Is to bulk up revenue. And so now you know that growth is slow. Really, for the first time during the SAS era in a significant way, they got to slim down. Hard to hear it if you're a part of that company.

but maybe they move too fast with too many people. What about the stocks? What have they been doing? What do those companies have to show? Uh, all right. Um, so here we go. That's understandable.

You want to put advertising next to content where it makes sense. Um, but but the content in general needs to be authentic and informative even if it is controversial or jarring. Um and yeah. and I think people need to be able to choose.

you know to some degree what content they want to see and of course on Twitter you can. Um so but really, we wanted to be the the fundamentally place you go to to learn what's going on and get the real story. That's that's what. the the truth, the whole truth and it's going to be more than I'd like to say nothing but the truth that that's that's hard.

it's going to be a lot of BS there two ten more they realize. uh for sure. Um but but but you want to, you want to have the truth or you want to, you want to Bubble Up the the truth and be able to sort of sort out really want truth with the least amount of error. So so you've said um you know Twitter is alive.

Another way that that's described is it's where news happens As you just said So a couple here Patrick Mahomes and Steph Curry talking to each other Rihanna speaking uh, directly to her fans um, or in crypto SPF and CZ were having the conversation directly. uh on Twitter. So wow, yeah, that's them all Been you know, launched. uh chat DPT announces it on Twitter uh Paul Graham takes up a tweet on it.

you're tweeting on it. Uh, I think 50 000 tweets happened there um before it was picked up by the mainstream media just in the first couple of days. Yeah, and so you know, talk to us about how how can the media catch up if they're on Twitter they can be seeing these tweets and posting it if they're not on. Twitter Is there no way to catch up? Like how does the traditional media and citizen journalism and 50 000 tweets on an important subject? How do those intersect? And how does the media catch up? Well, just a bit.

But as I'm sure many of you use Twitter it, the everything Twitter is happening in real time. So if you contrast that to what's happening in a newspaper, they they have to learn the information. Uh, proposed an article to their editor, get it approved, write the article, get it edited, figure out which day it's going to get published on, and so the news is actually the thing that happened is being reported on at you know, three four days, sometimes a week late. Um, And if it happens on a weekend then it's like yeah, at least three days type of thing.

So um, you know, chat Gbt was was huge news for several days on Twitter before there was any news articles about it. About it in major Publications Um so I think especially if one is, uh, say thinking about investing in things you want to have information that is as timely and accurate as possible. There's no better Source than Twitter for that. That's certainly been my experience.

Um so Paul Graham Who's alleged in Tech a legend on Twitter I Think he has tweeted um that he's 80 left-leaning probably if he had to put him on the scale so not someone um, you know who's not not deemed and revered by all sides of the spectrum. He has said you know, consistent with your accuracy Point Um he has said how important accuracy is and on Twitter he said you know you should be default skeptical of any news story about Twitter and assume it's default wrong because not only do some journalists have the agenda, but the source has the agenda and it's so easy to go through the chain of inaccuracy. or um, you know outright falsehood is. is he right about this? Um, and you know If so, um, how how can accuracy about Twitter and about you be conducted by the traditional media if at all does a PR department help uh which we famously don't have PR departments I I I You know the right name for PR is propaganda.

Um, and I always thought you know, like maybe maybe we should have like a VP of propaganda that would be I just I think just more honest, you know? Uh and um also a PP of Witchcraft That's how to be like yeah, um, those are two great ones. Uh, so I mean the the thing is that I mean if you pick up any given newspaper and go through and read the whole thing and say how many of those stories are positive about anything at all? Almost none. So if if something is newsworthy, it is going to have a negative slant whether it is positive or not. There's like something in journalism that they've been trained to.

basically never write a positive story about anything. Um, once in a while you see a puff piece, but it's rare. Um, so anything that's newsworthy will get written about. Anything that's that's written about will go through a negativity lens and so you therefore have a a bizarrely negative view of the world.

If you draw your information from newspapers, this is simply I mean the fact. So um, on Twitter you can get a much more balanced, positive, negative. uh, situation. Um, it doesn't have that bias quite as much.

It's probably still a little bit of negativity bias, but but much less. so. Um, so it you know I think It's really I'm not sure what the Legacy Media does I mean at this point? really? um Twitter Twitter I don't know man. I Feel like Twitter is all about just sh9t posting.

So in terms of what people download for news, it's it's number one. this: 500 million uh, active users? 250 million uh daily users? Which I'd say there's probably you know, 180 million whatever significant daily users. where they're they're It's a meaningful amount of time. So like the average amount of uh, time that's people spend on Twitter per day.

All that 250 million is around half an hour or so. Um, so what we have is the thing. The thing that's like I think most interesting is there's about 120 to 130 million hours of human attention per day on Twitter every single day on average. Um, which is I Think it comes to a really interesting point.

which is to just it's startling how poorly monetized that is because you have to say like, how valuable is that attention 100 130 million hours of human attention per day of people that read so these are the generally the smartest people in the world, the most influential people in the world, and you have 130 million hours of their time per day? That's a lot. So currently Twitter makes about five or six cents per hour of that time. I I Think this is a poorly monetized Paul Graham's attention Paul Graham's half hour of attention is you know, is worth more More Worth more than that? Yeah, I mean if I'm spending two hours a day on Twitter like your whatever ads are coming through are getting my attention. Um, getting your attention because getting everyone in the room's attention, um, your time is incredibly valuable.

Um, so now the thing is, we need to actually serve ads that are relevant and useful. Um, and I think I think as we do that, we can probably at least get it to like 15 cents an hour for 20 cents an hour? Yeah, a quarter, right? Um, so I think the actual potential here for quota revenue is gigantic. Um, and it's going to be a win-win situation. Which is that if you are served advertising that you find timely and relevant, that with products and services that are useful to you, that's good for you and good for the advertiser.

