October 16, 2025 • 38 mins
Two massive stories are shaping the global economy this week. China just tightened control over rare earth exports, putting pressure on U.S. manufacturers that depend on those minerals for EVs, defense systems, and semiconductors. President Trump fired back with a 100% tariff threat that briefly wiped out nearly $2 trillion in market value before trade talks resumed.
At the same time, OpenAI is moving fast. Walmart’s new partnership will let users shop directly inside ChatGPT, and new updates will add adult-only modes and personalization features for verified users.
In this episode, Matt Allen connects the dots between power, policy, and innovation. What happens when China controls the materials of the future and AI controls the way we shop?
Subscribe for more weekly takes on markets, money, and power.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Matt Allen (00:00):
What is going on, everybody? Welcome back to the
Matt Allen Show. I am your host,Matt Allen. We're doing a solo
show today. We have a lot comingup scheduled.
We have our I have three hoststhat are booked, big time host.
We'll have Rob back soon. Youknow, we're we're dealing with a
contract dispute with Rob. Justkidding. But we got lots to talk
(00:22):
about today.
It's gonna be a little bit of ashorter shorter show, but heavy
hitting topics. We have theChina USA trade deal that deals
with the rare earth minerals,which which affects pretty much
every stock that you own. Andthen we have a bunch of stuff
going on with OpenAI, and we'regonna cover two of those three
(00:43):
issues. One of those issues withOpenAI is the Broadcom deal, but
we've talked about I feel likeI've talked about semiconductors
with NVIDIA, AMD, and OpenAI somuch that I mean, my god.
I'm just gonna keep on repeating myself. So with
that being said, let's get intoit.
(01:04):
So last Friday, markets tanked after president
Trump threatened to impose a100% tariffs on all Chinese
imports in response to new rareearth export controls from
Beijing. And here's what Chinadid, guys. They basically told
the world that if your productuses even a tiny amount of rare
earth minerals that come fromChina or if it was made using
(01:27):
Chinese refining or magnettechnology, that you'll need
Beijing's approval before youcan sell it overseas. Meaning,
if Apple
sells an iPhone, they can't sell that iPhone
until they get approval fromChina.
I mean, that's just a major shift because all the
materials for critical defense,electric vehicles and
(01:49):
semiconductors all come fromrare earths. And, you know, at
first, president Trump'sresponse was explosive. He
called it in a true social post.He called it an extraordinarily
aggressive move and even said hemight cancel his meeting with
president Xi Jinping of China atthe APEC APEC summit later this
month. And boys and girls, wow.
(02:13):
That announcement wiped outnearly $2,000,000,000,000 in
market value on Friday. I wasgetting ready to go meet some
friends at happy hour, and I didnot wanna go. Because one truth
post moved the market$2,000,000,000,000. But then by
Monday, the tone shifted. Stockssoared again.
US trade representative JamiesonGreer said talks were back on
(02:33):
and that The United States stillplans to meet with China. Greer
told CNBC on Squawk Box, if youknow, it's my favorite show to
watch. A lot depends on what theChinese do, but he emphasized
that both sides are stillcommunicating, and the
administration wants to workwith the Chinese. So what looked
like a full blown 2018 trade warif you remember in 2018, we had
(02:54):
a massive trade war with China.It suddenly turned into a
cautious de escalation earlythis week.
The tariffs still could happenNovember 1, the 100% tariffs,
which should be absolutely wild.But for now, it's a waiting game
to see how the how China handlesthe export rules. And that
brings us to the first issue onthe hand today,
(03:14):
rare earths, rare earth minerals. You know, if
you don't know, these minerals are the quiet
backbone of the modern economy,and China controls the entire
supply chain. So let's breakdown what's really at stake
here. Let's talk about littlerare rare earth minerals in it.
You know, I hated science class.I don't know if I hated
geography.
My buddy Stetson Gawler and Itook this geology class. It was
(03:37):
unbelievably awful. It was justterrible. And little did I know
that I'll be talking about rareearth minerals to a podcast with
listeners across 10 countriesright now. But, hey, here we
are.
This is the world we live
in, so let's get into it. You know? So it really
it just brings me back
to this point. I get I'm pretty fired up about this.
(03:59):
Why the hell have we been asleepat the wheel this long? I mean,
think about it. Seriously, howdoes the most powerful economy
on Earth hand over control ofthe very materials that make
mine and your life or modernlife possible?
I mean, it's absurd. Withoutthese rare earth materials, life
(04:20):
as we know it goes back to thenineteen fifties. And we need
Rob here to say, oh, he'd loveto do that. But, no. I mean,
come on.
Our life, you you you can't doanything with it. Every piece of
technology that you know hassome sort of rare earth
materials. I mean, it is justinsane. You know, we talk about
(04:40):
nonstop. We talk about energyindependence, reshoring
manufacturing, securing chipsupply chains.
But somehow, somehow, we havelet China take over the backbone
of mine and your our moderneconomy. These minerals I mean,
think about it. They powereverything, and I can't say it
(05:00):
enough.
They power everything from iPhones to
fighter jets. And it just itjust blows my mind.
And we're supposed to believe that this was just an
oversight. I mean, what the hellhave we been doing? Listen to
this fact. Listen to this fact.China controls 70%
(05:23):
of global rare earth mining. That's not the scary
part, guys. There's tons
of rare earth minerals in Greenland, Alaska,
all around the world. This isthe key. They control 90% of the
refining. 90%. So let let's saythis.
(05:43):
So let's say we let's say
we start mining our own materials in The United
States. At this point in time,we still have to ship them to
China so they can refine them tomake them usable.
That's like growing think about this now. I mean,
that is like growing your ownfood,
(06:07):
but sending it overseas to get cooked and then
sending it back. I mean, damn,DoorDash would love that
business model. I mean, how onearth did we let this happen?
And, you know, and and it
just goes back to to the point of, you know, the
problem isn't finding rareearths. The problem is
processing them. It's toxic.It's chemical heavy. You know,
(06:30):
it's just expensive.
And most countries, includingours, said, yeah. No. Thanks. We
don't wanna get down and dirtywith that. We don't need that.
We're too good for this. Wedon't need to we don't need to
refine. We don't need to. It'sexpensive. It's dirty.
We can't find workers. Chinasaid, yeah. We'll do it. And you
know what? They've been doingit.
We debated for the for the lastten years. We had our
(06:53):
politicians protest in thestreets. We're we're debating
and arguing plastic straws.Think about it. We're debating
plastic straws, and they werebuilding the most the the
biggest monopoly in the worldover the most important
material, and we are debatingplastic straws.
(07:13):
God, it gets me fired up. Youknow? And this is
the thing. If we push back in our trade talks,
they can just flip they can justflip the switch and just choke
off the supply. And they've
done it before. I don't if you remember, but in
02/2010, they did it to Japan.They they in 02/2010, they they
they cut the exports, and theprices absolutely spiked
(07:37):
overnight. And you might say,oh, what does what does Japan
have to deal with me? It haseverything to do.
Because if the prices spike,then that means your iPhone goes
from a thousand dollars to$2,500, if we're gonna
be able to make it so we don't have
the rare earth materials. You know? And and
this time, president Xi Jinpingsaid, we will do that to you,
America. Man, it's justunbelievable. Let's let me read
(08:05):
this stat real quick.
Under new rules, if a productcontains even 0.1% of Chinese
rare earths, companies needBeijing's approval to export it.
That's what they're proposing.That's not regulation. Man,
that's not that's not regulationat all. That is control.
