CEO Juice

AGI is coming fast bit.ly/4cNiRXq

Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory. We will have an official ceremony to mark the ending of an era. I love those cars. This was me at production launch 14 years ago:

This is what I mean when I say the world is going to get very weird, very soon. Expect more stories like this, each sounding increasingly more insane.

@BTA_ORG With Copilot embedded so you can ask questions.

📊 From AR and inventory to sales, QBRs, customer retention and owner-level financials — see how Power BI dashboards can give every department clearer insights and stronger accountability. @ceojuice Register: bta.org/eautoelevate26/

Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI. Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind). This will run very competitively on the super low cost Tesla AI4 ($650) paired with relatively frugal use of the much more expensive xAI Nvidia hardware. And it will be the only real-time smart AI system. This is a big deal. In principle, it is capable of emulating the function of entire companies. That is why the program is called MACROHARD, a funny reference to Microsoft. No other company can yet do this.

Here’s how this plays out. Software used to be too expensive and hard to write to automate most things. Now it’s vastly cheaper and faster to code. Thus, leverage has gone up dramatically, which means we’ll use software for far more. Leasing to more demand for engineering.

SERVICE-AS-A-SOFTWARE. That is the real opportunity for 90% of us. I keep watching smart people pour months into building beautiful UI applications that Anthropic and OpenAI are going to absorb in a single product update. It will feel ARCHAIC in two years that we used to click through user interfaces to navigate databases and complete tasks. Agents just do it. One prompt. Done. 90% of the entire application layer is going to get eaten over the next decade. The dashboards. The forms. The CRUD. All of it. Where does that leave you? Exactly where the money is. Service-as-a-software. E.g. An ad agency that bakes its winning playbooks into AI systems and serves 1,000 clients with the quality they used to give 10. An IP law firm that encodes decades of expertise into AI skill files and sells legal services at infinite scale with near-zero marginal cost. A consulting firm. An accounting practice. A creative studio. Pick your vertical. The backend is AI. The frontend is your expertise packaged as a service. The moat is that YOU actually know what good looks like in your domain. You're not competing with OpenAI. You're competing with other service providers who are still doing everything manually. That's not a hard fight to win. Encode your knowledge. Automate your delivery. Sell the service. Scale infinitely. The technology gets commoditized. The person who knows how to USE it doesn't.

@herbertong Yeah

we're making @blocks smaller today. here's my note to the company. #### today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation. i'll be straight about what's happening, why, and what it means for everyone. first off, if you're one of the people affected, you'll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition (if you’re outside the U.S. you’ll receive similar support but exact details are going to vary based on local requirements). i want you to know that before anything else. everyone will be notified today, whether you're being asked to leave, entering consultation, or asked to stay. we're not making this decision because we're in trouble. our business is strong. gross profit continues to grow, we continue to serve more and more customers, and profitability is improving. but something has changed. we're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company. and that's accelerating rapidly. i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. i chose the latter. repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead. i'd rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome. a smaller company also gives us the space to grow our business the right way, on our own terms, instead of constantly reacting to market pressures. a decision at this scale carries risk. but so does standing still. we've done a full review to determine the roles and people we require to reliably grow the business from here, and we've pressure-tested those decisions from multiple angles. i accept that we may have gotten some of them wrong, and we've built in flexibility to account for that, and do the right thing for our customers. we're not going to just disappear people from slack and email and pretend they were never here. communication channels will stay open through thursday evening (pacific) so everyone can say goodbye properly, and share whatever you wish. i'll also be hosting a live video session to thank everyone at 3:35pm pacific. i know doing it this way might feel awkward. i'd rather it feel awkward and human than efficient and cold. to those of you leaving…i’m grateful for you, and i’m sorry to put you through this. you built what this company is today. that's a fact that i'll honor forever. this decision is not a reflection of what you contributed. you will be a great contributor to any organization going forward. to those staying…i made this decision, and i'll own it. what i'm asking of you is to build with me. we're going to build this company with intelligence at the core of everything we do. how we work, how we create, how we serve our customers. our customers will feel this shift too, and we're going to help them navigate it: towards a future where they can build their own features directly, composed of our capabilities and served through our interfaces. that's what i'm focused on now. expect a note from me tomorrow. jack

@lexfridman How does AGI get rolled out to companies, will it be through Microsoft and O365 which most offices use today, or direct from whoever gets there 1st? Assuming that is Xai what might that look like? They don't have distribution. Adoption of AGI will be an interesting problem.

Doing a long, super-technical podcast on the state-of-the-art in AI. Let me know if you have question, topic suggestions. Everything from details of LLM training pipeline & architectures, to coding, robotics, scaling, compute, business, geopolitics, etc. Besides topics & questions... add papers, blogs, posts, rants, perspectives that you'd like to see covered.

Context is king for AI agents. There’s going to be a massive premium in the future on having up-to-date context for all your most important best practices, decisions, roadmap items, specs, marketing materials, and other critical knowledge across your company. People get a lot of context “for free” in a company. They know where they work, they have people next to them they work with, they can remember the rough outline of the company’s most recent quarterly goals to know if something seems good or bad to work on. AI agents, on the other hand, come in overly eager and ready to work on whatever you give them. At one moment they’re a lawyer for one company and an engineer for the next. This is why context remains absolutely critical for them to execute well on what you want. The teams and companies that take this seriously will have huge leverage and be steps ahead of those that don’t.

The Colossus 2 supercomputer for @Grok is now operational. First Gigawatt training cluster in the world. Upgrades to 1.5GW in April.

This is the question every software company is asking themselves right now. What happens to our roadmap if an engineer can produce 2X or 5X more output. The general direction will be roadmap expansion. Companies that just use this leverage to cut costs will be outcompeted by those that decide to do more. As a result, this will mean we will see more competitive battles between companies, but also the expansion of many more categories since software can touch more surface area. The limiter then becomes how rapidly your customers can actually adopt new software, how good you make that software (vs. it becomes slop because it’s so much easier), and whether you can get paid for more software or if customers’ expectations just go up over time for what they get from each vendor. As an aside, building up a brand, ecosystem, and distribution moat ends up being critical. If software development cost per unit go down, then the new game is how you can get customers to adopt and remain sticky. GTM becomes a critical factor in all this.

Elon’s ability to map out the tech tree so far in advance is insane. He calls contrarian shots that keep proving right & each time, he bets his companies early and wins. He said future phones will ditch apps entirely. Just direct on-device AI edge nodes. That sounded strange at first… now we see OpenClaw in action, and it makes total sense.

@nikitabier the hardest part isn't building anymore, it's deciding what to build. when the shelf life of a feature might be shorter than its development cycle, you're basically playing chess against a board that rearranges itself every move

@elonmusk @TheZvi Conway’s law applies here. If you build a separate safety department, you’ll get safety as an interface, not an intrinsic property of the system. That’s dangerous.

Peter Steinberger is joining OpenAI to drive the next generation of personal agents. He is a genius with a lot of amazing ideas about the future of very smart agents interacting with each other to do very useful things for people. We expect this will quickly become core to our product offerings. OpenClaw will live in a foundation as an open source project that OpenAI will continue to support. The future is going to be extremely multi-agent and it's important to us to support open source as part of that.