Advertising in the limit of relevance is content. So in the next scene that's out there that's a often an inaccurate narrative is that you're indifferent to misinformation or other narratives get put out in the media that you actually want misinformation on Twitter when as you've just stated, you want it to be the most accurate in the world. So Community Notes: I'm going to Breeze through a couple of these before, uh, asking you about them Community Notes are the fact checking by power of the people on Twitter Um so correcting government misstatements from the White House correcting candidate misstatement from failed gubernatorial candidate Kerry Lake that Ron DeSantis had been endorsed by George Soros adding context while the Spy balloon was over Billings Montana to a tweet that could have been taken um to spiral and mean it had been shot down over Billings with that photo and adding context to that. preventing a conspiracy theory of trained elements are purposeful or nefarious as opposed to 1700 per year.

Quickly corrected before a right-wing conspiracy theory could get going. Uh, company misstatements or statements misstatements about companies I should say so. The tweet that said you know Google set a badge machine to tell you if you were terminated or not and adding context that no, they had been emailed um on coinbase that they've been told they had to stop staking by regulators Fact check very, very quickly. So how can this scale this neutral fact checking which seems elusive in fact checking, but Twitter's seems to have a handle on it.

But how does it scale and how does it avoid being hijacked by either side of a an issue or political Spectrum trying to hijack Community notes to not have it be neutral Um, yeah, there's a there's a white paper on community notes that I recommend reading. In fact, I'll tweet it out so that people, um, can have easy access to it. Um, but the it's because it's really quite a clever idea. Um, it's it it.

takes uh, the uh Viewpoint of someone if I think of it in a way like like page rank for Pages as applied to to people. which is that as people build credibility in how they review notes, they they pull up enough credibility to actually write notes. Um, and then those notes are then rated by others and depending upon the credibility of of the people rating your note, your credibility score gets affected. so it's It's sort of like uh uh, collection of credibility, but there were.

but there were link Farms created in Far Away places to spam pagerank. So that's going to be attempted. but you're going to apply your yes in software skills and things to prevent that. In order to be a notes contributor, you have to be a verified person I Think yeah, um so you have to have uh, you know and it takes a while to get to where you can't suddenly you you'll have no if you just and when you just start out you will start off with no credibility score.

Yeah, it's very hard to link fun yes, um and when we we actively look at any attempts to game the system um and shut them down uh and and remove them from the system if if they are good terms are going to be not real people or if they seem to be uh for dating because there are deliberate attempts to manipulate Community notes. Um, we also make the community notes. Uh, source code is open and available so you can see. you can basically see everything.

So uh, that's in the white paper. It's uh, it's on the white paper, but it's available on the internet. Yeah, you can search for it. Um, so you can see exactly how Community Notes is calculating things.

what? uh, changes are made to community notes and we'll keep iterating. Uh, and the goal is to have truth with the least amount of error. Um, so it's you know, there's always like, what is truth. Um, uh, and I think the important.

Like what is one way to sort of. For example, say, like if if someone really aspired to the truth, if they're really aspire to the truth, they must acknowledge that there is some probability that what they think is untrue. If somebody thinks there's no probability, zero percent about what they think is trying to claim to you that what they're saying is true. with 100 probability, there's a 100 probability they are lying.

So um, truth with acknowledged error Where you aim to minimize that error over time, That's what Community Notes is. Um I think Also, uh, once someone gets community noted, um, they think twice about uh, being deceptive in the future. So you start getting noted a few times. People like oh I know someone who's been Community noted.

Yeah, Um, so uh, this no one's immune. meaning um, you've been Community noted on this uh CNN uh fake Chiron CNN made no such claim um that you know free speech on Twitter by allowing people to speak freely. Yeah, and you were quickly Community noted um, a satirical tweet and peop and Community said this is not. this is not accurate Um, is this the one you tweeted Community notes for the win I think you may have am I better Yeah I mean the important thing is that anyone can be noted including me and in fact I wanted to make a note of being noted um that at the point.

The point is that if if I can be noted, anyone can be noted um including advertisers. So we've had a few cases where the advertising wasn't accurate and it got noted: oh, the mortgage mortgage One loan money to yourself I think I saw that Yeah, the HELOC skin noted all the time, right? and so but it's your own customer and they can be noted and then and then presumably change the ad. Yes, I mean this will I think be very helpful in truth and advertising. Okay, um, so like so I can't emphasize enough.

The goal is rigorous pursuit of the truth. um, aspirationally, the whole truth and the least amount of uh, untruth. Yeah, so let's talk back about brand safety. We'll go through two two quick ones here.

One narrative that's out there that probably affected advertisers and agencies was Twitter was going to become this hotbed of hate speech. And shortly after the acquisition, there was this bot attack you've talked about that seemed designed to try to make that a self-fulfilling prophecy actually until it was quickly uh, defeated by your your team. and there's 50 percent less hate speech according to what your team has. uh, put out this is a graphic, then pre-apposition So so not only is it a priority for you, but less half as much as before and then on child sexual exploitation something that's been so important to you.

Yeah, um, 800k suspended accounts and four times more than in any month um of the prior year of your ownership and the 99 reduction um in successful searches for CSE pattern. So talk to us about how much of a priority this is and how successful you've been at it, but then also presumably more can be done. Yeah, um I I repeatedly said to the Crosman safety team at Twitter that that there's no more priority which will always be a no more priority no matter what is, uh, ensuring that the children are safe on on Twitter that there's no child exploitation. so that is number one priority always and forever.

Um, and what I've been told is that we've done more uh to eliminate this on Twitter in the last four months than it's been done in the last 10 years and it will continue to be number one priority. Um, you know 100 fold reduction in CSC search patterns is pretty gigantic to say the least. Um, so uh yeah, it's absolute number one. So on.

continued on. Brand safety. Um, you know this. Global Alliance for responsible media is brand Safety for the the farm.

Um, you know Twitter business and tweeted out earlier in the year that in testing uh, 99 at least 99 of measured ad Impressions appeared on contact that exceeded that floor. So you know what message do you have for your advertisers when you're talking to a CMO to the head of an agency just in total? I Think you touched on this a little if there's anything to add, but brand safety is in fact a top priority with a team all over it and technology and humans focused on the subject. Yeah, as I said, I mean with respect to Brian So if you're really it depends a lot on the brand. I mean if you've got sort of, you know, uh, kind of.

By the way, Disney is is a major Advertiser on on Twitter Worldwide one of our biggest advertisers. Apple's one of our biggest advertisers. um uh, but Disney of course wants to does not want to have their ads next to things that aren't appropriate for a family audience. Um, but there are, um, other products that are kind of more you know R-rated if you will.