That is monopoly. That is adictatorship. That is
unbelievable. Just just imagine this. Imagine Apple
(08:28):
or Tesla or Nvidia. Name thecompany waiting on a stamp from
the Chinese government beforeshipping products. You think
they're gonna be in a rush?
Hell no. I mean, in my opinion,that's so much leverage that
(08:54):
when when Trump sent that truthpost out and the markets crashed
like they did, I think WallStreet started to realize, holy
cow, if they choke the switch,we're in trouble. And I
think DC might have opened their eyes. You know,
what Trump said in his truthpost, I'm not gonna read it.
(09:15):
It's long and it's it's it'sit's, you know, it's it's
rambling. It's whatever. It'sprobably what I'm doing right
now.
But what he said was is thatthey sent that China that
Beijing sent papers to, like,every country and said, hey.
Here it is. Point one percent. And, you know, if
it's true, we haven't seen thepapers yet. I'm not saying it
(09:39):
was a lie. But if it's true
I mean, Trump looks like an international hero right
now. I mean, come on. Now oxOxford I think it was Oxford.
Their economists estimate thatif we had a partial dis
(09:59):
disruption, just partial, thatit could shave 1% off of United
States growth over the next twoyears. That's hundreds and
hundreds and hundreds ofbillions of dollars and jobs
lost.
I mean, that's, just justpartial disruption, guys.
Partial would be just horrible.And our big response, you know,
(10:24):
I'm I'm sounding I'm a prettyoptimistic guy, but, you know,
I'm sounding a littlepessimistic here. Our big
response was a stock pot. ThePentagon is building a a billion
dollar mineral reservestockpile.
Like, it's the nineteen fiftiesagain. You know, we're doing
uranium. I'm not being negativeabout this. I'm not. I promise.
(10:47):
And don't get me wrong. It's astart. But it is nowhere enough.
Nowhere. $11,000,000,000?
We need you know, look. I'll I'll
never have a billion dollars. It's a lot. But we need
trillions. We we need a have amoonshot project like, you know,
in the fifties when they'regoing after uranium to have the
(11:09):
nuclear arms race. This is thenew nuclear arms race.
It's unbelievable. This is thisis what we're fighting. This is
it. This is it. And now they'rethreatening us to turn it all
off?
We we we should have hold held aOval Office address that said,
hey. We're gonna have a$1,000,000,000,000 stockpile.
Like, no. Let me say that. A$10,000,000,000,000 stockpile in
(11:30):
the next five years.
We need to think big here,bigger than we ever have. And
and the stat came out too. Thisreally grinds my gears. The
government of accountabilityoffice came out, this week and
said it would it could takefifteen years, fifteen, to build
(11:53):
a full sorry, to rebuild a fullrare earth supply chain. Fifteen
years.
Fifteen years ago, I mean, theiPhone was barely out. Do you
know what can change in fifteenyears? We we can't afford to
(12:19):
wait that long while China justtightens its grip. They've got
50 refining plans, guys.Remember, it's
not the minerals here. We can find the minerals.
The reason why we wantedGreenland was for the minerals.
It's the refining part.
They've got 50 refining plants. They wanna
build 50 more. We have three.Three.
(12:48):
And on top of that, they filed around 25,000 patents
on rare earth processing.25,000. We filed about a a third
of that. Nowhere close. Youknow, in my opinion, that's not
competition.
That is called checkmate. Thatis
called chess. That is that is we are losing big
(13:12):
time
this race. And, you know, as an investor, this
should truly make your ears perkup and get kinda fired up like
I'm fired up right now. Becausethis in my opinion, this is not
a geopolitical story. It's amarket story. I mean, think
about it.
(13:32):
If they cut off rare earths tous, every single company that
relies on this type oftechnology from AT and T to
Tesla is going to absolutelytank. We're talking 50% in a
week. I don't think it's gonnahappen. I'm not trying to seer
up you guys.
(13:54):
But a Ford plant a few years ago had to shut down
because they because there was abacklog of rare earth materials
that they needed. This is asserious as it gets. I just you
know, China, in my opinion, isweaponizing these minerals like
we used to weaponize oil. Somaybe it's karma.
(14:17):
Maybe we deserve that. You know? But we just
can't afford it.
The way every American, good, bad, or
indifferent, lives their life,we can't afford that. We can't
afford for them just to cut offminerals. I mean, that's that's
an act of economic war, truly.Nuclear war. Like, if you had an
(14:39):
if you had a analogy for aneconomic nuclear war, this is
it.
This is it if they were to do that. And I
think that's why the panic happened Friday.
2,000,000,000,002 trilliondollars off one post.
$2,000,000,000,000 was lost inmarket cap off one post. I mean,
(15:01):
it's just something else. Youknow then, on Monday, good news
came, trade talks are back on.
But as of right now, that's just surface noise
literally. Not trying
to put a a pun in there. I mean, if we don't
(15:24):
figure this out quickly, they'regonna have something over our
head in a time of a
serious geopolitical problem. Like, let's say
they invade Taiwan, and they say, hey. If you,
America, if you intervene, we'regonna cut off the cut off the
(15:45):
minerals. We can't even sell f30 fives because we don't have
the minerals to to make more.And in my opinion, the companies
that can figure out this supplychain in America, or at least
Eastern Europe, are allies, anykind of NATO ally. But really in
(16:09):
America.
Those are gonna be greatcompanies to invest in.
Companies like MP Materials,companies like USA Rare Earth.
There's a company called Linus,l y n a s, you use this for
memory. Trilogy Metals. I did avideo on Trilogy Metals that had
great views.
You know, these are the onesthat are helping us build
independence. And thesecompanies, these stocks, you
(16:32):
know, MV Materials hasabsolutely soared. It's great
company. It's Shammoth Papadala.Oh, I just I just completely
butchered his last name.
Let's just call him Shammoth. Hetook that company public via
SPAC in 2020. A lot of peoplemade fun of of his SPACs, but, I
mean, he nailed this one. Heknew the problem. He knew where
the world was going.
MP Materials is a great company.It's very, very overvalued right
(16:55):
now, but take a look at MPMaterials in your long term. You
can find that thing on
a discount. Look at it because minerals are the new
oil. Minerals are the new oil.And whoever controls them will
control the future. And I'mgonna get
a little more optimistic here. Know, China's
ahead right now, but The UnitedStates has always figured it
(17:17):
out, and we always will. We'vewe've done what it takes. We
need leadership with a spine.We're seeing that right now.
The United States has alwaysfigured it out. That fifteen
year number, if we put all ofour resources, if
we put our American capitalistic culture behind it,
we'll turn that fifteen yearsthat it takes to rebuild rebuild
(17:38):
the supply chain. We'll
do that in five, three years. We can figure this
out, But it takes guts, it takesleadership with a spine, and it
takes, hey, this is a problem.It takes the public to realize,
hey, this is a problem. Youknow, this is not one of those
fake problems that the Bushadministration sold to us about
oil in The Middle East inFebruary. This is a real problem
that affects me and you, and itit could be a nightmare.
(18:02):
We have to educate the public onthis. It is it is too big of an
issue. And I'll say this, it wasnever an issue until they
started saying, you know what?We'll flip the switch.
We'll turn them off. That's when it
became an issue. That's why we lost
$2,000,000,000,000 on Friday. Inmy opinion, you know, AI is the
(18:27):
market story of our time rightnow. But minerals and that go
hand in hand. And we can't keeppretending that globalization
will save us in this.
Because we'll wake up one nightone day and realize our entire
economy runs through China. And,you know, it's not like it's
(18:48):
running through England. We'retalking about a con about a
country who absolutely hates us.
