00:00They are launching a new device now, a device where you can interface with their Muse agent
00:07using this device and everything still runs on the cloud. Nothing is on the device,
00:13but it's an easier way for you to interact using voice and instead of, you know, opening your app
00:21on the smartphone, this device is listening to you all the time and you're pretty much,
00:27you know, talking to it as if it's your agent. Do I put it on my keychain? Do I put
00:32it on my
00:32Bloomberg lanyard? What do I do with this thing? Either is fine. He's going to lose this thing in
00:39about five minutes, by the way. Yeah, I'm still looking for an earbud down here in this radio
00:44studio. But the good thing is the device can figure out if it's lost and, you know, send you some
00:50sort
00:50of a message that, hey, Paul, you may have left the device. It's got like a million engineering
00:57degrees and he's talking about like losing a device. I mean, is this the 2026 version of the
01:01Tamagotchi? Well, that's what I think some people are comparing it to. But at the end of the day,
01:09they're saying this is a persistent agent that is running 24-7. Whether you initiate the agent
01:15through the app on your smartphone or through this device, it's going to work behind the scenes
01:2224-7. You don't have to constantly prompt it or, you know, engage with it. Once you give it a
01:29command,
01:30organize my calendar, it's persistent. It's going to do that 24-7 without you having to
01:36keep prompting it. And that's the promise. That's why people are so excited here.
01:40Is Mark Zuckerberg aware that people are very upset about AI, you know, and how it poses an
01:45existential crisis? They don't want data centers near them. Like, this is the time to introduce
01:48something like this? I'm going to put this thing in my pocket. Well, what he's trying to, I think,
01:53sell is the functionality, the fact that it can really make you super productive by doing your
01:59mundane tasks, like organizing your calendar or, you know, cleaning up your emails, basic tasks,
02:07ordering stuff from the internet. Obviously, it's not Amazon anymore. But, you know, they added a few
02:13more partners, Walmart, Best Buy. So it sounds like, you know, he wants to develop an ecosystem
02:20around it. But it's still early days. And I expect Google and Apple to definitely launch something
02:28along these lines because it's their turf. It's the new streaming wars.
02:33Yeah. I get this stock market like it stocks up 3.2% today. It's at a 52 week high.
02:40It's not at an
02:41all time high, but darn within a couple of bucks of an all time high. So to the extent they
02:46ever lost
02:46their mojo, which I don't think they really ever did, they kind of got it back a little bit here.
02:52I mean, I'm thinking what their 2027 CapEx number is going to be given what has transpired.
02:58Come 3Q earnings call for Meta, I expect them to raise their CapEx at least 60%, 70%, if not higher.
03:08And they are right up there in terms of justifying that CapEx, even though I'm not very clear on the
03:15monetization model here because everything that they are giving to the consumer is free. And Mark Zuckerberg
03:21said last night they will take a cut of all the transactions they will facilitate. So 1% to 2
03:27% cut
03:28or even higher. And they take your data. I mean, even more than they already have.
03:32Yes. Well, that's part of the ads that they show on, you know, the 3.5 billion users they have
03:39across
03:40their family of apps. So all that is a given, but they seem to be very excited about using all
03:47the
03:47data center capacity internally. Remember, Google rents out 50% of their capacity on cloud. 50% they use
03:55on their apps, 50% rented on cloud. Amazon rents everything on cloud. They use a little portion
04:01of it internally. Microsoft rents everything on cloud. Meta was the only one who was betting big
04:08on using everything internally. They've found that use case where they can deploy a lot of that
04:15capacity internally. I just feel, is it going to be worth 150 billion plus in CapEx and their ROI on
04:22that?
04:22That is not clear because they haven't given us a monetization model. But with Meta, we know if
04:28something is sticky, they will find a way to monetize it eventually. I know what everybody's
04:32getting in their Christmas stocking this Christmas. A little muse charm there. How much is that going
04:36to set me back? Well, they subsidize all their devices. They launch a lot of, you know, audio AR
04:43glasses, VR glasses. Everything is way below the Apple price point for Vision Pro. So Meta believes in
04:50subsidizing the hardware because they really want to own that device. They don't want to be reliant on
04:56Apple or Google. I have a hard time believing that parents are going to get this for their kids,
04:59especially after all the Instagram stuff. And, you know, like, do you really want to embed your
05:04child's life even further into the Meta suite of products? Everyone's trying to break that.
05:10I know I'm getting John Tucker for Christmas. Okay, that's a good guess.