Um, and and so they're They're more comfortable with being their advertising being in the equivalent of like an R-rated movie or something like that. So brand safety varies depending upon what brand you're talking about. Is it a family brand or or less family brand? Um, But but advertisers can actually adjust Um how much, uh, what content they're comfortable having their advertising appear next to? Um, Same is true on TV. Um, so the you know the advertising that you'll see, it's say 7 PM is different from the advertising that you'll see at midnight.

Um, and this is we have the same functionality on Twitter So it's really up to the advertiser what the where they want to put their content. Um, but but I think by far the most important thing is that the advertising is is effective, that that it is relevant and that it moves the needle for a company. Um, the advertising relevance is is the most gigantic thing. Um, and and this this is going to sound totally bizarre, but uh.

Twitter did not consider relevance in advertising until three months ago. Um, and in fact, if you've used Twitter for a long time, Uh, which probably meant if you have, you should say like, how many products have you bought off Twitter Probably zero judging by the laughter. Probably zero. So Um, and your time is incredibly valuable.

Flamethrower. No one A lot of flamethrower. Well, I mean it's possible that they might want things from, you know, uh, content-based tweets because the the content that's recommended is reasonably relevant. but the advertising has not been.

Um. So as we moved to shift towards the advertising being relevant and timely. Um, this is really like I said, advertising that is relevant and timely is information. It is content.

Um, and the the value of the time of 130 million person hours of the smartest people on earth is insanely valuable. Um, and frankly, historically with the advertising being mostly Irrelevant In the past, Uh, We've been wasting people's time and that's not good going forward. Twitter will will have very relevant, useful advertising and uh, and because it is is useful because it is relevant, there will be a massive increase in Revenue because it is not useful. Um, so Um, I'm very optimistic about the future.

It's been a very difficult four months, but I'm optimistic about the future. Appreciate that. So let's get back to democratic. Democratic Platform: For all the Um, You know you've said there's no permanent suspensions of anyone on the left.

You've brought back both left and right. but I think what you've tweeted is you had to unban a lot more on the right because that's who was banned for the most part, but your goal is equally unbanned. Complete equal Level Playing Field For all sides of the political Spectrum Yeah, I mean the The: I think the objective reality for anyone looking at Twitter Uh, for the longest time was that Twitter was had a massive thumb on the scale on the left side. um Twitter would ban and suspend accounts on the right.

Uh, 10 times more than on the left. So it looks like naturally what you'd expect frankly because where are we were in San Francisco which is uh, deep deep blue. Um so Twitter was uh, controlled by the far left. So the natural thing that would happen then is suppression of of moderates.

not just on the not suppression of the right, but even suppression of moderate voices. So but that. but that's not conducive to a healthy National dialogue. In order to have healthy National Dialogue you have to represent the whole country.

And you have to represent Uh. You know everyone in other countries too. It's got to be. You know that's the only way to have a Town Square Um, and so yeah, there were disproportionately more accounts, unsuspended and unshadowed banned on the right because the Twitter had a huge thumb on the scale on the in favor of the left.

So that's but. but. but if you say like, have we been suspending counseling left, have we been Shadow Banning Council left? No, we haven't So uh, because I what exactly what I said is we would do we are doing. Which is to make it an even playing field.

Um, and you know something is freedom of a speech. When it is when you're hearing speech that that from someone you don't like and what and what you're saying, you don't like what they're saying this. Otherwise it's not free speech and if you don't have that ability then sooner or later that that's that. Suppression of speech is going to be turned on you.

So it is a good sign. If you're seeing people you don't like say things you don't like, that is a good sign. Not a bad sign because it means and provided you can say your piece too. Um I I Think this was fundamental I mean the reason I I did the Twitter acquisition was not because I thought this would be some lucrative Gold Line Um uh it.

and in fact it has been arduous and difficult with a massive with you know and being dumped on every day. Well that's not the most fun thing in the world. Um, but if we do not have a a strong Foundation of free speech I I Fear for the future of our civilization, we must have this. That's why I did it.

Thank you for doing it. Um Switching Gears. Um, a media narrative that um, you know may have some accuracy. They're not all inaccurate.

Um, but the code base is difficult to change. Tech Debt Unwieldy. Um, you know. Rube Goldberg machine is a term you've used so fractal.

Rube Goldberg This is this is at least partially accurate if not accurate. Uh yes well uh yes uh. Like the code base is Like a Rube Goldberg machine. Um, and uh, when you zoom in on one part of the Ruby Goldberg machine, there's another group called work machine and then another one.

Um, this is your penguin. That's what I mean by the fractal fractal. As you zoom in, it's just another practical, another fractal fractal book machine. Um, so it's quite difficult to keep this thing running.

Um, and then also difficult to advance the product. Um, because it is really overly complex. Um, to say the least. Um, and we'll make a change.

What? What appears to be a small change somewhere that then causes a massive disruption? Um, so for example, just yesterday we made what we thought was a small change and we'll put out the what we want to be in the sort of full disclosure of everything, including that you know gruesome details. Uh, so uh. But essentially there was a what was supposed to be a small change to one percent of the Twitter user base ended up being a catastrophic change to 100 of the query use of ace. Um, and uh, you know I don't know.

We don't have enough time to go into the details, but um, there was a there was a brilliant flag in the Twitter front and that that should not have been there. Um, and uh, when we fixed that. Um, but but it's I mean it's like a silly example. At one point we, um, there was a problem with Twitter spaces where suspended users were able to join conversations even though they were suspended and we temporarily uh, turned off uh access to Twitter spaces which is Um which then made someone anyone who is using the Twitter Android app unable to like tweets.

Now how those things are connected is not clear. so if you were in the Rube Goldberg practically, that's what I'm saying. So if you had an an IOS app, you could like tweets. If you're on the web app, you could like create this, but not if you had an Android app because of spaces.

I mean like what? Um, so you know we're so one of the things we're doing. There's a lot of work behind the scenes in simplifying the code base, getting rid of extraneous features, and enabling Twitter to evolve more rapidly in the future, but it requires a lot of cleanup essentially. Um, yeah, so you know you. you've grown Um users despite this lean engineering team and the and the the code base being unwieldy and Cloud spend 40 down? cut out a data center.