You know, I'm watching tariffs, I'm watching
headlines, but I think as aninvestor, you have to start
finding these companies like inNP Materials, finding them on
(19:09):
discounts, because right nowit's pretty undervalued, that
are going to
win in this future that we have. This AI revolution
future, you know, gets me firedup. You know what? Let's move on
to OpenAI because they got theygot a lot going on. And one of
(19:30):
these issues, I'm very, veryhappy for them.
The other issue gets me aboutfired up as this one does. So
let's just go right into OpenAI.I I mean, honestly, they've
they've gotten so many dealslately that I barely can keep
up. That's not true. That's ahyperbole, but it I mean, it's
(19:50):
just deal after deal for them.
So as I mentioned in theintroduction, if you haven't
heard, they just made the thethat new deal with Broadcom for
semiconductors. And look. It'sanother one of those deals
that's
just like we said about NVIDIA and AMD, it's great
for Broadcom, truly great forBroadcom, great for OpenAI, but
(20:13):
where's the money coming from?
We've covered this in-depth in the last co
episodes. So if you wanna knowhow I feel about Broadcom, this
deal, go relisten to a video inthe AMD's segments, and I feel
the exact same way. So I'm notgonna bore you and repeat that.
But this one's new, and this newdeal, pretty fired up about it,
pretty excited. Walmart, yesWalmart, just announced a
(20:38):
partnership with OpenAI that letpeople shop directly through
ChatGPT.
Instead of typing in a searchbar or scrolling through email's
results, you'll be able to askto find something. So let's say
you ask ChatGPT, what is thebest low cost
air fryer? Well, they'll do
its little thing and they'll come up with the best
(21:01):
air fryer for you to buy and youcan buy it instantly right on
the ChatGPT app. Huge. That ismassive. It's very similar to
what the partnership they hadwith shop up Shopify, but I
mean, this is just a massivepartnership for Walmart in
particular. Walmart CEO, DougMcMillan, said the new setup
(21:22):
will be multimedia,personalized, and
contextualized.
I really don't know what thatmeans personally. That's not the
three words that
I would've used. I guess what he
means is that the shopping experience inside g
ChatGPT will include photos,
videos, and recommendations, I guess.
So I guess it'd be al algorithmic. They'll use an
(21:47):
algorithm. The idea for them isto make shopping feel less like
browsing. This is
what they're this what they're saying. I'm reading
it off. The idea is
to make online shopping feel less like browsing
and more like having someonepersonally help you find what
you need. That makes sense. Ican see that. Let's see. OpenAI
first teased this feature backin September calling it instant
(22:09):
checkout and it's alreadyexpanding to include sellers
from Shopify and Etsy.
We've talked about it before.Every transaction that happens,
every transaction oh, this isbig. Every transaction that
happens through ChatGPT willgenerate a fee for OpenAI.
Though the financial details onWalmart have been disclosed, of
course, they never do, which iscrazy to me. Walmart stock
(22:30):
jumped nearly 5% on the news,hitting a fifty two week high.
Alright. We're gonna get tothat. Let me just let me just
read off the news stories, bothstories, and then I'll tell you
my opinion. Is this this newheadline right here? My god.
Then there's the other bigheadline. Sam Altman confirmed
(22:50):
that in December, ChatGPT willlaunch in an adult only mode for
verified users. It's a part
of a broader policy change that'll allow that'll
allow erotic and or maturecontent under tighter safety
controls. Altman said
the company's new tools and parental settings now
(23:10):
make it possible to treat adultslike adults, whatever that
means, without the same mentalhealth risks that existed
before, whatever that means. Healso mentioned another update
coming soon that will let userscustomize how ChatGPT behaves.
From adding personality and toneto even making them respond more
like a friend or a humanassistant, which I thought I
(23:32):
already did that now. So betweenthe Walmart integration, new AI
features and policy shift, OpenI OpenAI has had a lot of stuff.
So let's get back into thisWalmart deal because it my
opinion, friends, it is huge andit's a turning point, you know.
Because people keep talkingabout this AI revolution like
(23:52):
it's coming someday, but this isit.
I mean, this in December, starting December,
it's here. You know, Walmart isthe biggest retailer on Earth,
and they just plug themselves directly into
ChatGPT. You know? When my whenmy parents' anniversary comes
(24:12):
up, my dad can say, I need alast minute anniversary gift for
my wife.
She likes this. And ChatGPT will be
able to go through all Walmart's products, all
everything they produce,
and let you buy it right there. You know? And the
more my dad could tell what mymom likes, the better gift that
(24:33):
JatchyBT could suggest fromWalmart. You know, that's
literally like having an onlinepersonal shopper. You know,
in my opinion, this is a massive win for OpenAI and
Walmart. You know, for Walmart,it's a shortcut into the next
generation of e commerce. Imean, this is the this is the
first time in, I would say, thelast, what, guys, ten, fifteen
(24:57):
years that they can finally say,hey, we have a path to compete
with Amazon. Look, you know, Iknow they've tried to sell it
for the last five years. Youknow, every time you listen to
Walmart's earning call, they,you know, they try and hype up
what is it?
They have that Walmart One orwhatever. Who the hell has
Walmart One? Not me. I mean,come on. You know, they've
(25:19):
always been the redheadedstepchild when it comes to ecom
competing competing with Amazon.
This is the first time that Ican see a path forward for
Walmart where if I'm Amazon, I'mlike,
boy oh boy. You know?
Tea has nearly has 800,000,000 weekly users.
(25:41):
800,000,000. You know, that'snearly 10% of the world's
adults. You know? And and mostof ChatGPT's users are, I would
probably say, 60 and below, 50and below, which, you know, it's
it's pretty big.
That means that they're goingthat those people will buy on
(26:02):
the app. I firmly believe thatWalmart now is in the picture of
a true blue tech stock. Will Ibuy it? I gotta see how it plays
out. I I you know, I'm not thebiggest fan of owning Walmart.
(26:24):
Like, it's a great company. ButI'll have to see this plays out,
and I'll probably watch it playout, and they'll probably
go up a bunch of percentage points, and I'll miss
it. But I don't know.
And then most importantly for OpenAI oh, I
wanna say one more thing aboutthat. You know, we have this
(26:46):
thing, it's conversational
shopping. This is the future of how we shop on a
day to day
basis, at least on ecommerce. You know, because if
this works, you'll have Shopify,who already has this
relationship with OpenAI, butyou'll have other apps that come
out and compete with these guys.You think Amazon's just gonna
(27:06):
lay down? No. Come on.
Amazon's Amazon because they'rethey're they're not they they
are they are never afraid totake a risk. Walmart has always
been afraid to take a risk inthe last twenty years. They were
so scared of losing what theyhad at their big brand, big
departments. They were scared totake ecommerce risks, and they
(27:28):
fell so behind. But Amazon'snever been scared, guys.
Never. You know, I I think we'reseeing a trend develop here.
Remember this term,conversational shopping.
Conversational shopping.Remember that.
Because I think it's coming. Ithink it's coming quickly. I
think if you have an ecommercecompany, you have anything
(27:49):
online, you need to be studyingconversational shopping because
we're at the very, verybeginning, and this partnership
works out well. Amazon willlaunch it, and then that means
if you don't have it on yourstore, you're behind. So let's
get back to why is this good forOpenAI.
Well, let's think about it.Well, they do 13,000,000,000 in
(28:10):
annual revenue, which is alittle over a billion a month.
