jack Dorsy tweeted this so much the other 0:16:41.560 --> 0:16:44.800 day on Twitter saying or on x saying that the 0:16:44.800 --> 0:16:47.280 world is open source and that is the future. It's 0:16:47.320 --> 0:16:50.000 why I talk about decentralization all the time. But the 0:16:50.080 --> 0:16:53.000 question is if this is happening. We know that the 0:16:53.160 --> 0:16:55.680 US has been the financial hub of the world. We 0:16:55.760 --> 0:16:58.240 know that the US stock markets S and P five 0:16:58.320 --> 0:17:01.040 hundred and the Nasdaq are the great investment markets in 0:17:01.080 --> 0:17:02.960 the world. We know all that money is accrueing there, 0:17:02.960 --> 0:17:06.720 all the businesses are listed there. But if China is 0:17:06.760 --> 0:17:10.080 out competing US, does some of that money start leaving 0:17:10.119 --> 0:17:12.560 the US and going to China. Well, I have a 0:17:12.640 --> 0:17:16.240 chart to answer that question. What we can see right here, 0:17:16.800 --> 0:17:18.359 as you know again if you watch my videos on 0:17:18.400 --> 0:17:21.280 a regular basis the reason why, and I hinted too earlier, 0:17:21.320 --> 0:17:23.000 the reason why we see the stock markets going up 0:17:23.040 --> 0:17:24.959 so high is because the amount of money that they 0:17:24.960 --> 0:17:27.600 continue to print right through the debasement. And what we 0:17:27.640 --> 0:17:29.840 can see here is that. So what we have here 0:17:30.000 --> 0:17:33.159 is on the red line, we have the Nasdaq one 0:17:33.320 --> 0:17:36.199 hundred going up, that's right here. But what we have 0:17:36.400 --> 0:17:41.600 on the green line is the US net investment position. 0:17:42.080 --> 0:17:43.800 So this is the amount of money that went in, 0:17:44.000 --> 0:17:47.000 which you can see is higher than the amount of 0:17:47.080 --> 0:17:49.520 the Nasdaq itself. And what we have in the blue 0:17:49.560 --> 0:17:53.639 line down here is the foreign direct investment in US equities, 0:17:54.119 --> 0:17:57.560 mainly coming from China. So what happens is, just like you, 0:17:58.080 --> 0:18:01.200 a country has surpluses, so they have trades, exports, they 0:18:01.200 --> 0:18:03.720 have imports, they have surpluses, they have savings. What do 0:18:03.760 --> 0:18:06.240 they do with that, Well, they put it somewhere and 0:18:06.320 --> 0:18:08.879 in this case, a lot of that has been being recycled, 0:18:08.960 --> 0:18:12.240 used to be recycled into US treasuries, still is a 0:18:12.240 --> 0:18:14.840 lot of it is has been recycled into the NASDAK 0:18:14.880 --> 0:18:17.320 and that's exactly what we've seen. So China has been 0:18:17.359 --> 0:18:21.600 recycling a substantial portion of its surpluses into these US equities, 0:18:21.800 --> 0:18:25.000 which is pushed the entire index up. But back to 0:18:25.040 --> 0:18:28.480 the competing angle. Now, if China now is moving ahead 0:18:28.480 --> 0:18:31.040 in tech, which they've already sort of outpaced the US 0:18:31.040 --> 0:18:33.480 with evs and batteries and lots of things like that, 0:18:34.080 --> 0:18:36.280 will a lot of that Chinese money, instead of going 0:18:36.320 --> 0:18:39.600 to the Nasdaq start going to their own indexes. So 0:18:39.640 --> 0:18:42.800 we're seeing a massive disruption here all over the place. 0:18:43.000 --> 0:18:44.800 So the question or the thing we need to ponder 0:18:44.880 --> 0:18:48.160 is not only is AI itself changing, but the global 0:18:48.240 --> 0:18:51.399 flow of capital is shifting as well. If you have 0:18:51.440 --> 0:18:53.880 to understand these things if you want to have success 0:18:54.160 --> 0:18:57.040 with your portfolio, because the world is changing rapidly. It's 0:18:57.040 --> 0:18:59.760 always technology that changes the world, and in these quantum 0:18:59.760 --> 0:19:01.720 wave cycles like we're in right now, it's where all 0:19:01.760 --> 0:19:04.919 the change happens. Okay, so what is this next phase 0:19:04.960 --> 0:19:08.240 for AI? Well, the losers, the ones that are getting 0:19:08.280 --> 0:19:13.240 left behind are the AI monopolies, the open ais, the Googles, right, 0:19:13.320 --> 0:19:14.919 those are the ones that are trying to kind of 0:19:15.119 --> 0:19:17.359 hold their LLM behind a paywall. They're going to be 0:19:17.400 --> 0:19:23.440 the losers. Chip stocks Nvidia AMD why because they were 0:19:23.480 --> 0:19:27.159 pricing in unlimited demand. But what Deepseak showed us is 0:19:27.160 --> 0:19:29.840 that they're able to train these AIM models for way 0:19:29.920 --> 0:19:33.359 cheaper with way less GPUs than we thought. So instead 0:19:33.400 --> 0:19:35.520 of the demand for chips being like this, we find 0:19:35.560 --> 0:19:38.080 out it's probably more like this, and as technology continues 0:19:38.119 --> 0:19:41.200 to accelerate, it might even be more like this. So 0:19:41.359 --> 0:19:43.479 those are ones we want to watch out for. We 0:19:43.520 --> 0:19:46.359 also want to watch out for all the hype driven narratives. Right, 0:19:46.400 --> 0:19:48.240 So all these companies that are trying to ride this 0:19:48.320 --> 0:19:51.320 hype train we're talking about, like AI SaaS companies think 0:19:51.359 --> 0:19:55.000