Is this due to the the strength of the engineering team that you've been able to achieve this and introduce subscription and other features while trying to hold it all together? And and where does that engineering team go to accomplish both the code base enhancements and all the features you've said you want to introduce? I mean I Think on balance, we're doing okay because um, and just to give you a sense of where things were at the close of acquisition on say, October 29th. Um Twitter was tracking to a negative three billion dollar a year burn rate. um, and had one billion in the bank. So that's a pretty dire situation.

Um, if point if 2023 has been a normal year, Um Twitter would have done something on the order of four and a half million. Uploading Cost: roughly Break Even But when you add one and a half billion of debt servicing for that and a Master decline in advertising, some of it's cyclic, some of its political, but let's call it at least a 50 decline in Revenue roughly 30 decline Revenue You've got over three billion dollars. Negative. Um, because now Twitter has some Revenue that's not Advertising based.

So data services Uh, yeah. yeah, exactly like yeah. Um, so yeah, data subscriptions? why not? Um so. but it was What in the absence of action um, quota would have had six billion in cost and three billion.

Revenue So minus three billion and it was a billion in the bank. so it would have gone bankrupted four months. Um, so so immediate and drastic action had to be taken. um, which which was And so we actually have now cut the burn to the the non uh, interest burn to roughly uh, one and a half billion.

So we've got a billion and a half of that. So saying, and a billion and a half of expenditures. Uh, we I went from three data centers to two. Um, and it reduced our Cloud expenditures uh, significantly.

Um, and um, while at the same time having the fastest product Evolution in Porter's history. So overall, not bad. Um, there's been a few bumps along the road obviously, but this is to be expected. Um, and now I think we have the opportunity to grow it into something quite spectacular.

Um, we we have the highest uh total user minutes in Twitter history. So the the the real number to care about is actually not the uh MDOT monthly, which is directly monetizable daily active users, but it's it's user time. Um, how many total user hours per day do you have? Um, that's that's the real figure of marriage. Because one could for example, say uh, go to 300 million daily active users.

but if they spent less time on the system, uh, cumulatively, that would actually be a downgrade. Um, it's how much human attention are you worth? Um, and that's what I think Like I said that. The really profound thing is what Twitter has is roughly 130 million hours of the smartest, most influential people on earth. every single day.

There's there's nothing else that has that. I Mean there are social networks that are that have more users, but they do not have the smart influential people. they don't have you. So the if I do the math on what you've said about um The Advertiser pause and revenue Decline and the cost? uh changes.

Um, it's ebitda profitable today and then you're looking for cash flow Break Even after death service we'll see if it's not profitable. but the yeah, the the dude is Big right when do you get to cash flow? Break Even bush with the D when you get the cash flow Break Even After that date, this is where we need to focus on the E-pod Uh yes yeah. I hope we pay taxes. um and the team.

Um yeah. um so uh like I said I mean we're getting to the point where we're close to having the total expenditures for the company excluding debt roughly equal to the debt. Okay, um yeah, that's what I think like I think we'll be there in queue too. um and then like I don't I definitely don't want to count uh chickens before the hacks hatch or drinks it or anything.

but I I think we've got a shot at uh being cash flow positive? Uh, next quarter. thank you too. so that'll some of that will depend on advertisers so we'll talk quickly about advertising. You've mentioned it a few times.

Um, the value uh is clear 147 billion Impressions uh on Twitter of World Cup 22 and 50 year-over-year growth and NFL video views. Um, you know 39 increase in Super Bowl mentions the NFL putting out engagements never been higher and then Wpp CEO Mark Reed 10 days or long ago so it's February 24th Twitter seems to be more stable. um and I think clients advertising clients presumably here will look about coming back to Twitter So are you in touch with agency and CMOS and is is this theme I think we just saw McDonald's or others um coming back as they realize you are absolutely focused on we would have not to be focused on in terms of uh brand safety. Etc Yeah I mean I think the really um what I'd say to advertisers and Brands is you know use Twitter yourself and believe what you see on Twitter not what you read in the newspapers because what you see on Twitter is the real thing and what you read newspapers is not um and I'd like to thank uh Mark Reed on Wpp for their support um and proboscis and others.

Uh and for the advertisers that have stuck with us like Disney and Apple thank you. So that's brand advertising you've mentioned a few times. Performance Advertising I think I've heard your story about um White Lotus if maybe you can, you can share here. Um, you know performance-based advertising has been very lucrative for other companies and it can be made more relevant on a more narrow cast basis if you will than than pure brand advertising.

So when when do you introduce performance-based advertising and and scale it? Oh, we we is from from the moment the acquisition closed like we have to have. a performance-based advertising is really just advertising that is relevant relevant. In fact, we should really have aspirationally zero non-conformance based advertising. Um, you know we want advertising that matters.

Uh, people's attention is precious. We should not serve them ads that are annoying or irrelevant or strident or ugly. Um, and it's interesting to mentioned White Lotus I actually was talking to David Zazlov is great. Um, and he was like, hey, why can't we put a White Lotus ad uh, trailer every time someone mentions White Lotus on Twitter I'm like, absolutely so like one of the like, It's super obvious, but profound Things that we're doing is enabling keyword advertising so that you can enter the keywords and uh, like White Lotus And if somebody mentions White Lotus you put the White Lotus trailer there.

I Mean this sounds very obvious. Um, you don't need 153 for this. You don't need Advanced AI for this one. So uh, you know it's sort of just Google AdWords that applied to the tweets and the home timeline and replies and everywhere else.

Um, because you'll often have very sort of long, deep conversations, people going on talking about movies, TV products and whatnot, and uh, that's the perfect opportunity for advertisers to provide their message. Um, you know, if I think about something for example, like like Starlink? Um, which does advertise in various media for Starlink would want to advertise to users in in regions that are not already saturated. So installing tends to be saturated in urban areas but is not saturated in uh, rural areas. And so what song would like to do is like say please, um show the ad in to to rural users with a slow connection and then the simple message is do you want faster internet for less money Click Probably you do.

