OpenAI’s latest “bizarre” mega-deal, datacenters in space, previewing Tesla’s big announcement and more | E2189
Episode
76 min
Read time
2 min
Topics
Relationships, Investing, Startups
AI-Generated Summary
Key Takeaways
- ✓OpenAI Hardware Strategy: OpenAI secures 6 gigawatts of AMD GPUs starting late 2026, purchasing AMD stock at $0.01 per share for approximately 10% ownership while simultaneously receiving $100 billion investment from NVIDIA in exchange for OpenAI equity, creating circular financing concerns.
- ✓Venture Capital Selection Reality: Top-tier VCs invest pre-revenue only in legendary founders with previous exits like Brett Taylor. First-time founders need $500K-$2M annual revenue for serious consideration, as partners typically make just 5-6 investments per fund over three years.
- ✓Space Data Center Economics: Bezos predicts gigawatt-scale orbital data centers within 10-20 years will beat terrestrial costs through 24/7 solar power, no weather interference, and natural cooling. Startup Lumen Orbit targets this using 4km solar arrays with black body radiation cooling requiring one-fourth the space.
- ✓AI Documentation Workflow: Deloitte charged $440K Australian for AI-generated report containing fabricated citations, demonstrating wrong approach. Correct method: use AI for initial research collation, then add original interviews, factory visits, and customer research before delivery to clients.
- ✓Medical AI Pricing Strategy: NextVisit AI charges $133 monthly average for psychiatrist charting automation enabling 30% revenue increases and 24 patients daily versus 16. Underpriced given psychiatrists bill $500-$1000 per visit and could afford $2000+ monthly for equivalent salaried assistant.
What It Covers
OpenAI's unconventional hardware deals with NVIDIA and AMD involving equity swaps, Tesla's potential Roadster announcement with downforce fan technology, space-based data centers from Bezos and startups, and Figure robotics deploying in BMW factories.
Key Questions Answered
- •OpenAI Hardware Strategy: OpenAI secures 6 gigawatts of AMD GPUs starting late 2026, purchasing AMD stock at $0.01 per share for approximately 10% ownership while simultaneously receiving $100 billion investment from NVIDIA in exchange for OpenAI equity, creating circular financing concerns.
- •Venture Capital Selection Reality: Top-tier VCs invest pre-revenue only in legendary founders with previous exits like Brett Taylor. First-time founders need $500K-$2M annual revenue for serious consideration, as partners typically make just 5-6 investments per fund over three years.
- •Space Data Center Economics: Bezos predicts gigawatt-scale orbital data centers within 10-20 years will beat terrestrial costs through 24/7 solar power, no weather interference, and natural cooling. Startup Lumen Orbit targets this using 4km solar arrays with black body radiation cooling requiring one-fourth the space.
- •AI Documentation Workflow: Deloitte charged $440K Australian for AI-generated report containing fabricated citations, demonstrating wrong approach. Correct method: use AI for initial research collation, then add original interviews, factory visits, and customer research before delivery to clients.
- •Medical AI Pricing Strategy: NextVisit AI charges $133 monthly average for psychiatrist charting automation enabling 30% revenue increases and 24 patients daily versus 16. Underpriced given psychiatrists bill $500-$1000 per visit and could afford $2000+ monthly for equivalent salaried assistant.
Notable Moment
The McMurtry Spearling hypercar demonstrates fan-based downforce by driving completely upside down using 2000 kilograms of suction force from zero miles per hour, suggesting Tesla's October 7th teaser may reveal similar technology for the long-delayed Roadster 2.
Episode Transcript
I love living in the present, man. It's great. Like, we're talking about real data centers in space. It's so cool. I mean, how do we not have a base on the moon fifty five years later? It seems like we should. And if you ask anybody who watched the moon landing, hey. When do you think we'll have a base on the moon? They'd be like, I don't know. Ten years, five years? I mean, we're gonna go up every year now. Right? And it's like, no. It's never gonna go back. It has no importance. I I wanna know what the hell is going on. I hope I live long enough to understand something about the nature of the universe. This Week in Startups is brought to you by Coda. Coda empowers your startup by bringing words, tables, and teams together. Strategize, plan, and track goals effectively with all your valuable data in one place. Go to coda.io/twist to get started for free and get six free months of the team plan. Oracle. Oracle Cloud Infrastructure or OCI is a single platform for your infrastructure, database, application development, and AI needs. Save up to 50% on your cloud bill at oracle.com/twist. And Stripe Startups. Stripe Startups offers early stage venture backed startups access to Stripe fee credits, expert insights, and a focused community of builders. Apply today on stripe.com/startups. Alright, everybody. Welcome back to This Week in Startups. It is Monday, October 6. Oh my god. The summer is over, and there is, snow in the mountains, so I should be able to, get on my skis next month. Very excited about that. With me again, Alex Wilhelm. How are we doing, Alex? Fantastic. We were just discussing the importance of deer hunting before the show, and I just wanna say it on record. Summer sausage is the reason why everyone should go hunt deer because it's the best thing in the world and was a key food ingredient to my youth. Oh, really? Summer sausage. Okay. Good to know. You know, I, living here in the great state of Texas, frequently people, I'll see them and they'll hand me a bag. Oh, great to see you. I brought brought you some sausage. I went went boar hunting. I went deer hunting. I, you know, whatever. And, people just hand you meat. It's the nature of the place. Like, people are wearing guns on their hips. They're handing each other meat. I'm chewing on a cigar. I love it. I love it here. Really enjoying my second year in the great state. Yeah. Deep into my second year. And, let's get started. I saw OpenAI and AMD are doing a deal, and this deal comes on the heels of just two weeks ago or last week, Jensen putting a 100,000,000,000 into Yeah. OpenAI. So I'm confused. Tell me everything. Okay. So we're talking a lot about project Stargate, Jason, and all the deals that are part of OpenAI's, …
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by McMurtry
“The McMurtry Spearling hypercar demonstrates fan-based downforce by driving completely upside down using 2000 kilograms of suction force from zero miles per hour”
company
“Startup Lumen Orbit targets this using 4km solar arrays with black body radiation cooling requiring one-fourth the space”
“Tesla's potential Roadster announcement with downforce fan technology”
“Figure robotics deploying in BMW factories”
“receiving $100 billion investment from NVIDIA in exchange for OpenAI equity, creating circular financing concerns”
“OpenAI secures 6 gigawatts of AMD GPUs starting late 2026, purchasing AMD stock at $0.01 per share for approximately 10% ownership”
“OpenAI secures 6 gigawatts of AMD GPUs starting late 2026, purchasing AMD stock at $0.01 per share for approximately 10% ownership while simultaneously receiving $100 billion investment from NVIDIA in exchange for OpenAI equity”
“Figure robotics deploying in BMW factories”
“Deloitte charged $440K Australian for AI-generated report containing fabricated citations”
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