Coinbase AI Lead: AI Is Coming For Your Financial Advisor (Agent First)

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I want to talk about about some more current happenings. First is Trump and the government banning or restricting the usage of high intelligence models to the public. So, Fable 5 came out, they pulled it back. Then they they reinstated it was like it's fine. Opus or ChatGPT 5.6 came out, they pulled it back. Then today I saw something that Trump says that they're basically allowing it now. What's happening here? Is this intelligence that good that we it's national security issue? Should we be nationalizing intelligence as well? Is this like a Is it a a a national defense issue? What what's your take here?

>> Yeah, it it's fascinating to watch all of this happen and with the backdrop of however many weeks ago the whole Mythos C cash thing as well where like crypto is in a really unique position because all of these smart contracts are immutable and if there are going to be exploits, if I was a a hacker or I had a quantum computer, the thing that clearly is the biggest pot of gold in the world right now is is Bitcoin or any one of these smart contracts that you can just exploit and hack into. So, I imagine what will happen and what we'll see play out is that for the very short term if Mythos and these other models that are amazing at cybersecurity get leaked to the public or otherwise made available through open source means, whatever it might be, we're going to have this short

term period of just complete chaos where all sorts of different projects and protocols are going to see hacks both in Web3 and Web2. But once that initial period is over, we're just going to see these models become more of a defensive security set. So, before you do any sort of publication of a of a new piece of code or whatever, you put through Mythos, Mythos says it's good and then you're safe and actually probably safer than you would otherwise be today. Um but in terms of your question about the the the you know, imminent potentially imminent nationalization of these labs and whatnot, >> Yeah. >> I imagine that a large part of the the speculation around these models performance today is due in part to upcoming IPOs. If I had a massive company and I could go say, "Hey, our

model is so good that the government is trying to ban it." >> Yeah, that's a pretty good reason to buy. >> Bullish, right? It's marketing. >> So, I I think a large part of it is that and I think we'll look back on Fable and Mythos as the same way we do about like GPT-3.5, which is an exponential increase in the capabilities that we have today, but far from the end state of where we see these things. Um so, yeah, I imagine this will be short-term chaos as with everything. AI's a big boogeyman right now, but there's a lot of a lot of space still to grow. >> Yeah, I heard some rumors that Coinbase got a call from Anthropic before the release kind of like giving access to it to make sure that that Coinbase was was all battle-tested for security as well.

I I imagine these these large labs all they almost have a like a moral or like a business corporate commercial duty to private companies to uh make sure that their stuff is all beefed up before giving this to the access to to the public. On the nationalization of AI, Anthropic Google um and OpenAI are all American companies, right? They're, you know, typically out of like Palo Alto or whatever it is, right? Is is is America just dominating the AI race here? Obviously, China has these extremely similar models that are way cheaper, but it's becoming like somehow the AI game, if you will, has turned into a USA versus China, which is like everything in this world as far as

superpowers. Is is America just dominating the AI race right now? And is this a nationalization is is AI becoming nationalized in your view? >> I So, your first question on if America's dominating, I think very clearly yes. I think China is taking a probably the best strategy they can given that being the case uh with how they're using or open-sourcing all of their models and making it extremely cheap and and easy to use for anyone. Uh so, I think that is the right approach. If you're coming from behind, you want to go from the position of oh, we should make these things open and and here's an opportunity for you to get cheaper access to intelligence and whatnot. Uh but for the time being, yeah, America's absolutely dominating.

Um in terms of your second question around like should we nationalize? Is that something that will happen? >> Yeah, like Trump wants to take 5% of OpenAI. And or like they want to give 5% to the government or something. >> Yeah, you know, it's interesting. I I'm not really opposed to it. I think it does make sense from the perspective of aligning interests. 5% of a trillion-dollar company is an massive amount for the government to just sit on and hold. >> Yeah. >> But it's not so big that the government is necessarily incentivized to go king-make OpenAI or Anthropic in any sense. >> Yeah. >> So, you know, it's interesting. It's the same thing that happened with Intel as well. It feels like we're entering an era of uh sort of nationalization of these companies providing better alignment when the government can be so helpful to

them. Uh my big concern though would be that if uh the government is aligned with OpenAI and Anthropic and lab number three comes out, maybe maybe Grok, SpaceX, whatever it might be, is there now a reason to support that lab on the basis that they're an American, Elon-supported, and he generally has the best interests of the country uh project? Or are they going to side with Anthropic and OpenAI because they have 5% of equity or whatever? >> Yeah. >> So, that to me is going to be a pretty interesting thing and see how that plays out over time. >> Yeah. Yeah. Yeah, interesting. So, um with so, Fable 5 is free right now. They extended their free period, I think, until like July 12th or something.

>> Yep. >> Um and so, people are like really gung-ho about how how smart and intelligent this thing is and just how great it is. And um what you can do right now with your open claws you can just go download the Chinese version of Fable 5 or of the most premier intelligence. And it's it's almost like advertised like 95% as good for 5% of the cost. >> Mhm. >> Is this a problem? Like is is is AI is China going to pop the AI bubble that is happening right now? Like what is your view on the price of inference as it pertains to the quality you get with American models versus the price as it pertains to the quality you get with the Chinese models.

>> I think it's quite ironic that that these Chinese models are actually providing the capitalist incentive for intelligence to be proliferated across the United States in a pretty meaningful manner. >> I it's to me I think it's totally fine. Like it just means that that Anthropic and OpenAI are going to have their backs against the wall continuing to innovate. And if we are truly the leaders in in AI, then it should become very apparent over time that we have the best models. It's not going to be something that China is able to keep up with. And even if they are I I think the biggest concern is around all these data centers, spin commits, all these different things that are happening right now. Do those bubbles get burst if open-source models continue to keep up?

Broadly, I think so. But there's such a massive stack from from end to end in terms of chip making >> Yeah. >> and and data centers and even like the utilities, water, electricity that are required for these models to run. Even if inference gets way cheaper, I could still see that helping the US because you're going to want American-owned, on American land data centers to run those models. You're never going to outsource those to some data center in Beijing. >> Yeah. >> Uh and and broadly, I think it would be helpful for 100 times more as many companies that have access to frontier intelligence today to get that access. >> Yeah. Yeah, it's just interesting because when you do run like the when you run things through Cloud Console and the API, the amount of spend that you incur on any premium model on on an Opus

is insane. Like every Telegram message that I send to my open claws like 10 cents, 20 cents. It's like what are we doing here, you know? Then you pull it into like the like the Kitty model or whatever and it's like a cent. >> Mhm. >> It's just like drastically different. >> Yeah. And I imagine too for the whole trading use case as well, this will start to become a pretty interesting piece where these models are going to start performing differently. We're going to see models specifically tuned for trading. I've been playing around a little bit with Fable and having it kind of like rebalance my portfolio for me and whatnot. It's great at it. And you know, given it's managing a thousand plus dollars, it's actually still pretty cheap overall compared to what it's providing for me. Instead of me paying two and 20 to some financial advisor, I

can do it myself and pay a couple bucks a day. >> Guys got size, thousand bucks.