And Twitter needs to be able to do a simple thing like that and it will be um and in fact it is already able to do that. We're just having fully rolled it out. so we're we're I think around 20 percent ish. but by the end of this year almost all advertising will be should be reasonably relevant and that your your Starlink example comes back to your disposable income if you want to or the education level and the ability to buy and afford to start the subscription of the Twitter user like it also dovetails back into that Yeah, absolutely.

Um, so um, you know I Think there's also an opportunity here to uh, have advertising be uh much it might like really improve the relevance of advertising using Um AI in the sense that if you based on what tweets somebody views, likes, whatever, you can actually populate a parameter space and you know Ml parameter space. And then you can take an ad and even if you say nothing about that ad after it's dropped in the Twitter system and it has 10 000 views, you populate a parameter space of that of the ad and then you correlate the user parameter space and the add parameter space. And then you don't need to do any demographic targeting because you could be like say it's a gardening ad. Well, you could be 20, 30, 40, you could be 70 years old, Any sex, whatever.

it doesn't matter what matters. do you like gardening? and that's the ad that should be shown. And so I Think we can get away from a lot of the sort of targeting by age range and sex and whatever in favor of targeting my interest. Um, and and a lot of these sort of demographic targeting was done.

Coming from a TV or newspaper era where you don't have interaction with the user, you just have to kind of guess because it's a one-way Street in TV Um, but on Twitter it's not a one-way Street there's continuous interaction. Um so I think we can just have a profoundly more useful uh, advertising experience. So let's close on Twitter Before getting to um, another couple companies I've heard that you run the vision You're Building towards I think you've called it X or the Everything app, tell us about it and Beyond just improving the advertising and and um, you know what will we be able to do on Twitter in your in your grandest vision? Yeah, so so X X.com is uh, you know, you know. so so I Think it's possible to create a very powerful um Finance experience Basically, um, like like PayPal is kind of like a halfway version of what I think could be done.

um in payments and finance? Um, and so you want to be like let's say you like you want to be able to to send money easily from one account on Xbox Twitter to another account effortlessly with one click. Uh, you want to be able to I think on interest on the money, you want to be able to. um, that so you can put your interest and grow negative. I mean basically I think it's possible to become the biggest financial institution in the world.

So just by providing people with convenient, uh, payment options, um, we don't have the time to go into it in detail here except uh, if we just make the app more and more useful. uh, people will use it more and it'll be great. I mean yeah, so you'll see okay, um at um we're still on Twitter for a moment but we had uh, you know in Austin thank you for hosting uh at the investor day and you showcased 16 Executives uh on stage at various times. um with you an incredibly uh, deep and built out management team and I think the executive team um with you with Twitter Um, you know is perhaps a bit leaner.

Um, let's just maybe there's a media narrative here that's accurate. So he does have a black turtleneck. So so when when does the Twitter management team have that bench like you showcased at the Gigafactory? Well I think it takes it takes a long time to build a strong management team and the you know we're both the Tesla management team over 20 years. Um, so uh I think Twitter isn't easier problem than than Tesla uh by long shot.

Um so but it'll take some time to build the team and uh, probably a few years. Okay, um and um Switching gears. Uh, you shared Master Plan 3 at the Gigafactory and and you know the edit Uh, that that came to my mind was you know, Master planet after your your first piece there on sustainable energy for all of Earth can you can you take us through that uh, positive, optimistic, mathematically underpinned vision for our planet? Okay, it was not a lot of time to do that, but um, but I guess the the overall message is that um, we can absolutely make us, uh, the turnovers into a sustainable energy economy? Fully sustainable. Uh, using Lithium-ion batteries, solar, wind, as well as geothermal, nuclear, and other things.

but primarily it'll be solar and wind, and Lithium-ion batteries and calculations, you need roughly 240 terawatt hours of Lithium-ion batteries. Most of those will be ion phosphate lithium if I of the iron phosphate variety. it lives with a primarily iron cathode, which is a plentiful material. In fact, Earth is the the number one element on Earth is actually iron.

A little factoid: Uh, I think Earth by mass is about 32 iron and about 30 oxygen. and then everything else is miscellaneous. Um, so we're like a muddy Russell Um, Uh, So plenty of iron. But basically the the materials are needed for Uh to make 240 terawatt hours of batteries are actually plentiful on Earth.

We don't need to mow down the Amazon um or anything like that. We don't need to basically do do anything travels the environment to create Uh 240 terawatt hours of batteries. In fact, there will be less mining required Um in a sustainable energy economy than is currently required. Really, it was a message of of hope and optimism grounded in physical reality.

It is not wishful thinking. Um, so we should be excited and inspired about the future. And I'm not suggesting complacency or anything like that or that we should. But and getting there faster is better.

Better than getting there slower. But but what we don't need to live some terrible auster life and give up the things that we like? You can have the things that you like, in fact, even more of them and the environment can be good. All the good things are possible is what I'm saying there's we should be excited and optimistic about future which we need to go build it. It's a lot of work Um, but you should not feel sad about the future regarding sustainable energy.

Uh, it will happen. We just want to make it happen faster rather than slower. So that was the first big takeaway. you know the the next one that I had was this your your next phase of vertical integration The Relentless First Principles thinking on vehicle design Battery design Factory Optimization You know at the same time uh as the vehicle that could lead to a Target I guess of this you know 50 step change in cost when the new gen um uh eventually comes around Um, can you just take us through the The Quick summary of that and and it unlocks the next uh wave of the Tam It because there's price elasticity is is the what you were sharing on this subject as the second big takeaway for Tesla Um yeah I mean those are the there's a clear path to making a vehicle a smaller vehicle that is roughly half the production cost and difficulty of our of a model three.

Um, wow, that small vehicle will be uh, or you know, really used almost entirely in autonomous mode that the thing that is really gigantic for for Tesla is autonomy. Um. and if people have used the Tesla full self-driving and have seen how rapidly the full self-driving capability has been evolving, Um, it should be obvious that that is by far the most profound thing. Um, the the the the the sort of total addressable Market stuff.

It's like guys, this is like actually not the right way to think about it. It's it's like, um. passenger vehicles right now only see about 10 10 to 12 hours of use per week. Um, there's 168 hours in a week.