And hey, for a startup, that'smassive, guys. But you gotta
remember, these are the samepeople, I mean, I wanna roll my
eyes thinking about it, whocommitted over
$1,000,000,000,000 to buy allthese chips. I mean, on
(28:31):
$13,000,000,000 revenue and youhave $1,000,000,000,000 worth
going into chips, I mean, that'slike financing a skyscraper on a
car loan.
I mean, it's unbelievable. So,you know, instead of trying to
squeeze more people into plus,which, you know, I I use that. I
I wouldn't give up thesubscription. But instead of
(28:52):
doing that, they're gonnathey're gonna try and take a
small cut of every transactionthat happens inside ChadGBT. You
know, they've partnered withShopify, Etsy, now Walmart,
which is a huge one.
Walmart moved $674,000,000,000 ayear. You know, if they can just
get a small slice of that,that's massive. How do you think
Visa built their monopoly inMastercard? They get a small
(29:14):
transaction every time you makea purchase on any of
their credit cards. Think of it very,
very similar to that. You know? And if you look
at Walmart's online sales, asmuch as I just kinda criticized
them, they're up 25%, I think itis. Their digital ad business is
jumping. You know, if Walmartweaves all that in, it comes off
(29:38):
good, this could be massive forOpenAI, for revenue source, and
like I said, allow Walmart tocompete with Amazon.
You know, from a businessstandpoint, I think it's very,
very smart from both sides. Ithink this is a huge risk that
finally Walmart finally took arisk in ecommerce, and it
couldn't come at a better time.I I think it's massive, very
(30:02):
bullish. I think the stockWalmart's only up five percent.
I think it should have been up20%.
Truly. I mean, truly believethat. I mean, it's huge for the
stock. Do you have if you have alot of money and you're older
and you're kinda thinking aboutretirement, I think Walmart
might be something to highlyconsider for your portfolio.
Obviously not investment advicebecause you know, they have a
(30:24):
good dividend and this deal isawesome for them.
Well let's get into, I mean, the curveball. I mean,
good. We can't have we can'thave anything nice.
Right after OpenAI announced their family friendly
(30:48):
deal with Walmart, I mean, youyou got one of the most family
family friendly brands around.They announced an adult only
mode for ChatGPT. So you have tobecome verified, prove that
you're an adult, show them yourID, which, you know, I'm sure
I'm sure they're gonna probablysay, oh, we're getting rid of
(31:08):
it. I'm sure they will not.Verified users will be soon
allowed to access erotic ormature content.
And I'm sure I have a fewfriends who listen to this
podcast like Michael Fisher,Jacob Walker. I'm sure they're
fired up for that. Just kidding.It's a joke. But, I mean, look,
(31:33):
I understand the logic.
You know, if you think about it,if you
really think about it, the adult industry, the
erotic industry,
has always driven tech innovation. It always has.
You know, they led the Internet.They were the first, they really
were some of the first people touse the Internet at scale.
(31:58):
Right? I mean, and then, you know, they were the
first ones did you know it was one
of the first ones to have payment security on the
internet? You know, the virtualreality, they've led that.
So I understand from a business point why you had an
erotic g g g g p t if you hadsome other app, right, that did
(32:25):
this. I completely understandthat. You know, that industry is
a multi billion dollar industry.I mean, look at OnlyFans. That
owner gets a $750,000,000dividend check.
The owner does. Every year. That's crazy. So I
understand. There's tons ofmoney to be made there.
I get that logic. But you'reOpenAI. You power classrooms,
(32:49):
boardrooms, and now Walmart. Youknow? You don't need to dip into
this world to make money.
You know?
You know, if if Sam Altman launched a new startup
and funded a startup that didjust this, just like I was just
talking about, that was callederotic g GPT,
(33:11):
I get it.
But you can't say that you're a family friendly
shopping platform one week andthen an adult chat the next.
It's like opening a daycare inthe back of a casino. You know,
(33:33):
I mean, think about it.Someone's gonna be messaging
chat GPT. They're gonna startsending something that's not
good to the erotic part of it.
They had this whole longconversation. You know, then
(33:54):
their girlfriend or their wife,they're gonna go check the chat
history, and boom, next thingyou know, she's gonna screenshot
it. She's gonna screenshot thoseerotic messages, and she's gonna
send them to your friends, yourfamily. Your mom's gonna up one
Friday morning reading all thesemessages. I mean, good lord.
I mean, why would ChatGPT dothat? I just I just jokes aside,
(34:18):
I I I truly it's it's a brandproblem. You know, OpenAI spent
years positioning ChatGPT as aneducational and business tool,
which it is. You know, it'ssomething that teachers,
executives, parents all couldtrust. But once you add adult
content, that trust is gone.
(34:39):
I mean, I just don't get it. Youknow, if you think about it, you
can't be the company. They wantthe company. They want ChatGPT
to write investors reports byday and and the CEOs present
that to the board rooms duringthe day. You just can't be the
(35:00):
company that does does that andthen that same CEO goes home and
talks dirty to him because theirwife's bored and won't talk to
him.
I mean, it's just it's just it'snot it's not you're better than
that, Sam Altman. You're betterthan that. You know? And that
it's just it's just like justthe biggest oxymoron. It splits
(35:21):
the brain in half because theWalmart deal is exactly what
OpenAI should be doing to be thethe greatest startup that we've
ever seen.
They're on pace, that800,000,000 weekly users. But
not everything is about making aquick buck. Think about your
brand. You know,
(35:41):
I just I don't get it. It's a short term money grab
that in my opinion underminesthe long term credibility of
their brand. I just I don't getit. You know, as I joked about
earlier,
the last thing you want is screenshots going around
of your messages with ChatGPT.You know, I just I hope they I
(36:05):
hope they go back on this deal.There's been a lot of pushback
and they should go back on thisdeal because it's just not them.
And that's a compliment to whatthey've built. I just I I truly
don't get it.
And and I'm I'm gonna repeatmyself, but I'll say it again is
that if Sam Altman launched astartup that focused just on
this, I would totally get itbecause that industry is worth
(36:26):
hundreds of billions of dollars.I would get it. Don't do it with
ChatGPT. Have some common sense.You know, if they keep blurring
that line, they're gonna risklosing the one thing that every
trillion dollar company musthave, which is trust.
You gotta keep the trust ofpeople. You know? And and when
(36:49):
you lose the consumer's trust,no amount of partnerships, ads,
checkout integrations, oranything can buy that back. You
know, Meta and Zuckerberg hasfought that battle every single
day. And I will say this, I'm adefender of Zuckerberg at times.
(37:10):
It's an unpopular opinionbecause they face challenges
that the world's never seenbefore. Right? The algorithms,
the news, like think about it. Imean, he didn't realize that in
2015, 2016, the ads and andthings that are being shared on
Meta would impact an election.Right?
(37:31):
So I've always said, hey. He'sfaced things that they might
have should have seen coming,but he's always done what he can
to fix them. They've been issues that come out of
nowhere. Damn Altman. This is anissue that you created for
yourself. I just don't get it.
I don't get it. And youannounced this news on the I
(37:53):
mean, how
are you gonna monetize? I mean, I I don't
know. I I might get canceledtrying to keep on talking about
this, so am I a little fired uptoday. You know, the rare earth
metals thing is something very,very serious. It's also a great
investment opportunity.
They're very overvalued rightnow, but you need to start
learning everything you canabout rare earth mineral stocks
(38:14):
in America. You need to learnabout refining, how they refine
them. I'm I'm doing the doing myresearch. I'll talk more about
it or just you wanna message meon Instagram or text me, let me
know. But I I can't thank youguys enough for always tuning
in.
We're in 10 countries now, whichis huge. Just episode five. Next
week, we're like I said, we'rewe're gonna have some big time
(38:35):
guests coming on soon. We'llhave Rob back here soon. We're
gonna keep on doing more soloshows.
I I like doing solo showsbecause I get to express what
I'm fired up about. And, thankyou guys, and I will see you
next week.
What is going on, everybody? Welcome back to the
Matt Allen Show. I am your host,Matt Allen. We're doing a solo
show today. We have a lot comingup scheduled.
We have our I have three hoststhat are booked, big time host.
We'll have Rob back soon. Youknow, we're we're dealing with a
contract dispute with Rob. Justkidding. But we got lots to talk
(00:22):
about today.
It's gonna be a little bit of ashorter shorter show, but heavy
hitting topics. We have theChina USA trade deal that deals
with the rare earth minerals,which which affects pretty much
every stock that you own. Andthen we have a bunch of stuff
going on with OpenAI, and we'regonna cover two of those three
(00:43):
issues. One of those issues withOpenAI is the Broadcom deal, but
we've talked about I feel likeI've talked about semiconductors
with NVIDIA, AMD, and OpenAI somuch that I mean, my god.
I'm just gonna keep on repeating myself. So with
that being said, let's get intoit.
(01:04):
So last Friday, markets tanked after president
Trump threatened to impose a100% tariffs on all Chinese
imports in response to new rareearth export controls from
Beijing. And here's what Chinadid, guys. They basically told
the world that if your productuses even a tiny amount of rare
earth minerals that come fromChina or if it was made using
(01:27):
Chinese refining or magnettechnology, that you'll need
Beijing's approval before youcan sell it overseas. Meaning,
if Apple
sells an iPhone, they can't sell that iPhone
until they get approval fromChina.
I mean, that's just a major shift because all the
materials for critical defense,electric vehicles and
(01:49):
semiconductors all come fromrare earths. And, you know, at
first, president Trump'sresponse was explosive. He
called it in a true social post.He called it an extraordinarily
aggressive move and even said hemight cancel his meeting with
president Xi Jinping of China atthe APEC APEC summit later this
month. And boys and girls, wow.
(02:13):
That announcement wiped outnearly $2,000,000,000,000 in
market value on Friday. I wasgetting ready to go meet some
friends at happy hour, and I didnot wanna go. Because one truth
post moved the market$2,000,000,000,000. But then by
Monday, the tone shifted. Stockssoared again.
US trade representative JamiesonGreer said talks were back on
(02:33):
and that The United States stillplans to meet with China. Greer
told CNBC on Squawk Box, if youknow, it's my favorite show to
watch. A lot depends on what theChinese do, but he emphasized
that both sides are stillcommunicating, and the
administration wants to workwith the Chinese. So what looked
like a full blown 2018 trade warif you remember in 2018, we had
(02:54):
a massive trade war with China.It suddenly turned into a
cautious de escalation earlythis week.
The tariffs still could happenNovember 1, the 100% tariffs,
which should be absolutely wild.But for now, it's a waiting game
to see how the how China handlesthe export rules. And that
brings us to the first issue onthe hand today,
(03:14):
rare earths, rare earth minerals. You know, if
you don't know, these minerals are the quiet
backbone of the modern economy,and China controls the entire
supply chain. So let's breakdown what's really at stake
here. Let's talk about littlerare rare earth minerals in it.
You know, I hated science class.I don't know if I hated
geography.
My buddy Stetson Gawler and Itook this geology class. It was
(03:37):
unbelievably awful. It was justterrible. And little did I know
that I'll be talking about rareearth minerals to a podcast with
listeners across 10 countriesright now. But, hey, here we
are.
This is the world we live
in, so let's get into it. You know? So it really
it just brings me back
to this point. I get I'm pretty fired up about this.
(03:59):
Why the hell have we been asleepat the wheel this long? I mean,
think about it. Seriously, howdoes the most powerful economy
on Earth hand over control ofthe very materials that make
mine and your life or modernlife possible?
I mean, it's absurd. Withoutthese rare earth materials, life
(04:20):
as we know it goes back to thenineteen fifties. And we need
Rob here to say, oh, he'd loveto do that. But, no. I mean,
come on.
Our life, you you you can't doanything with it. Every piece of
technology that you know hassome sort of rare earth
materials. I mean, it is justinsane. You know, we talk about
(04:40):
nonstop. We talk about energyindependence, reshoring
manufacturing, securing chipsupply chains.
But somehow, somehow, we havelet China take over the backbone
of mine and your our moderneconomy. These minerals I mean,
think about it. They powereverything, and I can't say it
(05:00):
enough.
They power everything from iPhones to
fighter jets. And it just itjust blows my mind.
And we're supposed to believe that this was just an
oversight. I mean, what the hellhave we been doing? Listen to
this fact. Listen to this fact.China controls 70%
(05:23):
of global rare earth mining. That's not the scary
part, guys. There's tons
of rare earth minerals in Greenland, Alaska,
all around the world. This isthe key. They control 90% of the
refining. 90%. So let let's saythis.
(05:43):
So let's say we let's say
we start mining our own materials in The United
States. At this point in time,we still have to ship them to
China so they can refine them tomake them usable.
That's like growing think about this now. I mean,
that is like growing your ownfood,
(06:07):
but sending it overseas to get cooked and then
sending it back. I mean, damn,DoorDash would love that
business model. I mean, how onearth did we let this happen?
And, you know, and and it
just goes back to to the point of, you know, the
problem isn't finding rareearths. The problem is
processing them. It's toxic.It's chemical heavy. You know,
(06:30):
it's just expensive.
And most countries, includingours, said, yeah. No. Thanks. We
don't wanna get down and dirtywith that. We don't need that.
We're too good for this. Wedon't need to we don't need to
refine. We don't need to. It'sexpensive. It's dirty.
We can't find workers. Chinasaid, yeah. We'll do it. And you
know what? They've been doingit.
We debated for the for the lastten years. We had our
(06:53):
politicians protest in thestreets. We're we're debating
and arguing plastic straws.Think about it. We're debating
plastic straws, and they werebuilding the most the the
biggest monopoly in the worldover the most important
material, and we are debatingplastic straws.
(07:13):
God, it gets me fired up. Youknow? And this is
the thing. If we push back in our trade talks,
they can just flip they can justflip the switch and just choke
off the supply. And they've
done it before. I don't if you remember, but in
02/2010, they did it to Japan.They they in 02/2010, they they
they cut the exports, and theprices absolutely spiked
(07:37):
overnight. And you might say,oh, what does what does Japan
have to deal with me? It haseverything to do.
Because if the prices spike,then that means your iPhone goes
from a thousand dollars to$2,500, if we're gonna
be able to make it so we don't have
the rare earth materials. You know? And and
this time, president Xi Jinpingsaid, we will do that to you,
America. Man, it's justunbelievable. Let's let me read
(08:05):
this stat real quick.
Under new rules, if a productcontains even 0.1% of Chinese
rare earths, companies needBeijing's approval to export it.
That's what they're proposing.That's not regulation. Man,
that's not that's not regulationat all. That is control.
That is monopoly. That is adictatorship. That is
unbelievable. Just just imagine this. Imagine Apple
(08:28):
or Tesla or Nvidia. Name thecompany waiting on a stamp from
the Chinese government beforeshipping products. You think
they're gonna be in a rush?