If those vehicles are autonomous, they're probably going to get used for 50 or 60 hours a week. That's a 5x increase in the value of a car and it costs the same to make the car. But at that point you basically have software margins and a hardware product. It's insane.

Um, Total addressable. Market Is everyone all humans powerful? So let's switch gears to SpaceX No, no, um, stay on hitting. Uh. First, Starlink.

What can you tell us about Starlink and the the scale and and deployment and how that's going? Yeah, science. The starting team is doing an amazing job. More than half of all satellites uh, in orbit right now are Starlink satellites. so if you add up all satellites almost cumulatively, they are less than Starlink.

Um, the Starlink is currently providing Global connectivity. You can get connected connectivity anywhere on Earth from the most promote part of Antarctica to San Francisco anywhere that's full Global connectivity. High bandwidth and low latency. The latency is important because unless you're in low earth orbit, you cannot get low latency.

The Geostationary satellites are up. uh, you know. Um, um, they're very, very high. You've sort of got, uh, sometimes up to a second of latency from a Geo stationary satellite.

All things inclusive, whereas Uh with Stalling Satellites I would believe we can get the latency under 20 milliseconds. Um, so Um, and in fact, for international Communications Um. An interesting thing is that in fiber, light travels much slower than in Aero vacuum. So uh, in a rough approximation, uh, light travels about 300 kilometers per millisecond in air and vacuum, but only just roughly over 200 kilometers per second per millisecond in in fiber.

So so you've got like a sort of roughly 40 increase in speed of light. Um, going through this the stalling system, then through through fiber and and it can also follow a more direct route. instead of following the sort of uh Coastline of the continents it it can, actually, um, have a more direct route. It's a shorter round and an inherently faster from a physics standpoint.

So it it connects the world. um, way better than fiber Um. and it will provide and is providing connectivity to people that either never had it before or whether options were extremely expensive um, or very low bandwidth. So it's helping out a lot of communities that never, ever had access.

especially when you consider that education is is digital these days. That's really how you can learn anything. You basically learn anything. You can basically learn anything for free on the internet if you have the internet.

Um, so in terms of providing education abilities to remote communities, uh, Stalling is doing a lot of good in that regard. Lastly, um, you know the launch. Whether you know Falcon 9 heavy or Starship I think you had the static fire test that went well and and what can you tell us about the next next phase on launch or Starship Yeah, so we're getting ready for the first launch of of Starship. This is a very difficult program.

The rocket is um, roughly two and a half times the thrust of the Saturn V So if it what if or want to reach, resolve it, it'll be by father Vex rocket to reach over. But more importantly, it is designed to be the first fully reusable rocket over a rocket ever. So the the key to uh, extending life beyond Earth is fully and rapidly reusable orbital rocket. Um, this is a very hard problem given the constraints of Earth.

With Earth has a thick atmosphere and strong gravity, it was only barely possible to do this. Um, that's why it has not been done before. So we are getting. we're getting close for our first orbital attempt of Starship.

Um, hopefully in the next month or so we'll we'll have our first attempt. I'm not saying it'll get to orbit, but I am guaranteeing excitement. Um, so it won't be boring. Um I think I think it's got I don't know.

hopefully above 70 chance of reaching all of us. um and uh And then we we've got. we're building a whole series of Starships in South Texas Um and so I think we've got hopefully about an 80 chance of reaching over this year. It'll probably take us a couple more years to achieve full and Rapid reusability.

Um, which I can't emphasize enough is it is the It is the profound breakthrough that is needed to extend life beyond. Earth Um, because it it lowers the cost of access to space by orders of magnitude in the same way that if if let's say there were no airplanes that were reusable, how expensive would Air flight be, It would be insane. Um, you'd have to buy a new airplane every time you flew somewhere. and you have to tow a small airplane behind you for the return flight.

So uh, you know that's just you're not going to scale. Um, so if so many things go go well there. This this vehicle is it. It could make life multi-planetary That's a really big deal I could make my life on Mars real and I think that's uh I mean that's one of the great cultures that any civilization has to pass through.

Which is business civilization become multi-planetary or not? Um, this is one of the elements of the Fermi paradox. I mean I I Sort of wonder that if we are able to get to multi-planetary that'll be a forcing function for ultimately improving space flight to become multi-stellar to go to other star systems. And I think we may discover that there are many long Dead one planet civilizations. We don't want to be one of those.

You know, we don't want to be able to lame one planet please. I think we're going to wrap on that. Thank you Elon Musk Okay, let's do a summary. There was a lot there.

Let's just make sure there's not more. There's not okay. That was easy. All right.

Okay, let's do a summary of everything that we just learned. We'll kind of shorten this up over here. There's a lot here. This was, uh, felt a little spontaneous here.

Uh, but that's okay. Uh, let's go see everything that we've got a lot of information to cover and we share our cover. Oh dear, my hair is a mess. All right.

hold on well. Elon Musk Just had a surprise discussion with Morgan Stanley on everything from Twitter to Tesla to SpaceX and Starlink. Let's go through and cover some of the latest that Elon just told us. and what did he tell us about that next Generation vehicle and what else did he have to say about Twitter's profitability? Well first he started out his Um.

discussion with Morgan Stanley analyst talking about how the goal is to find the truth. That was one of the reasons Elon Musk wanted to buy Twitter is to make sure that the truth can be spread as much as possible. Now that doesn't mean there's not going to be a lot of BS but you want the truth with the lowest level of error rate and that's why they're expanding that Community notes feature on Twitter Which one of the things that I noticed that I thought was really neat was there were a few ads that were running on Twitter and they would say things like uh, why borrow from a bank when you could borrow yours from yourself by using a home equity line of credit and I'm like home equity line of credit is from like a credit union usually or a bank and so I saw that ad and then after that which this is an Advertiser paying money to sustain Twitter's viability, right? The community notes actually put a comment underneath that ad saying ah, this is not exactly accurate. You're not borrowing from yourself, you're borrowing from a bank using the equity in your home and I'm like yeah, like that's awesome.