Hell no. I mean, in my opinion,that's so much leverage that
(08:54):
when when Trump sent that truthpost out and the markets crashed
like they did, I think WallStreet started to realize, holy
cow, if they choke the switch,we're in trouble. And I
think DC might have opened their eyes. You know,
what Trump said in his truthpost, I'm not gonna read it.
(09:15):
It's long and it's it's it'sit's, you know, it's it's
rambling. It's whatever. It'sprobably what I'm doing right
now.
But what he said was is thatthey sent that China that
Beijing sent papers to, like,every country and said, hey.
Here it is. Point one percent. And, you know, if
it's true, we haven't seen thepapers yet. I'm not saying it
(09:39):
was a lie. But if it's true
I mean, Trump looks like an international hero right
now. I mean, come on. Now oxOxford I think it was Oxford.
Their economists estimate thatif we had a partial dis
(09:59):
disruption, just partial, thatit could shave 1% off of United
States growth over the next twoyears. That's hundreds and
hundreds and hundreds ofbillions of dollars and jobs
lost.
I mean, that's, just justpartial disruption, guys.
Partial would be just horrible.And our big response, you know,
(10:24):
I'm I'm sounding I'm a prettyoptimistic guy, but, you know,
I'm sounding a littlepessimistic here. Our big
response was a stock pot. ThePentagon is building a a billion
dollar mineral reservestockpile.
Like, it's the nineteen fiftiesagain. You know, we're doing
uranium. I'm not being negativeabout this. I'm not. I promise.
(10:47):
And don't get me wrong. It's astart. But it is nowhere enough.
Nowhere. $11,000,000,000?
We need you know, look. I'll I'll
never have a billion dollars. It's a lot. But we need
trillions. We we need a have amoonshot project like, you know,
in the fifties when they'regoing after uranium to have the
(11:09):
nuclear arms race. This is thenew nuclear arms race.
It's unbelievable. This is thisis what we're fighting. This is
it. This is it. And now they'rethreatening us to turn it all
off?
We we we should have hold held aOval Office address that said,
hey. We're gonna have a$1,000,000,000,000 stockpile.
Like, no. Let me say that. A$10,000,000,000,000 stockpile in
(11:30):
the next five years.
We need to think big here,bigger than we ever have. And
and the stat came out too. Thisreally grinds my gears. The
government of accountabilityoffice came out, this week and
said it would it could takefifteen years, fifteen, to build
(11:53):
a full sorry, to rebuild a fullrare earth supply chain. Fifteen
years.
Fifteen years ago, I mean, theiPhone was barely out. Do you
know what can change in fifteenyears? We we can't afford to
(12:19):
wait that long while China justtightens its grip. They've got
50 refining plans, guys.Remember, it's
not the minerals here. We can find the minerals.
The reason why we wantedGreenland was for the minerals.
It's the refining part.
They've got 50 refining plants. They wanna
build 50 more. We have three.Three.
(12:48):
And on top of that, they filed around 25,000 patents
on rare earth processing.25,000. We filed about a a third
of that. Nowhere close. Youknow, in my opinion, that's not
competition.
That is called checkmate. Thatis
called chess. That is that is we are losing big
(13:12):
time
this race. And, you know, as an investor, this
should truly make your ears perkup and get kinda fired up like
I'm fired up right now. Becausethis in my opinion, this is not
a geopolitical story. It's amarket story. I mean, think
about it.
(13:32):
If they cut off rare earths tous, every single company that
relies on this type oftechnology from AT and T to
Tesla is going to absolutelytank. We're talking 50% in a
week. I don't think it's gonnahappen. I'm not trying to seer
up you guys.
(13:54):
But a Ford plant a few years ago had to shut down
because they because there was abacklog of rare earth materials
that they needed. This is asserious as it gets. I just you
know, China, in my opinion, isweaponizing these minerals like
we used to weaponize oil. Somaybe it's karma.
(14:17):
Maybe we deserve that. You know? But we just
can't afford it.
The way every American, good, bad, or
indifferent, lives their life,we can't afford that. We can't
afford for them just to cut offminerals. I mean, that's that's
an act of economic war, truly.Nuclear war. Like, if you had an
(14:39):
if you had a analogy for aneconomic nuclear war, this is
it.
This is it if they were to do that. And I
think that's why the panic happened Friday.
2,000,000,000,002 trilliondollars off one post.
$2,000,000,000,000 was lost inmarket cap off one post. I mean,
(15:01):
it's just something else. Youknow then, on Monday, good news
came, trade talks are back on.
But as of right now, that's just surface noise
literally. Not trying
to put a a pun in there. I mean, if we don't
(15:24):
figure this out quickly, they'regonna have something over our
head in a time of a
serious geopolitical problem. Like, let's say
they invade Taiwan, and they say, hey. If you,
America, if you intervene, we'regonna cut off the cut off the
(15:45):
minerals. We can't even sell f30 fives because we don't have
the minerals to to make more.And in my opinion, the companies
that can figure out this supplychain in America, or at least
Eastern Europe, are allies, anykind of NATO ally. But really in
(16:09):
America.
Those are gonna be greatcompanies to invest in.
Companies like MP Materials,companies like USA Rare Earth.
There's a company called Linus,l y n a s, you use this for
memory. Trilogy Metals. I did avideo on Trilogy Metals that had
great views.
You know, these are the onesthat are helping us build
independence. And thesecompanies, these stocks, you
(16:32):
know, MV Materials hasabsolutely soared. It's great
company. It's Shammoth Papadala.Oh, I just I just completely
butchered his last name.
Let's just call him Shammoth. Hetook that company public via
SPAC in 2020. A lot of peoplemade fun of of his SPACs, but, I
mean, he nailed this one. Heknew the problem. He knew where
the world was going.
MP Materials is a great company.It's very, very overvalued right
(16:55):
now, but take a look at MPMaterials in your long term. You
can find that thing on
a discount. Look at it because minerals are the new
oil. Minerals are the new oil.And whoever controls them will
control the future. And I'mgonna get
a little more optimistic here. Know, China's
ahead right now, but The UnitedStates has always figured it
(17:17):
out, and we always will. We'vewe've done what it takes. We
need leadership with a spine.We're seeing that right now.
The United States has alwaysfigured it out. That fifteen
year number, if we put all ofour resources, if
we put our American capitalistic culture behind it,
we'll turn that fifteen yearsthat it takes to rebuild rebuild
(17:38):
the supply chain. We'll
do that in five, three years. We can figure this
out, But it takes guts, it takesleadership with a spine, and it
takes, hey, this is a problem.It takes the public to realize,
hey, this is a problem. Youknow, this is not one of those
fake problems that the Bushadministration sold to us about
oil in The Middle East inFebruary. This is a real problem
that affects me and you, and itit could be a nightmare.
(18:02):
We have to educate the public onthis. It is it is too big of an
issue. And I'll say this, it wasnever an issue until they
started saying, you know what?We'll flip the switch.
We'll turn them off. That's when it
became an issue. That's why we lost
$2,000,000,000,000 on Friday. Inmy opinion, you know, AI is the
(18:27):
market story of our time rightnow. But minerals and that go
hand in hand. And we can't keeppretending that globalization
will save us in this.
Because we'll wake up one nightone day and realize our entire
economy runs through China. And,you know, it's not like it's
(18:48):
running through England. We'retalking about a con about a
country who absolutely hates us.
You know, I'm watching tariffs, I'm watching
headlines, but I think as aninvestor, you have to start
finding these companies like inNP Materials, finding them on
(19:09):
discounts, because right nowit's pretty undervalued, that
are going to
win in this future that we have. This AI revolution
future, you know, gets me firedup. You know what? Let's move on
to OpenAI because they got theygot a lot going on. And one of
(19:30):
these issues, I'm very, veryhappy for them.
The other issue gets me aboutfired up as this one does. So
let's just go right into OpenAI.I I mean, honestly, they've
they've gotten so many dealslately that I barely can keep
up. That's not true. That's ahyperbole, but it I mean, it's
(19:50):
just deal after deal for them.
So as I mentioned in theintroduction, if you haven't
heard, they just made the thethat new deal with Broadcom for
semiconductors. And look. It'sanother one of those deals
that's
just like we said about NVIDIA and AMD, it's great
for Broadcom, truly great forBroadcom, great for OpenAI, but
(20:13):
where's the money coming from?
We've covered this in-depth in the last co
episodes. So if you wanna knowhow I feel about Broadcom, this
deal, go relisten to a video inthe AMD's segments, and I feel
the exact same way. So I'm notgonna bore you and repeat that.
But this one's new, and this newdeal, pretty fired up about it,
pretty excited. Walmart, yesWalmart, just announced a
(20:38):
partnership with OpenAI that letpeople shop directly through
ChatGPT.
Instead of typing in a searchbar or scrolling through email's
results, you'll be able to askto find something. So let's say
you ask ChatGPT, what is thebest low cost
air fryer? Well, they'll do
its little thing and they'll come up with the best
(21:01):
air fryer for you to buy and youcan buy it instantly right on
the ChatGPT app. Huge. That ismassive. It's very similar to
what the partnership they hadwith shop up Shopify, but I
mean, this is just a massivepartnership for Walmart in
particular. Walmart CEO, DougMcMillan, said the new setup
(21:22):
will be multimedia,personalized, and
contextualized.
I really don't know what thatmeans personally. That's not the
three words that
I would've used. I guess what he
means is that the shopping experience inside g
ChatGPT will include photos,
videos, and recommendations, I guess.
So I guess it'd be al algorithmic. They'll use an
(21:47):
algorithm. The idea for them isto make shopping feel less like
browsing. This is
what they're this what they're saying. I'm reading
it off. The idea is
to make online shopping feel less like browsing
and more like having someonepersonally help you find what
you need. That makes sense. Ican see that. Let's see. OpenAI
first teased this feature backin September calling it instant
(22:09):
checkout and it's alreadyexpanding to include sellers
from Shopify and Etsy.
We've talked about it before.Every transaction that happens,
every transaction oh, this isbig. Every transaction that
happens through ChatGPT willgenerate a fee for OpenAI.
Though the financial details onWalmart have been disclosed, of
course, they never do, which iscrazy to me. Walmart stock
(22:30):
jumped nearly 5% on the news,hitting a fifty two week high.
Alright. We're gonna get tothat. Let me just let me just
read off the news stories, bothstories, and then I'll tell you
my opinion. Is this this newheadline right here? My god.
Then there's the other bigheadline. Sam Altman confirmed
(22:50):
that in December, ChatGPT willlaunch in an adult only mode for
verified users. It's a part
of a broader policy change that'll allow that'll
allow erotic and or maturecontent under tighter safety
controls. Altman said
the company's new tools and parental settings now
(23:10):
make it possible to treat adultslike adults, whatever that
means, without the same mentalhealth risks that existed
before, whatever that means. Healso mentioned another update
coming soon that will let userscustomize how ChatGPT behaves.
From adding personality and toneto even making them respond more
like a friend or a humanassistant, which I thought I
(23:32):
already did that now. So betweenthe Walmart integration, new AI
features and policy shift, OpenI OpenAI has had a lot of stuff.
So let's get back into thisWalmart deal because it my
opinion, friends, it is huge andit's a turning point, you know.
Because people keep talkingabout this AI revolution like
(23:52):
it's coming someday, but this isit.
I mean, this in December, starting December,
it's here. You know, Walmart isthe biggest retailer on Earth,
and they just plug themselves directly into
ChatGPT. You know? When my whenmy parents' anniversary comes
(24:12):
up, my dad can say, I need alast minute anniversary gift for
my wife.
She likes this. And ChatGPT will be
able to go through all Walmart's products, all
everything they produce,
and let you buy it right there. You know? And the
more my dad could tell what mymom likes, the better gift that
(24:33):
JatchyBT could suggest fromWalmart. You know, that's
literally like having an onlinepersonal shopper. You know,
in my opinion, this is a massive win for OpenAI and
Walmart. You know, for Walmart,it's a shortcut into the next
generation of e commerce. Imean, this is the this is the
first time in, I would say, thelast, what, guys, ten, fifteen
(24:57):
years that they can finally say,hey, we have a path to compete
with Amazon. Look, you know, Iknow they've tried to sell it
for the last five years. Youknow, every time you listen to
Walmart's earning call, they,you know, they try and hype up
what is it?
They have that Walmart One orwhatever. Who the hell has
Walmart One? Not me. I mean,come on. You know, they've
(25:19):
always been the redheadedstepchild when it comes to ecom
competing competing with Amazon.
This is the first time that Ican see a path forward for
Walmart where if I'm Amazon, I'mlike,
boy oh boy. You know?
Tea has nearly has 800,000,000 weekly users.
(25:41):
800,000,000. You know, that'snearly 10% of the world's
adults. You know? And and mostof ChatGPT's users are, I would
probably say, 60 and below, 50and below, which, you know, it's
it's pretty big.
That means that they're goingthat those people will buy on
(26:02):
the app. I firmly believe thatWalmart now is in the picture of
a true blue tech stock. Will Ibuy it? I gotta see how it plays
out. I I you know, I'm not thebiggest fan of owning Walmart.
(26:24):
Like, it's a great company. ButI'll have to see this plays out,
and I'll probably watch it playout, and they'll probably
go up a bunch of percentage points, and I'll miss
it. But I don't know.
And then most importantly for OpenAI oh, I
wanna say one more thing aboutthat. You know, we have this
(26:46):
thing, it's conversational
shopping. This is the future of how we shop on a
day to day
basis, at least on ecommerce. You know, because if
this works, you'll have Shopify,who already has this
relationship with OpenAI, butyou'll have other apps that come
out and compete with these guys.You think Amazon's just gonna
(27:06):
lay down? No. Come on.
Amazon's Amazon because they'rethey're they're not they they
are they are never afraid totake a risk. Walmart has always
been afraid to take a risk inthe last twenty years. They were
so scared of losing what theyhad at their big brand, big
departments. They were scared totake ecommerce risks, and they
(27:28):
fell so behind. But Amazon'snever been scared, guys.
Never. You know, I I think we'reseeing a trend develop here.
Remember this term,conversational shopping.
Conversational shopping.Remember that.
Because I think it's coming. Ithink it's coming quickly. I
think if you have an ecommercecompany, you have anything
(27:49):
online, you need to be studyingconversational shopping because
we're at the very, verybeginning, and this partnership
works out well. Amazon willlaunch it, and then that means
if you don't have it on yourstore, you're behind. So let's
get back to why is this good forOpenAI.
Well, let's think about it.Well, they do 13,000,000,000 in
(28:10):
annual revenue, which is alittle over a billion a month.
And hey, for a startup, that'smassive, guys. But you gotta
remember, these are the samepeople, I mean, I wanna roll my
eyes thinking about it, whocommitted over
$1,000,000,000,000 to buy allthese chips. I mean, on
(28:31):
$13,000,000,000 revenue and youhave $1,000,000,000,000 worth
going into chips, I mean, that'slike financing a skyscraper on a
car loan.