Like we should have more like more Community notes like that to prevent uh, the spread of just straight up false information, right? We're not trying to play the controlling the left or the right or the narratives. It's just like if stuff is totally wrong like it'd be nice to add some context or Clarity right whether It's sarcasm or it's uh, meant to be deceiving or otherwise, right. Community Notes have been useful for that. Uh, so I think that's pretty interesting I Also think it's interesting that Elon Musk starts by talking about over at Twitter What's uh, neat is you actually tend to get news much faster than you might through mainstream media sources like the TV or newspapers for example.

There were 50 000 tweets about chat GPT in the chat GPT announcement and how incredible it was before the mainstream media started picking up on it. Also, Elon Musk talks about how newspapers and mainstream media coverage are generally negative. You rarely find positive news now In Fairness when you go on. Twitter Most of the viral stuff seems to also be very negative.

so I don't know if that's so much of a mainstream media problem, as it is just a human condition where we're more drawn into negative news than we are too positive news, even if like, sort of. The the intro is negative and then there's actually like, okay, this is what looks negative, But then here's why it seems negative. Here's the context. Here's the information.

Why? Maybe it's not necessarily as bad as it seems, right? It's almost like the way to educate these days is attacking head-on what is negative news and then sort of breaking it down into digestible information that we can actually glean education from. But it does seem like negativity does spread. But anyway, Elon Musk has this idea that there's much less negativity on Twitter Whatever Man, personally, I think everybody goes onto Twitter to sh9t post. but whatever, that's my take.

Elon does say that the average time people spend on Twitter is 30 minutes. That works out based on their monetizable user base. That works out to about 138 million hours per day now. Elon Musk Repeatedly said that the people who are on Twitter in his opinion are uh, maybe the smarter bunch of people who actually try to get educated or whatever.

Uh, okay, I mean sure, you know I'm not I don't want to diss some people on Twitter I Personally think you get a lot more perspective on YouTube because you can actually go deeper into a conversation and the thread conversations on Twitter still suck you like for example, just the other day Newt Gingrich is complaining about uh, uh, Governor DeSantis and his legislature potentially introducing a bill uh, that would require the registration of any kind of blogger who's talking about Executives in the State uh or the governor, right? And and then there's this whole fight going on about oh, this is censorship or no, this is good or that and like the whole bill was missing from the context. The bill is like you have to get paid but then we want Clarity on what is that getting paid mean right? Those are the conversations that are usually absent from those shorter Snippets So what I personally like to do is if I see something trending on Twitter I try to get more information on it, but but usually off Twitter Kind of interesting, but anyway, Uh, Elon Musk says that they currently make about five to six cents per hour of that time I did some really quick napkin math and that works out to about 6.9 million dollars a day. 207 million dollars per month. Or if you multiply that by 12, just about 2.5 billion dollars of income at Twitter.

Now what's interesting is Elon Musk did end up talking about some numbers. He mentioned that, uh, previously maybe they had about 4.5 billion dollars of Revenue and 4.5 billion dollars of costs. but now they've added on about 1.5 billion dollars of debt and a massive decline in ads. So you've had major issues for the sustainability of Twitter.

This is why you said Twitter is trending towards bankruptcy, right? Because after all, if you take 4.5 and you take off somewhere around two and a half, or like 40 to 50 percent, what do you end up with? Ah, about two and a half billion dollars? Which is roughly where that five or six cent per monetizable hour is right now now. Elon Musk Thinks that they can, actually, uh, potentially double this, triple this 5x this number. They think they could get to 15 to 25 cents of uh per hour of monetization of somebody's Time by serving up relevant ads. He thinks it's very frustrating right now that most people who use Twitter don't actually buy anything on Twitter because the ads just aren't relevant.

Whereas in the future he envisions the opportunity to use Twitter for oh uh. here. Do you want faster internet right now? Yes or no, that's cheaper than what you're current currently paying and you click? Yes. And you have internet That's sort of like his.

His thesis of how simple it should be to be able to check out and buy things on Twitter uh in the future. Right now he says only about 20 of ads that are delivered on Twitter are really deemed to be relevant based on the algorithm. He also complains a lot about the code base. He talks about a fractal Rube Goldberg machine.

So room rub Goldberg machine is basically like a Contraption You kind of want to think about a cartoon Contraption like imagine you you want to drink water and then you have a helmet on and then you have like three hoses that go into multiple different jugs and then another hose that comes up to you with a pump where you have to push the pump with your foot or something crazy just to be able to drink water right? So in other words, like the end result is the same. It's like you are thirsty so pick up bottle drink water right? But no, you have this entire contraption that makes something very simple. overly complicated, right? So when you over complicate a simple task, it's very easy for it to break. And so, uh, a fractal version of this is.

uh, so when you think of fractal, kind of think of a cloud like how a cloud repeats itself. it just goes on and on and on. Or another way to think about it is like a kaleidoscope where you look in the kaleidoscope and it's like man, everywhere you look it looks like you just have a repeating pattern of the same. like Goldberg machine Basically Basically and so this idea is at Twitter that every time Elon Musk looks at something or the team looks at something from a code base, they're like, why is this so complicated Every time we change one tiny thing, we break 27 different things.

This is ridiculous. Elon Musk On Twitter Yesterday talked about how eventually they might have to just rewrite the entire code base because it's so stupid. Basically the way it's been set up right now. Basically you give an example where hey, look, we had a bug where people who were suspended from being able to join certain people's Twitter spaces could still end up joining those spaces.

So we temporarily disabled people's ability to join those Twitter spaces. but by disabling people from being able to join spaces which is where you have voice chat, anybody who is using an Android phone was no longer able to like tweets but you could on iOS So it's kind of like this is stupid. So anyway, he talks a little bit more about the burn rate over a Twitter He thinks the burn right now is down to about 1.5 billion dollars. They've cut a lot of money on not only employee costs Cloud costs down 40 employees down to two thousand from eight thousand three data centers down to two data centers.

they uh, they think they're potentially at a place where they could be. uh, ebitda. profitable now. But Elon Musk says well, we got to get the earnings up because our depreciation is really high.

We would love to be able to write like pay taxes because that would mean we're actually making money. but we got to get the earnings up. And so Elon Musk thinks that maybe total income minus expenditures could be roughly equal, maybe slightly positive in the second quarter of this year and hopefully profitable thereafter. At the end of last year, they sat at 253 monetizable daily active users and Elon Musk then makes this big sort of slam piece.

a statement where he says what you read on Twitter is the real thing. What you read in the newspaper is not really doesn't like the mainstream media anyway. there are social networks with more users he says, but nobody's as smart as the users on Twitter It's a nice compliment to the people on Twitter. He talks about his app x.com how potentially in the future it could actually end up becoming one of the biggest financial institutions in the world by making it very easy to send money from one account to another, earn interest, go into debt, basically provide people with the ultimate convenience.

It sounds to me kind of like a a merge of maybe like L and PayPal and banking all in one, and crypto and blockchain like all in one together. like the best of everything. together makes sense. Uh, probably far down the road.

He says it took about 20 years to build the Tesla management team, that it'll take a few years to build the Twitter management team, but it'll come. He talks about then Tesla and sustainability. Big fan of solar and wind and batteries, not the biggest fan, so much of geothermal apparently or or the other potential methods for uh for energy. He believes that the next generation of producing Vehicles the Gen 3 platform.

He actually gives us more detail here in the very little bit of time that he spent talking about Tesla's next-gen uh, a platform in my opinion. He gives us more detail here than he does or did in investor Day. He just says look, the next-gen platform is going to be for producing a smaller car that it's going that is going to be almost entirely autonomous. Okay, great.

So now we know that Gen 3 is not to just make a cheaper model 3. it's actually a totally different car that is smaller and is expected to be almost entirely in autonomous mode. so maybe optional steering wheel. but anyway, that requires be you know, basically mastering FSD So really interesting.

He then goes into this idea about how you know people are looking at Tesla totally the wrong way that the total addressable Market is not selling 20 million Vehicles It's really that what we should be doing is thinking about how Tesla is a software company and once we Master Autonomy, you really have a massively larger uh, software margins that basically we can get software margins in Hardware Where like here's a car. Uh, and maybe we do the car for a break even. But then we have like a hundred percent software margin on on being able to provide FSD or like 99, right? It's kind of like the hardware business just operates as a break, even potentially a Tesla and they just make a crap load of money on the software. It's a brilliant idea in some regards.

it's somewhat similar. Well, I mean I'm not trying to compare myself to Elon Musk but we're we're trying. We're trying to accomplish exactly the same thing at my real estate startup where basically we're able to use one stream of income to cover all of our operating expenses and then just milk the a cash flow off something else. Now, more details on that later.

but but that's a phenomenal uh vision and a phenomenal game plan? Uh, it. So Elon goes on to say that look the Tam the total addressable Market is Huge. It's all humans, because really, you could 5 to 10x the value of a car in that cars that you're usually sitting around not being used for, but maybe 10 to 12 hours on average per week. Could in the future, uh, be used somewhere between 50 to maybe 100 hours.

His phrase was 50 to 60 so closer to five to six x. So that was neat and it makes a lot of sense. I mean I Kind of think about it from the point of view of if you sell a 25 000 vehicle. if you could reduce the cost of goods sold by 50 fantastic, you could still have a 25 to 30 margin.

That's great. but if you needed to go to zero margin and only make money off FSD you could literally get back to a 25 margin solely with FSD sales. And no, Hardware margin like the margin of safety at Tesla is so freaking phenomenal. It's one of the reasons it's my largest holding.

Uh, you know, and not only personally, but also In In, you know, Financial products out of management. but uh, all that aside. Uh, so then Elon Musk jumps into Starlink talks about how they have basically more than half of all of these satellites in orbit. Right now, you got to get to low earth, uh, low orbit levels with satellites to make sure you can provide low latency internet.

and he gives some technical comparisons about light traveling in a vacuum uh, versus through fiber optic cable. and he believes that light, uh, well, scientifically, light travels faster uh, in a vacuum than it does through fiber. and he believes he can accomplish a lot of those similar benefits by sending data through low Earth satellites. which I'm personally not a scientist I don't know, maybe, but you could say that the the uh, you know what's between satellite one and satellite two is in a vacuum.

but I'm not really sure how that data from the satellite to the user is considered to be in a vacuum since you're going through the Earth's atmosphere. but maybe that's not the point. Maybe the point is just saying like, hey, like we use fiber optic cable to go from continent to continent, why use that cable when we could use something that's maybe 40 faster? Like Satellites I Think that's probably more the direction he's using. Maybe somebody can fact check me in the comments of that.

But anyway, uh, so then he talks a little bit about the Starship how they hope to launch it, uh, next, uh, month, they think there's a 50 chance of reaching orbit and the only guarantee Elon Musk gives is that it will be extremely, extremely entertaining. So anyway, uh, personally I thought this was more interesting than investor day. Yes, thank you so much for asking that question. Darby Mostly because like all of the, the details are fantastic of investor Day like I did like the takeaways about the robots and basically the the parallel manufacturing.

I Thought some of those details were phenomenal. Some of the additional details on cost structure reduction I mean look absolutely phenomenal. but I think that was not an investor Day Presentation that was more of an engineering presentation. If if that was just labeled engineering presentation, you know what? Fine, Perfect.

fantastic. An investor day style presentation would be more like look. Our goal is next vehicle 50 the cost. It's uh, it's gonna be a smaller vehicle, mostly autonomous, total addressable Market Infinitely greater than what people are expecting, right? Like the things he said today gave much more color to the Future cash flow potential of Tesla than uh, than than the investor.

They did the investor. And that's because we already went into investor day expecting that the next Gen platform was going to have a 50 cost reduction. It was just sort of like here's how, right as opposed to more of sort of a forecast. Uh, anyway, uh yeah, maybe it was an opportunity for Tesla to show off the team.

I Personally think they could have coordinated that a little bit better, right? That's been sort of. My argument is that like maybe everybody could have done a dry run of the presentation because some people didn't sound like super prepared for it. kind of didn't seem like Elon Musk really was fully aware of what everybody was going to talk about. It's kind of like ah here.

I am Okay, let's throw this together, which fine. it ended up working out just fine anyway. and uh, look, obviously still still a big fan of Tesla but do I have my criticisms of course? uh. and if somebody is you know doesn't want to hear criticism then and balanced opinion, then probably you don't want to listen to my channel anyway because that's always my goal is to try to sor