I mean, it's unbelievable. So,you know, instead of trying to
squeeze more people into plus,which, you know, I I use that. I
I wouldn't give up thesubscription. But instead of
(28:52):
doing that, they're gonnathey're gonna try and take a
small cut of every transactionthat happens inside ChadGBT. You
know, they've partnered withShopify, Etsy, now Walmart,
which is a huge one.
Walmart moved $674,000,000,000 ayear. You know, if they can just
get a small slice of that,that's massive. How do you think
Visa built their monopoly inMastercard? They get a small
(29:14):
transaction every time you makea purchase on any of
their credit cards. Think of it very,
very similar to that. You know? And if you look
at Walmart's online sales, asmuch as I just kinda criticized
them, they're up 25%, I think itis. Their digital ad business is
jumping. You know, if Walmartweaves all that in, it comes off
(29:38):
good, this could be massive forOpenAI, for revenue source, and
like I said, allow Walmart tocompete with Amazon.
You know, from a businessstandpoint, I think it's very,
very smart from both sides. Ithink this is a huge risk that
finally Walmart finally took arisk in ecommerce, and it
couldn't come at a better time.I I think it's massive, very
(30:02):
bullish. I think the stockWalmart's only up five percent.
I think it should have been up20%.
Truly. I mean, truly believethat. I mean, it's huge for the
stock. Do you have if you have alot of money and you're older
and you're kinda thinking aboutretirement, I think Walmart
might be something to highlyconsider for your portfolio.
Obviously not investment advicebecause you know, they have a
(30:24):
good dividend and this deal isawesome for them.
Well let's get into, I mean, the curveball. I mean,
good. We can't have we can'thave anything nice.
Right after OpenAI announced their family friendly
(30:48):
deal with Walmart, I mean, youyou got one of the most family
family friendly brands around.They announced an adult only
mode for ChatGPT. So you have tobecome verified, prove that
you're an adult, show them yourID, which, you know, I'm sure
I'm sure they're gonna probablysay, oh, we're getting rid of
(31:08):
it. I'm sure they will not.Verified users will be soon
allowed to access erotic ormature content.
And I'm sure I have a fewfriends who listen to this
podcast like Michael Fisher,Jacob Walker. I'm sure they're
fired up for that. Just kidding.It's a joke. But, I mean, look,
(31:33):
I understand the logic.
You know, if you think about it,if you
really think about it, the adult industry, the
erotic industry,
has always driven tech innovation. It always has.
You know, they led the Internet.They were the first, they really
were some of the first people touse the Internet at scale.
(31:58):
Right? I mean, and then, you know, they were the
first ones did you know it was one
of the first ones to have payment security on the
internet? You know, the virtualreality, they've led that.
So I understand from a business point why you had an
erotic g g g g p t if you hadsome other app, right, that did
(32:25):
this. I completely understandthat. You know, that industry is
a multi billion dollar industry.I mean, look at OnlyFans. That
owner gets a $750,000,000dividend check.
The owner does. Every year. That's crazy. So I
understand. There's tons ofmoney to be made there.
I get that logic. But you'reOpenAI. You power classrooms,
(32:49):
boardrooms, and now Walmart. Youknow? You don't need to dip into
this world to make money.
You know?
You know, if if Sam Altman launched a new startup
and funded a startup that didjust this, just like I was just
talking about, that was callederotic g GPT,
(33:11):
I get it.
But you can't say that you're a family friendly
shopping platform one week andthen an adult chat the next.
It's like opening a daycare inthe back of a casino. You know,
(33:33):
I mean, think about it.Someone's gonna be messaging
chat GPT. They're gonna startsending something that's not
good to the erotic part of it.
They had this whole longconversation. You know, then
(33:54):
their girlfriend or their wife,they're gonna go check the chat
history, and boom, next thingyou know, she's gonna screenshot
it. She's gonna screenshot thoseerotic messages, and she's gonna
send them to your friends, yourfamily. Your mom's gonna up one
Friday morning reading all thesemessages. I mean, good lord.
I mean, why would ChatGPT dothat? I just I just jokes aside,
(34:18):
I I I truly it's it's a brandproblem. You know, OpenAI spent
years positioning ChatGPT as aneducational and business tool,
which it is. You know, it'ssomething that teachers,
executives, parents all couldtrust. But once you add adult
content, that trust is gone.
(34:39):
I mean, I just don't get it. Youknow, if you think about it, you
can't be the company. They wantthe company. They want ChatGPT
to write investors reports byday and and the CEOs present
that to the board rooms duringthe day. You just can't be the
(35:00):
company that does does that andthen that same CEO goes home and
talks dirty to him because theirwife's bored and won't talk to
him.
I mean, it's just it's just it'snot it's not you're better than
that, Sam Altman. You're betterthan that. You know? And that
it's just it's just like justthe biggest oxymoron. It splits
(35:21):
the brain in half because theWalmart deal is exactly what
OpenAI should be doing to be thethe greatest startup that we've
ever seen.
They're on pace, that800,000,000 weekly users. But
not everything is about making aquick buck. Think about your
brand. You know,
(35:41):
I just I don't get it. It's a short term money grab
that in my opinion underminesthe long term credibility of
their brand. I just I don't getit. You know, as I joked about
earlier,
the last thing you want is screenshots going around
of your messages with ChatGPT.You know, I just I hope they I
(36:05):
hope they go back on this deal.There's been a lot of pushback
and they should go back on thisdeal because it's just not them.
And that's a compliment to whatthey've built. I just I I truly
don't get it.
And and I'm I'm gonna repeatmyself, but I'll say it again is
that if Sam Altman launched astartup that focused just on
this, I would totally get itbecause that industry is worth
(36:26):
hundreds of billions of dollars.I would get it. Don't do it with
ChatGPT. Have some common sense.You know, if they keep blurring
that line, they're gonna risklosing the one thing that every
trillion dollar company musthave, which is trust.
You gotta keep the trust ofpeople. You know? And and when
(36:49):
you lose the consumer's trust,no amount of partnerships, ads,
checkout integrations, oranything can buy that back. You
know, Meta and Zuckerberg hasfought that battle every single
day. And I will say this, I'm adefender of Zuckerberg at times.
(37:10):
It's an unpopular opinionbecause they face challenges
that the world's never seenbefore. Right? The algorithms,
the news, like think about it. Imean, he didn't realize that in
2015, 2016, the ads and andthings that are being shared on
Meta would impact an election.Right?
(37:31):
So I've always said, hey. He'sfaced things that they might
have should have seen coming,but he's always done what he can
to fix them. They've been issues that come out of
nowhere. Damn Altman. This is anissue that you created for
yourself. I just don't get it.
I don't get it. And youannounced this news on the I
(37:53):
mean, how
are you gonna monetize? I mean, I I don't
know. I I might get canceledtrying to keep on talking about
this, so am I a little fired uptoday. You know, the rare earth
metals thing is something very,very serious. It's also a great
investment opportunity.
They're very overvalued rightnow, but you need to start
learning everything you canabout rare earth mineral stocks
(38:14):
in America. You need to learnabout refining, how they refine
them. I'm I'm doing the doing myresearch. I'll talk more about
it or just you wanna message meon Instagram or text me, let me
know. But I I can't thank youguys enough for always tuning
in.
We're in 10 countries now, whichis huge. Just episode five. Next
week, we're like I said, we'rewe're gonna have some big time
(38:35):
guests coming on soon. We'llhave Rob back here soon. We're
gonna keep on doing more soloshows.
I I like doing solo showsbecause I get to express what
I'm fired up about. And, thankyou guys, and I will see you
next week.
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